Generation Income Properties, Inc. Completes $11.2 Million UPREIT Transaction, Highlighting Commitment to Long-Term Value Creation
Generation Income Properties (GIPR) has completed an $11.2 million UPREIT transaction involving three high-quality retail properties. The portfolio includes properties leased to Tractor Supply , Dollar General, and Zaxby's restaurant. The contributor received operating partnership units valued at $6.00 per unit.
The transaction enhances GIPR's portfolio by increasing the weighted average lease term to 4.7 years and raising the gross asset value to approximately $115MM. The deal also increases GIPR's retail properties percentage to 65%. The transaction was structured as a tax-deferred UPREIT contribution, reflecting a strategic approach focused on long-term value creation.
Generation Income Properties (GIPR) ha completato una transazione UPREIT del valore di 11,2 milioni di dollari che coinvolge tre proprietà commerciali di alta qualità. Il portafoglio comprende immobili affittati a Tractor Supply, Dollar General e il ristorante Zaxby's. Il contribuente ha ricevuto unità di partnership operative valutate a 6,00 dollari per unità.
La transazione migliora il portafoglio di GIPR aumentando la durata media ponderata del contratto di locazione a 4,7 anni e aumentando il valore lordo degli attivi a circa 115 milioni di dollari. L'accordo incrementa anche la percentuale di proprietà commerciali di GIPR al 65%. La transazione è stata strutturata come un contributo UPREIT con rinvio fiscale, riflettendo un approccio strategico focalizzato sulla creazione di valore a lungo termine.
Generation Income Properties (GIPR) ha completado una transacción UPREIT valorada en 11.2 millones de dólares que involucra tres propiedades minoristas de alta calidad. La cartera incluye propiedades alquiladas a Tractor Supply, Dollar General y el restaurante Zaxby's. El contribuyente recibió unidades de asociación operativa valoradas en 6.00 dólares por unidad.
La transacción mejora la cartera de GIPR al aumentar el plazo medio ponderado del arrendamiento a 4.7 años y elevar el valor bruto de los activos a aproximadamente 115 millones de dólares. El acuerdo también incrementa el porcentaje de propiedades comerciales de GIPR al 65%. La transacción se estructuró como una contribución UPREIT con diferimiento fiscal, reflejando un enfoque estratégico centrado en la creación de valor a largo plazo.
Generation Income Properties (GIPR)는 1,120만 달러 규모의 UPREIT 거래를 완료하였으며, 이 거래는 세 가지 고품질 소매 부동산이 포함됩니다. 포트폴리오에는 Tractor Supply, Dollar General, 및 Zaxby's 레스토랑이 임대된 부동산이 포함되어 있습니다. 기여자는 유닛당 6.00달러로 평가된 운영 파트너십 유닛을 받았습니다.
이 거래는 GIPR의 포트폴리오를 강화하여 가중 평균 임대 기간을 4.7년으로 늘리고, 총 자산 가치를 약 1억 1,500만 달러로 증가시킵니다. 또한 이 거래는 GIPR의 소매 부동산 비율을 65%로 증가시킵니다. 이 거래는 세금이 이연되는 UPREIT 기여로 구조화되어, 장기 가치 창출에 초점을 맞춘 전략적 접근을 반영합니다.
Generation Income Properties (GIPR) a complété une transaction UPREIT de 11,2 millions de dollars concernant trois propriétés commerciales de haute qualité. Le portefeuille comprend des propriétés louées à Tractor Supply, Dollar General et le restaurant Zaxby's. Le contributeur a reçu des unités de partenariat opérationnel évaluées à 6,00 dollars par unité.
La transaction renforce le portefeuille de GIPR en augmentant la durée moyenne pondérée des baux à 4,7 ans et en portant la valeur brute des actifs à environ 115 millions de dollars. Cet accord augmente également le pourcentage de propriétés commerciales de GIPR à 65%. La transaction a été structurée comme une contribution UPREIT à imposition différée, reflétant une approche stratégique axée sur la création de valeur à long terme.
Generation Income Properties (GIPR) hat eine UPREIT-Transaktion im Wert von 11,2 Millionen Dollar abgeschlossen, die drei hochwertige Einzelhandelsimmobilien umfasst. Das Portfolio enthält Immobilien, die an Tractor Supply, Dollar General und das Restaurant Zaxby's vermietet sind. Der Beitragszahler erhielt Betriebsbeteiligungseinheiten im Wert von 6,00 Dollar pro Einheit.
Die Transaktion verbessert das Portfolio von GIPR, indem die gewichtete durchschnittliche Mietlaufzeit auf 4,7 Jahre erhöht und der Bruttowert der Vermögenswerte auf etwa 115 Millionen Dollar angehoben wird. Der Deal erhöht auch den Prozentsatz der Einzelhandelsimmobilien von GIPR auf 65%. Die Transaktion wurde als steuerlich begünstigter UPREIT-Beitrag strukturiert, was einen strategischen Ansatz zur langfristigen Wertschöpfung widerspiegelt.
- Completed $11.2M UPREIT transaction adding three high-quality retail properties
- Portfolio gross asset value increased to $115MM
- Weighted average lease term (WALT) improved to 4.7 years
- Retail property portfolio percentage increased to 65%
- Properties leased to investment-grade tenants (Tractor Supply - BBB, Dollar General - BBB)
- Operating partnership units issued at $6.00, representing potential dilution for existing shareholders
Insights
This $11.2M UPREIT transaction represents a significant strategic milestone for Generation Income Properties, demonstrating sophisticated deal-making capabilities and strong value proposition. The deal structure, where properties are contributed in exchange for operating partnership units at $6.00 per unit - representing a substantial 245% premium to the current market price - reveals strong insider confidence in GIPR's intrinsic value.
The transaction's structure as an UPREIT (Umbrella Partnership Real Estate Investment Trust) offers tax advantages for the contributor while allowing GIPR to acquire properties without immediate cash outlay. This tax-efficient approach is particularly valuable in the current high-interest-rate environment, enabling growth without increasing leverage.
The acquired portfolio strengthens GIPR's tenant quality with investment-grade retailers. Tractor Supply (BBB rated) and Dollar General (BBB rated) are defensive retailers known for consistent performance through economic cycles. The extension of the weighted average lease term to 4.7 years enhances income stability, while the increased retail concentration to 65% provides greater exposure to consumer-defensive sectors.
The increase in gross asset value to $115MM achieves important scale benefits, potentially improving operating efficiency and capital market access. The substantial premium paid in operating units suggests significant embedded value in GIPR's portfolio and platform, which could catalyze value realization as the company executes its growth strategy.
TAMPA, FLORIDA / ACCESS Newswire / February 10, 2025 / Generation Income Properties, Inc. (Nasdaq;GIPR or the Company), a net lease real estate investment trust (REIT), today announced the completion of a three property UPREIT contribution transaction underscoring GIPR's dedication to long-term investment strategies and value creation for its stakeholders.
Under the terms of the contribution agreement for the transaction, the contributor contributed a portfolio of three (3) high-quality retail properties leased to Tractor Supply Corporation (Nasdaq: TSCO, S&P: BBB), Dollar General (NYSE: DG, S&P: BBB), and a Zaxby's restaurant, all located in core markets to support their operations, to GIPR's operating partnership. In exchange, the Contributor received operating partnership units based on a value of
A Strategic Approach to Growth
David Sobelman, CEO of Generation Income Properties, Inc. commented: "I have known the contributor of these properties for over twenty years, and this transaction represents a pivotal moment in our growth strategy as well as affirmation of our relational and long-term generational values. By structuring the transaction as a tax-deferred UPREIT contribution transaction and focusing on long-term value creation, we've attracted a sophisticated partner who shares our vision. We believe that the substantial premium to our current stock price underscores their confidence in the strength of our portfolio and strategy."
The assets contributed by LMB are expected to enhance GIPR's portfolio through, increasing the weighted average lease term (WALT) of the portfolio to 4.7 years, increasing the gross asset value of the portfolio to approximately
About Generation Income Properties
Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate investment trust formed to acquire and own, directly and jointly, real estate investments focused on retail, office and industrial net lease properties located primarily in densely populated submarkets throughout the United States. Additional information about Generation Income Properties, Inc. can be found on the Company's corporate website: www.gipreit.com.
Forward-Looking Statements:
This press release, whether or not expressly stated, may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. The words "believe," "intend," "expect," "plan," "should," "will," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These statements reflect the Company's expectations regarding future events and economic performance and are forward-looking in nature and, accordingly, are subject to risks and uncertainties. Such forward-looking statements include risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements which are, in some cases, beyond the Company's control and which could have a material adverse effect on the Company's business, financial condition, and results of operations. These risks and uncertainties include the risk that that the expected benefits of the above-described portfolio acquisition will not be realized or will not be realized within the expected time periods, as well as risks relating to general economic conditions, market conditions, interest rates, and other risks and uncertainties that are identified from time to in the Company's SEC filings which are available at www.sec.gov. The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company's business, financial condition, and results of operations. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statement made by us herein speaks only as of the date on which it is made. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof, except as may be required by law.
Contact Information
Investor Relations
ir@gipreit.com
813-448-1234
SOURCE: Generation Income Properties
View the original press release on ACCESS Newswire
FAQ
What is the value of GIPR's recent UPREIT transaction in February 2025?
Which major retail tenants are included in GIPR's new property acquisitions?
What is GIPR's new portfolio gross asset value after the February 2025 transaction?
What is GIPR's new weighted average lease term (WALT) after the recent acquisition?
What percentage of GIPR's portfolio is now comprised of retail properties?
