Exhibit 99.1
PRIOR PERFORMANCE TABLES
As used herein, the terms “we,” “our” and “us” refer to Generation Income Properties, Inc.
The following Prior Performance Tables (the “Tables”) provide information relating to GIP Fund 1, LLC (“GIP Fund 1”), the program sponsored by our President and Chairman of the Board, Mr. Sobelman, and his affiliates (our “sponsor”).
GIP Fund 1, a private real estate fund, had certain investment objectives similar to ours, including the acquisition and operation of commercial properties; the provision of stable cash flow available for distribution to investors; preservation and protection of capital; and the realization of capital appreciation in the event of an ultimate sale of any properties. GIP Fund 1 focused on single tenant properties essential to the business operations of the tenant; located in primary markets; leased to tenants with stable and/or improving credit quality; and subject to long-term leases with defined rental rate increases or with short-term leases with high-probability renewal and potential for increasing rent. GIP Fund 1 engaged in a private offering in January 2013 to accredited investors only pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and raised approximately $940,000 through the issuance of member units. GIP Fund 1 closed its round of financing in December of 2013 to acquire one real estate property. Using a combination of debt and cash consisting of 97% of the offering proceeds, GIP Fund 1 acquired one existing property in Tampa, Florida for a purchase price of approximately $1.6 million. GIP Fund 1 is no longer active in acquiring more properties. GIP Fund 1 disposed of its sole property on November 30, 2020 by exchanging its sole property in exchange for 24,309 units in GIP LP. Following our acquisition of this property, GIP Fund I was liquidated.
Mr. Sobelman is responsible for the acquisition, operation, maintenance and resale of the real estate properties and real estate-related debt investments for GIP Fund 1. The financial results of GIP Fund 1 thus provide an indication of a prior real estate program for which our sponsor was ultimately responsible and the performance of this program during the periods covered. However, general economic conditions affecting the real estate industry and other factors contribute significantly to financial results.
The Tables presented provide summary unaudited information related to GIP Fund 1. By purchasing shares in our public offering, investors will not acquire any ownership interest in GIP Fund 1 to which the information in the Tables relate and investors should not assume that they will experience returns, if any, comparable to those experienced by the investors in GIP Fund 1.
The information in these Tables should be read together with the summary information under the “Prior Performance Summary” section of this prospectus. The following Tables are included in this prospectus:
| • | Table II—Compensation to Sponsor; |
| • | Table III—Annual Operating Results of Prior Real Estate Programs; |
| • | Table IV—Results of Completed Programs; and |
| • | Table V—Sales or Dispositions of Properties. |
The following tables have been omitted: (i) Table I—Experience in Raising and Investing Funds (no offerings by GIP Fund 1 have closed in the prior three years); and (iv) Table VI—Acquisitions of Properties by Programs (GIP Fund 1 has not acquired any property in the prior three years).
TABLE II
COMPENSATION TO SPONSOR
(UNAUDITED)
This table sets forth the amount and type of compensation paid to our sponsor and affiliates related to GIP Fund 1. The information represents activity since inception.
| GIP Fund 1 | ||||
| Date Offering Commenced |
9/21/2012 | |||
| Dollar Amount Raised |
$ | 940,000 | ||
| Amount Paid to Sponsor from Proceeds of Offering: |
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| Underwriting Fees |
— | |||
| Acquisition Fees: |
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| Real Estate Commissions (1) |
— | |||
| Advisory Fees |
— | |||
| Other |
— | |||
| Other |
— | |||
| Dollar Amount of Cash Generated from Operations Before Deducting Payment to Sponsors |
— | |||
| Amount Paid to Sponsor From Operations: |
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| Asset Management Fee (2) |
— | |||
| Property Management Fees (2) |
$ | 100,824 | ||
| Partnership Management Fees |
— | |||
| Reimbursements |
— | |||
| Leasing Commissions |
— | |||
| Other |
— | |||
| Dollar Amount of Property Sales and Refinancing Before Deduction Payments to Sponsor: |
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| Cash |
— | |||
| Notes |
— | |||
| Amount Paid to Sponsors from Property Sales and Refinancing: |
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| Real Estate Commissions |
— | |||
| Incentive Fees |
— | |||
| Disposition Fees |
— | |||
| Other |
— | |||
| (1) | Calkain Companies LLC, was paid a $48,450 brokerage commission on the transaction since it was the broker for GIP Fund 1. Our sponsor was an equity partner in Calkain Companies, LLC, but did not receive a direct commission on this transaction. |
| (2) | All fees have been allocated to property management. Reflects total fees paid for the years ended December 31, 2013, 2014, 2015, 2016, 2017, 2018, 2019 and 2020 of $79, $12,218, $12,297, $12,297, $12,297, $13,247, $22,006 and $16,383, respectively. |
TABLE III
OPERATING RESULTS OF PRIOR PROGRAMS
(UNAUDITED)
The following sets forth the unaudited operating results of GIP Fund 1 for the years ended December 31, 2013 through December 31, 2020.
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | Total | ||||||||||||||||||||||||||||
| Gross Rental Income |
$ | 5,101 | $ | 139,972 | $ | 140,120 | $ | 135,000 | $ | 134,827 | $ | 132,482 | $ | 148,210 | $ | 146,557 | $ | 982,269 | ||||||||||||||||||
| Less: |
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| Rental operating expenses |
1,055 | 39,161 | 41,070 | 38,123 | 34,428 | 64,074 | 84,362 | 87,787 | 390,060 | |||||||||||||||||||||||||||
| Interest Expense, net |
1,061 | 30,346 | 28,916 | 26,626 | 28,532 | 30,723 | 36,749 | 34,779 | 217,732 | |||||||||||||||||||||||||||
| Depreciation |
1,170 | 28,074 | 28,074 | 28,074 | 28,074 | 27,294 | 27,294 | 23,882 | 191,936 | |||||||||||||||||||||||||||
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| Net Income (GAAP basis) |
1,815 | 42,391 | 42,060 | 42,177 | 43,793 | 10,391 | -195 | 109 | 182,541 | |||||||||||||||||||||||||||
| Taxable Income from Operations (2) |
1,764 | 42,389 | 42,058 | 43,772 | 43,772 | 7,040 | 23,624 | 21,301 | 225,720 | |||||||||||||||||||||||||||
| Summary Statement of Cash Flows |
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| Cash generated from operations (3) |
2,456 | 73,057 | 71,361 | 72,975 | 73,774 | 34,066 | 33,666 | 17,564 | 378,919 | |||||||||||||||||||||||||||
| Cash generated from sales |
— | — | — | — | — | — | — | (10,262 | ) | (10,262 | ) | |||||||||||||||||||||||||
| Cash generated from investing activities |
(1,638,235 | ) | — | — | — | — | — | — | (164,362 | ) | (1,802,597 | ) | ||||||||||||||||||||||||
| Cash generated from financing |
1,655,000 | — | — | — | — | 627,993 | (30,018 | ) | (1,298,359 | ) | 954,616 | |||||||||||||||||||||||||
| Total distributions to investors |
— | (76,260 | ) | (66,000 | ) | (66,000 | ) | (66,000 | ) | (674,500 | ) | (3,000 | ) | (164,362 | ) | (1,116,122 | ) | |||||||||||||||||||
| Operations |
— | (75,513 | ) | (66,000 | ) | (66,000 | ) | (66,000 | ) | (54,176 | ) | (42,799 | ) | (7,008 | ) | (377,496 | ) | |||||||||||||||||||
| Return of capital |
— | (747 | ) | — | — | — | (620,324 | ) | 39,799 | (157,354 | ) | (738,626 | ) | |||||||||||||||||||||||
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| Cash generated after cash distributions to investors |
2,456 | (3,203 | ) | 5,361 | 6,975 | 7,774 | (640,434 | ) | 30,666 | (146,798 | ) | (737,203 | ) | |||||||||||||||||||||||
| Percent of properties remaining unsold |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 0 | % | 100 | % | ||||||||||||||||||
| Distribution Data Per $1,000 Invested (4) |
$ | — | $ | 81.13 | $ | 70.21 | $ | 70.21 | $ | 70.21 | $ | 717.54 | $ | 3.19 | $ | 174.85 | $ | 1,187.34 | ||||||||||||||||||
| Cash Distributions to Investors Sources (on GAAP basis) |
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| - Operating activities |
$ | — | $ | 80.33 | $ | 70.21 | $ | 70.21 | $ | 70.21 | $ | 57.63 | $ | 45.53 | $ | 7.46 | $ | 401.58 | ||||||||||||||||||
| - Investing & financing activities |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| - Other (return of capital) |
— | 0.79 | — | — | — | 659.92 | (42.34 | ) | 167.40 | 785.77 | ||||||||||||||||||||||||||
| (1) | Most recent available year end information |
| (2) | Straight-line rent adjustment is only GAAP basis adjustment. |
| (3) | Cash generated from Operations reported on a non-GAAP basis. |
| (4) | $940,000 was initially invested in the fund. |
TABLE IV
RESULTS OF COMPLETED PROGRAMS
(UNAUDITED)
The following sets forth the unaudited results of Completed Programs for GIP Fund 1 for the years ended December 31, 2013 through December 31, 2020.
508 S. Howard Avenue
| Dollar Amount Raised |
$ | 940,000 | ||
| Number of Properties Purchased |
1 | |||
| Date of Closing of Offering |
12/18/2013 | |||
| Date of First Sale of Property |
11/30/2020 | |||
| Date of Final Sale of Property |
11/30/2020 | |||
| Tax and Distribution Data Per $1,000 Investment |
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| Federal Income Tax Results: |
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| Ordinary income (loss) |
225,720 | |||
| - from operations |
225,720 | |||
| - from recapture |
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| Capital Gain (loss) |
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| Deferred Gain |
164,362 | |||
| Capital |
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| Ordinary income (loss) |
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| Cash Distributions to Investors |
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| Source (on GAAP basis) |
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| Investment income |
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| Return of capital |
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| Source (on cash basis) |
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| - Sales |
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| Refinancing |
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| Operations |
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| Other |
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| Receivable on Net Purchase Money Financing |
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TABLE V
SALES OR DISPOSALS OF PROPERTIES
(UNAUDITED)
The following sets forth the unaudited results of the Sale of Properties for GIP Fund 1 for the years ended December 31, 2013 through December 31, 2020.
| Property |
Date Acquired |
Cash Received Net of Closing Costs |
Mortgage Balance at Time of Sale |
Total | Original Mortgage Financing |
Total Acquisition cost, capital improvement closing and soft costs |
Excess of Property Operating Cash Receipts Over Cash Expenditures Total |
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| 508 S. Howard |
12/13 | (10,262 | ) | 1,286,664 | 1,276,402 | 1,094,904 | 181,498 | |||||||||||||||||||||