Maxim cuts Generation Income Properties to Hold, sees no dividend coverage

Maxim downgraded Generation Income Properties to Hold from Buy. The firm is cutting its FY24 core FFO forecast to 10c from 60c based on the REIT’s Q1 results and believes that the company will be unable to cover its 11.7c per share quarterly dividend. Maxim adds that it had previously treated meaningful Q4 revenue as recurring while it was non-recurring, and the firm is also cutting its quarterly dividend estimate for Generation Income Properties to 5c per share.