Wheeler Real Estate Investment Trust, Inc. Completes the Company’s Largest Acquisition to Date Consisting of Fourteen Groc...
April 12 2016 - 4:45PM
Consideration paid for the properties included
partnership units of the Company’s operating partnership, priced at
a premium to its current market value.
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, today
reported that the Company has closed on the acquisition of the
previously announced portfolio of fourteen properties. In addition,
the Company as of April 12, 2016 increased its $45 million
revolving credit line with KeyBank National Association (“KeyBank”)
to approximately $67.2 million of which $60.35 million will be used
to fund the purchase of the fourteen assets. The pricing of the
increased credit facility will be 500 basis points above 30-day
Libor. Further, the company secured an $8.0M term loan with Revere
High Yield Fund, LP with a current interest rate of 8.0%.
A photo accompanying this announcement is
available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/ab721d5c-0ded-47b6-97d5-78b97e531421
Total acquisition value of the fourteen
properties was approximately $71.0 million, or $117.72 per leasable
square foot, which the Company financed using a combination of
cash, the increased revolving credit line with KeyBank, the
Revere term loan and 888,889 partnership units of the Company’s
operating partnership, valued at $2.25 per unit.
Jon S. Wheeler, Chairman and Chief Executive
Officer of Wheeler, stated, “We are excited to complete this
transaction in a geographic region that we know very well. The
fourteen properties are in line with our acquisition criteria and
are located in growing secondary and tertiary markets. The majority
of the portfolio is located in South Carolina and will benefit from
the close proximity of our regional office in Charleston. We are
confident these assets will generate solid net operating income for
the Company and be immediately accretive to earnings.”
“Increasing our AFFO, while maintaining a solid
balance sheet remains in the forefront for the Company. We
strategically acquired these assets leveraging the use of our
ongoing, long-term relationship with KeyBank as well as through the
utilization of partnership units of our operating partnership,
pricing each unit at a premium to the current market value of our
common stock. Wheeler remains a growth oriented company, and these
14 grocery-anchored properties will bring us that much closer
towards dividend coverage in the second half of 2016.”
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 StatementThis
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Act of 1934, as amended,
including (i) the future generation of financial returns from the
acquisition of ‘necessity based’ retail focused properties; (ii)
the Company’s ability to complete future acquisitions of properties
and achieving proper scale; (iii) the Company's expectation of high
occupancy rates; (iv) the future generation of financial growth
from the Company's anticipated execution of its business plan; (v)
second quarter 2016 annualized AFFO guidance of $0.16-$0.17 per
share, and first quarter 2016 annualized AFFO guidance of
$0.11-$0.12 per share; (vi) the anticipated implementation of the
Company’s acquisition strategy; (vii) payment of future dividends
on the Company’s preferred stock and common stock; (viii) the
Company’s expectation to generate increased revenues from third
party development and leasing fees; (ix) the anticipated ability to
produce returns and growth for the Company and its shareholders;
and (x) the anticipated positive trajectory towards covering the
Company’s dividend. These forward-looking statements are not
historical facts but are the intent, belief or current expectations
of management based on its knowledge and understanding of our
business and industry. Forward-looking statements are typically
identified by the use of terms such as “may,” “will,” “should,”
“potential,” “predicts,” “anticipates,” “expects,” “intends,”
“plans,” “believes,” “seeks,” “estimates,” or the negative of such
terms and variations of these words and similar expressions.
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.
CONTACT:
Wheeler Real Estate Investment Trust, Inc.
Wilkes Graham
Chief Financial Officer
(757) 627-9088
wilkes@whlr.us
Laura Nguyen
Director of Capital Markets
(757) 627-9088
lnguyen@whlr.us
Robin Hanisch
Corporate Secretary
(757) 627-9088
robin@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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