Generation Income Properties, Inc. (NASDAQ: GIPR)

Sector: Real Estate Industry: REIT - Diversified CIK: 0001651721
Market Cap 3.30 Mn
P/B -0.84
P/E -0.32
P/S 0.33
ROIC (Qtr) -1.68
Div Yield % 0.00
Rev 1y % (Qtr) 2.91
Total Debt (Qtr) 68.71 Mn
Debt/Equity (Qtr) -17.50
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About

Generation Income Properties, Inc. (GIPR) operates in the real estate industry, focusing on the acquisition and management of income-producing retail, office, and industrial properties in major markets throughout the United States. The company's primary business activities involve acquiring and managing a diversified portfolio of single-tenant commercial properties, generating predictable cash flows and capital appreciation over market cycles. The company's revenue is primarily generated from the rental income of its properties, which are leased...

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Investment thesis

Bull case

  • Retained earnings of (33.26M) represent substantial 8.47x of equity (3.93M), indicating strong internal capital generation.
  • Operating cash flow of 654404 provides strong 14.52x coverage of operating expenses 45068, showing operational efficiency.
  • Free cash flow of 841973 provides solid 18.68x coverage of operating expenses 45068, showing operational efficiency.
  • Operating cash flow of 654404 exceeds receivables of 6144 by 106.51x, demonstrating excellent collection efficiency.
  • Free cash flow of 841973 fully covers payables of 740246 by 1.14x, indicating strong vendor payment capability.

Bear case

  • The company's operating cash flow of 654404 shows concerning coverage of stock compensation expenses of 353685, with a 1.85 ratio indicating potential earnings quality issues.
  • Free cash flow of 841973 provides weak coverage of capital expenditures of (187569), with a -4.49 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (4.70M) show weak coverage of depreciation charges of 3.65M, with a -1.29 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 841973 represents just -0.08x of debt issuance (10.52M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 3.65M relative to operating cash flow of 654404, which is 5.58x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the REIT - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VICI Vici Properties Inc. 30.39 Bn 11.76 8.24 16.76 Bn
2 WPC W. P. Carey Inc. 16.39 Bn 35.15 9.55 8.72 Bn
3 BNL Broadstone Net Lease, Inc. 2.77 Bn 40.51 8.39 2.34 Bn
4 SAFE Safehold Inc. 1.15 Bn 10.07 2.99 4.59 Bn
5 AAT American Assets Trust, Inc. 1.13 Bn 20.37 2.60 1.69 Bn
6 ESRT Empire State Realty Trust, Inc. 0.91 Bn 16.82 1.33 2.06 Bn
7 CTO CTO Realty Growth, Inc. 0.60 Bn 6,383.33 35.13 0.60 Bn
8 GNL Global Net Lease, Inc. 0.57 Bn 11.86 2.57 2.93 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.69 0.68
EV to Cash from Ops. EV/CFO 109.65 -30.44
EV to Debt EV to Debt 1.04 1.31
EV to EBIT EV/EBIT -15.26 52.23
EV to EBITDA EV/EBITDA 28.26 6.51
EV to Free Cash Flow [EV/FCF] EV/FCF 85.23 21.01
EV to Market Cap EV to Market Cap 21.77 6.71
EV to Revenue EV/Rev 7.21 9.65
Price to Book Value [P/B] P/B -0.84 0.98
Price to Earnings [P/E] P/E -0.32 385.22
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 90.61
Dividend per Basic Share Div per Share (Qtr) 0.00 1.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.65
Interest Coverage Int. cover (Qtr) -0.84 0.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 103.15 -246.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -82.18 49.26
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 2.40
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 18.32 -20.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.34 -2.00
EBIT Growth (1y) % EBIT 1y % (Qtr) 18.32 -20.80
EBT Growth (1y) % EBT 1y % (Qtr) -3.41 -13.26
EPS Growth (1y) % EPS 1y % (Qtr) 26.67 -38.39
FCF Growth (1y) % FCF 1y % (Qtr) 116.25 -62.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -24.05 -1.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.10 0.11
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.34
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) -17.50 0.82
Interest Cover Ratio Int Coverage (Qtr) -0.84 0.73
Times Interest Earned Times Interest Earned (Qtr) -0.84 0.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -10.50 38.58
EBIT Margin % EBIT Margin % (Qtr) -47.23 10.26
EBT Margin % EBT Margin % (Qtr) -103.22 -13.89
Gross Margin % Gross Margin % (Qtr) 10.60 59.91
Net Profit Margin % Net Margin % (Qtr) -103.20 -17.09