Wheeler Real Estate Investment Trust(WHLR) - 2025 Q2 - Quarterly Results

Financial Performance - The company reported a significant increase in Adjusted Funds from Operations (AFFO), reaching $X million, representing a Y% increase year-over-year[9]. - WHLR reported a net loss of $5.046 million for the three months ended June 30, 2025, translating to a net loss of $9.45 per share[16]. - Funds from Operations (FFO) was $(3.468) million, or $(6.50) per share, compared to $(3.6) million, or $(5,275.96) per share in the previous year[26]. - The total revenue for the quarter was $26.1 million, a decrease of 0.8% or $0.2 million year-over-year[20]. - Same-Property Net Operating Income (NOI) increased by 10.7% or $1.6 million, driven by a $1.5 million increase in property revenue[20]. - Total revenue decreased by 3.3% to $50.5 million, primarily due to a $3.6 million decrease in rental revenues from sold properties[32]. - Total operating expenses decreased by 5.1% to $34.2 million, driven by a $1.5 million reduction in expenses from sold properties and a $1.0 million decrease in depreciation[32]. - Adjusted Funds from Operations (AFFO) increased to $17.32 per share, compared to $4,340.52 per share previously[32]. - Operating income increased to $14.954 million in Q2 2025, up 29.1% from $11.522 million in Q2 2024[42]. - Comprehensive income attributable to the company was $0.261 million in Q2 2025, compared to a loss of $2.358 million in Q2 2024[42]. Occupancy and Leasing Activity - The occupancy rate improved to Z%, up from A% in the previous quarter, indicating stronger demand for retail space[10]. - The occupancy rate for WHLR's portfolio was 94.0%, a 70 basis point increase from the previous year[20]. - WHLR executed 25 lease renewals totaling 98,492 square feet at a weighted average increase of $1.37 per square foot, representing a 13.6% increase over in-place rental rates[20]. - The company renewed 98,492 square feet of leases in Q2 2025, with a weighted average rate increase of 13.63% compared to prior rates[67]. - Total leases renewed in Q2 2025 reached 77,434 sq feet, a significant increase from 38,293 sq feet in Q2 2024[69]. - The number of leases renewed with rate increases in the first half of 2025 was 13, up from 10 in the same period of 2024[69]. Revenue and Growth Initiatives - Future guidance indicates an expected revenue growth of E% for the next quarter, driven by increased consumer spending and leasing activity[10]. - The company plans to expand its portfolio by acquiring additional properties, targeting a growth of B% in gross leasable area (GLA) over the next fiscal year[9]. - The company is exploring potential mergers and acquisitions to enhance market presence, with a focus on regional expansion in the Southeast[9]. Debt Management - A strategic initiative to reduce debt levels is underway, aiming for a D% decrease in total debt by the end of the fiscal year[10]. - The total assets of WHLR were reported at $625.948 million, with total debt amounting to $492.937 million, resulting in a debt-to-total assets ratio of 78.75%[16]. - Debt decreased to $492.9 million from $499.5 million at the end of 2024, influenced by various loan payments and conversions[38]. - The total principal balance of loans payable is $477,311,000 as of June 30, 2025[49]. Tenant and Property Insights - The company has a total of 492,937,000 in scheduled principal repayments and debt maturities, with $1,035,000 due in the remaining six months of 2025[52]. - The total number of tenants across all properties is 938, indicating a diverse tenant mix[57]. - Food Lion is the largest tenant, generating $4.450 million in annualized base rent, representing 6.21% of total base rent[63]. - The highest occupancy rate is seen in properties like Alex City Marketplace and Cardinal Plaza, both at 100%[56]. - The lowest occupancy rate is at Rivergate Shopping Center, with only 68.9% leased[56]. Technology and Operational Efficiency - The company is focusing on enhancing its technology infrastructure to improve operational efficiency, with an investment of D million planned for the upcoming year[9]. - The impact of e-commerce on tenant performance is being closely monitored, with strategies in place to adapt to changing consumer behaviors[10].