Generation Income Properties restructures preferred units to meet Nasdaq equity rule

Generation Income Properties, Inc. (NASDAQ: GIPR) announced that its operating partnership subsidiary, Generation Income Properties, LP, has entered into definitive agreements with holders of its Series B-1 and Series B-2 Preferred Units to amend the terms of those securities.

Under the amended terms, certain holder-controlled cash redemption rights will be eliminated and replaced with the right to exchange the preferred units for shares of the company's common stock. The company said it believes these changes support permanent equity classification of the preferred units for financial reporting purposes, based on consultation with its professional advisors and independent auditor.

The company said it expects the transaction will allow it to meet Nasdaq's continued listing requirement of at least $2.5 million in stockholders' equity. Generation Income Properties said it will seek a compliance determination from Nasdaq following the transaction. The company had previously been granted an extension by Nasdaq until August 4, 2026, to demonstrate compliance with the stockholders' equity requirement.

"The agreements announced today represent further important steps in strengthening Generation Income Properties' capital structure and seeking to preserve our Nasdaq listing," said David Sobelman, Chief Executive Officer of GIPR.

Generation Income Properties is a Tampa, Florida-based internally managed real estate investment trust that acquires and owns retail, office, and industrial net lease properties.

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