Wheeler Real Estate Investment Trust(WHLR) - 2024 Q4 - Annual Results

Company Overview - WHLR focuses on owning, leasing, and operating income-producing retail properties, primarily grocery-anchored centers[8]. - The company’s portfolio includes well-located retail properties in secondary and tertiary markets, generating attractive, risk-adjusted returns[8]. - WHLR's common stock and preferred stocks trade publicly on Nasdaq and NYSE under various symbols, indicating a diversified capital structure[8][9]. Financial Performance - Net income attributable to Wheeler REIT common stockholders for Q4 2024 was $32.037 million, with a basic earnings per share of $173.35[14]. - Funds from Operations (FFO) for Q4 2024 was $45.927 million, or $248.50 per share, compared to $21.0 million or $2,691.84 per share in the prior year[25]. - Same-Property Net Operating Income (NOI) increased by 4.8% or $0.7 million, driven by a $1.2 million increase in property revenue[20]. - Total revenue for Q4 2024 was $27.6 million, reflecting a 5.3% increase or $1.4 million from the previous year[20]. - The occupancy rate for the company's real estate portfolio was 92.3%, a 120 basis point increase from 91.1%[20]. - Total assets as of December 31, 2024, were $653.702 million, with total debt of $499.531 million, resulting in a debt to total assets ratio of 76.42%[15]. - Total operating expenses for Q4 2024 decreased by 2.7% or $0.5 million, primarily due to a decrease in depreciation and amortization[20]. - Net income for Q4 2024 was $39.762 million, significantly higher than $19.154 million in Q4 2023, marking a 107.5% increase[38]. - Total liabilities increased to $537.048 million in 2024 from $526.804 million in 2023, an increase of 1.4%[37]. - Funds from Operations (FFO) for Q4 2024 was $50.282 million, compared to $26.014 million in Q4 2023, representing a 93.5% increase[41]. - The company’s cash and cash equivalents rose to $42.964 million in 2024, up from $18.404 million in 2023, a growth of 133.5%[37]. - Total Interest Expense for Q4 2024 was $8,568,000, reflecting a 4.6% increase from $8,189,000 in Q4 2023[50]. Operational Metrics - WHLR's Same-Property Net Operating Income (Same-Property NOI) is a key performance metric, reflecting revenues and expenses directly associated with property operations[7]. - WHLR's occupancy rate and leased rate are critical indicators of its operational success, with ongoing efforts to enhance these metrics[7]. - The company is actively managing its portfolio to adapt to e-commerce trends and changing retail dynamics, which may include strategic acquisitions or divestitures[4]. - WHLR has a total of 72 properties with 981 tenants, contributing to an Annualized Base Rent (ABR) of 100%[55]. - The overall occupancy rate across the properties is maintained at a healthy level, ensuring stable revenue generation[55]. - WHLR renewed a total of 139,842 square feet of leases in Q4 2024, with a weighted average rate increase of 11.39% compared to the prior rates[61]. Debt and Financing - The company faces risks related to market volatility, tenant bankruptcies, and changes in consumer spending, which could impact leasing and occupancy rates[3][4]. - WHLR's financial performance is influenced by its ability to maintain compliance with debt covenants and secure favorable financing terms[4]. - Debt totaled $499.5 million, up from $495.6 million at December 31, 2023, due to refinancing activities and draws on credit agreements[32]. - The company has a total of $482,609,000 in loans payable as of December 31, 2024, after accounting for unamortized deferred financing costs[46]. - The company’s total debt maturities show that 88.82% of principal repayments are due after 2029, indicating a long-term debt structure[48]. Tenant and Lease Information - The company has a diverse tenant mix, with grocery stores making up a significant portion of the ABR[57]. - The lease expiration schedule indicates that 119 leases expiring in 2025 will generate an annualized base rent of $5,338,000, which is 7.27% of the total[58]. - By 2028, 137 leases are set to expire, with an expected annualized base rent of $10,482,000, accounting for 14.27% of the total[58]. - The non-anchor lease expiration schedule shows that 116 leases expiring in 2027 will yield an annualized base rent of $4,315,000, representing 22.60% of the total[60]. - CDR renewed 46,630 square feet of leases in Q4 2024, achieving a weighted average rate increase of 22.33% over prior rates[64]. Strategic Initiatives - The company is committed to maintaining its qualification as a Real Estate Investment Trust (REIT), which is essential for tax benefits and investor appeal[4]. - The company recognized a non-operating gain of $41.4 million in net changes in fair value of derivative liabilities[25]. - The company sold South Philadelphia retail center for $21 million, resulting in a loss of $5.4 million[32]. - The Company invested $22.5 million in tenant improvements and capital expenditures into properties[32].