Generation Income Properties (GIPR) AI Stock Analysis

• Market Cap: $8.73M
• Dividend Yield: 29.07%
• Average Volume (3M): 30.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 27.91%
• EPS Growth: 29.34%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Diversified
• EPS (TTM): -2.45
• Shares Outstanding: 5,423,188
• 10 Day Avg. Volume: 9,933
• 30 Day Avg. Volume: 30,134
• 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: 0

Generation Income Properties faces significant financial instability, with zero revenue reported for 2024 and high debt levels. Despite these challenges, the stock's high dividend yield and recent strategic acquisition through an UPREIT deal offer some positive aspects. However, the negative technical indicators and unprofitability weigh heavily on the stock's potential. Immediate financial and operational adjustments are crucial to improving performance.

Positive Factors

Acquisitions

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

Capital and Occupancy

$2.5M of new capital and a new tenant increased occupancy to 93% from 89%.

Negative Factors

Dividends

The dividend was 'temporarily suspended' with no near-term expectation of reinstatement.

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

While Generation Income Properties shows revenue growth, it faces significant challenges in profitability and leverage. Persistent negative profit margins and high debt levels strain financial health, though recent cash flow improvements offer some hope.

Income Statement

The income statement reveals a challenging financial landscape for GIPR. Gross profit margin for TTM (Trailing-Twelve-Months) stands at 47.12%, indicating decent cost management. However, the net profit margin is negative due to consistent net losses, with a significant negative net income of -$9.94 million in the TTM. Revenue growth is observed over the years, with a 34.71% increase from 2022 to 2023 and a further 34.74% increase into the TTM. Nonetheless, the persistent negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet shows a highly leveraged position, with a debt-to-equity ratio of 1.21 in the TTM, reflecting high financial risk. The equity ratio of 5.74% indicates limited equity in proportion to total assets. Return on Equity is negative in the TTM, driven by net losses. Despite these concerns, the company has maintained its total assets base, suggesting some level of stability.

Cash Flow

Cash flow analysis highlights significant volatility. Notably, there was a substantial improvement in free cash flow for the TTM, driven by capital expenditure adjustments. The operating cash flow to net income ratio is positive but reflects a discrepancy between cash generation and reported earnings. The free cash flow to net income ratio is also positive, indicating operational cash generation despite accounting losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
10.28M	7.63M	5.43M	3.90M	3.52M	1.73M
	Gross Profit
4.85M	5.93M	4.22M	3.13M	2.81M	1.57M
	EBIT
-1.82M	-3.46M	-808.19K	-324.66K	165.01K	-292.00K
	EBITDA
3.71M	1.84M	3.43M	1.18M	1.51M	334.22K
	Net Income Common Stockholders
-9.94M	-5.72M	-2.31M	-2.57M	-3.34M	-2.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.69M	3.12M	3.72M	10.59M	937.56K	974.37K
	Total Assets
104.63M	108.69M	64.21M	53.42M	40.68M	40.16M
	Total Debt
68.47M	68.73M	43.09M	28.97M	29.46M	28.30M
	Net Debt
66.78M	65.61M	39.37M	18.38M	28.52M	27.32M
	Total Liabilities
72.85M	74.17M	47.28M	30.15M	30.63M	29.52M
	Stockholders Equity
11.89M	15.30M	10.69M	13.65M	1.37M	2.43M
Cash Flow		Free Cash Flow
32.56M	-31.94M	-12.27M	-8.46M	-16.19K	-16.92M
	Operating Cash Flow
783.51K	12.35K	583.88K	-173.76K	256.66K	-208.00K
	Investing Cash Flow
-5.96M	-33.31M	-13.28M	-3.93M	-272.85K	-16.60M
	Financing Cash Flow
-107.49K	32.70M	5.83M	14.81M	-259.81K	17.57M

Generation Income Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.61
• 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 1.61 is above the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.70, and below the 200-day MA of 2.24, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 57.12 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
O	80 Outperform	$50.48B	57.67	2.40%	5.53%	29.49%	-22.38%
NNN	79 Outperform	$7.91B	19.55	9.32%	5.48%	4.97%	-0.26%
FRT	72 Outperform	$8.36B	28.33	9.58%	4.52%	6.21%	22.32%
WPC	72 Outperform	$13.72B	30.00	5.38%	5.57%	-9.09%	-36.58%
KIM	63 Neutral	$14.22B	37.89	4.03%	4.63%	14.51%	-45.53%
Sector *	61 Neutral	$4.71B	17.72	-2.95%	11.43%	6.02%	-21.34%
GIPR	44 Neutral	$8.73M	―	-82.95%	29.07%	27.91%	29.34%

Generation Income Properties Corporate Events

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.

Generation Income Properties Announces Leadership Changes and Consulting Agreement

Generation Income Properties, Inc. announced two key developments affecting its leadership and financial management. Betsy Peck, who served on the Board of Directors and held significant committee positions, resigned for personal reasons effective December 31, 2024. Her departure was amicable, with no disagreements with the company. Additionally, the company entered into a consulting agreement with Ron Cook, through Cook Financial Partners, LLC, allowing him to continue his role as Vice President of Accounting and Finance. The agreement outlines specific hours, compensation, and stock unit grants, ensuring continuity in financial oversight.