Company: GIPRW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046959
Chunk: 125

Company: GENERATION INCOME PROPERTIES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 125
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          $
          48,445,463

         Lessee Accounting  The Company acquired one property on March 9, 2022 that is subject to a non-cancelable, long-term ground lease where a third party owns the underlying land and has leased the land to the Company. Accordingly, the Company owns only a long-term leasehold in this property. This ground lease expires in 2084 including those options the Company deems probable of exercising. The ground lease expense is recognized on a straight-line basis over the term of the lease, including management's estimate of expected option renewal periods. Operating lease expense was $375,047 for the twelve months ended for both December 31, 2024 and 2023, respectively. There are no variable lease expenses required to be paid by the Company as lessee per the lease terms. Cash paid for amounts included in the measurement of the Lease liability, net was $244,077 and $232,701 for the twelve months ended December 31, 2024 and 2023, respectively. The following table summarizes the undiscounted future cash flows for subsequent years ending December 31 attributable to the lease liability as December 31, 2024 and provides a reconciliation to the lease liability included in the accompanying Consolidated Balance Sheets as of December 31, 2024.  

 75

          As of December 31,

          2024

          2025
           
          245,111

          2026
           
          245,111

          2027
           
          245,111

          2028
           
          245,111

          2029
           
          257,839

          Thereafter
           
          21,317,694

          Total undiscounted liability
          $
          22,555,977

          Present value discount
           
          (16,091,335
          )

          Lease liability
          $
          6,464,642

          Discount rate
           
          4.58
          %

          Term Remaining
          59 years

 76

Note 9 – DebtThe Company had the following mortgage loans outstanding as of  December 31, 2024 and December 31, 2023, respectively:

          Occupying Tenant
           
          Location
          Original Loan Amount

          Interest Rate
           
          Maturity Date
          12/31/202