Wheeler Real Estate Investment Trust(WHLR) - 2024 Q2 - Quarterly Results

Financial Performance - WHLR reported a net loss attributable to common stockholders of $(7,788,000) for the three months ended June 30, 2024, resulting in a net loss per share of$ (13.74) compared to $(762.93) per share in the same period last year[14]. - Same-Property NOI increased by 9.3% or$ 1.4 million, driven by a $1.7 million increase in property revenue, partially offset by a$ 0.3 million increase in property expenses[18]. - Total revenue for the quarter was $26.3 million, a 5.9% increase or$ 1.5 million, primarily due to a $1.1 million increase in tenant reimbursements[17]. - Funds from Operations (FFO) were$ (3.6 million) or $(6.27) per share, compared to FFO of$ 1.2 million or $145.15 per share in the prior year[17]. - Operating income for the three months ended June 30, 2024, was$ 11,522, compared to $6,379 for the same period in 2023, representing an increase of 80.5%[35]. - Net loss for the three months ended June 30, 2024, was$ 2,358,000 compared to a loss of $1,294,000 for the same period in 2023, representing an increase of 82.3%[37]. - Funds from Operations (FFO) available to common stockholders and common unitholders was$ (3,556,000) for the three months ended June 30, 2024, compared to $1,203,000 for the same period in 2023, a decrease of 394.4%[37]. - Adjusted EBITDA for the three months ended June 30, 2024, was$ 13,725,000, an increase of 14.9% from $11,934,000 in the same period of 2023[38]. Leasing and Occupancy - The occupancy rate of the real estate portfolio was 90.8%, a slight decrease of 10 basis points from the previous year, while the leased rate increased by 120 basis points to 93.8%[15]. - The company executed 40 lease renewals totaling 188,152 square feet at a weighted average increase of$ 1.15 per square foot, representing a 10.8% increase over in-place rental rates[15]. - Executed 68 lease renewals totaling 283,067 square feet with a weighted average increase of $1.05 per square foot, representing a 9.7% increase over in-place rental rates[22]. - The percentage of properties leased across the portfolio is 100% for several locations, including Alex City Marketplace and Fort Howard Shopping Center[42]. - The total number of tenants across the properties is 111 at JANAF, with an occupancy rate of 89.3%[42]. - The percentage occupied for the Riverbridge Shopping Center is 96.9%, with an annualized base rent of$ 755,000[42]. - The total number of tenants across all properties is 1,012, with 240 tenants in the CDR segment[45]. Debt and Financing - The company is actively managing its debt and financing risks, particularly in light of recent reverse stock splits and rising borrowing costs[3]. - Total assets amounted to $670,315,000, with total debt at$ 499,193,000, resulting in a debt-to-total assets ratio of 74.47%[12]. - The company entered into a term loan agreement for $25.5 million at a fixed rate of 6.80%, with proceeds used to refinance four loans[19]. - Debt increased to$ 499.2 million from $495.6 million at December 31, 2023, with a weighted average interest rate on all debt at 5.53%[29]. - Total liabilities increased to$ 540,339 as of June 30, 2024, from $526,804 at the end of 2023, marking a rise of 2.9%[34]. Strategic Focus - The company reported a significant focus on retail space demand and economic conditions affecting leasing rates and tenant stability[1]. - The company highlighted risks related to tenant bankruptcies and the overall economic environment in the Mid-Atlantic, Southeast, and Northeast regions[3]. - The company emphasized the importance of maintaining its REIT status amidst changing market conditions and regulatory environments[3]. - The company is monitoring the impact of e-commerce on tenant performance and overall retail space demand[3]. - The company is addressing potential risks from natural disasters and climate change on its properties[3]. - The company is focused on enhancing its information systems to mitigate risks related to data security and cyber threats[3]. - The company reported a focus on strategic asset acquisitions and divestitures to enhance portfolio performance and market positioning[3]. Capital Expenditures and Investments - The Company invested$ 11.9 million in tenant improvements and capital expenditures into the properties[29]. - The Company subscribed for limited partnership interest in Stilwell Activist Investments, L.P. for $10.5 million, with a fair value of$ 11.4 million as of June 30, 2024[28]. Dividends and Shareholder Returns - Total cumulative dividends in arrears for Series D Preferred Stock reached $35.3 million or$ 13.48 per share as of June 30, 2024[30].