Financial Performance - Total revenue for the three months ended September 30, 2024, was $2,400,282, an increase of $556,134 (30.1%) compared to $1,844,148 for the same period in 2023[140]. - Total revenue for the nine months ended September 30, 2024, was $7,092,690, an increase of $2,582,625 (57.3%) compared to $4,510,065 for the same period in 2023[140]. - Total operating expenses for the three months ended September 30, 2024, were $3,769,715, an increase of $709,578 (23.2%) compared to $3,060,136 for the same period in 2023[141]. - Total operating expenses for the nine months ended September 30, 2024, were $11,133,386, an increase of $4,050,741 (57.2%) compared to $7,082,645 for the same period in 2023[144]. - Net loss for the three months ended September 30, 2024, was $2,103,549, compared to a net loss of $1,213,265 for the same period in 2023[145]. - Net loss for the nine months ended September 30, 2024, was $5,444,133, compared to a net loss of $3,156,015 for the same period in 2023[145]. - Funds from Operations (FFO) for the nine months ended September 30, 2024, was $(601,651), compared to $(552,406) for the same period in 2023[185]. - Core Adjusted Funds From Operations for the nine months ended September 30, 2024, was $(906,267), compared to $(72,354) for the same period in 2023[185]. Portfolio and Leasing - As of September 30, 2024, approximately 60% of the portfolio's annualized base rent (ABR) was derived from tenants with an investment grade credit rating of "BBB-" or better[128]. - The portfolio is 89% leased and occupied, indicating strong demand for the properties[128]. - Approximately 92% of the leases in the current portfolio provide for increases in contractual base rent during future years[128]. - The average effective annual rental per square foot is $14.75[128]. - The largest tenants, including the General Service Administration and Dollar General, contributed approximately 69% of the portfolio's ABR[128]. Cash Flow and Liquidity - As of September 30, 2024, the company had total cash of $1,581,610 and outstanding mortgage loans with a principal balance of $59,707,772[149]. - For the nine months ended September 30, 2024, the Company generated positive operating cash flows of $783,511 and had cash on hand of $1.58 million[159]. - Net cash provided by operating activities increased to $783,511 for the nine months ended September 30, 2024, compared to $18,537 for the same period in 2023, attributed to the doubling of income-generating assets through the Modiv acquisition[175]. - Net cash used in investing activities was $5,960,893 for the nine months ended September 30, 2024, a significant decrease from $33,314,973 in the same period of 2023[176]. - Net cash provided by financing activities decreased to $3,607,045 for the nine months ended September 30, 2024, down from $33,916,112 in 2023, due to increased mortgage principal repayments and dividend payments[177]. Debt and Financing - Minimum required principal payments on the Company's debt total $65.66 million as of September 30, 2024, with significant payments due in 2028 and thereafter[168]. - The Company is required to maintain a debt service coverage ratio (DSCR) of 1.50 for certain mortgage loans, and as of September 30, 2024, it was in compliance with all covenants[167]. - The Company modified terms for two secured mortgage loans, extending maturity dates to August 2029, to improve liquidity and profitability[159]. - The Company had outstanding mortgage loans payable totaling $59.71 million as of September 30, 2024[161]. - The company aims to maintain financial flexibility through retained cash flows, long-term debt, and preferred stock to finance growth, targeting a lower-leveraged portfolio in the long term[174]. Dividends and Shareholder Returns - From inception through September 30, 2024, the company has distributed $5,031,549 to common stockholders[131]. - On July 3, 2024, the company announced the suspension of its regular dividend, effective from July 2024[132]. Corporate Governance and Changes - The company appointed CohnReznick LLP as its new independent registered public accounting firm on July 19, 2024[135]. - The company entered into a Fifth Amendment to the Amended and Restated Limited Partnership Agreement, issuing Series B-1 Preferred Units on July 24, 2024[136]. Concerns and Projections - The Company reported a substantial doubt about its ability to continue as a going concern one year after the issuance of the financial statements due to recurring losses and projected cash needs[159]. - The Company has cash needs projected due to recurring losses, indicating a focus on improving financial health[159].
Generation me Properties(GIPR) - 2024 Q3 - Quarterly Report