Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“WHLR” or the “Company”) today reported
operating and financial results for the three and six months ended
June 30, 2019.
|
|
Three Months EndedJune 30, |
|
Six MonthsEnded June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Net loss per common share |
|
$ |
(1.10 |
) |
|
$ |
(0.51 |
) |
|
$ |
(1.42 |
) |
|
$ |
(1.08 |
) |
FFO per common share and
common unit |
|
(0.39 |
) |
|
0.20 |
|
|
(0.28 |
) |
|
0.36 |
|
AFFO per common share and
common unit |
|
0.16 |
|
|
0.25 |
|
|
0.27 |
|
|
0.46 |
|
2019 SECOND QUARTER
HIGHLIGHTS
(all comparisons to the same prior year
period unless otherwise noted)
- On April 25, 2019, the Company entered into a First Amendment
to its Amended and Restated Credit Agreement with KeyBank (the
"First Amendment"), which included:-- a $1.0 million principal
payment on the KeyBank Line of Credit and monthly principal
payments of $250 thousand which began on May 1, 2019;-- the
over-advance being waived and replaced the borrowing base
availability with an interest coverage ratio; and-- a reduction of
the line to $27.0 million by July 31, 2019, $7.5 million by
September 30, 2019 with an interest rate increase to Libor plus 350
basis points on August 31, 2019 if the outstanding balance is not
below $11.0 million.As of August 5, 2019, $26.2 million remains on
the KeyBank Line of Credit as a result of the $2.0 million in
principal payments confirmed in the First Amendment and the
refinancing of the Village of Martinsville and Laburnum Square
collateralized portion further reducing the balance by $23.0
million.
- Paid the Bulldog Senior Convertible notes in full through
scheduled principal and interest payments.
- A new grocer tenant, ALDI, began construction of an approximate
20,000 square foot building, which included demolishing an existing
approximate 10,000 square foot outparcel building at JANAF Shopping
Center. As a result, the Company incurred a $331 thousand
write-off.
- The 1,986,600 publicly traded warrants (CUSIP No.: 963025119)
(NASQAQ: WHLRW) exchangeable into 248,325 shares of our common
stock, $0.01 par value per share ("Common Stock") expired on April
29, 2019.
- Recognized a $5.0 million impairment charge on notes receivable
bringing the carrying value to zero with pending legal proceedings
providing additional uncertainty relating to the estimated fair
market value of the Sea Turtle Development ("Sea Turtle"). The
$12.0 million in notes receivable are subordinated to the
construction loans made by the Bank of Arkansas (“BOKF”), totaling
$20.00 million.-- In April 2019, BOKF filed a Verified Complaint in
state court in Beauford County, South Carolina for Sea Turtle’s
default on payment of the BOKF construction loans, and for the
appointment of a receiver, injunctive relief and accounting
records.-- On May 7, 2019, Sea Turtle filed a Chapter 11 Voluntary
Petition for Bankruptcy in the United States Bankruptcy Court for
the District of South Carolina in Charleston. The bankruptcy
petition automatically stayed BOKF’s suit. The pleadings in the
state court action and the bankruptcy action state that Sea Turtle
has been in default on its payments to BOKF since September 2018.
The pleadings further state that the project is $8.00 million over
budget as of August 8, 2018. Sea Turtle has retained a broker to
try and sell the property. There is a possibility that a judicially
approved sale of the property will not bring a price that exceeds
what is owed to BOKF on its construction loans. If a sale is not
approved through the bankruptcy court in 2019, it is expected that
the bankruptcy petition will be dismissed and BOKF will resume its
suit in South Carolina state court, possibly leading to a
foreclosure on the property.
- Recognized a $1.1 million impairment charge on an asset held
for sale, Perimeter Square.
- Net loss attributable to WHLR's Common Stock shareholders of
$10.7 million, or ($1.10) per share.
- Total revenue from continuing operations decreased by 8.32% or
$1.4 million primarily due to the 2018 early termination fees of
$980 thousand associated with the Berkley Center Shopping Center as
well as the revenue declines from the impact of selling
Graystone Crossing, Jenks Plaza, Shoppes at Eagle Harbor and the
Monarch Bank building, approximately $356 thousand.
- Property Net Operating Income ("NOI") from operations decreased
by 11.52% to approximately $10.9 million primarily due to the 2018
early termination fees of $980 thousand associated with the Berkley
Center Shopping Center as well as the NOI declines from the impact
of selling Graystone Crossing, Jenks Plaza, Shoppes at Eagle Harbor
and the Monarch Bank building, approximately $270 thousand.
- Adjusted Funds from Operations ("AFFO") of $0.16 per share of
the Company's Common Stock and common unit ("Common Unit") in our
operating partnership, Wheeler REIT, L.P.
2019 YEAR-TO-DATE
HIGHLIGHTS
- Sold two properties and an undeveloped land parcel for $8.8
million, resulting in a total gain of $1.8 million and net proceeds
of $3.6 million.
- Paid the Revere Term Loan in full with proceeds from the
following sources:-- $323 thousand with proceeds from the sale of
Jenks Plaza;-- $30 thousand in conjunction with the sale of a
1.28-acre parcel at Harbor Pointe;-- $300 thousand in monthly
scheduled principal payments and the remaining $406 thousand
balance and $20 thousand Exit Fee from operating cash flows.
- As of August 5, 2019, paid down the KeyBank Line of Credit to
$26.2 million with proceeds from the following sources: $23.0
million Village of Martinsville and Laburnum Square refinances,
$1.9 million in specific principal payments and $1.0 million in
monthly scheduled principal payments.
- Net loss attributable to WHLR's Common Stock shareholders of
$13.7 million, or ($1.42) per share.
- Total revenue from continuing operations decreased by 5.14% or
$1.7 million primarily due to the 2018 early termination fees of
$1.3 million associated with Berkley Center Shopping Center and
Southeastern Grocers ("SEG") recaptures as well as the revenue
declines from the impact of selling Graystone Crossing, Jenks
Plaza, Shoppes at Eagle Harbor and the Monarch Bank building in
approximate amount of $550 thousand partially offset by 10.15%
increase in property revenues at JANAF.
- Property NOI from operations decreased by 7.37% to
approximately $22.1 million primarily due to the 2018 early
termination fees of $1.3 million associated with Berkley Center
Shopping Center and SEG recaptures as well as the NOI declines from
the impact of selling Graystone Crossing, Jenks Plaza, Shoppes at
Eagle Harbor and the Monarch Bank building in the approximate
amount of $401 thousand.
- AFFO of $0.27 per share of the Company's Common Stock and
Common Unit in our operating partnership, Wheeler REIT, L.P.
SUBSEQUENT EVENTS
- On July 12, 2019, the Company completed the sale of Perimeter
Square for a contract price of $7.2 million, and subsequently
extinguished the associated $6.5 million loans on the
property.
- On August 1, 2019, the Company refinanced the Laburnum Square
collateralized portion of the KeyBank Line of Credit reducing the
line as required by the First Amendment. The executed
promissory note for the Laburnum Square refinance is $7.7 million
at a rate of 4.28%.
BALANCE SHEET
- Cash and cash equivalents totaled $3.9 million at June 30,
2019, compared to $3.5 million at December 31, 2018.
- Total debt was $357.5 million at June 30, 2019 (including debt
associated with assets held for sale), compared to $369.6 million
at December 31, 2018. The decrease of $12.1 million in debt is
primarily a result of:-- $1.1 million Revere Term Loan pay-off;--
$5.8 million in payoffs as a result of asset sales;-- $2.4 million
of additional principal pay-downs on the KeyBank Line of Credit;
and-- regularly scheduled principal payments.
- WHLR's weighted-average interest rate was 4.77% with a term of
4.32 years at June 30, 2019 (including debt associated with assets
held for sale). This compares to an interest rate of 4.84% with a
term of 4.31 years at December 31, 2018.
- The fixed interest rates on the refinances of Village of
Martinsville and Laburnum Square are approximately 62 basis points
below the interest rate at June 30, 2019 on the KeyBank Line of
Credit.
- Net investment properties as of June 30, 2019 totaled at
$429.1 million (including assets held for sale), compared to $441.4
million as of December 31, 2018.
DIVIDENDS
- At June 30, 2019, the Company had accumulated undeclared
dividends of approximately $10.0 million to holders of shares of
our Series A Preferred Stock, Series B Preferred Stock, and Series
D Preferred Stock of which $3.5 million and $7.0 million are
attributable to the three and six months ended June 30, 2019,
respectively.
OPERATIONS AND LEASING
- The Company's real estate portfolio is 89.3% leased as of June
30, 2019.
- Q2-2019 Leasing Activity-- Executed 34 lease renewals totaling
98,796 square feet at a weighted-average increase of $0.49 per
square foot, representing an increase of 3.50% over prior rates.--
Signed 11 new leases totaling approximately 16,018 square feet with
a weighted-average rate of $14.89 per square foot.
- YTD 2019 Leasing Activity-- Executed 62 lease renewals totaling
219,710 square feet at a weighted-average increase of $0.25 per
square foot, representing an increase of 2.29% over prior rates.--
Signed 19 new leases totaling approximately 47,218 square feet with
a weighted-average rate of $13.49 per square foot.
- The Company’s gross leasable area ("GLA"), which is subject to
leases that expire over the next six months, including month-to
month leases increased to approximately 4.17% at June 30, 2019,
compared to 2.50% at June 30, 2018. At June 30, 2019, 39.81%
of this expiring GLA is subject to renewal options.
SAME STORE RESULTS
- Excluding 2018 early termination fees and NOI associated with
sold properties of Graystone Crossing, Jenks Plaza, Shoppes at
Eagle Harbor and the Monarch Bank property, same-store NOI for the
three months ended June 30, 2019 compared to June 30, 2018,
declined by 1.44% and increased by 4.08% on a cash basis. The
same-store pool for the three months ended June 30, 2019, was
comprised of 4.9 million square feet that the Company owned as of
January 1, 2018. Same-store results were driven by a 0.45% decrease
in property revenues, primarily a result of rent modifications to
certain 2018 SEG leases, reduced rent at the three SEG recaptured
and backfilled locations and incremental vacancies. Same Store
property expenses increased 1.93%.
- Excluding 2018 early termination fees and NOI associated with
sold properties of Graystone Crossing, Jenks Plaza, Shoppes at
Eagle Harbor and the Monarch Bank property, same-store NOI for the
six months ended June 30, 2019 compared to June 30, 2018, declined
by 1.98% and 0.04% on a cash basis. The same-store pool for the six
months ended June 30, 2019, was comprised of 4.9 million square
feet that the Company owned as of January 1, 2018. Same-store
results were driven by a 1.02% decrease in property revenues,
primarily a result of rent modifications to certain 2018 SEG
leases, reduced rent at the three SEG recaptured and backfilled
locations and incremental vacancies. Same Store property expenses
increased 1.31%.
ACQUISITIONS
- In April 2019, the Company absorbed an approximately 25,000
square foot outparcel at JANAF as a result of an unlawful detainer
with a delinquent tenant, Mariner Investments, LTD. The
Company inadvertently disclosed the former tenant as Mariner
Finance, LLC in the Form 10-Q for the three months ended March 31,
2019 in error.
DISPOSITIONS
- Sold Jenks Plaza for a contract price of $2.2 million,
generating a gain of $387 thousand and net proceeds of $1.8
million.
- Sold a 1.28-acre portion of an undeveloped land parcel at
Harbor Pointe for a contract price of $550 thousand resulting in
net proceeds of $19 thousand, paying off associated debt and
retaining an approximately 4-acre unleveraged parcel.
- Sold Graystone Crossing for a contract price of $6.0 million,
generating a gain of $1.5 million and net proceeds of $1.7
million.
SUPPLEMENTAL INFORMATIONFurther
details regarding Wheeler Real Estate Investment Trust, Inc.’s
operations and financials for the period ended June 30, 2019,
including a supplemental presentation, are available at
https://ir.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
owning and operating 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.
A copy of Wheeler’s Quarterly Report on Form
10-Q, which includes the Company’s condensed 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.
DEFINITIONSFFO, 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 STATEMENTSThis
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
future generation of financial returns from its portfolio 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.
Mary JensenInvestor Relations(757) 627-9088 /
mjensen@whlr.us
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesCondensed Consolidated
Statements of Operations(in thousands, except
share and per share data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
REVENUE: |
|
|
|
|
|
|
|
Rental revenues |
$ |
15,391 |
|
|
$ |
15,711 |
|
|
$ |
31,161 |
|
|
$ |
31,532 |
|
Asset management fees |
13 |
|
|
47 |
|
|
26 |
|
|
172 |
|
Commissions |
5 |
|
|
36 |
|
|
47 |
|
|
50 |
|
Other revenues |
123 |
|
|
1,147 |
|
|
293 |
|
|
1,480 |
|
Total Revenue |
15,532 |
|
|
16,941 |
|
|
31,527 |
|
|
33,234 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
Property operations |
4,595 |
|
|
4,518 |
|
|
9,321 |
|
|
9,117 |
|
Non-REIT management and leasing services |
1 |
|
|
— |
|
|
24 |
|
|
36 |
|
Depreciation and amortization |
5,287 |
|
|
7,422 |
|
|
11,103 |
|
|
14,898 |
|
Impairment of notes receivable |
5,000 |
|
|
— |
|
|
5,000 |
|
|
— |
|
Impairment of assets held for sale |
1,147 |
|
|
— |
|
|
1,147 |
|
|
— |
|
Corporate general & administrative |
1,380 |
|
|
2,268 |
|
|
3,194 |
|
|
4,776 |
|
Total Operating Expenses |
17,410 |
|
|
14,208 |
|
|
29,789 |
|
|
28,827 |
|
(Loss) gain on disposal of properties |
(331 |
) |
|
— |
|
|
1,508 |
|
|
1,055 |
|
Operating (Loss)
Income |
(2,209 |
) |
|
2,733 |
|
|
3,246 |
|
|
5,462 |
|
Interest income |
— |
|
|
1 |
|
|
1 |
|
|
2 |
|
Interest expense |
(4,947 |
) |
|
(5,180 |
) |
|
(9,740 |
) |
|
(9,757 |
) |
Net Loss from
Continuing Operations Before Income Taxes |
(7,156 |
) |
|
(2,446 |
) |
|
(6,493 |
) |
|
(4,293 |
) |
Income tax expense |
(7 |
) |
|
(17 |
) |
|
(15 |
) |
|
(42 |
) |
Net Loss from
Continuing Operations |
(7,163 |
) |
|
(2,463 |
) |
|
(6,508 |
) |
|
(4,335 |
) |
Income from
Discontinued Operations |
— |
|
|
903 |
|
|
— |
|
|
903 |
|
Net Loss |
(7,163 |
) |
|
(1,560 |
) |
|
(6,508 |
) |
|
(3,432 |
) |
Less: Net loss attributable to noncontrolling interests |
(112 |
) |
|
(35 |
) |
|
(99 |
) |
|
(82 |
) |
Net Loss Attributable
to Wheeler REIT |
(7,051 |
) |
|
(1,525 |
) |
|
(6,409 |
) |
|
(3,350 |
) |
Preferred Stock dividends - declared |
— |
|
|
(3,206 |
) |
|
— |
|
|
(6,413 |
) |
Preferred Stock dividends - undeclared |
(3,658 |
) |
|
— |
|
|
(7,315 |
) |
|
— |
|
Net Loss Attributable
to Wheeler REIT Common Shareholders |
$ |
(10,709 |
) |
|
$ |
(4,731 |
) |
|
$ |
(13,724 |
) |
|
$ |
(9,763 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from continuing operations (basic and diluted) |
$ |
(1.10 |
) |
|
$ |
(0.61 |
) |
|
$ |
(1.42 |
) |
|
$ |
(1.18 |
) |
Income per share from discontinued operations |
— |
|
|
0.10 |
|
|
— |
|
|
0.10 |
|
|
$ |
(1.10 |
) |
|
$ |
(0.51 |
) |
|
$ |
(1.42 |
) |
|
$ |
(1.08 |
) |
|
|
|
|
|
|
|
|
Weighted-average number of shares: |
|
|
|
|
|
|
|
Basic and Diluted |
9,693,271 |
|
|
9,246,683 |
|
|
9,650,000 |
|
|
9,074,506 |
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesCondensed Consolidated
Balance Sheets(in thousands, except par value and
share data)
|
June 30,2019 |
|
December 31,2018 |
|
(unaudited) |
|
|
ASSETS: |
|
|
|
Investment properties, net |
$ |
422,506 |
|
|
$ |
436,006 |
|
Cash and cash equivalents |
3,934 |
|
|
3,544 |
|
Restricted cash |
16,426 |
|
|
14,455 |
|
Rents and other tenant receivables, net |
5,546 |
|
|
5,539 |
|
Notes receivable, net |
— |
|
|
5,000 |
|
Assets held for sale |
6,799 |
|
|
6,118 |
|
Above market lease intangibles, net |
6,136 |
|
|
7,346 |
|
Operating lease right-of-use assets |
11,762 |
|
|
— |
|
Deferred costs and other assets, net |
25,681 |
|
|
30,073 |
|
Total Assets |
$ |
498,790 |
|
|
$ |
508,081 |
|
LIABILITIES: |
|
|
|
Loans payable, net |
$ |
346,558 |
|
|
$ |
360,190 |
|
Liabilities associated with assets held for sale |
6,850 |
|
|
4,520 |
|
Below market lease intangibles, net |
8,576 |
|
|
10,045 |
|
Operating lease liabilities |
11,937 |
|
|
— |
|
Accounts payable, accrued expenses and other liabilities |
10,001 |
|
|
12,116 |
|
Total Liabilities |
383,922 |
|
|
386,871 |
|
Series D
Cumulative Convertible Preferred Stock (no par value, 4,000,000
shares authorized, 3,600,636 shares issued and outstanding; $96.82
million and $91.98 million aggregate liquidation preference,
respectively) |
82,090 |
|
|
76,955 |
|
|
|
|
|
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, 1,875,748 shares issued and outstanding; $46.90 million
aggregate liquidation preference) |
41,044 |
|
|
41,000 |
|
Common Stock ($0.01 par value, 18,750,000 shares authorized,
9,693,271 and 9,511,464 shares issued and outstanding,
respectively) |
97 |
|
|
95 |
|
Additional paid-in capital |
233,861 |
|
|
233,697 |
|
Accumulated deficit |
(244,772 |
) |
|
(233,184 |
) |
Total Shareholders’ Equity |
30,683 |
|
|
42,061 |
|
Noncontrolling interests |
2,095 |
|
|
2,194 |
|
Total Equity |
32,778 |
|
|
44,255 |
|
Total Liabilities and Equity |
$ |
498,790 |
|
|
$ |
508,081 |
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and Subsidiaries Reconciliation
of Funds From Operations (FFO)(unaudited, in
thousands)
|
Three Months Ended June 30, |
|
Same Store |
|
New Store |
|
Total |
|
Period Over PeriodChanges |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
$ |
(7,146 |
) |
|
$ |
(1,486 |
) |
|
$ |
(17 |
) |
|
$ |
(74 |
) |
|
$ |
(7,163 |
) |
|
$ |
(1,560 |
) |
|
$ |
(5,603 |
) |
|
(359.17 |
)% |
Depreciation and amortization
of real estate assets |
4,324 |
|
|
6,104 |
|
|
963 |
|
|
1,318 |
|
|
5,287 |
|
|
7,422 |
|
|
(2,135 |
) |
|
(28.77 |
)% |
Loss on disposal of
properties |
— |
|
|
— |
|
|
331 |
|
|
— |
|
|
331 |
|
|
— |
|
|
331 |
|
|
100.00 |
% |
Impairment of assets held for
sale |
1,147 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,147 |
|
|
— |
|
|
1,147 |
|
|
100.00 |
% |
Gain on disposal of
properties-discontinued operations |
— |
|
|
(903 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(903 |
) |
|
903 |
|
|
100.00 |
% |
FFO |
$ |
(1,675 |
) |
|
$ |
3,715 |
|
|
$ |
1,277 |
|
|
$ |
1,244 |
|
|
$ |
(398 |
) |
|
$ |
4,959 |
|
|
$ |
(5,357 |
) |
|
(108.03 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
Same Store |
|
New Store |
|
Total |
|
Period Over Period Changes |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income |
$ |
(6,513 |
) |
|
$ |
(3,418 |
) |
|
$ |
5 |
|
|
$ |
(14 |
) |
|
$ |
(6,508 |
) |
|
$ |
(3,432 |
) |
|
$ |
(3,076 |
) |
|
(89.63 |
)% |
Depreciation and amortization
of real estate assets |
9,067 |
|
|
12,599 |
|
|
2,036 |
|
|
2,299 |
|
|
11,103 |
|
|
14,898 |
|
|
(3,795 |
) |
|
(25.47 |
)% |
(Gain) Loss on disposal of
properties |
(1,839 |
) |
|
(1,055 |
) |
|
331 |
|
|
— |
|
|
(1,508 |
) |
|
(1,055 |
) |
|
(453 |
) |
|
(42.94 |
)% |
Impairment of assets held for
sale |
1,147 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,147 |
|
|
— |
|
|
1,147 |
|
|
100.00 |
% |
Gain on disposal of
properties-discontinued operations |
— |
|
|
(903 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(903 |
) |
|
903 |
|
|
100.00 |
% |
FFO |
$ |
1,862 |
|
|
$ |
7,223 |
|
|
$ |
2,372 |
|
|
$ |
2,285 |
|
|
$ |
4,234 |
|
|
$ |
9,508 |
|
|
$ |
(5,274 |
) |
|
(55.47 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and Subsidiaries Reconciliation
of Funds From Operations (FFO)(unaudited, in
thousands)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net Loss |
$ |
(7,163 |
) |
|
$ |
(1,560 |
) |
|
$ |
(6,508 |
) |
|
$ |
(3,432 |
) |
Depreciation and amortization
of real estate assets |
5,287 |
|
|
7,422 |
|
|
11,103 |
|
|
14,898 |
|
Loss (Gain) on disposal of
properties |
331 |
|
|
— |
|
|
(1,508 |
) |
|
(1,055 |
) |
Impairment of assets held for
sale |
1,147 |
|
|
— |
|
|
1,147 |
|
|
— |
|
Gain on disposal of
properties-discontinued operations |
— |
|
|
(903 |
) |
|
— |
|
|
(903 |
) |
FFO |
(398 |
) |
|
4,959 |
|
|
4,234 |
|
|
9,508 |
|
Preferred stock
dividends-declared |
— |
|
|
(3,206 |
) |
|
— |
|
|
(6,413 |
) |
Preferred stock
dividends-undeclared |
(3,658 |
) |
|
— |
|
|
(7,315 |
) |
|
— |
|
Preferred stock accretion
adjustments |
171 |
|
|
170 |
|
|
341 |
|
|
340 |
|
FFO available to common
shareholders and common unitholders |
(3,885 |
) |
|
1,923 |
|
|
(2,740 |
) |
|
3,435 |
|
Impairment of notes
receivable |
5,000 |
|
|
— |
|
|
5,000 |
|
|
— |
|
Acquisition and development
costs |
20 |
|
|
257 |
|
|
24 |
|
|
264 |
|
Capital related costs |
62 |
|
|
245 |
|
|
136 |
|
|
298 |
|
Other non-recurring and
non-cash expenses (1) |
2 |
|
|
— |
|
|
26 |
|
|
103 |
|
Share-based compensation |
82 |
|
|
67 |
|
|
172 |
|
|
486 |
|
Straight-line rental revenue,
net straight-line expense |
240 |
|
|
(394 |
) |
|
85 |
|
|
(589 |
) |
Loan cost amortization |
535 |
|
|
678 |
|
|
927 |
|
|
1,057 |
|
(Below) above market lease
amortization |
(194 |
) |
|
(86 |
) |
|
(420 |
) |
|
(108 |
) |
Recurring capital expenditures
and tenant improvement reserves |
(286 |
) |
|
(284 |
) |
|
(570 |
) |
|
(574 |
) |
AFFO |
$ |
1,576 |
|
|
$ |
2,406 |
|
|
$ |
2,640 |
|
|
$ |
4,372 |
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares |
9,693,271 |
|
|
9,246,683 |
|
|
9,650,000 |
|
|
9,074,506 |
|
Weighted Average Common
Units |
235,032 |
|
|
377,491 |
|
|
235,032 |
|
|
502,555 |
|
Total Common Shares and
Units |
9,928,303 |
|
|
9,624,174 |
|
|
9,885,032 |
|
|
9,577,061 |
|
FFO per Common Share and
Common Units |
$ |
(0.39 |
) |
|
$ |
0.20 |
|
|
$ |
(0.28 |
) |
|
$ |
0.36 |
|
AFFO per Common Share and
Common Units |
$ |
0.16 |
|
|
$ |
0.25 |
|
|
$ |
0.27 |
|
|
$ |
0.46 |
|
(1) |
Other non-recurring expenses are described in "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" included in our Quarterly Report on Form 10-Q for the
periods ended June 30, 2019. |
|
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Property
Net Operating Income(unaudited, in
thousands)
|
Three Months Ended June 30, |
|
Same Store |
|
New Store |
|
Total |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
$ |
(7,146 |
) |
|
$ |
(1,486 |
) |
|
$ |
(17 |
) |
|
$ |
(74 |
) |
|
$ |
(7,163 |
) |
|
$ |
(1,560 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations |
— |
|
|
(903 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(903 |
) |
Income tax expense |
7 |
|
|
17 |
|
|
— |
|
|
— |
|
|
7 |
|
|
17 |
|
Interest expense |
4,218 |
|
|
4,432 |
|
|
729 |
|
|
748 |
|
|
4,947 |
|
|
5,180 |
|
Interest income |
— |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
Loss on disposal of properties |
— |
|
|
— |
|
|
331 |
|
|
— |
|
|
331 |
|
|
— |
|
Corporate general & administrative |
1,361 |
|
|
2,223 |
|
|
19 |
|
|
45 |
|
|
1,380 |
|
|
2,268 |
|
Impairment of assets held for sale |
1,147 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,147 |
|
|
— |
|
Impairment of notes receivable |
5,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,000 |
|
|
— |
|
Depreciation and amortization |
4,324 |
|
|
6,104 |
|
|
963 |
|
|
1,318 |
|
|
5,287 |
|
|
7,422 |
|
Non-REIT management and leasing services |
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
Asset management and commission revenues |
(18 |
) |
|
(83 |
) |
|
— |
|
|
— |
|
|
(18 |
) |
|
(83 |
) |
Property Net Operating
Income |
$ |
8,894 |
|
|
$ |
10,303 |
|
|
$ |
2,025 |
|
|
$ |
2,037 |
|
|
$ |
10,919 |
|
|
$ |
12,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property revenues |
$ |
12,674 |
|
|
$ |
14,094 |
|
|
$ |
2,840 |
|
|
$ |
2,764 |
|
|
$ |
15,514 |
|
|
$ |
16,858 |
|
Property expenses |
3,780 |
|
|
3,791 |
|
|
815 |
|
|
727 |
|
|
4,595 |
|
|
4,518 |
|
Property Net Operating
Income |
$ |
8,894 |
|
|
$ |
10,303 |
|
|
$ |
2,025 |
|
|
$ |
2,037 |
|
|
$ |
10,919 |
|
|
$ |
12,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Property
Net Operating Income (Continued)(unaudited, in
thousands)
|
Six Months Ended June 30, |
|
Same Store |
|
New Store |
|
Total |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income |
$ |
(6,513 |
) |
|
$ |
(3,418 |
) |
|
$ |
5 |
|
|
$ |
(14 |
) |
|
$ |
(6,508 |
) |
|
$ |
(3,432 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations |
— |
|
|
(903 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(903 |
) |
Income tax expense |
15 |
|
|
42 |
|
|
— |
|
|
— |
|
|
15 |
|
|
42 |
|
Interest expense |
8,286 |
|
|
8,406 |
|
|
1,454 |
|
|
1,351 |
|
|
9,740 |
|
|
9,757 |
|
Interest income |
(1 |
) |
|
(2 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
|
(2 |
) |
(Gain) Loss on disposal of properties |
(1,839 |
) |
|
(1,055 |
) |
|
331 |
|
|
— |
|
|
(1,508 |
) |
|
(1,055 |
) |
Corporate general & administrative |
3,072 |
|
|
4,722 |
|
|
122 |
|
|
54 |
|
|
3,194 |
|
|
4,776 |
|
Impairment of assets held for sale |
1,147 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,147 |
|
|
— |
|
Impairment of notes receivable |
5,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,000 |
|
|
— |
|
Depreciation and amortization |
9,067 |
|
|
12,599 |
|
|
2,036 |
|
|
2,299 |
|
|
11,103 |
|
|
14,898 |
|
Non-REIT management and leasing services |
24 |
|
|
36 |
|
|
— |
|
|
— |
|
|
24 |
|
|
36 |
|
Asset management and commission revenues |
(73 |
) |
|
(222 |
) |
|
— |
|
|
— |
|
|
(73 |
) |
|
(222 |
) |
Property Net Operating
Income |
$ |
18,185 |
|
|
$ |
20,205 |
|
|
$ |
3,948 |
|
|
$ |
3,690 |
|
|
$ |
22,133 |
|
|
$ |
23,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property revenues |
$ |
25,896 |
|
|
$ |
27,966 |
|
|
$ |
5,558 |
|
|
$ |
5,046 |
|
|
$ |
31,454 |
|
|
$ |
33,012 |
|
Property expenses |
7,711 |
|
|
7,761 |
|
|
1,610 |
|
|
1,356 |
|
|
9,321 |
|
|
9,117 |
|
Property Net Operating
Income |
$ |
18,185 |
|
|
$ |
20,205 |
|
|
$ |
3,948 |
|
|
$ |
3,690 |
|
|
$ |
22,133 |
|
|
$ |
23,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Earnings
Before Interest, Taxes, Depreciation and Amortization -
EBITDA(unaudited, in thousands)
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net
Loss |
$ |
(7,163 |
) |
|
$ |
(1,560 |
) |
|
$ |
(6,508 |
) |
|
$ |
(3,432 |
) |
Add back: |
Depreciation and amortization
(1) |
5,093 |
|
|
7,336 |
|
|
10,683 |
|
|
14,790 |
|
|
Interest Expense (2) |
4,947 |
|
|
5,180 |
|
|
9,740 |
|
|
9,757 |
|
|
Income tax expense |
7 |
|
|
17 |
|
|
15 |
|
|
42 |
|
EBITDA |
2,884 |
|
|
10,973 |
|
|
13,930 |
|
|
21,157 |
|
Adjustments for
items affecting comparability: |
|
|
|
|
|
|
|
|
Acquisition and development
costs |
20 |
|
|
257 |
|
|
24 |
|
|
264 |
|
|
Capital related costs |
62 |
|
|
245 |
|
|
136 |
|
|
298 |
|
|
Other non-recurring and
non-cash expenses (3) |
2 |
|
|
— |
|
|
26 |
|
|
103 |
|
|
Impairment of notes
receivable |
5,000 |
|
|
— |
|
|
5,000 |
|
|
— |
|
|
Impairment of assets held for
sale |
1,147 |
|
|
— |
|
|
1,147 |
|
|
— |
|
|
Loss (Gain) on disposal of
properties |
331 |
|
|
— |
|
|
(1,508 |
) |
|
(1,055 |
) |
|
Gain on disposal of properties
- discontinued operations |
— |
|
|
(903 |
) |
|
— |
|
|
(903 |
) |
Adjusted EBITDA |
|
$ |
9,446 |
|
|
$ |
10,572 |
|
|
$ |
18,755 |
|
|
$ |
19,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes above (below) market lease amortization. |
|
(2) |
Includes loan cost amortization. |
|
(3) |
Other non-recurring expenses are described 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, 2019. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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