GENERATION INCOME PROPERTIES, INC. Q4 FY2021 earnings call

• In September 2021, a successful public offering generated approximately $16.5 million in gross proceeds. - Had a $25 million commitment letter from American Momentum Bank for funding acquisitions. - Strengthened balance sheet by refinancing assets at lower interest rates. - Operating portfolio has 100% rent collection since inception, with all but one tenant having investment grade or equivalent credit ratings. - Acquired 4 properties post-IPO with gross asset value increasing 26% since December 31. - Welcomed new CFO Allison Davies from Regency Centers and Independent Director Gena Cheng with real estate expertise.

The company's portfolio consists of 13 assets across 8 states and the district of Columbia in retail, office, and industrial net lease segments. For the three months and fiscal year ended December 31, 2021, net cash used in operations was $321,000 and $149,000 respectively. The portfolio had 100% occupancy with a weighted average lease term of 5.6 years and a rent coverage ratio of 5.8x across the portfolio.

• Focus on continued external growth through disciplined capital allocation to add properties. - Pursue internal growth by increasing cash flows via contractual rent growth and managing expenses. - Strengthen infrastructure by attracting and retaining talent and developing internal systems. - Aim to expand the shareholder base.

• Cap rates have compressed by about 100 basis points, creating a challenging acquisition environment. - Uncertainties in predicting future results and market conditions which could cause actual results to differ from projections.

Q: Dave, you mentioned your pipeline for potential acquisitions is robust. Can you give us some feel for the state of the acquisition market right now in terms of availability what's going on with cap rates? Those sort of things.

A: Cap rates have compressed about 100 basis points, making it a challenging environment for most investors. However, our new acquisitions have an average cap rate of 7.7%, which is well above the market cap rate for credit quality assets. Our pipeline is robust and supportive of our capital requirements.

Q: Is there any of your various property types or any of them more active than others in the market -- in the availability?

A: We are finding opportunities in the retail, industrial, and office asset classes across different markets to diversify our portfolio.