Wheeler Real Estate Investment Trust(US:WHLR)2025-11-06 21:02Property and Operations - As of September 30, 2025, the Company owned and operated 69 properties, including 66 retail shopping centers and 3 undeveloped properties across multiple states [151]. - The Company's geographic concentration is approximately 46% in the Mid-Atlantic, 44% in the Southeast, and 10% in the Northeast, which may increase susceptibility to adverse developments in these markets [152]. - New leases signed for 156,027 square feet during the nine months ended September 30, 2025, with a weighted average rate of $13.72 per square foot, reflecting a 24.4% increase over prior rates [171]. - Total Same-Property NOI for Q3 2025 was $15.0 million, a 3.3% increase from $14.5 million in Q3 2024, driven by a 4.0% rise in property revenues, partially offset by a 5.4% increase in property expenses [197]. - For the nine months ended September 30, 2025, Same-Property NOI was $45.9 million, up 4.2% from $44.0 million in the same period of 2024, due to a 3.9% increase in property revenue, offset by a 3.4% rise in property expenses [198]. - The Company aims to grow operations by backfilling vacant spaces and increasing lease revenue through tenant improvements [220]. Financial Performance - Revenues for the three months ended September 30, 2025, were $23,821 million, a decrease of $971 million or 3.9% compared to $24,792 million in 2024 [175]. - Net income for the three months ended September 30, 2025, was $12,982 million, an increase of $43,613 million compared to a net loss of $30,631 million in 2024 [175]. - Year-to-date revenues for the nine months ended September 30, 2025, were $74,276 million, a decrease of $2,705 million or 3.5% compared to $76,981 million in 2024 [184]. - Year-to-date net income for the nine months ended September 30, 2025, was $14,355 million, an increase of $53,350 million compared to a net loss of $38,995 million in 2024 [184]. - Funds from Operations (FFO) for Q3 2025 was $21.1 million, compared to a loss of $30.3 million in Q3 2024, while FFO available to common stockholders was $18.1 million, up from a loss of $35.0 million [202]. - Adjusted Funds from Operations (AFFO) for the nine months ended September 30, 2025, was $7.1 million, compared to $3.8 million in the same period of 2024 [202]. Expenses and Liabilities - Property operating expenses decreased by $669 million or 7.9% to $7,819 million for the three months ended September 30, 2025, compared to $8,488 million in 2024 [176]. - Corporate general and administrative expenses increased by $347 million or 16.9% to $2,404 million for the three months ended September 30, 2025, compared to $2,057 million in 2024 [175]. - Gain on preferred stock redemptions decreased by $2,350 million or 93.0% to $176 million for the three months ended September 30, 2025, compared to $2,526 million in 2024 [182]. - The Company had accumulated undeclared dividends of $26.6 million for Series D Preferred Stock as of September 30, 2025 [170]. - The aggregate liquidation preference of Series D Preferred Stock is approximately $39.4 million, with accrued and unpaid dividends of about $26.6 million, totaling a liquidation value of $66.0 million [224]. - The Company has $6.5 million in principal and scheduled payments due in the twelve months ended September 30, 2026 [215]. Cash Flow and Financing - Cash flows from operating activities decreased by 8.9% to $18.8 million for the nine months ended September 30, 2025, down from $20.6 million in 2024 [208]. - Cash flows from investing activities increased significantly by 1237.8% to $20.9 million for the nine months ended September 30, 2025, primarily due to proceeds from property sales [208]. - Cash flows used in financing activities were $43.5 million for the nine months ended September 30, 2025, compared to $6.9 million in the same period of 2024 [211]. - The Company entered into a credit facility agreement for up to $20 million on August 15, 2025, with a maturity date of August 15, 2027 [155]. - The total outstanding principal under the August 2025 Cedar Credit Facility must be reduced to no greater than $10 million by February 15, 2027 [156]. - The Company has incurred $3.9 million in loan refinancing activities and $5.2 million draw on the Cedar Revolving Credit Agreement [218]. Strategic Initiatives and Future Outlook - The Company is evaluating the potential impact of the recently signed OBBBA on its consolidated financial statements [207]. - The Company plans to repurchase Cedar Series C and Series B Preferred Stock, totaling approximately $52.4 million, which will reduce future annual dividend payments by $5.5 million [219]. - The Company acknowledges that its ability to grow may be limited without additional capital if it fails to execute its strategic initiatives [222]. - The Company intends to continue settling redemptions of Series D Preferred Stock in Common Stock, which may lead to substantial dilution of the outstanding Common Stock [225]. - Future dividend declarations will depend on cash flow, financial condition, and capital requirements, as the Company must distribute at least 90% of its REIT taxable income [221].