Wheeler Real Estate Investment Trust, Inc. Completes Sale of Three Non-Core Properties for $28.2 Million
October 28 2015 - 8:30AM
Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) ("Wheeler" or the "Company"), 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, announced today it has
sold three single-tenant retail properties to Ladder Capital
(NASDAQ:LADR) ("Ladder"), a leading commercial real estate finance
company.
The three free-standing properties, Harps, Jenks Reasor's, and
Bixby Commons, were sold under separate contracts for a combined
price of $28.2 million at a weighted-average capitalization rate of
7.26% based on a net operating income for the trailing twelve
months. The Company originally acquired the properties for $26.6
million which equated to a weighted-average capitalization rate of
7.70%.
Jon S. Wheeler, Chairman and Chief Executive Officer, stated,
"The sale of these three freestanding properties reflects the
execution of our strategy to remain focused on acquiring
multi-tenant properties, monetize non-core assets and use proceeds
to re-invest in our specialized markets. Acquired just over two
years ago, we believe that the market for such properties are
favorable and plan to generate strong returns for our shareholders
once the proceeds are re-invested."
The properties are located in Tulsa and Delaware Counties,
Oklahoma and total approximately 187,705 gross leasable square
feet. The assets were listed for sale as the Company streamlines
its acquisition focus onto multi-tenant retail properties. The
Company intends to reinvest proceeds from the sale into assets best
aligned with its business model.
About Ladder Capital
Ladder is an internally-managed real estate investment trust
that is a leader in commercial real estate finance. Ladder
originates and invests in a diverse portfolio of commercial real
estate and real estate-related assets, focusing on senior secured
assets. Ladder's investment activities include: (i) direct
origination of commercial real estate first mortgage loans; (ii)
investments in investment grade securities secured by first
mortgage loans on commercial real estate; and (iii) investments in
net leased and other commercial real estate. Founded in 2008,
Ladder is run by a highly experienced management team with
extensive expertise in all aspects of the commercial real estate
industry, including origination, credit, underwriting, structuring,
capital markets and asset management. Led by Brian Harris, the
Company's Chief Executive Officer, Ladder is headquartered in New
York City and has branches in Boca Raton, Los Angeles and San
Francisco.
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.
Additional information about Wheeler Real Estate Investment
Trust, Inc. can be found at the Company's corporate website:
www.whlr.us.
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. Specifically, the Company's statements
regarding the market for freestanding properties and ability to
reinvest the proceeds and generate returns for investors are
forward-looking statements. There are a number of important factors
that could cause the Company's operations to differ from those
indicated by such forward-looking statements, including, among
other factors, local conditions such as oversupply of space or a
reduction in demand for real estate in the area; competition from
other available space; dependence on rental income from real
property; the loss of, significant downsizing of or bankruptcy of a
major tenant; constructing properties or expansions that produce a
desired yield on investment; the Company's ability to renew or
enter into new leases at favorable rates; its ability to buy or
sell assets on commercially reasonable terms; its ability to
complete acquisitions or dispositions of assets under contract; its
ability to secure equity or debt financing on commercially
acceptable terms or at all; the Company's ability to enter into
definitive agreements with regard to its financing and joint
venture arrangements or its failure to satisfy conditions to the
completion of these arrangements and the success of its capital
recycling strategy. 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.
CONTACT: Wheeler Real Estate Investment Trust, Inc.
Robin Hanisch
Corporate Secretary
(757) 627-9088
robin@whlr.us
Laura Nguyen
Director of Capital Markets
(757) 627-9088
lnguyen@whlr.us
-OR-
INVESTOR RELATIONS:
The Equity Group Inc.
Terry Downs
Associate
(212) 836-9615
tdowns@equityny.com
Adam Prior
Senior Vice-President
(212) 836-9606
aprior@equityny.com
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