Wheeler Real Estate Investment Trust(US:WHLR)2024-11-07 21:00Company Operations - As of September 30, 2024, the Company owned and operated 73 retail shopping centers and two undeveloped properties across multiple states, including South Carolina, Georgia, and Virginia [115]. - The Company's geographic concentration is approximately 46% in the Mid-Atlantic, 42% in the Southeast, and 12% in the Northeast, which may increase susceptibility to adverse market developments [116]. - Big Lots leases accounted for approximately 1.5% of the company's portfolio's annualized base rent, totaling 170,725 square feet as of September 30, 2024 [137]. Financial Performance - Revenues for the quarter ended September 30, 2024, were $24.792 million, a decrease of 1.6% compared to $25.204 million in the same quarter of 2023 [143]. - The company reported a net loss attributable to Wheeler REIT of $33.320 million for the quarter ended September 30, 2024, compared to a net loss of $14.061 million in the same quarter of 2023 [143]. - Revenues for the nine months ended September 30, 2024, increased to $76.981 million, a rise of 1.1% compared to $76.110 million in 2023, driven by a $1.7 million increase in tenant reimbursements and a $0.9 million increase in base rent [147]. - Net loss attributable to Wheeler REIT for the nine months ended September 30, 2024, was $47.083 million, a significant increase from a net loss of $21.132 million in 2023, reflecting a $25.951 million increase [147]. Property Transactions - The Company disposed of Kings Plaza for a contract price of $14.2 million, resulting in net proceeds of $13.746 million [117]. - The company experienced a gain on the disposal of properties amounting to $7.083 million for the quarter ended September 30, 2024, a significant increase of 221.4% compared to $2.204 million in the same quarter of 2023 [143]. - Gain on disposal of properties increased significantly to $9.966 million for the nine months ended September 30, 2024, compared to $2.204 million in 2023, marking a 352.2% increase [147]. 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 [122]. - The Cedar Revolving Credit Agreement was closed on September 12, 2024, following the disposition of Kings Plaza, with proceeds previously used for capital expenditures and tenant improvements [120]. - The company had $1.6 million of debt maturing during the twelve months ending September 30, 2025, with a weighted average interest rate of 5.53% on fixed-rate debt [169]. Shareholder Matters - During the nine months ended September 30, 2024, the Company processed redemptions of 232,509 shares of Series D Preferred Stock, issuing 475,361 shares of Common Stock in settlement of approximately $9.0 million [123]. - The Company had accumulated undeclared dividends of $35.2 million ($14.28 per share) to holders of Series D Preferred Stock as of September 30, 2024 [135]. - The Company will continue to settle redemptions of Series D Preferred Stock in Common Stock, leading to substantial dilution of outstanding Common Stock [185]. Operational Efficiency - Property operating expenses decreased by $0.327 million, or 3.7%, to $8.444 million for the quarter ended September 30, 2024 [143]. - Corporate general and administrative expenses decreased by 15.1% to $2.101 million for the quarter ended September 30, 2024, compared to $2.475 million in the same period of 2023 [143]. - Corporate general and administrative expenses decreased to $7.488 million for the nine months ended September 30, 2024, down from $8.364 million in 2023, a reduction of 10.5% [147]. Cash Flow - Cash flows from operating activities increased by $5.6 million, totaling $20.6 million for the nine months ended September 30, 2024, compared to $15.0 million for the same period in 2023, representing a 37.0% increase [164]. - Cash flows from investing activities increased by $21.2 million, primarily due to proceeds from property sales and investments, totaling $1.6 million for the nine months ended September 30, 2024, compared to $(19.6) million for the same period in 2023 [166]. - Cash flows used in financing activities were $(6.9) million for the nine months ended September 30, 2024, compared to $(2.4) million for the same period in 2023, indicating a significant increase in financing outflows [167]. Market Outlook - The company plans to grow operations and increase liquidity through various strategies, including backfilling vacant spaces and refinancing properties [180]. - As of November 6, 2024, the company had 1,200,110 publicly held shares outstanding, exceeding the minimum requirement of 500,000 shares [175].