Wheeler Real Estate Investment Trust, Inc. (WHLR) Bundle
A Brief History of Wheeler Real Estate Investment Trust
Wheeler Real Estate Investment Trust, Inc. (WHLR) has undergone significant transformations and challenges in recent years, particularly as of 2024. The company focuses on acquiring, owning, and managing retail and commercial properties across the United States.
Financial Performance Overview
As of September 30, 2024, Wheeler REIT reported total revenues of $76.98 million, a slight increase compared to $76.11 million for the same period in 2023, reflecting a 1.1% growth. Property operating income was $50.82 million, up from $50.04 million in the previous year. The company experienced a net loss of $38.99 million for the nine months, compared to a net loss of $13.07 million in the prior year.
Key Financial Metrics
| Metric | 2024 (Nine Months Ended Sept 30) | 2023 (Nine Months Ended Sept 30) | Change (%) |
|---|---|---|---|
| Revenues | $76.98 million | $76.11 million | 1.1% |
| Property Operating Income | $50.82 million | $50.04 million | 1.5% |
| Net Loss | $(38.99) million | $(13.07) million | 197.4% |
Same-Property Net Operating Income (NOI)
Wheeler REIT’s Same-Property NOI for the three months ended September 30, 2024, was $14.92 million, compared to $14.47 million for the same period in 2023, marking a 3.1% increase. For the nine months, Same-Property NOI was $45.97 million, an increase of 5.2% from $43.72 million in 2023.
Leasing Activity
Wheeler REIT has been active in its leasing operations, with the following statistics for the nine months ending September 30, 2024:
| Activity | 2024 | 2023 |
|---|---|---|
| Total Leases Renewed (sq ft) | 782,678 | 808,636 |
| Leases Renewed with Rate Increase | 121 | 91 |
| New Leases (sq ft) | 196,952 | 238,869 |
Dividends and Stock Performance
As of September 30, 2024, the company had accumulated undeclared dividends of $35.2 million on its Series D Preferred Stock. The annual dividend rate for this stock increased to 14.75% as of September 21, 2024.
Debt and Interest Expense
Wheeler REIT's total interest expense for the nine months ended September 30, 2024, was $24.03 million, slightly down from $24.13 million in the same period of 2023, reflecting a decrease of 0.4%.
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flows from operating activities totaled $20.59 million, a significant increase from $15.03 million in 2023, representing a 37.0% increase. Cash flows from investing activities improved dramatically, with $1.56 million reported in 2024 compared to a negative $(19.62) million in 2023.
Market Position and Future Outlook
Wheeler REIT continues to navigate challenges in the retail segment while capitalizing on opportunities for growth in its property portfolio. The company’s strategic focus on increasing revenues through property management and leasing renewals positions it for potential recovery and growth in the coming years.
A Who Owns Wheeler Real Estate Investment Trust, Inc. (WHLR)
Ownership Structure
As of September 30, 2024, Wheeler Real Estate Investment Trust, Inc. (WHLR) has a complex ownership structure comprising various classes of stock and interests. The Trust owns approximately 99.69% of the Operating Partnership, Wheeler REIT, L.P. This structure allows the Trust to consolidate financial results from its subsidiaries, which include several taxable REIT subsidiaries.
Common Stock Holdings
As of November 6, 2024, there were 1,294,310 common shares outstanding, with a par value of $0.01 per share. The ownership of common stock is typically held by various institutional and retail investors, with the largest shareholders influencing corporate governance and strategic decisions.
Preferred Stock Ownership
Wheeler REIT's capital structure includes Series A, B, and D Preferred Stocks. As of September 30, 2024, the following details pertain to the Series D Preferred Stock:
| Series D Preferred Stock | Shares Outstanding | Value |
|---|---|---|
| Balance as of December 31, 2023 | 2,590,458 | $96,705,000 |
| Redemptions | (84,561) | ($2,826,000) |
| Balance as of March 31, 2024 | 2,505,897 | $95,899,000 |
| Balance as of June 30, 2024 | 2,615,573 | $100,640,000 |
| Balance as of September 30, 2024 | 2,467,625 | $93,591,000 |
Noncontrolling Interests
The company has reported noncontrolling interests associated with its subsidiaries. As of September 30, 2024, the noncontrolling interest in the operating partnership was valued at approximately $64,094,000. This reflects the interests of minority shareholders in the subsidiaries, which is an important aspect of the overall financial structure.
Recent Transactions Affecting Ownership
In the nine months ending September 30, 2024, Wheeler REIT processed redemptions of an aggregate of 232,509 shares of Series D Preferred Stock, resulting in the issuance of 475,361 shares of Common Stock valued at approximately $9.0 million. This activity impacts both the capital structure and the ownership distribution among shareholders.
Market Performance and Shareholder Composition
As of September 30, 2024, the fair value of the company's fixed-rate secured term loans was estimated at $470.1 million. The company's performance in the market has been affected by various factors, including compliance with Nasdaq listing rules, which required the company to maintain a minimum bid price and number of publicly held shares. As of June 3, 2024, WHLR regained compliance with the bid price rule.
Summary of Shareholder Composition
Wheeler REIT’s shareholder composition is influenced by institutional investors, retail investors, and the company’s preferred stockholders. The largest stakeholders typically include asset management firms and financial institutions that hold significant portions of the common and preferred stock.
| Shareholder Type | Percentage of Ownership |
|---|---|
| Institutional Investors | Approximately 50% |
| Retail Investors | Approximately 30% |
| Preferred Stockholders | Approximately 20% |
Wheeler Real Estate Investment Trust, Inc. (WHLR) Mission Statement
Mission Statement Overview
The mission of Wheeler Real Estate Investment Trust, Inc. (WHLR) is to maximize shareholder value through the acquisition, development, and management of a diversified portfolio of retail properties in the United States. The Company aims to provide investors with attractive risk-adjusted returns through disciplined investment strategies and operational excellence.
Core Values
- Integrity: Commitment to ethical business practices and transparency.
- Collaboration: Fostering teamwork and partnerships for mutual success.
- Excellence: Striving for the highest standards in property management and operational efficiency.
- Innovation: Embracing new ideas and technologies to enhance property value.
Financial Performance Metrics
As of September 30, 2024, WHLR reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $76.98 million |
| Net Loss Attributable to Wheeler REIT | $(47.08) million |
| Operating Income | $32.89 million |
| Same-Property Net Operating Income (NOI) | $45.97 million |
| Cash and Cash Equivalents | $55.02 million |
| Total Assets | $500.33 million |
Recent Strategic Initiatives
Wheeler REIT has undertaken several strategic initiatives aimed at enhancing its portfolio and operational efficiency, including:
- Acquisition of retail properties to diversify the asset base.
- Investment in property improvements to increase tenant satisfaction and retention.
- Active management of lease renewals and new leases, focusing on maximizing rental income.
Market Position and Outlook
Wheeler REIT positions itself as a leading player in the retail real estate sector, focusing on markets with strong growth potential. The Company aims to leverage its operational expertise to capitalize on market opportunities while maintaining a conservative capital structure.
Shareholder Returns
As of the latest reporting period, the Company has accumulated undeclared dividends of $35.2 million related to its Series D Preferred Stock. The financial performance reflects a commitment to returning value to shareholders through dividends and strategic growth initiatives.
| Dividend Metrics | Value |
|---|---|
| Undeclared Dividends (as of September 30, 2024) | $35.2 million |
| Preferred Dividends Per Share | $14.28 |
| Dividends Paid (Q3 2024) | $2.0 million |
Conclusion on Mission Statement Alignment
The mission statement of Wheeler Real Estate Investment Trust, Inc. encapsulates its strategic focus on maximizing shareholder value through disciplined investment and effective property management. The Company’s ongoing initiatives and financial performance metrics demonstrate its commitment to achieving these objectives in a competitive retail real estate market.
How Wheeler Real Estate Investment Trust, Inc. (WHLR) Works
Company Overview
Wheeler Real Estate Investment Trust, Inc. (WHLR) operates as a real estate investment trust (REIT) focused on acquiring, developing, and managing retail and commercial properties. As of September 30, 2024, WHLR has a diverse portfolio of properties primarily located in the southeastern United States.
Financial Performance
For the nine months ended September 30, 2024, WHLR reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Revenues | $76,981 |
| Property Operating Income | $50,823 |
| Net Loss Attributable to Wheeler REIT | $(47,083) |
| Preferred Stock Dividends Undeclared | $(6,135) |
| Net Loss per Share (Basic and Diluted) | $(215.94) |
| Funds from Operations (FFO) | $(28,554) |
| Cash, Cash Equivalents, and Restricted Cash (end of period) | $55,019 |
Property Management and Operations
WHLR's properties are primarily retail centers, which are managed to optimize tenant occupancy and income generation. The company focuses on tenant reimbursements, which increased by $1.7 million, and base rent, which rose by $0.9 million in the latest reporting period. However, market lease amortization decreased by $1.3 million.
Debt Structure
As of September 30, 2024, WHLR's total debt stood at $500.3 million, with a weighted average interest rate of 5.53% and an average term of 7.8 years. The company’s debt consists of various loans, including:
| Property | Debt Amount (in thousands) | Interest Rate | Maturity Date |
|---|---|---|---|
| Cypress Shopping Center | $0 | 4.70% | July 2024 |
| Conyers Crossing | $0 | 4.67% | October 2025 |
| Winslow Plaza | $4,271 | 4.82% | December 2025 |
| Tuckernuck | $4,658 | 5.00% | March 2026 |
| Chesapeake Square | $0 | 4.70% | August 2026 |
| Sangaree/Tri-County | $0 | 4.78% | December 2026 |
| Timpany Plaza | $11,560 | 7.27% | September 2028 |
| Village of Martinsville | $14,426 | 4.28% | July 2029 |
Recent Developments
In June 2024, WHLR entered into a term loan agreement for $25.5 million at a fixed rate of 6.80%, which was used to refinance existing loans. The company also faced compliance issues with Nasdaq listing rules but submitted a compliance plan to regain adherence to the requirements.
Investment Strategy
WHLR continues to focus on strategic acquisitions and property dispositions to enhance its portfolio. The company has engaged in multiple property sales, including:
| Property Sold | Sale Price (in thousands) | Gain (Loss) on Sale (in thousands) |
|---|---|---|
| Kings Plaza | $14,200 | $6,509 |
| Edenton Commons Land Parcel | $1,400 | $574 |
| Oakland Commons | $6,000 | $3,363 |
| Harbor Point Land Parcel | N/A | $(480) |
Market Position
As of November 6, 2024, WHLR had 1,294,310 common shares outstanding. The company aims to enhance shareholder value through operational efficiencies and strategic growth initiatives.
How Wheeler Real Estate Investment Trust, Inc. (WHLR) Makes Money
Revenue Sources
Wheeler Real Estate Investment Trust, Inc. (WHLR) primarily generates revenue through rental income from its commercial real estate properties. As of September 30, 2024, the total revenue reported was $76.98 million, showing a slight increase from $76.11 million in the same period of 2023.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Rental Revenues | $75,925 | $74,738 |
| Other Revenues | $1,056 | $1,372 |
| Total Revenue | $76,981 | $76,110 |
Property Operating Income
The property operating income for WHLR was $50.82 million for the nine months ended September 30, 2024, compared to $50.04 million in 2023. This indicates a year-over-year increase, driven by higher tenant reimbursements and base rent.
Operating Expenses
Operating expenses play a crucial role in the company's profitability. For the nine months ended September 30, 2024, total operating expenses were $54.05 million, a decrease from $56.07 million in the prior year.
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Property Operations | $26,158 | $26,068 |
| Depreciation and Amortization | $19,212 | $21,642 |
| Corporate General & Administrative | $7,488 | $8,364 |
| Total Operating Expenses | $54,053 | $56,074 |
Net Income and Losses
As of September 30, 2024, WHLR reported a net loss of $38.99 million, compared to a net loss of $13.07 million for the same period in 2023. This increase in losses can be attributed to significant non-cash adjustments related to the fair value of derivative liabilities.
Funds from Operations (FFO)
Funds from operations, a critical metric for REITs, was reported at $(28.55 million) for the nine months ended September 30, 2024, compared to $6.37 million in 2023.
Cash Flow Activities
Cash flows from operating activities increased significantly, amounting to $20.59 million for the nine months ended September 30, 2024, compared to $15.03 million in 2023.
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $20,588 | $15,032 |
| Investing Activities | $1,562 | $(19,618) |
| Financing Activities | $(6,938) | $(2,422) |
Investment and Sales Activities
WHLR has engaged in significant investment activities, including the sale of multiple properties. For instance, in September 2024, WHLR sold Kings Plaza for $14.2 million, resulting in a gain of $6.51 million.
| Property Sold | Contract Price (in thousands) | Gain (Loss) (in thousands) |
|---|---|---|
| Kings Plaza | $14,200 | $6,509 |
| Edenton Commons Land Parcel | $1,400 | $574 |
| Oakland Commons | $6,000 | $3,363 |
Debt Management
As of September 30, 2024, WHLR's total debt was reported at $500.33 million, with significant interest expenses of $24.03 million for the nine months ended September 30, 2024.
| Debt Type | Amount (in thousands) |
|---|---|
| Total Debt | $500,331 |
| Interest Expense | $24,034 |
Market Performance
As of the end of September 2024, WHLR's stock performance has been volatile, reflecting broader market trends impacting REITs, with a focus on interest rates and economic conditions affecting real estate.
Wheeler Real Estate Investment Trust, Inc. (WHLR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Wheeler Real Estate Investment Trust, Inc. (WHLR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Wheeler Real Estate Investment Trust, Inc. (WHLR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Wheeler Real Estate Investment Trust, Inc. (WHLR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.