Exhibit 99.1
FOR IMMEDIATE RELEASE
WHEELER REAL ESTATE INVESTMENT TRUST, INC. ANNOUNCES
2013 FIRST QUARTER FINANCIAL RESULTS
Virginia Beach, VA – May 15, 2013 – Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) (“Wheeler” or the “Company”), today reported financial results for the three month period ended March 31, 2013.
2013 First Quarter Summary of Activities
| • | Property portfolio occupancy rate of 94.3% |
| • | The Company signed a contract to purchase Bixby Commons, a 75,000 square foot free-standing retail property located in Bixby, Oklahoma for the purchase price of approximately $10.6 million. Principle tenant is Associated Wholesale Grocers, Inc., and is secured under an initial 20-year lease term. |
| • | For the three month period, the Company’s Board of Directors declared monthly cash dividends of approximately $0.035 per a share. |
2013 First Quarter Financial Highlights
| • | Wheeler reported Funds from Operations (“FFO”) for the three month period ended March 31, 2013 of $168,794, or $0.05 per basic and diluted share. Same store total FFO was negative $261,103, primary due to the added corporate general and administrative expenses related to operating as a publicly traded company. While new store total FFO was $429,897 for the period. |
| • | Total revenue for the first quarter of 2013 was $1.6 million. Same store revenue was $497,772 for the period ended March 31, 2013 and new store revenue was approximately $1.1 million. |
| • | Property net operating income (“NOI”) was $1.3 million for the quarter ended March 31, 2013. Same store NOI was approximately $397,638, while new store NOI was approximately $919,576. |
| • | Net loss attributable to Wheeler REIT for common stockholders for the period ended March 31, 2013 was $433,682, or $0.13 per basic and diluted share. |
| • | Total operating expense was $1.5 million for the first quarter of 2013. New stores operating expenses were $824,391, while same store operating expenses were $723,235 for the period ended March 31, 2013. |
Additional “same store” and “new store” information is included in the accompanying tables.
FFO is a non-GAAP financial measure within the meaning of the rules of the Securities and Exchange Commission. See the discussion included in this press release for information regarding non-GAAP financial measures. A reconciliation of non-GAAP financial measures is included in the accompanying financial tables.
| Wheeler Real Estate Investment Trust | Page 2 | |
| May 15, 2013 |
Portfolio Summary
| Property |
Location | Year Built/Renovated | GLA | % Leased | ||||||||
| Amscot Building |
Tampa, FL | 2004 | 2,500 | 100 | % | |||||||
| Harps Food Store |
Grove, OK | 2012 | 31,500 | 100 | % | |||||||
| Lumber River Village |
Lumberton, NC | 1985/1997-98/2004 | 66,781 | 100 | % | |||||||
| Monarch Bank |
Virginia Beach, VA | 2002 | 3,620 | 100 | % | |||||||
| Perimeter Square |
Tulsa, OK | 1982-1983 | 58,277 | 95.7 | % | |||||||
| Riversedge North |
Virginia Beach, VA | 2007 | 10,550 | 100 | % | |||||||
| Shoppes at TJ Maxx |
Richmond, VA | 1982/1999 | 93,552 | 90.6 | % | |||||||
| Surrey Plaza |
Hawkinsville, GA | 1993 | 42,680 | 100 | % | |||||||
| The Shoppes at Eagle Harbor |
Carrollton, VA | 2009 | 23,303 | 100 | % | |||||||
| Twin City Crossing |
Batesburg-Leesville, SC | 1998/2002 | 47,680 | 100 | % | |||||||
| Walnut Hill Plaza |
Petersburg, VA | 1959/2006/2008 | 89,907 | 82.7 | % | |||||||
|
|
|
|
|
|||||||||
| Totals |
470,350 | 94.3 | % | |||||||||
|
|
|
|
|
|||||||||
2013 Dividend Distribution History
| Announce Date |
Record Date | Pay Date | Amount | Frequency | ||||||||
| 4/16/2013 |
4/30/2013 | 5/31/2013 | 0.035 | Monthly | ||||||||
| 3/15/2013 |
3/31/2013 | 4/30/2013 | 0.035 | Monthly | ||||||||
| 2/19/2013 |
3/1/2013 | 3/31/2013 | 0.035 | Monthly | ||||||||
| 1/16/2013 |
2/1/2013 | 2/28/2013 | 0.035 | Monthly | ||||||||
|
|
|
|||||||||||
| Total Amount Paid to Shareholders: |
$ | 613,989 | ||||||||||
|
|
|
|||||||||||
Acquisition Activity Subsequent to First Quarter 2013
Currently, the Company has entered into assignments of purchase and sale agreements with Wheeler Interest, LLC to assume the contracts of four third-party retail focused properties. Additionally, the Company has entered into purchase and sale agreements to acquire a third-party retailed focused property and an adjoining parcel of vacant land.
The Company has also entered into purchase contacts with five related-party sellers to acquire an additional three shopping centers, one strip center and one free-standing retail building.
Additional information regarding these properties will be available upon filing the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2013 via the U.S. Securities and Exchange Commission website (www.sec.gov).
About Wheeler Real Estate Investment Trust, Inc.
Headquartered in Virginia Beach, VA, the Company specializes in owning, acquiring, financing, developing, renovating, leasing and managing income producing assets, such as community centers, neighborhood centers, strip centers and free-standing retail properties. Wheeler’s portfolio contains strategically selected properties, primarily leased by nationally and regionally recognized retailers of consumer goods and located in the Mid-Atlantic, Southeast and Southwest regions of the United States.
Additional information about Wheeler and its properties can be found at its corporate website: www.whlr.us.
Financial Information
Additional information about Wheeler, including a copy of Wheeler’s Quarterly Report on Form 10-Q which includes the Company’s consolidated financial statements and Management’s Discussion & Analysis, will be available upon filing via the U.S. Securities and Exchange Commission website (www.sec.gov) or through Wheeler’s website at www.whlr.us.
| Wheeler Real Estate Investment Trust | Page 3 | |
| May 15, 2013 |
Forward-Looking Statement
This press release contains forward-looking statements, including discussion and analysis of our financial condition, anticipated capital expenditures required to complete projects, amounts of anticipated cash distributions to the Company’s shareholders in the future and other matters. These forward-looking statements are not historical facts but are the intent, belief or current expectations of management based on its knowledge and understanding of our business and industry. Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “potential,” “predicts,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or the negative of such terms and variations of these words and similar expressions. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.
Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. You are cautioned to not place undue reliance on forward-looking statements, which reflect management’s view only as of the date of this press release. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Factors that could cause actual results to differ materially from any forward-looking statements made in this press release include:
| • | the imposition of federal taxes if the Company fails to qualify as a REIT in any taxable year or opts to forego an opportunity to ensure REIT status; |
| • | uncertainties related to the national economy, the real estate industry in general and in our specific markets; |
| • | legislative or regulatory changes, including changes to laws governing REITs; |
| • | adverse economic or real estate developments in Virginia, Florida, Georgia, South Carolina, North Carolina or Oklahoma; |
| • | increases in interest rates and operating costs; |
| • | inability to obtain necessary outside financing; |
| • | litigation risks; |
| • | lease-up risks; |
| • | inability to obtain new tenants upon the expiration of existing leases; |
| • | inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws; and |
| • | the need to fund tenant improvements or other capital expenditures out of operating cash flow. |
| CONTACT: | -OR- | INVESTOR RELATIONS: | ||
| Wheeler Real Estate Investment Trust, Inc. | The Equity Group Inc. | |||
| Robin Hanisch | Adam Prior | |||
| Corporate Secretary | Senior Vice President | |||
| (757) 627-9088 / robin@whlr.us | (212) 836-9606 / aprior@equityny.com | |||
| Terry Downs | ||||
| Associate | ||||
| (212) 836-9615 / tdowns@equityny.com | ||||
| Wheeler Real Estate Investment Trust | Page 4 | |
| May 15, 2013 |
Wheeler Real Estate Investment Trust
Condensed Consolidated Statements of Income
(in thousands, except for share data)
| Three Months Ended March 31, | ||||||||
| 2013 | 2012 | |||||||
| REVENUE: |
||||||||
| Rental revenues |
$ | 1,393,032 | $ | 396,732 | ||||
| Other revenues |
224,884 | 133,111 | ||||||
|
|
|
|
|
|||||
| Total Revenue |
1,617,916 | 529,843 | ||||||
|
|
|
|
|
|||||
| OPERATING EXPENSES: |
||||||||
| Property operations |
300,702 | 115,177 | ||||||
| Depreciation and amortization |
648,132 | 186,611 | ||||||
| Provision for credit losses |
15,000 | — | ||||||
| Corporate general & administrative |
583,792 | 170,302 | ||||||
|
|
|
|
|
|||||
| Total Operating Expenses |
1,547,626 | 472,090 | ||||||
|
|
|
|
|
|||||
| Operating Income (Loss) |
70,290 | 57,753 | ||||||
| Interest expense |
(549,628 | ) | (197,904 | ) | ||||
|
|
|
|
|
|||||
| Net Loss |
(479,338 | ) | (140,151 | ) | ||||
| Less: Net loss attributable to noncontrolling interests |
(45,656 | ) | — | |||||
|
|
|
|
|
|||||
| Net Loss Attributable to Wheeler REIT |
$ | (433,682 | ) | $ | (140,151 | ) | ||
|
|
|
|
|
|||||
| Loss per share: |
||||||||
| Basic and Diluted |
$ | (0.13 | ) | |||||
|
|
|
|||||||
| Weighted-average number of shares: |
||||||||
| Basic and Diluted |
3,301,502 | |||||||
|
|
|
|||||||
| Wheeler Real Estate Investment Trust | Page 5 | |
| May 15, 2013 |
Wheeler Real Estate Investment Trust
Consolidated Balance Sheets
(in thousands, except for share data)
| March 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| (unaudited) | ||||||||
| ASSETS: |
||||||||
| Investment properties, at cost |
$ | 46,748,018 | $ | 46,637,221 | ||||
| Less accumulated depreciation and amortization |
3,612,525 | 3,291,556 | ||||||
|
|
|
|
|
|||||
| 43,135,493 | 43,345,665 | |||||||
| Cash and cash equivalents |
1,053,480 | 2,053,192 | ||||||
| Rents and other tenant receivables, net |
815,658 | 761,114 | ||||||
| Deferred costs and other assets |
6,360,737 | 6,527,906 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 51,365,368 | $ | 52,687,877 | ||||
|
|
|
|
|
|||||
| LIABILITIES: |
||||||||
| Mortgages and other indebtedness |
$ | 31,821,342 | $ | 31,843,503 | ||||
| Below market lease intangible, net |
3,523,869 | 3,673,019 | ||||||
| Accounts payable, accrued expenses and other liabilities |
808,792 | 938,896 | ||||||
| Total Liabilities |
36,154,003 | 36,455,418 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
— | — | ||||||
| EQUITY: |
||||||||
| Convertible preferred stock (no par value, 500,000 shares authorized, no shares issued and outstanding, respectively) |
— | — | ||||||
| Common stock ($0.01 par value, 15,000,000 shares authorized, 3,301,502 and 3,301,502 shares issued and outstanding, respectively) |
33,015 | 33,015 | ||||||
| Additional paid-in capital |
14,097,453 | 14,097,453 | ||||||
| Accumulated deficit |
(6,418,537 | ) | (5,443,099 | ) | ||||
|
|
|
|
|
|||||
| Total Shareholders’ Equity |
7,711,931 | 8,687,369 | ||||||
| Noncontrolling interests |
7,499,434 | 7,545,090 | ||||||
|
|
|
|
|
|||||
| Total Equity |
15,211,365 | 16,232,460 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Equity |
$ | 51,365,368 | $ | 52,687,877 | ||||
|
|
|
|
|
|||||
| Wheeler Real Estate Investment Trust | Page 6 | |
| May 15, 2013 |
The following tables provide same store and new store financial information. Same store date includes the results for the three month period ended March 31, 2013 of the following entities that were part of the original REIT formation transaction:
| • | The Shoppes at Eagle Harbor |
| • | Monarch Bank Building |
| • | Amscot Building |
| • | Riversedge North |
| • | Walnut Hill Plaza |
New store financial information reflects the activity from the acquisition date to March 31, 2013
| • | Lumber River Village (acquired November 16, 2012)) |
| • | Perimeter Square (acquired November 16, 2012) |
| • | Shoppes at TJ Maxx (acquired November 16, 2012) |
| • | Harps at Harbor Point (acquired December 14, 2012) |
| • | Twin City Crossing (acquired December 18, 2012) |
| • | Surrey Plaza (acquired December 21, 2012) |
Wheeler Real Estate Investment Trust
Funds From Operations
Three Months Ended March 31,
| Same Stores | New Stores | Totals | Period Over
Period Changes |
|||||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | $ | % | |||||||||||||||||||||||||
| Net income (loss) |
$ | (385,751 | ) | $ | (140,151 | ) | $ | (93,587 | ) | $ | — | $ | (479,338 | ) | $ | (140,151 | ) | $ | (339,187 | ) | (242.02 | %) | ||||||||||
| Depreciation of real estate assets |
124,648 | 186,611 | 523,484 | — | 648,132 | 186,611 | 461,521 | 247.32 | % | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total FFO |
$ | (261,103 | ) | $ | 46,460 | $ | 429,897 | $ | — | $ | 168,794 | $ | 46,460 | $ | 122,334 | 263.31 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Funds From Operations (FFO)
Wheeler considers FFO to be an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO exclude depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income.
| Wheeler Real Estate Investment Trust | Page 7 | |
| May 15, 2013 |
Wheeler Real Estate Investment Trust
Same Store and New Store Operating Income
| Three Months Ended March 31, | ||||||||||||||||||||||||
| Same Store | New Store | Total | ||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
| Property revenues |
$ | 497,772 | $ | 529,843 | $ | 1,120,144 | $ | — | $ | 1,617,916 | $ | 529,843 | ||||||||||||
| Property expenses |
100,134 | 115,177 | 200,568 | — | 300,702 | 115,177 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Property Net Operating Income |
397,638 | 414,666 | 919,576 | — | 1,317,214 | 414,666 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Depreciation and amortization |
124,648 | 186,611 | 523,484 | — | 648,132 | 186,611 | ||||||||||||||||||
| Provision for credit losses |
— | — | 15,000 | — | 15,000 | — | ||||||||||||||||||
| Corporate general & administrative |
498,453 | 170,302 | 85,339 | — | 583,792 | 170,302 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Other Operating Expenses |
623,101 | 356,913 | 623,823 | — | 1,246,924 | 356,913 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Interest expense |
160,288 | 197,904 | 389,340 | — | 549,628 | 197,904 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net Loss |
$ | (385,751 | ) | $ | (140,151 | ) | $ | (93,587 | ) | $ | — | $ | (479,338 | ) | $ | (140,151 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||