Exhibit 99.1

 

Generation Income Properties, Inc.

 

Unaudited Pro Forma Condensed

Consolidated Financial Information

 

The following unaudited pro forma condensed consolidated financial information of Generation Income Properties, Inc. (the “Company”) gives effect to the dispositions of the Company’s properties located in Grand Junction, Colorado and Maitland, Florida (collectively, the “Dispositions”), 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 Dispositions as if they 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 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 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 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;
• repayment of property-level indebtedness secured by the disposed properties; 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 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 here.

Generation Income Properties, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

As of September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Grand Junction, CO

 

 

Maitland, FL

 

 

Pro Forma

 

 

(unaudited)

 

 

Sale

 

 

Sale

 

 

(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

 

 

 

 

(343

)

 

 

 

(259

)

 

 

 

246,686

 

Restricted cash

 

 

34,500

 

 

 

 

-

 

 

 

 

-

 

 

 

 

34,500

 

Deferred rent asset

 

 

382,377

 

 

 

 

-

 

 

 

 

(2,624

)

 

 

 

379,753

 

Prepaid expenses

 

 

362,681

 

 

 

 

(6,411

)

 

 

 

(7,711

)

 

 

 

348,559

 

Accounts receivable

 

 

6,144

 

 

 

 

-

 

 

 

 

16,102

 

 

 

 

22,246

 

Escrow deposits and other assets

 

 

675,298

 

 

 

 

(129,430

)

 

 

 

-

 

 

 

 

545,868

 

Held for sale assets

 

 

10,726,355

 

 

 

 

(4,402,689

)

 

 

 

(4,697,902

)

 

 

 

1,625,764

 

Right-of-use asset, net

 

 

6,008,618

 

 

 

 

-

 

 

 

 

-

 

 

 

 

6,008,618

 

Total Assets

$

 

103,446,020

 

 

$

 

(4,538,873

)

 

$

 

(4,692,394

)

 

$

 

94,214,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Accounts payable

$

 

611,408

 

 

$

 

(311

)

 

$

 

(29,959

)

 

$

 

581,138

 

 Accrued expenses

 

 

1,971,367

 

 

 

 

(144,936

)

 

 

 

(88,820

)

 

 

 

1,737,611

 

 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

 

 

 

 

(2,374,906

)

 

 

 

(2,831,425

)

 

 

 

49,381,453

 

 Derivative liabilities

 

 

534,198

 

 

 

 

-

 

 

 

 

-

 

 

 

 

534,198

 

 Total liabilities

$

 

74,519,974

 

 

$

 

(2,520,153

)

 

$

 

(2,950,205

)

 

$

 

69,049,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

 

32,459,949

 

 

$

 

(2,331,138

)

 

$

 

(3,349,601

)

 

$

 

26,779,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 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

)

 

 

 

312,418

 

 

 

 

1,607,412

 

 

 

 

(31,339,162

)

 Total Generation Income Properties, Inc. Stockholders' Equity

$

 

(3,926,764

)

 

$

 

312,418

 

 

$

 

1,607,412

 

 

$

 

(2,006,934

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Non-Controlling Interest

 

 

392,861

 

 

 

 

-

 

 

 

 

 

 

 

 

392,861

 

 Total equity

$

 

(3,533,903

)

 

$

 

312,418

 

 

$

 

1,607,412

 

 

$

 

(1,614,073

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total Liabilities and Equity

$

 

103,446,020

 

 

$

 

(4,538,873

)

 

$

 

(4,692,394

)

 

$

 

94,214,753

 

 

Generation Income Properties, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

For the Nine Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Grand Junction, CO

 

 

Maitland, FL

 

 

Pro Forma

 

 

(unaudited)

 

 

Sale

 

 

Sale

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

7,248,050

 

 

$

 

(361,318

)

 

$

 

(341,057

)

 

$

 

6,545,675

 

Other income

 

 

35,924

 

 

 

 

-

 

 

 

 

(180

)

 

 

 

35,744

 

Total revenue

$

 

7,283,974

 

 

$

 

(361,318

)

 

$

 

(341,237

)

 

$

 

6,581,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

1,643,464

 

 

$

 

(1,220

)

 

$

 

(2,158

)

 

$

 

1,640,086

 

Building expenses

 

 

1,975,060

 

 

 

 

(80,779

)

 

 

 

(119,501

)

 

 

 

1,774,780

 

Depreciation and amortization

 

 

3,844,454

 

 

 

 

(75,067

)

 

 

 

(354,762

)

 

 

 

3,414,625

 

Interest expense, net

 

 

4,429,454

 

 

 

 

(83,359

)

 

 

 

(108,717

)

 

 

 

4,237,378

 

Compensation Costs

 

 

939,670

 

 

 

 

-

 

 

 

 

-

 

 

 

 

939,670

 

Total expenses

$

 

12,832,102

 

 

$

 

(240,425

)

 

$

 

(585,138

)

 

$

 

12,006,539

 

Operating gain (loss)

 

 

(5,548,128

)

 

 

 

(120,893

)

 

 

 

243,902

 

 

 

 

(5,425,120

)

Other expense

 

 

(286

)

 

 

 

-

 

 

 

 

(186

)

 

 

 

(472

)

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 on sale of property

 

 

(44,782

)

 

 

 

-

 

 

 

 

-

 

 

 

 

(44,782

)

Net income (loss)

$

 

(6,981,835

)

 

$

 

(120,893

)

 

$

 

243,716

 

 

$

 

(6,859,011

)

Less: Net income attributable to non-controlling interests

 

 

2,999,612

 

 

 

 

-

 

 

 

 

-

 

 

 

 

2,999,612

 

Net income (loss) attributable to Generation income Properties, Inc.

$

 

(9,981,447

)

 

$

 

(120,893

)

 

$

 

243,716

 

 

$

 

(9,858,623

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

5,447,772

 

 

 

 

 

 

 

 

 

 

 

 

5,447,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(1.83

)

 

 

 

 

 

 

 

 

 

$

 

(1.81

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

For the Twelve Months Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Grand Junction, CO

 

 

Maitland, FL

 

 

Pro Forma

 

 

(unaudited)

 

 

Sale

 

 

Sale

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

9,510,791

 

 

$

 

(476,394

)

 

$

 

(813,718

)

 

$

 

8,220,679

 

Other income

 

 

251,845

 

 

 

 

-

 

 

 

 

(360

)

 

 

 

251,485

 

Total revenue

$

 

9,762,636

 

 

$

 

(476,394

)

 

$

 

(814,078

)

 

$

 

8,472,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

2,109,271

 

 

$

 

(1,206

)

 

$

 

(1,145

)

 

$

 

2,106,920

 

Building expenses

 

 

2,673,624

 

 

 

 

(170,408

)

 

 

 

(170,881

)

 

 

 

2,332,335

 

Depreciation and amortization

 

 

4,765,203

 

 

 

 

(100,090

)

 

 

 

(472,832

)

 

 

 

4,192,281

 

Interest expense, net

 

 

4,286,546

 

 

 

 

(105,596

)

 

 

 

(251,996

)

 

 

 

3,928,954

 

Compensation Costs

 

 

1,060,336

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,060,336

 

Total expenses

$

 

14,894,980

 

 

$

 

(377,300

)

 

$

 

(896,854

)

 

$

 

13,620,826

 

Operating income (loss)

 

 

(5,132,344

)

 

 

 

(99,094

)

 

 

 

82,776

 

 

 

 

(5,148,661

)

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 income (loss)

$

 

(4,872,888

)

 

$

 

(99,094

)

 

$

 

82,776

 

 

$

 

(4,889,205

)

Less: Net income attributable to non-controlling interests

 

 

3,476,599

 

 

 

 

-

 

 

 

 

-

 

 

 

 

3,476,599

 

Net income (loss) attributable to Generation income Properties, Inc.

$

 

(8,349,487

)

 

$

 

(99,094

)

 

$

 

82,776

 

 

$

 

(8,365,804

)

Less: Preferred stock dividends

 

 

95,000

 

 

 

 

 

 

 

 

 

 

 

 

95,000

 

Net (income) loss attributable to common shareholders

$

 

(8,444,487

)

 

$

 

(99,094

)

 

$

 

82,776

 

 

$

 

(8,460,804

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

 

(1.53

)

 

 

 

 

 

 

 

 

 

$

 

(1.54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties, Inc.

 

Notes to Unaudited Pro Forma Condensed

Consolidated Financial Information

 

 

Note 1 – Basis of Presentation

 

The accompanying unaudited pro forma condensed consolidated financial information of Generation Income Properties, Inc. (the “Company”) reflects the dispositions of the Company’s properties located in Grand Junction, Colorado, and Maitland, Florida (collectively, the “Dispositions”).

 

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025 gives effect to the Dispositions as if they 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 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 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 is presented 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, nor does it purport to project the Company’s financial position or results of operations for any future period.

 

Note 2 – Description of the Dispositions

 

Grand Junction Property

 

On December 5, 2025, the Company sold its retail property located in Grand Junction, Colorado for a gross purchase price of approximately $5.0 million, subject to customary closing adjustments.

 

Westhall Lane Property

 

On December 15, 2025, the Company sold its office property located in Maitland, Florida for a gross purchase price of approximately $6.7 million, subject to customary closing adjustments and credits related to repair items identified during due diligence.

 

Note 3 – Pro Forma Adjustments

 

The unaudited pro forma condensed consolidated financial information includes the following adjustments, which are directly attributable to the Dispositions, factually supportable, and, with respect to the statements of operations, expected to have a continuing impact on the Company’s financial position and results of operations.

 

(a) Removal of Operating Results of Disposed Properties
 

Reflects the elimination of rental revenues, property operating expenses, and other income and expenses associated with the disposed properties for the applicable periods presented, as if the Dispositions had occurred on January 1, 2024.

 

(b) Elimination of Depreciation and Amortization

 

Reflects the elimination of depreciation and amortization related to buildings, improvements, and lease-related intangible assets associated with the disposed properties for the applicable periods presented, as if the Dispositions had occurred on January 1, 2024.

 

(c) Repayment of Property-Level Debt
 

Reflects the repayment of mortgage loans secured by the disposed properties, including the elimination of related interest expense and amortization of deferred financing costs for the periods presented, as if such repayment had occurred on January 1, 2024.

 

(d) Application of Net Disposition Proceeds
 

Reflects the application of net proceeds from the Dispositions, after repayment of property-level indebtedness and transaction costs, to obligations under the Company’s preferred equity investment arrangements, as if such application had occurred on September 30, 2025 for balance sheet purposes. Pursuant to the governing agreements related thereto, distributions from capital transactions are required to be applied to satisfy accrued preferred return and related make-whole obligations prior to any distribution of proceeds to common equity holders.

 

(e) Transaction Costs
 

Transaction costs directly attributable to the Dispositions are reflected in the pro forma balance sheet as if incurred on September 30, 2025. Transaction costs are not reflected in the pro forma statements of operations as such costs are nonrecurring in nature and not expected to have a continuing impact.

 

Note 4 – Assumptions and Limitations

 

The pro forma adjustments are based upon currently available information and certain assumptions that management believes are reasonable under the circumstances. The actual results of the Dispositions may differ materially from the pro forma amounts presented.