Wheeler Real Estate Investment Trust, Inc 8-K, filed May 11, 2022
Wheeler Real Estate Investment Trust, Inc. (WHLR)
8-K
2022-05-11
For: 2022-05-11
View Original
Added on
April 05, 2026
About this 8-K
Wheeler Real Estate Investment Trust, Inc filed this 8-K on May 11, 2022.
Items reported
- Item 2.02: Financial results
- 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 11, 2022
(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 11, 2022, 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, 2022. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
In addition, the Company has posted supplemental information regarding the Company’s financial and operating results for the three months ended March 31, 2022 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 Financial Statements and Exhibits
(d) Exhibits
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 11, 2022
Exhibit 99.1
WHEELER REAL ESTATE INVESTMENT TRUST, INC. ANNOUNCES
FIRST QUARTER 2022 FINANCIAL AND OPERATING RESULTS
Virginia Beach, VA – May 11, 2022 – 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, 2022 on Form 10-Q. In addition, the Company has posted to its website supplemental information regarding WHLR's financial and operating results for the three months ended March 31, 2022. 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, 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. For more information on the Company, please visit www.whlr.us.
Exhibit 99.2
SUPPLEMENTAL
FINANCIAL
INFORMATION
| For the three months ended March 31, 2022 | ||
| Table of Contents | |||||
| Page | |||||
| Company Overview | |||||
| Financial and Portfolio Overview | |||||
| Financial and Operating Results | |||||
| Financial Summary | |||||
| Consolidated Balance Sheets | |||||
| Consolidated Statements of Operations | |||||
| Reconciliation of Non-GAAP Measures | |||||
| Debt Summary | |||||
| Portfolio Summary | |||||
| Property Summary | |||||
| Top Ten Tenants by Annualized Base Rent and Lease Expiration Schedule | |||||
| Leasing Summary | |||||
| Definitions | |||||
Forward-Looking Statements
This document contains forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor. When used in this presentation, the words "continue," "may," "approximately," "potentially," or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks include, without limitation: the ongoing adverse effect and the ultimate duration of the COVID-19 pandemic, and federal, state, and/or local regulatory guidelines and private business actions to control it, on the financial condition, operating results and cash flows of Wheeler Real Estate Investment Trust, Inc. (the "Company" or "WHLR"), the Company’s tenants and their customers, the use of and demand for retail space, the real estate market in which the Company operates, the U.S. economy, the global economy and the financial markets; the level of rental revenue we achieve from our assets and our ability to collect rents; the state of the U.S. economy generally, or specifically in the Southeast, Mid-Atlantic and Northeast where our properties are geographically concentrated; consumer spending and confidence trends; tenant bankruptcies; availability, terms and deployment of capital; general volatility of the capital markets and the market price of our common and preferred stock; the degree and nature of our competition; changes in governmental regulations, accounting rules, tax rates and similar matters; litigation risks; lease-up risks; increases in the Company’s financing and other costs as a result of changes in interest rates and other factors, including the discontinuation of the London Interbank Offered Rate (“LIBOR”); 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”) in light of economic, market, legal, tax and other considerations; 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.
WHLR | Financial & Operating Data | 2 | ||||
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 | 3 | ||||
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, 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% Senior Subordinated Convertible Notes due 2031, trade publicly on NASDAQ under the symbols “WHLR”, “WHLRP”, "WHLRD", and "WHLRL", 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 - CEO and President | ||||||||
| 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 | ||||||||
| investorrelations@whlr.us Office: (757) 627-9088 | ||||||||
| Stock Transfer Agent and Registrar | ||||||||
| Computershare Trust Company, N.A. 250 Royall Street Canton, MA 02021 www.computershare.com | ||||||||
WHLR | Financial & Operating Data | 4 | ||||
Financial and Portfolio Overview
For the Three Months Ended March 31, 2022
Financial Results | |||||
| Net loss attributable to Wheeler REIT common stockholders (in 000s) | $ | (6,844) | |||
| Net loss per basic and diluted shares | $ | (0.70) | |||
Funds from operations available to common stockholders and Operating Partnership (OP) unitholders (FFO) (in 000s) (1) | $ | (2,403) | |||
| FFO per common share and OP unit | $ | (0.24) | |||
Adjusted FFO (AFFO) (in 000s) (1) | $ | 2,340 | |||
| AFFO per common share and OP unit | $ | 0.24 | |||
Assets and Leverage | |||||
| Investment Properties, net of $70.4 million accumulated depreciation (in 000s) | $ | 384,327 | |||
| Cash and Cash Equivalents (in 000s) | $ | 21,109 | |||
| Total Assets (in 000s) | $ | 460,036 | |||
| Debt to Total Assets | 74.24 | % | |||
| Debt to Gross Asset Value | 60.50 | % | |||
Market Capitalization | |||||
| Common shares outstanding | 9,723,093 | ||||
| OP units outstanding | 215,343 | ||||
| Total common shares and OP units | 9,938,436 | ||||
| Shares Outstanding at March 31, 2022 | First Quarter stock price range | Stock price as of March 31, 2022 | |||||||||||||||
| Common Stock | 9,723,093 | $1.51-$2.36 | $ | 2.30 | |||||||||||||
| Series B preferred shares | 1,868,343 | $6.08-$7.88 | $ | 6.89 | |||||||||||||
| Series D preferred shares | 3,152,392 | $12.81-$15.55 | $ | 14.40 | |||||||||||||
| Total debt (in 000s) | 341,548 | ||||
| Common Stock market capitalization (as of March 31, 2022 closing stock price, in 000s) | 22,363 | ||||
Portfolio Summary | |||||
| Total Leasable Area (GLA) in sq. ft. | 5,391,432 | ||||
| Occupancy Rate | 93.7 | % | |||
Leased Rate (2) | 95.8 | % | |||
| Annualized Base Rent (in 000s) | $ | 48,853 | |||
| Total number of leases signed or renewed during the first quarter of 2022 | 57 | ||||
| Total sq. ft. leases signed or renewed during the first quarter of 2022 | 160,924 | ||||
(1) See page 20 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) Reflects leases executed through April 4, 2022 that commence subsequent to the end of current period.
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 5 | ||||
Financial and Operating Results
Today, WHLR reported its financial and operating results for the three months ended March 31, 2022. For the three months ended March 31, 2022 and 2021, WHLR's net loss attributable to WHLR's common stock, $0.01 par value per share ("Common Stock") stockholders was ($0.70) per share and ($0.20) per share, respectively.
2022 FIRST QUARTER HIGHLIGHTS
(All comparisons are to the same prior year period unless otherwise noted)
LEASING
•The Company's real estate portfolio was 95.8% leased as of March 31, 2022, a 160 basis point increase from 94.2% December 31, 2021.
•The Company's real estate portfolio was 93.7% occupied as of March 31, 2022, a 210 basis point increase from 91.6% at December 31, 2021, with one anchor tenant accounting for 117 basis points of the increase.
•The Company invested $1.5 million in capital expenditures into the properties during the three months ended March 31, 2022.
•Quarter-To-Date Leasing Activity
•Executed 34 lease renewals totaling 92,005 square feet at a weighted-average increase of $1.15 per square foot, representing an increase of 5.86% over in-place rental rates.
•Signed 23 new leases totaling 68,919 square feet with a weighted-average rental rate of $13.09 per square foot.
•The Company’s gross leasable area ("GLA"), which is subject to leases that expire over the next nine months and includes month-to-month leases, increased to approximately 5.01% at March 31, 2022, compared to 4.43% at March 31, 2021. At March 31, 2022, 49.21% of this expiring GLA is subject to renewal options (a lease expiration schedule can be found on page 17 and provides additional details on the Company's leases).
•As of March 31, 2022, the Company signed leases representing $930 thousand of annualized base rent ("ABR"). Rent will commence on these leases within the next twelve months.
OPERATIONS
•Total revenue increased by 5.22% or $769 thousand primarily due to changes described below in the same store section, partially offset by the decrease from sold properties.
•Total operating expenses increased by 5.97% or $608 thousand primarily a result of an increase in impairment expense and higher property operating expenses, partially offset by a decrease in corporate general and administrative ("CG&A") expense and depreciation and amortization. The decrease in CG&A expense is primarily due to $357 thousand decrease in professional fees associated lower legal fees and $152 thousand decrease in capital and debt financing costs partially offset by an increase in compensation and benefits.
FINANCIAL
•Funds from operations ("FFO") of ($2.4) million, or ($0.24) 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 $(2.6) million, or ($0.26) per share.
•Adjusted Funds from Operations ("AFFO") of $0.24 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P., as compared to $0.12 per share.
SAME STORE
•Same store Net Operating Income ("NOI") increased by 4.17% and by 6.13% on a cash basis. Same store results were impacted by a 6.39% increase in revenue due to increased occupancy. Additionally, same store property expenses increased by 11.01% primarily driven by increases in grounds and landscaping.
CAPITAL MARKETS
•Recognized a non-operating loss of $4.0 million due to the change in fair market value of the derivative liabilities. The largest impact on the derivative liabilities' valuation is a result of increased fair market value of the Company's securities associated with each derivative and the 2021 features on Convertible Notes.
•At March 31, 2022, assets held for sale included Harbor Pointe Associates, LLC, which holds an approximate 5 acre land parcel ("Harbor Pointe Land Parcel").
•Recognized $660 thousand in impairment expense on Harbor Pointe Land Parcel.
•Loans payable decreased $4.7 million and were impacted by:
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 6 | ||||
•$3.1 million paydown with the sale of Walnut Plaza and final principal payment; and
•$1.6 million monthly principal payments.
DISPOSITIONS
•On January 11, 2022, the Company sold Walnut Hill Plaza for $1.9 million, generating a loss of $15 thousand and net proceeds of $1.8 million, which were used to pay down the loan collateralized by the property.
OTHER
•The Company recognized non-operating expenses of $691 thousand due to legal settlement costs.
•On March 2, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Cedar Realty Trust, Inc., Cedar Realty Trust Partnership, L.P., WHLR Merger Sub Inc., and WHLR OP Merger Sub LLC, pursuant to which the Company agreed to acquire Cedar, including 19 of its shopping center assets, in an all-cash merger transaction (the “Cedar Acquisition”). Cedar Acquisition is conditioned on, among other things, the completion of Cedar’s previously announced sale of 33 grocery-anchored shopping centers and sale of certain redevelopment assets.
The Cedar Acquisition is expected to increase the Company’s presence in the Northeast, and create a total operating portfolio of 76 shopping centers (the majority of which will be grocery-anchored), consisting of approximately 8.3 million square feet of gross leasable area.
BALANCE SHEET
•Cash and cash equivalents totaled $21.1 million, compared to $22.9 million at December 31, 2021.
•Restricted cash totaled $15.7 million, compared to $17.5 million at December 31, 2021. The funds at March 31, 2022 are held in lender reserves primarily for the purpose of tenant improvements, lease commissions, real estate taxes and insurance expenses.
•Debt totaled $341.5 million, compared to $346.3 million at December 31, 2021.
•WHLR's weighted-average interest rate on property level debt was 4.67% with a term of 3.27 years, compared to 4.68% with a term of 3.50 years at December 31, 2021. WHLR's weighted-average interest rate on all debt was 4.89% with a term of 3.90 years, compared to 4.90% with a term of 4.13 years at December 31, 2021.
•Net investment properties totaled $384.3 million compared to $386.7 million as of December 31, 2021.
DIVIDENDS
•The total cumulative dividends in arrears for Series D Preferred (per share $8.97) is $28.3 million, of which $2.1 million is attributable to the three months ended March 31, 2022.
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 3/31/2022 unless otherwise stated | 7 | ||||
Consolidated Balance Sheets
$ in 000s, except par value and share data
| March 31, 2022 | December 31, 2021 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS: | |||||||||||
| Investment properties, net | $ | 384,327 | $ | 386,730 | |||||||
| Cash and cash equivalents | 21,109 | 22,898 | |||||||||
| Restricted cash | 15,709 | 17,521 | |||||||||
| Rents and other tenant receivables, net | 8,839 | 9,233 | |||||||||
| Assets held for sale | 519 | 2,047 | |||||||||
| Above market lease intangibles, net | 2,185 | 2,424 | |||||||||
| Operating lease right-of-use assets | 12,381 | 12,455 | |||||||||
| Deferred costs and other assets, net | 14,967 | 11,973 | |||||||||
| Total Assets | $ | 460,036 | $ | 465,281 | |||||||
| LIABILITIES: | |||||||||||
| Loans payable, net | $ | 331,143 | $ | 333,283 | |||||||
| Liabilities associated with assets held for sale | — | 3,381 | |||||||||
| Below market lease intangibles, net | 3,180 | 3,397 | |||||||||
| Derivative liabilities | 8,738 | 4,776 | |||||||||
| Operating lease liabilities | 12,999 | 13,040 | |||||||||
| Accounts payable, accrued expenses and other liabilities | 12,201 | 11,054 | |||||||||
| Total Liabilities | 368,261 | 368,931 | |||||||||
Series D Cumulative Convertible Preferred Stock (no par value, 6,000,000 shares authorized, 3,152,392 shares issued and outstanding; $107.09 million and $104.97 million aggregate liquidation value, respectively) | 94,791 | 92,548 | |||||||||
| EQUITY: | |||||||||||
Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding) | 453 | 453 | |||||||||
Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 1,868,343 and 1,872,448 shares issued and outstanding, respectively; $46.71 million and $46.81 million aggregate liquidation preference) | 41,121 | 41,189 | |||||||||
Common Stock ($0.01 par value, 200,000,000 shares authorized 9,723,093 and 9,720,532 shares issued and outstanding, respectively) | 97 | 97 | |||||||||
| Additional paid-in capital | 234,319 | 234,229 | |||||||||
| Accumulated deficit | (280,951) | (274,107) | |||||||||
| Total Stockholders’ Equity | (4,961) | 1,861 | |||||||||
| Noncontrolling interests | 1,945 | 1,941 | |||||||||
| Total Equity | (3,016) | 3,802 | |||||||||
| Total Liabilities and Equity | $ | 460,036 | $ | 465,281 | |||||||
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 8 | ||||
Consolidated Statements of Operations
$ in 000s, except share and per share data
| Three Months Ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| REVENUE: | |||||||||||
| Rental revenues | $ | 15,332 | $ | 14,656 | |||||||
| Other revenues | 165 | 72 | |||||||||
| Total Revenue | 15,497 | 14,728 | |||||||||
| OPERATING EXPENSES: | |||||||||||
| Property operations | 5,250 | 4,884 | |||||||||
| Depreciation and amortization | 3,616 | 3,716 | |||||||||
| Impairment of assets held for sale | 660 | — | |||||||||
| Corporate general & administrative | 1,264 | 1,582 | |||||||||
| Total Operating Expenses | 10,790 | 10,182 | |||||||||
| (Loss) gain on disposal of properties | (15) | 176 | |||||||||
| Operating Income | 4,692 | 4,722 | |||||||||
| Interest income | 13 | — | |||||||||
| Interest expense | (4,628) | (8,961) | |||||||||
| Net changes in fair value of derivative liabilities | (3,962) | (347) | |||||||||
| Other income | — | 552 | |||||||||
| Other expense | (691) | — | |||||||||
| Net Loss | (4,576) | (4,034) | |||||||||
| Less: Net income attributable to noncontrolling interests | 4 | 15 | |||||||||
| Net Loss Attributable to Wheeler REIT | (4,580) | (4,049) | |||||||||
| Preferred Stock dividends - undeclared | (2,264) | (2,273) | |||||||||
| Deemed contribution related to preferred stock redemption | — | 4,389 | |||||||||
| Net Loss Attributable to Wheeler REIT Common Stockholders | $ | (6,844) | $ | (1,933) | |||||||
| Loss per share: | |||||||||||
| Basic and Diluted | $ | (0.70) | $ | (0.20) | |||||||
| Weighted-average number of shares: | |||||||||||
| Basic and Diluted | 9,720,589 | 9,704,638 | |||||||||
WHLR | Financial & Operating Data | as of 3/31/2022 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, | |||||||||||||||||
| 2022 | 2021 | ||||||||||||||||
| Net Loss | $ | (4,576) | $ | (4,034) | |||||||||||||
| Depreciation and amortization of real estate assets | 3,616 | 3,716 | |||||||||||||||
| Impairment of assets held for sale | 660 | — | |||||||||||||||
| Loss (gain) on disposal of properties | 15 | (176) | |||||||||||||||
| FFO | (285) | (494) | |||||||||||||||
Preferred stock dividends - undeclared (3) | (2,264) | (2,273) | |||||||||||||||
| Preferred stock accretion adjustments | 146 | 162 | |||||||||||||||
| FFO available to common stockholders and common unitholders | (2,403) | (2,605) | |||||||||||||||
| Capital related costs | (24) | 128 | |||||||||||||||
Other non-recurring and non-cash expenses (2) | 701 | 145 | |||||||||||||||
| Net changes in fair value of derivative liabilities | 3,962 | 347 | |||||||||||||||
| Straight-line rental revenue, net straight-line expense | (69) | (214) | |||||||||||||||
| Loan cost amortization | 420 | 3,642 | |||||||||||||||
| Above (below) market lease amortization | 23 | (12) | |||||||||||||||
| Recurring capital expenditures and tenant improvement reserves | (270) | (276) | |||||||||||||||
| AFFO | $ | 2,340 | $ | 1,155 | |||||||||||||
| Weighted Average Common Shares | 9,720,589 | 9,704,638 | |||||||||||||||
| Weighted Average Common Units | 215,343 | 223,665 | |||||||||||||||
| Total Common Shares and Units | 9,935,932 | 9,928,303 | |||||||||||||||
| FFO per Common Share and Common Units | $ | (0.24) | $ | (0.26) | |||||||||||||
| AFFO per Common Share and Common Units | $ | 0.24 | $ | 0.12 | |||||||||||||
(1) See page 20 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, 2022.
(3) Restated the 2021 values as a result of the common stockholders of the Company vote to amend the Company’s Charter to remove the cumulative dividend rights of the Series A Preferred and Series B Preferred on November 3, 2021.
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 10 | ||||
Reconciliation of Non-GAAP Measures (continued)
Property Net Operating Income (1)
$ in 000s
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
| Same Store | Non-same Store | Total | |||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
| Net Loss | $ | (4,539) | $ | (3,210) | $ | (37) | $ | (824) | $ | (4,576) | $ | (4,034) | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Other expense | 691 | — | — | — | 691 | — | |||||||||||||||||||||||||||||
| Net changes in fair value of derivative liabilities | 3,962 | 347 | — | — | 3,962 | 347 | |||||||||||||||||||||||||||||
| Interest expense | 4,616 | 8,059 | 12 | 902 | 4,628 | 8,961 | |||||||||||||||||||||||||||||
| Interest income | (13) | — | — | — | (13) | — | |||||||||||||||||||||||||||||
| Loss (gain) on disposal of properties | — | — | 15 | (176) | 15 | (176) | |||||||||||||||||||||||||||||
| Corporate general & administrative | 1,257 | 1,540 | 7 | 42 | 1,264 | 1,582 | |||||||||||||||||||||||||||||
| Impairment of assets held for sale | 660 | — | — | — | 660 | — | |||||||||||||||||||||||||||||
| Depreciation and amortization | 3,616 | 3,661 | — | 55 | 3,616 | 3,716 | |||||||||||||||||||||||||||||
| Other non-property revenue | (8) | (565) | — | — | (8) | (565) | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 10,242 | $ | 9,832 | $ | (3) | $ | (1) | $ | 10,239 | $ | 9,831 | |||||||||||||||||||||||
| Property revenues | $ | 15,486 | $ | 14,556 | $ | 3 | $ | 159 | $ | 15,489 | $ | 14,715 | |||||||||||||||||||||||
| Property expenses | 5,244 | 4,724 | 6 | 160 | 5,250 | 4,884 | |||||||||||||||||||||||||||||
| Property Net Operating Income | $ | 10,242 | $ | 9,832 | $ | (3) | $ | (1) | $ | 10,239 | $ | 9,831 | |||||||||||||||||||||||
(1) See page 21 for the Company's definition of this non-GAAP measurement and reasons for using it.
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 11 | ||||
Reconciliation of Non-GAAP Measures (continued)
EBITDA (4)
$ in 000s
| Three Months Ended March 31, | |||||||||||||||||
| 2022 | 2021 | ||||||||||||||||
Net Loss | $ | (4,576) | $ | (4,034) | |||||||||||||
Add back: | Depreciation and amortization (1) | 3,639 | 3,704 | ||||||||||||||
Interest expense (2) | 4,628 | 8,961 | |||||||||||||||
EBITDA | 3,691 | 8,631 | |||||||||||||||
| Adjustments for items affecting comparability: | |||||||||||||||||
Capital related costs | (24) | 128 | |||||||||||||||
| Change in FMV of derivative liabilities | 3,962 | 347 | |||||||||||||||
Other non-recurring and non-cash expenses (3) | 691 | (552) | |||||||||||||||
Impairment of assets held for sale | 660 | — | |||||||||||||||
Loss (gain) on disposal of properties | 15 | (176) | |||||||||||||||
Adjusted EBITDA | $ | 8,995 | $ | 8,378 | |||||||||||||
(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 Quarterly Report on Form 10-Q for the period ended March 31, 2022.
(4) See page 20 for the Company's definition of this non-GAAP measurement and reasons for using it.
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 12 | ||||
Debt Summary
$ in 000s
Loans Payable: $341.55 million
Weighted Average Interest Rate: 4.89%
| Property/Description | Monthly Payment | Interest Rate | Maturity | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
| Litchfield Market Village | $ | 46,057 | 5.50 | % | November 2022 | $ | 7,274 | $ | 7,312 | |||||||||||||||||||||||
| Twin City Commons | $ | 17,827 | 4.86 | % | January 2023 | 2,824 | 2,843 | |||||||||||||||||||||||||
| New Market | $ | 48,747 | 5.65 | % | June 2023 | 6,233 | 6,291 | |||||||||||||||||||||||||
| Benefit Street Note (3) | $ | 53,185 | 5.71 | % | June 2023 | 6,853 | 6,914 | |||||||||||||||||||||||||
| Deutsche Bank Note (2) | $ | 33,340 | 5.71 | % | July 2023 | 5,466 | 5,488 | |||||||||||||||||||||||||
| JANAF | $ | 333,159 | 4.49 | % | July 2023 | 46,592 | 47,065 | |||||||||||||||||||||||||
| First National Bank (6) (7) | $ | 24,656 | LIBOR + 350 basis points | August 2023 | 723 | 789 | ||||||||||||||||||||||||||
| Lumber River (7) | $ | 10,723 | LIBOR + 350 basis points | September 2023 | 1,277 | 1,296 | ||||||||||||||||||||||||||
| Tampa Festival | $ | 50,797 | 5.56 | % | September 2023 | 7,708 | 7,753 | |||||||||||||||||||||||||
| Forrest Gallery | $ | 50,973 | 5.40 | % | September 2023 | 8,016 | 8,060 | |||||||||||||||||||||||||
| South Carolina Food Lions Note (5) | $ | 68,320 | 5.25 | % | January 2024 | 11,201 | 11,259 | |||||||||||||||||||||||||
| JANAF Bravo | $ | 35,076 | 5.00 | % | May 2024 | 5,905 | 5,936 | |||||||||||||||||||||||||
| Cypress Shopping Center | $ | 34,360 | 4.70 | % | July 2024 | 5,999 | 6,031 | |||||||||||||||||||||||||
| Port Crossing | $ | 34,788 | 4.84 | % | August 2024 | 5,744 | 5,778 | |||||||||||||||||||||||||
| Freeway Junction | $ | 41,798 | 4.60 | % | September 2024 | 7,391 | 7,431 | |||||||||||||||||||||||||
| Harrodsburg Marketplace | $ | 19,112 | 4.55 | % | September 2024 | 3,247 | 3,267 | |||||||||||||||||||||||||
| Bryan Station | $ | 23,489 | 4.52 | % | November 2024 | 4,203 | 4,226 | |||||||||||||||||||||||||
| Crockett Square | Interest only | 4.47 | % | December 2024 | 6,338 | 6,338 | ||||||||||||||||||||||||||
| Pierpont Centre | $ | 39,435 | 4.15 | % | February 2025 | 7,825 | 7,861 | |||||||||||||||||||||||||
| Shoppes at Myrtle Park | $ | 33,180 | 4.45 | % | February 2025 | 5,721 | 5,757 | |||||||||||||||||||||||||
| Folly Road | $ | 41,482 | 4.65 | % | March 2025 | 7,020 | 7,063 | |||||||||||||||||||||||||
| 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 | 4,464 | 4,483 | |||||||||||||||||||||||||
| JANAF BJ's | $ | 29,964 | 4.95 | % | January 2026 | 4,694 | 4,725 | |||||||||||||||||||||||||
| Tuckernuck | $ | 32,202 | 5.00 | % | March 2026 | 5,018 | 5,052 | |||||||||||||||||||||||||
| Chesapeake Square | $ | 23,857 | 4.70 | % | August 2026 | 4,170 | 4,192 | |||||||||||||||||||||||||
| Sangaree/Tri-County | $ | 32,329 | 4.78 | % | December 2026 | 6,153 | 6,176 | |||||||||||||||||||||||||
| Riverbridge | Interest only | 4.48 | % | December 2026 | 4,000 | 4,000 | ||||||||||||||||||||||||||
| Franklin Village | $ | 45,336 | 4.93 | % | January 2027 | 8,243 | 8,277 | |||||||||||||||||||||||||
| Village of Martinsville | $ | 89,664 | 4.28 | % | July 2029 | 15,486 | 15,589 | |||||||||||||||||||||||||
| Laburnum Square | Interest only | 4.28 | % | September 2029 | 7,665 | 7,665 | ||||||||||||||||||||||||||
| Rivergate (8) | $ | 100,222 | 4.25 | % | September 2031 | 18,325 | 18,430 | |||||||||||||||||||||||||
| Convertible Notes | Interest only | 7.00 | % | December 2031 | 33,000 | 33,000 | ||||||||||||||||||||||||||
| Walnut Hill Plaza | $ | 26,850 | 5.50 | % | March 2023 | — | 3,145 | |||||||||||||||||||||||||
Total Principal Balance (1) | 341,548 | 346,262 | ||||||||||||||||||||||||||||||
Unamortized debt issuance cost (1) | (10,405) | (9,834) | ||||||||||||||||||||||||||||||
| Total Loans Payable, including assets held for sale | 331,143 | 336,428 | ||||||||||||||||||||||||||||||
| Less loans payable on assets held for sale, net loan amortization costs | — | 3,145 | ||||||||||||||||||||||||||||||
| Total Loans Payable, net | $ | 331,143 | $ | 333,283 | ||||||||||||||||||||||||||||
(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 Surrey Plaza and Amscot Building.
(7) 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.
(8) October 2026 the interest rate changes to variable interest rate equal to the 5 Year U.S. Treasury Rate plus 2.70%, with a floor of 4.25%.
WHLR | Financial & Operating Data | as of 3/31/2022 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, 2022 | $ | 11,848 | 3.47 | % | ||||||||||
| December 31, 2023 | 86,294 | 25.27 | % | |||||||||||
| December 31, 2024 | 50,490 | 14.78 | % | |||||||||||
| December 31, 2025 | 92,016 | 26.94 | % | |||||||||||
| December 31, 2026 | 23,530 | 6.89 | % | |||||||||||
| December 31, 2027 | 8,711 | 2.55 | % | |||||||||||
| Thereafter | 68,659 | 20.10 | % | |||||||||||
| Total principal repayments and debt maturities | $ | 341,548 | 100.00 | % | ||||||||||
WHLR | Financial & Operating Data | as of 3/31/2022 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 | ||||||||||||||||||||||||
| Alex City Marketplace | Alexander City, AL | 19 | 151,843 | 100.0 | % | 100.0 | % | 151,843 | $ | 1,208 | $ | 7.96 | ||||||||||||||||||||
| Amscot Building | Tampa, FL | 1 | 2,500 | 100.0 | % | 100.0 | % | 2,500 | 83 | 33.00 | ||||||||||||||||||||||
| Beaver Ruin Village | Lilburn, GA | 28 | 74,038 | 94.1 | % | 90.0 | % | 66,613 | 1,156 | 17.35 | ||||||||||||||||||||||
| Beaver Ruin Village II | Lilburn, GA | 4 | 34,925 | 100.0 | % | 100.0 | % | 34,925 | 460 | 13.18 | ||||||||||||||||||||||
| Brook Run Shopping Center | Richmond, VA | 20 | 147,738 | 87.8 | % | 87.8 | % | 129,710 | 1,225 | 9.44 | ||||||||||||||||||||||
| Brook Run Properties (3) | Richmond, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Bryan Station | Lexington, KY | 10 | 54,277 | 100.0 | % | 100.0 | % | 54,277 | 617 | 11.37 | ||||||||||||||||||||||
| Butler Square | Mauldin, SC | 16 | 82,400 | 98.2 | % | 98.2 | % | 80,950 | 858 | 10.60 | ||||||||||||||||||||||
| Cardinal Plaza | Henderson, NC | 9 | 50,000 | 100.0 | % | 100.0 | % | 50,000 | 502 | 10.03 | ||||||||||||||||||||||
| Chesapeake Square | Onley, VA | 14 | 108,982 | 99.1 | % | 99.1 | % | 108,016 | 830 | 7.68 | ||||||||||||||||||||||
| Clover Plaza | Clover, SC | 10 | 45,575 | 100.0 | % | 100.0 | % | 45,575 | 379 | 8.32 | ||||||||||||||||||||||
| Courtland Commons (3) | Courtland, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Conyers Crossing | Conyers, GA | 14 | 170,475 | 100.0 | % | 100.0 | % | 170,475 | 953 | 5.59 | ||||||||||||||||||||||
| 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 | 452 | 13.62 | ||||||||||||||||||||||
| Darien Shopping Center | Darien, GA | 1 | 26,001 | 100.0 | % | 100.0 | % | 26,001 | 140 | 5.38 | ||||||||||||||||||||||
| Devine Street | Columbia, SC | 1 | 38,464 | 89.1 | % | 89.1 | % | 34,264 | 180 | 5.25 | ||||||||||||||||||||||
| Edenton Commons (3) | Edenton, NC | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Folly Road | Charleston, SC | 5 | 47,794 | 100.0 | % | 100.0 | % | 47,794 | 733 | 15.33 | ||||||||||||||||||||||
| Forrest Gallery | Tullahoma, TN | 27 | 214,451 | 91.1 | % | 80.8 | % | 173,289 | 1,293 | 7.46 | ||||||||||||||||||||||
| Fort Howard Shopping Center | Rincon, GA | 19 | 113,652 | 100.0 | % | 95.1 | % | 108,120 | 1,062 | 9.83 | ||||||||||||||||||||||
| Freeway Junction | Stockbridge, GA | 16 | 156,834 | 99.3 | % | 96.4 | % | 151,199 | 1,290 | 8.53 | ||||||||||||||||||||||
| Franklin Village | Kittanning, PA | 26 | 151,821 | 100.0 | % | 100.0 | % | 151,821 | 1,306 | 8.60 | ||||||||||||||||||||||
| Franklinton Square | Franklinton, NC | 15 | 65,366 | 100.0 | % | 100.0 | % | 65,366 | 592 | 9.06 | ||||||||||||||||||||||
| 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 | 718 | 7.70 | ||||||||||||||||||||||
| Harbor Point (3) | Grove, OK | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
| Harrodsburg Marketplace | Harrodsburg, KY | 8 | 60,048 | 91.0 | % | 91.0 | % | 54,648 | 450 | 8.24 | ||||||||||||||||||||||
| JANAF (4) | Norfolk, VA | 118 | 798,086 | 95.6 | % | 93.2 | % | 743,936 | 8,865 | 11.92 | ||||||||||||||||||||||
| Laburnum Square | Richmond, VA | 19 | 109,405 | 96.9 | % | 96.9 | % | 106,045 | 964 | 9.09 | ||||||||||||||||||||||
| Ladson Crossing | Ladson, SC | 16 | 52,607 | 100.0 | % | 100.0 | % | 52,607 | 539 | 10.26 | ||||||||||||||||||||||
| LaGrange Marketplace | LaGrange, GA | 12 | 76,594 | 84.3 | % | 84.3 | % | 64,600 | 358 | 5.54 | ||||||||||||||||||||||
| Lake Greenwood Crossing | Greenwood, SC | 8 | 43,618 | 100.0 | % | 100.0 | % | 43,618 | 363 | 8.32 | ||||||||||||||||||||||
| Lake Murray | Lexington, SC | 5 | 39,218 | 100.0 | % | 100.0 | % | 39,218 | 257 | 6.56 | ||||||||||||||||||||||
| Litchfield Market Village | Pawleys Island, SC | 22 | 86,740 | 98.8 | % | 97.1 | % | 84,237 | 980 | 11.63 | ||||||||||||||||||||||
| Lumber River Village | Lumberton, NC | 11 | 66,781 | 98.2 | % | 98.2 | % | 65,581 | 455 | 6.93 | ||||||||||||||||||||||
| Moncks Corner | Moncks Corner, SC | 1 | 26,800 | 100.0 | % | 100.0 | % | 26,800 | 330 | 12.31 | ||||||||||||||||||||||
| Nashville Commons | Nashville, NC | 11 | 56,100 | 100.0 | % | 92.0 | % | 51,600 | 585 | 11.34 | ||||||||||||||||||||||
| New Market Crossing | Mt. Airy, NC | 12 | 117,076 | 100.0 | % | 100.0 | % | 117,076 | 1,030 | 8.80 | ||||||||||||||||||||||
| Parkway Plaza | Brunswick, GA | 4 | 52,365 | 81.7 | % | 81.7 | % | 42,785 | 354 | 8.27 | ||||||||||||||||||||||
| Pierpont Centre | Morgantown, WV | 16 | 111,162 | 95.4 | % | 95.4 | % | 106,042 | 1,058 | 9.97 | ||||||||||||||||||||||
| Port Crossing | Harrisonburg, VA | 8 | 65,365 | 100.0 | % | 100.0 | % | 65,365 | 861 | 13.17 | ||||||||||||||||||||||
| 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 | 766 | 8.40 | ||||||||||||||||||||||
| Rivergate Shopping Center | Macon, GA | 24 | 193,960 | 87.0 | % | 87.0 | % | 168,816 | 2,457 | 14.56 | ||||||||||||||||||||||
| Sangaree Plaza | Summerville, SC | 10 | 66,948 | 100.0 | % | 100.0 | % | 66,948 | 708 | 10.58 | ||||||||||||||||||||||
| Shoppes at Myrtle Park | Bluffton, SC | 13 | 56,601 | 99.1 | % | 97.3 | % | 55,084 | 634 | 11.52 | ||||||||||||||||||||||
| South Lake | Lexington, SC | 10 | 44,318 | 97.3 | % | 97.3 | % | 43,118 | 239 | 5.54 | ||||||||||||||||||||||
| South Park | Mullins, SC | 4 | 60,734 | 96.9 | % | 96.9 | % | 58,834 | 387 | 6.58 | ||||||||||||||||||||||
| South Square | Lancaster, SC | 6 | 44,350 | 80.9 | % | 80.9 | % | 35,900 | 302 | 8.40 | ||||||||||||||||||||||
| St. George Plaza | St. George, SC | 8 | 59,174 | 100.0 | % | 96.3 | % | 56,999 | 407 | 7.14 | ||||||||||||||||||||||
| Sunshine Plaza | Lehigh Acres, FL | 22 | 111,189 | 99.6 | % | 99.6 | % | 110,743 | 1,073 | 9.69 | ||||||||||||||||||||||
| Surrey Plaza | Hawkinsville, GA | 3 | 42,680 | 96.5 | % | 96.5 | % | 41,180 | 247 | 6.00 | ||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2022 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 | 137,987 | 97.7 | % | 64.6 | % | 89,166 | $ | 912 | $ | 10.23 | ||||||||||||||||||||
| Tri-County Plaza | Royston, GA | 6 | 67,577 | 88.8 | % | 88.8 | % | 59,977 | 420 | 7.00 | ||||||||||||||||||||||
| Tuckernuck | Richmond, VA | 17 | 93,440 | 100.0 | % | 98.2 | % | 91,745 | 974 | 10.70 | ||||||||||||||||||||||
| Twin City Commons | Batesburg-Leesville, SC | 5 | 47,680 | 100.0 | % | 97.5 | % | 46,480 | 464 | 9.98 | ||||||||||||||||||||||
| Village of Martinsville | Martinsville, VA | 21 | 290,902 | 97.7 | % | 97.7 | % | 284,294 | 2,320 | 8.21 | ||||||||||||||||||||||
| Waterway Plaza | Little River, SC | 10 | 49,750 | 100.0 | % | 100.0 | % | 49,750 | 500 | 10.06 | ||||||||||||||||||||||
| Westland Square | West Columbia, SC | 11 | 62,735 | 100.0 | % | 100.0 | % | 62,735 | 534 | 8.51 | ||||||||||||||||||||||
| Winslow Plaza | Sicklerville, NJ | 18 | 40,695 | 100.0 | % | 100.0 | % | 40,695 | 646 | 15.88 | ||||||||||||||||||||||
| 782 | 5,391,432 | 95.8 | % | 93.7 | % | 5,053,711 | $ | 48,853 | $ | 9.67 | ||||||||||||||||||||||
(1) Reflects leases executed through April 4, 2022 that commence subsequent to the end of the current reporting period.
(2) Annualized based rent per occupied square foot, assumes base rent as of the end of the current reporting period, excludes the impact of tenant concessions and rent abatements.
(3) This information is not available because the property is undeveloped.
(4) Square footage is net of the Company's on-premise management office and net of building square footage whereby the Company only leases the land.
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 16 | ||||
Top Ten Tenants by Annualized Base Rent
Total Tenants : 782
| 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 | ||||||||||||||||||||||||||||||
| Food Lion | $ | 4,430 | 9.07 | % | 551,469 | 10.23 | % | $ | 8.03 | ||||||||||||||||||||||||||
Kroger Co. (1) | 2,097 | 4.29 | % | 239,482 | 4.44 | % | 8.76 | ||||||||||||||||||||||||||||
| Piggly Wiggly | 1,495 | 3.06 | % | 202,968 | 3.76 | % | 7.37 | ||||||||||||||||||||||||||||
Dollar Tree (2) | 1,192 | 2.44 | % | 148,605 | 2.76 | % | 8.02 | ||||||||||||||||||||||||||||
Lowes Foods (3) | 1,181 | 2.42 | % | 130,036 | 2.41 | % | 9.08 | ||||||||||||||||||||||||||||
| Winn Dixie | 887 | 1.82 | % | 133,575 | 2.48 | % | 6.64 | ||||||||||||||||||||||||||||
| Planet Fitness | 837 | 1.71 | % | 100,427 | 1.86 | % | 8.33 | ||||||||||||||||||||||||||||
| Hobby Lobby | 717 | 1.47 | % | 114,298 | 2.12 | % | 6.27 | ||||||||||||||||||||||||||||
| Big Lots | 679 | 1.39 | % | 105,674 | 1.96 | % | 6.43 | ||||||||||||||||||||||||||||
| BJ'S Wholesale Club | 651 | 1.33 | % | 147,400 | 2.73 | % | 4.42 | ||||||||||||||||||||||||||||
| $ | 14,166 | 29.00 | % | 1,873,934 | 34.75 | % | $ | 7.56 | |||||||||||||||||||||||||||
(1) Kroger 4 / Harris Teeter 1 / 3 fuel stations
(2) Dollar Tree 9 / Family Dollar 6
(3) 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 | — | 337,721 | 6.26 | % | — | % | $ | — | — | % | $ | — | ||||||||||||||||||||||||||||||||
| MTM | 9 | 21,283 | 0.39 | % | 0.42 | % | 299 | 0.61 | % | 14.05 | ||||||||||||||||||||||||||||||||||
| 2022 | 66 | 249,322 | 4.62 | % | 4.93 | % | 2,456 | 5.03 | % | 9.85 | ||||||||||||||||||||||||||||||||||
| 2023 | 134 | 794,423 | 14.73 | % | 15.72 | % | 7,132 | 14.60 | % | 8.98 | ||||||||||||||||||||||||||||||||||
| 2024 | 139 | 743,355 | 13.79 | % | 14.71 | % | 7,310 | 14.96 | % | 9.83 | ||||||||||||||||||||||||||||||||||
| 2025 | 122 | 868,631 | 16.11 | % | 17.19 | % | 8,710 | 17.83 | % | 10.03 | ||||||||||||||||||||||||||||||||||
| 2026 | 118 | 799,251 | 14.82 | % | 15.82 | % | 8,041 | 16.46 | % | 10.06 | ||||||||||||||||||||||||||||||||||
| 2027 | 83 | 362,811 | 6.73 | % | 7.18 | % | 4,189 | 8.57 | % | 11.55 | ||||||||||||||||||||||||||||||||||
| 2028 | 22 | 336,946 | 6.25 | % | 6.67 | % | 2,426 | 4.97 | % | 7.20 | ||||||||||||||||||||||||||||||||||
| 2029 | 22 | 156,710 | 2.91 | % | 3.10 | % | 1,535 | 3.14 | % | 9.80 | ||||||||||||||||||||||||||||||||||
| 2030 | 16 | 258,565 | 4.80 | % | 5.12 | % | 2,055 | 4.21 | % | 7.95 | ||||||||||||||||||||||||||||||||||
| 2031 & thereafter | 51 | 462,414 | 8.59 | % | 9.14 | % | 4,700 | 9.62 | % | 10.17 | ||||||||||||||||||||||||||||||||||
| Total | 782 | 5,391,432 | 100.00 | % | 100.00 | % | $ | 48,853 | 100.00 | % | $ | 9.67 | ||||||||||||||||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 17 | ||||
Lease Expiration Schedule (continued)
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 | — | 174,013 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | — | — | — | — | % | — | — | — | — | — | % | — | |||||||||||||||||||||||
| 2022 | — | — | — | — | % | — | 2 | 71,203 | 435 | 2.33 | % | 6.11 | |||||||||||||||||||||||
| 2023 | 2 | 43,392 | 420 | 21.47 | % | 9.68 | 13 | 460,495 | 2,894 | 15.48 | % | 6.28 | |||||||||||||||||||||||
| 2024 | 1 | 32,000 | 125 | 6.39 | % | 3.91 | 9 | 351,977 | 2,331 | 12.47 | % | 6.62 | |||||||||||||||||||||||
| 2025 | 2 | 84,633 | 619 | 31.65 | % | 7.31 | 12 | 472,936 | 3,782 | 20.23 | % | 8.00 | |||||||||||||||||||||||
| 2026 | 1 | 20,152 | 97 | 4.96 | % | 4.81 | 13 | 435,435 | 3,505 | 18.75 | % | 8.05 | |||||||||||||||||||||||
| 2027 | 2 | 45,759 | 323 | 16.50 | % | 7.06 | 2 | 57,345 | 447 | 2.39 | % | 7.79 | |||||||||||||||||||||||
| 2028 | — | — | — | — | % | — | 7 | 280,841 | 1,637 | 8.76 | % | 5.83 | |||||||||||||||||||||||
| 2029 | 1 | 21,213 | 317 | 16.21 | % | 14.94 | 2 | 45,700 | 307 | 1.64 | % | 6.72 | |||||||||||||||||||||||
| 2030 | — | — | — | 0.01 | % | — | 3 | 216,346 | 1,359 | 7.27 | % | 6.28 | |||||||||||||||||||||||
| 2031+ | 1 | 20,858 | 55 | 2.81 | % | 2.64 | 8 | 282,952 | 1,996 | 10.68 | % | 7.05 | |||||||||||||||||||||||
| Total | 10 | 442,020 | $ | 1,956 | 100.00 | % | $ | 7.30 | 71 | 2,675,230 | $ | 18,693 | 100.00 | % | $ | 6.99 | |||||||||||||||||||
(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 | — | 163,708 | $ | — | — | % | $ | — | — | — | $ | — | — | % | $ | — | |||||||||||||||||||
| Month-to-Month | 9 | 21,283 | 299 | 2.17 | % | 14.05 | — | — | — | — | % | — | |||||||||||||||||||||||
| 2022 | 44 | 116,167 | 1,087 | 7.88 | % | 9.36 | 20 | 61,952 | 934 | 6.48 | % | 15.08 | |||||||||||||||||||||||
| 2023 | 71 | 144,646 | 1,916 | 13.88 | % | 13.25 | 48 | 145,890 | 1,902 | 13.21 | % | 13.04 | |||||||||||||||||||||||
| 2024 | 80 | 178,034 | 2,384 | 17.27 | % | 13.39 | 49 | 181,344 | 2,470 | 17.15 | % | 13.62 | |||||||||||||||||||||||
| 2025 | 69 | 166,368 | 2,245 | 16.27 | % | 13.49 | 39 | 144,694 | 2,064 | 14.33 | % | 14.26 | |||||||||||||||||||||||
| 2026 | 63 | 164,375 | 2,186 | 15.84 | % | 13.30 | 41 | 179,289 | 2,253 | 15.64 | % | 12.57 | |||||||||||||||||||||||
| 2027 | 49 | 120,557 | 1,618 | 11.72 | % | 13.42 | 30 | 139,150 | 1,802 | 12.51 | % | 12.95 | |||||||||||||||||||||||
| 2028 | 10 | 34,589 | 521 | 3.78 | % | 15.06 | 5 | 21,516 | 268 | 1.86 | % | 12.46 | |||||||||||||||||||||||
| 2029 | 8 | 26,250 | 261 | 1.89 | % | 9.94 | 11 | 63,547 | 650 | 4.51 | % | 10.23 | |||||||||||||||||||||||
| 2030 | 7 | 23,103 | 296 | 2.14 | % | 12.81 | 6 | 19,116 | 400 | 2.78 | % | 20.92 | |||||||||||||||||||||||
| 2031+ | 20 | 62,918 | 988 | 7.16 | % | 15.70 | 22 | 95,686 | 1,660 | 11.53 | % | 17.35 | |||||||||||||||||||||||
| Total | 430 | 1,221,998 | $ | 13,801 | 100.00 | % | $ | 13.04 | 271 | 1,052,184 | $ | 14,403 | 100.00 | % | $ | 13.69 | |||||||||||||||||||
WHLR | Financial & Operating Data | as of 3/31/2022 unless otherwise stated | 18 | ||||
Leasing Summary
Leasing Renewals, New Leases and Expirations
| Three Months Ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
Renewals(1): | |||||||||||
| Leases renewed with rate increase (sq feet) | 66,348 | 145,173 | |||||||||
| Leases renewed with rate decrease (sq feet) | 5,328 | 24,873 | |||||||||
| Leases renewed with no rate change (sq feet) | 20,329 | 17,959 | |||||||||
| Total leases renewed (sq feet) | 92,005 | 188,005 | |||||||||
| Leases renewed with rate increase (count) | 20 | 27 | |||||||||
| Leases renewed with rate decrease (count) | 2 | 5 | |||||||||
| Leases renewed with no rate change (count) | 12 | 8 | |||||||||
| Total leases renewed (count) | 34 | 40 | |||||||||
| Option exercised (count) | 2 | 4 | |||||||||
| Weighted average on rate increases (per sq foot) | $ | 1.15 | $ | 0.68 | |||||||
| Weighted average on rate decreases (per sq foot) | $ | (2.13) | $ | (1.15) | |||||||
| Weighted average rate on all renewals (per sq foot) | $ | 0.71 | $ | 0.38 | |||||||
| Weighted average change over prior rates | 5.86 | % | 4.22 | % | |||||||
New Leases(1) (2): | |||||||||||
| New leases (sq feet) | 68,919 | 112,594 | |||||||||
| New leases (count) | 23 | 19 | |||||||||
| Weighted average rate (per sq foot) | $ | 13.09 | $ | 8.25 | |||||||
| Gross Leasable Area ("GLA") expiring during the next 9 months, including month-to-month leases | 5.01 | % | 4.43 | % | |||||||
(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 3/31/2022 unless otherwise stated | 19 | ||||
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 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 3/31/2022 unless otherwise stated | 20 | ||||
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 3/31/2022 unless otherwise stated | 21 | ||||