Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 134

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 134
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 in the following taxable year if either (1) we declare the distribution before we timely file our U.S. federal
income tax return for the year, pay the distribution on or before the first regular dividend payment date after such declaration and elect
in our tax return to have a specified dollar amount of such distribution treated as if paid during the prior year or (2) we declare the
distribution in October, November or December of the taxable year, payable to stockholders of record on a specified day in any such month,
and we actually pay the dividend before the end of January of the following year. The distributions under clause (1) are taxable to the
stockholders in the year in which paid, and the distributions in clause (2) are treated as paid on December 31st of the prior taxable
year to the extent of our earnings and profits. In both instances, these distributions relate to our prior taxable year for purposes of
the 90% distribution requirement.

Further, to the extent we are not a “publicly
offered REIT,” in order for our distributions to be counted as satisfying the annual distribution requirement for REITs and to provide
us with the REIT-level tax deduction, such distributions must not be “preferential dividends.” A dividend is not a preferential
dividend if that distribution is (1) pro rata among all outstanding shares within a particular class and (2) in accordance with the preferences
among different classes of shares as set forth in our organizational documents. However, the preferential dividend rule does not apply
to “publicly offered REITs.” Currently, we are a “publicly offered REIT.”

In addition to the annual distribution requirement
described above, to continue to qualify as a REIT, we must not have any non-REIT accumulated earnings and profits, as measured for U.S.
federal income tax purposes, at the end of any REIT taxable year. We were required distribute any such non-REIT accumulated earnings and
profits that we had when we elected to be taxable as a REIT prior to the end of our first REIT taxable year, which ended December 31,
2016. We did not have any earnings and profits from prior years and we believe we made sufficient distributions in 2016 such that we did
not have any undistributed non-REIT earnings and profits at the end of 2016. However, no complete assurance can be provided that we accurately
determined our non-REIT earnings