EX-99.1 3 gipr-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

Generation Income Properties Inc.

Overview of Unaudited Pro Forma Consolidated Financial Statements

The following unaudited pro forma condensed consolidated financial information of Generation Income Properties, Inc. (the “Company”) gives effect to the disposition of a Starbucks-occupied single-tenant net-leased retail property completed on May 22, 2026 (the “Disposition”). The Company, through its indirect wholly owned subsidiary GIPFL 10002 N Dale Mabry, LLC, sold the property located at 10002 N. Dale Mabry Highway, Tampa, Florida to 10002 N Dale Mabry, LLC, a Florida limited liability company (Andrew R. Livingstone, Manager), as permitted assignee of Andrew Livingstone under the Purchase and Sale Agreement, for a purchase price of $2,964,000, resulting in net proceeds to the Company of $1,959,170 after customary prorations and adjustments.

The unaudited pro forma condensed consolidated balance sheet as of March 31, 2026 gives effect to the Disposition as if it had occurred on March 31, 2026. The unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 2025 and for the three months ended March 31, 2026 give effect to the Disposition as if it had occurred on January 1, 2025.

The unaudited pro forma condensed consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X and is based on the Company’s historical consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

The unaudited pro forma condensed consolidated financial information reflects adjustments that are directly attributable to the Disposition and factually supportable. The adjustments reflected in the unaudited pro forma condensed consolidated statements of operations are also expected to have a continuing impact on the Company’s results of operations. The pro forma adjustments include, among other things:

•
removal of revenues and expenses associated with the disposed properties;
•
elimination of depreciation and amortization related to the disposed properties; and
•
removal of the related real estate assets and liabilities in the pro forma balance sheet.

The unaudited pro forma condensed consolidated financial information has been prepared for illustrative purposes only and does not purport to represent what the Company’s financial position or results of operations would have been had the Dispositions occurred on the dates indicated. The unaudited pro forma condensed consolidated financial information also should not be considered representative of the Company’s future financial position or results of operations.

The unaudited pro forma condensed consolidated financial information should be read in conjunction with the accompanying notes and the Company’s historical consolidated financial statements and related notes incorporated by reference herein.

Generation Income Properties, Inc.

 

Pro Forma Consolidated Balance Sheet

 

March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Starbucks

 

 

Pro Forma

 

 

(unaudited)

 

 

Tampa, FL

 

 

(unaudited)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate

 

 

 

 

 

 

 

 

 

 

 

Land

$

 

19,630,821

 

 

$

 

(1,443,262

)

 

$

 

18,187,559

 

Building and site improvements

 

 

63,882,423

 

 

 

 

(723,763

)

 

 

 

63,158,660

 

Acquired tenant improvements

 

 

2,265,766

 

 

 

 

(20,504

)

 

 

 

2,245,262

 

Acquired lease intangible assets

 

 

9,218,135

 

 

 

 

(112,830

)

 

 

 

9,105,305

 

Less: accumulated depreciation and amortization

 

 

(15,400,673

)

 

 

 

308,379

 

 

 

 

(15,092,294

)

Net real estate investments

$

 

79,596,472

 

 

$

 

(1,991,980

)

 

$

 

77,604,492

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

289,468

 

 

 

 

(324

)

 

 

 

289,144

 

Restricted cash

 

 

34,500

 

 

 

 

-

 

 

 

 

34,500

 

Deferred rent asset

 

 

380,291

 

 

 

 

-

 

 

 

 

380,291

 

Prepaid expenses

 

 

164,844

 

 

 

 

(3,565

)

 

 

 

161,279

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Prepaid guaranty fees - related party

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Accounts receivable

 

 

3,907

 

 

 

 

390

 

 

 

 

4,297

 

Escrow deposits and other assets

 

 

753,127

 

 

 

 

(4,944

)

 

 

 

748,183

 

Held for sale assets

 

 

1,083,054

 

 

 

 

-

 

 

 

 

1,083,054

 

Right-of-use asset, net

 

 

5,969,795

 

 

 

 

-

 

 

 

 

5,969,795

 

Total Assets

$

 

88,275,458

 

 

$

 

(2,000,423

)

 

$

 

86,275,035

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 Accounts payable

$

 

1,614,169

 

 

$

 

(23,755

)

 

 

 

1,590,414

 

 Accrued expenses

 

 

1,494,566

 

 

 

 

(17,421

)

 

 

 

1,477,145

 

 Accrued expense - related party

 

 

1,063,501

 

 

 

 

-

 

 

 

 

1,063,501

 

 Acquired lease intangible liabilities, net

 

 

1,353,103

 

 

 

 

(2,433

)

 

 

 

1,350,670

 

 Deferred rent liability

 

 

137,942

 

 

 

 

-

 

 

 

 

137,942

 

 Lease liability, net

 

 

6,529,157

 

 

 

 

-

 

 

 

 

6,529,157

 

 Loan payable - related party

 

 

6,721,429

 

 

 

 

-

 

 

 

 

6,721,429

 

 Mortgage loans, net of unamortized debt issuance costs and debt discount

 

 

47,337,648

 

 

 

 

(772,708

)

 

 

 

46,564,940

 

 Derivative liabilities

 

 

279,578

 

 

 

 

-

 

 

 

 

279,578

 

 Total liabilities

$

 

66,531,093

 

 

$

 

(816,317

)

 

$

 

65,714,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

 

26,966,173

 

 

$

 

(1,959,170

)

 

$

 

25,007,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 100,000,000 shares authorized; 7,882,731 shares issued and 5,979,661 outstanding at March 31, 2026.

$

 

59,400

 

 

$

 

-

 

 

$

 

59,400

 

 Additional paid-in capital

 

 

30,075,515

 

 

 

 

(1,109,570

)

 

 

 

28,965,945

 

 Accumulated deficit

 

 

(35,749,584

)

 

 

 

1,884,634

 

 

 

 

(33,864,950

)

 Total Generation Income Properties, Inc. Stockholders' Equity

$

 

(5,614,669

)

 

$

 

775,064

 

 

$

 

(4,839,605

)

 

 

 

 

 

 

 

 

 

 

 

 

 Non-Controlling Interest

 

 

392,861

 

 

 

 

-

 

 

 

 

392,861

 

 Total equity

$

 

(5,221,808

)

 

$

 

775,064

 

 

$

 

(4,446,744

)

 

 

 

 

 

 

 

 

 

 

 

 

 Total Liabilities and Equity

$

 

88,275,458

 

 

$

 

(2,000,423

)

 

$

 

86,275,035

 

 

 

Generation Income Properties, Inc.

 

Pro Forma Consolidated Statement of Operations

 

For the Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Starbucks

 

 

Pro Forma

 

 

(unaudited)

 

 

Tampa, FL

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

2,173,736

 

 

$

 

(42,010

)

 

$

 

2,131,726

 

Other income

 

 

10,468

 

 

 

 

-

 

 

 

 

10,468

 

Total revenue

$

 

2,184,204

 

 

$

 

(42,010

)

 

$

#REF!

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

406,443

 

 

$

 

(225

)

 

$

 

406,218

 

Building expenses

 

 

509,738

 

 

 

 

(5,937

)

 

 

 

503,801

 

Depreciation and amortization

 

 

1,134,428

 

 

 

 

(18,379

)

 

 

 

1,116,049

 

Interest expense, net

 

 

981,598

 

 

 

 

(10,968

)

 

 

 

970,630

 

Compensation Costs

 

 

388,689

 

 

 

 

-

 

 

 

 

388,689

 

Total expenses

$

 

3,420,896

 

 

$

 

(35,509

)

 

$

 

3,385,387

 

Operating (loss) income

 

 

(1,236,692

)

 

 

 

(6,501

)

 

 

 

(1,243,193

)

Other expense

 

 

(237

)

 

 

 

-

 

 

 

 

(237

)

Gain on derivative valuation

 

 

155,851

 

 

 

 

-

 

 

 

 

155,851

 

Loss on transfer of LLC interests in satisfaction of debt

 

 

(185,069

)

 

 

 

-

 

 

 

 

(185,069

)

Net loss

$

 

(1,266,147

)

 

$

 

(6,501

)

 

$

 

(1,272,648

)

Less: Net income attributable to non-controlling interests

 

 

864,988

 

 

 

 

-

 

 

 

 

864,988

 

Net loss attributable to Generation income Properties, Inc.

$

 

(2,131,135

)

 

$

 

(6,501

)

 

$

 

(2,137,636

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Weighted Average Shares of Common Stock Outstanding - Basic & Diluted

 

 

6,814,332

 

 

 

 

 

 

 

 

6,814,332

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(0.31

)

 

 

 

 

 

$

 

(0.31

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties, Inc.

 

Pro Forma Consolidated Statement of Operations

 

For the Year Ended December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Starbucks

 

 

Pro Forma

 

 

(unaudited)

 

 

Tampa, FL

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

9,698,991

 

 

$

 

(173,355

)

 

$

 

9,525,636

 

Other income

 

 

40,951

 

 

 

 

(59

)

 

 

 

40,892

 

Total revenue

$

 

9,739,942

 

 

$

 

(173,414

)

 

$

 

9,566,528

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

2,191,051

 

 

$

 

(1,693

)

 

$

 

2,189,358

 

Building expenses

 

 

2,529,527

 

 

 

 

(24,932

)

 

 

 

2,504,595

 

Depreciation and amortization

 

 

4,995,717

 

 

 

 

(73,517

)

 

 

 

4,922,200

 

Interest expense, net

 

 

5,771,280

 

 

 

 

(57,421

)

 

 

 

5,713,859

 

Compensation Costs

 

 

1,240,282

 

 

 

 

-

 

 

 

 

1,240,282

 

Total expenses

$

 

16,727,857

 

 

$

 

(157,563

)

 

$

 

16,570,294

 

Operating (loss) income

 

 

(6,987,915

)

 

 

 

(15,851

)

 

 

 

(7,003,766

)

Other expense

 

 

(287

)

 

 

 

50

 

 

 

 

(237

)

Loss on derivative valuation

 

 

(335,344

)

 

 

 

-

 

 

 

 

(335,344

)

Dead deal expense

 

 

(75,502

)

 

 

 

-

 

 

 

 

(75,502

)

Loss on extinguishment of debt

 

 

(926,398

)

 

 

 

 

 

 

 

 

Gain on sale of property

 

 

1,936,446

 

 

 

 

 

 

 

 

 

Net loss

$

 

(6,389,000

)

 

$

 

(15,801

)

 

$

 

(6,404,801

)

Less: Net income attributable to non-controlling interests

 

 

3,951,904

 

 

 

 

-

 

 

 

 

3,951,904

 

Net loss attributable to Generation income Properties, Inc.

$

 

(10,340,904

)

 

$

 

(15,801

)

 

$

 

(10,356,705

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Weighted Average Shares of Common Stock Outstanding - Basic & Diluted

 

 

5,165,879

 

 

 

 

 

 

 

 

5,165,879

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(2.00

)

 

 

 

 

 

$

 

(2.00

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties Inc.

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

 

Note 1 – Basis of Presentation

 

The unaudited pro forma condensed consolidated financial statements are presented in accordance with Article 11 of Regulation S-X and give effect to the disposition of a Starbucks-occupied single-tenant net-leased retail property located at 10002 N. Dale Mabry Highway, Tampa, Florida, completed on May 22, 2026 (the “Disposition”), as described in the accompanying Overview of Unaudited Pro Forma Condensed Consolidated Financial Statements.

The unaudited pro forma condensed consolidated balance sheet as of March 31, 2026 is presented as if the Disposition occurred on that date. The unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 2025 and for the three months ended March 31, 2026 are presented as if the Dispositions occurred on January 1, 2025.

 

The pro forma adjustments are based on currently available information and assumptions that management believes are reasonable.

The unaudited pro forma condensed consolidated financial statements are presented for informational purposes only and are not necessarily indicative of what the Company’s consolidated financial position or results of operations would have been had the Disposition been completed on the dates assumed, nor are they necessarily indicative of future consolidated financial condition, results of operations, or cash flows.

 

Note 2 – Pro Forma Adjustments

 

The following pro forma adjustments are directly attributable to the Disposition and are factually supportable.

(a) Removal of Net Real Estate Assets and Related Equity Impact

 

Represents the removal of the historical carrying values of the disposed properties, including land, buildings and improvements, tenant improvements, and accumulated depreciation. The resulting difference between the net book value and the estimated sales proceeds, net of estimated closing costs and other transaction-related adjustments, is reflected as an adjustment to retained earnings within stockholders’ equity in the unaudited pro forma condensed consolidated balance sheet.

 

(b) Removal of Property-Level Indebtedness

 

Represents the removal of mortgage debt secured by the disposed properties that was repaid in connection with the Disposition, including the elimination of any unamortized deferred financing costs associated with the extinguished debt.

 

(c) Removal of Historical Operating Results

 

Represents the elimination of rental revenues, property operating expenses, and depreciation and amortization associated with the disposed properties for the periods presented, as the pro forma financial statements assume the Disposition occurred on January 1, 2025.

 

(d) Removal of Interest Expense Associated with Property-Level Debt

 

Represents the elimination of interest expense associated with the mortgage debt secured by the disposed properties for the periods presented, as such debt was repaid in connection with the Disposition.