Financial Analysis

"Note 9 Debt The Company had the following mortgage loans outstanding as of December 31, 2025 and December 31, 2024, respectively: Occupying Tenant Property Location Original Loan Amount Interest Rate at 12/31/2025 Maturity Date Balance at 12/31/2025 Balance at 12/31/2024 Debt Service Coverage Ratios (""DSCR"") Required 7-Eleven Corporation Washington, D.C. $ 750,000 (f) 6.50 % 6/13/2030 $ 1,100,000 $ - 1.50 7-Eleven Corporation, Starbucks Corporation & Auburn University Washington, D.C., Tampa, FL, and Huntsville, AL 11,287,500 (a) 4.17 % 3/6/2030 - 10,602,711 1.25 General Services Administration-Navy & AYMCA Norfolk, VA 8,260,000 6.15 % 8/30/2029 6,926,665 7,119,184 1.25 PRA Holdings, Inc. Norfolk, VA 5,216,749 6.15 % 8/23/2029 4,291,659 4,410,949 1.25 Sherwin Williams Company Tampa, FL 1,286,664 3.72 % (b) 8/10/2028 1,222,259 1,255,068 1.20 General Services Administration-FBI Manteo, NC 928,728 (c) 3.85 % (d) 3/31/2032 866,868 891,071 1.50 Irby Construction Plant City , FL 928,728 (c) 3.85 % (d) 3/31/2032 - 891,071 1.50 La-Z-Boy Inc. Rockford, IL 2,100,000 3.85 % (d) 3/31/2032 1,960,814 2,014,851 1.50 Best Buy Co., Inc. Grand Junction, CO 2,552,644 (c) 3.85 % (d) 3/31/2032 - 2,449,141 1.50 Fresenius Medical Care Holdings, Inc. Chicago, IL 1,727,108 (c) 3.85 % (d) 3/31/2032 1,612,010 1,657,079 1.50 Starbucks Corporation Tampa, FL 1,298,047 (c) 3.85 % (d) 3/31/2032 1,211,508 1,245,414 1.50 Kohl's Corporation Tucson, AZ 3,964,745 (c) 3.85 % (d) 3/31/2032 3,700,494 3,8 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table provides a disaggregation of lease income recognized as either fixed or variable lease income: 2025 2024 Rental income Fixed and in-substance fixed lease income 8,769,808 8,086,951 Variable lease income 1,035,480 1,715,047 Other related lease income, net: Amortization of above- and below-market leases, net ( 172,500 ) ( 263,442 ) Straight line rent, net 66,203 ( 27,765 ) Total Rental income 9,698,991 9,510,791 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 8 Leases Lessor Accounting All of the Company's leases of real estate are classified as operating leases. The Company's Rental income is comprised of both fixed and variable income. Fixed and in-substance fixed lease income includes stated amounts per the lease contract, which are primarily related to base rent. The Companys leases also provide for reimbursement from tenants for common area maintenance (CAM), insurance, real estate taxes and other operating expenses (Recoverable Costs). A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. Income for these amounts is recognized on a straight-line basis. Variable lease income includes the tenants' contractual obligations to reimburse the Company for their portion of Recoverable Costs incurred. The following table provides a disaggregation of lease income recognized as either fixed or variable lease income: 2025 2024 Rental income Fixed and in-substance fixed lease income 8,769,808 8,086,951 Variable lease income 1,035,480 1,715,047 Other related lease income, net: Amortization of above- and below-market leases, net ( 172,500 ) ( 263,442 ) Straight line rent, net 66,203 ( 27,765 ) Total Rental income 9,698,991 9,510,791 For the twelve months ended December 31, 2025 and 2024, we had five tenants and five tenants, respectively, that each account for more than 10% of our annual rental revenue as indicated …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Note 10 Related Party Transactions GIP Fund 1 Acquisition 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. 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 Companys ownership to 0.05 % as of December 31, 2025. Brown Family Loan As disclosed previously, on October 14, 2022, the Company entered into a loan transaction that is evidenced by a secured non-convertible promissory note to Brown Family Enterprises, LLC, a preferred equity partner and therefore a related party, for $ 1,500,000 with a maturity of October 14, 2024, and bearing a fixed interest rate of 9 % with simple interest payable monthly. The loan may be repaid without penalty at any time. The loan is secured by the Operating Partnerships equity interest in its current direct subsidiaries that hold real estate assets pursuant to the terms of a security agreement between the Operating Partnership and Brown Family Enterprises, LLC. On July 21, 2023, the Company amended and restated the promissory note to reflect an increase in the loan to $ 5.5 million and extend the maturity date thereof from October 14, 2024 to October 14, 2026. Ex …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 2 Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (""U.S. GAAP""). 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 Companys 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 financial 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, only the Companys share of the earnings (or losses) of these entities are included in consolidated net income or loss. Use of Estimates The preparation of financial statements in con …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 7 Equity Authorized Equity The Company is authorized to issue up to 100,000,000 shares of common stock and 10,000,000 shares of preferred stock of which 2,400,000 were designated as Series A Preferred Stock. Holders of the Companys common stock are entitled to receive dividends when authorized by the Companys Board of Directors. In January 2024, the Company redeemed all 2,400,000 shares of its Series A Preferred Stock from its preferred shareholders, Modiv and their affiliates, and exchanged them for 2,794,597 shares of common stock. Issuance of Equity Securities for Cash 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 Companys 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. In January 2024, the Company declared and paid final preferred stock dividends of $ 95,000 to holders of its Series A Preferred Stock shares. In January 2024, the Company also paid another $ 95,000 dividend on the Series A Preferred Stock declared in December 2023 and accrued as of December 31, 2023. On June 27, 2024, …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 Subsequent Events The Company evaluated subsequent events through the date the consolidated financial statements were issued. Nasdaq Delisting Notice On January 28, 2026, the Company received notice from The Nasdaq Stock Market LLC (Nasdaq) indicating that the closing bid price of the Companys common stock had been below $ 1.00 per share for 35 consecutive business days and that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2), the minimum bid price requirement for continued listing on The Nasdaq. The Company was provided a 180-calendar day compliance period, or until July 6, 2026, to regain compliance. If the Company does not regain compliance during the initial compliance period, it may be eligible for an additional compliance period subject to meeting certain listing requirements. There can be no assurance that the Company will regain compliance with the minimum bid price requirement. On February 5, 2026, the Company received notice from the staff of Nasdaq that its request for continued listing on The Nasdaq had been denied due to the Companys failure to meet the minimum stockholders equity requirement under Nasdaq Listing Rule 5550(b)(1). The Company intends to request a hearing before the Nasdaq Hearings Panel, which is expected to stay any suspension of trading pending the outcome of the hearing process. There can be no assurance that the Company will be successful in its appeal or regain compliance with the applicable Nasdaq listing requir …

SubsequentEventsTextBlock · excerpt; the full note is in the filing