Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 158

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 158
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 income tax purposes, the item subject to the allocation will be reallocated in accordance with the partners’
interests in the partnership, which will be determined by taking into account all of the facts and circumstances relating to the economic
arrangement of the partners with respect to such item. Each Partnership’s allocations of taxable income, gain, and loss are intended
to comply with the requirements of the U.S. federal income tax laws governing partnership allocations.

Tax Allocations with Respect to Partnership Properties. Income, gain, loss, and deduction attributable to appreciated or depreciated property that is contributed to a partnership
in exchange for an interest in the partnership must be allocated in a manner such that the contributing partner is charged with, or benefits
from, respectively, the unrealized gain or unrealized loss associated with the property at the time of the contribution (the “704(c)
Allocations”). The amount of the unrealized gain or unrealized loss (“Built-in Gain” or “Built-in Loss”)
is generally equal to the difference between the fair market value of the contributed property at the time of contribution and the adjusted
tax basis of such property at the time of contribution (a “Book-Tax Difference”). Any property purchased for cash initially
will have an adjusted tax basis equal to its fair market value, resulting in no Book-Tax Difference. A book-tax difference generally is
decreased on an annual basis as a result of depreciation deductions to the contributing partner for book purposes but not for tax purposes.
The 704(c) Allocations are solely for U.S. federal income tax purposes and do not affect the book capital accounts or other economic or
legal arrangements among the partners. In the future, our Operating Partnership may acquire property that may have a Built-in Gain or
a Built-in Loss in exchange for OP Units. Our Operating Partnership will have a carryover, rather than a fair market value, adjusted tax
basis in such contributed assets equal to the adjusted tax basis of the contributors in such assets, resulting in a Book-Tax Difference.
As a result of that Book-Tax Difference, we will have a lower adjusted tax basis with respect to that portion of our Operating Partnership’s
assets than we would have with respect to assets having a tax basis equal to fair market value at the time of acquisition. This could
result in lower depreciation deductions with respect to the portion of our Operating Partnership’s assets attributable to such contributions.

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The U.S. Treasury Department has issued regulations
requiring partnerships to use a “