Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 159

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 159
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reasonable method” for allocating items with respect to which there is a Book-Tax Difference
and outlining several reasonable allocation methods. Under certain available methods, the carryover basis of contributed properties in
the hands of our Operating Partnership (1) could cause us to be allocated lower amounts of depreciation deductions for U.S. federal income
tax purposes than would be allocated to us if all contributed properties were to have a tax basis equal to their fair market value at
the time of the contribution and (2) in the event of a sale of such properties, could cause us to be allocated taxable gain in excess
of the economic or book gain allocated to us as a result of such sale, with a corresponding benefit to the contributing partners. An allocation
described in (2) above might cause us to recognize taxable income in excess of cash proceeds in the event of a sale or other disposition
of property, which may adversely affect our ability to comply with the REIT distribution requirements and may result in a greater portion
of our distributions being taxed as dividends. We have not yet decided what method our Operating Partnership will use to account for Book-Tax
Differences.

Sale of a Partnership’s Property

Generally, any gain realized by a Partnership
on the sale of property held by the Partnership for more than one year will be long-term capital gain, except for any portion of such
gain that is treated as depreciation or cost recovery recapture. Under Section 704(c) of the Code, any gain or loss recognized by a Partnership
on the disposition of contributed properties will be allocated first to the partners of the Partnership who contributed such properties
to the extent of their Built-in Gain or Built-in Loss on those properties for U.S. federal income tax purposes. The partners’ Built-in
Gain or Built-in Loss on such contributed properties will equal the difference between the partners’ proportionate share of the
book value of those properties and the partners’ tax basis allocable to those properties at the time of the contribution as reduced
for any decrease in the Book-Tax Difference.” See “—Income Taxation of the Partnerships and their Partners—Tax
Allocations with Respect to Partnership Properties.” Any remaining gain or loss recognized by the Partnership on the disposition
of the contributed properties, and any gain or loss recognized by the Partnership on the disposition of the other properties, will be
allocated among the partners in accordance with their respective percentage interests in the Partnership.

Our share of any gain realized by a Partnership
on the sale of any property held