GENERATION INCOME PROPERTIES, INC. Q3 FY2022 earnings call

• Stable position with 100% rent collection, fixed debt rates below market, and high credit worthiness of tenants.
• Focused on maximizing internal growth and growing the pipeline to navigate market uncertainty.
• Patient with acquisitions, waiting for the right time when assets are priced commensurately with interest rates.
• Maintaining contractual base rent increases, with approximately 3% annual same property rent growth.
• Disciplined underwriting focusing on accretive investments and benefits of an internally managed portfolio.

Total revenue from operations was $1.5 million during the quarter, a year-over-year increase of 43% due to property acquisitions, recoverable revenue, and rent growth. Operating expenses were $2 million. Net operating income was $1.2 million, a 44% increase compared to the same period last year, primarily from natural rent increases and lower building expenses. Net loss attributable to common stockholders for the quarter was $639,000, contrasting with net income of $456,000 in the same period last year. Core AFFO was $358,000, up from $150,000 the previous year, directly attributable to an increase in non-cash expenses.

• Remain patient and disciplined, waiting for optimal acquisition opportunities.
• Keep constant contact with the brokerage community and seek off-market investments.
• JV program is active and ready to deploy capital when the time is right.

• Market uncertainty is present, but the company is positioned to weather it.

Q: Can you provide more color on the transaction market, cap rates, 4Q lease expiration, and dividend?

A: Openly marketed cap rates are still below transaction thresholds, but increasing incrementally. Pipeline is robust. In communication with Maersk regarding the 4Q lease expiration, prepared for them to leave in the first quarter and in discussions with other tenants. Dividend lowered to position the company to grow faster while remaining above market peer payments.

Q: All my questions have been asked, covering lease expiration and dividend.

A: Thanks, Michael.