Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 125

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 125
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or, if the loan has experienced a “significant modification” since its origination or acquisition by
the REIT, then as of the date of that “significant modification”), a portion of the interest income from such loan will not
be qualifying income for purposes of the 75% gross income test, but will be qualifying income for purposes of the 95% gross income test.
The portion of the interest income that will not be qualifying income for purposes of the 75% gross income test will be equal to the interest
income attributable to the portion of the principal amount of the loan that is not secured by real property, that is, the amount by which
the loan exceeds the value of the real estate that is security for the loan. However, in the case of a loan that is secured by both real
property and personal property, if the fair market value of such personal property does not exceed 15% of the total fair market value
of all property securing the loan, then the personal property securing the loan will be treated as real property for purposes of determining
the interest on such loan is qualifying income for purposes of the 75% gross income test.

Dividends. Our share of any dividends received
from any corporation (including any TRS, but excluding any REIT) in which we own an equity interest will qualify for purposes of the 95%
gross income test but not for purposes of the 75% gross income test. Our share of any dividends received from any other REIT in which
we own an equity interest, if any, will be qualifying income for purposes of both gross income tests.

Prohibited Transactions. A REIT will incur
a 100% tax on the net income (including foreign currency gain) derived from any sale or other disposition of property, other than Foreclosure
Property, that the REIT holds primarily for sale to customers in the ordinary course of a trade or business. We believe that none of our
healthcare facilities have been or will be held primarily for sale to customers and that any sales of our healthcare facilities have not
been and will not be in the ordinary course of our business. Whether a REIT holds a property “primarily for sale to customers in
the ordinary course of a trade or business” depends, however, on the facts and circumstances in effect from time to time, including
those related to a particular property. A safe harbor to the characterization of the sale of real property by a REIT as a prohibited transaction
and the 100%