Wheeler Real Estate Investment Trust, Inc 8-K, filed May 9, 2023
Wheeler Real Estate Investment Trust, Inc. (WHLR)
8-K
2023-05-09
For: 2023-05-09
View Original
Added on
April 05, 2026
About this 8-K
Wheeler Real Estate Investment Trust, Inc filed this 8-K on May 9, 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): May 9, 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 May 9, 2023, Wheeler Real Estate Investment Trust, Inc. (the “Company”) issued a press release announcing that it had reported its financial and operating results for the three months ended March 31, 2023. A copy of the Company's 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 May 9, 2023, the Company made publicly available certain supplemental financial information for the three months ended March 31, 2023 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: May 9, 2023
Exhibit 99.1
WHEELER REAL ESTATE INVESTMENT TRUST, INC.
ANNOUNCES THE RELEASE OF ITS
FIRST QUARTER 2023 FINANCIAL AND OPERATING RESULTS
Virginia Beach, VA – May 9, 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 three months ended March 31, 2023 on Form 10-Q. In addition, the Company has posted supplemental information to its website regarding WHLR's financial and operating results for the three months ended March 31, 2023. Both the Form 10-Q 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 Schedules | |||||
| 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 adverse effect of any future pandemic, endemic or outbreak of infectious disease, and mitigation efforts to control their spread, the use of and demand for retail space; 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; anticipated substantial dilution of our common stock, and steep decline in their market value, 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 tenants of Wheeler Real Estate Trust, Inc. (the "Company" or "WHLR") 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 of 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 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”); the ability of our operating partnership, Wheeler REIT, L.P. and each of our other partnerships and limited liability companies to be classified
WHLR | Financial & Operating Data | 2 | ||||
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 (Chair) | |||||||
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 March 31, 2023 (consolidated amounts unless otherwise noted)
Financial Results | |||||
| Net loss attributable to Wheeler REIT common stockholders (in 000s) | $ | (5,365) | |||
| Net loss per basic and diluted shares | $ | (0.55) | |||
Funds from operations available to common stockholders and Operating Partnership (OP) unitholders (FFO) (in 000s) (1) | $ | 2,252 | |||
| FFO per common share and OP unit | $ | 0.23 | |||
Adjusted FFO (AFFO) (in 000s) (1) | $ | 1,344 | |||
| AFFO per common share and OP unit | $ | 0.14 | |||
Assets and Leverage | |||||
Investment Properties, net of $82.4 million accumulated depreciation (in 000s) | $ | 560,913 | |||
| Cash and Cash Equivalents (in 000s) | $ | 24,817 | |||
| Total Assets (in 000s) | $ | 681,153 | |||
| Total Debt (in 000s) | $ | 481,859 | |||
| Debt to Total Assets | 70.74 | % | |||
| Debt to Gross Asset Value | 62.75 | % | |||
Market Capitalization | |||||
| Common shares outstanding | 9,800,211 | ||||
| OP units outstanding | 144,942 | ||||
| Total common shares and OP units | 9,945,153 | ||||
Ticker | Shares Outstanding at March 31, 2023 | First Quarter stock price range | Stock price as of March 31, 2023 | ||||||||||||||
| WHLR | 9,800,211 | $1.10-$1.90 | $ | 1.27 | |||||||||||||
| WHLRP | 3,379,142 | $1.26-$2.33 | $ | 1.61 | |||||||||||||
| WHLRD | 3,148,148 | $11.23-$13.97 | $ | 12.55 | |||||||||||||
| CDRpB | 1,450,000 | $13.23-$18.00 | $ | 15.38 | |||||||||||||
| CDRpC | 5,000,000 | $10.85-$14.28 | $ | 11.78 | |||||||||||||
| Common Stock market capitalization (in 000s) | 12,446 | ||||||||||||||||
Portfolio Summary | | | |||||||||
| Total Leasable Area (GLA) in sq. ft. | 5,309,977 | 2,862,550 | |||||||||
| Occupancy Rate | 94.5 | % | 84.8 | % | |||||||
Leased Rate (2) | 95.8 | % | 87.2 | % | |||||||
| Annualized Base Rent (in 000s) | $ | 49,126 | $ | 24,934 | |||||||
| Total number of leases signed or renewed | 47 | 9 | |||||||||
| Total sq. ft. leases signed or renewed | 312,007 | 100,571 | |||||||||
(1) See page 22 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) Reflects leases executed through March 31, 2023 that commence subsequent to the end of the current reporting period.
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 5 | ||||
Financial and Operating Results
Today, WHLR reported its financial and operating results for the three months ended March 31, 2023. For the three months ended March 31, 2023 and 2022, WHLR's net loss attributable to WHLR's common stock, $0.01 par value per share ("Common Stock") stockholders was $(0.55) per share and $(0.70) per share, respectively.
2023 FIRST QUARTER HIGHLIGHTS
(All comparisons are to the same prior year period unless otherwise noted)
LEASING
•The Company's real estate portfolio, excluding Cedar was 95.8% leased, a 0 basis point change from 95.8%.
•The Company's real estate portfolio, excluding Cedar was 94.5% occupied, an 80 basis point increase from 93.7%.
•The Company invested $4.2 million in capital expenditures into the properties.
•The Company's real estate portfolio includes 36 properties that are 100% leased.
•WHLR Quarter-To-Date Leasing Activity
•Executed 38 lease renewals totaling 262,787 square feet at a weighted-average increase of $0.66 per square foot, representing an increase of 6.89% over in-place rental rates.
•Signed 9 new leases totaling 49,220 square feet with a weighted-average rental rate of $16.14 per square foot.
•CDR Quarter-To-Date Leasing Activity
•Executed 6 lease renewals totaling 58,171 square feet at a weighted-average increase of $0.40 per square foot, representing an increase of 3.96% over in-place rental rates.
•Signed 3 new leases totaling 42,400 square feet with a weighted-average rental rate of $13.07 per square foot.
•The Cedar portfolio was 87.2% leased, a 100 basis point increase from 86.2% as of December 31, 2022.
•The Cedar portfolio was 84.8% occupied, a 250 basis point increase from 82.3% occupied as of December 31, 2022.
•The Company’s gross leasable area ("GLA"), which is subject to leases that expire over the next three months and includes month-to-month leases, decreased to approximately 4.97%, compared to 5.01%. At March 31, 2023, 49.23% 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 March 31, 2023, the Company signed leases representing $1.9 million of annualized base rent ("ABR"), whereby rent will commence within the next twelve months.
OPERATIONS
•Total revenue increased by 68.2% or $10.6 million primarily a result of the Cedar Acquisition.
•Total operating expenses increased by 80.6% or $8.7 million primarily a result of the Cedar Acquisition.
FINANCIAL
•Funds from operations ("FFO") of $2.3 million, or $0.23 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 $(2.4) million, or $(0.24) per share.
•Adjusted Funds from Operations ("AFFO") of $0.14 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P., as compared to $0.24 per share.
SAME STORE
•Same store Net Operating Income ("NOI"), which excludes the impact of the Cedar portfolio, increased by 4.2% primarily due to strong leasing activity.
CAPITAL MARKETS
•Interest expense was $6.5 million and $4.6 million for the three months ended March 31, 2023 and 2022, respectively, representing an increase of 40.0%, see page 14 for further details.
Other
•The Company recognized non-operating expenses of $2.4 million, a result of costs incurred on the Exchange Offer that expired in January 2023.
BALANCE SHEET
•Cash and cash equivalents totaled $24.8 million, compared to $28.5 million at December 31, 2022.
•Restricted cash totaled $27.3 million, compared to $27.4 million at December 31, 2022. The funds at March 31, 2023 are held in lender reserves primarily for the purpose of tenant improvements, lease commissions, real estate taxes and insurance expenses.
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 6 | ||||
•Debt totaled $481.9 million, compared to $482.4 million at December 31, 2022.
•WHLR's weighted-average interest rate on property level debt, excluding Cedar, was 4.58% with a term of 6.0 years, compared to 4.58% with a term of 6.2 years at December 31, 2022. The weighted-average interest rate on all debt was 4.99% with a term of 7.2 years, compared to 4.99% with a term of 7.4 years at December 31, 2022.
•Net investment properties totaled $560.9 million compared to $561.0 million as of December 31, 2022.
DIVIDENDS
•Total cumulative dividends in arrears for WHLR's Series D Preferred were $11.66 per share as of March 31, 2023, with $0.67 per share attributable to the three months ended March 31, 2023.
•On April 20, 2023 Cedar declared dividends of $0.453125 and $0.406250 per share with respect to the CDR Series B Preferred and CDR Series C Preferred, respectively. The distributions are payable on May 22, 2023 to shareholders of record on May 10, 2023.
SUBSEQUENT EVENTS
•On May 5, 2023 the Company entered into a loan agreement for $61.1 million at a fixed rate of 6.194% and interest-only payments due monthly through June 2025. Commencing in July 2025, until the maturity date of June 1, 2033, monthly principal and interest payments will be $0.4 million. Loan proceeds were used to refinance 12 properties.
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 3/31/2023 unless otherwise stated | 7 | ||||
Consolidated Balance Sheets
$ in 000s, except par value and share data
March 31, 2023 | December 31, 2022 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS: | |||||||||||
| Investment properties: | |||||||||||
| Land and land improvements | $ | 145,382 | $ | 144,537 | |||||||
| Buildings and improvements | 497,889 | 494,668 | |||||||||
| 643,271 | 639,205 | ||||||||||
| Less accumulated depreciation | (82,358) | (78,225) | |||||||||
| Investment properties, net | 560,913 | 560,980 | |||||||||
| Cash and cash equivalents | 24,817 | 28,491 | |||||||||
| Restricted cash | 27,304 | 27,374 | |||||||||
| Rents and other tenant receivables, net | 11,772 | 13,544 | |||||||||
| Above market lease intangibles, net | 2,862 | 3,134 | |||||||||
| Operating lease right-of-use assets | 15,056 | 15,133 | |||||||||
| Deferred costs and other assets, net | 38,429 | 35,880 | |||||||||
| Total Assets | $ | 681,153 | $ | 684,536 | |||||||
| LIABILITIES: | |||||||||||
| Loans payable, net | $ | 467,060 | $ | 466,029 | |||||||
| Below market lease intangibles, net | 22,289 | 23,968 | |||||||||
| Derivative liabilities | 5,259 | 7,111 | |||||||||
| Operating lease liabilities | 16,429 | 16,478 | |||||||||
| Accounts payable, accrued expenses and other liabilities | 20,660 | 18,398 | |||||||||
| Total Liabilities | 531,697 | 531,984 | |||||||||
Series D Cumulative Convertible Preferred Stock (no par value, 6,000,000 shares authorized, 3,148,148 and 3,152,392 shares issued and outstanding, respectively; $115.4 million and $113.4 million aggregate liquidation value, respectively) | 103,621 | 101,518 | |||||||||
| EQUITY: | |||||||||||
Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding; $0.6 million in aggregate liquidation value) | 453 | 453 | |||||||||
Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 3,379,142 shares issued and outstanding, respectively; $84.5 million aggregate liquidation preference) | 44,933 | 44,911 | |||||||||
Common Stock ($0.01 par value, 200,000,000 shares authorized 9,800,211 and 9,793,957 shares issued and outstanding, respectively) | 98 | 98 | |||||||||
| Additional paid-in capital | 235,120 | 234,993 | |||||||||
| Accumulated deficit | (300,982) | (295,617) | |||||||||
| Total Stockholders’ Deficit | (20,378) | (15,162) | |||||||||
| Noncontrolling interests | 66,213 | 66,196 | |||||||||
| Total Equity | 45,835 | 51,034 | |||||||||
| Total Liabilities and Equity | $ | 681,153 | $ | 684,536 | |||||||
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 8 | ||||
Consolidated Statements of Operations
$ in 000s, except share and per share data
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| REVENUE: | |||||||||||||||||||||||
| Rental revenues | $ | 25,500 | $ | 15,332 | |||||||||||||||||||
| Other revenues | 566 | 165 | |||||||||||||||||||||
| Total Revenue | 26,066 | 15,497 | |||||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||
| Property operations | 8,955 | 5,250 | |||||||||||||||||||||
| Depreciation and amortization | 7,466 | 3,616 | |||||||||||||||||||||
| Impairment of assets held for sale | — | 660 | |||||||||||||||||||||
| Corporate general & administrative | 3,071 | 1,264 | |||||||||||||||||||||
| Total Operating Expenses | 19,492 | 10,790 | |||||||||||||||||||||
| Loss on disposal of properties | — | (15) | |||||||||||||||||||||
| Operating Income | 6,574 | 4,692 | |||||||||||||||||||||
| Interest income | 47 | 13 | |||||||||||||||||||||
| Interest expense | (6,477) | (4,628) | |||||||||||||||||||||
| Net changes in fair value of derivative liabilities | 1,852 | (3,962) | |||||||||||||||||||||
| Other expense | (2,405) | (691) | |||||||||||||||||||||
| Net Loss | (409) | (4,576) | |||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 2,692 | 4 | |||||||||||||||||||||
| Net Loss Attributable to Wheeler REIT | (3,101) | (4,580) | |||||||||||||||||||||
| Preferred Stock dividends - undeclared | (2,264) | (2,264) | |||||||||||||||||||||
| Net Loss Attributable to Wheeler REIT Common Stockholders | $ | (5,365) | $ | (6,844) | |||||||||||||||||||
| Loss per share: | |||||||||||||||||||||||
| Basic and Diluted | $ | (0.55) | $ | (0.70) | |||||||||||||||||||
| Weighted-average number of shares: | |||||||||||||||||||||||
| Basic and Diluted | 9,794,026 | 9,720,589 | |||||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 9 | ||||
Reconciliation of Non-GAAP Measures
FFO and AFFO (1)
$ in 000s, except share, unit and per share data
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||||||||
| Net Loss | $ | (409) | $ | (4,576) | ||||||||||||||||||||||
| Depreciation and amortization of real estate assets | 7,466 | 3,616 | ||||||||||||||||||||||||
| Impairment of assets held for sale | — | 660 | ||||||||||||||||||||||||
| Loss on disposal of properties | — | 15 | ||||||||||||||||||||||||
| FFO | 7,057 | (285) | ||||||||||||||||||||||||
| Preferred stock dividends - undeclared | (2,264) | (2,264) | ||||||||||||||||||||||||
| Dividends on noncontrolling interests preferred stock | (2,688) | — | ||||||||||||||||||||||||
| Preferred stock accretion adjustments | 147 | 146 | ||||||||||||||||||||||||
| FFO available to common stockholders and common unitholders | 2,252 | (2,403) | ||||||||||||||||||||||||
Other non-recurring and non-cash expenses (2) | 2,673 | 677 | ||||||||||||||||||||||||
| Net changes in fair value of derivative liabilities | (1,852) | 3,962 | ||||||||||||||||||||||||
| Straight-line rental revenue, net straight-line expense | (403) | (69) | ||||||||||||||||||||||||
| Loan cost amortization | 479 | 420 | ||||||||||||||||||||||||
| Above (below) market lease amortization | (1,396) | 23 | ||||||||||||||||||||||||
| Recurring capital expenditures and tenant improvement reserves | (409) | (270) | ||||||||||||||||||||||||
| AFFO | $ | 1,344 | $ | 2,340 | ||||||||||||||||||||||
| Weighted Average Common Shares | 9,794,026 | 9,720,589 | ||||||||||||||||||||||||
| Weighted Average Common Units | 144,942 | 215,343 | ||||||||||||||||||||||||
| Total Common Shares and Units | 9,938,968 | 9,935,932 | ||||||||||||||||||||||||
| FFO per Common Share and Common Units | $ | 0.23 | $ | (0.24) | ||||||||||||||||||||||
| AFFO per Common Share and Common Units | $ | 0.14 | $ | 0.24 | ||||||||||||||||||||||
(1) See page 22 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 months ended March 31, 2023.
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 10 | ||||
Reconciliation of Non-GAAP Measures (continued)
Same Store Property Net Operating Income (1)
$ in 000s
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Operating Income | $ | 6,574 | $ | 4,692 | |||||||
| Adjustments: | |||||||||||
| Loss on disposal of properties | — | 15 | |||||||||
| Corporate general & administrative | 3,071 | 1,264 | |||||||||
| Impairment of assets held for sale | — | 660 | |||||||||
| Depreciation and amortization | 7,466 | 3,616 | |||||||||
| Straight-line rents | (346) | (77) | |||||||||
| Above (below) market lease amortization | (1,396) | 23 | |||||||||
| Other non-property revenue | (245) | (7) | |||||||||
NOI related to non-same store properties (2) | (4,735) | (218) | |||||||||
| Same Store Property Net Operating Income | $ | 10,389 | $ | 9,968 | |||||||
| Property revenues | $ | 15,562 | $ | 15,143 | |||||||
| Property expenses | 5,173 | 5,175 | |||||||||
| Same Store Property Net Operating Income | $ | 10,389 | $ | 9,968 | |||||||
(1) See page 23 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) The company excluded the CDR portfolio and sold properties from the calculation of same store property NOI since they were not owned during all periods presented in their entirety.
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 11 | ||||
Reconciliation of Non-GAAP Measures (continued)
EBITDA (4)
$ in 000s
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||||||||
Net Loss | $ | (409) | $ | (4,576) | ||||||||||||||||||||||
Add back: | Depreciation and amortization (1) | 6,070 | 3,639 | |||||||||||||||||||||||
Interest expense (2) | 6,477 | 4,628 | ||||||||||||||||||||||||
EBITDA | 12,138 | 3,691 | ||||||||||||||||||||||||
| Adjustments for items affecting comparability: | ||||||||||||||||||||||||||
| Net changes in FMV of derivative liabilities | (1,852) | 3,962 | ||||||||||||||||||||||||
Other non-recurring and non-cash expenses (3) | 2,665 | 667 | ||||||||||||||||||||||||
Impairment of assets held for sale | — | 660 | ||||||||||||||||||||||||
Loss on disposal of properties | — | 15 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 12,951 | $ | 8,995 | ||||||||||||||||||||||
(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-Q for the period ended March 31, 2023.
(4) See page 22 for the Company's definition of this non-GAAP measurement and reasons for using it.
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 12 | ||||
Debt Summary
$ in 000s
| Property/Description | Monthly Payment | Interest Rate | Maturity | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
| Cypress Shopping Center | $ | 34,360 | 4.70 | % | July 2024 | $ | 5,870 | $ | 5,903 | |||||||||||||||||||||||
| Port Crossing | $ | 34,788 | 4.84 | % | August 2024 | 5,605 | 5,641 | |||||||||||||||||||||||||
| Freeway Junction | $ | 41,798 | 4.60 | % | September 2024 | 7,231 | 7,273 | |||||||||||||||||||||||||
| Harrodsburg Marketplace | $ | 19,112 | 4.55 | % | September 2024 | 3,165 | 3,186 | |||||||||||||||||||||||||
| Bryan Station | $ | 23,489 | 4.52 | % | November 2024 | 4,112 | 4,136 | |||||||||||||||||||||||||
| Crockett Square | Interest only | 4.47 | % | December 2024 | 6,338 | 6,338 | ||||||||||||||||||||||||||
| Pierpont Centre | $ | 39,435 | 4.15 | % | February 2025 | 7,678 | 7,716 | |||||||||||||||||||||||||
| Shoppes at Myrtle Park | $ | 33,180 | 4.45 | % | February 2025 | 5,578 | 5,615 | |||||||||||||||||||||||||
| 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 (1) | 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 | 4,389 | 4,409 | |||||||||||||||||||||||||
| Tuckernuck | $ | 32,202 | 5.00 | % | March 2026 | 4,879 | 4,915 | |||||||||||||||||||||||||
| Chesapeake Square | $ | 23,857 | 4.70 | % | August 2026 | 4,083 | 4,106 | |||||||||||||||||||||||||
| Sangaree/Tri-County | $ | 32,329 | 4.78 | % | December 2026 | 6,061 | 6,086 | |||||||||||||||||||||||||
| Riverbridge | Interest only | 4.48 | % | December 2026 | 4,000 | 4,000 | ||||||||||||||||||||||||||
| Franklin Village | $ | 45,336 | 4.93 | % | January 2027 | 8,108 | 8,144 | |||||||||||||||||||||||||
| Village of Martinsville | $ | 89,664 | 4.28 | % | July 2029 | 15,074 | 15,181 | |||||||||||||||||||||||||
| Laburnum Square | Interest only | 4.28 | % | September 2029 | 7,665 | 7,665 | ||||||||||||||||||||||||||
| Rivergate (2) | $ | 100,222 | 4.25 | % | September 2031 | 17,893 | 18,003 | |||||||||||||||||||||||||
| Convertible Notes | Interest only | 7.00 | % | December 2031 | 33,000 | 33,000 | ||||||||||||||||||||||||||
| Guggenheim Loan Agreement (3) | Interest only | 4.25 | % | July 2032 | 75,000 | 75,000 | ||||||||||||||||||||||||||
| JANAF Loan Agreement (4) | Interest only | 5.31 | % | July 2032 | 60,000 | 60,000 | ||||||||||||||||||||||||||
| Guggenheim-Cedar Loan Agreement (5) | Interest only | 5.25 | % | November 2032 | 110,000 | 110,000 | ||||||||||||||||||||||||||
| Patuxent Crossing/Coliseum Marketplace Loan Agreement | Interest only | 6.35 | % | January 2033 | 25,000 | 25,000 | ||||||||||||||||||||||||||
| Total Principal Balance | 481,859 | 482,447 | ||||||||||||||||||||||||||||||
| Unamortized debt issuance cost | (14,799) | (16,418) | ||||||||||||||||||||||||||||||
| Total Loans Payable, net | $ | 467,060 | $ | 466,029 | ||||||||||||||||||||||||||||
(1) Collateralized by Cardinal Plaza, Franklinton Square, and Nashville Commons.
(2) 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%.
(3) Collateralized by 22 properties.
(4) Collateralized by JANAF properties.
(5) Collateralized by 10 Cedar Properties.
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 13 | ||||
Debt Summary (continued)
Total Debt
$ in 000s
| Scheduled principal repayments and maturities by year | Amount | % Total Principal Payments and Maturities | ||||||||||||
| For the remaining nine months ended December 31, 2023 | $ | 1,755 | 0.36 | % | ||||||||||
| December 31, 2024 | 33,690 | 6.99 | % | |||||||||||
| December 31, 2025 | 79,697 | 16.54 | % | |||||||||||
| December 31, 2026 | 19,347 | 4.02 | % | |||||||||||
| December 31, 2027 | 9,440 | 1.96 | % | |||||||||||
| December 31, 2028 | 3,805 | 0.79 | % | |||||||||||
| Thereafter | 334,125 | 69.34 | % | |||||||||||
| Total principal repayments and debt maturities | $ | 481,859 | 100.00 | % | ||||||||||
Interest Expense
$ in 000s
| Three Months Ended March 31, | Three Months Ended Changes | ||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| Property debt interest - excluding Cedar Debt | $ | 3,606 | $ | 3,630 | $ | (24) | (0.7) | % | |||||||||||||||||||||||||||||||||||||||
| Convertible Notes interest | 578 | 578 | — | — | % | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred financing costs | 479 | 420 | 59 | 14.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Property debt interest - Cedar | 1,814 | — | 1,814 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total Interest Expense | $ | 6,477 | $ | 4,628 | $ | 1,849 | 40.0 | % | |||||||||||||||||||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 14 | ||||
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 | ||||||||||||||||||||||||
| WHLR | ||||||||||||||||||||||||||||||||
| Alex City Marketplace | Alexander City, AL | 19 | 151,843 | 100.0 | % | 100.0 | % | 151,843 | $ | 1,273 | $ | 8.38 | ||||||||||||||||||||
| Amscot Building | Tampa, FL | 1 | 2,500 | 100.0 | % | 100.0 | % | 2,500 | 83 | 33.00 | ||||||||||||||||||||||
| Beaver Ruin Village | Lilburn, GA | 29 | 74,038 | 94.7 | % | 94.7 | % | 70,148 | 1,274 | 18.16 | ||||||||||||||||||||||
| Beaver Ruin Village II | Lilburn, GA | 4 | 34,925 | 100.0 | % | 100.0 | % | 34,925 | 465 | 13.32 | ||||||||||||||||||||||
| Brook Run Shopping Center | Richmond, VA | 20 | 147,738 | 87.8 | % | 87.8 | % | 129,710 | 1,138 | 8.77 | ||||||||||||||||||||||
| Brook Run Properties (3) | Richmond, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Bryan Station | Lexington, KY | 9 | 54,277 | 94.5 | % | 94.5 | % | 51,275 | 597 | 11.65 | ||||||||||||||||||||||
| Cardinal Plaza | Henderson, NC | 9 | 50,000 | 100.0 | % | 100.0 | % | 50,000 | 504 | 10.09 | ||||||||||||||||||||||
| Chesapeake Square | Onley, VA | 14 | 108,982 | 99.1 | % | 99.1 | % | 108,016 | 838 | 7.76 | ||||||||||||||||||||||
| Clover Plaza | Clover, SC | 10 | 45,575 | 100.0 | % | 100.0 | % | 45,575 | 382 | 8.39 | ||||||||||||||||||||||
| Courtland Commons (3) | Courtland, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Conyers Crossing | Conyers, GA | 12 | 170,475 | 99.4 | % | 97.1 | % | 165,600 | 904 | 5.46 | ||||||||||||||||||||||
| Crockett Square | Morristown, TN | 4 | 107,122 | 100.0 | % | 100.0 | % | 107,122 | 978 | 9.13 | ||||||||||||||||||||||
| Cypress Shopping Center | Boiling Springs, SC | 17 | 80,435 | 59.9 | % | 41.2 | % | 33,175 | 470 | 14.16 | ||||||||||||||||||||||
| 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 | 735 | 15.37 | ||||||||||||||||||||||
| Forrest Gallery | Tullahoma, TN | 28 | 214,451 | 90.0 | % | 90.0 | % | 193,024 | 1,426 | 7.39 | ||||||||||||||||||||||
| Fort Howard Shopping Center | Rincon, GA | 20 | 113,652 | 100.0 | % | 100.0 | % | 113,652 | 1,273 | 11.20 | ||||||||||||||||||||||
| Freeway Junction | Stockbridge, GA | 17 | 156,834 | 97.5 | % | 97.5 | % | 152,984 | 1,325 | 8.66 | ||||||||||||||||||||||
| Franklin Village | Kittanning, PA | 25 | 151,821 | 98.0 | % | 98.0 | % | 148,773 | 1,393 | 9.36 | ||||||||||||||||||||||
| Franklinton Square | Franklinton, NC | 15 | 65,366 | 100.0 | % | 100.0 | % | 65,366 | 596 | 9.12 | ||||||||||||||||||||||
| 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 | 385 | 7.05 | ||||||||||||||||||||||
| JANAF (4) | Norfolk, VA | 119 | 798,086 | 95.5 | % | 95.0 | % | 758,072 | 9,043 | 11.93 | ||||||||||||||||||||||
| Laburnum Square | Richmond, VA | 20 | 109,405 | 99.1 | % | 99.1 | % | 108,445 | 1,005 | 9.26 | ||||||||||||||||||||||
| Ladson Crossing | Ladson, SC | 16 | 52,607 | 100.0 | % | 100.0 | % | 52,607 | 551 | 10.47 | ||||||||||||||||||||||
| LaGrange Marketplace | LaGrange, GA | 14 | 76,594 | 93.7 | % | 93.7 | % | 71,800 | 450 | 6.26 | ||||||||||||||||||||||
| Lake Greenwood Crossing | Greenwood, SC | 8 | 43,618 | 100.0 | % | 100.0 | % | 43,618 | 364 | 8.35 | ||||||||||||||||||||||
| Lake Murray | Lexington, SC | 5 | 39,218 | 100.0 | % | 100.0 | % | 39,218 | 274 | 6.98 | ||||||||||||||||||||||
| Litchfield Market Village | Pawleys Island, SC | 24 | 86,740 | 94.8 | % | 94.8 | % | 82,202 | 1,029 | 12.52 | ||||||||||||||||||||||
| 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 | 11.52 | ||||||||||||||||||||||
| 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 | 453 | 10.58 | ||||||||||||||||||||||
| Pierpont Centre | Morgantown, WV | 15 | 111,162 | 98.4 | % | 98.4 | % | 109,437 | 1,057 | 9.66 | ||||||||||||||||||||||
| Port Crossing | Harrisonburg, VA | 7 | 65,365 | 100.0 | % | 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 | 798 | 8.75 | ||||||||||||||||||||||
| Rivergate Shopping Center | Macon, GA | 23 | 193,960 | 85.5 | % | 85.5 | % | 165,788 | 2,397 | 14.46 | ||||||||||||||||||||||
| Sangaree Plaza | Summerville, SC | 10 | 66,948 | 100.0 | % | 100.0 | % | 66,948 | 716 | 10.70 | ||||||||||||||||||||||
| Shoppes at Myrtle Park | Bluffton, SC | 12 | 56,601 | 95.5 | % | 93.6 | % | 52,980 | 612 | 11.55 | ||||||||||||||||||||||
| 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 | 1,114 | 10.02 | ||||||||||||||||||||||
| Surrey Plaza | Hawkinsville, GA | 4 | 42,680 | 100.0 | % | 100.0 | % | 42,680 | 258 | 6.05 | ||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 15 | ||||
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 | 141,580 | 98.9 | % | 66.7 | % | 94,380 | $ | 933 | $ | 9.89 | ||||||||||||||||||||
| Tri-County Plaza | Royston, GA | 8 | 67,577 | 92.0 | % | 92.0 | % | 62,177 | 445 | 7.15 | ||||||||||||||||||||||
| Tuckernuck | Richmond, VA | 17 | 93,440 | 98.6 | % | 98.6 | % | 92,173 | 1,040 | 11.28 | ||||||||||||||||||||||
| Twin City Commons | Batesburg-Leesville, SC | 5 | 47,680 | 100.0 | % | 100.0 | % | 47,680 | 488 | 10.23 | ||||||||||||||||||||||
| Village of Martinsville | Martinsville, VA | 22 | 288,254 | 100.0 | % | 100.0 | % | 288,254 | 2,364 | 8.20 | ||||||||||||||||||||||
| Waterway Plaza | Little River, SC | 10 | 49,750 | 100.0 | % | 100.0 | % | 49,750 | 503 | 10.12 | ||||||||||||||||||||||
| Westland Square | West Columbia, SC | 10 | 62,735 | 75.5 | % | 75.5 | % | 47,390 | 424 | 8.94 | ||||||||||||||||||||||
| Winslow Plaza | Sicklerville, NJ | 18 | 40,695 | 100.0 | % | 100.0 | % | 40,695 | 658 | 16.17 | ||||||||||||||||||||||
| WHLR TOTAL | 773 | 5,309,977 | 95.8 | % | 94.5 | % | 5,017,215 | $ | 49,126 | $ | 9.79 | |||||||||||||||||||||
| CDR | ||||||||||||||||||||||||||||||||
| Brickyard Plaza | Berlin, CT | 9 | 227,598 | 97.8 | % | 97.0 | % | 220,821 | 1,976 | 8.95 | ||||||||||||||||||||||
| Carll's Corner | Bridgeton, NJ | 5 | 129,582 | 27.5 | % | 21.1 | % | 27,324 | 400 | 14.63 | ||||||||||||||||||||||
| Coliseum Marketplace | Hampton, VA | 10 | 106,648 | 100.0 | % | 100.0 | % | 106,648 | 1,162 | 10.89 | ||||||||||||||||||||||
| Fairview Commons | New Cumberland, PA | 10 | 52,964 | 77.5 | % | 77.5 | % | 41,064 | 449 | 10.93 | ||||||||||||||||||||||
| Fieldstone Marketplace | New Bedford, MA | 9 | 193,970 | 70.9 | % | 70.9 | % | 137,569 | 1,636 | 11.90 | ||||||||||||||||||||||
| 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 | 2,611 | 13.08 | ||||||||||||||||||||||
| 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 | 29 | 264,068 | 83.9 | % | 83.9 | % | 221,515 | 2,224 | 10.04 | ||||||||||||||||||||||
| Pine Grove Plaza | Brown Mills, NJ | 13 | 79,306 | 78.1 | % | 78.1 | % | 61,966 | 736 | 11.87 | ||||||||||||||||||||||
| South Philadelphia | Philadelphia, PA | 10 | 221,511 | 90.1 | % | 71.8 | % | 159,131 | 1,445 | 9.08 | ||||||||||||||||||||||
| Southington Center | Southington, CT | 11 | 155,842 | 100.0 | % | 100.0 | % | 155,842 | 1,293 | 8.30 | ||||||||||||||||||||||
| Timpany Plaza | Gardner, MA | 14 | 182,799 | 63.3 | % | 63.3 | % | 115,735 | 1,116 | 9.64 | ||||||||||||||||||||||
| Trexler Mall | Trexlertown, PA | 23 | 336,687 | 98.2 | % | 98.2 | % | 330,634 | 3,687 | 11.15 | ||||||||||||||||||||||
| Washington Center Shoppes | Sewell, NJ | 28 | 157,300 | 94.0 | % | 94.0 | % | 147,856 | 1,814 | 12.27 | ||||||||||||||||||||||
| Webster Commons | Webster, MA | 9 | 98,984 | 100.0 | % | 100.0 | % | 98,984 | 1,219 | 12.32 | ||||||||||||||||||||||
| CDR TOTAL | 231 | 2,862,550 | 87.2 | % | 84.8 | % | 2,426,391 | $ | 24,934 | $ | 10.28 | |||||||||||||||||||||
| COMBINED TOTAL | 1,004 | 8,172,527 | 92.8 | % | 91.1 | % | 7,443,606 | $ | 74,060 | $ | 9.95 | |||||||||||||||||||||
(1) Reflects leases executed through March 31, 2023 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 3/31/2023 unless otherwise stated | 16 | ||||
Property Summary (continued)
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 17 | ||||
Top Ten Tenants by Annualized Base Rent
| Tenants | Category | 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 | |||||||||||||||||||||||||||||||||||
| Food Lion | Grocery | $ | 4,435 | 6.00 | % | 549,000 | 6.72 | % | $ | 8.08 | |||||||||||||||||||||||||||||||
Kroger Co (1) | Grocery | 2,097 | 2.84 | % | 239,000 | 2.92 | % | 8.77 | |||||||||||||||||||||||||||||||||
Dollar Tree (2) | Discount Retailer | 2,061 | 2.79 | % | 244,000 | 2.99 | % | 8.45 | |||||||||||||||||||||||||||||||||
| Piggly Wiggly | Grocery | 1,509 | 2.04 | % | 203,000 | 2.48 | % | 7.43 | |||||||||||||||||||||||||||||||||
| Planet Fitness | Gym | 1,497 | 2.03 | % | 140,000 | 1.71 | % | 10.69 | |||||||||||||||||||||||||||||||||
TJX Companies (4) | Discount Retailer | 1,186 | 1.61 | % | 195,000 | 2.39 | % | 6.08 | |||||||||||||||||||||||||||||||||
Lowes Foods (3) | Grocery | 1,181 | 1.60 | % | 130,000 | 1.59 | % | 9.08 | |||||||||||||||||||||||||||||||||
| Big Lots | Discount Retailer | 1,100 | 1.49 | % | 171,000 | 2.09 | % | 6.43 | |||||||||||||||||||||||||||||||||
| Kohl's | Discount Retailer | 1,031 | 1.40 | % | 147,000 | 1.80 | % | 7.01 | |||||||||||||||||||||||||||||||||
| Winn Dixie | Grocery | 984 | 1.33 | % | 134,000 | 1.64 | % | 7.34 | |||||||||||||||||||||||||||||||||
| $ | 17,081 | 23.13 | % | 2,152,000 | 26.33 | % | $ | 7.94 | |||||||||||||||||||||||||||||||||
(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 | — | 728,921 | 8.92 | % | — | % | $ | — | — | % | $ | — | ||||||||||||||||||||||||||||||||
| MTM | 16 | 62,983 | 0.77 | % | 0.85 | % | 827 | 1.12 | % | 13.13 | ||||||||||||||||||||||||||||||||||
| 2023 | 78 | 343,165 | 4.20 | % | 4.61 | % | 3,807 | 5.14 | % | 11.09 | ||||||||||||||||||||||||||||||||||
| 2024 | 163 | 858,092 | 10.50 | % | 11.53 | % | 9,183 | 12.40 | % | 10.70 | ||||||||||||||||||||||||||||||||||
| 2025 | 167 | 1,056,014 | 12.92 | % | 14.19 | % | 10,678 | 14.42 | % | 10.11 | ||||||||||||||||||||||||||||||||||
| 2026 | 155 | 907,527 | 11.10 | % | 12.19 | % | 9,955 | 13.44 | % | 10.97 | ||||||||||||||||||||||||||||||||||
| 2027 | 140 | 700,250 | 8.57 | % | 9.41 | % | 8,307 | 11.22 | % | 11.86 | ||||||||||||||||||||||||||||||||||
| 2028 | 95 | 1,183,267 | 14.48 | % | 15.9 | % | 9,937 | 13.42 | % | 8.40 | ||||||||||||||||||||||||||||||||||
| 2029 | 54 | 485,306 | 5.94 | % | 6.52 | % | 4,643 | 6.27 | % | 9.57 | ||||||||||||||||||||||||||||||||||
| 2030 | 34 | 531,752 | 6.51 | % | 7.14 | % | 3,915 | 5.29 | % | 7.36 | ||||||||||||||||||||||||||||||||||
| 2031 | 29 | 397,046 | 4.86 | % | 5.33 | % | 3,884 | 5.24 | % | 9.78 | ||||||||||||||||||||||||||||||||||
| 2032 & thereafter | 73 | 918,204 | 11.23 | % | 12.33 | % | 8,924 | 12.04 | % | 9.72 | ||||||||||||||||||||||||||||||||||
| Total | 1,004 | 8,172,527 | 100.00 | % | 100.00 | % | $ | 74,060 | 100.00 | % | $ | 9.95 | ||||||||||||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 18 | ||||
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 | — | 228,444 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | 1 | 20,300 | 117 | 3.79 | % | 5.76 | — | — | — | — | % | — | |||||||||||||||||||||||
| 2023 | 1 | 33,227 | 673 | 21.79 | % | 20.25 | 4 | 127,516 | 773 | 2.63 | % | 6.06 | |||||||||||||||||||||||
| 2024 | 1 | 32,000 | 125 | 4.05 | % | 3.91 | 10 | 417,569 | 3,308 | 11.27 | % | 7.92 | |||||||||||||||||||||||
| 2025 | 2 | 57,297 | 455 | 14.73 | % | 7.94 | 13 | 520,075 | 3,699 | 12.60 | % | 7.11 | |||||||||||||||||||||||
| 2026 | 1 | 20,152 | 97 | 3.14 | % | 4.81 | 14 | 456,864 | 3,822 | 13.02 | % | 8.37 | |||||||||||||||||||||||
| 2027 | 3 | 69,819 | 629 | 20.36 | % | 9.01 | 5 | 149,546 | 1,221 | 4.16 | % | 8.16 | |||||||||||||||||||||||
| 2028 | — | — | — | — | % | — | 21 | 868,983 | 5,978 | 20.37 | % | 6.88 | |||||||||||||||||||||||
| 2029 | 3 | 71,939 | 772 | 24.99 | % | 10.73 | 6 | 174,928 | 1,014 | 3.46 | % | 5.80 | |||||||||||||||||||||||
| 2030 | — | — | — | — | % | — | 8 | 452,724 | 2,498 | 8.51 | % | 5.52 | |||||||||||||||||||||||
| 2031 | 1 | 20,858 | 60 | 1.94 | % | 2.88 | 5 | 250,354 | 2,304 | 7.85 | % | 9.20 | |||||||||||||||||||||||
| 2032+ | 2 | 66,189 | 161 | 5.21 | % | 2.43 | 17 | 671,752 | 4,729 | 16.13 | % | 7.04 | |||||||||||||||||||||||
| Total | 15 | 620,225 | $ | 3,089 | 100.00 | % | $ | 7.88 | 103 | 4,090,311 | $ | 29,346 | 100.00 | % | $ | 7.17 | |||||||||||||||||||
(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 | — | 500,477 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | 13 | 32,433 | 464 | 2.58 | % | 14.31 | 2 | 10,250 | 246 | 1.04 | % | — | |||||||||||||||||||||||
| 2023 | 47 | 120,227 | 1,486 | 8.27 | % | 12.36 | 26 | 62,195 | 875 | 3.70 | % | 14.07 | |||||||||||||||||||||||
| 2024 | 97 | 201,112 | 2,822 | 15.71 | % | 14.03 | 55 | 207,411 | 2,928 | 12.37 | % | 14.12 | |||||||||||||||||||||||
| 2025 | 95 | 237,212 | 3,129 | 17.42 | % | 13.19 | 57 | 241,430 | 3,395 | 14.35 | % | 14.06 | |||||||||||||||||||||||
| 2026 | 81 | 204,347 | 2,818 | 15.69 | % | 13.79 | 59 | 226,164 | 3,218 | 13.60 | % | 14.23 | |||||||||||||||||||||||
| 2027 | 80 | 224,501 | 3,401 | 18.94 | % | 15.15 | 52 | 256,384 | 3,056 | 12.91 | % | 11.92 | |||||||||||||||||||||||
| 2028 | 36 | 112,170 | 1,542 | 8.59 | % | 13.75 | 38 | 202,114 | 2,417 | 10.21 | % | 11.96 | |||||||||||||||||||||||
| 2029 | 15 | 39,975 | 482 | 2.68 | % | 12.06 | 30 | 198,464 | 2,375 | 10.04 | % | 11.97 | |||||||||||||||||||||||
| 2030 | 13 | 28,738 | 516 | 2.87 | % | 17.96 | 13 | 50,290 | 901 | 3.81 | % | 17.92 | |||||||||||||||||||||||
| 2031 | 5 | 12,623 | 187 | 1.04 | % | 14.81 | 18 | 113,211 | 1,333 | 5.63 | % | 11.77 | |||||||||||||||||||||||
| 2032+ | 22 | 68,908 | 1,114 | 6.21 | % | 16.17 | 32 | 111,355 | 2,920 | 12.34 | % | 26.22 | |||||||||||||||||||||||
| Total | 504 | 1,782,723 | $ | 17,961 | 100.00 | % | $ | 14.01 | 382 | 1,679,268 | $ | 23,664 | 100.00 | % | $ | 14.09 | |||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2023 unless otherwise stated | 19 | ||||
Leasing Summary
| WHLR Leasing Renewals and New Leases | | |||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
Renewals(1): | |||||||||||||||||||||||
| Leases renewed with rate increase (sq feet) | 237,555 | 66,348 | |||||||||||||||||||||
| Leases renewed with rate decrease (sq feet) | — | 5,328 | |||||||||||||||||||||
| Leases renewed with no rate change (sq feet) | 25,232 | 20,329 | |||||||||||||||||||||
| Total leases renewed (sq feet) | 262,787 | 92,005 | |||||||||||||||||||||
| Leases renewed with rate increase (count) | 35 | 20 | |||||||||||||||||||||
| Leases renewed with rate decrease (count) | — | 2 | |||||||||||||||||||||
| Leases renewed with no rate change (count) | 3 | 12 | |||||||||||||||||||||
| Total leases renewed (count) | 38 | 34 | |||||||||||||||||||||
| Option exercised (count) | 7 | 2 | |||||||||||||||||||||
| Weighted average on rate increases (per sq foot) | $ | 0.73 | $ | 1.15 | |||||||||||||||||||
| Weighted average on rate decreases (per sq foot) | $ | — | $ | (2.13) | |||||||||||||||||||
| Weighted average rate on all renewals (per sq foot) | $ | 0.66 | $ | 0.71 | |||||||||||||||||||
| Weighted average change over prior rates | 6.89 | % | 5.86 | % | |||||||||||||||||||
New Leases(1) (2): | |||||||||||||||||||||||
| New leases (sq feet) | 49,220 | 68,919 | |||||||||||||||||||||
| New leases (count) | 9 | 23 | |||||||||||||||||||||
| Weighted average rate (per sq foot) | $ | 16.14 | $ | 13.09 | |||||||||||||||||||
(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 3/31/2023 unless otherwise stated | 20 | ||||
Leasing Summary (continued)
| CDR Leasing Renewals and New Leases | | |||||||||||||
| Three Months Ended March 31, | |||||
| 2023 | |||||
Renewals(1): | |||||
| Leases renewed with rate increase (sq feet) | 56,171 | ||||
| Leases renewed with rate decrease (sq feet) | — | ||||
| Leases renewed with no rate change (sq feet) | 2,000 | ||||
| Total leases renewed (sq feet) | 58,171 | ||||
| Leases renewed with rate increase (count) | 5 | ||||
| Leases renewed with rate decrease (count) | — | ||||
| Leases renewed with no rate change (count) | 1 | ||||
| Total leases renewed (count) | 6 | ||||
| Option exercised (count) | 2 | ||||
| Weighted average on rate increases (per sq foot) | $ | 0.42 | |||
| Weighted average on rate decreases (per sq foot) | $ | — | |||
| Weighted average rate on all renewals (per sq foot) | $ | 0.40 | |||
| Weighted average change over prior rates | 3.96 | % | |||
New Leases(1) (2): | |||||
| New leases (sq feet) | 42,400 | ||||
| New leases (count) | 3 | ||||
| Weighted average rate (per sq foot) | $ | 13.07 | |||
(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 3/31/2023 unless otherwise stated | 21 | ||||
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 3/31/2023 unless otherwise stated | 22 | ||||
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 charges, 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 3/31/2023 unless otherwise stated | 23 | ||||