Wheeler Real Estate Investment Trust(WHLR) - 2024 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2024, total revenues were $25.872 million, a decrease of 0.7% compared to $26.066 million in the same period of 2023 [126]. - Property operating income for the same period was $16.822 million, down from $17.111 million, reflecting a decrease of $289 thousand [126]. - The company recognized a net loss attributable to Wheeler REIT of $8.707 million for the three months ended March 31, 2024, compared to a net loss of $3.101 million in the same period of 2023 [126]. - Funds from Operations (FFO) available to common stockholders decreased to $(4.1) million for the three months ended March 31, 2024, compared to $2.3 million in 2023 [139]. - The Company reported a net loss of $(6.0) million for the three months ended March 31, 2024, compared to a net loss of $(0.4) million in 2023 [139]. - Adjusted Funds from Operations (AFFO) improved to $0.2 million for the three months ended March 31, 2024, compared to $(1.1) million in 2023 [139]. Debt and Liquidity - Total debt increased to $497.0 million as of March 31, 2024, from $495.6 million at December 31, 2023, with a weighted average interest rate of 5.43% [147]. - The Company has $8.7 million in principal payments due within the twelve months ending March 31, 2025 [150]. - The Company plans to increase liquidity through tenant improvements, backfilling vacant spaces, and refinancing properties [152]. - Consolidated cash, cash equivalents, and restricted cash totaled $38.5 million as of March 31, 2024, down from $52.1 million at the same date in 2023 [142]. - Cash flows from operating activities increased by $1.5 million, totaling $5.2 million for the three months ended March 31, 2024, a 42.0% increase compared to $3.7 million in 2023 [142]. Property and Operations - As of March 31, 2024, the company owned and operated 75 retail shopping centers and four undeveloped properties across multiple states, including South Carolina, Georgia, and Virginia [106]. - New leases signed during the three months ended March 31, 2024, totaled 38,054 square feet, with a weighted average rate of $13.82 per square foot, reflecting a 1.1% increase over prior rates [122]. - Same-Property Net Operating Income (NOI) increased to $15.5 million for the three months ended March 31, 2024, representing a 2.7% increase from $15.1 million in 2023, driven by a 2.1% rise in property revenue [135]. Stock and Preferred Shares - The company processed redemptions of 84,561 shares of Series D Preferred Stock, issuing 14,253,931 shares of Common Stock in settlement of approximately $3.2 million [111]. - Accumulated undeclared dividends for Series D Preferred Stock reached $33.3 million, with $2.0 million attributable to the three months ended March 31, 2024 [121]. - As of March 31, 2024, the total liquidation value of the outstanding Series D Preferred Stock is approximately $95.9 million, which includes $62.6 million in liquidation preference and $33.3 million in accrued and unpaid dividends [156]. - The Company intends to settle redemptions of Series D Preferred Stock in Common Stock, which is expected to result in substantial dilution of the outstanding Common Stock [157]. - The Company does not plan to liquidate assets or incur indebtedness to fund cash redemptions of the Series D Preferred Stock [157]. Compliance and Regulations - The Company is under a compliance period until June 4, 2024, to regain compliance with Nasdaq Listing Rule 5550(a)(2) due to its common stock's bid price closing below $1.00 per share [148]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [158]. Investments - As of March 31, 2024, the fair value of the company's investment in Stilwell Activist Investments, L.P. was $10.6 million, including an unrealized loss of $79 thousand for the quarter [118]. Interest Expense - Interest expense increased by 14.3% to $7.405 million, primarily due to higher property debt interest and an increase in the average principal balance [129].