Exhibit 99.1

image1a87.jpg

FOR IMMEDIATE RELEASE

WHEELER REAL ESTATE INVESTMENT TRUST, INC. ANNOUNCES 2018 SECOND QUARTER FINANCIAL RESULTS


Virginia Beach, VA – August 7, 2018 – Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) (“Wheeler” or the “Company”) today reported operating and financial results for the three and six months ending June 30, 2018.

 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Net loss per common share
 
$
(0.51
)
 
$
(0.37
)
 
$
(1.08
)
 
$
(0.79
)
FFO per common share and common unit
 
0.20

 
0.24

 
0.36

 
0.40

AFFO per common share and common unit
 
0.25

 
0.40

 
0.46

 
0.70



2018 SECOND QUARTER HIGHLIGHTS
(all comparisons to the same prior year period unless otherwise noted)    
•
Sold an undeveloped land parcel at Laskin Road for a contract price of $2.9 million, resulting in a $903 thousand gain.
•
Received approval on all Southeastern Grocers lease modifications by the bankruptcy court.
•
Executed termination fee with Farm Fresh at Berkley Shopping Center resulting in $980 thousand in lease termination fees.
•
Paid down $9.13 million on the KeyBank Credit Agreement through refinancings of New Market, Ridgeland and Georgetown bringing the balance on the KeyBank Credit Agreement to $58.90 million.
•
Reduced the Revere Loan to $3.4 million from $6.8 million at December 31, 2017.
•
Net loss attributable to Wheeler's common stock, $0.01 par value per share ("Common Stock") shareholders of $4.7 million, or $0.51 per share.
•
Total revenue from continuing operations increased by 16.22% or $2.4 million.
•
Net Operating Income ("NOI") from continuing operations increased by 24.06% to approximately $12.3 million.
•
Adjusted Funds from Operations ("AFFO") of $0.25 per share of the Company's Common Stock and common unit ("Common Unit") in our operating partnership, Wheeler REIT, L.P.
•
Extended the time in which the Company is to reduce the KeyBank Credit Line by an additional $6.4 million to $52.5 million to August 23, 2018 from July 1, 2018, and reduced the liquidity requirement to $3.5 million from $5.0 million.

2018 YEAR-TO-DATE HIGHLIGHTS                                    
•
Backfilled 2 Southeastern Grocers recaptures, which were recaptured in their bankruptcy proceeding, with Low Country Grocers (Piggly Wiggly's) at Ladson Crossing and South Park with rents commencing in third quarter 2018.
•
Net loss attributable to Wheeler's Common Stock shareholders of $9.8 million, or $(1.08) per share.
•
Total revenue from continuing operations increased by 15.08% or $4.4 million.
•
NOI from continuing operations increased by 21.85% to approximately $23.9 million.
•
AFFO of $0.46 per share of the Company's Common Stock and Common Unit in our operating partnership, Wheeler REIT, L.P.




BALANCE SHEET                                                        
•
Cash and cash equivalents totaled $4.1 million at June 30, 2018, compared to $3.7 million at December 31, 2017.
•
Total debt was $376.6 million at June 30, 2018 (including debt associated with assets held for sale), compared to $379.1 million at March 31, 2018. Our total debt at December 31, 2017 was $313.8 million. The increase in debt is primarily a result of $65.4 million in debt associated with the JANAF acquisition. Wheeler's weighted-average interest rate and term of its debt was 4.8% and 4.66 years, respectively, at June 30, 2018 (including debt associated with assets held for sale), compared to 4.6% and 4.81 years, respectively, at December 31, 2017.
•
Net investment properties as of June 30, 2018 totaled at $453.8 million (including assets held for sale), compared to $384.3 million as of December 31, 2017.
•
Refinanced New Market, Georgetown, Ridgeland and LaGrange for a total of $12.7 million and extended debt maturities out 5 years to 2023.
•
Executed Second Amendment to Revere Loan, which matures in November 2018 with monthly principal payments of $100,000. The loan bears interest at 9.0%. Paid down the loan to $3.4 million, $700 thousand from operating cash, $2.6 million from the sale of the undeveloped land parcel at Laskin Road and $150 thousand with funds from other refinances.
•
In conjunction with the JANAF acquisition, the Company issued and sold 1,363,636 shares of Series D Preferred Stock, in a public offering. Each share of Series D Preferred Stock was sold to investors at an offering price of $16.50 per share. Net proceeds from the public offering totaled $21.2 million, which includes the impact of the underwriters' selling commissions and legal, accounting and other professional fees.

DIVIDENDS                                                        
•
For the three months ended June 30, 2018, the Company declared dividends of approximately $3.0 million to our holders of shares of our Series A Preferred Stock, Series B Preferred Stock, and Series D Preferred Stock.
•
For the six months ended June 30, 2018, the Company declared dividends of approximately $6.1 million to our holders of shares of our Series A Preferred Stock, Series B Preferred Stock, and Series D Preferred Stock.

OPERATIONS AND LEASING                                                
•
The Company's real estate portfolio is 90.1% leased at June 30, 2018, which includes leases executed through July 3, 2018.
•
For the three months ended June 30, 2018, the Company executed 36 lease renewals totaling 168,883 square feet at a weighted-average increase of $0.85 per square foot, representing an increase of 9.17% over prior rates.
•
For the three months ended June 30, 2018, the Company signed 21 new leases totaling approximately 130,840 square feet with a weighted-average rate of $8.46 per square foot.
•
For the six months ended June 30, 2018, the Company executed 62 lease renewals totaling 323,323 square feet at a weighted-average increase of $0.32 per square foot, representing a increase of 3.58% over prior rates.
•
For the six months ended June 30, 2018, the Company signed 36 new leases totaling approximately 202,916 square feet with a weighted-average rate of $8.36 per square foot.
•
Approximately 2.50% of the Company's gross leasable area ("GLA") is subject to leases that expire over the next six months, with 46.13% of this expiring GLA subject to renewal options.
•
The Company modified thirteen leases with Southeastern Grocers anchor tenants and recaptured four locations. These modifications primarily include a combination of increases and decreases to lease term and rental rates, as well as deferred landlord contributions for remodels. The Company recaptured Ladson Crossing, St. Matthews, South Park, and Tampa Festival in the second quarter of 2018. The Cypress Shopping Center lease expired on March 31, 2018. As part of the negotiated recaptures the Company received $246 thousand during the six months ended June 30, 2018. The remaining lease modifications were approved by the Southeastern Grocers' bankruptcy court in the second quarter 2018. The initial annualized base rent impact of these modifications and recaptures is approximately $2.5 million.

SAME STORE RESULTS                                                    
•
Same-store NOI year-over-year growth for the three months ended June 30, 2018 was 3.58% and 1.32% on a cash basis. The same-store pool comprises the 4.9 million square feet that the Company owned as of January 1, 2017. Same-store results were driven, primarily by $980 thousand in lease termination fees on Farm Fresh at Berkley Shopping Center offset by Southeastern Grocers


recaptures and rent modifications accompanied by anchor lease expirations at South Lake and Fort Howard. Property expenses remained relatively flat.
•
Same-store NOI year-over-year growth for the six months ended June 30, 2018 was 3.03% and 1.46% on a cash basis. Same-store results were driven, in part, by $980 thousand in lease termination fees on Farm Fresh at Berkley Shopping Center, as well as a decrease of 51.8% in tenant provision for credit losses primarily resulting from increased collections on accounts receivable, offset by Southeastern Grocers recaptures and rent modifications accompanied by anchor lease expirations at South Lake and Fort Howard. Property expenses remained relatively flat.

ACQUISITIONS                                                        
•
As previously disclosed, the Company acquired JANAF, a retail shopping center located in Norfolk, Virginia, for a purchase price of $85.65 million in January 2018.

DISPOSITIONS                                                        
•
The Company completed the sale of the Chipotle ground lease at Conyers Crossing for a contract price of $1.3 million, resulting in a gain of $1.1 million with net proceeds of $1.2 million.
•
Sold the undeveloped land parcel at Laskin Road for a contract price of $2.9 million, resulting in a $903 thousand gain.

SUPPLEMENTAL INFORMATION                                                
Further details regarding Wheeler Real Estate Investment Trust, Inc.’s operations and financials for the period ended June 30, 2018, including a supplemental presentation, are available at https://ir.whlr.us/.

CONFERENCE CALL DIAL-IN AND WEBCAST INFORMATION:                                    
The Company will host a conference call and webcast on Wednesday, August 8, 2018 at 11:00 am Eastern Time to review its financial performance and operating results for the quarter ended June 30, 2018.

Conference Call and Webcast:
U.S. & Canada Toll Free: (877) 407-3101 / International: (201) 493-6789
Webcast: https://78449.themediaframe.com/dataconf/productusers/whlr/mediaframe/25723/indexl.html

Replay:
U.S. & Canada Toll Free: (877) 660-6853 / International: (201) 612-7415
Conference ID#: 13679474
Available August 8, 2018 (one hour after the end of the conference call) to September 8, 2018 at 11:00 am Eastern Time.

ABOUT WHEELER REAL ESTATE INVESTMENT TRUST, INC.                                    
Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully-integrated, self-managed commercial real estate investment company focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers. Wheeler’s portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk-adjusted returns, with a particular emphasis on grocery-anchored retail centers. For additional information about the Company, please visit: www.whlr.us.

A copy of Wheeler’s Quarterly Report on Form 10-Q, which includes the Company’s consolidated financial statements and management’s discussion & analysis of financial condition and results of operations, 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.









DEFINITIONS                                                        
FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted EBITDA are non-GAAP financial measures within the meaning of the rules of the Securities and Exchange Commission. Wheeler considers FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted EBITDA to be important supplemental measures 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 and gains and losses from property dispositions, the Company believes that 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 the closest GAAP measurement, net income.
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, nonrecurring expenses, legal settlements, legal and professional fees, and acquisition costs. Management uses AFFO, which is a non- GAAP financial measure, to exclude such items. Management believes that reporting AFFO and Pro Forma AFFO 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. Management also believes that Property NOI, EBITDA and Adjusted EBITDA represent important supplemental measures for securities analysts, investors and other interested parties, as they are often used in calculating net asset value, leverage and other financial metrics used by these parties in the evaluation of REITs.

FORWARD LOOKING STATEMENTS                                                
This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. The Company’s expected results may not be achieved, and actual results may differ materially from expectations. Specifically, the Company’s statements regarding the future generation of financial returns from the acquisition of retail focused properties in secondary and tertiary markets are forward-looking statements. 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. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release.

Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Mary Jensen    
Investor Relations    
(757) 627-9088 / investorrelations@whlr.us


Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
 
Three Months Ended June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
REVENUE:
 
 
 
 
 
 
 
Rental revenues
$
12,911

 
$
11,027

 
$
25,608

 
$
22,156

Asset management fees
47

 
500

 
95

 
662

Commissions
36

 
194

 
50

 
309

Tenant reimbursements
2,965

 
2,736

 
6,187

 
5,416

Development and other revenues
1,147

 
262

 
1,480

 
498

Total Revenue
17,106

 
14,719

 
33,420

 
29,041

OPERATING EXPENSES:
 
 
 
 
 
 
 
Property operations
4,518

 
3,747

 
9,117

 
7,741

Non-REIT management and leasing services
—

 
636

 
36

 
907

Depreciation and amortization
7,422

 
6,309

 
14,898

 
12,709

Provision for credit losses
165

 
168

 
186

 
420

Corporate general & administrative
2,268

 
1,317

 
4,776

 
3,549

Total Operating Expenses
14,373

 
12,177

 
29,013

 
25,326

Gain on disposal of properties
—

 
1,022

 
1,055

 
1,022

Operating Income
2,733

 
3,564

 
5,462

 
4,737

Interest income
1

 
360

 
2

 
716

Interest expense
(5,180
)
 
(4,570
)
 
(9,757
)
 
(8,747
)
Net Loss from Continuing Operations Before Income Taxes
(2,446
)
 
(646
)
 
(4,293
)
 
(3,294
)
Income tax expense
(17
)
 
(69
)
 
(42
)
 
(110
)
Net Loss from Continuing Operations
(2,463
)
 
(715
)
 
(4,335
)
 
(3,404
)
Discontinued Operations
 
 
 
 
 
 
 
Income from discontinued operations
—

 
—

 
—

 
16

Gain (loss) on disposal of properties
903

 
(11
)
 
903

 
1,502

Net Income (loss) from Discontinued Operations
903

 
(11
)
 
903

 
1,518

Net Loss
(1,560
)
 
(726
)
 
(3,432
)
 
(1,886
)
Less: Net loss attributable to noncontrolling interests
(35
)
 
(13
)
 
(82
)
 
(54
)
Net Loss Attributable to Wheeler REIT
(1,525
)
 
(713
)
 
(3,350
)
 
(1,832
)
Preferred stock dividends
(3,206
)
 
(2,494
)
 
(6,413
)
 
(4,977
)
Net Loss Attributable to Wheeler REIT Common Shareholders
$
(4,731
)
 
$
(3,207
)
 
$
(9,763
)
 
$
(6,809
)
 
 
 
 
 
 
 
 
Loss per share from continuing operations (basic and diluted)
$
(0.61
)
 
$
(0.37
)
 
$
(1.18
)
 
$
(0.96
)
Income per share from discontinued operations
0.10

 
—

 
0.10

 
0.17

 
$
(0.51
)
 
$
(0.37
)
 
$
(1.08
)
 
$
(0.79
)
Weighted-average number of shares:
 
 
 
 
 
 
 
Basic and Diluted
9,246,683

 
8,628,204

 
9,074,506

 
8,591,458

 
 
 
 
 
 
 
 
Dividends declared per common share
$
—

 
$
0.34

 
$
—

 
$
0.76



Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
 
June 30,
2018
 
December 31, 2017
 
(unaudited)
 
 
ASSETS:
 
 
 
Investment properties, net
$
441,078

 
$
375,199

Cash and cash equivalents
4,052

 
3,677

Restricted cash
14,560

 
8,609

Rents and other tenant receivables, net
5,522

 
5,619

Notes receivable, net
6,739

 
6,739

Goodwill
5,486

 
5,486

Assets held for sale
12,839

 
9,135

Above market lease intangible, net
8,948

 
8,778

Deferred costs and other assets, net
36,564

 
34,432

Total Assets
$
535,788

 
$
457,674

LIABILITIES:
 
 
 
Loans payable, net
$
365,922

 
$
307,375

Liabilities associated with assets held for sale
5,315

 
792

Below market lease intangible, net
12,381

 
9,616

Accounts payable, accrued expenses and other liabilities
11,790

 
10,579

Dividends payable
3,037

 
5,480

Total Liabilities
398,445

 
333,842

Series D Cumulative Convertible Preferred Stock (no par value, 4,000,000 shares authorized, 3,600,636 and 2,237,000 shares issued and outstanding; $90.02 million and $55.93 million aggregate liquidation preference, respectively)
74,690

 
53,236

 
 
 
 
EQUITY:
 
 
 
Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding)
453

 
453

Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 1,875,748 and 1,875,848 shares issued and outstanding, respectively; $46.90 million aggregate liquidation preference)
40,957

 
40,915

Common Stock ($0.01 par value, 18,750,000 shares authorized, 9,342,577 and 8,744,189 shares issued and outstanding, respectively)
93

 
87

Additional paid-in capital
232,636

 
226,978

Accumulated deficit
(214,688
)
 
(204,925
)
Total Shareholders’ Equity
59,451

 
63,508

Noncontrolling interests
3,202

 
7,088

Total Equity
62,653

 
70,596

Total Liabilities and Equity
$
535,788

 
$
457,674








Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Funds From Operations (FFO)
(unaudited, in thousands)
 
Three Months Ended June 30,
 
Same Store
 
New Store
 
Total
 
Period Over Period 
Changes
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
$
 
%
Net Loss
$
(1,486
)
 
$
(726
)
 
$
(74
)
 
$
—

 
$
(1,560
)
 
$
(726
)
 
$
(834
)
 
(114.88
)%
Depreciation and amortization of real estate
assets
6,104

 
6,309

 
1,318

 
—

 
7,422

 
6,309

 
1,113

 
17.64
 %
Gain on disposal of properties
—

 
(1,022
)
 
—

 
—

 
—

 
(1,022
)
 
1,022

 
100.00
 %
(Gain) Loss on disposal of properties-discontinued operations
(903
)
 
11

 
—

 
—

 
(903
)
 
11

 
(914
)
 
(8,309.09
)%
FFO
$
3,715

 
$
4,572

 
$
1,244

 
$
—

 
$
4,959

 
$
4,572

 
$
387

 
8.46
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
Same Store
 
New Store
 
Total
 
Period Over Period 
Changes
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
$
 
%
Net Loss
$
(3,418
)
 
$
(1,886
)
 
$
(14
)
 
$
—

 
$
(3,432
)
 
$
(1,886
)
 
$
(1,546
)
 
(81.97
)%
Depreciation and amortization of real estate
assets
12,599

 
12,709

 
2,299

 
—

 
14,898

 
12,709

 
2,189

 
17.22
 %
Gain on disposal of properties
(1,055
)
 
(1,022
)
 
—

 
—

 
(1,055
)
 
(1,022
)
 
(33
)
 
(3.23
)%
Gain on disposal of properties-discontinued operations
(903
)
 
(1,502
)
 
—

 
—

 
(903
)
 
(1,502
)
 
599

 
39.88
 %
FFO
$
7,223

 
$
8,299

 
$
2,285

 
$
—

 
$
9,508

 
$
8,299

 
$
1,209

 
14.57
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



















Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Funds From Operations (FFO)
(unaudited, in thousands)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(1,560
)
 
$
(726
)
 
$
(3,432
)
 
$
(1,886
)
Depreciation and amortization of real estate assets
7,422

 
6,309

 
14,898

 
12,709

Gain on disposal of properties
—

 
(1,022
)
 
(1,055
)
 
(1,022
)
(Gain) Loss on disposal of properties-discontinued operations
(903
)
 
11

 
(903
)
 
(1,502
)
FFO
4,959

 
4,572

 
9,508

 
8,299

Preferred stock dividends
(3,206
)
 
(2,494
)
 
(6,413
)
 
(4,977
)
Preferred stock accretion adjustments
170

 
205

 
340

 
400

FFO available to common shareholders and common unitholders
1,923

 
2,283

 
3,435

 
3,722

Acquisition costs
257

 
339

 
264

 
599

Capital related costs
245

 
166

 
298

 
386

Other non-recurring and non-cash expenses (1)
—

 
23

 
103

 
130

Share-based compensation
67

 
224

 
486

 
601

Straight-line rent
(400
)
 
(219
)
 
(600
)
 
(404
)
Loan cost amortization
678

 
1,064

 
1,057

 
1,827

Accrued interest income
—

 
(120
)
 
—

 
(238
)
Above (below) market lease amortization
(86
)
 
190

 
(108
)
 
383

Recurring capital expenditures and tenant improvement reserves
(284
)
 
(245
)
 
(574
)
 
(451
)
AFFO
$
2,400

 
$
3,705

 
$
4,361

 
$
6,555

 
 
 
 
 
 
 
 
Weighted Average Common Shares
9,246,683

 
8,628,204

 
9,074,506

 
8,591,458

Weighted Average Common Units
377,491

 
728,934

 
502,555

 
745,353

Total Common Shares and Units
9,624,174

 
9,357,138

 
9,577,061

 
9,336,811

FFO per Common Share and Common Units
$
0.20

 
$
0.24

 
$
0.36

 
$
0.40

AFFO per Common Share and Common Units
$
0.25

 
$
0.40

 
$
0.46

 
$
0.70

(1)
Other non-recurring expenses are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-Q for the period ended June 30, 2018.



















Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Property Net Operating Income
(unaudited, in thousands)
 
Three Months Ended June 30,
 
Same Store
 
New Store
 
Total
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(1,486
)
 
$
(726
)
 
$
(74
)
 
$
—

 
$
(1,560
)
 
$
(726
)
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net (Income) Loss from Discontinued Operations
(903
)
 
11

 
—

 
—

 
(903
)
 
11

Income tax expense
17

 
69

 
—

 
—

 
17

 
69

Interest expense
4,432

 
4,570

 
748

 
—

 
5,180

 
4,570

Interest income
(1
)
 
(360
)
 
—

 
—

 
(1
)
 
(360
)
Gain on disposal of properties
—

 
(1,022
)
 
—

 
—

 
—

 
(1,022
)
Corporate general & administrative
2,223

 
1,317

 
45

 
—

 
2,268

 
1,317

Provision for credit losses - non-tenant
—

 
—

 
—

 
—

 
—

 
—

Depreciation and amortization
6,104

 
6,309

 
1,318

 
—

 
7,422

 
6,309

Non-REIT management and leasing services
—

 
636

 
—

 
—

 
—

 
636

Development income
—

 
(163
)
 
—

 
—

 
—

 
(163
)
Asset management and commission revenues
(83
)
 
(694
)
 
—

 
—

 
(83
)
 
(694
)
Property Net Operating Income
$
10,303

 
$
9,947

 
$
2,037

 
$
—

 
$
12,340

 
$
9,947

 
 
 
 
 
 
 
 
 
 
 
 
Property revenues
$
14,198

 
$
13,862

 
$
2,825

 
$
—

 
$
17,023

 
$
13,862

Property expenses
3,791

 
3,747

 
727

 
—

 
4,518

 
3,747

Provision for credit losses - tenant
104

 
168

 
61

 
—

 
165

 
168

Property Net Operating Income
$
10,303

 
$
9,947

 
$
2,037

 
$
—

 
$
12,340

 
$
9,947



 
Six Months Ended June 30,
 
Same Store
 
New Store
 
Total
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(3,418
)
 
$
(1,886
)
 
$
(14
)
 
$
—

 
$
(3,432
)
 
$
(1,886
)
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net Income from Discontinued Operations
(903
)
 
(1,518
)
 
—

 
—

 
(903
)
 
(1,518
)
Income tax expense
42

 
110

 
—

 
—

 
42

 
110

Interest expense
8,406

 
8,747

 
1,351

 
—

 
9,757

 
8,747

Interest income
(2
)
 
(716
)
 
—

 
—

 
(2
)
 
(716
)
Gain on disposal of properties
(1,055
)
 
(1,022
)
 
—

 
—

 
(1,055
)
 
(1,022
)
Corporate general & administrative
4,722

 
3,549

 
54

 
—

 
4,776

 
3,549

Provision for credit losses - non-tenant
(77
)
 
—

 
—

 
—

 
(77
)
 
—

Depreciation and amortization
12,599

 
12,709

 
2,299

 
—

 
14,898

 
12,709

Non-REIT management and leasing services
36

 
907

 
—

 
—

 
36

 
907

Development income
—

 
(299
)
 
—

 
—

 
—

 
(299
)
Asset management and commission revenues
(145
)
 
(971
)
 
—

 
—

 
(145
)
 
(971
)
Property Net Operating Income
$
20,205

 
$
19,610

 
$
3,690

 
$
—

 
$
23,895

 
$
19,610

 
 
 
 
 
 
 
 
 
 
 
 
Property revenues
$
28,168

 
$
27,771

 
$
5,107

 
$
—

 
$
33,275

 
$
27,771

Property expenses
7,761

 
7,741

 
1,356

 
—

 
9,117

 
7,741

Provision for credit losses - tenant
202

 
420

 
61

 
—

 
263

 
420

Property Net Operating Income
$
20,205

 
$
19,610

 
$
3,690

 
$
—

 
$
23,895

 
$
19,610

 
 
 
 
 
 
 
 
 
 
 
 






























Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA
(unaudited, in thousands)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(1,560
)
 
$
(726
)
 
$
(3,432
)
 
$
(1,886
)
Add back:
Depreciation and amortization (1)
7,336

 
6,499

 
14,790

 
13,092

 
Interest Expense (2)
5,180

 
4,570

 
9,757

 
8,756

 
Income taxes
17

 
69

 
42

 
110

EBITDA
10,973

 
10,412

 
21,157

 
20,072

Adjustments for items affecting comparability:
 
 
 
 
 
 
 
 
Acquisition costs
257

 
339

 
264

 
599

 
Capital related costs
245

 
166

 
298

 
386

 
Other non-recurring expenses (3)
—

 
23

 
103

 
130

 
Gain on disposal of properties
—

 
(1,022
)
 
(1,055
)
 
(1,022
)
 
(Gain) Loss on disposal of properties-discontinued operations
(903
)
 
11

 
(903
)
 
(1,502
)
Adjusted EBITDA
$
10,572

 
$
9,929

 
$
19,864

 
$
18,663

(1)
Includes above (below) market lease amortization.
(2)
Includes loan cost amortization and amounts associated with assets held for sale.
(3)
Other non-recurring expenses are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-Q for the period ended June 30, 2018.