WHLR 8-K
Wheeler Real Estate Investment Trust, Inc. (WHLR)
8-K
2021-08-05
For: 2021-08-05
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Added on
April 05, 2026
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): August 5, 2021
(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 August 5, 2021, Wheeler Real Estate Investment Trust, Inc. (the “Company”), issued a press release announcing its financial results for the three and six months ended June 30, 2021. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
In connection with this press release, on August 5, 2021, the Company posted certain supplemental information regarding the Company’s operations for the three and six months ended June 30, 2021 on its website, www.whlr.us. A copy of the supplemental information is attached as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this Current Report on Form 8-K, including the exhibits hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.
Item 9.01(d) Financial Statements and Exhibits.
EXHIBIT INDEX
| Number | Description of Exhibit | |||||||||||||
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| WHEELER REAL ESTATE INVESTMENT TRUST, INC. | ||||||||
| By: | /s/ M. Andrew Franklin | |||||||
| Name: M. Andrew Franklin | ||||||||
| Title: Interim Chief Executive Officer | ||||||||
Dated: August 5, 2021
Exhibit 99.1
FOR IMMEDIATE RELEASE
WHEELER REAL ESTATE INVESTMENT TRUST, INC.
ANNOUNCES THE RELEASE OF ITS
SECOND QUARTER 2021 FINANCIAL AND OPERATING RESULTS
Virginia Beach, VA – August 5, 2021 – 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 three and six months ended June 30, 2021 on Form 10-Q. In conjunction with this announcement, the Company has posted to its website supplemental information regarding WHLR's financial and operating results for the three and six months ended June 30, 2021. This information, as well as additional information on WHLR and its business activities, can be accessed via the Investor Relations page at www.whlr.us.
ABOUT WHEELER REAL ESTATE INVESTMENT TRUST, INC.
Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully integrated, self-managed commercial real estate investment trust (REIT) focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers. Please visit the Company's website for more information. Interested parties may access the website through the following link www.whlr.us.
Mary Jensen
Investor Relations
Office: (757) 627-9088
Cell: (310) 526-1707
Exhibit 99.2
Financial and Operating Results
For the three and six months ended June 30, 2021
| 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. 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: adverse economic or real estate developments in the retail industry or the markets in which Wheeler Real Estate Investment Trust, Inc. (the "Company" or "WHLR") operates; the extent to which COVID-19 continues to impact the economy; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; the Company's failure to obtain necessary outside financing on favorable terms or at all; the Company's inability to successfully acquire, sell, or operate properties; and the Company's failure to qualify or maintain its status as a REIT. When used in this presentation, the words "continue," "may," "approximately," "potentially," or similar expressions, are intended to identify forward-looking statements.
The forward-looking statements are based on management's beliefs, assumption and expectation 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 | 2 | ||||
Company Overview
Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR) 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. 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 and Series D cumulative convertible preferred stock trade publicly on NASDAQ under the symbols “WHLR”, “WHLRP” and "WHLRD", respectively.
| Corporate Headquarters | ||||||||
| Wheeler Real Estate Investment Trust, Inc. | ||||||||
| Riversedge North | ||||||||
| 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 - Interim CEO | ||||||||
| Crystal Plum - CFO | ||||||||
| Board of Directors | ||||||||
Stefani D. Carter (Chair) | Michelle D. Bergman | |||||||
Saverio M. Flemma | Paula J. Poskon | |||||||
E. J. Borrack | Joseph D. Stilwell | |||||||
Kerry G. Campbell | ||||||||
| Investor Relations Representative | ||||||||
| Mary Jensen - IRRealized, LLC [email protected] Office: (757) 627-9088 Cell: (310) 526-1707 | ||||||||
| Transfer Agent and Registrar | ||||||||
| Computershare Trust Company, N.A. 250 Royall Street Canton, MA 02021 www.computershare.com | ||||||||
WHLR | Financial & Operating Data | 3 | ||||
Financial and Portfolio Overview
For the Three Months Ended June 30, 2021
Financial Results | |||||
| Net loss attributable to Wheeler REIT common stockholders (in 000s) | $ | (5,667) | |||
| Net loss per basic and diluted shares | $ | (0.58) | |||
Funds from operations available to common stockholders and Operating Partnership (OP) unitholders (FFO) (in 000s) (1) | $ | (332) | |||
| FFO per common share and OP unit | $ | (0.03) | |||
Adjusted FFO (AFFO) (in 000s) (1) | $ | 1,109 | |||
| AFFO per common share and OP unit | $ | 0.11 | |||
Assets and Leverage | |||||
| Investment Properties, net of $63.87 million accumulated depreciation (in 000s) | $ | 387,179 | |||
| Cash and Cash Equivalents (in 000s) | $ | 10,850 | |||
| Total Assets (in 000s) | $ | 478,145 | |||
Debt to Total Assets(3) | 74.64 | % | |||
| Debt to Gross Asset Value | 61.78 | % | |||
Market Capitalization | |||||
| Common shares outstanding | 9,710,414 | ||||
| OP units outstanding | 217,889 | ||||
| Total common shares and OP units | 9,928,303 | ||||
| Shares Outstanding at June 30, 2021 | Second Quarter stock price range | Stock price as of June 30, 2021 | |||||||||||||||
| Common Stock | 9,710,414 | $3.55 - $5.44 | $ | 5.06 | |||||||||||||
| Series B preferred shares | 1,875,748 | $11.00 - $15.37 | $ | 15.00 | |||||||||||||
| Series D preferred shares | 3,038,683 | $17.80 - $18.75 | $ | 17.94 | |||||||||||||
Total debt (in 000s)(3) | $ | 356,891 | |||
| Common Stock market capitalization (as of June 30, 2021 closing stock price, in 000s) | $ | 49,135 | |||
Portfolio Summary | |||||
| Total Leasable Area (GLA) in sq. ft. | 5,511,881 | ||||
| Occupancy Rate | 90.0 | % | |||
Leased Rate (2) | 91.9 | % | |||
| Annualized Base Rent (in 000s) | $ | 47,285 | |||
| Total number of leases signed or renewed during the second quarter of 2021 | 44 | ||||
| Total sq. ft. of leases signed or renewed during the second quarter of 2021 | 220,438 | ||||
(1) See page 21 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) Reflects leases executed through July 2, 2021 that commence subsequent to the end of current period.
(3) Includes debt associated with assets held for sale.
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 4 | ||||
Financial and Operating Results
Today, WHLR reported its financial and operating results for the three and six months ended June 30, 2021.
2021 SECOND QUARTER HIGHLIGHTS
(all comparisons to the same prior year period unless otherwise noted)
FINANCIAL
•Net loss attributable to WHLR's common stock, $0.01 par value per share ("Common Stock") stockholders of $5.7 million, or ($0.58) per share, as compared to $3.4 million, or ($0.35) per share.
•Funds from operations ("FFO") of ($332 thousand), or ($0.03) 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 $1.2 million, or $0.12 per share.
•Adjusted Funds from Operations ("AFFO") of $0.11 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P., as compared to $0.08 per share.
OPERATIONS
•Total revenue increased by 2.12% or $321 thousand primarily a result of same store.
•Total operating expenses increased by 13.84% or $1.5 million primarily a result of an increase of $2.2 million in impairment of assets held for sale, partially offset by a decrease of $807 thousand in depreciation and amortization.
LEASING
•The Company's real estate portfolio was 91.1% leased as of June 30, 2021, a 100 basis point improvement over June 30, 2020.
•The Company's real estate portfolio was 90.0% occupied as of June 30, 2021, a 110 basis point increase from 88.9% at June 30, 2020.
•Quarter-To-Date Leasing Activity
•Executed 26 lease renewals totaling 106,573 square feet at a weighted-average decrease of $0.56 per square foot, representing a decrease of 5.37% over in-place rental rates.
•The weighted average decrease of 5.37% during the three months ended June 30, 2021 is primarily driven by the renewal of a long standing indoor trampoline park tenant at a $2.00 per square foot decrease to their previous rate which took effect in March 2021. The renewal rate is consistent with the rate prior to the March rent escalation. Additionally, the Company was able to secure an additional year of term from this anchor with the lease now ending in 2027.
•Signed 18 new leases totaling 113,865 square feet with a weighted-average rental rate of $8.30 per square foot, including 2 anchors representing 61,001 square feet.
•The Company’s gross leasable area ("GLA"), which is subject to leases that expire over the next six months and includes month-to-month leases, decreased to approximately 2.87% at June 30, 2021, compared to 6.00% at June 30, 2020. At June 30, 2021, 20.93% of this expiring GLA is subject to renewal options (a lease expiration schedule can be found on page 18 and provides additional details on the Company's leases).
•As of June 30, 2021, the Company signed leases representing $720 thousand of annualized base rent ("ABR"). Rent will commence on these leases over the next ten months.
SAME STORE
•Same store Net Operating Income ("NOI") increased by 4.48% and by 6.27% on a cash basis. Same store results were impacted by a 4.12% increase in revenue primarily due to a decrease in provision for credit losses a result of the Company's proactive tenant outreach during the pandemic and collection initiatives, which included accepting credit card payments and an increase in reimbursement revenue primarily due to rate increases in insurance and real estate tax expenses. Additionally, same store property expenses increased by 3.30% primarily driven by increases in grounds and landscaping expenses.
CAPITAL MARKETS
•Recognized a non-operating loss of $1.2 million due to the change in fair market value of the warrant liability, utilizing the Monte Carlo simulation model with the largest impact in the valuation attributed to the change in the Company’s stock price at June 30, 2021 since the issuance of each warrant.
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 5 | ||||
•At June 30, 2021, assets held for sale, total $8.8 million, and include Columbia Fire Station, Surrey Plaza, two outparcels at Rivergate Shopping Center and a 1.28 acre land parcel in Moyock, North Carolina, as the Company has committed to a plan to sell each property.
•Recognized $2.2 million in impairment expense on Columbia Fire Station, which is currently held for sale.
2021 YEAR-TO-DATE HIGHLIGHTS
(all comparisons to the same prior year period unless otherwise noted)
FINANCIAL
•Net loss attributable to WHLR's common stock, $0.01 par value per share ("Common Stock") stockholders of $8.7 million, or ($0.89) per share, as compared to $8.9 million, or ($0.92) per share.
•Funds from operations ("FFO") of ($4.0 million), or ($0.40) 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 $1.3 million, or $0.13 per share.
•Adjusted Funds from Operations ("AFFO") of $0.12 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P., as compared to $0.16 per share.
OPERATIONS
•Total revenue decreased by 1.71% or $525 thousand primarily a result of same store,
•Total operating expenses decreased by 1.5% or $340 thousand resulting from decreases in depreciation and amortization as well as corporate general and administrative expenses. This decrease was partially offset by impairments on assets held for sale and increased property operation costs.
LEASING
•Year-To-Date Leasing Activity
•Executed 66 lease renewals totaling 294,578 square feet at a weighted-average increase of $0.04 per square foot, representing an increase of 0.39% over in-place rental rates.
•Signed 37 new leases totaling 226,459 square feet with a weighted-average rental rate of $8.27 per square foot, including 4 anchors representing 129,087 square feet.
SAME STORE
•Same store Net Operating Income ("NOI") decreased by 2.65% and by 1.62% on a cash basis. Same store results were impacted by a 0.76% decrease in revenue primarily due to 2 anchor vacancies, which additionally triggered co-tenancy provisions and lease modifications related to tenant bankruptcies. One of the vacant anchors was backfilled and rent commenced in the second quarter of 2021. Further, there was a decrease in above (below) market lease amortization related to leases becoming fully amortized. Additionally, same store property expenses increased by 3.63% primarily driven by increases in grounds and landscaping, insurance and real estate taxes.
CAPITAL MARKETS
•The Company paid in full the $25.0 million, 13.50% Powerscourt Financing Agreement with proceeds from the $35.0 million, 8.00% financing agreement with Wilmington Savings Fund Society, FSB, as administrative agent and collateral agent (the “Wilmington Financing Agreement”) providing a go forward annual interest savings of $575 thousand. The Wilmington Financing Agreement matures on March 12, 2026. The Powerscourt Warrant Agreement and Powerscourt Registration Rights Agreement remain. In conjunction with the Wilmington Financing Agreement, the Company issued to the underlying holders, warrants to purchase an aggregate of 1,061,719 shares of the Company’s Common Stock at various exercise prices. This is recognized as a warrant liability with an initial fair value of $2.0 million.
•Recognized a non-operating loss of $1.6 million due to the change in fair market value of the warrant liability, utilizing the Monte Carlo simulation model with the largest impact in the valuation attributed to the change in the Company's stock price at June 30, 2021 since the issuance of each warrant.
•Loans payable increased $3.0 million or 0.84% and were impacted by:
•$10.0 million net increase after the Wilmington Financing Agreement was used to pay off the Powerscourt Financing Agreement; and partially offset by
•$3.2 million paydown with the sale of Berkley Shopping Center;
•$500 thousand one time principal payment on the Columbia Fire Station loan;
•$225 thousand paydown on the JANAF Bravo loan upon refinancing, new loan matures in 2024 and
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 6 | ||||
•$3.0 million monthly principal payments.
•In conjunction with the Berkley Shopping Center loan paydown the Company paid $687 thousand in defeasance.
OTHER
•The Company recognized non-operating other income of $552 thousand in Paycheck Protection Program Promissory Note forgiveness.
BALANCE SHEET
•Cash and cash equivalents totaled $10.9 million, compared to $7.7 million at December 31, 2020.
•Restricted cash totaled $33.3 million, compared to $35.1 million at December 31, 2020. These funds are held in lender reserves primarily for the purpose of tenant improvements, lease commissions, real estate taxes, insurance expenses and loan proceeds to be used for redemption of Series D Preferred.
•Debt totaled $356.9 million (including debt associated with assets held for sale), compared to $353.9 million at December 31, 2020.
•WHLR's weighted-average interest rate was 5.02% with a term of 3.47 years (including debt associated with assets held for sale), compared to 5.31% with a term of 3.56 years at December 31, 2020. The weighted-average interest rate decrease is the result of the Powerscourt Financing Agreement payoff replacing its 13.50% interest rate with the Wilmington Financing Agreement's interest rate of 8.00%.
•Net investment properties totaled $395.7 million (including assets held for sale), compared to $405.3 million as of December 31, 2020.
DIVIDENDS
•The Company had accumulated undeclared dividends since the fourth quarter of 2018 of approximately $33.8 million to holders of shares of its Series A Preferred Stock, Series B Preferred Stock, and Series D Preferred Stock. Approximately $3.1 million and $6.3 million are attributable to the three and six months ended June 30, 2021, respectively.
TENDER OFFER
•On March 12, 2021, through a "modified Dutch auction" tender offer the Company accepted for purchase 387,097 shares of Series D Preferred at a price of $15.50 per share, for an aggregate cost of $6.0 million, excluding fees and expenses.
•On May 15, 2021, through a "modified Dutch auction" tender offer the Company accepted for purchase 103,513 shares of Series D Preferred at a price of $18.00 per share, for an aggregate cost of $1.9 million, excluding fees and expenses.
SUBSEQUENT EVENTS
•On July 9, 2021, the Company sold its 1.28 acre land parcel in Moyock, North Carolina for a contract price of $250 thousand.
•On July 21, 2021, the Company paid in full the $3.4 million Columbia Fire Station Loan.
•On July 22, 2021, the Company commenced its rights offering to eligible stockholders for the purchase of up to $30.0 million in aggregate principal amount of our 7.00% senior subordinated convertible notes due 2031 ("Notes"). Pursuant to the rights offering, holders of common stock (each, a “holder” and collectively, the “holders”) as of 5:00 p.m., New York City time, on June 1, 2021 (the “record date”) received non-transferable subscription rights (the “rights”) to purchase Notes. Each holder received one (1) right for every eight (8) shares of common stock owned of record as of the record date. Each right allows the holder thereof to subscribe for $25.00 principal amount of Notes (the “basic subscription privilege”). In addition, rights holders who fully exercise their basic subscription privilege will be entitled to subscribe for additional Notes that remain unsubscribed as a result of any unexercised basic subscription privileges (the “over-subscription privilege”). The rights offering expires at 5:00 p.m., New York City time, on August 13, 2021, unless extended or earlier terminated by the Company.
•Effective July 5, 2021, Daniel Khoshaba resigned as the President and Chief Executive Officer of the Company and as a member of the Board and the Executive Committee of our Board of Directors, for personal reasons. Upon Mr. Khoshaba’s cessation of employment with the Company, all of his rights under that certain
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 7 | ||||
Stock Appreciation Rights Agreement, dated August 4, 2020, by and between Mr. Khoshaba and the Company (the “SAR Agreement”), were forfeited for no consideration.
DISPOSITIONS
•On March 25, 2021, the Company sold Berkley Shopping Center and Berkley Land Parcel for $4.2 million, generating a gain of $176 thousand and net proceeds of $3.9 million.
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 6/30/2021 unless otherwise stated | 8 | ||||
Consolidated Balance Sheets
$ in 000s
| June 30, 2021 | December 31, 2020 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS: | |||||||||||
| Investment properties, net | $ | 387,179 | $ | 392,664 | |||||||
| Cash and cash equivalents | 10,850 | 7,660 | |||||||||
| Restricted cash | 33,302 | 35,108 | |||||||||
| Rents and other tenant receivables, net | 7,835 | 9,153 | |||||||||
| Assets held for sale | 8,846 | 13,072 | |||||||||
| Above market lease intangibles, net | 2,954 | 3,547 | |||||||||
| Operating lease right-of-use assets | 12,601 | 12,745 | |||||||||
| Deferred costs and other assets, net | 14,578 | 15,430 | |||||||||
| Total Assets | $ | 478,145 | $ | 489,379 | |||||||
| LIABILITIES: | |||||||||||
| Loans payable, net | $ | 335,255 | $ | 334,266 | |||||||
| Liabilities associated with assets held for sale | 10,911 | 13,124 | |||||||||
| Below market lease intangibles, net | 3,918 | 4,554 | |||||||||
| Warrant liability | 4,193 | 594 | |||||||||
| Operating lease liabilities | 13,121 | 13,200 | |||||||||
| Accounts payable, accrued expenses and other liabilities | 13,771 | 11,229 | |||||||||
| Total Liabilities | 381,169 | 376,967 | |||||||||
| Series D Cumulative Convertible Preferred Stock (no par value, 4,000,000 shares authorized, 3,038,683 and 3,529,293 shares issued and outstanding, respectively; $98.05 million and $109.13 million aggregate liquidation value, respectively) | 86,606 | 95,563 | |||||||||
| 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) | 41,218 | 41,174 | |||||||||
| Common Stock ($0.01 par value, 18,750,000 shares authorized, 9,710,414 and 9,703,874 shares issued and outstanding, respectively) | 97 | 97 | |||||||||
| Additional paid-in capital | 234,119 | 234,061 | |||||||||
| Accumulated deficit | (267,405) | (260,867) | |||||||||
| Total Stockholders’ Equity | 8,482 | 14,918 | |||||||||
| Noncontrolling interests | 1,888 | 1,931 | |||||||||
| Total Equity | 10,370 | 16,849 | |||||||||
| Total Liabilities and Equity | $ | 478,145 | $ | 489,379 | |||||||
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 9 | ||||
Consolidated Statements of Operations
$ in 000s
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| REVENUE: | |||||||||||||||||||||||
| Rental revenues | $ | 15,290 | $ | 14,809 | $ | 29,946 | $ | 30,164 | |||||||||||||||
| Other revenues | 200 | 360 | 272 | 579 | |||||||||||||||||||
| Total Revenue | 15,490 | 15,169 | 30,218 | 30,743 | |||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||
| Property operations | 4,660 | 4,573 | 9,544 | 9,296 | |||||||||||||||||||
| Depreciation and amortization | 3,639 | 4,446 | 7,355 | 9,245 | |||||||||||||||||||
| Impairment of assets held for sale | 2,200 | — | 2,200 | 600 | |||||||||||||||||||
| Corporate general & administrative | 1,607 | 1,615 | 3,189 | 3,487 | |||||||||||||||||||
| Total Operating Expenses | 12,106 | 10,634 | 22,288 | 22,628 | |||||||||||||||||||
| Gain (loss) on disposal of properties | — | — | 176 | (26) | |||||||||||||||||||
| Operating Income | 3,384 | 4,535 | 8,106 | 8,089 | |||||||||||||||||||
| Interest expense | (5,215) | (4,273) | (14,176) | (8,672) | |||||||||||||||||||
| Net changes in fair value of warrants | (1,234) | — | (1,581) | — | |||||||||||||||||||
| Other income | — | — | 552 | — | |||||||||||||||||||
| Other expense | — | — | — | (1,024) | |||||||||||||||||||
| Net (Loss) Income Before Income Taxes | (3,065) | 262 | (7,099) | (1,607) | |||||||||||||||||||
| Income tax (expense) benefit | (2) | 6 | (2) | (2) | |||||||||||||||||||
| Net (Loss) Income | (3,067) | 268 | (7,101) | (1,609) | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | — | 14 | 15 | 5 | |||||||||||||||||||
| Net (Loss) Income Attributable to Wheeler REIT | (3,067) | 254 | (7,116) | (1,614) | |||||||||||||||||||
| Preferred Stock dividends - undeclared | (3,251) | (3,657) | (6,592) | (7,314) | |||||||||||||||||||
| Deemed contribution related to preferred stock redemption | 651 | — | 5,040 | — | |||||||||||||||||||
| Net Loss Attributable to Wheeler REIT Common Stockholders | $ | (5,667) | $ | (3,403) | $ | (8,668) | $ | (8,928) | |||||||||||||||
| Loss per share: | |||||||||||||||||||||||
| Basic and Diluted | $ | (0.58) | $ | (0.35) | $ | (0.89) | $ | (0.92) | |||||||||||||||
| Weighted-average number of shares: | |||||||||||||||||||||||
| Basic and Diluted | 9,707,711 | 9,695,651 | 9,706,183 | 9,694,967 | |||||||||||||||||||
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 10 | ||||
Reconciliation of Non-GAAP Measures
FFO and AFFO (1)
$ in 000s
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Net (Loss) Income | $ | (3,067) | $ | 268 | $ | (7,101) | $ | (1,609) | ||||||||||||||||||
| Depreciation and amortization of real estate assets | 3,639 | 4,446 | 7,355 | 9,245 | ||||||||||||||||||||||
| (Gain) loss on disposal of properties | — | — | (176) | 26 | ||||||||||||||||||||||
| Impairment of assets held for sale | 2,200 | — | 2,200 | 600 | ||||||||||||||||||||||
| FFO | 2,772 | 4,714 | 2,278 | 8,262 | ||||||||||||||||||||||
| Preferred stock dividends - undeclared | (3,251) | (3,657) | (6,592) | (7,314) | ||||||||||||||||||||||
| Preferred stock accretion adjustments | 147 | 171 | 309 | 341 | ||||||||||||||||||||||
| FFO available to common stockholders and common unitholders | (332) | 1,228 | (4,005) | 1,289 | ||||||||||||||||||||||
| Acquisition and development costs | — | — | — | 1 | ||||||||||||||||||||||
| Capital related costs | 156 | 30 | 284 | 34 | ||||||||||||||||||||||
Other non-recurring and non-cash (income) expenses (2) | 11 | 49 | 156 | 1,073 | ||||||||||||||||||||||
| Net changes in fair value of warrants | 1,234 | — | 1,581 | — | ||||||||||||||||||||||
| Straight-line rental revenue, net straight-line expense | (376) | (401) | (590) | (406) | ||||||||||||||||||||||
| Loan cost amortization | 674 | 252 | 4,316 | 562 | ||||||||||||||||||||||
| Above (below) market lease amortization | 17 | (100) | 5 | (373) | ||||||||||||||||||||||
| Recurring capital expenditures and tenant improvement reserves | (275) | (278) | (551) | (557) | ||||||||||||||||||||||
| AFFO | $ | 1,109 | $ | 780 | $ | 1,196 | $ | 1,623 | ||||||||||||||||||
| Weighted Average Common Shares | 9,707,711 | 9,695,651 | 9,706,183 | 9,694,967 | ||||||||||||||||||||||
| Weighted Average Common Units | 220,592 | 232,652 | 222,120 | 233,336 | ||||||||||||||||||||||
| Total Common Shares and Units | 9,928,303 | 9,928,303 | 9,928,303 | 9,928,303 | ||||||||||||||||||||||
| FFO per Common Share and Common Units | $ | (0.03) | $ | 0.12 | $ | (0.40) | $ | 0.13 | ||||||||||||||||||
| AFFO per Common Share and Common Units | $ | 0.11 | $ | 0.08 | $ | 0.12 | $ | 0.16 | ||||||||||||||||||
(1) See page 21 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 Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021.
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 11 | ||||
Reconciliation of Non-GAAP Measures (continued)
Property Net Operating Income (1)
$ in 000s
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| Same Store | Non-same Store | Total | |||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||||||||||||||||
| Net (Loss) Income | $ | (3,057) | $ | 323 | $ | (10) | $ | (55) | $ | (3,067) | $ | 268 | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 2 | (6) | — | — | 2 | (6) | |||||||||||||||||||||||||||||
| Net changes in fair value of warrants | 1,234 | — | — | — | 1,234 | — | |||||||||||||||||||||||||||||
| Interest expense | 5,215 | 4,239 | — | 34 | 5,215 | 4,273 | |||||||||||||||||||||||||||||
| Corporate general & administrative | 1,603 | 1,610 | 4 | 5 | 1,607 | 1,615 | |||||||||||||||||||||||||||||
| Impairment of assets held for sale | 2,200 | — | — | — | 2,200 | — | |||||||||||||||||||||||||||||
| Depreciation and amortization | 3,639 | 4,418 | — | 28 | 3,639 | 4,446 | |||||||||||||||||||||||||||||
| Other non-property revenue | (9) | (221) | — | — | (9) | (221) | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 10,827 | $ | 10,363 | $ | (6) | $ | 12 | $ | 10,821 | $ | 10,375 | |||||||||||||||||||||||
| Property revenues | $ | 15,485 | $ | 14,872 | $ | (4) | $ | 76 | $ | 15,481 | $ | 14,948 | |||||||||||||||||||||||
| Property expenses | 4,658 | 4,509 | 2 | 64 | 4,660 | 4,573 | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 10,827 | $ | 10,363 | $ | (6) | $ | 12 | $ | 10,821 | $ | 10,375 | |||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| Same Store | Non-same Store | Total | |||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||||||||||||||||
| Net Loss | $ | (6,603) | $ | (1,479) | $ | (498) | $ | (130) | $ | (7,101) | $ | (1,609) | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Income tax expense | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||||||||||||||
| Other expense | — | 1,024 | — | — | — | 1,024 | |||||||||||||||||||||||||||||
| Other income | (552) | — | — | — | (552) | — | |||||||||||||||||||||||||||||
| Net changes in fair value of warrants | 1,581 | — | — | — | 1,581 | — | |||||||||||||||||||||||||||||
| Interest expense | 13,468 | 8,605 | 708 | 67 | 14,176 | 8,672 | |||||||||||||||||||||||||||||
| (Gain) loss on disposal of properties | — | — | (176) | 26 | (176) | 26 | |||||||||||||||||||||||||||||
| Corporate general & administrative | 3,182 | 3,478 | 7 | 9 | 3,189 | 3,487 | |||||||||||||||||||||||||||||
| Impairment of assets held for sale | 2,200 | 600 | — | — | 2,200 | 600 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 7,355 | 9,185 | — | 60 | 7,355 | 9,245 | |||||||||||||||||||||||||||||
| Other non-property revenue | (22) | (243) | — | — | (22) | (243) | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 20,611 | $ | 21,172 | $ | 41 | $ | 32 | $ | 20,652 | $ | 21,204 | |||||||||||||||||||||||
| Property revenues | $ | 30,092 | $ | 30,321 | $ | 104 | $ | 179 | $ | 30,196 | $ | 30,500 | |||||||||||||||||||||||
| Property expenses | 9,481 | 9,149 | 63 | 147 | 9,544 | 9,296 | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 20,611 | $ | 21,172 | $ | 41 | $ | 32 | $ | 20,652 | $ | 21,204 | |||||||||||||||||||||||
(1) See page 22 for the Company's definition of this non-GAAP measurement and reasons for using it.
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 12 | ||||
Reconciliation of Non-GAAP Measures (continued)
EBITDA (4)
$ in 000s
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net (Loss) Income | $ | (3,067) | $ | 268 | $ | (7,101) | $ | (1,609) | ||||||||||||||||||
Add back: | Depreciation and amortization (1) | 3,656 | 4,346 | 7,360 | 8,872 | |||||||||||||||||||||
Interest Expense (2) | 5,215 | 4,273 | 14,176 | 8,672 | ||||||||||||||||||||||
Income tax (benefit) expense | 2 | (6) | 2 | 2 | ||||||||||||||||||||||
EBITDA | 5,806 | 8,881 | 14,437 | 15,937 | ||||||||||||||||||||||
| Adjustments for items affecting comparability: | ||||||||||||||||||||||||||
Acquisition and development costs | — | — | — | 1 | ||||||||||||||||||||||
Capital related costs | 156 | 30 | 284 | 34 | ||||||||||||||||||||||
| Change in fair value of warrants | 1,234 | — | 1,581 | — | ||||||||||||||||||||||
Other non-recurring and non-cash expenses (3) | — | 49 | (552) | 1,073 | ||||||||||||||||||||||
Impairment of assets held for sale | 2,200 | — | 2,200 | 600 | ||||||||||||||||||||||
(Gain) loss on disposal of properties | — | — | (176) | 26 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 9,396 | $ | 8,960 | $ | 17,774 | $ | 17,671 | ||||||||||||||||||
(1) Includes above (below) market lease amortization.
(2) Includes loan cost amortization and prepayment penalty.
(3) Other non-recurring expenses are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Quarterly Report on Form 10-Q for the period ended June 30, 2021.
(4) See page 21 for the Company's definition of this non-GAAP measurement and reasons for using it.
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 13 | ||||
Debt Summary
$ in 000s
Loans Payable: $356.89 million
Weighted Average Interest Rate: 5.02%
| Property/Description | Monthly Payment | Interest Rate | Maturity | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
| Columbia Fire Station | Interest only | 14.00 | % | July 2021 | $ | 3,363 | $ | 3,893 | ||||||||||||||||||||||||
First National Bank (7) (8) | $ | 24,656 | LIBOR + 350 basis points | September 2021 | 918 | 1,045 | ||||||||||||||||||||||||||
Lumber River (8) | $ | 10,723 | LIBOR + 350 basis points | October 2021 | 1,332 | 1,367 | ||||||||||||||||||||||||||
Rivergate (8) | $ | 112,357 | Prime Rate -25 basis points | October 2021 | 20,853 | 21,164 | ||||||||||||||||||||||||||
| Litchfield Market Village | $ | 46,057 | 5.50 | % | November 2022 | 7,383 | 7,418 | |||||||||||||||||||||||||
| Twin City Commons | $ | 17,827 | 4.86 | % | January 2023 | 2,879 | 2,915 | |||||||||||||||||||||||||
| Walnut Hill Plaza | $ | 26,850 | 5.50 | % | March 2023 | 3,217 | 3,287 | |||||||||||||||||||||||||
Powerscourt Financing Agreement (6) | Interest only | 13.50 | % | March 2023 | — | 25,000 | ||||||||||||||||||||||||||
| New Market | $ | 48,747 | 5.65 | % | June 2023 | 6,401 | 6,508 | |||||||||||||||||||||||||
Benefit Street Note (3) | $ | 53,185 | 5.71 | % | June 2023 | 7,031 | 7,145 | |||||||||||||||||||||||||
Deutsche Bank Note (2) | $ | 33,340 | 5.71 | % | July 2023 | 5,528 | 5,567 | |||||||||||||||||||||||||
| JANAF | $ | 333,159 | 4.49 | % | July 2023 | 47,977 | 48,875 | |||||||||||||||||||||||||
| Tampa Festival | $ | 50,797 | 5.56 | % | September 2023 | 7,837 | 7,920 | |||||||||||||||||||||||||
| Forrest Gallery | $ | 50,973 | 5.40 | % | September 2023 | 8,144 | 8,226 | |||||||||||||||||||||||||
South Carolina Food Lions Note (5) | $ | 68,320 | 5.25 | % | January 2024 | 11,363 | 11,473 | |||||||||||||||||||||||||
| JANAF Bravo | $ | 35,076 | 5.00 | % | May 2024 | 5,995 | 6,263 | |||||||||||||||||||||||||
| Cypress Shopping Center | $ | 34,360 | 4.70 | % | July 2024 | 6,112 | 6,163 | |||||||||||||||||||||||||
| Port Crossing | $ | 34,788 | 4.84 | % | August 2024 | 5,844 | 5,909 | |||||||||||||||||||||||||
| Freeway Junction | $ | 41,798 | 4.60 | % | September 2024 | 7,507 | 7,582 | |||||||||||||||||||||||||
| Harrodsburg Marketplace | $ | 19,112 | 4.55 | % | September 2024 | 3,305 | 3,343 | |||||||||||||||||||||||||
| Bryan Station | $ | 23,489 | 4.52 | % | November 2024 | 4,269 | 4,312 | |||||||||||||||||||||||||
| Crockett Square | Interest only | 4.47 | % | December 2024 | 6,338 | 6,338 | ||||||||||||||||||||||||||
| Pierpont Centre | $ | 39,435 | 4.15 | % | February 2025 | 7,931 | 8,001 | |||||||||||||||||||||||||
| Shoppes at Myrtle Park | $ | 33,180 | 4.45 | % | February 2025 | 5,825 | 5,892 | |||||||||||||||||||||||||
| Folly Road | $ | 41,482 | 4.65 | % | March 2025 | 7,143 | 7,223 | |||||||||||||||||||||||||
| Alex City Marketplace | Interest only | 3.95 | % | April 2025 | 5,750 | 5,750 | ||||||||||||||||||||||||||
| Butler Square | Interest only | 3.90 | % | May 2025 | 5,640 | 5,640 | ||||||||||||||||||||||||||
| 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 (4) | 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 | 4,518 | 4,553 | |||||||||||||||||||||||||
| JANAF BJ's | $ | 29,964 | 4.95 | % | January 2026 | 4,785 | 4,844 | |||||||||||||||||||||||||
| Tuckernuck | $ | 32,202 | 5.00 | % | March 2026 | 5,118 | 5,193 | |||||||||||||||||||||||||
Wilmington Financing Agreement (6) | Interest only | 8.00 | % | March 2026 | 35,000 | — | ||||||||||||||||||||||||||
| Chesapeake Square | $ | 23,857 | 4.70 | % | August 2026 | 4,238 | 4,279 | |||||||||||||||||||||||||
| Berkley/Sangaree/Tri-County | Interest only | 4.78 | % | December 2026 | 6,176 | 9,400 | ||||||||||||||||||||||||||
| Riverbridge | Interest only | 4.48 | % | December 2026 | 4,000 | 4,000 | ||||||||||||||||||||||||||
| Franklin Village | $ | 45,336 | 4.93 | % | January 2027 | 8,341 | 8,404 | |||||||||||||||||||||||||
| Village of Martinsville | $ | 89,664 | 4.28 | % | July 2029 | 15,785 | 15,979 | |||||||||||||||||||||||||
| Laburnum Square | Interest only | 4.28 | % | September 2029 | 7,665 | 7,665 | ||||||||||||||||||||||||||
Total Principal Balance (1) | 356,891 | 353,916 | ||||||||||||||||||||||||||||||
Unamortized debt issuance cost (1) | (10,955) | (6,812) | ||||||||||||||||||||||||||||||
| Total Loans Payable, including assets held for sale | 345,936 | 347,104 | ||||||||||||||||||||||||||||||
| Less loans payable on assets held for sale, net loan amortization costs | 10,681 | 12,838 | ||||||||||||||||||||||||||||||
| Total Loans Payable, net | $ | 335,255 | $ | 334,266 | ||||||||||||||||||||||||||||
(1) Includes loans payable on assets held for sale.
(2) Collateralized by LaGrange Marketplace, Ridgeland and Georgetown.
(3) Collateralized by Ladson Crossing, Lake Greenwood Crossing and South Park.
(4) Collateralized by Cardinal Plaza, Franklinton Square, and Nashville Commons.
(5) Collateralized by Clover Plaza, South Square, St. George, Waterway Plaza and Westland Square.
(6) Collateralized by Darien Shopping Center, Devine Street, Lake Murray, Moncks Corner and South Lake.
(7) Collateralized by Surrey Plaza and Amscot Building.
(8) Certain loans bear interest at a variable interest rate equal to LIBOR or another index rate, subject to a floor, in each case plus or minus a specified margin.
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 14 | ||||
Debt Summary (continued)
Total Debt
$ in 000s
| Scheduled principal repayments and maturities by year | Amount | % Total Principal Payments and Maturities | ||||||||||||
| For the remaining six months ending December 31, 2021 | $ | 29,124 | 8.16 | % | ||||||||||
| December 31, 2022 | 12,798 | 3.59 | % | |||||||||||
| December 31, 2023 | 87,099 | 24.40 | % | |||||||||||
| December 31, 2024 | 50,044 | 14.02 | % | |||||||||||
| December 31, 2025 | 91,530 | 25.65 | % | |||||||||||
| December 31, 2026 | 58,026 | 16.26 | % | |||||||||||
| Thereafter | 28,270 | 7.92 | % | |||||||||||
| Total principal repayments and debt maturities | $ | 356,891 | 100.00 | % | ||||||||||
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 15 | ||||
Property Summary
Property | Location | Number of Tenants (1) | 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 | ||||||||||||||||||||||||
| Alex City Marketplace | Alexander City, AL | 18 | 151,843 | 97.6 | % | 97.6 | % | 148,243 | $ | 1,149 | $ | 7.75 | ||||||||||||||||||||
| Amscot Building | Tampa, FL | 1 | 2,500 | 100.0 | % | 100.0 | % | 2,500 | 83 | 33.00 | ||||||||||||||||||||||
| Beaver Ruin Village | Lilburn, GA | 29 | 74,038 | 95.2 | % | 95.2 | % | 70,448 | 1,218 | 17.28 | ||||||||||||||||||||||
| Beaver Ruin Village II | Lilburn, GA | 4 | 34,925 | 100.0 | % | 100.0 | % | 34,925 | 457 | 13.08 | ||||||||||||||||||||||
| Brook Run Shopping Center | Richmond, VA | 19 | 147,738 | 87.0 | % | 87.0 | % | 128,495 | 887 | 6.91 | ||||||||||||||||||||||
| Brook Run Properties (3) | Richmond, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Bryan Station | Lexington, KY | 10 | 54,277 | 100.0 | % | 100.0 | % | 54,277 | 592 | 10.91 | ||||||||||||||||||||||
| Butler Square | Mauldin, SC | 16 | 82,400 | 98.2 | % | 98.2 | % | 80,950 | 849 | 10.49 | ||||||||||||||||||||||
| Cardinal Plaza | Henderson, NC | 8 | 50,000 | 97.0 | % | 97.0 | % | 48,500 | 482 | 9.95 | ||||||||||||||||||||||
| Chesapeake Square | Onley, VA | 12 | 108,982 | 96.5 | % | 96.5 | % | 105,182 | 794 | 7.55 | ||||||||||||||||||||||
| Clover Plaza | Clover, SC | 10 | 45,575 | 100.0 | % | 100.0 | % | 45,575 | 376 | 8.25 | ||||||||||||||||||||||
| Columbia Fire Station | Columbia, SC | 1 | 21,273 | 14.4 | % | 14.4 | % | 3,063 | 81 | 26.60 | ||||||||||||||||||||||
| Courtland Commons (3) | Courtland, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Conyers Crossing | Conyers, GA | 13 | 170,475 | 98.0 | % | 98.0 | % | 166,975 | 895 | 5.36 | ||||||||||||||||||||||
| Crockett Square | Morristown, TN | 4 | 107,122 | 100.0 | % | 100.0 | % | 107,122 | 970 | 9.06 | ||||||||||||||||||||||
| Cypress Shopping Center | Boiling Springs, SC | 17 | 80,435 | 41.2 | % | 41.2 | % | 33,175 | 444 | 13.39 | ||||||||||||||||||||||
| Darien Shopping Center | Darien, GA | 1 | 26,001 | 100.0 | % | 100.0 | % | 26,001 | 140 | 5.38 | ||||||||||||||||||||||
| Devine Street | Columbia, SC | 2 | 38,464 | 100.0 | % | 100.0 | % | 38,464 | 319 | 8.28 | ||||||||||||||||||||||
| Edenton Commons (3) | Edenton, NC | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Folly Road | Charleston, SC | 5 | 47,794 | 100.0 | % | 100.0 | % | 47,794 | 731 | 15.29 | ||||||||||||||||||||||
| Forrest Gallery | Tullahoma, TN | 26 | 214,451 | 80.3 | % | 80.3 | % | 172,124 | 1,243 | 7.22 | ||||||||||||||||||||||
| Fort Howard Shopping Center | Rincon, GA | 19 | 113,652 | 95.1 | % | 95.1 | % | 108,120 | 1,038 | 9.60 | ||||||||||||||||||||||
| Freeway Junction | Stockbridge, GA | 18 | 156,834 | 90.0 | % | 90.0 | % | 141,104 | 1,259 | 8.92 | ||||||||||||||||||||||
| Franklin Village | Kittanning, PA | 26 | 151,821 | 98.7 | % | 98.7 | % | 149,821 | 1,288 | 8.60 | ||||||||||||||||||||||
| Franklinton Square | Franklinton, NC | 15 | 65,366 | 100.0 | % | 100.0 | % | 65,366 | 591 | 9.03 | ||||||||||||||||||||||
| Georgetown | Georgetown, SC | 2 | 29,572 | 100.0 | % | 100.0 | % | 29,572 | 267 | 9.04 | ||||||||||||||||||||||
| Grove Park | Orangeburg, SC | 14 | 93,265 | 99.4 | % | 99.4 | % | 92,741 | 734 | 7.92 | ||||||||||||||||||||||
| Harbor Point (3) | Grove, OK | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Harrodsburg Marketplace | Harrodsburg, KY | 7 | 60,048 | 88.0 | % | 88.0 | % | 52,848 | 437 | 8.28 | ||||||||||||||||||||||
| JANAF (4) | Norfolk, VA | 110 | 798,086 | 91.6 | % | 89.5 | % | 714,646 | 8,365 | 11.70 | ||||||||||||||||||||||
| Laburnum Square | Richmond, VA | 19 | 109,405 | 95.3 | % | 95.3 | % | 104,305 | 947 | 9.08 | ||||||||||||||||||||||
| Ladson Crossing | Ladson, SC | 15 | 52,607 | 100.0 | % | 100.0 | % | 52,607 | 508 | 9.66 | ||||||||||||||||||||||
| LaGrange Marketplace | LaGrange, GA | 13 | 76,594 | 96.9 | % | 96.9 | % | 74,194 | 432 | 5.82 | ||||||||||||||||||||||
| Lake Greenwood Crossing | Greenwood, SC | 7 | 47,546 | 91.7 | % | 90.1 | % | 42,818 | 351 | 8.19 | ||||||||||||||||||||||
| Lake Murray | Lexington, SC | 5 | 39,218 | 100.0 | % | 100.0 | % | 39,218 | 254 | 6.47 | ||||||||||||||||||||||
| Litchfield Market Village | Pawleys Island, SC | 20 | 86,740 | 88.7 | % | 88.7 | % | 76,902 | 921 | 11.97 | ||||||||||||||||||||||
| Lumber River Village | Lumberton, NC | 11 | 66,781 | 98.2 | % | 98.2 | % | 65,581 | 455 | 6.94 | ||||||||||||||||||||||
| Moncks Corner | Moncks Corner, SC | 1 | 26,800 | 100.0 | % | 100.0 | % | 26,800 | 323 | 12.07 | ||||||||||||||||||||||
| Nashville Commons | Nashville, NC | 12 | 56,100 | 100.0 | % | 100.0 | % | 56,100 | 625 | 11.13 | ||||||||||||||||||||||
| New Market Crossing | Mt. Airy, NC | 10 | 117,076 | 88.3 | % | 88.3 | % | 103,338 | 915 | 8.85 | ||||||||||||||||||||||
| Parkway Plaza | Brunswick, GA | 4 | 52,365 | 81.7 | % | 81.7 | % | 42,785 | 352 | 8.23 | ||||||||||||||||||||||
| Pierpont Centre | Morgantown, WV | 16 | 111,162 | 89.8 | % | 89.8 | % | 99,856 | 939 | 9.40 | ||||||||||||||||||||||
| Port Crossing | Harrisonburg, VA | 8 | 65,365 | 100.0 | % | 97.9 | % | 64,000 | 854 | 13.34 | ||||||||||||||||||||||
| Ridgeland | Ridgeland, SC | 1 | 20,029 | 100.0 | % | 100.0 | % | 20,029 | 140 | 7.00 | ||||||||||||||||||||||
| Riverbridge Shopping Center | Carrollton, GA | 10 | 91,188 | 94.7 | % | 94.7 | % | 86,388 | 691 | 8.00 | ||||||||||||||||||||||
| Rivergate Shopping Center | Macon, GA | 29 | 201,680 | 87.5 | % | 86.3 | % | 174,095 | 2,552 | 14.66 | ||||||||||||||||||||||
| Sangaree Plaza | Summerville, SC | 8 | 66,948 | 87.4 | % | 87.4 | % | 58,498 | 602 | 10.29 | ||||||||||||||||||||||
| Shoppes at Myrtle Park | Bluffton, SC | 13 | 56,601 | 99.3 | % | 99.3 | % | 56,181 | 610 | 10.86 | ||||||||||||||||||||||
| South Lake | Lexington, SC | 7 | 44,318 | 93.9 | % | 19.0 | % | 8,400 | 110 | 13.05 | ||||||||||||||||||||||
| South Park | Mullins, SC | 4 | 60,734 | 96.9 | % | 96.9 | % | 58,834 | 381 | 6.48 | ||||||||||||||||||||||
| South Square | Lancaster, SC | 6 | 44,350 | 81.0 | % | 81.0 | % | 35,900 | 301 | 8.37 | ||||||||||||||||||||||
| St. George Plaza | St. George, SC | 7 | 59,279 | 96.2 | % | 96.2 | % | 56,999 | 396 | 6.95 | ||||||||||||||||||||||
| Sunshine Plaza | Lehigh Acres, FL | 23 | 111,189 | 100.0 | % | 100.0 | % | 111,189 | 1,082 | 9.74 | ||||||||||||||||||||||
| Surrey Plaza | Hawkinsville, GA | 3 | 42,680 | 96.5 | % | 96.5 | % | 41,180 | 247 | 6.00 | ||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 16 | ||||
Property Summary (continued)
Property | Location | Number of Tenants (1) | 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 | 137,987 | 97.2 | % | 64.6 | % | 89,166 | $ | 876 | $ | 9.82 | ||||||||||||||||||||
| Tri-County Plaza | Royston, GA | 7 | 67,577 | 94.1 | % | 94.1 | % | 63,577 | 409 | 6.44 | ||||||||||||||||||||||
| Tuckernuck | Richmond, VA | 11 | 93,624 | 92.4 | % | 85.3 | % | 79,839 | 819 | 10.26 | ||||||||||||||||||||||
| Tulls Creek (3) | Moyock, NC | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Twin City Commons | Batesburg-Leesville, SC | 5 | 47,680 | 100.0 | % | 100.0 | % | 47,680 | 478 | 10.03 | ||||||||||||||||||||||
| Village of Martinsville | Martinsville, VA | 20 | 290,902 | 96.6 | % | 96.6 | % | 280,946 | 2,172 | 7.73 | ||||||||||||||||||||||
| Walnut Hill Plaza | Petersburg, VA | 6 | 87,239 | 38.1 | % | 38.1 | % | 33,225 | 279 | 8.41 | ||||||||||||||||||||||
| Waterway Plaza | Little River, SC | 10 | 49,750 | 100.0 | % | 100.0 | % | 49,750 | 499 | 10.02 | ||||||||||||||||||||||
| Westland Square | West Columbia, SC | 9 | 62,735 | 82.6 | % | 82.6 | % | 51,785 | 437 | 8.44 | ||||||||||||||||||||||
| Winslow Plaza | Sicklerville, NJ | 18 | 40,695 | 100.0 | % | 100.0 | % | 40,695 | 639 | 15.68 | ||||||||||||||||||||||
Total Portfolio | 764 | 5,511,881 | 91.9 | % | 90.0 | % | 4,960,891 | $ | 47,285 | $ | 9.53 | |||||||||||||||||||||
(1) Reflects leases executed through July 2, 2021 that commence subsequent to the end of current 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 6/30/2021 unless otherwise stated | 17 | ||||
Top Ten Tenants by Annualized Base Rent
Total Tenants : 764
| Tenants | Annualized Base Rent ($ in 000s) | % of Total Annualized Base Rent | Total Occupied Square Feet | Percent Total Leasable Square Foot | Base Rent Per Occupied Square Foot | ||||||||||||||||||||||||||||||
| 1. | Food Lion | $ | 4,394 | 9.29 | % | 551,469 | 10.01 | % | $ | 7.97 | |||||||||||||||||||||||||
Kroger Co.(1) | 1,948 | 4.12 | % | 226,010 | 4.10 | % | 8.62 | ||||||||||||||||||||||||||||
| 2. | Piggly Wiggly | 1,488 | 3.15 | % | 202,968 | 3.68 | % | 7.33 | |||||||||||||||||||||||||||
| 3. | Lowes Foods (2) | 1,181 | 2.50 | % | 130,036 | 2.36 | % | 9.08 | |||||||||||||||||||||||||||
| 4. | Winn Dixie | 887 | 1.88 | % | 133,575 | 2.42 | % | 6.64 | |||||||||||||||||||||||||||
| 5. | Planet Fitness | 837 | 1.77 | % | 100,427 | 1.82 | % | 8.33 | |||||||||||||||||||||||||||
| 6. | Hobby Lobby | 717 | 1.52 | % | 114,298 | 2.07 | % | 6.27 | |||||||||||||||||||||||||||
| 7. | Big Lots | 679 | 1.44 | % | 105,674 | 1.92 | % | 6.43 | |||||||||||||||||||||||||||
| 8. | BJ's Wholesale Club | 651 | 1.38 | % | 147,400 | 2.67 | % | 4.42 | |||||||||||||||||||||||||||
| 10. | Dollar Tree | 593 | 1.25 | % | 70,379 | 1.28 | % | 8.43 | |||||||||||||||||||||||||||
| $ | 13,375 | 28.30 | % | 1,782,236 | 32.33 | % | $ | 7.50 | |||||||||||||||||||||||||||
(1) Kroger 4 / Harris Teeter 1
(2) Lowes Foods 1 / KJ's Market 2
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 | — | 550,990 | 10.00 | % | — | % | $ | — | — | % | $ | — | ||||||||||||||||||||||||||||||||
| Month-to-Month | 11 | 19,144 | 0.35 | % | 0.39 | % | 267 | 0.56 | % | 13.95 | ||||||||||||||||||||||||||||||||||
| 2021 | 36 | 138,652 | 2.52 | % | 2.79 | % | 1,162 | 2.46 | % | 8.38 | ||||||||||||||||||||||||||||||||||
| 2022 | 133 | 512,582 | 9.30 | % | 10.33 | % | 5,282 | 11.17 | % | 10.30 | ||||||||||||||||||||||||||||||||||
| 2023 | 131 | 863,789 | 15.67 | % | 17.41 | % | 7,492 | 15.84 | % | 8.67 | ||||||||||||||||||||||||||||||||||
| 2024 | 129 | 698,565 | 12.67 | % | 14.08 | % | 6,930 | 14.66 | % | 9.92 | ||||||||||||||||||||||||||||||||||
| 2025 | 104 | 805,941 | 14.62 | % | 16.25 | % | 7,875 | 16.65 | % | 9.77 | ||||||||||||||||||||||||||||||||||
| 2026 | 97 | 773,410 | 14.03 | % | 15.59 | % | 7,207 | 15.24 | % | 9.32 | ||||||||||||||||||||||||||||||||||
| 2027 | 34 | 224,681 | 4.08 | % | 4.53 | % | 2,654 | 5.61 | % | 11.81 | ||||||||||||||||||||||||||||||||||
| 2028 | 21 | 331,609 | 6.02 | % | 6.68 | % | 2,344 | 4.96 | % | 7.07 | ||||||||||||||||||||||||||||||||||
| 2029 | 17 | 121,579 | 2.21 | % | 2.45 | % | 1,243 | 2.63 | % | 10.22 | ||||||||||||||||||||||||||||||||||
| 2030 and thereafter | 51 | 470,939 | 8.53 | % | 9.50 | % | 4,829 | 10.22 | % | 10.25 | ||||||||||||||||||||||||||||||||||
| Total | 764 | 5,511,881 | 100.00 | % | 100.00 | % | $ | 47,285 | 100.00 | % | $ | 9.53 | ||||||||||||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 18 | ||||
Leasing Summary
Anchor Lease Expiration Schedule (1)
| No Option | Option | ||||||||||||||||||||||||||||||||||
| Lease Expiration Six and Twelve Month Periods Ending December 31, | 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 | — | 148,758 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | — | — | — | — | % | — | — | — | — | — | % | — | |||||||||||||||||||||||
2021 (2) | 1 | 58,473 | — | — | % | — | — | — | — | — | % | — | |||||||||||||||||||||||
| 2022 | — | — | — | — | % | — | 4 | 152,881 | 1,153 | 6.31 | % | 7.54 | |||||||||||||||||||||||
| 2023 | 2 | 43,392 | 329 | 19.22 | % | 7.58 | 15 | 523,775 | 3,349 | 18.32 | % | 6.39 | |||||||||||||||||||||||
| 2024 | 1 | 32,000 | 125 | 7.30 | % | 3.91 | 8 | 318,759 | 2,231 | 12.20 | % | 7.00 | |||||||||||||||||||||||
| 2025 | 2 | 84,633 | 619 | 36.16 | % | 7.31 | 12 | 472,936 | 3,777 | 20.66 | % | 7.99 | |||||||||||||||||||||||
| 2026 | 1 | 20,152 | 97 | 5.67 | % | 4.81 | 13 | 435,435 | 3,399 | 18.59 | % | 7.81 | |||||||||||||||||||||||
| 2027 | 1 | 20,050 | 170 | 9.93 | % | 8.48 | 2 | 57,345 | 447 | 2.44 | % | 7.79 | |||||||||||||||||||||||
| 2028 | — | — | % | — | 7 | 280,841 | 1,637 | 8.95 | % | 5.83 | |||||||||||||||||||||||||
| 2029 | 1 | 21,213 | 317 | 18.52 | % | 14.94 | 2 | 45,700 | 307 | 1.68 | % | 6.72 | |||||||||||||||||||||||
| 2030+ | 1 | 20,858 | 55 | 3.20 | % | 2.64 | 7 | 321,576 | 1,985 | 10.85 | % | 6.17 | |||||||||||||||||||||||
| Total | 10 | 449,529 | $ | 1,712 | 100.00 | % | $ | 5.69 | 70 | 2,609,248 | $ | 18,285 | 100.00 | % | $ | 7.01 | |||||||||||||||||||
(1) Anchors defined as leases occupying 20,000 square feet or more.
(2) No ABR reported as the lease's term was less than twelve months upon execution.
Non-anchor Lease Expiration Schedule
| No Option | Option | ||||||||||||||||||||||||||||||||||
| Lease Expiration Six and Twelve Month Periods Ending December 31, | 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 | — | 402,232 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | 10 | 16,244 | 237 | 1.92 | % | 14.59 | 1 | 2,900 | 30 | 0.20 | % | 10.34 | |||||||||||||||||||||||
| 2021 | 25 | 50,054 | 645 | 5.22 | % | 12.89 | 10 | 30,125 | 517 | 3.46 | % | 17.16 | |||||||||||||||||||||||
| 2022 | 72 | 170,207 | 1,931 | 15.62 | % | 11.35 | 57 | 189,494 | 2,198 | 14.73 | % | 11.60 | |||||||||||||||||||||||
| 2023 | 65 | 134,318 | 1,688 | 13.65 | % | 12.57 | 49 | 162,304 | 2,126 | 14.24 | % | 13.10 | |||||||||||||||||||||||
| 2024 | 74 | 174,590 | 2,239 | 18.11 | % | 12.82 | 46 | 173,216 | 2,335 | 15.64 | % | 13.48 | |||||||||||||||||||||||
| 2025 | 53 | 117,658 | 1,650 | 13.35 | % | 14.02 | 37 | 130,714 | 1,829 | 12.25 | % | 13.99 | |||||||||||||||||||||||
| 2026 | 48 | 144,687 | 1,769 | 14.31 | % | 12.23 | 35 | 173,136 | 1,942 | 13.01 | % | 11.22 | |||||||||||||||||||||||
| 2027 | 10 | 30,987 | 535 | 4.33 | % | 17.27 | 21 | 116,299 | 1,502 | 10.06 | % | 12.91 | |||||||||||||||||||||||
| 2028 | 10 | 31,652 | 495 | 4.00 | % | 15.64 | 4 | 19,116 | 212 | 1.42 | % | 11.09 | |||||||||||||||||||||||
| 2029 | 7 | 23,850 | 241 | 1.95 | % | 10.10 | 7 | 30,816 | 378 | 2.53 | % | 12.27 | |||||||||||||||||||||||
| 2030+ | 18 | 40,981 | 932 | 7.54 | % | 22.74 | 25 | 87,524 | 1,857 | 12.46 | % | 21.22 | |||||||||||||||||||||||
| Total | 392 | 1,337,460 | $ | 12,362 | 100.00 | % | $ | 13.22 | 292 | 1,115,644 | $ | 14,926 | 100.00 | % | $ | 13.38 | |||||||||||||||||||
WHLR | Financial & Operating Data | as of 6/30/2021 unless otherwise stated | 19 | ||||
Leasing Summary
Leasing Renewals, New Leases and Expirations
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Renewals(1): | |||||||||||||||||||||||
| Leases renewed with rate increase (sq feet) | 34,629 | 255,380 | 179,802 | 392,979 | |||||||||||||||||||
| Leases renewed with rate decrease (sq feet) | 29,550 | 8,755 | 54,423 | 35,735 | |||||||||||||||||||
| Leases renewed with no rate change (sq feet) | 42,394 | 43,628 | 60,353 | 64,206 | |||||||||||||||||||
| Total leases renewed (sq feet) | 106,573 | 307,763 | 294,578 | 492,920 | |||||||||||||||||||
| Leases renewed with rate increase (count) | 15 | 53 | 42 | 83 | |||||||||||||||||||
| Leases renewed with rate decrease (count) | 4 | 6 | 9 | 11 | |||||||||||||||||||
| Leases renewed with no rate change (count) | 7 | 12 | 15 | 18 | |||||||||||||||||||
| Total leases renewed (count) | 26 | 71 | 66 | 112 | |||||||||||||||||||
| Option exercised (count) | 4 | 4 | 8 | 9 | |||||||||||||||||||
| Weighted average on rate increases (per sq foot) | $ | 0.91 | $ | 0.62 | $ | 0.73 | $ | 1.05 | |||||||||||||||
| Weighted average on rate decreases (per sq foot) | $ | (3.09) | $ | (0.40) | $ | (2.20) | $ | (1.76) | |||||||||||||||
| Weighted average rate on all renewals (per sq foot) | $ | (0.56) | $ | 0.50 | $ | 0.04 | $ | 0.71 | |||||||||||||||
| Weighted average change over prior rates | (5.37) | % | 4.92 | % | 0.39 | % | 6.81 | % | |||||||||||||||
New Leases(1) (2): | |||||||||||||||||||||||
| New leases (sq feet) | 113,865 | 81,780 | 226,459 | 109,402 | |||||||||||||||||||
| New leases (count) | 18 | 16 | 37 | 30 | |||||||||||||||||||
| Weighted average rate (per sq foot) | $ | 8.30 | $ | 9.46 | $ | 8.27 | $ | 11.00 | |||||||||||||||
| Gross Leasable Area ("GLA") expiring during the next 6 months, including month-to-month leases | 2.87 | % | 6.00 | % | 2.87 | % | 6.00 | % | |||||||||||||||
(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 6/30/2021 unless otherwise stated | 20 | ||||
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, from income from continuing operations. The Company also presents Adjusted EBITDA which excludes 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 6/30/2021 unless otherwise stated | 21 | ||||
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, 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 6/30/2021 unless otherwise stated | 22 | ||||