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 two single-tenant net-leased properties completed on May 29, 2025. The Company, through its wholly owned subsidiary GIPFL 1300 S Dale Mabry, LLC, sold the retail property occupied by Starbucks located at 1300 S Dale Mabry, Tampa, Florida. In addition, the Company, through its subsidiary GIPAL JV 15091 SW Alabama 20, LLC, sold the industrial property occupied, in part, by Auburn University located at 15091 SW Alabama 20, Huntsville, Alabama (collectively, the “Dispositions”).

 

The unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 gives effect to the Dispositions as if they had occurred on March 31, 2025. The unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 2024 and for the three months ended March 31, 2025 give effect to the Dispositions as if they 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 Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

 

The unaudited pro forma condensed consolidated financial information reflects adjustments that are directly attributable to the Dispositions 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 properties;
•
elimination of depreciation and amortization related to the disposed properties; and
•
removal of the related real estate assets and liabilities in the pro forma balance sheet.

 

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 Dispositions 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.

 

Pro Forma Consolidated Balance Sheet

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

 

1300 S Dale Mabry

 

 

 

15091 SW Alabama 20

 

 

Pro Forma

 

 

(unaudited)

 

 

 

Tampa, Florida

 

 

 

Huntsville, Alabama

 

 

(unaudited)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

$

 

25,689,428

 

 

$

 

-

 

 

$

 

-

 

 

$

 

25,689,428

 

Building and site improvements

 

 

72,147,330

 

 

 

 

-

 

 

 

 

-

 

 

 

 

72,147,330

 

Acquired tenant improvements

 

 

2,605,429

 

 

 

 

-

 

 

 

 

-

 

 

 

 

2,605,429

 

Acquired lease intangible assets

 

 

11,416,179

 

 

 

 

-

 

 

 

 

-

 

 

 

 

11,416,179

 

Less: accumulated depreciation and amortization

 

 

(13,374,019

)

 

 

 

-

 

 

 

 

-

 

 

 

 

(13,374,019

)

Net real estate investments

$

 

98,484,347

 

 

$

 

-

 

 

$

 

 

 

$

 

98,484,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

630,557

 

 

 

 

(346,569

)

 

 

 

(43

)

 

 

 

283,945

 

Restricted cash

 

 

34,500

 

 

 

 

-

 

 

 

 

-

 

 

 

 

34,500

 

Deferred rent asset

 

 

373,344

 

 

 

 

(26,164

)

 

 

 

(5,727

)

 

 

 

341,453

 

Prepaid expenses

 

 

111,087

 

 

 

 

(429

)

 

 

 

(9,936

)

 

 

 

100,722

 

Accounts receivable

 

 

176,761

 

 

 

 

(19

)

 

 

 

-

 

 

 

 

176,742

 

Escrow deposits and other assets

 

 

1,017,514

 

 

 

 

(10,660

)

 

 

 

(94,559

)

 

 

 

912,295

 

Held for sale assets

 

 

9,805,718

 

 

 

 

(3,073,718

)

 

 

 

(6,732,000

)

 

 

 

-

 

Right-of-use asset, net

 

 

6,048,033

 

 

 

 

-

 

 

 

 

-

 

 

 

 

6,048,033

 

Total Assets

$

 

116,681,861

 

 

$

 

(3,457,559

)

 

$

 

(6,842,265

)

 

$

 

106,382,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Accounts payable

$

 

641,602

 

 

$

 

-

 

 

$

 

(11,635

)

 

 

 

629,967

 

 Accrued expenses

 

 

1,493,285

 

 

 

 

(29,219

)

 

 

 

(106,647

)

 

 

 

1,357,419

 

 Accrued expense - related party

 

 

798,036

 

 

 

 

-

 

 

 

 

-

 

 

 

 

798,036

 

 Acquired lease intangible liabilities, net

 

 

1,537,734

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,537,734

 

 Deferred rent liability

 

 

335,675

 

 

 

 

-

 

 

 

 

-

 

 

 

 

335,675

 

 Lease liability, net

 

 

6,477,460

 

 

 

 

-

 

 

 

 

-

 

 

 

 

6,477,460

 

 Loan payable - related party

 

 

5,500,000

 

 

 

 

-

 

 

 

 

-

 

 

 

 

5,500,000

 

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

 

 

64,614,931

 

 

 

 

(2,470,432

)

 

 

 

(6,340,421

)

 

 

 

55,804,078

 

 Derivative liabilities

 

 

423,753

 

 

 

 

-

 

 

 

 

-

 

 

 

 

423,753

 

 Total liabilities

$

 

81,822,476

 

 

$

 

(2,499,651

)

 

$

 

(6,458,703

)

 

$

 

72,864,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

 

31,402,450

 

 

$

 

-

 

 

 

 

-

 

 

$

 

31,402,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 100,000,000 shares authorized; 5,443,188 shares issued and outstanding at March 31, 2025 and December 31, 2024.

$

 

54,431

 

 

$

 

-

 

 

$

 

-

 

 

$

 

54,431

 

 Additional paid-in capital

 

 

29,019,047

 

 

 

 

-

 

 

 

 

(115,611

)

 

 

 

28,903,436

 

 Accumulated deficit

 

 

(26,009,404

)

 

 

 

(957,908

)

 

 

 

(267,951

)

 

 

 

(27,235,263

)

 Total Generation Income Properties, Inc. Stockholders' Equity

$

 

3,064,074

 

 

$

 

(957,908

)

 

$

 

(383,562

)

 

$

 

1,722,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Non-Controlling Interest

 

 

392,861

 

 

 

 

-

 

 

 

 

-

 

 

 

 

392,861

 

 Total equity

$

 

3,456,935

 

 

$

 

(957,908

)

 

$

 

(383,562

)

 

$

 

2,115,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total Liabilities and Equity

$

 

116,681,861

 

 

$

 

(3,457,559

)

 

$

 

(6,842,265

)

 

$

 

106,382,037

 

 

Generation Income Properties, Inc.

 

Pro Forma Consolidated Statement of Operations

 

For the Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

 

1300 S Dale Mabry

 

 

 

15091 SW Alabama 20

 

 

Pro Forma

 

 

(unaudited)

 

 

 

Tampa, Florida

 

 

 

Huntsville, Alabama

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

2,371,297

 

 

$

 

(57,169

)

 

$

 

(98,109

)

 

$

 

2,216,019

 

Other income

 

 

10,298

 

 

 

 

(47

)

 

 

 

-

 

 

 

 

10,251

 

Total revenue

$

 

2,381,595

 

 

$

 

(155,325

)

 

$

 

(98,109

)

 

$

 

2,128,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

505,378

 

 

$

 

(150

)

 

$

 

(150

)

 

$

 

505,078

 

Building expenses

 

 

636,225

 

 

 

 

(6,740

)

 

 

 

(40,445

)

 

 

 

589,040

 

Depreciation and amortization

 

 

1,292,761

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,292,761

 

Interest expense, net

 

 

1,182,267

 

 

 

 

(9,796

)

 

 

 

(25,158

)

 

 

 

1,147,313

 

Compensation Costs

 

 

240,745

 

 

 

 

-

 

 

 

 

-

 

 

 

 

240,745

 

Total expenses

$

 

3,857,376

 

 

$

 

(16,686

)

 

$

 

(65,753

)

 

$

 

3,774,937

 

Operating (loss) income

 

 

(1,475,781

)

 

 

 

(40,530

)

 

 

 

(32,356

)

 

 

 

(1,548,667

)

Other expense

 

 

(286

)

 

 

 

2

 

 

 

 

-

 

 

 

 

(284

)

(Loss) gain on derivative valuation

 

 

(293,499

)

 

 

 

-

 

 

 

 

-

 

 

 

 

(293,499

)

Dead deal expense

 

 

(27,894

)

 

 

 

-

 

 

 

 

(21,215

)

 

 

 

(49,109

)

Net loss

$

 

(1,797,460

)

 

$

 

(40,528

)

 

$

 

(53,571

)

 

$

 

(1,891,559

)

Less: Net income attributable to non-controlling interests

 

 

934,399

 

 

 

 

-

 

 

 

 

-

 

 

 

 

934,399

 

Net loss attributable to Generation income Properties, Inc.

$

 

(2,731,859

)

 

$

 

(40,528

)

 

$

 

(53,571

)

 

$

 

(2,825,958

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

 

(0.50

)

 

 

 

 

 

 

 

 

 

$

 

(0.52

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties, Inc.

 

Pro Forma Consolidated Statement of Operations

 

For the Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

 

1300 S Dale Mabry

 

 

 

15091 SW Alabama 20

 

 

Pro Forma

 

 

(unaudited)

 

 

 

Tampa, Florida

 

 

 

Huntsville, Alabama

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

9,510,791

 

 

$

 

(238,743

)

 

$

 

(228,006

)

 

$

 

9,044,042

 

Other income

 

 

251,845

 

 

 

 

(283

)

 

 

 

(148,935

)

 

 

 

102,627

 

Total revenue

$

 

9,762,636

 

 

$

 

(239,026

)

 

$

 

(376,941

)

 

$

 

9,146,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

2,109,271

 

 

$

 

(6,328

)

 

$

 

(8,280

)

 

$

 

2,094,663

 

Building expenses

 

 

2,673,624

 

 

 

 

(49,596

)

 

 

 

(131,065

)

 

 

 

2,492,963

 

Depreciation and amortization

 

 

4,765,203

 

 

 

 

(69,359

)

 

 

 

(233,834

)

 

 

 

4,462,010

 

Interest expense, net

 

 

4,286,546

 

 

 

 

(118,753

)

 

 

 

(304,847

)

 

 

 

3,862,946

 

Compensation Costs

 

 

1,060,336

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,060,336

 

Total expenses

$

 

14,894,980

 

 

$

 

(244,036

)

 

$

 

(678,026

)

 

$

 

13,972,918

 

Operating (loss) income

 

 

(5,132,344

)

 

 

 

5,010

 

 

 

 

301,085

 

 

 

 

(4,826,249

)

(Loss) gain on derivative valuation

 

 

372,573

 

 

 

 

-

 

 

 

 

-

 

 

 

 

372,573

 

Dead deal expense

 

 

(35,873

)

 

 

 

-

 

 

 

 

-

 

 

 

 

(35,873

)

Loss on held for sale asset valuation

 

 

(77,244

)

 

 

 

-

 

 

 

 

-

 

 

 

 

(77,244

)

Net loss

$

 

(4,872,888

)

 

$

 

5,010

 

 

$

 

301,085

 

 

$

 

(4,566,793

)

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

)

 

$

 

5,010

 

 

$

 

301,085

 

 

$

 

(8,043,392

)

Less: Preferred stock dividends

 

 

95,000

 

 

 

 

-

 

 

 

 

-

 

 

 

 

95,000

 

Net loss attributable to common shareholders

$

 

(8,444,487

)

 

$

 

5,010

 

 

$

 

301,085

 

 

$

 

(8,138,392

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

 

 

 

 

 

 

$

 

(1.50

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 two single-tenant net-leased properties completed on May 29, 2025 (the “Dispositions”), as described in the accompanying Overview of Unaudited Pro Forma Condensed Consolidated Financial Information.

 

The unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 is presented as if the Dispositions occurred on that date. The unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 2024 and for the three months ended March 31, 2025 are presented as if the Dispositions 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

 

Dispositions 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 are directly attributable to the Dispositions and are factually supportable.

 

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

 

Represents the removal of the historical carrying values of the disposed properties, including land, buildings 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 disposed properties that was repaid in connection with the Dispositions, including the elimination of any unamortized deferred financing costs associated with the extinguished debt.

 

(c) Removal of Historical Operating Results

 

Represents the elimination of rental revenues, property operating expenses, and depreciation and amortization associated with the disposed properties for the periods presented, as the pro forma financial statements assume the Dispositions occurred on January 1, 2024.

 

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

 

Represents the elimination of interest expense associated with the mortgage debt secured by the disposed properties for the periods presented, as such debt was repaid in connection with the Dispositions.