GENERATION INCOME PROPERTIES, INC. Q2 FY2023 earnings call

• On August 10, 2023, completed the acquisition of a 13-property portfolio that nearly doubled the portfolio size. - The transaction was financed with $21 million in mortgage debt, $9 million in cash, and $12 million in newly issued redeemable preferred shares. - The portfolio includes 76% investment-grade tenancy, with 11 national retailer credit tenanted assets and mission-critical properties. - Weighted average remaining lease term is now approximately 5.2 years. - Emphasized the relational core value in the acquisition process with Modiv Inc., a New York Stock Exchange listed net lease REIT.

Total revenue from operations during the quarter was $1.3 million, a slight year-over-year decrease due to one tenant vacancy in a Norfolk, Virginia property. Operating expenses for the quarter ended were $2 million, remaining flat year-over-year. Net operating income was $1 million compared to $1.1 million in the same period last year, also affected by the tenant vacancy. Net loss attributable to common stockholders for the quarter was $881,000 versus $1 million in the same period last year, related to the loss on debt extinguishment from 2022. Core AFFO was a loss of $33,000 compared to income of $36,000 in the prior year, also due to the tenant vacancy. The recent acquisition on August 10, 2023, was a 13-property, 202,000 square foot, $42 million single tenant net lease acquisition with a 7.55% cap rate. The portfolio is 76% investment-grade tenancy, with retail assets at 55% and gross asset value over $100 million.

• Believes the market may be turning in their favor to allow continuation of external growth plans. - Focus remains on acquiring shorter-term high-quality assets to the portfolio. - Confident in continuing growth with current infrastructure without adding significant staff or incurring meaningful additional expenses.

Q: Does that mean you own these properties then?

A: That’s correct. We currently own them.

Q: So, they’ll produce income immediately then, right?

A: That’s exactly right.

Q: What’s the prospect given this of the dividend of the earnings from the accretion here covering the dividend?

A: We are still working on that. While we still won’t cover our dividends after this transaction, we are confident with our continued growth will anticipate being able to in the near term.

Q: Given the size of this deal, do you have the management capacity to pursue other transactions pretty quickly, or is it going to be a digestion period?

A: Yes. We feel like our management team and just the way that we overall operate, which is in a fairly frugal manner is going to allow us to increase the number of assets that we have in our portfolio with our current infrastructure. So, we feel like we can continue to grow without adding any staff or incurring meaningful additional expenses.