Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40771 | |
Entity Registrant Name | GENERATION INCOME PROPERTIES, INC. | |
Entity Central Index Key | 0001651721 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 47-4427295 | |
Entity Address, Address Line One | 401 E. Jackson Street | |
Entity Address, Address Line Two | Suite 3300 | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33602 | |
City Area Code | 813 | |
Local Phone Number | 448-1234 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,422,155 | |
Common Stock Par Value $0.01 Per Share | ||
Document And Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock par value $0.01 per share | |
Trading Symbol | GIPR | |
Security Exchange Name | NASDAQ | |
Warrants To Purchase Common Stock | ||
Document And Entity Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase Common Stock | |
Trading Symbol | GIPRW | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Investment in real estate | ||
Land | $ 21,236,021 | $ 21,996,902 |
Building and site improvements | 64,654,032 | 71,621,499 |
Acquired tenant improvements | 2,072,205 | 2,072,205 |
Acquired lease intangible assets | 9,927,046 | 10,571,331 |
Less: accumulated depreciation and amortization | (8,618,181) | (8,855,332) |
Net real estate investments | 89,271,123 | 97,406,605 |
Cash and cash equivalents | 1,655,820 | 3,117,446 |
Restricted cash | 34,500 | 34,500 |
Deferred rent asset | 366,278 | 1,106,191 |
Prepaid expenses | 473,380 | 139,941 |
Prepaid guaranty fees - related party | 96,360 | 0 |
Accounts receivable | 283,850 | 241,166 |
Escrow deposit and other assets | 569,803 | 493,393 |
Held for sale assets | 5,750,250 | 0 |
Right of use asset, net | 6,131,688 | 6,152,174 |
Total Assets | 104,633,052 | 108,691,416 |
Liabilities | ||
Accounts payable | 51,901 | 406,772 |
Accrued expenses | 593,731 | 688,146 |
Accrued expense - related party | 683,347 | 683,347 |
Acquired lease intangible liabilities, net | 982,275 | 1,016,260 |
Insurance payable | 367,322 | 34,966 |
Deferred rent liability | 170,317 | 260,942 |
Lease liability, net | 6,427,039 | 6,415,041 |
Other payable - related party | 1,357,380 | 1,809,840 |
Loan payable - related party | 5,500,000 | 5,500,000 |
Mortgage loans, net of unamortized debt discount of $1,278,582 and $1,326,362 at March 31, 2024 and December 31, 2023, respectively | 56,545,312 | 56,817,310 |
Derivative liabilities | 169,942 | 537,424 |
Total liabilities | 72,848,566 | 74,170,048 |
Redeemable Non-Controlling Interests | 19,498,296 | 18,812,423 |
Preferred Stock - Series A Redeemable Preferred stock, net, | ||
Preferred Stock $0.01 par value, 2,400,000 shares authorized, no shares issued or outstanding as of March 31, 2024 and 2,400,000 shares issued and outstanding at December 31, 2023 with liquidation preferences of $5 per share | 0 | 11,637,616 |
Stockholders' Equity | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 5,419,855 and 2,620,707 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 54,199 | 26,207 |
Additional paid-in capital | 29,589,564 | 18,472,049 |
Accumulated deficit | (17,753,278) | (14,833,058) |
Total Generation Income Properties, Inc. stockholders' equity | 11,890,485 | 3,665,198 |
Non-Controlling Interest | 395,705 | 406,131 |
Total equity | 12,286,190 | 4,071,329 |
Total Liabilities and Equity | $ 104,633,052 | $ 108,691,416 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Mortgage loans, net of unamortized discount | $ 1,278,582 | $ 1,326,362 |
Redeemable preferred stock, par value | $ 0.01 | $ 0.01 |
Redeemable preferred stock, shares authorized | 2,400,000 | 2,400,000 |
Redeemable preferred stock, liquidation preference per share | $ 5 | |
Redeemable preferred stock, shares issued | 0 | 2,400,000 |
Redeemable preferred stock, shares Outstanding | 0 | 2,400,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 5,419,855 | 2,620,707 |
Common stock, shares outstanding | 5,419,855 | 2,620,707 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Total revenue | $ 2,433,173 | $ 1,337,039 |
Expenses | ||
General and administrative expense | 449,797 | 344,147 |
Building expenses | 654,667 | 313,600 |
Depreciation and amortization | 1,226,605 | 557,550 |
Interest expense, net | 1,020,741 | 469,210 |
Compensation costs | 282,015 | 351,287 |
Total expenses | 3,633,825 | 2,035,794 |
Operating loss | (1,200,652) | (698,755) |
Other expense | 0 | (506,000) |
Gain on derivative valuation, net | 380,550 | 0 |
Income on investment in tenancy-in-common | 0 | 14,402 |
Loss on held for sale asset valuation | (1,058,994) | 0 |
Net loss | (1,879,096) | (1,190,353) |
Less: Net income attributable to non-controlling interest | 946,124 | 127,214 |
Net loss attributable to Generation Income Properties, Inc. | (2,825,220) | (1,317,567) |
Less: Preferred stock dividends | 95,000 | 0 |
Net loss attributable to common shareholders | $ (2,920,220) | $ (1,317,567) |
Total Weighted Average Shares of Common Stock Outstanding – Basic | 4,390,489 | 2,541,477 |
Total Weighted Average Shares of Common Stock Outstanding – Diluted | 4,390,489 | 2,541,477 |
Basic Loss Per Share Attributable to Common Stockholders | $ (0.67) | $ (0.52) |
Diluted Loss Per Share Attributable to Common Stockholders | $ (0.67) | $ (0.52) |
Rental Income | ||
Revenue | ||
Total revenue | $ 2,274,730 | $ 1,326,707 |
Other Incomes | ||
Revenue | ||
Total revenue | $ 158,443 | $ 10,332 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (unaudited) - USD ($) | Total | Year-End Adjustment | Common Stock | Additional Paid-In- Capital | Accumulated Deficit | Stockholders' Equity | Redeemable Preferred Stock | Non-Controlling Interests |
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2022 | $ 25,016 | $ 19,307,518 | $ (8,640,796) | $ 10,691,738 | $ 445,035 | |||
Beginning Balance at Dec. 31, 2022 | $ 11,136,773 | |||||||
Balance, Shares at Dec. 31, 2022 | 2,501,644 | |||||||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2022 | 5,789,731 | 5,789,731 | ||||||
Restricted stock unit compensation | 90,648 | $ 986 | 89,662 | 90,648 | ||||
Restricted stock unit compensation, Shares | 98,593 | |||||||
Cashless exercise of warrants | $ 106 | (106) | ||||||
Cashless exercise of warrants, shares | 10,648 | |||||||
Conversion of preferred stock to Common stock | 0 | |||||||
Redemption of Redeemable Non-Controlling Interest | (2,479,299) | (2,479,299) | ||||||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 3,000,000 | |||||||
Distribution on Non-Controlling Interest | (115,817) | (115,817) | ||||||
Distribution on Non-Controlling Interest | (2,844) | (2,844) | ||||||
Dividends paid on common stock | (297,479) | (297,479) | (297,479) | |||||
Net (loss) income for the quarter | (1,317,567) | $ (1,322,475) | (1,317,567) | (1,317,567) | (4,908) | |||
Net (loss) income for the quarter | 132,122 | 132,122 | ||||||
Redeemable Non-Controlling Interests, Ending Balance at Mar. 31, 2023 | $ 26,108 | 19,099,595 | (9,958,363) | 9,167,340 | 437,283 | |||
Ending Balance at Mar. 31, 2023 | 9,604,623 | |||||||
Balance, Shares at Mar. 31, 2023 | 2,610,885 | |||||||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2023 | 6,326,737 | 6,326,737 | ||||||
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2023 | 3,665,198 | $ 26,207 | 18,472,049 | (14,833,058) | 3,665,198 | 406,131 | ||
Beginning Balance at Dec. 31, 2023 | 4,071,329 | |||||||
Balance, Shares at Dec. 31, 2023 | 2,620,707 | |||||||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2023 | 18,812,423 | $ 11,637,616 | 18,812,423 | |||||
Restricted stock unit compensation | 94,935 | 94,935 | 94,935 | |||||
Cashless exercise of warrants | $ 46 | (46) | ||||||
Cashless exercise of warrants, shares | 4,551 | |||||||
Conversion of preferred stock to Common stock | 11,637,616 | $ 27,946 | 11,609,670 | 11,637,616 | (11,637,616) | |||
Conversion of preferred stock to Common stock, share | 2,794,597 | |||||||
Distribution on Non-Controlling Interest | (267,833) | (267,833) | ||||||
Distribution on Non-Controlling Interest | (2,844) | (2,844) | ||||||
Dividends paid on common stock | (525,106) | (525,106) | (525,106) | |||||
Stock issuance costs | (61,938) | (61,938) | (61,938) | |||||
Dividends on preferred stock | (95,000) | |||||||
Net (loss) income for the quarter | (2,825,220) | (2,927,802) | (2,920,220) | (2,920,220) | 95,000 | (7,582) | ||
Net (loss) income for the quarter | 953,706 | 953,706 | ||||||
Redeemable Non-Controlling Interests, Ending Balance at Mar. 31, 2024 | 11,890,485 | $ 54,199 | $ 29,589,564 | $ (17,753,278) | $ 11,890,485 | 395,705 | ||
Ending Balance at Mar. 31, 2024 | 12,286,190 | $ 12,286,190 | ||||||
Balance, Shares at Mar. 31, 2024 | 5,419,855 | |||||||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2024 | $ 19,498,296 | $ 0 | $ 19,498,296 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
CASHFLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (1,879,096) | $ (1,190,353) | |
Adjustments to reconcile net loss to cash used in operating activities | |||
Depreciation | 748,654 | 398,399 | |
Amortization of acquired tenant improvements | 80,623 | 23,588 | |
Amortization of in-place leases | 397,328 | 135,563 | |
Amortization of above market leases | 101,771 | 0 | |
Amortization of below market leases | (33,802) | (26,114) | |
Amortization of above market ground lease | (183) | (183) | |
Amortization of debt issuance costs | 47,780 | 28,865 | |
Restricted stock unit compensation | 94,935 | 90,648 | |
Non-cash ground lease expense | 20,486 | 21,149 | |
Income on investment in tenancy-in-common | 0 | (14,402) | |
Gain on derivative valuation, net | (380,550) | 0 | |
Loss on held for sale asset valuation | 1,058,994 | 0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (42,684) | (55,155) | |
Other assets | (63,342) | 23,945 | |
Deferred rent asset | 739,913 | (16,848) | |
Prepaid expenses | (333,439) | (409,932) | |
Prepaid guaranty fees - related party | (96,360) | 0 | |
Accounts payable | (354,871) | (53,945) | |
Accrued expenses | (1,553) | 275,096 | |
Lease liability | 11,998 | 14,438 | |
Deferred rent liability | (90,625) | (95,723) | |
Net cash provided by operating activities | 25,977 | (850,964) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Escrow return for purchase of properties | 0 | (50,000) | |
Net cash used in investing activities | 0 | (50,000) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of redeemable non-controlling interests | 0 | 3,000,000 | |
Redemption of redeemable non-controlling interests | 0 | (2,479,299) | |
Repayment on other payable - related party | (452,460) | (325,000) | |
Mortgage loan repayments | (319,778) | (151,627) | |
Equity issuance costs | (61,938) | 0 | |
Insurance financing borrowings | 400,889 | 352,307 | |
Insurance financing repayments | (68,533) | (60,628) | |
Distribution on non-controlling interests | (270,677) | (118,661) | |
Dividends paid on preferred stock | (190,000) | 0 | |
Dividends paid on common stock | (525,106) | (297,479) | |
Net cash used in financing activities | (1,487,603) | (80,387) | |
Net decrease in cash and cash equivalents | (1,461,626) | (981,351) | |
Cash and cash equivalents and restricted cash - beginning of period | 3,151,946 | 3,752,996 | $ 3,752,996 |
Cash and cash equivalents and restricted cash - end of period | 1,690,320 | 2,771,645 | $ 3,151,946 |
CASH TRANSACTIONS | |||
Interest Paid | 1,247,442 | 469,191 | |
NON-CASH TRANSACTIONS | |||
Conversion of preferred stock to Common stock | 11,637,616 | 0 | |
Stock issued for cashless exercise of Investor Warrants | 46 | 106 | |
Deferred distribution on redeemable non-controlling interests | $ 685,873 | $ 16,305 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2024 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Note 1 – Nature of Operations Generation Income Properties, Inc. (the “Company”) was formed as a Maryland corporation on September 19, 2015 . The Company is an internally managed real estate investment company focused on acquiring and managing income-producing retail, office and industrial properties net leased to high quality tenants in major markets throughout the United States. The Company formed Generation Income Properties L.P. (the “Operating Partnership”) in October 2015 . Substantially all of the Company’s assets are held by, and operations are conducted through, the Operating Partnership or its direct or indirect subsidiaries. The Company is the general partner of the Operating Partnership and as of March 31, 2024 owned 95.3 % of the outstanding common units of the Operating Partnership. The Company formed a Maryland entity GIP REIT OP Limited LLC in 2018 that owns 0.001 % of the Operating Partnership. The Company places each property in a separate entity which may have a Redeemable Non-Controlling interest as a member. As of March 31, 2024 , the Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis owned 26 properties. Management’s Liquidity Plans and Going Concern On August 27, 2014, FASB issued ASU 2014-05, Disclosure of Uncertainties about an Entity’s ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern within one year from financial statement issuance and to provide related footnote disclosures in certain circumstances. In accordance with ASU 2014-05, management’s analysis can only include the potential mitigating impact of management’s plans that have not been fully implemented as of the issuance date if (a) it is probable that management’s plans will be effectively implemented on a timely basis, and (b) it is probable that the plans, when implemented, will alleviate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. GAAP applicable to a going concern. This presentation contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described below. For the three months ended March 31, 2024, the Company generated positive operating cash flows of $ 25,977 and had cash on hand of $ 1.7 million as of March 31, 2024. Two secured mortgage loans which have a principal balance of $ 7.3 million and $ 4.5 million as of March 31, 2024 will mature on September 30, 2024 and October 23, 2024 , respectively. Our current and anticipated liquidity is less than the principal balance of these obligations. As a result of our recurring losses, our projected cash needs, and our current liquidity, substantial doubt exists about the Company’s ability to continue as a going concern one year after the date that these financial statements are issued. The Company’s ability to continue as a going concern is contingent upon successful execution of management’s plan to improve the Company’s liquidity and profitability, which includes a plan to refinance these two mortgage loans at maturity. The Company has been engaged in active conversations with the current lender on a refinance. There is no assurance that the Company will be successful in obtaining such refinance on terms acceptable to the Company, if at all, and the Company may not be able to enter into collaborations or other arrangements. The failure of the Company to refinance on acceptable terms would have a material adverse effect on the Company’s business, results of operations and financial condition. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the SEC on April 8, 2024. The results for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024. The preparation of the consolidated financial statements in conformity with U.S. GAAP. The Company adopted the calendar year as its basis of reporting. Certain immaterial prior year amounts have been reclassified for consistency with the current period presentation. Consolidation The accompanying consolidated financial statements include the accounts of Generation Income Properties, Inc. and the Operating Partnership and all of the direct and indirect wholly-owned subsidiaries of the Operating Partnership and the Company’s subsidiaries. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. The consolidated financial statements include the accounts of all entities in which the Company has a controlling interest. The ownership interests of other investors in these entities are recorded as non-controlling interests or redeemable non-controlling interest. Non-controlling interests are adjusted each period for additional contributions, distributions, and the allocation of net income or loss attributable to the non-controlling interests. Investments in entities for which the Company has the ability to exercise significant influence over, but does not have financial or operating control, are accounted for using the equity method of accounting. Accordingly, the Company’s share of the earnings (or losses) of these entities are included in consolidated net income or loss. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of commitments and contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change significantly if economic conditions were to weaken. Cash The Company considers all demand deposits, cashier’s checks and money market accounts to be cash equivalents. Amounts included in restricted cash represent funds owned by the Company related to tenant escrow reimbursements and immediate capital repair reserve. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Consolidated Statements of Cash Flows: As of March 31, As of December 31, 2024 2023 Cash and cash equivalents $ 1,655,820 $ 3,117,446 Restricted cash 34,500 34,500 Cash and cash equivalents and restricted cash $ 1,690,320 $ 3,151,946 Revenue Recognition The Company leases real estate to its tenants under long-term net leases which the Company accounts for as operating leases. Those leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. In addition to straight-line rents, deferred rent liability includes $ 189,708 and $ 280,332 of prepaid rent as of March 31, 2024 and December 31, 2023, respectively. The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates, and economic conditions in the area where the property is located. In the event that uncollectability exists with respect to any tenant changes, the Company would recognize an adjustment to Rental income. The Company’s review of collectability of charges under its operating leases includes any accrued rental revenues related to the straight-line rents. There were no allowances for receivables recorded during three months ended March 31, 2024 or 2023. The Company’s leases provide for reimbursement from tenants for common area maintenance (“CAM”), insurance, real estate taxes and other operating expenses (“recoverable costs”). A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. The Company often recognizes above- and below-market lease intangibles in connection with acquisitions of real estate. The capitalized above- and below-market lease intangibles are amortized to rental income over the remaining term of the related leases. Stock-Based Compensation The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in compensation costs based on their fair values on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards. Investments in Real Estate Acquisitions of real estate are recorded at cost. The Company assigns the purchase price of real estate to tangible and intangible assets and liabilities based on fair value. Tangible assets consist of land, buildings, site improvements, and tenant improvements. Intangible assets and liabilities consist of the value of in-place leases and above- or below- market leases assumed with the acquisition. At the time of acquisition, the Company assesses whether the purchase of the real estate falls within the definition of a business under Accounting Standards Codification (“ASC”) 805 and to date has concluded that all asset transactions are asset acquisitions. Therefore, each acquisition has been recorded at the purchase price whereas assets and liabilities, inclusive of closing costs, are allocated to land, building, site improvements, tenant improvements, and intangible assets and liabilities based upon their relative fair values at the date of acquisition. The fair value of the in-place leases are estimated as the cost to replace the leases including loss of rent, commissions and legal fees. The in-place leases are amortized over the remaining team of the leases as amortization expense. The fair value of the above- or below-market lease is estimated as the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated current market lease rate expected over the remaining non-cancelable life of the lease. The capitalized above- or below-market lease values are amortized as a decrease or increase to rental income over the remaining term of the lease inclusive of the renewal option periods that are considered probable at acquisition. Depreciation Expense Real estate and related assets are stated net of accumulated depreciation. Renovations, replacements and other expenditures that improve or extend the life of assets are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful life of the buildings, which are generally between 15 and 50 years , and site improvements, which are generally 5 to 9 years. Tenant improvements are amortized over the lease terms of the tenants, which is generally between 2 and 10 years, with two tenant improvements amortized over 27 years . Lease Liabilities The Company has a certain property within its portfolio that is on land subject to a ground lease with a third party, which is classified as an operating lease. Accordingly, the Company owns only a long-term leasehold in this property. The building and improvements constructed on the leased land are capitalized as investment in real estate and are depreciated over the shorter of the useful life of the improvements or the lease term. Under ASC 842, the Company recognizes a lease liability for its ground lease and corresponding right of use asset related to this same ground lease which is classified as an operating lease. A key input in estimating the lease liability and resulting right of use asset is establishing the discount rate in the lease, which since the rate implicit in the contract is not readily determinable, requires additional inputs for the longer-term ground lease, including mortgage market-based interest rates that correspond with the remaining term of the lease, the Company's credit spread, and the payment terms present in the lease. This discount rate is applied to the remaining unpaid minimum rental payments for the lease to measure the lease liability. Impairments The Company reviews investments in real estate and related lease intangibles for possible impairment when certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable though operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. An impairment loss of approximately $ 1.06 million was recognized during the three months ended March 31, 2024 resulting from the reduction in the anticipated holding period of the property which was reclassified as held for sale in the three months ended March 31, 2024. There were no impairments in the Company's investments in real estate during the three months ended March 31, 2023. The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions, and purchase offers received from third parties, which are Level 3 inputs. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate. Estimating future cash flows is highly subjective and estimates can differ materially from actual results. Real Estate Held for Sale The Company generally considers assets to be held for sale when certain criteria have been met, and management believes it is probable that the disposition will occur within one year. Properties are held for sale for a period longer than one year if events or circumstances out of the Company's control occur that delay the sale and while management continues to be committed to the plan of sale and is performing actions necessary to respond to the conditions causing the delay the properties held for sale remain salable in their current condition. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value, less cost to sell, and depreciation and amortization are no longer recognized. Held for sale properties are evaluated quarterly to ensure that properties continue to meet the held for sale criteria. If properties are required to be reclassified from held for sale to held for use due to changes to a plan of sale, they are recorded at the lower of fair value or the carrying amount before the property was classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used. Properties that do not meet the held for sale criteria are accounted for as operating properties . The Company executed a contract to sell the property located at 15091 SW Alabama, Huntsville, AL for $ 6.15 million in March 2024 and as of the reporting date is engaged in due diligence with the buyer. The property's sale is anticipated to close within the next quarter. As such, the Company has reclassified the asset to Held for sale assets net of the costs of sales at a carrying value of approximately $ 5.75 million and recorded an impairment loss of approximately $ 1.06 million. Income Taxes The Company elected to be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code, commencing with our taxable year ending December 31, 2021. To continue to qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal corporate income tax on that portion of its taxable income that is currently distributed to stockholders. Accordingly, the only provision for federal income taxes in the accompanying consolidated financial statements relates to the Company's consolidated taxable REIT subsidiary of which no income was generated during the three months ended March 31, 2024 and 2023. The Company also recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related processes, if any. As of each balance sheet date, unrecognized benefits are reassessed and adjusted if the Company’s judgment changes as a result of new information. No liability for unrecognized tax benefits was recorded as of March 31, 2024 or 2023. At March 31, 2024 , the Company's tax returns for the years 2020 forward remain subject to examination by the major tax jurisdictions under the statute of limitations. Earnings per Share In accordance with ASC 260, basic earnings (loss) per share (“EPS”) is computed by dividing net loss attributable to the Company that is available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock warrants, using the treasury stock method, and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive securities such as warrants and convertible membership units of the Operating Partnership (“GIP LP Units”) if their effect is anti-dilutive. As of the three months ended March 31, 2024 and 2023 , all potentially dilutive securities were excluded because the effect was anti-dilutive. Derivative Financial Instruments Derivatives are recorded at fair value on the balance sheet as assets or liabilities. The valuation of derivative instruments requires us to make estimates and judgments that affect the fair value of the instruments. Fair values of our derivatives are estimated by pricing models that consider the forward yield curves and discount rates. Such amounts and the recognition of such amounts are subject to estimates that may change in the future. Fair Value Measurements Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from independent sources (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the Company's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The three levels of inputs used to measure fair value are as follows: • Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 - Unobservable inputs for the asset or liability, which are typically based on the Company's own assumptions, as there is little, if any, related market activity. The Company also re-measures nonfinancial assets and nonfinancial liabilities, initially measured at fair value in a business combination or other new basis event, at fair value in subsequent periods if a re-measurement event occurs. See Derivative Financial Instruments in Note 10 for additional information on the Company's fair value measurements. |
Acquired Lease Intangible Asset
Acquired Lease Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2024 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Acquired Lease Intangible Assets, Net | Note 3 – Acquired Lease Intangible Assets, net In-place leases, net is comprised of the following: As of March 31, As of December 31, 2024 2023 In-place leases $ 8,269,790 $ 8,914,075 Accumulated amortization ( 2,164,845 ) ( 2,411,802 ) In-place leases, net $ 6,104,945 $ 6,502,273 The amortization for in-place leases for the three months ended March 31, 2024 and 2023 was $ 397,328 and $135 ,563 , respectively. The future amortization for in-place leases, net for subsequent years ending December 31, is listed below: As of March 31, 2024 2024 (9 months remaining) $ 1,031,892 2025 1,320,791 2026 1,219,556 2027 834,926 2028 644,063 Thereafter 1,053,717 $ 6,104,945 Above-market leases, net is comprised of the following: As of March 31, As of December 31, 2024 2023 Above-market leases $ 1,657,256 $ 1,657,256 Accumulated amortization ( 271,555 ) ( 169,784 ) Above-market leases, net $ 1,385,701 $ 1,487,472 The amortization for above-market leases for the three months ended March 31, 2024 and 2023 was $ 101,771 and $ 0 , respectively. The future amortization for above-market leases, net for subsequent years ending December 31, is listed below: As of March 31, 2024 2024 (9 months remaining) $ 305,349 2025 407,132 2026 380,084 2027 161,539 2028 104,443 Thereafter 27,262 $ 1,385,701 |
Acquired Lease Intangible Liabi
Acquired Lease Intangible Liabilities, Net | 3 Months Ended |
Mar. 31, 2024 | |
Below Market Lease [Abstract] | |
Acquired Lease Intangible Liabilities, net | Note 4 – Acquired lease intangible liabilities, net Acquired lease intangible liabilities, net is comprised of the following: As of March 31, As of December 31, 2024 2023 Acquired lessor lease intangible liabilities $ 1,304,309 $ 1,304,309 Accumulated accretion to rental income ( 365,734 ) ( 331,932 ) Acquired lessor lease intangible liabilities, net $ 938,575 $ 972,377 Acquired lessee lease intangible liabilities $ 45,207 $ 45,207 Accumulated amortization to offset building expenses ( 1,507 ) ( 1,324 ) Acquired lessee lease intangible liabilities, net $ 43,700 $ 43,883 The amortization for acquired lessor lease intangible liabilities for the three months ended March 31, 2024 and 2023 was $ 33,802 and $ 26,114 , respectively. The future amortization for acquired lessor lease intangible liabilities, net for subsequent years ending December 31 is listed below: As of March 31, 2024 2024 (9 months remaining) 102,364 2025 135,543 2026 119,262 2027 110,322 2028 109,706 Thereafter 361,378 $ 938,575 The amortization for acquired lessee lease intangible liabilities for the three months ended March 31, 2024 and 2023 was $ 183 and $ 183 , respectively. The future amortization for acquired lessee lease intangible liabilities, net for subsequent years ending December 31 is listed below: As of March 31, 2024 2024 (9 months remaining) $ 549 2025 732 2026 732 2027 732 2028 732 Thereafter 40,223 $ 43,700 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Note 5 – Leases Lessor Accounting All of the Company's leases are classified as operating leases. The Company's rental income is comprised of both fixed and variable income. Fixed and in-substance fixed lease income includes stated amounts per the lease contract, which are primarily related to base rent. The Company’s leases also provide for reimbursement from recoverable costs. A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. Income for these amounts is recognized on a straight-line basis. Variable lease income includes the tenants' contractual obligations to reimburse the Company for their portion of recoverable costs incurred. The following table provides a disaggregation of lease income recognized as either fixed or variable lease income three months ended March 31, 2024 and 2023: 2024 2023 Rental income Fixed and in-substance fixed lease income $ 1,949,206 $ 1,203,924 Variable lease income 388,729 79,821 Other related lease income, net: Amortization of above- and below-market leases, net ( 67,969 ) 26,114 Straight line rent revenue 4,764 16,848 Total rental income $ 2,274,730 $ 1,326,707 For the three months ended March 31, 2024 and 2023 , we had four tenants that each account for more than 10% of our rental revenue as indicated below: 2024 2023 General Services Administration - Norfolk, VA, Manteo, NC & Vacaville, CA 16 % 23 % Pre-K - San Antonio, TX 14 % N/A Dollar General - multiple locations 13 % N/A PRA Holdings, Inc. - Norfolk, VA < 10 % 16 % Pratt & Whitney Automation, Inc. - Huntsville, AL < 10 % 15 % Kohl's Corporation - Tucson, AZ < 10 % 17 % The following table presents future minimum rental cash payments due to the Company over the next five calendar years and thereafter as of December 31: As of March 31, 2024 2024 (9 months remaining) $ 6,219,257 2025 8,164,467 2026 7,877,077 2027 6,264,047 2028 4,815,997 Thereafter 11,204,220 $ 44,545,065 On March 29, 2024, the Company executed a 10-year lease, with two five-year renewal options, with Armed Services YMCA for the use of approximately 35,000 square feet on the property located at 2510 Walmer Avenue, Norfolk, Virginia. Rent commenced on May 1, 2024 under the contracted twelve month tenant improvement period of twelve months at a reduced fixed base rent of approximately $ 23,000 per month. Base rent increases to a fixed rate of approximately $ 34,000 per month in month 13 and escalates annually at approximately 2.5 % . Lessee Accounting The Company acquired one property on March 9, 2022 that is subject to a non-cancelable, long-term ground lease where a third party owns the underlying land and has leased the land to the Company. Accordingly, the Company owns only a long-term leasehold in this property. This ground lease expires in 2084 including those options the Company deems probable of exercising. The ground lease expense is recognized on a straight-line basis over the term of the lease, including management's estimate of expected option renewal periods. Operating lease expense was approximately $ 93,762 and $ 93,762 for the three months ended March 31, 2024 and 2023 , respectively. There are no variable lease expenses required to be paid by the Company as lessee per the lease terms. Cash paid for amounts included in the measurement of the lease liability, net was $ 60,244 and $ 58,175 for the three months ended March 31, 2024 and 2023, respectively. The following table summarizes the undiscounted future cash flows for subsequent years ending December 31 attributable to the lease liability as of March 31, 2024 and provides a reconciliation to the lease liability included in the accompanying Consolidated Balance Sheets as of March 31, 2024. As of March 31, 2024 2024 (9 months remaining) 183,058 2025 245,111 2026 245,111 2027 245,111 2028 245,111 Thereafter 21,575,533 Total undiscounted liability $ 22,739,035 Present value discount ( 16,311,996 ) Lease liability $ 6,427,039 Discount rate 4.58 % Term Remaining 60 years |
Non-Controlling Interests
Non-Controlling Interests | 3 Months Ended |
Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests | Note 6 – Non-Controlling Interests Redeemable Non-Controlling Interests (Temporary Equity) Operating Unit Holders LMB Owenton I LLC As part of the Company’s acquisition of one property on January 14, 2022 for approximately $ 2,264,00 0 in Tampa, FL, the Operating Partnership entered into a contribution agreement with LMB Owenton I LLC that resulted in the issuance of 110,957 GIP LP Units at $ 10.00 per share for a total value of $ 1,109,570 . After 24 months, the contribution agreement allows for the investor to require the Operating Partnership to redeem, all or a portion of its units for either (i) the Redemption Amount (within the meaning of the Partnership Agreement), or (ii) until forty nine (49) months from date of Closing, cash in an agreed-upon Value (within the meaning of the Partnership Agreement) of $ 10.00 per share. As such, the Company has determined this equity should be classified as temporary equity at redemption value. On February 7, 2023, the Operating Partnership entered into a Unit Issuance Agreement and Amendment to Contribution and Subscription Agreement with LMB Owenton I LLC in which the Operating Partnership and LMB Owenton I LLC agreed to delay the Contributor’s right to require the redemption of the Contributor’s GIP LP Units in the Operating Partnership until after 36 months on January 14th, 2025 and for a reduced redemption price of $ 7.15 per GIP LP Unit. Such agreement was made in consideration of the issuance to LMB Owenton I LLC of an additional 44,228 GIP LP Units in the Operating Partnership, resulting in Contributor owning an aggregate of 155,185 GIP LP Units in the Operating Partnership at redemption value of $ 1,109,570 as of March 31, 2024. Norfolk, VA Partnership As part of the Company’s acquisition of two properties for approximately $ 19,134,400 on September 30, 2019 in Norfolk, Virginia, the "Norfolk, Virginia properties", the Operating Partnership entered into contribution agreements with two entities (Greenwal, L.C. and Riverside Crossing, L.C.) that resulted in the issuance of 349,913 common units in the Operating Partnership at $ 20.00 per share for a total value of $ 6,998,251 . Greenwal, L.C and Riverside Crossing, L.C. have since been dissolved and the common units were then directly owned by the former members of the two entities. Beginning on the first anniversary of the closing, the contribution agreements allowed for the two investors to require the Operating Partnership to redeem all or a portion of its units for either (i) the Redemption Amount (within the meaning of the Operating Partnership’s Partnership Agreement), or (ii) until forty-nine (49) months from date of closing, cash in an agreed-upon Value (within the meaning of the Operating Partnership’s Partnership Agreement) of $ 20.00 per share, as set forth on the Notice of Redemption. As such, the Company has determined their equity should be classified as a temporary equity at redemption value. On March 21, 2022, the Company received notice from an Operating Partnership common unit holder to redeem 10,166 units at $ 20.00 per unit for a total of $ 203,326 and paid the unit holder on June 24, 2022. On April 25, 2022, the Company received notice from another Operating Partnership common unit holder to redeem 10,166 units at $ 20 per unit for a total of $ 203,326 and paid the unit holder on July 25, 2022. On July 20, 2022, the Company received a notice of redemption from an Operating Partnership common unit holder exercising his right to redeem 25,000 units at $ 20 per unit and such notice further stated the unit holder’s intent to redeem his remaining 180,615 units in the Operating Partnership before October 31, 2023. On August 9, 2022, the Company and Operating Partnership entered a Redemption Agreement with the unit holder providing for the revocation of his July 2022 redemption notice and providing that the his common units in the Operating Partnership would be redeemed by the Operating Partnership as follows: (i) on or before September 15, 2022, 16,250 of the units would be redeemed for an aggregate of $ 325,000 in cash (which is $ 20 per unit, as provided in the applicable Contribution Agreements) and 60,000 of the units would be redeemed in exchange for the issuance of 200,000 shares of the Company’s common stock, and (ii) the remaining 129,365 units would be redeemed for $ 20 per unit in cash in one tranche of 16,250 units on March 15, 2023 and five tranches of 22,623 units each on September 15, 2023, March 15, 2024, June 15, 2024, September 15, 2024, and December 15, 2024. As such, the Company recorded an other payable - related party in the amount of $ 2,912,300 upon execution of the Redemption Agreement entered into August 9, 2022 and continue to pay unit distributions on current units outstanding. In accordance with the Redemption Agreement the Company has made payments of $ 1,554,920 to date, reducing the current balance of the other payable - related party to $ 1,357,380 as of March 31, 2024. Additionally, on September 12, 2022, the Company issued 200,000 shares of common stock at $ 6.00 per share in accordance with the Redemption Agreement. On January 27, 2023, the remaining two partners from this original transaction redeemed a total of 123,965 units at $ 20 per unit in the aggregate amount of $ 2,479,299 and the Company funded the redemption obligations per the terms of the contribution agreement on February 9, 2023 using proceeds from new preferred equity agreements with Brown Family Enterprises, LLC. In the year ended December 31, 2023, we accrued approximately $ 506,000 relating to the potential reimbursement of federal, state and local income taxes incurred by a remaining partner in one of our partnerships pursuant to tax protection agreement and is included in Accrued Expense - Related Party on the face of the balance sheet and the balance remained unchanged as of March 31, 2024. Preferred Equity Partners Brown Family Trust and Brown Family Enterprises, LLC As part of the Company’s acquisition of a property for approximately $ 1,737,800 in Manteo, NC, one of the Company’s operating subsidiaries entered into a preferred equity agreement with Brown Family Trust on February 11, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $ 500,000 . The Operating Partnership is the general manager of the subsidiary while Brown Family Trust is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 9% internal rate of return ("IRR") on a monthly basis. After 24 months, the Brown Family Trust has the right to redeem and the Operating Partnership has the right to call the preferred equity at redemption value. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. On August 10, 2023, the Company exercised its right to call the preferred equity at redemption value and redeemed the preferred equity upon payment of the original capital contribution plus accrued and deferred interest. On February 8, 2023, the Operating Partnership entered into new Amended and Restated Limited Liability Company Agreements for the Norfolk, Virginia properties, GIPVA 2510 Walmer Ave, LLC ("GIPVA 2510") and GIPVA 130 Corporate Blvd, LLC ("GIPVA 130"), in which the Operating Partnership, as the sole member of GIPVA 2510 and GIPVA 130, admitted a new preferred member, Brown Family Enterprises, LLC, through the issuance of preferred membership interests in the form of Class A Preferred Units of GIPVA 2510 and GIPVA 130. GIPVA 2510 and GIPVA 130 (the “Virginia SPEs”) hold the Company’s Norfolk, Virginia properties. In addition, both of the Virginia SPEs and Brown Family Enterprises, LLC entered into Unit Purchase Agreements in which GIPVA 2510 issued and sold 180,000 Class A Preferred Units at a price of $ 10.00 per unit for an aggregate price of $ 1,800,000 , and GIPVA 130 issued and sold 120,000 Class A Preferred Units at a price of $ 10.00 per unit for an aggregate price of $ 1,200,000 . The Operating Partnership is the general manager of the subsidiary while Brown Family Enterprises, LLC is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 7% IRR paid on a monthly basis and will share in 16% of the equity in each of the Virginia SPEs upon a capital transaction resulting in distributable proceeds. After 24 months, Brown Family Enterprises, LLC has the right to redeem the preferred equity at redemption value. Because of the redemption right, the non-controlling interest is presented as temporary equity at an aggregated redemption value of $ 3,000,000 as of March 31, 2024. Irby Prop Partners As part of the Company’s acquisition of a property for approximately $ 1,757,300 in Plant City, FL, one of the Company’s operating subsidiaries entered into a preferred equity agreement with Irby Prop Partners on April 21, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $ 950,000 . The Operating Partnership is the general manager of the subsidiary while Irby Prop Partners is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 12 % total IRR of which 8 % IRR is paid on a monthly basis and 4% IRR is deferred. After 24 months, Irby Prop Partners has the right to redeem the preferred equity at redemption value plus any deferred interest accrued and the Operating Partnership has the right to call the preferred equity at redemption value. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. On August 10, 2023, the Company exercised its right to call the preferred equity at redemption value and redeemed the preferred equity upon payment of the original capital contribution plus accrued and deferred interest. Richard Hornstrom As part of the Company’s investment in a tenancy-in-common for approximately $ 724,800 in Rockford, IL, one of the Company’s operating subsidiaries entered into a preferred equity agreement with Richard Hornstrom on August 2, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $ 650,000 . The Operating Partnership is the general manager of the subsidiary while Richard Hornstrom is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 12 % total IRR of which 8 % IRR is paid on a monthly basis and 4% IRR is deferred. After 24 months, Richard Hornstrom has the right to redeem the preferred equity at redemption value plus any deferred interest accrued and the Operating Partnership has the right to call the preferred equity at redemption value. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. On August 10, 2023, the Company exercised its right to call the preferred equity at redemption value and redeemed the preferred equity upon payment of the original capital contribution plus accrued and deferred interest. LC2-NNN Pref, LLC In connection with the acquisition of the Modiv Portfolio, the Operating Partnership and LC2 entered into an Amended and Restated Limited Liability Company Agreement for GIP SPE (the “GIP SPE Operating Agreement”) pursuant to which LC2 made a $ 12.0 million initial capital contribution to GIP SPE, together with a commitment to make an additional $ 2.1 million contribution upon the satisfactory completion of the acquisition of a tenant-in-common interest held by a third party in the Company’s Rockford, Illinois property (the “LC2 Investment”). The Company completed the acquisition of such tenant-in-common interest on September 7, 2023, for a purchase price of $ 1.3 million and LC2 made the additional $ 2.1 million capital contribution on September 11, 2023. LC2 made the LC2 Investment in exchange for a preferred equity interest in GIP SPE (the “Preferred Interest”). The Preferred Interest has a cumulative accruing distribution preference of 15.5% per year, compounded monthly, a portion of which in the amount of 5% per annum (compounded monthly) is deemed to be the “current preferred return,” and the remainder of which in the amount of 10.5% per annum (compounded monthly) is deemed to be the “accrued preferred return.” The GIP SPE operating agreement provides that operating distributions by GIP SPE will be made first to LC2 to satisfy any accrued but unpaid current preferred return, with the balance being paid to the Operating Partnership, unless the “annualized debt yield” of GIP SPE is less than 10%, in which case the balance will be paid to LC2. For this purpose, “annualized debt yield” is calculated as the sum of senior debt and LC2 Investment divided by the trailing three-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) of GIP SPE. The GIP SPE Operating Agreement also provides that distributions from capital transactions will be paid first to LC2 to satisfy any accrued but unpaid preferred return, then to LC2 until the “Make-Whole Amount” (defined as the amount equal to 1.3 times the LC2 Investment) is reduced to zero, and then to the Operating Partnership. The Preferred Interest is required to be redeemed in full by the Company on or before August 10, 2025 for a redemption amount equal to the greater of (i) the amount of the LC2 Investment plus the accrued preferred return, and (ii) the Make-Whole Amount. Upon a failure to timely redeem the Preferred Interest, the preferred return will accrue at an increased rate of 18% per annum, compounded monthly. The Company will have the right to extend the Mandatory Redemption Date for two consecutive 12-month extension periods, provided that (i) LC2 is paid an extension fee of 0.01% of the outstanding amount of the LC2 Investment for each such extension, (ii) the preferred return is increased from 15.5% to 18% of which the accrued preferred return is increased from 10.5% to 13%, (iii) the trailing 6-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) is in excess of $5.0 million, (iv) GIP SPE and its subsidiaries’ senior debt is extended through the end of the extension period, and there are no defaults under the GIP SPE Operating Agreement. Under the GIP SPE Operating Agreement, GIP SPE is also required to pay to Loci Capital, an affiliate of LC2, an equity fee of 1.5% of the LC2 Investment, with 1% having been paid upon the execution and delivery of the GIP SPE Operating Agreement and the 0.5 % payable upon redemption of the LC2 Investment. Due to the redemption right, the Preferred Interest is presented as temporary equity at redemption value of $ 14,100,000 plus accrued but unpaid preferred interest of $ 1,288,726 as of March 31, 2024. Each of the preferred members described above may redeem their interest on or after the Redemption date (second year anniversary of the closing of the acquisition), at the discretion of such preferred member, as applicable, all or a portion thereof, of such preferred member’s pro-rata share of the redemption value in the form of the units of the Operating Partnership ("GIP LP Units"). Such GIP LP Units shall be subject to all such restrictions, such as with respect to transferability, as reasonably imposed by the Operating Partnership. The number of GIP LP Units issued to any preferred member shall be determined by dividing the total amount of the redemption value that such preferred member shall receive in GIP LP Units by a 15 % discount of the average 30-day market price of Generation Income Properties, Inc. common stock. GIP LP Units shall then be convertible into common stock of Generation Income Properties, Inc. on a 1:1 basis in accordance with the partnership agreement of the Operating Partnership. Additionally, the Operating Partnership has the right to redeem the preferred equity at redemption value with cash after the second year anniversary of the closing of the acquisition. Non-Controlling Interest (Permanent Equity) As part of the Company’s acquisition of one property on November 30, 2020 for $ 1,847,700 in Tampa, FL, the Operating Partnership entered into a contribution agreement with GIP Fund 1, LLC that resulted in the issuance of 24,309 GIP LP Units in the Operating Partnership at $ 20.00 per share for a total value of $ 486,180 . At the time of the acquisition, the Company’s President owned 11 % of GIP Fund 1. GIP Fund 1 has since been dissolved and the GIP Units are now directly owned by the former members of GIP Fund 1. After 12 months, the contribution agreement allows for the former members of GIP Fund 1 to require the Operating Partnership to redeem, all or a portion of its GIP LP Units for common stock of the Company. As such, the Company has determined their equity should be classified as a Non-controlling interest. Following these transactions as of March 31, 2024 , the Company owned 95.3 % of the common units in the Operating Partnership and outside investors owned 4.7 %. The following table reflects the Company's redeemable non-controlling interests and non-controlling interest during the three months ended March 31, 2024 and 2023: Brown Family Trust and Brown Family Enterprises, LLC Irby Prop Partners Richard Hornstrom LMB Owenton I LLC GIP LP (Former Greenwal, L.C. and Riverside Crossing, L.C. Members) LC2-NNN Pref, LLC Total Redeemable Non-Controlling Interests Non-Controlling Interests - Former GIP Fund 1 Members Balance, December 31, 2022 $ 500,000 $ 1,014,748 $ 686,114 $ 1,109,570 $ 2,479,299 $ - $ 5,789,731 $ 445,035 Issuance of Redeemable Non-Controlling Interests 3,000,000 - - - - - 3,000,000 - Redemption of Redeemable Non-Controlling Interests - - - - ( 2,479,299 ) - ( 2,479,299 ) - Distribution on Non-Controlling Interests ( 46,346 ) ( 19,000 ) ( 13,000 ) ( 18,135 ) ( 19,336 ) - ( 115,817 ) ( 2,844 ) Net income (loss) for the quarter 46,346 28,681 19,624 18,135 19,336 - 132,122 ( 4,908 ) Balance, March 31, 2023 $ 3,500,000 $ 1,024,429 $ 692,738 $ 1,109,570 $ - $ - $ 6,326,737 $ 437,283 Balance, December 31, 2023 $ 3,000,000 $ - $ - $ 1,109,570 $ - $ 14,702,853 $ 18,812,423 $ 406,131 Distribution on Non-Controlling Interests ( 52,500 ) - - ( 18,157 ) ( 9,705 ) ( 187,471 ) ( 267,833 ) ( 2,844 ) Net income (loss) for the quarter 52,500 - - 18,157 9,705 873,344 953,706 ( 7,582 ) Balance, Match 31, 2024 $ 3,000,000 $ - $ - $ 1,109,570 $ - $ 15,388,726 $ 19,498,296 $ 395,705 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Note 7 – Equity Authorized Equity The Company is authorized to issue up to 100,000,000 shares of common stock and 10,000,000 shares of preferred stock of which 2,400,000 were designated as Series A Preferred Stock. Holders of the Company’s common stock are entitled to receive dividends when authorized by the Company’s Board of Directors. In January 2024, the Company redeemed all 2,400,000 shares of its Series A Preferred Stock from its preferred shareholders, Modiv and their affiliates, and exchanged them for 2,794,597 shares of common stock. Issuance of Equity Securities For the three months ended March 31, 2024, the Company recorded approximately $ 27,946 to common stock and $ 11,609,670 to additional paid-in capital related to the redemption and exchange of all 2,400,000 shares of the Series A Preferred Stock shares for 2,794,597 common stock shares. Additionally, the Company recorded approximately $ 61,938 of stock issuance costs to additional paid-in capital for registration and legal counsel costs incurred to issue the new common stock shares exchanged for the Series A Preferred Stock shares. In January 2024, the Company declared and paid final preferred stock dividends of $95,000 to holders of its Series A Preferred Stock shares. In January 2024, the Company also paid another $95,000 dividend declared in December 2023 and accrued as of December 31, 2023. Warrants Private Placement Warrants On April 25, 2019, the Company raised $ 1,000,000 by issuing 50,000 Units with each Unit being comprised of one share of its Common Stock and one warrant to purchase one share of its common stock. Each Unit was sold for a price of $ 20.00 per Unit. The shares of the Company’s common stock and warrants included in the Units, were offered together, but the securities included in the Units are issued separately. The warrants are exercisable at a price of $ 20.00 per share of common stock, subject to adjustment in certain circumstances, and will expire seven years from the date of issuance. On November 13, 2020, the Company raised $ 1,000,000 by issuing 50,000 Units with each Unit being comprised of one share of its Common Stock and one warrant to purchase one share of its common stock. Each Unit was sold for a price of $ 20.00 per Unit. The shares of the Company’s common stock and warrants included in the Units, were offered together, but the securities included in the Units are issued separately. The warrants are exercisable at a price of $ 20.00 per share of common stock, subject to adjustment in certain circumstances, and will expire seven years from the date of issuance. Investor Warrants On September 8, 2021, the Company issued and sold, in an underwritten public offering (the “Public Offering”), 1,500,000 Units, with each unit consisting of one share of common stock, and one warrant to purchase one share of common stock (the “Investor Warrants”). On September 30, 2021, the Company issued and sold an additional 165,000 Investor Warrants as part of the underwriter’s Over-Allotment Option. The Investor Warrants issued in the offering entitle the holder to purchase one share of common stock at a price equal to $ 10.00 for a period of five years. Investor Warrants may be exercised on a cashless basis if there is no effective registration statement available for the resale of the shares of common stock underlying such warrants. In addition, after 120 days after the Investor Warrants are issued, any Investor Warrant may be exercised on a cashless basis for 10 % of the shares of common stock underlying the Investor Warrant if the volume-weighted average trading price of the Company’s shares of common stock on Nasdaq was at any time below the then-effective exercise price of the Investor Warrant for 10 consecutive trading days. During the Three months ended March 31, 2024 , 45,510 Investor Warrants were exercised on a cashless basis resulting in the issuance of 4,551 shares of common stock. During the three months ended March 31, 2023, 106,480 Investor Warrants were exercised on a cashless basis resulting in the issuance of 10,648 shares of common stock. See Note 11 Subsequent Events for Investor Warrants exercised after March 31, 2024. Representative Warrants In addition, the Company issued to Maxim Group LLC (or its designee) warrants to purchase an aggregate of 149,850 shares of common stock, which is equal to an aggregate of 9% of the number of shares of common stock sold in the Public Offering (the “Representative’s Warrants”). The Representative’s Warrants have an exercise price equal to $12.50, may be exercised on a cashless basis and became exercisable six months following the closing date and until September 2, 2026. The Company has 852,690 and 996,420 warrants outstanding and exercisable as of March 31, 2024 and March 31, 2023, respectively, as summarized below. Investor Warrants issued on September 8 and 30, 2021 became exercisable on a cashless basis on January 6 and 28, 2022, respectively. As of March 31, Issue Date 2024 April 25, 2019 at an exercise price of $ 20.00 50,000 November 13, 2020 at an exercise price of $ 20.00 50,000 September 8, 2021 at an exercise price of $ 10.00 437,840 September 8, 2021 at an exercise price of $ 12.50 135,000 September 30, 2021 at an exercise price of $ 10.00 165,000 September 30, 2021 at an exercise price of $ 12.50 14,850 852,690 Warrants Weighted Average Price Weighted Average Remaining Life As of December 31, 2023 898,200 $ 11.53 2.7 Exercised ( 45,510 ) 10.00 As of March 31, 2024 852,690 $ 11.61 2.5 Warrants exercisable 852,690 $ 11.61 2.5 Warrants Weighted Average Price Weighted Average Remaining Life As of December 31, 2022 1,102,900 $ 11.25 3.7 Exercised ( 106,480 ) 10.00 As of March 31, 2023 996,420 $ 11.38 3.5 Warrants exercisable 996,420 $ 11.38 3.5 There was no intrinsic value for the warrants as of March 31, 2024 or March 31, 2023. Stock Compensation Generation Income Properties, Inc. 2020 Omnibus Incentive Plan In connection with the Public Offering, the Company's Board of Directors adopted and stockholders approved, the Generation Income Properties, Inc. 2020 Omnibus Incentive Plan (the “Omnibus Incentive Plan”), which became effective upon the completion of the Public Offering. The Omnibus Incentive Plan reserves 2.0 million shares of common stock for stock options, stock appreciation rights, performance shares, performance units, shares of common stock, restricted stock, restricted stock units, cash incentive awards, dividend equivalent units, or any other type of award permitted under the Omnibus Incentive Plan. As of March 31, 2024 , 158,840 shares had been granted under the Omnibus Incentive Plan. Restricted Common Shares issued to the Board and Employees • On January 6, 2022, the board approved grants of 47,142 restricted shares to directors, officers and employees effective March 1, 2022 valued at $ 7.00 per share that vest annually over 1 year . The vested share restrictions will be removed upon the first annual anniversary of the award. The 47,142 restricted shares were issued to the directors, officers and employees in March 2022. • On April 12, 2022, the board approved grants of 357 restricted shares to a non-employee for chaplain services rendered effective April 16, 2022 valued at $ 7.06 per share that vest over 1 year. The vested share restrictions will be removed upon the first annual anniversary of the award. The 357 restricted shares were issued in April 2022. • On December 8, 2022, the board approved grants of 98,593 restricted shares to directors, officers and employees effective March 1, 2023 valued at $ 5.68 per share that vest annually over 3 years . The vested share restrictions will be removed upon the first annual anniversary of the award. The 98,593 restricted shares were issued to the directors, officers and employees in March 2023. The following is a summary of restricted shares for the three months ended March 31, 2024 and 2023: 2024 2023 Number of Shares Outstanding at beginning of period 91,516 58,502 Restricted Shares Issued - 98,593 Restricted Shares Vested ( 34,888 ) ( 45,857 ) Number of Shares Outstanding at end of period 56,628 111,238 The Company recorded stock based compensation expense of $ 94,935 and $ 90,648 during the three months ended March 31, 2024 and 2023, respectively. Cash Distributions While the Company is under no obligation to do so, the Company expects to continue to declare and pay distributions to its common stockholders and Operating Partnership unit holders for the foreseeable future. The issuance of a distribution will be determined by the Company's board of directors based on the Company's financial condition and such other factors as the Company's board of directors deems relevant. The Company has not established a minimum distribution, and the Company's charter does not require that the Company issue distributions to its stockholders other than as necessary to meet REIT qualification standards. The following is a summary of monthly distributions to common stockholders and Operating Partnership unit holders: Authorized Date Record Date Per Share/Unit January 3, 2024 March 15, 2024 $ 0.039 January 3, 2024 February 14, 2024 $ 0.039 January 3, 2024 January 15, 2024 $ 0.039 October 3, 2023 December 15, 2023 $ 0.039 October 3, 2023 November 15, 2023 $ 0.039 October 3, 2023 October 15, 2023 $ 0.039 July 3, 2023 September 15, 2023 $ 0.039 July 3, 2023 August 15, 2023 $ 0.039 July 3, 2023 July 15, 2023 $ 0.039 April 3, 2023 June 15, 2023 $ 0.039 April 3, 2023 May 15, 2023 $ 0.039 April 3, 2023 April 15, 2023 $ 0.039 January 3, 2023 March 15, 2023 $ 0.039 January 3, 2023 February 15, 2023 $ 0.039 January 3, 2023 January 15, 2023 $ 0.039 |
Mortgage Loans
Mortgage Loans | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Mortgage Loans | Note 8 – Mortgage Loans The Company had the following mortgage loans outstanding as of March 31, 2024 and December 31, 2023, respectively: Occupying Tenant Location Original Loan Amount Interest Rate Maturity Date 3/31/2024 12/31/2023 Debt Service Coverage Ratios ("DSCR") Required 7-Eleven Corporation & Starbucks Corporation Washington, D.C., Tampa, FL, and Huntsville, AL $ 11,287,500 (a) 4.17 % 3/6/2030 $ 10,705,459 $ 10,757,239 1.25 General Services Administration-Navy & Vacant Unit Norfolk, VA 8,260,000 3.50 % 9/30/2024 7,281,369 7,341,804 1.25 PRA Holdings, Inc. Norfolk, VA 5,216,749 3.50 % 10/23/2024 4,520,121 4,562,722 1.25 Sherwin Williams Company Tampa, FL 1,286,664 3.72 % (b) 8/10/2028 1,278,844 1,286,664 1.20 General Services Administration-FBI Manteo, NC 928,728 (c) 3.85 % (d) 3/31/2032 908,118 913,958 1.50 Irby Construction Plant City , FL 928,728 (c) 3.85 % (d) 3/31/2032 908,118 913,958 1.50 La-Z-Boy Inc. Rockford, IL 2,100,000 3.85 % (d) 3/31/2032 2,053,584 2,066,604 1.50 Best Buy Co., Inc. Grand Junction, CO 2,552,644 (c) 3.85 % (d) 3/31/2032 2,495,997 2,512,050 1.50 Fresenius Medical Care Holdings, Inc. Chicago, IL 1,727,108 (c) 3.85 % (d) 3/31/2032 1,688,781 1,699,642 1.50 Starbucks Corporation Tampa, FL 1,298,047 (c) 3.85 % (d) 3/31/2032 1,269,241 1,277,404 1.50 Kohl's Corporation Tucson, AZ 3,964,745 (c) 3.85 % (d) 3/31/2032 3,878,651 3,901,694 1.50 City of San Antonio (PreK) San Antonio, TX 6,444,000 (e) 7.47 % (b) 8/10/2028 6,394,286 6,416,362 1.50 Dollar General Market Bakersfield, CA 2,428,000 (e) 7.47 % (b) 8/10/2028 2,409,212 2,417,587 1.50 Dollar General Big Spring, TX 635,000 (e) 7.47 % (b) 8/10/2028 630,086 632,277 1.50 Dollar General Castalia, OH 556,000 (e) 7.47 % (b) 8/10/2028 551,698 553,615 1.50 Dollar General East Wilton, ME 726,000 (e) 7.47 % (b) 8/10/2028 720,382 722,886 1.50 Dollar General Lakeside, OH 567,000 (e) 7.47 % (b) 8/10/2028 562,612 564,568 1.50 Dollar General Litchfield, ME 624,000 (e) 7.47 % (b) 8/10/2028 619,171 621,324 1.50 Dollar General Mount Gilead, OH 533,000 (e) 7.47 % (b) 8/10/2028 528,876 530,714 1.50 Dollar General Thompsontown, PA 556,000 (e) 7.47 % (b) 8/10/2028 551,698 553,615 1.50 Dollar Tree Stores, Inc. Morrow, GA 647,000 (e) 7.47 % (b) 8/10/2028 641,993 644,225 1.50 exp U.S. Services Inc. Maitland, FL 2,950,000 (e) 7.47 % (b) 8/10/2028 2,927,172 2,937,348 1.50 General Services Administration Vacaville, CA 1,293,000 (e) 7.47 % (b) 8/10/2028 1,282,995 1,287,454 1.50 Walgreens Santa Maria, CA 3,041,000 (e) 7.47 % (b) 8/10/2028 3,015,430 3,027,958 1.50 $ 60,550,913 $ 57,823,894 $ 58,143,672 Less Debt Discount, net ( 383,446 ) ( 383,767 ) Less Debt Issuance Costs, net $ ( 895,136 ) $ ( 942,595 ) 56,545,312 56,817,310 (a) Loan subject to prepayment penalty (b) Fixed via interest rate swap (c) One loan in the amount of $ 11.4 million secured by six properties and allocated to each property based on each property's appraised value. (d) Adjustment effective April 1, 2027 equal to 5-year Treasury plus 2.5 % and subject to a floor of 3.85 % (e) One loan in the amount of $21.0 million secured by 13 properties and allocated to each property based on each property's appraised value. The Company amortized debt issuance costs and debt discount during the three months ended March 31, 2024 and 2023 to interest expense of approximately $ 47,780 and $ 28,865 , respectively. The Company did no t pay any debt issuance costs during the three months ended March 31, 2024 and 2023. Each mortgage loan requires the Company to maintain certain debt service coverage ratios as noted above. In addition, two mortgage loans, one encumbered by six properties and requiring a 1.50 DSCR, and another stand alone mortgage loan requiring a 1.50 DSCR, require the Company to maintain a 54 % loan to fair market stabilized value ratio. Fair market stabilized value shall be determined by the lender by reference to acceptable guides and indices or appraisals from time to time at its discretion. As of March 31, 2024, the Company was in compliance with all covenants with the exception of one project level DSCR covenant for 2510 Walmer Ave. Our Bayport Credit Union loan covenant requires project level, property level and portfolio level DSCR minimum testing. At the project-level, 2510 Walmer Ave tested at a 1.17:1 DSCR, compared with the 1.25:1 project level minimum DSCR, driven by its vacancy since January 2023. According to the governing loan document, failing to meet DSCR coverage requirements is a technical default triggering the risk of forfeiture of the property, accelerating the repayment of the remaining outstanding balance of the loan at the lender's discretion. All other DSCR covenants tested compliant and the lender has indicated no intention of action. Additionally, a new lease was executed for 2510 Walmer Ave. on March 28, 2024 and will restore the property to full occupancy upon commencement on May 1, 2024. On April 1, 2022, the Company entered into two mortgage loan agreements with an aggregate balance of $ 13.5 million to refinance seven of the Company's properties. The loan agreements consist of one loan in the amount of $ 11.4 million secured by six properties and allocated to each property based on each property's appraised value, and one loan in the amount of $ 2.1 million on the property previously held in the tenancy-in-common investment at an interest rate of 3.85 % from April 1, 2022 through and until March 31, 2027. In conjunction with the LC2 Investment to purchase the remaining interest in the tenancy-in-common interest discussed above, the Company assumed the original $ 2.1 million loan on the property with a remaining balance of $ 2,079,178 and recognized a discount of $ 383,767 . Effective April 1, 2027 and through the maturity date of March 31, 2032, the interest rate adjusts to the 5-year Treasury plus 2.5 % and is subject to a floor of 3.85 %. The Company’s CEO entered into a guarantee agreement pursuant to which he guaranteed the payment obligations under the promissory notes if they become due as a result of certain “bad-boy” provisions, individually and on behalf of the Operating Partnership. On August 10, 2023, GIP13, LLC, a Delaware limited liability company and wholly owned subsidiary of GIP SPE ("GIP Borrower"), entered into a Loan Agreement with Valley pursuant to which Valley made a loan to the Company in the amount of $ 21.0 million to finance the acquisition of the Modiv Portfolio. The outstanding principal amount of the loan bears interest at an annual rate for each 30-day interest period equal to the compounded average of the secured overnight financing rate published by Federal Reserve Bank of New York for the thirty-day period prior to the last day of each 30-day interest rate for the applicable interest rate period plus 3.25 %, with interest payable monthly after each 30-day interest period. However, the Company entered into an interest rate swap to fix the interest rate at 7.47 % per annum. Payments of interest and principal in the amount of approximately $ 156,000 are due and payable monthly, with all remaining principal and accrued but unpaid interest due and payable on a maturity date of August 10, 2028. The loan may generally be prepaid at any time without penalty in whole or in part, provided that there is no return of loan fees and prepaid financing fees. The loan is secured by first mortgages and assignments of rents in the properties comprising the Modiv Portfolio and eight other properties held by subsidiaries of GIP SPE that had outstanding loans with Valley. All of the mortgaged properties cross collateralize the loan, and the loan is guaranteed by the Operating Partnership and the subsidiaries of the Company that hold the properties that comprise the Modiv Portfolio. The loan agreement also provides for customary events of default and other customary affirmative and negative covenants that are applicable to GIP Borrower and its subsidiaries, including reporting covenants and restrictions on investments, additional indebtedness, liens, sales of properties, certain mergers, and certain management changes. The Company's President and CEO also entered into a personal, full recourse guarantee with a $ 7,500,000 cap. The Company’s President and CEO also has personally guaranteed the repayment of the $ 10.7 million due under the 7-11 - Washington, DC; Starbucks - South Tampa, FL; vacant - Huntsville, AL loan as well as the $ 1.3 million loan secured by the Company's Sherwin-Williams - Tampa, FL property. In addition, the Company’s President and CEO has provided a guaranty of the Company’s nonrecourse carveout liabilities and obligations in favor of the lender for the GSA and PRA Holdings, Inc. - Norfolk, VA mortgage loans ("Bayport loans") with an aggregate principal amount of $ 11.8 million. During the three months ended March 31, 2024 and 2023 the Company incurred a guaranty fee expense to the Company's CEO of $ 97,898 and 60,493 , respectively, recorded to interest expense. In January 2024 the Company paid $ 385,395 to the CEO for guaranty fees from July 2023 through June 2024 of which $ 96,360 remained unamortized and is included in Prepaid guaranty fees – related party on the Consolidated Balance Sheets as of March 31, 2024. On August 9, 2022 the Company and Operating Partnership entered a Redemption Agreement with a unit holder. As such, the Company recorded an Other payable - related party in the amount of $ 2,912,300 upon execution of the Redemption Agreement entered into July 20, 2022 and has made payments to date totaling $ 1,554,920 as of March 31, 2024 with a remaining balance of $ 1,357,380 and $ 1,809,840 outstanding as of March 31, 2024 and December 31, 2023, respectively. On October 14, 2022, the Company entered into a loan transaction that is evidenced by a secured non-convertible promissory note to Brown Family Enterprises, LLC, a preferred equity partner and therefore a related party, for $ 1,500,000 that is due on October 14, 2024, and bears a fixed interest rate of 9 %, simple interest. Interest is payable monthly. The loan may be repaid without penalty at any time. The loan is secured by the Operating Partnership’s equity interest in its current direct subsidiaries that hold real estate assets pursuant to the terms of a security agreement between the Operating Partnership and Brown Family Enterprises, LLC. On July 21, 2023, the Company amended and restated the promissory note to reflect an increase in the loan to $ 5.5 million and extend the maturity date thereof from October 14, 2024 to October 14, 2026. Except for the increase in the amount of the Loan and Note and the extension of the maturity date thereof, no changes were made to the original note. Minimum required principal payments on the Company’s debt for subsequent years ending December 31 are as follows: Mortgage Loans Other Payable - Related Party Loan Payable - Related Party Total as of March 31, 2024 2024 (9 months remaining) 12,459,324 1,357,380 - 13,816,704 2025 926,633 - - 926,633 2026 976,467 - 5,500,000 6,476,467 2027 1,033,322 - - 1,033,322 2028 21,341,791 - - 21,341,791 Thereafter 21,086,357 - - 21,086,357 $ 57,823,894 $ 1,357,380 $ 5,500,000 $ 64,681,274 |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party | Note 9 – Related Party As disclosed previously, on August 9, 2022 the Company and Operating Partnership entered a Redemption Agreement with a unit holder. As such, the Company recorded an other payable - related party in the amount of $ 2,912,299 upon execution of the Redemption Agreement entered into July 20, 2022 and has made payments to date totaling $ 1,554,920 with a remaining balance of $ 1,357,380 outstanding as of March 31, 2024 . Additionally, the Company issued 200,000 shares of common stock at $ 6.00 per share in accordance with the Redemption Agreement, and recorded the stock at par value of $ 2,000 with the remaining $ 1,198,000 to additional paid in capital. As disclosed previously, on October 14, 2022, the Company entered into a loan transaction that is evidenced by a secured non-convertible promissory note to Brown Family Enterprises, LLC, a preferred equity partner and therefore a related party, for $ 1,500,000 that is due on October 14, 2024, and bears a fixed interest rate of 9 %, simple interest. Interest is payable monthly. The loan may be repaid without penalty at any time. The loan is secured by the Operating Partnership’s equity interest in its current direct subsidiaries that hold real estate assets pursuant to the terms of a security agreement between the Operating Partnership and Brown Family Enterprises, LLC. On July 21, 2023, the Company amended and restated the promissory note to reflect an increase in the loan to $ 5.5 million and extend the maturity date thereof from October 14, 2024 to October 14, 2026. Except for the increase in the amount of the Loan and Note and the extension of the maturity date thereof, no changes were made to the original note. 3,500 square foot building from GIP Fund 1, LLC a related party that was owned 11 % by the President and Chairman of the Company. The retail single tenant property (occupied by The Sherwin-Williams Company) in Tampa, Florida was acquired for approximately $ 1.8 million. Since acquisition, GIP Fund 1, LLC was dissolved and each partner was allocated units to GIP LP pro-rata effectively reducing the President and Chairman of the Company’s ownership to 0.09 % as of March 31, 2024. During the three months ended March 31, 2024 and 2023 the Company incurred a guaranty fee expense to the Company's CEO of $ 97,898 and 60,493 , respectively, recorded to interest expense. In January 2024 the Company paid $ 385,395 to the CEO for guaranty fees from July 2023 through June 2024 of which $ 96,360 remained unamortized and is included in Prepaid guaranty fees – related party on the Consolidated Balance Sheets as of March 31, 2024. See Note 8 – Debt for details of the guaranty provided by the Company's President and CEO. |
Derivative Financial Instrument
Derivative Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Fair Value Measurements | Note 10 – Derivative Financial Instruments and Fair Value Measurements On August 10, 2023, as previously disclosed, the Company entered into a loan agreement for $ 21.0 million to finance the acquisition of the Modiv Portfolio. The outstanding principal amount of the loan bears interest at an annual rate for each 30-day interest period equal to the compounded average of the secured overnight financing rate published by Federal Reserve Bank of New York for the thirty-day period prior to the last day of each 30-day interest rate for the applicable interest rate period plus 3.25 %, with interest payable monthly after each 30-day interest period. On the same date, the Company entered into corresponding swap agreement, fixing the interest rate at 7.47 % per annum. In November 2020, the Company entered into a $ 1.3 million loan agreement and corresponding swap agreement to support project financing. The outstanding principal amount of the loan bears interest at an annual rate for each 30-day interest period equal to the compounded average of the secured overnight financing rate published by Federal Reserve Bank of New York for the thirty-day period prior to the last day of each 30-day interest rate for the applicable interest rate period plus 2.75 %, with interest payable monthly after each 30-day interest period. The interest swap fixed the interest rate at 3.72 % per annum. The Company has not elected hedge accounting and has reported periodic changes in derivative valuations in Gain on derivative valuation, net for $ 380,550 for the three months ended March 31, 2024. As of March 31, 2024, the Company recognized a Derivative Liability of $ 169,942 and derivative asset of $ 148,710 , which was included in Escrow Deposits and Other assets on the face of the balance sheet. The fair value of the Company's interest rate derivatives is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. All inputs are considered Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts and estimated fair values of our financial instruments are as follows: March 31, 2024 December 31, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 1,655,820 $ 1,655,820 $ 3,117,446 $ 3,117,446 Restricted cash 34,500 34,500 34,500 34,500 Interest rate swaps 148,710 148,710 135,642 135,642 Financial liabilities: Interest rate swaps 169,942 169,942 537,424 537,424 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events On April 4, 2024 and May 3, 2024, we announced that our Board of Directors authorized a distribution of $ 0.039 per share monthly cash distribution for shareholders of record of our common stock as of April 15, 2024 and May 15, 2024, respectively. April distributions were paid on May 1, 2024 and we anticipate May distributions to be paid on or around May 31, 2024. The Operating Partnership common unit holders received the same distribution. Subsequent to March 31, 2024 but before the filing of this Quarterly Report on Form 10-Q, 23,000 Investor Warrants were exercised on a cashless basis for 10 % of the shares of Common Stock underlying the Investor Warrant, as the volume-weighted average trading price of the Company’s share s of Common Stock on Nasdaq was below the then-effective exercise price of the Investor Warrant for 10 consecutive trading days as of the date the Investor Warrants became exercisable. As such, 2,300 shares o f common stock were issued upon exercise. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the SEC on April 8, 2024. The results for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024. The preparation of the consolidated financial statements in conformity with U.S. GAAP. The Company adopted the calendar year as its basis of reporting. Certain immaterial prior year amounts have been reclassified for consistency with the current period presentation. |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Generation Income Properties, Inc. and the Operating Partnership and all of the direct and indirect wholly-owned subsidiaries of the Operating Partnership and the Company’s subsidiaries. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. The consolidated financial statements include the accounts of all entities in which the Company has a controlling interest. The ownership interests of other investors in these entities are recorded as non-controlling interests or redeemable non-controlling interest. Non-controlling interests are adjusted each period for additional contributions, distributions, and the allocation of net income or loss attributable to the non-controlling interests. Investments in entities for which the Company has the ability to exercise significant influence over, but does not have financial or operating control, are accounted for using the equity method of accounting. Accordingly, the Company’s share of the earnings (or losses) of these entities are included in consolidated net income or loss. |
Cash | Cash The Company considers all demand deposits, cashier’s checks and money market accounts to be cash equivalents. Amounts included in restricted cash represent funds owned by the Company related to tenant escrow reimbursements and immediate capital repair reserve. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Consolidated Statements of Cash Flows: As of March 31, As of December 31, 2024 2023 Cash and cash equivalents $ 1,655,820 $ 3,117,446 Restricted cash 34,500 34,500 Cash and cash equivalents and restricted cash $ 1,690,320 $ 3,151,946 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of commitments and contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change significantly if economic conditions were to weaken. |
Revenue Recognition | Revenue Recognition The Company leases real estate to its tenants under long-term net leases which the Company accounts for as operating leases. Those leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. In addition to straight-line rents, deferred rent liability includes $ 189,708 and $ 280,332 of prepaid rent as of March 31, 2024 and December 31, 2023, respectively. The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates, and economic conditions in the area where the property is located. In the event that uncollectability exists with respect to any tenant changes, the Company would recognize an adjustment to Rental income. The Company’s review of collectability of charges under its operating leases includes any accrued rental revenues related to the straight-line rents. There were no allowances for receivables recorded during three months ended March 31, 2024 or 2023. The Company’s leases provide for reimbursement from tenants for common area maintenance (“CAM”), insurance, real estate taxes and other operating expenses (“recoverable costs”). A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. The Company often recognizes above- and below-market lease intangibles in connection with acquisitions of real estate. The capitalized above- and below-market lease intangibles are amortized to rental income over the remaining term of the related leases. |
Stock-Based Compensation | Stock-Based Compensation The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in compensation costs based on their fair values on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the outstanding equity awards. |
Investments in Real Estate | Acquisitions of real estate are recorded at cost. The Company assigns the purchase price of real estate to tangible and intangible assets and liabilities based on fair value. Tangible assets consist of land, buildings, site improvements, and tenant improvements. Intangible assets and liabilities consist of the value of in-place leases and above- or below- market leases assumed with the acquisition. At the time of acquisition, the Company assesses whether the purchase of the real estate falls within the definition of a business under Accounting Standards Codification (“ASC”) 805 and to date has concluded that all asset transactions are asset acquisitions. Therefore, each acquisition has been recorded at the purchase price whereas assets and liabilities, inclusive of closing costs, are allocated to land, building, site improvements, tenant improvements, and intangible assets and liabilities based upon their relative fair values at the date of acquisition. The fair value of the in-place leases are estimated as the cost to replace the leases including loss of rent, commissions and legal fees. The in-place leases are amortized over the remaining team of the leases as amortization expense. The fair value of the above- or below-market lease is estimated as the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated current market lease rate expected over the remaining non-cancelable life of the lease. The capitalized above- or below-market lease values are amortized as a decrease or increase to rental income over the remaining term of the lease inclusive of the renewal option periods that are considered probable at acquisition. |
Depreciation Expense | Depreciation Expense Real estate and related assets are stated net of accumulated depreciation. Renovations, replacements and other expenditures that improve or extend the life of assets are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful life of the buildings, which are generally between 15 and 50 years , and site improvements, which are generally 5 to 9 years. Tenant improvements are amortized over the lease terms of the tenants, which is generally between 2 and 10 years, with two tenant improvements amortized over 27 years . |
Lease Liabilities | Lease Liabilities The Company has a certain property within its portfolio that is on land subject to a ground lease with a third party, which is classified as an operating lease. Accordingly, the Company owns only a long-term leasehold in this property. The building and improvements constructed on the leased land are capitalized as investment in real estate and are depreciated over the shorter of the useful life of the improvements or the lease term. Under ASC 842, the Company recognizes a lease liability for its ground lease and corresponding right of use asset related to this same ground lease which is classified as an operating lease. A key input in estimating the lease liability and resulting right of use asset is establishing the discount rate in the lease, which since the rate implicit in the contract is not readily determinable, requires additional inputs for the longer-term ground lease, including mortgage market-based interest rates that correspond with the remaining term of the lease, the Company's credit spread, and the payment terms present in the lease. This discount rate is applied to the remaining unpaid minimum rental payments for the lease to measure the lease liability. |
Income Taxes | Income Taxes The Company elected to be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code, commencing with our taxable year ending December 31, 2021. To continue to qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal corporate income tax on that portion of its taxable income that is currently distributed to stockholders. Accordingly, the only provision for federal income taxes in the accompanying consolidated financial statements relates to the Company's consolidated taxable REIT subsidiary of which no income was generated during the three months ended March 31, 2024 and 2023. The Company also recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related processes, if any. As of each balance sheet date, unrecognized benefits are reassessed and adjusted if the Company’s judgment changes as a result of new information. No liability for unrecognized tax benefits was recorded as of March 31, 2024 or 2023. At March 31, 2024 , the Company's tax returns for the years 2020 forward remain subject to examination by the major tax jurisdictions under the statute of limitations. |
Earnings per Share | Earnings per Share In accordance with ASC 260, basic earnings (loss) per share (“EPS”) is computed by dividing net loss attributable to the Company that is available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock warrants, using the treasury stock method, and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive securities such as warrants and convertible membership units of the Operating Partnership (“GIP LP Units”) if their effect is anti-dilutive. As of the three months ended March 31, 2024 and 2023 , all potentially dilutive securities were excluded because the effect was anti-dilutive. |
Impairments | Impairments The Company reviews investments in real estate and related lease intangibles for possible impairment when certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable though operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. An impairment loss of approximately $ 1.06 million was recognized during the three months ended March 31, 2024 resulting from the reduction in the anticipated holding period of the property which was reclassified as held for sale in the three months ended March 31, 2024. There were no impairments in the Company's investments in real estate during the three months ended March 31, 2023. The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions, and purchase offers received from third parties, which are Level 3 inputs. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate. Estimating future cash flows is highly subjective and estimates can differ materially from actual results. |
Real Estate Held for Sale | Real Estate Held for Sale The Company generally considers assets to be held for sale when certain criteria have been met, and management believes it is probable that the disposition will occur within one year. Properties are held for sale for a period longer than one year if events or circumstances out of the Company's control occur that delay the sale and while management continues to be committed to the plan of sale and is performing actions necessary to respond to the conditions causing the delay the properties held for sale remain salable in their current condition. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value, less cost to sell, and depreciation and amortization are no longer recognized. Held for sale properties are evaluated quarterly to ensure that properties continue to meet the held for sale criteria. If properties are required to be reclassified from held for sale to held for use due to changes to a plan of sale, they are recorded at the lower of fair value or the carrying amount before the property was classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used. Properties that do not meet the held for sale criteria are accounted for as operating properties |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are recorded at fair value on the balance sheet as assets or liabilities. The valuation of derivative instruments requires us to make estimates and judgments that affect the fair value of the instruments. Fair values of our derivatives are estimated by pricing models that consider the forward yield curves and discount rates. Such amounts and the recognition of such amounts are subject to estimates that may change in the future. Fair Value Measurements Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from independent sources (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the Company's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The three levels of inputs used to measure fair value are as follows: • Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 - Unobservable inputs for the asset or liability, which are typically based on the Company's own assumptions, as there is little, if any, related market activity. The Company also re-measures nonfinancial assets and nonfinancial liabilities, initially measured at fair value in a business combination or other new basis event, at fair value in subsequent periods if a re-measurement event occurs. See Derivative Financial Instruments in Note 10 for additional information on the Company's fair value measurements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Consolidated Statements of Cash Flows: As of March 31, As of December 31, 2024 2023 Cash and cash equivalents $ 1,655,820 $ 3,117,446 Restricted cash 34,500 34,500 Cash and cash equivalents and restricted cash $ 1,690,320 $ 3,151,946 |
Acquired Lease Intangible Ass_2
Acquired Lease Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Above Market Leases [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Assets, Net | Above-market leases, net is comprised of the following: As of March 31, As of December 31, 2024 2023 Above-market leases $ 1,657,256 $ 1,657,256 Accumulated amortization ( 271,555 ) ( 169,784 ) Above-market leases, net $ 1,385,701 $ 1,487,472 |
Schedule of Future Amortization for Intangible Assets | The future amortization for above-market leases, net for subsequent years ending December 31, is listed below: As of March 31, 2024 2024 (9 months remaining) $ 305,349 2025 407,132 2026 380,084 2027 161,539 2028 104,443 Thereafter 27,262 $ 1,385,701 |
Leases Acquired In Place [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Assets, Net | In-place leases, net is comprised of the following: As of March 31, As of December 31, 2024 2023 In-place leases $ 8,269,790 $ 8,914,075 Accumulated amortization ( 2,164,845 ) ( 2,411,802 ) In-place leases, net $ 6,104,945 $ 6,502,273 |
Schedule of Future Amortization for Intangible Assets | The future amortization for in-place leases, net for subsequent years ending December 31, is listed below: As of March 31, 2024 2024 (9 months remaining) $ 1,031,892 2025 1,320,791 2026 1,219,556 2027 834,926 2028 644,063 Thereafter 1,053,717 $ 6,104,945 |
Acquired Lease Intangible Lia_2
Acquired Lease Intangible Liabilities, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Below Market Lease [Abstract] | |
Summary of Acquired Lease Intangible Liabilities | Acquired lease intangible liabilities, net is comprised of the following: As of March 31, As of December 31, 2024 2023 Acquired lessor lease intangible liabilities $ 1,304,309 $ 1,304,309 Accumulated accretion to rental income ( 365,734 ) ( 331,932 ) Acquired lessor lease intangible liabilities, net $ 938,575 $ 972,377 Acquired lessee lease intangible liabilities $ 45,207 $ 45,207 Accumulated amortization to offset building expenses ( 1,507 ) ( 1,324 ) Acquired lessee lease intangible liabilities, net $ 43,700 $ 43,883 |
Summary of Future Amortization for Intangible Liabilities | The future amortization for acquired lessor lease intangible liabilities, net for subsequent years ending December 31 is listed below: As of March 31, 2024 2024 (9 months remaining) 102,364 2025 135,543 2026 119,262 2027 110,322 2028 109,706 Thereafter 361,378 $ 938,575 The amortization for acquired lessee lease intangible liabilities for the three months ended March 31, 2024 and 2023 was $ 183 and $ 183 , respectively. The future amortization for acquired lessee lease intangible liabilities, net for subsequent years ending December 31 is listed below: As of March 31, 2024 2024 (9 months remaining) $ 549 2025 732 2026 732 2027 732 2028 732 Thereafter 40,223 $ 43,700 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Summary of Disaggregation of Lease Income | The following table provides a disaggregation of lease income recognized as either fixed or variable lease income three months ended March 31, 2024 and 2023: 2024 2023 Rental income Fixed and in-substance fixed lease income $ 1,949,206 $ 1,203,924 Variable lease income 388,729 79,821 Other related lease income, net: Amortization of above- and below-market leases, net ( 67,969 ) 26,114 Straight line rent revenue 4,764 16,848 Total rental income $ 2,274,730 $ 1,326,707 |
Summary of Concentration of Risk Percentage of Tenants | For the three months ended March 31, 2024 and 2023 , we had four tenants that each account for more than 10% of our rental revenue as indicated below: 2024 2023 General Services Administration - Norfolk, VA, Manteo, NC & Vacaville, CA 16 % 23 % Pre-K - San Antonio, TX 14 % N/A Dollar General - multiple locations 13 % N/A PRA Holdings, Inc. - Norfolk, VA < 10 % 16 % Pratt & Whitney Automation, Inc. - Huntsville, AL < 10 % 15 % Kohl's Corporation - Tucson, AZ < 10 % 17 % |
Summary of Future Minimum Rental Payments Due to the Company | The following table presents future minimum rental cash payments due to the Company over the next five calendar years and thereafter as of December 31: As of March 31, 2024 2024 (9 months remaining) $ 6,219,257 2025 8,164,467 2026 7,877,077 2027 6,264,047 2028 4,815,997 Thereafter 11,204,220 $ 44,545,065 On March 29, 2024, the Company executed a 10-year lease, with two five-year renewal options, with Armed Services YMCA for the use of approximately 35,000 square feet on the property located at 2510 Walmer Avenue, Norfolk, Virginia. Rent commenced on May 1, 2024 under the contracted twelve month tenant improvement period of twelve months at a reduced fixed base rent of approximately $ 23,000 per month. Base rent increases to a fixed rate of approximately $ 34,000 per month in month 13 and escalates annually at approximately 2.5 % . |
Summary of Future Minimum Rental Cash Payments Due and Undiscounted Future Cash Flows | The following table summarizes the undiscounted future cash flows for subsequent years ending December 31 attributable to the lease liability as of March 31, 2024 and provides a reconciliation to the lease liability included in the accompanying Consolidated Balance Sheets as of March 31, 2024. As of March 31, 2024 2024 (9 months remaining) 183,058 2025 245,111 2026 245,111 2027 245,111 2028 245,111 Thereafter 21,575,533 Total undiscounted liability $ 22,739,035 Present value discount ( 16,311,996 ) Lease liability $ 6,427,039 Discount rate 4.58 % Term Remaining 60 years |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Non-Controlling Interests | The following table reflects the Company's redeemable non-controlling interests and non-controlling interest during the three months ended March 31, 2024 and 2023: Brown Family Trust and Brown Family Enterprises, LLC Irby Prop Partners Richard Hornstrom LMB Owenton I LLC GIP LP (Former Greenwal, L.C. and Riverside Crossing, L.C. Members) LC2-NNN Pref, LLC Total Redeemable Non-Controlling Interests Non-Controlling Interests - Former GIP Fund 1 Members Balance, December 31, 2022 $ 500,000 $ 1,014,748 $ 686,114 $ 1,109,570 $ 2,479,299 $ - $ 5,789,731 $ 445,035 Issuance of Redeemable Non-Controlling Interests 3,000,000 - - - - - 3,000,000 - Redemption of Redeemable Non-Controlling Interests - - - - ( 2,479,299 ) - ( 2,479,299 ) - Distribution on Non-Controlling Interests ( 46,346 ) ( 19,000 ) ( 13,000 ) ( 18,135 ) ( 19,336 ) - ( 115,817 ) ( 2,844 ) Net income (loss) for the quarter 46,346 28,681 19,624 18,135 19,336 - 132,122 ( 4,908 ) Balance, March 31, 2023 $ 3,500,000 $ 1,024,429 $ 692,738 $ 1,109,570 $ - $ - $ 6,326,737 $ 437,283 Balance, December 31, 2023 $ 3,000,000 $ - $ - $ 1,109,570 $ - $ 14,702,853 $ 18,812,423 $ 406,131 Distribution on Non-Controlling Interests ( 52,500 ) - - ( 18,157 ) ( 9,705 ) ( 187,471 ) ( 267,833 ) ( 2,844 ) Net income (loss) for the quarter 52,500 - - 18,157 9,705 873,344 953,706 ( 7,582 ) Balance, Match 31, 2024 $ 3,000,000 $ - $ - $ 1,109,570 $ - $ 15,388,726 $ 19,498,296 $ 395,705 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Warrants Weighted Average Price Weighted Average Remaining Life As of December 31, 2023 898,200 $ 11.53 2.7 Exercised ( 45,510 ) 10.00 As of March 31, 2024 852,690 $ 11.61 2.5 Warrants exercisable 852,690 $ 11.61 2.5 Warrants Weighted Average Price Weighted Average Remaining Life As of December 31, 2022 1,102,900 $ 11.25 3.7 Exercised ( 106,480 ) 10.00 As of March 31, 2023 996,420 $ 11.38 3.5 Warrants exercisable 996,420 $ 11.38 3.5 There was no intrinsic value for the warrants as of March 31, 2024 or March 31, 2023. |
Schedule of Restricted Common Shares Issued | The following is a summary of restricted shares for the three months ended March 31, 2024 and 2023: 2024 2023 Number of Shares Outstanding at beginning of period 91,516 58,502 Restricted Shares Issued - 98,593 Restricted Shares Vested ( 34,888 ) ( 45,857 ) Number of Shares Outstanding at end of period 56,628 111,238 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Investor Warrants issued on September 8 and 30, 2021 became exercisable on a cashless basis on January 6 and 28, 2022, respectively. As of March 31, Issue Date 2024 April 25, 2019 at an exercise price of $ 20.00 50,000 November 13, 2020 at an exercise price of $ 20.00 50,000 September 8, 2021 at an exercise price of $ 10.00 437,840 September 8, 2021 at an exercise price of $ 12.50 135,000 September 30, 2021 at an exercise price of $ 10.00 165,000 September 30, 2021 at an exercise price of $ 12.50 14,850 852,690 |
Schedule of Cash Distributions | The following is a summary of monthly distributions to common stockholders and Operating Partnership unit holders: Authorized Date Record Date Per Share/Unit January 3, 2024 March 15, 2024 $ 0.039 January 3, 2024 February 14, 2024 $ 0.039 January 3, 2024 January 15, 2024 $ 0.039 October 3, 2023 December 15, 2023 $ 0.039 October 3, 2023 November 15, 2023 $ 0.039 October 3, 2023 October 15, 2023 $ 0.039 July 3, 2023 September 15, 2023 $ 0.039 July 3, 2023 August 15, 2023 $ 0.039 July 3, 2023 July 15, 2023 $ 0.039 April 3, 2023 June 15, 2023 $ 0.039 April 3, 2023 May 15, 2023 $ 0.039 April 3, 2023 April 15, 2023 $ 0.039 January 3, 2023 March 15, 2023 $ 0.039 January 3, 2023 February 15, 2023 $ 0.039 January 3, 2023 January 15, 2023 $ 0.039 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Promissory Notes | The Company had the following mortgage loans outstanding as of March 31, 2024 and December 31, 2023, respectively: Occupying Tenant Location Original Loan Amount Interest Rate Maturity Date 3/31/2024 12/31/2023 Debt Service Coverage Ratios ("DSCR") Required 7-Eleven Corporation & Starbucks Corporation Washington, D.C., Tampa, FL, and Huntsville, AL $ 11,287,500 (a) 4.17 % 3/6/2030 $ 10,705,459 $ 10,757,239 1.25 General Services Administration-Navy & Vacant Unit Norfolk, VA 8,260,000 3.50 % 9/30/2024 7,281,369 7,341,804 1.25 PRA Holdings, Inc. Norfolk, VA 5,216,749 3.50 % 10/23/2024 4,520,121 4,562,722 1.25 Sherwin Williams Company Tampa, FL 1,286,664 3.72 % (b) 8/10/2028 1,278,844 1,286,664 1.20 General Services Administration-FBI Manteo, NC 928,728 (c) 3.85 % (d) 3/31/2032 908,118 913,958 1.50 Irby Construction Plant City , FL 928,728 (c) 3.85 % (d) 3/31/2032 908,118 913,958 1.50 La-Z-Boy Inc. Rockford, IL 2,100,000 3.85 % (d) 3/31/2032 2,053,584 2,066,604 1.50 Best Buy Co., Inc. Grand Junction, CO 2,552,644 (c) 3.85 % (d) 3/31/2032 2,495,997 2,512,050 1.50 Fresenius Medical Care Holdings, Inc. Chicago, IL 1,727,108 (c) 3.85 % (d) 3/31/2032 1,688,781 1,699,642 1.50 Starbucks Corporation Tampa, FL 1,298,047 (c) 3.85 % (d) 3/31/2032 1,269,241 1,277,404 1.50 Kohl's Corporation Tucson, AZ 3,964,745 (c) 3.85 % (d) 3/31/2032 3,878,651 3,901,694 1.50 City of San Antonio (PreK) San Antonio, TX 6,444,000 (e) 7.47 % (b) 8/10/2028 6,394,286 6,416,362 1.50 Dollar General Market Bakersfield, CA 2,428,000 (e) 7.47 % (b) 8/10/2028 2,409,212 2,417,587 1.50 Dollar General Big Spring, TX 635,000 (e) 7.47 % (b) 8/10/2028 630,086 632,277 1.50 Dollar General Castalia, OH 556,000 (e) 7.47 % (b) 8/10/2028 551,698 553,615 1.50 Dollar General East Wilton, ME 726,000 (e) 7.47 % (b) 8/10/2028 720,382 722,886 1.50 Dollar General Lakeside, OH 567,000 (e) 7.47 % (b) 8/10/2028 562,612 564,568 1.50 Dollar General Litchfield, ME 624,000 (e) 7.47 % (b) 8/10/2028 619,171 621,324 1.50 Dollar General Mount Gilead, OH 533,000 (e) 7.47 % (b) 8/10/2028 528,876 530,714 1.50 Dollar General Thompsontown, PA 556,000 (e) 7.47 % (b) 8/10/2028 551,698 553,615 1.50 Dollar Tree Stores, Inc. Morrow, GA 647,000 (e) 7.47 % (b) 8/10/2028 641,993 644,225 1.50 exp U.S. Services Inc. Maitland, FL 2,950,000 (e) 7.47 % (b) 8/10/2028 2,927,172 2,937,348 1.50 General Services Administration Vacaville, CA 1,293,000 (e) 7.47 % (b) 8/10/2028 1,282,995 1,287,454 1.50 Walgreens Santa Maria, CA 3,041,000 (e) 7.47 % (b) 8/10/2028 3,015,430 3,027,958 1.50 $ 60,550,913 $ 57,823,894 $ 58,143,672 Less Debt Discount, net ( 383,446 ) ( 383,767 ) Less Debt Issuance Costs, net $ ( 895,136 ) $ ( 942,595 ) 56,545,312 56,817,310 (a) Loan subject to prepayment penalty (b) Fixed via interest rate swap (c) One loan in the amount of $ 11.4 million secured by six properties and allocated to each property based on each property's appraised value. (d) Adjustment effective April 1, 2027 equal to 5-year Treasury plus 2.5 % and subject to a floor of 3.85 % (e) One loan in the amount of $21.0 million secured by 13 properties and allocated to each property based on each property's appraised value. |
Schedule of Minimum Required Principal Payments | Minimum required principal payments on the Company’s debt for subsequent years ending December 31 are as follows: Mortgage Loans Other Payable - Related Party Loan Payable - Related Party Total as of March 31, 2024 2024 (9 months remaining) 12,459,324 1,357,380 - 13,816,704 2025 926,633 - - 926,633 2026 976,467 - 5,500,000 6,476,467 2027 1,033,322 - - 1,033,322 2028 21,341,791 - - 21,341,791 Thereafter 21,086,357 - - 21,086,357 $ 57,823,894 $ 1,357,380 $ 5,500,000 $ 64,681,274 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of our financial instruments are as follows: March 31, 2024 December 31, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 1,655,820 $ 1,655,820 $ 3,117,446 $ 3,117,446 Restricted cash 34,500 34,500 34,500 34,500 Interest rate swaps 148,710 148,710 135,642 135,642 Financial liabilities: Interest rate swaps 169,942 169,942 537,424 537,424 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) Property | Dec. 31, 2023 USD ($) | |
Nature Of Operations [Line Items] | ||
Entity incorporation date | Sep. 19, 2015 | |
Number of properties owned | Property | 26 | |
Net cash provided by operating activities | $ 25,977 | |
Cash and cash equivalents | 1,655,820 | $ 3,117,446 |
Mortgage loan, net of unamortized debt issuance costs | 56,545,312 | $ 56,817,310 |
Secured Mortgage Loan One [Member] | ||
Nature Of Operations [Line Items] | ||
Mortgage loan, net of unamortized debt issuance costs | $ 7,300,000 | |
Maturity date | Sep. 30, 2024 | |
Secured Mortgage Loan Two [Member] | ||
Nature Of Operations [Line Items] | ||
Mortgage loan, net of unamortized debt issuance costs | $ 4,500,000 | |
Maturity date | Oct. 23, 2024 | |
Operating Partnership | ||
Nature Of Operations [Line Items] | ||
Operating partnership formation month and year | 2015-10 | |
Operating Partnership | GIP REIT Op Limited LLC | ||
Nature Of Operations [Line Items] | ||
Ownership percentage | 0.001% | |
Operating Partnership | Common Units | ||
Nature Of Operations [Line Items] | ||
Ownership percentage | 95.30% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 1,655,820 | $ 3,117,446 |
Restricted cash | 34,500 | 34,500 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Total | $ 1,690,320 | $ 3,151,946 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) Tenant | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred rent asset | $ 366,278 | $ 1,106,191 | |
Deferred rent liability | 170,317 | 260,942 | |
Prepaid rent | 189,708 | $ 280,332 | |
Impairments | 0 | $ 0 | |
Impairment loss | 1.06 | ||
Liability for unrecognized tax benefits | $ 0 | $ 0 | |
Buildings | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 15 years | ||
Buildings | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 50 years | ||
Tenant Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Regulatory Asset, Amortization Period | 27 years | ||
Number Of tenant | Tenant | 2 | ||
Tenant Improvements | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 2 years | ||
Tenant Improvements | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 10 years | ||
Site Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 5 years | ||
Site Improvements | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 9 years | ||
Real Estate Held for Sale [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property Sales, Deposit Received | $ 6,150,000 | ||
Sale of Fixed Assets, Carrying Value | 5,750,000 | ||
Impairments | $ 1,060,000 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Details) - Tenant | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Asset Acquisition [Line Items] | ||
Number of tenants | 4 | 4 |
Acquired Lease Intangible Ass_3
Acquired Lease Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets | $ 9,927,046 | $ 10,571,331 |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets | 1,657,256 | 1,657,256 |
Accumulated amortization | (271,555) | (169,784) |
Acquired lease intangible assets, net | 1,385,701 | 1,487,472 |
Leases Acquired In Place [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets | 8,269,790 | 8,914,075 |
Accumulated amortization | (2,164,845) | (2,411,802) |
Acquired lease intangible assets, net | $ 6,104,945 | $ 6,502,273 |
Acquired Lease Intangible Ass_4
Acquired Lease Intangible Assets, Net - Schedule of Future Amortization for Intangible Assets (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2024 (9 months remaining) | $ 305,349 | |
2025 | 407,132 | |
2026 | 380,084 | |
2027 | 161,539 | |
2028 | 104,443 | |
Thereafter | 27,262 | |
Acquired lease intangible assets, net | 1,385,701 | $ 1,487,472 |
Leases Acquired In Place [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2024 (9 months remaining) | 1,031,892 | |
2025 | 1,320,791 | |
2026 | 1,219,556 | |
2027 | 834,926 | |
2028 | 644,063 | |
Thereafter | 1,053,717 | |
Acquired lease intangible assets, net | $ 6,104,945 | $ 6,502,273 |
Acquired Lease Intangible Ass_5
Acquired Lease Intangible Assets, Net (Additional Information) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of lease intangible assets | $ 397,328 | $ 135,563 | |
Amortization of above market leases | 101,771 | 0 | |
Above Market Leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above market leases | (101,771) | 0 | |
Leases Acquired In Place [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of lease intangible assets | $ 2,023 | $ 397,328 | $ 563 |
Acquired Lease Intangible Lia_3
Acquired Lease Intangible Liabilities, Net - Summary of Acquired Lease Intangible Liabilities (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Acquired lessor lease intangible liabilities | $ 1,304,309 | $ 1,304,309 |
Accumulated accretion to rental income | (365,734) | (331,932) |
Acquired lessor lease intangible liabilities, net | 938,575 | 972,377 |
Acquired lessee lease intangible liabilities | 45,207 | 45,207 |
Accumulated amortization to offset building expenses | (1,507) | (1,324) |
Acquired lessee lease intangible liabilities, net | $ 43,700 | $ 43,883 |
Acquired Lease Intangible Lia_4
Acquired Lease Intangible Liabilities, Net - Summary of Future Amortization for Intangible Liabilities (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Indefinite-Lived Intangible Assets [Line Items] | ||
2024 (9 months remaining) | $ 102,364 | |
2025 | 135,543 | |
2026 | 119,262 | |
2027 | 110,322 | |
2028 | 109,706 | |
Thereafter | 361,378 | |
Acquired lessor lease intangible liabilities, net | 938,575 | $ 972,377 |
Lessee [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
2024 (9 months remaining) | 549 | |
2025 | 732 | |
2026 | 732 | |
2027 | 732 | |
2028 | 732 | |
Thereafter | 40,223 | |
Acquired lessor lease intangible liabilities, net | $ 43,700 |
Acquired lease intangible lia_5
Acquired lease intangible liabilities, net (Additional Information) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization of below market leases | $ (33,802) | $ (26,114) |
Lessee Member | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization of below market leases | $ (183) | $ (183) |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended | |||
Mar. 31, 2024 USD ($) Tenant | Mar. 31, 2023 USD ($) Tenant | Mar. 29, 2024 USD ($) ft² | Mar. 09, 2022 Property | |
Lessee Lease Description [Line Items] | ||||
Executed lease | Company executed a 10-year lease, with two five-year renewal options, with Armed Services YMCA for the use of approximately 35,000 square feet on the property located at 2510 Walmer Avenue, Norfolk, Virginia. Rent commenced on May 1, 2024 under the contracted twelve month tenant improvement period of twelve months at a reduced fixed base rent of approximately $23,000 per month. Base rent increases to a fixed rate of approximately $34,000 per month in month 13 and escalates annually at approximately 2.5% | |||
Area of Real Estate Property | ft² | 35,000 | |||
Escalates annually | 2.50% | |||
Increases base rent per month | $ 34,000 | |||
Reduced fixed base rent per month | $ 23,000 | |||
Number of tenants | Tenant | 4 | 4 | ||
Ground Lease | ||||
Lessee Lease Description [Line Items] | ||||
Number of properties acquired | Property | 1 | |||
Lease expiration year | 2084 | |||
Operating lease, expense | $ 93,762 | $ 93,762 | ||
Variable lease expense | 0 | |||
Right of use liability,net | $ 60,244 | $ 58,175 |
Leases - Summary of Disaggregat
Leases - Summary of Disaggregation of Lease Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Fixed and in-substance fixed lease income | $ 1,949,206 | $ 1,203,924 |
Variable lease income | 388,729 | 79,821 |
Other related lease income, net: | ||
Amortization of below-market leases | 33,802 | 26,114 |
Amortization of above- and below-market leases, net | (67,969) | 26,114 |
Straight line rent revenue | 4,764 | 16,848 |
Total rental income | $ 2,274,730 | $ 1,326,707 |
Leases - Summary of Concentrati
Leases - Summary of Concentration of Risk Percentage of Tenants (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Norfolk, VA & Manteo, NC [Member] | General Services Administration [Member] | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 16% | 23% |
Norfolk, VA & Manteo, NC [Member] | Pre-K [Member] | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 14% | |
Norfolk, VA & Manteo, NC [Member] | Dollar General [Member] | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 13% | |
Norfolk, VA | P R A Holding [Member] | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 10% | 16% |
Pratt and Whitney - Huntsville, Alabama [Member] | Pratt And Whitney Corporation [Member] | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 10% | 15% |
Tuscon Arizona [Member] | Kohl's Corporation Member | ||
Product Information [Line Items] | ||
Concentration risk, percentage | 10% | 17% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Rental Payments Due to the Company (Details) | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2024 (9 months remaining) | $ 6,219,257 |
2025 | 8,164,467 |
2026 | 7,877,077 |
2027 | 6,264,047 |
2028 | 4,815,997 |
Thereafter | 11,204,220 |
Lessor, Operating Lease, Payments to be Received, Total | $ 44,545,065 |
Leases - Summary of Future Mi_2
Leases - Summary of Future Minimum Rental Cash Payments Due and Undiscounted Future Cash Flows (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Lessee Lease Description [Line Items] | ||
Lease liability, net | $ 6,427,039 | $ 6,415,041 |
Ground Lease | ||
Lessee Lease Description [Line Items] | ||
2024 (9 months remaining) | 183,058 | |
2025 | 245,111 | |
2026 | 245,111 | |
2027 | 245,111 | |
2028 | 245,111 | |
Thereafter | 21,575,533 | |
Total undiscounted liability | 22,739,035 | |
Present value discount | (16,311,996) | |
Lease liability, net | $ 6,427,039 | |
Discount rate | 4.58% | |
Term Remaining | 60 years |
Non-Controlling Interests - Sum
Non-Controlling Interests - Summary of Redeemable Non-Controlling Interests (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | $ 18,812,423 | $ 5,789,731 |
Redeemable Non-Controlling Interests, Beginning Balance | 3,665,198 | |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 3,000,000 | |
Distribution on Non-Controlling Interest | (267,833) | (115,817) |
Distribution on Non-Controlling Interest | (2,844) | (2,844) |
Redemption of Redeemable Non-Controlling Interest | (2,479,299) | |
Net income (loss) for the quarter | 953,706 | 132,122 |
Net (loss) income for the quarter | (2,825,220) | (1,317,567) |
Redeemable Non-Controlling Interest, Balance | 19,498,296 | 6,326,737 |
Redeemable Non-Controlling Interests, Ending Balance | 11,890,485 | |
Brown Family Trust | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 3,000,000 | 500,000 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 3,000,000 | |
Distribution on Non-Controlling Interest | (52,500) | (46,346) |
Redemption of Redeemable Non-Controlling Interest | 0 | |
Net income (loss) for the quarter | 52,500 | 46,346 |
Redeemable Non-Controlling Interest, Balance | 3,000,000 | 3,500,000 |
Irby Property Partners | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 0 | 1,014,748 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | |
Distribution on Non-Controlling Interest | 0 | (19,000) |
Redemption of Redeemable Non-Controlling Interest | 0 | |
Net income (loss) for the quarter | 0 | 28,681 |
Redeemable Non-Controlling Interest, Balance | 0 | 1,024,429 |
Richard Hornstrom | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 0 | 686,114 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | |
Distribution on Non-Controlling Interest | 0 | (13,000) |
Redemption of Redeemable Non-Controlling Interest | 0 | |
Net income (loss) for the quarter | 0 | 19,624 |
Redeemable Non-Controlling Interest, Balance | 0 | 692,738 |
LMB Owenton I LLC | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 1,109,570 | 1,109,570 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | |
Distribution on Non-Controlling Interest | (18,157) | (18,135) |
Net income (loss) for the quarter | 18,157 | 18,135 |
Redeemable Non-Controlling Interest, Balance | 1,109,570 | 1,109,570 |
GIP LP | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 0 | 2,479,299 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | |
Distribution on Non-Controlling Interest | (9,705) | (19,336) |
Redemption of Redeemable Non-Controlling Interest | (2,479,299) | |
Net income (loss) for the quarter | 9,705 | 19,336 |
Redeemable Non-Controlling Interest, Balance | 0 | 0 |
LC2-NNN Pref LLC | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 14,702,853 | |
Distribution on Non-Controlling Interest | (187,471) | |
Net income (loss) for the quarter | 873,344 | |
Redeemable Non-Controlling Interest, Balance | 15,388,726 | |
Non-Controlling Interests | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interests, Beginning Balance | 406,131 | |
Distribution on Non-Controlling Interest | (2,844) | (2,844) |
Net (loss) income for the quarter | (7,582) | (4,908) |
Redeemable Non-Controlling Interest, Balance | 437,283 | |
Redeemable Non-Controlling Interests, Ending Balance | $ 395,705 | |
Non-Controlling Interests | Nonredeemable Preferred Stock [Member] | ||
Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 445,035 | |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | |
Redemption of Redeemable Non-Controlling Interest | $ 0 |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Details) | 3 Months Ended | |||||||||||||||||||||||||||
Sep. 07, 2023 USD ($) | Feb. 08, 2023 USD ($) $ / shares shares | Aug. 09, 2022 USD ($) | Jul. 20, 2022 USD ($) $ / shares shares | Jan. 14, 2022 USD ($) Building $ / shares shares | Aug. 02, 2021 USD ($) | Apr. 21, 2021 USD ($) | Feb. 11, 2021 USD ($) | Nov. 30, 2020 USD ($) Building $ / shares shares | Sep. 30, 2019 USD ($) Entity Building Investor $ / shares shares | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) | Dec. 15, 2024 shares | Sep. 15, 2024 shares | Jun. 15, 2024 shares | Mar. 15, 2024 shares | Dec. 31, 2023 USD ($) shares | Oct. 31, 2023 shares | Sep. 15, 2023 shares | Mar. 15, 2023 shares | Mar. 08, 2023 USD ($) | Jan. 27, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Sep. 30, 2022 $ / shares shares | Sep. 15, 2022 USD ($) $ / shares shares | Sep. 13, 2022 USD ($) | Apr. 25, 2022 USD ($) $ / shares shares | Mar. 21, 2022 USD ($) $ / shares shares | |
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Noncontrolling interest, description | average 30-day market price of Generation Income Properties, Inc. common stock. GIP LP Units shall then be convertible into common stock of Generation Income Properties, Inc. on a 1:1 basis in accordance with the partnership agreement of the Operating Partnership. Additionally, the Operating Partnership has the right to redeem the preferred equity at redemption value with cash after the second year anniversary of the closing of the acquisition. | |||||||||||||||||||||||||||
Redeemable noncontrolling interest redeemed | $ 19,498,296 | $ 6,326,737 | $ 18,812,423 | $ 5,789,731 | ||||||||||||||||||||||||
Redemption price discount average | 15% | |||||||||||||||||||||||||||
Common stock, shares issued | shares | 5,419,855 | 2,620,707 | ||||||||||||||||||||||||||
Other Expense | $ 0 | 506,000 | ||||||||||||||||||||||||||
LC2-NNN Pref LLC [Member] | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Noncontrolling interest, description | The Company will have the right to extend the Mandatory Redemption Date for two consecutive 12-month extension periods, provided that (i) LC2 is paid an extension fee of 0.01% of the outstanding amount of the LC2 Investment for each such extension, (ii) the preferred return is increased from 15.5% to 18% of which the accrued preferred return is increased from 10.5% to 13%, (iii) the trailing 6-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) is in excess of $5.0 million, (iv) GIP SPE and its subsidiaries’ senior debt is extended through the end of the extension period, and there are no defaults under the GIP SPE Operating Agreement. | |||||||||||||||||||||||||||
Noncontrolling interest total internal rate of return percentage | 0.50% | |||||||||||||||||||||||||||
Redemption Agreement [Member] | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Issuance of Other payable - related party for redemption of Redeemable Non-Controlling Interest | $ 2,912,300 | $ 2,912,299 | ||||||||||||||||||||||||||
First installment payment | $ 1,554,920 | $ 1,554,920 | $ 1,554,920 | |||||||||||||||||||||||||
Common stock, shares issued | shares | 200,000 | |||||||||||||||||||||||||||
LMB Owenton I LLC | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Redeemable noncontrolling interest redeemed | $ 1,109,570 | 1,109,570 | $ 1,109,570 | 1,109,570 | ||||||||||||||||||||||||
Total units issued | shares | 155,185 | |||||||||||||||||||||||||||
Brown Family Trust | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Redeemable noncontrolling interest redeemed | $ 3,000,000 | 3,500,000 | 3,000,000 | 500,000 | ||||||||||||||||||||||||
Other Expense | 506,000 | |||||||||||||||||||||||||||
Irby Property Partners | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Redeemable noncontrolling interest redeemed | 0 | 1,024,429 | 0 | 1,014,748 | ||||||||||||||||||||||||
Richard Hornstrom | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Redeemable noncontrolling interest redeemed | $ 0 | $ 692,738 | $ 0 | $ 686,114 | ||||||||||||||||||||||||
Operating Partnership | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Percentage Value Of Interest In Common Units | 95.30% | |||||||||||||||||||||||||||
Total units issued | shares | 180,615 | |||||||||||||||||||||||||||
Operating Partnership | Outside Investor | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Percentage Value Of Interest In Common Units | 4.70% | |||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Common stock, shares issued | shares | 200,000 | |||||||||||||||||||||||||||
Class A Preferred Units | LC2-NNN Pref LLC [Member] | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest, Equity, Preferred, Redemption Value | $ 14,100,000 | |||||||||||||||||||||||||||
Redeemable Noncontrolling Interest Unpaid | $ 1,288,726 | |||||||||||||||||||||||||||
Preferred Equity Agreement | Brown Family Trust | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Capital contribution received | $ 500,000 | |||||||||||||||||||||||||||
Noncontrolling interest, description | The Operating Partnership is the general manager of the subsidiary while Brown Family Trust is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 9% internal rate of return ("IRR") on a monthly basis. After 24 months, the Brown Family Trust has the right to redeem and the Operating Partnership has the right to call the preferred equity at redemption value. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. | |||||||||||||||||||||||||||
Preferred Equity Agreement | Irby Property Partners | Preferred Equity Partners | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company is required to pay the preferred equity member a 12% total IRR of which 8% IRR is paid on a monthly basis and 4% IRR is deferred. After 24 months, Irby Prop Partners has the right to redeem the preferred equity at redemption value plus any deferred interest accrued and the Operating Partnership has the right to call the preferred equity at redemption value. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. | |||||||||||||||||||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 8% | |||||||||||||||||||||||||||
Noncontrolling interest total internal rate of return percentage | 12% | |||||||||||||||||||||||||||
Preferred Equity Agreement | Richard Hornstrom | Preferred Equity Partners | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Capital contribution received | $ 650,000 | |||||||||||||||||||||||||||
Noncontrolling interest, description | pursuant to which the Company’s subsidiary received a capital contribution of $650,000. The Operating Partnership is the general manager of the subsidiary while Richard Hornstrom is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 12% total IRR of which 8% IRR is paid on a monthly basis and 4% IRR is deferred. | |||||||||||||||||||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 8% | |||||||||||||||||||||||||||
Noncontrolling interest total internal rate of return percentage | 12% | |||||||||||||||||||||||||||
Preferred Equity Agreement | GIPVA 130 | Preferred Equity Partners | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Noncontrolling interest, description | The Operating Partnership is the general manager of the subsidiary while Brown Family Enterprises, LLC is a preferred equity member. Pursuant to the agreement, the Company is required to pay the preferred equity member a 7% IRR paid on a monthly basis and will share in 16% of the equity in each of the Virginia SPEs upon a capital transaction resulting in distributable proceeds. After 24 months, Brown Family Enterprises, LLC has the right to redeem the preferred equity at redemption value. | |||||||||||||||||||||||||||
Redeemable noncontrolling interest redeemed | $ 3,000,000 | |||||||||||||||||||||||||||
Preferred Equity Agreement | Class A Preferred Units | GIPVA 130 | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Capital contribution received | $ 1,200,000 | |||||||||||||||||||||||||||
Preferred Units Sold | shares | 120,000 | |||||||||||||||||||||||||||
Preferred units issue price per share | $ / shares | $ / shares | $ 10 | |||||||||||||||||||||||||||
Preferred Equity Agreement | Class A Preferred Units | GIPVA 2510 | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Capital contribution received | $ 1,800,000 | |||||||||||||||||||||||||||
Number of preferred units issued | shares | 180,000 | |||||||||||||||||||||||||||
Preferred units issue price per share | $ / shares | $ / shares | $ 10 | |||||||||||||||||||||||||||
Contribution Agreement | LMB Owenton I LLC | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Number of common units issued | shares | 110,957 | |||||||||||||||||||||||||||
Common units issue price per share | $ / shares | $ 10 | |||||||||||||||||||||||||||
Common units value issued | $ 1,109,570 | |||||||||||||||||||||||||||
Common units redemption price per share | $ / shares | $ 10 | $ 7.15 | ||||||||||||||||||||||||||
Total units issued | shares | 44,228 | |||||||||||||||||||||||||||
Common units value redeemed | $ 1,109,570 | |||||||||||||||||||||||||||
Contribution Agreement | Operating Partnership | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Issuance of Other payable - related party for redemption of Redeemable Non-Controlling Interest | $ 2,912,300 | |||||||||||||||||||||||||||
Number of entities | Entity | 2 | |||||||||||||||||||||||||||
Number of common units issued | shares | 349,913 | |||||||||||||||||||||||||||
Common units issue price per share | $ / shares | $ 20 | |||||||||||||||||||||||||||
Common units value issued | $ 6,998,251 | |||||||||||||||||||||||||||
Number of investors required to redeem | Investor | 2 | |||||||||||||||||||||||||||
Common units redemption price per share | $ / shares | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | $ 20 | |||||||||||||||||||||
Increase (Decrease) in Other Accounts Payable | $ 1,357,380 | |||||||||||||||||||||||||||
Total units issued | shares | 25,000 | 123,965 | 129,365 | 16,250 | 10,166 | 10,166 | ||||||||||||||||||||||
Common units value redeemed | $ 2,479,299 | $ 325,000 | $ 203,326 | $ 203,326 | ||||||||||||||||||||||||
Contribution Agreement | One Entity | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Number of common units issued | shares | 24,309 | |||||||||||||||||||||||||||
Common units issue price per share | $ / shares | $ 20 | |||||||||||||||||||||||||||
Common units value issued | $ 486,180 | |||||||||||||||||||||||||||
Contribution Agreement | One Entity | President | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Ownership percentage | 11% | |||||||||||||||||||||||||||
Contribution Agreement | Tranche One [Member] | Operating Partnership | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Total units issued | shares | 16,250 | |||||||||||||||||||||||||||
Contribution Agreement | Tranche Five [Member] | Operating Partnership | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Total units issued | shares | 22,623 | 22,623 | 22,623 | 22,623 | 22,623 | |||||||||||||||||||||||
Contribution Agreement | Common Stock [Member] | Operating Partnership | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Total units issued | shares | 60,000 | |||||||||||||||||||||||||||
Common stock, shares issued | shares | 200,000 | |||||||||||||||||||||||||||
Common stock issue price | $ / shares | $ 6 | |||||||||||||||||||||||||||
Cocoa, FL | Preferred Equity Agreement | Brown Family Trust | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Acquisition of building | $ 1,737,800 | |||||||||||||||||||||||||||
Plant City, FL | Preferred Equity Agreement | Irby Property Partners | Preferred Equity Partners | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Acquisition of building | $ 1,757,300 | |||||||||||||||||||||||||||
Capital contribution received | $ 950,000 | |||||||||||||||||||||||||||
Rockville, IL | Preferred Equity Agreement | Richard Hornstrom | Preferred Equity Partners | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Capital contribution received | $ 724,800 | |||||||||||||||||||||||||||
Norfolk, VA | Contribution Agreement | LMB Owenton I LLC | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Acquisition of building | $ 226,400 | |||||||||||||||||||||||||||
Number of buildings acquired | Building | 1 | |||||||||||||||||||||||||||
Norfolk, VA | Contribution Agreement | Operating Partnership | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Acquisition of building | $ 19,134,400 | |||||||||||||||||||||||||||
Number of buildings acquired | Building | 2 | |||||||||||||||||||||||||||
Tampa, FL | Contribution Agreement | One Entity | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Acquisition of building | $ 1,847,700 | |||||||||||||||||||||||||||
Number of buildings acquired | Building | 1 | |||||||||||||||||||||||||||
Modiv Portfolio [Member] | LC2-NNN Pref LLC [Member] | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Noncontrolling interest, description | The Preferred Interest has a cumulative accruing distribution preference of 15.5% per year, compounded monthly, a portion of which in the amount of 5% per annum (compounded monthly) is deemed to be the “current preferred return,” and the remainder of which in the amount of 10.5% per annum (compounded monthly) is deemed to be the “accrued preferred return.” The GIP SPE operating agreement provides that operating distributions by GIP SPE will be made first to LC2 to satisfy any accrued but unpaid current preferred return, with the balance being paid to the Operating Partnership, unless the “annualized debt yield” of GIP SPE is less than 10%, in which case the balance will be paid to LC2. For this purpose, “annualized debt yield” is calculated as the sum of senior debt and LC2 Investment divided by the trailing three-month annualized adjusted net operating income (as defined in the GIP SPE Operating Agreement) of GIP SPE. | |||||||||||||||||||||||||||
Payments to Acquire Trust Preferred Investments | $ 2,100,000 | |||||||||||||||||||||||||||
Proceeds from Previous Acquisition | $ 1,300,000 | |||||||||||||||||||||||||||
Modiv Portfolio [Member] | Class A Preferred Units | LC2-NNN Pref LLC [Member] | ||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||||||||||
Preferred Stock, Value, Issued | $ 12 | |||||||||||||||||||||||||||
Payments to Acquire Trust Preferred Investments | $ 2,100,000 |
Equity - Additional Information
Equity - Additional Information (Details) | 1 Months Ended | 3 Months Ended | ||||||||||||||
Apr. 01, 2024 shares | Dec. 08, 2022 $ / shares shares | Apr. 12, 2022 $ / shares shares | Jan. 06, 2022 $ / shares shares | Sep. 08, 2021 shares | Nov. 30, 2020 USD ($) Building $ / shares shares | Nov. 13, 2020 USD ($) $ / shares shares | Apr. 25, 2019 USD ($) $ / shares shares | Jan. 31, 2024 USD ($) shares | Apr. 30, 2022 shares | Mar. 31, 2022 USD ($) shares | Mar. 31, 2024 USD ($) TradingDay $ / shares shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 shares | Sep. 30, 2021 $ / shares | |
Class Of Stock [Line Items] | ||||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||||||||||
Issuance costs in additional paid in capital | $ | $ 61,938 | |||||||||||||||
Stock Issuance Costs | $ | $ 61,938 | $ 0 | ||||||||||||||
Investor warrants exercised | 2,300 | |||||||||||||||
Undesignated preferred stock, shares authorized | 2,400,000 | |||||||||||||||
Exchange Shares of Common Stock for redemption of Preferred Stock | 2,794,597 | 2,794,597 | ||||||||||||||
Preferred stock, shares issued | 10,000,000 | |||||||||||||||
Shares issued price per share | $ / shares | $ 10 | |||||||||||||||
Common warrants expiration term | 2 years 6 months | 3 years 6 months | 2 years 8 months 12 days | 3 years 8 months 12 days | ||||||||||||
Warrants outstanding | 852,690 | 996,420 | 898,200 | 1,102,900 | ||||||||||||
Class Of Warrants Or Right Exercised | 996,420 | |||||||||||||||
Intrinsic value of the warrants | $ | $ 0 | $ 0 | ||||||||||||||
Payable, Preferred Stock Redeemed | $ | $ 2,400,000 | |||||||||||||||
Stock based compensation expense | $ | $ 94,935 | $ 90,648 | ||||||||||||||
Class of warrants or right exercised | 996,420 | |||||||||||||||
Warrants to purchase shares of common stock | 852,690 | 996,420 | ||||||||||||||
Additional paid-in capital | $ | $ 29,589,564 | $ 18,472,049 | ||||||||||||||
Common Stock Par Value | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||
Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of shares granted | 0 | 98,593 | ||||||||||||||
2020 Omnibus Incentive Plan | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Reserves shares of common stock | 2,000,000 | |||||||||||||||
Number of shares granted | 158,840 | |||||||||||||||
Director | Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Shares issued price per share | $ / shares | $ 5.68 | $ 7 | ||||||||||||||
Number of shares granted | 98,593 | 47,142 | 47,142 | |||||||||||||
Vesting period | 3 years | 1 year | ||||||||||||||
Non employee | Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Shares issued price per share | $ / shares | $ 7.06 | |||||||||||||||
Number of shares granted | 357 | 357 | ||||||||||||||
Vesting period | 1 year | |||||||||||||||
Contribution Agreement | One Entity | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common units issue price per share | $ / shares | $ 20 | |||||||||||||||
Number of common units issued | 24,309 | |||||||||||||||
Common units value issued | $ | $ 486,180 | |||||||||||||||
Contribution Agreement | President | One Entity | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ownership percentage | 11% | |||||||||||||||
Contribution Agreement | Tampa, FL | One Entity | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of buildings acquired | Building | 1 | |||||||||||||||
Acquisition of building | $ | $ 1,847,700 | |||||||||||||||
Over-Allotment Option | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock issued | 4,551 | |||||||||||||||
Class Of Warrants Or Right Exercised | 45,510 | |||||||||||||||
Shares underlying warrants that may be exercised based on trading price, period after issuance | 120 days | |||||||||||||||
Percentage of shares underlying warrants that may be exercised based on trading price | 10% | |||||||||||||||
Shares underlying warrants that may be exercised, number of trading days for calculation of trading price | TradingDay | 10 | |||||||||||||||
Class of warrants or right exercised | 45,510 | |||||||||||||||
Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Investor warrants exercised | 4,551 | 10,648 | ||||||||||||||
Deferred financing costs | $ | $ 27,946 | |||||||||||||||
Common Stock | Public Offering | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock issued | 1,500,000 | |||||||||||||||
Common Stock | Over-Allotment Option | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock issued | 165,000 | |||||||||||||||
Additional Paid-In- Capital | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Issuance costs in additional paid in capital | $ | 61,938 | |||||||||||||||
Deferred financing costs | $ | 11,609,670 | |||||||||||||||
Investor Warrants | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Investor warrants exercised | 106,480 | |||||||||||||||
Common stock issued | 10,648 | |||||||||||||||
Warrants To Purchase Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock issued amount | $ | $ 1,000,000 | $ 1,000,000 | ||||||||||||||
Common stock issued | 50,000 | 50,000 | ||||||||||||||
Number of warrants to purchase common stock | 1 | 1 | ||||||||||||||
Shares issued price per share | $ / shares | $ 20 | $ 20 | ||||||||||||||
Common warrants exercisable price per share | $ / shares | $ 20 | $ 20 | ||||||||||||||
Common warrants expiration term | 7 years | 7 years | ||||||||||||||
Class A Preferred Units | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividends on preferred stock | $ | $ (95,000) |
Equity - Schedule of Warrants I
Equity - Schedule of Warrants Issued and Outstanding with Exercise Price (Details) - $ / shares | Sep. 30, 2021 | Sep. 08, 2021 | Nov. 13, 2020 | Apr. 25, 2019 | Mar. 31, 2024 |
Class Of Warrant Or Right [Line Items] | |||||
Issue Date | Nov. 13, 2020 | Apr. 25, 2019 | |||
Warrants Issued and Outstanding | 852,690 | ||||
Exercise Price of $10.00 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Issue Date | Sep. 30, 2021 | Sep. 08, 2021 | |||
Exercise price | $ 10 | $ 10 | |||
Warrants Issued and Outstanding | 165,000 | 437,840 | |||
Exercise Price of $12.50 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Issue Date | Sep. 30, 2021 | Sep. 08, 2021 | |||
Exercise price | $ 12.5 | $ 12.5 | |||
Warrants Issued and Outstanding | 14,850 | 135,000 | |||
Exercise Price of $20.00 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Exercise price | $ 20 | $ 20 | |||
Warrants Issued and Outstanding | 50,000 | 50,000 |
Equity - Summary of Warrants Ou
Equity - Summary of Warrants Outstanding (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Number of Warrants, Beginning balance | 898,200 | 1,102,900 |
Number of Warrants, Exercised | (45,510) | (106,480) |
Number of Warrants, Ending balance | 852,690 | 996,420 |
Warrants exercisable | 852,690 | 996,420 |
Weighted Average Price, Beginning balance | $ 11.53 | $ 11.25 |
Weighted Average Price, Exercised | 10 | 10 |
Weighted Average Price, Ending balance | 11.61 | 11.38 |
Weighted Average Price, Warrants exercisable | $ 11.61 | $ 11.38 |
Weighted Average Remaining Life, Beginning balance | 2 years 8 months 12 days | 3 years 8 months 12 days |
Weighted Average Remaining Life, Ending balance | 2 years 6 months | 3 years 6 months |
Weighted Average Remaining Life, Warrants exercisable | 2 years 6 months | 3 years 6 months |
Equity - Schedule of Restricted
Equity - Schedule of Restricted Common Shares Issued (Details) - Restricted Shares - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares Outstanding at beginning of the period | 91,516 | 58,502 |
Restricted Shares Issued | 0 | 98,593 |
Restricted Shares Vested | (34,888) | (45,857) |
Number of Restricted Shares Outstanding at end of the period | 56,628 | 111,238 |
Equity - Schedule of Cash Distr
Equity - Schedule of Cash Distributions (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Dividend Tranche Two | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jan. 03, 2024 |
Record Date | Mar. 15, 2024 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Three | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jan. 03, 2024 |
Record Date | Feb. 14, 2024 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Four | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jan. 03, 2024 |
Record Date | Jan. 15, 2024 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Five | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Oct. 03, 2023 |
Record Date | Dec. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Six | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Oct. 03, 2023 |
Record Date | Nov. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Seven | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Oct. 03, 2023 |
Record Date | Oct. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Eight | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jul. 03, 2023 |
Record Date | Sep. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Nine | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jul. 03, 2023 |
Record Date | Aug. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Ten | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jul. 03, 2023 |
Record Date | Jul. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Eleven | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Apr. 03, 2023 |
Record Date | Jun. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Twelve | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Apr. 03, 2023 |
Record Date | May 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Thirteen | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Apr. 03, 2023 |
Record Date | Apr. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Fourteen | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jan. 03, 2023 |
Record Date | Mar. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Fifteen | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jan. 03, 2023 |
Record Date | Feb. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Dividend Tranche Sixteen | |
Dividends Payable [Line Items] | |
Board of Directors Authorized Date | Jan. 03, 2023 |
Record Date | Jan. 15, 2023 |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.039 |
Mortgage Loans - Schedule of Pr
Mortgage Loans - Schedule of Promissory Notes (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Apr. 01, 2022 | Apr. 30, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | ||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 64,681,274 | ||||
Promissory Notes | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.85% | 2.50% | |||
Mortgages [Member] | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | 60,550,913 | ||||
Long-term debt, gross | 57,823,894 | $ 58,143,672 | |||
Less Debt Discount, net | (383,446) | (383,767) | |||
Less: debt issuance costs, net | (895,136) | (942,595) | |||
Long-term debt | 56,545,312 | 56,817,310 | |||
Mortgages [Member] | 7-11 - Washington, DC; Starbucks-South Tampa, FL; and Pratt & Whitney-Hunstville, Alabama | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [1] | $ 11,287,500 | |||
Interest Rate | 4.17% | ||||
Maturity date | Mar. 06, 2030 | ||||
DSCR Required | 1.25% | ||||
Long-term debt, gross | $ 10,705,459 | 10,757,239 | |||
Mortgages [Member] | GSA-Navy - Norfolk, Virginia | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | $ 8,260,000 | ||||
Interest Rate | 3.50% | ||||
Maturity date | Sep. 30, 2024 | ||||
DSCR Required | 1.25% | ||||
Long-term debt, gross | $ 7,281,369 | 7,341,804 | |||
Mortgages [Member] | PRA Holdings, Inc. - Norfolk, Virginia | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | $ 5,216,749 | ||||
Interest Rate | 3.50% | ||||
Maturity date | Oct. 23, 2024 | ||||
DSCR Required | 1.25% | ||||
Long-term debt, gross | $ 4,520,121 | 4,562,722 | |||
Mortgages [Member] | Sherwin-Williams - Tampa, Florida | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | $ 1,286,664 | ||||
Interest Rate | [2] | 3.72% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.20% | ||||
Long-term debt, gross | $ 1,278,844 | 1,286,664 | |||
Mortgages [Member] | GSA-FBI - Manteo, North Carolina | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 928,728 | |||
Interest Rate | [4] | 3.85% | |||
Maturity date | Mar. 31, 2032 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 908,118 | 913,958 | |||
Mortgages [Member] | Irby Construction - Plant City , Florida | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 928,728 | |||
Interest Rate | [4] | 3.85% | |||
Maturity date | Mar. 31, 2032 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 908,118 | 913,958 | |||
Mortgages [Member] | La Z Boy Inc Rockford Il Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | $ 2,100,000 | ||||
Interest Rate | [4] | 3.85% | |||
Maturity date | Mar. 31, 2032 | ||||
Long-term debt, gross | $ 2,053,584 | 2,066,604 | |||
Mortgages [Member] | Best Buy - Grand Junction, Colorado | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 2,552,644 | |||
Interest Rate | [4] | 3.85% | |||
Maturity date | Mar. 31, 2032 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 2,495,997 | 2,512,050 | |||
Mortgages [Member] | Fresenius - Chicago, Illinois | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 1,727,108 | |||
Interest Rate | [4] | 3.85% | |||
Maturity date | Mar. 31, 2032 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 1,688,781 | 1,699,642 | |||
Mortgages [Member] | Starbucks - North Tampa, Florida | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 1,298,047 | |||
Interest Rate | [4] | 3.85% | |||
Maturity date | Mar. 31, 2032 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 1,269,241 | 1,277,404 | |||
Mortgages [Member] | Kohls @ Tucson, Arizona | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 3,964,745 | |||
Interest Rate | [4] | 3.85% | |||
Maturity date | Mar. 31, 2032 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 3,878,651 | 3,901,694 | |||
Mortgages [Member] | City Of San Antonio Prek San Antonio Tx Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 6,444,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 6,394,286 | 6,416,362 | |||
Mortgages [Member] | Dollar General Market Bakersfield Ca Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 2,428,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 2,409,212 | 2,417,587 | |||
Mortgages [Member] | Dollar General Big Spring Tx Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 635,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 630,086 | 632,277 | |||
Mortgages [Member] | Dollar General Castalia Oh Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 556,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 551,698 | 553,615 | |||
Mortgages [Member] | Dollar General East Wilton Me Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 726,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 720,382 | 722,886 | |||
Mortgages [Member] | Dollar General Lakeside Oh Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 567,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 562,612 | 564,568 | |||
Mortgages [Member] | Dollar General Litchfield Me Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 624,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 619,171 | 621,324 | |||
Mortgages [Member] | Dollar General Mount Gilead Oh Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 533,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 528,876 | 530,714 | |||
Mortgages [Member] | Dollar General Thompsontown Pa Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 556,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 551,698 | 553,615 | |||
Mortgages [Member] | Dollar Tree Stores Inc Morrow Ga Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 647,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 641,993 | 644,225 | |||
Mortgages [Member] | Exp U S Services Inc Exp U S Services Inc Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 2,950,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 2,927,172 | 2,937,348 | |||
Mortgages [Member] | General Services Administration Vacaville Ca Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 1,293,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 1,282,995 | 1,287,454 | |||
Mortgages [Member] | Walgreens Santa Maria Ca Member | |||||
Debt Instrument [Line Items] | |||||
Promissory note issued amount | [3] | $ 3,041,000 | |||
Interest Rate | [4] | 7.47% | |||
Maturity date | Aug. 10, 2028 | ||||
DSCR Required | 1.50% | ||||
Long-term debt, gross | $ 3,015,430 | $ 3,027,958 | |||
[1] (a) Loan subject to prepayment penalty (b) Fixed via interest rate swap (c) One loan in the amount of $ 11.4 million secured by six properties and allocated to each property based on each property's appraised value. (d) Adjustment effective April 1, 2027 equal to 5-year Treasury plus 2.5 % and subject to a floor of 3.85 % (e) One loan in the amount of $21.0 million secured by 13 properties and allocated to each property based on each property's appraised value. |
Mortgage Loans - Schedule of _2
Mortgage Loans - Schedule of Promissory Notes (Parenthetical) (Details) - USD ($) | 1 Months Ended | |||
Apr. 01, 2022 | Apr. 30, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Secured debt | $ 56,545,312 | $ 56,817,310 | ||
Loan Agreements | ||||
Debt Instrument [Line Items] | ||||
Secured debt | $ 11,400,000 | |||
Debt instrument, fixed interest rate | 2.50% | |||
Debt instrument, subject to a floor interest rate | 3.85% | |||
Promissory Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.85% | 2.50% | ||
Secured debt | $ 2,100,000 |
Mortgage Loans- Additional Info
Mortgage Loans- Additional Information (Details) | 1 Months Ended | 3 Months Ended | ||||||||||
Jan. 01, 2024 USD ($) | Aug. 10, 2023 USD ($) | Oct. 14, 2022 USD ($) | Aug. 09, 2022 USD ($) | Jul. 20, 2022 USD ($) | Apr. 01, 2022 USD ($) Loan Property | Apr. 30, 2022 | Mar. 31, 2024 USD ($) Loan Property | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Mar. 08, 2023 USD ($) | Sep. 13, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||
Amortization of debt issuance costs | $ 47,780 | $ 28,865 | ||||||||||
Long-term debt, gross | 64,681,274 | |||||||||||
Debt Instrument, Increase (Decrease), Net | $ 5,500,000 | |||||||||||
Other payable - related party | 1,357,380 | $ 1,809,840 | ||||||||||
Secured debt | $ 56,545,312 | 56,817,310 | ||||||||||
Number Of Mortage Loan | Loan | 1 | 2 | ||||||||||
Loan Agreements | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured debt | $ 11,400,000 | |||||||||||
Number of encumbered properties | Property | 6 | |||||||||||
Debt Instrument Interest Rate Stated Percentage | 2.50% | |||||||||||
Debt instrument, subject to a floor interest rate | 3.85% | |||||||||||
Promissory Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amortization of debt issuance costs | $ 47,780 | 28,865 | ||||||||||
Payments of debt issuance costs | $ 0 | 0 | ||||||||||
Loan to value required not interest rate | 54% | |||||||||||
Other payable - related party | $ 1,357,380 | $ 1,809,840 | ||||||||||
Installment Paid For Issuance Of Other Payable Related Party For Redemption Of Redeemable Non Controlling Interest | $ 1,554,920 | |||||||||||
Secured debt | $ 2,100,000 | |||||||||||
Number of encumbered properties | Property | 6 | |||||||||||
Loan Secured by Properties | Property | 6 | |||||||||||
Number Of Mortage Loan | Loan | 1 | |||||||||||
Number Of Refinanceing Properties | Property | 7 | |||||||||||
Interest rate | 3.85% | 2.50% | ||||||||||
Promissory Notes | DC/Tampa/Huntsville Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured debt | $ 10,700,000 | |||||||||||
Promissory Notes | Tampa Sherwin Williams Property | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured debt | $ 1,300,000 | |||||||||||
Promissory Notes | Promissory Notes Required 1.50 DSCR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt service coverage ratios | 1.50% | |||||||||||
Promissory Notes | Bayport Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured debt | $ 11,800,000 | |||||||||||
Other Payable Related Party Member | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | 1,357,380 | |||||||||||
Brown Family Enterprises, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured Non Convertible Promissory Note | $ 1,500,000 | |||||||||||
Interest rate on debt instrument | 9% | |||||||||||
GIP13, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on debt instrument | 7.47% | |||||||||||
GIP13, LLC [Member] | Loan From Related Party [Member] | Loan Agreements | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest and principal payment due | $ 156,000 | |||||||||||
Interest rate | 3.25% | |||||||||||
GIP13, LLC [Member] | Other Payable Related Party Member | Loan Agreements | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 21,000,000 | |||||||||||
President And CEO [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Guaranty fee expense | $ 385,395 | 97,898 | $ 60,493 | |||||||||
Interest Expense | 96,360 | |||||||||||
President And CEO [Member] | GIP13, LLC [Member] | Loan From Related Party [Member] | Loan Agreements | Nonrecourse | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured debt | $ 7,500,000 | |||||||||||
Redemption Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Issuance of Other payable - related party for redemption of Redeemable Non-Controlling Interest | $ 2,912,300 | $ 2,912,299 | ||||||||||
Other payable - related party | 1,357,380 | |||||||||||
Installment Paid For Issuance Of Other Payable Related Party For Redemption Of Redeemable Non Controlling Interest | 1,554,920 | $ 1,554,920 | $ 1,554,920 | |||||||||
Two Mortgage Loan Agreements [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | $ 2,079,178 | |||||||||||
Debt Discount | 383,767 | |||||||||||
Aggregate amount of loan | 2.1 | |||||||||||
Two Mortgage Loan Agreements [Member] | Promissory Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Secured debt | $ 11,400,000 | $ 13,500,000 | ||||||||||
Interest Rate Swap [Member] | GIP13, LLC [Member] | Loan From Related Party [Member] | Loan Agreements | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.47% | |||||||||||
Interest Rate Floor [Member] | Promissory Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Interest Rate During Period | 3.85% |
Mortgage Loans - Schedule of Mi
Mortgage Loans - Schedule of Minimum Required Principal Payments (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
2024 (9 months remaining) | $ 13,816,704 | |
2025 | 926,633 | |
2026 | 6,476,467 | |
2027 | 1,033,322 | |
2028 | 21,341,791 | |
Thereafter | 21,086,357 | |
Long-term debt, gross | 64,681,274 | |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
2024 (9 months remaining) | 12,459,324 | |
2025 | 926,633 | |
2026 | 976,467 | |
2027 | 1,033,322 | |
2028 | 21,341,791 | |
Thereafter | 21,086,357 | |
Long-term debt, gross | 57,823,894 | $ 58,143,672 |
Other Payable Related Party Member | ||
Debt Instrument [Line Items] | ||
2024 (9 months remaining) | 1,357,380 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Long-term debt, gross | 1,357,380 | |
Loan Payable Related Party Member | ||
Debt Instrument [Line Items] | ||
2024 (9 months remaining) | 0 | |
2025 | 0 | |
2026 | 5,500,000 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Long-term debt, gross | $ 5,500,000 |
Related Party - Additional Info
Related Party - Additional Information (Details) | 3 Months Ended | ||||||||||
Jan. 01, 2024 USD ($) | Jul. 21, 2023 USD ($) | Aug. 09, 2022 USD ($) | Jul. 20, 2022 USD ($) | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Mar. 08, 2023 USD ($) | Oct. 14, 2022 USD ($) | Sep. 13, 2022 USD ($) | Nov. 30, 2020 USD ($) ft² | |
Related Party Transaction [Line Items] | |||||||||||
Common Stock Shares Issued | shares | 5,419,855 | 2,620,707 | |||||||||
Due To Other Related Parties Noncurrent Agreement | $ 1,357,380 | $ 1,809,840 | |||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||||||||
Additional paid-in capital | $ 29,589,564 | $ 18,472,049 | |||||||||
Brown Family Enterprises, LLC | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Secured Non Convertible Promissory Note | $ 1,500,000 | ||||||||||
Interest rate on debt instrument | 9% | ||||||||||
Promissory note, loan | $ 5,500,000 | ||||||||||
Redemption Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Common Stock Shares Issued | shares | 200,000 | ||||||||||
Issuance of Other payable - related party for redemption of Redeemable Non-Controlling Interest | $ 2,912,300 | $ 2,912,299 | |||||||||
First installment payment | $ 1,554,920 | $ 1,554,920 | $ 1,554,920 | ||||||||
Due To Other Related Parties Noncurrent Agreement | $ 1,357,380 | ||||||||||
Common stock, par value | $ / shares | $ 6 | ||||||||||
Additional paid-in capital | $ 1,198,000 | ||||||||||
Common Stock | Redemption Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Common stock, par value | $ / shares | $ 2,000 | ||||||||||
President And Ceo [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Guaranty fee expense | $ 385,395 | $ 97,898 | $ 60,493 | ||||||||
Interest expense | $ 96,360 | ||||||||||
GIP fund 1, LLC | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 0.09% | ||||||||||
GIP fund 1, LLC | Building In Tampa FL | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Area of property | ft² | 3,500 | ||||||||||
Acquisition of building | $ 1,800,000 | ||||||||||
GIP fund 1, LLC | President | Building In Tampa FL | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of ownership owned | 11% |
Derivative Financial Instrume_3
Derivative Financial Instruments and Fair Value Measurements (Additional Information) (Details) - USD ($) | 3 Months Ended | ||
Aug. 10, 2023 | Nov. 30, 2020 | Mar. 31, 2024 | |
Derivative [Line Items] | |||
Loss on Derivative | $ 380,550 | ||
Derivative liability | 169,942 | ||
Derivative asset | $ 148,710 | ||
Swap | |||
Derivative [Line Items] | |||
Secured Debt | $ 1.3 | ||
Debt Instrument Basis Spread On Variable Rate1 | 2.75% | ||
Interest rate on debt instrument | 3.72% | ||
GIP13, LLC | |||
Derivative [Line Items] | |||
Secured Debt | $ 21 | ||
Debt Instrument Basis Spread On Variable Rate1 | 3.25% | ||
Interest rate on debt instrument | 7.47% |
Derivative Financial Instrume_4
Derivative Financial Instruments and Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying amounts and estimated fair values of financial instruments | ||
Derivative asset | $ 148,710 | |
Derivative liability | 169,942 | |
Cash and cash equivalents | Level 3 | ||
Carrying amounts and estimated fair values of financial instruments | ||
Derivative asset | 1,655,820 | $ 3,117,446 |
Fair value disclosure assets | 1,655,820 | 3,117,446 |
Restricted cash | Level 3 | ||
Carrying amounts and estimated fair values of financial instruments | ||
Derivative asset | 34,500 | 34,500 |
Fair value disclosure assets | 34,500 | 34,500 |
Interest rate swaps | Level 3 | ||
Carrying amounts and estimated fair values of financial instruments | ||
Derivative asset | 148,710 | 135,642 |
Fair value disclosure assets | 148,710 | 135,642 |
Derivative liability | 169,942 | 537,424 |
Fair value disclosure liabilities | $ 169,942 | $ 537,424 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | 3 Months Ended | |||
Apr. 01, 2024 TradingDay shares | Mar. 31, 2024 Tenant | Mar. 31, 2023 Tenant | Apr. 04, 2024 $ / shares | |
Subsequent Event [Line Items] | ||||
Number Of Tenants | Tenant | 4 | 4 | ||
Investor warrants exercised | 2,300 | |||
Dividend Tranche Two | ||||
Subsequent Event [Line Items] | ||||
Board of Directors Authorized Date | Jan. 03, 2024 | |||
Record Date | Mar. 15, 2024 | |||
Dividend Tranche Three | ||||
Subsequent Event [Line Items] | ||||
Board of Directors Authorized Date | Jan. 03, 2024 | |||
Record Date | Feb. 14, 2024 | |||
Dividend Tranche Four | ||||
Subsequent Event [Line Items] | ||||
Board of Directors Authorized Date | Jan. 03, 2024 | |||
Record Date | Jan. 15, 2024 | |||
Dividend Tranche Five | ||||
Subsequent Event [Line Items] | ||||
Board of Directors Authorized Date | Oct. 03, 2023 | |||
Record Date | Dec. 15, 2023 | |||
Subsequent Events | ||||
Subsequent Event [Line Items] | ||||
Investor warrants exercised | 23,000 | |||
Percentage of shares underlying warrants that may be exercised based on trading price | 10% | |||
Shares underlying warrants that may be exercised, number of trading days for calculation of trading price | TradingDay | 10 | |||
Subsequent Events | Dividend Tranche One | ||||
Subsequent Event [Line Items] | ||||
Dividends payable, amount per share | $ / shares | $ 0.039 |