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,
2016 and the six month period ended June 30, 2016.
2016 Second Quarter Highlights (all
comparisons to the same prior year period unless otherwise
noted)
- Total revenue from continuing operations increased by 82.27% or
$5.0 million.
- Property Net Operating Income ("NOI") from continuing
operations increased by 99.76% to approximately $8.0 million.
- Adjusted Funds from Operations ("AFFO") of $0.04 per common
share and common unit ("Operating Partnership Unit" or "OP
Unit")
- Average rental rate increase on renewals signed during the
quarter was 3.57%.
- Occupancy rate of 93.79% at June 30, 2016, compared to
95.57% at June 30, 2015.
- During the quarter, the Company completed the acquisition of an
additional 605,358 square feet of gross leasable area.
- For the three month period, the Company declared monthly cash
dividends of approximately $0.0175 per share. On an annualized
basis, this amounted to a dividend of $0.21 per common share and OP
Unit, or a 13.6% dividend yield based on the June 30, 2016
closing price of $1.54 per share.
2016 Year-to-Date Highlights (all
comparisons to the same prior year period unless otherwise
noted)
- Total revenue from continuing operations increased by 80.00% or
$9.0 million for the six month period ended June 30,
2016.
- NOI from continuing operations increased by 92.98% to
approximately $14.0 million for the six month period ended
June 30, 2016.
- AFFO of $0.06 per common share and common unit OP Unit.
- As of June 30, 2016, Wheeler’s property portfolio included
55 properties with a gross leasable area of 3,750,976 square feet
and ten undeveloped properties totaling approximately 81 acres of
land. As of June 30, 2015, the Company owned 34 properties
with a gross leasable area of 2,404,334 square feet and owned seven
undeveloped properties totaling approximately 66 acres of
land.
Jon S. Wheeler, Chairman and Chief Executive
Officer, commented, “The second quarter of 2016 continued to
demonstrate the strength of the company’s operations as we reported
increases in same store revenues and NOI. I am extremely
pleased with our progress both here and in our recent capital
efforts. As we said on our last call, we believe that these
positive trends will continue throughout the portfolio as we still
have the opportunity to increase occupancy levels through new
leases at our recently acquired shopping centers and renew at
higher rents throughout the portfolio. The AC portfolio has proven
to be accretive to our shareholders, and we are well underway in
our leasing efforts to increase that portfolio’s occupancy from 92%
to our historical rates of 94%-96%.“
“With regards to the offering of our Preferred
Series B via an ATM ("at-the-market" offering), we have repeatedly
stated that we would not issue equity at the current level but that
we needed to have options to start the accretive de-levering
process as a result of how we financed the acquisition of the AC
portfolio. The ATM has proven to be successful in that there has
been significant interest in the security and we have raised over
$15 million at a materially lower cost of capital from our last
Series C financing. Two large institutional REIT investors
purchased $15 million of the ATM, and we believe that this
provides tremendous sponsorship to our company. Overall, I feel
very confident that we are continuing to maximize shareholder value
and that we are making great strides across multiple fronts to
execute on our objectives.”
2016 Second Quarter Financial
Review
- For the three months ended June 30, 2016, total revenue
from continuing operations increased by approximately 82.27% to
$11.1 million, compared with total revenue from continuing
operations of $6.1 million for the same prior year period.
- Net loss attributable to Wheeler common shareholders for the
three months ended June 30, 2016 was $3.2 million, or $0.05
per basic and diluted share, compared to a net loss of $72.7
million, or $4.13 per basic and diluted share, during the same 2015
period. The decrease in net loss for the three months ended
June 30, 2016 was primarily due to the reduction of preferred
stock dividends, a one time $59.5 million deemed dividend
related to beneficial conversion feature of preferred stock that
occurred in the second quarter 2015, and the incremental NOI
derived from the twenty-five retail property acquisitions occurring
subsequent to June 30, 2015. These amounts were partially
offset by additional depreciation, amortization and interest
expense.
- Wheeler reported FFO available to common shareholders and
holders of OP Units for the three months ended June 30, 2016
of $1.3 million, or $0.02 per common share and OP Unit, compared to
$(3.8) million, or $(0.18) per common share and OP Unit for the
prior year period.
- AFFO for the three months ended June 30, 2016 was $2.7
million, or $0.04 per common share and OP Unit, compared to $(1.5)
million, or $(0.07) per common share and OP Unit for the same
period of the prior year.
- NOI from continuing operations increased by 99.76% to $8.0
million for the three months ended June 30, 2016, as compared
to NOI from continuing operations of $4.0 million for the prior
year period.
- Adjusted EBITDA was $6.3 million for the three months ended
June 30, 2016, as compared to $2.8 million of Adjusted EBITDA
for the three months ended June 30, 2015.
2016 Year-to-Date Financial
Review
- For the six months ended June 30, 2016, total revenue from
continuing operations increased by approximately 80.00% to $20.2
million, compared with total revenue from continuing operations of
$11.2 million for the same prior year period.
- Net loss attributable to Wheeler REIT common shareholders for
the six months ended June 30, 2016 was $7.0 million, or $0.10
per basic and diluted share, compared to a net loss of $79.0
million, or $6.20 per basic and diluted share, during the same 2015
period. The decrease in net loss for the six months ended
June 30, 2016 was primarily due to the reduction of preferred
stock dividends, the one time $59.5 million deemed dividend related
to beneficial conversion feature of preferred stock that occurred
in the second quarter 2015, and the incremental NOI derived from
the twenty-five retail property acquisitions occurring subsequent
to June 30, 2015. These amounts were partially offset by
additional depreciation, amortization and interest expense.
- Wheeler reported FFO available to common shareholders and
holders of OP Units for the six months ended June 30, 2016 of
$2.2 million, or $0.03 per common share and OP Unit, compared to
$(6.1) million, or $(0.37) per common share and OP Unit for the
prior year period.
- NOI from continuing operations increased by 92.98% to $14.0
million for the six months ended June 30, 2016, as compared to
NOI from continuing operations of $7.3 million for the prior year
period.
- Adjusted EBITDA was $10.8 million for the six months ended
June 30, 2016, as compared to $5.3 million of Adjusted EBITDA
for the six months ended June 30, 2015.
Acquisition Activity
- On April 12, 2016, the Company completed its acquisition
of 14 retail shopping centers located in Georgia and South Carolina
(collectively the “A-C Portfolio”) for an aggregate purchase price
of $71 million, paid through a combination of cash, debt and the
issuance of 888,889 common units in the Operating Partnership.
Collectively, the A-C Portfolio total 605,358 square feet in
leaseable space, and were 92% leased as of the acquisition date by
77 primarily retail tenants. Each property is anchored by
either a Bi-Lo, Harris Teeter or Piggly Wiggly grocery store.
Leasing Review
- For the three months ended June 30, 2016, the Company
executed sixteen renewals totaling 76,761 square feet at a
weighted-average increase of $0.36 per square foot, representing an
increase of 3.57% over prior rates.
- For the six months ended June 30, 2016, the Company
executed twenty-six renewals totaling 108,817 square feet at a
weighted-average increase of $0.53 per square foot, representing an
increase of 4.78% over prior rates.
- For the three months ended June 30, 2016, Wheeler signed
nine new leases totaling approximately 25,732 square feet with a
weighted-average rate of $21.76 per square foot.
- For the six months ended June 30, 2016, Wheeler signed
nineteen new leases totaling approximately 44,669 square feet with
a weighted-average rate of $18.48 per square foot.
- Approximately 8.15% of Wheeler’s gross leasable area is subject
to leases that expire during the twelve months ending June 30,
2017. 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, 2016, was 5.92% on a GAAP basis and 2.9% on a cash
basis. The same-store pool comprises the 1.7 million square feet
that the Company owned as of January 1, 2015. Same-store
results were driven by a 54 basis point decline in occupancy to
95.2% at June 30, 2016 and the year-ago period, and 1.6% growth in
rents per square foot.
- Same-store NOI year-over-over growth for the six months ended
June 30, 2016, was 3.39% on a GAAP basis and 2.5% on a cash
basis. Same-store results were driven by a 25 basis point decline
in occupancy at June 30, 2016 and the year-ago period, and
2.0% growth in rents per square foot.
Balance Sheet Summary
- The Company’s cash and cash equivalents were $2.7 million at
June 30, 2016, compared to $10.5 million at December 31,
2015.
- Wheeler’s net investment properties as of June 30, 2016
(including assets held for sale) totaled at $295.0 million, as
compared to $240.0 million as of December 31, 2015.
- The Company’s total debt was $256.7 million (including debt
associated with assets held for sale) at June 30, 2016,
compared to $191.3 million at December 31, 2015. Wheeler’s
weighted-average interest rate and term of its debt (including debt
associated with assets held for sale) was 5.00% and 5.79 years,
respectively, at June 30, 2016, compared to 4.71% and 7.60
years, respectively, at December 31, 2015.
Dividend Distribution
- For the three months ended June 30, 2016, the Company
declared approximately $3.8 million in dividend payments to the
holders of our common stock and unitholders.
- For the three months ended June 30, 2016, the Company
declared approximately $0.4 million in dividends to the holders of
our Series A and Series B preferred stock.
- For the six months ended June 30, 2016, the Company
declared approximately $7.6 million in dividend payments to holders
of our common stock and unitholders.
- For the six months ended June 30, 2016, the Company
declared approximately $0.8 million in dividends to the holders of
our Series A and Series B Stock.
Subsequent Activity
- On July 11, 2016, the Company executed a promissory note
for $4.6 million to refinance the Chesapeake Square
collateralized portion of the KeyBank Credit Agreement totaling
$3.9 million. The new loan matures on August 1, 2026 with
principal due at maturity and bears interest at 4.70%.
- On July 29, 2016, the Company executed a promissory note
for $4.5 million to refinance the Perimeter promissory
note totaling $4.1 million. The new loan matures on August 6,
2026 with principal due at maturity and bears interest at
4.06%.
- On August 2, 2016, the Company utilized cash raised from
the 2016 Series B Preferred Stock Offering described below to pay
down the Lumber River collateralized portion of the KeyBank Credit
Agreement totaling $3.0 million.
- On July 7, 2016 the Company filed shelf registration statement
relating to the potential issuance of up to $50.0 million of our
9.00% Series B Convertible Stock, without par value per share
(“Series B Stock”). On July 21, 2016, the Company entered into an
Equity Distribution Agreement with a third party agent to sell such
securities. As of the date of this filing, the Company has
issued 721,761 shares of Series B Stock in such offering for
approximately $15.3 million and net proceeds of $14.8 million.
2016 Outlook and Guidance
Management will deliver guidance for the third
quarter of 2016 on the earnings call.
Supplemental Information
Further details regarding Wheeler Real Estate
Investment Trust, Inc.’s operations and financials for the period
ended June 30, 2016, 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, gains and
losses from property dispositions and extraordinary items, 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,
non-recurring 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 ‘necessity based’ retail focused
properties; (ii) the Company’s ability to complete future
acquisitions of properties; (iii) the Company's expectation to
maintain and / or increase its historical occupancy rates; (iv) the
Company’s ability to continue sales of the Series B Stock pursuant
to the ATM; (v) the Company’s ability to maintain and/ or increase
rent spreads; (vi) the Company's anticipated positive trajectory
towards dividend coverage in the second half of 2016; (vii)
annualized AFFO Per Share guidance of $0.15-$0.16 for the Second
Quarter 2016; (viii) the anticipated implementation of the
Company’s acquisition strategy; and (ix) 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. 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 |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(unaudited) |
REVENUE: |
|
|
|
|
|
|
|
|
Rental
revenues |
|
$ |
8,455,169 |
|
|
$ |
4,315,375 |
|
|
$ |
15,197,362 |
|
|
$ |
8,104,652 |
|
Asset
management fees |
|
205,357 |
|
|
121,184 |
|
|
460,248 |
|
|
333,482 |
|
Commissions |
|
91,014 |
|
|
111,717 |
|
|
243,860 |
|
|
220,610 |
|
Tenant
reimbursement and other income |
|
2,333,834 |
|
|
1,533,615 |
|
|
4,322,566 |
|
|
2,576,899 |
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
|
11,085,374 |
|
|
|
6,081,891 |
|
|
|
20,224,036 |
|
|
|
11,235,643 |
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Property
operations |
|
2,797,096 |
|
|
1,848,284 |
|
|
5,472,121 |
|
|
3,401,958 |
|
Non-REIT
management and leasing services |
|
265,947 |
|
|
231,777 |
|
|
643,355 |
|
|
601,552 |
|
Depreciation and amortization |
|
5,431,672 |
|
|
3,839,249 |
|
|
10,311,759 |
|
|
6,840,227 |
|
Provision
for credit losses |
|
77,455 |
|
|
54,538 |
|
|
164,981 |
|
|
101,736 |
|
Corporate
general & administrative |
|
2,526,574 |
|
|
3,508,497 |
|
|
4,807,682 |
|
|
5,817,461 |
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
11,098,744 |
|
|
|
9,482,345 |
|
|
|
21,399,898 |
|
|
|
16,762,934 |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(13,370 |
) |
|
(3,400,454 |
) |
|
(1,175,862 |
) |
|
(5,527,291 |
) |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(3,742,213 |
) |
|
(1,979,266 |
) |
|
(6,162,028 |
) |
|
(4,121,985 |
) |
|
|
|
|
|
|
|
|
|
Net Loss from Continuing Operations |
|
(3,755,583 |
) |
|
(5,379,720 |
) |
|
(7,337,890 |
) |
|
(9,649,276 |
) |
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
Income
from discontinued operations |
|
55,824 |
|
|
84,482 |
|
|
76,349 |
|
|
130,849 |
|
Gain on
sales |
|
688,019 |
|
|
— |
|
|
688,019 |
|
|
— |
|
Net Income from Discontinued Operations |
|
743,843 |
|
|
84,482 |
|
|
764,368 |
|
|
130,849 |
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
(3,011,740 |
) |
|
(5,295,238 |
) |
|
(6,573,522 |
) |
|
(9,518,427 |
) |
|
|
|
|
|
|
|
|
|
Less: Net
loss attributable to noncontrolling interests |
|
(312,911 |
) |
|
(440,216 |
) |
|
(645,787 |
) |
|
(902,592 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Attributable to Wheeler REIT |
|
(2,698,829 |
) |
|
(4,855,022 |
) |
|
(5,927,735 |
) |
|
(8,615,835 |
) |
|
|
|
|
|
|
|
|
|
Preferred
stock dividends |
|
(511,299 |
) |
|
(8,334,102 |
) |
|
(1,022,599 |
) |
|
(10,836,325 |
) |
Deemed
dividend related to beneficial conversion feature of preferred
stock |
|
— |
|
|
(59,520,000 |
) |
|
— |
|
|
(59,520,000 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Attributable to Wheeler REIT Common
Shareholders |
|
$ |
(3,210,128 |
) |
|
$ |
(72,709,124 |
) |
|
$ |
(6,950,334 |
) |
|
$ |
(78,972,160 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share from continuing operations (basic and diluted): |
|
$ |
(0.06 |
) |
|
$ |
(4.13 |
) |
|
$ |
(0.11 |
) |
|
$ |
(6.21 |
) |
Income
per share from discontinued operations: |
|
0.01 |
|
— |
|
|
0.01 |
|
|
0.01 |
|
|
|
$ |
(0.05 |
) |
|
$ |
(4.13 |
) |
|
$ |
(0.10 |
) |
|
$ |
(6.20 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average number of shares: |
|
|
|
|
|
|
|
|
Basic and
Diluted |
|
67,284,942 |
|
|
17,594,873 |
|
|
66,778,934 |
|
|
12,727,710 |
|
|
|
|
|
|
|
|
|
|
Dividends
declared per common share |
|
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
0.11 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Condensed Consolidated Balance
Sheet |
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
|
(unaudited) |
|
|
ASSETS: |
|
|
|
|
Investment
properties, net |
|
$ |
294,822,999 |
|
|
$ |
238,764,631 |
|
Cash and
cash equivalents |
|
2,651,557 |
|
|
10,477,576 |
|
Restricted
cash |
|
9,020,723 |
|
|
7,592,984 |
|
Rents and
other tenant receivables, net |
|
3,097,931 |
|
|
3,452,700 |
|
Goodwill |
|
5,485,823 |
|
|
5,485,823 |
|
Assets held
for sale |
|
365,880 |
|
|
1,692,473 |
|
Above market
lease intangibles, net |
|
8,303,799 |
|
|
6,517,529 |
|
Deferred
costs and other assets, net |
|
42,039,200 |
|
|
35,259,526 |
|
|
|
|
|
|
Total Assets |
|
$ |
365,787,912 |
|
|
$ |
309,243,242 |
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
Loans
payable |
|
$ |
248,202,613 |
|
|
$ |
184,629,082 |
|
Liabilities
associated with assets held for sale |
|
1,350,000 |
|
|
1,992,318 |
|
Below market
lease intangible, net |
|
9,307,292 |
|
|
7,721,335 |
|
Accounts
payable, accrued expenses and other liabilities |
|
9,161,674 |
|
|
7,533,769 |
|
Total Liabilities |
|
|
268,021,579 |
|
|
|
201,876,504 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
Series A
preferred stock (no par value, 4,500 shares authorized, 562 shares
issued and outstanding, respectively) |
|
452,971 |
|
|
452,971 |
|
Series B
preferred stock (no par value, 3,000,000 shares authorized, 729,119
shares issued and outstanding, respectively) |
|
17,262,198 |
|
|
17,085,147 |
|
Common
stock ($0.01 par value, 150,000,000 and 75,000,000 shares
authorized, 67,860,281 and 66,259,673 shares issued and
outstanding, respectively) |
|
678,602 |
|
|
662,596 |
|
Additional paid-in capital |
|
222,341,497 |
|
|
220,370,984 |
|
Accumulated deficit |
|
(154,277,513 |
) |
|
(140,306,846 |
) |
Total
Shareholders' Equity |
|
|
86,457,755 |
|
|
|
98,264,852 |
|
|
|
|
|
|
Noncontrolling interests |
|
11,308,578 |
|
|
9,101,886 |
|
|
|
|
|
|
Total Equity |
|
|
97,766,333 |
|
|
|
107,366,738 |
|
|
|
|
|
|
Total Liabilities and Equity |
|
$ |
365,787,912 |
|
|
$ |
309,243,242 |
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Reconciliation of Funds From Operations
(FFO) |
(unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
|
Same Stores |
|
New Stores |
|
Total |
|
Period Over Period Changes |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
$ |
|
% |
Net income (loss) |
|
$ |
(2,366,359 |
) |
|
$ |
(4,192,252 |
) |
|
$ |
(645,381 |
) |
|
$ |
(1,102,986 |
) |
|
$ |
(3,011,740 |
) |
|
$ |
(5,295,238 |
) |
|
$ |
2,283,498 |
|
|
(43.12 |
)% |
Depreciation of real
estate assets from continuing operations |
|
1,851,677 |
|
|
2,489,096 |
|
|
3,579,995 |
|
|
1,350,153 |
|
|
5,431,672 |
|
|
3,839,249 |
|
|
1,592,423 |
|
|
41.48 |
% |
Depreciation of real
estate assets from discontinued operations |
|
— |
|
|
207,448 |
|
|
— |
|
|
28,052 |
|
|
— |
|
|
235,500 |
|
|
(235,500 |
) |
|
(100.00 |
)% |
Depreciation of real
estate assets |
|
1,851,677 |
|
|
2,696,544 |
|
|
3,579,995 |
|
|
1,378,205 |
|
|
5,431,672 |
|
|
4,074,749 |
|
|
1,356,923 |
|
|
33.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
discontinued operations |
|
(688,019 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(688,019 |
) |
|
— |
|
|
(688,019 |
) |
|
— |
% |
FFO |
|
$ |
(1,202,701 |
) |
|
$ |
(1,495,708 |
) |
|
$ |
2,934,614 |
|
|
$ |
275,219 |
|
|
$ |
1,731,913 |
|
|
$ |
(1,220,489 |
) |
|
$ |
2,952,402 |
|
|
(241.90 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
Same Stores |
|
New Stores |
|
Total |
|
Period Over Period Changes |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
$ |
|
% |
Net income (loss) |
|
$ |
(4,981,754 |
) |
|
$ |
(7,734,036 |
) |
|
$ |
(1,591,768 |
) |
|
$ |
(1,784,391 |
) |
|
$ |
(6,573,522 |
) |
|
$ |
(9,518,427 |
) |
|
$ |
2,944,905 |
|
|
30.94 |
% |
Depreciation of real
estate assets from continuing operations |
|
3,823,579 |
|
|
5,051,281 |
|
|
6,488,180 |
|
|
1,788,946 |
|
|
10,311,759 |
|
|
6,840,227 |
|
|
3,471,532 |
|
|
50.75 |
% |
Depreciation of real
estate assets from discontinued operations |
|
— |
|
|
414,903 |
|
|
— |
|
|
56,103 |
|
|
— |
|
|
471,006 |
|
|
(471,006 |
) |
|
(100.00 |
)% |
Depreciation of real
estate assets |
|
3,823,579 |
|
|
5,466,184 |
|
|
6,488,180 |
|
|
1,845,049 |
|
|
10,311,759 |
|
|
7,311,233 |
|
|
3,000,526 |
|
|
41.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
discontinued operations |
|
(688,019 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(688,019 |
) |
|
— |
|
|
(688,019 |
) |
|
— |
% |
FFO |
|
$ |
(1,846,194 |
) |
|
$ |
(2,267,852 |
) |
|
$ |
4,896,412 |
|
|
$ |
60,658 |
|
|
$ |
3,050,218 |
|
|
$ |
(2,207,194 |
) |
|
$ |
5,257,412 |
|
|
238.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries Reconciliation of Adjusted
Funds From Operations
(AFFO)(unaudited) |
|
|
Three Months EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2016 |
|
2015 (3) |
|
2016 |
|
2015 (3) |
Net
(loss) |
|
$ |
(3,011,740 |
) |
|
$ |
(5,295,238 |
) |
|
$ |
(6,573,522 |
) |
|
$ |
(9,518,427 |
) |
Depreciation of real estate assets from continuing operations |
|
5,431,672 |
|
|
3,839,249 |
|
|
10,311,759 |
|
|
6,840,227 |
|
Depreciation of real estate assets from discontinued
operations |
|
— |
|
|
235,500 |
|
|
— |
|
|
471,006 |
|
Depreciation of real estate assets |
|
5,431,672 |
|
|
4,074,749 |
|
|
10,311,759 |
|
|
7,311,233 |
|
Gain
on sale of discontinued operations |
|
(688,019 |
) |
|
— |
|
|
(688,019 |
) |
|
— |
|
FFO |
|
1,731,913 |
|
|
(1,220,489 |
) |
|
3,050,218 |
|
|
(2,207,194 |
) |
Preferred stock dividends |
|
(511,299 |
) |
|
(8,334,102 |
) |
|
(1,022,599 |
) |
|
(10,836,325 |
) |
Preferred stock accretion adjustments |
|
88,526 |
|
|
5,768,361 |
|
|
177,051 |
|
|
6,979,563 |
|
FFO
available to common shareholders and common unitholders |
|
1,309,140 |
|
|
(3,786,230 |
) |
|
2,204,670 |
|
|
(6,063,956 |
) |
Acquisition costs |
|
383,041 |
|
|
740,223 |
|
|
796,351 |
|
|
1,433,739 |
|
Capital related costs |
|
187,699 |
|
|
553,132 |
|
|
249,868 |
|
|
621,650 |
|
Other
non-recurring and non-cash expenses (1) |
|
221,742 |
|
|
327,480 |
|
|
459,202 |
|
|
416,980 |
|
Share-based compensation |
|
260,750 |
|
|
256,300 |
|
|
411,000 |
|
|
301,300 |
|
Straight-line rent |
|
(134,964 |
) |
|
(34,824 |
) |
|
(142,070 |
) |
|
(93,435 |
) |
Loan
cost amortization |
|
645,906 |
|
|
259,050 |
|
|
835,448 |
|
|
745,248 |
|
Above
(below) market lease amortization |
|
650 |
|
|
213,746 |
|
|
72,262 |
|
|
409,475 |
|
Perimeter legal accrual |
|
— |
|
|
124,300 |
|
|
— |
|
|
124,300 |
|
Recurring capital expenditures and tenant improvement reserves |
|
(187,836 |
) |
|
(139,500 |
) |
|
(327,019 |
) |
|
(270,400 |
) |
AFFO |
|
$ |
2,686,128 |
|
|
$ |
(1,486,323 |
) |
|
$ |
4,559,712 |
|
|
$ |
(2,375,099 |
) |
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares |
|
67,284,942 |
|
|
17,594,873 |
|
|
66,778,934 |
|
|
12,727,710 |
|
Weighted Average Common Units |
|
5,644,460 |
|
|
3,695,990 |
|
|
5,173,854 |
|
|
3,618,712 |
|
Total
Common Shares and Units |
|
72,929,402 |
|
|
21,290,863 |
|
|
71,952,788 |
|
|
16,346,422 |
|
FFO
per Common Share and Common Units |
|
$ |
0.02 |
|
|
$ |
(0.18 |
) |
|
$ |
0.03 |
|
|
$ |
(0.37 |
) |
AFFO
per Common Share and Common Units |
|
$ |
0.04 |
|
|
$ |
(0.07 |
) |
|
$ |
0.06 |
|
|
$ |
(0.15 |
) |
Pro
Forma AFFO per Common Share and Common Units (2) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other non-recurring expenses are detailed in "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" included in our June 2016 Quarterly Report on Form
10-Q.(2) Pro forma AFFO assumes the A-C Portfolio acquisition, as
well as all financings, share issuances and cost containment
initiatives, had occurred on April 1, 2016. Additionally, we
excluded all non-recurring expenses detailed in “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” included in our June 2016 Quarterly Report on Form 10-Q
and any additional common stock and common units issued during the
three months ended June 30, 2016 were outstanding for the entire
period. The Pro forma AFFO is being presented solely for purposes
of illustrating the potential impact of these transactions as if
they occurred on April 1, 2016, based on information
currently available to management, and is not necessarily
indicative of what actual results would have been had the
transactions referred to above occurred on April 1, 2016.(3) We
adjusted the 2015 previously reported AFFO to be consistent with
the 2016 AFFO presentation, primarily as it relates to the
treatment of capital expenditures, non-cash costs, and other
non-recurring expenses. Additionally, we did not provide Pro Forma
AFFO per common share and common unit for 2015 as we consider it
not meaningful to the 2016 presentation.
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Reconciliation of Property Net Operating
Income |
(unaudited) |
|
|
|
|
|
|
|
Three Months EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Property revenues |
|
$ |
10,789,003 |
|
|
$ |
5,848,990 |
|
|
$ |
19,519,928 |
|
|
$ |
10,681,551 |
|
Property expenses |
|
2,797,096 |
|
|
1,848,284 |
|
|
5,472,121 |
|
|
3,401,958 |
|
|
|
|
|
|
|
|
|
|
Property Net Operating Income |
|
|
7,991,907 |
|
|
|
4,000,706 |
|
|
|
14,047,807 |
|
|
|
7,279,593 |
|
|
|
|
|
|
|
|
|
|
Asset Management and Commission Revenues |
|
296,371 |
|
|
232,901 |
|
|
704,108 |
|
|
554,092 |
|
|
|
|
|
|
|
|
|
|
Non-REIT management and
leasing services |
|
265,947 |
|
|
231,777 |
|
|
643,355 |
|
|
601,552 |
|
Depreciation and
amortization |
|
5,431,672 |
|
|
3,839,249 |
|
|
10,311,759 |
|
|
6,840,227 |
|
Provision for credit
losses |
|
77,455 |
|
|
54,538 |
|
|
164,981 |
|
|
101,736 |
|
Corporate general &
administrative |
|
2,526,574 |
|
|
3,508,497 |
|
|
4,807,682 |
|
|
5,817,461 |
|
|
|
|
|
|
|
|
|
|
Total Other Operating Expenses |
|
|
8,301,648 |
|
|
|
7,634,061 |
|
|
|
15,927,777 |
|
|
|
13,360,976 |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
3,742,213 |
|
|
1,979,266 |
|
|
6,162,028 |
|
|
4,121,985 |
|
|
|
|
|
|
|
|
|
|
Net Loss from Continuing Operations |
|
(3,755,583 |
) |
|
(5,379,720 |
) |
|
(7,337,890 |
) |
|
(9,649,276 |
) |
Discontinued Operations |
|
|
|
|
|
|
|
|
Income
from operations |
|
55,824 |
|
|
84,482 |
|
|
76,349 |
|
|
130,849 |
|
Gain on
sales |
|
688,019 |
|
|
— |
|
|
688,019 |
|
|
— |
|
Net Income from Discontinued Operations |
|
743,843 |
|
|
84,482 |
|
|
764,368 |
|
|
130,849 |
|
Net Loss |
|
$ |
(3,011,740 |
) |
|
$ |
(5,295,238 |
) |
|
$ |
(6,573,522 |
) |
|
$ |
(9,518,427 |
) |
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries |
Reconciliation of Earnings Before Interest,
Taxes, Depreciation and Amortization - EBITDA |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net
Loss |
|
$ |
(3,011,740 |
) |
|
$ |
(5,295,238 |
) |
|
$ |
(6,573,522 |
) |
|
$ |
(9,518,427 |
) |
Add back: |
Depreciation and
amortization (1) |
|
5,432,322 |
|
|
4,288,495 |
|
|
10,384,021 |
|
|
7,720,708 |
|
|
Interest Expense
(2) |
|
3,761,751 |
|
|
2,217,592 |
|
|
6,203,674 |
|
|
4,596,056 |
|
EBITDA |
|
6,182,333 |
|
|
1,210,849 |
|
|
10,014,173 |
|
|
2,798,337 |
|
Adjustments
for items affecting comparability: |
|
|
|
|
|
|
|
Acquisition costs |
|
383,041 |
|
|
740,223 |
|
|
796,351 |
|
|
1,433,739 |
|
Capital related costs |
|
187,699 |
|
|
553,132 |
|
|
249,868 |
|
|
621,650 |
|
Other non-recurring expenses (3) |
|
221,742 |
|
|
327,480 |
|
|
459,202 |
|
|
416,980 |
|
Gain on sales |
|
(688,019 |
) |
|
— |
|
|
(688,019 |
) |
|
— |
|
|
|
|
$ |
6,286,796 |
|
|
$ |
2,831,684 |
|
|
$ |
10,831,575 |
|
|
$ |
5,270,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes above (below) market lease amortization and amounts
associated with assets held for sale.(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 June 2016 Quarterly Report on Form
10-Q.
CONTACT:
Wheeler Real Estate Investment Trust, Inc.
Wilkes Graham
Chief Financial Officer
(757) 627-9088 / wilkes@whlr.us
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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