On August 13, 2021, the Company entered into a tenancy-in-common (“TIC”) investment whereby the TIC acquired a 15,288 square foot single tenant property in Rockford, IL for total consideration of approximately $4.5 million. The Company acquired a 36.8% interest in the TIC acquisition with Sunny Ridge HHP, LLC (“Sunny Ridge”) holding the remaining TIC interest. Funding for the Company’s interest was primarily funded through a redeemable non-controlling interest contribution from Richard Hornstrom to one of the Company's subsidiaries for $650,000. The remainder of the purchase price of the property was funded by Sunny Ridge of $1.2 million and debt financing of approximately $2.7 million. Richard Hornstrom owns 50% of Sunny Ridge and also contributed $600,000 of $950,000 redeemable non-controlling interest contribution for the Plant City, FL property.

On April 1, 2022, the TIC refinanced the debt reducing the total debt outstanding to $2.1 million with an interest rate of 3.85% from April 1, 2022 through and until March 31, 2027. Effective April 1, 2027, the interest rate adjusts to the 5-year Treasury plus 2.5% and subject to a floor of 3.85%. The Company’s CEO entered into a guarantee agreement pursuant to which he guaranteed the payment obligations under the promissory note if they become due as a result of certain “bad-boy” provisions, individually and on behalf of the Operating Partnership. The promissory note requires the TIC to maintain a debt service coverage ratio of 1.50:1:00 in addition to a 54% loan to value ratio. As of June 30, 2023, the TIC was in compliance with all covenants.

In conjunction with the refinancing of the debt, the Company contributed $455,888 to the TIC increasing the Company's ownership to 50% interest and reducing Sunny Ridge's interest to 50%. The Rockford, IL property was accounted for under the equity method and as of June 30, 2023 it had a value of $1,247,679.

The condensed income statements for the six months ended June 30, 2023 and 2022 are as follows:


	Three Months ended June 30,					Six Months ended June 30,
	2023		2022			2023		2022
Total revenue	$	100,731	$	93,139		$	193,870	$	186,278
Total expenses	$	70,714	$	64,213		$	135,049	$	134,137
Operating income	$	30,017	$	28,926		$	58,821	$	52,141
Loss on debt extinguishment	$	-	$	(31,151	)	$	-	$	(31,851	)
Net income (loss)	$	30,017	$	(2,925	)	$	58,821	$	20,290
GIP, LP's Share	$	15,009	$	(1,462	)	$	29,411	$	7,090

The condensed balance sheets of the tenancy-in-common investment as of June 30, 2023 and December 31, 2022, respectively, are as follows:


	As of June 30,		As of December 31,
	2023		2022
Net real estate investments	$	4,444,112	$	4,503,120
Deferred rent asset		6,395		7,132
Prepaid expenses		1,318		343
Due from related party		76,735		21,710
Total Assets	$	4,528,560	$	4,532,305

Accounts payable and accrued expenses	$	7,379	$	6,738
Prepaid rent		26,681		30,550
Acquired lease intangible liabilities, net		31,845		35,561
Mortgage loan, net of unamortized debt issuance costs		2,080,490		2,088,116
Total Liabilities	$	2,146,395	$	2,160,965

GIP, LP	$	1,247,679	$	1,218,268
SUNNY RIDGE MHP, LLC		1,134,486		1,153,072
Total Tenants in Common Equity	$	2,382,165	$	2,371,340
Total Liabilities and Tenants in Common Equity	$	4,528,560	$	4,532,305