Generation Income Properties to suspend dividend payout

The company states: “Despite our collective challenges, our company’s portfolio is performing as planned, rent collection is at 100%, and we continue to maintain direct communication with our tenants to gain intelligence on their companies as well as their performance at our locations. We have signed new leases with credit-worthy tenants, and we have extended leases with incumbent companies who are performing well at our locations. Additionally, we remain comfortable with our in-place leverage at lower loan-to-value ratios (LTVs) and fixed interest rates, and we have been maintaining and growing our lender relationships with the understanding that our platform is one that is conservative and has a large growth potential. However, with national economic pressures usually comes challenging market conditions and we believe we should proactively prepare for bumpy roads ahead. We’re closely monitoring the economic data and we are witnessing fallout in various forms within our industry and our economy. The subsequent consequences are that many of our colleagues within our industry are either leaving their long-held roles or involuntarily being laid off, which is a dynamic that we’re paying particularly close attention to. Additionally, some retailers have announced major store closings for large portions of their operating locations, as they are disclosing that their financial pressures are too much to bear. Thankfully, we believe that GIPR is well-positioned to weather these challenging markets in light of our efficient use of human capital resources and our management team’s focus on positioning our company for substantial growth. However, out of an abundance of caution, our Board of Directors, has determined that it is in the best interest of our company and its shareholders to temporarily suspend the company’s dividend in order to employ the capital to sustain our company’s growth trajectory during this challenging economic market environment. Conserving our cash, which we estimate will equate to roughly $2.54 million annualized, will afford us the opportunity to make strategic acquisitions that can positively impact our long-term growth. We have always made growth and profitability a priority for you and with the challenging capital markets, we believe that we can weather this period better by taking these near-term steps. While it is not anticipated that any dividend distributions will be required this year in order to maintain our status as a REIT, if any such dividends are required, we expect to make the required distributions in a timely manner in order to maintain REIT status.”