Company: GMRE
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001104659-25-110926
Chunk: 157

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 424B5
Chunk 157
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 all of the value of the owner’s interest in the entity is
attributable to the entity’s direct or indirect interest in the partnership and (2) a principal purpose of the use of the entity
is to permit the partnership to satisfy the 100-partner limitation. We believe that our Operating Partnership and each other Partnership
in which we own an interest qualifies for the Private Placement Exclusion.

We have not requested, and do not intend to request,
a ruling from the IRS that our Operating Partnership will be classified as a partnership for U.S. federal income tax purposes. If for
any reason our Operating Partnership were taxable as a corporation, rather than as a partnership, for U.S. federal income tax purposes,
we likely would not be able to qualify as a REIT unless we qualified for certain relief provisions. See “—Gross Income Tests”
and “—Asset Tests.” In addition, any change in a Partnership’s status for U.S. federal income tax purposes might
be treated as a taxable event, in which case we might incur tax liability without any related cash distribution. Further, items of income
and deduction of such Partnership would not pass through to its partners, and its partners would be treated as stockholders for tax purposes.
Consequently, such Partnership would be required to pay U.S. federal income tax at corporate rates on its net income, and distributions
to its partners would constitute dividends that would not be deductible in computing such Partnership’s taxable income.

Income Taxation of the Partnerships and their
Partners

Partners, Not the Partnerships, Subject to Tax. A partnership is generally not a taxable entity for U.S. federal income tax purposes. Rather, we are required to take into account
our allocable share of each Partnership’s income, gains, losses, deductions, and credits for any taxable year of such Partnership
ending within or with our taxable year, without regard to whether we have received or will receive any distribution from such Partnership.
However, as discussed below, the tax liability for adjustments to a partnership’s tax returns made as a result of an audit by the
IRS will be imposed on the partnership itself in certain circumstances absent an election to the contrary.

Partnership Allocations. Although a partnership
agreement generally will determine the allocation of income and losses among partners, such allocations will be disregarded for tax purposes
if they do not comply with the provisions of the U.S. federal income tax laws governing partnership allocations. If an allocation is not
recognized for U.S. federal