Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 156

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 156
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, be treated as a corporation for any taxable year if, for each taxable year beginning
after December 31, 1987 in which it was classified as a publicly traded partnership, 90% or more of the partnership’s gross income
for such year consists of certain passive-type income, including real property rents, gains from the sale or other disposition of real
property, interest, and dividends. Treasury Regulations provide limited safe harbors from the definition of a publicly traded partnership.
Pursuant to one of those safe harbors (the “Private Placement Exclusion”), interests in a partnership will not be treated
as readily tradable on a secondary market or the substantial equivalent thereof if (1) all interests in the partnership were issued in
a transaction or transactions that were not required to be registered under the Securities Act of 1933, as amended, and (2) the partnership
does not have more than 100 partners at any time during the partnership’s taxable year. In determining the number of partners in
a partnership, a person owning an interest in a partnership, grantor trust, or S corporation that owns an interest in the partnership
is treated as a partner in such partnership only if (1) substantially all of the value of the owner’s interest in the entity is
attributable to the entity’s direct or indirect interest in the partnership and (2) a principal purpose of the use of the entity
is to permit the partnership to satisfy the 100-partner limitation. We believe that our Operating Partnership and each other Partnership
in which we own an interest qualifies for the Private Placement Exclusion.

We have not requested, and do not intend to request,
a ruling from the IRS that our Operating Partnership will be classified as a partnership for U.S. federal income tax purposes. If for
any reason our Operating Partnership were taxable as a corporation, rather than as a partnership, for U.S. federal income tax purposes,
we likely would not be able to qualify as a REIT unless we qualified for certain relief provisions. See “—Gross Income Tests”
and “—Asset Tests.” In addition, any change in a Partnership’s status for U.S. federal income tax purposes might
be treated as a taxable event, in which case we might incur tax liability without any related cash distribution. Further, items of income
and deduction of such Partnership would not pass through to its partners, and its partners would be treated as stockholders for tax purposes.
Consequently, such Partnership would be required to pay U.S.