Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“Wheeler” or the “Company”) today reported operating
and financial results for its third quarter ended
September 30, 2017 and the nine month period ended
September 30, 2017.
2017 Third Quarter Highlights (all
comparisons to the same prior year period unless otherwise
noted)
- Total revenue from continuing operations increased by 27.6% or
$3.3 million.
- Property Net Operating Income ("NOI") from continuing
operations increased by 34.7% to approximately $10.7 million.
- Adjusted Funds from Operations ("AFFO") of $0.43 per share of
the Company's common stock, $0.01 par value per share ("Common
Stock"), and common unit ("Operating Partnership Unit" or "OP
Unit") in our operating partnership, Wheeler REIT, L.P. (the
"Operating Partnership").
- For the three month period, the Company declared quarterly cash
dividends of approximately $0.34 per share of Common Stock and OP
Unit. On an annualized basis, this amounted to a dividend of $1.44
per share of Common Stock and OP Unit, given the first quarter
dividend of $0.42 per share of Common Stock and OP Unit or a 12.5%
dividend yield based on the September 30, 2017 closing price
of $11.55 per share.
- Approximately $469 thousand in lease termination fees primarily
as a result of the early closure of BI-LO at Shoppes at Myrtle
Park, effective September 30, 2017.
- Average rental rate increase on renewals signed during the
quarter was 5.78%.
2017 Year-to-Date Highlights (all
comparisons to prior year unless otherwise noted)
- Total revenue from continuing operations increased by 37.7% or
$12.1 million.
- NOI from continuing operations increased by 39.7% to
approximately $30.8 million.
- AFFO of $1.13 per share of Common Stock and OP Unit.
- Average rental rate increase on renewals signed during the year
was 3.13%.
- Completed sales of discontinued operations and assets held for
sale resulting in a total gain of $1.5 million.
Jon S. Wheeler, Chairman and Chief Executive Officer, commented,
"I am pleased to report AFFO of $0.43 per share, achieving the
higher end of guidance for the third quarter. We remain
committed to maximizing shareholder value as we efficiently operate
our portfolio of assets in secondary and tertiary markets,
diversify our tenant base and pursue opportunities to strengthen
our balance sheet through strategic refinancings.”
2017 Third Quarter Financial
Review
- Total revenue from continuing operations increased by
approximately 27.6% to $15.2 million for the three months ended
September 30, 2017, compared with total revenue from
continuing operations of $11.9 million for the same prior year
period.
- Net loss attributable to Common Stock shareholders was $4.6
million for the three months ended September 30, 2017, or
$0.52 per basic and diluted share, compared to a net loss of $2.8
million, or $0.32 per basic and diluted share, for the same prior
year period.
- The changes in net loss were primarily due to the incremental
NOI derived from the nine retail property acquisitions occurring
subsequent to September 30, 2016 along with lower general and
administrative expenses. These amounts were partially offset by
preferred stock dividends and additional depreciation,
amortization, and interest expense resulting from the nine retail
property acquisitions that occurred during the fourth quarter of
2016.
- Wheeler reported Funds From Operations ("FFO") available to
Common Stock shareholders and holders of OP Units of $3.3 million
for the three months ended September 30, 2017, or $0.35 per
share of Common Stock and OP Unit, compared to $2.2 million, or
$0.24 per share of Common Stock and OP Unit for the same prior year
period.
- AFFO was $4.0 million for the three months ended
September 30, 2017, or $0.43 per share of Common Stock and OP
Unit, compared to AFFO of $2.7 million, or $0.29 per share of
Common Stock and OP Unit for the same prior year period.
- NOI from continuing operations increased by 34.7% to $10.7
million for the three months ended September 30, 2017, as
compared to NOI from continuing operations of $8.0 million for the
same prior year period.
- Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA") was $10.3 million for the three
months ended September 30, 2017, as compared to $7.2 million
of Adjusted EBITDA for the same prior year period.
- The Company recorded $363 thousand in interest income on notes
receivable and $155 thousand in development fees for the three
months ended September 30, 2017 attributable to Sea Turtle
Marketplace ("Sea Turtle Development").
2017 Year-to-Date Financial
Review
- Total revenue from continuing operations increased by
approximately 37.7% to $44.2 million for the nine months ended
September 30, 2017, compared with total revenue from
continuing operations of $32.1 million for the same prior year
period.
- Net loss attributable to Common Stock shareholders was $11.4
million for the nine months ended September 30, 2017, or $1.32
per basic and diluted share, compared to a net loss of $9.7
million, or $1.16 per basic and diluted share, for the same prior
year period.
- The decrease in net loss was primarily due to the incremental
full period NOI derived from the twenty-three retail property
acquisitions occurring during 2016, $1.5 million gain on the sale
of the Ruby Tuesday's and Outback properties at Pierpont Shopping
Center, $1.0 million net gain on sale of the Carolina Place land
parcel and the Rivergate Steak n' Shake outparcel and lower general
and administrative expenses. These amounts were partially offset by
preferred stock dividends and additional depreciation,
amortization, and interest expense resulting from the twenty-three
retail property acquisitions that occurred during 2016.
- Wheeler reported FFO available to Common Stock shareholders and
holders of OP Units of $7.0 million for the nine months ended
September 30, 2017, or $0.75 per share of Common Stock and OP
Unit, compared to $4.4 million, or $0.49 per share of Common Stock
and OP Unit for the same prior year period.
- AFFO was $10.6 million for the nine months ended
September 30, 2017, or $1.13 per share of Common Stock and OP
Unit, compared to AFFO of $7.2 million, or $0.80 per share of
Common Stock and OP Unit for the same prior year period.
- NOI from continuing operations increased by 39.7% to $30.8
million for the nine months ended September 30, 2017, as
compared to NOI from continuing operations of $22.0 million for the
same prior year period.
- Adjusted EBITDA was $29.0 million for the nine months ended
September 30, 2017, as compared to $18.1 million of Adjusted
EBITDA for the same prior year period.
- The Company recorded $1.1 million in interest income on notes
receivable and $454 thousand in development fees for the nine
months ended September 30, 2017 attributable to Sea Turtle
Development.
Leasing Review
- For the three months ended September 30, 2017, the Company
executed 34 lease renewals totaling 205,099 square feet at a
weighted-average increase of $0.50 per square foot, representing an
increase of 5.78% over prior rates.
- For the nine months ended September 30, 2017, the Company
executed 90 lease renewals totaling 492,963 square feet at a
weighted-average increase of $0.27 per square foot, representing an
increase of 3.13% over prior rates. In December 2016, at the time
of the Village of Martinsville acquisition, a decrease in rent was
anticipated for the 23,523 square foot space occupied by Office
Max. The renewal occurred during the nine months ended
September 30, 2017 at a premium to the Company's underwritten
rental rate at the time of acquisition. If adjusted to
exclude the Office Max renewal the weighted-average increase on
renewals for the nine months ended September 30, 2017 would total
$0.36 per square foot, representing an increase of 4.15% over prior
rates.
- For the three months ended September 30, 2017, Wheeler
signed 12 new leases totaling approximately 30,364 square feet with
a weighted-average rate of $10.98 per square foot.
- For the nine months ended September 30, 2017, Wheeler
signed 44 new leases totaling approximately 118,435 square feet
with a weighted-average rate of $12.92 per square foot.
- Approximately 1.9% of Wheeler’s gross leasable area ("GLA") is
subject to leases that expire during the three months ending
December 31, 2017. Of the GLA expiring during the three months
ending December 31, 2017, 30.4% have options to renew.
- Same-store NOI year-over-year growth for the three months ended
September 30, 2017 was 1.0% on a GAAP basis and (0.9)% on a
cash basis. The same-store pool comprises the 3.2 million square
feet that the Company owned as of January 1, 2016. Same-store
results were driven by a 0.5% increase in property revenues
primarily and a decrease of 0.8% in property operating expenses as
a result of lower insurance and ground landscaping costs partially
offset by higher real estate taxes.
- Same-store NOI year-over-year growth for the nine months ended
September 30, 2017 was (0.7)% on a GAAP basis and (2.3)% on a
cash basis. The same-store pool comprises the 3.2 million square
feet that the Company owned as of January 1, 2016. Same-store
results were driven by a decrease of 0.6% in property revenues
primarily resulting from the closure of Career Point Business
School while property expenses remained relatively flat.
- The Company's leased percentage is 93.5% of GLA at
September 30, 2017, including leases executed through October
4, 2017.
- In September 2017, the Company modified leases with two anchor
tenants. The lease modifications include a reduction of lease
term from 2028 to 2023 on 34,264 square feet and no change in the
2018 lease expiration term on 33,218 square feet. The overall
weighted average base rent reduction is $5.59 per square
foot.
Balance Sheet Summary
- The Company’s cash and cash equivalents were $5.7 million at
September 30, 2017, compared to $4.9 million at
December 31, 2016.
- Wheeler’s net investment properties as of September 30,
2017 (including assets held for sale) totaled at $383.9 million, as
compared to $389.2 million as of December 31, 2016.
- The Company’s total debt was $312.8 million at
September 30, 2017, compared to $315.0 million at
December 31, 2016 (including debt associated with assets held
for sale). Wheeler’s weighted-average interest rate and term of its
debt was 4.5% and 4.8 years, respectively, at
September 30, 2017, compared to 4.3% and 5.55 years (including
debt associated with assets held for sale), respectively, at
December 31, 2016.
- On August 29, 2017, the Company amended the Walnut Hill Plaza
promissory note for $3.90 million. The amended loan matures in
September 2022 with monthly interest only payments through August
2018 at which time monthly principal and interest payments of
$26,850 begin based on a 20 year amortization.
- On September 16, 2017, the Company extended the $3.00 million
bank line of credit to December 15,
2017.
Dividend Distribution
- For the three months ended September 30, 2017, the Company
declared approximately $3.2 million in dividend payments to the
holders of shares of our Common Stock and OP Units.
- For the three months ended September 30, 2017, the Company
declared approximately $2.3 million in dividend payments to the
holders of shares of our Series A, Series B, and Series D preferred
stock.
- For the nine months ended September 30, 2017, the Company
declared approximately $10.3 million in dividend payments to the
holders of shares of our Common Stock and OP Units.
- For the nine months ended September 30, 2017, the Company
declared approximately $6.9 million in dividend payments to the
holders of our Series A, Series B, and Series D preferred
stock.
Subsequent Activity
- On October 6, 2017, the Company executed a Fourth Amendment
(the "Fourth Amendment") to its Senior Secured Revolving Credit
Facility (the "Facility") with KeyBank. The Fourth Amendment
provides for a sixty-day extension from October 7, 2017 to December
6, 2017 upon which the $75 million total commitment on the Facility
decreases to $50 million.
- The Company has executed a term sheet and commitment letter
with KeyBank to (i) extend the maturity date of its Facility by two
years, (ii) increase the accordion feature to $150 million from
$100 million, and (iii) extended the date by which the Company must
repay a portion of current outstanding balances until July 1,
2018. After July 1, 2018, KeyBank’s go-forward commitment to
the Facility will total $52.5 million. The executed Term Sheet also
provides the Company with the ability to extend the Facility up to
one additional 12-month period, subject to certain customary
conditions. Terms of the amendment to the Facility, including
the applicable interest rate of LIBOR + 250 bps on borrowings, are
largely consistent with current terms. Closing of the
amendment to the Facility is subject to customary closing
conditions for a facility of this type.
- In November 2017, the BI-LO at Lake Greenwood and Darien
exercised their options extending their leases to 2025.
Fourth Quarter 2017 Outlook and Guidance
Management is reaffirming full-year 2017 AFFO per share guidance
of $1.48-$1.53 and will discuss further details on the earnings
conference call (November 9, 2017) at 10:00 AM ET.
Conference Call Dial-in and Webcast
Information:
The dial-in numbers are:
Live Participant Dial-In (Toll-Free): 877-407-3101
Live Participant Dial-In (International): 201-493-6789
The conference call will also be webcast. To listen to the call,
please go to the Investor Relations section of Wheeler’s website
at
www.whlr.us, or click on the following link:
http://whlr.equisolvewebcast.com/q3-2017.
Supplemental Information
Further details regarding Wheeler Real Estate Investment Trust,
Inc.’s operations and financials for the period ended September 30,
2017, 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 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 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
retail focused properties; (ii) the Company’s ability to complete
future acquisitions of properties; (iii) the Company’s ability to
strengthen its balance sheet through strategic refinancing,
diversification of its tenant base and efficient operation of its
portfolio; (iv) the Company’s ability to amend the terms of the
Facility with KeyBank and close on the Facility amendment; and (v)
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. In addition, this press release
states that the Company’s quarterly dividend rate on the Company’s
common stock is $0.34 per share. A possible implication of this
statement is that the Company will continuously pay quarterly
dividends on the Company’s common stock of $0.34 per share. The
Company’s dividend rates are set and may be reset from time to time
by its Board of Directors. The Company’s Board of Directors will
consider many factors when setting dividend rates, including the
Company’s historical and projected income, normalized funds from
operations, the then current and expected needs and availability of
cash to pay the Company’s obligations, distributions which may be
required to be paid to maintain the Company’s tax status as a real
estate investment trust and other factors deemed relevant by the
Board of Directors in its discretion. Accordingly, future dividend
rates may be increased or decreased and there is no assurance as to
the rate at which future dividends will be paid. 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.
CONTACT:
Wheeler Real Estate Investment Trust,
Inc.
Wilkes GrahamChief Financial Officer(757) 627-9088 /
wilkes@whlr.us
Laura NguyenDirector of Investor Relations(757)
627-9088 / laura@whlr.us
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesCondensed Consolidated
Statements of Operations(unaudited, in thousands,
except per share data)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
REVENUE: |
|
|
|
|
|
|
|
Rental
revenues |
$ |
11,109 |
|
|
$ |
8,591 |
|
|
$ |
33,265 |
|
|
$ |
23,788 |
|
Asset
management fees |
145 |
|
|
163 |
|
|
807 |
|
|
623 |
|
Commissions |
449 |
|
|
590 |
|
|
758 |
|
|
834 |
|
Tenant
reimbursements |
2,711 |
|
|
2,334 |
|
|
8,127 |
|
|
6,500 |
|
Development and other revenues |
784 |
|
|
233 |
|
|
1,282 |
|
|
388 |
|
Total Revenue |
15,198 |
|
|
11,911 |
|
|
44,239 |
|
|
32,133 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
Property
operations |
3,726 |
|
|
3,027 |
|
|
11,467 |
|
|
8,499 |
|
Non-REIT
management and leasing services |
618 |
|
|
696 |
|
|
1,525 |
|
|
1,352 |
|
Depreciation and amortization |
7,746 |
|
|
4,994 |
|
|
20,455 |
|
|
15,306 |
|
Provision
for credit losses |
23 |
|
|
31 |
|
|
443 |
|
|
196 |
|
Corporate
general & administrative |
1,306 |
|
|
1,497 |
|
|
4,855 |
|
|
6,291 |
|
Total Operating Expenses |
13,419 |
|
|
10,245 |
|
|
38,745 |
|
|
31,644 |
|
Operating
Income |
1,779 |
|
|
1,666 |
|
|
5,494 |
|
|
489 |
|
(Loss)
gain on disposal of properties |
(1 |
) |
|
— |
|
|
1,021 |
|
|
— |
|
Interest
income |
364 |
|
|
299 |
|
|
1,080 |
|
|
301 |
|
Interest
expense |
(4,250 |
) |
|
(3,639 |
) |
|
(12,997 |
) |
|
(9,801 |
) |
Net Loss from
Continuing Operations Before Income Taxes |
(2,108 |
) |
|
(1,674 |
) |
|
(5,402 |
) |
|
(9,011 |
) |
Income
tax expense |
(65 |
) |
|
— |
|
|
(175 |
) |
|
— |
|
Net Loss from
Continuing Operations |
(2,173 |
) |
|
(1,674 |
) |
|
(5,577 |
) |
|
(9,011 |
) |
Discontinued
Operations |
|
|
|
|
|
|
|
Income
from discontinued operations |
— |
|
|
39 |
|
|
16 |
|
|
115 |
|
Gain on
disposal of properties |
— |
|
|
1 |
|
|
1,502 |
|
|
689 |
|
Net Income from
Discontinued Operations |
— |
|
|
40 |
|
|
1,518 |
|
|
804 |
|
Net
Loss |
(2,173 |
) |
|
(1,634 |
) |
|
(4,059 |
) |
|
(8,207 |
) |
Less: Net
loss attributable to noncontrolling interests |
(111 |
) |
|
(122 |
) |
|
(165 |
) |
|
(768 |
) |
Net Loss
Attributable to Wheeler REIT |
(2,062 |
) |
|
(1,512 |
) |
|
(3,894 |
) |
|
(7,439 |
) |
Preferred
stock dividends |
(2,496 |
) |
|
(1,240 |
) |
|
(7,473 |
) |
|
(2,263 |
) |
Net Loss
Attributable to Wheeler REIT
CommonShareholders |
$ |
(4,558 |
) |
|
$ |
(2,752 |
) |
|
$ |
(11,367 |
) |
|
$ |
(9,702 |
) |
|
|
|
|
|
|
|
|
Loss per
share from continuing operations (basic and diluted) |
$ |
(0.52 |
) |
|
$ |
(0.32 |
) |
|
$ |
(1.48 |
) |
|
$ |
(1.25 |
) |
Income
per share from discontinued operations |
— |
|
|
— |
|
|
0.16 |
|
|
0.09 |
|
|
$ |
(0.52 |
) |
|
$ |
(0.32 |
) |
|
$ |
(1.32 |
) |
|
$ |
(1.16 |
) |
Weighted-average number of shares: |
|
|
|
|
|
|
|
Basic and Diluted |
8,692,543 |
|
|
8,487,438 |
|
|
8,625,523 |
|
|
8,394,398 |
|
Dividends declared per common share |
$ |
0.34 |
|
|
$ |
0.42 |
|
|
$ |
1.10 |
|
|
$ |
1.26 |
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesCondensed Consolidated
Balance Sheets(in thousands, except par value and
share data)
|
September 30, 2017 |
|
December 31, 2016 |
|
(unaudited) |
|
|
ASSETS: |
|
|
|
Investment properties, net |
$ |
383,861 |
|
|
$ |
388,880 |
|
Cash and
cash equivalents |
5,663 |
|
|
4,863 |
|
Restricted cash |
9,625 |
|
|
9,652 |
|
Rents and
other tenant receivables, net |
5,108 |
|
|
3,984 |
|
Related
party receivables |
2,322 |
|
|
1,456 |
|
Notes
receivable |
12,000 |
|
|
12,000 |
|
Goodwill |
5,486 |
|
|
5,486 |
|
Assets
held for sale |
— |
|
|
366 |
|
Above
market lease intangible, net |
9,521 |
|
|
12,962 |
|
Deferred
costs and other assets, net |
37,477 |
|
|
49,397 |
|
Total Assets |
$ |
471,063 |
|
|
$ |
489,046 |
|
LIABILITIES: |
|
|
|
Loans
payable, net |
$ |
306,962 |
|
|
$ |
305,973 |
|
Liabilities associated with assets held for sale |
— |
|
|
1,350 |
|
Below
market lease intangible, net |
10,356 |
|
|
12,680 |
|
Accounts
payable, accrued expenses and other liabilities |
10,307 |
|
|
7,735 |
|
Dividends
payable |
5,478 |
|
|
3,586 |
|
Total Liabilities |
333,103 |
|
|
331,324 |
|
Commitments and
contingencies |
|
|
|
Series D Cumulative
Convertible Preferred Stock (no par value, 4,000,000 shares
authorized, 2,237,000 shares issued and outstanding; $55.93 million
aggregate liquidation preference) |
53,052 |
|
|
52,530 |
|
|
|
|
|
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,
1,875,848 and 1,871,244 shares issued and outstanding,
respectively; $46.90 million and $46.78 million aggregate
liquidation preference, respectively) |
40,893 |
|
|
40,733 |
|
Common
Stock ($0.01 par value, 18,750,000 shares authorized, 8,730,859 and
8,503,819 shares issued and outstanding, respectively) |
87 |
|
|
85 |
|
Additional paid-in capital |
226,864 |
|
|
223,939 |
|
Accumulated deficit |
(191,256 |
) |
|
(170,377 |
) |
Total Shareholders’ Equity |
77,041 |
|
|
94,833 |
|
Noncontrolling interests |
7,867 |
|
|
10,359 |
|
Total Equity |
84,908 |
|
|
105,192 |
|
Total Liabilities and Equity |
$ |
471,063 |
|
|
$ |
489,046 |
|
Wheeler Real Estate Investment Trust,
Inc. and Subsidiaries Reconciliation
of Funds From Operations (FFO)(unaudited, in
thousands)
|
Three Months Ended September 30, |
|
Same Stores |
|
New Stores |
|
Total |
|
Period Over PeriodChanges |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
$ |
|
% |
Net Loss |
$ |
(587 |
) |
|
$ |
(1,422 |
) |
|
$ |
(1,586 |
) |
|
$ |
(212 |
) |
|
$ |
(2,173 |
) |
|
$ |
(1,634 |
) |
|
$ |
(539 |
) |
|
(32.99 |
)% |
Depreciation and
amortization of real estate assets |
3,612 |
|
|
4,064 |
|
|
4,134 |
|
|
930 |
|
|
7,746 |
|
|
4,994 |
|
|
2,752 |
|
|
55.11 |
% |
Loss on disposal of
properties |
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
|
— |
% |
Gain on disposal of
properties-discontinued operations |
— |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
1 |
|
|
100.00 |
% |
FFO |
$ |
3,026 |
|
|
$ |
2,641 |
|
|
$ |
2,548 |
|
|
$ |
718 |
|
|
$ |
5,574 |
|
|
$ |
3,359 |
|
|
$ |
2,215 |
|
|
65.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
Same Stores |
|
New Stores |
|
Total |
|
Period Over PeriodChanges |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
$ |
|
% |
Net Loss |
$ |
(2,350 |
) |
|
$ |
(6,844 |
) |
|
$ |
(1,709 |
) |
|
$ |
(1,363 |
) |
|
$ |
(4,059 |
) |
|
$ |
(8,207 |
) |
|
$ |
4,148 |
|
|
50.54 |
% |
Depreciation and
amortization of real estate assets |
11,269 |
|
|
13,414 |
|
|
9,186 |
|
|
1,892 |
|
|
20,455 |
|
|
15,306 |
|
|
5,149 |
|
|
33.64 |
% |
Loss (gain) on disposal
of properties |
12 |
|
|
— |
|
|
(1,033 |
) |
|
— |
|
|
(1,021 |
) |
|
— |
|
|
(1,021 |
) |
|
— |
% |
Gain on disposal of
properties-discontinued operations |
(1,502 |
) |
|
(689 |
) |
|
— |
|
|
— |
|
|
(1,502 |
) |
|
(689 |
) |
|
(813 |
) |
|
(118.00 |
)% |
FFO |
$ |
7,429 |
|
|
$ |
5,881 |
|
|
$ |
6,444 |
|
|
$ |
529 |
|
|
$ |
13,873 |
|
|
$ |
6,410 |
|
|
$ |
7,463 |
|
|
116.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries Reconciliation of Adjusted
Funds From Operations (AFFO)(unaudited, in
thousands, except per share data) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net Loss |
$ |
(2,173 |
) |
|
$ |
(1,634 |
) |
|
$ |
(4,059 |
) |
|
$ |
(8,207 |
) |
Depreciation and
amortization of real estate assets |
7,746 |
|
|
4,994 |
|
|
20,455 |
|
|
15,306 |
|
Loss (gain) on disposal
of properties |
1 |
|
|
— |
|
|
(1,021 |
) |
|
— |
|
Gain on disposal of
properties-discontinued operations |
— |
|
|
(1 |
) |
|
(1,502 |
) |
|
(689 |
) |
FFO |
5,574 |
|
|
3,359 |
|
|
13,873 |
|
|
6,410 |
|
Preferred stock
dividends |
(2,496 |
) |
|
(1,240 |
) |
|
(7,473 |
) |
|
(2,263 |
) |
Preferred stock
accretion adjustments |
205 |
|
|
78 |
|
|
605 |
|
|
255 |
|
FFO available to common
shareholders and common unitholders |
3,283 |
|
|
2,197 |
|
|
7,005 |
|
|
4,402 |
|
Acquisition costs |
233 |
|
|
118 |
|
|
832 |
|
|
914 |
|
Capital related
costs |
82 |
|
|
61 |
|
|
468 |
|
|
311 |
|
Other non-recurring and
non-cash expenses (1) |
47 |
|
|
47 |
|
|
177 |
|
|
506 |
|
Share-based
compensation |
134 |
|
|
171 |
|
|
735 |
|
|
582 |
|
Straight-line rent |
(162 |
) |
|
(81 |
) |
|
(566 |
) |
|
(223 |
) |
Loan cost
amortization |
682 |
|
|
629 |
|
|
2,509 |
|
|
1,464 |
|
Accrued interest
income |
(121 |
) |
|
(294 |
) |
|
(359 |
) |
|
(294 |
) |
Above (below) market
lease amortization |
65 |
|
|
(3 |
) |
|
448 |
|
|
69 |
|
Recurring capital
expenditures and tenant improvement reserves |
(245 |
) |
|
(188 |
) |
|
(696 |
) |
|
(514 |
) |
AFFO |
$ |
3,998 |
|
|
$ |
2,657 |
|
|
$ |
10,553 |
|
|
$ |
7,217 |
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares |
8,692,543 |
|
|
8,487,438 |
|
|
8,625,523 |
|
|
8,394,398 |
|
Weighted Average Common
Units |
679,820 |
|
|
718,989 |
|
|
723,269 |
|
|
670,993 |
|
Total Common Shares and
Units |
9,372,363 |
|
|
9,206,427 |
|
|
9,348,792 |
|
|
9,065,391 |
|
FFO per Common Share
and Common Units |
$ |
0.35 |
|
|
$ |
0.24 |
|
|
$ |
0.75 |
|
|
$ |
0.49 |
|
AFFO per Common Share
and Common Units |
$ |
0.43 |
|
|
$ |
0.29 |
|
|
$ |
1.13 |
|
|
$ |
0.80 |
|
(1) Other non-recurring expenses are detailed 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 September 30, 2017.
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Property
Net Operating Income(unaudited, in
thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Property Revenues |
$ |
14,449 |
|
|
$ |
10,989 |
|
|
$ |
42,220 |
|
|
$ |
30,507 |
|
Property Expenses |
3,726 |
|
|
3,027 |
|
|
11,467 |
|
|
8,499 |
|
Property
Net Operating Income |
10,723 |
|
|
7,962 |
|
|
30,753 |
|
|
22,008 |
|
Asset Management and
Commission Revenue |
594 |
|
|
753 |
|
|
1,565 |
|
|
1,457 |
|
Development income |
155 |
|
|
169 |
|
|
454 |
|
|
169 |
|
Other
Income |
749 |
|
|
922 |
|
|
2,019 |
|
|
1,626 |
|
Non-REIT management and
leasing services |
618 |
|
|
696 |
|
|
1,525 |
|
|
1,352 |
|
Depreciation and
amortization |
7,746 |
|
|
4,994 |
|
|
20,455 |
|
|
15,306 |
|
Provision for credit
losses |
23 |
|
|
31 |
|
|
443 |
|
|
196 |
|
Corporate general &
administrative |
1,306 |
|
|
1,497 |
|
|
4,855 |
|
|
6,291 |
|
Total
Other Operating Expenses |
9,693 |
|
|
7,218 |
|
|
27,278 |
|
|
23,145 |
|
(Loss) gain on disposal
of properties |
(1 |
) |
|
— |
|
|
1,021 |
|
|
— |
|
Interest income |
364 |
|
|
299 |
|
|
1,080 |
|
|
301 |
|
Interest expense |
(4,250 |
) |
|
(3,639 |
) |
|
(12,997 |
) |
|
(9,801 |
) |
Net Loss from
Continuing Operations Before Income Taxes |
(2,108 |
) |
|
(1,674 |
) |
|
(5,402 |
) |
|
(9,011 |
) |
Income tax expense |
(65 |
) |
|
— |
|
|
(175 |
) |
|
— |
|
Net Loss from
Continuing Operations |
(2,173 |
) |
|
(1,674 |
) |
|
(5,577 |
) |
|
(9,011 |
) |
Discontinued
Operations |
|
|
|
|
|
|
|
Income
from operations |
— |
|
|
39 |
|
|
16 |
|
|
115 |
|
Gain on
disposal of properties |
— |
|
|
1 |
|
|
1,502 |
|
|
689 |
|
Net Income from
Discontinued Operations |
— |
|
|
40 |
|
|
1,518 |
|
|
804 |
|
Net
Loss |
$ |
(2,173 |
) |
|
$ |
(1,634 |
) |
|
$ |
(4,059 |
) |
|
$ |
(8,207 |
) |
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Earnings
Before Interest, Taxes, Depreciation and Amortization -
EBITDA(unaudited, in thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net
Loss |
$ |
(2,173 |
) |
|
$ |
(1,634 |
) |
|
$ |
(4,059 |
) |
|
$ |
(8,207 |
) |
Add back: |
Depreciation and
amortization (1) |
7,811 |
|
|
4,991 |
|
|
20,903 |
|
|
15,375 |
|
|
Interest Expense
(2) |
4,250 |
|
3,653 |
|
13,006 |
|
9,857 |
|
Income taxes |
65 |
|
|
— |
|
|
175 |
|
|
— |
|
EBITDA |
9,953 |
|
7,010 |
|
|
30,025 |
|
17,025 |
|
Adjustments
for items affecting comparability: |
|
|
|
|
|
|
|
|
Acquisition costs |
233 |
|
|
118 |
|
|
832 |
|
|
914 |
|
|
Capital related
costs |
82 |
|
|
61 |
|
|
468 |
|
|
311 |
|
|
Other non-recurring
expenses (3) |
47 |
|
|
47 |
|
|
177 |
|
|
506 |
|
|
Loss (gain) on disposal
of properties |
1 |
|
|
— |
|
|
(1,021 |
) |
|
— |
|
|
Gain on disposal of
properties-discontinued operations |
— |
|
|
(1 |
) |
|
(1,502 |
) |
|
(689 |
) |
Adjusted
EBITDA |
$ |
10,316 |
|
|
$ |
7,235 |
|
|
$ |
28,979 |
|
|
$ |
18,067 |
|
(1) Includes above (below) market lease amortization.(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 Quarterly Report on Form
10-Q for the period ended September 30, 2017.
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