Wheeler Real Estate Investment Trust(WHLR) - 2025 Q4 - Annual Results

Company Overview - WHLR focuses on owning, leasing, and operating income-producing retail properties, primarily grocery-anchored centers[9]. - The company’s portfolio includes well-located retail properties in secondary and tertiary markets, aiming for attractive, risk-adjusted returns[9]. - WHLR's common stock and preferred stock trade publicly on Nasdaq under the symbols "WHLR", "WHLRP", "WHLRD", and "WHLRL"[9]. - Cedar Realty Trust, Inc. is a subsidiary of WHLR, with its preferred stocks trading on NYSE under the symbols "CDRpB" and "CDRpC"[10]. Financial Performance - For the three months ended December 31, 2025, the net loss attributable to common stockholders was $(866,000), resulting in a basic loss per share of $(2.67) compared to a net income of $186,261.63 in the same period of 2024[14][16]. - The company reported a total revenue of $25.2 million, a decrease of 8.8% or $2.4 million, primarily due to a $1.8 million decrease in rental revenues and tenant reimbursements[26]. - Same-property net operating income (NOI) decreased by 3.1% or $0.5 million, impacted by a $0.4 million increase in property expenses and a $0.1 million decrease in property revenue[21]. - Total revenue decreased by 4.9% or $5.1 million to $99.4 million, primarily due to a $6.7 million decrease in rental revenues from properties sold in 2024 and 2025[30]. - Same-Property NOI increased by 1.6% or $1.0 million, driven by a $2.1 million increase in property revenue, partially offset by a $1.1 million increase in property operating expenses[30]. - FFO was $13.7 million compared to $3.2 million, including a $13.1 million increase in net changes in fair value of derivative liabilities[30]. - AFFO increased to $10.3 million from $7.2 million[30]. - The company reported impairment charges of $2.880 million for the year 2025, compared to $1.195 million in 2024, indicating increased asset write-downs[44]. - The company’s equity decreased to $31.487 million in 2025 from $32.029 million in 2024, a decline of 1.7%[43]. Operational Metrics - WHLR's occupancy rate and leasing performance are critical metrics for evaluating property operating performance[8]. - The company's real estate portfolio had an occupancy rate of 93.3%, a 100 basis point increase from 92.3%, and a leased rate of 94.3%, a 120 basis point increase from 93.1%[21]. - The company executed 28 lease renewals totaling 133,144 square feet at a weighted-average increase of $1.23 per square foot, representing an increase of 11.0% over in-place rental rates[21]. - The company ended the year with a gross leasable area (GLA) of 5,075,661 square feet and a total of 40 leases signed or renewed[15][21]. - Total leasable square feet across all properties is 7,018,837, with a percentage leased of 94.3% and percentage occupied of 93.3% as of December 31, 2025[61]. - The annualized base rent (ABR) totals $70,008,000, with an ABR per occupied square foot of $10.69[60]. - The renewal rent spread is 11.2%, while the new rent spread is significantly higher at 30.4%[61]. - The company operates 62 centers with a total of 916 tenants, with Virginia contributing 25.9% of the total ABR[62]. Debt and Capital Management - The total debt was $482.8 million, resulting in a debt to total assets ratio of 80.2% and a debt to gross asset value ratio of 66.7%[15]. - Debt decreased to $482.8 million from $499.5 million at December 31, 2024, primarily due to sales proceeds used for loan paydowns[37]. - The company recycled approximately $59.0 million of capital through asset sales, which helped to deleverage the balance sheet and retire $105.8 million of preferred equity liquidation value[17]. - Total principal balance of debt as of December 31, 2025, was $482,841,000, a decrease from $499,531,000 in 2024[52]. - Total interest expense for the year ended December 31, 2025, was $33,758,000, up 3.5% from $32,602,000 in 2024[53]. Strategic Focus and Risks - The company is committed to maintaining its qualification as a Real Estate Investment Trust (REIT) amidst changing economic and regulatory conditions[5]. - WHLR's strategic focus includes potential asset acquisitions and divestitures to enhance portfolio performance[5]. - The company faces risks related to tenant bankruptcies, geographic concentration, and market volatility affecting financing[5]. - WHLR's financial results are impacted by factors such as consumer spending, retailer demand, and economic conditions[4]. Lease Expiration and Tenant Information - The lease expiration schedule shows 916 leases expiring by 2035, with a total square footage of 7,018,837 and an annualized base rent of $70,008,000[67]. - In 2028, 151 leases will expire, representing 15.1% of total square footage and an annualized base rent of $10,138,000[67]. - Top ten tenants contribute $15,628,000 in annualized base rent, representing 22.5% of total annualized base rent[66]. - Food Lion is the largest tenant, accounting for $4,179,000 or 6.0% of total annualized base rent[66].