Earnings call transcript Q3 2022

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Operator

Good morning ladies and gentlemen and welcome to Generation Income Properties Third Quarter 2022 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. Please note that today's conference is being recorded.

Following management's prepared comments, the call will be open for your questions. [Operator Instructions]

the Cusmano. to turn of company's now Emily Staff, will conference the over Chief I ahead. go Please

Emily Cusmano

Thank you Allison Allison events morning of markets Sobelman financial Officer. and activities, good quarterly will will the Chief by joined David highlights business results. Executive review David company's today third growth our Officer; and an quarter to-date, and provide Davies, strategy, Financial everyone. Chief overview I capital am subsequent and

will remind we historical statements include statements. I about comments like or that Before forward-looking Statements facts not are acquisitions dispositions statements forward-looking to Federal are you Law. begin, as Securities our under expected considered today's would that such

Our differ contained in from that forward the report actual may are factors operations by materially looking XX-Q. and cause statements filings, SEC Discussion vary on of our results of form from those could financial these to materially such a including condition results our contemplated forward-looking statements.

non-GAAP presented and In Please an addition, reconciliations to such information why our financial explanation GAAP refer non-GAAP certain call of on are we financial release definitions, investors. useful measures to believe measures. earnings for financial includes this

With that, to Sobelman. Chief over the I turn David Officer will call Executive our now

David Sobelman

And Thank everyone. you, good Emily. morning

that prevalent, widely well While macroeconomic tenants. of rates be more existing market happy as portfolio today's worthiness becomes position say able below global to market we're high the our as glad news volatility a present scale. We're well steady is interest in it rates, to are we're of our our debt even collection, as with credit on performance our fixed to the relates that as stable a XXX% rent

and internal focused on During the third maximizing growing growth our we quarter,

the positioning time throughout we'll that look opportunistically within better assets order in market. advantage acquire take to is the of By to navigate to pipeline imbalances right. when is ourselves the market, uncertainty prevalent the today's

long the the over stock are we propel throughout the for to growth the acutely term, price patient While need we third external appreciation aware remained quarter. and recognize

are interest the We not rates. in will to today's not market the succumb priced there assets are commensurate pressures purchase with to with be assets tremendous dislocations when to that

History good than the to we're today. rates of a cap interest never decision seeing it has long when acquisitions higher most being make rates are proven is marketed term

We provide path acquisitions make long remain the will disciplined our there the when GIPR. a and to shareholders benefits assets or is of will term clear asset that

mentioned, within base we've base maintaining report growth As happy XX% to portfolio are to of we're continued and rents our internal that that of portfolios the of increases contractual diligent we're be annualized about our the rent.

We have this to primary lease Consumer shareholders in increases fixed benefit worked term. or year our rates has increases CPI within our Index, either Price the rental what

for increases portfolio. can year advantage approximately X% annual come. rent Our the net over operating to internal portfolio has income from last years to rent our by These and growth increased current seek portfolio also rent within to of in provided same we same our have of credit increases worthy provide period taking NOI assets continue growth that us the with property

With that Allison to the turn I'm CFO, call delighted over our to Davies.

Allison Davies

same compensation driven $X.X the Thank results depreciation revenue by was for and operating G&A, we represents an quarter announcing and you, XX% $X a press $X.X recoverable night Total the quarter. David. year-over-year rent by revenue and period for from release million our million a Operating financial was acquisition expenses, million the Last of increase issued properties of and the increase recoverable respectively. costs. driven and This increase were operations during growth. in expenses increase in which

lower benefits contractual during underwriting and accretive last an rent primarily from building through driven the the to compared believe natural increases million on expenses. $X.X year, Net a We operating or this disciplined to investments our addition increase rent was of of is indicative increase as $XXX,XXX managed XX% focusing internally CPI period same steps that in income portfolio.

compared increase income net year. non-cash sale property period same was expenses the $XXX,XXX related from last by $XXX,XXX $XXX,XXX recognized last AFFO increase the gain previously, Net The loss period was of increase stockholders last during compared to directly of the the AFFO directly attributable quarter common to the same This quarter in well an offset Core is for $XXX,XXX to to for as year. as same as the to mentioned as core was expenses. a in year. attributable for the

September reflecting term X.X thesis. as lease is term short GIPR's years XX, weighted lease our remaining of average

the have expiring prospects. our discussions lease with active an has We team tenant at and one end XX of alternative

good to Our experiencing. position we're a the is now balance also that uncertainty market withstand in sheet

We XXXX. healthy our have cash next a mortgage debt isn't maturity balance and until

As David we've to act as opportunities earlier, arise. as mentioned positioned ourselves soon acquisition

constant interested in keeping contact market to pre-program. successful in the well specifically with investments, those are very are We as seek off as brokerage at community, continue

program when and JV to deploy those remains our opportunities active is capital time the when Additionally, arise ready right.

David. that, turn With the over back call I'll to

David Sobelman

realized our a remain on principles the positioned time that believe current company economic as the we we and well we're just remain Thank to is markets, in generational are come at steadfast and focused In that implies. ourselves wealth result. short, we this have will is patient opportunities beginning. name a and weather to global We an profile. may think threshold work our our you, uncertain as We environment greater the as the Allison. disciplined creating but of And we seize

please that questions. operator, With open for the call

Operator

Hutton. question-and-answer Our with Gaurav we'll time, question. your Thank the Mehta comes EF of line Instructions] Please you. [Operator with session. At proceed a question first from this conducting be

Gaurav Mehta

this transaction you forward? maybe rates earlier to know where market? and you are color than some year more color lower provide in your prepared can I cap the expectations be interest David, what on morning. provide going are. to Good seems CapEx where Can that Thanks. rates on remarks, the think your you the compared said you are

David Sobelman

Yes, It's good you. would we a rates from Gaurav. openly threshold still which Good are marketed mass cap hear to the on below in scale. transact morning,

pipeline incrementally robust similar transact. which time with to getting our on. we need goes are is, closer in increase to are the to are our very and And as we seeing rates cap current that assets portfolio say cap However, let's rates

Gaurav Mehta

Okay.

Second question expiration. your XQ on lease

I that Can think and on you to maybe property touched some upon that said color think a In maybe little remarks, year? bit. I tenants. prepared provide expect that for you release this you alternative the looking you

David Sobelman

communication which constant in Maersk. communication Sure. of that all We're in constant tenants. is with tenant, our We're with

we they to already notice leave we date rent with termination first us be given time written to and us actively their a holdover are But will at prepared in for some who at haven't tenants that as discussions them quarter. they our looking a are situation. However, the in are have they disclosed space. in And to

Gaurav Mehta

Okay.

dividend can color decision XQ? to Lastly, your lower distribution provide in your on some you

David Sobelman

we possible position that wanted possible. time to Yes, with, successful soon as lot be board. our as it's something a We ourselves in as with spent of as a to put

board so currently our management our And peers the above dividend from and be the made are to market decision paying. lower still where to

us we put a faster. can the company However, where to grow place in

Gaurav Mehta

That's all have. I you. Thank Okay.

Operator

line from Please your you. question proceed Thank comes with next with Our Michael Maxim of question. [Operator Instructions] Diana Group.

Michael Diana

you the my I which the and have lease I been think to well. all there. covered dividend you Hi Actually, asked. expiration was going questions environment ask about

So thank you.

David Sobelman

Michael. right. All Thanks,

Operator

our that Ladies turn Mr. I'll you. to and Thank floor gentlemen, Instructions] session. back [Operator concludes question-and-answer the

Sobelman any for comments. final

David Sobelman

Have Thanksgiving. week everyone. Happy a Thanks, a great and

Operator

Thank you. This concludes today's conference.

may participation. your disconnect your lines Thank this time. You at you for

Generation Income Properties (GIPR) 15 Nov 222022 Q3 Earnings call transcript