GENERATION INCOME PROPERTIES, INC. Q1 FY2022 earnings call

• Acquired three assets in the first quarter valued at $12.6 million, with a weighted average first year yield of 7.2%, 135 basis points higher than average cap rates for net lease transactions in Q1 2022. - Starbucks renewed its lease in Tampa, FL, extending for 5 years, increasing rent by 10%, and investing in renovations. - Closed a long-term refinance of ~$13.5 million from Valley Bank, securing 10-year debt for seven properties with maturities beyond primary lease terms. - Reduced debt exposure from 69% to ~61% of gross asset value. - Replaced part-time CFO with full-time CFO Allison Davies, who is implementing institutional background into accounting and reporting processes. - Portfolio has 100% rent collection since inception, including during COVID-19, and all assets remained open and operating throughout the pandemic.

Total revenue for the first quarter of 2022 was $1.2 million, a 26% year-over-year increase driven by property acquisitions and contractual rent increases. Operating expenses were $1.6 million, up from $1.3 million in the prior year. Net operating income was $929,000, a 23% increase from the same period last year. Net loss attributable to GIPR was $446,000 compared to a loss of $322,000 in the prior year. FFO was a loss of $14,000 versus income of $58,000 in the prior year, and core AFFO was $88,000 compared to $123,000 in the prior year. The portfolio consists of 13 assets across 8 states and DC, with 92% of the portfolio being investment grade or equivalent. The weighted average remaining lease term is 6.1 years, and occupancy has been 100% since inception.

• Acquisitions team is prepared to execute on properties fitting the thesis with a robust pipeline. - Secured long-term refinancing to convert variable rates to fixed, structuring debt maturities to manage cash and hedge against interest rate increases. - American Momentum Bank commitment remains in place with access to $25 million, and potential to increase to $50 million upon a future capital raise of $25 million or more.

• Uncertainties in predicting future results and conditions that could cause actual results to differ from forward-looking statements. - Market dynamics and economic fluctuations that may impact the company's operations and financial performance.

Q: Michael Diana with Maxim Group asks about the Starbucks renewal timing and contribution to second quarter revenue.

A: David Sobelman responds that the Starbucks renewal kicked in during the first quarter, and the Best Buy property contributed rent for the entire quarter.

Q: Michael Diana then asks about the acquisition pipeline and American Momentum commitment.

A: David Sobelman states the acquisitions team has a robust pipeline and the American Momentum $25 million commitment is still in full force with access to the entire amount currently.