Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“WHLR” or the “Company”) today reported
operating and financial results for the three and nine months
ending September 30, 2018.
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Net loss per common share |
$ |
(0.41 |
) |
|
$ |
(0.52 |
) |
|
$ |
(1.48 |
) |
|
$ |
(1.32 |
) |
FFO per common share and common unit |
0.12 |
|
|
0.35 |
|
|
0.48 |
|
|
0.75 |
|
AFFO per common share and common unit |
0.13 |
|
|
0.43 |
|
|
0.59 |
|
|
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 THIRD QUARTER
HIGHLIGHTS
(all comparisons to the same prior year
period unless otherwise
noted)
- Sold Shoppes at Eagle Harbor for a contract price of $5.7
million, resulting in a $1.3 million gain at an 8.0% capitalization
rate.
- Refinanced Ladson Crossing, Lake Greenwood Crossing and South
Park for a total of $7.6 million, extending debt maturities to
2023.
- Reduced the KeyBank Credit Line to $52.1 million from $68.0
million at December 31, 2017 and extended the time with which the
Company is to repay the $3.83 million overadvance to February
2019.
- Reduced the Revere Loan to $1.8 million from $6.8 million at
December 31, 2017.
- Recorded lease termination expense of $250 thousand to allow a
space to be available for a high credit grocery store tenant.
- Net loss attributable to WHLR's common stock, $0.01 par value
per share ("Common Stock") shareholders of $3.8 million, or ($0.41)
per share.
- Total revenue from continuing operations increased by 6.74% or
$1.0 million.
- Net Operating Income ("NOI") from continuing operations
increased by 5.48% to approximately $11.3 million.
- Adjusted Funds from Operations ("AFFO") of $0.13 per share of
the Company's Common Stock and common unit ("Common Unit") in our
operating partnership, Wheeler REIT, L.P.
2018 YEAR-TO-DATE
HIGHLIGHTS
- Backfilled 3 former Southeastern Grocers locations, which were
recaptured in their bankruptcy proceeding, with two Low Country
Grocers (Piggly Wiggly's) at Ladson Crossing and South Park with
rents that commenced in the third quarter 2018 and a third Piggly
Wiggly at St. Matthews.
- Received approval on all Southeastern Grocers lease
modifications by the bankruptcy court.
- Executed termination fee with Farm Fresh at Berkley Shopping
Center resulting in $980 thousand in lease termination fee
revenues.
- Net loss attributable to Wheeler's Common Stock shareholders of
$13.6 million, or ($1.48) per share.
- Total revenue from continuing operations increased by 12.21% or
$5.4 million.
- NOI from continuing operations increased by 16.07% to
approximately $35.2 million.
- AFFO of $0.59 per share of the Company's Common Stock and
Common Unit in our operating partnership, Wheeler REIT, L.P.
SUBSEQUENT
EVENTS
- On October 3, 2018, at its 2018 Annual Stockholders' Meeting,
WHLR Shareholders reelected all eight of the Company’s directors to
serve until the next annual meeting and until their successors are
duly-elected and qualified; approved, on a non-binding advisory
basis, the Company’s executive compensation, as described in its
proxy statement; approved, on a non-binding advisory basis, the
frequency of future advisory votes on the Company’s executive
compensation for every year; and ratified the appointment of Cherry
Bekaert, LLP as the independent registered public accounting
firm.
- On October 22, 2018, the Company sold Monarch Bank Building, a
3,620 square-foot, single-tenant net leased asset, located in
Virginia Beach, Virginia for $1.75 million at a 6.9% capitalization
rate.
- On November 5, 2018, the Company extended the maturity date to
February 1, 2019 from November 1, 2018 on the Revere Loan.
BALANCE SHEET
- Cash and cash equivalents totaled $3.6 million at
September 30, 2018, compared to $3.7 million at
December 31, 2017.
- Total debt was $371.5 million at September 30, 2018 (including
debt associated with assets held for sale), compared to $376.6
million at June 30, 2018. Our total debt at December 31, 2017 was
$313.8 million. The increase in debt is primarily a result of $65.4
million in debt associated with the JANAF acquisition.
- WHLR's weighted-average interest rate and term of its debt was
4.8% and 4.50 years, respectively, at September 30, 2018 (including
debt associated with assets held for sale), compared to 4.6% and
4.81 years, respectively, at December 31, 2017.
- Net investment properties as of September 30, 2018 totaled
at $447.7 million (including assets held for sale), compared to
$384.3 million as of December 31, 2017.
- Refinanced six properties off of the KeyBank Credit Line and
LaGrange for a total of $20.3 million, extending debt maturities
out 5 years to 2023.
- Executed a Second Amendment to the Revere Loan, which matures
in November 2018 with monthly principal payments of $100,000. The
loan bears interest at 9.0%. The loan was paid down to $1.8
million, using the following sources: $1.0 million from operating
cash, $2.6 million from the sale of the undeveloped land parcel at
Laskin Road, $1.3 million from the sale of Eagle Harbor and $150
thousand with funds from other refinances.
- In conjunction with the JANAF acquisition, the Company issued
and sold 1,363,636 shares of Series D Preferred Stock, in a public
offering. Each share of Series D Preferred Stock was sold to
investors at an offering price of $16.50 per share. Net proceeds
from the public offering totaled $21.2 million, which includes the
impact of the underwriters' selling commissions and legal,
accounting and other professional fees.
DIVIDENDS
- For the three months ended September 30, 2018, the Company
declared dividends of approximately $3.0 million to our holders of
shares of our Series A Preferred Stock, Series B Preferred Stock,
and Series D Preferred Stock.
- For the nine months ended September 30, 2018, the Company
declared dividends of approximately $9.1 million to our holders of
shares of our Series A Preferred Stock, Series B Preferred Stock,
and Series D Preferred Stock.
OPERATIONS AND LEASING
- The Company's real estate portfolio is 90.4% leased at
September 30, 2018, which includes leases executed through
October 9, 2018.
- Q3-2018 Leasing Activity • For the three
months ended September 30, 2018, the Company executed 28 lease
renewals totaling 239,047 square feet at a weighted-average
increase of $0.46 per square foot, representing an increase of
6.46% over prior rates. • For the three months
ended September 30, 2018, the Company signed 11 new leases totaling
approximately 31,491 square feet with a weighted-average rate of
$11.24 per square foot.
- YTD 2018 Leasing Activity • For the nine months
ended September 30, 2018, the Company executed 90 lease renewals
totaling 562,370 square feet at a weighted-average increase of
$0.52 per square foot, representing an increase of 6.43% over prior
rates. • For the nine months ended September 30,
2018, the Company signed 47 new leases totaling approximately
234,407 square feet with a weighted-average rate of $8.75 per
square foot.
- Approximately 1.48% of the Company's gross leasable area
("GLA") is subject to leases that expire over the next three
months, with 40.48% of this expiring GLA subject to renewal
options.
- Southeastern Grocers • The Company modified
thirteen leases with Southeastern Grocers anchor tenants and
recaptured four locations. These modifications primarily include a
combination of increases and decreases to lease term and rental
rates, as well as deferred landlord contributions for remodels. The
Company recaptured Ladson Crossing, St. Matthews, South Park, and
Tampa Festival in the second quarter of 2018. The Cypress Shopping
Center lease expired on March 31, 2018. As part of the negotiated
recaptures the Company received $246 thousand during the nine
months ended September 30, 2018. The remaining lease modifications
were approved by the Southeastern Grocers' bankruptcy court in the
second quarter 2018. The initial annualized base rent impact of
these modifications and recaptures is approximately $2.5 million.
Three of these locations have been backfilled and rents have
commenced on two locations.
SAME STORE
RESULTS
- Same-store NOI for the three months ended September 30, 2018
compared to September 30, 2017, declined by (12.91%) and (16.23%)
respectively on a cash basis. The same-store pool for the 3 months
ended September 30, 2018, was comprised of 4.9 million square feet
that the Company owned as of January 1, 2017. Same-store
results were driven by a 7.49% decrease in property revenues a
result of a full quarter of Southeastern Grocers recaptures and
rent modifications accompanied by anchor lease expirations at South
Lake and Fort Howard and the impact of a full quarter of the lease
termination at Berkley Shopping Center. Same Store property
expenses increased 5.58% as a result of increased real estate taxes
and utilities a direct result of vacant anchor space.
- Same-store NOI for the nine months ended September 30, 2018
compared to September 30, 2017, declined by (2.59%) and (4.75%)
respectively on a cash basis. Same-store results for the nine
months ended September 30, 2018, were driven, by a decrease of
1.62% in property revenues a result of the impact of a full quarter
of Southeastern Grocers recaptures and rent modifications
accompanied by anchor lease expirations at South Lake and Fort
Howard and the impact of a full quarter of the lease termination at
Berkley Shopping Center offset by $980 thousand in lease
termination fees on Farm Fresh at Berkley Shopping Center. Property
expenses increased 1.97% as a result of increased real estate taxes
and utilities a direct result of vacant anchor space while the
tenant provision for credit losses decreased 28.64% primarily
resulting from increased collections on accounts receivable.
ACQUISITIONS
- As previously disclosed, the Company acquired JANAF, a retail
shopping center located in Norfolk, Virginia, for a purchase price
of $85.65 million in January 2018.
DISPOSITIONS
- Sold Chipotle ground lease at Conyers Crossing for a contract
price of $1.3 million, resulting in a gain of $1.0 million with net
proceeds of $1.2 million.
- Sold the undeveloped land parcel at Laskin Road for a contract
price of $2.9 million, resulting in a $903 thousand gain.
- Sold Shoppes at Eagle Harbor for a contract price of $5.7
million, resulting in a $1.3 million gain.
SUPPLEMENTAL
INFORMATION
Further details regarding Wheeler Real Estate Investment Trust,
Inc.’s operations and financials for the period ended September 30,
2018, including a supplemental presentation, are available at
https://ir.whlr.us/.
CONFERENCE CALL DIAL-IN AND WEBCAST
INFORMATION:
The Company will host a conference call and webcast on
Wednesday, November 7, 2018 at 11:00 am Eastern Time to review its
financial performance and operating results for the quarter ended
September 30, 2018.
Conference Call and Webcast:U.S. & Canada
Toll Free: (877) 407-3101 / International: (201) 493-6789Webcast:
www.whlr.us via the Investor Relations Section
Replay:U.S. & Canada Toll Free: (877)
660-6853 / International: (201) 612-7415Conference ID#:
13679474Available November 7, 2018 (one hour after the end of the
conference call) to December 7, 2018 at 11:00 am Eastern Time.
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 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.
DEFINITIONS
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 STATEMENTS
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
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
Jensen
Investor
Relations
(757) 627-9088 / mjensen@whlr.us
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesCondensed Consolidated
Statements of Operations(unaudited, in thousands,
except per share data)
|
Three Months
EndedSeptember 30, |
|
Nine Months
EndedSeptember 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
REVENUE: |
|
|
|
|
|
|
|
Rental revenues |
$ |
12,755 |
|
|
$ |
11,109 |
|
|
$ |
38,363 |
|
|
$ |
33,265 |
|
Asset management fees |
48 |
|
|
145 |
|
|
143 |
|
|
807 |
|
Commissions |
52 |
|
|
449 |
|
|
102 |
|
|
758 |
|
Tenant reimbursements |
3,150 |
|
|
2,711 |
|
|
9,337 |
|
|
8,127 |
|
Development and other revenues |
217 |
|
|
784 |
|
|
1,697 |
|
|
1,282 |
|
Total Revenue |
16,222 |
|
|
15,198 |
|
|
49,642 |
|
|
44,239 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
Property operations |
4,687 |
|
|
3,726 |
|
|
13,804 |
|
|
11,467 |
|
Non-REIT management and leasing services |
23 |
|
|
618 |
|
|
59 |
|
|
1,525 |
|
Depreciation and amortization |
6,045 |
|
|
7,746 |
|
|
20,943 |
|
|
20,455 |
|
Provision for credit losses |
149 |
|
|
23 |
|
|
335 |
|
|
443 |
|
Corporate general & administrative |
1,703 |
|
|
1,306 |
|
|
6,479 |
|
|
4,855 |
|
Other operating expenses |
250 |
|
|
— |
|
|
250 |
|
|
— |
|
Total Operating
Expenses |
12,857 |
|
|
13,419 |
|
|
41,870 |
|
|
38,745 |
|
Gain (loss) on disposal of properties |
1,257 |
|
|
(1 |
) |
|
2,312 |
|
|
1,021 |
|
Operating Income |
4,622 |
|
|
1,778 |
|
|
10,084 |
|
|
6,515 |
|
Interest income |
1 |
|
|
364 |
|
|
3 |
|
|
1,080 |
|
Interest expense |
(5,183 |
) |
|
(4,250 |
) |
|
(14,940 |
) |
|
(12,997 |
) |
Net Loss from Continuing Operations Before Income
Taxes |
(560 |
) |
|
(2,108 |
) |
|
(4,853 |
) |
|
(5,402 |
) |
Income tax expense |
(30 |
) |
|
(65 |
) |
|
(72 |
) |
|
(175 |
) |
Net Loss from Continuing Operations |
(590 |
) |
|
(2,173 |
) |
|
(4,925 |
) |
|
(5,577 |
) |
Discontinued Operations |
|
|
|
|
|
|
|
Income from discontinued operations |
— |
|
|
— |
|
|
— |
|
|
16 |
|
Gain on disposal of properties |
— |
|
|
— |
|
|
903 |
|
|
1,502 |
|
Net Income from Discontinued Operations |
— |
|
|
— |
|
|
903 |
|
|
1,518 |
|
Net Loss |
(590 |
) |
|
(2,173 |
) |
|
(4,022 |
) |
|
(4,059 |
) |
Less: Net income (loss) attributable to
noncontrolling interests |
12 |
|
|
(111 |
) |
|
(70 |
) |
|
(165 |
) |
Net Loss Attributable to Wheeler REIT |
(602 |
) |
|
(2,062 |
) |
|
(3,952 |
) |
|
(3,894 |
) |
Preferred stock dividends |
(3,208 |
) |
|
(2,496 |
) |
|
(9,621 |
) |
|
(7,473 |
) |
Net Loss Attributable to Wheeler REIT Common
Shareholders |
$ |
(3,810 |
) |
|
$ |
(4,558 |
) |
|
$ |
(13,573 |
) |
|
$ |
(11,367 |
) |
|
|
|
|
|
|
|
|
Loss per share from continuing operations (basic and
diluted) |
$ |
(0.41 |
) |
|
$ |
(0.52 |
) |
|
$ |
(1.58 |
) |
|
$ |
(1.48 |
) |
Income per share from discontinued operations |
— |
|
|
— |
|
|
0.10 |
|
|
0.16 |
|
|
$ |
(0.41 |
) |
|
$ |
(0.52 |
) |
|
$ |
(1.48 |
) |
|
$ |
(1.32 |
) |
Weighted-average number of shares: |
|
|
|
|
|
|
|
Basic and Diluted |
9,385,666 |
|
|
8,692,543 |
|
|
9,179,366 |
|
|
8,625,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesCondensed Consolidated
Balance Sheets(in thousands, except par value and
share data)
|
September 30,
2018 |
|
December 31,
2017 |
|
(unaudited) |
|
|
ASSETS: |
|
|
|
Investment properties, net |
$ |
426,972 |
|
|
$ |
375,199 |
|
Cash and cash equivalents |
3,638 |
|
|
3,677 |
|
Restricted cash |
16,708 |
|
|
8,609 |
|
Rents and other tenant receivables, net |
4,675 |
|
|
5,619 |
|
Notes receivable, net |
6,739 |
|
|
6,739 |
|
Goodwill |
5,486 |
|
|
5,486 |
|
Assets held for sale |
22,111 |
|
|
9,135 |
|
Above market lease intangible, net |
7,945 |
|
|
8,778 |
|
Deferred costs and other assets, net |
32,814 |
|
|
34,432 |
|
Total Assets |
$ |
527,088 |
|
|
$ |
457,674 |
|
LIABILITIES: |
|
|
|
Loans payable, net |
$ |
354,093 |
|
|
$ |
307,375 |
|
Liabilities associated with assets held for
sale |
12,423 |
|
|
792 |
|
Below market lease intangible, net |
10,948 |
|
|
9,616 |
|
Accounts payable, accrued expenses and other
liabilities |
12,707 |
|
|
10,579 |
|
Dividends payable |
3,037 |
|
|
5,480 |
|
Total
Liabilities |
393,208 |
|
|
333,842 |
|
Series D Cumulative Convertible Preferred Stock (no par value,
4,000,000 shares authorized, 3,600,636 and 2,237,000 shares issued
and outstanding; $90.02 million and $55.93 million aggregate
liquidation preference, respectively) |
74,838 |
|
|
53,236 |
|
|
|
|
|
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 and 1,875,848 shares issued and
outstanding, respectively; $46.90 million aggregate liquidation
preference) |
40,978 |
|
|
40,915 |
|
Common Stock ($0.01 par value, 18,750,000 shares
authorized, 9,401,936 and 8,744,189 shares issued and outstanding,
respectively) |
94 |
|
|
87 |
|
Additional paid-in capital |
233,001 |
|
|
226,978 |
|
Accumulated deficit |
(218,498 |
) |
|
(204,925 |
) |
Total Shareholders’ Equity |
56,028 |
|
|
63,508 |
|
Noncontrolling interests |
3,014 |
|
|
7,088 |
|
Total Equity |
59,042 |
|
|
70,596 |
|
Total Liabilities and
Equity |
$ |
527,088 |
|
|
$ |
457,674 |
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and Subsidiaries Reconciliation
of Funds From Operations (FFO)(unaudited, in
thousands)
|
Three Months Ended
September 30, |
|
Same Store |
|
New Store |
|
Total |
|
Period Over PeriodChanges |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
unaudited) |
|
|
|
|
|
|
Net
Loss |
$ |
(426 |
) |
|
$ |
(2,173 |
) |
|
$ |
(164 |
) |
|
$ |
— |
|
|
$ |
(590 |
) |
|
$ |
(2,173 |
) |
|
$ |
1,583 |
|
|
72.85 |
% |
Depreciation and amortization of real estate assets |
4,932 |
|
|
7,746 |
|
|
1,113 |
|
|
— |
|
|
6,045 |
|
|
7,746 |
|
|
(1,701 |
) |
|
(21.96 |
)% |
(Gain) loss on disposal of properties |
(1,257 |
) |
|
1 |
|
|
— |
|
|
— |
|
|
(1,257 |
) |
|
1 |
|
|
(1,258 |
) |
|
(125,800 |
)% |
FFO |
$ |
3,249 |
|
|
$ |
5,574 |
|
|
$ |
949 |
|
|
$ |
— |
|
|
$ |
4,198 |
|
|
$ |
5,574 |
|
|
$ |
(1,376 |
) |
|
(24.69 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September
30, |
|
Same Store |
|
New Store |
|
Total |
|
Period Over PeriodChanges |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
unaudited) |
|
|
|
|
|
|
Net
Loss |
$ |
(3,844 |
) |
|
$ |
(4,059 |
) |
|
$ |
(178 |
) |
|
$ |
— |
|
|
$ |
(4,022 |
) |
|
$ |
(4,059 |
) |
|
$ |
37 |
|
|
0.91 |
% |
Depreciation and amortization of real estate assets |
17,531 |
|
|
20,455 |
|
|
3,412 |
|
|
— |
|
|
20,943 |
|
|
20,455 |
|
|
488 |
|
|
2.39 |
% |
Gain on disposal of properties |
(2,312 |
) |
|
(1,021 |
) |
|
— |
|
|
— |
|
|
(2,312 |
) |
|
(1,021 |
) |
|
(1,291 |
) |
|
(126.44 |
)% |
Gain on disposal of properties-discontinued operations |
(903 |
) |
|
(1,502 |
) |
|
— |
|
|
— |
|
|
(903 |
) |
|
(1,502 |
) |
|
599 |
|
|
39.88 |
% |
FFO |
$ |
10,472 |
|
|
$ |
13,873 |
|
|
$ |
3,234 |
|
|
$ |
— |
|
|
$ |
13,706 |
|
|
$ |
13,873 |
|
|
$ |
(167 |
) |
|
(1.20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and Subsidiaries Reconciliation
of Funds From Operations (FFO)(unaudited, in
thousands)
|
Three Months
EndedSeptember 30, |
|
Nine Months
EndedSeptember 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net Loss |
$ |
(590 |
) |
|
$ |
(2,173 |
) |
|
$ |
(4,022 |
) |
|
$ |
(4,059 |
) |
Depreciation and amortization of real estate assets |
6,045 |
|
|
7,746 |
|
|
20,943 |
|
|
20,455 |
|
(Gain) Loss on disposal of properties |
(1,257 |
) |
|
1 |
|
|
(2,312 |
) |
|
(1,021 |
) |
Gain on disposal of properties-discontinued operations |
— |
|
|
— |
|
|
(903 |
) |
|
(1,502 |
) |
FFO |
4,198 |
|
|
5,574 |
|
|
13,706 |
|
|
13,873 |
|
Preferred stock dividends |
(3,208 |
) |
|
(2,496 |
) |
|
(9,621 |
) |
|
(7,473 |
) |
Preferred stock accretion adjustments |
169 |
|
|
205 |
|
|
509 |
|
|
605 |
|
FFO available to common shareholders and common unitholders |
1,159 |
|
|
3,283 |
|
|
4,594 |
|
|
7,005 |
|
Acquisition and development costs |
82 |
|
|
233 |
|
|
346 |
|
|
832 |
|
Capital related costs |
110 |
|
|
82 |
|
|
408 |
|
|
468 |
|
Other non-recurring and non-cash expenses (1) |
— |
|
|
47 |
|
|
103 |
|
|
177 |
|
Share-based compensation |
241 |
|
|
134 |
|
|
727 |
|
|
735 |
|
Straight-line rent |
(353 |
) |
|
(162 |
) |
|
(953 |
) |
|
(566 |
) |
Loan cost amortization |
625 |
|
|
682 |
|
|
1,682 |
|
|
2,509 |
|
Accrued interest income |
— |
|
|
(121 |
) |
|
— |
|
|
(359 |
) |
(Below) above market lease amortization |
(313 |
) |
|
65 |
|
|
(421 |
) |
|
448 |
|
Recurring capital expenditures and tenant improvement reserves |
(284 |
) |
|
(245 |
) |
|
(858 |
) |
|
(696 |
) |
AFFO |
$ |
1,267 |
|
|
$ |
3,998 |
|
|
$ |
5,628 |
|
|
$ |
10,553 |
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares |
9,385,666 |
|
|
8,692,543 |
|
|
9,179,366 |
|
|
8,625,523 |
|
Weighted Average Common Units |
297,355 |
|
|
679,820 |
|
|
433,403 |
|
|
723,269 |
|
Total Common Shares and Units |
9,683,021 |
|
|
9,372,363 |
|
|
9,612,769 |
|
|
9,348,792 |
|
FFO per Common Share and Common Units |
$ |
0.12 |
|
|
$ |
0.35 |
|
|
$ |
0.48 |
|
|
$ |
0.75 |
|
AFFO per Common Share and Common Units |
$ |
0.13 |
|
|
$ |
0.43 |
|
|
$ |
0.59 |
|
|
$ |
1.13 |
|
(1) Other non-recurring expenses are described in "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" included in our Annual Report on Form 10-Q for the
period ended September 30, 2018.
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Property
Net Operating Income(unaudited, in
thousands)
|
Three Months Ended
September 30, |
|
Same Store |
|
New Store |
|
Total |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands) |
Net Loss |
$ |
(426 |
) |
|
$ |
(2,173 |
) |
|
$ |
(164 |
) |
|
$ |
— |
|
|
$ |
(590 |
) |
|
$ |
(2,173 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
30 |
|
|
65 |
|
|
— |
|
|
— |
|
|
30 |
|
|
65 |
|
Interest expense |
4,431 |
|
|
4,250 |
|
|
752 |
|
|
— |
|
|
5,183 |
|
|
4,250 |
|
Interest income |
(1 |
) |
|
(364 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
|
(364 |
) |
(Gain) loss on disposal of properties |
(1,257 |
) |
|
1 |
|
|
— |
|
|
— |
|
|
(1,257 |
) |
|
1 |
|
Corporate general & administrative |
1,685 |
|
|
1,306 |
|
|
18 |
|
|
— |
|
|
1,703 |
|
|
1,306 |
|
Other operating expenses |
— |
|
|
— |
|
|
250 |
|
|
— |
|
|
250 |
|
|
— |
|
Depreciation and amortization |
4,932 |
|
|
7,746 |
|
|
1,113 |
|
|
— |
|
|
6,045 |
|
|
7,746 |
|
Non-REIT management and leasing services |
23 |
|
|
618 |
|
|
— |
|
|
— |
|
|
23 |
|
|
618 |
|
Development income |
— |
|
|
(155 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(155 |
) |
Asset management and commission revenues |
(100 |
) |
|
(594 |
) |
|
— |
|
|
— |
|
|
(100 |
) |
|
(594 |
) |
Property Net Operating Income |
$ |
9,317 |
|
|
$ |
10,700 |
|
|
$ |
1,969 |
|
|
$ |
— |
|
|
$ |
11,286 |
|
|
$ |
10,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property revenues |
$ |
13,366 |
|
|
$ |
14,449 |
|
|
$ |
2,756 |
|
|
$ |
— |
|
|
$ |
16,122 |
|
|
$ |
14,449 |
|
Property expenses |
3,935 |
|
|
3,726 |
|
|
752 |
|
|
— |
|
|
4,687 |
|
|
3,726 |
|
Provision for credit losses - tenant |
114 |
|
|
23 |
|
|
35 |
|
|
— |
|
|
149 |
|
|
23 |
|
Property Net Operating Income |
$ |
9,317 |
|
|
$ |
10,700 |
|
|
$ |
1,969 |
|
|
$ |
— |
|
|
$ |
11,286 |
|
|
$ |
10,700 |
|
|
Nine Months Ended September
30, |
|
Same Store |
|
New Store |
|
Total |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands) |
Net Loss |
$ |
(3,844 |
) |
|
$ |
(4,059 |
) |
|
$ |
(178 |
) |
|
$ |
— |
|
|
$ |
(4,022 |
) |
|
$ |
(4,059 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Net Income from Discontinued Operations |
(903 |
) |
|
(1,518 |
) |
|
— |
|
|
— |
|
|
(903 |
) |
|
(1,518 |
) |
Income tax expense |
72 |
|
|
175 |
|
|
— |
|
|
— |
|
|
72 |
|
|
175 |
|
Interest expense |
12,837 |
|
|
12,997 |
|
|
2,103 |
|
|
— |
|
|
14,940 |
|
|
12,997 |
|
Interest income |
(3 |
) |
|
(1,080 |
) |
|
— |
|
|
— |
|
|
(3 |
) |
|
(1,080 |
) |
Gain on disposal of properties |
(2,312 |
) |
|
(1,021 |
) |
|
— |
|
|
— |
|
|
(2,312 |
) |
|
(1,021 |
) |
Corporate general & administrative |
6,407 |
|
|
4,855 |
|
|
72 |
|
|
— |
|
|
6,479 |
|
|
4,855 |
|
Other operating expenses |
— |
|
|
— |
|
|
250 |
|
|
— |
|
|
250 |
|
|
— |
|
Provision for credit losses - non-tenant |
(77 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(77 |
) |
|
— |
|
Depreciation and amortization |
17,531 |
|
|
20,455 |
|
|
3,412 |
|
|
— |
|
|
20,943 |
|
|
20,455 |
|
Non-REIT management and leasing services |
59 |
|
|
1,525 |
|
|
— |
|
|
— |
|
|
59 |
|
|
1,525 |
|
Development income |
— |
|
|
(454 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(454 |
) |
Asset management and commission revenues |
(245 |
) |
|
(1,565 |
) |
|
— |
|
|
— |
|
|
(245 |
) |
|
(1,565 |
) |
Property Net Operating Income |
$ |
29,522 |
|
|
$ |
30,310 |
|
|
$ |
5,659 |
|
|
$ |
— |
|
|
$ |
35,181 |
|
|
$ |
30,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property revenues |
$ |
41,534 |
|
|
$ |
42,220 |
|
|
$ |
7,863 |
|
|
$ |
— |
|
|
$ |
49,397 |
|
|
$ |
42,220 |
|
Property expenses |
11,696 |
|
|
11,467 |
|
|
2,108 |
|
|
— |
|
|
13,804 |
|
|
11,467 |
|
Provision for credit losses - tenant |
316 |
|
|
443 |
|
|
96 |
|
|
— |
|
|
412 |
|
|
443 |
|
Property Net Operating Income |
$ |
29,522 |
|
|
$ |
30,310 |
|
|
$ |
5,659 |
|
|
$ |
— |
|
|
$ |
35,181 |
|
|
$ |
30,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net Loss |
$ |
(590 |
) |
|
$ |
(2,173 |
) |
|
$ |
(4,022 |
) |
|
$ |
(4,059 |
) |
Add
back: |
Depreciation and amortization (1) |
5,732 |
|
|
7,811 |
|
|
20,522 |
|
|
20,903 |
|
|
Interest Expense (2) |
5,183 |
|
|
4,250 |
|
|
14,940 |
|
|
13,006 |
|
|
Income taxes |
30 |
|
|
65 |
|
|
72 |
|
|
175 |
|
EBITDA |
10,355 |
|
|
9,953 |
|
|
31,512 |
|
|
30,025 |
|
Adjustments for items affecting comparability: |
|
|
|
|
|
|
|
|
Acquisition and development costs |
82 |
|
|
233 |
|
|
346 |
|
|
832 |
|
|
Capital related costs |
110 |
|
|
82 |
|
|
408 |
|
|
468 |
|
|
Other non-recurring and non-cash expenses (3) |
— |
|
|
47 |
|
|
103 |
|
|
177 |
|
|
Gain on disposal of properties |
(1,257 |
) |
|
1 |
|
|
(2,312 |
) |
|
(1,021 |
) |
|
(Gain) Loss on disposal of properties-discontinued operations |
— |
|
|
— |
|
|
(903 |
) |
|
(1,502 |
) |
Adjusted EBITDA |
$ |
9,290 |
|
|
$ |
10,316 |
|
|
$ |
29,154 |
|
|
$ |
28,979 |
|
(1) Includes above (below) market lease amortization.(2)
Includes loan cost amortization and amounts associated with
discontinued operations.(3) Other non-recurring expenses are
described in "Management's Discussion and Analysis of Financial
Condition and Results of Operations" included in our Annual Report
on Form 10-Q for the period ended September 30, 2018.
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