Generation Income Properties Reports 28% Revenue Growth to $9.76 Million, Net Loss Increases

Generation Income Properties, Inc. reported a total revenue of $9.76 million for the fiscal year ending December 31, 2024, marking a 28% increase from $7.63 million in the previous year. This growth is attributed to a full year of operations from properties acquired in the Modiv acquisition, which was completed in August 2023. Despite the revenue increase, the company recorded a net loss of $4.87 million, slightly higher than the $4.44 million loss reported in 2023. The increase in losses is primarily due to rising expenses, including general and administrative costs, building expenses, and interest expenses, which collectively rose by approximately 34% year-over-year.

In terms of operational developments, Generation Income Properties, Inc. maintained a high occupancy rate of 99% across its portfolio, which consists of 27 properties as of December 31, 2024. The company’s tenant base includes creditworthy entities, with approximately 60% of annualized rent derived from tenants rated "BBB-" or better. The company also reported that 93% of its leases include provisions for future rent increases, contributing to predictable cash flows. However, the company suspended its regular dividend payments in July 2024, a decision influenced by its ongoing financial challenges and the need to conserve cash.

Strategically, the company made significant acquisitions during the reporting period, including a 30,465 square foot retail property in Ames, Iowa, purchased for $5.5 million, which is leased to Best Buy. Additionally, the company completed the acquisition of a 13-property portfolio from Modiv, valued at $42 million. These acquisitions are part of the company's strategy to expand its portfolio of net-leased properties, which are typically less management-intensive and provide stable cash flows.

The company’s financial position as of December 31, 2024, included total assets of approximately $106.56 million and total liabilities of $73.71 million, resulting in a stockholders' equity of $5.80 million. The company’s liquidity remains a concern, with cash and cash equivalents totaling $612,939, down from $3.12 million in the previous year. The company has indicated that it will continue to seek additional capital through equity offerings and debt financing to support its growth and operational needs.

Looking ahead, Generation Income Properties, Inc. aims to improve its liquidity and profitability through strategic asset management and potential divestitures of underperforming properties. The company has also indicated that it will focus on optimizing its existing portfolio and exploring new acquisition opportunities to enhance its revenue-generating capabilities. However, the ongoing economic conditions and market volatility present challenges that could impact the company's future performance and ability to meet its financial obligations.