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

Company Operations and Properties - As of June 30, 2024, the company owned and operated 74 retail shopping centers and three undeveloped properties across multiple states, including South Carolina, Georgia, and Virginia[100]. - The company's geographic concentration is approximately 46% in the Mid-Atlantic, 40% in the Southeast, and 14% in the Northeast, which may increase susceptibility to adverse market developments[101]. Financial Performance - Revenues for the three months ended June 30, 2024, increased to $26,317 million, a 5.9% increase from $24,840 million in 2023, primarily due to increases in tenant reimbursements, base rent, and termination fee income[118]. - Property operating income for the same period was $17,653 million, up from $16,498 million, reflecting a positive change of $1,155 million[118]. - Net loss attributable to Wheeler REIT for the three months ended June 30, 2024, was $5,056 million, compared to a loss of $3,970 million in 2023, representing an increase in loss of $1,086 million[118]. - For the six months ended June 30, 2024, revenues totaled $52,189 million, a 2.5% increase from $50,906 million in 2023, driven by higher tenant reimbursements and base rent[122]. - Same-Property Net Operating Income (NOI) for Q2 2024 was $16.2 million, a 9.3% increase from $14.9 million in Q2 2023, driven by a 7.3% rise in property revenue[128]. - Total Same-Property NOI for the six months ended June 30, 2024, was $31.7 million, up 6.0% from $29.9 million in the same period of 2023, primarily due to a 4.7% increase in property revenue[130]. Debt and Financing - 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 other loans[106]. - The company entered into a Revolving Credit Agreement with an interest rate based on daily SOFR plus applicable margins, collateralized by six properties[104]. - The company continues to manage its debt prudently, with total debt at $499.2 million as of June 30, 2024, compared to $495.6 million at the end of 2023[143]. - The weighted average interest rate for fixed-rate debt was 5.53% with a term of 8.1 years as of June 30, 2024[143]. Shareholder Equity and Stock Performance - For the six months ended June 30, 2024, the company processed redemptions of 84,561 shares of Series D Preferred Stock, resulting in the issuance of 118,783 shares of Common Stock valued at approximately $3.2 million[107]. - The company had accumulated undeclared dividends of $35.3 million for Series D Preferred Stock as of June 30, 2024[112]. - The Company received a notification from Nasdaq on December 7, 2023, regarding non-compliance with the Bid Price Rule due to the Common Stock's bid price closing below $1.00 for 30 consecutive business days[144]. - On June 3, 2024, the Company regained compliance with the Bid Price Rule[144]. - The Company was notified on June 28, 2024, of non-compliance with the Publicly Held Shares Rule, requiring a minimum of 500,000 publicly held shares[145]. - The Company submitted a Compliance Plan on July 12, 2024, aiming to achieve compliance with the Publicly Held Shares Rule by December 25, 2024[146]. - As of August 5, 2024, the Company issued 657,671 shares of Common Stock, bringing the total publicly held shares to 941,880, exceeding the required 500,000[148]. - The Company intends to settle redemptions of Series D Preferred Stock in Common Stock, which may lead to substantial dilution of the outstanding Common Stock[155]. Cash Flow and Liquidity - Cash flows from operating activities increased by $1.6 million to $13.1 million for the six months ended June 30, 2024, compared to $11.5 million in 2023[138]. - Cash flows used in investing activities decreased by $3.3 million, primarily due to proceeds from the sale of Oakland Commons[140]. - Cash flows used in financing activities were $4.4 million for the six months ended June 30, 2024, down from $6.2 million in the same period of 2023[141]. - Consolidated cash, cash equivalents, and restricted cash totaled $41.8 million as of June 30, 2024, down from $51.1 million a year earlier[137]. - The Company had $19.6 million in cash and cash equivalents and $22.2 million held in lender reserves as of June 30, 2024[150]. Other Financial Metrics - Interest expense decreased by 2.8% to $16,183 million for the six months ended June 30, 2024, from $16,656 million in 2023[124]. - Net changes in the fair value of derivative liabilities resulted in a loss of $10.5 million for the six months ended June 30, 2024, reflecting non-cash adjustments[125]. - Corporate general and administrative expenses decreased to $5,387 million for the six months ended June 30, 2024, from $5,889 million in 2023, a reduction of $502 million[122]. - Gain on disposal of properties was $2,883 million for both the three and six months ended June 30, 2024, with no comparable gain in 2023[118][122]. - Other expenses for the six months ended June 30, 2024, were $1,229 million, significantly lower than $3,040 million in 2023, indicating a reduction of $1,811 million[126]. - Funds from Operations (FFO) for Q2 2024 was $1.1 million, compared to $6.0 million in Q2 2023, while FFO available to common stockholders was $(3.6) million[134]. - Adjusted Funds from Operations (AFFO) for Q2 2024 was $2.1 million, significantly higher than $0.6 million in Q2 2023[134].