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 following transactions (collectively, the “Transactions”):

•
the reacquisition of GIPDC 3707 14th St. LLC (the “DC Entity”), the entity owning the net lease retail property occupied by 7-Eleven and located at 3707-3711 14th Street, N.W., Washington, D.C. (the “DC Property”), completed on June 16, 2026 (the “Reacquisition”);
•
the disposition of a portfolio of six Dollar General-occupied net lease retail properties located in Big Spring, Texas; Mount Gilead, Ohio; East Wilton, Maine; Thompsontown, Pennsylvania; Castalia, Ohio; and Lakeside, Ohio, completed on August 21, 2026 (the “Dollar General Disposition”);
•
the disposition of a Fresenius-occupied single-tenant net-leased medical property located at 3134 West 76th Street, Chicago, Illinois, completed on August 21, 2026 (the “Fresenius Disposition”); and
•
the disposition of a single-tenant net-leased property occupied by the United States of America, located at 991 Nut Tree Road, Vacaville, California, completed on July 15, 2026 (the “Vacaville Disposition”).

With respect to the Reacquisition, the Company had previously transferred 100% of the limited liability company interests in the DC Entity to Brown Family Enterprises, LLC (“Brown”), a related party, effective March 3, 2026, resulting in deconsolidation of the DC Entity as of that date. Pursuant to an Assignment of Limited Liability Company Interests and Termination Agreement, dated as of June 16, 2026, by and among Brown, Generation Income Properties, LP, and the Company, Brown assigned, transferred, and conveyed 100% of the limited liability company interests in the DC Entity back to Generation Income Properties, LP, and the Company resumed consolidating the DC Entity and the DC Property effective June 16, 2026.

The unaudited pro forma condensed consolidated balance sheet as of June 30, 2026, gives effect to the Dollar General Disposition, the Fresenius Disposition, and the Vacaville Disposition as if each had occurred on that date. No adjustment is presented for the Reacquisition, as it is already reflected in the Company's historical condensed consolidated balance sheet as of June 30, 2026, included in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

The unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 2025, and the six months ended June 30, 2026, give effect to each of the Transactions as if it had occurred at the beginning of the respective period presented. No adjustment is required with respect to the Reacquisition for the year ended December 31, 2025, as the DC Entity was consolidated by the Company for the entirety of that period.

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, 2025, and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

The unaudited pro forma condensed consolidated financial information reflects adjustments that are directly attributable to the Transactions and factually supportable, and is based on assumptions management believes are reasonable. The pro forma adjustments include, among other things:

•
removal of net real estate assets and related property-level indebtedness associated with the Dollar General Disposition, the Fresenius Disposition, and the Vacaville Disposition, except that no adjustment is presented for indebtedness with respect to the Vacaville Property, as the portion of cross-collateralized mortgage debt allocated to that property was reallocated among the Company's other properties securing such debt rather than repaid;
•
removal of revenues, operating expenses, depreciation and amortization, and, where applicable, interest expense associated with the Dollar General Properties, the Fresenius Property, and the Vacaville Property for the periods presented;
•
inclusion of revenues, operating expenses, depreciation and amortization, and interest expense associated with the DC Property for the period from March 3, 2026, through June 16, 2026, during which the DC Entity was deconsolidated; and
•
elimination of the loss on transfer of LLC interests recognized by the Company in connection with the March 3, 2026, transfer of the DC Entity.

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 Transactions 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

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GSA MHSA

 

 

Fresenius

 

 

Dollar General

 

 

 

 

 

Historical

 

 

Vacaville, CA

 

 

Chicago, IL

 

 

6 Property Portfolio

 

 

Pro Forma

 

 

(unaudited)

 

 

(a)

 

 

(a), (b)

 

 

(a), (b)

 

 

(unaudited)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

$

 

14,939,843

 

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

 

$

 

14,939,843

 

Building and site improvements

 

 

56,268,441

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

56,268,441

 

Acquired tenant improvements

 

 

1,682,482

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,682,482

 

Acquired lease intangible assets

 

 

7,538,241

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

7,538,241

 

Less: accumulated depreciation and amortization

 

 

(13,606,012

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(13,606,012

)

Net real estate investments

$

 

66,822,995

 

 

 $

 

-

 

 

 $

 

-

 

 

 $

 

-

 

 

 $

 

66,822,995

 

Cash and cash equivalents

 

 

2,029,661

 

 

 

 

11,874

 

 

 

 

(21,842

)

 

 

 

(2,034

)

 

 

 

2,017,659

 

Restricted cash

 

 

34,500

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

34,500

 

Deferred rent asset

 

 

365,368

 

 

 

 

-

 

 

 

 

(12,437

)

 

 

 

-

 

 

 

 

352,931

 

Prepaid expenses

 

 

504,883

 

 

 

 

(21,609

)

 

 

 

(23,719

)

 

 

 

(8,533

)

 

 

 

451,022

 

Accounts receivable

 

 

289,254

 

 

 

 

(29,195

)

 

 

 

-

 

 

 

 

(154,698

)

 

 

 

105,361

 

Escrow deposits and other assets

 

 

519,919

 

 

 

 

(29,111

)

 

 

 

(37,103

)

 

 

 

(44,654

)

 

 

 

409,051

 

Held for sale assets

 

 

10,432,121

 

 

 

 

(2,027,515

)

 

 

 

(2,533,159

)

 

 

 

(5,871,447

)

 

 

 

-

 

Right-of-use asset, net

 

 

5,950,608

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

5,950,608

 

Total Assets

$

 

86,949,309

 

 

 $

 

(2,095,556

)

 

 $

 

(2,628,260

)

 

 $

 

(6,081,366

)

 

 $

 

76,144,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Accounts payable

$

 

1,451,780

 

 

$

 

(8,563

)

 

$

 

(32,083

)

 

$

 

(179,017

)

 

 

 

1,232,117

 

 Accrued expenses

 

 

1,263,147

 

 

 

 

(22,531

)

 

 

 

(16,786

)

 

 

 

(107,785

)

 

 

 

1,116,045

 

 Accrued expense - related party

 

 

1,138,757

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,138,757

 

 Acquired lease intangible liabilities, net

 

 

879,545

 

 

 

 

-

 

 

 

 

(1,375

)

 

 

 

(429,010

)

 

 

 

449,160

 

 Insurance payable

 

 

278,078

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

278,078

 

 Deferred rent liability

 

 

150,235

 

 

 

 

-

 

 

 

 

(21,461

)

 

 

 

-

 

 

 

 

128,774

 

 Lease liability, net

 

 

6,542,455

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

6,542,455

 

 Loan payable - related party

 

 

6,148,651

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

6,148,651

 

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

 

 

46,781,677

 

 

 

 

(1,226,874

)

 

 

 

(1,643,346

)

 

 

 

(3,390,274

)

 

 

 

40,521,183

 

 Derivative liabilities

 

 

92,893

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

92,893

 

 Total liabilities

$

 

64,727,218

 

 

$

 

(1,257,968

)

 

$

 

(1,715,051

)

 

$

 

(4,106,086

)

 

$

 

57,648,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

 

24,127,496

 

 

$

 

(2,356,757

)

 

$

 

(1,365,219

)

 

$

 

(2,684,637

)

 

$

 

17,720,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 100,000,000 shares authorized; 1,165,085 and 544,818 shares issued; 1,030,402 and 544,818 shares outstanding at June 30, 2026 and December 31, 2025, respectively.

$

 

10,304

 

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

 

$

 

10,304

 

 Additional paid-in capital

 

 

34,521,913

 

 

 

 

-

 

 

 

 

(10,000

)

 

 

 

-

 

 

 

 

34,511,913

 

 Accumulated deficit

 

 

(36,830,483

)

 

 

 

1,519,169

 

 

 

 

462,010

 

 

 

 

709,357

 

 

 

 

(34,139,947

)

 Total Generation Income Properties, Inc. Stockholders' Equity

$

 

(2,298,266

)

 

$

 

1,519,169

 

 

$

 

452,010

 

 

$

 

709,357

 

 

$

 

382,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Non-Controlling Interest

 

 

392,861

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

392,861

 

 Total equity

$

 

(1,905,405

)

 

$

 

1,519,169

 

 

$

 

452,010

 

 

$

 

709,357

 

 

$

 

775,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total Liabilities and Equity

$

 

86,949,309

 

 

$

 

(2,095,556

)

 

$

 

(2,628,260

)

 

$

 

(6,081,366

)

 

$

 

76,144,127

 

 

Generation Income Properties, Inc.

 

Pro Forma Consolidated Statement of Operations

 

For the Six Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7-Eleven

 

 

GSA MHSA

 

 

Fresenius

 

 

Dollar General

 

 

 

 

 

 

Historical

 

 

Washington, DC

 

 

Vacaville, CA

 

 

Chicago, IL

 

 

6 Property Portfolio

 

 

Pro Forma

 

 

(unaudited)

 

 

(e), (f), (g)

 

 

(c)

 

 

(c), (d)

 

 

(c), (d)

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

4,279,653

 

 

$

 

25,000

 

 

$

 

(194,755

)

 

$

 

(130,818

)

 

$

 

(321,137

)

 

$

 

3,657,943

 

Other income

 

 

15,205

 

 

 

 

5,730

 

 

 

 

-

 

 

 

 

(2,557

)

 

 

 

-

 

 

 

 

18,378

 

Total revenue

$

 

4,294,858

 

 

$

 

30,730

 

 

$

 

(194,755

)

 

$

 

(133,375

)

 

$

 

(321,137

)

 

$

 

3,676,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

1,066,223

 

 

$

 

125

 

 

$

 

(1,121

)

 

$

 

(813

)

 

$

 

(5,876

)

 

$

 

1,058,538

 

Building expenses

 

 

1,154,609

 

 

 

 

6,877

 

 

 

 

(86,494

)

 

 

 

(4,809

)

 

 

 

(62,710

)

 

 

 

1,007,473

 

Depreciation and amortization

 

 

2,192,718

 

 

 

 

14,813

 

 

 

 

(73,514

)

 

 

 

(89,191

)

 

 

 

(181,379

)

 

 

 

1,863,447

 

Interest expense, net

 

 

2,001,216

 

 

 

 

17,676

 

 

 

 

(55,019

)

 

 

 

(35,120

)

 

 

 

(152,036

)

 

 

 

1,776,717

 

Compensation Costs

 

 

690,835

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

690,835

 

Total expenses

$

 

7,105,601

 

 

$

 

39,491

 

 

$

 

(216,148

)

 

$

 

(129,933

)

 

$

 

(402,001

)

 

$

 

6,397,010

 

Operating (loss) income

 

 

(2,810,743

)

 

 

 

(8,761

)

 

 

 

21,393

 

 

 

 

(3,442

)

 

 

 

80,864

 

 

 

 

(2,720,689

)

Other expense

 

 

(237

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(237

)

Gain (loss) on derivative valuation

 

 

351,803

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

351,803

 

Loss on held for sale asset valuation

 

 

(668,649

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(668,649

)

Loss on extinguishment of debt

 

 

(26,634

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(26,634

)

Gain (loss) on sale of property

 

 

1,089,754

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,089,754

 

Loss on transfer of LLC interests in satisfaction of debt

 

 

(185,069

)

 

 

 

185,069

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Net (loss) income

$

 

(2,249,775

)

 

$

 

176,308

 

 

$

 

21,393

 

 

$

 

(3,442

)

 

$

 

80,864

 

 

$

 

(1,974,652

)

Less: Net income attributable to non-controlling interests

 

 

962,259

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

962,259

 

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

$

 

(3,212,034

)

 

$

 

176,308

 

 

$

 

21,393

 

 

$

 

(3,442

)

 

$

 

80,864

 

 

$

 

(2,936,911

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

984,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

984,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(3.26

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

(2.98

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties, Inc.

 

Pro Forma Consolidated Statement of Operations

 

For the Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7-Eleven

 

 

GSA MHSA

 

 

Fresenius

 

 

Dollar General

 

 

 

 

 

 

Historical

 

 

Washington, DC

 

 

Vacaville, CA

 

 

Chicago, IL

 

 

6 Property Portfolio

 

 

Pro Forma

 

 

(unaudited)

 

 

(e), (f), (g)

 

 

(c)

 

 

(c), (d)

 

 

(c), (d)

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

4,793,202

 

 

$

 

-

 

 

$

 

(84,039

)

 

$

 

(124,051

)

 

$

 

(320,865

)

 

$

 

4,264,247

 

Other income

 

 

20,663

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(2,557

)

 

 

 

-

 

 

 

 

18,106

 

Total revenue

$

 

4,813,865

 

 

$

 

 

 

$

 

(84,039

)

 

$

 

(126,608

)

 

$

 

(320,865

)

 

$

 

4,282,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

1,058,271

 

 

$

 

-

 

 

$

 

(793

)

 

$

 

(684

)

 

$

 

(5,620

)

 

$

 

1,051,174

 

Building expenses

 

 

1,339,343

 

 

 

 

-

 

 

 

 

(100,809

)

 

 

 

(17,333

)

 

 

 

(56,879

)

 

 

 

1,164,322

 

Depreciation and amortization

 

 

2,557,342

 

 

 

 

-

 

 

 

 

(110,271

)

 

 

 

(89,191

)

 

 

 

(181,379

)

 

 

 

2,176,501

 

Interest expense, net

 

 

3,267,018

 

 

 

 

-

 

 

 

 

(54,101

)

 

 

 

(38,123

)

 

 

 

(149,499

)

 

 

 

3,025,295

 

Compensation Costs

 

 

440,687

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

440,687

 

Total expenses

$

 

8,662,661

 

 

$

 

-

 

 

$

 

(265,974

)

 

$

 

(145,331

)

 

$

 

(393,377

)

 

$

 

7,857,979

 

Operating (loss) income

 

 

(3,848,796

)

 

 

 

-

 

 

 

 

181,935

 

 

 

 

18,723

 

 

 

 

72,512

 

 

 

 

(3,575,626

)

Other expense

 

 

(286

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(286

)

Gain on derivative valuation

 

 

(415,825

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(415,825

)

Dead deal expense

 

 

(27,894

)

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27,894

)

Loss on held for sale asset valuation

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Loss on extinguishment of debt

 

 

(926,398

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(926,398

)

Gain (loss) on sale of property

 

 

(44,782

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(44,782

)

Net (loss) income

$

 

(5,263,981

)

 

$

 

-

 

 

$

 

181,935

 

 

$

 

18,723

 

 

$

 

72,512

 

 

$

 

(4,990,811

)

Less: Net income attributable to non-controlling interests

 

 

1,890,506

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,890,506

 

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

$

 

(7,154,487

)

 

$

 

-

 

 

$

 

181,935

 

 

$

 

18,723

 

 

$

 

72,512

 

 

$

 

(6,881,317

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

544,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

544,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(13.14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

(12.64

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation Income Properties, Inc.

 

Pro Forma Consolidated Statement of Operations

 

For the Year Ended December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

7-Eleven

 

 

GSA MHSA

 

 

Fresenius

 

 

Dollar General

 

 

Pro Forma

 

 

(unaudited)

 

 

Washington, DC

 

 

Vacaville, CA

 

 

Chicago, IL

 

 

6 Property Portfolio

 

 

(unaudited)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

$

 

9,698,991

 

 

$

 

-

 

 

$

 

(243,536

)

 

$

 

(247,572

)

 

$

 

(646,420

)

 

$

 

8,561,463

 

Other income

 

 

40,951

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

40,951

 

Total revenue

$

 

9,739,942

 

 

$

 

-

 

 

$

 

(243,536

)

 

$

 

(247,572

)

 

$

 

(646,420

)

 

$

 

8,602,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

$

 

2,191,051

 

 

$

 

-

 

 

$

 

(5,255

)

 

$

 

(1,581

)

 

$

 

(10,708

)

 

$

 

2,173,507

 

Building expenses

 

 

2,529,527

 

 

 

 

-

 

 

 

 

(216,148

)

 

 

 

(22,816

)

 

 

 

(124,709

)

 

 

 

2,165,854

 

Depreciation and amortization

 

 

4,995,717

 

 

 

 

-

 

 

 

 

(220,541

)

 

 

 

(178,381

)

 

 

 

(362,758

)

 

 

 

4,234,037

 

Interest expense, net

 

 

5,771,280

 

 

 

 

-

 

 

 

 

(108,608

)

 

 

 

(75,345

)

 

 

 

(300,118

)

 

 

 

5,287,209

 

Compensation Costs

 

 

1,240,282

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,240,282

 

Total expenses

$

 

16,727,857

 

 

$

 

-

 

 

$

 

(550,552

)

 

$

 

(278,123

)

 

$

 

(798,293

)

 

$

 

15,100,889

 

Operating (loss) income

 

 

(6,987,915

)

 

 

 

-

 

 

 

 

307,016

 

 

 

 

30,551

 

 

 

 

151,873

 

 

 

 

(6,498,475

)

Other expense

 

 

(287

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(287

)

Loss on derivative valuation

 

 

(335,344

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(335,344

)

Dead deal expense

 

 

(75,502

)

 

 

 

-

 

 

 

 

-

 

 

 

 

47,608

 

 

 

 

-

 

 

 

 

(27,894

)

Loss on extinguishment of debt

 

 

(926,398

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(926,398

)

Gain on sale of property

 

 

1,936,446

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,936,446

 

Net (loss) income

$

 

(6,389,000

)

 

$

 

-

 

 

$

 

307,016

 

 

$

 

78,159

 

 

$

 

151,873

 

 

$

 

(5,851,952

)

Less: Net income attributable to non-controlling interests

 

 

3,951,904

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

3,951,904

 

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

$

 

(10,340,904

)

 

$

 

-

 

 

$

 

307,016

 

 

$

 

78,159

 

 

$

 

151,873

 

 

$

 

(9,803,856

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

516,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

516,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

 

(20.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

(19.42

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 following transactions (collectively, the "Transactions"):

•
the reacquisition of GIPDC 3707 14th St. LLC (the "DC Entity"), the entity owning the single-tenant net-leased property occupied by 7-Eleven and located at 3707 14th Street, N.W., Washington, D.C. (the "DC Property"), completed on June 16, 2026 (the "Reacquisition");
•
the disposition of a portfolio of six Dollar General-occupied net lease retail properties located in Big Spring, Texas; Mount Gilead, Ohio; East Wilton, Maine; Thompsontown, Pennsylvania; Castalia, Ohio; and Lakeside, Ohio (collectively, the "Dollar General Properties"), completed on August 21, 2026 (the "Dollar General Disposition");
•
the disposition of a Fresenius-occupied single-tenant net-leased medical property located at 3134 West 76th Street, Chicago, Illinois (the "Fresenius Property"), completed on August 21, 2026 (the "Fresenius Disposition"); and
•
the disposition of a single-tenant net-leased property occupied by the United States of America, located at 991 Nut Tree Road, Vacaville, California (the "Vacaville Property"), completed on July 15, 2026 (the "Vacaville Disposition").

The unaudited pro forma condensed consolidated balance sheet as of June 30, 2026 gives effect to the Dollar General Disposition, the Fresenius Disposition, and the Vacaville Disposition as if each had occurred on that date. No adjustment is presented for the Reacquisition, as it is already reflected in the Company's historical balance sheet as of June 30, 2026.

The unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 2025 and the six months ended June 30, 2026 give effect to each of the Transactions as if it had occurred at the beginning of the respective period presented. No adjustment is required with respect to the Reacquisition for the year ended December 31, 2025, as the DC Entity was consolidated by the Company for the entirety of that period.

The unaudited pro forma condensed consolidated financial information is based on the Company's historical consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2025 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The pro forma adjustments are directly attributable to the Transactions, factually supportable, and based on assumptions management believes are reasonable. Adjustments related to the dispositions are expected to have a continuing impact on the Company's results of operations; the Reacquisition-related adjustments in Note 2 relate to a discrete historical period and are not expected to recur.

This information is presented for illustrative purposes only, does not purport to represent what the Company's financial position or results of operations would have been had the Transactions occurred on the dates indicated, and is not indicative of future results. It should be read together with the accompanying notes and the Company's historical consolidated financial statements incorporated by reference herein.

Note 2 – Pro Forma Adjustments

Dollar General Disposition, Fresenius Disposition, and Vacaville Disposition

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

Represents the removal of the historical carrying values of the Dollar General Properties, the Fresenius Property, and the Vacaville Property, including land, buildings and improvements, tenant improvements, and accumulated depreciation, from the unaudited pro forma condensed consolidated balance sheet. The resulting difference between the net book value and the estimated net proceeds from each disposition is reflected as an adjustment to retained earnings within stockholders' equity.

(b) Removal of Property-Level Indebtedness

Represents the removal of the mortgage debt secured by the Dollar General Properties and the Fresenius Property, which was repaid in connection with the applicable disposition, including the elimination of any unamortized deferred financing costs associated with such debt. No adjustment is presented with respect to the Vacaville Property, as the portion of cross-collateralized mortgage debt allocated to the Vacaville Property was not repaid in connection with the Vacaville Disposition, but was instead reallocated among the Company's other properties securing such debt.

(c) Removal of Historical Operating Results

Represents the elimination of rental revenues, property operating expenses, and depreciation and amortization associated with the Dollar General Properties, the Fresenius Property, and the Vacaville Property for the periods presented, as the pro forma financial statements assume each disposition occurred at the beginning of the respective period presented.

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

Represents the elimination of interest expense associated with the mortgage debt secured by the Dollar General Properties and the

Fresenius Property for the periods presented, as such debt was repaid in connection with the applicable disposition. No adjustment is presented with respect to interest expense associated with the Vacaville Property, as the underlying mortgage debt remains outstanding and continues to be serviced by the Company following the Vacaville Disposition.

Reacquisition

(e) Inclusion of Historical Operating Results During the Deconsolidation Period

Represents the inclusion of rental revenues, property operating expenses, and depreciation and amortization associated with the DC Property for the period from March 3, 2026 through June 16, 2026, during which the DC Entity was deconsolidated, as the pro forma financial statements assume the Reacquisition occurred on January 1, 2026.

(f) Inclusion of Interest Expense Associated with Property-Level Debt

Represents the inclusion of interest expense associated with the mortgage debt secured by the DC Property, held by Valley National Bank, for the period from March 3, 2026 through June 16, 2026, during which such debt remained an obligation of the DC Entity but was not consolidated by the Company.

(g) Elimination of Loss on Transfer of LLC Interests

Represents the elimination of the $185,069 loss on transfer of LLC interests, in satisfaction of debt, recognized by the Company during the six months ended June 30, 2026 in connection with the March 3, 2026 transfer of the DC Entity, as the pro forma financial statements assume the Reacquisition occurred on January 1, 2026 and the transfer giving rise to such loss did not occur.