Exhibit 99.3

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

The following pro forma financial statements have been prepared to provide pro forma information with regard to the acquisition of Twin City Crossing (“the Property”), which Wheeler Real Estate Investment Trust, Inc. and Subsidiaries (“Wheeler REIT” or the “Company”), through Wheeler Real Estate Investment Trust, L.P. (“Operating Partnership”), its majority-owned subsidiary, acquired from a nonrelated party on December 18, 2012.

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2012 gives effect to the acquisition of the Property as if it occurred on September 30, 2012. The Wheeler REIT column as of September 30, 2012 represents the pro forma balance sheet presented in the Company’s Quarterly Report on Form 10-Q (“Form 10-Q”) filed on December 7, 2012 with the Securities and Exchange Commission (“SEC”) for the period and includes the estimated impact of the November 16, 2012 formation and offering transactions and as described in the Company’s Registration Statement filed on Form S-11 (“Registration Statement”) with the SEC on October 23, 2012. The Property column presented on the pro forma consolidated statement of operations for the nine months ended September 30, 2012 includes the operating activity of the Property for the full nine months, as the Property was acquired subsequent to September 30, 2012 and therefore was not included in the Company’s historical financial statements. The Property column presented on the pro forma consolidated statement of operations for the year ended December 31, 2011 includes the full year’s operating activity for the Property. The pro forma adjustments columns include the impact of purchase accounting and other adjustments for the periods presented. The Property will be included in the consolidated financial statements included in the Company’s Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2012, to be filed with the SEC.

The unaudited pro forma condensed consolidated statements of operations for the Company and the Property for the nine months ended September 30, 2012 and the year ended December 31, 2011, give effect to the Company’s acquisition of the Property, as if it had occurred on the first day of the earliest period presented. The Wheeler REIT column for the nine months ended September 30, 2012 and the year ended December 31, 2011 represent the pro forma results of operations presented in the Company’s Form 10-Q filed with the SEC on December 7, 2012 for the nine months ended September 30, 2012. The Company’s September 2012 and December 2011 pro forma results of operations include the estimated impact of the November 16, 2012 formation and offering transactions and as described in the Company’s Registration Statement.

The unaudited pro forma condensed consolidated financial statements have been prepared by the Company’s management based upon the historical financial statements of the Company and of the acquired Property. These pro forma statements may not be indicative of the results that actually would have occurred had the acquisitions been in effect on the dates indicated or which may be obtained in the future.

In management’s opinion, all adjustments necessary to reflect the effects of the Property acquisition have been made. These unaudited pro forma statements are for informational purposes only and should be read in conjunction with the historical financial statements of the Company, including the related notes thereto, which were filed with the SEC on October 23, 2012 as part of the Company’s Registration Statement on Form S-11 and on December 7, 2012 as part of its Form 10-Q for the quarter ended September 30, 2012.

Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Pro Forma Condensed Consolidated Balance Sheet

As of September 30, 2012

(unaudited)

 

     Wheeler REIT     Property     Pro Forma
Consolidated		  
     (A)     (B)        

ASSETS:

       

Net investment properties

    $ 35,493,740      $ 3,841,227      $ 39,334,967   

Cash and cash equivalents

      7,352,504        (1,452,416 )      5,900,088   

Tenant and other receivables

      718,626        —          718,626   

Deferred costs, reserves, intangibles and other assets

      1,717,436        1,248,849        2,966,285   
  

 

 

    

 

 

    

 

 

  

Total Assets

    $ 45,282,306      $ 3,637,660      $ 48,919,966   
  

 

 

    

 

 

    

 

 

  

LIABILITIES:

       

Mortgages and other indebtedness

    $ 25,203,189      $ 3,375,000      $ 28,578,189   

Accounts payable, accrued expenses and other liabilities

      412,654        —          412,654   

Below market lease intangibles

      3,156,441        262,660        3,419,101   

Due to related parties

      89,615        —          89,615   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      28,861,899        3,637,660        32,499,559   
  

 

 

    

 

 

    

 

 

  

Commitments and contingencies

      —          —          —     

EQUITY:

       

Common stock

      33,015        —          33,015   

Additional paid-in capital

      14,223,484        —          14,223,484   

Accumulated deficit

      (4,691,271 )      —          (4,691,271 ) 

Noncontrolling interest

      6,855,179        —          6,855,179   
  

 

 

    

 

 

    

 

 

  

Total Equity

      16,420,407        —          16,420,407   
  

 

 

    

 

 

    

 

 

  

Total Liabilities and Equity

    $ 45,282,306      $ 3,637,660      $ 48,919,966   
  

 

 

    

 

 

    

 

 

  

See accompanying notes to unaudited pro forma consolidated financial statements.

Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Pro Forma Condensed Consolidated Statement of Operations

For the Nine Months Ended September 30, 2012

(unaudited)

 

     Wheeler REIT     Property      Pro Forma
Adjustments		     Pro Forma
Consolidated		  
     (A)     (B)      (C)        

REVENUES:

          

Rental income

    $ 1,198,852      $ 327,043       $ 16,117 (1)    $ 1,542,012   

Tenant reimbursements and other income

      305,534        92,765         —          398,299   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Revenues

      1,504,386        419,808         16,117        1,940,311   
  

 

 

    

 

 

     

 

 

    

 

 

  

OPERATING EXPENSES AND CERTAIN OPERATING EXPENSE OF ACQUIRED:

          

Property operating

      210,109        53,684         —          263,793   

Real estate taxes

      80,204        40,392         —          120,596   

Repairs and maintenance

      41,995        4,725         —          46,720   

Depreciation and amortization

      556,452        —           201,061 (2)      757,513   

Corporate general & administrative

      757,073        —           —          757,073   

Other

      30,581        485         —          31,066   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Operating Expenses and Certain Operating Expense of Acquired

      1,676,414        99,286         201,061        1,976,761   
  

 

 

    

 

 

     

 

 

    

 

 

  

Operating Income (Loss) and Excess of Acquired Revenues Over Certain Operating Expenses

      (172,028 )      320,522         (184,944 )      (36,450 ) 

Interest expense

      (593,496 )      —           (122,799 )(3)      (716,295 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Net Income (Loss)

    $ (765,524 )    $ 320,522       $ (307,743 )    $ (752,745 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

See accompanying notes to unaudited pro forma consolidated financial statements.

Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2011

(unaudited)

 

     Wheeler REIT     Property      Pro Forma
Adjustments		     Pro Forma
Consolidated		  
     (D)     (E)      (C)        

REVENUES:

          

Rental income

    $ 1,464,608      $ 440,765       $ 21,489 (1)    $ 1,926,862   

Tenant reimbursements and other income

      460,669        84,856         —          545,525   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Revenues

      1,925,277        525,621         21,489        2,472,357   
  

 

 

    

 

 

     

 

 

    

 

 

  

OPERATING EXPENSES AND CERTAIN OPERATING EXPENSES OF ACQUIRED:

          

Property operating

      352,508        61,332         —          413,840   

Real estate taxes

      104,555        56,719         —          161,274   

Repairs and maintenance

      63,253        4,339         —          67,592   

Depreciation and amortization

      744,931        —           268,081 (2)      1,013,012   

Provision for credit losses

      20,000        —           —          20,000   

Corporate general & administrative

      321,178        —           —          321,178   

Other

      67,482        242         —          67,724   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Operating Expenses and Certain Operating Expenses of Acquired

      1,673,907        122,632         268,081        2,064,620   
  

 

 

    

 

 

     

 

 

    

 

 

  

Operating Income (Loss) and Excess of Acquired Revenues Over Certain Operating Expenses

      251,370        402,989         (246,592 )      407,737   

Interest expense

      (805,969 )      —           (213,734 )(3)      (1,019,703 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Net Income (Loss) and Excess of Acquired Revenues Over Certain Operating Expenses

    $ (554,599 )    $ 402,989       $ (460,326 )    $ (611,966 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

See accompanying notes to unaudited pro forma consolidated financial statements.

Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Notes to Pro Forma Condensed Consolidated Financial Statements

(unaudited)

 

1. Balance Sheet

 

  A. Reflects the unaudited pro forma condensed consolidated balance sheet of the Company as of September 30, 2012 which gives effect to the formation and offering transactions disclosed in the Company’s Form 10-Q for the nine months ended September 30, 2012.

 

  B. Represents the pro forma effect of the Company’s $4.50 million acquisition of the Property, assuming it occurred on September 30, 2012. The Company has initially allocated the purchase price of the acquired Property to land, building and improvements, identifiable intangible assets and to the acquired liabilities based on their estimated fair values. Identifiable intangibles include amounts allocated to acquired above/below market leases, the value of in-place leases and customer relationships value, if any. The Company determined fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends and specific market and economic conditions that may affect the Property. Factors considered by management in its analysis of determining the as-if-vacant property value include an estimate of carrying costs during the expected lease-up periods considering market conditions, and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and estimates of lost rentals at market rates during the expected lease-up periods, tenant demand and other economic conditions. Management also estimates costs to execute similar leases including leasing commissions, tenant improvements, legal and other related expenses. Intangibles related to above/below market leases and in-place lease value are recorded as acquired lease intangibles and are amortized as an adjustment to rental revenue or amortization expense, as appropriate, over the remaining terms of the underlying leases.

 

2. Statements of Operations

 

  A. Reflects the unaudited pro forma condensed consolidated statements of operations of the Company for the nine months ended September 30, 2012 which gives effect to the formation and offering transactions disclosed in the Company Form 10-Q for the nine months ended September 30, 2012.

 

  B. Amounts reflect certain historical operations of the Property for the nine months ended September 30, 2012, unless otherwise noted.

 

  C. Represents the unaudited pro forma adjustments related to the acquisition for the period presented.

 

  (1) Represents above/below market lease amortization.

 

  (2) Represents the depreciation and amortization of the buildings, leasing commissions and capitalized legal/marketing costs resulting from the purchase price allocation in accordance with U.S. generally accepted accounting principles.

 

  (3) Represents interest expense on mortgage debt executed as part of the acquisition.

 

  D. Reflects the unaudited pro forma condensed consolidated statements of operations of the Company for the year ended December 31, 2011 which gives effect to the formation and offering transactions disclosed in the Company’s Form 10-Q for the nine months ended September 30, 2012.

 

  E. Amounts reflect the historical operations of the Property for the year ended December 31, 2011, unless otherwise noted.