Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 137

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 137
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, if
possible, pay taxable dividends of our stock or debt securities.

Elective Cash/Stock Dividends. We may satisfy
the 90% distribution test with taxable distributions of our stock or debt securities. The IRS has issued Revenue Procedure 2017-45 authorizing
elective cash/stock dividends to be made by “publicly offered REITs.” Pursuant to Revenue Procedure 2017-45, the IRS will
treat the distribution of stock pursuant to an elective cash/stock dividend as a distribution of property under Section 301 of the Code
(i.e., a dividend), as long as at least 20% of the total dividend is available in cash and certain other parameters detailed in the Revenue
Procedure are satisfied. Although we do not currently intend to pay dividends in our stock, if in the future we choose to pay dividends
in our stock, our stockholders may be required to pay tax in excess of the cash that they receive.

Under certain circumstances, we may be able to
correct a failure to meet the distribution requirement for a year by paying “deficiency dividends” to our stockholders in
a later year. We may include such deficiency dividends in our deduction for dividends paid for the earlier year. Although we may be able
to avoid U.S. federal income tax on amounts distributed as deficiency dividends, we will be required to pay interest to the IRS based
upon the amount of any deduction we take for deficiency dividends.

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Recordkeeping Requirements

We must maintain certain records in order to qualify
and maintain our qualification as a REIT. In addition, to avoid a monetary penalty, we must request on an annual basis information from
our stockholders designed to disclose the actual ownership of our outstanding shares. We intend to comply with these requirements.

Failure to Qualify

If we fail to satisfy one or more requirements
for REIT qualification, other than the gross income tests and the asset tests, we could avoid disqualification if our failure is due to
reasonable cause and not to willful neglect and we pay a penalty of $50,000 for each such failure. In addition, there are relief provisions
for a failure of the gross income tests and asset tests, as described in “—Gross Income Tests” and “—Asset
Tests.”

If we fail to qualify as a REIT in any taxable
year, and no relief provision applies, we would be subject to U.S. federal corporate income tax. In addition, we may be required to pay