Company: GIPRW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0000950170-25-072868
Chunk: 7

Company: GENERATION INCOME PROPERTIES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 7
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 as operating properties. As of March 31, 2025, 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 

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the currently active PSA, the sale price of $7.2 million, allowed for the recapture of approximately $1 million of the previously recorded unrealized loss. In April 2025 the Company entered into a purchase and sale agreement to dispose of the property located at 1300 S. Dale Mabry Hwy., Tampa, FL for a contract price of $3.45 million. As of the reporting date, the Company is engaged in due diligence with the prospective buyer, and the transaction is anticipated to close in the next quarter.  As such, the Company has reclassified the asset to Held for sale assets on the consolidated balance sheet as of March 31, 2025 at the carrying value of approximately $3.1 million. No impairment loss was recognized as the carrying value of the asset did not exceed its fair value less costs to sell. Income Taxes The Company elected to be taxed as a real estate investment trust (“REIT”) under Section 856 through 860 of the Internal Revenue Code, commencing with our taxable year ending December 31, 2021. To continue to qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal corporate income tax on that portion of its taxable income that is currently distributed to stockholders. Accordingly, the only provision for federal income taxes in the accompanying consolidated financial statements relates to the Company's consolidated taxable REIT subsidiary of which no income was generated during the three months ended March 31, 2025 and 2024.The Company also recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related processes, if any. As of each balance sheet date, unrecognized benefits are reassessed and adjusted