Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 116

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 116
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 allocable share of the gross income of the partnership for purposes of the applicable
REIT qualification tests. Our proportionate share for purposes of the 10% value test (see “—Asset Tests”) is based on
our proportionate interest in the equity interests and certain debt securities issued by the partnership. For all of the other asset and
income tests, our proportionate share is based on our proportionate interest in the capital interests in the partnership. Our proportionate
share of the assets, liabilities, and items of income of any partnership, joint venture, or limited liability company that is treated
as a partnership for U.S. federal income tax purposes in which we acquire an equity interest, directly or indirectly, will be treated
as our assets and gross income for purposes of applying the various REIT qualification requirements.

We have control of our Operating Partnership and
intend to control any subsidiary partnerships and limited liability companies, and we intend to operate them in a manner consistent with
the requirements for our qualification as a REIT. We may from time to time be a limited partner or non-managing member in some of our
partnerships and limited liability companies. If a partnership or limited liability company in which we own an interest takes or expects
to take actions that could jeopardize our status as a REIT or require us to pay tax, we may be forced to dispose of our interest in such
entity. In addition, it is possible that a partnership or limited liability company could take an action which could cause us to fail
a gross income or asset test, and that we would not become aware of such action in time to dispose of our interest in the partnership
or limited liability company or take other corrective action on a timely basis. In that case, we could fail to qualify as a REIT unless
we were able to qualify for a statutory REIT “savings” provisions, which could require us to pay a significant penalty tax
to maintain our REIT qualification.

Taxable REIT Subsidiaries. A REIT may own
up to 100% of the shares of one or more TRSs. A TRS is a fully taxable corporation that may earn income that would not be qualifying income
if earned directly by the parent REIT. The subsidiary and the REIT must jointly elect to treat the subsidiary as a TRS. A corporation
of which a TRS directly or indirectly owns more than 35% of the voting power or value of the securities will automatically be treated
as a