Resurgent Realty Trust Issues Open Letter to Generation Income Properties, Inc. (“GIPR”)
In This Article:
Reiterates Prior Offer and Calls on Board of Directors to Engage in Good Faith Discussions
VIRGINIA BEACH, Va., May 05, 2025 (GLOBE NEWSWIRE) -- Resurgent Realty Trust (“RRT”), a shareholder of Generation Income Properties, Inc. (NASDAQ: GIPR) (“GIPR” or the “Company”), recently 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 (the “Board”) 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 of directors.
The full text of the open letter presented to GIPR is as follows:
Open Letter to Generation Income Properties, Inc. (NASDAQ: GIPR)
"You Can’t Ignore the Iceberg if You're Already on the Titanic"
May 4, 2025
To: Benjamin Adams, Gena Cheng, Stuart Eisenberg, and Patrick Quilty
Board of Directors – Generation Income Properties, Inc.
Dear Directors,
This is Jon Wheeler, Founder & former Chairman, CEO, & President, Wheeler Real Estate Investment Trust. I have been around the block. I have built, financed, restructured, and - yes - revived more than my share of companies. When I made three serious offers to you to explore a path forward for Generation Income Properties, Inc., I was not doing it out of curiosity. I saw a company in extreme distress. I saw value worth salvaging. And I thought my vast private and public real estate operational experiences could help you.
Based upon a personal invite from David Sobelman, I even got on a plane. I flew to Tampa to meet your CEO in good faith. But apparently, that was too much effort on his side—because your CEO rescheduled the dinner invite and location last minute earlier than when my flight was scheduled to arrive in Tampa making it impossible for me to meet with him. Needless to say, very disappointing.
Now, in any business, communication is critical. But when you're a publicly traded REIT, burning through cash, drowning in obligations, and approaching a redemption cliff, ghosting someone who comes bearing solutions is not just rude - it's negligent.
Facts You Can’t Ignore Anymore
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You have $6 million in redeemable preferred equity with LOCI Capital due on May 15. Yes, May 15, 2025 – that’s just 11 days away from the date of this letter. Miss that, and it turns into an 18.5% ticking time bomb, with LOCI gaining the right to install board members and sweep your cash.
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On April 25, you took a $1 million loan from Brown Family Enterprises, due in chunks on July 24 and October 22.
That money comes at a 16% interest rate, secured against the operating partnership. Yes - 16%. Not a typo. -
You just executed a UPREIT transaction with the Bernstein entities, issuing $4.2 million in Series B-2 Preferred OP Units and assuming $7 million in new property-level debt. Those partners most likely did not know what they just got into.
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Meanwhile, you have $613,000 in cash and a balance sheet with more layers than a wedding cake. Except this one is collapsing inward.