Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“Wheeler” or the “Company”) today reported operating
and financial results for three months and year ending
December 31, 2017.
Please note that there were two errors in last
night’s press release. In the first bullet under “RECENT NEWS”, the
date should have been December 31, 2017 not December 31, 2018. The
second bullet should have referenced a savings of $9.7 million
instead of $9.0 million. Both are corrected below.
| |
|
Three Months Ended December 31, |
|
Years Ended December 31, |
| |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
|
|
|
|
| Net loss per common
share |
|
$ |
(1.22 |
) |
|
$ |
(0.73 |
) |
|
$ |
(2.54 |
) |
|
$ |
(1.89 |
) |
| FFO per common share
and common unit |
|
(0.56 |
) |
|
(0.11 |
) |
|
0.19 |
|
|
0.37 |
|
| AFFO per common share
and common unit |
|
0.18 |
|
|
0.16 |
|
|
1.31 |
|
|
0.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
RECENT NEWS
- The Company recorded an impairment of $5.3 million on notes
receivable and a $2.4 million reserve on receivables due from Sea
Turtle Development and other related parties for property
management and leasing services as of December 31, 2017.
- In order to increase financial flexibility, strengthen the
balance sheet and facilitate strategic initiatives the Board of
Directors ("the "Board") determined to suspend the dividend on 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 remainder of the year, generating
2018 cash savings of approximately $9.7 million.
- The Board of Directors retained KeyBanc Capital Markets to lead
the process in identifying and evaluating strategic alternatives in
order to maximize shareholder value.
2017 FOURTH QUARTER HIGHLIGHTS (all
comparisons to the same prior year period unless otherwise
noted)
- Net loss attributable to Wheeler Common Stock Shareholders of
$10.7 million, or ($1.22) per share.
- Total revenue from continuing operations increased by 18.9% or
$2.3 million.
- Property Net Operating Income ("NOI") from continuing
operations increased by 22.5% to approximately $10.0 million.
- Adjusted Funds from Operations ("AFFO") of $0.18 per share of
the Company's Common Stock and OP Unit versus guidance of $0.35 -
$0.40. AFFO includes a provision on related party receivables
of $2.4 million. Excluding these amounts AFFO would be $0.34
per share and OP unit.
- The Company amended and restated the terms of its KeyBank
Credit agreement to extend the maturity date of its revolving
credit facility by two years, increase the borrowing limit to $52.5
million from $50 million, increase the accordion to $150 million
from $100 million and extend the date by which the Company must
repay $15.5 million of the current outstanding balance until July
1, 2018.
- 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.
2017 YEAR-TO-DATE HIGHLIGHTS (all
comparisons to prior year unless otherwise noted)
- Net loss attributable to Wheeler Common Stock Shareholders of
$22.1 million, or ($2.54) per share.
- Total revenue from continuing operations increased by 32.6% or
$14.4 million.
- NOI from continuing operations increased by 35.1% to
approximately $40.8 million.
- AFFO of $1.31 per share of Common Stock and OP Unit versus
guidance of $1.48 to $1.55. AFFO includes a provision on
related party receivables of $2.4 million. Excluding these
amounts AFFO would be $1.47 per share and OP unit.
- Generated $460 thousand in lease termination fees primarily as
a result of the early closure of BI-LO at Shoppes at Myrtle
Park.
- Completed sales of discontinued operations and assets held for
sale resulting in a total gain of $1.5 million.
- Completed sale of Steak n' Shake out parcel at Rivergate
resulting in a total gain of $1.0 million.
BALANCE SHEET
- The Company’s cash and cash equivalents were $3.7 million at
December 31, 2017, compared to $4.9 million at
December 31, 2016.
- Wheeler’s net investment properties as of December 31,
2017 totaled at $384.3 million, as compared to $388.9 million as of
December 31, 2016.
- On December 12, 2017, the Company extended the $1.27 million
Monarch Bank Building loan to June 2019 with monthly principal and
interest payments of $7,340 at a rate of 4.85%.
- On December 21, 2017, the Company amended and restated the
terms of its KeyBank revolving line of credit agreement. The
agreement increases the borrowing capacity from $50.0 million to
$52.5 million and increases the accordion feature by $50.0 million
to $150.0 million.
- On December 21, 2017, the Company paid $262 thousand to satisfy
the Columbia Fire Station loan in full.
- The Company’s total debt was $313.8 million at
December 31, 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 4.6% and 4.81 years, respectively, at
December 31, 2017, compared to 4.3% and 5.55 years (including
debt associated with assets held for sale), respectively, at
December 31, 2016.
Subsequent to the year ended December 31,
2017:
- The Company extended the $3.00 million bank line of credit to
June 15, 2018 with interest only payments due monthly at a rate of
Libor + 3.00% with a floor of 4.25%.
- The Company, issued and sold 1,363,636 shares of Series D
Cumulative Convertible Preferred Stock (the "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 $21.21
million, which includes the impact of the underwriters' selling
commissions and legal, accounting and other professional fees.
OPERATIONS AND LEASING
- The Company's leased percentage is 92.8% of GLA at
December 31, 2017, including leases executed through January
10, 2018.
- For the three months ended December 31, 2017, the Company
executed 22 lease renewals totaling 77,498 square feet at a
weighted-average increase of $0.41 per square foot, representing an
increase of 2.99% over prior rates.
- For the three months ended December 31, 2017, Wheeler
signed 11 new leases totaling approximately 41,906 square feet with
a weighted-average rate of $8.89 per square foot.
- For the year ended December 31, 2017, the Company executed
112 lease renewals totaling 570,461 square feet at a
weighted-average increase of $0.29 per square foot, representing an
increase of 3.10% 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 twelve months ended
December 31, 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 twelve months ended December 31, 2017 would total $0.36 per
square foot, representing an increase of 3.91% over prior
rates.
- For the year ended December 31, 2017, Wheeler signed 55
new leases totaling approximately 160,341 square feet with a
weighted-average rate of $11.87 per square foot.
- Approximately 9.39% of Wheeler’s gross leasable area ("GLA") is
subject to leases that expire during the year ending December 31,
2018. Of the GLA expiring during the year ending December 31, 2018,
47.6% of the GLA is subject to renewal options.
- 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.
DIVIDENDS
- For the three months ended December 31, 2017, the Company
paid dividends of approximately $3.2 million to the holders of
shares of our Common Stock and OP Units and approximately $2.3
million to our holders of shares of our Series A Preferred Stock,
Series B Preferred Stock, and Series D Preferred Stock.
- For the year ended December 31, 2017, the Company declared
approximately $13.5 million in dividend payments to the holders of
shares of our Common Stock and OP Units and approximately $9.2
million to holders of our Series A Preferred Stock, Series B
Preferred Stock, and Series D Preferred Stock.
SAME STORE RESULTS
- Same-store NOI year-over-year growth for the year ended
December 31, 2017 was 1.3% on a GAAP basis and (0.1)% 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 3.8% in property operating
expenses primarily resulting from a decrease in real estate taxes,
insurance and grounds and landscaping while property revenues
remained relatively flat.
ACQUISITIONS
- Subsequent to the year ended December 31, 2017, the Company
acquired an 887,917 square foot office and retail property located
in Norfolk, Virginia known as JANAF for $85.65 million.
DISPOSITIONS
- Subsequent to the year ended December 31, 2017, the Company
completed the sale of the Chipotle ground lease at Conyers Crossing
for a contract price of $1.27 million, resulting in a gain of $1.05
million with net proceeds of $1.16 million.
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/q4-2017.
SUPPLEMENTAL INFORMATION
Further details regarding Wheeler Real Estate Investment Trust,
Inc.’s operations and financials for the period ended December 31,
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.
A copy of Wheeler’s Annual Report on Form 10-K, 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.
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: (i)
the future generation of financial returns from the acquisition of
retail focused properties in secondary and tertiary markets; (ii)
the Company's suspension of the Common Stock dividend and its
ability to increase financial flexibility, strengthen the balance
sheet and facilitate strategic initiatives from the cash savings
generated by the suspension of the Common Stock and OP Unit
dividend; (iii) the expected identification and
implementation of strategic alternatives that could increase
shareholder value 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.
CONTACT:WHEELER INVESTMENT TRUST,
INC.Mary JensenInvestor Relations(757) 627-9088 /
investorrelations@whlr.us
| Wheeler Real Estate Investment Trust, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(in thousands, except per share
data) |
| |
|
|
|
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
REVENUE: |
|
|
|
|
|
|
|
| Rental
revenues |
$ |
10,891 |
|
|
$ |
9,377 |
|
|
$ |
44,156 |
|
|
$ |
33,165 |
|
| Asset
management fees |
120 |
|
|
232 |
|
|
927 |
|
|
855 |
|
|
Commissions |
141 |
|
|
130 |
|
|
899 |
|
|
964 |
|
| Tenant
reimbursements |
2,905 |
|
|
2,149 |
|
|
11,032 |
|
|
8,649 |
|
|
Development and other revenues |
239 |
|
|
139 |
|
|
1,521 |
|
|
527 |
|
|
Total Revenue |
14,296 |
|
|
12,027 |
|
|
58,535 |
|
|
44,160 |
|
| OPERATING
EXPENSES: |
|
|
|
|
|
|
|
| Property
operations |
3,922 |
|
|
3,399 |
|
|
15,389 |
|
|
11,898 |
|
| Non-REIT
management and leasing services |
(598 |
) |
|
215 |
|
|
927 |
|
|
1,567 |
|
|
Depreciation and amortization |
5,776 |
|
|
5,331 |
|
|
26,231 |
|
|
20,637 |
|
| Provision
for credit losses |
2,378 |
|
|
229 |
|
|
2,821 |
|
|
425 |
|
|
Impairment on notes receivable |
5,261 |
|
|
— |
|
|
5,261 |
|
|
— |
|
| Corporate
general & administrative |
2,509 |
|
|
3,633 |
|
|
7,364 |
|
|
9,924 |
|
|
Total Operating Expenses |
19,248 |
|
|
12,807 |
|
|
57,993 |
|
|
44,451 |
|
| Operating
Income (Loss) |
(4,952 |
) |
|
(780 |
) |
|
542 |
|
|
(291 |
) |
| Gain on
disposal of properties |
— |
|
|
— |
|
|
1,021 |
|
|
— |
|
| Interest
income |
363 |
|
|
391 |
|
|
1,443 |
|
|
692 |
|
| Interest
expense |
(4,168 |
) |
|
(3,555 |
) |
|
(17,165 |
) |
|
(13,356 |
) |
| Net Loss from
Continuing Operations Before Income Taxes |
(8,757 |
) |
|
(3,944 |
) |
|
(14,159 |
) |
|
(12,955 |
) |
| Income
tax expense |
38 |
|
|
(107 |
) |
|
(137 |
) |
|
(107 |
) |
| Net Loss from
Continuing Operations |
(8,719 |
) |
|
(4,051 |
) |
|
(14,296 |
) |
|
(13,062 |
) |
| Discontinued
Operations |
|
|
|
|
|
|
|
| Income
from discontinued operations |
— |
|
|
21 |
|
|
16 |
|
|
136 |
|
| Gain on
disposal of properties |
— |
|
|
(1 |
) |
|
1,502 |
|
|
688 |
|
| Net Income from
Discontinued Operations |
— |
|
|
20 |
|
|
1,518 |
|
|
824 |
|
| Net
Loss |
(8,719 |
) |
|
(4,031 |
) |
|
(12,778 |
) |
|
(12,238 |
) |
| Less: Net
loss attributable to noncontrolling interests |
(519 |
) |
|
(267 |
) |
|
(684 |
) |
|
(1,035 |
) |
| Net Loss
Attributable to Wheeler REIT |
(8,200 |
) |
|
(3,764 |
) |
|
(12,094 |
) |
|
(11,203 |
) |
| Preferred
stock dividends |
(2,496 |
) |
|
(2,450 |
) |
|
(9,969 |
) |
|
(4,713 |
) |
| Net Loss
Attributable to Wheeler REIT
CommonShareholders |
$ |
(10,696 |
) |
|
$ |
(6,214 |
) |
|
$ |
(22,063 |
) |
|
$ |
(15,916 |
) |
|
|
|
|
|
|
|
|
|
| Loss per
share from continuing operations (basic and diluted) |
$ |
(1.22 |
) |
|
$ |
(0.73 |
) |
|
$ |
(2.70 |
) |
|
$ |
(1.98 |
) |
| Income
per share from discontinued operations |
— |
|
|
— |
|
|
0.16 |
|
|
0.09 |
|
|
|
$ |
(1.22 |
) |
|
$ |
(0.73 |
) |
|
$ |
(2.54 |
) |
|
$ |
(1.89 |
) |
|
Weighted-average number of shares: |
|
|
|
|
|
|
|
| Basic and
Diluted |
8,739,455 |
|
|
8,497,738 |
|
|
8,654,240 |
|
|
8,420,374 |
|
| Dividends
declared per common share |
$ |
0.34 |
|
|
$ |
0.42 |
|
|
$ |
1.44 |
|
|
$ |
1.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Wheeler Real Estate Investment Trust, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(in thousands, except par value and share
data) |
| |
|
| |
December 31, |
| |
2017 |
|
2016 |
|
ASSETS: |
|
|
|
|
Investment properties, net |
$ |
384,334 |
|
|
$ |
388,880 |
|
| Cash and
cash equivalents |
3,677 |
|
|
4,863 |
|
|
Restricted cash |
8,609 |
|
|
9,652 |
|
| Rents and
other tenant receivables, net |
5,619 |
|
|
3,984 |
|
| Related
party receivables, net |
— |
|
|
1,456 |
|
| Notes
receivable, net |
6,739 |
|
|
12,000 |
|
|
Goodwill |
5,486 |
|
|
5,486 |
|
| Assets
held for sale |
— |
|
|
366 |
|
| Above
market lease intangible, net |
8,778 |
|
|
12,962 |
|
| Deferred
costs and other assets, net |
34,432 |
|
|
49,397 |
|
|
Total Assets |
$ |
457,674 |
|
|
$ |
489,046 |
|
|
LIABILITIES: |
|
|
|
| Loans
payable, net |
$ |
308,122 |
|
|
$ |
305,973 |
|
|
Liabilities associated with assets held for sale |
— |
|
|
1,350 |
|
| Below
market lease intangible, net |
9,616 |
|
|
12,680 |
|
| Accounts
payable, accrued expenses and other liabilities |
10,624 |
|
|
7,735 |
|
| Dividends
payable |
5,480 |
|
|
3,586 |
|
|
Total Liabilities |
333,842 |
|
|
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) |
53,236 |
|
|
52,530 |
|
| |
|
|
|
|
EQUITY: |
|
|
|
| Series A
Preferred Stock (no par value, 4,500 shares authorized, 562 shares
issued andoutstanding) |
453 |
|
|
453 |
|
| Series B
Convertible Preferred Stock (no par value, 5,000,000 authorized,
1,875,848and 1,871,244 shares issued and outstanding, respectively;
$46.90 million and $46.78million aggregate liquidation preference,
respectively) |
40,915 |
|
|
40,733 |
|
| Common
Stock ($0.01 par value, 18,750,000 shares authorized, 8,744,189
and8,503,819 shares issued and outstanding, respectively) |
87 |
|
|
85 |
|
|
Additional paid-in capital |
226,978 |
|
|
223,939 |
|
|
Accumulated deficit |
(204,925 |
) |
|
(170,377 |
) |
| Total
Shareholders’ Equity |
63,508 |
|
|
94,833 |
|
|
Noncontrolling interests |
7,088 |
|
|
10,359 |
|
|
Total Equity |
70,596 |
|
|
105,192 |
|
|
Total Liabilities and Equity |
$ |
457,674 |
|
|
$ |
489,046 |
|
|
|
|
|
|
|
|
|
|
| Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries Reconciliation of Funds From
Operations (FFO)(in thousands) |
|
|
| |
Three Months Ended December 31, |
| |
Same Stores |
|
New Stores |
|
Total |
|
Period Over PeriodChanges |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
$ |
|
% |
| Net Loss |
$ |
(8,420 |
) |
|
$ |
(3,558 |
) |
|
$ |
(299 |
) |
|
$ |
(473 |
) |
|
$ |
(8,719 |
) |
|
$ |
(4,031 |
) |
|
$ |
(4,688 |
) |
|
(116.30 |
)% |
| Depreciation and
amortization of real estate assets |
3,480 |
|
|
3,974 |
|
|
2,296 |
|
|
1,357 |
|
|
5,776 |
|
|
5,331 |
|
|
445 |
|
|
8.35 |
% |
| Loss on disposal of
properties |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
% |
| Gain on disposal of
properties-discontinued operations |
— |
|
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
(1 |
) |
|
(100.00 |
)% |
| FFO |
$ |
(4,940 |
) |
|
$ |
417 |
|
|
$ |
1,997 |
|
|
$ |
884 |
|
|
$ |
(2,943 |
) |
|
$ |
1,301 |
|
|
$ |
(4,244 |
) |
|
(326.21 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Years Ended December 31, |
| |
Same Stores |
|
New Stores |
|
Total |
|
Period Over PeriodChanges |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
$ |
|
% |
| Net Loss |
$ |
(10,770 |
) |
|
$ |
(10,402 |
) |
|
$ |
(2,008 |
) |
|
$ |
(1,836 |
) |
|
$ |
(12,778 |
) |
|
$ |
(12,238 |
) |
|
$ |
(540 |
) |
|
(4.41 |
)% |
| Depreciation and
amortization of real estate assets |
14,749 |
|
|
17,388 |
|
|
11,482 |
|
|
3,249 |
|
|
26,231 |
|
|
20,637 |
|
|
5,594 |
|
|
27.11 |
% |
| Loss (gain) on disposal
of properties |
12 |
|
|
— |
|
|
(1,033 |
) |
|
— |
|
|
(1,021 |
) |
|
— |
|
|
(1,021 |
) |
|
(100.00 |
)% |
| Gain on disposal of
properties-discontinued operations |
(1,502 |
) |
|
(688 |
) |
|
— |
|
|
— |
|
|
(1,502 |
) |
|
(688 |
) |
|
(814 |
) |
|
(118.31 |
)% |
| FFO |
$ |
2,489 |
|
|
$ |
6,298 |
|
|
$ |
8,441 |
|
|
$ |
1,413 |
|
|
$ |
10,930 |
|
|
$ |
7,711 |
|
|
$ |
3,219 |
|
|
41.75 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Wheeler Real Estate Investment Trust, Inc. and
Subsidiaries Reconciliation of Adjusted
Funds From Operations (AFFO)(in thousands, except
per share data) |
| |
|
|
|
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Net Loss |
$ |
(8,719 |
) |
|
$ |
(4,031 |
) |
|
$ |
(12,778 |
) |
|
$ |
(12,238 |
) |
| Depreciation and
amortization of real estate assets |
5,776 |
|
|
5,331 |
|
|
26,231 |
|
|
20,637 |
|
| Gain on disposal of
properties |
— |
|
|
— |
|
|
(1,021 |
) |
|
— |
|
| Loss (gain) on disposal
of properties-discontinued operations |
— |
|
|
1 |
|
|
(1,502 |
) |
|
(688 |
) |
| FFO |
(2,943 |
) |
|
1,301 |
|
|
10,930 |
|
|
7,711 |
|
| Preferred stock
dividends |
(2,496 |
) |
|
(2,450 |
) |
|
(9,969 |
) |
|
(4,713 |
) |
| Preferred stock
accretion adjustments |
204 |
|
|
162 |
|
|
809 |
|
|
417 |
|
| FFO available to common
shareholders and common unitholders |
(5,235 |
) |
|
(987 |
) |
|
1,770 |
|
|
3,415 |
|
| Impairment of notes
receivable |
5,261 |
|
|
— |
|
|
5,261 |
|
|
— |
|
| Acquisition costs |
269 |
|
|
1,115 |
|
|
1,101 |
|
|
2,029 |
|
| Capital related
costs |
195 |
|
|
203 |
|
|
663 |
|
|
514 |
|
| Other non-recurring and
non-cash expenses (1) |
117 |
|
|
158 |
|
|
294 |
|
|
664 |
|
| Share-based
compensation |
135 |
|
|
872 |
|
|
870 |
|
|
1,454 |
|
| Straight-line rent |
(146 |
) |
|
(163 |
) |
|
(712 |
) |
|
(386 |
) |
| Loan cost
amortization |
578 |
|
|
662 |
|
|
3,087 |
|
|
2,126 |
|
| Accrued interest
income |
774 |
|
|
(121 |
) |
|
415 |
|
|
(415 |
) |
| Above (below) market
lease amortization |
5 |
|
|
(40 |
) |
|
453 |
|
|
29 |
|
| Recurring capital
expenditures and tenant improvement reserves |
(245 |
) |
|
(246 |
) |
|
(941 |
) |
|
(760 |
) |
| AFFO |
$ |
1,708 |
|
|
$ |
1,453 |
|
|
$ |
12,261 |
|
|
$ |
8,670 |
|
| |
|
|
|
|
|
|
|
| Weighted Average Common
Shares |
8,739,455 |
|
|
8,497,738 |
|
|
8,654,240 |
|
|
8,420,374 |
|
| Weighted Average Common
Units |
639,555 |
|
|
743,274 |
|
|
702,168 |
|
|
689,162 |
|
| Total Common Shares and
Units |
9,379,010 |
|
|
9,241,012 |
|
|
9,356,408 |
|
|
9,109,536 |
|
| FFO per Common Share
and Common Units |
$ |
(0.56 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.19 |
|
|
$ |
0.37 |
|
| AFFO per Common Share
and Common Units |
$ |
0.18 |
|
|
$ |
0.16 |
|
|
$ |
1.31 |
|
|
$ |
0.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Other
non-recurring expenses are detailed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" included
in our Annual Report on Form 10-K for the period ended December 31,
2017. |
| |
|
|
| Wheeler Real Estate Investment Trust, Inc. and
SubsidiariesReconciliation of Property Net
Operating Income(in thousands) |
|
|
| |
|
Three Months EndedDecember
31, |
|
Years EndedDecember
31, |
| |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Net
Loss |
|
$ |
(8,719 |
) |
|
$ |
(4,031 |
) |
|
$ |
(12,778 |
) |
|
$ |
(12,238 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
| Net
Income from Discontinued Operations |
|
— |
|
|
(20 |
) |
|
(1,518 |
) |
|
(824 |
) |
| Income
tax expense |
|
(38 |
) |
|
107 |
|
|
137 |
|
|
107 |
|
| Interest
expense |
|
4,168 |
|
|
3,555 |
|
|
17,165 |
|
|
13,356 |
|
| Interest
income |
|
(363 |
) |
|
(391 |
) |
|
(1,443 |
) |
|
(692 |
) |
| Loss
(gain) on disposal of properties |
|
— |
|
|
— |
|
|
(1,021 |
) |
|
— |
|
| Corporate
general & administrative |
|
2,509 |
|
|
3,633 |
|
|
7,364 |
|
|
9,924 |
|
| Provision
for credit losses |
|
2,378 |
|
|
229 |
|
|
2,821 |
|
|
425 |
|
|
Impairment of notes receivable |
|
5,261 |
|
|
— |
|
|
5,261 |
|
|
— |
|
|
Depreciation and amortization |
|
5,776 |
|
|
5,331 |
|
|
26,231 |
|
|
20,637 |
|
| Non-REIT
management and leasing services |
|
(598 |
) |
|
215 |
|
|
927 |
|
|
1,567 |
|
|
Development income |
|
(83 |
) |
|
(75 |
) |
|
(537 |
) |
|
(244 |
) |
| Asset
management and commission revenues |
|
(261 |
) |
|
(362 |
) |
|
(1,826 |
) |
|
(1,819 |
) |
| Property Net
Operating Income |
|
$ |
10,030 |
|
|
$ |
8,191 |
|
|
$ |
40,783 |
|
|
$ |
30,199 |
|
| |
|
|
|
|
|
|
|
|
| Property
revenues |
|
$ |
13,952 |
|
|
$ |
11,590 |
|
|
$ |
56,172 |
|
|
$ |
42,097 |
|
| Property
expenses |
|
3,922 |
|
|
3,399 |
|
|
15,389 |
|
|
11,898 |
|
| Property Net
Operating Income |
|
$ |
10,030 |
|
|
$ |
8,191 |
|
|
$ |
40,783 |
|
|
$ |
30,199 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Wheeler Real Estate Investment Trust, Inc. and
SubsidiariesReconciliation of Earnings Before
Interest, Taxes, Depreciation and Amortization -
EBITDA(in thousands) |
|
|
| |
Three Months Ended December 31, |
|
Years EndedDecember
31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Net
Loss |
$ |
(8,719 |
) |
|
$ |
(4,031 |
) |
|
$ |
(12,778 |
) |
|
$ |
(12,238 |
) |
| Add back: |
Depreciation and
amortization (1) |
5,781 |
|
|
5,291 |
|
|
26,684 |
|
|
20,666 |
|
| |
Interest Expense
(2) |
4,168 |
|
|
3,568 |
|
|
17,174 |
|
|
13,425 |
|
| |
Income taxes |
(38 |
) |
|
107 |
|
|
137 |
|
|
107 |
|
| EBITDA |
1,192 |
|
|
4,935 |
|
|
31,217 |
|
|
21,960 |
|
| Adjustments
for items affecting comparability: |
|
|
|
|
|
|
|
| |
Acquisition costs |
269 |
|
|
1,115 |
|
|
1,101 |
|
|
2,029 |
|
| |
Capital related
costs |
195 |
|
|
203 |
|
|
663 |
|
|
514 |
|
| |
Other non-recurring
expenses (3) |
117 |
|
|
158 |
|
|
294 |
|
|
664 |
|
| |
Impairment of notes
receivable |
5,261 |
|
|
— |
|
|
5,261 |
|
|
— |
|
| |
Gain on disposal of
properties |
— |
|
|
— |
|
|
(1,021 |
) |
|
— |
|
| |
Loss (gain) on disposal
of properties-discontinued operations |
— |
|
|
1 |
|
|
(1,502 |
) |
|
(688 |
) |
| Adjusted
EBITDA |
$ |
7,034 |
|
|
$ |
6,412 |
|
|
$ |
36,013 |
|
|
$ |
24,479 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 Annual Report on Form 10-K for the period ended December 31,
2017. |
| |
|
|
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