Wheeler REIT (WHLR) Announces Completion of $71M Portfolio Acquisition; Boosts AFFO Outlook

Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR) reported that the Company has closed on the acquisition of the previously announced portfolio of fourteen properties. In addition, the Company as of April 12, 2016 increased its $45 million revolving credit line with KeyBank National Association (“KeyBank”) to approximately $67.2 million of which $60.35 million will be used to fund the purchase of the fourteen assets. The pricing of the increased credit facility will be 500 basis points above 30-day Libor. Further, the company secured an $8.0M term loan with Revere High Yield Fund, LP with a current interest rate of 8.0%.

• Consideration paid for the properties included partnership units of the Company’s operating partnership, priced at a premium to its current market value.
• As a result of the completed transaction, the Company announces second quarter 2016 annualized AFFO guidance of $0.16-$0.17 per share.

Total acquisition value of the fourteen properties was approximately $71.0 million, or $117.72 per leasable square foot, which the Company financed using a combination of cash, the increased revolving credit line with KeyBank, the Revere term loan and 888,889 partnership units of the Company’s operating partnership, valued at $2.25 per unit.

Jon S. Wheeler, Chairman and Chief Executive Officer of Wheeler, stated, “We are excited to complete this transaction in a geographic region that we know very well. The fourteen properties are in line with our acquisition criteria and are located in growing secondary and tertiary markets. The majority of the portfolio is located in South Carolina and will benefit from the close proximity of our regional office in Charleston. We are confident these assets will generate solid net operating income for the Company and be immediately accretive to earnings.”

“Increasing our AFFO, while maintaining a solid balance sheet remains in the forefront for the Company. We strategically acquired these assets leveraging the use of our ongoing, long-term relationship with KeyBank as well as through the utilization of partnership units of our operating partnership, pricing each unit at a premium to the current market value of our common stock. Wheeler remains a growth oriented company, and these 14 grocery-anchored properties will bring us that much closer towards dividend coverage in the second half of 2016.”

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