Wheeler Real Estate Investment Trust, Inc 8-K, filed Mar 2, 2023
Wheeler Real Estate Investment Trust, Inc. (WHLR)
8-K
2023-03-02
For: 2023-03-02
View Original
Added on
April 05, 2026
About this 8-K
Wheeler Real Estate Investment Trust, Inc filed this 8-K on March 2, 2023.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): March 2, 2023
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip code) | |||||||
Registrant’s telephone number, including area code: (757 ) 627-9088
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Item 2.02 Results of Operations and Financial Condition.
On March 2, 2023, Wheeler Real Estate Investment Trust, Inc. (the “Company”), issued a press release announcing that it had reported financial and operating results for the three and twelve months ended December 31, 2022. A copy of the press release is hereby furnished as Exhibit 99.1 to this report on Form 8-K.
The information contained in this report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.
Item 7.01 Regulation FD Disclosure
On March 2, 2023, the Company made publicly available certain supplemental financial information for the three and twelve months ended December 31, 2022 on its website, www.whlr.us.
This supplemental financial information is hereby furnished as Exhibit 99.2 to this report on Form 8-K. The information contained in this report on Form 8-K, including Exhibit 99.2, shall not be deemed "filed" with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise. The information found on, or otherwise accessible through, the Company's website is not incorporated into, and does not form a part of, this current report on Form 8-K or any other report or document the Company files with or furnishes to the Securities and Exchange Commission.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are included with this Report:
Exhibit No.
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WHEELER REAL ESTATE INVESTMENT TRUST, INC. | ||||||||
| By: | /s/ M. Andrew Franklin | |||||||
| Name: M. Andrew Franklin | ||||||||
| Title: Chief Executive Officer and President | ||||||||
Dated: March 2, 2023
Exhibit 99.1
FOR IMMEDIATE RELEASE
WHEELER REAL ESTATE INVESTMENT TRUST, INC.
ANNOUNCES THE RELEASE OF ITS
FOURTH QUARTER AND YEAR-END 2022 FINANCIAL AND OPERATING RESULTS
Virginia Beach, Virginia – March 2, 2023 – Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) (“WHLR” or the “Company”) announced today that it has reported its financial and operating results for the year ended December 31, 2022 on Form 10-K. In addition, the Company has posted supplemental information to its website regarding WHLR's financial and operating results for the three and twelve months ended December 31, 2022. Both the Form 10-K and the supplemental information can be accessed by visiting the Investor Relations page at https://ir.whlr.us/.
Contact
Investor Relations (757) 627-9088
Email: investorrelations@whlr.us
ABOUT WHEELER REAL ESTATE INVESTMENT TRUST, INC.
Headquartered in Virginia Beach, Virginia, Wheeler Real Estate Investment Trust, Inc. is a fully integrated, self-managed commercial real estate investment trust (REIT) focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers. For more information on the Company, please visit www.whlr.us.
Exhibit 99.2
| Table of Contents | |||||
| Page | |||||
| Company Overview | |||||
| Financial and Portfolio Overview | |||||
| Financial and Operating Results | |||||
| Financial Summary | |||||
| Consolidated Balance Sheets | |||||
| Consolidated Statements of Operations | |||||
| Reconciliation of Non-GAAP Measures | |||||
| Debt Summary | |||||
| Portfolio Summary | |||||
| Property Summary | |||||
| Top Ten Tenants by Annualized Base Rent and Lease Expiration Schedule | |||||
| Leasing Summary | |||||
| Definitions | |||||
Forward-Looking Statements
This document contains forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor. When used in this presentation, the words "continue," "may," "approximately," "potentially," or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks include, without limitation: the impact of the COVID-19 pandemic or any future pandemic, endemic or outbreak of infectious disease, and mitigation efforts to control their spread, on the financial condition, operating results and cash flows of Wheeler Real Estate Investment Trust, Inc. (the "Company" or "WHLR"), the Company’s tenants and their customers, the use of and demand for retail space, the real estate market in which the Company operates, the U.S. economy, the global economy and the financial markets; the level of rental revenue we achieve from our assets and our ability to collect rents; the state of the U.S. economy generally, or specifically in the Southeast, Mid-Atlantic and Northeast where our properties are geographically concentrated; consumer spending and confidence trends; tenant bankruptcies; availability, terms and deployment of capital; general volatility of the capital markets and the market price of our common and preferred stock; anticipated substantial dilution of our common stock after September 21, 2023 that may result from the exercise by the holders of our Series D Cumulative Convertible Preferred Stock of their redemption rights; the degree and nature of our competition; changes in governmental regulations, accounting rules, tax rates and similar matters; the ability and willingness of the Company’s tenants and other third parties to satisfy their obligations under their respective contractual arrangements with the Company; the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the similar or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant; litigation risks; increases in the Company’s financing and other costs as a result of changes in interest rates and other factors; inability to successfully integrate the acquisition of Cedar Realty Trust, Inc.; changes in our ability to obtain and maintain financing; damage to the Company’s properties from catastrophic weather and other natural events, and the
WHLR | Financial & Operating Data | 2 | ||||
physical effects of climate change; information technology security breaches; the Company’s ability and willingness to maintain its qualification as a real estate investment trust (“REIT”) in light of economic, market, legal, tax and other considerations, including the Inflation Reduction Act of 2022; the ability of our operating partnership, Wheeler REIT, L.P. (the "Operating Partnership") and each of our other partnerships and limited liability companies to be classified as partnerships or disregarded entities for federal income tax purposes; the impact of e-commerce on our tenants’ business; and inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws.
The forward-looking statements are based on management's beliefs, assumptions and expectations of future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. For a description of the risks and uncertainties that could impact the Company's future results, performance or transactions, see the reports filed by the Company with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and annual reports on Form 10-K. The Company disclaims any responsibility to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
WHLR | Financial & Operating Data | 3 | ||||
Company Overview
Headquartered in Virginia Beach, Virginia, Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR) is a fully-integrated, self-managed commercial real estate investment company focused on owning, leasing and operating income-producing retail properties with a primary focus on grocery-anchored centers. WHLR’s portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk-adjusted returns. WHLR’s common stock, Series B convertible preferred stock, Series D cumulative convertible preferred stock, and 7% Subordinated Convertible Notes due 2031, trade publicly on NASDAQ under the symbols “WHLR”, “WHLRP”, "WHLRD", and "WHLRL", respectively.
Cedar Realty Trust, Inc. ("CDR" or "Cedar") is a subsidiary of WHLR. CDR's 7-1/4% Series B cumulative redeemable preferred stock ("CDR Series B Preferred") and 6-1/2% Series C cumulative redeemable preferred stock ("CDR Series C Preferred") trade publicly on the New York Stock Exchange ("NYSE") under the symbols "CDRpB" and "CDRpC", respectively and represent a noncontrolling interest to WHLR.
Accordingly, the use of the word "Company" refers to WHLR and its consolidated subsidiaries, which includes Cedar, except where the context otherwise requires.
| Corporate Headquarters | ||||||||
| Wheeler Real Estate Investment Trust, Inc. | ||||||||
| 2529 Virginia Beach Boulevard Virginia Beach, VA 23452 | ||||||||
| Phone: (757) 627-9088 Toll Free: (866) 203-4864 | ||||||||
| Website: www.whlr.us | ||||||||
| Executive Management | ||||||||
| M. Andrew Franklin - CEO and President | ||||||||
| Crystal Plum - CFO | ||||||||
 |  | |||||||
| Board of Directors | Board of Directors | |||||||
Stefani D. Carter (Chair) | Kerry G. Campbell | |||||||
Michelle D. Bergman | E. J. Borrack | |||||||
E. J. Borrack | M. Andrew Franklin | |||||||
Kerry G. Campbell | Paula Poskon | |||||||
Saverio M. Flemma | Crystal Plum | |||||||
| Megan Parisi | ||||||||
| Joseph D. Stilwell | ||||||||
| Stock Transfer Agent and Registrar | Stock Transfer Agent and Registrar | |||||||
| Computershare Trust Company, N.A. 150 Royall Street, Suite 101 Canton, MA 02021 www.computershare.com | American Stock Transfer & Trust Co. 6201 15th Ave Brooklyn, NY 11219 www.amstock.com | |||||||
| Investor Relations Representative | ||||||||
| investorrelations@whlr.us Office: (757) 627-9088 | ||||||||
WHLR | Financial & Operating Data | 4 | ||||
Financial and Portfolio Overview
For the Three Months Ended December 31, 2022
Financial Results | |||||
| Net loss attributable to Wheeler REIT common stockholders (in 000s) | $ | (5,846) | |||
| Net loss per basic and diluted shares | $ | (0.60) | |||
Funds from operations available to common stockholders and Operating Partnership (OP) unitholders (FFO) (in 000s) (1) | $ | (942) | |||
| FFO per common share and OP unit | $ | (0.09) | |||
Adjusted FFO (AFFO) (in 000s) (1) | $ | 1,818 | |||
| AFFO per common share and OP unit | $ | 0.18 | |||
Assets and Leverage | |||||
| Investment Properties, net of $78.2 million accumulated depreciation (in 000s) | $ | 560,980 | |||
| Cash and Cash Equivalents (in 000s) | $ | 28,491 | |||
| Total Assets (in 000s) | $ | 684,536 | |||
| Total Debt (in 000s) | $ | 482,447 | |||
| Debt to Total Assets | 70.48 | % | |||
| Debt to Gross Asset Value | 62.81 | % | |||
Market Capitalization | |||||
| Common shares outstanding | 9,793,957 | ||||
| OP units outstanding | 144,942 | ||||
| Total common shares and OP units | 9,938,899 | ||||
Ticker | Shares Outstanding at December 31, 2022 | Fourth Quarter stock price range | Stock price as of December 31, 2022 | ||||||||||||||
| WHLR | 9,793,957 | $1.22-$1.99 | $ | 1.40 | |||||||||||||
| WHLRP | 3,379,142 | $1.26-$3.30 | $ | 1.52 | |||||||||||||
| WHLRD | 3,152,392 | $10.01-$13.37 | $ | 12.84 | |||||||||||||
| CDRpB | 1,450,000 | $8.10-$16.99 | $ | 14.51 | |||||||||||||
| CDRpC | 5,000,000 | $6.66-$12.92 | $ | 11.76 | |||||||||||||
Common Stock market capitalization (as of December 31, 2022 closing stock price, in 000s) | 13,712 | ||||
Portfolio Summary | | | |||||||||
| Total Leasable Area (GLA) in sq. ft. | 5,309,977 | 2,862,550 | |||||||||
| Occupancy Rate | 94.7 | % | 82.3 | % | |||||||
Leased Rate (2) | 96.5 | % | 86.2 | % | |||||||
| Annualized Base Rent (in 000s) | $ | 48,996 | $ | 24,244 | |||||||
| Total number of leases signed or renewed | 41 | 16 | |||||||||
| Total sq. ft. leases signed or renewed | 287,884 | 267,707 | |||||||||
(1) See page 24 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) Reflects leases executed through December 31, 2022 that commence subsequent to the end of the current reporting period.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 5 | ||||
Financial and Operating Results
Today, WHLR reported its financial and operating results for the three and twelve months ended December 31, 2022. For the three months ended December 31, 2022 and 2021, WHLR's net loss attributable to WHLR's common stock, $0.01 par value per share ("Common Stock") stockholders was ($0.60) per share and ($0.78) per share, respectively. For the years ended December 31, 2022 and 2021, WHLR's net loss attributable to WHLR's Common Stock stockholders was ($2.20) per share and ($1.36) per share, respectively.
2022 FOURTH QUARTER HIGHLIGHTS
(All comparisons are to the same prior year period unless otherwise noted)
LEASING
•The Company's real estate portfolio, excluding Cedar was 96.5% leased, a 230 basis point increase from 94.2%.
•The Company's real estate portfolio, excluding Cedar was 94.7% occupied, a 310 basis point increase from 91.6%.
•The Company invested $8.5 million in capital expenditures into the properties.
•The Company's real estate portfolio includes 39 properties that are 100% leased.
•WHLR Quarter-To-Date Leasing Activity
•Executed 27 lease renewals totaling 217,652 square feet at a weighted-average increase of $0.94 per square foot, representing an increase of 9.19% over in-place rental rates.
•Signed 14 new leases totaling 70,232 square feet with a weighted-average rental rate of $9.78 per square foot.
•CDR Quarter-To-Date Leasing Activity
•Executed 7 lease renewals totaling 146,854 square feet at a weighted-average increase of $1.36 per square foot, representing an increase of 14.35% over in-place rental rates.
•Signed 9 new leases totaling 120,853 square feet with a weighted-average rental rate of $11.04 per square foot.
•The Cedar portfolio was 86.2% leased, a 170 basis point increase from 84.5% as of September 30, 2022.
•The Cedar portfolio was 82.3% occupied, a 30 basis point decrease from 82.6% occupied as of September 30, 2022, due to the Company changing business strategy from redevelopment to active leasing at two Cedar properties resulting in increased GLA.
•The Company’s GLA, which is subject to leases that expire over the next twelve months and includes month-to-month leases, increased to approximately 6.77%, compared to 6.16% at December 31, 2021. At December 31, 2022, 42.26% of this expiring GLA is subject to renewal options (a lease expiration schedule can be found on page 20 and provides additional details on the Company's leases).
•As of December 31, 2022, the Company signed leases representing $2.6 million of annualized base rent ("ABR"), whereby rent will commence on these leases within the next twelve months.
OPERATIONS
•Total revenue increased by 72.94% or $11.4 million primarily a result of the Cedar Acquisition, partially offset by the decrease from sold properties.
•Total operating expenses increased by 76.49% or $8.5 million primarily a result of the Cedar Acquisition, partially offset by the decrease from sold properties.
FINANCIAL
•Funds from operations ("FFO") of $(942) thousand, or $(0.09) per share of the Company's Common Stock and common unit ("Common Unit") in our operating partnership, Wheeler REIT, L.P., as compared to FFO of $(3.4) million, or $(0.34) per share.
•Adjusted Funds from Operations ("AFFO") of $0.18 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P., as compared to $0.19 per share.
SAME STORE
•Same store Net Operating Income ("NOI"), which excludes the impact of the Cedar portfolio, increased by 5.15% and increased by 6.96% on a cash basis. Same store results were impacted by a 6.17% increase in revenue due to increased occupancy, offset by an increase in same store property expenses of 8.32% primarily driven by increases in insurance, real estate taxes and repairs and maintenance.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 6 | ||||
CAPITAL MARKETS
•The obligations under the KeyBank-Cedar Loan Agreement, collateralized by 19 properties were satisfied in full with the proceeds of the Guggenheim-Cedar Loan Agreement and Patuxent Crossing/Coliseum Marketplace Loan Agreement, collateralized by a total of 12 properties, detailed below:
•On October 28, 2022, Cedar entered into a loan agreement (the “Guggenheim-Cedar Loan Agreement”) with Guggenheim Real Estate, LLC., for $110.0 million at a fixed rate of 5.25% with monthly interest-only payments due for the first five years and monthly principal and interest payments for the remaining five years through maturity in 2032. Wheeler REIT, L.P. serves as a guarantor.
•On December 21, 2022, Cedar entered into a loan agreement (the "Patuxent Crossing/Coliseum Marketplace Loan Agreement”) with CITI Real Estate Funding, Inc. for $25.0 million at a fixed rate of 6.35% with interest-only payments due monthly through maturity, January 6, 2033.
•Recognized a non-operating gain of $198 thousand due to the change in fair market value of the derivative liabilities. The largest impact on the derivative liabilities' valuation is a result of the change in fair market value of the Company's securities associated with each derivative.
•Interest expense was $11.0 million and $13.2 million for the three months ended December 31, 2022 and 2021, respectively, representing a decrease of 16.55%. See page 15 for further details.
DISPOSITIONS
•On December 9, 2022, the Company sold Butler Square for $9.3 million, generating a gain of $2.6 million and net proceeds of $8.7 million, which were used to paydown the loan collateralized by the property.
2022 YEAR-TO-DATE HIGHLIGHTS
(All comparisons to the same prior year period unless otherwise noted)
CEDAR ACQUISITION
•In August, the Company completed a strategic acquisition of Cedar (the "Cedar Acquisition") further expanding WHLR's grocery-anchored portfolio into the Northeast. In conjunction with the Cedar Acquisition, Cedar entered into a loan agreement (the “KeyBank-Cedar Loan Agreement”) with KeyBank National Association for $130.0 million with interest-only payments due monthly through maturity, August 22, 2023. The interest rate on this term loan consists of the Secured Overnight Financing Rate plus 0.10% plus an applicable margin of 2.5%. Commencing in February 2023, the applicable margin increases to 4.0%. The obligations under the KeyBank-Cedar Loan Agreement were satisfied in full with the proceeds of the two Cedar loan agreements described in the fourth quarter highlights above resulting in Cedar related property debt having a weighted-average interest rate of 5.45% with a term of 9.9 years.
•The addition of 19 properties increased the total operating portfolio to 76 shopping centers and approximately 8.2 million square feet of gross leasable area, increasing the annualized base rent $23.9 million (at the time of the acquisition).
LEASING
•WHLR Year-To-Date Leasing Activity (excluding the Cedar portfolio)
•Executed 126 lease renewals totaling 804,998 square feet at a weighted-average increase of $0.71 per square foot, representing an increase of 7.73% over in-place rental rates.
•Signed 65 new leases totaling 214,936 square feet with a weighted-average rental rate of $11.88 per square foot.
•CDR six months ending December 31, 2022 Leasing Activity
•Executed 17 lease renewals totaling 219,048 square feet at a weighted-average increase of $1.05 per square foot, representing an increase of 10.26% over in-place rental rates.
•Signed 14 new leases totaling 159,213 square feet with a weighted-average rental rate of $10.70 per square foot.
OPERATIONS
•Total revenue increased by 25.01% or $15.3 million primarily a result of the Cedar Acquisition, partially offset by the decrease from sold properties.
•Total operating expenses increased by 24.62% or $10.8 million primarily a result of the Cedar Acquisition, partially offset by the decrease from sold properties.
FINANCIAL
•Funds from operations ("FFO") of $(3.2) million, or $(0.32) per share of the Company's Common Stock and common unit ("Common Unit") in our operating partnership, Wheeler REIT, L.P., as compared to FFO of $(2.5) million, or $(0.25) per share.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 7 | ||||
•Adjusted Funds from Operations ("AFFO") of $0.80 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P. as compared to $0.68 per share.
SAME STORE
•Same store NOI, which excludes the impact of the Cedar portfolio, increased by 3.03% and increased by 4.72% on a cash basis. Same store results were impacted by a 4.29% increase in revenue primarily due to increased occupancy, partially offset by an increase in same store property expenses of 6.98% primarily driven by increases in insurance, repairs and maintenance and grounds and landscaping.
•Same store corporate general and administrative expense decreased by $213 thousand or 3.02%.
CAPITAL MARKETS
•On June 17, 2022, the Company entered into a term loan agreement (the “Guggenheim Loan Agreement”) with Guggenheim Real Estate, LLC, for $75.0 million at a fixed rate of 4.25% with monthly interest-only payments for the first five years and monthly principal and interest payments for the remaining five years through maturity in 2032. The Guggenheim Loan Agreement is collateralized by twenty-two properties and loan proceeds were used to refinance eleven loans including $1.5 million in defeasance, increasing the weighted average term by 8.5 years and reducing the weighted average interest rate by 110 basis points.
•On July 6, 2022, the Company entered into a loan agreement (the “JANAF Loan Agreement”) with CITI Real Estate Funding Inc. for $60.0 million at a fixed interest rate of 5.31% with interest-only payments through maturity, July 6, 2032. The JANAF Loan Agreement proceeds were used to refinance three loans including $1.2 million in defeasance, increasing the weighted average term by 8.6 years and increasing annual cash flow by $1.6 million.
•Recognized a non-operating loss of $2.3 million due to the change in fair market value of the derivative liabilities. The largest impact on the derivative liabilities' valuation is a result of the change in fair market value of the Company's securities associated with each derivative.
•Interest expense was $30.1 million and $33.0 million for the years ended December 31, 2022 and 2021, respectively, representing a decrease of 8.84%, see page 16 for further details.
•Recognized $760 thousand in impairment expense on Harbor Pointe Land Parcel.
•Loans payable increased $136.2 million compared to December 31, 2021 and were impacted by:
•$130.0 million increase from the KeyBank-Cedar Loan Agreement subsequently paid down with proceeds from the $110.0 million Guggenheim-Cedar Loan Agreement and $25.0 million Patuxent Crossing/Coliseum Marketplace Loan Agreement;
•$75.0 million increase from the Guggenheim Loan Agreement which paid down $64.2 million on eleven loans;
•$60.0 million increase from the JANAF Loan Agreement which paid down $56.4 million on three loans associated with JANAF;
•$3.1 million paydown with the sale of Walnut Plaza and final principal payment;
•$5.6 million paydown with the sale of Butler Square; and
•$4.4 million monthly principal payments.
DISPOSITIONS
•On January 11, 2022, the Company sold Walnut Hill Plaza for $1.9 million, generating a loss of $15 thousand and net proceeds of $1.8 million, which were used to pay down the loan collateralized by the property.
OTHER
•The Company recognized non-operating expenses of $691 thousand due to legal settlement costs.
BALANCE SHEET
•Cash and cash equivalents totaled $28.5 million, compared to $22.9 million at December 31, 2021.
•Restricted cash totaled $27.4 million, compared to $17.5 million at December 31, 2021. The funds at December 31, 2022 are held in lender reserves primarily for the purpose of tenant improvements, lease commissions, real estate taxes and insurance expenses.
•Debt totaled $482.4 million, compared to $346.3 million at December 31, 2021.
•WHLR's weighted-average interest rate on property level debt, excluding Cedar, was 4.58% with a term of 6.2 years, compared to 4.68% with a term of 3.5 years at December 31, 2021. The weighted-average interest rate on all debt was 4.99% with a term of 7.4 years, compared to 4.90% with a term of 4.1 years at December 31, 2021.
•Net investment properties totaled $561.0 million compared to $386.7 million as of December 31, 2021.
DIVIDENDS
•Total cumulative dividends in arrears for WHLR's Series D Preferred were $10.99 per share as of December 31, 2022, with $0.67 and $2.69 per share attributable to the three and twelve months ended December 31, 2022, respectively.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 8 | ||||
•Since the CDR Acquisition in August 2022, Cedar has paid $0.453125 and $0.406250 per share with respect to the CDR Series B Preferred and CDR Series C Preferred, respectively.
Exchange Offer and Consent Solicitation
•On November 22, 2022, the Company commenced an exchange offer for its outstanding shares of Series D Preferred (the “Exchange Offer”). As subsequently amended, the terms of the Exchange Offer provided for the exchange of up to 2,112,103 outstanding shares of Series D Preferred, representing 67% of the outstanding shares of Series D Preferred, for (i) 6.00% Subordinated Convertible Notes due 2028, and (ii) Common Stock, in each case to have been newly issued by the Company, and related consents (the “Consent Solicitation”) from the holders of the Series D Preferred (the “Series D Preferred Holders”) to certain amendments to the Company’s charter that would have modified the terms of the Series D Preferred (the “Proposed Amendments”).
•The consummation of the Exchange Offer and Consent Solicitation was subject to, and was conditional upon, the satisfaction of certain conditions, including the condition that the holders of at least 66 2/3% of the outstanding shares of Series D Preferred (i) validly tender their Series D Preferred into the Exchange Offer, and do not validly withdraw such Series D Preferred, on or prior to the expiration date of the Exchange Offer, and (ii) consent to the Proposed Amendments. As of the expiration of the Exchange Offer on January 20, 2023, 864,391 shares of Series D Preferred (representing 26.8% of the total outstanding Series D Preferred) had been validly tendered (and not validly withdrawn) in the Exchange Offer. Accordingly, the condition that the holders of at least 66 2/3% of the outstanding shares of Series D Preferred (i) validly tender their Series D Preferred into the Exchange Offer, and not validly withdraw such Series D Preferred, and (ii) consent to the Proposed Amendments, had not been satisfied, and the Exchange Offer expired on January 20, 2023. As a result, the Series D Preferred remains outstanding with no change to its terms.
SUBSEQUENT EVENTS
•On February 21, 2023 the Company purchased a 2.5 acre land parcel adjacent to St. George Plaza, located in St. George, SC, for $160 thousand.
•In February 2023, Cedar paid $0.453125 and $0.406250 per share with respect to the CDR Series B Preferred and CDR Series C Preferred, respectively.
ADDITIONAL INFORMATION
The enclosed information should be read in conjunction with the Company's filings with the Securities and Exchange Commission, including, but not limited to, its quarterly and annual filings on Forms 10-Q and 10-K. These documents are or will be available upon filing via the U.S. Securities and Exchange Commission website (www.sec.gov) or through WHLR’s website at www.whlr.us.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 9 | ||||
Consolidated Balance Sheets
$ in 000s, except par value and share data
| December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| ASSETS: | |||||||||||
| Investment properties, net | $ | 560,980 | $ | 386,730 | |||||||
| Cash and cash equivalents | 28,491 | 22,898 | |||||||||
| Restricted cash | 27,374 | 17,521 | |||||||||
| Rents and other tenant receivables, net | 13,544 | 9,233 | |||||||||
| Assets held for sale | — | 2,047 | |||||||||
| Above market lease intangibles, net | 3,134 | 2,424 | |||||||||
| Operating lease right-of-use assets | 15,133 | 12,455 | |||||||||
| Deferred costs and other assets, net | 35,880 | 11,973 | |||||||||
| Total Assets | $ | 684,536 | $ | 465,281 | |||||||
| LIABILITIES: | |||||||||||
| Loans payable, net | $ | 466,029 | $ | 333,283 | |||||||
| Liabilities associated with assets held for sale | — | 3,381 | |||||||||
| Below market lease intangibles, net | 23,968 | 3,397 | |||||||||
| Derivative liabilities | 7,111 | 4,776 | |||||||||
| Operating lease liabilities | 16,478 | 13,040 | |||||||||
| Accounts payable, accrued expenses and other liabilities | 18,398 | 11,054 | |||||||||
| Total Liabilities | 531,984 | 368,931 | |||||||||
Series D Cumulative Convertible Preferred Stock (no par value, 6,000,000 shares authorized, 3,152,392 shares issued and outstanding, respectively; $113.44 million and $104.97 million aggregate liquidation value, respectively) | 101,518 | 92,548 | |||||||||
| 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, 3,379,142 and 1,872,448 shares issued and outstanding, respectively; $84.48 million and $46.81 million aggregate liquidation preference, respectively) | 44,911 | 41,189 | |||||||||
Common Stock ($0.01 par value, 200,000,000 shares authorized, 9,793,957 and 9,720,532 shares issued and outstanding, respectively) | 98 | 97 | |||||||||
| Additional paid-in capital | 234,993 | 234,229 | |||||||||
| Accumulated deficit | (295,617) | (274,107) | |||||||||
| Total Stockholders’ (Deficit) Equity | (15,162) | 1,861 | |||||||||
| Noncontrolling interests | 66,196 | 1,941 | |||||||||
| Total Equity | 51,034 | 3,802 | |||||||||
| Total Liabilities and Equity | $ | 684,536 | $ | 465,281 | |||||||
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 10 | ||||
Consolidated Statements of Operations
$ in 000s, except share and per share data
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| REVENUE: | |||||||||||||||||||||||
| Rental revenues | $ | 26,053 | $ | 15,422 | $ | 75,195 | $ | 60,368 | |||||||||||||||
| Other revenues | 898 | 162 | 1,450 | 942 | |||||||||||||||||||
| Total Revenue | 26,951 | 15,584 | 76,645 | 61,310 | |||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||
| Property operations | 9,094 | 5,045 | 25,731 | 19,618 | |||||||||||||||||||
| Depreciation and amortization | 7,318 | 3,764 | 19,540 | 14,797 | |||||||||||||||||||
| Impairment of assets held for sale | — | 100 | 760 | 2,300 | |||||||||||||||||||
| Corporate general & administrative | 3,186 | 2,195 | 8,620 | 7,140 | |||||||||||||||||||
| Total Operating Expenses | 19,598 | 11,104 | 54,651 | 43,855 | |||||||||||||||||||
| Gain (loss) on disposal of properties | 2,619 | (88) | 2,604 | 2,055 | |||||||||||||||||||
| Operating Income | 9,972 | 4,392 | 24,598 | 19,510 | |||||||||||||||||||
| Interest income | 23 | 25 | 65 | 34 | |||||||||||||||||||
| Interest expense | (11,028) | (13,215) | (30,107) | (33,028) | |||||||||||||||||||
| Net changes in fair value of derivative liabilities | 198 | 3,465 | (2,335) | 3,768 | |||||||||||||||||||
| Other income | — | — | — | 552 | |||||||||||||||||||
| Other expense | — | — | (691) | (185) | |||||||||||||||||||
| Net Loss Before Income Taxes | (835) | (5,333) | (8,470) | (9,349) | |||||||||||||||||||
| Income tax expense | — | — | — | (2) | |||||||||||||||||||
| Net Loss | (835) | (5,333) | (8,470) | (9,351) | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 2,747 | 20 | 3,984 | 92 | |||||||||||||||||||
| Net Loss Attributable to Wheeler REIT | (3,582) | (5,353) | (12,454) | (9,443) | |||||||||||||||||||
| Preferred Stock dividends - undeclared | (2,264) | (2,187) | (9,056) | (8,837) | |||||||||||||||||||
| Deemed contribution related to preferred stock redemption | — | — | — | 5,040 | |||||||||||||||||||
| Net Loss Attributable to Wheeler REIT Common Stockholders | $ | (5,846) | $ | (7,540) | $ | (21,510) | $ | (13,240) | |||||||||||||||
| Loss per share: | |||||||||||||||||||||||
| Basic and Diluted | $ | (0.60) | $ | (0.78) | $ | (2.20) | $ | (1.36) | |||||||||||||||
| Weighted-average number of shares: | |||||||||||||||||||||||
| Basic and Diluted | 9,793,504 | 9,719,239 | 9,760,704 | 9,711,944 | |||||||||||||||||||
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 11 | ||||
Reconciliation of Non-GAAP Measures
FFO and AFFO (1)
$ in 000s, except share, unit and per share data
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| Net Loss | $ | (835) | $ | (5,333) | $ | (8,470) | $ | (9,351) | ||||||||||||||||||
| Depreciation and amortization of real estate assets | 7,318 | 3,764 | 19,540 | 14,797 | ||||||||||||||||||||||
| Impairment of assets held for sale | — | 100 | 760 | 2,300 | ||||||||||||||||||||||
| (Gain) loss on disposal of properties | (2,619) | 88 | (2,604) | (2,055) | ||||||||||||||||||||||
| FFO | 3,864 | (1,381) | 9,226 | 5,691 | ||||||||||||||||||||||
| Preferred stock dividends - undeclared | (2,264) | (2,187) | (9,056) | (8,837) | ||||||||||||||||||||||
| Dividends on noncontrolling interests preferred stock | (2,688) | — | (3,913) | — | ||||||||||||||||||||||
| Preferred stock redemption | — | — | — | 70 | ||||||||||||||||||||||
| Preferred stock accretion adjustments | 146 | 146 | 584 | 600 | ||||||||||||||||||||||
| FFO available to common stockholders and common unitholders | (942) | (3,422) | (3,159) | (2,476) | ||||||||||||||||||||||
| Capital related costs | 48 | 95 | 27 | 438 | ||||||||||||||||||||||
Other non-recurring and non-cash expenses (2) | (344) | (13) | 3,065 | 352 | ||||||||||||||||||||||
| Net changes in fair value of derivative liabilities | (198) | (3,465) | 2,335 | (3,768) | ||||||||||||||||||||||
| Share based compensation | — | 14 | — | 14 | ||||||||||||||||||||||
| Straight-line rental revenue, net straight-line expense | (323) | (155) | (768) | (1,026) | ||||||||||||||||||||||
| Loan cost amortization | 3,944 | 7,510 | 6,098 | 12,710 | ||||||||||||||||||||||
| Paid-in-kind interest | 1,640 | 1,610 | 3,739 | 1,610 | ||||||||||||||||||||||
| Above (below) market lease amortization | (1,601) | (15) | (2,079) | 13 | ||||||||||||||||||||||
| Recurring capital expenditures and tenant improvement reserves | (406) | (271) | (1,354) | (1,096) | ||||||||||||||||||||||
| AFFO | $ | 1,818 | $ | 1,888 | $ | 7,904 | $ | 6,771 | ||||||||||||||||||
| Weighted Average Common Shares | 9,793,504 | 9,719,239 | 9,760,704 | 9,711,944 | ||||||||||||||||||||||
| Weighted Average Common Units | 144,942 | 216,636 | 177,301 | 219,636 | ||||||||||||||||||||||
| Total Common Shares and Units | 9,938,446 | 9,935,875 | 9,938,005 | 9,931,580 | ||||||||||||||||||||||
| FFO per Common Share and Common Units | $ | (0.09) | $ | (0.34) | $ | (0.32) | $ | (0.25) | ||||||||||||||||||
| AFFO per Common Share and Common Units | $ | 0.18 | $ | 0.19 | $ | 0.80 | $ | 0.68 | ||||||||||||||||||
(1) See page 24 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) 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, 2022.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 12 | ||||
Reconciliation of Non-GAAP Measures (continued)
Property Net Operating Income (1)
$ in 000s
| Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||
| Same Store | Non-same Store | Total | |||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
| Net (Loss) Income | $ | 351 | $ | (5,177) | $ | (1,186) | $ | (156) | $ | (835) | $ | (5,333) | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Net changes in fair value of derivative liabilities | (198) | (3,465) | — | — | (198) | (3,465) | |||||||||||||||||||||||||||||
| Interest expense | 5,276 | 13,111 | 5,752 | 104 | 11,028 | 13,215 | |||||||||||||||||||||||||||||
| Interest income | (23) | (25) | — | — | (23) | (25) | |||||||||||||||||||||||||||||
| (Gain) loss on disposal of properties | — | — | (2,619) | 88 | (2,619) | 88 | |||||||||||||||||||||||||||||
| Corporate general & administrative | 2,040 | 2,181 | 1,146 | 14 | 3,186 | 2,195 | |||||||||||||||||||||||||||||
| Impairment of assets held for sale | — | — | — | 100 | — | 100 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 3,413 | 3,679 | 3,905 | 85 | 7,318 | 3,764 | |||||||||||||||||||||||||||||
| Other non-property revenue | (52) | (26) | (1,554) | 2 | (1,606) | (24) | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 10,807 | $ | 10,278 | $ | 5,444 | $ | 237 | $ | 16,251 | $ | 10,515 | |||||||||||||||||||||||
| Property revenues | $ | 16,120 | $ | 15,183 | $ | 9,225 | $ | 377 | $ | 25,345 | $ | 15,560 | |||||||||||||||||||||||
| Property expenses | 5,313 | 4,905 | 3,781 | 140 | 9,094 | 5,045 | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 10,807 | $ | 10,278 | $ | 5,444 | $ | 237 | $ | 16,251 | $ | 10,515 | |||||||||||||||||||||||
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| Same Store | Non-same Store | Total | |||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
| Net Loss | $ | (5,926) | $ | (8,179) | $ | (2,544) | $ | (1,172) | $ | (8,470) | $ | (9,351) | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Income tax expense | — | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||
| Other expense | 691 | 185 | — | — | 691 | 185 | |||||||||||||||||||||||||||||
| Net changes in fair value of derivative liabilities | 2,335 | (3,768) | — | — | 2,335 | (3,768) | |||||||||||||||||||||||||||||
| Interest expense | 23,067 | 31,551 | 7,040 | 1,477 | 30,107 | 33,028 | |||||||||||||||||||||||||||||
| Interest Income | (65) | (34) | — | — | (65) | (34) | |||||||||||||||||||||||||||||
| Gain on disposal of properties | — | — | (2,604) | (2,055) | (2,604) | (2,055) | |||||||||||||||||||||||||||||
| Corporate general & administrative | 6,850 | 7,063 | 1,770 | 77 | 8,620 | 7,140 | |||||||||||||||||||||||||||||
| Impairment of assets held for sale | 760 | — | — | 2,300 | 760 | 2,300 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 14,193 | 14,404 | 5,347 | 393 | 19,540 | 14,797 | |||||||||||||||||||||||||||||
| Other non-property revenue | (33) | (585) | (2,069) | 10 | (2,102) | (575) | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 41,872 | $ | 40,639 | $ | 6,940 | $ | 1,030 | $ | 48,812 | $ | 41,669 | |||||||||||||||||||||||
| Property revenues | $ | 62,150 | $ | 59,594 | $ | 12,393 | $ | 1,693 | $ | 74,543 | $ | 61,287 | |||||||||||||||||||||||
| Property expenses | 20,278 | 18,955 | 5,453 | 663 | 25,731 | 19,618 | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 41,872 | $ | 40,639 | $ | 6,940 | $ | 1,030 | $ | 48,812 | $ | 41,669 | |||||||||||||||||||||||
(1) See page 25 for the Company's definition of this non-GAAP measurement and reasons for using it.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 13 | ||||
Reconciliation of Non-GAAP Measures (continued)
EBITDA (4)
$ in 000s
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net Loss | $ | (835) | $ | (5,333) | $ | (8,470) | $ | (9,351) | ||||||||||||||||||
Add back: | Depreciation and amortization (1) | 5,717 | 3,749 | 17,461 | 14,810 | |||||||||||||||||||||
Interest Expense (2) | 11,028 | 13,215 | 30,107 | 33,028 | ||||||||||||||||||||||
Income tax expense | — | — | — | 2 | ||||||||||||||||||||||
EBITDA | 15,910 | 11,631 | 39,098 | 38,489 | ||||||||||||||||||||||
| Adjustments for items affecting comparability: | ||||||||||||||||||||||||||
Capital related costs | 48 | 95 | 27 | 438 | ||||||||||||||||||||||
| Change in FMV of derivative liabilities | (198) | (3,465) | 2,335 | (3,768) | ||||||||||||||||||||||
Other non-recurring and non-cash expenses (3) | (353) | (8) | 413 | (361) | ||||||||||||||||||||||
Impairment of assets held for sale | — | 100 | 760 | 2,300 | ||||||||||||||||||||||
(Gain) loss on disposal of properties | (2,619) | 88 | (2,604) | (2,055) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 12,788 | $ | 8,441 | $ | 40,029 | $ | 35,043 | ||||||||||||||||||
(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, 2022.
(4) See page 24 for the Company's definition of this non-GAAP measurement and reasons for using it.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 14 | ||||
Debt Summary
$ in 000s
Loans Payable: $482.45 million
Weighted Average Interest Rate: 4.99%
| Property/Description | Monthly Payment | Interest Rate | Maturity | December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
| Cypress Shopping Center | $ | 34,360 | 4.70 | % | July 2024 | $ | 5,903 | $ | 6,031 | |||||||||||||||||||||||
| Port Crossing | $ | 34,788 | 4.84 | % | August 2024 | 5,641 | 5,778 | |||||||||||||||||||||||||
| Freeway Junction | $ | 41,798 | 4.60 | % | September 2024 | 7,273 | 7,431 | |||||||||||||||||||||||||
| Harrodsburg Marketplace | $ | 19,112 | 4.55 | % | September 2024 | 3,186 | 3,267 | |||||||||||||||||||||||||
| Bryan Station | $ | 23,489 | 4.52 | % | November 2024 | 4,136 | 4,226 | |||||||||||||||||||||||||
| Crockett Square | Interest only | 4.47 | % | December 2024 | 6,338 | 6,338 | ||||||||||||||||||||||||||
| Pierpont Centre | $ | 39,435 | 4.15 | % | February 2025 | 7,716 | 7,861 | |||||||||||||||||||||||||
| Shoppes at Myrtle Park | $ | 33,180 | 4.45 | % | February 2025 | 5,615 | 5,757 | |||||||||||||||||||||||||
| Alex City Marketplace | Interest only | 3.95 | % | April 2025 | 5,750 | 5,750 | ||||||||||||||||||||||||||
| Brook Run Shopping Center | Interest only | 4.08 | % | June 2025 | 10,950 | 10,950 | ||||||||||||||||||||||||||
| Beaver Ruin Village I and II | Interest only | 4.73 | % | July 2025 | 9,400 | 9,400 | ||||||||||||||||||||||||||
| Sunshine Shopping Plaza | Interest only | 4.57 | % | August 2025 | 5,900 | 5,900 | ||||||||||||||||||||||||||
| Barnett Portfolio (2) | Interest only | 4.30 | % | September 2025 | 8,770 | 8,770 | ||||||||||||||||||||||||||
| Fort Howard Shopping Center | Interest only | 4.57 | % | October 2025 | 7,100 | 7,100 | ||||||||||||||||||||||||||
| Conyers Crossing | Interest only | 4.67 | % | October 2025 | 5,960 | 5,960 | ||||||||||||||||||||||||||
| Grove Park Shopping Center | Interest only | 4.52 | % | October 2025 | 3,800 | 3,800 | ||||||||||||||||||||||||||
| Parkway Plaza | Interest only | 4.57 | % | October 2025 | 3,500 | 3,500 | ||||||||||||||||||||||||||
| Winslow Plaza | $ | 24,295 | 4.82 | % | December 2025 | 4,409 | 4,483 | |||||||||||||||||||||||||
| Tuckernuck | $ | 32,202 | 5.00 | % | March 2026 | 4,915 | 5,052 | |||||||||||||||||||||||||
| Chesapeake Square | $ | 23,857 | 4.70 | % | August 2026 | 4,106 | 4,192 | |||||||||||||||||||||||||
| Sangaree/Tri-County | $ | 32,329 | 4.78 | % | December 2026 | 6,086 | 6,176 | |||||||||||||||||||||||||
| Riverbridge | Interest only | 4.48 | % | December 2026 | 4,000 | 4,000 | ||||||||||||||||||||||||||
| Franklin Village | $ | 45,336 | 4.93 | % | January 2027 | 8,144 | 8,277 | |||||||||||||||||||||||||
| Village of Martinsville | $ | 89,664 | 4.28 | % | July 2029 | 15,181 | 15,589 | |||||||||||||||||||||||||
| Laburnum Square | Interest only | 4.28 | % | September 2029 | 7,665 | 7,665 | ||||||||||||||||||||||||||
| Rivergate (3) | $ | 100,222 | 4.25 | % | September 2031 | 18,003 | 18,430 | |||||||||||||||||||||||||
| Convertible Notes | Interest only | 7.00 | % | December 2031 | 33,000 | 33,000 | ||||||||||||||||||||||||||
| Guggenheim Loan Agreement (4) | Interest only | 4.25 | % | July 2032 | 75,000 | — | ||||||||||||||||||||||||||
| JANAF Loan Agreement (5) | Interest only | 5.31 | % | July 2032 | 60,000 | — | ||||||||||||||||||||||||||
| Guggenheim-Cedar Loan Agreement (6) | Interest only | 5.25 | % | November 2032 | 110,000 | — | ||||||||||||||||||||||||||
| Patuxent Crossing/Coliseum Marketplace Loan Agreement | Interest only | 6.35 | % | January 2033 | 25,000 | — | ||||||||||||||||||||||||||
| Walnut Hill Plaza | $ | 26,850 | 5.50 | % | March 2023 | — | 3,145 | |||||||||||||||||||||||||
| Litchfield Market Village | $ | 46,057 | 5.50 | % | November 2022 | — | 7,312 | |||||||||||||||||||||||||
| Twin City Commons | $ | 17,827 | 4.86 | % | January 2023 | — | 2,843 | |||||||||||||||||||||||||
| New Market | $ | 48,747 | 5.65 | % | June 2023 | — | 6,291 | |||||||||||||||||||||||||
| Benefit Street Note | $ | 53,185 | 5.71 | % | June 2023 | — | 6,914 | |||||||||||||||||||||||||
| Deutsche Bank Note | $ | 33,340 | 5.71 | % | July 2023 | — | 5,488 | |||||||||||||||||||||||||
| First National Bank | $ | 24,656 | LIBOR + 350 basis points | August 2023 | — | 789 | ||||||||||||||||||||||||||
| Lumber River | $ | 10,723 | LIBOR + 350 basis points | September 2023 | — | 1,296 | ||||||||||||||||||||||||||
| Tampa Festival | $ | 50,797 | 5.56 | % | September 2023 | — | 7,753 | |||||||||||||||||||||||||
| Forrest Gallery | $ | 50,973 | 5.40 | % | September 2023 | — | 8,060 | |||||||||||||||||||||||||
| South Carolina Food Lions Note | $ | 68,320 | 5.25 | % | January 2024 | — | 11,259 | |||||||||||||||||||||||||
| Folly Road | $ | 41,482 | 4.65 | % | March 2025 | — | 7,063 | |||||||||||||||||||||||||
| JANAF | $ | 333,159 | 4.49 | % | July 2023 | — | 47,065 | |||||||||||||||||||||||||
| JANAF Bravo | $ | 35,076 | 5.00 | % | May 2024 | — | 5,936 | |||||||||||||||||||||||||
| JANAF BJ's | $ | 29,964 | 4.95 | % | January 2026 | — | 4,725 | |||||||||||||||||||||||||
| Butler Square | Interest only | 3.90 | % | May 2025 | — | 5,640 | ||||||||||||||||||||||||||
Total Principal Balance (1) | 482,447 | 346,262 | ||||||||||||||||||||||||||||||
Unamortized debt issuance cost (1) | (16,418) | (9,834) | ||||||||||||||||||||||||||||||
| Total Loans Payable, including assets held for sale | 466,029 | 336,428 | ||||||||||||||||||||||||||||||
| Less loans payable on assets held for sale, net loan amortization costs | — | 3,145 | ||||||||||||||||||||||||||||||
| Total Loans Payable, net | $ | 466,029 | $ | 333,283 | ||||||||||||||||||||||||||||
(1) Includes loans payable on assets held for sale. The loan agreements include customary prepayment penalties or defeasance costs, which can be incurred by the company when prepaying or defeasing loans.
(2) Collateralized by Cardinal Plaza, Franklinton Square, and Nashville Commons.
(3) October 2026 the interest rate changes to variable interest rate equal to the 5 years U.S. Treasury Rate plus 2.70%, with a floor of 4.25%.
(4) Collateralized by 22 properties.
(5) Collateralized by JANAF properties.
(6) Collateralized by 10 Cedar properties.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 15 | ||||
Debt Summary (continued)
Total Debt
$ in 000s
| Scheduled principal repayments and maturities by year | Amount | % Total Principal Payments and Maturities | ||||||||||||
| December 31, 2023 | $ | 2,343 | 0.49 | % | ||||||||||
| December 31, 2024 | 33,690 | 6.98 | % | |||||||||||
| December 31, 2025 | 79,697 | 16.52 | % | |||||||||||
| December 31, 2026 | 19,347 | 4.01 | % | |||||||||||
| December 31, 2027 | 9,440 | 1.96 | % | |||||||||||
| Thereafter | 337,930 | 70.04 | % | |||||||||||
| Total principal repayments and debt maturities | $ | 482,447 | 100.00 | % | ||||||||||
Interest Expense
$ in 000s
| Three Months Ended December 31, | Twelve Months Ended December 31, | Three Months Ended Changes | Twelve Months Ended Changes | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | Change | % Change | Change | % Change | ||||||||||||||||||||||||||||||||||||||||
| Property debt interest - excluding Cedar debt | $ | 3,777 | $ | 2,738 | $ | 14,717 | $ | 14,611 | $ | 1,039 | 37.95 | % | $ | 106 | 0.73 | % | |||||||||||||||||||||||||||||||
Convertible Notes interest (1) | 1,062 | 1,784 | 3,739 | 1,610 | (722) | (40.47) | % | 2,129 | 132.24 | % | |||||||||||||||||||||||||||||||||||||
| Defeasance paid | — | — | 2,614 | 687 | — | — | % | 1,927 | 280.49 | % | |||||||||||||||||||||||||||||||||||||
| Amortization of deferred financing costs | 3,944 | 7,510 | 6,098 | 12,710 | (3,566) | (47.48) | % | (6,612) | (52.02) | % | |||||||||||||||||||||||||||||||||||||
| Interest on corporate debt | — | 1,183 | — | 3,410 | (1,183) | (100.00) | % | (3,410) | (100.00) | % | |||||||||||||||||||||||||||||||||||||
| Property debt interest - Cedar | 2,245 | — | 2,939 | — | 2,245 | 100.00 | % | 2,939 | 100.00 | % | |||||||||||||||||||||||||||||||||||||
| Total Interest Expense | $ | 11,028 | $ | 13,215 | $ | 30,107 | $ | 33,028 | $ | (2,187) | (16.55) | % | $ | (2,921) | (8.84) | % | |||||||||||||||||||||||||||||||
(1) Includes the fair value adjustment for the paid-in-kind interest.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 16 | ||||
Property Summary
Property | Location | Number of Tenants | Total Leasable Square Feet | Percentage Leased (1) | Percentage Occupied | Total SF Occupied | Annualized Base Rent (in 000's) (2) | Annualized Base Rent per Occupied Sq. Foot | ||||||||||||||||||||||||
| WHLR | ||||||||||||||||||||||||||||||||
| Alex City Marketplace | Alexander City, AL | 19 | 151,843 | 100.0 | % | 100.0 | % | 151,843 | $ | 1,215 | $ | 8.00 | ||||||||||||||||||||
| Amscot Building | Tampa, FL | 1 | 2,500 | 100.0 | % | 100.0 | % | 2,500 | 83 | 33.00 | ||||||||||||||||||||||
| Beaver Ruin Village | Lilburn, GA | 29 | 74,038 | 96.8 | % | 94.1 | % | 69,648 | 1,254 | 18.01 | ||||||||||||||||||||||
| Beaver Ruin Village II | Lilburn, GA | 4 | 34,925 | 100.0 | % | 100.0 | % | 34,925 | 464 | 13.29 | ||||||||||||||||||||||
| Brook Run Shopping Center | Richmond, VA | 20 | 147,738 | 87.0 | % | 87.0 | % | 128,495 | 1,167 | 9.08 | ||||||||||||||||||||||
| Brook Run Properties (3) | Richmond, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Bryan Station | Lexington, KY | 10 | 54,277 | 100.0 | % | 100.0 | % | 54,277 | 637 | 11.73 | ||||||||||||||||||||||
| Cardinal Plaza | Henderson, NC | 9 | 50,000 | 100.0 | % | 100.0 | % | 50,000 | 504 | 10.07 | ||||||||||||||||||||||
| Chesapeake Square | Onley, VA | 14 | 108,982 | 99.1 | % | 99.1 | % | 108,016 | 838 | 7.76 | ||||||||||||||||||||||
| Clover Plaza | Clover, SC | 9 | 45,575 | 100.0 | % | 97.1 | % | 44,275 | 360 | 8.12 | ||||||||||||||||||||||
| Courtland Commons (3) | Courtland, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Conyers Crossing | Conyers, GA | 14 | 170,475 | 100.0 | % | 100.0 | % | 170,475 | 986 | 5.78 | ||||||||||||||||||||||
| Crockett Square | Morristown, TN | 4 | 107,122 | 100.0 | % | 100.0 | % | 107,122 | 970 | 9.06 | ||||||||||||||||||||||
| Cypress Shopping Center | Boiling Springs, SC | 16 | 80,435 | 59.9 | % | 39.5 | % | 31,775 | 447 | 14.06 | ||||||||||||||||||||||
| Darien Shopping Center | Darien, GA | 1 | 26,001 | 100.0 | % | 100.0 | % | 26,001 | 140 | 5.38 | ||||||||||||||||||||||
| Devine Street | Columbia, SC | 1 | 38,464 | 89.1 | % | 89.1 | % | 34,264 | 180 | 5.25 | ||||||||||||||||||||||
| Edenton Commons (3) | Edenton, NC | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Folly Road | Charleston, SC | 5 | 47,794 | 100.0 | % | 100.0 | % | 47,794 | 733 | 15.35 | ||||||||||||||||||||||
| Forrest Gallery | Tullahoma, TN | 28 | 214,451 | 90.0 | % | 90.0 | % | 193,024 | 1,425 | 7.38 | ||||||||||||||||||||||
| Fort Howard Shopping Center | Rincon, GA | 20 | 113,652 | 100.0 | % | 100.0 | % | 113,652 | 1,250 | 11.00 | ||||||||||||||||||||||
| Freeway Junction | Stockbridge, GA | 17 | 156,834 | 97.5 | % | 97.5 | % | 152,984 | 1,323 | 8.65 | ||||||||||||||||||||||
| Franklin Village | Kittanning, PA | 25 | 151,821 | 99.9 | % | 99.9 | % | 151,673 | 1,297 | 8.55 | ||||||||||||||||||||||
| Franklinton Square | Franklinton, NC | 15 | 65,366 | 100.0 | % | 100.0 | % | 65,366 | 596 | 9.11 | ||||||||||||||||||||||
| Georgetown | Georgetown, SC | 2 | 29,572 | 100.0 | % | 100.0 | % | 29,572 | 267 | 9.04 | ||||||||||||||||||||||
| Grove Park Shopping Center | Orangeburg, SC | 14 | 93,265 | 100.0 | % | 100.0 | % | 93,265 | 761 | 8.16 | ||||||||||||||||||||||
| Harbor Point (3) | Grove, OK | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Harrodsburg Marketplace | Harrodsburg, KY | 8 | 60,048 | 91.0 | % | 91.0 | % | 54,648 | 451 | 8.26 | ||||||||||||||||||||||
| JANAF (4) | Norfolk, VA | 118 | 798,086 | 96.7 | % | 95.0 | % | 758,320 | 8,993 | 11.86 | ||||||||||||||||||||||
| Laburnum Square | Richmond, VA | 19 | 109,405 | 99.1 | % | 96.9 | % | 106,045 | 970 | 9.14 | ||||||||||||||||||||||
| Ladson Crossing | Ladson, SC | 16 | 52,607 | 100.0 | % | 100.0 | % | 52,607 | 548 | 10.42 | ||||||||||||||||||||||
| LaGrange Marketplace | LaGrange, GA | 14 | 76,594 | 93.7 | % | 93.7 | % | 71,800 | 443 | 6.17 | ||||||||||||||||||||||
| Lake Greenwood Crossing | Greenwood, SC | 8 | 43,618 | 100.0 | % | 100.0 | % | 43,618 | 363 | 8.33 | ||||||||||||||||||||||
| Lake Murray | Lexington, SC | 5 | 39,218 | 100.0 | % | 100.0 | % | 39,218 | 272 | 6.92 | ||||||||||||||||||||||
| Litchfield Market Village | Pawleys Island, SC | 24 | 86,740 | 94.8 | % | 94.8 | % | 82,202 | 1,028 | 12.51 | ||||||||||||||||||||||
| Lumber River Village | Lumberton, NC | 11 | 66,781 | 100.0 | % | 100.0 | % | 66,781 | 474 | 7.09 | ||||||||||||||||||||||
| Moncks Corner | Moncks Corner, SC | 1 | 26,800 | 100.0 | % | 100.0 | % | 26,800 | 330 | 12.31 | ||||||||||||||||||||||
| Nashville Commons | Nashville, NC | 12 | 56,100 | 100.0 | % | 100.0 | % | 56,100 | 646 | 11.51 | ||||||||||||||||||||||
| New Market Crossing | Mt. Airy, NC | 12 | 117,076 | 100.0 | % | 100.0 | % | 117,076 | 1,035 | 8.84 | ||||||||||||||||||||||
| Parkway Plaza | Brunswick, GA | 4 | 52,365 | 81.7 | % | 81.7 | % | 42,785 | 452 | 10.57 | ||||||||||||||||||||||
| Pierpont Centre | Morgantown, WV | 15 | 111,162 | 98.4 | % | 98.4 | % | 109,437 | 1,055 | 9.64 | ||||||||||||||||||||||
| Port Crossing | Harrisonburg, VA | 7 | 65,365 | 95.9 | % | 95.9 | % | 62,715 | 813 | 12.97 | ||||||||||||||||||||||
| Ridgeland | Ridgeland, SC | 1 | 20,029 | 100.0 | % | 100.0 | % | 20,029 | 140 | 7.00 | ||||||||||||||||||||||
| Riverbridge Shopping Center | Carrollton, GA | 11 | 91,188 | 100.0 | % | 100.0 | % | 91,188 | 769 | 8.43 | ||||||||||||||||||||||
| Rivergate Shopping Center | Macon, GA | 24 | 193,960 | 87.0 | % | 87.0 | % | 168,816 | 2,509 | 14.86 | ||||||||||||||||||||||
| Sangaree Plaza | Summerville, SC | 10 | 66,948 | 100.0 | % | 100.0 | % | 66,948 | 714 | 10.67 | ||||||||||||||||||||||
| Shoppes at Myrtle Park | Bluffton, SC | 13 | 56,601 | 97.3 | % | 97.3 | % | 55,084 | 657 | 11.92 | ||||||||||||||||||||||
| South Lake | Lexington, SC | 10 | 44,318 | 97.3 | % | 97.3 | % | 43,118 | 242 | 5.61 | ||||||||||||||||||||||
| South Park | Mullins, SC | 4 | 60,734 | 96.9 | % | 96.9 | % | 58,834 | 379 | 6.43 | ||||||||||||||||||||||
| South Square | Lancaster, SC | 6 | 44,350 | 80.9 | % | 80.9 | % | 35,900 | 303 | 8.44 | ||||||||||||||||||||||
| St. George Plaza | St. George, SC | 8 | 59,174 | 100.0 | % | 100.0 | % | 59,174 | 401 | 6.78 | ||||||||||||||||||||||
| Sunshine Plaza | Lehigh Acres, FL | 23 | 111,189 | 100.0 | % | 100.0 | % | 111,189 | 1,111 | 9.99 | ||||||||||||||||||||||
| Surrey Plaza | Hawkinsville, GA | 4 | 42,680 | 100.0 | % | 100.0 | % | 42,680 | 258 | 6.05 | ||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 17 | ||||
Property Summary (continued)
Property | Location | Number of Tenants | Total Leasable Square Feet | Percentage Leased (1) | Percentage Occupied | Total SF Occupied | Annualized Base Rent (in 000's) (2) | Annualized Base Rent per Occupied Sq. Foot | ||||||||||||||||||||||||
| Tampa Festival | Tampa, FL | 19 | 141,580 | 98.9 | % | 66.7 | % | 94,380 | $ | 932 | $ | 9.88 | ||||||||||||||||||||
| Tri-County Plaza | Royston, GA | 7 | 67,577 | 90.2 | % | 90.2 | % | 60,977 | 432 | 7.08 | ||||||||||||||||||||||
| Tuckernuck | Richmond, VA | 17 | 93,440 | 98.6 | % | 98.6 | % | 92,173 | 999 | 10.84 | ||||||||||||||||||||||
| Twin City Commons | Batesburg-Leesville, SC | 5 | 47,680 | 100.0 | % | 100.0 | % | 47,680 | 488 | 10.23 | ||||||||||||||||||||||
| Village of Martinsville | Martinsville, VA | 21 | 288,254 | 100.0 | % | 96.4 | % | 277,742 | 2,199 | 7.92 | ||||||||||||||||||||||
| Waterway Plaza | Little River, SC | 10 | 49,750 | 100.0 | % | 100.0 | % | 49,750 | 503 | 10.11 | ||||||||||||||||||||||
| Westland Square | West Columbia, SC | 11 | 62,735 | 100.0 | % | 100.0 | % | 62,735 | 537 | 8.57 | ||||||||||||||||||||||
| Winslow Plaza | Sicklerville, NJ | 18 | 40,695 | 100.0 | % | 100.0 | % | 40,695 | 653 | 16.04 | ||||||||||||||||||||||
| WHLR TOTAL | 773 | 5,309,977 | 96.5 | % | 94.7 | % | 5,030,190 | $ | 48,996 | $ | 9.74 | |||||||||||||||||||||
| CDR | ||||||||||||||||||||||||||||||||
| Brickyard Plaza | Berlin, CT | 10 | 227,598 | 100.0 | % | 99.2 | % | 225,821 | $ | 2,027 | $ | 8.98 | ||||||||||||||||||||
| Carll's Corner | Bridgeton, NJ | 5 | 129,582 | 27.5 | % | 21.1 | % | 27,324 | 400 | 14.63 | ||||||||||||||||||||||
| Coliseum Marketplace | Hampton, VA | 9 | 106,648 | 100.0 | % | 45.9 | % | 48,986 | 610 | 12.46 | ||||||||||||||||||||||
| Fairview Commons | New Cumberland, PA | 10 | 52,964 | 77.5 | % | 77.5 | % | 41,064 | 448 | 10.91 | ||||||||||||||||||||||
| Fieldstone Marketplace | New Bedford, MA | 10 | 193,970 | 71.7 | % | 71.7 | % | 139,139 | 1,652 | 11.87 | ||||||||||||||||||||||
| Gold Star Plaza | Shenandoah, PA | 6 | 71,720 | 97.8 | % | 97.8 | % | 70,120 | 641 | 9.14 | ||||||||||||||||||||||
| Golden Triangle | Lancaster, PA | 19 | 202,790 | 98.4 | % | 98.4 | % | 199,605 | 2,609 | 13.07 | ||||||||||||||||||||||
| Hamburg Square | Hamburg, PA | 7 | 102,058 | 100.0 | % | 100.0 | % | 102,058 | 684 | 6.70 | ||||||||||||||||||||||
| Kings Plaza | New Bedford, MA | 16 | 168,243 | 82.2 | % | 82.2 | % | 138,239 | 1,227 | 8.87 | ||||||||||||||||||||||
| Oakland Commons | Bristol, CT | 2 | 90,100 | 100.0 | % | 100.0 | % | 90,100 | 574 | 6.37 | ||||||||||||||||||||||
| Oregon Avenue | Philadelphia, PA | 1 | 20,380 | 100.0 | % | 5.8 | % | 1,180 | 40 | 34.21 | ||||||||||||||||||||||
| Patuxent Crossing | California, MD | 30 | 264,068 | 84.3 | % | 84.3 | % | 222,715 | 2,254 | 10.12 | ||||||||||||||||||||||
| Pine Grove Plaza | Brown Mills, NJ | 14 | 79,306 | 81.1 | % | 49.6 | % | 39,343 | 573 | 14.56 | ||||||||||||||||||||||
| South Philadelphia | Philadelphia, PA | 10 | 221,511 | 71.8 | % | 71.8 | % | 159,131 | 1,445 | 9.08 | ||||||||||||||||||||||
| Southington Center | Southington, CT | 10 | 155,842 | 100.0 | % | 98.5 | % | 153,507 | 1,172 | 7.64 | ||||||||||||||||||||||
| Timpany Plaza | Gardner, MA | 14 | 182,799 | 65.0 | % | 65.0 | % | 118,875 | 1,167 | 9.81 | ||||||||||||||||||||||
| Trexler Mall | Trexlertown, PA | 23 | 336,687 | 98.2 | % | 98.2 | % | 330,634 | 3,670 | 11.10 | ||||||||||||||||||||||
| Washington Center Shoppes | Sewell, NJ | 28 | 157,300 | 94.0 | % | 94.0 | % | 147,856 | 1,810 | 12.24 | ||||||||||||||||||||||
| Webster Commons | Webster, MA | 9 | 98,984 | 100.0 | % | 100.0 | % | 98,984 | 1,241 | 12.54 | ||||||||||||||||||||||
| CDR TOTAL | 233 | 2,862,550 | 86.2 | % | 82.3 | % | 2,354,681 | $ | 24,244 | $ | 10.30 | |||||||||||||||||||||
| COMBINED TOTAL | 1,006 | 8,172,527 | 92.9 | % | 90.4 | % | 7,384,871 | $ | 73,240 | $ | 9.92 | |||||||||||||||||||||
(1) Reflects leases executed through December 31, 2022 that commence subsequent to the end of the current reporting period.
(2) Annualized based rent per occupied square foot, assumes base rent as of the end of the current reporting period, excludes the impact of tenant concessions and rent abatements.
(3) This information is not available because the property is undeveloped.
(4) Square footage is net of the Company's on-premise management office and net of building square footage whereby the Company only leases the land.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 18 | ||||
Property Summary (continued)
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 19 | ||||
Top Ten Tenants by Annualized Base Rent
Total Tenants : 1,006
| Tenants | Category | Annualized Base Rent ($ in 000s) | % of Total Annualized Base Rent | Total Occupied Square Feet | Percent Total Leasable Square Foot | Annualized Base Rent Per Occupied Square Foot | |||||||||||||||||||||||||||||||||||
| Food Lion | Grocery | $ | 4,435 | 6.06 | % | 549,000 | 6.72 | % | $ | 8.08 | |||||||||||||||||||||||||||||||
Kroger Co (1) | Grocery | 2,097 | 2.86 | % | 311,000 | 3.81 | % | 6.74 | |||||||||||||||||||||||||||||||||
Dollar Tree (2) | Discount Retailer | 2,046 | 2.79 | % | 244,000 | 2.99 | % | 8.39 | |||||||||||||||||||||||||||||||||
| Piggly Wiggly | Grocery | 1,509 | 2.06 | % | 203,000 | 2.48 | % | 7.43 | |||||||||||||||||||||||||||||||||
| Planet Fitness | Gym | 1,443 | 1.97 | % | 140,000 | 1.71 | % | 10.31 | |||||||||||||||||||||||||||||||||
TJX Companies (4) | Discount Retailer | 1,186 | 1.62 | % | 195,000 | 2.39 | % | 6.08 | |||||||||||||||||||||||||||||||||
Lowes Foods (3) | Grocery | 1,181 | 1.61 | % | 130,000 | 1.59 | % | 9.08 | |||||||||||||||||||||||||||||||||
| Big Lots | Discount Retailer | 1,079 | 1.47 | % | 171,000 | 2.09 | % | 6.31 | |||||||||||||||||||||||||||||||||
| Kohl's | Discount Retailer | 1,031 | 1.41 | % | 147,000 | 1.80 | % | 7.01 | |||||||||||||||||||||||||||||||||
| Winn Dixie | Grocery | 984 | 1.34 | % | 134,000 | 1.64 | % | 7.34 | |||||||||||||||||||||||||||||||||
| $ | 16,991 | 23.19 | % | 2,224,000 | 27.22 | % | $ | 7.64 | |||||||||||||||||||||||||||||||||
(1) Kroger 4 / Harris Teeter 1 / 3 fuel stations
(2) Dollar Tree 17 / Family Dollar 7
(3) Lowes Foods 1 / KJ's Market 2
(4) Marshall's 4 / HomeGoods 2 / TJ Maxx 1
Lease Expiration Schedule
| Lease Expiration Period | Number of Expiring Leases | Total Expiring Square Footage | % of Total Expiring Square Footage | % of Total Occupied Square Footage Expiring | Expiring Annualized Base Rent (in 000s) | % of Total Annualized Base Rent | Expiring Base Rent Per Occupied Square Foot | |||||||||||||||||||||||||||||||||||||
| Available | — | 787,656 | 9.64 | % | — | % | $ | — | — | % | $ | — | ||||||||||||||||||||||||||||||||
| MTM | 14 | 57,298 | 0.70 | % | 0.78 | % | 843 | 1.15 | % | 14.71 | ||||||||||||||||||||||||||||||||||
| 2023 | 123 | 495,810 | 6.07 | % | 6.71 | % | 5,635 | 7.69 | % | 11.37 | ||||||||||||||||||||||||||||||||||
| 2024 | 164 | 908,659 | 11.12 | % | 12.30 | % | 9,712 | 13.26 | % | 10.69 | ||||||||||||||||||||||||||||||||||
| 2025 | 171 | 1,202,547 | 14.71 | % | 16.28 | % | 11,811 | 16.13 | % | 9.82 | ||||||||||||||||||||||||||||||||||
| 2026 | 146 | 898,230 | 10.99 | % | 12.16 | % | 9,737 | 13.29 | % | 10.84 | ||||||||||||||||||||||||||||||||||
| 2027 | 142 | 720,776 | 8.82 | % | 9.76 | % | 8,615 | 11.76 | % | 11.95 | ||||||||||||||||||||||||||||||||||
| 2028 | 70 | 1,049,374 | 12.84 | % | 14.21 | % | 8,270 | 11.29 | % | 7.88 | ||||||||||||||||||||||||||||||||||
| 2029 | 49 | 470,930 | 5.76 | % | 6.38 | % | 4,425 | 6.04 | % | 9.40 | ||||||||||||||||||||||||||||||||||
| 2030 | 30 | 445,826 | 5.46 | % | 6.04 | % | 3,267 | 4.46 | % | 7.33 | ||||||||||||||||||||||||||||||||||
| 2031 | 28 | 340,279 | 4.16 | % | 4.61 | % | 3,254 | 4.44 | % | 9.56 | ||||||||||||||||||||||||||||||||||
| 2032 & thereafter | 69 | 795,142 | 9.73 | % | 10.77 | % | 7,671 | 10.49 | % | 9.65 | ||||||||||||||||||||||||||||||||||
| Total | 1,006 | 8,172,527 | 100.00 | % | 100.00 | % | $ | 73,240 | 100.00 | % | $ | 9.92 | ||||||||||||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 20 | ||||
Leasing Summary
Anchor Lease Expiration Schedule (1)
| No Option | Option | ||||||||||||||||||||||||||||||||||
| Lease Expiration Period | Number of Expiring Leases | Expiring Occupied Square Footage | Expiring Annualized Based Rent (in 000s) | % of Total Annualized Base Rent | Expiring Base Rent per Square Foot | Number of Expiring Leases | Expiring Occupied Square Footage | Expiring Annualized Based Rent (in 000s) | % of Total Annualized Base Rent | Expiring Base Rent per Square Foot | |||||||||||||||||||||||||
| Available | — | 311,069 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | 1 | 20,300 | 117 | 3.24 | % | 5.76 | — | — | — | — | % | — | |||||||||||||||||||||||
| 2023 | 2 | 55,259 | 888 | 24.61 | % | 16.07 | 5 | 151,616 | 953 | 3.41 | % | 6.29 | |||||||||||||||||||||||
| 2024 | 1 | 32,000 | 125 | 3.46 | % | 3.91 | 11 | 466,489 | 3,700 | 13.24 | % | 7.93 | |||||||||||||||||||||||
| 2025 | 3 | 112,660 | 759 | 21.04 | % | 6.74 | 15 | 608,431 | 4,502 | 16.11 | % | 7.40 | |||||||||||||||||||||||
| 2026 | 1 | 20,152 | 97 | 2.69 | % | 4.81 | 14 | 456,864 | 3,817 | 13.66 | % | 8.35 | |||||||||||||||||||||||
| 2027 | 3 | 69,819 | 629 | 17.43 | % | 9.01 | 5 | 149,546 | 1,221 | 4.37 | % | 8.16 | |||||||||||||||||||||||
| 2028 | — | — | — | — | % | — | 19 | 822,851 | 5,430 | 19.44 | % | 6.60 | |||||||||||||||||||||||
| 2029 | 3 | 71,939 | 772 | 21.40 | % | 10.73 | 6 | 174,928 | 1,014 | 3.63 | % | 5.80 | |||||||||||||||||||||||
| 2030 | — | — | — | — | % | — | 6 | 372,398 | 1,994 | 7.14 | % | 5.35 | |||||||||||||||||||||||
| 2031 | 1 | 20,858 | 60 | 1.67 | % | 2.88 | 4 | 195,516 | 1,733 | 6.20 | % | 8.86 | |||||||||||||||||||||||
| 2032+ | 2 | 66,189 | 161 | 4.46 | % | 2.43 | 14 | 531,652 | 3,574 | 12.80 | % | 6.72 | |||||||||||||||||||||||
| Total | 17 | 780,245 | $ | 3,608 | 100.00 | % | $ | 7.69 | 99 | 3,930,291 | $ | 27,938 | 100.00 | % | $ | 7.11 | |||||||||||||||||||
(1) Anchors defined as leases occupying 20,000 square feet or more.
Non-anchor Lease Expiration Schedule
| No Option | Option | ||||||||||||||||||||||||||||||||||
| Lease Expiration Period | Number of Expiring Leases | Expiring Occupied Square Footage | Expiring Annualized Based Rent (in 000s) | % of Total Annualized Base Rent | Expiring Base Rent per Square Foot | Number of Expiring Leases | Expiring Occupied Square Footage | Expiring Annualized Based Rent (in 000s) | % of Total Annualized Base Rent | Expiring Base Rent per Square Foot | |||||||||||||||||||||||||
| Available | — | 476,587 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | 13 | 36,998 | 726 | 3.87 | % | 19.62 | — | — | — | — | % | — | |||||||||||||||||||||||
| 2023 | 81 | 206,818 | 2,527 | 13.48 | % | 12.22 | 35 | 82,117 | 1,267 | 5.52 | % | 15.43 | |||||||||||||||||||||||
| 2024 | 95 | 206,853 | 2,878 | 15.35 | % | 13.91 | 57 | 203,317 | 3,009 | 13.12 | % | 14.80 | |||||||||||||||||||||||
| 2025 | 97 | 238,782 | 3,164 | 16.87 | % | 13.25 | 56 | 242,674 | 3,386 | 14.76 | % | 13.95 | |||||||||||||||||||||||
| 2026 | 76 | 192,982 | 2,677 | 14.28 | % | 13.87 | 55 | 228,232 | 3,146 | 13.71 | % | 13.78 | |||||||||||||||||||||||
| 2027 | 78 | 216,949 | 3,241 | 17.28 | % | 14.94 | 56 | 284,462 | 3,524 | 15.36 | % | 12.39 | |||||||||||||||||||||||
| 2028 | 21 | 66,064 | 993 | 5.30 | % | 15.03 | 30 | 160,459 | 1,847 | 8.05 | % | 11.51 | |||||||||||||||||||||||
| 2029 | 14 | 47,450 | 598 | 3.19 | % | 12.60 | 26 | 176,613 | 2,041 | 8.90 | % | 11.56 | |||||||||||||||||||||||
| 2030 | 11 | 23,138 | 373 | 1.99 | % | 16.12 | 13 | 50,290 | 900 | 3.92 | % | 17.90 | |||||||||||||||||||||||
| 2031 | 5 | 26,468 | 274 | 1.46 | % | 10.35 | 18 | 97,437 | 1,187 | 5.17 | % | 12.18 | |||||||||||||||||||||||
| 2032+ | 26 | 79,047 | 1,301 | 6.93 | % | 16.46 | 27 | 118,254 | 2,635 | 11.49 | % | 22.28 | |||||||||||||||||||||||
| Total | 517 | 1,818,136 | $ | 18,752 | 100.00 | % | $ | 13.98 | 373 | 1,643,855 | $ | 22,942 | 100.00 | % | $ | 13.96 | |||||||||||||||||||
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 21 | ||||
Leasing Summary
WHLR Leasing Renewals and New Leases
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Renewals(1): | |||||||||||||||||||||||
| Leases renewed with rate increase (sq feet) | 212,108 | 137,644 | 551,939 | 402,875 | |||||||||||||||||||
| Leases renewed with rate decrease (sq feet) | 3,744 | 1,400 | 33,548 | 67,743 | |||||||||||||||||||
| Leases renewed with no rate change (sq feet) | 1,800 | 60,049 | 219,511 | 148,542 | |||||||||||||||||||
| Total leases renewed (sq feet) | 217,652 | 199,093 | 804,998 | 619,160 | |||||||||||||||||||
| Leases renewed with rate increase (count) | 25 | 33 | 92 | 104 | |||||||||||||||||||
| Leases renewed with rate decrease (count) | 1 | 1 | 9 | 11 | |||||||||||||||||||
| Leases renewed with no rate change (count) | 1 | 2 | 25 | 23 | |||||||||||||||||||
| Total leases renewed (count) | 27 | 36 | 126 | 138 | |||||||||||||||||||
| Option exercised (count) | 5 | 6 | 16 | 22 | |||||||||||||||||||
| Weighted average on rate increases (per sq foot) | $ | 0.99 | $ | 0.97 | $ | 1.16 | $ | 0.85 | |||||||||||||||
| Weighted average on rate decreases (per sq foot) | $ | (1.51) | $ | (0.15) | $ | (1.94) | $ | (2.18) | |||||||||||||||
| Weighted average rate on all renewals (per sq foot) | $ | 0.94 | $ | 0.67 | $ | 0.71 | $ | 0.32 | |||||||||||||||
| Weighted average change over prior rates | 9.19 | % | 6.13 | % | 7.73 | % | 3.05 | % | |||||||||||||||
New Leases(1) (2): | |||||||||||||||||||||||
| New leases (sq feet) | 70,232 | 118,548 | 214,936 | 436,170 | |||||||||||||||||||
| New leases (count) | 14 | 14 | 65 | 76 | |||||||||||||||||||
| Weighted average rate (per sq foot) | $ | 9.78 | $ | 7.08 | $ | 11.88 | $ | 8.30 | |||||||||||||||
(1) Lease data presented is based on average rate per square foot over the renewed or new lease term.
(2) The Company does not include ground leases entered into for the purposes of new lease sq feet and weighted average rate (per sq foot) on new leases.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 22 | ||||
Leasing Summary (continued)
CDR Leasing Renewals and New Leases
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||
| 2022 | 2022 | ||||||||||
Renewals(1): | |||||||||||
| Leases renewed with rate increase (sq feet) | 81,904 | 124,875 | |||||||||
| Leases renewed with rate decrease (sq feet) | — | 29,223 | |||||||||
| Leases renewed with no rate change (sq feet) | 64,950 | 64,950 | |||||||||
| Total leases renewed (sq feet) | 146,854 | 219,048 | |||||||||
| Leases renewed with rate increase (count) | 4 | 12 | |||||||||
| Leases renewed with rate decrease (count) | — | 2 | |||||||||
| Leases renewed with no rate change (count) | 3 | 3 | |||||||||
| Total leases renewed (count) | 7 | 17 | |||||||||
| Option exercised (count) | 1 | 2 | |||||||||
| Weighted average on rate increases (per sq foot) | $ | 2.43 | $ | 1.91 | |||||||
| Weighted average on rate decreases (per sq foot) | $ | — | $ | (0.28) | |||||||
| Weighted average rate on all renewals (per sq foot) | $ | 1.36 | $ | 1.05 | |||||||
| Weighted average change over prior rates | 14.35 | % | 10.26 | % | |||||||
New Leases(1) (2): | |||||||||||
| New leases (sq feet) | 120,853 | 159,213 | |||||||||
| New leases (count) | 9 | 14 | |||||||||
| Weighted average rate (per sq foot) | $ | 11.04 | $ | 10.70 | |||||||
(1) Lease data presented is based on average rate per square foot over the renewed or new lease term.
(2) The Company does not include ground leases entered into for the purposes of new lease sq feet and weighted average rate (per sq foot) on new leases.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 23 | ||||
Definitions
Funds from Operations (FFO): an alternative measure of a REIT's operating performance, specifically as it relates to results of operations and liquidity. FFO is a measurement that is not in accordance with accounting principles generally accepted in the United States (GAAP). Wheeler computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and December 2018). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination costs), plus impairment of real estate related long-lived assets and after adjustments for unconsolidated partnerships and joint ventures.
Most industry analysts and equity REITs, including Wheeler, consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions and excluding depreciation, FFO is a helpful tool that can assist in the comparison of the operating performance of a company’s real estate between periods, or as compared to different companies. Management uses FFO as a supplemental measure to conduct and evaluate the business because there are certain limitations associated with using GAAP net income alone as the primary measure of our operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time, while historically real estate values have risen or fallen with market conditions.
Adjusted FFO (AFFO): 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, non-recurring expenses, legal settlements, acquisition costs and capital raise 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. The Company also presents Pro Forma AFFO which shows the impact of certain activities assuming they occurred at the beginning of the year.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): another widely-recognized non-GAAP financial measure that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors and lenders in understanding financial performance and providing a relevant basis for comparison among other companies, including REITs. While EBITDA should not be considered as a substitute for net income attributable to the Company’s common stockholders, net operating income, cash flow from operating activities, or other income or cash flow data prepared in accordance with GAAP, the Company believes that EBITDA may provide additional information with respect to the Company’s performance or ability to meet its future debt service requirements, capital expenditures and working capital requirements. The Company computes EBITDA by excluding interest expense, net loss attributable to noncontrolling interests, depreciation and amortization and impairment of long-lived assets and notes receivable, from income from continuing operations. The Company also presents Adjusted EBITDA which excludes items affecting the comparability of the periods presented, including but not limited to, costs associated with acquisitions and capital related activities.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 24 | ||||
Net Operating Income (NOI): The Company believes that NOI is a useful measure of the Company's property operating performance. The Company defines NOI as property revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, interest expense, interest income, provision for income taxes, gain or loss on sale or capital expenditures and leasing costs, it provides a performance measure, that when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company's results, margins and returns. NOI should not be viewed as a measure of the Company's overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, impairment of impairment of long-lived assets, involuntary conversion, interest expense, interest income, provision for income taxes, market lease amortization, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company's NOI may not be comparable to that of other REITs.
WHLR | Financial & Operating Data | as of 12/31/2022 unless otherwise stated | 25 | ||||