GIPR News & Events

Resurgent Realty Trust, a shareholder of Generation Income Properties, issued a position statement regarding the "continued mismanagement of GIPR and failure of its board of directors to fulfill their fiduciary duty." The firm said: "Borrowing $1.1M for 'general corporate purposes,' which is really G&A and not investments, principal curtailments or a share repurchase program is operating with a complete disregard for fiscal responsibility to and on behalf of the shareholders. David Sobelman as CEO & the entire board are operating 'reckless abound' with no understanding of the basic corporate tenet and fiduciary duty as stewards of a publicly traded company. Whether now via the Special Committee or at the next Shareholders Annual Meeting this fall, all this malfeasance will be stopped. Since their IPO in Sept 2021, GIPR has never been profitable in 3.9 years and will not be profitable under the current leadership that has decimated this REIT. These types of actions are not forgivable, and the shareholders have spoken loud and clear as evidenced by the stock price destruction from $10 to $1.40. Management needs to be fired, and the board reconstituted to stabilize this wayward and sinking ship. This is a profoundly serious matter and should be treated as such. Millions have been lost in the hands of David Sobelman as CEO."

Resurgent Realty Trust, a shareholder of Generation Income Properties, announced the withdrawal of its prior offers to purchase GIPR shares at $2.50, $2.75 and $3.00 due to the negative impact of GIPR's recent asset sales on its NAV along with the continued erosion of GIPR's share price. The current offer represents a discount of approximately 15% to Resurgent's estimated NAV for GIPR of $1.70. Resurgent also reiterated its intention to pursue all legal remedies to maximize the value of its investment in GIPR, including a formally requested non-disclosure agreement and proxy questionnaire from GIPR pursuant to Resurgent's intent to nominate an alternate slate of directors for election at the company's next annual meeting.

David Sobelman, CEO of Generation Income Properties, said, "In order to continue to evaluate the multitude of options for the future direction of the company, the independent board of directors recently formed of a committee to evaluate potential strategic alternatives for Generation Income Properties, and I want to provide additional context and clarity to this effort. This step is part of a thoughtful and deliberate process-not an indication of a predetermined outcome. Rather, it reflects the increased inbound interest we've received from a range of parties, some with proven credibility and others less so. Our goal is to ensure a comprehensive, disciplined review of all credible opportunities that may enhance shareholder value."

Resurgent Realty Trust, a shareholder of Generation Income Properties, issued an open letter requesting the Board of Directors fulfill its fiduciary duty by engaging with RRT to discuss the non-binding term sheet RRT submitted to GIPR's Board of Directors on January 30, 2025. "As a shareholder of GIPR, RRT continues to believe significant, unrealized value exists and has continued to make efforts to establish a constructive dialogue with GIPR management and Board. RRT is proposing to acquire majority ownership of GIPR, thereby allowing it to effect a change in Board composition, senior management and the Company's strategic direction," RRT said in a statement.