PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements


Generation Income Properties, Inc
Consolidated Balance Sheets


		As of September 30,				As of December 31,
		2025				2024
		(unaudited)
Assets
Investments in real estate
Land	$		20,055,577		$		23,288,811
Building and site improvements			67,133,859				67,647,250
Acquired tenant improvements			2,434,465				2,384,076
Acquired lease intangible assets			9,444,402				10,504,740
Less: accumulated depreciation and amortization			(14,065,544	)			(12,462,091	)
Net real estate investments	$		85,002,759		$		91,362,786
Cash and cash equivalents			247,288				612,939
Restricted cash			34,500				34,500
Deferred rent asset			382,377				331,837
Prepaid expenses			362,681				140,528
Accounts receivable			6,144				48,118
Escrow deposits and other assets			675,298				1,233,123
Held for sale assets			10,726,355				6,732,001
Right-of-use asset, net			6,008,618				6,067,958
Total Assets	$		103,446,020		$		106,563,790

Liabilities and Equity
Liabilities
Accounts payable	$		611,408		$		171,262
Accrued expenses			1,971,367				1,127,896
Accrued expense - related party			949,026				683,347
Acquired lease intangible liabilities, net			1,445,993				1,036,274
Insurance payable			128,838				40,835
Deferred rent liability			173,658				176,017
Lease liability, net			6,503,013				6,464,901
Loan payable - related party			7,614,689				5,500,000
Mortgage loans, net of unamortized debt discount of $1,174,962 and $1,103,336 at September 30, 2025 and December 31, 2024, respectively, and debt issuance costs			54,587,784				58,340,234
Derivative liabilities			534,198				169,685
Total liabilities	$		74,519,974		$		73,710,451

Redeemable Non-Controlling Interests			32,459,949				26,664,545

Stockholders' (Deficit) Equity
Common stock, $0.01 par value, 100,000,000 shares authorized; 5,447,772 and 5,443,188 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively.			54,431				54,431
Additional paid-in capital			29,277,797				29,019,047
Accumulated deficit			(33,258,992	)			(23,277,545	)
Total Generation Income Properties, Inc. Stockholders' (Deficit) Equity	$		(3,926,764	)	$		5,795,933

Non-Controlling Interest	$		392,861		$		392,861
Total equity	$		(3,533,903	)	$		6,188,794

Total Liabilities and Equity	$		103,446,020		$		106,563,790

The accompanying notes are an integral part of these unaudited consolidated financial statements.


Generation Income Properties, Inc
Consolidated Statements of Operations
(unaudited)

	Three Months ended September 30,							Nine Months ended September 30,
	2025			2024			2025				2024
Revenue
Rental income	$	2,454,848		$	2,326,980		$		7,248,050		$	6,850,092
Other income		15,261			73,302				35,924			242,598
Total revenue	$	2,470,109		$	2,400,282		$		7,283,974		$	7,092,690

Expenses
General and administrative expense		585,193			577,565				1,643,464			1,632,018
Building expenses		635,717			729,062				1,975,060			2,067,356
Depreciation and amortization		1,287,112			1,068,081				3,844,454			3,474,918
Interest expense, net		1,162,436			1,098,608				4,429,454			3,142,489
Compensation costs		498,983			296,399				939,670			816,605
Total expenses	$	4,169,441		$	3,769,715		$		12,832,102		$	11,133,386
Operating loss		(1,699,332	)		(1,369,433	)			(5,548,128	)		(4,040,696	)
Other expense		-			-				(286	)		-
Loss on derivative valuation		(11,256	)		(734,116	)			(427,081	)		(308,570	)
Dead deal expense		(7,266	)		-				(35,160	)		(35,873	)
Loss on held for sale asset valuation		-			-				-			(1,058,994	)
Loss on extinguishment of debt		-			-				(926,398	)		-
Loss on sale of property		-			-				(44,782	)		-
Net loss	$	(1,717,854	)	$	(2,103,549	)	$		(6,981,835	)	$	(5,444,133	)
Less: Net income attributable to non-controlling interests		1,109,106			866,047				2,999,612			2,612,405
Net loss attributable to Generation Income Properties, Inc.	$	(2,826,960	)	$	(2,969,596	)	$		(9,981,447	)	$	(8,056,538	)
Less: Preferred stock dividends		-			-				-			95,000
Net loss attributable to common shareholders	$	(2,826,960	)	$	(2,969,596	)	$		(9,981,447	)	$	(8,151,538	)

Total Weighted Average Shares of Common Stock Outstanding – Basic & Diluted		5,443,538			5,433,833				5,444,150			5,083,640

Basic & Diluted Loss Per Share Attributable to Common Stockholders	$	(0.52	)	$	(0.55	)	$		(1.83	)	$	(1.60	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.


Generation Income Properties Inc
Consolidated Statements of Changes in Equity (Deficit), Redeemable Preferred Stock, and Redeemable Non-Controlling Interests
(unaudited)

	Common Stock				Additional Paid-In Capital			Accumulated Deficit			Stockholders' Equity			Non-Controlling Interests			Total Equity			Redeemable Preferred Stock			Redeemable Non-Controlling Interests
	Shares		Amount
Balance, December 31, 2023		2,620,707	$	26,207	$	18,472,049		$	(14,833,058	)	$	3,665,198		$	406,131		$	4,071,329		$	11,637,616		$	18,812,423
Restricted stock compensation		-		-		94,935			-			94,935			-			94,935			-			-
Stock issuance costs		-		-		(61,938	)		-			(61,938	)		-			(61,938	)		-			-
Cashless exercise of warrants		4,551		46		(46	)		-			-			-			-			-			-
Conversion of preferred stock to Common stock		2,794,597		27,946		11,609,670			-			11,637,616			-			11,637,616			(11,637,616	)		-
Distribution on Non-Controlling Interests		-		-		-			-			-			(2,844	)		(2,844	)		-			(267,833	)
Dividends on preferred stock		-		-		-			-			-			-			-			(95,000	)		-
Dividends paid on common stock		-		-		(525,106	)		-			(525,106	)		-			(525,106	)		-			-
Net (loss) income for the period		-		-		-			(2,920,220	)		(2,920,220	)		(7,582	)		(2,927,802	)		95,000			953,706
Balance, March 31, 2024		5,419,855	$	54,199	$	29,589,564		$	(17,753,278	)	$	11,890,485		$	395,705		$	12,286,190		$	-		$	19,498,296
Restricted stock compensation		-		-		94,935			-			94,935			-			94,935			-			-
Stock issuance costs		-		-		(15,450	)		-			(15,450	)		-			(15,450	)		-			-
Cashless exercise of warrants		3,333		33		(33	)		-			-			-			-			-			-
Issuance of Redeemable Non-Controlling Interests		-		-		-			-			-			-			-			-			2,500,000
Distribution on Non-Controlling Interests		-		-		-			-			-			(2,844	)		(2,844	)		-			(271,090	)
Dividends paid on common stock		-		-		(634,407	)		-			(634,407	)		-			(634,407	)		-			-
Net (loss) income for the period		-		-		-			(2,261,722	)		(2,261,722	)		-			(2,261,722	)		-			800,234
Balance, June 30, 2024		5,423,188	$	54,232	$	29,034,609		$	(20,015,000	)	$	9,073,841		$	392,861		$	9,466,702		$	-		$	22,527,440
Restricted stock compensation		-		-		94,934			-			94,934			-			94,934			-			-
Issuance of Redeemable Non-Controlling Interests		-		-		-			-			-			-			-			-			3,080,000
Distribution on Non-Controlling Interests		-		-		-			-			-			-			-			-			(337,297	)
Net (loss) income for the period		-		-		-			(2,969,596	)		(2,969,596	)		-			(2,969,596	)		-			866,047
Balance, September 30, 2024		5,423,188	$	54,232	$	29,129,543		$	(22,984,596	)	$	6,199,179		$	392,861		$	6,592,040		$	-		$	26,136,190

Balance, December 31, 2024		5,443,188	$	54,431	$	29,019,047		$	(23,277,545	)	$	5,795,933		$	392,861		$	6,188,794		$	-		$	26,664,545
Issuance of Redeemable Non-Controlling Interests		-		-		-			-			-			-			-			-			4,209,154
Distribution on Non-Controlling Interests		-		-		-			-			-			-			-			-			(405,648	)
Net (loss) income for the period		-		-		-			(2,731,859	)		(2,731,859	)		-			(2,731,859	)		-			934,399
Balance, March 31, 2025		5,443,188	$	54,431	$	29,019,047		$	(26,009,404	)	$	3,064,074		$	392,861		$	3,456,935		$	-		$	31,402,450


Issuance of Redeemable Non-Controlling Interests	-		-		-		-			-			-		-					-
Distribution on Non-Controlling Interests	-		-		-		-			-			-		-					(427,358	)
Net (loss) income for the period	-		-		-		(4,422,628	)		(4,422,628	)		-		(4,422,628	)				956,108
Balance, June 30, 2025	5,443,188	$	54,431	$	29,019,047	$	(30,432,032	)	$	(1,358,554	)	$	392,861	$	(965,693	)	$	-	$	31,931,200
Restricted stock compensation	-		-		258,750		-			258,750			-		258,750			-		-
Cashless exercise of warrants	4,584		-		-		-			-			-		-			-		-
Distribution on Non-Controlling Interests	-		-		-		-			-			-		-			-		(580,356	)
Net (loss) income for the period	-		-		-		(2,826,960	)		(2,826,960	)		-		(2,826,960	)	$	-		1,109,106
Balance, September 30, 2025	5,447,772	$	54,431	$	29,277,797	$	(33,258,992	)	$	(3,926,764	)	$	392,861	$	(3,533,903	)	$	-	$	32,459,950

The accompanying notes are an integral part of these unaudited consolidated financial statements.


Generation Income Properties, Inc
Consolidated Statements of Cash Flows
(unaudited)

	Nine Months Ended September 30,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(6,981,835	)	$	(5,444,133	)
Adjustments to reconcile net loss to cash provided by operating activities
Depreciation of building and site improvements		2,461,135			2,142,914
Amortization of acquired tenant improvements		285,911			241,870
Amortization of in-place leases		1,097,408			1,090,135
Amortization of above-market leases		305,311			305,312
Amortization of below-market leases		(133,000	)		(101,406	)
Amortization of above-market ground lease		(549	)		(549	)
Amortization of debt issuance costs		137,097			156,091
Amortization of debt discount		97,216			-
Restricted stock unit compensation		258,750			284,804
Non-cash ground lease expense		59,340			64,149
Dead deal expense		35,160			35,873
Loss on derivative valuation		427,081			308,570
Loss on held for sale asset valuation		-			1,058,994
Loss on extinguishment of debt		926,398			-
Loss on sale of property		44,782			-
Changes in operating assets and liabilities
Accounts receivable		14,416			76,617
Escrow and other assets		432,957			(185,932	)
Deferred rent asset		(50,540	)		670,424
Prepaid expenses		(719,726	)		(166,558	)
Prepaid guaranty fees - related party		-			-
Accounts payable		440,146			(327,476	)
Accrued expenses		907,472			641,342
Accrued expenses - related party		334,870			-
Lease liability		38,112			37,443
Deferred rent liability		(2,359	)		(104,974	)
Net cash provided by operating activities		415,553			783,511

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of land, buildings, other tangible and intangible assets		-			(5,960,892	)
Proceeds from sale of land, buildings, other tangible and intangible assets		10,333,595			-
Net cash provided by investing activities		10,333,595			(5,960,892	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of redeemable non-controlling interests		-			5,580,000
Proceeds of issuance on loan payable - related party		1,610,000			-
Repayment of other payable - related party		-			(1,357,380	)
Mortgage loan borrowings		750,000			2,217,350
Mortgage loan repayments		(11,436,360	)		(639,599	)
Debt extinguishment costs		(640,180	)		-
Equity issuance costs		-			(77,421	)
Debt issuance costs		(72,900	)		-
Insurance financing borrowings		380,315			400,889
Insurance financing repayments		(292,312	)		(285,406	)
Distribution on non-controlling interests		(1,413,362	)		(881,907	)
Dividends paid on preferred stock		-			(190,000	)
Dividends paid on common stock		-			(1,159,481	)
Net cash used in financing activities		(11,114,799	)		3,607,045

Net decrease in cash and cash equivalents		(365,651	)		(1,570,336	)
Cash and cash equivalents and restricted cash - beginning of period		647,439			3,151,946
Cash and cash equivalents and restricted cash - end of period	$	281,788		$	1,581,610

CASH TRANSACTIONS
Interest paid	$	4,454,725		$	1,243,608
NON-CASH TRANSACTIONS
Assumption of loans in connection with property acquisitions	$	7,023,895		$	-
Issuance of Series B-2 Preferred Units in connection with property acquisitions	$	4,209,153		$	-


Conversion of Preferred Stock into Common Stock	$	-	$	11,637,616
Stock issued for cashless exercise of Investor Warrants	$	-	$	79
Deferred distribution on redeemable non-controlling interests	$	-	$	2,280,471

The accompanying notes are an integral part of these unaudited consolidated financial statements.

GENERATION INCOME PROPERTIES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Nature of Operations

Generation Income Properties, Inc. (the “Company”) was formed as a Maryland corporation on September 19, 2015. The Company is an internally managed real estate investment company focused on acquiring and managing income-producing retail, office and industrial properties net leased to high quality tenants in major markets throughout the United States.

The Company formed Generation Income Properties L.P. (the “Operating Partnership”) in October 2015. Substantially all of the Company’s assets are held by, and operations are conducted through, the Operating Partnership or its direct or indirect subsidiaries. The Company is the general partner of the Operating Partnership and as of September 30, 2025 owned 99.6% of the outstanding common units of the Operating Partnership. The Company formed a Maryland entity GIP REIT OP Limited LLC in 2018 that owns 0.001% of the Operating Partnership.

The Company places each property in a separate entity which may have a Redeemable Non-Controlling interest as a member.

As of September 30, 2025, the Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis owned 28 properties.

Management’s Liquidity Plans and Going Concern

On August 27, 2014, FASB issued ASU 2014-05, Disclosure of Uncertainties about an Entity’s ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern within one year from financial statement issuance and to provide related footnote disclosures in certain circumstances. In accordance with ASU 2014-05, management’s analysis can only include the potential mitigating impact of management’s plans that have not been fully implemented as of the issuance date if (a) it is probable that management’s plans will be effectively implemented on a timely basis, and (b) it is probable that the plans, when implemented, will alleviate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. GAAP applicable to a going concern. This presentation contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described below.

For the nine months ended September 30, 2025, the Company provided operating cash flows of $415,553 and had cash on hand of $281,788 as of September 30, 2025. As a result of our recurring losses, our projected cash requirement to cover operating needs, and our current liquidity, management's plans have comprised refinancing and extending terms for preferred equity and loans and optimizing portfolio assets and divesting where property performance has not met management objectives or where market conditions provide favorable opportunities. The Company's ability to continue as a going concern has been dependent upon implementing and executing management's plan.

In May 2025, the Board of Directors appointed a Special Committee to support strategic initiatives for the Company. The Special Committee has retained a transaction advisor and counsel to evaluate opportunities to optimize shareholder value and benefits to the Company.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 28, 2025. The results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025.

The preparation of the consolidated financial statements is in conformity with U.S. GAAP. The Company adopted the calendar year as its basis of reporting. Certain immaterial prior year amounts have been reclassified for consistency with the current period presentation.

Consolidation

The accompanying consolidated financial statements include the accounts of Generation Income Properties, Inc. and the Operating Partnership and all of the direct and indirect wholly owned subsidiaries of the Operating Partnership and the Company’s subsidiaries. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements.

The consolidated financial statements include the accounts of all entities in which the Company has a controlling interest. The ownership interests of other investors in these entities are recorded as non-controlling interests or redeemable non-controlling interest. Non-controlling interests are adjusted each period for additional contributions, distributions, and the allocation of net income or loss attributable to the non-controlling interests. Investments in entities for which the Company has the ability to exercise significant influence over, but does not have financial or operating control, are accounted for using the equity method of accounting. Accordingly, the Company’s share of the earnings (or losses) of these entities are included in consolidated net income or loss.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of commitments and contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change significantly if economic conditions were to weaken.

Cash

The Company considers all demand deposits, cashier’s checks and money market accounts to be cash equivalents. Amounts included in restricted cash represent funds owned by the Company related to tenant escrow reimbursements and immediate capital repair reserve. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Consolidated Statements of Cash Flows:


	As of September 30,		As of September 30,
	2025		2024
Cash and cash equivalents	$	247,288	$	1,547,110
Restricted cash		34,500		34,500
Cash and cash equivalents and restricted cash	$	281,788	$	1,581,610

Revenue Recognition

The Company leases real estate to its tenants under long-term net leases which the Company accounts for as operating leases. Those leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Deferred rent liability includes $194,083 and $196,442 of prepaid rent as of September 30, 2025 and December 31, 2024, respectively.

The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates, and economic conditions in the area where the property is located. In the event that uncollectibility exists with respect to any tenant changes, the Company would record an allowance with a corresponding reduction to Rental income. The Company’s review of collectability of charges under its operating leases includes any accrued rental revenues related to the straight-line rents. There were no allowances for receivables recorded during three and nine months ended September 30, 2025 or 2024.

The Company’s leases provide for reimbursement from tenants for common area maintenance (“CAM”), insurance, real estate taxes and other operating expenses (“recoverable costs”). A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued.

The Company often recognizes above- and below-market lease intangibles in connection with acquisitions of real estate. The capitalized above- and below-market lease intangibles are amortized to rental income over the remaining term of the related leases.

Stock-Based Compensation

The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in compensation costs based on their fair values on the date of grant. Stock-based compensation expense, net of forfeitures, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards.

Investments in Real Estate

Acquisitions of real estate are recorded at cost. The Company assigns the purchase price of real estate to tangible and intangible assets and liabilities based on fair value. Tangible assets consist of land, buildings, site improvements, and tenant improvements. Intangible assets and liabilities consist of the value of in-place leases and above- or below-market leases assumed with the acquisition. At the time of acquisition, the Company assesses whether the purchase of the real estate falls within the definition of a business under Accounting Standards Codification (“ASC”) 805,"Business Combinations," and to date has concluded that all asset transactions have been asset acquisitions. Therefore, each acquisition has been recorded at the purchase price whereas assets and liabilities, inclusive of closing costs, are allocated to land, building, site improvements, tenant improvements, and intangible assets and liabilities based upon their relative fair values at the date of acquisition.

The fair value of the in-place leases are estimated as the cost to replace the leases including loss of rent, commissions and legal fees. The in-place leases are amortized over the remaining term of the leases as amortization expense. The fair value of an above- or below-market lease is estimated as the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated market lease rate expected over the remaining non-cancelable life of the lease at the date of acquisition. The capitalized above- or below-market lease values are amortized as a decrease or increase to rental income over the remaining term of the lease inclusive of the renewal option periods that are considered probable at acquisition.

Depreciation Expense

Real estate and related assets are stated net of accumulated depreciation. Renovations, replacements and other expenditures that improve or extend the life of assets are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the

estimated useful life of the buildings, which are generally between 15 and 50 years, and site improvements, which are generally 5 to 9 years. Tenant improvements are amortized over the lease terms of the tenants, which is generally between 2 and 10 years, with two tenant improvements amortized over 27 years.

Lease Liabilities

The Company has a certain property within its portfolio that is on land subject to a ground lease with a third party, which is classified as an operating lease. Accordingly, the Company owns only a long-term leasehold in this property. The building and improvements constructed on the leased land are capitalized as investment in real estate and are depreciated over the shorter of the useful life of the improvements or the lease term.

Under ASC 842, "Leases," the Company recognizes a lease liability for its ground lease and corresponding right-of-use asset related to this same ground lease which is classified as an operating lease. A key input in estimating the lease liability and resulting right-of-use asset is establishing the discount rate in the lease, which since the rate implicit in the contract is not readily determinable, requires additional inputs for the longer-term ground lease, including mortgage market-based interest rates that correspond with the remaining term of the lease, the Company's credit spread, and the payment terms present in the lease. This discount rate is applied to the remaining unpaid minimum rental payments for the lease to measure the lease liability.

Impairments

The Company reviews investments in real estate and related lease intangibles for possible impairment when certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable though operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. There were no impairments in the Company's investments in real estate during the nine months ended September 30, 2025. An impairment loss of approximately $1.06 million was recognized during the nine months ended September 30, 2024 resulting from the reduction in the anticipated holding period of the property which was reclassified as held for sale in the three months ended March 31, 2024 and remained classified as held for sale as of September 30, 2024.

The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions, and purchase offers received from third parties, which are Level 3 inputs. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate. Estimating future cash flows is highly subjective and estimates can differ materially from actual results.

Real Estate Held for Sale

The Company generally considers assets to be held for sale when certain criteria have been met, and management believes it is probable that the disposition will occur within one year. Properties are held for sale for a period longer than one year if events or circumstances out of the Company's control occur that delay the sale and while management continues to be committed to the plan of sale and is performing actions necessary to respond to the conditions causing the delay the properties held for sale remain salable in their current condition. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value, less cost to sell, and depreciation and amortization are no longer recognized. Held for sale properties are evaluated quarterly to ensure that properties continue to meet the held for sale criteria. If properties are required to be reclassified from held for sale to held for use due to changes to a plan of sale, they are recorded at the lower of fair value or the carrying amount before the property was classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used. Properties that do not meet the held for sale criteria are accounted for as operating properties.

During the third quarter of 2025, management approved a plan to sell three assets and executed purchase and sale agreements supporting a probable sale within one year. Accordingly, the following properties, which are under contract for sale, were reclassified to real estate asset held for sale as of September 30, 2025:

•

585 24½ Road, Grand Junction, Colorado, for approximately $4.97 million.

•

702 Tillman Place, Plant City, Florida, for approximately $1.95 million.

•

2601Westhall Lane, Maitland, Florida, for approximately $6.85 million.

The three held-for-sale properties are recorded at a combined cost basis of approximately $10.73 million as of September 30, 2025.

No impairment loss was recognized during the quarter as the estimated fair values less costs to sell exceed the carrying values at the

date of reclassification.

The previously held-for-sale property located at 3134 W. 76th Street, Chicago, Illinois was reclassified to investments in real estate during the third quarter as the related sale contract was terminated. No impairment was recorded upon reclassification.

Income Taxes

The Company elected to be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code. To continue to qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal corporate income tax on that portion of its taxable income that is currently distributed to stockholders. Accordingly, the only provision for federal income taxes in the accompanying consolidated financial statements relates to the Company's consolidated taxable REIT subsidiary of which no income was generated during the three and nine months ended September 30, 2025 and 2024.

The Company also recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related processes, if any. As of each balance sheet date, unrecognized benefits are reassessed and adjusted if the Company’s judgment changes as a result of new information. No liability for unrecognized tax benefits was recorded as of September 30, 2025 or 2024. At September 30, 2025, the Company's tax returns for the years 2022 forward remain subject to examination by the major tax jurisdictions under the statute of limitations.

Earnings per Share

In accordance with ASC 260, "Earnings Per Share," basic earnings (loss) per share (“EPS”) is computed by dividing net loss attributable to the Company that is available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock warrants, using the treasury stock method, and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive securities such as warrants and convertible membership units of the Operating Partnership (“GIP LP Units”) if their effect is anti-dilutive. For the three and nine months ended September 30, 2025 and 2024, all potentially dilutive securities were excluded because the effect was anti-dilutive.

Derivative Financial Instruments

Derivatives are recorded at fair value on the balance sheet as assets or liabilities. The valuation of derivative instruments requires us to make estimates and judgments that affect the fair value of the instruments. Fair values of our derivatives are estimated by pricing models that consider the forward yield curves and discount rates. Such amounts and the recognition of such amounts are subject to estimates that may change in the future.

Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from independent sources (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the Company's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The three levels of inputs used to measure fair value are as follows:

•

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

•

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

•

Level 3 - Unobservable inputs for the asset or liability, which are typically based on the Company's own assumptions, as there is little, if any, related market activity. The Company also re-measures nonfinancial assets and nonfinancial liabilities, initially measured at fair value in a business combination or other new basis event, at fair value in subsequent

periods if a re-measurement event occurs. See Derivative Financial Instruments in Note 10 for additional information on the Company's fair value measurements.

Note 3 – Acquired Lease Intangible Assets, net

In-place leases, net is comprised of the following:


	As of September 30,			As of December 31,
	2025			2024
In-place leases	$	8,518,021		$	8,847,484
Accumulated amortization		(3,474,913	)		(3,244,168	)
In-place leases, net	$	5,043,108		$	5,603,316

The amortization for in-place leases for the three and nine months ended September 30, 2025 and 2024 was $362,227 and $1,097,408 and $346,404 and $1,090,135, respectively. The future amortization for in-place leases, net for subsequent years ending December 31, is listed below:


	As of September 30,
	2025
2025 (3 months remaining)		299,145
2026		1,115,611
2027		933,927
2028		745,976
2029		568,815
Thereafter		1,379,634
	$	5,043,108

Above-market leases, net is comprised of the following:


	As of September 30,			As of December 31,
	2025			2024
Above-market leases	$	926,381		$	1,657,256
Accumulated amortization		(407,076	)		(576,867	)
Above-market leases, net	$	519,305		$	1,080,389

The amortization for above-market leases for the three and nine months ended September 30, 2025 and 2024 was $101,771 and $305,311, and $101,770 and $305,312, respectively. The future amortization for above-market leases, net for subsequent years ending December 31, is listed below:


	As of September 30,
	2025
2025 (3 months remaining)		46,961
2026		179,075
2027		161,539
2028		104,334
2029		19,666
Thereafter		7,730
	$	519,305

Note 4 – Acquired lease intangible liabilities, net

Acquired lease intangible liabilities, net is comprised of the following:


	As of September 30,			As of December 31,
	2025			2024
Acquired lessor lease intangible liabilities	$	2,011,964		$	1,468,695
Accumulated accretion to rental income		(608,575	)		(475,573	)
Acquired lessor lease intangible liabilities, net	$	1,403,389		$	993,122

Acquired lessee lease intangible liabilities	$	45,207		$	45,207
Accumulated amortization to offset building expenses		(2,603	)		(2,057	)
Acquired lessee lease intangible liabilities, net	$	42,604		$	43,150

The amortization for acquired lessor lease intangible liabilities for the three and nine months ended September 30, 2025 and 2024 was $45,220 and $133,000, and $33,802 and $101,406, respectively. The future amortization for acquired lessor lease intangible liabilities, net for subsequent years ending December 31 is listed below:


	As of September 30,
	2025
2025 (3 months remaining)	$	47,772
2026		167,728
2027		158,548
2028		158,105
2029		105,688
Thereafter		765,548
	$	1,403,389

The amortization for acquired lessee lease intangible liabilities for both the three and nine months ended September 30, 2025 and 2024 was $183 and $549, respectively. The future amortization for acquired lessee lease intangible liabilities, net for subsequent years ending December 31 is listed below:


	As of September 30,
	2025
2025 (3 months remaining)	$	183
2026		731
2027		731
2028		731
2029		731
Thereafter		39,497
	$	42,604

Note 5 – Leases

Lessor Accounting

All of the Company's leases are classified as operating leases. The Company's rental income is comprised of both fixed and variable income. Fixed and in-substance fixed lease income includes stated amounts per the lease contract, which are primarily related to base rent. Income for these amounts is recognized on a straight-line basis. The Company’s leases also provide for reimbursement of recoverable costs. A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred. Variable lease income includes the tenants' contractual obligations to reimburse the Company for their portion of recoverable costs incurred and index-based rent adjustments. The following table provides a disaggregation of lease income recognized as either fixed or variable lease income for the nine months ended September 30, 2025 and 2024:


	2025			2024
Rental income
Fixed and in-substance fixed lease income		6,616,845			5,934,480
Variable lease income		752,975			1,045,265
Other related lease income, net:
Amortization of above- and below-market leases, net		(172,311	)		(203,906	)
Straight line rent, net		50,541			74,253
Total Rental income		7,248,050			6,850,092

For the nine months ended September 30, 2025 and 2024, the following tenants each accounted for more than 10% of our rental revenue as indicated below:


	2025	2024
General Services Administration - Norfolk, VA, Manteo, NC & Vacaville, CA	16%	12%
Dollar General - multiple locations	13%	11%
Pre-K - San Antonio, TX	11%	11%
Kohl's - Tucson, AZ	10%	10%
exp U.S. Services - Maitland, FL	10%	10%

The following table presents future minimum rental cash payments due to the Company over the next five calendar years and thereafter as of December 31:


	As of September 30,
	2025
2025 (3 months remaining)	$	2,211,905
2026		8,585,646
2027		6,866,687
2028		5,553,014
2029		4,360,830
Thereafter		21,749,093
	$	49,327,175

On February 6, 2025, the Company acquired three single-tenant retail properties from a single seller for an aggregate purchase price of approximately $11.2 million. The portfolio includes a 4,108-square-foot property in Sanford, Florida leased to Zaxby’s with annual base rent of approximately $240,434; a 10,640-square-foot property in Cleveland, Tennessee leased to Dollar General with annual base rent of approximately $119,728; and a 19,097-square-foot property in Kernersville, North Carolina leased to Tractor Supply Co. with annual base rent of approximately $303,000. Future minimum rent is reflected in the above table.

Lessee Accounting

The Company acquired one property on March 9, 2022 that is subject to a non-cancelable, long-term ground lease where a third party owns the underlying land and has leased the land to the Company. Accordingly, the Company owns only a long-term leasehold in this property. This ground lease expires in 2084 including those options the Company deems probable of exercising. The ground lease expense is recognized on a straight-line basis over the term of the lease, including management's estimate of expected option renewal periods. Operating lease expense was approximately $93,762 and $93,762 for the three months ended September 30, 2025 and 2024 and $281,285 and $281,285 for the nine months ended September 30, 2025 and 2024, respectively. There are no variable lease expenses required to be paid by the Company as lessee per the lease terms. Cash paid for amounts included in the measurement of the lease liability, net was $61,278 and $61,278 for the three months ended September 30, 2025 and 2024, respectively, and $183,834 and $182,799 for the nine months ended September 30, 2025 and 2024, respectively.

The following table summarizes the undiscounted future cash flows for subsequent years ending December 31 attributable to the lease liability as of September 30, 2025 and provides a reconciliation to the lease liability included in the accompanying Consolidated Balance Sheets as of September 30, 2025.


	As of September 30,
	2025
2025 (3 months remaining)		61,278
2026		245,111
2027		245,111
2028		245,111
2029		257,839
Thereafter		21,317,695
Total undiscounted liability	$	22,372,145
Present value discount		(15,869,132	)
Lease liability	$	6,503,013
Discount rate		4.58	%
Term Remaining	58 years

Note 6 – Non-Controlling Interests

Redeemable Non-Controlling Interests (Temporary Equity)

Operating Unit Holders

LMB Owenton I LLC

As part of the Company’s acquisition of one property on January 14, 2022 for approximately $2,264,000 in Tampa, FL, the Operating Partnership entered into a contribution agreement with LMB Owenton I LLC that resulted in the issuance of 110,957 GIP LP Units at $10.00 per share for a total value of $1,109,570. After 24 months, the contribution agreement allows for the investor to require the Operating Partnership to redeem, all or a portion of its units for either (i) the Redemption Amount (within the meaning of the Partnership Agreement), or (ii) until forty nine (49) months from date of closing, cash in an agreed-upon Value (within the meaning of the Partnership Agreement) of $10.00 per share. As such, the Company has determined this equity should be classified as temporary equity at redemption value. On February 7, 2023, the Operating Partnership entered into a Unit Issuance Agreement and Amendment to Contribution and Subscription Agreement with LMB Owenton I LLC in which the Operating Partnership and LMB Owenton I LLC agreed to delay the Contributor’s right to require the redemption of the Contributor’s GIP LP Units in the Operating Partnership until after 36 months on January 14, 2025 and for a reduced redemption price of $7.15 per GIP LP Unit. Such agreement was made in consideration of the issuance to LMB Owenton I LLC of an additional 44,228 GIP LP Units in the Operating Partnership, resulting in Contributor owning an aggregate of 155,185 GIP LP Units in the Operating Partnership at redemption value of $1,109,570 as of September 30, 2025.

Norfolk, VA Partnership

As part of the Company’s acquisition of two properties for approximately $19,134,400 on September 30, 2019 in Norfolk, Virginia, the "Norfolk, Virginia properties", the Operating Partnership entered into contribution agreements with two entities (Greenwal, L.C. and Riverside Crossing, L.C.) that resulted in the issuance of 349,913 common units in the Operating Partnership at $20.00 per share for a total value of $6,998,251. Greenwal, L.C and Riverside Crossing, L.C. have since been dissolved and the common units were then directly owned by the former members of the two entities. Beginning on the first anniversary of the closing, the contribution agreements allowed for the two investors to require the Operating Partnership to redeem all or a portion of its units for either (i) the Redemption Amount (within the meaning of the Operating Partnership’s Partnership Agreement), or (ii) until forty-nine (49) months from date of closing, cash in an agreed-upon Value (within the meaning of the Operating Partnership’s Partnership Agreement) of $20.00 per share, as set forth on the Notice of Redemption. As such, the Company has determined their equity should be classified as a temporary equity at redemption value. On March 21, 2022, the Company received notice from an Operating Partnership common unit holder to redeem 10,166 units at $20.00 per unit for a total of $203,326 and paid the unit holder on June 24, 2022. On April 25, 2022, the Company received notice from another Operating Partnership common unit holder to redeem 10,166 units at $20 per unit for a total of $203,326 and paid the unit holder on July 25, 2022. On July 20, 2022, the Company received a notice of redemption from an Operating Partnership common unit holder exercising his right to redeem 25,000 units at $20 per unit and such notice further stated the unit holder’s intent to redeem his remaining 180,615 units in the Operating Partnership before October 31, 2023. On August 9, 2022, the Company and Operating Partnership entered a Redemption Agreement with the unit holder providing for the revocation of his July 2022 redemption notice and providing that the his common units in the Operating Partnership would be redeemed by the Operating Partnership as follows: (i) on or before September 15, 2022, 16,250 of the units would be redeemed for an aggregate of $325,000 in cash (which is $20 per unit, as provided in the applicable Contribution Agreements) and 60,000 of the units would be redeemed in exchange for the issuance of 200,000 shares of the Company’s common stock, and (ii) the remaining 129,365 units would be redeemed for $20 per unit in cash in one tranche of 16,250 units on March 15, 2023 and five tranches of 22,623 units each on September 15, 2023, March 15, 2024, June 15, 2024, September 15, 2024, and December 15, 2024. As such, the Company recorded in other payable - related party in the amount of $2,912,300 upon execution of the Redemption Agreement entered into August 9, 2022 and continue to pay unit distributions on current units outstanding. In accordance with the Redemption Agreement the Company has made payments of $2,912,300 through December 31, 2024, reducing the balance of the redemption payable to $0. Additionally, on September 12, 2022, the Company issued 200,000 shares of common stock at $6.00 per share in accordance with the Redemption Agreement.

On January 27, 2023, the remaining two partners from this original transaction redeemed a total of 123,965 units at $20 per unit in the aggregate amount of $2,479,299 and the Company funded the redemption obligations per the terms of the contribution agreement on February 9, 2023 using proceeds from new preferred equity agreements with Brown Family Enterprises, LLC. In the year ended December 31, 2023, we accrued approximately $506,000 relating to the potential reimbursement of federal, state and local income taxes incurred by a remaining partner in one of our partnerships pursuant to tax protection agreement and is included in Accrued Expense - Related Party on the face of the balance sheet and the balance remained unchanged as of September 30, 2025.

JCWC Funding, LLC

Preferred Unit plus any accrued but unpaid Series A Preferred Return, provided that the Operating Partnership may (with the prior written consent of the investor) cause the redemption price to be satisfied by the issuance of a number of shares of common stock of the Company equal to the number of Series A Preferred Units being redeemed multiplied by 1.03 plus any accrued but unpaid Series A Preferred Return. If the Operating Partnership fails to declare and pay the Series A Preferred Return for a period of three consecutive months, the investor may exercise the foregoing redemption right within the 30-day period following such failure.

Lloyd M. Bernstein

On February 6, 2025, the Operating Partnership entered into a Contribution and Subscription Agreement with LMB Lewiston, LLC, LMB Ft. Kent, LLC, and LMB Auburn Hills I, LLC (collectively, the "Contributed Entities") and their members. Pursuant to the agreement, the members of the Contributed Entities contributed 100% of their membership interests to the Operating Partnership in exchange for 698,465 newly issued Series B-2 Preferred Units at a price of $6.00 per unit, valued in aggregate at approximately $4.2 million. The Contributed Entities collectively own three single-tenant net lease retail properties leased to Zaxby's (Sanford, FL), Dollar General (Cleveland, TN), and Tractor Supply Co. (Kernersville, NC), with a combined gross asset value of $11.2 million. In connection with the contribution, the Operating Partnership assumed outstanding debt totaling approximately $7.0 million secured by the properties. The Preferred Units issued in the transaction carry a cumulative annual distribution of $0.33 per unit, payable monthly in arrears. Beginning on the second anniversary of closing, the holders may elect to redeem their units for a "Redemption Amount" as defined in the Amended and Restated Agreement of Limited Partnership.

Preferred Equity Partners

Brown Family Trust and Brown Family Enterprises, LLC

As part of the Company’s acquisition of a property for approximately $1,737,800 in Manteo, NC, one of the Company’s operating subsidiaries entered into a preferred equity agreement with Brown Family Trust on February 11, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $500,000. The Operating Partnership is the general manager of the subsidiary while Brown Family Trust is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 9% internal rate of return ("IRR") on a monthly basis. After 24 months, the Brown Family Trust has the right to redeem and the Operating Partnership has the right to call the preferred equity at redemption value. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. On August 10, 2023, the Company exercised its right to call the preferred equity at redemption value and redeemed the preferred equity upon payment of the original capital contribution plus accrued and deferred interest.

On February 8, 2023, the Operating Partnership entered into new Amended and Restated Limited Liability Company Agreements for the Norfolk, Virginia properties, GIPVA 2510 Walmer Ave, LLC ("GIPVA 2510") and GIPVA 130 Corporate Blvd, LLC ("GIPVA 130"), in which the Operating Partnership, as the sole member of GIPVA 2510 and GIPVA 130, admitted a new preferred member, Brown Family Enterprises, LLC, through the issuance of preferred membership interests in the form of Class A Preferred Units of GIPVA 2510 and GIPVA 130. GIPVA 2510 and GIPVA 130 (the “Virginia SPEs”) hold the Company’s Norfolk, Virginia properties. In addition, both of the Virginia SPEs and Brown Family Enterprises, LLC entered into Unit Purchase Agreements in which GIPVA 2510 issued and sold 180,000 Class A Preferred Units at a price of $10.00 per unit for an aggregate price of $1,800,000, and GIPVA 130 issued and sold 120,000 Class A Preferred Units at a price of $10.00 per unit for an aggregate price of $1,200,000. The Operating Partnership is the general manager of the subsidiary while Brown Family Enterprises, LLC is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 7% IRR paid on a monthly basis and will share in 16% of the equity in each of the Virginia SPEs upon a capital transaction resulting in distributable proceeds. Brown Family Enterprises, LLC has the right to redeem the preferred equity at redemption value. On July 25, 2024, we entered into First Amendments to the Second Amended and Restated Limited Liability Company Agreements, dated as of February 8, 2023, for each of these entities revising the redemption date from February 8, 2025 to February 8, 2027. Because of the redemption right, the non-controlling interest is presented as temporary equity at an aggregated redemption value of $3,000,000 as of September 30, 2025.

LC2-NNN Pref, LLC

distributions by GIP SPE will be made first to LC2 to satisfy any accrued but unpaid current preferred return, with the balance being paid to the Operating Partnership, unless the “annualized debt yield” of GIP SPE is less than 10%, in which case the balance will be paid to LC2. For this purpose, “annualized debt yield” is calculated as the sum of senior debt and LC2 Investment divided by the trailing three-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) of GIP SPE. The GIP SPE Operating Agreement also provides that distributions from capital transactions will be paid first to LC2 to satisfy any accrued but unpaid preferred return, then to LC2 until the “Make-Whole Amount” (defined as the amount equal to 1.3 times the LC2 Investment) is reduced to zero, and then to the Operating Partnership.

The Preferred Interest is required to be redeemed in full by the Company on or before August 10, 2025 (the "Mandatory Redemption Date") for a redemption amount equal to the greater of (i) the amount of the LC2 Investment plus the accrued preferred return, and (ii) the Make-Whole Amount. Upon a failure to timely redeem the Preferred Interest, the preferred return will accrue at an increased rate of 18% per annum, compounded monthly. The Company has the right to extend the Mandatory Redemption Date for two consecutive 12-month extension periods, provided that (i) LC2 is paid an extension fee of 0.01% of the outstanding amount of the LC2 Investment for each such extension, (ii) the preferred return is increased from 15.5% to 18% of which the accrued preferred return is increased from 10.5% to 13%, (iii) the trailing 6-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) is in excess of $5.0 million, (iv) GIP SPE and its subsidiaries’ senior debt is extended through the end of the extension period, and there are no defaults under the GIP SPE Operating Agreement.

On August 7, 2025, the Company exercised its first 12-month extension option under the GIP SPE Operating Agreement, extending the Mandatory Redemption Date from August 10, 2025 to August 10, 2026. In connection with the extension, the Company paid LC2 an extension fee of $141,000 (equal to 100 basis points of the outstanding LC2 Investment), increased the "Preferred Equity Return" under the GIP SPE Operating Agreement from 15.5% to 18% per annum, and increased the "Accrued Preferred Return" under the agreement from 10.5% to 13% per annum, while the "Current Preferred Return" under the agreement remained at 5% per annum. The Company also confirmed that the trailing nine-month annualized adjusted net operating income exceeded $5.0 million, the senior loans had been extended through the end of the extension period, and there were no material breaches or defaults under the GIP SPE Operating Agreement.

Under the GIP SPE Operating Agreement, GIP SPE is also required to pay to Loci Capital, an affiliate of LC2, an equity fee of 1.5% of the LC2 Investment, with 1% having been paid upon the execution and delivery of the GIP SPE Operating Agreement and the 0.5% payable upon redemption of the LC2 Investment.

Due to the redemption right, the Preferred Interest is presented as temporary equity at redemption value of $14,100,000 plus accrued but unpaid preferred interest of $4,461,228 as of September 30, 2025.

Non-Controlling Interest (Permanent Equity)

As part of the Company’s acquisition of one property on November 30, 2020 for $1,847,700 in Tampa, FL, the Operating Partnership entered into a contribution agreement with GIP Fund 1, LLC that resulted in the issuance of 24,309 GIP LP Units in the Operating Partnership at $20.00 per share for a total value of $486,180. At the time of the acquisition, the Company’s President owned 11% of GIP Fund 1. GIP Fund 1 has since been dissolved and the GIP Units are now directly owned by the former members of GIP Fund 1. After 12 months, the contribution agreement allows for the former members of GIP Fund 1 to require the Operating Partnership to redeem, all or a portion of its GIP LP Units for common stock of the Company. As such, the Company has determined their equity should be classified as a Non-controlling interest.

Following these transactions as of September 30, 2025, the Company owned 99.6% of the common units in the Operating Partnership and outside investors owned 0.4%. The following table reflects the Company's redeemable non-controlling interests and non-controlling interest during the three and nine months ended September 30, 2025 and 2024:


	Brown Family Trust and Brown Family Enterprises, LLC			LMB Owenton I LLC			GIP LP (Former Greenwal, L.C. and Riverside Crossing, L.C. Members)			JCWC Funding, LLC			Lloyd M. Bernstein			LC2-NNN Pref, LLC			Total Redeemable Non-Controlling Interests			Non-Controlling Interests - Former GIP Fund 1 Members
Balance, December 31, 2023	$	3,000,000		$	1,109,570		$	-		$	-					$	14,702,853		$	18,812,423		$	406,131
Distribution on Non-Controlling Interests		(52,500	)		(18,157	)		(9,705	)		-						(187,471	)		(267,833	)		(2,844	)
Net income (loss) for the quarter		52,500			18,157			9,705			-						873,344			953,706			(7,582	)
Balance, March 31, 2024	$	3,000,000		$	1,109,570		$	-		$	-					$	15,388,726		$	19,498,296		$	395,705
Issuance of Redeemable Non-Controlling Interests		-			-			-			2,500,000						-			2,500,000			-
Distribution on Non-Controlling Interests		(52,500	)		(18,157	)		(7,942	)		-						(192,491	)		(271,090	)		(2,844	)
Net income (loss) for the quarter	$	52,500			18,157			7,942			-						721,635			800,234			-
Balance, June 30, 2024	$	3,000,000		$	1,109,570		$	-		$	2,500,000					$	15,917,870		$	22,527,440		$	392,861
Issuance of Redeemable Non-Controlling Interests		-			-			-			3,080,000						-			3,080,000			-
Distribution on Non-Controlling Interests		(52,500	)		(18,157	)		(4,412	)		(64,119	)					(198,109	)		(337,297	)		-
Net income (loss) for the quarter		52,500			18,157			4,412			64,119						726,859			866,047			-
Balance, September 30, 2024	$	3,000,000		$	1,109,570		$	-		$	5,580,000					$	16,446,620		$	26,136,190		$	392,861

Balance, December 31, 2024	$	3,000,000		$	1,109,570		$	-		$	5,580,000					$	16,974,975		$	26,664,545		$	392,861
Issuance of Redeemable Non-Controlling Interests		-			-			-			-			4,209,154			-			4,209,154			-
Distribution on Non-Controlling Interests		(52,500	)		(24,209	)		-			(90,675	)		(33,934	)		(204,331	)		(405,648	)		-
Net income (loss) for the quarter		52,500			24,209			-			90,675			33,934			733,081			934,399			-
Balance, March 31, 2025	$	3,000,000		$	1,109,570		$	-		$	5,580,000		$	4,209,154		$	17,503,725		$	31,402,450		$	392,861
Distribution on Non-Controlling Interests		(52,500	)		(12,104	)		-			(90,675	)	$	(57,623	)	$	(214,455	)		(427,358	)		-
Net income (loss) for the quarter		52,500			12,104			-			90,675		$	57,623			743,205			956,108			-
Balance, June 30, 2025	$	3,000,000		$	1,109,570		$	-		$	5,580,000		$	4,209,154		$	18,032,475		$	31,931,200		$	392,861
Distribution on Non-Controlling Interests		(52,500	)		(18,157	)		-			(90,675	)	$	(57,623	)	$	(361,401	)		(580,356	)		-
Net income (loss) for the quarter		52,500			18,157			-			90,675		$	57,623			890,151			1,109,106			-
Balance, September 30, 2025	$	3,000,000		$	1,109,570		$	-		$	5,580,000		$	4,209,154		$	18,561,225		$	32,459,950		$	392,861

Note 7 – Equity

Authorized Equity

The Company is authorized to issue up to 100,000,000 shares of common stock and 10,000,000 shares of preferred stock of which 2,400,000 were designated as Series A Preferred Stock. Holders of the Company’s common stock are entitled to receive dividends when authorized by the Company’s Board of Directors.

In January 2024, the Company redeemed all 2,400,000 shares of its Series A Preferred Stock from its preferred shareholders, Modiv and their affiliates, and exchanged them for 2,794,597 shares of common stock.

Issuance of Equity Securities

On November 13, 2020, the Company raised $1,000,000 by issuing 50,000 Units with each Unit being comprised of one share of its Common Stock, and one warrant to purchase one share of its Common Stock. Each Unit was sold for a price of $20.00 per Unit. The shares of the Company’s Common Stock and warrants included in the Units, were offered together, but the securities included in the Units are issued separately. The warrants are exercisable at a price of $20.00 per share of Common Stock, subject to adjustment in certain circumstances, and will expire seven years from the date of issuance.

In January 2024, the Company declared and paid final preferred stock dividends of $95,000 to holders of its Series A Preferred Stock shares. In January 2024, the Company also paid another $95,000 dividend on the Series A Preferred Stock declared in December 2023 and accrued as of December 31, 2023. On June 27, 2024, the Operating Partnership and an accredited investor entered into a Unit Purchase Agreement (the “June 2024 Unit Purchase Agreement”) pursuant to which the Operating Partnership issued and sold to the investor 500,000 Series A Preferred Units at a price of $5.00 per unit for an aggregate purchase price of $2,500,000 in cash. Under the terms of the Series A Preferred Units, the investor will be paid cumulative cash distributions in the amount of $0.325 per Series A Preferred Unit per year, payable monthly in arrears, on or about the 15th day of each month. Each of the investor and the Operating Partnership will have the right to cause the Operating Partnership to redeem the Series A Preferred Units after two (2) years for cash in an amount equal to $5.15 per Series A Preferred Unit plus any accrued but unpaid Series A Preferred Return, provided that the Operating Partnership may (with the prior written consent of the investor) cause the redemption price to be satisfied by the issuance of a number of shares of common stock of the Company equal to the number of Series A Preferred Units being redeemed multiplied by 1.03 plus any accrued but unpaid Series A Preferred Return. If the Operating Partnership fails to declare and pay the Series A Preferred Return for a period of three consecutive months, the investor may exercise the foregoing redemption right within the 30-day period following such failure.

On July 24, 2024, the Operating Partnership of Generation Income Properties, Inc. (the “Company”), entered into a Fifth Amendment to the Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “LPA Amendment”), pursuant to which the Company, as the general partner of the Operating Partnership, issued partnership interests to LMB Owenton I LLC (“Contributor”) in the form of Series B-1 Preferred Units (the “Series B-1 Preferred Units”).

Also on July 24, 2024, the Operating Partnership and the Contributor entered into a Contribution and Exchange Agreement (the “Contribution Agreement”) pursuant to which the Contributor contributed 155,185 Common Units in exchange for 155,185 Series B-1 Preferred Units. If and when determined by the Company, as general partner of the Operating Partnership, in its sole discretion, holders of the Series B-1 Preferred Units will be paid cash distributions in the amount of $0.117 per Series B-1 Preferred Unit per quarter, subject to prior payment of any preferred return on senior preferred units of the Operating Partnership. The Contributor will have the right to cause the Operating Partnership to redeem the Series B-1 Preferred Units after two (2) years for either (i) cash in an amount equal to $7.15 per Series B-1 Preferred Unit or (ii) a number of shares of common stock of the Company equal to the number of Series B-1 Preferred Units being redeemed multiplied by 1.00, plus, in each case, an amount equal to all dividends accrued and unpaid thereon.

Warrants

Private Placement Warrants

On April 25, 2019, the Company raised $1,000,000 by issuing 50,000 Units with each Unit being comprised of one share of its Common Stock and one warrant to purchase one share of its common stock. Each Unit was sold for a price of $20.00 per Unit. The shares of the Company’s common stock and warrants included in the Units, were offered together, but the securities included in the Units are issued separately. The warrants are exercisable at a price of $20.00 per share of common stock, subject to adjustment in certain circumstances, and will expire seven years from the date of issuance.

On November 13, 2020, the Company raised $1,000,000 by issuing 50,000 Units with each Unit being comprised of one share of its Common Stock and one warrant to purchase one share of its common stock. Each Unit was sold for a price of $20.00 per Unit. The shares of the Company’s common stock and warrants included in the Units, were offered together, but the securities included in the Units are issued separately. The warrants are exercisable at a price of $20.00 per share of common stock, subject to adjustment in certain circumstances, and will expire seven years from the date of issuance.

Investor Warrants

The Investor Warrants may be exercised on a cashless basis if there is no effective registration statement available for the resale of the shares of common stock underlying such warrants. In addition, after 120 days after the Investor Warrants are issued, any Investor Warrant may be exercised on a cashless basis for 10% of the shares of Common Stock underlying the Investor Warrant if the volume-weighted average trading price of the Company’s shares of Common Stock on Nasdaq is below the then effective exercise price of the Investor Warrant for 10 consecutive trading days.

Representative Warrants

In addition, the Company issued to Maxim Group LLC (or its designee) warrants to purchase an aggregate of 149,850 shares of common stock, which is equal to an aggregate of 9% of the number of shares of common stock sold in the Public Offering (the “Representative’s Warrants”). The Representative’s Warrants have an exercise price equal to $12.50, may be exercised on a cashless basis and became exercisable six months following the closing date and until September 2, 2026.

The Company has 819,360 and 819,360 warrants outstanding and exercisable as of September 30, 2025 and September 30, 2024, respectively, as summarized below.


	As of September 30,
Issue Date	2025
April 25, 2019 at an exercise price of $20.00		50,000
November 13, 2020 at an exercise price of $20.00		50,000
September 8, 2021 at an exercise price of $10.00		404,510
September 8, 2021 at an exercise price of $12.50		135,000
September 30, 2021 at an exercise price of $10.00		165,000
September 30, 2021 at an exercise price of $12.50		14,850
		819,360


	Warrants			Weighted Average Price		Weighted Average Remaining Life
As of December 31, 2024		819,360		$	11.61		2.5
Exercised		-			-
As of September 30, 2025		819,360		$	11.61		2.5

Warrants exercisable		819,360		$	11.61		2.5

	Warrants			Weighted Average Price		Weighted Average Remaining Life
As of December 31, 2023		898,200		$	11.53		2.7
Exercised		(78,840	)		10.00
As of September 30, 2024		819,360		$	11.61		2.5

Warrants exercisable		819,360		$	11.61		2.5

There was no intrinsic value for the warrants as of September 30, 2025 or 2024.

Stock Compensation

Generation Income Properties, Inc. 2020 Omnibus Incentive Plan

In connection with the Public Offering, the Company's Board of Directors adopted and stockholders approved, the Generation Income Properties, Inc. 2020 Omnibus Incentive Plan (the “Omnibus Incentive Plan”), which became effective upon the completion of the Public Offering. The Omnibus Incentive Plan reserves 2.0 million shares of common stock for stock options, stock appreciation rights, performance shares, performance units, shares of common stock, restricted stock, restricted stock units, cash incentive awards, dividend equivalent units, or any other type of award permitted under the Omnibus Incentive Plan. As of September 30, 2025, 220,162 shares had been granted under the Omnibus Incentive Plan.

Restricted Common Shares issued to the Board and Employees

On January 6, 2022, the board granted 47,142 restricted shares to directors, officers and employees effective March 1, 2022 valued at $7.00 per share that vest annually over 1 year. The vested share restrictions will be removed upon the first annual anniversary of the award. The 47,142 restricted shares were issued to the directors, officers and employees in March 2022. On April 12, 2022, the board granted 357 restricted shares to a non-employee for chaplain services rendered effective April 16, 2022 valued at $7.06 per share that vest over 1 year. The vested share restrictions will be removed upon the first annual anniversary of the award. The 357 restricted shares were issued in April 2022.

On December 8, 2022, the board approved grants of 98,593 restricted shares to directors, officers and employees effective March 1, 2023 valued at $5.68 per share that vest annually over 3 years. The vested share restrictions will be removed upon vesting on each of

the three annual anniversaries of the award. The 98,593 restricted shares were issued to the directors, officers and employees in March 2023.

In March 2024, the board approved grants of restricted stock to directors effective June 15, 2024, allowing an elective deferral of up to three years. All board members elected to defer restricted stock and dividend equivalents for the full three year period.

The following is a summary of restricted shares for the nine months ended September 30, 2025 and 2024:


	2025		2024
Number of Shares Outstanding at beginning of period		61,322		91,516
Restricted Shares Issued		-		-
Restricted Shares Vested		-		(43,364	)
Number of Shares Outstanding at end of period		61,322		48,152

On June 15, 2024, the Company issued restricted stock units with respect to an aggregate of 61,275 shares of common stock to non-employee directors of the Company, excluding the Chairman of the Board, David Sobelman.

The Company recorded stock based compensation expense of $258,750 and $94,934 and $258,750 and $284,805 during the three and nine months ended September 30, 2025 and 2024, respectively.

Cash Distributions

While the Company is under no obligation to do so, the Company has historically declared and paid distributions to its common stockholders and Operating Partnership unit holders, provided that on July 3, 2024, the Company announced that its Board of Directors determined to suspend the Company’s regular dividend, commencing with the monthly dividends that would have been paid in July 2024.

The issuance of future distributions will be determined by the Company's board of directors based on the Company's financial condition and such other factors as the Company's board of directors deems relevant. The Company has not established a minimum distribution, and the Company's charter does not require that the Company issue distributions to its stockholders other than as necessary to meet REIT qualification standards.

Note 8 – Mortgage Loans

The Company had the following mortgage loans outstanding as of September 30, 2025 and December 31, 2024, respectively:



Occupying Tenant	Property Location	Original Loan Amount			Interest Rate		Maturity Date	9/30/2025			12/31/2024			Debt Service Coverage Ratios ("DSCR") Required
7-Eleven Corporation	Washington, D.C.	$	750,000		6.50%		3/31/2026	$	750,000		$	-		1.50
7-Eleven Corporation, Starbucks Corporation & Auburn University	Washington, D.C., Tampa, FL, and Huntsville, AL		11,287,500	(a)	4.17%		3/6/2030		-			10,602,711		1.25
General Services Administration-Navy & AYMCA	Norfolk, VA		8,260,000	(f)	6.15%		8/30/2029		6,976,176			7,119,184		1.25
PRA Holdings, Inc.	Norfolk, VA		5,216,749	(f)	6.15%		8/23/2029		4,322,347			4,410,949		1.25
Sherwin Williams Company	Tampa, FL		1,286,664		3.72%	(b)	8/10/2028		1,230,609			1,255,068		1.20
General Services Administration-FBI	Manteo, NC		928,728	(c)	3.85%	(d)	3/31/2032		873,262			891,071		1.50
Irby Construction	Plant City , FL		928,728	(c)	3.85%	(d)	3/31/2032		873,262			891,071		1.50
La-Z-Boy Inc.	Rockford, IL		2,100,000		3.85%	(d)	3/31/2032		1,974,575			2,014,851		1.50
Best Buy Co., Inc.	Grand Junction, CO		2,552,644	(c)	3.85%	(d)	3/31/2032		2,400,193			2,449,141		1.50
Fresenius Medical Care Holdings, Inc.	Chicago, IL		1,727,108	(c)	3.85%	(d)	3/31/2032		1,623,961			1,657,079		1.50
Starbucks Corporation	Tampa, FL		1,298,047	(c)	3.85%	(d)	3/31/2032		1,220,524			1,245,414		1.50
Kohl's Corporation	Tucson, AZ		3,964,745	(c)	3.85%	(d)	3/31/2032		3,727,960			3,803,985		1.50
City of San Antonio (PreK)	San Antonio, TX		6,444,000	(e)	7.47%	(b)	8/10/2028		6,249,643			6,323,628		1.50
Dollar General Market	Bakersfield, CA		2,428,000	(e)	7.47%	(b)	8/10/2028		2,354,769			2,382,646		1.50
Dollar General	Big Spring, TX		635,000	(e)	7.47%	(b)	8/10/2028		615,848			623,138		1.50
Dollar General	Castalia, OH		556,000	(e)	7.47%	(b)	8/10/2028		539,231			545,614		1.50
Dollar General	East Wilton, ME		726,000	(e)	7.47%	(b)	8/10/2028		704,103			712,439		1.50
Dollar General	Lakeside, OH		567,000	(e)	7.47%	(b)	8/10/2028		549,899			556,409		1.50
Dollar General	Litchfield, ME		624,000	(e)	7.47%	(b)	8/10/2028		605,180			612,344		1.50
Dollar General	Mount Gilead, OH		533,000	(e)	7.47%	(b)	8/10/2028		516,924			523,044		1.50
Dollar General	Thompsontown, PA		556,000	(e)	7.47%	(b)	8/10/2028		539,231			545,614		1.50
Dollar Tree Stores, Inc.	Morrow, GA		647,000	(e)	7.47%	(b)	8/10/2028		627,485			634,914		1.50
exp U.S. Services Inc.	Maitland, FL		2,950,000	(e)	7.47%	(b)	8/10/2028		2,861,025			2,894,895		1.50
General Services Administration	Vacaville, CA		1,293,000	(e)	7.47%	(b)	8/10/2028		1,254,002			1,268,847		1.50
Walgreens	Santa Maria, CA		3,041,000	(e)	7.47%	(b)	8/10/2028		2,949,281			2,984,195		1.50
Best Buy Co., Inc.	Ames, IA		2,495,000		6.29%	(b)	8/23/2029		2,495,000			2,495,000		1.50
Zaxby's	Sanford, FL		2,947,000		6.29%		5/14/2026		2,491,529		n/a			1.30
Dollar General	Cleveland, TN		1,350,000		3.50%		5/14/2026		1,231,969		n/a			1.25
Tractor Supply	Kernersville, NC		3,507,000		2.90%		10/22/2031		3,204,758		n/a			1.20
		$	71,599,913					$	55,762,746		$	59,443,251
							Less Debt Discount, net		(740,020	)		(317,978	)
							Less Debt Issuance Costs, net		(434,942	)		(785,358	)
								$	54,587,784		$	58,339,915

(a) Loan subject to prepayment penalty

(b) Fixed via interest rate swap

(c) One loan in the amount of $11.4 million secured by six properties and allocated to each property based on each property's appraised value.

(d) Adjustment effective April 1, 2027 equal to 5-year Treasury plus 2.5% and subject to a floor of 3.85%

(e) One loan in the amount of $21.0 million secured by 13 properties and allocated to each property at the date of acquisition based on each property's appraised value.

The Company amortized debt issuance costs and debt discount during the three and nine months ended September 30, 2025 and 2024 to interest expense of approximately $48,460 and $60,532, and $137,097 and $156,091, respectively. The Company incurred debt issuance costs of $72,290 and $0 during the nine months ended September 30, 2025 and 2024.

Each mortgage loan requires the Company to maintain certain debt service coverage ratios as noted above. In addition, two mortgage loans, one encumbered by six properties and requiring a 1.50 DSCR, and another standalone mortgage loan requiring a 1.50 DSCR, require the Company to maintain a 54% loan to fair market stabilized value ratio. Fair market stabilized value shall be determined by the lender by reference to acceptable guides and indices or appraisals from time to time at its discretion. As of September 30, 2025, the Company was in compliance with all covenants.

On April 1, 2022, the Company entered into two mortgage loan agreements with an aggregate balance of $13.5 million to refinance seven of the Company's properties. The loan agreements consist of one loan in the amount of $11.4 million secured by six properties and allocated to each property based on each property's appraised value, and one loan in the amount of $2.1 million on the property previously held in the tenancy-in-common investment at an interest rate of 3.85% from April 1, 2022 through and until March 31, 2027. In conjunction with the LC2 Investment to purchase the remaining interest in the tenancy-in-common interest discussed above, the Company assumed the original $2.1 million loan on the property with a remaining balance of $2,079,178 and recognized a discount of $383,767. Effective April 1, 2027 and through the maturity date of March 31, 2032, the interest rate adjusts to the 5-year Treasury plus 2.5% and is subject to a floor of 3.85%. The Company’s CEO entered into a guarantee agreement pursuant to which he guaranteed the payment obligations under the promissory notes if they become due as a result of certain “bad-boy” provisions, individually and on behalf of the Operating Partnership.

On August 10, 2023, GIP13, LLC, a Delaware limited liability company and wholly owned subsidiary of GIP SPE ("GIP Borrower"), entered into a Loan Agreement with Valley Bank pursuant to which Valley Bank made a loan to the Company in the amount of $21.0 million to finance the acquisition of the Modiv Portfolio. The outstanding principal amount of the loan bears interest at an annual rate for each 30-day interest period equal to the compounded average of the secured overnight financing rate published by Federal Reserve Bank of New York for the thirty-day period prior to the last day of each 30-day interest rate for the applicable interest rate period plus 3.25%, with interest payable monthly after each 30-day interest period. However, the Company entered into an interest rate swap to fix the interest rate at 7.47% per annum. Payments of interest and principal in the amount of approximately $156,000 are due and payable monthly, with all remaining principal and accrued but unpaid interest due and payable on a maturity date of August 10, 2028. The loan may generally be prepaid at any time without penalty in whole or in part, provided that there is no return of loan fees and prepaid financing fees. The loan is secured by first mortgages and assignments of rents in the properties comprising the Modiv Portfolio and eight other properties held by subsidiaries of GIP SPE that had outstanding loans with Valley. All of the mortgaged properties cross collateralize the loan, and the loan is guaranteed by the Operating Partnership and the subsidiaries of the Company that hold the properties that comprise the Modiv Portfolio. The loan agreement also provides for customary events of default and other customary affirmative and negative covenants that are applicable to GIP Borrower and its subsidiaries, including reporting covenants and restrictions on investments, additional indebtedness, liens, sales of properties, certain mergers, and certain management changes.

The Company's President and CEO entered into a personal, full recourse guarantee with a $7,500,000 cap and has also personally guaranteed the repayment of the $1.2 million loan secured by the Company's Sherwin-Williams - Tampa, FL property. In addition, the Company’s President and CEO has provided a guaranty of the Company’s nonrecourse carveout liabilities and obligations in favor of the lender for the GSA and PRA Holdings, Inc. - Norfolk, VA mortgage loans ("Bayport loans") with an aggregate principal amount of $11.3 million. During the three and nine months ended September 30, 2025 and 2024, the Company incurred a guaranty fee expense to the Company's CEO of $71,056 and $102,023, and $248,682 and $304,245, respectively, recorded to interest expense. As of September 30, 2025 the Company recorded $443,026 for guaranty fees payable which is included in accrued expenses.

On August 9, 2022 the Company and Operating Partnership entered a Redemption Agreement with a unit holder. As such, the Company recorded in other payable - related party in the amount of $2,912,300 upon execution of the Redemption Agreement entered into July 20, 2022 and has paid the note in full as of December 31, 2024. Remaining balances of $0 and $452,460 were outstanding as of September 30, 2025 and September 30, 2024, respectively.

On October 14, 2022, the Company entered into a loan transaction that is evidenced by a secured non-convertible promissory note to Brown Family Enterprises, LLC, a preferred equity partner and therefore a related party, for $1,500,000 with a maturity of October 14, 2024, and bearing a fixed interest rate of 9% with simple interest payable monthly. The loan may be repaid without penalty at any time. The loan is secured by the Operating Partnership’s equity interest in its current direct subsidiaries that hold real estate assets pursuant to the terms of a security agreement between the Operating Partnership and Brown Family Enterprises, LLC. On July 21, 2023, the Company amended and restated the promissory note to reflect an increase in the loan to $5.5 million and extend the maturity date thereof from October 14, 2024 to October 14, 2026. Except for the increase in the amount of the Loan and Note and the extension of the maturity date thereof, no changes were made to the original note.

Concurrent with the aforementioned sales, the Company repaid the corresponding loan in full, which had been secured by three properties: a 7-Eleven store in Washington, D.C., the Starbucks store in South Tampa, Florida, and the property in Huntsville, Alabama. The prepayment resulted in a loss on extinguishment of debt of $926,398, consisting of $286,218 of unamortized debt

issuance costs and $640,180 of prepayment premiums and liquidation fees. The loan payoff also included $808,953 of default interest, which was recognized as interest expense in the period.

On June 13, 2025, the Company, through its subsidiary GIPDC 3707 14TH ST, LLC, entered into a loan agreement with Valley National Bank in the principal amount of $1,100,000, secured by the Company’s 7-Eleven store located at 3707-3711 14th Street NW, Washington, D.C. The loan bears interest at a fixed rate of 6.50% per annum. An initial disbursement of $750,000 was made at closing, with the remaining $350,000 in proceeds available upon renewal of the tenant’s lease, which currently expires March 31, 2026. In the event of a lease renewal for an additional five-year term, the maturity date will automatically extend from March 31, 2026 to June 13, 2030, and beginning July 13, 2026, principal and interest will amortize over a 25-year schedule. The loan is supported by a Guaranty of Nonrecourse Carve-out Obligations executed by David Sobelman, the Company’s Chief Executive Officer, in favor of Valley National Bank.

Subsequent to September 30, 2025, the Company satisfied the required conditions for the release of the $350,000 renewal funds, and the proceeds were disbursed and received on November 10, 2025, in accordance with the terms of the Loan Agreement.

Minimum required principal payments on the Company’s debt for subsequent years ending December 31 are as follows:


	Mortgage Loans		Loan Payable - Related Party		Total as of September 30, 2025
2025	$	298,468		2,114,689		2,413,157
2026		5,632,816		5,500,000		11,132,816
2027		1,271,209		-		1,271,209
2028		21,599,559		-		21,599,559
2029		13,053,050		-		13,053,050
Thereafter		13,907,644		-		13,907,644
	$	55,762,746	$	7,614,689	$	63,377,435

Other Loans Payable

On May 29, 2025, the Company, through the Operating Partnership, entered into a loan transaction for $332,000 with Chase Commercial Realty, Inc. d/b/a NAI Chase for broker’s fees payable by the Company to Chase in connection with the sale of the Company’s Auburn University-occupied industrial building located in Huntsville, Alabama. The loan provides that an amount equal to the aggregate unpaid principal amount of the loan, together with accrued but unpaid interest at an interest rate of 7.5% per annum, will be due on December 31, 2025. The loan may be repaid without penalty at any time.

On May 29, 2025, GIPFL 1300 S Dale Mabry, LLC (“GIPFL”), an indirect wholly owned subsidiary of the Company, entered into a loan for $103,500 that is evidenced by a promissory note issued to SRS Real Estate Partners, LLC ("SRS") for broker’s fees payable by the Company to SRS in connection with the sale of the Company’s Starbucks-occupied retail building located in Tampa, Florida.. The note provides that an amount equal to the aggregate unpaid principal amount of the loan, together with accrued but unpaid interest at an interest rate of 0% per annum, will be due on December 31, 2025. The note may be repaid without penalty at any time.

Both amounts are included in Loan payable – related party on the consolidated balance sheet as of December 31, 2025.

Note 9 – Related Party

As disclosed previously, on August 9, 2022 the Company and Operating Partnership entered a Redemption Agreement with a unit holder. As such, the Company recorded in other payable - related party in the amount of $2,912,299 upon execution of the Redemption Agreement entered into July 20, 2022 and has paid the note in full as of December 31, 2024. Additionally, the Company issued 200,000 shares of common stock at $6.00 per share in accordance with the Redemption Agreement, and recorded the stock at par value of $2,000 with the remaining $1,198,000 to additional paid in capital.

As disclosed previously, on October 14, 2022, the Company entered into a loan transaction that is evidenced by a secured non-convertible promissory note to Brown Family Enterprises, LLC, a preferred equity partner and therefore a related party, for $1,500,000 with a maturity of October 14, 2024, and bearing a fixed interest rate of 9% with simple interest payable monthly. The loan may be repaid without penalty at any time. The loan is secured by the Operating Partnership’s equity interest in its current direct subsidiaries that hold real estate assets pursuant to the terms of a security agreement between the Operating Partnership and Brown Family Enterprises, LLC. On July 21, 2023, the Company amended and restated the promissory note to reflect an increase in the loan to $5.5 million and extend the maturity date thereof from October 14, 2024 to October 14, 2026. Except for the increase in the amount of the Loan and Note and the extension of the maturity date thereof, no changes were made to the original note.

On November 30, 2020, the Company acquired an approximately 3,500 square foot building from GIP Fund 1, LLC a related party that was owned 11% by the President and Chairman of the Company. The retail single tenant property (occupied by The Sherwin-Williams Company) in Tampa, Florida was acquired for approximately $1.8 million. Since acquisition, GIP Fund 1, LLC was

dissolved and each partner was allocated units to GIP LP pro-rata effectively reducing the President and Chairman of the Company’s ownership to 0.09% as of September 30, 2025.

During the three months and nine ended September 30, 2025 and 2024 the Company incurred a guaranty fee expense to the Company's CEO of $71,056 and $248,682, and $102,023 and $304,245, respectively, recorded to interest expense and is included in accrued expenses – related party on the Consolidated Balance Sheets as of September 30, 2025. See Note 8 – Debt for details of the guaranty provided by the Company's President and CEO.

On April 25, 2025, the Company entered into a secured promissory note with Brown Family Enterprises LLC, a related party. The Note represents a loan in the principal amount of $1,000,000, bearing simple interest at an initial rate of 16% per annum for the first 90 days, after which the interest rate will revert to 9% per annum. The Loan is due in full on the earlier of (a) 180 days from the date of the note or (b) the date on which all amounts become due as outlined in the note. The Company may prepay the Loan in whole or in part at any time without penalty. Interest payments are due monthly, and the remaining principal is due on the maturity date. In the event of default, as defined in the Note, the entire principal amount and accrued interest may become immediately due and payable. The Noteholder has the right to exercise remedies under the Security Agreement upon default.

On October 27, 2025, the Company entered into a First Amendment to the Secured Promissory Note originally issued on April 25, 2025 to Brown Family Enterprises, LLC in the principal amount of $1.0 million. The First Amendment extends the Note’s maturity date to December 15, 2025 and provides for a $20,000 extension fee payable on the revised maturity date. Except as amended to reflect the new maturity and the extension fee, all other terms of the Note remain unchanged, including the interest rates, security interests, and covenants previously disclosed.

Note 10 – Derivative Financial Instruments and Fair Value Measurements

On August 10, 2023, as previously disclosed, the Company entered into a loan agreement for $21.0 million and corresponding swap agreement with the same notional amount to finance the acquisition of the Modiv Portfolio. The outstanding principal amount of the loan bears interest at an annual rate for each 30-day interest period equal to the compounded average of the secured overnight financing rate published by Federal Reserve Bank of New York for the thirty-day period prior to the last day of each 30-day interest rate for the applicable interest rate period plus 3.25%, with interest payable monthly after each 30-day interest period. On the same date, the Company entered into corresponding swap agreement, fixing the interest rate at 7.47% per annum through the contract's termination in August 2028.

In November 2020, the Company entered into a $1.3 million loan agreement and corresponding swap agreement with the same notional amount to support project financing. The outstanding principal amount of the loan bears interest at an annual rate for each 30-day interest period equal to the compounded average of the secured overnight financing rate published by Federal Reserve Bank of New York for the thirty-day period prior to the last day of each 30-day interest rate for the applicable interest rate period plus 2.75%, with interest payable monthly after each 30-day interest period through the contract's termination in August 2028. The interest swap fixed the interest rate at 3.72% per annum.

The Company has not elected hedge accounting and has reported periodic changes in derivative valuations in loss on derivative valuation, net for $11,256 and $427,081 for the three and nine months ended September 30, 2025 and loss on derivative valuation, net for $734,116 and $308,570 for the three and nine months ended September 30, 2024, respectively. As of September 30, 2025, the Company recognized a derivative liability of $534,198 and derivative asset of $77,908, which was included in Escrow Deposits and Other assets on the face of the balance sheet.

The fair value of the Company's interest rate derivatives is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. Certain inputs, which are material to the value, are considered Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amount of cash and cash equivalents and restricted cash reported in our consolidated balance sheets approximates fair value due to the short-term nature of these instruments.

The carrying amounts and estimated fair values of our financial instruments are as follows:


	September 30, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	$	247,288	$	247,288	$	612,939	$	612,939
Restricted cash		34,500		34,500		34,500		34,500
Interest rate swaps		77,908		77,908		140,476		140,476

Financial liabilities:
Interest rate swaps		534,198		534,198		169,685		169,685

Note 11 – Subsequent Events

The Company has evaluated subsequent events through the date that the consolidated financial statements are issued.

Brown Family Enterprises Loan

As discussed in Note 9 above, on October 27, 2025, the Company entered into an amendment to its $1.0 million secured promissory note with Brown Family Enterprises, LLC, extending the maturity date to December 15, 2025 and providing for a $20,000 extension fee.

Valley National Bank Loan

As discussed on Note 8 above, on November 10, 2025, the Company satisfied all conditions required under the June 13, 2025 loan agreement with Valley National Bank for the release of the remaining $350,000 renewal funds related to the 7-Eleven-occupied property located at 3707-3711 14th Street NW, Washington, D.C. The funds were disbursed and received by the Company on that date in accordance with the terms of the loan agreement.

Real Estate Dispositions

As discussed in Note 2 above, the Company entered into agreements to sell three properties with an aggregate contract value of approximately $13.77 million.

Each transaction is subject to customary due diligence and closing conditions. No other subsequent events requiring adjustment to or disclosure in the consolidated financial statements were identified.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Note Regarding Forward‑Looking Statements

This report contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained herein. When used in this report, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. Actual results, performance or achievements could differ materially from the results expressed in, or implied by these forward-looking statements. Readers should be aware of important factors that, in some cases, have affected, and in the future could affect, actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. Factors that could have a material adverse effect on our forward-looking statements and upon our business, results of operations, financial condition, funds derived from operations, cash available for distribution, cash flows, liquidity and prospects include, but are not limited to, the risk factors listed from time to time in our reports with the Securities and Exchange Commission, including, in particular, those set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

In this Quarterly Report on Form 10-Q, references to the “Company,” “we,” “us,” “our” or similar terms refer to Generation Income Properties, Inc., a Maryland corporation, together with its consolidated subsidiaries, including Generation Income Properties, L.P., a Delaware limited partnership, which we refer to as our operating partnership (the “Operating Partnership”). As used in this Quarterly Report, an affiliate, or person affiliated with a specified person, is a person that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.

Overview

We are an internally managed, Maryland corporation focused on acquiring retail, office and industrial real estate located in major U.S. markets. We initiated operations during the year ended December 31, 2015 and have elected to be taxed as a REIT for federal income tax purposes. Substantially all of the Company’s assets are held by, and operations are conducted through, the Operating Partnership and the Operating Partnership’s direct and indirect subsidiaries. The Company is the general partner of the Operating Partnership and as of September 30, 2025 owned 99.6% of the outstanding common units of the Operating Partnership. The Company formed a Maryland entity GIP REIT OP Limited LLC in 2018 that owns 0.001% of the Operating Partnership.

Public Offering and Nasdaq Listing

In September 2021, the Company closed an underwritten public offering of 1,665,000 units at a price to the public of $10 per unit generating net proceeds of $13.8 million. Each unit consisted of one share of common stock and one warrant to purchase one share of common stock at an exercise price equal to $10 per share. The common stock and warrants included in the units (which were separated into one share of common stock and one warrant) currently trade on the Nasdaq Capital Market (“Nasdaq”) under the symbols “GIPR” and “GIPRW,” respectively.

Our Investments

The following are characteristics of our properties as of September 30, 2025:

•

Creditworthy Tenants. Approximately 60% of our portfolio’s annualized base rent ("ABR") as of September 30, 2025 was derived from tenants that have (or whose parent company has) an investment grade credit rating from a recognized credit rating agency of “BBB-” or better. Our largest tenants are the General Service Administration, Dollar General, EXP Services, and Kohl’s Corporation, and City of San Antonio contributed approximately 59% of our portfolio’s annualized base rent.

•

Percentage Leased. Our portfolio is 98.6% leased and occupied.

•

Contractual Rent Growth. Approximately 92% of the leases in our current portfolio (based on ABR as of September 30, 2025) provide for increases in contractual base rent during future years of the current term or during the lease extension periods.

•

Average Effective Annual Rental per Square Foot. Average effective annual rental per square foot is $16.30.

Given the nature of our leases, our tenants either pay the realty taxes directly or reimburse us for such costs. We believe all of our properties are adequately covered by insurance.

The table below presents an overview of the properties in our portfolio as of September 30, 2025:

     Property Type

     Location

     Rentable Square Feet

     Tenant

     S&P Credit Rating (1)

     IG

     Remaining Term (Yrs)

     Options (Number x Yrs)

     Contractual Rent Escalations (3)

     ABR (2)

     ABR per Sq. Ft.

Retail

Washington, DC

3,000

7-Eleven Corporation

A

Y

1.0

2 x 5

Yes

129,804

43.27

Office

Norfolk, VA

49,902

General Services Administration-Navy (5)

AA+

Y

3.5

N/A

Yes

640,742

12.84

Office

Norfolk, VA

22,247

Armed Services YMCA of the U.S.A. (5)

N/A

N/A

9.1

2 x 5

Yes

411,570

18.50

Office

Norfolk, VA

34,847

PRA Holdings, Inc.

BB

N

2.4

1 x 5

Yes

823,909

23.64

Retail

Tampa, FL

3,500

Sherwin Williams Company

BBB

Y

3.3

5 x 5

Yes

126,788

36.23

Office

Manteo, NC

7,543

General Services Administration-FBI

AA+

Y

3.9

1 x 5

Yes

100,682

13.35

Office

Plant City, FL

7,826

VACANT

N/A

N/A

0.0

N/A

N/A

-

-

Retail

Rockford, IL

15,288

La-Z-Boy Inc.

Not Rated

Not Rated

2.6

4 x 5

Yes

366,600

23.98

Retail

Grand Junction, CO

30,701

Best Buy Co., Inc.

BBB+

Y

2.0

1 x 5

Yes

353,061

11.50

Medical-Retail

Chicago, IL

10,947

Fresenius Medical Care Holdings, Inc.

BBB

Y

8.6

2 x 5

Yes

238,149

21.75

Retail

Tampa, FL

2,642

Starbucks Corporation

BBB+

Y

1.9

2 x 5

Yes

148,216

56.10

Retail

Tucson, AZ

88,408

Kohl's Corporation

BB-

N

4.8

7 x 5

Yes

864,630

9.78

Retail

San Antonio, TX

50,000

City of San Antonio (PreK)

AAA

Y

4.3

1 x 8

Yes

924,000

18.48

Retail

Bakersfield, CA

18,827

Dollar General Market

BBB

Y

3.3

3 x 5

Yes

361,075

19.18

Retail

Big Spring, TX

9,026

Dollar General

BBB

Y

5.3

3 x 5

Yes

86,041

9.53

Retail

Castalia, OH

9,026

Dollar General

BBB

Y

10.2

3 x 5

Yes

79,320

8.79

Retail

East Wilton, ME

9,100

Dollar General

BBB

Y

5.3

3 x 5

Yes

112,439

12.36

Retail

Lakeside, OH

9,026

Dollar General

BBB

Y

10.2

3 x 5

Yes

81,036

8.98

Retail

Litchfield, ME

9,026

Dollar General

BBB

Y

5.5

3 x 5

Yes

92,961

10.30

Retail

Mount Gilead, OH

9,026

Dollar General

BBB

Y

5.3

3 x 5

Yes

85,924

9.52

Retail

Thompsontown, PA

9,100

Dollar General

BBB

Y

5.6

3 x 5

Yes

85,998

9.45

Retail

Morrow, GA

10,906

Dollar Tree Stores, Inc.

BBB

Y

5.3

2 x 5

Yes

109,060

10.00

Office

Maitland, FL

33,118

exp U.S. Services Inc.

Not Rated

Not Rated

1.7

1 x 5

Yes

864,583

26.11

Office

Vacaville, CA

11,014

General Services Administration

AA+

Y

1.4

N/A

No

257,050

23.34

Retail

Santa Maria, CA

14,490

Walgreens (4)

BB-

Y

7.0

N/A

No

369,000

25.47

Retail

Ames, IA

30,259

Best Buy Co., Inc.

BBB+

Y

5.0

2 x 5

Yes

452,372

14.95

Retail

Sanford, FL

4,108

Zaxby's

Not Rated

Not Rated

14.7

4 x 5

Yes

240,434

58.53

Retail

Cleveland, TN

10,640

Dollar General

BBB

Y

11.1

5 x 5

No

119,728

11.25

Retail

Kernersville, NC

19,097

Tractor Supply

BBB

Y

10.3

4 x 5

Yes

318,150

16.66

Tenants - All Properties

542,640

8,843,321

16.30

(1)

Tenant, or tenant parent, rated entity.

(2)

Annualized cash base rental income in place as of September 30, 2025. Our leases do not include tenant concessions or abatements, except for Dollar Tree in Morrow, Georgia which had 2-months free rent in Q3 2025.

(3)

Includes rent escalations available from lease renewal options.

(4)

Tenant has the right to terminate the lease as of March 31, 2032, March 31, 2037, March 31, 2042, March 31, 2047, March 31, 2052, and March 31, 2057.

(5)

Two tenants occupy this single property. New lease executed for the vacant unit, effective May 1, 2024.

Distributions

From inception through September 30, 2025, we have distributed $5,024,622 to common stockholders.

Recent Developments

Brown Family Enterprises Loan

On April 25, 2025, Generation Income Properties, Inc. (the “Company”), through its operating partnership Generation Income Properties L.P. (the “Operating Partnership”), entered into a loan transaction for a $1.0 million loan that is evidenced by a secured non-convertible promissory note (the "Promissory Note") payable to Brown Family Enterprises, LLC ("Lender") in the original principal amount of $1 million. The Promissory Note provides that an amount equal to $500,000 in aggregate unpaid principal amount of the loan, together with accrued but unpaid interest at an initial interest rate of 16% per annum, will be due on the date that is 90

days from the date of the Promissory Note (the “Initial Payment Date”). Thereafter, the Promissory Note bears a fixed interest rate of 9%, simple interest, and interest is payable monthly after the initial 90 days, with all remaining principal and accrued but unpaid interest being due on the 180th day after the issuance of the Promissory Note. Interest that is accrued but unpaid as of the Initial Payment Date will be added to the principal amount of the Promissory Note. The Promissory Note may be repaid without penalty at any time. The Promissory Note is secured by the assets of the Operating Partnership under a Security Agreement previously entered into with Lender on July 21, 2024.

Property Sales

On May 29, 2025, the Company completed the sale of its Starbucks-occupied retail building located in Tampa, Florida for a purchase price of $3,450,000.

On May 29, 2025, Company completed the sale of its Auburn University-occupied industrial building located in Huntsville, Alabama for a purchase price of $7,200,000, in cash.

Promissory Notes

On May 29, 2025, the Company, through its operating partnership Generation Income Properties L.P. (the “Operating Partnership”), entered into a loan transaction for $332,000.00 that is evidenced by a promissory note (the “NAI Chase Promissory Note”) issued to Chase Commercial Realty, Inc. d/b/a NAI Chase (“Chase”). The NAI Chase Promissory Note provides that an amount equal to the aggregate unpaid principal amount of the loan, together with accrued but unpaid interest at an interest rate of 7.5% per annum, will be due on December 31, 2025. The NAI Chase Promissory Note may be repaid without penalty at any time. The NAI Chase Promissory Note relates to broker’s fees payable by the Company to Chase in connection with the sale of the Company’s Auburn University-occupied industrial building located in Huntsville, Alabama, as further described under Item 2.01 above.

On May 29, 2025, the Company’s Chief Executive Officer (the "Guarantor") executed a Personal Guaranty (the “Guaranty”) in favor of Chase, in connection with the loan made by Chase to the Operating Partnership pursuant to the Chase Promissory Note. Under the terms of the Guaranty, the Guarantor unconditionally and irrevocably guarantees the full and punctual payment of all obligations of the Operating Partnership under the Chase Promissory Note, including principal, interest, and enforcement costs. The Guarantor’s liability is limited to the maximum amount enforceable under applicable bankruptcy and fraudulent transfer laws.

On May 29, 2025, GIPFL 1300 S Dale Mabry, LLC (“GIPFL”), an indirect wholly owned subsidiary of the Company, entered into a loan transaction for $103,500 that is evidenced by a promissory note (the “SRS Promissory Note”) issued to SRS Real Estate Partners, LLC. (“SRS”). The SRS Promissory Note provides that an amount equal to the aggregate unpaid principal amount of the loan, together with accrued but unpaid interest at an interest rate of 0% per annum, will be due on December 31, 2025. The SRS Promissory Note may be repaid without penalty at any time. The SRS Promissory Note relates to broker’s fees payable by the Company to SRS in connection with the sale of the Company’s Starbucks-occupied retail building located in Tampa, Florida, as further described under Item 2.01 above.

On May 29, 2025, the Company, through the Operating Partnership, entered into a loan transaction with the Company’s Chief Executive Officer, for $610,000 to fund closing costs relating to the sale of the Company’s Auburn University-occupied industrial building located in Huntsville, Alabama and Starbucks-occupied retail building located in Tampa, Florida, as further described under Item 2.01 above. The loan is evidenced by a promissory note (the “Sobelman Promissory Note”) payable to the David E. Sobelman Revocable Trust, under an agreement dated September 5, 2007. The Sobelman Promissory Note provides that an amount equal to the aggregate unpaid principal amount of the loan, together with accrued but unpaid interest at an interest rate of 5.75% per annum, previously due on August 31, 2025, has been extended to December 31, 2025, has been extended to December 31, 2025.

Valley National Mortgage Loan

On June 13, 2025, GIPDC 3707 14th St, LLC (the “Borrower”), an indirect subsidiary of the Company, entered into a Loan Agreement (the “Loan Agreement”) with Valley National Bank (the “Lender”), pursuant to which the Lender made a mortgage loan in the original principal amount of $1.1 million (the “Loan”). The Loan is secured by a first-priority Deed of Trust and Assignment of Rents and Leases on the Borrower’s fee interest in a previously unencumbered single-tenant property located at 3707–3711 14th Street NW, Washington, D.C. (the “Property”).

The Loan is evidenced by a Promissory Note, dated June 13, 2025 (the “Note”), bearing interest at a fixed rate of 6.50% per annum. The net proceeds of the Loan were used to extract equity from the Property for general corporate purposes. At closing, $750,000 of the Loan proceeds was disbursed, with an additional $350,000 (the “Renewal Funds”) to be disbursed upon satisfaction of certain conditions, including the delivery to the Lender, on or before March 31, 2026, of an executed lease renewal with the Property’s current tenant,

7-Eleven, Inc., extending the lease for an additional five years beyond its current expiration date of March 31, 2026. Monthly interest-only payments are due beginning July 13, 2025, through June 13, 2026. If the required lease renewal is delivered and all other conditions are satisfied to the Lender’s sole satisfaction, the Renewal Funds will be disbursed, and the maturity date of the Loan will be automatically extended to June 13, 2030. In such case, beginning July 13, 2026, the borrower will make monthly payments of principal and interest based on a 25-year amortization schedule, with a final balloon payment due on the extended maturity date of June 13, 2030. If the lease renewal is not delivered by March 31, 2026, the Loan will mature on that date, and all outstanding principal, accrued interest, and other amounts will become immediately due and payable.

The Loan Agreement contains customary representations, covenants, and events of default, including financial reporting obligations and a requirement to maintain a minimum debt service coverage ratio (DSCR) of at least 1.50:1.00, tested quarterly on a trailing twelve-month basis.

In connection with the Loan, the Executive Chairman of the Company, entered into a Guaranty of Nonrecourse Carveout Obligations (the “Guaranty Agreement”), pursuant to which he unconditionally guaranteed certain nonrecourse carveout obligations of the Borrower to the Lender.

Results of Operations

Operating results for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024:

Revenue

During the three and nine months ended September 30, 2025, total revenue from operations were $2,470,109 and $7,283,974, respectively, as compared to $2,400,282 and 7,092,690 for the three and nine months ended September 30, 2024, respectively. Revenue increased by $69,827 and $191,284 during the three and nine months ended September 30, 2025, respectively, compared with the three and nine months ended September 30, 2024.

During the three and nine months ended September 30, 2025, we incurred total operating expenses of $4,169,441 and $12,832,102, respectively, as compared to $3,769,715 and $11,133,386, respectively, for the three and nine months ended September 30, 2024. Operating expenses increased overall by $399,726 and $1,698,716, respectively, as follows:


	Three months ended September 30,
	2025		2024		Change
General and administrative expense	$	585,193	$	577,565	$	7,628
Building expenses		635,717		729,062		(93,345	)
Depreciation and amortization		1,287,112		1,068,081		219,031
Interest expense, net		1,162,436		1,098,608		63,828
Compensation costs		498,983		296,399		202,584
Total expenses	$	4,169,441	$	3,769,715	$	399,726


	Nine months ended September 30,
	2025		2024		Change
General and administrative expense	$	1,643,464	$	1,632,018	$	11,446
Building expenses		1,975,060		2,067,356		(92,296	)
Depreciation and amortization		3,844,454		3,474,918		369,536
Interest expense, net		4,429,454		3,142,489		1,286,965
Compensation costs		939,670		816,605		123,065
Total expenses	$	12,832,102	$	11,133,386	$	1,698,716

•

General, administrative and organizational costs remained relatively flat, year-over-year, with modest increases of $7,628 and $11,446 for the comparative periods of the three and nine months ended September 30, 2025 and 2024, respectively. Included in general and administrative expenses are accrued legal fees related to Special Committee matters totalling approximately $235,000 as of the reporting date.

•

Building expenses remained relatively flat, year-over-year, with modest decreases of $93,345 and $92,296 for the comparative periods of the three and nine months ended September 30, 2025 and 2024.

•

Depreciation and amortization increased nominally, year-over-year, by $219,031 and $369,536 for the comparative periods of the three and nine months ended September 30, 2025 and 2024.

•

Interest expense, net increased by $63,828 and $1,286,965 during the three and nine months ended September 30, 2025. The increase being primarily attributable to costs associated with the prepayment of loan in May 2025.

•

Compensation costs increased by $202,584 and $123,065 during the three and nine months ended September 30, 2025, primarily due to restricted stock compensation and increase in executive salary.

Net loss

During the three and nine months ended September 30, 2025 and 2024, we generated a net loss of $1,717,854 and $6,981,835, and $2,103,549 and $5,444,133, respectively.

Net income attributable to non-controlling interests

During the three and nine months ended September 30, 2025 and 2024, net income attributable to non-controlling interest was $1,109,106 and $2,999,612, and $866,047 and $2,612,405, respectively.

Net loss attributable to common shareholders

During the three and nine months ended September 30, 2025 and 2024, we generated a net loss attributable to our shareholders of $2,826,960 and $9,981,447 and $2,969,596 and $8,151,538, respectively.

Liquidity and Capital Resources

We require capital to fund our investment activities and operating expenses. Our capital sources may include net proceeds from offerings of our equity securities, cash flow from operations, proceeds from property dispositions, and borrowings under credit facilities. As of September 30, 2025, we had total cash (unrestricted and restricted) of $281,788, properties with a gross cost basis of $97,011,131 and outstanding mortgage loans with a principal balance of $55,762,746.

In September 2021, we closed an underwritten public offering of 1,665,000 units at a price to the public of $10 per unit generating net proceeds of $13.8 million including issuance costs incurred during the years ended December 31, 2021 and 2020.

On April 1, 2022, we entered into two mortgage loan agreements with an aggregate balance of $13.5 million to refinance seven of our properties. The loan agreements consist of one loan in the amount of $11.4 million secured by six properties and allocated to each property based on each property's appraised value, and one loan in the amount of $2.1 million on the property previously held in the tenancy-in-common investment at an interest rate of 3.85% from April 1, 2022 through and until March 31, 2027. In conjunction with the LC2 Investment to purchase the remaining interest in the tenancy-in-common interest discussed above, the Company assumed the original $2.1 million loan on the property with a remaining balance of $2,079,178 and recognized a discount of $383,767. Effective April 1, 2027 and through the maturity date of March 31, 2032, the interest rate adjusts to the 5-year Treasury plus 2.5% and is subject to a floor of 3.85%. Our CEO entered into a guarantee agreement pursuant to which he guaranteed the payment obligations under the promissory notes if they become due as a result of certain “bad-boy” provisions, individually and on behalf of the Operating Partnership.

On August 10, 2023, GIP13, LLC, a Delaware limited liability company and wholly owned subsidiary of GIP SPE ("GIP Borrower"), entered into a Loan Agreement with Valley pursuant to which Valley made a loan to the Company in the amount of $21.0 million to finance the acquisition of the Modiv Portfolio. The outstanding principal amount of the loan bears interest at an annual rate for each 30-day interest period equal to the compounded average of the secured overnight financing rate published by Federal Reserve Bank of New York for the thirty-day period prior to the last day of each 30-day interest rate for the applicable interest rate period plus 3.25%, with interest payable monthly after each 30-day interest period. However, the Company entered into an interest rate swap to fix the interest rate at 7.47% per annum. Payments of interest and principal in the amount of approximately $156,000 are due and payable monthly, with all remaining principal and accrued but unpaid interest due and payable on a maturity date of August 10, 2028. The loan may generally be prepaid at any time without penalty in whole or in part, provided that there is no return of loan fees and prepaid financing fees. The loan is secured by first mortgages and assignments of rents in the properties comprising the Modiv Portfolio and eight other properties held by subsidiaries of GIP SPE that had outstanding loans with Valley. All of the mortgaged properties cross collateralize the loan, and the loan is guaranteed by the Operating Partnership and the subsidiaries of the Company that hold the properties that comprise the Modiv Portfolio. The loan agreement also provides for customary events of default and other customary affirmative and negative covenants that are applicable to GIP Borrower and its subsidiaries, including reporting covenants and restrictions on investments, additional indebtedness, liens, sales of properties, certain mergers, and certain management changes. The Company's President and CEO also entered into a personal, full recourse guarantee with a $7,500,000 cap.

On June 27, 2024, the Operating Partnership and an accredited investor entered into a Unit Purchase Agreement pursuant to which the Operating Partnership issued and sold to the investor 500,000 Series A Preferred Units at a price of $5.00 per unit for an aggregate purchase price of two million five hundred thousand dollars ($2,500,000) in cash. Under the terms of the Series A Preferred Units, the investor will be paid cumulative cash distributions in the amount of $0.325 per Series A Preferred Unit per year, payable monthly in arrears, on or about the 15th day of each month. Each of the investor and the Operating Partnership will have the right to cause the Operating Partnership to redeem the Series A Preferred Units after two (2) years for cash in an amount equal to $5.15 per Series A Preferred Unit plus any accrued but unpaid Series A Preferred Return, provided that the Operating Partnership may (with the prior written consent of the investor) cause the redemption price to be satisfied by the issuance of a number of shares of common stock of the Company equal to the number of Series A Preferred Units being redeemed multiplied by 1.03 plus any accrued but unpaid Series

A Preferred Return. If the Operating Partnership fails to declare and pay the Series A Preferred Return for a period of three consecutive months, the investor may exercise the foregoing redemption right within the 30-day period following such failure.

Our President and CEO has also personally guaranteed the repayment of the $1.2 million loan secured by the Company's Sherwin-Williams - Tampa, FL property. In addition, our President and CEO has also provided a guaranty of the Company’s nonrecourse carveout liabilities and obligations in favor of the lender for the GSA and PRA Holdings, Inc. - Norfolk, VA mortgage loans ("Bayport loans") with an aggregate principal amount of $11.3 million.

During the three and nine months ended September 30, 2025, we incurred a guaranty fee expense to our President and CEO of $71,056 and $248,682, respectively, recorded to interest expense. A guaranty fee expense of $102,023 and $304,245 was incurred during the three and nine months ended September 30, 2024, respectively.

On June 13, 2025, GIPDC 3707 14th St, LLC, an indirect subsidiary of the Company, entered into a secured Loan Agreement with Valley National Bank (the “Lender”), pursuant to which the Lender made a mortgage loan in the original principal amount of $1.1 million (the “Loan”). The proceeds of the loan will be used for general corporate purposes.

On August 9, 2022, we entered a Redemption Agreement with a unit holder. As such, we recorded another payable - related party in the amount of $2,912,300 upon execution of the Redemption Agreement entered into July 20, 2022 and has paid the note in full as of September 30, 2025. Remaining balances of $0 and $452,260 outstanding as of September 30, 2025 and 2024, respectively.

On October 14, 2022, we entered into a loan transaction that is evidenced by a secured non-convertible promissory note to Brown Family Enterprises, LLC, a preferred equity partner and therefore a related party, for $1.5 million that is due on October 14, 2024, and bears a fixed interest rate of 9% with simple interest payable monthly. On July 21, 2023, the Company amended and restated the promissory note to reflect an increase in the loan to $5.5 million and extend the maturity date thereof from October 14, 2024 to October 14, 2026. Except for the increase in the amount of the Loan and Note and the extension of the maturity date thereof, no changes were made to the original note. The loan may be repaid without penalty at any time. The loan is secured by the Operating Partnership’s equity interest in its current direct subsidiaries that hold real estate assets pursuant to the terms of a security agreement between the Operating Partnership and Brown Family Enterprises, LLC.

We currently obtain the capital required to primarily invest in and manage a diversified portfolio of commercial net lease real estate investments and conduct our operations from the proceeds of equity offerings, debt financings, preferred minority interest obtained from third parties, issuance of Operating Partnership units and from any undistributed funds from our operations.

As a result of our recurring losses, our projected cash needs, and our current liquidity, substantial doubt exists about the Company’s ability to continue as a going concern one year after the date that these financial statements are issued. The Company’s ability to continue as a going concern is contingent upon successful execution of management’s plan to improve the Company’s liquidity and profitability. Our current and anticipated liquidity is less than the principal balance of these obligations.

Outstanding mortgage loans payable consisted of the following as of September 30, 2025 and December 31, 2024, respectively:



Occupying Tenant	Property Location	Original Loan Amount			Interest Rate		Maturity Date	9/30/2025			12/31/2024			Debt Service Coverage Ratios ("DSCR") Required
7-Eleven Corporation	Washington, D.C.	$	750,000		6.50%		3/31/2026	$	750,000		$	-		1.50
7-Eleven Corporation, Starbucks Corporation & Auburn University	Washington, D.C., Tampa, FL, and Huntsville, AL		11,287,500	(a)	4.17%		3/6/2030		-			10,602,711		1.25
General Services Administration-Navy & AYMCA	Norfolk, VA		8,260,000	(f)	6.15%		8/30/2029		6,976,176			7,119,184		1.25
PRA Holdings, Inc.	Norfolk, VA		5,216,749	(f)	6.15%		8/23/2029		4,322,347			4,410,949		1.25
Sherwin Williams Company	Tampa, FL		1,286,664		3.72%	(b)	8/10/2028		1,230,609			1,255,068		1.20
General Services Administration-FBI	Manteo, NC		928,728	(c)	3.85%	(d)	3/31/2032		873,262			891,071		1.50
Irby Construction	Plant City , FL		928,728	(c)	3.85%	(d)	3/31/2032		873,262			891,071		1.50
La-Z-Boy Inc.	Rockford, IL		2,100,000		3.85%	(d)	3/31/2032		1,974,575			2,014,851		1.50
Best Buy Co., Inc.	Grand Junction, CO		2,552,644	(c)	3.85%	(d)	3/31/2032		2,400,193			2,449,141		1.50
Fresenius Medical Care Holdings, Inc.	Chicago, IL		1,727,108	(c)	3.85%	(d)	3/31/2032		1,623,961			1,657,079		1.50
Starbucks Corporation	Tampa, FL		1,298,047	(c)	3.85%	(d)	3/31/2032		1,220,524			1,245,414		1.50
Kohl's Corporation	Tucson, AZ		3,964,745	(c)	3.85%	(d)	3/31/2032		3,727,960			3,803,985		1.50
City of San Antonio (PreK)	San Antonio, TX		6,444,000	(e)	7.47%	(b)	8/10/2028		6,249,643			6,323,628		1.50
Dollar General Market	Bakersfield, CA		2,428,000	(e)	7.47%	(b)	8/10/2028		2,354,769			2,382,646		1.50
Dollar General	Big Spring, TX		635,000	(e)	7.47%	(b)	8/10/2028		615,848			623,138		1.50
Dollar General	Castalia, OH		556,000	(e)	7.47%	(b)	8/10/2028		539,231			545,614		1.50
Dollar General	East Wilton, ME		726,000	(e)	7.47%	(b)	8/10/2028		704,103			712,439		1.50
Dollar General	Lakeside, OH		567,000	(e)	7.47%	(b)	8/10/2028		549,899			556,409		1.50
Dollar General	Litchfield, ME		624,000	(e)	7.47%	(b)	8/10/2028		605,180			612,344		1.50
Dollar General	Mount Gilead, OH		533,000	(e)	7.47%	(b)	8/10/2028		516,924			523,044		1.50
Dollar General	Thompsontown, PA		556,000	(e)	7.47%	(b)	8/10/2028		539,231			545,614		1.50
Dollar Tree Stores, Inc.	Morrow, GA		647,000	(e)	7.47%	(b)	8/10/2028		627,485			634,914		1.50
exp U.S. Services Inc.	Maitland, FL		2,950,000	(e)	7.47%	(b)	8/10/2028		2,861,025			2,894,895		1.50
General Services Administration	Vacaville, CA		1,293,000	(e)	7.47%	(b)	8/10/2028		1,254,002			1,268,847		1.50
Walgreens	Santa Maria, CA		3,041,000	(e)	7.47%	(b)	8/10/2028		2,949,281			2,984,195		1.50
Best Buy Co., Inc.	Ames, IA		2,495,000		6.29%	(b)	8/23/2029		2,495,000			2,495,000		1.50
Zaxby's	Sanford, FL		2,947,000		6.29%		5/14/2026		2,491,529		n/a			1.30
Dollar General	Cleveland, TN		1,350,000		3.50%		5/14/2026		1,231,969		n/a			1.25
Tractor Supply	Kernersville, NC		3,507,000		2.90%		10/22/2031		3,204,758		n/a			1.20
		$	71,599,913					$	55,762,746		$	59,443,251
							Less Debt Discount, net		(740,020	)		(317,978	)
							Less Debt Issuance Costs, net		(434,942	)		(785,358	)
								$	54,587,784		$	58,339,915

(a) Loan subject to prepayment penalty

(b) Fixed via interest rate swap

(c) One loan in the amount of $11.4 million secured by six properties and allocated to each property based on each property's appraised value.

(d) Adjustment effective April 1, 2027 equal to 5-year Treasury plus 2.5% and subject to a floor of 3.85%

(e) One loan in the amount of $21.0 million secured by 13 properties and allocated to each property based on each property's appraised value.

We amortized debt issuance costs during the three and nine months ended September 30, 2025 and 2024 to interest expense of approximately $48,460 and $60,532 and $137,097 and $156,091, respectively. During the nine months ended September 30, 2025 and 2024, the company paid $72,900 and $0, respectively, in debt issuance costs.

Each mortgage loan requires the Company to maintain certain debt service coverage ratios as noted above. In addition, two mortgage loans, one encumbered by six properties and requiring a 1.50 DSCR, and another stand alone mortgage loan requiring a 1.50 DSCR, require the Company to maintain a 54% loan to fair market stabilized value ratio. Fair market stabilized value shall be determined by the lender by reference to acceptable guides and indices or appraisals from time to time at its discretion. As of September 30, 2025, the Company was in compliance with all covenants.

Minimum required principal payments on our debt as of September 30, 2025 are as follows:


	Mortgage Loans		Loan Payable - Related Party		Total as of September 30, 2025
2025	$	298,468		2,114,689		2,413,157
2026		5,632,816		5,500,000		11,132,816
2027		1,271,209		-		1,271,209
2028		21,599,559		-		21,599,559
2029		13,053,050		-		13,053,050
Thereafter		13,907,644		-		13,907,644
	$	55,762,746	$	7,614,689	$	63,377,435

On February 8, 2023, we entered into new Amended and Restated Limited Liability Company Agreements for the Norfolk, Virginia properties, GIPVA 2510 Walmer Ave, LLC ("GIPVA 2510") and GIPVA 130 Corporate Blvd, LLC ("GIPVA 130"), in which we, as the sole member of GIPVA 2510 and GIPVA 130, admitted a new preferred member, Brown Family Enterprises, LLC, through the issuance of preferred membership interests in the form of Class A Preferred Units of GIPVA 2510 and GIPVA 130. GIPVA 2510 and GIPVA 130 (the “Virginia SPEs”) hold our Norfolk, Virginia properties. In addition, both of the Virginia SPEs and Brown Family Enterprises, LLC entered into Unit Purchase Agreements in which GIPVA 2510 issued and sold 180,000 Class A Preferred Units at a price of $10.00 per unit for an aggregate price of $1,800,000, and GIPVA 130 issued and sold 120,000 Class A Preferred Units at a price of $10.00 per unit for an aggregate price of $1,200,000. The Operating Partnership is the general manager of the subsidiary while Brown Family Enterprises, LLC is a preferred equity member. Pursuant to the agreement, we are required to pay the preferred equity member a 7% IRR paid on a monthly basis and will share in 16% of the equity in each of the Virginia SPEs upon a capital transaction resulting in distributable proceeds. After 24 months, Brown Family Enterprises, LLC has the right to redeem the preferred equity at redemption value. On July 25, 2024, we entered into First Amendments to the Second Amended and Restated Limited Liability Company Agreements, dated as of February 8, 2023, for each of these entities revising the redemption date from February 8, 2025 to February 8, 2027. Because of the redemption right, the non-controlling interest is presented as temporary equity at an aggregated redemption value of $3,000,000 as of September 30, 2025.

In connection with the acquisition of the Modiv Portfolio, the Operating Partnership and LC2 entered into an Amended and Restated Limited Liability Company Agreement for GIP SPE (the “GIP SPE Operating Agreement”) pursuant to which LC2 made a $12.0 million initial capital contribution to GIP SPE, together with a commitment to make an additional $2.1 million contribution upon the satisfactory completion of the acquisition of a tenant-in-common interest held by a third party in the Company’s Rockford, Illinois property (the “LC2 Investment”). The Company completed the acquisition of such tenant-in-common interest on September 7, 2023, for a purchase price of $1.3 million and LC2 made the additional $2.1 million capital contribution on September 11, 2023. LC2 made the LC2 Investment in exchange for a preferred equity interest in GIP SPE (the “Preferred Interest”). The Preferred Interest has a cumulative accruing distribution preference of 15.5% per year, compounded monthly, a portion of which in the amount of 5% per annum (compounded monthly) is deemed to be the “current preferred return,” and the remainder of which in the amount of 10.5% per annum (compounded monthly) is deemed to be the “accrued preferred return.” The GIP SPE operating agreement provides that operating distributions by GIP SPE will be made first to LC2 to satisfy any accrued but unpaid current preferred return, with the balance being paid to the Operating Partnership, unless the “annualized debt yield” of GIP SPE is less than 10%, in which case the balance will be paid to LC2. For this purpose, “annualized debt yield” is calculated as the sum of senior debt and LC2 Investment divided by the trailing three-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) of GIP SPE. The GIP SPE Operating Agreement also provides that distributions from capital transactions will be paid first to LC2 to satisfy any accrued but unpaid preferred return, then to LC2 until the “Make-Whole Amount” (defined as the amount equal to 1.3 times the LC2 Investment) is reduced to zero, and then to the Operating Partnership.

The Preferred Interest is required to be redeemed in full by the Company on or before August 10, 2025 (the"Mandatory Redemption Date") for a redemption amount equal to the greater of (i) the amount of the LC2 Investment plus the accrued preferred return, and (ii) the Make-Whole Amount. Upon a failure to timely redeem the Preferred Interest, the preferred return will accrue at an increased rate of 18% per annum, compounded monthly. The Company has the right to extend the Mandatory Redemption Date for two consecutive 12-month extension periods, provided that (i) LC2 is paid an extension fee of 0.01% of the outstanding amount of the LC2 Investment for each such extension, (ii) the preferred return is increased from 15.5% to 18% of which the accrued preferred return is increased

from 10.5% to 13%, (iii) the trailing 6-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) is in excess of $5.0 million, (iv) GIP SPE and its subsidiaries’ senior debt is extended through the end of the extension period, and there are no defaults under the GIP SPE Operating Agreement.

On August 7, 2025, the Company exercised its first 12-month extension option under the GIP SPE Operating Agreement, extending the Mandatory Redemption Date from August 10, 2025 to August 10, 2026. In connection with the extension, the Company paid LC2 an extension fee of $141,000 (equal to 100 basis points of the outstanding LC2 Investment), increased the “Preferred Equity Return” under the GIP SPE Operating Agreement from 15.5% to 18% per annum, and increased the “Accrued Preferred Return” under the agreement from 10.5% to 13% per annum, while the “Current Preferred Return” under the agreement remained at 5% per annum. The Company also confirmed that the trailing nine-month annualized adjusted net operating income exceeded $5.0 million, the senior loans had been extended through the end of the extension period, and there were no material breaches or defaults under the GIP SPE Operating Agreement.

Each of the preferred members described above may redeem their interest on or after the Redemption date (second year anniversary of the closing of the acquisition), at the discretion of such preferred member, as applicable, all or a portion thereof, of such preferred member’s pro-rata share of the redemption value in the form of the units of the Operating Partnership ("GIP LP Units"). Such GIP LP Units shall be subject to all such restrictions, such as with respect to transferability, as reasonably imposed by the Operating Partnership. The number of GIP LP Units issued to any preferred member shall be determined by dividing the total amount of the redemption value that such preferred member shall receive in GIP LP Units by a 15% discount of the average 30-day market price of Generation Income Properties, Inc. common stock. GIP LP Units shall then be convertible into common stock of Generation Income Properties, Inc. on a 1:1 basis in accordance with the partnership agreement of the Operating Partnership. Additionally, the Operating Partnership has the right to redeem the preferred equity at redemption value with cash after the second year anniversary of the closing of the acquisition.

The primary objective of our financing strategy is to maintain financial flexibility using retained cash flows, long-term debt and common and perpetual preferred stock to finance our growth. We intend to have a lower-leveraged portfolio over the long-term after we have acquired an initial substantial portfolio of diversified investments. During the period when we are acquiring our current portfolio, we will employ greater leverage on individual assets (that will also result in greater leverage of the current portfolio) in order to quickly build a diversified portfolio of assets.

Cash from Operating Activities

Net cash provided by operating activities was $415,553 and $783,511 for the nine months ended September 30, 2025 and 2024, respectively.

Cash from Investing Activities

Net cash provided by (used in) investing activities during the nine months ended September 30, 2025 and 2024 was $10,333,595 and ($5,960,892), respectively.

Cash from Financing Activities

Net cash (used in) and provided by financing activities was ($11,114,799) and $3,607,045 for the nine months ended September 30, 2025 and 2024, respectively.

Off-Balance Sheet Arrangements

We do not have any material off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Non-GAAP Financial Measures

Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose funds from operations ("FFO"), adjusted funds from operations ("AFFO"), core funds from operations ("Core FFO") and core adjusted funds of operations ("Core AFFO") all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.

FFO and related measures do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income or loss as a performance measure or cash flows from operations as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as GAAP net income or loss adjusted to exclude, net gains from sales of property and adding back real estate depreciation; namely, excluding from net income depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. We then adjust FFO for non-cash revenues and expenses such as amortization of deferred financing costs, above and below market lease intangible amortization, straight line rent adjustment where the Company is both the lessor and lessee, and non-cash stock compensation to calculate Core AFFO.

FFO is used by management, investors, and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that AFFO is an additional useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. FFO and AFFO may not be comparable to similarly titled measures employed by other companies. We believe that Core FFO and Core AFFO are useful measures for management and investors because they further remove the effect of non-cash expenses and certain other expenses that are not directly related to real estate operations. We use each as measures of our performance when we formulate corporate goals.

As FFO excludes depreciation and amortization, gains and losses from property dispositions that are available for distribution to stockholders and non-recurring or extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and interest costs, providing a perspective not immediately apparent from net income or loss. However, FFO should not be viewed as an alternative measure of our operating performance since it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties which could be significant economic costs and could materially impact our results from operations. Additionally, FFO does not reflect distributions paid to redeemable non-controlling interests.

The following tables reconcile net income (net loss), which we believe is the most comparable GAAP measure, to FFO, Core FFO, AFFO and Core AFFO:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024

Net loss	$	(1,717,854	)	$	(2,103,549	)	$	(6,981,835	)	$	(5,444,133	)
Other expense		-			-			286			-
Loss (gain) on derivative valuation		11,256			734,116			427,081			308,570
Depreciation and amortization		1,287,112			1,068,081			3,844,454			3,474,918
Loss on held for sale asset valuation		-			-			-			1,058,994
Funds From Operations	$	(419,486	)	$	(301,352	)	$	(2,710,014	)	$	(601,651	)
Amortization of debt issuance costs		94,564			60,532			137,097			156,091
Amortization of debt discount		86,251			-			97,216			-
Non-cash stock compensation		-			94,935			258,750			284,804
Write-off of deferred financing costs		286,219			-			286,219			-
Adjustments to Funds From Operations		467,034			155,467			779,282			440,895
Core Funds From Operations	$	47,548		$	(145,885	)	$	(1,930,732	)	$	(160,756	)

Net loss	$	(1,717,854	)	$	(2,103,549	)	$	(6,981,835	)	$	(5,444,133	)
Other expense		-			-			286			-
Loss (gain) on derivative valuation		11,256			734,116			427,081			308,570
Depreciation and amortization		1,287,112			1,068,081			3,844,454			3,474,918
Amortization of debt issuance costs		94,564			60,532			137,097			156,091
Amortization of debt discount		86,251			-			97,216			-
Above and below-market lease amortization, net		111,800			203,357			171,762			203,357
Straight line rent, net		9,033			42,972			50,541			74,253
Adjustments to net loss	$	1,600,016		$	2,109,058		$	4,728,437		$	4,217,189
Adjusted Funds From Operations	$	(117,838	)	$	5,509		$	(2,253,398	)	$	(1,226,944	)


Dead deal expense	$	7,266		$	-		$	35,160		$	35,873
Loss on extinguishment of debt		-			-			926,398			-
Non-cash stock compensation		-			94,935			258,750			284,804
Write-off of deferred financing costs		286,219			-			286,219			-
Adjustments to Adjusted Funds From Operations	$	293,485		$	94,935		$	1,506,527		$	320,677
Core Adjusted Funds From Operations	$	175,647		$	100,444		$	(746,871	)	$	(906,267	)

Critical Accounting Policies

Our financial statements are affected by the accounting policies used and the estimates and assumptions made by management during their preparation. See our audited consolidated financial statements included herein for a summary of our significant accounting policies.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a smaller reporting company, we are not required to make disclosures under this item.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Our management, with the participation of our Chief Executive Officer and Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Management, with the participation of our CEO and Principal Financial Officer, performed an evaluation of the effectiveness of our disclosure controls and procedures as of September 30, 2025. Based on that evaluation, our management, including our CEO and Principal Financial Officer, concluded that our disclosure controls and procedures were effective as of September 30, 2025.

(b) Changes in internal control over financial reporting.


Maryland	47-4427295
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)

401 E. Jackson Street Suite 3300 Tampa, FL	33602
(Address of principal executive offices)	(Zip code)


Title of each class:	Trading symbol	Name of each exchange on which registered
Common Stock par value $0.01 per share	GIPR	The Nasdaq Stock Market LLC
Warrants to purchase Common Stock	GIPRW	The Nasdaq Stock Market LLC


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☑	Smaller reporting company	☑

		Emerging growth company	☑


EXHIBIT NUMBER	DESCRIPTION

3.1	Articles of Amendment and Restatement of Generation Income Properties, Inc. (incorporated by reference to Exhibit 2.1 of the Company’s Form 1-A/A filed on January 28, 2016)
3.1.1	Articles of Amendment to Amended and Restated Articles of Incorporation. (incorporated by reference to Exhibit 2.1 to the Company’s Form 1-U filed on October 9, 2020.)
3.2	Restated Bylaws of Generation Income Properties, Inc.(incorporated by reference to Exhibit 3.2 of the Company’s Form 10/A filed on April 30, 2025)
4.1	Form of Stock Certificate (incorporated by reference to Exhibit 3.3 of the Company’s Form 1-A filed on September 16, 2015)
4.2	Amended and Restated Agreement of Limited Partnership of Generation Income Properties, L.P. (incorporated by reference to Exhibit 6.2 of the Company’s Form 1-A POS filed on March 29, 2018)
4.2.1	First Amendment to Amended and Restated Agreement of Limited Partnership of Generation Income Properties, L.P. (incorporated by reference from Exhibit 4.4 to the Company’s Amendment No. 5 to Registration Statement on Form S-11 filed on April 12, 2021)
4.2.2	Second Amendment to Amended and Restated Agreement of Limited Partnership of Generation Income Properties, L.P. (incorporated by reference to Exhibit 4.5 to the Company’s Amendment No. 5 to Registration Statement on Form S-11 filed on April 12, 2021)
4.2.3	Fourth Amendment to Amended and Restated Agreement of Limited Partnership of Generation Income Properties, L.P. (incorporated by reference to Exhibit 4.1 from Form 8-K filed on July 2, 2024).
4.2.4	Fifth Amendment to Amended and Restated Agreement of Limited Partnership of Generation Income Properties, L.P. (incorporated by reference to Exhibit 4.1 from Form 8-K filed on July 29, 2024).
4.2.5	Sixth Amendment to Amended and Restated Agreement of Limited Partnership of Generation Income Properties, L.P. (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed on February 10, 2025) any’s Form 8-K filed on February 10, 2025)
4.3	Common Stock Purchase Warrant, dated April 17, 2019. (incorporated by reference from Exhibit 4.6 to the Company’s Amendment No. 5 to Registration Statement on Form S-11 filed on April 12, 2021)
4.4	Common Stock Purchase Warrant dated November 12, 2020 (incorporated by reference to Exhibit 4.7 to the Company’s Amendment No. 5 to Registration Statement on Form S-11 filed on April 12, 2021).
4.5	Representative’s Warrant, dated September 8, 2021 (incorporated by reference from Exhibit 4.1 from Form 8-K filed on September 9, 2021)
4.6	Form of Investor Warrant (incorporated by reference from Exhibit 4.2 from Form 8-K filed on September 9, 2021)
4.7	Warrant Agent Agreement, dated September 2, 2021 between the Company and VStock Transfer, LLC (incorporated by reference from Exhibit 4.3 from Form 8-K filed on September 9, 2021)
10.1	Letter Agreement, dated August 9, 2025, between Generation Income Properties, L.P. and LC2-NNN Pref, LLC (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on July 13, 2025)
10.2	Second Amendment to Lease, dated August 18, 2025, between GIPCO 585 24 ½ Road, LLC and Best Buy Stores, L.P. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 20, 2025)
10.3	Purchase and Sale Agreement, dated August 17, 2025, by and between GIPFL 702 Tillman Place, LLC and Cary Carreno, an individual (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on November 5, 2025)
10.4	First Amendment to Purchase and Sale Agreement, made and entered into October 15, 2025, by and between GIPFL 702 Tillman Place, LLC and 702 Tillman Place, LLC (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on November 5, 2025)
10.5	First Amendment to Secured Promissory Note, dated October 27, 2025 (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on October 31, 2025)
31.1*	Rule 13a – 14(a) Certification of the Principal Executive Officer
31.2*	Rule 13a – 14(a) Certification of the Principal Financial Officer
32.1*	Written Statement of the Principal Executive Officer, Pursuant to 18 U.S.C. § 1350
32.2*	Written Statement of the Principal Financial Officer, Pursuant to 18 U.S.C. § 1350
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)


	GENERATION INCOME PROPERTIES, INC.

Date: November 14, 2025	By:	/s/ David Sobelman
		David Sobelman
		Chief Executive Officer and Chair of the Board
		(Principal Executive Officer)

Date: November 14, 2025	By:	/s/ Ron Cook
		Ron Cook
		VP Accounting and Finance
		(Principal Financial and Accounting Officer)

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults Upon Senior Securities

Item 4. Mine Safety Disclosures

Item 5. Other Information

Item 6. Exhibits

SIGNATURES


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


		Page

PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial Statements	3

	Generation Income Properties, Inc. Consolidated Balance Sheets September 30, 2025 (unaudited) and December 31, 2024	3

	Generation Income Properties, Inc. Consolidated Statements of Operations Three and Nine Months Ended September 30, 2025 and September 30, 2024 (unaudited)	4

	Generation Income Properties, Inc. Consolidated Statements of Changes in (Deficit) Equity, Redeemable Preferred Stock, and Redeemable Non-Controlling Interests for the Nine Months Ended September 30, 2025 and September 30, 2024 (unaudited)	6

	Generation Income Properties, Inc. Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and September 30, 2024 (unaudited)	9
	Notes to Unaudited Consolidated Financial Statements	11

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41

Item 4.	Controls and Procedures	41

PART II.	OTHER INFORMATION	43

Item 1.	Legal Proceedings	43

Item 1A.	Risk Factors	43

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43

Item 3.	Defaults Upon Senior Securities	44

Item 4.	Mine Safety Disclosures	44

Item 5.	Other Information	44

Item 6.	Exhibits	45

SIGNATURES		47