Company: GIPRW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046959
Chunk: 102

Company: GENERATION INCOME PROPERTIES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 102
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 intangible assets and liabilities based upon their relative fair values at the date of acquisition. Real Estate Held for Sale Management evaluates portfolio assets periodically for market alignment and value contribution. Assets identified for disposition are accounted as held for sale when certain criteria have been met, and management believes it is probable that the disposition will occur within one year. Properties are held for sale for a period longer than one year if events or circumstances out of the Company’s control occur that delay the sale and while management continues to be committed to the plan of sale and is performing actions necessary to respond to the conditions causing the delay the properties held for sale remain salable in their current condition. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value, less cost to sell, and depreciation and amortization are no longer recognized. Held for sale properties are evaluated quarterly to ensure that properties continue to meet the held for sale criteria. If properties are required to be reclassified from held for sale to held for use due to changes to a plan of sale, they are recorded at the lower of fair value or the carrying amount before the property was classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale.  Properties that do not meet the held for sale criteria are accounted for as operating properties. As of December 31, 2024, the property at 15091 SW Alabama 20, LLC is recorded as held for sale and is expected to be divested during the second quarter of 2025. The aforementioned property had previously been recorded as held for sale under a PSA with a different buyer at a sales price of $6.15 million, which resulted in a $1.1 million impairment loss in the quarter ended March 31, 2024. That sale was not consummated. Under the currently active PSA, the sale price of $7.2 million, would allow for the recapture of approximately $1 million of the previously recorded unrealized loss. Accordingly, the Company has adjusted the held for sale entry and has recorded a net unrealized loss of approximately $80,000 for the year ended December 31, 2024  Depreciation Expense  Real estate and related assets are stated net of accumulated depreciation. Renovations, replacements