GENERATION INCOME PROPERTIES, INC. Q2 FY2022 earnings call

Portfolio and Growth - Current portfolio has 13 assets with $61M gross value, 92% investment grade tenants, 29% y-o-y growth in gross asset value. Maintaining 92% contractual rent increases. - Refinanced 7 properties with long-term debt at 3.85%, with no mortgage debt expiring until mid-2024. - Pipeline of assets meeting investment criteria but market slowdown; entered agreement to redeem LP units for common shares. - Attended NAREIT conference, gained interest in the company's investment thesis and growth plans. ### Financials - 100% rent collection and 100% occupancy since inception. Weighted average remaining lease term is 5.8 years. - $25M commitment from American Momentum Bank increased to $50M for future purchases. - Increased ownership in common investment to 50%, with strong performance. - Revenue up 40%, operating expenses up, net loss due to expenses, but strong balance sheet with healthy cash balance.

Generation Income Properties' portfolio consists of 13 assets with a gross asset value of approximately $61 million. Revenue from operations for the second quarter was $1.4 million, a year-over-year increase of 40% due to property acquisitions, increased recoverable expenses, and contractual rent increases. Net operating income was $1.1 million, a 28% increase from the same period last year. Core AFFO was $36,000 compared to $108,000 in the prior year. 92% of the portfolio in terms of annualized base rent is investment grade made or equivalent.

• Focus on growing portfolio with high-quality assets using $50M commitment. - Anticipating covering dividend with future acquisitions.

• Uncertainty in market conditions and potential economic fluctuations. - Bid-ask spread widening due to seller and buyer expectations regarding asset pricing.

Q: Can you provide color on the cap rate for different subsectors?

A: Research shows average cap rates for all net lease properties hover around 6.5%, most of our assets have been purchased above 7%, and pipeline assets are looked at at that cap rate or higher.

Q: How should we think about allocation between retail, industrial and office in the acquisition pipeline?

A: Our pipeline consists of all three asset classes, and we'll go after the best assets available with our accessible capital when the time comes.

Q: How should we think about common dividend coverage going forward?

A: Covering the dividend is a priority, and we're anticipating we'll be able to cover it with future acquisitions.