Generation Income Properties Inc.

Greetings. Welcome to the Generation Income Property Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. At this time, I would like to hand the call over to Emily Cusmano, Chief of Staff. Thank you. You may begin.

Thank you, and good morning, everyone. I am joined today by David Sobelman, Chief Executive Officer, and Allison Davies, Chief Financial Officer. David will provide an overview of the company's growth strategy, business, and capital markets activities, second quarter highlights, and subsequent events to date. Allison will review our quarterly financial results. Before we begin, I would like to remind you that today's comments will include forward-looking statements under federal securities law. Statements that are not historical facts such as statements about our expected acquisitions or dispositions are considered forward-looking statements. Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of the factors that could cause our results to differ materially from these forward-looking statements are contained in our SEC filings, including a report on Form 10-Q. In addition, Certain financial information presented on this call includes non-GAAP financial measures. Please refer to our earnings release for definitions, GAAP reconciliations, and an explanation of why we believe such non-GAAP financial measures are useful to investors. With that, I will now turn the call over to our Chief Executive Officer, David Sobelman.

Thank you, Emily, and good morning, everyone. For the past several quarters, we have been reporting to our shareholders and the overall market that fundamental financial dynamics were forcing us to be disciplined and patient as it related to our acquisition strategies. While it wasn't always easy to continually adhere to those principles, we're happy to report that as of August 10th, 2023, Generation Income Properties has almost doubled its portfolio size with the purchase of a 13 property, 202,000 square foot, $42 million single tenant net lease acquisition that perfectly fits the investment thesis that we have laid out for our shareholders. The cap rate for this transaction was 7.55% and the portfolio was financed with approximately $21 million in mortgage debt, $9 million in cash, and $12 million in newly issued redeemable preferred shares. This morning, we released earnings for the second quarter of 2023, as well as filed a press release and an 8K outlining the transaction in which I referenced. There are many positive attributes of this transaction that we feel need to be highlighted. But first, I want to publicly thank the seller, Motive, Inc., a New York Stock Exchange listed net lease REIT, and its CEO, Aaron Halfacre, and Motive's board of directors and its team, who have epitomized professionalism throughout this process. The portfolio is 76% investment grade tenancy or its equivalent, inclusive of 11 national retailer credit tenanted assets and two office assets, one GSA occupied and guaranteed building in California, as well as a mission critical property in the Orlando, Florida market, which is fully occupied with mandated attendance by an international engineering company, EXP, which services amusement parks and entertainment clients, hence the reason for their major Orlando presence. Immediately following our recent portfolio acquisition, our weighted average remaining lease term is now approximately 5.2 years, reflecting our short-term lease thesis. By adding these high-quality properties to our portfolio, We increased our retail asset distribution to 55% and achieved one of our near-term goals of being landlords to over $100 million in gross asset value. We have always said that being a small-cap net lease REIT allows each accretive transaction the opportunity to provide us with meaningful external growth. However, The GIPR team has taken that philosophy a step further and increased the property count of our company by 2X with one transaction. We also accomplished this feat in a very challenging market where most companies are struggling to find opportunities of this magnitude for their respective portfolios. One of the core values at GIPR is being relational, and this transaction is proof that it has served all parties. most importantly our shareholders, very well. The fact that two small public net lease REITs developed a relationship over time and found a way to work with each other, especially in a down market, is a testament to the motivation of how that relational core value has, well, value. Aaron and I want the best for our respective shareholders, and we found a way to identify a transaction, negotiate with fair terms, and execute in this market, which is a telltale sign that we can be creative, responsive, and to emphasize this word, patient, when the right opportunities are identified. Generation Income Properties now has 26 assets in 13 states, and while we're not providing going forward guidance, we do believe that the market may be turning in our favor in order to allow us to continue our external growth plans. While the positive impact of the acquisition is clear for our company's portfolio metrics, we believe this transaction shows shareholders and the market alike that we are focused on growth for the company and have the ability to execute large transactions. As the wider market is continuing to experience challenges, we believe this is just the beginning of a greater buying opportunity and will continue to focus on acquiring shorter-term, high-quality assets to our portfolio. Being a small-cap net lease REIT has its challenges, but this acquisition is a transformative deal for a company of our size, and we're pleased to be able to show the market that we have the ability to source, underwrite, and execute transformative deals, even amidst market uncertainty. With that good news, I turn the call over to Allison Davies, GIPR CFO.