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.
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Generation Income Properties, Inc. |
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Unaudited Pro Forma Condensed Consolidated Statement of Operations |
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For the Twelve Months Ended December 31, 2024 |
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Pro Forma |
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Historical |
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Adjustments |
Pro Forma |
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(unaudited) |
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(unaudited) |
(unaudited) |
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Revenue |
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Rental income |
$ |
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9,510,791 |
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$ |
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(676,749 |
) |
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$ |
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8,834,042 |
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Other income |
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251,845 |
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(180 |
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251,665 |
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Total revenue |
$ |
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9,762,636 |
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$ |
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(676,929 |
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$ |
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9,085,707 |
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Expenses |
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General and administrative expense |
$ |
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2,109,271 |
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$ |
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(4,902 |
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$ |
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2,104,369 |
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Building expenses |
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2,673,624 |
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(229,036 |
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2,444,588 |
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Depreciation and amortization |
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4,765,203 |
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(441,785 |
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4,323,418 |
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Interest expense, net |
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4,286,546 |
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(300,263 |
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3,986,283 |
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Compensation Costs |
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1,060,336 |
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- |
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1,060,336 |
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Total expenses |
$ |
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14,894,980 |
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$ |
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(975,985 |
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$ |
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13,918,995 |
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Operating loss |
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(5,132,344 |
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(299,057 |
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(5,431,401 |
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Other expense |
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- |
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- |
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- |
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Gain on derivative valuation |
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372,573 |
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- |
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372,573 |
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Dead deal expense |
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(35,873 |
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- |
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(35,873 |
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Loss on held for sale valuation |
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(77,244 |
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- |
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(77,244 |
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Net loss |
$ |
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(4,872,888 |
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$ |
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(299,057 |
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$ |
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(5,171,945 |
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Less: Net income attributable to non-controlling interests |
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3,476,599 |
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- |
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3,476,599 |
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Net loss attributable to Generation income Properties, Inc. |
$ |
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(8,349,487 |
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$ |
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(299,057 |
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$ |
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(8,648,544 |
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Less: Preferred stock dividends |
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95,000 |
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Net loss attributable to common shareholders |
$ |
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(8,444,487 |
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$ |
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(299,057 |
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$ |
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(8,648,544 |
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Total Weighted Average Shares of Common Stock Outstanding - Basic & Diluted |
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5,443,188 |
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5,443,188 |
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Basic & Diluted Loss Per Share Attributable to Common Stockholders |
$ |
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(1.55 |
) |
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$ |
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(1.59 |
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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.
