Reconciliation of non-GAAP financial measures,
including FFO, Adjusted FFO, Property NOI, EBITDA and Adjusted
EBITDA are included in the accompanying financial tables.
Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“Wheeler” or the “Company”) today reported operating
and financial results for its second quarter ended June 30,
2017 and the six month period ended June 30, 2017.
2017 Second Quarter Highlights (all
comparisons to the same prior year period unless otherwise
noted)
- Total revenue from continuing operations increased by 32.8% or
$3.6 million.
- Property Net Operating Income ("NOI") from continuing
operations increased by 26.6% to approximately $10.1 million.
- Adjusted Funds from Operations ("AFFO") of $0.40 per share of
the Company's common stock, $0.01 par value per share ("Common
Stock"), and common unit ("Operating Partnership Unit" or "OP
Unit") in our operating partnership, Wheeler REIT, L.P. (the
"Operating Partnership").
- For the three month period, the Company declared quarterly cash
dividends of approximately $0.34 per common share and OP Unit. On
an annualized basis, this amounted to a dividend of $1.44 per
common share and OP Unit, given the first quarter dividend of $0.42
per common share and OP Unit or a 14.1% dividend yield based on the
June 30, 2017 closing price of $10.21 per share.
- Completed the sale of Steak n' Shake outparcel at Rivergate and
Carolina Place land parcel resulting in a gain of $1.0
million.
2017 Year-to-Date Highlights (all
comparisons to prior year unless otherwise noted)
- Total revenue from continuing operations increased by 43.6% or
$8.8 million.
- NOI from continuing operations increased by 42.6% to
approximately $20.0 million.
- AFFO of $0.70 per share of Common Stock and OP Unit.
- Average rental rate increase on renewals signed during the year
was 1.25%.
- Completed sales of discontinued operations and assets held for
sale resulting in a total gain of $1.5 million.
Jon S. Wheeler, Chairman and Chief Executive Officer, commented,
“I am pleased that the Company is reporting earnings of $0.40 in
line with guidance for the second quarter. We had some very
positive movement in the second quarter, despite operating in a
currently challenging retail environment. The sale of the two
parcels demonstrates the strong demand for space in the secondary
and tertiary markets, which we believe remain largely insulated
from e-commerce retail trends. While the grocery store industry
continues to evolve, we are confident that our retailers will adapt
to consumer habits and that our real estate will remain the
dominant location for retail in our markets.”
2017 Second Quarter Financial
Review
• Total revenue from continuing operations
increased by approximately 32.80% to $14.7 million for the three
months ended June 30, 2017, compared with total revenue from
continuing operations of $11.1 million for the same prior year
period.
• Net loss attributable to Common Stock
shareholders was $3.2 million for the three months ended June 30,
2017, or $0.37 per basic and diluted share, compared to a net loss
of $3.2 million, or $0.38 per basic and diluted share, for the same
prior year period.
- The changes in net loss were primarily due to the incremental
NOI derived from the nine retail property acquisitions occurring
subsequent to June 30, 2016 and fourteen that occurred during
the three months ended June 30, 2016, $1.0 million net gain on sale
of the Carolina Place land parcel and Rivergate Steak n' Shake
outparcel and lower general and administrative expenses due to an
overall decrease in salaries and compensation. These amounts were
partially offset by additional depreciation, amortization, interest
expense and preferred stock dividends.
• Wheeler reported Funds From Operations ("FFO")
available to Common Stock shareholders and holders of OP Units of
$2.3 million for the three months ended June 30, 2017, or $0.24 per
share of Common Stock and OP Unit, compared to $1.3 million, or
$0.14 per share of Common Stock and OP Unit for the same prior year
period.
• AFFO was $3.7 million for the three months
ended June 30, 2017, or $0.40 per share of Common Stock and OP
Unit, compared to AFFO of $2.7 million, or $0.29 per share of
Common Stock and OP Unit for the same prior year period.
• NOI from continuing operations increased by
26.6% to $10.1 million for the three months ended June 30, 2017, as
compared to NOI from continuing operations of $8.0 million for the
same prior year period.
• Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization ("Adjusted EBITDA") was $9.9 million
for the three months ended June 30, 2017, as compared to $6.3
million of Adjusted EBITDA for the same prior year period.
• The Company recorded $360 thousand in interest
income on notes receivable and $163 thousand in development fees
for the three months ended June 30, 2017 attributable to Sea Turtle
Marketplace ("Sea Turtle Development").
2017 Year-to-Date Financial
Review
• Total revenue from continuing operations
increased by approximately 43.6% to $29.0 million for the six
months ended June 30, 2017, compared with total revenue from
continuing operations of $20.2 million for the same prior year
period.
• Net loss attributable to Common Stock
shareholders was $6.8 million for the six months ended June 30,
2017, or $0.79 per basic and diluted share, compared to a net loss
of $7.0 million, or $0.83 per basic and diluted share, for the same
prior year period.
- The decrease in net loss was primarily due to the incremental
NOI derived from the nine retail property acquisitions occurring
subsequent to June 30, 2016, $1.5 million gain on the
sale of the Ruby Tuesday's and Outback properties at Pierpont
Shopping Center, $1.0 million net gain on sale of the Carolina
Place land parcel and the Rivergate Steak n' Shake outparcel and
lower general and administrative expenses due to an overall
decrease in salaries and compensation. These amounts were partially
offset by additional depreciation, amortization, interest expense
and preferred stock dividends.
• Wheeler reported FFO available to Common Stock
shareholders and holders of OP Units of $3.7 million for the six
months ended June 30, 2017, or $0.40 per share of Common Stock and
OP Unit, compared to $2.2 million, or $0.25 per share of Common
Stock and OP Unit for the same prior year period.
• AFFO was $6.6 million for the six months ended
June 30, 2017, or $0.70 per share of Common Stock and OP Unit,
compared to AFFO of $4.6 million, or $0.51 per share of Common
Stock and OP Unit for the same prior year period.
• NOI from continuing operations increased by
42.6% to $20.0 million for the six months ended June 30, 2017, as
compared to NOI from continuing operations of $14.0 million for the
same prior year period.
• Adjusted EBITDA was $18.7 million for the six
months ended June 30, 2017, as compared to $10.8 million of
Adjusted EBITDA for the same prior year period.
• The Company recorded $716 thousand in interest
income on notes receivable and $299 thousand in development fees
for the six months ended June 30, 2017 attributable to Sea Turtle
Development.
Leasing Review
- For the three months ended June 30, 2017, the Company
executed 23 renewals totaling 108,743 square feet at a
weighted-average decrease of $(0.21) per square foot, representing
a decrease of (2.45)% over prior rates. In December 2016, at the
time of the Village of Martinsville acquisition a decrease in rent
was anticipated for the 23,523 square foot space occupied by Office
Max. The renewal occurred in the three months ended June 30,
2017 at a premium to the Company's underwritten rental rate at the
time of acquisition. If adjusted to exclude the Office Max
renewal the weighted-average increase on renewals for the three
months ended June 30, 2017 would total $0.14 per square foot,
representing an increase of 1.61% over prior rates.
- For the six months ended June 30, 2017, the Company
executed 56 renewals totaling 287,864 square feet at a
weighted-average increase of $0.11 per square foot, representing an
increase of 1.25% over prior rates. As discussed above, if adjusted
to exclude the Office Max renewal the weighted-average increase on
renewals for the six months ended June 30, 2017 would total $0.25
per square foot, representing an increase of 2.90% over prior
rates.
- For the three months ended June 30, 2017, Wheeler signed
14 new leases totaling approximately 33,792 square feet with a
weighted-average rate of $13.06 per square foot.
- For the six months ended June 30, 2017, Wheeler signed 32
new leases totaling approximately 88,071 square feet with a
weighted-average rate of $13.59 per square foot.
- Approximately 3.2% of Wheeler’s gross leasable area ("GLA") is
subject to leases that expire during the six months ending December
31, 2017. Of the GLA expiring during the six months ending December
31, 2017, 39.8% have options to renew. Based on recent market
trends, the Company believes that tenants will renew these leases
at amounts and terms comparable to existing lease agreements.
- Same-store NOI year-over-over growth for the three months ended
June 30, 2017 was (4.9)% on a GAAP basis and (5.4)% on a cash
basis. The same-store pool comprises the 3.2 million square feet
that the Company owned as of January 1, 2016. Same-store results
were driven by a 2.2% decrease in property revenues primarily
resulting from the closure of Career Point Business School and an
increase of 5.6% in property operating expenses as a result of the
allocation of certain property management and facilities
maintenance personnel expenses and related travel costs which were
not allocated during the respective prior year period.
- Same-store NOI year-over-over growth for the six months ended
June 30, 2017 was (1.5)% on a GAAP basis and (2.9)% on a cash
basis. The same-store pool comprises the 3.2 million square feet
that the Company owned as of January 1, 2016. Same-store results
were driven by a decrease of 1.1% in property revenues primarily
resulting from the closure of Career Point Business School while
property expenses remained relatively flat.
- The Company's leased percentage is 94.3% of GLA at June 30,
2017, including leases executed through July 5, 2017.
Balance Sheet Summary
- The Company’s cash and cash equivalents were $7.1 million at
June 30, 2017, compared to $4.9 million at December 31,
2016.
- Wheeler’s net investment properties as of June 30, 2017
(including assets held for sale) totaled at $384.4 million, as
compared to $389.2 million as of December 31, 2016.
- The Company’s total debt was $311.4 million at June 30,
2017 (including debt associated with assets held for sale),
compared to $315.0 million at December 31, 2016. Wheeler’s
weighted-average interest rate and term of its debt (including debt
associated with assets held for sale) was 4.5% and 5.00 years,
respectively, at June 30, 2017, compared to 4.3% and 5.55
years, respectively, at December 31, 2016.
Dividend Distribution
- For the three months ended June 30, 2017, the Company
declared approximately $3.2 million in dividend payments to the
holders of our Common Stock and OP Units.
- For the three months ended June 30, 2017, the Company
declared approximately $2.3 million in dividend payments to the
holders of our Series A, Series B, and Series D preferred
stock.
- For the six months ended June 30, 2017, the Company
declared approximately $7.1 million in dividend payments to the
holders of our Common Stock and OP Units.
- For the six months ended June 30, 2017, the Company
declared approximately $4.6 million in dividend payments to the
holders of our Series A, Series B, and Series D preferred
stock.
Dividend Payout Schedule
- As previously announced, the Company amended its Common Stock
dividend payment schedule such that dividends were paid quarterly
commencing in July 2017 to shareholders of record on June 30, 2017
and future dividends are expected to be paid quarterly.
Furthermore, it was announced that the annualized Common Stock rate
was adjusted to $1.44 on an annualized basis, given the first
quarter dividend of $0.42 per share.
Subsequent Activity
- On July 18, 2017, the Company extended the $3.39
million Walnut Hill Loan maturity to October 31, 2017.
- On August 7, 2017, the Company executed a Third Amendment to
the KeyBank Credit Agreement (the "Third Amendment"). The
Third Amendment changed the interest payment date to the first day
of each calendar month and decreased the total commitment on the
revolving credit line by $25 million to $50 million effective
October 7, 2017. The Company and KeyBank agreed Shoppes at
Myrtle Park shall continue to be included in the calculation of the
Borrowing Base Availability (as defined in the Credit Agreement)
through December 21, 2017.
Third Quarter 2017 Outlook and Guidance
Management will discuss Third Quarter 2017 and Full-Year 2017
guidance on the earnings conference call (August 9, 2017) at 10:00
AM ET.
Conference Call Dial-in and Webcast
Information:
The dial-in numbers are:
Live Participant Dial-In (Toll-Free): 877-407-3101
Live Participant Dial-In (International): 201-493-6789
The conference call will also be webcast. To listen to the call,
please go to the Investor Relations section of Wheeler’s website
at
www.whlr.us, or click on the following link:
http://whlr.equisolvewebcast.com/q2-2017.
Supplemental Information
Further details regarding Wheeler Real Estate Investment Trust,
Inc.’s operations and financials for the period ended June 30,
2017, including a supplemental presentation, are available through
the Company’s website by visiting www.whlr.us.
About Wheeler Real Estate Investment Trust,
Inc.
Headquartered in Virginia Beach, VA, Wheeler Real Estate
Investment Trust, Inc. is a fully-integrated, self-managed
commercial real estate investment company focused on acquiring and
managing income-producing retail properties with a primary focus on
grocery-anchored centers. Wheeler’s portfolio contains
well-located, potentially dominant retail properties in secondary
and tertiary markets that generate attractive, risk-adjusted
returns, with a particular emphasis on grocery-anchored retail
centers. For additional information about the Company, please
visit: www.whlr.us.
Financial Information
A copy of Wheeler’s Quarterly Report on Form 10-Q, which
includes the Company’s consolidated financial statements and
management’s discussion & analysis of financial condition and
results of operations, will be available upon filing via the U.S.
Securities and Exchange Commission website (www.sec.gov) or through
Wheeler’s website at www.whlr.us.
FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted
EBITDA are non-GAAP financial measures within the meaning of the
rules of the Securities and Exchange Commission. Wheeler considers
FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted EBITDA
to be important supplemental measures of its operating performance
and believes it is frequently used by securities analysts,
investors and other interested parties in the evaluation of REITs,
many of which present FFO when reporting their results. FFO is
intended to exclude GAAP historical cost depreciation and
amortization of real estate and related assets, which assumes that
the value of real estate assets diminishes ratably over time.
Historically, however, real estate values have risen or fallen with
market conditions. Because FFO excludes depreciation and
amortization unique to real estate and gains and losses from
property dispositions, the Company believes that it provides a
performance measure that, when compared year-over-year, reflects
the impact to operations from trends in occupancy rates, rental
rates, operating costs, development activities and interest costs,
providing perspective not immediately apparent from the closest
GAAP measurement, net income.
Management believes that the computation of FFO in accordance
with NAREIT’s definition includes certain items that are not
indicative of the operating performance of the Company’s real
estate assets. These items include, but are not limited to,
nonrecurring expenses, legal settlements, legal and professional
fees, and acquisition costs. Management uses AFFO, which is a non-
GAAP financial measure, to exclude such items. Management believes
that reporting AFFO and Pro Forma AFFO in addition to FFO is a
useful supplemental measure for the investment community to use
when evaluating the operating performance of the Company on a
comparative basis. Management also believes that Property NOI,
EBITDA and Adjusted EBITDA represent important supplemental
measures for securities analysts, investors and other interested
parties, as they are often used in calculating net asset value,
leverage and other financial metrics used by these parties in the
evaluation of REITs.
Forward-Looking Statement
This press release may contain “forward-looking” statements as
defined in the Private Securities Litigation Reform Act of 1995.
When the Company uses words such as “may,” “will,” “intend,”
“should,” “believe,” “expect,” “anticipate,” “project,” “estimate”
or similar expressions that do not relate solely to historical
matters, it is making forward-looking statements. Forward-looking
statements are not guarantees of future performance and involve
risks and uncertainties that may cause the actual results to differ
materially from the Company’s expectations discussed in the
forward-looking statements. The Company’s expected results may not
be achieved, and actual results may differ materially from
expectations. Specifically, the Company’s statements regarding: (i)
the future generation of financial returns from the acquisition of
retail focused properties; (ii) the Company’s ability to complete
future acquisitions of properties; (iii) the Company’s expectation
that tenants will renew leases at amounts and terms comparable to
existing lease agreements; (iv) the Company’s expectation that its
properties remain the dominant location for retail in its markets;
(v) the anticipated implementation of the Company’s acquisition
strategy; (vi) the Company’s expectation that demand for space in
the secondary and tertiary markets will remain largely insulated
from e-commerce retail trends; (vii) the Company’s annualized
Common Stock dividend rate of $1.44 per share on an annualized
basis; and (viii) the anticipated ability to produce returns and
growth for the Company and its shareholders are forward-looking
statements. These statements are not guarantees of future
performance and are subject to risks, uncertainties and other
factors, some of which are beyond our control, are difficult to
predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements. In
addition, this press release states that the Company’s quarterly
dividend rate on the Company’s common stock is $0.34 per share. A
possible implication of this statement is that the Company will
continuously pay quarterly dividends on the Company’s common stock
of $0.34 per share. The Company’s dividend rates are set and may be
reset from time to time by its Board of Directors. The Company’s
Board of Directors will consider many factors when setting dividend
rates, including the Company’s historical and projected income,
normalized funds from operations, the then current and expected
needs and availability of cash to pay the Company’s obligations,
distributions which may be required to be paid to maintain the
Company’s tax status as a real estate investment trust and other
factors deemed relevant by the Board of Directors in its
discretion. Accordingly, future dividend rates may be increased or
decreased and there is no assurance as to the rate at which future
dividends will be paid. For these reasons, among others, investors
are cautioned not to place undue reliance upon any forward-looking
statements in this press release.
Additional factors are discussed in the Company's filings with
the U.S. Securities and Exchange Commission, which are available
for review at www.sec.gov. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof.
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Condensed Consolidated Statements of
Operations |
(unaudited, in thousands, except per share
data) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
REVENUE: |
|
|
|
|
|
|
|
|
Rental
revenues |
|
$ |
11,027 |
|
|
$ |
8,455 |
|
|
$ |
22,156 |
|
|
$ |
15,197 |
|
Asset
management fees |
|
500 |
|
|
205 |
|
|
662 |
|
|
460 |
|
Commissions |
|
194 |
|
|
91 |
|
|
309 |
|
|
244 |
|
Tenant
reimbursements and other revenues |
|
2,998 |
|
|
2,333 |
|
|
5,914 |
|
|
4,321 |
|
Total Revenue |
|
14,719 |
|
|
11,084 |
|
|
29,041 |
|
|
20,222 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Property
operations |
|
3,747 |
|
|
2,797 |
|
|
7,741 |
|
|
5,472 |
|
Non-REIT
management and leasing services |
|
636 |
|
|
279 |
|
|
907 |
|
|
656 |
|
Depreciation and amortization |
|
6,309 |
|
|
5,432 |
|
|
12,709 |
|
|
10,312 |
|
Provision
for credit losses |
|
168 |
|
|
77 |
|
|
420 |
|
|
165 |
|
Corporate
general & administrative |
|
1,317 |
|
|
2,512 |
|
|
3,549 |
|
|
4,794 |
|
Total Operating Expenses |
|
12,177 |
|
|
11,097 |
|
|
25,326 |
|
|
21,399 |
|
Operating
Income (Loss) |
|
2,542 |
|
|
(13 |
) |
|
3,715 |
|
|
(1,177 |
) |
Gain on
disposal of properties |
|
1,022 |
|
|
— |
|
|
1,022 |
|
|
— |
|
Interest
income |
|
360 |
|
|
1 |
|
|
716 |
|
|
2 |
|
Interest
expense |
|
(4,570 |
) |
|
(3,742 |
) |
|
(8,747 |
) |
|
(6,162 |
) |
Net Loss from
Continuing Operations Before Income Taxes |
|
(646 |
) |
|
(3,754 |
) |
|
(3,294 |
) |
|
(7,337 |
) |
Income
tax expense |
|
(69 |
) |
|
— |
|
|
(110 |
) |
|
— |
|
Net Loss from
Continuing Operations |
|
(715 |
) |
|
(3,754 |
) |
|
(3,404 |
) |
|
(7,337 |
) |
Discontinued
Operations |
|
|
|
|
|
|
|
|
Income
from discontinued operations |
|
— |
|
|
55 |
|
|
16 |
|
|
76 |
|
(Loss)
gain on disposal of properties |
|
(11 |
) |
|
688 |
|
|
1,502 |
|
|
688 |
|
Net (Loss)
Income from Discontinued Operations |
|
(11 |
) |
|
743 |
|
|
1,518 |
|
|
764 |
|
Net
Loss |
|
(726 |
) |
|
(3,011 |
) |
|
(1,886 |
) |
|
(6,573 |
) |
Less: Net
loss attributable to noncontrolling interests |
|
(13 |
) |
|
(313 |
) |
|
(54 |
) |
|
(646 |
) |
Net Loss
Attributable to Wheeler REIT |
|
(713 |
) |
|
(2,698 |
) |
|
(1,832 |
) |
|
(5,927 |
) |
Preferred
stock dividends |
|
(2,494 |
) |
|
(512 |
) |
|
(4,977 |
) |
|
(1,023 |
) |
Net Loss
Attributable to Wheeler REIT
CommonShareholders |
|
$ |
(3,207 |
) |
|
$ |
(3,210 |
) |
|
$ |
(6,809 |
) |
|
$ |
(6,950 |
) |
|
|
|
|
|
|
|
|
|
Loss per
share from continuing operations (basic and diluted) |
|
$ |
(0.37 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.96 |
) |
|
$ |
(0.91 |
) |
Income
per share from discontinued operations |
|
— |
|
|
0.08 |
|
|
0.17 |
|
|
0.08 |
|
|
|
$ |
(0.37 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.79 |
) |
|
$ |
(0.83 |
) |
Weighted-average number of shares: |
|
|
|
|
|
|
|
|
Basic and
Diluted |
|
8,628,204 |
|
|
8,410,618 |
|
|
8,591,458 |
|
|
8,347,367 |
|
Dividends
declared per common share |
|
$ |
0.34 |
|
|
$ |
0.42 |
|
|
$ |
0.76 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Condensed Consolidated Balance Sheets |
(in thousands, except par value and share
data) |
|
|
|
|
|
June 30, 2017 |
|
December 31, 2016 |
|
(unaudited) |
|
|
ASSETS: |
|
|
|
Investment properties, net |
$ |
384,432 |
|
|
$ |
388,880 |
|
Cash and
cash equivalents |
7,052 |
|
|
4,863 |
|
Restricted cash |
9,242 |
|
|
9,652 |
|
Rents and
other tenant receivables, net |
3,670 |
|
|
3,984 |
|
Related
party receivables |
1,803 |
|
|
1,456 |
|
Notes
receivable |
12,000 |
|
|
12,000 |
|
Goodwill |
5,486 |
|
|
5,486 |
|
Assets
held for sale |
— |
|
|
366 |
|
Above
market lease intangible, net |
10,954 |
|
|
12,962 |
|
Deferred
costs and other assets, net |
42,121 |
|
|
49,397 |
|
Total Assets |
$ |
476,760 |
|
|
$ |
489,046 |
|
LIABILITIES: |
|
|
|
Loans
payable, net |
$ |
305,018 |
|
|
$ |
305,973 |
|
Liabilities associated with assets held for sale |
— |
|
|
1,350 |
|
Below
market lease intangible, net |
11,112 |
|
|
12,680 |
|
Accounts
payable, accrued expenses and other liabilities |
9,708 |
|
|
9,610 |
|
Dividends
payable |
5,473 |
|
|
1,711 |
|
Total Liabilities |
331,311 |
|
|
331,324 |
|
Commitments and
contingencies |
|
|
|
Series D Cumulative
Convertible Preferred Stock (no par value, 4,000,000 shares
authorized, 2,237,000 shares issued and outstanding; $55.93 million
aggregate liquidation preference) |
52,869 |
|
|
52,530 |
|
|
|
|
|
EQUITY: |
|
|
|
Series A
Preferred Stock (no par value, 4,500 shares authorized, 562 shares
issued and outstanding) |
453 |
|
|
453 |
|
Series B
Convertible Preferred Stock (no par value, 5,000,000 authorized,
1,871,244 shares issued and outstanding; $46.78 million aggregate
liquidation preference) |
40,776 |
|
|
40,733 |
|
Common
Stock ($0.01 par value, 18,750,000 shares authorized, 8,666,646 and
8,503,819 shares issued and outstanding, respectively) |
87 |
|
|
85 |
|
Additional paid-in capital |
226,075 |
|
|
223,939 |
|
Accumulated deficit |
(183,729 |
) |
|
(170,377 |
) |
Total
Shareholders’ Equity |
83,662 |
|
|
94,833 |
|
Noncontrolling interests |
8,918 |
|
|
10,359 |
|
Total Equity |
92,580 |
|
|
105,192 |
|
Total Liabilities and Equity |
$ |
476,760 |
|
|
$ |
489,046 |
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Reconciliation of Funds From Operations
(FFO) |
(unaudited, in thousands) |
|
|
|
|
|
Three Months Ended June 30, |
|
|
Same Stores |
|
New Stores |
|
Total |
|
Period Over PeriodChanges |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
$ |
|
% |
Net (Loss) Income |
|
$ |
(1,189 |
) |
|
$ |
(1,860 |
) |
|
$ |
463 |
|
|
$ |
(1,151 |
) |
|
$ |
(726 |
) |
|
$ |
(3,011 |
) |
|
$ |
2,285 |
|
|
75.89 |
% |
Depreciation and
amortization of real estate assets |
|
3,803 |
|
|
4,470 |
|
|
2,506 |
|
|
962 |
|
|
6,309 |
|
|
5,432 |
|
|
877 |
|
|
16.15 |
% |
Loss (gain) on disposal
of properties |
|
11 |
|
|
— |
|
|
(1,033 |
) |
|
— |
|
|
(1,022 |
) |
|
— |
|
|
(1,022 |
) |
|
— |
% |
Loss (gain) on disposal
of properties-discontinued operations |
|
11 |
|
|
(688 |
) |
|
— |
|
|
— |
|
|
11 |
|
|
(688 |
) |
|
699 |
|
|
101.60 |
% |
FFO |
|
$ |
2,636 |
|
|
$ |
1,922 |
|
|
$ |
1,936 |
|
|
$ |
(189 |
) |
|
$ |
4,572 |
|
|
$ |
1,733 |
|
|
$ |
2,839 |
|
|
163.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
Same Stores |
|
New Stores |
|
Total |
|
Period Over PeriodChanges |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
$ |
|
% |
Net loss |
|
$ |
(1,763 |
) |
|
$ |
(5,422 |
) |
|
$ |
(123 |
) |
|
$ |
(1,151 |
) |
|
$ |
(1,886 |
) |
|
$ |
(6,573 |
) |
|
$ |
4,687 |
|
|
71.31 |
% |
Depreciation and
amortization of real estate assets |
|
7,657 |
|
|
9,350 |
|
|
5,052 |
|
|
962 |
|
|
12,709 |
|
|
10,312 |
|
|
2,397 |
|
|
23.24 |
% |
Loss (gain) on disposal
of properties |
|
11 |
|
|
— |
|
|
(1,033 |
) |
|
— |
|
|
(1,022 |
) |
|
— |
|
|
(1,022 |
) |
|
— |
% |
Gain on disposal of
properties-discontinued operations |
|
(1,502 |
) |
|
(688 |
) |
|
— |
|
|
— |
|
|
(1,502 |
) |
|
(688 |
) |
|
(814 |
) |
|
(118.31 |
)% |
FFO |
|
$ |
4,403 |
|
|
$ |
3,240 |
|
|
$ |
3,896 |
|
|
$ |
(189 |
) |
|
$ |
8,299 |
|
|
$ |
3,051 |
|
|
$ |
5,248 |
|
|
172.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Reconciliation of Adjusted Funds From
Operations (AFFO) |
(unaudited, in
thousands, except per share data) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net Loss |
|
$ |
(726 |
) |
|
$ |
(3,011 |
) |
|
$ |
(1,886 |
) |
|
$ |
(6,573 |
) |
Depreciation and
amortization of real estate assets |
|
6,309 |
|
|
5,432 |
|
|
12,709 |
|
|
10,312 |
|
Gain on disposal of
properties |
|
(1,022 |
) |
|
— |
|
|
(1,022 |
) |
|
— |
|
Loss (gain) on disposal
of properties-discontinued operations |
|
11 |
|
|
(688 |
) |
|
(1,502 |
) |
|
(688 |
) |
FFO |
|
4,572 |
|
|
1,733 |
|
|
8,299 |
|
|
3,051 |
|
Preferred stock
dividends |
|
(2,494 |
) |
|
(512 |
) |
|
(4,977 |
) |
|
(1,023 |
) |
Preferred stock
accretion adjustments |
|
205 |
|
|
88 |
|
|
400 |
|
|
177 |
|
FFO available to common
shareholders and common unitholders |
|
2,283 |
|
|
1,309 |
|
|
3,722 |
|
|
2,205 |
|
Acquisition costs |
|
339 |
|
|
383 |
|
|
599 |
|
|
796 |
|
Capital related
costs |
|
166 |
|
|
188 |
|
|
386 |
|
|
250 |
|
Other non-recurring and
non-cash expenses (1) |
|
23 |
|
|
222 |
|
|
130 |
|
|
459 |
|
Share-based
compensation |
|
224 |
|
|
261 |
|
|
601 |
|
|
411 |
|
Straight-line rent |
|
(219 |
) |
|
(135 |
) |
|
(404 |
) |
|
(142 |
) |
Loan cost
amortization |
|
1,064 |
|
|
645 |
|
|
1,827 |
|
|
835 |
|
Accrued interest
income |
|
(120 |
) |
|
— |
|
|
(238 |
) |
|
— |
|
Above (below) market
lease amortization |
|
190 |
|
|
— |
|
|
383 |
|
|
72 |
|
Recurring capital
expenditures and tenant improvement reserves |
|
(245 |
) |
|
(187 |
) |
|
(451 |
) |
|
(326 |
) |
AFFO |
|
$ |
3,705 |
|
|
$ |
2,686 |
|
|
$ |
6,555 |
|
|
$ |
4,560 |
|
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares |
|
8,628,204 |
|
|
8,410,618 |
|
|
8,591,458 |
|
|
8,347,367 |
|
Weighted Average Common
Units |
|
728,934 |
|
|
705,558 |
|
|
745,353 |
|
|
646,732 |
|
Total Common Shares and
Units |
|
9,357,138 |
|
|
9,116,176 |
|
|
9,336,811 |
|
|
8,994,099 |
|
FFO per Common Share
and Common Units |
|
$ |
0.24 |
|
|
$ |
0.14 |
|
|
$ |
0.40 |
|
|
$ |
0.25 |
|
AFFO per Common Share
and Common Units |
|
$ |
0.40 |
|
|
$ |
0.29 |
|
|
$ |
0.70 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
non-recurring expenses are detailed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" included
in our Quarterly Report on Form 10-Q for the period ended June 30,
2017. |
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Reconciliation of Property Net Operating
Income |
(unaudited, in thousands) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Property Revenues |
|
$ |
13,862 |
|
|
$ |
10,788 |
|
|
$ |
27,771 |
|
|
$ |
19,518 |
|
Property Expenses |
|
3,747 |
|
|
2,797 |
|
|
7,741 |
|
|
5,472 |
|
Property
Net Operating Income |
|
10,115 |
|
|
7,991 |
|
|
20,030 |
|
|
14,046 |
|
Asset Management and
Commission Revenue |
|
694 |
|
|
296 |
|
|
971 |
|
|
704 |
|
Other non-property
income |
|
163 |
|
|
— |
|
|
299 |
|
|
— |
|
Other
Income |
|
857 |
|
|
296 |
|
|
1,270 |
|
|
704 |
|
Non-REIT management and
leasing services |
|
636 |
|
|
279 |
|
|
907 |
|
|
656 |
|
Depreciation and
amortization |
|
6,309 |
|
|
5,432 |
|
|
12,709 |
|
|
10,312 |
|
Provision for credit
losses |
|
168 |
|
|
77 |
|
|
420 |
|
|
165 |
|
Corporate general &
administrative |
|
1,317 |
|
|
2,512 |
|
|
3,549 |
|
|
4,794 |
|
Total
Other Operating Expenses |
|
8,430 |
|
|
8,300 |
|
|
17,585 |
|
|
15,927 |
|
Gain on disposal of
properties |
|
1,022 |
|
|
— |
|
|
1,022 |
|
|
— |
|
Interest income |
|
360 |
|
|
1 |
|
|
716 |
|
|
2 |
|
Interest expense |
|
(4,570 |
) |
|
(3,742 |
) |
|
(8,747 |
) |
|
(6,162 |
) |
Net Loss from
Continuing Operations Before Income Taxes |
|
(646 |
) |
|
(3,754 |
) |
|
(3,294 |
) |
|
(7,337 |
) |
Income tax expense |
|
(69 |
) |
|
— |
|
|
(110 |
) |
|
— |
|
Net Loss from
Continuing Operations |
|
(715 |
) |
|
(3,754 |
) |
|
(3,404 |
) |
|
(7,337 |
) |
Discontinued
Operations |
|
|
|
|
|
|
|
|
Income
from operations |
|
— |
|
|
55 |
|
|
16 |
|
|
76 |
|
(Loss)
gain on disposal of properties |
|
(11 |
) |
|
688 |
|
|
1,502 |
|
|
688 |
|
Net (Loss) Income from
Discontinued Operations |
|
(11 |
) |
|
743 |
|
|
1,518 |
|
|
764 |
|
Net
Loss |
|
$ |
(726 |
) |
|
$ |
(3,011 |
) |
|
$ |
(1,886 |
) |
|
$ |
(6,573 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Reconciliation of Earnings Before Interest, Taxes,
Depreciation and Amortization - EBITDA |
(unaudited, in thousands) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net
Loss |
$ |
(726 |
) |
|
$ |
(3,011 |
) |
|
$ |
(1,886 |
) |
|
$ |
(6,573 |
) |
Add back: |
Depreciation and
amortization (1) |
6,499 |
|
|
5,432 |
|
|
13,092 |
|
|
10,384 |
|
|
Interest Expense
(2) |
4,570 |
|
|
3,762 |
|
|
8,756 |
|
|
6,204 |
|
|
Income taxes |
69 |
|
|
— |
|
|
110 |
|
|
— |
|
EBITDA |
10,412 |
|
|
6,183 |
|
|
20,072 |
|
|
10,015 |
|
Adjustments
for items affecting comparability: |
|
|
|
|
|
|
|
|
Acquisition costs |
339 |
|
|
383 |
|
|
599 |
|
|
796 |
|
|
Capital related
costs |
166 |
|
|
188 |
|
|
386 |
|
|
250 |
|
|
Other non-recurring
expenses (3) |
23 |
|
|
222 |
|
|
130 |
|
|
459 |
|
|
Gain on disposal of
properties |
(1,022 |
) |
|
— |
|
|
(1,022 |
) |
|
— |
|
|
Loss (gain) on disposal
of properties-discontinued operations |
11 |
|
|
(688 |
) |
|
(1,502 |
) |
|
(688 |
) |
Adjusted
EBITDA |
$ |
9,929 |
|
|
$ |
6,288 |
|
|
$ |
18,663 |
|
|
$ |
10,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes above (below) market lease amortization. |
(2)
Includes loan cost amortization and amounts associated with assets
held for sale. |
(3) Other
non-recurring expenses are detailed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" included
in our Quarterly Report on Form 10-Q for the period ended
June 30, 2017. |
|
CONTACT:
Wheeler Real Estate Investment Trust, Inc.
Wilkes Graham
Chief Financial Officer
(757) 627-9088 / wilkes@whlr.us
Laura Nguyen
Director of Investor Relations
(757) 627-9088 / lnguyen@whlr.us
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