Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 127

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 127
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, that we can comply with the safe harbor provisions or that we will avoid owning property that
may be characterized as property that we hold “primarily for sale to customers in the ordinary course of a trade or business.”
The 100% tax will not apply to gains from the sale of property that is held through a TRS or other taxable corporation, although such
income will be taxed to the TRS at regular U.S. federal corporate income tax rates.

Fee Income. Fee income generally will not
be qualifying income for purposes of either the 75% or 95% gross income tests. Any fees earned by any TRS we form, such as fees for providing
asset management and construction management services to third parties, will not be included for purposes of the gross income tests. In
addition, we will be subject to a 100% excise tax on any fees earned by a TRS for services provided to us if such fees were pursuant to
an agreement determined by the IRS to be not on an arm’s-length basis.

Foreclosure Property. We will be subject
to tax at the maximum U.S. federal corporate income tax rate (currently 21%) on any income from Foreclosure Property, which includes certain
foreign currency gains and related deductions, other than income that otherwise would be qualifying income for purposes of the 75% gross
income test, less expenses directly connected with the production of that income. However, gross income from Foreclosure Property will
qualify under the 75% and 95% gross income tests. Foreclosure Property is any real property, including interests in real property, and
any personal property incident to such real property:

| · | that is acquired by a REIT as the result of the REIT having bid on such property at foreclosure, or having otherwise reduced such     
 property to ownership or possession by agreement or process of law, after there was a default or when default was imminent on a lease 
 of such property or on indebtedness that such property secured;                                                                       |

| · | for which the related loan was acquired by the REIT at a time when the default was not imminent or anticipated; and |

| · | for which the REIT makes a proper election to treat the property as Foreclosure Property. |

Foreclosure Property also includes certain “qualified
health care properties” (as defined above under “—Taxable REIT Subsidiaries”) acquired by a REIT as a result of
the termination or expiration of a lease of such property (other