• | Fourth Quarter and Full Year 2015 Year-over Year Same Store Retail NOI Growth of 14.4% and 6.9%, respectively |
• | Fourth Quarter 2015 AFFO Per Share of $0.11 on Annualized Basis |
• | Total revenue from continuing operations increased 80.4% or $4.1 million. |
• | Property Net Operating Income (“NOI”) from continuing operations increased by 83.4%, or $2.8 million. |
• | Adjusted Funds from Operations ("AFFO") of $0.03 per common share and common unit ("Operating Partnership Unit" or "OP Unit") |
• | Occupancy rate of 94.2% at December 31, 2015, compared to 95.6% at December 31, 2014. |
• | For the three month period, the Company declared monthly cash dividends of approximately $0.0175 per share. On an annualized basis, this amounted to a dividend of $0.21 per common share and OP Unit, or a 10.9% dividend yield based on the December 31, 2015 closing price of $1.93 per share. |
• | Total revenue from continuing operations increased by 86.5% or $12.9 million for the year ended December 31, 2015. |
• | NOI from continuing operations increased by 79.0% to approximately $18.4 million for the year ended December 31, 2015. |
• | As of December 31, 2015, Wheeler’s property portfolio included 42 operating properties with a gross leasable area of 3,151,358 square feet, 10 undeveloped properties totaling approximately 81 acres of land and its corporate office building. As of December 31, 2014, the Company owned 30 properties with a gross leasable area of 1,904,146 square feet, five undeveloped properties totaling approximately 64 acres of land and its corporate office building. |
• | Average rental rate increase on renewals signed during the year was 6.9%. |
• | Completed a private placement of $93 million Series C Mandatorily Convertible Cumulative Perpetual Preferred Stock, no par value per share ("Series C Preferred Stock"), which subsequently converted into 46.5 million shares of the Company's common stock, $0.01 par value per share (the "Common Stock"). |
• | Secured a $45 million credit facility with KeyBank National Association. The facility includes a provision that under certain conditions allows for expansion of the facility to a maximum of $100 million through syndication with other lenders. |
• | Completed an exchange offer (the “Exchange Offer”) with holders of the Series A Preferred Stock, no par value per share (the “Series A Preferred Stock”) and the Series B Convertible Preferred Stock, no par value per share (the “Series B Preferred Stock”) resulting in the tender of 1,247 shares or 69% of Series A Preferred Stock, and 865,481 shares or 54% of the Series B Preferred Stock in exchange for 11.4 million shares of Common Stock. |
• | For the fourth quarter of 2015, total revenue from continuing operations increased by approximately 80.4% to $9.2 million, compared with total revenue from continuing operations of $5.1 million for the same prior year period. |
• | NOI from continuing operations increased by 83.4% to $6.2 million for the three months ended December 31, 2015, as compared to NOI from continuing operations of $3.4 million for the prior year period. |
• | Net loss attributable to Wheeler common shareholders for the three months ended December 31, 2015 was $2.7 million, or $0.04 per basic and diluted share, compared to a net loss of $5.2 million or $0.70 per basic and diluted share, during the same 2014 period. The decrease in net loss for the fourth quarter 2015 was primarily due to the $2.8 million increase in NOI resulting from the 2015 and 2014 acquisitions, the $2.1 million gain on sale of discontinued operations and the increase in weighted average shares outstanding. Excluding the gain on sale, the net loss attributable to Wheeler REIT common shareholders would have been $4.8 million, or $0.07 per basic and diluted share. Net loss attributable to Wheeler REIT common shareholders for the 2015 fourth quarter was also impacted by a $2.8 million increase in depreciation and amortization due to the 2015 and 2014 acquisitions and a $1.5 million decrease in corporate general and administrative expenses due to a reduction in acquisition activity during the 2015 4th quarter as compared to the prior year. |
• | Wheeler reported Funds From Operations (FFO) available to common shareholders and holders of OP Units for the three months ended December 31, 2015 of $536,849, or $0.01 per share of Common Stock and OP Unit, compared to $(3.1) million, or $(0.29) per share of Common Stock and OP Unit for the prior year period. |
• | AFFO for the three months ended December 31, 2015 was $1.9 million, or $0.03 per share of Common Stock and OP Unit, compared to $(644,085), or $(0.06) per common share and OP Unit for the same period of the prior year. |
• | Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) was $4.7 million for the three months ended December 31, 2015, as compared to $2.1 million of Adjusted EBITDA for the three months ended December 31, 2014. |
• | For the year ended December 31, 2015, total revenue from continuing operations increased by approximately 86.5% to $27.7 million, compared with total revenue from continuing operations of $14.9 million for the same prior year period. |
• | NOI from continuing operations increased by 79.0% to $18.4 million for the year ended December 31, 2015, as compared to NOI from continuing operations of $10.3 million for the year ended December 31, 2014. |
• | Net loss attributable to Wheeler common shareholders for the year ended December 31, 2015 was $103.8 million, or $2.67 per basic and diluted share, compared to a net loss of $13.3 million, or $1.80 per basic and diluted share, for the year ended December 31, 2014. The increase in net loss for the year ended December 31, 2015 was primarily due to the $72.6 million non-cash deemed dividend on the conversion of the Series C Preferred Stock and a $9.5 million increase in depreciation and amortization. Earnings during the year were also impacted by internalizing management and $7.4 million in non-recurring expenses related to acquisitions, capital activities, regulatory compliance and other activities during the year, as well as depreciation and amortization and preferred stock dividend payments. |
• | Wheeler reported FFO available to common shareholders and holders of OP Units for the year ended December 31, 2015 of $(8.1) million, or $(0.19) per share of Common Stock and OP Unit, compared to $(5.9) million, or $(0.61) per share of Common Stock and OP Unit for the year ended December 31, 2014. |
• | AFFO for the year ended December 31, 2015 was $848,269, or $0.02 per share of common stock and OP Unit, compared to $(1.4) million, or $(0.15) per common share and OP Unit for the year ended December 31, 2014. |
• | Adjusted EBITDA was $14.3 million for the year ended December 31, 2015, as compared to $7.2 million of Adjusted EBITDA for the year ended December 31, 2014. |
• | On January 9, 2015, the Company acquired 1.5 acres of undeveloped land in Virginia Beach, Virginia. Wheeler expects to use the land for future development and acquired it for approximately $1.6 million, of which $150,000 was paid for in cash with the remaining balance being paid in OP Units during January 2016. |
• | On January 14, 2015, the Company closed on the acquisition of Pierpont Centre, a 122,259 square foot shopping center located in Morgantown, West Virginia ("Pierpont") for a contract price of $13.9 million. Pierpont was 100% leased as of the acquisition date and was acquired using a combination of cash and bank debt. Major tenants include GNC, Hallmark, Michael’s, Ruby Tuesday and Outback Steakhouse. |
• | On March 27, 2015, the Company acquired Brook Run Properties from a related party, a 2.0 acre parcel of undeveloped land located adjacent to Brook Run Shopping Center in Richmond, Virginia. The Company purchased the property for $300,000 for potential development activities and to compliment the adjacent shopping center owned by the Company. |
• | On April 1, 2015, the Company completed its acquisition of Alex City Marketplace, a 147,791 square foot shopping center located in Alexander City, Alabama ("Alex City") for a contract price of $10.3 million, paid through a combination of cash and debt. Alex City was 86% leased as of the acquisition date and its major tenants include Winn Dixie and Goody's. |
• | On April 15, 2015, the Company completed its acquisition of Butler Square, a 82,400 square foot shopping center located in Mauldin, South Carolina ("Butler Square") for a contract price of $9.4 million, paid through a combination of cash and debt. Butler Square was 100% leased as of the acquisition date and its major tenants include Bi-Lo and Dollar Tree. |
• | On June 2, 2015, the Company completed its acquisition of Brook Run Shopping Center, a 147,738 square foot shopping center located in Richmond, Virginia ("Brook Run") for a contract price of $18.5 million. Brook Run was 92% leased as of the acquisition date, and its major tenants include Martin's Food Store and CVS. The Company acquired Brook Run from a related party through a combination of cash, the issuance of 574,743 OP Units and debt. |
• | On July 1, 2015, the Company completed its acquisition of Beaver Ruin Village, a 74,048 square foot shopping center located in Lilburn, Georgia ("Beaver Ruin Village") for a contract price of $12.4 million, paid through a combination of cash and debt. Beaver Ruin Village was 91% leased as of the acquisition date and its major tenants include Chase Bank, Firehouse Subs and State Farm Insurance. |
• | On July 1, 2015, the Company completed its acquisition of Beaver Ruin Village II, a 34,925 square foot shopping center located in Lilburn, Georgia ("Beaver Ruin Village II") for a contract price of $4.4 million, paid through a combination of cash and debt. Beaver Ruin Village II was 100% leased as of the acquisition date and its major tenants include AutoZone and Metro PCS. |
• | On July 1, 2015, the Company completed its acquisition of Columbia Fire Station, consisting of two vacant buildings on a 1.0 acre land parcel located in Columbia, South Carolina ("Columbia Fire Station") for a contract price of $2.4 million, paid through a combination of cash and debt. The Company plans to redevelop this property for retail use. |
• | On July 10, 2015, the Company completed its acquisition of Chesapeake Square, a 99,848 square foot shopping center located in Onley, Virginia ("Chesapeake Square") for a contract price of $6.3 million. Chesapeake Square was 76% leased as of the acquisition date and is anchored by a Food Lion grocery store. The Company acquired Chesapeake Square from a related party through a combination of cash and the issuance of 125,966 common units in the Operating Partnership. |
• | On July 21, 2015, the Company completed its acquisition of Sunshine Plaza, a 111,189 square foot shopping center located in Lehigh Acres, Florida ("Sunshine Plaza") for a contract price of $10.4 million. Sunshine Plaza was 96% leased as of the acquisition date and is anchored by a Winn-Dixie grocery store. The Company acquired Sunshine Plaza through a combination of cash and debt. |
• | On July 24, 2015, the Company completed its acquisition of Carolina Place from a related party, consisting of a 2.14 acre parcel of land adjacent to Chesapeake Square for a contract price of $250,000 in cash. The Company acquired the property for potential development and to compliment the adjacent shopping center. |
• | On August 14, 2015, the Company completed its acquisition of 10.39 acres located in Hilton Head, South Carolina ("Hilton Head Land") for a contract price of $1.0 million paid in cash. The Company acquired the property for potential development and to compliment an adjacent redevelopment project. |
• | On August 21, 2015, the Company completed its acquisition of Cardinal Plaza, located in Henderson, North Carolina, Franklinton Square, located in Franklinton, North Carolina and Nashville Commons, located in Nashville, North Carolina (collectively known as the "Barnett Portfolio") for a contract price of $15.3 million. The Barnett Porfolio properties total 171,466 square feet, were 91% leased as of the acquisition date and all are anchored by Food Lion grocery stores. The Company acquired the Barnett Portfolio through a combination of cash and debt. |
• | On September 9, 2015, the Company completed its acquisition of Grove Park Shopping Center, a 106,557 square foot shopping center located in Orangeburg, South Carolina ("Grove Park") for a contract price of $6.6 million. Grove Park was 90% leased as of the acquisition date and is anchored by a Bi-Lo grocery store. The Company acquired Grove Park through a combination of cash and debt. |
• | On September 15, 2015, the Company completed its acquisition of Parkway Plaza Shopping Center, a 52,365 square foot shopping center and 2.1 acres of adjacent undeveloped land located in Brunswick, Georgia ("Parkway Plaza") for a contract price of $6.1 |
• | On September 30, 2015, the Company completed its acquisition of Fort Howard Square Shopping Center, a 113,652 square foot shopping center located in Rincon, Georgia ("Fort Howard Square") for a contract price of $11.5 million. Fort Howard Square was 95% leased as of the acquisition date and is anchored by nationally recognized tenants Goodwill and Dollar Tree. The Company acquired Fort Howard Square through a combination of cash and debt. |
• | On September 30, 2015, the Company completed its acquisition of Conyers Crossing Shopping Center, a 170,475 square foot shopping center located in Conyers, Georgia ("Conyers Crossing") for a contract price of $10.8 million. Conyers Crossing was 99% leased as of the acquisition date and is anchored by nationally recognized tenants Hobby Lobby and Burlington Coat Factory. The Company acquired Conyers Crossing through a combination of cash and debt. |
• | For the three months ended December 31, 2015, the Company executed twenty renewals totaling 101,985 square feet at a weighted-average increase of $0.21 per square foot, representing an increase of 2.04% over prior rates. |
• | For the year ended December 31, 2015, the Company executed sixty-two renewals totaling 334,928 square feet at a weighted-average increase of $0.64 per square foot, representing an increase of 6.89% over prior rates. |
• | For the three months ended December 31, 2015, Wheeler signed seven new leases totaling approximately 16,441 square feet with a weighted-average rate of $12.30 per square foot. |
• | For the year ended December 31, 2015, Wheeler signed twenty-three new leases totaling approximately 45,161 square feet with a weighted-average rate of $13.35 per square foot. |
• | Approximately 5.97% of Wheeler’s gross leasable area is subject to leases that expire during the year ending December 31, 2016. Based on recent market trends, the Company believes that tenants will renew these leases at amounts and terms comparable to existing lease agreements. |
• | The Company’s cash and cash equivalents increased to $11.3 million at December 31, 2015, compared to $10.0 million at December 31, 2014. |
• | Wheeler’s net investment properties as of December 31, 2015 (including assets held for sale) were valued at $240.0 million, as compared to $152.3 million as of December 31, 2014. |
• | The Company’s total debt was $191.3 million (including debt associated with assets held for sale) at December 31, 2015, compared to $141.5 million at December 31, 2014. Wheeler’s weighted-average interest rate and term of its debt (including debt associated with assets held for sale) was 4.71% and 7.60 years, respectively, at December 31, 2015, compared to 5.14% and 6.04 years, respectively, at December 31, 2014. |
• | For the three months ended December 31, 2015, the Company declared approximately $3.7 million in dividend payments for common shareholders and OP unitholders. |
• | For the three months ended December 31, 2015, the Company declared approximately $511,299 in dividends to the Series A and Series B preferred shareholders. |
• | For the year ended December 31, 2015, the Company declared approximately $9.8 million in dividend payments for common shareholders and OP unitholders. |
• | For the year ended December 31, 2015, the Company declared approximately $13.6 million in dividends to the Series A, Series B and Series C preferred shareholders. |
• | 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, Alabama, Georgia, South Carolina, North Carolina, New Jersey, Tennessee, Kentucky, West Virginia 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. |
Wheeler Real Estate Investment Trust, Inc. | The Equity Group Inc. |
Robin Hanisch | Terry Downs |
Corporate Secretary | Associate |
(757) 627-9088 / robin@whlr.us | (212) 836-9615 / tdowns@equityny.com |
Laura Nguyen | Adam Prior |
Director of Marketing | Senior Vice-President |
(757) 627-9088 | (212)836-9606 |
lnguyen@whlr.us | aprior@equityny.com |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUE: | |||||||||||||||
Rental revenues | $ | 6,810,000 | $ | 3,622,188 | $ | 20,553,870 | $ | 11,348,955 | |||||||
Asset management fees | 123,173 | 296,290 | 588,990 | 296,290 | |||||||||||
Commissions | 54,692 | 158,876 | 361,984 | 158,876 | |||||||||||
Tenant reimbursement and other income | 2,250,744 | 1,043,430 | 6,229,361 | 3,069,972 | |||||||||||
Total Revenue | 9,238,609 | 5,120,784 | 27,734,205 | 14,874,093 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operations | 2,832,261 | 1,270,395 | 8,351,456 | 4,123,439 | |||||||||||
Non-REIT management and leasing services | 209,587 | — | 1,110,705 | — | |||||||||||
Depreciation and amortization | 5,160,298 | 2,331,420 | 16,882,462 | 7,387,729 | |||||||||||
Provision for credit losses | 28,713 | 42,099 | 243,029 | 60,841 | |||||||||||
Corporate general & administrative | 2,766,821 | 4,239,773 | 13,480,089 | 9,447,010 | |||||||||||
Total Operating Expenses | 10,997,680 | 7,883,687 | 40,067,741 | 21,019,019 | |||||||||||
Operating Loss | (1,759,071 | ) | (2,762,903 | ) | (12,333,536 | ) | (6,144,926 | ) | |||||||
Interest expense | (2,593,300 | ) | (1,914,795 | ) | (9,043,761 | ) | (5,908,548 | ) | |||||||
Net Loss from Continuing Operations | (4,352,371 | ) | (4,677,698 | ) | (21,377,297 | ) | (12,053,474 | ) | |||||||
Discontinued Operations | |||||||||||||||
Income from discontinued operations | 151,698 | 84,965 | 499,781 | 307,659 | |||||||||||
Gain on sales | 2,104,114 | — | 2,104,114 | — | |||||||||||
Net Income from Discontinued Operations | 2,255,812 | 84,965 | 2,603,895 | 307,659 | |||||||||||
Net Loss | (2,096,559 | ) | (4,592,733 | ) | (18,773,402 | ) | (11,745,815 | ) | |||||||
Less: Net income (loss) attributable to noncontrolling interests | 78,571 | (539,573 | ) | (1,252,723 | ) | (1,195,560 | ) | ||||||||
Net Loss Attributable to Wheeler REIT | (2,175,130 | ) | (4,053,160 | ) | (17,520,679 | ) | (10,550,255 | ) | |||||||
Preferred stock dividends | (511,300 | ) | (1,165,937 | ) | (13,627,532 | ) | (2,718,257 | ) | |||||||
Deemed dividend related to beneficial conversion feature of preferred stock | — | — | (72,644,506 | ) | — | ||||||||||
Net Loss Attributable to Wheeler REIT Common Shareholders | $ | (2,686,430 | ) | $ | (5,219,097 | ) | $ | (103,792,717 | ) | $ | (13,268,512 | ) | |||
Loss per share from continuing operations: | |||||||||||||||
Basic and Diluted | $ | (0.07 | ) | $ | (0.71 | ) | $ | (2.73 | ) | $ | (1.83 | ) | |||
Earnings per share from discontinued operations | $ | 0.03 | $ | 0.01 | $ | 0.06 | $ | 0.03 | |||||||
$ | (0.04 | ) | $ | (0.70 | ) | $ | (2.67 | ) | $ | (1.80 | ) | ||||
Weighted-average number of shares: | |||||||||||||||
Basic and Diluted | 66,189,261 | 7,460,109 | 38,940,463 | 7,352,433 |
December 31, | ||||||||
2015 | 2014 | |||||||
ASSETS: | ||||||||
Investment properties, net | $ | 238,764,631 | $ | 128,994,061 | ||||
Cash and cash equivalents | 11,306,185 | 9,969,748 | ||||||
Rents and other tenant receivables, net | 3,452,700 | 1,978,149 | ||||||
Goodwill | 5,485,823 | 7,004,072 | ||||||
Assets held for sale | 1,707,709 | 27,095,415 | ||||||
Above market lease intangibles, net | 6,517,529 | 4,488,900 | ||||||
Deferred costs and other assets, net | 46,735,275 | 25,440,923 | ||||||
Total Assets | $ | 313,969,852 | $ | 204,971,268 | ||||
LIABILITIES: | ||||||||
Loans payable | $ | 189,340,456 | $ | 122,296,547 | ||||
Liabilities associated with assets held for sale | 2,007,554 | 19,283,423 | ||||||
Below market lease intangible, net | 7,721,335 | 5,182,437 | ||||||
Accounts payable, accrued expenses and other liabilities | 7,533,769 | 5,085,434 | ||||||
Total Liabilities | 206,603,114 | 151,847,841 | ||||||
Commitments and contingencies | — | — | ||||||
EQUITY: | ||||||||
Series A preferred stock (no par value, 4,500 shares authorized, 562 and 1,809 shares issued and outstanding, respectively) | 452,971 | 1,458,050 | ||||||
Series B preferred stock (no par value, 3,000,000 shares authorized, 729,119 and 1,648,900 shares issued and outstanding, respectively) | 17,085,147 | 37,620,254 | ||||||
Common stock ($0.01 par value, 150,000,000 and 75,000,000 shares authorized, 66,259,673 and 7,512,979 shares issued and outstanding, respectively | 662,596 | 75,129 | ||||||
Additional paid-in capital | 220,370,984 | 31,077,060 | ||||||
Accumulated deficit | (140,306,846 | ) | (27,660,234 | ) | ||||
Total Shareholders' Equity | 98,264,852 | 42,570,259 | ||||||
Noncontrolling interests | 9,101,886 | 10,553,168 | ||||||
Total Equity | 107,366,738 | 53,123,427 | ||||||
Total Liabilities and Equity | $ | 313,969,852 | $ | 204,971,268 | ||||
Years Ended December 31, | |||||||||||||||||||||||||||||||
Same Stores | New Stores | Total | Period Over Period Changes | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | $ | % | ||||||||||||||||||||||||
Net income (loss) | $ | (10,424,793 | ) | $ | (7,354,027 | ) | $ | (8,348,609 | ) | $ | (4,391,788 | ) | $ | (18,773,402 | ) | $ | (11,745,815 | ) | $ | (7,027,587 | ) | (59.83 | )% | ||||||||
Depreciation of real estate assets from continuing operations | 5,428,204 | 5,903,392 | 11,454,258 | 1,484,337 | 16,882,462 | 7,387,729 | 9,494,733 | 128.52 | % | ||||||||||||||||||||||
Depreciation of real estate assets from discontinued operations | 510,818 | 832,761 | 69,073 | — | 579,891 | 832,761 | (252,870 | ) | (30.37 | )% | |||||||||||||||||||||
Depreciation of real estate assets | 5,939,022 | 6,736,153 | 11,523,331 | 1,484,337 | 17,462,353 | 8,220,490 | 9,241,863 | 112.42 | % | ||||||||||||||||||||||
Gain on sale of discontinued operations | (2,104,114 | ) | — | — | — | (2,104,114 | ) | — | (2,104,114 | ) | — | % | |||||||||||||||||||
FFO | $ | (6,589,885 | ) | $ | (617,874 | ) | $ | 3,174,722 | $ | (2,907,451 | ) | $ | (3,415,163 | ) | $ | (3,525,325 | ) | $ | 110,162 | 3.12 | % | ||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||||||||
Same Stores | New Stores | Total | Period Over Period Changes | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | $ | % | ||||||||||||||||||||||||
Net income (loss) | $ | (6,260 | ) | $ | (2,427,073 | ) | $ | (2,090,299 | ) | $ | (2,165,660 | ) | $ | (2,096,559 | ) | $ | (4,592,733 | ) | $ | 2,496,174 | 54.35 | % | |||||||||
Depreciation of real estate assets from continuing operations | 1,146,506 | 1,339,743 | 4,013,791 | 991,677 | 5,160,297 | 2,331,420 | 2,828,877 | 121.34 | % | ||||||||||||||||||||||
Depreciation of real estate assets from discontinued operations | — | 162,279 | — | — | — | 162,279 | (162,279 | ) | (100.00 | )% | |||||||||||||||||||||
Depreciation of real estate assets | 1,146,506 | 1,502,022 | 4,013,791 | 991,677 | 5,160,297 | 2,493,699 | 2,666,598 | 106.93 | % | ||||||||||||||||||||||
Gain on sale of discontinued operations | (2,104,114 | ) | — | — | — | (2,104,114 | ) | — | (2,104,114 | ) | — | % | |||||||||||||||||||
FFO | $ | (963,868 | ) | $ | (925,051 | ) | $ | 1,923,492 | $ | (1,173,983 | ) | $ | 959,624 | $ | (2,099,034 | ) | $ | 3,058,658 | 145.72 | % | |||||||||||
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Reconciliation of Adjusted Funds From Operations (AFFO) | |||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2015 | 2014 (3) | 2015 | 2014 (3) | ||||||||||||
Net (loss) | $ | (2,096,559 | ) | $ | (4,592,733 | ) | $ | (18,773,402 | ) | $ | (11,745,815 | ) | |||
Depreciation of real estate assets from continuing operations | 5,160,297 | 2,331,421 | 16,882,462 | 7,387,729 | |||||||||||
Depreciation of real estate assets from discontinued operations | — | 162,279 | 579,891 | 832,761 | |||||||||||
Depreciation of real estate assets | 5,160,297 | 2,493,700 | 17,462,353 | 8,220,490 | |||||||||||
Gain on sale of discontinued operations | (2,104,114 | ) | — | (2,104,114 | ) | — | |||||||||
FFO | 959,624 | (2,099,033 | ) | (3,415,163 | ) | (3,525,325 | ) | ||||||||
Preferred stock dividends | (511,300 | ) | (1,165,937 | ) | (13,627,532 | ) | (2,718,257 | ) | |||||||
Preferred stock accretion adjustments | 88,525 | 197,728 | 8,925,221 | 379,584 | |||||||||||
FFO available to common shareholders and common unitholders | 536,849 | (3,067,242 | ) | (8,117,474 | ) | (5,863,998 | ) | ||||||||
Acquisition costs | 703,659 | 1,882,900 | 3,871,037 | 3,787,900 | |||||||||||
Capital related costs | 207,584 | — | 2,655,474 | — | |||||||||||
Other non-recurring expenses (1) | 203,944 | — | 770,757 | — | |||||||||||
Share-based compensation | 191,000 | 266,988 | 547,000 | 456,988 | |||||||||||
Straight-line rent | (68,843 | ) | (67,267 | ) | (270,873 | ) | (247,220 | ) | |||||||
Loan cost amortization | 252,190 | 372,560 | 1,300,901 | 787,228 | |||||||||||
Above (below) market lease amortization | 53,678 | 87,276 | 616,665 | 85,808 | |||||||||||
Perimeter legal accrual | 5,478 | — | 133,282 | — | |||||||||||
Tenant improvement reserves | (103,200 | ) | (53,500 | ) | (302,600 | ) | (194,400 | ) | |||||||
Recurring capital expenditures | (118,200 | ) | (65,800 | ) | (355,900 | ) | (239,200 | ) | |||||||
AFFO | $ | 1,864,139 | $ | (644,085 | ) | $ | 848,269 | $ | (1,426,894 | ) | |||||
Weighted Average Common Shares | 66,189,261 | 7,460,109 | 38,940,463 | 7,352,433 | |||||||||||
Weighted Average Common Units | 4,058,398 | 3,191,209 | 3,863,339 | 2,275,888 | |||||||||||
Total Common Shares and Units | 70,247,659 | 10,651,318 | 42,803,802 | 9,628,321 | |||||||||||
FFO per Common Share and Common Units | $ | 0.01 | $ | (0.29 | ) | $ | (0.19 | ) | $ | (0.61 | ) | ||||
AFFO per Common Share and Common Units | $ | 0.03 | $ | (0.06 | ) | $ | 0.02 | $ | (0.15 | ) | |||||
Pro Forma AFFO per Common Share and Common Units (2) | $ | 0.03 | $ | — | $ | 0.11 | $ | — |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Property revenues | $ | 9,060,744 | $ | 4,665,618 | $ | 26,783,231 | $ | 14,418,927 | |||||||
Property expenses | 2,832,261 | 1,270,395 | 8,351,456 | 4,123,439 | |||||||||||
Property Net Operating Income | 6,228,483 | 3,395,223 | 18,431,775 | 10,295,488 | |||||||||||
Asset Management and Commission Revenues | 177,865 | 455,166 | 950,974 | 455,166 | |||||||||||
Non-REIT management and leasing services | 209,587 | — | 1,110,705 | — | |||||||||||
Depreciation and amortization | 5,160,298 | 2,331,420 | 16,882,462 | 7,387,729 | |||||||||||
Provision for credit losses | 28,713 | 42,099 | 243,029 | 60,841 | |||||||||||
Corporate general & administrative | 2,766,821 | 4,239,773 | 13,480,089 | 9,447,010 | |||||||||||
Total Other Operating Expenses | 8,165,419 | 6,613,292 | 31,716,285 | 16,895,580 | |||||||||||
Interest expense | 2,593,300 | 1,914,795 | 9,043,761 | 5,908,548 | |||||||||||
Net Loss from Continuing Operations | (4,352,371 | ) | (4,677,698 | ) | (21,377,297 | ) | (12,053,474 | ) | |||||||
Discontinued Operations | |||||||||||||||
Income from operations | 151,698 | 84,965 | 499,781 | 307,659 | |||||||||||
Gain on sales | 2,104,114 | — | 2,104,114 | — | |||||||||||
Net Income from Discontinued Operations | 2,255,812 | 84,965 | 2,603,895 | 307,659 | |||||||||||
Net Loss | $ | (2,096,559 | ) | $ | (4,592,733 | ) | $ | (18,773,402 | ) | $ | (11,745,815 | ) |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Loss | $ | (2,096,559 | ) | $ | (4,592,733 | ) | $ | (18,773,402 | ) | $ | (11,745,815 | ) | |||
Add back: Depreciation and amortization (1) | 5,213,976 | 2,580,976 | 18,079,019 | 8,306,298 | |||||||||||
Interest Expense (2) | 2,618,384 | 2,187,016 | 9,758,842 | 6,813,426 | |||||||||||
EBITDA | 5,735,801 | 175,259 | 9,064,459 | 3,373,909 | |||||||||||
Adjustments for items affecting comparability: | |||||||||||||||
Acquisition costs | 703,659 | 1,882,900 | 3,871,037 | 3,787,900 | |||||||||||
Capital related costs | 207,584 | — | 2,655,474 | — | |||||||||||
Other non-recurring expenses (3) | 203,944 | — | 770,757 | — | |||||||||||
Gain on sales | (2,104,114 | ) | — | (2,104,114 | ) | — | |||||||||
$ | 4,746,874 | $ | 2,058,159 | $ | 14,257,613 | $ | 7,161,809 |