Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 137

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 137
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9 taxable year to deduct 50% of such amount in its 2020 taxable year).

A “real property trade or business”
may elect out of this interest limit so long as it uses a 40-year recovery period for nonresidential real property, a 30-year recovery
period for residential real property, and a 20-year recovery period for related improvements described below. For this purpose, a real
property trade or business is any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental,
operating, management, leasing, or brokerage trade or business. We believe this definition encompasses our business and thus will have
elected to opt out of the limits on interest deductibility.

In addition, for taxable years beginning after
December 31, 2020, the NOL deduction is generally limited to 80% of taxable income (before the deduction). REITs may indefinitely carryforward
(but not carryback) unused NOLs.

As a result of the foregoing, we may have less
cash than is necessary to distribute taxable income sufficient to avoid U.S. federal corporate income tax and the excise tax imposed on
certain undistributed income or even to meet the 90% distribution requirement. In such a situation, we may need to borrow funds or, 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