Generation Income Properties (GIPR) AI Stock Analysis

• Market Cap: $8.16M
• Dividend Yield: 31.2%
• Average Volume (3M): 13.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 27.91%
• EPS Growth: 29.34%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 76
• Industry: REIT - Diversified
• EPS (TTM): -1.68
• Shares Outstanding: 5,443,188
• 10 Day Avg. Volume: 9,084
• 30 Day Avg. Volume: 13,051
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.83
• Price to Cash Flow (P/CF): 3.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Generation Income Properties is experiencing significant financial distress, highlighted by a lack of revenue in 2024 and negative profit margins. High leverage and declining equity emphasize financial risks, while technical indicators suggest a bearish trend. The company's valuation is concerning, given ongoing losses and a misleading high dividend yield due to suspension. However, strategic acquisitions and efforts to expand the portfolio signal potential for long-term recovery, mitigating some immediate concerns.

Positive Factors

Asset Valuation

The net asset value (NAV) of the company's real estate is likely higher than the current stock price, supporting the Hold rating.

Financial Stability

The removal of the 'going concern' qualification from the financial statements is viewed as a positive factor for the company's stability.

Portfolio Expansion

The August 2023 acquisition of 13 properties nearly doubled the size of GIPR's portfolio and expanded its geographic footprint.

Negative Factors

Dividend Suspension

The dividend suspension with no reinstatement date is a negative factor affecting investor returns.

Earnings Performance

Core adjusted AFFO was reported at $0.02/share, below the estimate of $0.04/share.

Income Risk

The termination of the lease in Vacaville, which accounted for a significant portion of the company's rental income, is considered a material risk.

Generation Income Properties Business Overview & Revenue Model

Company Description

Generation Income Properties (GIPR) is a real estate investment trust (REIT) that focuses on acquiring and managing a diversified portfolio of income-generating properties. The company primarily invests in single-tenant commercial properties across various sectors, including office, retail, and industrial spaces, aiming to deliver stable and growing income to its shareholders.

How the Company Makes Money

Generation Income Properties makes money primarily through leasing its portfolio of commercial properties to tenants, thereby earning rental income. As a REIT, the company is required to distribute a significant portion of its taxable income to shareholders in the form of dividends, which is supported by the consistent cash flow from its lease agreements. Additionally, GIPR may engage in strategic acquisitions and dispositions of properties to optimize its portfolio, potentially generating gains from property sales. The company also benefits from long-term lease agreements with creditworthy tenants, which provide stability and predictability to its revenue streams.

Generation Income Properties Financial Statement Overview

Summary

Generation Income Properties is facing significant financial challenges. The lack of revenue in 2024 and consistent negative profit margins suggest operational difficulties. High leverage and declining equity highlight financial risk, while cash flow instability raises liquidity concerns. Immediate strategic adjustments are needed to stabilize the company's finances.

Income Statement

The company has experienced erratic revenue growth, with a significant drop in 2024 to zero revenue. Previous years showed moderate growth. Profit margins have consistently been negative, reflecting ongoing profitability challenges. The absence of revenue in 2024 is a major red flag.

Balance Sheet

The balance sheet shows a high level of debt compared to equity, with a debt-to-equity ratio of 1.3 in 2024. The equity ratio is low, indicating potential financial instability. Stockholders' equity has significantly decreased, reflecting financial distress.

Cash Flow

Operating cash flow has shown some improvement, but free cash flow remains negative except for 2024, where it turned positive due to zero capital expenditure. The inconsistent cash flow trends and reliance on financing activities indicate potential liquidity issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.28M	0.00	7.63M	5.43M	3.90M	3.52M
	Gross Profit
4.85M	0.00	5.93M	4.22M	3.13M	2.81M
	EBIT
-1.82M	0.00	-3.46M	-808.19K	-324.66K	165.01K
	EBITDA
3.71M	0.00	1.84M	3.43M	1.18M	1.51M
	Net Income Common Stockholders
-9.94M	0.00	-5.72M	-2.31M	-2.57M	-3.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
482.36K	612.94K	3.12M	3.72M	10.59M	937.56K
	Total Assets
482.36K	106.56M	108.69M	64.21M	53.42M	40.68M
	Total Debt
84.29K	7.50M	68.73M	43.09M	28.97M	29.46M
	Net Debt
-398.07K	6.89M	65.61M	39.37M	18.38M	28.52M
	Total Liabilities
139.21K	73.71M	74.17M	47.28M	30.15M	30.63M
	Stockholders Equity
343.15K	5.80M	15.30M	10.69M	13.65M	1.37M
Cash Flow		Free Cash Flow
32.56M	1.02M	-31.94M	-12.27M	-8.46M	-16.19K
	Operating Cash Flow
783.51K	1.02M	12.35K	583.88K	-173.76K	256.66K
	Investing Cash Flow
-5.96M	-5.77M	-33.31M	-13.28M	-3.93M	-272.85K
	Financing Cash Flow
-107.49K	2.25M	32.70M	5.83M	14.81M	-259.81K

Generation Income Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIPR, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.61, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIPR.

Generation Income Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDV	65 Neutral	$167.62M	78.34	3.49%	7.08%	-2.60%	―
Sector *	59 Neutral	$2.73B	11.65	0.11%	8783.19%	5.45%	-17.32%
FVR	53 Neutral	$214.75M	―	-0.37%	1.72%	―	―
MDRR	48 Neutral	$20.80M	514.40	0.20%	1.72%	-3.42%	89.29%
SQFT	46 Neutral	$9.06M	―	-66.17%	4.02%	10.38%	-430.18%
GIPR	43 Neutral	$8.16M	―	-79.15%	31.20%	27.91%	29.34%
MKZR	39 Underperform	$18.09M	―	-23.71%	52.17%	38.79%	-167.80%

Generation Income Properties Corporate Events

Generation Income Properties Reports 2024 Net Loss Amid Growth

Generation Income Properties reported a net loss of $8.44 million for 2024, with significant growth in revenue driven by the acquisition of a 13-property portfolio. Despite suspending dividends to prioritize financial health, the company expanded its portfolio and extended debt and equity terms, aiming for long-term profitability and eventual dividend reinstatement. The company also closed an UPREIT transaction, increasing its Gross Asset Value to approximately $115 million, reflecting a strategic focus on capitalizing on market opportunities.

Generation Income Properties Completes $11.2 Million UPREIT Deal

On February 6, 2025, Generation Income Properties completed a significant $11.2 million UPREIT transaction involving three retail properties leased to major tenants such as Dollar General, Tractor Supply Company, and Zaxby’s. This strategic acquisition, structured as a tax-deferred UPREIT contribution, aims to boost the company’s portfolio by increasing its weighted average lease term and gross asset value, ultimately reinforcing its long-term growth strategy and enhancing stakeholder value.