Exhibit 99.2

Supplemental Operating and Financial Data

for the three months ended March 31, 2014

 

 

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Table of Contents

 

     Page  

Company Overview

     3   

Financial and Portfolio Overview

     5   

Consolidated Balance Sheets

     6   

Consolidated Statements of Operations

     7   

Reconciliation of Non-GAAP Measures

     8   

Debt Summary

     9   

Portfolio Summary

     10   

Top Ten Tenants by Annualized Base Rent

     11   

Leasing Summary

     12   

Definitions

     13   

Forward-Looking Statements

This document contains forward-looking statements that are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks include, without limitation: adverse economic or real estate developments in the retail industry or the markets in which Wheeler Real Estate Investment Trust operates; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; Wheeler Real Estate Investment Trust’s failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; Wheeler Real Estate Investment Trust’s inability to successfully complete real estate acquisitions or successfully operate acquired properties and Wheeler Real Estate Investment Trust’s failure to qualify or maintain its status as a REIT. For a further list and description of such risks and uncertainties that could impact Wheeler Real Estate Investment Trust’s future results, performance or transactions, see the reports filed by Wheeler Real Estate Investment Trust with the Securities and Exchange Commission, including its offering prospectus filed on Form S-11 (as amended) on April 23, 2014, quarterly reports on Form 10-Q and annual reports on Form 10-K. Wheeler Real Estate Investment Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

Wheeler Real Estate Investment Trust  |  Supplemental Operating and Financial Data 

 

 

 

 

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Company Overview

Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. (“Wheeler” or 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 Northeastern, Mid-Atlantic, Southeast and Southwest regions of the United States. Wheeler’s common stock, Series B Convertible preferred stock and common stock warrants trade publicly on the Nasdaq under the symbols “WHLR”, “WHLRP” and “WHLRW”, respectively.

Corporate Headquarters

Wheeler Real Estate Investment Trust Inc.

Riversedge North

2529 Virginia Beach Boulevard

Virginia Beach, VA 23452

Phone: (757) 627-9088

Toll Free: (866) 203-4864

Email: info@whlr.us

Website: www.whlr.us

Executives Management

Jon S. Wheeler - Chairman & CEO

Steven M. Belote - CFO

Robin A. Hanisch - Secretary

 

Board of Directors  
Jon S. Wheeler, Chairman   Sanjay Madhu
Christopher J. Ettel   Carl B. McGowan, Jr.
David Kelly   Ann L. McKinney
William W. King   Jeffrey M. Zwerdling

 

 

Wheeler Real Estate Investment Trust  |  Supplemental Operating and Financial Data 

 

 

 

 

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   Transfer Agent and Registrar
Investor Relations Contact    Computershare Trust Company, N.A.
The Equity Group Inc.    250 Royall Street
800 Third Avenue, 36th Floor    Canton, MA 02021
New York, NY 10022    www.computershare.com
Adam Prior, Senior Vice President   
Phone: (212) 836-9606, aprior@equityny.com   
Terry Downs, Associate   
Phone: (212) 836-9615, tdowns@equityny.com   

 

 

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Financial and Portfolio Overview

For the Three Months Ended March 31, 2014

 

Financial Results

  

Net loss attributable to Wheeler REIT common stockholders

   ($ 1,199,339

Net loss per basic and diluted share

   ($ 0.17

Funds from operations (FFO)

   $ 539,714   

FFO per common share and Operating Partnership (“OP”) unit

   $ 0.06   

Core FFO

   $ 596,714   

Core FFO per common share and OP unit

   $ 0.06   

Assets

  

Investment Properties, net (less accumulated depreciation and amortization)

   $ 101,254,487   

Total Assets

   $ 125,088,419   

Debt to Total Assets

     77.1%   

Market Capitalization

  

Common shares outstanding

     7,216,238   

OP units outstanding

     1,977,905   

Total common shares and OP units

     9,194,143   

Range of closing prices for the first quarter 2014

   $ 4.20-4.60   

Closing price at first quarter end

   $ 4.59   

Preferred shares

     1,809   

Total debt

   $ 96,477,256   

Market capitalization (as of March 31 ,2014 closing stock price)

   $ 33,122,532   

Portfolio Summary

  

Total Gross Leasable Area (GLA)

     1,294,572 sq. ft.   

Occupancy Rate

     94.2%   

Annualized Base Rent

   $ 11,702,609   

Total number of leases signed or renewed during the first quarter of 2014

     7   

Total sq. ft. leases signed or renewed during the first quarter of 2014

     10,386 sq. ft.   

 

 

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Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

     March 31,
2014
    December 31,
2013
 

ASSETS:

    

Investment properties, net

   $ 101,254,487      $ 101,772,335  

Cash and cash equivalents

     2,136,330        1,155,083  

Rents and other tenant receivables, net

     1,869,008        1,594,864  

Deferred costs and other assets, net

     19,828,594        20,847,984  
  

 

 

   

 

 

 

Total Assets

   $ 125,088,419      $ 125,370,266  
  

 

 

   

 

 

 

LIABILITIES:

    

Loans payable

   $ 96,477,256      $ 94,562,503  

Below market lease intangible, net

     2,645,626        2,674,566  

Accounts payable, accrued expenses and other liabilities

     2,608,844        2,526,388  
  

 

 

   

 

 

 

Total Liabilities

     101,731,726        99,763,457  
  

 

 

   

 

 

 

Commitments and contingencies

     —         —    

EQUITY:

    

Series A preferred stock (no par value, 5,000,000 and 500,000 shares authorized, 1,809 shares issued and outstanding, respectively)

     1,458,050        1,458,050  

Common stock ($0.01 par value, 75,000,000 shares authorized, 7,216,238 and 7,121,000 shares issued and outstanding, respectively)

     72,162        71,210   

Additional paid-in capital

     28,563,214       28,169,693  

Accumulated deficit

     (13,255,297 )     (11,298,253 )
  

 

 

   

 

 

 

Total Shareholders’ Equity

     16,838,129       18,400,700  

Noncontrolling interests

     6,518,564       7,206,109  
  

 

 

   

 

 

 

Total Equity

     23,356,693       25,606,809  
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 125,088,419     $ 125,370,266  
  

 

 

   

 

 

 

 

 

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Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

 

     Three Months Ended
March 31,
 
     2014     2013  

TOTAL REVENUES

   $ 3,664,152      $ 1,617,916   
  

 

 

   

 

 

 

OPERATING EXPENSES:

    

Property operations

     923,182        300,702   

Depreciation and amortization

     1,785,602        648,132   

Provision for credit losses

     —          15,000   

Corporate general & administrative

     832,318        583,792   
  

 

 

   

 

 

 

Total Operating Expenses

     3,541,102        1,547,626   
  

 

 

   

 

 

 

Operating Income

     123,050        70,290   

Interest expense

     (1,368,938     (549,628
  

 

 

   

 

 

 

Net Loss

     (1,245,888     (479,338

Less: Net loss attributable to noncontrolling interests

     (87,252     (45,656
  

 

 

   

 

 

 

Net Loss Attributable to Wheeler REIT

     (1,158,636     (433,682

Preferred stock dividends

     (40,703     —     
  

 

 

   

 

 

 

Net Loss Attributable to Wheeler REIT Common Shareholders

   $ (1,199,339   $ (433,682
  

 

 

   

 

 

 

Loss per share:

    

Basic and Diluted

   $ (0.17   $ (0.13
  

 

 

   

 

 

 

Weighted-average number of shares:

    

Basic and Diluted

     7,185,550        3,301,502   
  

 

 

   

 

 

 

 

 

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Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Reconciliation of Non-GAAP Measures

 

FFO and Core FFO    Three Months Ended
March 31,
 
     2014     2013  

Net Loss

   $ (1,245,888   $ (479,338

Depreciation of real estate assets

     1,785,602        648,132   

Total FFO

     539,714      $ 168,794   

Legal and accounting costs for acquisitions

     57,000        —     
  

 

 

   

Total Core FFO

   $ 596,714      $ 168,794   
  

 

 

   

 

 

 

Total FFO per common share and OP unit

   $ 0.06      $ 0.03
  

 

 

   

 

 

 

Total Core FFO per common share and OP unit

   $ 0.06      $ 0.03
  

 

 

   

 

 

 

 

* as of March 31, 2013, there were 5,159,570 common stock and OP units outstanding

 

Property Net Operating Income    Three Months Ended
March 31,
 
     2014     2013  

Property Revenues

   $ 3,664,152      $ 1,617,916   

Property Expenses

     923,182        300,702   
  

 

 

   

 

 

 

Property Net Operating Income

     2,740,970        1,317,214   
  

 

 

   

 

 

 

Depreciation and amortization

     1,785,602        648,132   

Provision for credit losses

     —          15,000   

Corporate general & administrative

     832,318        583,792   
  

 

 

   

 

 

 

Total Other Operating Expenses

     2,617,920        1,246,924   
  

 

 

   

 

 

 

Interest Expense

     1,368,938        549,628   
  

 

 

   

 

 

 

Net Loss

   $ (1,245,888   $ (479,338
  

 

 

   

 

 

 
EBITDA    Three Months Ended
March 31,
 
     2014     2013  

Net Loss

   $ (1,245,888   $ (479,338

Add back: Depreciation and amortization

     1,785,602        648,132   

Interest Expense

     1,368,938        549,628   
  

 

 

   

 

 

 

EBITDA

   $ 1,908,652      $ 718,422   
  

 

 

   

 

 

 

 

 

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Debt Summary

For the Three Months Ended March 31, 2014

Loans Payable: $96.5 million

Weighted Average Interest Rate: 5. 39%

Total Debt to Total Assets: 77.1%

 

Maturities by Year

   Amount      % Total Maturities  

2015

   $ 6,449,206         6.68

2016

     18,713,454         19.40

2017

     13,839,365         14.34

2018

     5,826,154         6.04

2019

     14,639,572         15.17

Thereafter

     37,009,505         38.37
  

 

 

    

 

 

 

Total principal maturities

   $ 96,477,256         100.00
  

 

 

    

 

 

 

 

     Monthly      Interest          March 31,      December 31,  

Property/Description

   Payment      Rate    

Debt Maturity

   2014      2013  

Shoppes at Eagle Harbor

   $ 24,692         4.34   March 2018    $ 3,872,280       $ 3,905,321   

Lumber River Plaza

   $ 18,414         5.65   May 2015      2,953,925         2,973,987   

Monarch Bank Building

   $ 9,473         4.15   December 2017      1,470,156         1,483,230   

Perimeter Square

   $ 28,089         6.38   June 2016      4,386,363         4,417,812   

Riversedge North

   $ 13,556         6.00   January 2019      2,047,118         2,061,790   

Walnut Hill Plaza

   $ 25,269         6.75   July 2014      3,447,027         3,464,465   

Harps at Harbor Point

   $ 18,122         3.99   December 2015      3,314,471         3,335,628   

Twin City Commons

   $ 17,827         4.86   January 2023      3,317,029         3,330,108   

Shoppes at TJ Maxx

   $ 33,880         3.88   May 2020      6,369,477         6,409,077   

Bixby Commons

     Interest only         2.77   June 2018      6,700,000         6,700,000   

Bank Line of Credit

     Interest only         4.50   May 2015      2,000,000         2,000,000   

Forrest Gallery

   $ 50,973         5.40   September 2023      9,075,000         9,075,000   

Jenks Reasors

     Interest only         4.25   September 2016      8,550,000         8,550,000   

Tampa Festival

   $ 50,797         5.56   September 2023      8,830,536         8,859,888   

Starbucks/Verizon

   $ 7,405         6.50   July 2015      608,874         621,197   

Winslow Plaza

     Interest only         5.22   December 2015      5,000,000         5,000,000   

Senior convertible notes

     Interest only         9.00   December 2018      6,000,000         6,000,000   

Senior non-convertible notes

     Interest only         9.00   December 2015      4,000,000         4,000,000   

Senior non-convertible notes

     Interest only         9.00   January 2016      2,160,000         —     

South Carolina Food Lions Note

     Interest only         5.25   January 2024      12,375,000         12,375,000   
          

 

 

    

 

 

 

Total Loans Payable

           $ 96,477,256       $ 94,562,503   
          

 

 

    

 

 

 

 

 

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Portfolio Summary

(as of March 31, 2014)

 

Property

 

Location

 

Year Built/

Renovated

   Net
Rentable
Square
Feet
    

Number
of
Tenants

   Percentage
Leased
    Annualized
Base Rent
     Annualized
Base Rent
per Leased
Sq. Foot
 

Amscot

  Tampa, FL   2004      2,500       1      100.0   $ 100,738       $ 40.30   

Bixby Commons

  Bixby, OK   2012      75,000       1      100.0     768,500         10.25   

Clover Plaza

  Clover, SC   1990      45,575       10      100.0     348,327         7.64   

Forrest Gallery

  Tullahoma, TN   1987      214,451       25      91.2     1,156,067         5.91   

Harps

  Grove, OK   2012      31,500       1      100.0     364,432         11.57   

Jenks Plaza

  Jenks, OK   2007      7,800       5      100.0     140,152         17.97   

Jenks Reasors

  Jenks, OK   2011      81,000       1      100.0     912,000         11.26   

Lumber River Village

  Lumberton, NC  

1985/1997

-98

(expansion)/2004

     66,781       12      100.0     524,366         7.85   

Monarch Bank

  Virginia Beach, VA   2002      3,620       1      100.0     243,241         67.19   

Perimeter Square

  Tulsa, OK   1982-1983      58,277       8      95.7     674,973         12.10   

Riversedge North

  Virginia Beach, VA   2007      10,550       1      100.0     294,056         27.87   

Shoppes at TJ Maxx

  Richmond, VA   1982/1999      93,552       15      88.8     933,555         11.24   

South Square

  Lancaster, SC   1992      44,350       5      89.9     316,650         7.95   

Starbucks/ Verizon

  Virginia Beach, VA   1985/2012      5,600       2      100.0     185,695         33.16   

St. George Plaza

  St. George, SC   1982      59,279       6      85.8     353,783         6.96   

Surrey Plaza

  Hawkinsville, GA   1993      42,680       5      100.0     290,745         6.81   

Tampa Festival

  Tampa, FL   1965/2009 /2012      137,987       22      100.0     1,211,410         8.78   

Eagle Harbor

  Carrollton, VA   2009      23,303       7      100.0     445,386         19.11   

Twin City Commons

 

Batesburg-

Leesville, SC

  1998/2002      47,680       5      100.0     449,194         9.42   

Walnut Hill Plaza

  Petersburg, VA   1959/2006 /2008      89,907       11      82.7     587,937         7.91   

Waterway Plaza

  Little River, SC   1991      49,750       9      97.6     424,313         8.74   

Westland Square

  West Columbia, SC   1986/1994      62,735       6      83.1     414,086         7.94   

Winslow Plaza

  Sicklerville, NJ   1990/2009      40,695       15      94.1     563,003         14.70   
      

 

 

    

 

  

 

 

   

 

 

    

 

 

 

Total

         1,294,572       174      94.2   $ 11,702,609       $ 9.59   
      

 

 

    

 

  

 

 

   

 

 

    

 

 

 

 

 

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Top Ten Tenants by Annualized Base Rent

(as of March 31, 2014)

Total Tenants : 174

 

Tenants    Total Net
Rentable
Square Feet
     % of Total
Net Rentable
Square Feet
     Annualized
Base Rent
($ in 000s)
     % of Total
Annualized
Base
Rent
     Base Rent
Per Leased
Square
Foot
 

1.

  Food Lion      146,280         11.30    $ 941         8.04    $ 6.43   

2.

  Reasor’s Foods      81,000         6.26      912         7.79      11.26   

3.

  Bi-Lo      75,498         5.83      576         4.92      7.63   

4.

  Associated Wholesale Grocers      75,000         5.79      769         6.57      10.25   

5.

  Family Dollar      57,427         4.44      359         3.07      6.25   

6.

  Kroger      48,780         3.77      279         2.38      5.72   

7.

  Winn Dixie      45,600         3.52      239         2.04      5.24   

8.

  Peebles      32,680         2.52      173         1.48      5.29   

9.

  TJ Maxx      32,400         2.50      294         2.51      9.07   

10.

  Harvey’s Supermarket      29,000         2.24      187         1.60      6.45   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
       623,665         48.17    $ 4,729         40.40    $ 7.58   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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Leasing Summary

(as of March 31, 2014)

Gross Leasable Area: 1,294,572 square feet

Total Square Footage Leased: 1,220,010 square feet

Occupancy Rate: 94.2%

Lease Expiration Schedule

 

Year

   Number of
Expiring
Leases
     Total Expiring
Net Rentable
Square
Footage
     % of Total
Expiring Net
Rentable Square
Footage
     Expiring
Base Rent
(in 000s)
     % of Total
Base Rent
     Expiring Base
Rent Per Leased
Square Foot
 

Available

     —           74,562         5.76    $ —           —         $ —     

2015

     27         66,111         5.11      766         6.55      11.59   

2016

     34         156,891         12.12      1,465         12.52      9.34   

2017

     36         235,542         18.19      1,844         15.76      7.83   

2018

     31         265,389         20.50      2,478         21.17      9.34   

2019

     18         162,702         12.57      1,374         11.74      8.44   

2020

     11         63,747         4.92      691         5.90      10.84   

2021

     4         13,062         1.01      222         1.90      17.00   

2022

     1         41,980         3.24      357         3.05      8.50   

2023

     6         121,650         9.40      1,455         12.43      11.96   

2024 and thereafter

     6         92,936         7.18      1,051         8.98      11.31   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
        1,294,572         100.00    $ 11,703         100.00    $ 9.59   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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Definitions

Funds from Operations (FFO): an alternative measure of a REITs operating performance, specifically as it relates to results of operations and liquidity. FFO is a measurement that is not in accordance with accounting principles generally accepted in the United States (“GAAP”). Wheeler computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures.

Most industry analysts and equity REITs, including Wheeler, consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions and excluding depreciation, FFO is a helpful tool that can assist in the comparison of the operating performance of a company’s real estate between periods, or as compared to different companies. Management uses FFO as a supplemental measure to conduct and evaluate the business because there are certain limitations associated with using GAAP net income alone as the primary measure of our operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time, while historically real estate values have risen or fallen with market conditions.

Core FFO: Management believes that the computation of FFO in accordance with NAREIT’s definition includes certain items that are not indicative of the operating performance of the Company’s real estate assets. These items include, but are not limited to, non-recurring expenses, legal settlements and acquisition costs. Management uses Core FFO, which is a non-GAAP financial measure, to exclude such items. Management believes that reporting Core FFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): another widely-recognized non-GAAP financial measure that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors and lenders in understanding financial performance and providing a relevant basis for comparison among other companies, including REITs. While EBITDA should not be considered as a substitute for net income attributable to the Company’s common shareholders, net operating income, cash flow from operating activities, or other income or cash flow data prepared in accordance with GAAP, the Company believes that EBITDA may provide additional information with respect to the Company’s performance or ability to meet its future debt service requirements, capital expenditures and working capital requirements. The Company computes EBITDA by excluding interest expense, net loss attributable to noncontrolling interest, and depreciation and amortization, from income from continuing operations.

 

 

Wheeler Real Estate Investment Trust  |  Supplemental Operating and Financial Data 

 

 

 

 

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Net Operating Income (NOI): Wheeler believes that NOI is a useful measure of the Company’s property operating performance. The Company defines NOI as property revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, interest expense, interest income, provision for income taxes, gain or loss on sale or capital expenditures and leasing costs, it provides a performance measure, that when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company’s results, margins and returns. NOI should not be viewed as a measure of the Company’s overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company’s NOI may not be comparable to that of other REITs.

 

 

Wheeler Real Estate Investment Trust  |  Supplemental Operating and Financial Data 

 

 

 

 

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