Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 121

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 121
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 qualification. If any of our leases
from a sale-leaseback transaction is recharacterized as a financing transaction or loan for U.S. federal income tax purposes, the seller-lessee
would be the owner of the healthcare facility and the IRS would disallow our deductions for depreciation and cost recovery relating to
the leased healthcare facilities. As a result, the amount of our REIT taxable income could be recalculated, which might cause us to fail
to meet the distribution requirement required for REIT qualification. See “—Distribution Requirements.”

We will continue to use our best efforts to structure
any leasing transaction, including leasing transactions from our sale-leaseback transactions, so that the lease will be characterized
as a true lease and we will be treated as the owner of the healthcare facility in question for U.S. federal income tax purposes. We will
not seek an advance ruling from the IRS and do not intend to seek opinions of counsel that our leases will be treated as the owner of
any other leased healthcare facilities for U.S. federal income tax purposes, and thus there can be no assurance that our leases will be
treated as true leases for U.S. federal income tax purposes.

In addition, rent received on a lease that is
respected as a true lease will qualify as “rents from real property” only if each of the following conditions is met:

| · | First, the rent must not be based, in whole or in part, on the income or profits of any person, but may be based on a fixed percentage 
 or percentages of receipts or sales.                                                                                                   |

| · | Second, neither we nor a direct or indirect owner of 10% or more of our stock may own, actually or constructively, 10% or more of 
 a tenant from whom we receive rent, other than a TRS.                                                                             |

| · | Third, if the rent attributable to personal property leased in connection with a lease of real property is 15% or less of the total     
 rent received under the lease, then the rent attributable to personal property will qualify as rents from real property. The allocation 
 of rent between real and personal property is based on the relative fair market values of the real and personal property. However, if   
 the 15% threshold is exceeded, the rent attributable to personal property will not qualify as rents from real property.                 |

| · | Fourth, we generally must not operate or manage our real property or furnish or render services to our tenants, other than through