Exhibit 99.2

 

LOGO

Supplemental Operating and Financial Data

for the three months and six months ended June 30, 2014


Table of Contents

 

     Page  

Company Overview

     3   

Financial and Portfolio Overview

     4   

Financial Summary

  

Consolidated Balance Sheets

     5   

Consolidated Statements of Operations

     6   

Reconciliation of Non-GAAP Measures

     7   

Debt Summary

     8   

Portfolio Summary

  

Property Summary

     9   

Top Ten Tenants by Annualized Base Rent

     10   

Leasing Summary

     10   

Definitions

     11   

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 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            2


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      William W. King
Christopher J. Ettel      Carl B. McGowan, Jr.
Warren D. Harris      Ann L. McKinney
David Kelly      Jeffrey M. Zwerdling
Investor Relations Contact      Transfer Agent and Registrar

The Equity Group Inc.

800 Third Avenue, 36th Floor

New York, NY 10022

Adam Prior, Senior Vice President

Phone: (212) 836-9606, aprior@equityny.com

Terry Downs, Associate

Phone: (212) 836-9615, tdowns@equityny.com

    

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

www.computershare.com

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            3


Financial and Portfolio Overview

For the Three Months Ended June 30, 2014

 

Financial Results

  

Net loss attributable to Wheeler REIT common shareholders

   ($ 2,247,545

Net loss per basic and diluted share

   ($ 0.31

Funds from operations (FFO) available to common shareholders and common unitholders

   ($ 593,052

FFO per common share and common unit

   ($ 0.06

Core FFO

   $ 60,265   

Core FFO per common share and common unit

   $ 0.01   

Assets

  

Investment Properties, net

   $ 100,553,283   

Total Assets

   $ 140,152,297   

Debt to Total Assets

     68.0

Market Capitalization

  

Common shares outstanding

     7,421,852   

Common units outstanding

     1,803,742   

Total common shares and common units

     9,225,594   

Range of closing prices for the second quarter 2014

   $ 4.40-$4.89   

Closing price at second quarter end

   $ 4.76   

Total number of preferred shares (Series A and B)

     829,809   

Total debt

   $ 95,236,145   

Market capitalization (as of June 30, 2014 closing stock price)

   $ 35,328,016   

Portfolio Summary

  

Total Gross Leasable Area (GLA)

     1,294,572 sq. ft.   

Occupancy Rate

     94.7

Annualized Base Rent

   $ 11,752,141   

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

     9   

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

     51,590 sq. ft.   

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            4


Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

     June 30,
2014
    December 31,
2013
 
     (unaudited)        

ASSETS:

    

Investment properties, net

   $ 100,553,283     $ 101,772,335  

Cash and cash equivalents

     16,243,867       1,155,083  

Rents and other tenant receivables, net

     1,663,027       1,594,864  

Deferred costs and other assets, net

     21,692,120       20,847,984  
  

 

 

   

 

 

 

Total Assets

   $ 140,152,297     $ 125,370,266  
  

 

 

   

 

 

 

LIABILITIES:

    

Loans payable

   $ 95,236,145     $ 94,562,503  

Below market lease intangible, net

     2,610,379       2,674,566  

Accounts payable, accrued expenses and other liabilities

     3,361,048       2,526,388  
  

 

 

   

 

 

 

Total Liabilities

     101,207,572       99,763,457  
  

 

 

   

 

 

 

Commitments and contingencies

     —         —    

EQUITY:

    

Series A preferred stock (no par value, 4,500 shares authorized, 1,809 and no shares issued and outstanding, respectively)

     1,458,050       1,458,050  

Series B preferred stock (no par value, 1,000,000 shares authorized, 828,000 and no shares issued and outstanding, respectively)

     18,738,515        —    

Common stock ($0.01 par value, 75,000,000 shares authorized, 7,421,852 and 7,121,000 shares issued and outstanding, respectively)

     74,218       71,210  

Additional paid-in capital

     28,092,906       28,169,693  

Accumulated deficit

     (16,274,152 )     (11,298,253 )
  

 

 

   

 

 

 

Total Shareholders’ Equity

     32,089,537       18,400,700  

Noncontrolling interests

     6,855,188       7,206,109  
  

 

 

   

 

 

 

Total Equity

     38,944,725       25,606,809  
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 140,152,297     $ 125,370,266  
  

 

 

   

 

 

 

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            5


Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (unaudited)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2013     2014     2013  

REVENUE:

        

Rental revenues

   $ 2,999,290      $ 1,425,462      $ 5,948,100      $ 2,818,494   

Other revenues

     634,404        203,518        1,349,746        428,402   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

     3,633,694        1,628,980        7,297,846        3,246,896   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES:

        

Property operations

     909,037        284,868        1,832,219        585,570   

Depreciation and amortization

     1,735,944        684,554        3,521,546        1,332,686   

Provision for credit losses

     (28,032     22,903        (28,032     37,903   

Corporate general & administrative

     1,385,549        1,572,775        2,217,867        2,156,567   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     4,002,498        2,565,100        7,543,600        4,112,726   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Loss

     (368,804     (936,120     (245,754     (865,830

Interest expense

     (1,536,637     (446,087     (2,905,575     (995,715
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss

     (1,905,441     (1,382,207     (3,151,329     (1,861,545

Less: Net loss attributable to noncontrolling interests

     (81,451     (111,248     (168,703     (156,904
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss Attributable to Wheeler REIT

     (1,823,990     (1,270,959     (2,982,626     (1,704,641

Preferred stock dividends

     (423,555     (22,500     (464,258     (22,500
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss Attributable to Wheeler REIT Common Shareholders

   $ (2,247,545   $ (1,293,459   $ (3,446,884   $ (1,727,141
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share:

        

Basic and Diluted

   $ (0.31   $ (0.39   $ (0.47   $ (0.52
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average number of shares:

        

Basic and Diluted

     7,329,788        3,301,502        7,258,068        3,301,502   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            6


Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Reconciliation of Non-GAAP Measures

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2013     2014     2013  

Total FFO

   $ (169,497   $ (697,653   $ 370,217      $ (528,859

Preferred stock dividends

     (423,555     (22,500     (464,258     (22,500
  

 

 

   

 

 

   

 

 

   

 

 

 

Total FFO available to common shareholders and common unitholders

     (593,052     (720,153     (94,041     (551,359
  

 

 

   

 

 

   

 

 

   

 

 

 

Legal and accounting costs for acquisitions

     343,000        985,000        400,000        985,000   

Share-based compensation

     145,000        —          145,000        —     

Other noncash adjustments

     165,317        198,437        228,844        27,902   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Core FFO

   $ 60,265      $ 463,284      $ 679,803      $ 461,543   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Common Shares

     7,329,788        3,301,502        7,258,068        3,301,502   

Weighted Average Common Units

     1,863,942        1,858,068        1,935,741        1,858,068   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Common Shares and Units

     9,193,730        5,159,570        9,193,809        5,159,570   
  

 

 

   

 

 

   

 

 

   

 

 

 

FFO per Common Share and Common Unit

   $ (0.06   $ (0.14   $ (0.01   $ (0.11
  

 

 

   

 

 

   

 

 

   

 

 

 

Core FFO per Common Share and Common Unit

   $ 0.01      $ 0.09      $ 0.07      $ 0.09   
  

 

 

   

 

 

   

 

 

   

 

 

 
Property Net Operating Income    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2013     2014     2013  

Property Revenues

   $ 3,633,694      $ 1,628,980      $ 7,297,846      $ 3,246,896   

Property Expenses

     909,037        284,868        1,832,219        585,570   
  

 

 

   

 

 

   

 

 

   

 

 

 

Property Net Operating Income

     2,724,657        1,344,112        5,465,627        2,661,326   
  

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and amortization

     1,735,944        684,554        3,521,546        1,332,686   

Provision for credit losses

     (28,032     22,903        (28,032     37,903   

Corporate general & administrative

     1,385,549        1,572,775        2,217,867        2,156,567   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Operating Expenses

     3,093,461        2,280,232        5,711,381        3,527,156   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest Expense

     1,536,637        446,087        2,905,575        995,715   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss

   $ (1,905,441   $ (1,382,207   $ (3,151,329   $ (1,861,545
  

 

 

   

 

 

   

 

 

   

 

 

 
EBITDA    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2013     2014     2013  

Net Loss

   $ (1,905,441   $ (1,382,207   $ (3,151,329   $ (1,861,545

Add back:        Depreciation and amortization

     1,735,944        684,554        3,521,546        1,332,686   

                          Interest Expense

     1,536,637        446,087        2,905,575        995,715   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 1,367,140      $ (251,566   $ 3,275,792      $ 466,856   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            7


Debt Summary

(as of June 30, 2014)

Loans Payable: $95.2 million

Weighted Average Interest Rate: 5.39%

Total Debt to Total Assets: 68.0%

 

Maturities by Year

   Amount      % Total Maturities  

2015

   $ 9,281,296         9.75

2016

     19,912,015         20.91

2017

     9,732,404         10.22

2018

     11,910,283         12.51

2019

     7,577,403         7.96

Thereafter

     36,822,744         38.65
  

 

 

    

 

 

 

Total principal maturities

   $ 95,236,145         100.00
  

 

 

    

 

 

 

 

Property/Description

   Monthly
Payment
     Interest
Rate
   

Maturity

   June 30,
2014
     December 31,
2013
 
                       (unaudited)         

Shoppes at Eagle Harbor

   $ 24,692         4.34   March 2018    $ 3,839,802       $ 3,905,321   

Lumber River Plaza

   $ 18,414         5.65   May 2015      2,934,581         2,973,987   

Monarch Bank Building

   $ 9,473         4.15   December 2017      1,457,284         1,483,230   

Perimeter Square

   $ 28,089         6.38   June 2016      4,356,149         4,417,812   

Riversedge North

   $ 13,556         6.00   January 2019      1,029,539         2,061,790   

Walnut Hill Plaza

   $ 25,269         6.75   April 2014      3,430,592         3,464,465   

Harps at Harbor Point

   $ 18,122         3.99   December 2015      3,293,831         3,335,628   

Twin City Commons

   $ 17,827         4.86   January 2023      3,304,682         3,330,108   

Shoppes at TJ Maxx

   $ 33,880         3.88   May 2020      6,329,491         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      8,803,488         8,859,888   

Starbucks/Verizon

   $ 7,405         6.50   July 2015      596,706         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

           $ 95,236,145       $ 94,562,503   
          

 

 

    

 

 

 

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            8


Portfolio Summary

(as of June 30, 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    26      91.2     1,170,467         5.94   

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     497,466         7.45   

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    12      87.5     631,969         8.03   

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    16      94.1     581,003         14.70   
        

 

  

 

  

 

 

   

 

 

    

 

 

 

Total

         1,294,572    177      94.7   $ 11,752,141       $ 9.59   
        

 

  

 

  

 

 

   

 

 

    

 

 

 

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            9


Top Ten Tenants by Annualized Base Rent

(as of June 30, 2014)

Total Tenants : 177

 

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         8.01   $ 6.43   

2.   Reasor’s Foods

     81,000         6.26     912         7.76     11.26   

3.   Bi-Lo

     75,498         5.83     576         4.90     7.63   

4.   Associated Wholesale Grocers

     75,000         5.79     769         6.54     10.25   

5.   Family Dollar

     57,427         4.44     359         3.05     6.25   

6.   Kroger

     48,780         3.77     279         2.37     5.72   

7.   Winn Dixie

     45,600         3.52     239         2.03     5.24   

8.   Peebles

     32,680         2.52     173         1.47     5.29   

9.   TJ Maxx

     32,400         2.50     294         2.50     9.07   

10. Harvey’s Supermarket

     29,000         2.24     187         1.59     6.45   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
     623,665         48.17   $ 4,729         40.22   $ 7.58   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Leasing Summary

(as of June 30, 2014)

Gross Leasable Area: 1,294,572 square feet

Total Square Footage Leased: 1,225,938 square feet

Occupancy Rate: 94.7%

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

     —           68,634         5.30   $ —           —        $ —     

2015

     31         72,246         5.58     881         7.50     12.19   

2016

     30         191,003         14.75     1,635         13.91     8.56   

2017

     36         181,534         14.02     1,479         12.58     8.15   

2018

     33         365,590         28.24     3,204         27.26     8.76   

2019

     18         95,009         7.34     952         8.10     10.02   

2020

     12         51,094         3.95     577         4.91     11.29   

2021

     2         5,496         0.42     94         0.80     17.10   

2022

     3         51,530         3.98     493         4.19     9.57   

2023

     3         80,600         6.23     955         8.13     11.85   

2024 and thereafter

     9         131,836         10.19     1,482         12.62     11.24   
     

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
        1,294,572         100.00   $ 11,752         100.00   $ 9.59   
     

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            10


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.

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

 

 

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data            11


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            12