RRT says Generation Income Properties board ‘fails’ to fulfill fiduciary duty

Resurgent Realty Trust, a shareholder of Generation Income Properties (GIPR), issued a position statement regarding the “continued mismanagement of GIPR and failure of its board of directors to fulfill their fiduciary duty.” The firm said: “Borrowing $1.1M for ‘general corporate purposes,’ which is really G&A and not investments, principal curtailments or a share repurchase program is operating with a complete disregard for fiscal responsibility to and on behalf of the shareholders. David Sobelman as CEO & the entire board are operating ‘reckless abound’ with no understanding of the basic corporate tenet and fiduciary duty as stewards of a publicly traded company. Whether now via the Special Committee or at the next Shareholders Annual Meeting this fall, all this malfeasance will be stopped. Since their IPO in Sept 2021, GIPR has never been profitable in 3.9 years and will not be profitable under the current leadership that has decimated this REIT. These types of actions are not forgivable, and the shareholders have spoken loud and clear as evidenced by the stock price destruction from $10 to $1.40. Management needs to be fired, and the board reconstituted to stabilize this wayward and sinking ship. This is a profoundly serious matter and should be treated as such. Millions have been lost in the hands of David Sobelman as CEO.”