Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 135

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 135
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 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 and profits or distributed those amounts before the end of our first REIT year. If it is subsequently
determined that we had undistributed non-REIT earnings and profits as of the end of our first REIT taxable year or at the end of any subsequent
taxable year, we could fail to qualify as a REIT.

We will pay U.S. federal income tax on taxable
income, including net capital gain that we do not distribute to stockholders. Furthermore, if we fail to distribute during a calendar
year, or by the end of January following the calendar year in the case of distributions with declaration and record dates falling in the
last three months of the calendar year, at least the sum of:

| · | 85% of our REIT ordinary income for such year, |

| · | 95% of our REIT capital gain income for such year, and |

| · | any undistributed taxable income (ordinary and capital gain) from all prior periods, |

we will incur a 4% nondeductible excise tax on the excess of such required
distribution over the amounts we actually distribute.

| 52 |

We may elect to retain and pay U.S. federal income