Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 160

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 160
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 by the Partnership as inventory or other property held primarily for sale to customers in the ordinary
course of the Partnership’s trade or business will be treated as income from a prohibited transaction that is subject to a 100%
penalty tax. Such prohibited transaction income may have an adverse effect upon our ability to satisfy the income tests for REIT status.
See “—Gross Income Tests.” We do not presently intend to acquire or hold or to allow any Partnership to acquire or hold
any property that represents inventory or other property held primarily for sale to customers in the ordinary course of our or such Partnership’s
trade or business.

Partnership Audit Rules

Under the rules applicable to U.S. federal income
tax audits of partnerships, any audit adjustment to items of income, gain, loss, deduction or credit of a partnership (and any partner’s
distributive share thereof) is determined, and taxes, interest or penalties attributable thereto are assessed and collected, at the partnership
level. The partnership itself may be liable for a hypothetical increase in partner-level taxes (including interest and penalties) resulting
from an adjustment of “partnership-related items” on the audit (the “imputed adjustment amount”), regardless of
changes in the composition of the partners (or their relative ownership) between the year under audit and the year of the adjustment (and
thus potentially causing the partners at the time of the audit adjustment to bear taxes attributable to former partners). The rules also
include an elective alternative method under which the additional taxes resulting from the adjustment are assessed against the affected
partners (often referred to as a “push-out election”), subject to a higher rate of interest than otherwise would apply. These
partnership audit rules could increase the U.S. federal income tax, interest, and/or penalties otherwise borne by us in the event of a
U.S. federal income tax audit of any of the Partnerships. Investors are urged to consult their tax advisors with respect to these changes
and their potential impact on their investment in our securities.

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Legislative or Other Actions Affecting REITs

The present U.S. federal income tax treatment
of REITs may be modified, possibly with retroactive effect, by legislative, judicial or administrative action at any time, which could
affect the U.S. federal income tax treatment of an investment in us. The REIT rules are constantly under review by persons involved in
the legislative process and by the IRS and the U.S. Treasury Department, which may