Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 11, 2022 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2022 | |
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 | 2,250,756 | |
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, 2022 | Dec. 31, 2021 |
Investment in real estate | ||
Property and improvements | $ 52,267,674 | $ 41,025,309 |
Tenant improvements | 907,382 | 482,701 |
Acquired lease intangible assets | 4,677,928 | 3,304,014 |
Less accumulated depreciation and amortization | (3,943,236) | (3,512,343) |
Total investments | 53,909,748 | 41,299,681 |
Investment in tenancy-in-common | 733,635 | 725,082 |
Cash and cash equivalents | 4,607,952 | 10,589,576 |
Restricted cash | 34,500 | 34,500 |
Deferred rent asset | 174,364 | 156,842 |
Prepaid expenses | 494,709 | 237,592 |
Deferred financing costs | 26,023 | |
Accounts receivable | 95,414 | 88,661 |
Escrow deposit and other assets | 197,486 | 288,782 |
Right of use asset, net | 6,297,087 | |
Total Assets | 66,570,918 | 53,420,716 |
Liabilities | ||
Accounts payable | 94,816 | 201,727 |
Accrued expenses | 305,964 | 134,816 |
Acquired lease intangible liabilities, net | 718,864 | 577,388 |
Insurance payable | 288,693 | 33,359 |
Deferred rent liability | 247,746 | 228,938 |
Right of use liability, net | 6,313,954 | |
Mortgage loans, net of unamortized discount of $682,898 and $637,693 at March 31, 2022 and December 31, 2021, respectively | 35,027,836 | 28,969,295 |
Total liabilities | 42,997,873 | 30,145,523 |
Redeemable Non-Controlling Interests | 10,746,509 | 9,621,159 |
Stockholders' Equity | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 2,247,768 shares issued and outstanding at March 31, 2022 and 2,172,950 issued and outstanding at December 31, 2021 | 22,477 | 21,729 |
Additional paid-in capital | 18,804,217 | 19,051,929 |
Accumulated deficit | (6,000,158) | (5,419,624) |
Total Generation Income Properties, Inc. stockholders' equity | 12,826,536 | 13,654,034 |
Total Liabilities and Stockholders' Equity | $ 66,570,918 | $ 53,420,716 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 2,247,768 | 2,172,950 |
Common stock, shares outstanding | 2,247,768 | 2,172,950 |
Mortgage Loans | ||
Mortgage loans, net of unamortized discount | $ 682,898 | $ 637,693 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Expenses | ||
General, administrative and organizational costs | $ 341,680 | $ 188,417 |
Building expenses | 253,391 | 180,553 |
Depreciation and amortization | 430,893 | 379,511 |
Interest expense, net | 330,294 | 354,989 |
Compensation costs | 279,742 | 155,121 |
Total expenses | 1,636,000 | 1,258,591 |
Operating loss | (454,065) | (321,703) |
Equity in income of investment in tenancy-in-common | 8,552 | |
Net Loss | (445,513) | (321,703) |
Less: Net income attributable to non-controlling interest | 135,021 | 150,826 |
Net Loss attributable to Generation Income Properties, Inc. | $ (580,534) | $ (472,529) |
Total Weighted Average Shares of Common Stock Outstanding – Basic | 2,196,056 | 579,642 |
Total Weighted Average Shares of Common Stock Outstanding – Diluted | 2,196,056 | 579,642 |
Basic Loss Per Share Attributable to Common Stockholders | $ (0.26) | $ (0.82) |
Diluted Loss Per Share Attributable to Common Stockholders | $ (0.26) | $ (0.82) |
Rental Income | ||
Revenue | ||
Revenue | $ 1,181,935 | $ 936,888 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASHFLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (445,513) | $ (321,703) |
Adjustments to reconcile net loss to cash used in operating activities | ||
Depreciation | 316,901 | 277,311 |
Amortization of acquired lease intangible assets | 113,992 | 102,200 |
Amortization of debt issuance costs | 33,673 | 31,103 |
Amortization of below market leases | (23,841) | (33,161) |
Amortization of above market ground lease | (43) | 0 |
Common stock issued for services | 33,000 | |
Restricted stock unit compensation | 93,926 | 49,471 |
Ground lease amortization | 7,247 | |
Equity in earnings on investment in tenancy-in-common | (8,553) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,753) | (6,360) |
Other assets | (83,704) | (39,673) |
Deferred rent asset | (17,522) | 9,377 |
Prepaid expenses | (257,117) | (252,584) |
Accounts payable | (106,911) | (50,579) |
Accrued expenses | 145,290 | (6,370) |
Right of use liability | 9,620 | |
Deferred rent liability | 18,808 | (9,741) |
Net cash used in operating activities | (210,500) | (217,709) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of land, buildings, other tangible and intangible assets | (12,775,600) | (1,758,322) |
Escrow return (deposit) for purchase of properties | 75,000 | (25,000) |
Net cash used in investing activities | (12,700,600) | (1,783,322) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of redeemable interest | 1,109,570 | 500,000 |
Mortgage loan borrowings | 6,250,000 | 1,275,000 |
Mortgage loan repayments | (146,254) | (88,021) |
Stock issuance costs | (6,091) | |
Deferred financing costs | (165) | (14,000) |
Debt issuance costs | (78,878) | (22,662) |
Insurance financing borrowings | 288,693 | 277,059 |
Insurance financing repayments | (33,359) | (83,743) |
Distribution on redeemable non-controlling interests | (119,241) | (150,826) |
Dividends paid on common stock | (334,799) | (114,373) |
Net cash generated from financing activities | 6,929,476 | 1,578,434 |
Net decrease in cash and cash equivalents | (5,981,624) | (422,597) |
Cash and cash equivalents and restricted cash - beginning of period | 10,624,076 | 1,122,364 |
Cash and cash equivalents and restricted cash - end of period | 4,642,452 | 699,767 |
CASH TRANSACTIONS | ||
Interest Paid | 284,569 | 317,003 |
NON-CASH TRANSACTIONS | ||
Stock issued for accrued liabilities | $ 11,000 | |
Deferred distribution on redeemable non-controlling interests | 15,780 | |
Right of use asset and liability for ground lease related to property acquisition | $ 6,304,334 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) | Total | Common Stock | Additional Paid-In- Capital | Accumulated Deficit |
Balance at Dec. 31, 2020 | $ 1,370,039 | $ 5,770 | $ 5,541,411 | $ (4,177,142) |
Balance, Shares at Dec. 31, 2020 | 576,918 | |||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2020 | 8,684,431 | |||
Common stock issued for services | 44,000 | $ 22 | 43,978 | |
Common stock issued for services, shares | 2,200 | |||
Restricted stock unit compensation | 49,471 | $ 37 | 49,434 | |
Restricted stock unit compensation, Shares | 3,749 | |||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 500,000 | |||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 500,000 | |||
Distribution on Redeemable Non-Controlling Interest | (150,826) | |||
Dividends paid on common stock | (114,373) | (114,373) | ||
Net (loss) income for the quarter | (472,529) | (472,529) | ||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 150,826 | |||
Balance at Mar. 31, 2021 | 876,608 | $ 5,829 | 5,520,450 | (4,649,671) |
Balance, Shares at Mar. 31, 2021 | 582,867 | |||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2021 | 9,184,431 | |||
Balance at Dec. 31, 2021 | 13,654,034 | $ 21,729 | 19,051,929 | (5,419,624) |
Balance, Shares at Dec. 31, 2021 | 2,172,950 | |||
Redeemable Non-Controlling Interest, Balance at Dec. 31, 2021 | 9,621,159 | |||
Restricted stock unit compensation | 93,926 | $ 471 | 93,455 | |
Restricted stock unit compensation, Shares | 47,142 | |||
Cashless exercise of warrants | $ 277 | (277) | ||
Warrants exercised, Shares | 27,676 | |||
Stock issuance costs | (6,091) | (6,091) | ||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 1,109,570 | |||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 1,109,570 | |||
Distribution on Redeemable Non-Controlling Interest | (119,241) | |||
Dividends paid on common stock | (334,799) | (334,799) | ||
Net (loss) income for the quarter | (580,534) | (580,534) | ||
Redeemable Non-Controlling Interest, Net (loss) income for the quarter | 135,021 | |||
Balance at Mar. 31, 2022 | 12,826,536 | $ 22,477 | $ 18,804,217 | $ (6,000,158) |
Balance, Shares at Mar. 31, 2022 | 2,247,768 | |||
Redeemable Non-Controlling Interest, Balance at Mar. 31, 2022 | $ 10,746,509 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2022 | |
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. The Company is the general partner of the Operating Partnership and as of March 31, 2022 owned 82.2% of the outstanding common units of the Operating Partnership. The Company formed a Maryland entity GIP REIT OP Limited LLC in 2018 that owns 0.002% 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, 2022, the Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis owned 12 properties and held partial interests in one additional property through a tenancy-in-common investment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 March 18, 2022. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The Company adopted the calendar year as its basis of reporting. Certain 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. 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 held by the Company related to tenant escrow reimbursements and immediate 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: March 31, December 31, 2022 2021 Cash and cash equivalents $4,607,952 $10,589,576 Restricted cash 34,500 34,500 Total cash and cash equivalents and restricted cash $4,642,452 $10,624,076 Revenue Recognition We have determined that all of our leases should be accounted for as operating leases. The Company leases real estate to its tenants under long-term net leases which we account for as operating leases. Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Certain leases also provide for additional rent based on tenants’ sales volumes. These rents are recognized when determinable after the tenant exceeds a sales breakpoint. Recognizing rent escalations on a straight-line method results in rental revenue in the early years of a lease being higher than actual cash received, creating a straight-line rent asset. Conversely, when actual cash collected is greater than the amount recognized on a straight-line basis, the difference is recognized as a liability. To the extent any of the tenants under these leases become unable to pay their contractual cash rents, the Company may be required to write down the straight-line rent receivable from those tenants, which would reduce rental income. Deferred rent asset as of March 31, 2022 and December 31, 2021 was approximately $174,400 and $156,800, respectively. Deferred rent liability as of March 31, 2022 and December 31, 2021 was approximately $247,700 and $228,900, respectively, of which $202,200 and $188,000 respectively related to prepaid rent. 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 collectability exists with respect to any tenant changes, the Company recognizes 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 method of reporting rental revenue. There were no allowances for receivables recorded for the three months ended March 31, 2022 or 2021. The Company’s leases provide for reimbursement from tenants for certain common area maintenance (“CAM”) expenses, insurance, and real estate taxes. A portion of our operating cost reimbursement revenue and expense is estimated each period and is recognized as rental income and building expenses 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 over the 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 in the Company’s Consolidated Statements of Operations based on their fair values determined 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. Real Estate Acquisitions of real estate are recorded at cost. Real Estate Purchase Price Assignment 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 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. The Company assessed whether the purchase of the building falls within the definition of a business under Accounting Standards Codification (“ ASC ”) 805 and concluded that all asset transactions were an asset acquisition, therefore it was recorded at the purchase price, including capitalized acquisition costs, which is 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 lease is the estimated cost to replace the leases (including loss of rent, estimated commissions and legal fees paid in similar leases). The capitalized 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 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, site improvements, which are generally between 5 and 6 years, and tenant improvements, which are generally between 2 and 10 years. Lease Obligations The Company has a certain property within its consolidated real estate 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 in the accompanying Consolidated Balance Sheets and are depreciated over the shorter of the useful life of the improvements or the lease term. Under ASC Topic 842, the Company recognizes Lease liabilities on its Consolidated Balance Sheets 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 operating lease liability. Income Taxes The Company intends to operate and be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code (“Code”), commencing with our taxable year ending December 31, 2021. 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. We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Under this method, we determine deferred tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes us to change our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes us to change our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur. 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 judgement changes as a result of new information. 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 (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of warrants), and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive securities such as warrants, options and restricted stock units if their effect is anti-dilutive. As of March 31, 2022 and 2021, all potentially dilutive securities were excluded because the effect was anti-dilutive. Impairments The Company reviews real estate investments 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. There were no impairments during the three months ended March 31, 2022 or 2021. The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis which is a Level 3 input and analysis of recent comparable sales transactions or 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. |
Investments in Real Estate
Investments in Real Estate | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Investments in Real Estate | Note 3 – Investments in Real Estate Acquisitions: During the three months ended March 31, 2022, the Company acquired three properties. The purchase price of the asset acquisitions was allocated to land, building, tenant improvements, site improvements, and acquired lease intangible assets and liabilities based on management’s estimate. Fresenius -Chicago, IL Starbucks -Tampa, FL Kohl's -Tucson, AZ Total Property and improvements $ 2,885,732 $ 2,144,121 $ 6,153,408 $ 11,183,261 Tenant improvements 55,041 20,504 349,136 424,681 Acquired lease intangible assets 276,013 112,830 981,203 1,370,046 Total investments 3,216,786 2,277,455 7,483,747 12,977,988 Less acquired lease intangible liabilities (19,864 ) (13,497 ) (131,999 ) (165,360 ) Total investments, net $ 3,196,922 $ 2,263,958 $ 7,351,748 $ 12,812,628 Fresenius - Chicago, IL: On January 7, 2022, the Company acquired an approximately 10,900 square foot single Starbucks - Tampa, FL: On January 14, 2022, the Company acquired an approximately 2,600 square foot single Kohl’s - Tucson, AZ : single (NYSE: KSS) During the three months ended March 31, 2021, the Company acquired one property. GSA- Manteo, NC Property $ 2,149,015 Tenant improvements - Acquired lease intangible assets 100,379 Total investments 2,249,394 Less acquired lease intangible liabilities (511,620 ) Total investments $ 1,737,774 GSA-FBI - Manteo, NC: On February 11, 2021, acquired an approximately 7,500 square foot single |
Acquired Lease Intangible Asset
Acquired Lease Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2022 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Acquired Lease Intangible Assets, Net | Note 4 – Acquired Lease Intangible Assets, net Intangible assets, net is comprised of the following: March 31, December 31, 2022 2021 Acquired lease intangible assets $ 4,677,928 $ 3,304,014 Accumulated amortization (1,108,849 ) (994,857 ) Acquired lease intangible assets, net $ 3,569,079 $ 2,309,157 The amortization for lease intangible assets for the three months ended March 31, 2022 and 2021 was $113,992 and $102,200, respectively. The future amortization for intangible assets is listed below (rounded to the nearest hundred): As of March 31, 2022 2022 $413,500 2023 543,000 2024 543,000 2025 509,800 2026 489,900 Thereafter 1,069,900 $3,569,100 |
Acquired Lease Intangible Liabi
Acquired Lease Intangible Liabilities, Net | 3 Months Ended |
Mar. 31, 2022 | |
Below Market Lease [Abstract] | |
Acquired Lease Intangible Liabilities, net | Note 5 – Acquired Lease Intangible Liabilities, net Acquired lease intangible liabilities is comprised of the following: March 31, December 31, 2022 2021 Acquired lessor lease intangible liabilities $965,216 $845,063 Less: recognized rental income (291,516) (267,675) Total below market lease, net $673,700 $577,388 Acquired lessee lease intangible liability $45,207 $- Less: recognized decrease in building expense (43) - Total above market lease, net $45,164 $- Total acquired lease intangible liabilities, net $718,864 $- The amortization for below market leases for the three months ended March 31, 2022 and 2021 was $23,841 and $33,161, respectively. The amortization for the above market lease liability for the three months ended March 31, 2022 and 2021 was approximately $43 and $0, respectively. The future amortization for intangible liabilities is listed below (rounded to the nearest hundred): As of March 31, 2022 2022 $78,900 2023 105,200 2024 105,200 2025 105,200 2026 93,900 Thereafter 230,500 $718,900 |
Lessee Accounting
Lessee Accounting | 3 Months Ended |
Mar. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Lessee Accounting | Note 6 – 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 through the year 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 under the Company's ground lease was approximately $16,000 for the three months ended March 31, 2022. 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 Right of use liability, net was approximately $14,000 during the three months ended March 31, 2022. The following table summarizes the undiscounted future cash flows by year attributable to the ground lease liability as of March 31, 2022 and provides a reconciliation to the Right of use liability included in the accompanying Consolidated Balance Sheet as of March 31, 2022. As of March 31, 2022 2022 $ 188,913 2023 232,701 2024 244,077 2025 245,111 2026 245,111 Thereafter 22,065,755 Total undiscounted liability 23,221,668 Present value discount 16,907,714 Right of use liability 6,313,954 Discount rate 4.58 % Term 62 years Note 9 – Leases Future Minimum Rents For the three months ended March 31, 2022 and 2021 we had three and four tenants, respectively, that each account for more than 10% of our rental revenue as indicated below: 2022 2021 Pratt and Whitney – Huntsville, AL property 14.5% 18.6% General Services Administration – Walmer Ave. Norfolk, VA property 19.5% 24.0% Maersk Shipping – Walmer Ave. Norfolk, VA property Less than 10% 10.5% PRA Holding – Corporate Blvd. Norfolk, VA property 16.1% 20.0% The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of March 31, 2022: Future Minimum Base Rent Payments 2022 $3,746,000 2023 4,629,000 2024 4,675,000 2025 4,547,000 2026 4,425,000 Thereafter 8,988,000 $31,010,000 |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests | Note 7 – Redeemable Non-Controlling Interests The following table reflects our Redeemable Non-Controlling Interests: Brown Family Trust Irby Prop Partners Hornstrom GIP Fund I LMB Owenton I LLC Greenwal L.C. Riverside Crossing L.C. Total Balance, December 31, 2020 $1,200,000 $- $- $486,180 $- $4,965,000 $2,033,251 $8,684,431 Issuance of Redeemable Non-Controlling Interest for property acquisition 500,000 - - - - - - 500,000 Distribution on Redeemable Non-Controlling Interest (37,104) - - - - (80,681) (33,041) (150,826) Net income for the quarter 37,104 - - - - 80,681 33,041 150,826 Balance, March 31, 2021 $1,700,000 $- $- $486,180 $- $4,965,000 $2,033,251 $9,184,431 Balance, December 31, 2021 $500,000 $976,756 $659,972 $486,180 $- $4,965,000 $2,033,251 $9,621,159 Issuance of Redeemable Operating Partnership Units for property acquisition 1,109,570 1,109,570 Distribution on Redeemable Non-Controlling Interest (11,260) (19,001) (13,087) (3,938) (15,269) (40,217) (16,469) (119,241) Net income for the quarter 11,260 28,370 19,498 3,938 15,269 40,217 16,469 135,021 Balance, March 31, 2022 $500,000 $986,125 $666,383 $486,180 $1,109,570 $4,965,000 $2,033,251 $10,746,509 As part of the Company’s acquisition of a building for approximately $4,578,800 in Cocoa, FL, one of the Company’s operating subsidiaries entered into a preferred equity agreement with Brown Family Trust on September 11, 2019 pursuant to which the Company’s subsidiary received a capital contribution of $1,200,000. Pursuant to the agreement, the Company was required to pay the preferred equity member a 10% internal rate of return (“IRR”) on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. The Operating Partnership, Generation Income Properties, LP, was the general manager of the subsidiary while Brown Family Trust was a preferred member. Because of the redemption right, the non-controlling interest was presented as temporary equity at redemption value. The Company redeemed the Brown Family Trust $1,200,000 Redeemable Non-Controlling Interest upon the sale of the property in August 2021. As part of the Company’s acquisition of a building for $1,737,800 million 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. Pursuant to the agreement, the Company will pay the preferred equity member a 9% IRR on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. The Operating Partnership, Generation Income Properties, LP, is the general manager of the subsidiary while Brown Family Trust is a preferred member. Because of the redemption right, the non-controlling interest is presented as temporary equity at redemption value. The current redemption amount is $500,000. Distributable operating funds are distributed first to Brown Family Trust until the unpaid preferred return is paid off and then to the Company. The Company paid the Brown Family Trust approximately $11,300 and $37,100 for the three months ended March 31, 2022 and 2021, respectively for the Redeemable Interests in preferred distributions. As part of the Company’s acquisition of a building for $1,757,300 million in Plant City, FL, one of the Company’s operating subsidiaries entered into a preferred equity agreement with preferred equity partners (Irby Prop Partners) on April 21, 2021 pursuant to which the Company’s subsidiary received a capital contribution of $950,000. Pursuant to the agreement, the Company will pay the preferred equity member a 12% total IRR with an 8% IRR paid on a monthly basis and the deferred IRR will be paid at the end of 24 months along with the entire $950,000 amount due after 24 months at the option of the preferred equity member. The Operating Partnership, Generation Income Properties, LP, is the general manager of the subsidiary. Because of the redemption right, the non-controlling interest is presented as temporary equity at redemption value. The current redemption amount is approximately $986,100. Distributable operating funds are distributed first to the preferred equity partners until the unpaid preferred return is paid off and then to the Company. . For the three months ended March 31, 2022, the Company paid the Irby Prop Partners approximately $19,000 in distributions and accrued $9,400 of the deferred IRR. months along with the entire $ 650,000 amount due after 24 months at the option of the preferred equity member . The Operating Partnership, Generation Income Properties, LP, is the general manager of the subsidiary. Because of the redemption right, the non-controlling interest is presented as temporary equity at redemption value. The current redemption amount is approximately $ . Distributable operating funds are distributed first to the preferred equity partners until the unpaid preferred return is paid off and then to the Company . For the three months ended March 31, 2022, the Company paid Mr. Hornstrom approximately $13,100 in distributions and accrued $6 thousand of the deferred IRR. Each of the preferred members described above may redeem their interest on or after the Redemption date (second year anniversary of the Closing), 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 Price in the form of GIPLP UNITS. Such GIPLP UNITS shall be subject to all such restrictions, such as with respect to transferability, as reasonably imposed by GIPLP. The number of GIPLP UNITS issued to any preferred member shall be determined by dividing the total amount of the Redemption Price that such preferred member shall receive in GIPLP UNITS by a 15% discount of the average 30-day market price of Generation Income Properties, Inc. 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 Generation Income Properties, L.P. As part of the Company’s acquisition of two buildings on September 30, 2019 for $19,134,400 in Norfolk, VA, the Operating Partnership entered into contribution agreements with two entities (Greenwal, LC 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 or as of March 31, 2022 a 12.8% interest in our Operating Partnership. Beginning on the first anniversary of the Closing, the contribution agreement allows 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 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 $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 Redeemable Non-Controlling Interest. On March 21, 2022, the Company received notice from an Operating Partnership common unit holder to redeem 10,166 units at $20 per unit and will transact within the terms of the Contribution Agreement funding the redemption with cash on hand. As part of the Company’s acquisition of one building on November 30, 2020 for $1,847,700 in Tampa, FL, the Operating Partnership entered into a contribution agreement with one entity (GIP Fund I) that resulted in the issuance of 24,309 common units in Operating Partnership at $20.00 per share for a total value of $486,180 or as of March 31, 2022 a 0.9% interest in our Operating Partnership. At the time of the acquisition the Company’s President owned 11% of GIP Fund I. Beginning on the first anniversary of the Closing, the contribution agreement allows for the investor to require the Operating Partnership to redeem, all or a portion of its units for common stock of the Company. As such, the Company has determined their equity should be classified as a Redeemable Non-Controlling Interest. As part of the Company’s acquisition of one building on January 14, 2022 for $2,264,000 in Tampa, FL, the Operating Partnership entered into a contribution agreement with one entity (LMB Owenton I LLC) that resulted in the issuance of 110,957 common units in our Operating Partnership at $10.00 per share for a total value of $1,109,570 or as of March 31, 2022 a 4.1% interest in our Operating Partnership. Beginning on the second anniversary of the Closing, 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 their equity should be classified as a Redeemable Non-Controlling Interest. For the three months ended March 31, 2022 and 2021, the Company paid these four Operating Partnership common unit holders approximately $75,900 and $113,700, respectively, in distributions. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | Note 8 – Equity Authorized Equity The Company is authorized to issue up to 100,000,000 shares of common stock and 10,000,000 of undesignated preferred stock. No preferred shares have been issued as of the date of this report. Holders of the Company’s common stock are entitled to receive dividends when authorized by the Company’s Board of Directors. Equity Issuances 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 c ommon s tock and w arrants included in the Units, were offered together, but the securities included in the Units are issued separately. The w arrants are exercisable at a price of $ 20.00 per share of c ommon s tock, 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. On September 8, 2021, the Company On September 30, 2021, the Company issued and sold as part of the underwriter’s Over-Allotment Option an additional 165,000 Units. The units were sold to the public at the price of $10.00 per unit and generated net proceeds of $13.8 million, net of underwriter discounts and other financing costs incurred since inception. 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. As part of the Public Offering, on September 8, 2021, the Company entered into an agreement with the CEO to redeem 112,500 shares of common stock for $100 which is recorded in accounts payable – related party at December 31, 2021. As of December 31, 2021 these shares had been physically returned to our transfer agent and cancelled and the CEO was paid during the three months ended March 31, 2022. The 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 is below the then-effective exercise price of the Investor Warrant for 10 consecutive trading days. During the three months ended March 31, 2022, 276,760 warrants were exercised on a cashless basis resulting in the issuance of 27,676 shares of common stock. 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 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. For the three months ended March 31, 2022, the Company recorded approximately $6,100 of issuance costs in additional paid in capital which were incurred during the current period. For the year ended December 31, 2021 the Company moved approximately $1,279,800 of deferred financing costs into additional paid in capital of which approximately $614,100 had been incurred as of December 31, 2020. Warrants The Company has 1,638,090 warrants outstanding as of March 31, 2022, subject to certain circumstances, and which will expire five to seven years from the date of issuance. Issue Date Warrants Issued and Outstanding as of March 31, 2022 April 25, 2019 exercise price of $20.00 50,000 November 13, 2020 exercise price of $20.00 50,000 September 8, 2021 exercise price of $10.00 1,223,240 September 8, 2021 exercise price of $12.50 135,000 September 30, 2021 exercise price of $10.00 165,000 September 30, 2021 exercise price of $12.50 14,850 The following is a summary of warrants outstanding as of March 31: 2022 2021 Number of Warrants Weighted Average Price Weighted Average Remaining Life Number of Warrants Weighted Average Price Weighted Average Remaining Life Beginning of the year 1,914,850 $ 10.72 4.7 100,000 $ 20.00 6.1 Issuance — $ — — — — — Exercised (276,760 ) $ 10.00 — — — — Ending balance 1,638,090 $ 10.84 4.5 100,000 $ 20.00 5.8 Warrants exercisable 1,638,090 $ 10.84 4.5 100,000 20.00 5.8 There was no intrinsic value for the warrants as of March 31, 2022 or March 31, 2021. Stock Compensation Restricted Common Shares issued to the Board and Employees On July 15, 2019, the board of directors granted 2,500 restricted shares to each of the two independent directors that vest every 12 months on an annual basis over 36 months. The award is valued at $50,000 for each grant and was based on the equity pricing issuance of $20.00 per share. The pro-rated vested share restriction will be removed upon the annual anniversary of the award. The 1,668 and 1,666 restricted shares were issued to the two directors in September 2020 and September 2021, respectively and another 1,666 restricted shares were issued to the two directors in September 2021. On February 3, 2020, the board of directors granted 2,500 restricted shares to two new independent directors that vest every 12 months on an annual basis over 36 months. The award is valued at $50,000 for each grant and was based on the equity pricing issuance of $20.00 per share. The pro-rated vested share restrictions will be removed upon the annual anniversary of the award. The 1,666 unrestricted shares were issued to the two directors in February 2021 and another 3,334 restricted shares were issued to the two directors in September 2021. On February 3, 2020, the board of directors granted 6,250 restricted shares to its former chief financial officer that will vest every 12 months on an annual basis over 36 months. The award is valued at $125,000 and was based on the equity pricing issuance of $20.00 per share. The pro-rated vested share restrictions will be removed upon the annual anniversary of the award. The 2,083 unrestricted shares were issued to the chief financial officer in February 2021 and another 4,167 restricted shares were issued to the chief financial officer in September 2021. Of the remaining 4,167 restricted shares half were vested upon the anniversary of the award and the remaining shares were vested on the same date in connection with his departure from the company. The board granted 14,000 restricted shares to directors, officers and employees effective January 1, 2021 valued at $20.00 per share that vest annually over 3 years. The pro-rated vested share restrictions will be removed upon the annual anniversary of the award. The 14,000 restricted shares were issued to the directors, officers and employees in September 2021. The board granted 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. The following is a summary of restricted shares issued as of March 31: 2022 2021 Number of Shares Outstanding at beginning of the period 23,167 14,582 Restricted Shares Issued 47,142 14,000 Restricted Shares Vested (10,500 ) (3,749 ) Number of Restricted Shares Outstanding at end of the period 59,809 24,833 Compensation expense $ 93,926 $ 49,471 Common stock issued for services Pursuant to an amended employment agreement in which the former chief financial officer waived his right to cash compensation in lieu of being awarded 550 restricted shares of common stock each month until the closing of an initial underwritten public offering, we issued the chief financial officer 2,200 shares of stock in March 2021 representing four months of compensation from December 2020 to March 2021. These shares are valued at $20.00 per share and are accrued as compensation expense until issued by the Company. Generation Income Properties, Inc. 2020 Omnibus Incentive Plan In connection with the Public Offering, the Company board has adopted, and stockholders have approved, the Generation Income Properties, Inc. 2020 Omnibus Incentive Plan (the “ Omnibus Incentive Plan Common Shareholders Cash Distributions The following is a summary of distributions to common shareholders and operating partnership unit holders for the three months ended March 31, 2022 and 2021: Board of Directors Authorized Date Record Date Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders December 10, 2021 March 15, 2022 $ 0.054 December 10, 2021 February 15, 2022 $ 0.054 December 10, 2021 January 15, 2022 $ 0.054 February 26, 2021 March 15, 2021 $ 0.325 * Our president and chairman waived his right to receive a distribution for all of these periods mentioned above. While we are under no obligation to do so, we expect to declare and pay distributions to our stockholders. The issuance of a distribution will be determined by our board of directors based on our financial condition and such other factors as our board of directors deems relevant. We have not established a minimum distribution, and our charter does not require that we issue distributions to our stockholders other than as necessary to meet IRS REIT qualification standards. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lessee Accounting | Note 6 – 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 through the year 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 under the Company's ground lease was approximately $16,000 for the three months ended March 31, 2022. 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 Right of use liability, net was approximately $14,000 during the three months ended March 31, 2022. The following table summarizes the undiscounted future cash flows by year attributable to the ground lease liability as of March 31, 2022 and provides a reconciliation to the Right of use liability included in the accompanying Consolidated Balance Sheet as of March 31, 2022. As of March 31, 2022 2022 $ 188,913 2023 232,701 2024 244,077 2025 245,111 2026 245,111 Thereafter 22,065,755 Total undiscounted liability 23,221,668 Present value discount 16,907,714 Right of use liability 6,313,954 Discount rate 4.58 % Term 62 years Note 9 – Leases Future Minimum Rents For the three months ended March 31, 2022 and 2021 we had three and four tenants, respectively, that each account for more than 10% of our rental revenue as indicated below: 2022 2021 Pratt and Whitney – Huntsville, AL property 14.5% 18.6% General Services Administration – Walmer Ave. Norfolk, VA property 19.5% 24.0% Maersk Shipping – Walmer Ave. Norfolk, VA property Less than 10% 10.5% PRA Holding – Corporate Blvd. Norfolk, VA property 16.1% 20.0% The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of March 31, 2022: Future Minimum Base Rent Payments 2022 $3,746,000 2023 4,629,000 2024 4,675,000 2025 4,547,000 2026 4,425,000 Thereafter 8,988,000 $31,010,000 |
Promissory Notes
Promissory Notes | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Promissory Notes | Note 10 – Promissory Notes The Company had the following promissory notes outstanding as of March 31, 2022 and December 31, 2021, respectively: As of March 31, As of December 31, Interest Rate Maturity Date 2022 2021 Promissory note issued for $1,550,000 by a financial institution. Note was issued on January 7, 2022 and can be prepaid at any time without penalty. Secured by our Fresenius - Chicago, IL property. Wall Street Journal Prime Rate with minimum of 3.25% 1/7/2024 1,550,000 — Promissory note issued for $1,050,000 by a financial institution. Note was issued on January 14, 2022 and has a prepayment penalty of 2% of the principal amount if repaid within the first two years and no penalty if paid after the first 2 years. Secured by our Starbucks North Dale Mabry - Tampa, FL property. 3.65% 1/14/2027 1,050,000 — Promissory note issued for $3,650,000 by a financial institution. Note was issued on March 9, 2022 and can be prepaid at any time without penalty. Secured by our Kohl's - Tucson, AZ property. Wall Street Journal Prime Rate with minimum of 3.25% 3/9/2024 3,650,000 — Promissory note issued for $1,286,664 by a financial institution, interest only payments due monthly through December 2023 of approximately $4,200 and then principal and interest payments due monthly through August 2028 of approximately$6,600. Note was originally issued on January 15, 2015 and modified on November 30, 2020 and can be prepaid at any time without penalty. Secured by out Tampa Sherwin-Williams property. 3.72% fixed rate after using SWAP whereas the loan is LIBOR plus 2.75% 8/10/2028 1,286,664 1,286,664 Promissory note issued for $1,275,000 by a financial institution. Note was issued on February 4, 2021 and can be prepaid at any time without penalty. Secured by our GSA-Manteo, North Carolina property. Wall Street Journal Prime Rate with minimum of 3.25% 2/4/2023 1,275,000 1,275,000 Promissory note issued for $850,000 by a financial institution, interest only payments due monthly through May 2023 of approximately $2,100 and then principal and interest payments due monthly through December 2024 of approximately$4,200. Note was issued on April 21, 2021 and can be prepaid at any time without penalty. Secured by our Irby - Plant City, FL property. Wall Street Journal Prime Rate minus 0.5% with minimum of 3.0% for the first 24 months; thereafter, weekly average yield on U.S. Treasury Securities adjusted to a constant maturity of three years on April 21, 2023, plus 2.75% with a minimum of 3.25% 12/31/2024 850,000 850,000 Promissory note issued for $2,350,000 by a financial institution. Note was issued on December 28, 2021 and can be prepaid at any time without penalty. Secured by our Best Buy - Grand Junction, CO property. Wall Street Journal Prime Rate with minimum of 3.25% 12/28/2023 2,350,000 2,350,000 Promissory note issued for $8,260,000 by a financial institution, interest and principal payments due monthly of approximately $41,500. Note was issued on September 30, 2019 and can be prepaid at any time without penalty. Secured by our GSA/Maersk - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 9/30/2024 7,748,388 7,805,524 Promissory note issued for $5,216,749 by a financial institution, interest and principal payments due monthly of approximately $27,400. Note was originally issued on October 23, 2017 and modified on September 30, 2019 and can be prepaid at any time without penalty. Secured by our PRA - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 10/23/2024 4,849,463 4,889,670 Promissory note issued for $11,287,500 by a financial institution, interest only payment is approximately $39,000 and starting April 6, 2021, interest and principal payments due monthly of approximately $55,000. Note was issued on February 11, 2020. Secured by our Washington, DC, Tampa, FL and Huntsville, AL properties. It cannot be prepaid without a penalty. 4.17% 3/6/2030 11,101,219 11,150,130 Less: debt issuance costs, net (682,898) (637,693) $35,027,836 $28,969,295 The Company amortized debt issuance costs during the three month periods ended March 31, 2022 and 2021 to interest expense of approximately $33,700 and $31,100, respectively. The Company paid debt issuance costs for the three months ended March 31, 2022 and 202 1 of approximately $ and $ , respectively. As of March 31, 2022, we had three promissory note totaling approximately $7.6 million requiring Debt Service Coverage Ratios (also known as “DSCR”) of 1.50:1.00, one promissory note totaling $1.3 million requiring DSCR of 1.30:1.00, three promissory note totaling $23.7 million requiring DSCR of 1.25:1.00, one promissory note totaling $1.3 million requiring DSCR of 1.20:1.00, one promissory note totaling $0.9 million requiring DSCR of 1.15:1.00, and one promissory note totaling $1.1 million with no required DSCR. We were in compliance with all covenants as of March 31, 2022. As of March 31, 2022, the Company’s President has personally guaranteed the repayment of the $11.1 million due under the DC/Tampa/Huntsville loan, the $1.3 million loan secured by our Tampa Sherwin Williams property, the $0.9 million loan secured by our Irby property, the $1.3 million loan secured by our GSA Manteo NC property, the $2.4 million loan secured by our Best Buy Grand Junction, CO property, the $1.6 million loan secured by our Fresenius Chicago, IL property, and the $3.7 million loan secured by our Kohl’s Tucson, AZ property. The aggregate guaranteed principal amount of these loans total approximately $22.1 million. The Company’s President has also provided a guaranty of the Borrower’s nonrecourse carveout liabilities and obligations in favor of the lender for the Norfolk, Virginia property loans (the “Bayport loans”), with an aggregate principal amount of approximately $12.6 million. The Company modified the Bayport loans in March 2021 for no fees and reduced the associated interest rate from 4.25% to 3.5%. The Company determined that the debt modification was not substantial under ASC 470-50. Minimum required principal payments on the Company’s debt as of March 31, 2022 are as follows: As of March 31, 2022 2022 $435,060 2023 4,240,446 2024 18,204,862 2025 278,109 2026 289,778 2027 and beyond 12,262,478 $35,710,733 |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party | Note 11 – Related Party On November 30, 2020, the Company acquired an approximately 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 and was funded with approximately $1.3 million of debt from Valley National Bank and the issuance of 24,309 partnership units in Generation Income Properties LP valued at $20.00 per unit for purposes of the contribution. 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 0.102% as of March 31, 2022. |
Tenant in Common Investment
Tenant in Common Investment | 3 Months Ended |
Mar. 31, 2022 | |
Tenant In Common Investment [Abstract] | |
Tenant in Common Investment | Note 12 – Tenant in Common Investment On August 13, 2021, the Company entered into a tenancy-in-common (“TIC”) structure whereby the TIC acquired a 15,288 square foot single The acquisition of this property was financed in part through the issuance of a Promissory note for $2,715,000 by a financial institution. The Note was issued on August 13, 2021 and can be prepaid at any time without penalty and is secured by the Lazy Boy - Rockford, IL property. The Company's share of this debt is approximately $1.0 million. The Company’s President has personally guaranteed the repayment of the $2.7 million loan. The loan has normal covenants which includes DSCR 1.50:1.0. The condensed income statement for the three months ended March 31, 2022 for the Tenant in Common Investment is as follows: Total Company Portion Revenue $ 93,139 $ 34,312 Total operating expenses 69,924 25,760 Operating income $ 23,215 $ 8,552 The condensed balance sheets as of March 31, 2022 and December 31, 2021, respectively for the Tenant in Common Investment are as follows: March 31, December 31, 2022 2021 Prepaid expenses $ 2,007 $ 522 Deferred rent asset 3,689 2,108 Property, net of depreciation 4,323,875 4,341,285 Acquired lease intangible asset, net of amortization 267,756 279,850 Due from tenant-in-common 86,871 47,350 Total assets $ 4,684,198 $ 4,671,115 Accounts payable $ — $ 845 Accounts payable - related party 24,724 13,696 Accrued expenses 4,751 4,751 Acquired lease intangible liability, net of amortization 41,135 42,993 Mortgage payable net of unamortized debt issuance costs 2,683,149 2,677,446 Equity, GIP Inc. Tenant-in-common 733,635 725,082 Equity, Sunny Ridge Tenant-in-common 1,196,804 1,206,302 Total liabilities and equity $ 4,684,198 $ 4,671,115 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events O n April 1, 2022, the Company through certain subsidiaries (the “Borrowers”) of its Operating Partnership, entered into two loan agreements (the “Loan Agreements”) with Valley National Bank (the “Lender”) in the aggregate amount of approximately $13.5 million to refinance seven of the Company’s properties (the “Properties”). The Loan Agreements consist of one loan in the amount of $2.1 million that is secured by the Company’s property in Rockford, IL owned in a tenant in common investment and one loan in the amount of $11.4 million that is secured by the remaining six properties located in Manteo, NC, Plant City, FL, Grand Junction, CO, Chicago, IL, Tampa, FL, and Tucson, AZ. Each of the Borrowers issued a promissory note, dated April 1, 2022, to the Lender for the amount of the Loan Agreement to which such Borrower is a party (the “Notes”). The Notes bear interest at a fixed rate of 3.85% from April 1, 2022 through and until March 31, 2027. Commencing April 1, 2027, the interest rate on the Notes shall be adjusted to a fixed rate equivalent to the weekly average yield of nominal (non-inflation indexed) U.S. Treasury securities adjusted to a constant maturity of five years as published in the Board of Governors of the Federal Reserve System Statistical Release (Publication H.15 [519]) plus 2.5%, subject to a floor interest rate of 3.85% per annum. The Borrowers paid the Lender origination fees equal to $67,500, in the aggregate, for the funding of the loans pursuant to the Loan Agreements. Each Note has an interest-only payment term for the first 12 months, after which time the Borrowers shall make monthly payments, which shall include repayment of principal based upon a 25-year amortization from the date of such Note. The entire principal balance of each Note plus all accrued and unpaid interest thereon shall be due and payable on March 31, 2032. David Sobelman, the Company’s Chairman, President and Chief Executive Officer, entered into two guaranty agreements (the “Guaranty Agreements”) pursuant to which he guaranteed the payment obligations under the Notes if they become due as a result of certain “bad-boy” provisions, individually and with respect to the Loan Agreement relating to the Company’s property in Rockford, IL, on behalf of the Operating Partnership. The Notes are secured by the Properties, as described in the first paragraph above, and the associated rental income from those Properties, pursuant to the terms of two mortgage and security agreements (the “Security Agreements”). On April 1, 2022, we announced that our Board of Directors authorized a distribution of $0.054 per share monthly cash distribution for shareholders of record of our common stock as of April 15, 2022, May 15, 2022, and June 15, 2022. April distributions were paid on April 29, 2022 and we expect to pay May and June distributions on or about May 30, 2022 and June 30, 2022, respectively. The Operating Partnership common unit holders received the same distribution. On May 9, 2022, the Operating Partnership amended the current Commitment Letter with the Lender, by entering into a new commitment letter, to increase the available Borrowings under the Facility from $25 million to $50 million to be used for the acquisition of income producing real estate properties under the same terms as provided by the agreement entered into on October 26, 2021. The new Commitment Letter will become effective contingent upon the Company completing a future capital raise of $ 25.0 million or more, and prior to such time, the current Commitment Letter will remain in place. As of March 31, 2022 and December 31 , 2021 we had borrowed approximately $ 7.6 million and $ 2.4 million , respectively, under the Facility. On April 25, 2022, the Company received notice from an Operating Partnership common unit holder to redeem 10,166 units at $20 per unit and will transact within the terms of the Contribution Agreement funding the redemption with cash on hand. In April 2022, 29,880 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 shares 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, 2,988 shares of common stock were issued upon exercise. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 18, 2022. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The Company adopted the calendar year as its basis of reporting. Certain 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 held by the Company related to tenant escrow reimbursements and immediate 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: March 31, December 31, 2022 2021 Cash and cash equivalents $4,607,952 $10,589,576 Restricted cash 34,500 34,500 Total cash and cash equivalents and restricted cash $4,642,452 $10,624,076 |
Revenue Recognition | Revenue Recognition We have determined that all of our leases should be accounted for as operating leases. The Company leases real estate to its tenants under long-term net leases which we account for as operating leases. Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Certain leases also provide for additional rent based on tenants’ sales volumes. These rents are recognized when determinable after the tenant exceeds a sales breakpoint. Recognizing rent escalations on a straight-line method results in rental revenue in the early years of a lease being higher than actual cash received, creating a straight-line rent asset. Conversely, when actual cash collected is greater than the amount recognized on a straight-line basis, the difference is recognized as a liability. To the extent any of the tenants under these leases become unable to pay their contractual cash rents, the Company may be required to write down the straight-line rent receivable from those tenants, which would reduce rental income. Deferred rent asset as of March 31, 2022 and December 31, 2021 was approximately $174,400 and $156,800, respectively. Deferred rent liability as of March 31, 2022 and December 31, 2021 was approximately $247,700 and $228,900, respectively, of which $202,200 and $188,000 respectively related to prepaid rent. 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 collectability exists with respect to any tenant changes, the Company recognizes 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 method of reporting rental revenue. There were no allowances for receivables recorded for the three months ended March 31, 2022 or 2021. The Company’s leases provide for reimbursement from tenants for certain common area maintenance (“CAM”) expenses, insurance, and real estate taxes. A portion of our operating cost reimbursement revenue and expense is estimated each period and is recognized as rental income and building expenses 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 over the |
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 in the Company’s Consolidated Statements of Operations based on their fair values determined 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. |
Real Estate | Real Estate Acquisitions of real estate are recorded at cost. Real Estate Purchase Price Assignment 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 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. The Company assessed whether the purchase of the building falls within the definition of a business under Accounting Standards Codification (“ ASC ”) 805 and concluded that all asset transactions were an asset acquisition, therefore it was recorded at the purchase price, including capitalized acquisition costs, which is 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 lease is the estimated cost to replace the leases (including loss of rent, estimated commissions and legal fees paid in similar leases). The capitalized 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 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, site improvements, which are generally between 5 and 6 years, and tenant improvements, which are generally between 2 and 10 years. |
Lease Obligations | Lease Obligations The Company has a certain property within its consolidated real estate 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 in the accompanying Consolidated Balance Sheets and are depreciated over the shorter of the useful life of the improvements or the lease term. Under ASC Topic 842, the Company recognizes Lease liabilities on its Consolidated Balance Sheets 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 operating lease liability. |
Income Taxes | Income Taxes The Company intends to operate and be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code (“Code”), commencing with our taxable year ending December 31, 2021. 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. We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Under this method, we determine deferred tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes us to change our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes us to change our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur. 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 judgement changes as a result of new information. |
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 (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of warrants), and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive securities such as warrants, options and restricted stock units if their effect is anti-dilutive. As of March 31, 2022 and 2021, all potentially dilutive securities were excluded because the effect was anti-dilutive. |
Impairments | Impairments The Company reviews real estate investments 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. There were no impairments during the three months ended March 31, 2022 or 2021. The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis which is a Level 3 input and analysis of recent comparable sales transactions or 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, December 31, 2022 2021 Cash and cash equivalents $4,607,952 $10,589,576 Restricted cash 34,500 34,500 Total cash and cash equivalents and restricted cash $4,642,452 $10,624,076 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Schedule of Acquired Properties | Fresenius -Chicago, IL Starbucks -Tampa, FL Kohl's -Tucson, AZ Total Property and improvements $ 2,885,732 $ 2,144,121 $ 6,153,408 $ 11,183,261 Tenant improvements 55,041 20,504 349,136 424,681 Acquired lease intangible assets 276,013 112,830 981,203 1,370,046 Total investments 3,216,786 2,277,455 7,483,747 12,977,988 Less acquired lease intangible liabilities (19,864 ) (13,497 ) (131,999 ) (165,360 ) Total investments, net $ 3,196,922 $ 2,263,958 $ 7,351,748 $ 12,812,628 |
GSA-FBI @ Mateo, NC | |
Schedule of Acquired Properties | During the three months ended March 31, 2021, the Company acquired one property. GSA- Manteo, NC Property $ 2,149,015 Tenant improvements - Acquired lease intangible assets 100,379 Total investments 2,249,394 Less acquired lease intangible liabilities (511,620 ) Total investments $ 1,737,774 |
Acquired Lease Intangible Ass_2
Acquired Lease Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net is comprised of the following: March 31, December 31, 2022 2021 Acquired lease intangible assets $ 4,677,928 $ 3,304,014 Accumulated amortization (1,108,849 ) (994,857 ) Acquired lease intangible assets, net $ 3,569,079 $ 2,309,157 |
Schedule of Future Amortization for Intangible Assets | The future amortization for intangible assets is listed below (rounded to the nearest hundred): As of March 31, 2022 2022 $413,500 2023 543,000 2024 543,000 2025 509,800 2026 489,900 Thereafter 1,069,900 $3,569,100 |
Acquired Lease Intangible Lia_2
Acquired Lease Intangible Liabilities, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Below Market Lease [Abstract] | |
Summary of Acquired Lease Intangible Liabilities | Acquired lease intangible liabilities is comprised of the following: March 31, December 31, 2022 2021 Acquired lessor lease intangible liabilities $965,216 $845,063 Less: recognized rental income (291,516) (267,675) Total below market lease, net $673,700 $577,388 Acquired lessee lease intangible liability $45,207 $- Less: recognized decrease in building expense (43) - Total above market lease, net $45,164 $- Total acquired lease intangible liabilities, net $718,864 $- |
Summary of Future Amortization for Intangible Liabilities | The future amortization for intangible liabilities is listed below (rounded to the nearest hundred): As of March 31, 2022 2022 $78,900 2023 105,200 2024 105,200 2025 105,200 2026 93,900 Thereafter 230,500 $718,900 |
Lessee Accounting (Tables)
Lessee Accounting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Summary of Undiscounted Future Cash Flows and Reconciliation to Right of Use Liability | The following table summarizes the undiscounted future cash flows by year attributable to the ground lease liability as of March 31, 2022 and provides a reconciliation to the Right of use liability included in the accompanying Consolidated Balance Sheet as of March 31, 2022. As of March 31, 2022 2022 $ 188,913 2023 232,701 2024 244,077 2025 245,111 2026 245,111 Thereafter 22,065,755 Total undiscounted liability 23,221,668 Present value discount 16,907,714 Right of use liability 6,313,954 Discount rate 4.58 % Term 62 years The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of March 31, 2022: Future Minimum Base Rent Payments 2022 $3,746,000 2023 4,629,000 2024 4,675,000 2025 4,547,000 2026 4,425,000 Thereafter 8,988,000 $31,010,000 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Non-Controlling Interests | The following table reflects our Redeemable Non-Controlling Interests: Brown Family Trust Irby Prop Partners Hornstrom GIP Fund I LMB Owenton I LLC Greenwal L.C. Riverside Crossing L.C. Total Balance, December 31, 2020 $1,200,000 $- $- $486,180 $- $4,965,000 $2,033,251 $8,684,431 Issuance of Redeemable Non-Controlling Interest for property acquisition 500,000 - - - - - - 500,000 Distribution on Redeemable Non-Controlling Interest (37,104) - - - - (80,681) (33,041) (150,826) Net income for the quarter 37,104 - - - - 80,681 33,041 150,826 Balance, March 31, 2021 $1,700,000 $- $- $486,180 $- $4,965,000 $2,033,251 $9,184,431 Balance, December 31, 2021 $500,000 $976,756 $659,972 $486,180 $- $4,965,000 $2,033,251 $9,621,159 Issuance of Redeemable Operating Partnership Units for property acquisition 1,109,570 1,109,570 Distribution on Redeemable Non-Controlling Interest (11,260) (19,001) (13,087) (3,938) (15,269) (40,217) (16,469) (119,241) Net income for the quarter 11,260 28,370 19,498 3,938 15,269 40,217 16,469 135,021 Balance, March 31, 2022 $500,000 $986,125 $666,383 $486,180 $1,109,570 $4,965,000 $2,033,251 $10,746,509 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Warrants Issued and Outstanding with Exercise Price | Issue Date Warrants Issued and Outstanding as of March 31, 2022 April 25, 2019 exercise price of $20.00 50,000 November 13, 2020 exercise price of $20.00 50,000 September 8, 2021 exercise price of $10.00 1,223,240 September 8, 2021 exercise price of $12.50 135,000 September 30, 2021 exercise price of $10.00 165,000 September 30, 2021 exercise price of $12.50 14,850 The following is a summary of warrants outstanding as of March 31: 2022 2021 Number of Warrants Weighted Average Price Weighted Average Remaining Life Number of Warrants Weighted Average Price Weighted Average Remaining Life Beginning of the year 1,914,850 $ 10.72 4.7 100,000 $ 20.00 6.1 Issuance — $ — — — — — Exercised (276,760 ) $ 10.00 — — — — Ending balance 1,638,090 $ 10.84 4.5 100,000 $ 20.00 5.8 Warrants exercisable 1,638,090 $ 10.84 4.5 100,000 20.00 5.8 |
Schedule of Restricted Common Shares Issued | The following is a summary of restricted shares issued as of March 31: 2022 2021 Number of Shares Outstanding at beginning of the period 23,167 14,582 Restricted Shares Issued 47,142 14,000 Restricted Shares Vested (10,500 ) (3,749 ) Number of Restricted Shares Outstanding at end of the period 59,809 24,833 Compensation expense $ 93,926 $ 49,471 |
Schedule of Cash Distributions | The following is a summary of distributions to common shareholders and operating partnership unit holders for the three months ended March 31, 2022 and 2021: Board of Directors Authorized Date Record Date Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders December 10, 2021 March 15, 2022 $ 0.054 December 10, 2021 February 15, 2022 $ 0.054 December 10, 2021 January 15, 2022 $ 0.054 February 26, 2021 March 15, 2021 $ 0.325 * Our president and chairman waived his right to receive a distribution for all of these periods mentioned above. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Concentration Risk Percentage | For the three months ended March 31, 2022 and 2021 we had three and four tenants, respectively, that each account for more than 10% of our rental revenue as indicated below: 2022 2021 Pratt and Whitney – Huntsville, AL property 14.5% 18.6% General Services Administration – Walmer Ave. Norfolk, VA property 19.5% 24.0% Maersk Shipping – Walmer Ave. Norfolk, VA property Less than 10% 10.5% PRA Holding – Corporate Blvd. Norfolk, VA property 16.1% 20.0% |
Summary of Undiscounted Future Cash Flows and Reconciliation to Right of Use Liability | The following table summarizes the undiscounted future cash flows by year attributable to the ground lease liability as of March 31, 2022 and provides a reconciliation to the Right of use liability included in the accompanying Consolidated Balance Sheet as of March 31, 2022. As of March 31, 2022 2022 $ 188,913 2023 232,701 2024 244,077 2025 245,111 2026 245,111 Thereafter 22,065,755 Total undiscounted liability 23,221,668 Present value discount 16,907,714 Right of use liability 6,313,954 Discount rate 4.58 % Term 62 years The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of March 31, 2022: Future Minimum Base Rent Payments 2022 $3,746,000 2023 4,629,000 2024 4,675,000 2025 4,547,000 2026 4,425,000 Thereafter 8,988,000 $31,010,000 |
Promissory Notes (Tables)
Promissory Notes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Promissory Notes | The Company had the following promissory notes outstanding as of March 31, 2022 and December 31, 2021, respectively: As of March 31, As of December 31, Interest Rate Maturity Date 2022 2021 Promissory note issued for $1,550,000 by a financial institution. Note was issued on January 7, 2022 and can be prepaid at any time without penalty. Secured by our Fresenius - Chicago, IL property. Wall Street Journal Prime Rate with minimum of 3.25% 1/7/2024 1,550,000 — Promissory note issued for $1,050,000 by a financial institution. Note was issued on January 14, 2022 and has a prepayment penalty of 2% of the principal amount if repaid within the first two years and no penalty if paid after the first 2 years. Secured by our Starbucks North Dale Mabry - Tampa, FL property. 3.65% 1/14/2027 1,050,000 — Promissory note issued for $3,650,000 by a financial institution. Note was issued on March 9, 2022 and can be prepaid at any time without penalty. Secured by our Kohl's - Tucson, AZ property. Wall Street Journal Prime Rate with minimum of 3.25% 3/9/2024 3,650,000 — Promissory note issued for $1,286,664 by a financial institution, interest only payments due monthly through December 2023 of approximately $4,200 and then principal and interest payments due monthly through August 2028 of approximately$6,600. Note was originally issued on January 15, 2015 and modified on November 30, 2020 and can be prepaid at any time without penalty. Secured by out Tampa Sherwin-Williams property. 3.72% fixed rate after using SWAP whereas the loan is LIBOR plus 2.75% 8/10/2028 1,286,664 1,286,664 Promissory note issued for $1,275,000 by a financial institution. Note was issued on February 4, 2021 and can be prepaid at any time without penalty. Secured by our GSA-Manteo, North Carolina property. Wall Street Journal Prime Rate with minimum of 3.25% 2/4/2023 1,275,000 1,275,000 Promissory note issued for $850,000 by a financial institution, interest only payments due monthly through May 2023 of approximately $2,100 and then principal and interest payments due monthly through December 2024 of approximately$4,200. Note was issued on April 21, 2021 and can be prepaid at any time without penalty. Secured by our Irby - Plant City, FL property. Wall Street Journal Prime Rate minus 0.5% with minimum of 3.0% for the first 24 months; thereafter, weekly average yield on U.S. Treasury Securities adjusted to a constant maturity of three years on April 21, 2023, plus 2.75% with a minimum of 3.25% 12/31/2024 850,000 850,000 Promissory note issued for $2,350,000 by a financial institution. Note was issued on December 28, 2021 and can be prepaid at any time without penalty. Secured by our Best Buy - Grand Junction, CO property. Wall Street Journal Prime Rate with minimum of 3.25% 12/28/2023 2,350,000 2,350,000 Promissory note issued for $8,260,000 by a financial institution, interest and principal payments due monthly of approximately $41,500. Note was issued on September 30, 2019 and can be prepaid at any time without penalty. Secured by our GSA/Maersk - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 9/30/2024 7,748,388 7,805,524 Promissory note issued for $5,216,749 by a financial institution, interest and principal payments due monthly of approximately $27,400. Note was originally issued on October 23, 2017 and modified on September 30, 2019 and can be prepaid at any time without penalty. Secured by our PRA - Norfolk, Virginia property. The interest rate was reduced in March 2021 from 4.25% to 3.5%. 3.50% 10/23/2024 4,849,463 4,889,670 Promissory note issued for $11,287,500 by a financial institution, interest only payment is approximately $39,000 and starting April 6, 2021, interest and principal payments due monthly of approximately $55,000. Note was issued on February 11, 2020. Secured by our Washington, DC, Tampa, FL and Huntsville, AL properties. It cannot be prepaid without a penalty. 4.17% 3/6/2030 11,101,219 11,150,130 Less: debt issuance costs, net (682,898) (637,693) $35,027,836 $28,969,295 |
Schedule of Minimum Required Principal Payments | Minimum required principal payments on the Company’s debt as of March 31, 2022 are as follows: As of March 31, 2022 2022 $435,060 2023 4,240,446 2024 18,204,862 2025 278,109 2026 289,778 2027 and beyond 12,262,478 $35,710,733 |
Tenant in Common Investment (Ta
Tenant in Common Investment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Tenant In Common Investment [Abstract] | |
Condensed Income Statement of Tenant in Common Investment | The condensed income statement for the three months ended March 31, 2022 for the Tenant in Common Investment is as follows: Total Company Portion Revenue $ 93,139 $ 34,312 Total operating expenses 69,924 25,760 Operating income $ 23,215 $ 8,552 |
Condensed Balance Sheets of Tenant in Common Investment | The condensed balance sheets as of March 31, 2022 and December 31, 2021, respectively for the Tenant in Common Investment are as follows: March 31, December 31, 2022 2021 Prepaid expenses $ 2,007 $ 522 Deferred rent asset 3,689 2,108 Property, net of depreciation 4,323,875 4,341,285 Acquired lease intangible asset, net of amortization 267,756 279,850 Due from tenant-in-common 86,871 47,350 Total assets $ 4,684,198 $ 4,671,115 Accounts payable $ — $ 845 Accounts payable - related party 24,724 13,696 Accrued expenses 4,751 4,751 Acquired lease intangible liability, net of amortization 41,135 42,993 Mortgage payable net of unamortized debt issuance costs 2,683,149 2,677,446 Equity, GIP Inc. Tenant-in-common 733,635 725,082 Equity, Sunny Ridge Tenant-in-common 1,196,804 1,206,302 Total liabilities and equity $ 4,684,198 $ 4,671,115 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022Property | |
Nature Of Operations [Line Items] | |
Entity incorporation date | Sep. 19, 2015 |
Number of properties owned | 12 |
Number of partial interest properties | 1 |
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 | 0.002% |
Operating Partnership | Common Units | |
Nature Of Operations [Line Items] | |
Ownership percentage | 82.20% |
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, 2022 | Dec. 31, 2021 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 4,607,952 | $ 10,589,576 |
Restricted cash | 34,500 | 34,500 |
Total cash and cash equivalents and restricted cash | $ 4,642,452 | $ 10,624,076 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred rent asset | $ 174,364 | $ 156,842 | |
Deferred rent liability | 247,746 | 228,938 | |
Prepaid rent | 202,200 | $ 188,000 | |
Impairments | $ 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 | 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 | Minimum | |||
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 | 6 years |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)ft²PropertyTenant | Mar. 31, 2021Tenant | |
Asset Acquisition [Line Items] | ||
Number of real estate properties acquired | Property | 3 | |
Number of tenants | Tenant | 3 | 4 |
Fresenius Chicago I L | ||
Asset Acquisition [Line Items] | ||
Property acquired date | Jan. 7, 2022 | |
Area of property | ft² | 10,900 | |
Number of tenants | Tenant | 1 | |
Asset acquisition through debt | $ 1,550,000 | |
Starbucks Tampa F L | ||
Asset Acquisition [Line Items] | ||
Property acquired date | Jan. 14, 2022 | |
Area of property | ft² | 2,600 | |
Number of tenants | Tenant | 1 | |
Cash capital contribution through issuance of redeemable non-controlling interest | $ 1,109,570 | |
Asset acquisition through debt | $ 1,050,000 | |
Kohl S Tucson A Z | ||
Asset Acquisition [Line Items] | ||
Property acquired date | Mar. 9, 2022 | |
Area of property | ft² | 88,400 | |
Number of tenants | Tenant | 1 | |
Asset acquisition through debt | $ 3,650,000 | |
GSA-FBI - Manteo, NC | ||
Asset Acquisition [Line Items] | ||
Number of real estate properties acquired | Property | 1 | |
Property acquired date | Feb. 11, 2021 | |
Area of property | ft² | 7,500 | |
Number of tenants | Tenant | 1 | |
Cash capital contribution through issuance of redeemable non-controlling interest | $ 500,000 | |
Asset acquisition through debt | $ 1,275,000 |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Acquired Properties (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||
Total investments | $ 53,909,748 | $ 41,299,681 | |
Fresenius Chicago I L | |||
Business Acquisition [Line Items] | |||
Property and improvements | 2,885,732 | ||
Tenant improvements | 55,041 | ||
Acquired lease intangible assets | 276,013 | ||
Total investments | 3,216,786 | ||
Less acquired lease intangible liabilities | (19,864) | ||
Total investments | 3,196,922 | ||
Starbucks Tampa F L | |||
Business Acquisition [Line Items] | |||
Property and improvements | 2,144,121 | ||
Tenant improvements | 20,504 | ||
Acquired lease intangible assets | 112,830 | ||
Total investments | 2,277,455 | ||
Less acquired lease intangible liabilities | (13,497) | ||
Total investments | 2,263,958 | ||
Kohl S Tucson A Z | |||
Business Acquisition [Line Items] | |||
Property and improvements | 6,153,408 | ||
Tenant improvements | 349,136 | ||
Acquired lease intangible assets | 981,203 | ||
Total investments | 7,483,747 | ||
Less acquired lease intangible liabilities | (131,999) | ||
Total investments | 7,351,748 | ||
Total | |||
Business Acquisition [Line Items] | |||
Property and improvements | 11,183,261 | ||
Tenant improvements | 424,681 | ||
Acquired lease intangible assets | 1,370,046 | ||
Total investments | 12,977,988 | ||
Less acquired lease intangible liabilities | (165,360) | ||
Total investments | $ 12,812,628 | ||
GSA - Manteo, NC | |||
Business Acquisition [Line Items] | |||
Property | $ 2,149,015 | ||
Acquired lease intangible assets | 100,379 | ||
Total investments | 2,249,394 | ||
Less acquired lease intangible liabilities | (511,620) | ||
Total investments | $ 1,737,774 |
Acquired Lease Intangible Ass_3
Acquired Lease Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Acquired lease intangible assets | $ 4,677,928 | $ 3,304,014 |
Accumulated amortization | (1,108,849) | (994,857) |
Acquired lease intangible assets, net | $ 3,569,079 | $ 2,309,157 |
Acquired Lease Intangible Ass_4
Acquired Lease Intangible Assets, Net - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Amortization of lease intangible assets | $ 113,992 | $ 102,200 |
Acquired Lease Intangible Ass_5
Acquired Lease Intangible Assets, Net - Schedule of Future Amortization for Intangible Assets (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
2022 | $ 413,500 | |
2023 | 543,000 | |
2024 | 543,000 | |
2025 | 509,800 | |
2026 | 489,900 | |
Thereafter | 1,069,900 | |
Acquired lease intangible assets, net | $ 3,569,079 | $ 2,309,157 |
Acquired Lease Intangible Lia_3
Acquired Lease Intangible Liabilities, Net - Summary of Acquired Lease Intangible Liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Below Market Lease [Abstract] | ||
Acquired lessor lease intangible liabilities | $ 965,216 | $ 845,063 |
Less: recognized rental income | (291,516) | (267,675) |
Total below market lease, net | 673,700 | 577,388 |
Acquired lessee lease intangible liability | 45,207 | |
Less: recognized decrease in building expense | (43) | |
Total above market lease, net | 45,164 | |
Total acquired lease intangible liabilities, net | $ 718,864 | $ 577,388 |
Acquired Lease Intangible Lia_4
Acquired Lease Intangible Liabilities, Net - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Below Market Lease [Abstract] | ||
Amortization for below market leases | $ 23,841 | $ 33,161 |
Amortization for above market lease liability | $ 43 | $ 0 |
Acquired Lease Intangible Lia_5
Acquired Lease Intangible Liabilities, Net - Summary of Future Amortization for Intangible Liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Below Market Lease [Abstract] | ||
2022 | $ 78,900 | |
2023 | 105,200 | |
2024 | 105,200 | |
2025 | 105,200 | |
2026 | 93,900 | |
Thereafter | 230,500 | |
Total acquired lease intangible liabilities, net | $ 718,864 | $ 577,388 |
Lessee Accounting - Additional
Lessee Accounting - Additional Information (Details) - Ground Lease | 3 Months Ended | |
Mar. 31, 2022USD ($) | Mar. 09, 2022Property | |
Lessee Lease Description [Line Items] | ||
Number of properties acquired | Property | 1 | |
Lease expiration year | 2084 | |
Operating lease, expense | $ 16,000 | |
Variable lease expense | 0 | |
Right of use liability,net | $ 14,000 |
Lessee Accounting - Summary of
Lessee Accounting - Summary of Undiscounted Future Cash Flows and Reconciliation to Right of Use Liability (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Lessee Lease Description [Line Items] | |
2022 | $ 3,746,000 |
2023 | 4,629,000 |
2024 | 4,675,000 |
2025 | 4,547,000 |
2026 | 4,425,000 |
Thereafter | 8,988,000 |
Total undiscounted liability | 31,010,000 |
Right of use liability, net | 6,313,954 |
Ground Lease | |
Lessee Lease Description [Line Items] | |
2022 | 188,913 |
2023 | 232,701 |
2024 | 244,077 |
2025 | 245,111 |
2026 | 245,111 |
Thereafter | 22,065,755 |
Total undiscounted liability | 23,221,668 |
Present value discount | 16,907,714 |
Right of use liability, net | $ 6,313,954 |
Discount rate | 4.58% |
Term | 62 years |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interests - Summary of Redeemable Non-Controlling Interests (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | $ 9,621,159 | $ 8,684,431 |
Issuance of Redeemable Non-Controlling Interest for property acquisition | 1,109,570 | 500,000 |
Distribution on Redeemable Non-Controlling Interest | (119,241) | (150,826) |
Net income for the quarter | 135,021 | 150,826 |
Redeemable Non-Controlling Interest, Balance | 10,746,509 | 9,184,431 |
Brown Family Trust | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 500,000 | 1,200,000 |
Issuance of Redeemable Non-Controlling Interest for property acquisition | 500,000 | |
Distribution on Redeemable Non-Controlling Interest | (11,260) | (37,104) |
Net income for the quarter | 11,260 | 37,104 |
Redeemable Non-Controlling Interest, Balance | 500,000 | 1,700,000 |
Irby Property Partners | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 976,756 | |
Distribution on Redeemable Non-Controlling Interest | (19,001) | |
Net income for the quarter | 28,370 | |
Redeemable Non-Controlling Interest, Balance | 986,125 | |
Hornstrom | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 659,972 | |
Distribution on Redeemable Non-Controlling Interest | (13,087) | |
Net income for the quarter | 19,498 | |
Redeemable Non-Controlling Interest, Balance | 666,383 | |
GIP Fund I | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 486,180 | 486,180 |
Distribution on Redeemable Non-Controlling Interest | (3,938) | |
Net income for the quarter | 3,938 | |
Redeemable Non-Controlling Interest, Balance | 486,180 | 486,180 |
LMB Owenton I LLC | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Issuance of Redeemable Non-Controlling Interest for property acquisition | 1,109,570 | |
Distribution on Redeemable Non-Controlling Interest | (15,269) | |
Net income for the quarter | 15,269 | |
Redeemable Non-Controlling Interest, Balance | 1,109,570 | |
Greenwal L.C. | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 4,965,000 | 4,965,000 |
Distribution on Redeemable Non-Controlling Interest | (40,217) | (80,681) |
Net income for the quarter | 40,217 | 80,681 |
Redeemable Non-Controlling Interest, Balance | 4,965,000 | 4,965,000 |
Riverside Crossing L.C. | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Non-Controlling Interest, Balance | 2,033,251 | 2,033,251 |
Distribution on Redeemable Non-Controlling Interest | (16,469) | (33,041) |
Net income for the quarter | 16,469 | 33,041 |
Redeemable Non-Controlling Interest, Balance | $ 2,033,251 | $ 2,033,251 |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interests - Additional Information (Details) | Jan. 14, 2022USD ($)BuildingEntity$ / sharesshares | Aug. 02, 2021USD ($) | Apr. 21, 2021USD ($) | Feb. 11, 2021USD ($) | Nov. 30, 2020USD ($)BuildingEntity$ / sharesshares | Sep. 30, 2019USD ($)BuildingEntityInvestor$ / sharesshares | Sep. 11, 2019USD ($) | Mar. 31, 2022USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Aug. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Noncontrolling interest, description | average 30-day market price of Generation Income Properties, Inc. 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 Generation Income Properties, L.P. | |||||||||||
Redeemable noncontrolling interest redeemed | $ 10,746,509 | $ 9,184,431 | $ 9,621,159 | $ 8,684,431 | ||||||||
Redemption price discount average | 15.00% | |||||||||||
Number of preferred units issued | shares | 10,166 | |||||||||||
Preferred units issue price per share | $ / shares | $ / shares | $ 20 | |||||||||||
Preferred Equity Partners | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Payments of distributions | $ 19,000 | |||||||||||
Accrued value of deferred internal rate of return | 9,400 | |||||||||||
Brown Family Trust | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Redeemable noncontrolling interest redeemed | $ 500,000 | 500,000 | 1,700,000 | 500,000 | $ 1,200,000 | $ 1,200,000 | ||||||
Payments of distributions | 11,300 | 37,100 | ||||||||||
Irby Property Partners | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Redeemable noncontrolling interest redeemed | 986,125 | 976,756 | ||||||||||
Hornstrom | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Redeemable noncontrolling interest redeemed | 666,383 | $ 659,972 | ||||||||||
Rockville, IL | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Payments of distributions | 13,100 | |||||||||||
Accrued value of deferred internal rate of return | 6,000 | |||||||||||
Operating Partnership | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Payments of distributions | $ 75,900 | $ 113,700 | ||||||||||
Preferred Equity Agreement | Brown Family Trust | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Capital contribution received | $ 500,000 | $ 1,200,000 | ||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company was required to pay the preferred equity member a 10% internal rate of return (“IRR”) on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. | |||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 9.00% | 10.00% | ||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company will pay the preferred equity member a 9% IRR on a monthly basis and redeem the entire amount due after 24 months at the option of the preferred equity member. | |||||||||||
Preferred Equity Agreement | Irby Property Partners | Preferred Equity Partners | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Capital contribution received | $ 950,000 | |||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company will pay the preferred equity member a 12% total IRR with an 8% IRR paid on a monthly basis and the deferred IRR will be paid at the end of 24 months along with the entire $950,000 amount due after 24 months at the option of the preferred equity member. | |||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 8.00% | |||||||||||
Noncontrolling interest total internal rate of return percentage | 12.00% | |||||||||||
Noncontrolling interest, amount due | $ 950,000 | |||||||||||
Current redemption amount | 986,100 | |||||||||||
Preferred Equity Agreement | Hornstrom | Preferred Equity Partners | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Capital contribution received | $ 650,000 | |||||||||||
Noncontrolling interest, description | Pursuant to the agreement, the Company will pay the preferred equity member a 12% total IRR with an 8% IRR paid on a monthly basis and the deferred IRR will be paid at the end of 24 months along with the entire $650,000 amount due after 24 months at the option of the preferred equity member | |||||||||||
Noncontrolling interest internal rate of return percentage paid on monthly basis | 8.00% | |||||||||||
Noncontrolling interest total internal rate of return percentage | 12.00% | |||||||||||
Noncontrolling interest, amount due | $ 650,000 | |||||||||||
Current redemption amount | 666,400 | |||||||||||
Contribution Agreement | Operating Partnership | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
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 | |||||||||||
Percentage value of interest in common units | 12.80% | |||||||||||
Number of investors required to redeem | Investor | 2 | |||||||||||
Common units redemption price per share | $ / shares | $ 20 | |||||||||||
Contribution Agreement | One Entity | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Number of entities | Entity | 1 | 1 | ||||||||||
Number of common units issued | shares | 110,957 | 24,309 | ||||||||||
Common units issue price per share | $ / shares | $ 10 | $ 20 | ||||||||||
Common units value issued | $ 1,109,570 | $ 486,180 | ||||||||||
Percentage value of interest in common units | 4.10% | |||||||||||
Common units redemption price per share | $ / shares | $ 10 | |||||||||||
Contribution Agreement | One Entity | President | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Ownership percentage | 11.00% | |||||||||||
Cocoa, FL | Preferred Equity Agreement | Brown Family Trust | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Acquisition of building | $ 1,737,800,000,000 | $ 4,578,800 | ||||||||||
Plant City, FL | Preferred Equity Agreement | Irby Property Partners | Preferred Equity Partners | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Acquisition of building | $ 1,757,300,000,000 | |||||||||||
Rockville, IL | Preferred Equity Agreement | Hornstrom | Preferred Equity Partners | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Acquisition of building | $ 724,800 | |||||||||||
Norfolk, VA | Contribution Agreement | Operating Partnership | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Acquisition of building | $ 19,134,400 | |||||||||||
Number of buildings acquired | Building | 2 | |||||||||||
Tampa, FL | Contribution Agreement | One Entity | ||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||||
Acquisition of building | $ 2,264,000 | $ 1,847,700 | ||||||||||
Number of buildings acquired | Building | 1 | 1 | ||||||||||
Percentage value of interest in common units | 0.90% |
Equity - Additional Information
Equity - Additional Information (Details) | Sep. 30, 2021USD ($)TradingDayDirector$ / sharesshares | Sep. 08, 2021USD ($)shares | Nov. 13, 2020USD ($)$ / sharesshares | Feb. 03, 2020USD ($)Director$ / sharesshares | Jul. 15, 2019USD ($)Director$ / sharesshares | Apr. 25, 2019USD ($)$ / sharesshares | Sep. 30, 2021Director$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Feb. 28, 2021Directorshares | Jan. 31, 2021shares | Dec. 31, 2020shares | Sep. 30, 2020shares | Mar. 31, 2022USD ($)Director$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Sep. 30, 2021Director$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2021USD ($)shares |
Class Of Stock [Line Items] | |||||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||||||||||||||
Undesignated preferred stock, shares authorized | 10,000,000 | ||||||||||||||||
Preferred stock, shares issued | 0 | ||||||||||||||||
Number of warrants to purchase common stock | 1 | 1 | |||||||||||||||
Common warrants exercisable price per share | $ / shares | $ 20 | $ 20 | |||||||||||||||
Common warrants expiration term | 7 years | 7 years | 5 years 9 months 18 days | 6 years 1 month 6 days | 4 years 6 months | 5 years 9 months 18 days | 6 years 1 month 6 days | 4 years 8 months 12 days | |||||||||
Warrants to purchase shares of common stock | 100,000 | 1,638,090 | 100,000 | ||||||||||||||
Reclassification of deferred offering costs to additional paid in capital | $ | $ 6,100 | $ 614,100 | |||||||||||||||
Deferred financing costs | $ | $ 1,279,800 | ||||||||||||||||
Warrants outstanding | 100,000 | 100,000 | 1,638,090 | 100,000 | 100,000 | 1,914,850 | |||||||||||
Intrinsic value of the warrants | $ | $ 0 | $ 0 | $ 0 | ||||||||||||||
Restricted Shares | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | $ 20 | $ 7 | $ 20 | |||||||||||||
Number of shares granted | 14,000 | 47,142 | 14,000 | 14,000 | |||||||||||||
Vesting period | 1 year | 3 years | |||||||||||||||
2020 Omnibus Incentive Plan | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Number of shares granted | 10,000 | ||||||||||||||||
Reserves shares of common stock | 2,000,000 | ||||||||||||||||
Minimum | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Common warrants expiration term | 5 years | ||||||||||||||||
Maximum | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Common warrants expiration term | 7 years | ||||||||||||||||
Director | Unrestricted Shares | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Number of shares granted | 1,666 | ||||||||||||||||
Director | Shares Granted, July 15, 2019 | Restricted Shares | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | ||||||||||||||||
Number of shares granted | 2,500 | 1,666 | 1,668 | ||||||||||||||
Number of independent directors granted shares | Director | 2 | ||||||||||||||||
Vesting period | 12 months | ||||||||||||||||
Award expiration period | 36 months | ||||||||||||||||
Grant award value | $ | $ 50,000 | ||||||||||||||||
Number of directors granted shares | Director | 2 | 2 | 2 | ||||||||||||||
Director | Shares Granted, February 3, 2020 | Restricted Shares | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | ||||||||||||||||
Number of shares granted | 2,500 | 3,334 | |||||||||||||||
Number of independent directors granted shares | Director | 2 | ||||||||||||||||
Vesting period | 12 months | ||||||||||||||||
Award expiration period | 36 months | ||||||||||||||||
Grant award value | $ | $ 50,000 | ||||||||||||||||
Number of directors granted shares | Director | 2 | ||||||||||||||||
Director | Shares Granted, February 3, 2020 | Unrestricted Shares | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Number of directors granted shares | Director | 2 | ||||||||||||||||
Chief Financial Officer | Restricted Shares | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Shares issued price per share | $ / shares | $ 20 | $ 20 | $ 20 | ||||||||||||||
Number of shares granted | 6,250 | 4,167 | |||||||||||||||
Vesting period | 12 months | ||||||||||||||||
Award expiration period | 36 months | ||||||||||||||||
Grant award value | $ | $ 125,000 | ||||||||||||||||
Shares awarded per month for waiving right to cash compensation | 550 | 550 | 550 | 550 | |||||||||||||
Shares issued during the period | 2,200 | ||||||||||||||||
Chief Financial Officer | Unrestricted Shares | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Number of shares granted | 2,083 | ||||||||||||||||
Public Offering | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Number of warrants to purchase common stock | 1 | ||||||||||||||||
Over-Allotment Option | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Common stock issued | 27,676 | ||||||||||||||||
Number of warrants to purchase common stock | 1 | 1 | 1 | ||||||||||||||
Common warrants exercisable price per share | $ / shares | $ 12.50 | $ 12.50 | $ 12.50 | ||||||||||||||
Common warrants expiration term | 5 years | 5 years | 5 years | ||||||||||||||
Percentage of shares underlying warrants that may be exercised based on trading price | 10.00% | ||||||||||||||||
Shares underlying warrants that may be exercised based on trading price, period after issuance | 120 days | ||||||||||||||||
Shares underlying warrants that may be exercised, number of trading days for calculation of trading price | TradingDay | 10 | ||||||||||||||||
Class of warrants or right exercised | 276,760 | ||||||||||||||||
Warrants to purchase shares of common stock | 149,850 | 149,850 | 149,850 | ||||||||||||||
Percentage of number of shares of common stock sold in offering | 9.00% | ||||||||||||||||
Warrants to purchase shares of common stock, expiration date | Sep. 2, 2026 | Sep. 2, 2026 | Sep. 2, 2026 | ||||||||||||||
Common Stock Par Value $0.01 Per Share | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Common stock issued amount | $ | $ 1,000,000 | $ 1,000,000 | |||||||||||||||
Common stock issued | 50,000 | 50,000 | |||||||||||||||
Shares issued price per share | $ / shares | $ 20 | $ 20 | |||||||||||||||
Common Stock Par Value $0.01 Per Share | Public Offering | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Common stock issued | 1,500,000 | ||||||||||||||||
Common Stock Par Value $0.01 Per Share | Over-Allotment Option | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Common stock issued amount | $ | $ 13,800,000 | ||||||||||||||||
Common stock issued | 165,000 | ||||||||||||||||
Shares issued price per share | $ / shares | $ 10 | $ 10 | $ 10 | ||||||||||||||
Treasury Stock | Public Offering | CEO | |||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||
Redeemable shares of common stock | 112,500 | ||||||||||||||||
Redeemable shares of common stock, value | $ | $ 100 |
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 |
Class Of Warrant Or Right [Line Items] | ||||
Issue Date | Nov. 13, 2020 | Apr. 25, 2019 | ||
Exercise price | $ 20 | $ 20 | ||
Warrants Issued and Outstanding | 50,000 | 50,000 | ||
Exercise Price of $10.00 | ||||
Class Of Warrant Or Right [Line Items] | ||||
Issue Date | Sep. 30, 2021 | Sep. 8, 2021 | ||
Exercise price | $ 10 | $ 10 | ||
Warrants Issued and Outstanding | 165,000 | 1,223,240 | ||
Exercise Price of $12.50 | ||||
Class Of Warrant Or Right [Line Items] | ||||
Issue Date | Sep. 30, 2021 | Sep. 8, 2021 | ||
Exercise price | $ 12.50 | $ 12.50 | ||
Warrants Issued and Outstanding | 14,850 | 135,000 |
Equity - Summary of Warrants Ou
Equity - Summary of Warrants Outstanding (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity [Abstract] | ||
Number of Warrants, Beginning balance | 1,914,850 | 100,000 |
Number of Warrants, Exercised | (276,760) | |
Number of Warrants, Ending balance | 1,638,090 | 100,000 |
Warrants exercisable | 1,638,090 | 100,000 |
Weighted Average Price, Beginning balance | $ 10.72 | $ 20 |
Weighted Average Price, Exercised | 10 | |
Weighted Average Price, Ending balance | 10.84 | 20 |
Weighted Average Price, Warrants exercisable | $ 10.84 | $ 20 |
Weighted Average Remaining Life, Beginning balance | 4 years 8 months 12 days | 6 years 1 month 6 days |
Weighted Average Remaining Life, Ending balance | 4 years 6 months | 5 years 9 months 18 days |
Weighted Average Remaining Life, Warrants exercisable | 4 years 6 months | 5 years 9 months 18 days |
Equity - Schedule of Restricted
Equity - Schedule of Restricted Common Shares Issued (Details) - Restricted Shares - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Shares Outstanding at beginning of the period | 23,167 | 14,582 | 14,582 | |
Restricted Shares Issued | 14,000 | 47,142 | 14,000 | 14,000 |
Restricted Shares Vested | (10,500) | (3,749) | ||
Number of Restricted Shares Outstanding at end of the period | 59,809 | 24,833 | ||
Compensation expense | $ 93,926 | $ 49,471 |
Equity - Schedule of Cash Distr
Equity - Schedule of Cash Distributions (Details) - $ / shares | Dec. 10, 2021 | Feb. 26, 2021 |
Dividends Payable [Line Items] | ||
Board of Directors Authorized Date | Feb. 26, 2021 | |
Record Date | Mar. 15, 2021 | |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.325 | |
Dividend Tranche One | ||
Dividends Payable [Line Items] | ||
Board of Directors Authorized Date | Dec. 10, 2021 | |
Record Date | Mar. 15, 2022 | |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.054 | |
Dividend Tranche Two | ||
Dividends Payable [Line Items] | ||
Board of Directors Authorized Date | Dec. 10, 2021 | |
Record Date | Feb. 15, 2022 | |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.054 | |
Dividend Tranche Three | ||
Dividends Payable [Line Items] | ||
Board of Directors Authorized Date | Dec. 10, 2021 | |
Record Date | Jan. 15, 2022 | |
Per Share or Per Unit Cash Distributions to Common Shareholders and Operating Partnership Unit Holders | $ 0.054 |
Leases - Additional Information
Leases - Additional Information (Details) - Tenant | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Number of tenants | 3 | 4 |
Leases - Schedule of Concentrat
Leases - Schedule of Concentration Risk Percentage (Details) - Sales Revenue Net - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pratt And Whitney Corporation | Huntsville, AL | ||
Product Information [Line Items] | ||
Pratt and Whitney – Huntsville, AL property | 14.50% | 18.60% |
General Services Administration | Norfolk, VA | ||
Product Information [Line Items] | ||
Pratt and Whitney – Huntsville, AL property | 19.50% | 24.00% |
PRA Holding | Norfolk, VA | ||
Product Information [Line Items] | ||
Pratt and Whitney – Huntsville, AL property | 10.50% | |
PRA Holding | Norfolk, VA | Maximum | ||
Product Information [Line Items] | ||
Pratt and Whitney – Huntsville, AL property | 10.00% | |
Maersk Inc | Norfolk, VA | ||
Product Information [Line Items] | ||
Pratt and Whitney – Huntsville, AL property | 16.10% | 20.00% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Base Rental Cash Payments Due (Details) | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 3,746,000 |
2023 | 4,629,000 |
2024 | 4,675,000 |
2025 | 4,547,000 |
2026 | 4,425,000 |
Thereafter | 8,988,000 |
Total undiscounted liability | $ 31,010,000 |
Promissory Notes - Schedule of
Promissory Notes - Schedule of Promissory Notes (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Less: debt issuance costs, net | $ (1,279,800) | ||
Promissory Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 35,710,733 | ||
Less: debt issuance costs, net | (682,898) | (637,693) | |
Long-term debt | $ 35,027,836 | 28,969,295 | |
Promissory Notes | Promissory Note Issued on January 7, 2022 | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Wall Street Journal Prime Rate with minimum of 3.25% | ||
Interest Rate | 3.25% | ||
Maturity Date | Jan. 7, 2024 | ||
Long-term debt, gross | $ 1,550,000 | ||
Promissory Notes | Promissory Note Issued on January 7, 2022 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Promissory Notes | Promissory Note Issued on January 14, 2022 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.65% | ||
Maturity Date | Jan. 14, 2027 | ||
Long-term debt, gross | $ 1,050,000 | ||
Promissory Notes | Promissory Note Issued on March 9, 2022 | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Wall Street Journal Prime Rate with minimum of 3.25% | ||
Interest Rate | 3.25% | ||
Maturity Date | Mar. 9, 2024 | ||
Long-term debt, gross | $ 3,650,000 | ||
Promissory Notes | Promissory Note Issued on March 9, 2022 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Promissory Notes | Promissory Note Issued on January 15, 2015 and modified on November 30, 2020 | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | 3.72% fixed rate after using SWAP whereas the loan is LIBOR plus 2.75% | ||
Interest Rate | 3.72% | ||
Maturity Date | Aug. 10, 2028 | ||
Long-term debt, gross | $ 1,286,664 | 1,286,664 | |
Promissory Notes | Promissory Note Issued on January 15, 2015 and modified on November 30, 2020 | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Promissory Notes | Promissory Note Issued on February 4, 2021 | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Wall Street Journal Prime Rate with minimum of 3.25% | ||
Interest Rate | 3.25% | ||
Maturity Date | Feb. 4, 2023 | ||
Long-term debt, gross | $ 1,275,000 | 1,275,000 | |
Promissory Notes | Promissory Note Issued on February 4, 2021 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Promissory Notes | Promissory Note Issued on December 28, 2021 | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Wall Street Journal Prime Rate with minimum of 3.25% | ||
Interest Rate | 3.25% | ||
Maturity Date | Dec. 28, 2023 | ||
Long-term debt, gross | $ 2,350,000 | 2,350,000 | |
Promissory Notes | Promissory Note Issued on December 28, 2021 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Wall Street Journal Prime Rate minus 0.5% with minimum of 3.0% for the first 24 months; thereafter, weekly average yield on U.S. Treasury Securities adjusted to a constant maturity of three years on April 21, 2023, plus 2.75% with a minimum of 3.25% | ||
Maturity Date | Dec. 31, 2024 | ||
Long-term debt, gross | $ 850,000 | 850,000 | |
Promissory Notes | Promissory Note Issued on April 21, 2021 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.00% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | U.S. Treasury | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Promissory Notes | Promissory Note Issued on April 21, 2021 | U.S. Treasury | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Promissory Notes | Promissory Note Issued on September 30, 2019 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.25% | 3.50% | |
Maturity Date | Sep. 30, 2024 | ||
Long-term debt, gross | $ 7,748,388 | 7,805,524 | |
Promissory Notes | Promissory Note Issued on October 23, 2017 and modified on September 30, 2019 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.25% | 3.50% | |
Maturity Date | Oct. 23, 2024 | ||
Long-term debt, gross | $ 4,849,463 | 4,889,670 | |
Promissory Notes | Promissory Note Issued on April 6, 2021 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.17% | ||
Maturity Date | Mar. 6, 2030 | ||
Long-term debt, gross | $ 11,101,219 | $ 11,150,130 |
Promissory Notes - Schedule o_2
Promissory Notes - Schedule of Promissory Notes (Parenthetical) (Details) - Promissory Notes - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | Apr. 05, 2021 | Mar. 31, 2022 | |
Promissory Note Issued on January 7, 2022 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 1,550,000 | $ 1,550,000 | ||
Interest rate | 3.25% | |||
Promissory Note Issued on January 14, 2022 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 1,050,000 | 1,050,000 | ||
Interest rate | 3.65% | |||
Promissory Note Issued on March 9, 2022 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 3,650,000 | 3,650,000 | ||
Interest rate | 3.25% | |||
Promissory Note Issued on January 15, 2015 and modified on November 30, 2020 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 1,286,664 | 1,286,664 | ||
Interest rate | 3.72% | |||
Interest and principal payment due | $ 6,600 | |||
Interest only payment due | 4,200 | |||
Interest rate | 4,200 | |||
Promissory Note Issued on February 4, 2021 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 1,275,000 | 1,275,000 | ||
Interest rate | 3.25% | |||
Promissory Note Issued on April 21, 2021 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 850,000 | 850,000 | ||
Interest and principal payment due | 4,200 | |||
Interest only payment due | 2,100 | |||
Interest rate | 2,100 | |||
Promissory Note Issued on December 28, 2021 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 2,350,000 | 2,350,000 | ||
Interest rate | 3.25% | |||
Promissory Note Issued on September 30, 2019 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 8,260,000 | 8,260,000 | ||
Interest rate | 4.25% | 3.50% | ||
Interest and principal payment due | $ 41,500 | |||
Promissory Note Issued on October 23, 2017 and modified on September 30, 2019 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 5,216,749 | 5,216,749 | ||
Interest rate | 4.25% | 3.50% | ||
Interest and principal payment due | $ 27,400 | |||
Promissory Note Issued on April 6, 2021 | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued amount | $ 11,287,500 | 11,287,500 | ||
Interest rate | 4.17% | |||
Interest and principal payment due | $ 55,000 | |||
Interest only payment due | $ 39,000 | |||
Interest rate | $ 39,000 |
Promissory Notes - Additional I
Promissory Notes - Additional Information (Details) - USD ($) | Feb. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | $ 33,673 | $ 31,103 | |||
Payments of debt issuance costs | 78,878 | 22,662 | |||
Secured debt | 35,027,836 | $ 28,969,295 | |||
Promissory Notes | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | 33,700 | 31,100 | |||
Payments of debt issuance costs | 78,900 | $ 22,700 | |||
Long-term debt | 35,027,836 | $ 28,969,295 | |||
Secured debt | 22,100,000 | ||||
Promissory Notes | Nonrecourse | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 12,600,000 | ||||
Promissory Notes | DC/Tampa/Huntsville Loan | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 11,100,000 | ||||
Promissory Notes | Tampa Sherwin Williams Property | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 1,300,000 | ||||
Promissory Notes | Irby Property | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 900,000 | ||||
Promissory Notes | GSA Manteo NC Property | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 1,300,000 | ||||
Promissory Notes | Best Buy Grand Junction C O Property | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 2,400,000 | ||||
Promissory Notes | Fresenius Chicago I L Property | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 1,600,000 | ||||
Promissory Notes | Kohls Tucson A Z Property | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 3,700,000 | ||||
Promissory Notes | Promissory Notes Required 1.50 DSCR | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 7,600,000 | ||||
Debt service coverage ratios | 1.50% | ||||
Promissory Notes | Promissory Notes Required 1.30 DSCR | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,300,000 | ||||
Debt service coverage ratios | 1.30% | ||||
Promissory Notes | Promissory Notes Required 1.25 DSCR | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 23,700,000 | ||||
Debt service coverage ratios | 1.25% | ||||
Promissory Notes | Promissory Notes Required 1.20 DSCR | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,300,000 | ||||
Debt service coverage ratios | 1.20% | ||||
Promissory Notes | Promissory Notes Required 1.15 DSCR | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 900,000 | ||||
Debt service coverage ratios | 1.15% | ||||
Promissory Notes | Promissory Notes Required no DSCR | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,100,000 | ||||
Debt service coverage ratios | 0.00% | ||||
Promissory Notes | Bayport Loans | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.25% | 3.50% |
Promissory Notes - Schedule o_3
Promissory Notes - Schedule of Minimum Required Principal Payments (Details) - Promissory Notes | Mar. 31, 2022USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 435,060 |
2023 | 4,240,446 |
2024 | 18,204,862 |
2025 | 278,109 |
2026 | 289,778 |
2027 and beyond | 12,262,478 |
Long-term debt, gross | $ 35,710,733 |
Related Party - Additional Info
Related Party - Additional Information (Details) - GIP fund 1, LLC - Building In Tampa FL $ / shares in Units, $ in Millions | Nov. 30, 2020USD ($)ft²$ / sharesshares | Mar. 31, 2022 |
Related Party Transaction [Line Items] | ||
Area of property | ft² | 3,500 | |
Acquisition of building | $ 1.8 | |
Debt financing | $ 1.3 | |
Number of common units issued | shares | 24,309 | |
Common units issue price per share | $ / shares | $ 20 | |
President | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership owned | 11.00% | 0.102% |
Tenant in Common Investment - A
Tenant in Common Investment - Additional Information (Details) | Aug. 13, 2021USD ($)ft²Tenant | Mar. 31, 2022USD ($)Tenant | Mar. 31, 2021Tenant |
Tenant In Common Investment [Line Items] | |||
Number of tenants | Tenant | 3 | 4 | |
Rockford, IL | |||
Tenant In Common Investment [Line Items] | |||
Area of property | ft² | 15,288 | ||
Number of tenants | Tenant | 1 | ||
Asset acquisition, total consideration costs | $ 4,500,000 | ||
Asset acquisition with redeemable non controlling interest contribution | 650,000 | ||
Debt financing | 2,700,000 | ||
Redeemable noncontrolling interest, equity, common, fair value | 600,000 | ||
Redeemable noncontrolling interest, equity, fair value | 950,000 | ||
Equity method investments | $ 734,000 | ||
Issuance of promissory note for property acquisition | $ 2,715,000 | ||
Promissory note issuance date | Aug. 13, 2021 | ||
Debt | $ 1,000,000 | ||
Loan repayment guaranteed by president | $ 2,700,000 | ||
Debt instrument, covenant description | The loan has normal covenants which includes DSCR 1.50:1.0. | ||
Debt service coverage ratios | 150.00% | ||
Sunny Ridge | Rockford, IL | |||
Tenant In Common Investment [Line Items] | |||
Ownership percentage | 36.80% | ||
Remainder of purchase price of property funded | $ 1,200,000 | ||
Sunny Ridge | Rockford, IL | Richard Hornstrom | |||
Tenant In Common Investment [Line Items] | |||
Ownership percentage | 50.00% |
Tenant in Common Investment - C
Tenant in Common Investment - Condensed Income Statement of Tenant in Common Investment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Tenant in Common Investment [Line Items] | ||
Total operating expenses | $ 1,636,000 | $ 1,258,591 |
Operating income | (454,065) | $ (321,703) |
Tenancy In Common | ||
Tenant in Common Investment [Line Items] | ||
Revenue | 93,139 | |
Total operating expenses | 69,924 | |
Operating income | 23,215 | |
Tenancy In Common | Company Portion | ||
Tenant in Common Investment [Line Items] | ||
Revenue | 34,312 | |
Total operating expenses | 25,760 | |
Operating income | $ 8,552 |
Tenant in Common Investment -_2
Tenant in Common Investment - Condensed Balance Sheets of Tenant in Common Investment (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Tenant in Common Investment [Line Items] | ||
Prepaid expenses | $ 494,709 | $ 237,592 |
Deferred rent asset | 174,364 | 156,842 |
Property, net of depreciation | 53,909,748 | 41,299,681 |
Intangible asset, net of amortization | 3,569,079 | 2,309,157 |
Total Assets | 66,570,918 | 53,420,716 |
Accounts payable | 94,816 | 201,727 |
Accrued expenses | 305,964 | 134,816 |
Acquired lease intangible liability, net of amortization | 6,313,954 | |
Mortgage payable net of unamortized debt issuance costs | 35,027,836 | 28,969,295 |
Total Liabilities and Stockholders' Equity | 66,570,918 | 53,420,716 |
Tenancy In Common | ||
Tenant in Common Investment [Line Items] | ||
Prepaid expenses | 2,007 | 522 |
Deferred rent asset | 3,689 | 2,108 |
Property, net of depreciation | 4,323,875 | 4,341,285 |
Due from tenant-in-common | 86,871 | 47,350 |
Total Assets | 4,684,198 | 4,671,115 |
Accounts payable | 845 | |
Accounts payable - related party | 24,724 | 13,696 |
Accrued expenses | 4,751 | 4,751 |
Acquired lease intangible liability, net of amortization | 41,135 | 42,993 |
Mortgage payable net of unamortized debt issuance costs | 2,683,149 | 2,677,446 |
Total Liabilities and Stockholders' Equity | 4,684,198 | 4,671,115 |
Tenancy In Common | Acquired Lease | ||
Tenant in Common Investment [Line Items] | ||
Intangible asset, net of amortization | 267,756 | 279,850 |
Tenancy In Common | GIP Inc. | ||
Tenant in Common Investment [Line Items] | ||
Equity | 733,635 | 725,082 |
Tenancy In Common | Sunny Ridge | ||
Tenant in Common Investment [Line Items] | ||
Equity | $ 1,196,804 | $ 1,206,302 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Apr. 01, 2022USD ($)PropertyLoanAgreement$ / shares | Dec. 10, 2021 | Feb. 26, 2021 | Apr. 30, 2022TradingDayshares | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | May 02, 2022USD ($) | Apr. 25, 2022$ / sharesshares | Oct. 26, 2021USD ($) |
Subsequent Event [Line Items] | |||||||||
Secured debt | $ 35,027,836 | $ 28,969,295 | |||||||
Board of Directors Authorized Date | Feb. 26, 2021 | ||||||||
Record Date | Mar. 15, 2021 | ||||||||
Dividend Tranche One | |||||||||
Subsequent Event [Line Items] | |||||||||
Board of Directors Authorized Date | Dec. 10, 2021 | ||||||||
Record Date | Mar. 15, 2022 | ||||||||
Dividend Tranche Two | |||||||||
Subsequent Event [Line Items] | |||||||||
Board of Directors Authorized Date | Dec. 10, 2021 | ||||||||
Record Date | Feb. 15, 2022 | ||||||||
Dividend Tranche Three | |||||||||
Subsequent Event [Line Items] | |||||||||
Board of Directors Authorized Date | Dec. 10, 2021 | ||||||||
Record Date | Jan. 15, 2022 | ||||||||
Commitment Letter | |||||||||
Subsequent Event [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 25,000,000 | ||||||||
Borrowing under facility | $ 7,600,000 | $ 2,400,000 | |||||||
Valley National Bank (the “Lender”) | Commitment Letter | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, interest rate terms | The Notes bear interest at a fixed rate of 3.85% from April 1, 2022 through and until March 31, 2027. | ||||||||
Description of variable rate basis | Commencing April 1, 2027, the interest rate on the Notes shall be adjusted to a fixed rate equivalent to the weekly average yield of nominal (non-inflation indexed) U.S. Treasury securities adjusted to a constant maturity of five years as published in the Board of Governors of the Federal Reserve System Statistical Release (Publication H.15 [519]) plus 2.5%, subject to a floor interest rate of 3.85% per annum. | ||||||||
Subsequent Events | |||||||||
Subsequent Event [Line Items] | |||||||||
Board of Directors Authorized Date | Apr. 1, 2022 | ||||||||
Subsequent Events | Dividend Tranche One | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, amount per share | $ / shares | $ 0.054 | ||||||||
Record Date | Apr. 15, 2022 | ||||||||
Dividends payable, date to be paid | Apr. 29, 2022 | ||||||||
Subsequent Events | Dividend Tranche Two | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, amount per share | $ / shares | $ 0.054 | ||||||||
Record Date | May 15, 2022 | ||||||||
Dividends payable, date to be paid | May 30, 2022 | ||||||||
Subsequent Events | Dividend Tranche Three | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, amount per share | $ / shares | $ 0.054 | ||||||||
Record Date | Jun. 15, 2022 | ||||||||
Dividends payable, date to be paid | Jun. 30, 2022 | ||||||||
Subsequent Events | Commitment Letter | |||||||||
Subsequent Event [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||||||||
Line of credit, remaining borrowing capacity | $ 25,000,000 | ||||||||
Common units redemption share | shares | 10,166 | ||||||||
Common units redemption price per share | $ / shares | $ 20 | ||||||||
Investor warrants exercised | shares | 29,880 | ||||||||
Percentage of shares underlying warrants that may be exercised based on trading price | 10.00% | ||||||||
Shares underlying warrants that may be exercised, number of trading days for calculation of trading price | TradingDay | 10 | ||||||||
Common stock issued upon exercise of warrants | shares | 2,988 | ||||||||
Subsequent Events | Valley National Bank (the “Lender”) | Loan Agreements | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of loans | Loan | 2 | ||||||||
Number of properties | Property | 6 | ||||||||
Aggregate amount of loan | $ 13,500,000 | ||||||||
Secured debt | $ 11,400,000 | ||||||||
Number of refinance, properties | Property | 7 | ||||||||
Subsequent Events | Valley National Bank (the “Lender”) | Commitment Letter | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, fixed interest rate | 3.85% | ||||||||
Debt instrument, subject to a floor interest rate | 2.50% | ||||||||
Debt instrument origination fees | $ 67,500 | ||||||||
Interest-only payment term of loan | 12 months | ||||||||
Debt instrument amortization period | 25 years | ||||||||
Number of guaranty agreements | Agreement | 2 | ||||||||
Number of mortgage and security agreements | Agreement | 2 | ||||||||
Rockford, IL | Subsequent Events | Valley National Bank (the “Lender”) | Loan Agreements | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of loans | Property | 1 | ||||||||
Secured debt | $ 2,100,000 |