Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 138

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 138
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 paid for the earlier year. Although we may be able
to avoid U.S. federal income tax on amounts distributed as deficiency dividends, we will be required to pay interest to the IRS based
upon the amount of any deduction we take for deficiency dividends.

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Recordkeeping Requirements

We must maintain certain records in order to qualify
and maintain our qualification as a REIT. In addition, to avoid a monetary penalty, we must request on an annual basis information from
our stockholders designed to disclose the actual ownership of our outstanding shares. We intend to comply with these requirements.

Failure to Qualify

If we fail to satisfy one or more requirements
for REIT qualification, other than the gross income tests and the asset tests, we could avoid disqualification if our failure is due to
reasonable cause and not to willful neglect and we pay a penalty of $50,000 for each such failure. In addition, there are relief provisions
for a failure of the gross income tests and asset tests, as described in “—Gross Income Tests” and “—Asset
Tests.”

If we fail to qualify as a REIT in any taxable
year, and no relief provision applies, we would be subject to U.S. federal corporate income tax. In addition, we may be required to pay
penalties and/or interest with respect to such tax. In calculating our taxable income in a year in which we fail to qualify as a REIT,
we would not be able to deduct amounts paid out to stockholders. In fact, we would not be required to distribute any amounts to stockholders
in that year. In such event, to the extent of our current and accumulated earnings and profits, distributions to stockholders generally
would be taxable as ordinary dividend income. Subject to certain limitations of the U.S. federal income tax laws, corporate stockholders
may be eligible for the dividends received deduction and stockholders taxed at individual rates may be eligible for the reduced U.S. federal
income tax rate of up to 20% on such dividends. Unless we qualified for relief under specific statutory provisions, we also would be disqualified
from taxation as a REIT for the four taxable years following the year during which we ceased to qualify as a REIT. We cannot predict whether
we would qualify for such statutory relief in all circumstances.

Taxation of Taxable U.S. Stockholders

This section is a summary of the rules governing
the U.S. federal income taxation of U.S. stockholders and is for general