INVESTMENT IN PREFERRED STOCK

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investment in preferred stock as of September 30, 2024 and December 31, 2023 is as follows:


	Preferred Stock
	September 30, 2024		December 31, 2023
Fair value of GIPR preferred shares	$	—	$	11,038,658

On August 10, 2023, the Company disposed of 13 properties consisting of 11 retail properties and two office properties in a sale to Generation Income Properties, Inc. (NASDAQ: GIPR) (“GIPR”). These 13 properties were sold for $42,000,000 with $30,000,000 paid in cash and the remaining $12,000,000 paid in 2,400,000 shares of GIPR's newly-created Series A Redeemable Preferred Stock (the “GIPR Preferred Stock”) with a liquidation preference of $5.00 per share and an annual dividend yield of 9.5% from August 10, 2023 to August 9, 2024, and an annual dividend rate of 12.0% thereafter. The Company elected to record its investment in preferred stock at fair value. The fair value of the GIPR Preferred Stock at the closing date of the sale of the Company's 13 properties was included in the net proceeds from sale to determine the loss on sale.

GIPR exercised its right to redeem all 2,400,000 shares of the GIPR Preferred Stock in exchange for 2,794,597 shares of GIPR common stock (the “GIPR Common Stock”), which were issued to the Company on January 31, 2024. The Company distributed 2,623,153 shares of the GIPR Common Stock to the holders of the Company’s Class C Common Stock and Class C OP Units. By May 9, 2024, the Company sold the remaining 171,444 shares of GIPR Common Stock, which had a fair value of $656,631 as of March 31, 2024, at an average price of $3.80 per share for aggregate net proceeds of $652,118, resulting in a net loss on sale of $4,513.