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WHLR Real Estate Investment Trust, Inc. Announces 2019 Fourth Quarter Financial and Operating Results

VIRGINIA BEACH, Va., Feb. 26, 2020 (GLOBE NEWSWIRE) -- WHLR Real Estate Investment Trust, Inc. (WHLR) (“WHLR” or the “Company”) today reported financial and operating results for the three and twelve months ended December 31, 2019.

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net loss per common share

$

(0.45

)

 

$

(1.66

)

 

$

(2.34

)

 

$

(3.17

)

FFO per common share and common unit

 

0.11

 

 

 

(0.05

)

 

 

(0.06

)

 

 

0.42

 

AFFO per common share and common units

 

0.02

 

 

 

0.15

 

 

 

0.40

 

 

 

0.73

 

2019 FOURTH QUARTER HIGHLIGHTS

(all comparisons to the same prior year period unless otherwise noted)

  • Total revenue from continuing operations increased by 0.64% or $102 thousand primarily due to increased tenant reimbursement recoveries as well as increased revenue from our JANAF asset. This increase was partially offset by revenue declines of $301 thousand due to asset sales.

  • Same store property revenues increased 3.57%.

  • Same store Net Operating Income ("NOI") increased by 3.14% and by 1.97% on a cash basis.

  • Reduced the KeyBank Line of Credit by $7.2 million through a refinancing of Litchfield Market Village, which represented a collateralized portion of the line of credit.

  • Executed 41 lease renewals totaling 480,008 square feet at a weighted-average increase of $0.33 per square foot, representing an increase of 4.50% over in-place rental rates.

  • Signed 13 new leases totaling approximately 40,631 square feet with a weighted-average rental rate of $12.57 per square foot.

  • Net loss attributable to WHLR's common stock, $0.01 par value per share ("Common Stock") shareholders of $4.3 million, or ($0.45) per share.

  • NOI from property operations remained flat at $11.2 million despite declines in NOI resulting from the impact of selling four income producing properties, totaling approximately $205 thousand, and increases in real estate tax and insurance expenses, which was offset by increases in tenant reimbursement revenue.

  • Adjusted Funds from Operations ("AFFO") of $0.02 per share of the Company's Common Stock and common unit ("Common Unit") in our operating partnership, Wheeler REIT, L.P.

  • Recognized a $51 thousand impairment charge on St. Matthews, a 29,000 square foot shopping center that was held for sale as of December 31, 2019.

2019 YEAR-TO-DATE HIGHLIGHTS

  • Sold three properties and an undeveloped land parcel for $16.0 million, resulting in a total gain of $1.7 million and net proceeds of $3.6 million.

  • Reduced WHLR's weighted-average interest rate to 4.71%, with an average loan term of 4.19 years from 4.84% with a term of 4.31 years at December 31, 2018.

  • Paid in full:
    º Bulldog Senior Convertible notes through scheduled principal and interest payments; and
    º Revere Term Loan through a combination of asset sale proceeds, operating cash flows and $300 thousand in monthly scheduled principal payments.

  • Paid down the KeyBank Line of Credit to $17.9 million with proceeds from the following sources:
    º $30.2 million of refinancings from the Village of Martinsville, Laburnum Square and Litchfield Market Village;
    º $1.9 million in specific principal payments; as well as
    º $2.2 million in monthly scheduled principal payments.

  • The 1,986,600 publicly traded warrants (CUSIP No.: 963025119) (WHLRW) exchangeable into 248,325 shares of our Common Stock expired on April 29, 2019.

  • Recognized a $5.0 million impairment charge on Sea Turtle Development notes receivable bringing the carrying value to zero.

  • Recognized a total of $1.6 million in impairment charges on Perimeter Square, which was sold on July 12, 2019, and St. Matthews, which was sold on January 21, 2020, subsequent to year end, December 31, 2019.

  • Corporate general and administrative expenses decreased 19.39% resulting from decreases in employee share based compensation, severance, professional fees and debt financing expenses and savings from not pursing acquisition and development projects.

  • Net loss attributable to WHLR's Common Stock shareholders of $22.7 million, or ($2.34) per share.

  • Total revenue from continuing operations decreased by 3.24% or $2.1 million primarily due to the 2018 early termination fees of $1.3 million associated with Berkley Center Shopping Center and Southeastern Grocers ("SEG") recaptures as well as the revenue declines from the impact of selling five properties, approximately $1.3 million, partially offset by an increase of 5.53% in JANAF revenue and tenant reimbursement recoveries of $774 thousand.

  • NOI from property operations decreased by 5.36% to $43.9 million primarily due to the 2018 early termination fees of $1.3 million associated with Berkley Center Shopping Center and SEG recaptures and the declines in NOI resulting from the impact of selling five properties, approximately $984 thousand.  These declines in NOI were partially offset by an increase of $93 thousand or 1.20% in NOI generated by JANAF.

  • AFFO of $0.40 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P.

SUBSEQUENT EVENTS

  • The Company and KeyBank entered into a Second Amendment to the KeyBank Line of Credit effective December 21, 2019 and the Company began making monthly principal payments of $350 thousand on November 1, 2019. The Second Amendment, among other provisions, requires a pledge of additional collateral of $15.00 million in residual equity interests.  In addition, the Second Amendment requires the KeyBank Line of Credit to be reduced to $10.0 million by January 31, 2020, $2.0 million by April 30, 2020 and fully matures on June 30, 2020.

  • Reduced the KeyBank Line of Credit by $7.5 million through the below, leaving a remaining balance, as required by the Second Amendment, as of January 31, 2020 of $10.0 million, as noted below:
    º sold St. Matthews for a contract price of $1.8 million; and
    º refinanced the Shoppes at Myrtle Park for $6.0 million at a fixed rate of 4.45%.

  • The Company and the Synovus Bank agreed to extend the Rivergate Shopping Center loan to March 20, 2020.

BALANCE SHEET

  • Cash and cash equivalents totaled $5.5 million at December 31, 2019, compared to $3.5 million at December 31, 2018.

  • Restricted cash totaled $16.1 million at December 31, 2019, compared to $14.5 million at December 31, 2018.  These funds are held in lender reserves for the purpose of tenant improvements, lease commissions, real estate taxes and insurance expenses.

  • Accounts payable, accrued expenses and other liabilities totaled $9.6 million at December 31, 2019, compared to $12.1 million at December 31, 2018, a decrease of $2.6 million.

  • Total debt was $347.1 million at December 31, 2019 (including debt associated with assets held for sale), compared to $369.6 million at December 31, 2018. The decrease of $22.6 million in debt is primarily a result of:
    º $1.1 million Revere Term Loan pay-off;
    º $12.3 million in payoffs as a result of asset sales;
    º $4.1 million of additional and scheduled principal pay-downs on the KeyBank Line of Credit; and
    º regularly scheduled principal payments.

  • WHLR's weighted-average interest rate was 4.71% with a term of 4.19 years at December 31, 2019 (including debt associated with assets held for sale).

  • Net investment properties as of December 31, 2019 totaled at $417.9 million (including assets held for sale), compared to $441.4 million as of December 31, 2018.

DIVIDENDS

  • At December 31, 2019, the Company had accumulated undeclared dividends of approximately $17.0 million to holders of shares of our Series A Preferred Stock, Series B Preferred Stock, and Series D Preferred Stock of which $3.5 million and $14.0 million are attributable to the three and twelve months ended December 31, 2019, respectively.

OPERATIONS AND LEASING

  • The Company's real estate portfolio is 89.8% leased as of December 31, 2019.

  • YTD 2019 Leasing Activity
    º Executed 149 lease renewals totaling 1,036,017 square feet at a weighted-average increase of $0.34 per square foot, representing an increase of 4.17% over in-place rental rates.
    º Signed 43 new leases totaling approximately 117,605 square feet with a weighted-average rental rate of $12.82 per square foot.

  • A new grocer tenant, ALDI, completed construction and opened in December 2019 an approximate 20,000 square foot grocery store, which replaced an existing approximate 10,000 square foot outparcel building at JANAF Shopping Center. The annual base rent increases $58 thousand with the new tenant and the lease expiration extends 17 years.  As a result of the demolition of the existing building, the Company incurred a $331 thousand noncash write-off.

  • In September, a 20 year ground lease was executed for the development of a new Planet Fitness in the parking field at Freeway Junction in Stockbridge, Georgia.

  • The Company’s gross leasable area ("GLA"), which is subject to leases that expire over the next twelve months and includes month-to-month leases, increased to approximately 13.10% at December 31, 2019, compared to 7.08% at December 31, 2018.  At December 31, 2019, 44.34% of this expiring GLA is subject to renewal options.

SAME STORE RESULTS

The same store property pool includes those properties owned during all periods presented in their entirety, while the non-same stores property pool consists of those properties acquired or disposed of during the periods presented.

  • Same store NOI for the three months ended December 31, 2019 compared to December 31, 2018, increased by 3.14% and 1.97% on a cash basis.  Same store results were impacted by a 4.6% increase in property expenses, primarily due to increased real estate tax and insurance expenses, which was offset by increases in tenant reimbursement revenue.

  • Same store NOI for the years ended December 31, 2019 compared to December 31, 2018, declined by 4.27% and 2.84% on a cash basis. Same store results were impacted by a 2.04% decrease in property revenues, primarily a result of the 2018 early termination fee associated with Farm Fresh at Berkley Center Shopping Center, rent modifications to certain 2018 SEG leases, reduced rent at the SEG recaptured and backfilled locations and incremental vacancies. Same Store property expenses increased 3.48% due to an increase in repairs and maintenance expense related to buildings and parking lots.

ACQUISITIONS

  • In April 2019, the Company absorbed an approximate 25,000 square foot outparcel at JANAF as a result of an unlawful detainer with a delinquent tenant.

DISPOSITIONS

  • Sold Jenks Plaza for a contract price of $2.2 million, generating a gain of $387 thousand and net proceeds of $1.8 million.

  • Sold a 1.28-acre portion of an undeveloped land parcel at Harbor Pointe for a contract price of $550 thousand resulting in net proceeds of $19 thousand, paying off associated debt and retaining an approximate 4-acre unleveraged parcel.

  • Sold Graystone Crossing for a contract price of $6.0 million, generating a gain of $1.4 million and net proceeds of $1.7 million.

  • Sold Perimeter Square for a contract price of $7.2 million, generating a loss of $95 thousand and paying off associated debt.

SUPPLEMENTAL INFORMATION

Further details regarding Wheeler Real Estate Investment Trust, Inc.’s operations and financials for the year ended December 31, 2019, including a supplemental presentation, are available at https://ir.whlr.us/.

ABOUT WHEELER REAL ESTATE INVESTMENT TRUST, INC.

Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully-integrated, self-managed commercial real estate investment company focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers. Wheeler’s portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk-adjusted returns, with a particular emphasis on grocery-anchored retail centers. For additional information about the Company, please visit: www.whlr.us.

A copy of Wheeler’s 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.

DEFINITIONS

FFO, 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, 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 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; 1) future generation of financial returns from its portfolio; 2) its ability to create higher occupancy rates, increases in annual rent spreads and increased NOI; and 3) its ability to enter into an amendment to the Amended and Restated Credit Agreement with KeyBank 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
mjensen@whlr.us
(757) 627-9088

Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except share and per share data)

 

Three Months Ended December 31,

 

Years Ended
December 31,

 

2019

 

2018

 

2019

 

2018

REVENUE:

 

 

 

 

 

 

 

Rental revenues

$

15,896

 

 

$

15,748

 

 

$

62,442

 

 

$

63,036

 

Asset management fees

18

 

 

46

 

 

60

 

 

266

 

Commissions

 

 

38

 

 

65

 

 

140

 

Other revenues

156

 

 

136

 

 

595

 

 

1,833

 

Total Revenue

16,070

 

 

15,968

 

 

63,162

 

 

65,275

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

Property operations

4,839

 

 

4,669

 

 

19,127

 

 

18,473

 

Non-REIT management and leasing services

 

 

16

 

 

25

 

 

75

 

Depreciation and amortization

5,150

 

 

6,151

 

 

21,319

 

 

27,094

 

Impairment of goodwill

 

 

5,486

 

 

 

 

5,486

 

Impairment of notes receivable

 

 

1,739

 

 

5,000

 

 

1,739

 

Impairment of real estate

 

 

3,938

 

 

 

 

3,938

 

Impairment of assets held for sale

51

 

 

 

 

1,598

 

 

 

Corporate general & administrative

2,090

 

 

1,749

 

 

6,633

 

 

8,228

 

Other operating expenses

 

 

 

 

 

 

250

 

Total Operating Expenses

12,130

 

 

23,748

 

 

53,702

 

 

65,283

 

(Loss) Gain on disposal of properties

(33

)

 

151

 

 

1,394

 

 

2,463

 

Operating Income (Loss)

3,907

 

 

(7,629

)

 

10,854

 

 

2,455

 

Interest income

 

 

1

 

 

2

 

 

4

 

Interest expense

(4,591

)

 

(5,288

)

 

(18,985

)

 

(20,228

)

Net Loss from Continuing Operations Before Income Taxes

(684

)

 

(12,916

)

 

(8,129

)

 

(17,769

)

Income tax benefit (expense)

8

 

 

32

 

 

(15

)

 

(40

)

Net Loss from Continuing Operations

(676

)

 

(12,884

)

 

(8,144

)

 

(17,809

)

Net Income from Discontinued Operations

 

 

 

 

 

 

903

 

Net Loss

(676

)

 

(12,884

)

 

(8,144

)

 

(16,906

)

Less: Net loss attributable to noncontrolling interests

(5

)

 

(336

)

 

(105

)

 

(406

)

Net Loss Attributable to Wheeler REIT

(671

)

 

(12,548

)

 

(8,039

)

 

(16,500

)

Preferred Stock dividends - declared

 

 

(169

)

 

 

 

(9,790

)

Preferred Stock dividends - undeclared

(3,657

)

 

(3,037

)

 

(14,629

)

 

(3,037

)

Net Loss Attributable to Wheeler REIT Common Shareholders

$

(4,328

)

 

$

(15,754

)

 

$

(22,668

)

 

$

(29,327

)

 

 

 

 

 

 

 

 

Loss per share from continuing operations (basic and diluted)

$

(0.45

)

 

$

(1.66

)

 

$

(2.34

)

 

$

(3.26

)

Income per share from discontinued operations

 

 

 

 

 

 

0.09

 

 

$

(0.45

)

 

$

(1.66

)

 

$

(2.34

)

 

$

(3.17

)

Weighted-average number of shares:

 

 

 

 

 

 

 

Basic and Diluted

9,693,403

 

 

9,484,185

 

 

9,671,847

 

 

9,256,234

 


Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except par value and share data)

 

December 31,

 

2019

 

2018

ASSETS:

 

 

 

Investment properties, net

$

416,215

 

 

$

436,006

 

Cash and cash equivalents

5,451

 

 

3,544

 

Restricted cash

16,140

 

 

14,455

 

Rents and other tenant receivables, net

6,905

 

 

5,539

 

Notes receivable, net

 

 

5,000

 

Assets held for sale

1,737

 

 

6,118

 

Above market lease intangibles, net

5,241

 

 

7,346

 

Operating lease right-of-use assets

11,651

 

 

 

Deferred costs and other assets, net

21,025

 

 

30,073

 

Total Assets

$

484,365

 

 

$

508,081

 

LIABILITIES:

 

 

 

Loans payable, net

$

340,913

 

 

$

360,190

 

Liabilities associated with assets held for sale

2,026

 

 

4,520

 

Below market lease intangibles, net

6,716

 

 

10,045

 

Operating lease liabilities

11,921

 

 

 

Accounts payable, accrued expenses and other liabilities

9,557

 

 

12,116

 

Total Liabilities

371,133

 

 

386,871

 

Series D Cumulative Convertible Preferred Stock (no par value, 4,000,000 shares authorized, 3,600,636 shares issued and outstanding; $101.66 million and $91.98 million aggregate liquidation preference, respectively)

87,225

 

 

76,955

 

 

 

 

 

EQUITY:

 

 

 

Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding)

453

 

 

453

 

Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 1,875,748 shares issued and outstanding; $46.90 million aggregate liquidation preference)

41,087

 

 

41,000

 

Common Stock ($0.01 par value, 18,750,000 shares authorized, 9,694,284 and 9,511,464 shares issued and outstanding, respectively)

97

 

 

95

 

Additional paid-in capital

233,870

 

 

233,697

 

Accumulated deficit

(251,580

)

 

(233,184

)

Total Shareholders’ Equity

23,927

 

 

42,061

 

Noncontrolling interests

2,080

 

 

2,194

 

Total Equity

26,007

 

 

44,255

 

Total Liabilities and Equity

$

484,365

 

 

$

508,081

 



Wheeler Real Estate Investment Trust, Inc. and Subsidiaries   
Reconciliation of Funds From Operations (FFO)
(unaudited, in thousands)

 

Three Months Ended December 31,

 

Same Store

 

Non-same Store

 

Total

 

Period Over Period
Changes

 

2019

 

2018

 

2019

 

2018

 

2019

 

2018

 

$

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Income

$

(939

)

 

$

(12,868

)

 

$

263

 

 

$

(16

)

 

$

(676

)

 

$

(12,884

)

 

$

12,208

 

 

94.75

%

Depreciation and amortization of real estate assets

4,249

 

 

4,709

 

 

901

 

 

1,442

 

 

5,150

 

 

6,151

 

 

(1,001

)

 

(16.27

)%

Impairment of goodwill

 

 

5,486

 

 

 

 

 

 

 

 

5,486

 

 

(5,486

)

 

(100.00

)%

Impairment of real estate

 

 

3,938

 

 

 

 

 

 

 

 

3,938

 

 

(3,938

)

 

(100.00

)%

Impairment of assets held for sale

51

 

 

 

 

 

 

 

 

51

 

 

 

 

51

 

 

100.00

%

Loss (gain) on disposal of properties

 

 

 

 

33

 

 

(151

)

 

33

 

 

(151

)

 

184

 

 

121.85

%

FFO

$

3,361

 

 

$

1,265

 

 

$

1,197

 

 

$

1,275

 

 

$

4,558

 

 

$

2,540

 

 

$

2,018

 

 

79.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Years Ended December 31,

 

Same Store

 

Non-same Store

 

Total

 

Year Over Year Changes

 

2019

 

2018

 

2019

 

2018

 

2019

 

2018

 

$

 

%

Net (Loss) Income

$

(9,122

)

 

$

(20,071

)

 

$

978

 

 

$

3,165

 

 

$

(8,144

)

 

$

(16,906

)

 

$

8,762

 

 

51.83

%

Depreciation and amortization of real estate assets

17,298

 

 

21,944

 

 

4,021

 

 

5,150

 

 

21,319

 

 

27,094

 

 

(5,775

)

 

(21.31

)%

Impairment of goodwill

 

 

5,486

 

 

 

 

 

 

 

 

5,486

 

 

(5,486

)

 

(100.00

)%

Impairment of real estate

 

 

3,938

 

 

 

 

 

 

 

 

3,938

 

 

(3,938

)

 

(100.00

)%

Impairment of assets held for sale

451

 

 

 

 

1,147

 

 

 

 

1,598

 

 

 

 

1,598

 

 

100.00

%

Gain on disposal of properties

 

 

 

 

(1,394

)

 

(2,463

)

 

(1,394

)

 

(2,463

)

 

1,069

 

 

43.40

%

Gain on disposal of properties-discontinued operations

 

 

 

 

 

 

(903

)

 

 

 

(903

)

 

903

 

 

100.00

%

FFO

$

8,627

 

 

$

11,297

 

 

$

4,752

 

 

$

4,949

 

 

$

13,379

 

 

$

16,246

 

 

$

(2,867

)

 

(17.65

)%


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,

 

2019

 

2018

 

2019

 

2018

Net Loss

$

(676

)

 

$

(12,884

)

 

$

(8,144

)

 

$

(16,906

)

Depreciation and amortization of real estate assets

5,150

 

 

6,151

 

 

21,319

 

 

27,094

 

Loss (Gain) on disposal of properties

33

 

 

(151

)

 

(1,394

)

 

(2,463

)

Gain on disposal of properties-discontinued operations

 

 

 

 

 

 

(903

)

Impairment of goodwill

 

 

5,486

 

 

 

 

5,486

 

Impairment of assets held for sale

51

 

 

 

 

1,598

 

 

 

Impairment of real estate

 

 

3,938

 

 

 

 

3,938

 

FFO

4,558

 

 

2,540

 

 

13,379

 

 

16,246

 

Preferred stock dividends declared

 

 

(169

)

 

 

 

(9,790

)

Preferred stock dividends undeclared

(3,657

)

 

(3,037

)

 

(14,629

)

 

(3,037

)

Preferred stock accretion adjustments

170

 

 

169

 

 

680

 

 

678

 

FFO available to common shareholders and common unitholders

1,071

 

 

(497

)

 

(570

)

 

4,097

 

Impairment of notes receivable

 

 

1,739

 

 

5,000

 

 

1,739

 

Acquisition and development costs

1

 

 

(46

)

 

26

 

 

300

 

Capital related costs

4

 

 

168

 

 

144

 

 

576

 

Other non-recurring and non-cash expenses (1)

(19

)

 

 

 

42

 

 

103

 

Share-based compensation

(242

)

 

213

 

 

2

 

 

940

 

Straight-line rental revenue, net straight-line expense

7

 

 

(244

)

 

6

 

 

(1,197

)

Loan cost amortization

371

 

 

681

 

 

1,707

 

 

2,363

 

(Below) above market lease amortization

(676

)

 

(274

)

 

(1,261

)

 

(695

)

Recurring capital expenditures and tenant improvement reserves

(280

)

 

(285

)

 

(1,126

)

 

(1,143

)

AFFO

$

237

 

 

$

1,455

 

 

$

3,970

 

 

$

7,083

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares

9,693,403

 

 

9,484,185

 

 

9,671,847

 

 

9,256,234

 

Weighted Average Common Units

234,900

 

 

259,054

 

 

234,999

 

 

389,421

 

Total Common Shares and Units

9,928,303

 

 

9,743,239

 

 

9,906,846

 

 

9,645,655

 

FFO per Common Share and Common Units

$

0.11

 

 

$

(0.05

)

 

$

(0.06

)

 

$

0.42

 

AFFO per Common Share and Common Units

$

0.02

 

 

$

0.15

 

 

$

0.40

 

 

$

0.73

 

(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, 2019.


Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Property Net Operating Income
(unaudited, in thousands)

 

Three Months Ended December 31,

 

Same Store

 

Non-same Store

 

Total

 

2019

 

2018

 

2019

 

2018

 

2019

 

2018

Net (Loss) Income

$

(939

)

 

$

(12,868

)

 

$

263

 

 

$

(16

)

 

$

(676

)

 

$

(12,884

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

(8

)

 

(32

)

 

 

 

 

 

(8

)

 

(32

)

Interest expense

3,873

 

 

4,355

 

 

718

 

 

933

 

 

4,591

 

 

5,288

 

Interest income

 

 

(1

)

 

 

 

 

 

 

 

(1

)

Loss (gain) on disposal of properties

 

 

 

 

33

 

 

(151

)

 

33

 

 

(151

)

Corporate general & administrative

2,051

 

 

1,719

 

 

39

 

 

30

 

 

2,090

 

 

1,749

 

Impairment of assets held for sale

51

 

 

 

 

 

 

 

 

51

 

 

 

Impairment of real estate

 

 

3,938

 

 

 

 

 

 

 

 

3,938

 

Impairment of notes receivable

 

 

1,739

 

 

 

 

 

 

 

 

1,739

 

Impairment of goodwill

 

 

5,486

 

 

 

 

 

 

 

 

5,486

 

Depreciation and amortization

4,249

 

 

4,709

 

 

901

 

 

1,442

 

 

5,150

 

 

6,151

 

Non-REIT management and leasing services

 

 

16

 

 

 

 

 

 

 

 

16

 

Asset management and commission revenues

(18

)

 

(84

)

 

 

 

 

 

(18

)

 

(84

)

Property Net Operating Income

$

9,259

 

 

$

8,977

 

 

$

1,954

 

 

$

2,238

 

 

$

11,213

 

 

$

11,215

 

 

 

 

 

 

 

 

 

 

 

 

 

Property revenues

$

13,213

 

 

$

12,758

 

 

$

2,839

 

 

$

3,126

 

 

$

16,052

 

 

$

15,884

 

Property expenses

3,954

 

 

3,781

 

 

885

 

 

888

 

 

4,839

 

 

4,669

 

Property Net Operating Income

$

9,259

 

 

$

8,977

 

 

$

1,954

 

 

$

2,238

 

 

$

11,213

 

 

$

11,215

 



Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Property Net Operating Income (Continued)
(unaudited, in thousands)

 

Years Ended December 31,

 

Same Store

 

Non-same Store

 

Total

 

2019

 

2018

 

2019

 

2018

 

2019

 

2018

Net (Loss) Income

$

(9,122

)

 

$

(20,071

)

 

$

978

 

 

$

3,165

 

 

$

(8,144

)

 

$

(16,906

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Income from Discontinued Operations

 

 

 

 

 

 

(903

)

 

 

 

(903

)

Income tax expense

15

 

 

40

 

 

 

 

 

 

15

 

 

40

 

Interest expense

15,788

 

 

16,581

 

 

3,197

 

 

3,647

 

 

18,985

 

 

20,228

 

Interest income

(2

)

 

(4

)

 

 

 

 

 

(2

)

 

(4

)

Gain on disposal of properties

 

 

 

 

(1,394

)

 

(2,463

)

 

(1,394

)

 

(2,463

)

Other operating expenses

 

 

 

 

 

 

250

 

 

 

 

250

 

Corporate general & administrative

6,439

 

 

8,040

 

 

194

 

 

188

 

 

6,633

 

 

8,228

 

Impairment of assets held for sale

451

 

 

 

 

1,147

 

 

 

 

1,598

 

 

 

Impairment of real estate

 

 

3,938

 

 

 

 

 

 

 

 

3,938

 

Impairment of notes receivable

5,000

 

 

1,739

 

 

 

 

 

 

5,000

 

 

1,739

 

Impairment of goodwill

 

 

5,486

 

 

 

 

 

 

 

 

5,486

 

Depreciation and amortization

17,298

 

 

21,944

 

 

4,021

 

 

5,150

 

 

21,319

 

 

27,094

 

Non-REIT management and leasing services

25

 

 

75

 

 

 

 

 

 

25

 

 

75

 

Asset management and commission revenues

(125

)

 

(406

)

 

 

 

 

 

(125

)

 

(406

)

Property Net Operating Income

$

35,767

 

 

$

37,362

 

 

$

8,143

 

 

$

9,034

 

 

$

43,910

 

 

$

46,396

 

 

 

 

 

 

 

 

 

 

 

 

 

Property revenues

$

51,355

 

 

$

52,426

 

 

$

11,682

 

 

$

12,443

 

 

$

63,037

 

 

$

64,869

 

Property expenses

15,588

 

 

15,064

 

 

3,539

 

 

3,409

 

 

19,127

 

 

18,473

 

Property Net Operating Income

$

35,767

 

 

$

37,362

 

 

$

8,143

 

 

$

9,034

 

 

$

43,910

 

 

$

46,396

 



Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA
(unaudited, in thousands)

 

Three Months Ended
December 31,

 

Years Ended
December 31,

 

2019

 

2018

 

2019

 

2018

Net Loss

$

(676

)

 

$

(12,884

)

 

$

(8,144

)

 

$

(16,906

)

Add back:

Depreciation and amortization (1)

4,474

 

 

5,877

 

 

20,058

 

 

26,399

 

 

Interest Expense (2)

4,591

 

 

5,288

 

 

18,985

 

 

20,228

 

 

Income tax (benefit) expense

(8

)

 

(32

)

 

15

 

 

40

 

EBITDA

8,381

 

 

(1,751

)

 

30,914

 

 

29,761

 

Adjustments for items affecting comparability:

 

 

 

 

 

 

 

 

Acquisition and development costs

1

 

 

(46

)

 

26

 

 

300

 

 

Capital related costs

4

 

 

168

 

 

144

 

 

576

 

 

Other non-recurring and non-cash expenses (3)

(19

)

 

 

 

42

 

 

103

 

 

Impairment of goodwill

 

 

5,486

 

 

 

 

5,486

 

 

Impairment of notes receivable

 

 

1,739

 

 

5,000

 

 

1,739

 

 

Impairment of assets held for sale

51

 

 

 

 

1,598

 

 

 

 

Impairment of real estate

 

 

3,938

 

 

 

 

3,938

 

 

Loss (Gain) on disposal of properties

33

 

 

(151

)

 

(1,394

)

 

(2,463

)

 

Gain on disposal of properties - discontinued operations

 

 

 

 

 

 

(903

)

Adjusted EBITDA

$

8,451

 

 

$

9,383

 

 

$

36,330

 

 

$

38,537

 

(1) Includes above (below) market lease amortization.
(2) Includes loan cost amortization.
(3) Other non-recurring expenses are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the period ended December 31, 2019.