Generation Income Properties reports FY24 AFFO per share 7c

Reports FY24 revenue $9.8M vs. $7.6M last year. CEO David Sobelman said, “As previously mentioned, when we did our largest transaction in 2023, we made the decision to take on expensive debt with the understanding that the cap rate would be fixed but the debt could be adjusted as time went on. These assets have performed as expected and remained profitable at the property level, but we believe there is an opportunity to reduce our interest rate in these assets and increase their profitability and spread between our cost of capital and going-in cap rate for the benefit of the company. Recapitalize equity We have some equity that needs to be addressed. We knew that when we originally took the Loci Preferred equity, and I led the decision to do so because the inflection point was either not grow at all or grow and recapitalize the equity as fast as possible. We are hyper-focused on replacing the preferred equity with either new, less expensive equity and/or less expensive debt in order to provide some stability to our assets. Recycle Capital I have heard that the name of our company doesn’t match our investment thesis. Some people that I’ve spoken with, including shareholders and equity partners, originally believed that we just bought assets to hold indefinitely and that this was the “Generational” outlook we had. Although we do take a generational, long-term focus, we acknowledge that our generational focus requires us to be nimble and flexible at times. Our hands-on asset management allows us to find gaps in our assets, tenants, real estate and other long-term investments in order to make decisions on whether or not we should buy, hold, sell or refinance. By selling and repositioning capital, this strengthens our balance sheet by identifying and executing on opportunities to dispose of under-performing assets or properties that are not core to our investment thesis and we will continue to review our portfolio to identify these opportunities. If we’re successful with our plan to refinance our properties, sell assets and reposition parts of our portfolio, we’ll use the capital derived from those events to reinvest into the company in the form of purchasing new assets, paying down additional debt, paying down some preferred equity or into the overall operations of the company. UPREITs We’ve discussed Umbrella Partnership Real Estate Investment Trusts transactions (UPREITs) in the past, sometimes these are called contributions or 721 exchanges. We’ve successfully used this growth mechanism since early in our life cycle. However, since there is a drastic decline in overall transaction volume in the net lease real estate industry, we believe UPREITs have become popular, and our acquisitions team has developed a pipeline of potential UPREIT assets that is larger than any time in the company’s history. The main driver of why someone would contemplate these types of transactions is: They trust our management team. They want a tax-deferred solution for themselves. They don’t want to do a 1031 exchange and thereby have the associated continued ownership responsibilities. They are planning for a time when they may not want to be actively involved in their real estate holdings. They are planning their estates, so their heirs do not have to own real estate assets. They are trying to solve for a “friendly” way to dissolve a partnership and have each partner make their own decisions on how to manage their equity. They are unable to sell their asset in a traditional method. They want to continue to receive income while they no longer have ownership responsibilities. Decrease General and Administrative Expenses While we’ve always been somewhat frugal, we realize that we should be mindful of every expense in this market. We have looked closely, line by line, at our expenses and made determinations of what was helpful to have but not immediately and directly influencing our path to growth. Raise new capital for acquisitions and operations As we’ve already proven this year, we’re able to raise new capital at the operating partnership level and will continue to make this a primary effort going forward. Dividend Policy Our major intent is to reinstate our dividend as fast as possible, and we believe these activities will bring us closer to that this year.”