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Wheeler Real Estate Investment Trust(WHLR) - 2024 Q1 - Quarterly Results
WHLRWheeler Real Estate Investment Trust(WHLR)2024-05-06 20:17

Company Overview - Wheeler Real Estate Investment Trust, Inc. (WHLR) focuses on owning, leasing, and operating income-producing retail properties, primarily grocery-anchored centers[9]. - The company's portfolio consists of well-located retail properties in secondary and tertiary markets, aiming for attractive, risk-adjusted returns[9]. - WHLR's common stock and various preferred stocks trade publicly on Nasdaq and NYSE under specific symbols, indicating a diversified capital structure[9][10]. Financial Performance - For the three months ended March 31, 2024, Wheeler REIT reported a net loss attributable to common stockholders of 10.749million,or10.749 million, or (0.17) per share[15][16]. - Funds from Operations (FFO) was (4.116)million,or(4.116) million, or (0.07) per share, compared to FFO of 2.3millionintheprioryear[15][19].−Totalrevenueforthequarterwas2.3 million in the prior year[15][19]. - Total revenue for the quarter was 25.9 million, a decrease of 0.7% or 0.2millionyear−over−year[19].−Operatingincomeincreasedto0.2 million year-over-year[19]. - Operating income increased to 7.478 million for Q1 2024, compared to 6.574millioninQ12023,reflectingagrowthof13.756.574 million in Q1 2023, reflecting a growth of 13.75%[28]. - Net loss attributable to Wheeler REIT common shareholders was 10.749 million for Q1 2024, compared to a loss of 5.365millioninQ12023,indicatingadeteriorationof100.005.365 million in Q1 2023, indicating a deterioration of 100.00%[28]. - Same Store Property Net Operating Income for Q1 2024 was 15.536 million, up from 15.124millioninQ12023,representinganincreaseof2.7315.124 million in Q1 2023, representing an increase of 2.73%[30]. Occupancy and Leasing - The company's real estate portfolio was 91.2% occupied and 93.5% leased, with a 10 basis point and 70 basis point increase respectively from the previous year[19]. - The overall occupancy rate for CDR properties is 89.5%, with a total ABR of 25,585,000[45]. - The property with the highest occupancy rate is Tampa Festival at 100%, with a base rent of 1,028,000[42].−Totalexpiringleasesfortheanchorsegmentamountto655,378squarefeet,withanannualizedbaserentof1,028,000[42]. - Total expiring leases for the anchor segment amount to 655,378 square feet, with an annualized base rent of 3,180,000, representing 100% of the total[49]. - The non-anchor segment has 1,787,739 square feet of expiring leases, with an annualized base rent of 18,569,000,alsorepresenting10018,569,000, also representing 100% of the total[50]. - In Q1 2024, the company renewed 94,915 square feet of leases, with a renewal rent spread of 7.62% compared to 6.89% in Q1 2023[52]. - New leases signed in Q1 2024 totaled 22,349 square feet, with a new rent spread of 19.14%, down from 74.93% in Q1 2023[52]. Debt and Financial Obligations - As of March 31, 2024, total debt was 497.0 million, with a weighted average interest rate of 5.43%[22]. - The company entered into a revolving credit agreement with KeyBank for up to 9.5million,withaninterestratebasedondailySOFRplusapplicablemargins[22].−Totalprincipalbalanceofloanspayableis9.5 million, with an interest rate based on daily SOFR plus applicable margins[22]. - Total principal balance of loans payable is 478,205,000 as of March 31, 2024, showing a slight increase from 477,574,000in2023[36].−TotalinterestexpenseforthethreemonthsendedMarch31,2024,is477,574,000 in 2023[36]. - Total interest expense for the three months ended March 31, 2024, is 7,405,000, an increase of 14.3% compared to 6,477,000inthesameperiodof2023[40].−Scheduledprincipalrepaymentsandmaturitiestotal6,477,000 in the same period of 2023[40]. - Scheduled principal repayments and maturities total 497,013,000, with 84.2% (418,886,000)duethereafter[38].MarketConditionsandRisks−Thecompanyfacesrisksrelatedtotenantbankruptcies,economicconditions,andcompetitionintheretailspace,whichcouldimpactfutureperformance[3][4].−WHLR′sleverageandborrowingcostsareaffectedbyinterestratechanges,whichcouldimpactoverallfinancialperformance[4].−Thecompanyisactivelymonitoringmarketconditionsandconsumerspendingtrendstoadaptitsstrategiesaccordingly[4].AssetManagement−Thecompanyhascommittedtoaplantosellassetsheldforsaletotaling418,886,000) due thereafter[38]. Market Conditions and Risks - The company faces risks related to tenant bankruptcies, economic conditions, and competition in the retail space, which could impact future performance[3][4]. - WHLR's leverage and borrowing costs are affected by interest rate changes, which could impact overall financial performance[4]. - The company is actively monitoring market conditions and consumer spending trends to adapt its strategies accordingly[4]. Asset Management - The company has committed to a plan to sell assets held for sale totaling 24.1 million, including a property in South Philadelphia[22]. - The company has a total of 115 properties at JANAF, with an occupancy rate of 93.1% and an annualized base rent of 9,561,000[41].−Theannualizedbaserent(ABR)foroccupiedpropertiesis9,561,000[41]. - The annualized base rent (ABR) for occupied properties is 76,193,000, averaging 10.26persquarefoot[45].−Thetoptentenantscontribute10.26 per square foot[45]. - The top ten tenants contribute 17,728,000 in annualized base rent, accounting for 23.26% of total ABR[47]. - The company has undeveloped land parcels totaling 64.93 acres, indicating potential for future expansion[43]. Dividends and Shareholder Returns - The company declared dividends of 0.453125and0.453125 and 0.406250 per share for Series B and Series C Preferred Stock, respectively, payable on May 20, 2024[26]. - As of March 31, 2024, total cumulative dividends in arrears for Series D Preferred Stock were 33.3million,or33.3 million, or 13.28 per share[26]. - The value of Common Stock issued for redemptions resulted in a realized gain of $0.2 million due to price differences[26].