Generation Income Properties Inc.

Good morning, ladies and gentlemen, and welcome to the Generation Income Properties third quarter 2021 earnings conference call. At this time, all lines have been placed in listen-only mode. Please note that today's conference call is being recorded. Replay information is included in our November 11th press release, which can be found on the investor section of the company's website at GIPREIT.com, along with the third quarter earnings release. After the speaker's prepared remarks, there will be a question and answer period. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. I will now turn the conference call over to the company's investor relations representative, Mary Jensen.

Good morning, everyone. I am joined this morning by David Silberman, Chief Executive Officer, and Rick Russell, Chief Financial Officer. David will provide introductory remarks and an overview of business activity and the company's underlying strategy. Rick will summarize our quarterly financial results and capital markets activity. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, our pipeline and planned acquisition activity, anticipated market size, expected consolidation in the industry, future events, and financial performance. These forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for the company to predict those events or how they may affect it. Therefore, you should not place undue reliance on these forward-looking statements. During this call, we will refer to FFO, Core FFO, AFFO, and Core AFFO, which are each non-GAAP financial measures. Reconciliations of net income, the most comparable GAAP measure to these non-GAAP measures, can be found in our earnings release or in the investor presentation available on our website. We ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these forward-looking statements and projections. As such, it is important to note that management comments include time-sensitive information that may only be accurate as of today's date, Monday, November 15th, 2021. Following management's prepared comments, the call will be open for your questions. We request that everyone asks only one question and one follow-up to allow everyone to ask questions. If time permits, we are happy for you to reach you for additional questions. With that, I will now turn the call over to our Chief Executive Officer, David Silvelman.

Thank you, Mary, and welcome to our earnings call. For those of you not familiar with our company, Generation Income Properties is an internally managed real estate corporation formed in 2015 to opportunistically acquire and own retail, office, and industrial net lease properties with a focus on investment-grade tenants. We intend to elect to be taxed as a real estate investment trust for 2021. We currently have nine assets in our portfolio across five states and the District of Columbia. We specialize in underwriting both the credit of our tenants and the real estate. In particular, we focus on properties across multiple asset classes that have a high probability of either maintaining their current tenancy and or re-tenanting in more densely populated markets. Further, in our acquisition strategy targets occupied commercial properties with lease durations under 10 years, as we believe this market segment is underserved by larger institutions with lower costs of capital, thereby creating a sweet spot of growth opportunity that is resourceful and nimble with a plethora of field sources. We spend a considerable amount of time underwriting a property's salient facts before and during our ownership. We look at dozens of variables that play a role in the short and long-term outlook of a property, as well as the specific market in which it is housed. Our due diligence process focuses on basic and more complex real estate research before we begin to look more closely at a tenant's credit rating. We do this to make sure that if there ever comes a day where our tenant may vacate a property, we will have taken into consideration the factors that go into replacing that tenant within a reasonably short amount of time. While we do put tremendous value on the creditworthiness of the tenant, it is secondary to the real estate factors that we contemplate. This process, however, is done quickly and efficiently so we can make our capital available to sellers in short order. The third quarter was, indeed, a transformative time for GIPR. Central to this was our successful underwritten public offering in early September that generated net proceeds of approximately $14.4 million, including a partial over-allotment. Since then, our team has placed six additional properties, including an upgrade transaction, under contract. With a robust investment pipeline at various stages of negotiation and due diligence, we remain on track to have the majority of the offering proceeds deployed by year end at approximately 50% leverage. Finally, we rounded out the skill sets on our very impressive board of directors by welcoming Gina Chang as a new independent director. Gina is a managing director at Prospect Avenue Partners. specialty capital raising and advisory platform focused on private equity industries. She has more than 20 years of experience in the real estate industry and proven expertise in corporate strategy as well as capital markets. Gina will serve on the governance and compensation committees at Generation Income Properties. In addition, as previously disclosed, Richard Russell, our chief financial officer, has been operating in a part-time role. As such, the company intends to begin the search for a full-time chief financial officer, although a specific timeline has not yet been established. Rick has been instrumental to GIPR's success, in particular in building our capital markets exposure, including overseeing our recent successful public offerings. He is a well-regarded team member, and our board of directors has begun the initial steps to run a formal process to identify full-time CFO candidates. It is important to note, however, that Rick intends to remain in his current capacity until a viable replacement is appointed. We will keep you posted on our progress. Moving to our strategy, we believe it is important to spend some time talking in greater detail about our investment strategy and how it differentiates us. The net lease sector certainly remains very active. Last year saw about $60 billion in transaction volume, and yet the sector remains highly fragmented. Public net lease REITs comprise less than 10% of investors. Thus, private investors represent the vast majority who we believe rarely perform meaningful underwriting diligence. We see this as an incredible opportunity for us to take advantage of a fragmented market and acquire properties that are often overlooked by the vast majority of net lease owners due to the lack of underwriting conducted on assets. Although we are refraining from providing acquisition guidance at this time, given the uncertainty of timing and volume, we can assure you we have a robust investment pipeline in various stages of negotiations and due diligence. Turning to our balance sheet, We ended the quarter with $26.8 million of debt, which demonstrates a debt-to-investment leverage ratio of approximately 72.6%. Our goal is to reduce our leverage over time to be in line with our peers, and this is demonstrated with our recent underwritten leverage for new acquisitions at 50%. Rick will provide more color on our liquidity in his remarks. I'm happy to report that our board declared a cash distribution on common stock and operating partnership units of $0.054 per share that is to be paid on a monthly basis, which, when annualized, is approximately $0.65 per share. Before I turn the call over to our CFO to review our quarterly results in more detail, I wanted to mention a recent notable transaction. Subsequent to the end of the quarter, we have placed six assets under contract and announced a $25 million commitment facility with American Momentum Bank. The facility will be utilized to fund the acquisition of individual income-producing real estate properties and emphasizes our longstanding relationship with A&B as well as their confidence in our growth. This commitment will allow us to perform quickly on the acquisition of new assets, and meaningfully grow our portfolio. With that, I now turn the call over to Rick.