Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 123

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 123
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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 TRSs. There are two exceptions to the related-party tenant rule described above for TRSs. Under the first exception,
rent that we receive from a TRS will qualify as “rents from real property” as long as (1) at least 90% of the leased space
in the healthcare facility is leased to persons other than TRSs and related-party tenants, and (2) the amount paid by the TRS to rent
space at the healthcare facility is substantially comparable to rents paid by other tenant-operators of the healthcare facility for comparable
space. The “substantially comparable” requirement must be satisfied when the lease is entered into, when it is extended, and
when the lease is modified, if the modification increases the rent paid by the TRS. If the requirement that at least 90% of the leased
space in the related property is rented to unrelated tenants is met when a lease is entered into, extended, or modified, such requirement
will continue to be met as long as there is no increase in the space leased to any TRS or related party tenant. Any increased rent attributable
to a modification of a lease with a TRS in which we own directly or indirectly more than 50% of the voting power or value of the stock
will not be treated