Note 3 - Real Estate Assets

Depreciation and amortization expense related to real estate assets was $1,630,252 and $1,822,160 for the six months ended June 30, 2026 and 2025, respectively.

Reacquisition of GIPDC 3707 14th St. LLC: 7-Eleven, Washington, D.C.

On March 3, 2026, the Company transferred one hundred percent (100%) of the limited liability company interests of GIPDC 3707 14th St. LLC (the "DC Entity"), the entity owning the net lease retail property located at 3707-3711 14th Street NW, Washington, D.C. (the "DC Property"), to Brown Family Enterprises, LLC ("Brown"), a related party, pursuant to an Assignment of Limited Liability Company Interests and Satisfaction Agreement (the "Original Agreement"). As a result, the Company deconsolidated the DC Entity effective March 3, 2026 in accordance with ASC 810, Consolidation, and recognized a loss on transfer of LLC interests of $185,069 in satisfaction of debt in its consolidated statement of operations for the three months ended March 31, 2026. As additional consideration, the Company retained a contingent right (the "Participation Right") to receive fifty percent (50%) of net sale proceeds from any future sale of the DC Property in excess of a $600,000 return-of-capital threshold to Brown.

On June 16, 2026, the Company, Generation Income Properties, LP ("GIP LP"), and Brown entered into an Assignment of Limited Liability Company Interests and Termination Agreement (the "Termination Agreement"), pursuant to which (i) Brown assigned, transferred, and conveyed 100% of the limited liability company interests in the DC Entity back to GIP LP, (ii) the Company paid Brown $600,000 in cash, and (iii) the Original Agreement, including the Participation Right and all other rights and obligations thereunder, was terminated in its entirety, with mutual releases exchanged by the parties.

The Company accounted for the reacquisition of the DC Entity as an asset acquisition in accordance with ASC 805-50, Business Combinations - Related Issues, given that the transaction represents the reacquisition of a single tenant-occupied real estate asset rather than a business. The DC Entity's assets and liabilities were recorded at their historical carrying values as of the reacquisition date. Because the carrying value of the net assets reacquired exceeded the $600,000 purchase price, and no gain may be recognized in connection with an asset acquisition, the excess was recorded as a reduction to the carrying basis of the DC Property. Effective June 16, 2026, the Company reconsolidated the DC Entity and the DC Property in its condensed consolidated financial statements and resumed recognition of the DC Property's rental revenue, operating expenses, and depreciation and amortization. The DC Property continues to be encumbered by the mortgage loan and related security documents held by Valley National Bank, which remained the obligation of the DC Entity throughout and was unaffected by the Termination Agreement. The Company continues to serve as property manager of the DC Property.

Sales of Real Estate Assets

2383 Lake Harbin Road, Morrow, Georgia (Dollar Tree)

On March 23, 2026, the Company's indirect wholly owned subsidiary, GIPGA 2383 Lake Harbin Road, LLC, entered into an agreement to sell its Dollar Tree-occupied net lease retail property located in Morrow, Georgia for $1,458,000. The sale closed on April 17, 2026 resulting in net proceeds to the Company of approximately $639,000. The Company recognized a gain on sale of $265,041 in its consolidated statement of operations for the six months ended June 30, 2026.

10002 N. Dale Mabry Highway, Tampa, Florida (Starbucks)

On April 10, 2026, the Company's indirect wholly owned subsidiary, GIPFL 10002 N Dale Mabry, LLC, entered into an agreement to sell its Starbucks-occupied net lease retail property located in Tampa, Florida. The sale closed on May 22, 2026 for a gross purchase price of $2,964,000, resulting in net proceeds to the Company of approximately $1,959,000. The Company recognized a gain on sale of $824,713 in its consolidated statement of operations for the six months ended June 30, 2026.

Assets Held for Sale

991 Nut Tree Road, Vacaville, California (GSA)

On April 30, 2026, the Company's indirect wholly owned subsidiary, GIPCA 991 Nut Tree Road, LLC, entered into a Purchase and Sale Agreement to sell its property located in Vacaville, California (the "Vacaville Property"), net leased to the United States of America acting through the General Services Administration, for a purchase price of $2,475,000. Upon execution of the agreement, the Company determined that all held-for-sale criteria were met and reclassified the Vacaville Property as held for sale effective April 30, 2026, with depreciation and amortization ceasing as of that date. The property's carrying amount did not exceed its estimated fair value less costs to sell; accordingly, no impairment loss was recognized.

Portfolio of Six Dollar General Properties (Maine, Ohio, Pennsylvania, and Texas)

On June 19, 2026, the Company, through indirect wholly owned subsidiaries, entered into an agreement to sell a portfolio of net lease retail properties located in Big Spring, Texas; Mount Gilead, Ohio; East Wilton, Maine; Litchfield, Maine; Thompsontown, Pennsylvania; Castalia, Ohio; and Lakeside, Ohio (collectively, the "DG Properties"), each occupied by Dollar General, for an aggregate purchase price of $7,320,000. On July 22, 2026, the parties entered into a First Amendment to the Purchase and Sale Agreement, which removed the Litchfield, Maine property from the transaction and reduced the aggregate purchase price for the remaining six properties to $6,246,221. Upon execution of the original agreement, the Company determined that all held-for-sale criteria were met with respect to the six DG Properties remaining in the transaction as amended, and reclassified those properties as held for sale effective June 19, 2026, with depreciation and amortization ceasing as of that date. Based on estimated sales proceeds of approximately $5,871,000, net of transaction costs, the Company recognized an impairment loss of $668,649 in its consolidated statement of operations for the six months ended June 30, 2026, representing the excess of the properties' aggregate carrying amount over their estimated fair value less costs to sell.

3134 West 76th Street, Chicago, Illinois (Fresenius)

On June 22, 2026, the Company's indirect wholly owned subsidiary, GIPIL 3134 W 76th Street, LLC, entered into an agreement to sell its Fresenius-occupied net lease medical property located in Chicago, Illinois (the "Fresenius Property") for a purchase price of $2,800,000. Upon execution of the agreement, the Company determined that all held-for-sale criteria were met and reclassified the Fresenius Property as held for sale effective June 22, 2026, with depreciation and amortization ceasing as of that date. The property's carrying amount did not exceed its estimated fair value less costs to sell; accordingly, no impairment loss was recognized.