Generation Income Properties Sells $10.5M In Assets To Pay Off Debt, Secures New Loan, And Pursues Strategic Alternatives Including Merger, Recapitalization, Joint Venture, Sale, Or Optimized Public REIT Structure

Generation Income Properties, Inc. (NASDAQ:GIPR) ("GIPR" or the "Company"), a net lease real estate investment trust focused on strategically located, primarily investment-grade single-tenant assets, today provided a business update, including details on recent transactions, operational performance, recapitalization efforts, and the ongoing strategic alternatives process.

Recent Transaction Activity and Financial Progress

In May 2025, GIPR completed the sale of two (2) properties, the Auburn University occupied industrial building in Huntsville, AL and a Starbucks occupied building in Tampa, FL, representing a combined gross sale price of approximately $10.5 million, at cap rates of 4.06% or $121.64 per square foot and 5.82% or $1,568.18 per square foot, respectfully. Proceeds from these sales were used to pay off approximately $10.5 million in debt. GIPR's motivation for these sales was twofold.

GIPR determined that the assets were at their highest value, given current market conditions, and it was an opportunity to realize the liquidity of the assets.

GIPR wanted to completely pay off the one CMBS loan on its balance sheet with the proceeds of these two properties, which left the Company with one property, the 7-Eleven in Washington, DC, completely unencumbered. In June 2025, GIPR received a new loan in the amount of approximately 50% of the value of the 7-Eleven property (approximately $750,000) from its primary lender, Valley National Bank.

These actions align with GIPR's ongoing strategy to strengthen the balance sheet and preserve long-term shareholder value amid a challenging capital markets environment.

Macroeconomic Headwinds and REIT Market Conditions

Management acknowledged that elevated interest rates, limited access to public equity capital, and compressed trading multiples have created significant headwinds for small, publicly traded REITs. Despite these market challenges, GIPR's real estate portfolio continues to demonstrate strong tenant credit quality, 100% rent collection, geographic diversity, and stable cash flows.

Recapitalization/Refinance Efforts Underway

As GIPR continues its efforts to enhance financial flexibility and reduce capital market dependency, it is pursuing several recapitalization strategies, which may include:

Refinancing and recapitalizing all or portions of its preferred equity in its GIP VB SPE, LLC subsidiary and/or its asset-level debt

Asset-level debt placements on select properties

Exploration of strategic equity capital partnerships at the subsidiary level

Strategic Alternatives Process

As previously announced, GIPR's Special Committee initiated a formal review of strategic alternatives, and in connection with such formal review, the Special Committee recently executed an engagement letter with Cantor Fitzgerald & Co. to evaluate a full range of potential outcomes. These may include, but are not limited to:

A merger or strategic combination

A recapitalization or go-private transaction

A joint venture or other strategic capital partnership

A potential sale of the company

Or a continuation as a public REIT under an optimized structure

No assurances can be given regarding the outcome or timing of this review, and GIPR does not intend to comment further unless or until the Board has approved a specific course of action or the process concludes.