- Generation Income Properties (GIPR, Financial) sold two properties for $10.5 million, eliminating its CMBS loan.
- The company secured a $750,000 loan for its 7-Eleven property in Washington, DC.
- GIPR is exploring strategic alternatives, including potential mergers and recapitalizations.
Generation Income Properties, Inc. (NASDAQ:GIPR), a net lease REIT focusing on investment-grade single-tenant assets, has completed the sale of two properties in May 2025, generating proceeds of approximately $10.5 million. The properties sold include an Auburn University industrial building located in Huntsville, AL, and a Starbucks outlet in Tampa, FL, sold at cap rates of 4.06% and 5.82% respectively. The sales enabled the company to fully repay its CMBS loan, significantly optimizing its balance sheet.
Following these transactions, GIPR secured a new loan of approximately $750,000, representing 50% of the value of its 7-Eleven property in Washington, DC, through Valley National Bank. This strategic move provides the company with enhanced financial flexibility amid a challenging market environment.
GIPR has engaged Cantor Fitzgerald & Co. to evaluate a range of strategic alternatives, which could include mergers, recapitalizations, going private, joint ventures, or a company sale. This strategic review underscores GIPR's proactive approach in navigating the current REIT market conditions characterized by high interest rates and limited access to capital markets.
Despite external challenges, GIPR maintains a strong operational performance with a 100% rent collection rate and continues to seek recapitalization opportunities to strengthen its financial standing. The company's leadership remains focused on exploring all possible options to maximize shareholder value while facing the structural constraints of the small REIT sector.
