Executive Summary

Q1 2024 showed continued top-line growth from the Modiv portfolio integration (revenue $2.43M, +$1.10M YoY), but higher depreciation and interest kept GAAP EPS negative at $(0.67); Core AFFO was positive ($0.24M) after non‑GAAP adjustments .
Sequentially, revenue fell from Q4’s seasonally stronger $3.12M as expected for a small REIT, and EPS improved vs Q4’s $(0.86) but remained a loss; Core FFO turned negative in Q1 after being positive in Q4 due to lower revenue and persistent interest/D&A .
Liquidity remained tight ($1.66M cash) with two 2024 loan maturities and a Bayport DSCR breach at a Norfolk property (technical default) mitigated by a new 10‑year lease starting May 1, 2024; management disclosed “substantial doubt” about going concern absent successful refinancing .
The company declared and paid monthly dividends of $0.039/share for April and authorized May (paid end of May), but provided no formal 2024 financial guidance; Q1 did not include a separate 8‑K 2.02 or an earnings call transcript .
Consensus estimates from S&P Global for Q1 2024 were unavailable in our environment, so we cannot assess beats/misses vs Street; we anchor comparisons to prior periods instead (S&P Global consensus unavailable).

What Went Well and What Went Wrong

What Went Well

Portfolio stability with high-quality tenancy: 65% of ABR investment grade; 93% leased/occupied; 92% of leases with contractual rent escalators; ABR per square foot $14.75 .
Positive Core AFFO in Q1 ($0.24M) after adjustments, despite GAAP losses, indicating underlying cash earnings support when stripping non‑cash/one‑time items .
Executed a 10‑year lease at Norfolk (ASYMCA) commencing May 1, 2024, restoring full occupancy at a property tied to a DSCR breach; management notes this should help covenant compliance going forward .

What Went Wrong

GAAP loss persisted: net loss attributable to common shareholders $(2.92)M; EPS $(0.67), driven by higher interest expense and depreciation post-Modiv acquisition and a $1.06M held‑for‑sale impairment in Q1 .
Liquidity and refinancing risk elevated: cash $1.66M; two secured loans ($7.28M and $4.52M principal) maturing in September/October 2024; “substantial doubt” language around going concern if refinancing is unsuccessful .
Technical DSCR default at the 2510 Walmer Ave (Norfolk) project (1.17x vs 1.25x required) increased covenant pressure and reliance on lender accommodation .

Financial Results

GAAP and Non‑GAAP Results (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($)	$1,844,148	$3,122,535	$2,433,173
Net Loss Attributable to Common ($)	$(1,828,901)	$(2,164,331)	$(2,920,220)
Basic & Diluted EPS ($)	$(0.70)	$(0.86)	$(0.67)
Funds From Operations (FFO) ($)	$(231,207)	$557,931	$(1,033,041)
Core FFO ($)	$(65,567)	$695,621	$(890,326)
Adjusted FFO (AFFO) ($)	$(143,607)	$682,959	$(912,711)
Core AFFO ($)	$(24,227)	$777,894	$241,218

Key drivers and deltas

YoY growth: Q1 revenue +$1.10M YoY on Modiv portfolio integration; operating expenses +$1.60M on higher D&A and interest .
Q1 special items: $1.06M held-for-sale impairment (Huntsville, AL) and $380.6K favorable derivative valuation .

KPIs and Balance Sheet (Q1 2024 snapshot)

KPI	Q1 2024
Properties Owned	26
Occupancy (% leased/occupied)	93%
Investment Grade (% ABR)	~65%
ABR per Sq Ft	$14.75
Cash & Cash Equivalents	$1,655,820
Mortgage Loans, net	$56,545,312
DSCR Breach	2510 Walmer Ave project-level DSCR 1.17x vs 1.25x req.
New 10-yr Lease (Norfolk)	Executed; rent commenced May 1, 2024

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (Revenue, EPS/FFO)	2024	None	None	Maintained “no guidance” stance
Monthly Dividend	April 2024	$0.039/share	Declared and paid May 1, 2024	Maintained
Monthly Dividend	May 2024	$0.039/share	Authorized; anticipated end‑May payment	Maintained

Note: No separate Q1‑specific 8‑K 2.02 guidance release was filed; Q1 details are from the 10‑Q -.

Earnings Call Themes & Trends

(Company did not post a Q1 2024 earnings call transcript; themes reflect Q3 2023 call, Q4 2023 letter, and Q1 2024 10‑Q.)

Topic	Q3 2023 (Call)	Q4 2023 (Letter/8‑K)	Q1 2024 (10‑Q)	Trend
External growth / Modiv portfolio	Closed $42M, 13‑asset Modiv deal; doubled assets; patient on acquisitions	Emphasized doubling size and liquidity benefits; focus on disciplined growth	Modiv integration drove revenue; no new acquisitions; market still tight	Stabilize post‑deal; selective pipeline
Occupancy / Leasing	Occupancy 96%; pipeline robust	Early lease extensions; PRA retained; ASYMCA lease signed for Norfolk	Portfolio 93% leased; new 10‑yr ASYMCA lease starts May 1, 2024	Near‑term occupancy support
Liquidity / Debt maturities	Next mortgage maturity in 2024; balance sheet framed as durable	Not specifically quantified in letter	Two 2024 maturities; “substantial doubt” without refinancings; DSCR breach at one asset	Heightened near‑term risk
Dividend coverage / policy	Need more assets to fully cover dividend; trending better post‑Modiv	N/A	Declared Apr/May dividends; no broader guidance	Maintain but under review
Tenant quality / IG exposure	68% IG ABR	Continued focus on investment‑grade tenants	~65% IG ABR; tenants 100% rent‑paying	Resilient tenant base

Management Commentary

“During the three months ended March 31, 2024, total revenue from operations was 2,433,173 as compared to $1,337,039… driven by the integration of the acquired 13 property portfolio from Modiv.”
“As a result of our recurring losses, our projected cash needs, and our current liquidity, substantial doubt exists about the Company’s ability to continue as a going concern one year after the date that these financial statements are issued.”
On strategy and scale: “We essentially doubled our size… as a result of the transaction with Modiv, including… number of properties, and net operating income… our trading volume drastically increased…”
On market dynamics: “Cap rates are going up. Yields are getting higher… far fewer buyers to purchase a net lease property than there were over the last decade…”

Q&A Highlights

(From the most recent available call, Q3 2023)

Acquisition pipeline and discipline: Reviewed ~~300 properties (~~$2.3B) since 2022; offered ~$140M; bought none until Modiv due to pricing discipline .
Dividend coverage: Coverage a top priority alongside adding assets; Modiv improved trajectory toward 100% coverage .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue could not be retrieved in our environment, so we cannot assess beats/misses vs Street (S&P Global consensus unavailable).

Key Takeaways for Investors

Q1 shows continued Modiv-driven revenue lift, but GAAP losses persist from higher interest and D&A; positive Core AFFO indicates underlying cash earnings after adjustments .
Near-term risk skew: refinancing two 2024 maturities and resolving a DSCR breach (mitigated by a new 10‑year lease) are the critical watch items; management flagged going-concern risk without successful refinancing .
Tenant quality and lease structures (65% IG ABR; 92% with escalators) support stability; occupancy actions (ASYMCA) should aid credit metrics through 2024 .
Sequential softness vs Q4 is unsurprising for a small REIT; focus should be on covenant compliance, asset sales/held‑for‑sale execution, and interest expense trajectory .
With no formal guidance and limited liquidity, capital allocation remains conservative; dividend maintained in April/May, but sustainability hinges on refinancing progress and cash generation .
Absent Street estimates, the near-term stock narrative will likely be driven by refinancing outcomes, leasing updates, and any asset monetizations to de‑risk the balance sheet .

Appendix: Documents Reviewed

Q1 2024 Form 10‑Q (filed May 20, 2024) – comprehensive quarterly financials and MD&A -.
Q4 2023 8‑K press release (filed April 9, 2024) – annual and Q4 context, management letter -.
Q2 2024 8‑K press release (filed August 15, 2024) – for trend context (post‑Q1) -.
Q3 2023 8‑K press release and earnings call transcript – prior quarter baseline and qualitative themes - -.

Notes:

We did not find a standalone 8‑K 2.02 press release or an earnings call transcript for Q1 2024; Q1 analysis relies on the Form 10‑Q and other recent disclosures -.
Consensus estimates from S&P Global could not be retrieved for Q1 2024 (S&P Global consensus unavailable).

GENERATION INCOME PROPERTIES, INC. (GIPR)·Q1 2024 Earnings Summary