AI Earnings Predictions for Generation Income Properties Inc. (GIPR)

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 1, 2025

Generation Income Properties Announces Year End 2024 Financial and Operating Results

TAMPA, FLORIDA – Generation Income Properties, Inc. (NASDAQ: GIPR) ("GIPR" or the "Company") today announced its three and twelve month financial and operating results for the period ended December 31, 2024.

Annual Highlights

(For the 12 months ended December 31, 2024)

• Generated net loss attributable to GIP common shareholders of $8.44 million, or ($1.64) per basic and diluted share.

• Generated Core FFO of $179 thousand, or $0.03 per basic and diluted share.

• Generated Core AFFO of $373 thousand, or $0.07 per basic and diluted share.

FFO and related measures (such as Core FFO and Core AFFO) are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to Core FFO and Core AFFO is included at the end of this release.

Portfolio

• Approximately 60% of our portfolio’s annualized rent as of December 31, 2024 was derived from tenants that have (or whose parent company has) an investment grade credit rating from a recognized credit rating agency of “BBB-” or better. Our largest tenants are the General Service Administration, Dollar General, and the City of San Antonio, who collectively contributed approximately 39% of our portfolio’s annualized base rent as of December 31, 2024.

• Our portfolio is 99% leased and occupied and tenants are currently 100% rent paying.

• Approximately 93% of the leases in our current portfolio (based on ABR as of December 31, 2024) provide for increases in contractual base rent during future years of the current term or during the lease extension periods.

• Average effective annual rental per square foot is $15.08.

Liquidity and Capital Resources

• $647 thousand in total cash and cash equivalents as of December 31, 2024.

• Total mortgage loans, net was $56.3 million as of December 31, 2024.

Financial Results

• During the twelve months ended December 31, 2024, total revenue from operations was 9.8 million, as compared to $7.6 million for the twelve months ended December 31, 2023 The overall revenue increase was driven by the integration of the 13-property portfolio acquired from Modiv in August 2023.

• Operating expenses, including G&A, for the twelve months ended December 31, 2024 were $14.9 million as compared to $11 million for the twelve months ended December 31, 2023 due to increases in depreciation and amortization and interest expense from recent acquisitions. Compensation costs decreased by $312,203, or approximately 23% as management optimized staffing levels and overhead to align with the Company's scale.

• Net loss attributable to common shareholders was $8.4 million for the twelve months ended December 31, 2024 as compared to $6.2 million for the twelve months ended December 31, 2023.

Commenting on the year, a letter from CEO David Sobelman:

To my fellow GIPR Shareholders,

Our stock price is down to around its all-time low and I think it’s important to address that first and acknowledge that it’s the most important topic to cover in this year-end letter. As we release the company’s results for 2024 I want to provide insight into the decisions we made, a recap of 2024 events, key developments since December 31, and our strategy for repositioning parts of our company to emphasize our long-term value.

This letter is long, covering many key topics. To help you navigate to the information most pertinent to you, those topics are outlined below.

• Stock Price and Dividend Policy

• 2024 Recap of Events

• Subsequent Events

• Capital

• The Plan for 2025

An average GIPR shareholder currently owns about 650 shares of the company, which includes approximately 4200 shareholders at our last count. I’m stating this because it’s important to have the context of our current shareholder base as you read some thoughts around the topics that are important to cover.

Stock Price and Dividend Policy

As mentioned, our price is at an all-time low. The frank reason is that we believe the market wants a dividend from their REIT investments, and we don’t currently provide one. In 2024, we suspended our dividend because it wasn’t fully covered by company profits.

Early-stage REITs commonly return investor capital through dividends while scaling. Since our IPO in 2021, we chose to pay dividends from cash, given the positive outlook of the net lease investment market. In order to raise public capital through the issuance of common shares, we needed to stabilize our price through dividends. While this is a traditional growth strategy, it did not materialize as expected due to post-COVID economic pressures affecting the real estate and finance sectors.

Since 2021, we have experienced significant growth in our portfolio. Our portfolio

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

November 15, 2024

Generation Income Properties Announces Third Quarter 2024 Financial and Operating Results

TAMPA, FLORIDA – Generation Income Properties, Inc. (NASDAQ: GIPR) ("GIPR" or the "Company") today announced its three and nine month financial and operating results for the period ended September 30, 2024.

Quarterly Highlights

(For the 3 months ended September 30, 2024)

• Generated net loss attributable to GIP common shareholders of $2.1 million, or ($0.55) per basic and diluted share.

• Generated Core FFO of ($146 thousand), or ($0.03) per basic and diluted share.

• Generated Core AFFO of $100 thousand, or $0.02 per basic and diluted share.

FFO and related measures are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to Core FFO and Core AFFO is included at the end of this release.

Portfolio

• Approximately 60% of our portfolio’s annualized base rent ("ABR") as of September 30, 2024 was derived from tenants that have (or whose parent company has) an investment grade credit rating from a recognized credit rating agency of “BBB-” or better. Our largest tenants are the General Service Administration, Dollar General, EXP Services, Kohl’s Corporation, PRA Holdings, and The City of San Antonio which collectively contributed approximately 69% of our portfolio’s annualized base rent.

• Our portfolio is 89% leased and occupied and tenants are 100% rent paying.

• Approximately 92% of the leases in our current portfolio (based on ABR as of September 30, 2024) provide for increases in contractual base rent during future years of the current term or during the lease extension periods.

• Average effective annual rental per square foot is $14.75.

Liquidity and Capital Resources

• $1.58 million in total cash and cash equivalents as of September 30, 2024.

• Total mortgage loans, net was $59.7 million as of June 30, 2024.

Financial Results

• During the three and nine months ended September 30, 2024, total revenue from operations were $2.4 million and $7.09 million respectively, as compared to $1.8 million and $4.5 million for the three and nine months ended September 30, 2023, respectively. The overall revenue increase was driven by the integration of the 13-property portfolio acquired from Modiv in August 2023.

• Operating expenses, including G&A, for the same periods in the current year were $3.8 million and $11.1 million, respectively, due to increases in depreciation and amortization and interest expense from recent acquisitions.

• Net operating income (“NOI”) for the three months ended September 30, 2024, was $1.7 million and $1.4 million for the same period last year, which is a direct result of the acquisition of properties.

• Net loss attributable to GIPR for the nine months ended September 30, 2024, was $8.3 million as compared to $4 million for the same period last year.

Commenting on the quarter, a letter from CEO David Sobelman:

To the Shareholders and my colleagues at Generation Income Properties, Inc.,

The third quarter of this year presented challenges for our stock price, which reached an all-time low despite the significant transitional events we’ve achieved to position the company for long-term growth and sustainability. I recognize that some shareholders have expressed concerns, indicating that the company's recent dividend suspension holds more weight for them than our long-term outlook. It’s clear that many of our shareholders view their investment primarily for the monthly dividend and the regular income it provides, rather than the intrinsic value of our growing assets. I understand this perspective, especially given that "income" is part of our company name. REITs are fundamentally structured to provide dividends, a practice established since their inception in the 1950s and 1960s, offering a transparent way for investors to engage in real estate markets that might otherwise be inaccessible.

I recently finished reading "Watch That Rat Hole: And Witness the REIT Revolution" by Kenneth D. Campbell, one of the early analysts in the REIT industry. The book discusses how REITs were created to fund single-family home developers, providing the necessary short-term debt for their projects in the post-WWII era. This initiative arose from a pressing need in the United States, as developers struggled to secure funding from traditional banks for their short-term projects. Over time, the REIT structure evolved to include funding not only for debt but also for a variety of property types.

This historical context highlights that, since the industry's inception, many investments have focused on short-term returns. Campbell’s book also notes that economic changes can impact these short-term strategies. When conditions shift—such as inter

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

August 15, 2024

Generation Income Properties Announces Second Quarter 2024 Financial and Operating Results

TAMPA, FLORIDA – Generation Income Properties, Inc. (NASDAQ: GIPR) ("GIPR" or the "Company") today announced its three and six month financial and operating results for the period ended June 30, 2024.

Quarterly Highlights

(For the 3 months ended June 30, 2024)

• Generated net loss attributable to GIP common shareholders of $2.3 million, or ($0.42) per basic and diluted share.

• Generated Core FFO of ($41 thousand), or ($0.01) per basic and diluted share.

• Generated Core AFFO of $162 thousand, or $0.03 per basic and diluted share.

FFO and related measures are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to Core FFO and Core AFFO is included at the end of this release.

Portfolio

• Approximately 60% of our portfolio’s annualized base rent ("ABR") as of June 30, 2024 was derived from tenants that have (or whose parent company has) an investment grade credit rating from a recognized credit rating agency of “BBB-” or better. Our largest tenants are the General Service Administration, Dollar General, EXP Services, and Kohl’s Corporation, PRA Holdings, and City of San Antonio and contributed approximately 69% of our portfolio’s annualized base rent.

• Our portfolio is 89% leased and occupied and tenants are 100% rent paying.

• Approximately 92% of the leases in our current portfolio (based on ABR as of June 30, 2024) provide for increases in contractual base rent during future years of the current term or during the lease extension periods.

• Average effective annual rental per square foot is $14.75.

Liquidity and Capital Resources

• $2.59 million in total cash and cash equivalents as of June 30, 2024.

• Total mortgage loans, net was $56.3 million as of June 30, 2024.

Financial Results

• During the three and six months ended June 30, 2024, total revenue from operations were $2.3 million and $4.7 million respectively, as compared to $1.3 million and $2.7 million for the three and six months ended June 30, 2023, respectively. The overall revenue increase was driven by the integration of the 13 property portfolio acquired from Modiv in August 2023.

• Operating expenses, including G&A, for the same periods were $3.7 million and $7.4 million, respectively, due to increases in depreciation and amortization and interest expense from recent acquisitions.

• Net operating income (“NOI”) for the three months ended June 30, 2024 was $1.6 million and $1 million for the same period last year, which is a direct result of the acquisition of properties.

• Net loss attributable to GIPR for the six months ended June 30, 2024 was $1.5 million as compared to $752 thousand for the same period last year.

Commenting on the quarter, a letter from CEO David Sobelman:

To the Shareholders of Generation Income Properties, Inc.:

It has only been 5 weeks since we last communicated with you, but as we release another earnings report and close out the second quarter of the year, we want to ensure we are keeping you apprised on the important events happening within your company. We think generationally, not day to day, week to week, quarter by quarter or even year to year. That has always been the premise of our company and continues to be today, as our culture and primary investment objectives are expected to remain static throughout any market cycle or influence.

Achievements

Since our last communication, we’ve:

1. Signed a lease with Auburn University (S&P: AA) at an industrial building in Huntsville, AL.

2. Received $2.5 million in cash contributed to our Limited Partnership from a new investor.

3. Entered into an agreement with a holder of common units of our operating partnership whereby we exchanged their common units for Series B-1 preferred units of our operating partnership having a redemption value of $7.15/unit and extended the redemption date on the units to July 2026 from January 2025.

4. Extended the redemption date for membership interests of our equity partner in two of our Norfolk, Virginia properties to February 2027 from February 2025.

5. Management has received indicative terms that are favorable to the Company, for both maturing Bayport loans for our Norfolk, Virginia properties, and expects to close by the end of August 2024.

6. Announced the hiring of CohnReznick as our company's independent registered accounting firm, a replacement for Malone Bailey who served us well up until this point of our growth.

With these recent accomplishments, we can now claim the following:

• We currently have 100% rent collection from our leased properties.

• Our company’s net operating income (NOI) is derived from approximately 68% investment grade te