Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“WHLR” or the “Company”) today reported
operating and financial results for the three and twelve months
ending December 31, 2018.
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net loss per common
share |
|
$ |
(1.66 |
) |
|
$ |
(1.22 |
) |
|
$ |
(3.17 |
) |
|
$ |
(2.54 |
) |
FFO per common share
and common unit |
|
(0.05 |
) |
|
(0.56 |
) |
|
0.42 |
|
|
0.19 |
|
AFFO per common share
and common unit |
|
0.15 |
|
|
0.18 |
|
|
0.73 |
|
|
1.31 |
|
2018 FOURTH QUARTER
HIGHLIGHTS(all comparisons to the same prior year
period unless otherwise
noted)
- Paid down the Revere Term Loan with proceeds from the sale of
the Monarch Bank Building for a contract price of $1.8 million,
resulting in a gain of $151 thousand and proceeds of $299
thousand.
- Extended the Bulldog Investors Senior Convertible Notes to June
2019 with monthly principal and interest payments of $234
thousand.
- Extended the First National Bank and Lumber River loans for a
total of $4.5 million in indebtedness, and extended the debt
maturities to 2020.
- Paid $575 thousand on the Revere Term Loan from proceeds
generated through the Riversedge North refinancing of $1.8 million,
which extended the debt maturity to 2023.
- Recognized impairment charges of $5.5 million on goodwill, $3.9
million on land held for sale and $1.7 million on the Sea Turtle
notes receivable.
- On December 20, 2018 the company suspended fourth quarter
dividends on shares of its Series A Preferred Stock, Series B
Convertible Preferred Stock and Series D Cumulative Convertible
Preferred Stock, totaling approximately $3.0 million.
- Net loss attributable to WHLR's common stock, $0.01 par value
per share ("Common Stock") shareholders of $15.8 million, or
($1.66) per share.
- Total revenue from continuing operations increased by 12.39% or
$1.8 million.
- Property Net Operating Income ("NOI") from continuing
operations increased by 11.97% to approximately $11.2 million.
- Adjusted Funds from Operations ("AFFO") of $0.15 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 we
recaptured in its 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 with rents commencing in the first quarter
of 2019.
- Received approval on all Southeastern Grocers lease
modifications by the bankruptcy court, representing 543 thousand
square feet.
- Executed a lease termination fee of $980 thousand with Farm
Fresh at Berkley Shopping Center.
- Reduced the KeyBank Credit Line to $52.1 million from $68.0
million at December 31, 2017.
- Reduced the Revere Term Loan to $1.1 million from $6.8 million
at December 31, 2017.
- Sold 4 properties for a total of $11.6 million, resulting in a
gain of $3.4 million and net proceeds of $6.3 million which were
used to deleverage the balance sheet.
- Recorded a lease termination expense of $250 thousand to allow
a space to be available for a high credit grocery store tenant at
JANAF.
- Net loss attributable to Wheeler's Common Stock shareholders of
$29.3 million, or ($3.17) per share.
- Total revenue from continuing operations increased by 12.26% or
$7.2 million.
- NOI from continuing operations increased by 15.05% to
approximately $46.4 million.
- AFFO of $0.73 per share of the Company's Common Stock and
Common Unit.
- Reinvested $5.1 million in our properties through tenant
improvements and capital expenditures.
SUBSEQUENT EVENTS
- On January 11, 2019, the Company completed the sale of Jenks
Plaza for a contract price of $2.20 million, resulting in a gain of
$388 thousand with net proceeds of $1.84 million. Net
proceeds were used to pay $323 thousand on the Revere Term Loan and
$1.51 million on the First National Bank Line of Credit reducing
the First National Bank Line of Credit to $1.42
million.
- On February 7, 2019, the Company completed the sale of a
1.28-acre parcel of non-income producing land at Harbor Pointe for
a contract price of $550 thousand, resulting in net proceeds of
$496 thousand. Net proceeds were used to pay off the
associated debt and $30 thousand on the Revere Term Loan.
Approximately 5 acres of land remain at Harbor
Pointe.
- In January 2019, the Company extended the promissory notes at
Perimeter Square extending the maturity dates to March 2019 from
December 2018 and extended the maturity date on the Revere Term
Loan to April 2019 from February 2019.
- Reduced the Revere Term Loan to $505 thousand, $200 thousand
from monthly principal payments from operating cash and $353
thousand from sales proceeds noted above.
- Reduced the Bulldog Investors Senior Convertible Notes by $450
thousand to $919 thousand from $1.4 million through monthly
principal payments from operating cash.
BALANCE SHEET
- Cash and cash equivalents totaled $3.5 million at
December 31, 2018, compared to $3.7 million at
December 31, 2017.
- Total debt was $369.6 million at December 31, 2018 (including
debt associated with assets held for sale), compared to $371.5
million at September 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 was 4.8% with a term of
4.31 years at December 31, 2018 (including debt associated with
assets held for sale). This compares to an interest rate of
4.6% and a term of 4.81 years at December 31, 2017.
- Net investment properties as of December 31, 2018 totaled
at $441.4 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
the loan encumbering LaGrange for a total of $20.3 million, and
extended debt maturities out 5 years to 2023.
- Paid down the Revere Term Loan, which matures in April 2019
with monthly principal payments of $100,000. The loan bears
interest at 10.0%. The loan was paid down to $1.1 million, using
the following sources: $4.3 million through property sales
proceeds, $150 thousand through property refinancings and $1.3
million from operating cash.
- 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, legal, accounting
and other professional fees.
DIVIDENDS
- For the quarter ended December 31, 2018, the Company had
undeclared 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 year ended December 31, 2018, the Company declared
dividends of approximately $9.8 million and had undeclared
dividends of $3.0 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 89.4% leased.
- Q4-2018 Leasing Activity-- Executed 29 lease renewals
totaling 131,600 square feet at a weighted-average increase of
$0.53 per square foot, representing an increase of 4.83% over prior
rates.-- Signed 8 new leases totaling approximately 56,579
square feet with a weighted-average rate of $10.38 per square
foot.
- YTD 2018 Leasing Activity-- Executed 119 lease renewals
totaling 693,970 square feet at a weighted-average increase of
$0.52 per square foot, representing an increase of 6.05% over prior
rates.-- Signed 55 new leases totaling approximately 290,986
square feet with a weighted-average rate of $9.06 per square
foot.
- The Company’s gross leasable area ("GLA"), which is subject to
leases that expire over the next twelve months, including month-to
month leases declined to approximately 7.08% at December 31, 2018,
compared to 9.39% at December 31, 2017. At December 31, 2018,
50.75% of this expiring GLA is 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 year ended
December 31, 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 two of these locations
had rents commence in 2018 with the third location commencing rent
in February 2019. These backfills reduce the impact on the
Company's annualized base rent to $1.9 million.
SAME STORE RESULTS
- Same-store NOI for the three months ended December 31, 2018
compared to December 31, 2017, declined by (8.30%) and (10.62%) on
a cash basis. The same-store pool for the 3 months ended December
31, 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
5.78% 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 Walnut Hill, the
impact of a full quarter of the lease termination at Berkley
Shopping Center and loss of rents on the Monarch Bank Building and
Shoppes at Eagle Harbor sold in 2018. Same Store property
expenses decreased 1.17% as a result of lower insurance
expenses.
- Same-store NOI for the year ended December 31, 2018 compared to
December 31, 2017, declined by (4.01%) and (6.20%) on a cash basis.
Same-store results for the year ended December 31, 2018, were
driven, by a decrease of 2.66% in property revenues as a result of
the impact of over half a year of Southeastern Grocers recaptures
and rent modifications accompanied by anchor lease expirations at
South Lake, Fort Howard and Walnut Hill, full year of rent
modifications at Devine and loss of rents on the Monarch Bank
Building and Shoppes at Eagle Harbor both sold in 2018, offset by
$980 thousand in lease termination fees on Farm Fresh at Berkley
Shopping Center. Property expenses increased 1.19% as a result of
increased real estate taxes and utilities a direct result of vacant
anchor space partially offset by a decrease in insurance
expense. The tenant provision for credit losses
decreased 12.25% 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 an undeveloped land parcel at Laskin Road for a contract
price of $2.9 million, resulting in a $903 thousand gain with net
proceeds of $2.7 million.
- Sold Shoppes at Eagle Harbor for a contract price of $5.7
million, resulting in a $1.3 million gain with net proceeds of $2.1
million.
- Sold Monarch Bank Building for a contract price of $1.8
million, resulting in a $151 thousand gain with net proceeds of
$299 thousand.
SUPPLEMENTAL INFORMATIONFurther details
regarding Wheeler Real Estate Investment Trust, Inc.’s operations
and financials for the period ended December 31, 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, February 27, 2019 at 10:00 am Eastern Time to
review its financial performance and operating results for the
quarter ended December 31, 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 February 27, 2019 (one hour after the end of the
conference call) to March 27, 2019 at 10:00 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 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
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.
INVESTOR CONTACT:Mary
JensenInvestor Relations(757) 627-9088mjensen@whlr.us
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesConsolidated Statements of
Operations(in thousands, except share and per
share data)
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
REVENUE: |
|
|
|
|
|
|
|
Rental
revenues |
$ |
12,589 |
|
|
$ |
10,891 |
|
|
$ |
50,952 |
|
|
$ |
44,156 |
|
Asset
management fees |
46 |
|
|
120 |
|
|
189 |
|
|
927 |
|
Commissions |
38 |
|
|
141 |
|
|
140 |
|
|
899 |
|
Tenant
reimbursements |
3,258 |
|
|
2,905 |
|
|
12,595 |
|
|
11,032 |
|
Development
and other revenues |
136 |
|
|
239 |
|
|
1,833 |
|
|
1,521 |
|
Total Revenue |
16,067 |
|
|
14,296 |
|
|
65,709 |
|
|
58,535 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
Property
operations |
4,669 |
|
|
3,922 |
|
|
18,473 |
|
|
15,389 |
|
Non-REIT
management and leasing services |
16 |
|
|
(598 |
) |
|
75 |
|
|
927 |
|
Depreciation
and amortization |
6,151 |
|
|
5,776 |
|
|
27,094 |
|
|
26,231 |
|
Impairment
of goodwill |
5,486 |
|
|
— |
|
|
5,486 |
|
|
— |
|
Provision
for credit losses |
99 |
|
|
2,378 |
|
|
434 |
|
|
2,821 |
|
Impairment
of notes receivable |
1,739 |
|
|
5,261 |
|
|
1,739 |
|
|
5,261 |
|
Corporate
general & administrative |
1,749 |
|
|
2,509 |
|
|
8,228 |
|
|
7,364 |
|
Other
operating expenses |
— |
|
|
— |
|
|
250 |
|
|
— |
|
Total Operating Expenses |
19,909 |
|
|
19,248 |
|
|
61,779 |
|
|
57,993 |
|
Gain on
disposal of properties |
151 |
|
|
— |
|
|
2,463 |
|
|
1,021 |
|
Operating (Loss)
Income |
(3,691 |
) |
|
(4,952 |
) |
|
6,393 |
|
|
1,563 |
|
Interest
income |
1 |
|
|
363 |
|
|
4 |
|
|
1,443 |
|
Interest
expense |
(5,288 |
) |
|
(4,168 |
) |
|
(20,228 |
) |
|
(17,165 |
) |
Net Loss from
Continuing Operations Before Income Taxes |
(8,978 |
) |
|
(8,757 |
) |
|
(13,831 |
) |
|
(14,159 |
) |
Income tax
expense (benefit) |
32 |
|
|
38 |
|
|
(40 |
) |
|
(137 |
) |
Net Loss from
Continuing Operations |
(8,946 |
) |
|
(8,719 |
) |
|
(13,871 |
) |
|
(14,296 |
) |
Discontinued
Operations |
|
|
|
|
|
|
|
(Loss)
income from discontinued operations |
(3,938 |
) |
|
— |
|
|
(3,938 |
) |
|
16 |
|
Gain on
disposal of properties |
— |
|
|
— |
|
|
903 |
|
|
1,502 |
|
Net (Loss) Income
from Discontinued Operations |
(3,938 |
) |
|
— |
|
|
(3,035 |
) |
|
1,518 |
|
Net
Loss |
(12,884 |
) |
|
(8,719 |
) |
|
(16,906 |
) |
|
(12,778 |
) |
Less: Net
loss attributable to noncontrolling interests |
(336 |
) |
|
(519 |
) |
|
(406 |
) |
|
(684 |
) |
Net Loss
Attributable to Wheeler REIT |
(12,548 |
) |
|
(8,200 |
) |
|
(16,500 |
) |
|
(12,094 |
) |
Preferred
Stock dividends - declared |
(169 |
) |
|
(2,496 |
) |
|
(9,790 |
) |
|
(9,969 |
) |
Preferred
Stock dividends - undeclared |
(3,037 |
) |
|
— |
|
|
(3,037 |
) |
|
— |
|
Net Loss
Attributable to Wheeler REIT Common Shareholders |
$ |
(15,754 |
) |
|
$ |
(10,696 |
) |
|
$ |
(29,327 |
) |
|
$ |
(22,063 |
) |
|
|
|
|
|
|
|
|
Loss per
share from continuing operations (basic and diluted) |
$ |
(1.25 |
) |
|
$ |
(1.22 |
) |
|
$ |
(2.85 |
) |
|
$ |
(2.70 |
) |
(Loss)
income per share from discontinued operations |
(0.41 |
) |
|
— |
|
|
(0.32 |
) |
|
0.16 |
|
Total loss
per share |
$ |
(1.66 |
) |
|
$ |
(1.22 |
) |
|
$ |
(3.17 |
) |
|
$ |
(2.54 |
) |
Weighted-average number of shares: |
|
|
|
|
|
|
|
Basic and
Diluted |
9,484,185 |
|
|
8,739,455 |
|
|
9,256,234 |
|
|
8,654,240 |
|
|
|
|
|
|
|
|
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesConsolidated Balance
Sheets(in thousands, except par value and share
data)
|
December 31, |
|
2018 |
|
2017 |
ASSETS: |
|
|
|
Investment
properties, net |
$ |
433,142 |
|
|
$ |
375,199 |
|
Cash and
cash equivalents |
3,544 |
|
|
3,677 |
|
Restricted
cash |
14,455 |
|
|
8,609 |
|
Rents and
other tenant receivables, net |
5,539 |
|
|
5,619 |
|
Notes
receivable, net |
5,000 |
|
|
6,739 |
|
Goodwill |
— |
|
|
5,486 |
|
Assets held
for sale |
8,982 |
|
|
9,135 |
|
Above market
lease intangible, net |
7,346 |
|
|
8,778 |
|
Deferred
costs and other assets, net |
30,073 |
|
|
34,432 |
|
Total Assets |
$ |
508,081 |
|
|
$ |
457,674 |
|
LIABILITIES: |
|
|
|
Loans
payable, net |
$ |
360,117 |
|
|
$ |
307,375 |
|
Liabilities
associated with assets held for sale |
4,632 |
|
|
792 |
|
Below market
lease intangible, net |
10,045 |
|
|
9,616 |
|
Accounts
payable, accrued expenses and other liabilities |
12,077 |
|
|
10,579 |
|
Dividends
payable |
— |
|
|
5,480 |
|
Total Liabilities |
386,871 |
|
|
333,842 |
|
Commitments and
contingencies |
— |
|
|
— |
|
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;
$91.98 million and $55.93 million aggregate liquidation preference,
respectively) |
76,955 |
|
|
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) |
41,000 |
|
|
40,915 |
|
Common Stock
($0.01 par value, 18,750,000 shares authorized, 9,511,464 and
8,744,189 shares issued and outstanding, respectively) |
95 |
|
|
87 |
|
Additional
paid-in capital |
233,697 |
|
|
226,978 |
|
Accumulated
deficit |
(233,184 |
) |
|
(204,925 |
) |
Total
Shareholders’ Equity |
42,061 |
|
|
63,508 |
|
Noncontrolling interests |
2,194 |
|
|
7,088 |
|
Total Equity |
44,255 |
|
|
70,596 |
|
Total Liabilities and Equity |
$ |
508,081 |
|
|
$ |
457,674 |
|
|
Wheeler Real Estate Investment Trust,
Inc. and Subsidiaries Reconciliation
of Funds From Operations (FFO)(unaudited, in
thousands)
|
Three Months Ended
December 31, |
|
Same Stores |
|
New Stores |
|
Total |
|
Year Over Year Changes |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
$ |
|
% |
Net loss |
$ |
(12,852 |
) |
|
$ |
(8,719 |
) |
|
$ |
(32 |
) |
|
$ |
— |
|
|
$ |
(12,884 |
) |
|
$ |
(8,719 |
) |
|
$ |
(4,165 |
) |
|
(47.77 |
)% |
Depreciation and
amortization of real estate assets |
4,855 |
|
|
5,776 |
|
|
1,296 |
|
|
— |
|
|
6,151 |
|
|
5,776 |
|
|
375 |
|
|
6.49 |
% |
Impairment of
goodwill |
5,486 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,486 |
|
|
— |
|
|
5,486 |
|
|
100.00 |
% |
Impairment of land |
3,938 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,938 |
|
|
— |
|
|
3,938 |
|
|
100.00 |
% |
Gain on disposal of
properties |
(151 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(151 |
) |
|
— |
|
|
(151 |
) |
|
(100.00 |
)% |
FFO |
$ |
1,276 |
|
|
$ |
(2,943 |
) |
|
$ |
1,264 |
|
|
$ |
— |
|
|
$ |
2,540 |
|
|
$ |
(2,943 |
) |
|
$ |
5,483 |
|
|
186.31 |
% |
|
Years Ended December 31, |
|
Same Stores |
|
New Stores |
|
Total |
|
Year Over Year Changes |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
$ |
|
% |
Net loss |
$ |
(16,696 |
) |
|
$ |
(12,778 |
) |
|
$ |
(210 |
) |
|
$ |
— |
|
|
$ |
(16,906 |
) |
|
$ |
(12,778 |
) |
|
$ |
(4,128 |
) |
|
(32.31 |
)% |
Depreciation and
amortization of real estate assets |
22,386 |
|
|
26,231 |
|
|
4,708 |
|
|
— |
|
|
27,094 |
|
|
26,231 |
|
|
863 |
|
|
3.29 |
% |
Impairment of
goodwill |
5,486 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,486 |
|
|
— |
|
|
5,486 |
|
|
100.00 |
% |
Impairment of land |
3,938 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,938 |
|
|
— |
|
|
3,938 |
|
|
100.00 |
% |
Gain on disposal of
properties |
(2,463 |
) |
|
(1,021 |
) |
|
— |
|
|
— |
|
|
(2,463 |
) |
|
(1,021 |
) |
|
(1,442 |
) |
|
(141.23 |
)% |
Gain on disposal of
properties-discontinued operations |
(903 |
) |
|
(1,502 |
) |
|
— |
|
|
— |
|
|
(903 |
) |
|
(1,502 |
) |
|
599 |
|
|
39.88 |
% |
FFO |
$ |
11,748 |
|
|
$ |
10,930 |
|
|
$ |
4,498 |
|
|
$ |
— |
|
|
$ |
16,246 |
|
|
$ |
10,930 |
|
|
$ |
5,316 |
|
|
48.64 |
% |
Wheeler Real Estate Investment Trust,
Inc. and Subsidiaries Reconciliation
of Funds From Operations (FFO)(unaudited, in
thousands)
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net Loss |
$ |
(12,884 |
) |
|
$ |
(8,719 |
) |
|
$ |
(16,906 |
) |
|
$ |
(12,778 |
) |
Depreciation and
amortization of real estate assets |
6,151 |
|
|
5,776 |
|
|
27,094 |
|
|
26,231 |
|
Impairment of
goodwill |
5,486 |
|
|
— |
|
|
5,486 |
|
|
— |
|
Impairment of land |
3,938 |
|
|
— |
|
|
3,938 |
|
|
— |
|
Gain on disposal of
properties |
(151 |
) |
|
— |
|
|
(2,463 |
) |
|
(1,021 |
) |
Gain on disposal of
properties-discontinued operations |
— |
|
|
— |
|
|
(903 |
) |
|
(1,502 |
) |
FFO |
2,540 |
|
|
(2,943 |
) |
|
16,246 |
|
|
10,930 |
|
Preferred stock
dividends-declared |
(169 |
) |
|
(2,496 |
) |
|
(9,790 |
) |
|
(9,969 |
) |
Preferred stock
dividends-undeclared |
(3,037 |
) |
|
— |
|
|
(3,037 |
) |
|
— |
|
Preferred stock
accretion adjustments |
169 |
|
|
204 |
|
|
678 |
|
|
809 |
|
FFO available to common
shareholders and common unitholders |
(497 |
) |
|
(5,235 |
) |
|
4,097 |
|
|
1,770 |
|
Impairment of notes
receivable |
1,739 |
|
|
5,261 |
|
|
1,739 |
|
|
5,261 |
|
Acquisition and
development costs |
(46 |
) |
|
269 |
|
|
300 |
|
|
1,101 |
|
Capital related
costs |
168 |
|
|
195 |
|
|
576 |
|
|
663 |
|
Other non-recurring and
non-cash expenses (1) |
— |
|
|
117 |
|
|
103 |
|
|
294 |
|
Share-based
compensation |
213 |
|
|
135 |
|
|
940 |
|
|
870 |
|
Straight-line rent |
(244 |
) |
|
(146 |
) |
|
(1,197 |
) |
|
(712 |
) |
Loan cost
amortization |
681 |
|
|
578 |
|
|
2,363 |
|
|
3,087 |
|
Accrued interest
income |
— |
|
|
774 |
|
|
— |
|
|
415 |
|
(Below) above market
lease amortization |
(274 |
) |
|
5 |
|
|
(695 |
) |
|
453 |
|
Recurring capital
expenditures and tenant improvement reserves |
(285 |
) |
|
(245 |
) |
|
(1,143 |
) |
|
(941 |
) |
AFFO |
$ |
1,455 |
|
|
$ |
1,708 |
|
|
$ |
7,083 |
|
|
$ |
12,261 |
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares |
9,484,185 |
|
|
8,739,455 |
|
|
9,256,234 |
|
|
8,654,240 |
|
Weighted Average Common
Units |
259,054 |
|
|
639,555 |
|
|
389,421 |
|
|
702,168 |
|
Total Common Shares and
Units |
9,743,239 |
|
|
9,379,010 |
|
|
9,645,655 |
|
|
9,356,408 |
|
FFO per Common Share
and Common Units |
$ |
(0.05 |
) |
|
$ |
(0.56 |
) |
|
$ |
0.42 |
|
|
$ |
0.19 |
|
AFFO per Common Share
and Common Units |
$ |
0.15 |
|
|
$ |
0.18 |
|
|
$ |
0.73 |
|
|
$ |
1.31 |
|
(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-K for the year
ended December 31, 2018.
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Property
Net Operating Income(unaudited, in
thousands)
|
Three Months Ended
December 31, |
|
Same Store |
|
New Store |
|
Total |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(in thousands) |
Net
Loss |
$ |
(12,852 |
) |
|
$ |
(8,719 |
) |
|
$ |
(32 |
) |
|
$ |
— |
|
|
$ |
(12,884 |
) |
|
$ |
(8,719 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Net Loss
from Discontinued Operations |
3,938 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,938 |
|
|
— |
|
Income tax
benefit |
(32 |
) |
|
(38 |
) |
|
— |
|
|
— |
|
|
(32 |
) |
|
(38 |
) |
Interest
expense |
4,542 |
|
|
4,168 |
|
|
746 |
|
|
— |
|
|
5,288 |
|
|
4,168 |
|
Interest
income |
(1 |
) |
|
(363 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
|
(363 |
) |
Gain on
disposal of properties |
(151 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(151 |
) |
|
— |
|
Corporate
general & administrative |
1,729 |
|
|
2,509 |
|
|
20 |
|
|
— |
|
|
1,749 |
|
|
2,509 |
|
Impairment
of notes receivable |
1,739 |
|
|
5,261 |
|
|
— |
|
|
— |
|
|
1,739 |
|
|
5,261 |
|
Provision
for credit losses- non-tenant |
— |
|
|
2,364 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,364 |
|
Impairment
of goodwill |
5,486 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,486 |
|
|
— |
|
Depreciation
and amortization |
4,855 |
|
|
5,776 |
|
|
1,296 |
|
|
— |
|
|
6,151 |
|
|
5,776 |
|
Non-REIT
management and leasing services |
16 |
|
|
(598 |
) |
|
— |
|
|
— |
|
|
16 |
|
|
(598 |
) |
Development
income |
— |
|
|
(83 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(83 |
) |
Asset
management and commission revenues |
(84 |
) |
|
(261 |
) |
|
— |
|
|
— |
|
|
(84 |
) |
|
(261 |
) |
Property Net
Operating Income |
$ |
9,185 |
|
|
$ |
10,016 |
|
|
$ |
2,030 |
|
|
$ |
— |
|
|
$ |
11,215 |
|
|
$ |
10,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
revenues |
$ |
13,146 |
|
|
$ |
13,952 |
|
|
$ |
2,837 |
|
|
$ |
— |
|
|
$ |
15,983 |
|
|
$ |
13,952 |
|
Property
expenses |
3,876 |
|
|
3,922 |
|
|
793 |
|
|
— |
|
|
4,669 |
|
|
3,922 |
|
Provision
for credit losses- tenant |
85 |
|
|
14 |
|
|
14 |
|
|
— |
|
|
99 |
|
|
14 |
|
Property Net
Operating Income |
$ |
9,185 |
|
|
$ |
10,016 |
|
|
$ |
2,030 |
|
|
$ |
— |
|
|
$ |
11,215 |
|
|
$ |
10,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
Same Store |
|
New Store |
|
Total |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(in thousands) |
Net
Loss |
$ |
(16,696 |
) |
|
$ |
(12,778 |
) |
|
$ |
(210 |
) |
|
$ |
— |
|
|
$ |
(16,906 |
) |
|
$ |
(12,778 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Net Loss
(Income) from Discontinued Operations |
3,035 |
|
|
(1,518 |
) |
|
— |
|
|
— |
|
|
3,035 |
|
|
(1,518 |
) |
Income tax
expense |
40 |
|
|
137 |
|
|
— |
|
|
— |
|
|
40 |
|
|
137 |
|
Interest
expense |
17,379 |
|
|
17,165 |
|
|
2,849 |
|
|
— |
|
|
20,228 |
|
|
17,165 |
|
Interest
income |
(4 |
) |
|
(1,443 |
) |
|
— |
|
|
— |
|
|
(4 |
) |
|
(1,443 |
) |
Gain on
disposal of properties |
(2,463 |
) |
|
(1,021 |
) |
|
— |
|
|
— |
|
|
(2,463 |
) |
|
(1,021 |
) |
Other
operating expenses |
— |
|
|
— |
|
|
250 |
|
|
— |
|
|
250 |
|
|
— |
|
Corporate
general & administrative |
8,136 |
|
|
7,364 |
|
|
92 |
|
|
— |
|
|
8,228 |
|
|
7,364 |
|
Impairment
of notes receivable |
1,739 |
|
|
5,261 |
|
|
— |
|
|
— |
|
|
1,739 |
|
|
5,261 |
|
Provision
for credit losses- non-tenant |
(77 |
) |
|
2,364 |
|
|
— |
|
|
— |
|
|
(77 |
) |
|
2,364 |
|
Impairment
of goodwill |
5,486 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,486 |
|
|
— |
|
Depreciation
and amortization |
22,386 |
|
|
26,231 |
|
|
4,708 |
|
|
— |
|
|
27,094 |
|
|
26,231 |
|
Non-REIT
management and leasing services |
75 |
|
|
927 |
|
|
— |
|
|
— |
|
|
75 |
|
|
927 |
|
Development
income |
— |
|
|
(537 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(537 |
) |
Asset
management and commission revenues |
(329 |
) |
|
(1,826 |
) |
|
— |
|
|
— |
|
|
(329 |
) |
|
(1,826 |
) |
Property Net
Operating Income |
$ |
38,707 |
|
|
$ |
40,326 |
|
|
$ |
7,689 |
|
|
$ |
— |
|
|
$ |
46,396 |
|
|
$ |
40,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
revenues |
$ |
54,680 |
|
|
$ |
56,172 |
|
|
$ |
10,700 |
|
|
$ |
— |
|
|
$ |
65,380 |
|
|
$ |
56,172 |
|
Property
expenses |
15,572 |
|
|
15,389 |
|
|
2,901 |
|
|
— |
|
|
18,473 |
|
|
15,389 |
|
Provision
for credit losses- tenant |
401 |
|
|
457 |
|
|
110 |
|
|
— |
|
|
511 |
|
|
457 |
|
Property Net
Operating Income |
$ |
38,707 |
|
|
$ |
40,326 |
|
|
$ |
7,689 |
|
|
$ |
— |
|
|
$ |
46,396 |
|
|
$ |
40,326 |
|
Wheeler Real Estate Investment Trust,
Inc. and SubsidiariesReconciliation of Earnings
Before Interest, Taxes, Depreciation and Amortization -
EBITDA(unaudited, in thousands)
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net Loss |
$ |
(12,884 |
) |
|
$ |
(8,719 |
) |
|
$ |
(16,906 |
) |
|
$ |
(12,778 |
) |
Add back: |
Depreciation and
amortization (1) |
5,877 |
|
|
5,781 |
|
|
26,399 |
|
|
26,684 |
|
|
Interest Expense
(2) |
5,288 |
|
|
4,168 |
|
|
20,228 |
|
|
17,174 |
|
|
Income tax (benefit)
expense |
(32 |
) |
|
(38 |
) |
|
40 |
|
|
137 |
|
EBITDA |
(1,751 |
) |
|
1,192 |
|
|
29,761 |
|
|
31,217 |
|
Adjustments
for items affecting comparability: |
|
|
|
|
|
|
|
|
Acquisition and
development costs |
(46 |
) |
|
269 |
|
|
300 |
|
|
1,101 |
|
|
Capital related
costs |
168 |
|
|
195 |
|
|
576 |
|
|
663 |
|
|
Other non-recurring and
non-cash expenses (3) |
— |
|
|
117 |
|
|
103 |
|
|
294 |
|
|
Impairment of
goodwill |
5,486 |
|
|
— |
|
|
5,486 |
|
|
— |
|
|
Impairment of notes
receivable |
1,739 |
|
|
5,261 |
|
|
1,739 |
|
|
5,261 |
|
|
Impairment of
land-discontinued operations |
3,938 |
|
|
— |
|
|
3,938 |
|
|
— |
|
|
Gain on disposal of
properties |
(151 |
) |
|
— |
|
|
(2,463 |
) |
|
(1,021 |
) |
|
Gain on disposal of
properties-discontinued operations |
— |
|
|
— |
|
|
(903 |
) |
|
(1,502 |
) |
Adjusted
EBITDA |
$ |
9,383 |
|
|
$ |
7,034 |
|
|
$ |
38,537 |
|
|
$ |
36,013 |
|
(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-K for the
period ended December 31, 2018.
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