Wheeler Real Estate Investment Trust, Inc. Completes the Acquisition of Four Grocery-Anchored Properties Located in Georgia, ...
November 16 2016 - 4:35PM
Consideration paid for three properties included
partnership units of the Company’s operating partnership, priced at
a premium to their 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 four properties, three of
which were previously announced as acquisition targets.
The Company acquired Riverbridge Shopping
Center, a 91,200 square foot Ingles Markets (“Ingles”) grocery
store anchored center located in Carrollton, Georgia. Ingles
expects to add a fuel center in the future and will extend their
lease term by six years until 2026 with the addition. As of
November 15, 2016, the center was 98.5% leased and occupied.
Additionally, the Company acquired Tri-County Plaza located in
Royston, GA and Sangaree Plaza located in Summerville, South
Carolina as a portfolio. Tri-County Plaza was built in 1986 and is
a 67,577 square foot BiLo-anchored community center with 91%
occupancy as of November 10, 2016. Tenants include Maxway, Shoe
Show and Snap Fitness. BiLo recently executed an early five-year
lease extension as part of a planned interior renovation. Sangaree
Plaza is anchored by a BiLo. The 66,948 square foot center is 100%
occupied and BiLo recently executed an early ten-year lease
extension as part of a planned interior remodel. The Company also
acquired Berkley Shopping Center, a 47,945 square foot, Farm Fresh
grocery store anchored property. The shopping center is located in
the historic South Norfolk, Virginia neighborhood of Berkley.
Developed as a public-private partnership in 2005, the shopping
center was 100% leased as of November 10, 2016 with national,
regional and local tenants including a 8,100 square foot Family
Dollar.
Total aggregate acquisition value of the four
properties was approximately $21.9 million, or $80.20 per leasable
square foot, which the Company financed using a combination of
cash, ten year interest-only debt and 343,726 limited partnership
units of the Company’s operating partnership, valued at $2.25 per
unit. The weighted average cap rate on the four assets was
8.3%, and the weighted average loan-to-value and interest rate on
the debt employed was 64% and 4.7%, respectively.
Jon S. Wheeler, Chairman and Chief Executive
Officer of Wheeler, stated, “I am extremely pleased to announce
that we have acquired four of the seven assets we announced in our
pipeline in the September Series D Preferred Stock offering.
We have repeatedly been able to demonstrate our ability to deploy
capital in what we believe to be accretive assets after our
underwriting process. With the addition of Riverbridge
Shopping Center, we are adding our first Ingles Markets grocery
store to the portfolio. Additionally, we acquire our first Farm
Fresh grocery store with the acquisition of Berkley Shopping Center
which is located in our backyard in Norfolk, Virginia. We
remain committed to covering our dividend of $0.21 on an annualized
basis and our recent guidance states that we will cover on a pro
forma basis in the fourth quarter of 2016. We believe the
acquisition of these four assets further demonstrates our
commitment of creating value for our shareholders.”
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 but not limited to, (i) the future generation of
financial returns from the acquisition of ‘necessity based’ retail
focused properties; (ii) the Company’s ability to cover its
dividend of $0.21 annualized on a pro forma basis in the 4th
quarter of 2016; (iii) the anticipated implementation of the
Company’s acquisition strategy; (iv) the Company’s anticipated
ability to produce returns and growth for the Company and its
shareholders; and (v) the Company’s ability to deploy capital
in what it believe to be accretive assets through its underwriting;
and (vi) Ingles current intention to add a fuel center to the
Riverbridge Shopping Center. 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
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