GIPR - Earnings call 3 2023 | Generation Income Properties, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Generation Income Properties Third Quarter 2023 Earnings Conference Call.

[Operator Instructions]

Please today's conference call is being recorded.

[Operator Instructions]

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

Emily Cusmano

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

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

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

presented the an In and measures. are investors. With our release will reconciliations addition, GAAP financial certain financial such we for Executive definitions, non-GAAP Sobelman. to turn our that, on this refer David believe to to Please now measures includes of earnings call why financial explanation over useful non-GAAP call Chief I information Officer,

David Sobelman

Good and morning. you thank Tampa, morning Florida, from for joining this us

company that to that and in expression will season public happy gratitude growth and This report should her have an last large, earnings highlighted but Chief at Allison We something our of celebrated. it's the and shareholders with feel to be updates the for involvement we're her of with several appropriate start Financial to is be our GIPR, Davies. our Officer,

Allison the on very contributions the shareholders. our made are team We for to grateful of behalf that

blossom career We the her future. looking forward to watching in are

in our transaction, states. reported XX the Stock purchased of off market in in that Exchange X which XX% our owns REIT, XX%, X.X now end Modiv XXX% not Occupancy were $XX a with metric of increase. the benefit credit of in years all the we changing accomplish is square XX of while included increase. August And these as key highest properties, shareholders. almost increase sits the levels the adjusted now is average New most our assets, term credit from now properties million, quarter lease quarter, third importantly, the a to our investment-grade a portfolio portfolio year, approximately we and net to increase. We of makeup the XX% commercial lease of the lease increase. currently feet was X% peers. a beginning materially net This X% completed Industrial, at rent quarter this increased almost feats, is net our one base lease a almost $X.X the IG REIT to third The able of prior million portfolio, XX%, York at portfolio compared which XXX,XXX of of As every GIPR

shade long not are for time quarter. they Buffett metrics, in price. we Warren has plan someone think a in current We in improvements not tree reflected and related portfolio's and we our said to believe meaningful planted these sitting in unfortunately, While single a because strictly our ago. is appease that share someone a the generations today

a of our tree value the to for We assets to and have we opportunity clearly set the tremendous be what add foundation believe or planted company. increase

that is over of asset the which XXXX hope shareholders was by continue that million, Tower creating long-term focus recognized recognized the and our for we value $XXX by our on market. on wider growth which transaction known for value We will disciplined NASDAQ brings the one over throughout gross be was will time globe. and This to Times to goals Square total

we and buying at lease to order team the markets GIPR However, monumental regular basis. continually to net in is that on in even a monitoring the which opportunities are capital begin in and transactions past, find the recognize the best

REITs to use rate once One to financial to tenant. Cap are gauge rent property are and market time, words heard our acquisition main getting from produces reenter Yields is this famous it's we and of rate. circumstances. the plan private to only and up. net we of of when the climb between investors, follow have the not be the crisis. is the this positioned yield rates almost buyers on the XX-year cap years lease the us advantage last relationship primarily exaggerated from to a crept industry taking reality than or to based well net purchase XXXX advantage going very which I've I on of many industry, the an the to barometers But less the buyers the higher, of at within industry received career, there distract in has seem The that rates price Exchange the dislocations have capitalization selling to property that net were different. higher or professionals seen and XXXX, now the last before. interest anecdotes far lease data, into there sophisticated is rates, decade that our so. recently the are last cap properties, rate on the setting my focusing purchase the take XXXX great data data in over less fewer from Between and that transactions, fewer over year. In a based exclusively our With been the

patient. We have been

rewarded next was The between our require of focus which right growth of patience as patience we finding accelerated company. on has market all pricing step conditions. our of the will with current the we believe also trajectory efforts and Our acquisition, Modiv balance the

we fixed one We believe outlook one we a investments. returns, we also which stable have a outpace market shareholders, continue our in building other provides long-term portfolio which above believe can in for will that and and income

prudent so without to be methodically We forward the to commitment but reactive. of on reporting best that look promise do can't growth a company, and all shareholders our next are our calculating to the shareholders the for we opportunities made for us. counting stage not we However, and

For are ONEXX operations, the Cook base Accounting our engaged has Ron through us effectively stage Board GIPR firm, and of Tampa, our company's lead team, and Ron our Sedgwick assist he next with controller, Vice serve serve to company's Beth in ONEXX. recently have him on of Florida the that of as of along and will an will the of professionals are and we company's accounting as current Principal growth. accounting our the Audit the Finance litany will update Officer, governance and the President with the of confident oversight our Committee together in Directors, excited Accounting team

the G&A, we mindful markets. it itself Loci general to that approximately order but that while the efficient mindset expenses, should preferred only we throughout things sustain and be frugal embrace spend substantially a administrative the how of grow, also associated reduced think we and $XX,XXX will REIT X%, legal opportunities period. also we're the excluding growth financial that returns highest in company the adjustments can our longest in be prudent the with connection runs look our I in to on This equity and over period shareholder investment mentioned as down of by made by our company, model in through provide not more Modiv with costs us capital for lean transaction

of to common Lastly, as those order shareholders vote the company's stock the the in preferred quarter of a NASDAQ approved. the shareholders the special last shares shares XX% voting week for with for and the in to a meeting over proposal, are proposal event on and requirements with subsequent to report was of third held XXXX, of we issued to we to Modiv that voting issuance XX% pleased shareholders of redeem accordance Industrial,

that met redeem This of approval preferred Modiv issued in of must to conditions one is as previously Series Industrial was order stock the portfolio part A mentioned to be acquisition. two redeemable that company's part

We shares of obtain satisfy shares Modiv being investor for and a condition effectuate increase by the our increase second the the anticipate distribution public SEC The common shareholders. and redemption to condition would to GIPR's those the able XXX%. second to float GIPR to base is approximately registration statement such required This with of ultimate for shares. effectiveness

put I third net quarter. acquisitions confident is prudent take our in positioned Before very the choices what that our be over to very a to REIT, the for us ordinarily turn the like where the strong, I'd reputation position we're for be above REIT well capitalize to GIPRs capital prodigious would things best well markets to through our the opportunity, believe lease provide ourselves in us tell and We've buying opportunities. industry Allison timing update a financial a lease and relationships, to the advantage a reenter and promises shareholders acquisitions be net for and will of our is be. to market we communication grow following to within high-growth manner. small When a on in our of we to our pipeline to on company

With that, I'm pleased CFO, GIPR her Davies, final for Allison update. to present

Allison Davies

million we in portfolio. the financial increase Operating due the from expense income primarily revenue million acquired by increase a for from amortization compared as portfolio. the rental from was announcing quarter the release primarily results $X.X the operations year, to assets year, Modiv $X.X an and in the the press for addition $X night, same prior our Last expense to in to Modiv issued million Total million, David. the a last increase to depreciation compared an and you, quarter. Thank of expenses $X.X driven operating from were interest financing period in

last estate compared expenses, of portfolio. during million expense in and a for market as of last the for deferred for partners. that was income from by $XXX,XXX real $XX,XXX the common noncash financing income which balance noncash to attributable $XXX,XXX the to compared by believe same year, prior loss is continue was of as the our $X.X specific to to income condition quarter operating related related an $X.X driven core sheet stockholders of to and the $X.X year, is Net interest was we're to year, for equity year as interest preferred good the same write-off acquisition last million primarily the After non-controlling experiencing. increase directly our costs. We primarily of offset in commercial income in Modiv AFFO period discussed adjusting to to new to withstand the uncertainty compared loss period income attributable the adjustment rental million to previously Net

part a a to gratitude you GIPR would my this XXXX. our and company before leave, I the maturity, express Board opportunity to We for cash mortgage be Directors. too healthy finally, next balance the is of Thank And until in have of amazing team. and I

I'm at you, forward my I looking always chapter, to my appreciate will Dave. Properties. next Thank While Income time Generation

David Sobelman

for Thank With open the you, Allison. call questions. that, please

Operator

[Operator Michael Instructions] Our Maxim first Diana from comes with Group. question

Michael Diana

pipeline So looking Dave, always some the very like lot a mentioned Could I indication give the you was on you how that strong. at? know going there's us And many properties you're that scenes. just behind

David Sobelman

right. properties. to or roughly July some how our have you're looking was in of that we $X.X about through Michael, context 'XX, January and investment about you committee of acquisitions assets, -- XXX we of I'll XXXX Yes, at August from looked give at billion been of

that And thesis. Of we're that right telling offers inventory investment the right to bought access therein properties lease tremendous terms out time. purchase those of looked show net XXX about our to price we properties, have want sent that a with come sellers nothing fit because potential inventory so that patients worth. we or properties that to the at our $XXX lies to over period, couldn't And those we because we you of at assets at million we on the we

timing properties Modiv of we And where can well that. and like right is price company are to number and really right right when -- above was well we right assets, in the be the at pipeline And time. properties right extremely now terms of robust, we our execute the the of continues for portfolio so feel a at as

Michael Diana

comment also And -- that? you if Okay. dividend. redeem The any, if of dividend change Could coverage stock? on you preferred -- the the for that how would common

David Sobelman

primary coverage, assets you adding One going of really We're each is is X at other factors is correlate us the coverage us. that And those are specifically together. for dividend looking to main priorities with other. like all forward. Yes, mentioned, importance

adding continue have dividend you, the higher coverage. to So XXX% we can allow need us order transaction to tell Modiv that assets coverage. though, to in did to I trend XXX%

reiterate to And us. cover will just really confident point this us allow to additional in to So we're utmost the importance that that future. of acquisitions is

Michael Diana

the for common? Okay. And what would preferred the redeeming be of impact

David Sobelman

stated we -- coverage. how stated prime our as was dividend preferred Yes, transaction that sorry, the -- we -- example the I'm portfolio like a remarks meaningfully we in Modiv grow redeeming like base, the we of grow to are

And so kind it have in XXX%. to after the potential prove will of it also, increase And will to of an float preferred. XX% allowed ourselves be us a that of redemption we the about reduction

Operator

This now turn today's I Mr. call. will the concludes back the Q&A of to portion over call

Sobelman for final comments.

David Sobelman

Thanks, everyone. We into have you week. a and listening Earnings Call, GIPR's appreciate great

Operator

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

Generation Income Properties (GIPR) 14 Nov 232023 Q3 Earnings call transcript