Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 117

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 117
---
 on certain payments received from, or on certain expenses deducted by, a TRS if that IRS were to successfully assert that the economic
arrangements between the REIT and the TRS were not comparable to similar arrangements among unrelated parties. Any income earned by a
TRS that is attributable to services provided to its parent REIT, or on behalf of any of its tenants, that is less than the amount that
would have been charged based upon arm’s-length negotiations, will also be subject to a 100% penalty tax.

| 42 |

A TRS may not directly or indirectly operate or
manage any health care facilities or lodging facilities or provide rights to any brand name under which any health care facility or lodging
facility is operated. A TRS is not considered to operate or manage a “qualified health care property” or “qualified
lodging facility” solely because the TRS directly or indirectly possesses a license, permit, or similar instrument enabling it to
do so.

Rent that we receive from a TRS will qualify as
“rents from real property” under two scenarios. Under the first scenario, rent 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 tenants of the healthcare facility for comparable space, as described in further detail below under “—Gross
Income Tests—Rents from Real Property.” If we lease space to a TRS in the future, we will seek to comply with these requirements.

Under the second scenario, rents that we receive
from a TRS will qualify as “rents from real property” if the TRS leases a healthcare facility from us that is a “qualified
health care property” and such healthcare facility is operated on behalf of the TRS by a person who qualifies as an “independent
contractor” and who is, or is related to a person who is, actively engaged in the trade or business of operating “qualified
health care properties” for any person unrelated to us and the TRS (an “Eligible Independent Contractor”). A “qualified
health care property” includes any real property and any personal property that is, or is necessary or incidental to the use of,
a hospital, nursing facility, assisted