Exhibit 99.1

Generation Income Properties Inc.

Overview of Unaudited Pro Forma Consolidated Financial Statements

The following unaudited pro forma condensed consolidated financial information of Generation Income Properties, Inc. (the “Company”) gives effect to the disposition of the Company’s property located at 702 Tillman Place in Plant City, Florida (the “Plant City Property”), as described in the Company’s Current Report on Form 8-K to which this Exhibit 99.1 is attached.

 

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025 gives effect to the disposition as if it had occurred on September 30, 2025. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 give effect to the disposition as if it had occurred on January 1, 2024.

 

The unaudited pro forma condensed consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X and is based on the Company’s historical consolidated financial statements and related notes included in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025 and the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

 

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

 

•
removal of revenues and expenses associated with the disposed property;
•
elimination of depreciation and amortization related to the disposed property;
•
repayment of property-level indebtedness secured by the disposed property; and
•
application of net disposition proceeds to obligations under the Company’s preferred equity arrangements, as required by the governing agreements related thereto.

 

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

 

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

Generation Income Properties, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

As of September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma

 

 

 

Historical

 

 

Adjustments

Pro Forma

 

 

(unaudited)

 

 

(unaudited)

(unaudited)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate

 

 

 

 

 

 

 

 

 

 

 

Land

$

 

20,055,577

 

 

$

 

-

 

 

$

 

20,055,577

 

Building and site improvements

 

 

67,133,859

 

 

 

 

-

 

 

 

 

67,133,859

 

Acquired tenant improvements

 

 

2,434,465

 

 

 

 

-

 

 

 

 

2,434,465

 

Acquired lease intangible assets

 

 

9,444,402

 

 

 

 

-

 

 

 

 

9,444,402

 

Less: accumulated depreciation and amortization

 

 

(14,065,544

)

 

 

 

-

 

 

 

 

(14,065,544

)

Net real estate investments

$

 

85,002,759

 

 

$

 

-

 

 

$

 

85,002,759

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

247,288

 

 

 

 

(235

)

 

 

 

247,053

 

Restricted cash

 

 

34,500

 

 

 

 

-

 

 

 

 

34,500

 

Deferred rent asset

 

 

382,377

 

 

 

 

-

 

 

 

 

382,377

 

Prepaid expenses

 

 

362,681

 

 

 

 

(17,894

)

 

 

 

344,787

 

Accounts receivable

 

 

6,144

 

 

 

 

-

 

 

 

 

6,144

 

Escrow deposits and other assets

 

 

675,298

 

 

 

 

(2,205

)

 

 

 

673,093

 

Held for sale assets

 

 

10,726,355

 

 

 

 

(1,625,764

)

 

 

 

9,100,591

 

Right-of-use asset, net

 

 

6,008,618

 

 

 

 

-

 

 

 

 

6,008,618

 

Total Assets

$

 

103,446,020

 

 

$

 

(1,646,099

)

 

$

 

101,799,921

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 Accounts payable

$

 

611,408

 

 

$

 

(53,590

)

 

 

 

557,818

 

 Accrued expenses

 

 

1,971,367

 

 

 

 

(239,397

)

 

 

 

1,731,970

 

 Accrued expense - related party

 

 

949,026

 

 

 

 

-

 

 

 

 

949,026

 

 Acquired lease intangible liabilities, net

 

 

1,445,993

 

 

 

 

-

 

 

 

 

1,445,993

 

 Insurance payable

 

 

128,838

 

 

 

 

-

 

 

 

 

128,838

 

 Deferred rent liability

 

 

173,658

 

 

 

 

-

 

 

 

 

173,658

 

 Lease liability, net

 

 

6,503,013

 

 

 

 

-

 

 

 

 

6,503,013

 

 Loan payable - related party

 

 

7,614,689

 

 

 

 

-

 

 

 

 

7,614,689

 

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

 

 

54,587,784

 

 

 

 

(856,622

)

 

 

 

53,731,162

 

 Derivative liabilities

 

 

534,198

 

 

 

 

-

 

 

 

 

534,198

 

 Total liabilities

$

 

74,519,974

 

 

$

 

(1,149,609

)

 

$

 

73,370,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

 

32,459,949

 

 

$

 

(800,836

)

 

$

 

31,659,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 100,000,000 shares authorized; 5,443,188 shares issued and outstanding at September 31, 2025.

$

 

54,431

 

 

$

 

-

 

 

$

 

54,431

 

 Additional paid-in capital

 

 

29,277,797

 

 

 

 

-

 

 

 

 

29,277,797

 

 Accumulated deficit

 

 

(33,258,992

)

 

 

 

304,346

 

 

 

 

(32,954,646

)

 Total Generation Income Properties, Inc. Stockholders' Equity

$

 

(3,926,764

)

 

$

 

304,346

 

 

$

 

(3,622,418

)

 

 

 

 

 

 

 

 

 

 

 

 

 Non-Controlling Interest

 

 

392,861

 

 

 

 

-

 

 

 

 

392,861

 

 Total equity

$

 

(3,533,903

)

 

$

 

304,346

 

 

$

 

(3,229,557

)

 

 

 

 

 

 

 

 

 

 

 

 

 Total Liabilities and Equity

$

 

103,446,020

 

 

$

 

(1,646,099

)

 

$

 

101,799,921

 

 

 

Generation Income Properties, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

For the Nine Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma

 

 

 

 

Historical

 

 

Adjustments

Pro Forma

 

 

(unaudited)

 

 

(unaudited)

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

7,248,050

 

 

$

 

(676,749

)

 

$

 

6,571,301

 

Other income

 

 

35,924

 

 

 

 

(180

)

 

 

 

35,744

 

Total revenue

$

 

7,283,974

 

 

$

 

(676,929

)

 

$

 

6,607,045

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

1,643,464

 

 

$

 

(4,902

)

 

$

 

1,638,562

 

Building expenses

 

 

1,975,060

 

 

 

 

(207,061

)

 

 

 

1,767,999

 

Depreciation and amortization

 

 

3,844,454

 

 

 

 

(441,785

)

 

 

 

3,402,669

 

Interest expense, net

 

 

4,429,454

 

 

 

 

(300,263

)

 

 

 

4,129,191

 

Compensation Costs

 

 

939,670

 

 

 

 

-

 

 

 

 

939,670

 

Total expenses

$

 

12,832,102

 

 

$

 

(954,011

)

 

$

 

11,878,091

 

Operating loss

 

 

(5,548,128

)

 

 

 

(277,082

)

 

 

 

(5,825,210

)

Other expense

 

 

(286

)

 

 

 

-

 

 

 

 

(286

)

Loss on derivative valuation

 

 

(427,081

)

 

 

 

-

 

 

 

 

(427,081

)

Dead deal expense

 

 

(35,160

)

 

 

 

-

 

 

 

 

(35,160

)

Loss on extinguishment of debt

 

 

(926,398

)

 

 

 

-

 

 

 

 

(926,398

)

(Loss) gain on sale of property

 

 

(44,782

)

 

 

 

41,171

 

 

 

 

(3,611

)

Net loss

$

 

(6,981,835

)

 

$

 

(235,911

)

 

$

 

(7,217,746

)

Less: Net income attributable to non-controlling interests

 

 

2,999,612

 

 

 

 

-

 

 

 

 

2,999,612

 

Net loss attributable to Generation income Properties, Inc.

$

 

(9,981,447

)

 

$

 

(235,911

)

 

$

 

(10,217,358

)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

5,443,188

 

 

 

 

 

 

 

 

5,443,188

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(1.83

)

 

 

 

 

 

$

 

(1.88

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

For the Twelve Months Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma

 

 

 

 

Historical

 

 

Adjustments

Pro Forma

 

 

(unaudited)

 

 

(unaudited)

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

9,510,791

 

 

$

 

(676,749

)

 

$

 

8,834,042

 

Other income

 

 

251,845

 

 

 

 

(180

)

 

 

 

251,665

 

Total revenue

$

 

9,762,636

 

 

$

 

(676,929

)

 

$

 

9,085,707

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

2,109,271

 

 

$

 

(4,902

)

 

$

 

2,104,369

 

Building expenses

 

 

2,673,624

 

 

 

 

(229,036

)

 

 

 

2,444,588

 

Depreciation and amortization

 

 

4,765,203

 

 

 

 

(441,785

)

 

 

 

4,323,418

 

Interest expense, net

 

 

4,286,546

 

 

 

 

(300,263

)

 

 

 

3,986,283

 

Compensation Costs

 

 

1,060,336

 

 

 

 

-

 

 

 

 

1,060,336

 

Total expenses

$

 

14,894,980

 

 

$

 

(975,985

)

 

$

 

13,918,995

 

Operating loss

 

 

(5,132,344

)

 

 

 

(299,057

)

 

 

 

(5,431,401

)

Other expense

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Gain on derivative valuation

 

 

372,573

 

 

 

 

-

 

 

 

 

372,573

 

Dead deal expense

 

 

(35,873

)

 

 

 

-

 

 

 

 

(35,873

)

Loss on held for sale valuation

 

 

(77,244

)

 

 

 

-

 

 

 

 

(77,244

)

Net loss

$

 

(4,872,888

)

 

$

 

(299,057

)

 

$

 

(5,171,945

)

Less: Net income attributable to non-controlling interests

 

 

3,476,599

 

 

 

 

-

 

 

 

 

3,476,599

 

Net loss attributable to Generation income Properties, Inc.

$

 

(8,349,487

)

 

$

 

(299,057

)

 

$

 

(8,648,544

)

Less: Preferred stock dividends

 

 

95,000

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

$

 

(8,444,487

)

 

$

 

(299,057

)

 

$

 

(8,648,544

)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

5,443,188

 

 

 

 

 

 

 

 

5,443,188

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(1.55

)

 

 

 

 

 

$

 

(1.59

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties Inc.

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

 

Note 1 – Basis of Presentation

 

The unaudited pro forma condensed consolidated financial statements are presented in accordance with Article 11 of Regulation S-X and give effect to the disposition of the Plant City Property as described in the accompanying Overview of Unaudited Pro Forma Condensed Consolidated Financial Statements.

 

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025 is presented as if the disposition occurred on that date. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 are presented as if the disposition occurred on January 1, 2024.

 

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

 

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

 

Note 2 – Pro Forma Adjustments

 

The following pro forma adjustments reflect the disposition of the Plant City Property.

 

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

 

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

 

(b) Removal of Property-Level Indebtedness

 

Represents the removal of mortgage debt secured by the Plant City Property that was repaid in connection with the disposition, including the elimination of any unamortized deferred financing costs associated with the extinguished debt.

 

(c) Recognition of Estimated Net Cash Proceeds

 

Represents the recognition of estimated net cash proceeds received from the disposition of the Plant City Property after repayment of property-level indebtedness, payment of transaction costs, and customary closing adjustments.

 

(d) Removal of Historical Operating Results

 

Represents the elimination of rental revenues, property operating expenses, and depreciation and amortization associated with the Plant City Property for the nine months ended September 30, 2025 and for the year ended December 31, 2024, as the pro forma financial statements assume the disposition occurred on January 1, 2024.

 

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

 

Represents the elimination of interest expense associated with the mortgage debt secured by the Plant City Property for the nine months ended September 30, 2025, as such debt was repaid in connection with the disposition.