Generation Income Properties Extends Redemption Date for Preferred Equity

Generation Income Properties, Inc. (NASDAQ:GIPR) has announced a significant update to its capital structure, extending the redemption date of a preferred equity interest and reducing the overall balance. The company has reached an agreement with Loci Capital to extend the mandatory redemption date of Loci Capital's preferred equity interest in GIP VB SPE, LLC ("GIPR Portfolio Co") to September 30, 2026. The redemption amount is approximately $4.2 million, if it occurs by the extended date.

This move comes as part of Generation Income Properties' ongoing efforts to simplify its capital structure and strengthen its financial position. The company has substantially reduced its outstanding preferred equity balance, cutting it from approximately $20 million in 2025 to the current $4.2 million. This reduction reflects the firm's commitment to lowering its capital obligations and improving its balance sheet.

"Over the past several months, we have remained focused on simplifying our balance sheet, reducing our capital obligations, and strengthening our financial position," said David Sobelman, Chief Executive Officer of Generation Income Properties. "Reducing the Loci preferred equity balance from approximately $20 million to approximately $4 million represents meaningful progress. We are actively working on efforts to complete the full redemption on or before September 30, which would mark another important step toward a more streamlined capital structure and greater financial flexibility for the Company."

Management believes that the current reduction in preferred equity, along with the planned elimination, together with the company's ongoing balance sheet initiatives, represents significant progress in its efforts to strengthen its financial position and support long-term shareholder value. However, there is no assurance that the company will be able to fully redeem the preferred equity balance by September 30, 2026.

Generation Income Properties will continue to provide updates on its balance sheet initiatives and efforts to redeem the preferred equity as more information becomes available.

Forward-looking statements in the release include the company's plans to redeem outstanding preferred equity interests and future financing activities, which involve risks and uncertainties. These include the risk that the company may not be able to timely redeem outstanding preferred equity and the risk that additional sources of capital may not be available on acceptable terms. The company encourages investors to review its filings with the Securities and Exchange Commission (SEC) for additional factors that could impact these forward-looking statements.