Exhibit 99.1

 

 

LOGO

FOR IMMEDIATE RELEASE

WHEELER REAL ESTATE INVESTMENT TRUST, INC. ANNOUNCES

2013 SECOND QUARTER AND FIRST HALF FINANCIAL RESULTS

Virginia Beach, VA – August 12, 2013 – Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) (“Wheeler” or the “Company”), today reported financial results for the three and six month periods ended June 30, 2013.

Operating Highlights

 

 

Acquired a 75,000 square foot 100% leased freestanding grocery store located in the Bixby Commons shopping center in Bixby, Oklahoma for a purchase price of approximately $10.6 million.

 

 

At June 30, 2013, portfolio consists of twelve properties, including seven retail shopping centers, four free-standing retail properties, and one office property, totaling 545,350 net rentable square feet.

 

 

95.1% of portfolio was leased as of June 30, 2013.

 

 

For the three month period, the Company’s Board of Directors declared monthly cash dividends of approximately $0.035 per a share.

Jon S. Wheeler, Chairman and Chief Executive Officer, commented, “During the period, we continued to focus on improvements at our current properties, while also continuing our expansion during a favorable time in our targeted markets. We maintained a high occupancy level, successfully renegotiated renewals at a higher per-foot rate, and had no leases expire without renewal during the period. We believe this is a reflection of our property selection, strong market position, “necessity shopping” anchored tenant base, and the constant attention paid to our clients. We believe that this hands-on model is what has helped to provide long-term sustainability among our tenant base.”

Mr. Wheeler continued, “We have also continued to explore methods in which to expand our property base through the purchase of high-quality assets in secondary and tertiary markets. We were pleased to close our largest purchase to date in Bixby Commons, which we feel was acquired under favorable terms and serves as a perfect compliment to our existing portfolio. We look forward to keeping investors apprised of our progress.”


Wheeler Real Estate Investment Trust, Inc.    Page 2             
August 12, 2013   

 

Portfolio Summary and Operational Review

 

Property Overview (at 6/30/2013)

 

Property

   Location    Year Built/Renovated    GLA      % Leased  

Amscot Building

   Tampa, FL    2004      2,500         100

Bixby Commons

   Bixby, Oklahoma    2011      75,000         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

           545,350         95.1
        

 

 

    

 

 

 

 

 

For the six months ended June 30, 2013, Wheeler signed four renewal leases totaling approximately 13,739 square feet with an average weighted increase of $0.31 per square foot. The Company entered into one relocation and expansion agreement that resulted in a $1.76 decrease in the tenants’ rent per square foot but will amount to a $17,000 annual increase for the property.

 

 

Approximately 6.63% of Wheeler’s gross leasable area is subject to leases that expire during the twelve months ending June 30, 2014. Based on recent market trends, the Company believes that these leases will be renewed at amounts and terms comparable to existing lease agreements.

 

 

The Company’s fixed-rate mortgage total was $39.9 million at June 30, 2013, compared to $31.8 million on December 31, 2012. Wheeler’s weighted average interest rate and term of the Company’s fixed-rate debt was 4.56% and 4.31 years, respectively, at June 30, 2013.

Financial Highlights

 

 

Wheeler reported Funds from Operations (“FFO”) for the three month period ended June 30, 2013 of negative $697,653, or negative $0.21 per basic and diluted share, compared to $74,324, or $0.02 per basic and diluted share, in the prior year period. For the six months ended June 30, 2013, FFO was negative $528,859 or negative $0.16 per basic and diluted share. Wheeler’s reported results for the three and six month period included additional general and administrative expenses related to the Company’s property acquisitions, legal matters, professional fees and added cost of operating as a public company. Excluding the impact of acquisition and legal related costs, total FFO for the three and six months ended June 30, 2013 would have been approximately $287,000 and $456,000, respectively.

 

 

Total revenue for the second quarter of 2013 was $1.6 million, compared to $485,815 in the prior year period. For the six months ended June 30, 2013, total revenue increased to $3.2 million from $1.0 million in the prior year period.


Wheeler Real Estate Investment Trust, Inc.    Page 3             
August 12, 2013   

 

 

Property net operating income (“NOI”) was $1.3 million for the quarter ended June 30, 2013, compared to $386,170 in the prior year period. For the six months ended June 30, 2013, property NOI was $2.7 million, compared to $800,936 in the prior year period. The three and six months ended June 30, 2013 represented full periods of operations reported for the properties acquired as part of the Company’s November 2012 formation and those acquired during December 2012, while only a partial month of operations is included for the June 2013 acquisition of Bixby Commons.

 

 

Net loss attributable to Wheeler REIT for common stockholders for the second quarter 2013 was $1.3 million, or $0.39 per basic and diluted share, compared to a net loss of $259,232, or $0.08 per basic and diluted share. For the six months ended June 30, 2013, net loss attributable to Wheeler REIT for common stockholders was $1.7 million, or $0.52 per basic and diluted share, compared to a net loss of $399,383, or $0.12 per basic and diluted share, during the prior year period.

FFO is a non-GAAP financial measure within the meaning of the rules of the Securities and Exchange Commission. 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 excludes 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. A reconciliation of non-GAAP financial measures is included in the accompanying financial tables.

2013 Dividend Distribution

For the six months period ended June 30, 2013, the Company has made five monthly dividend distributions of approximately $0.035 per share, which equals to approximately $902,925 in total cash dividends paid to WHLR shareholders for the six month period.

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, Inc.    Page 4             
August 12, 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, New Jersey, Tennessee, Oklahoma or Pennsylvania;

 

 

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, Inc.    Page 5             
August 12, 2013   

 

Wheeler Real Estate Investment Trust

Condensed Consolidated Statements of Income

(in thousands, except for share data)

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2013     2012     2013     2012  

REVENUE:

        

Rental revenues

   $ 1,425,462      $ 400,059      $ 2,818,494      $ 796,791   

Other revenues

     203,518        85,756        428,402        218,867   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

     1,628,980        485,815        3,246,896        1,015,658   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES:

        

Property operations

     284,868        99,645        585,570        214,822   

Depreciation and amortization

     684,554        184,908        1,332,686        371,519   

Provision for credit losses

     22,903        —          37,903        —     

Corporate general & administrative

     1,572,775        262,951        2,156,567        433,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     2,565,100        547,504        4,112,726        1,019,594   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Loss

     (936,120     (61,689     (865,830     (3,936

Interest expense

     (446,087     (197,543     (995,715     (395,447
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss

     (1,382,207     (259,232     (1,861,545     (399,383

Less: Net loss attributable to noncontrolling interests

     (111,248     —          (156,904     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss Attributable to Wheeler REIT

     (1,270,959     (259,232     (1,704,641     (399,383

Preferred stock dividends

     (22,500     —          (22,500     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss Attributable to Wheeler REIT Common Shareholders

   $ (1,293,459   $ (259,232   $ (1,727,141   $ (399,383
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share:

        

Basic and Diluted

   $ (0.39   $ (0.08   $ (0.52   $ (0.12
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average number of shares:

        

Basic and Diluted

     3,301,502        3,301,502        3,301,502        3,301,502   
  

 

 

   

 

 

   

 

 

   

 

 

 


Wheeler Real Estate Investment Trust, Inc.    Page 6             
August 12, 2013   

 

Wheeler Real Estate Investment Trust

Consolidated Balance Sheets

(in thousands, except for share data)

 

     June 30, 2013     December 31, 2012  
     (unaudited)        

ASSETS:

    

Investment properties, at cost

   $ 55,716,630      $ 46,637,221   

Less accumulated depreciation and amortization

     3,959,898        3,291,556   
  

 

 

   

 

 

 
     51,756,732        43,345,665   

Cash and cash equivalents

     865,855        2,053,192   

Rents and other tenant receivables, net

     836,761        761,114   

Deferred costs and other assets

     8,868,387        6,527,906   
  

 

 

   

 

 

 

Total Assets

   $ 62,327,735      $ 52,687,877   
  

 

 

   

 

 

 

LIABILITIES:

    

Mortgages and other indebtedness

   $ 39,939,296      $ 31,843,503   

Below market lease intangible, net

     3,374,718        3,673,019   

Accounts payable, accrued expenses and other liabilities

     1,411,232        938,896   

Series A convertible preferred stock (no par value, 500,000 shares authorized, 4,500 and no shares issued and outstanding, respectively)

     4,157,000        —     
  

 

 

   

 

 

 

Total Liabilities

     48,882,246        36,455,418   
  

 

 

   

 

 

 

Commitments and contingencies

     —          —     

EQUITY:

    

Common stock ($0.01 par value, 75,000,000 shares authorized, 3,301,502 and 3,301,502 shares issued and outstanding, respectively)

     33,015        33,015   

Additional paid-in capital

     15,566,676        14,097,453   

Accumulated deficit

     (8,073,165     (5,443,099
  

 

 

   

 

 

 

Total Shareholders’ Equity

     7,526,526        8,687,369   

Noncontrolling interests

     5,918,963        7,545,090   
  

 

 

   

 

 

 

Total Equity

     13,445,489        16,232,459   
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 62,327,735      $ 52,687,877   
  

 

 

   

 

 

 


Wheeler Real Estate Investment Trust, Inc.    Page 7             
August 12, 2013   

 

Wheeler Real Estate Investment Trust

Funds From Operations

 

      Three Months Ended June 30, 2013  
     Same Stores     New Stores      Total     Period Over Period Changes  
     2013     2012     2013     2012      2013     2012     $     %  

Net income (loss)

   $ (820,468   $ (259,232   $ (561,739   $ —         $ (1,382,207   $ (259,232   $ (1,122,975     (433.19 %) 

Depreciation of real estate assets

     127,401        184,908        557,153        —           684,554        184,908        499,646        270.21
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total FFO

   $ (693,067   $ (74,324   $ (4,586   $ —         $ (697,653   $ (74,324   $ (623,329     (838.66 %) 
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
      Six Months Ended June 30, 2013  
     Same Stores     New Stores      Total     Period Over Period Changes  
     2013     2012     2013     2012      2013     2012     $     %  

Net income (loss)

   $ (1,206,219   $ (399,383   $ (655,326   $ —         $ (1,861,545   $ (399,383   $ (1,462,162     (366.11 %) 

Depreciation of real estate assets

     252,049        371,519        1,080,637        —           1,332,686        371,519        961,167        258.71
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total FFO

   $ (954,170   $ (27,864   $ 425,311      $ —         $ (528,859   $ (27,864   $ (500,995     (1,798 %)