Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 123

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 123
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, the portion of the rent that is attributable to personal property will not be qualifying income for
purposes of either the 75% or 95% gross income test. Thus, if such rent attributable to personal property, plus any other income that
is non-qualifying income for purposes of the 95% gross income test, during a taxable year exceeds 5% of our gross income during the year,
we would lose our REIT qualification. If, however, the rent from a particular healthcare facility does not qualify as “rents from
real property” because either (1) the rent is considered based on the income or profits of the related tenant, (2) the tenant either
is a related party tenant or fails to qualify for the exceptions to the related party tenant rule for TRSs or (3) we furnish non-customary
services to the tenant-operators of the healthcare facility in excess of the one percent threshold, or manage or operate the healthcare
facility, other than through a qualifying independent contractor or a TRS, none of the rent from that healthcare facility would qualify
as “rents from real property.”

Currently, we do not lease significant amounts
of personal property pursuant to our leases nor do we lease our properties to related party tenants. None of the rental provisions of
our lease terms are based, in whole or in part, on the income or profits of any person. Moreover, we do not currently perform any services
other than customary ones for our tenant-operators, unless such services are provided through independent contractors from whom we do
not receive or derive income or a TRS. Accordingly, we believe that our leases generally produce rent that qualifies as “rents from
real property” for purposes of the 75% and 95% gross income tests.

In addition to the rent, the tenant-operators
may be required to pay certain additional charges. To the extent that such additional charges represent reimbursements of amounts that
we are obligated to pay to third parties such charges generally will qualify as “rents from real property.” To the extent
such additional charges represent penalties for nonpayment or late payment of such amounts, such charges should qualify as “rents
from real property.” However, to the extent that late charges do not qualify as “rents from real property,” they instead
will be treated as interest that qualifies for the 95% gross income test.

As described above, we may own up to 100% of the
shares of one or more TR