What’s in a name
In his 3Q2024 earnings release remarks, Generation Income Properties (NASDAQ: GIPR) CEO David Sobelman described differing investor preferences driving challenges in the company’s stock price:
It’s clear that many of our shareholders view their investment primarily for the monthly dividend and the regular income it provides, rather than the intrinsic value of our growing assets. I understand this perspective, especially given that "income" is part of our company name.
The company suspended its dividend in early July and the stock has responded with a 54% decline. Despite holding back dividends from shareholders, GIPR found enough change in the couch cushions to acquire a net leased Best Buy in August for a gross price of $5.5 million (with help from a $2.5 million mortgage). Perhaps a name change to Generational Intrinsic Properties would help?
Success inflation
According to a survey conducted by financial services firm Empower, the American view of ‘financial success’ seems to be inflating faster than even 2022 CPI. Whereas Boomers appear happy owning one low-rent, net leased quick service restaurant to feel successful, Gen Z has their expectations set on a portfolio! Check out this Tuesday’s Issue 12 of the Net Lease Observer for more analysis on inflation’s impact to net lease investments!
Cheers,
Sean Hostert