Form 8-K Wheeler Real Estate Inve For: Feb 27

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February 27, 2019 9:15 AM EST


 
 
 
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
 
 
FORM 8-K
 
 
 
 
 
 
 CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): February 27, 2019 (February 26, 2019)
 
 
 
 
 
 
WHEELER REAL ESTATE INVESTMENT TRUST, INC.
(Exact name of registrant as specified in its charter)  
 
 
 
 
 
 
 
 
 
 
Maryland
 
001-35713
 
45-2681082
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
2529 Virginia Beach Blvd., Suite 200
Virginia Beach, VA 23452
Registrant’s telephone number, including area code: (757) 627-9088 
 
 
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
 
 
 
 
 
 




ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 26, 2019, Wheeler Real Estate Investment Trust, Inc. (the “Company”), issued a press release announcing its financial results for the three months and year ended December 31, 2018. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. A copy of the Company's Supplemental Operating and Financial Data for the three months and year ended December 31, 2018 is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
 
(a)
Financial statement of businesses acquired.
Not applicable.
 
(b)
Pro forma financial information.
Not applicable.
 
(c)
Shell company transactions.
Not Applicable.
 
(d)
Exhibits.





EXHIBIT INDEX























































SIGNATURE PAGE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
WHEELER REAL ESTATE INVESTMENT TRUST, INC.
 
 
By:
 
/s/ David Kelly
 
 
David Kelly
 
 
Chief Executive Officer
Dated: February 27, 2019























Exhibit 99.1


image1b03.jpg

FOR IMMEDIATE RELEASE

WHEELER REAL ESTATE INVESTMENT TRUST, INC. ANNOUNCES 2018 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS


Virginia Beach, VA – February 26, 2019 – Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR) (“WHLR” or the “Company”) today reported operating and financial results for the three and twelve months ending December 31, 2018.

 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Net loss per common share
 
$
(1.66
)
 
$
(1.22
)
 
$
(3.17
)
 
$
(2.54
)
FFO per common share and common unit
 
(0.05
)
 
(0.56
)
 
0.42

 
0.19

AFFO per common share and common unit
 
0.15

 
0.18

 
0.73

 
1.31



2018 FOURTH QUARTER HIGHLIGHTS
(all comparisons to the same prior year period unless otherwise noted)    
•
Paid down the Revere Term Loan with proceeds from the sale of the Monarch Bank Building for a contract price of $1.8 million, resulting in a gain of $151 thousand and proceeds of $299 thousand.
•
Extended the Bulldog Investors Senior Convertible Notes to June 2019 with monthly principal and interest payments of $234 thousand.
•
Extended the First National Bank and Lumber River loans for a total of $4.5 million in indebtedness, and extended the debt maturities to 2020.
•
Paid $575 thousand on the Revere Term Loan from proceeds generated through the Riversedge North refinancing of $1.8 million, which extended the debt maturity to 2023.
•
Recognized impairment charges of $5.5 million on goodwill, $3.9 million on land held for sale and $1.7 million on the Sea Turtle notes receivable.
•
On December 20, 2018 the company suspended fourth quarter dividends on shares of its Series A Preferred Stock, Series B Convertible Preferred Stock and Series D Cumulative Convertible Preferred Stock, totaling approximately $3.0 million.
•
Net loss attributable to WHLR's common stock, $0.01 par value per share ("Common Stock") shareholders of $15.8 million, or ($1.66) per share.
•
Total revenue from continuing operations increased by 12.39% or $1.8 million.
•
Property Net Operating Income ("NOI") from continuing operations increased by 11.97% to approximately $11.2 million.
•
Adjusted Funds from Operations ("AFFO") of $0.15 per share of the Company's Common Stock and common unit ("Common Unit") in our operating partnership, Wheeler REIT, L.P.

2018 YEAR-TO-DATE HIGHLIGHTS                                    
•
Backfilled 3 former Southeastern Grocers locations, which we recaptured in its bankruptcy proceeding, with two Low Country Grocers (Piggly Wiggly's) at Ladson Crossing and South Park with rents that commenced in the third quarter 2018 and a third Piggly Wiggly at St. Matthews with rents commencing in the first quarter of 2019.


•
Received approval on all Southeastern Grocers lease modifications by the bankruptcy court, representing 543 thousand square feet.
•
Executed a lease termination fee of $980 thousand with Farm Fresh at Berkley Shopping Center.
•
Reduced the KeyBank Credit Line to $52.1 million from $68.0 million at December 31, 2017.
•
Reduced the Revere Term Loan to $1.1 million from $6.8 million at December 31, 2017.
•
Sold 4 properties for a total of $11.6 million, resulting in a gain of $3.4 million and net proceeds of $6.3 million which were used to deleverage the balance sheet.
•
Recorded a lease termination expense of $250 thousand to allow a space to be available for a high credit grocery store tenant at JANAF.
•
Net loss attributable to Wheeler's Common Stock shareholders of $29.3 million, or ($3.17) per share.
•
Total revenue from continuing operations increased by 12.26% or $7.2 million.
•
NOI from continuing operations increased by 15.05% to approximately $46.4 million.
•
AFFO of $0.73 per share of the Company's Common Stock and Common Unit.
•
Reinvested $5.1 million in our properties through tenant improvements and capital expenditures.

SUBSEQUENT EVENTS                                                
•
On January 11, 2019, the Company completed the sale of Jenks Plaza for a contract price of $2.20 million, resulting in a gain of $388 thousand with net proceeds of $1.84 million. Net proceeds were used to pay $323 thousand on the Revere Term Loan and $1.51 million on the First National Bank Line of Credit reducing the First National Bank Line of Credit to $1.42 million.
•
On February 7, 2019, the Company completed the sale of a 1.28 acre parcel of non-income producing land at Harbor Pointe for a contract price of $550 thousand, resulting in net proceeds of $496 thousand. Net proceeds were used to payoff the associated debt and $30 thousand on the Revere Term Loan. Approximately 5 acres of land remain at Harbor Pointe.
•
In January 2019, the Company extended the promissory notes at Perimeter Square extending the maturity dates to March 2019 from December 2018 and extended the maturity date on the Revere Term Loan to April 2019 from February 2019.
•
Reduced the Revere Term Loan to $505 thousand, $200 thousand from monthly principal payments from operating cash and $353 thousand from sales proceeds noted above.
•
Reduced the Bulldog Investors Senior Convertible Notes by $450 thousand to $919 thousand from $1.4 million through monthly principal payments from operating cash.

BALANCE SHEET                                                        
•
Cash and cash equivalents totaled $3.5 million at December 31, 2018, compared to $3.7 million at December 31, 2017.
•
Total debt was $369.6 million at December 31, 2018 (including debt associated with assets held for sale), compared to $371.5 million at September 30, 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.
•
WHLR's weighted-average interest rate was 4.8% with a term of 4.31 years at December 31, 2018 (including debt associated with assets held for sale). This compares to an interest rate of 4.6% and a term of 4.81 years at December 31, 2017.
•
Net investment properties as of December 31, 2018 totaled at $441.4 million (including assets held for sale), compared to $384.3 million as of December 31, 2017.
•
Refinanced six properties off of the KeyBank Credit Line and the loan encumbering LaGrange for a total of $20.3 million, and extended debt maturities out 5 years to 2023.
•
Paid down the Revere Term Loan, which matures in April 2019 with monthly principal payments of $100,000. The loan bears interest at 10.0%. The loan was paid down to $1.1 million, using the following sources: $4.3 million through property sales proceeds, $150 thousand through property refinancings and $1.3 million from operating cash.
•
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, legal, accounting and other professional fees.



DIVIDENDS                                                        
•
For the quarter ended December 31, 2018, the Company had undeclared 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 year ended December 31, 2018, the Company declared dividends of approximately $9.8 million and had undeclared dividends of $3.0 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 89.4% leased.
•
Q4-2018 Leasing Activity
•
Executed 29 lease renewals totaling 131,600 square feet at a weighted-average increase of $0.53 per square foot, representing an increase of 4.83% over prior rates.
•
Signed 8 new leases totaling approximately 56,579 square feet with a weighted-average rate of $10.38 per square foot.
•
YTD 2018 Leasing Activity
•
Executed 119 lease renewals totaling 693,970 square feet at a weighted-average increase of $0.52 per square foot, representing an increase of 6.05% over prior rates.
•
Signed 55 new leases totaling approximately 290,986 square feet with a weighted-average rate of $9.06 per square foot.
•
The Company’s gross leasable area ("GLA"), which is subject to leases that expire over the next twelve months, including month-to month leases declined to approximately 7.08% at December 31, 2018, compared to 9.39% at December 31, 2017. At December 31, 2018, 50.75% of this expiring GLA is subject to renewal options.
•
Southeastern Grocers
•
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 year ended December 31, 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. Three of these locations have been backfilled and two of these locations had rents commence in 2018 with the third location commencing rent in February 2019. These backfills reduce the impact on the Company's annualized base rent to $1.9 million.

SAME STORE RESULTS                                                    
•
Same-store NOI for the three months ended December 31, 2018 compared to December 31, 2017, declined by (8.30%) and (10.62%) on a cash basis. The same-store pool for the 3 months ended December 31, 2018, was comprised of 4.9 million square feet that the Company owned as of January 1, 2017. Same-store results were driven by a 5.78% decrease in property revenues, a result of a full quarter of Southeastern Grocers recaptures and rent modifications accompanied by anchor lease expirations at South Lake and Walnut Hill, the impact of a full quarter of the lease termination at Berkley Shopping Center and loss of rents on the Monarch Bank Building and Shoppes at Eagle Harbor sold in 2018. Same Store property expenses decreased 1.17% as a result of lower insurance expenses.
•
Same-store NOI for the year ended December 31, 2018 compared to December 31, 2017, declined by (4.01%) and (6.20%) on a cash basis. Same-store results for the year ended December 31, 2018, were driven, by a decrease of 2.66% in property revenues as a result of the impact of over half a year of Southeastern Grocers recaptures and rent modifications accompanied by anchor lease expirations at South Lake, Fort Howard and Walnut Hill, full year of rent modifications at Devine and loss of rents on the Monarch Bank Building and Shoppes at Eagle Harbor both sold in 2018, offset by $980 thousand in lease termination fees on Farm Fresh at Berkley Shopping Center. Property expenses increased 1.19% as a result of increased real estate taxes and utilities a direct result of vacant anchor space partially offset by a decrease in insurance expense. The tenant provision for credit losses decreased 12.25% primarily resulting from increased collections on accounts receivable.


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                                                        
•
Sold Chipotle ground lease at Conyers Crossing for a contract price of $1.3 million, resulting in a gain of $1.0 million with net proceeds of $1.2 million.
•
Sold an undeveloped land parcel at Laskin Road for a contract price of $2.9 million, resulting in a $903 thousand gain with net proceeds of $2.7 million.
•
Sold Shoppes at Eagle Harbor for a contract price of $5.7 million, resulting in a $1.3 million gain with net proceeds of $2.1 million.
•
Sold Monarch Bank Building for a contract price of $1.8 million, resulting in a $151 thousand gain with net proceeds of $299 thousand.

SUPPLEMENTAL INFORMATION                                                
Further details regarding Wheeler Real Estate Investment Trust, Inc.’s operations and financials for the period ended December 31, 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, February 27, 2019 at 10:00 am Eastern Time to review its financial performance and operating results for the quarter ended December 31, 2018.

Conference Call and Webcast:
U.S. & Canada Toll Free: (877) 407-3101 / International: (201) 493-6789
Webcast: www.whlr.us via the Investor Relations Section

Replay:
U.S. & Canada Toll Free: (877) 660-6853 / International: (201) 612-7415
Conference ID#: 13679474
Available February 27, 2019 (one hour after the end of the conference call) to March 27, 2019 at 10:00 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 Annual Report on Form 10-K, 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 future generation of financial returns from its portfolio 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 / [email protected]


Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except share and per share data)
 
Three Months Ended December 31,
 
Years Ended December 31,
 
2018
 
2017
 
2018
 
2017
REVENUE:
 
 
 
 
 
 
 
Rental revenues
$
12,589

 
$
10,891

 
$
50,952

 
$
44,156

Asset management fees
46

 
120

 
189

 
927

Commissions
38

 
141

 
140

 
899

Tenant reimbursements
3,258

 
2,905

 
12,595

 
11,032

Development and other revenues
136

 
239

 
1,833

 
1,521

Total Revenue
16,067

 
14,296

 
65,709

 
58,535

OPERATING EXPENSES:
 
 
 
 
 
 
 
Property operations
4,669

 
3,922

 
18,473

 
15,389

Non-REIT management and leasing services
16

 
(598
)
 
75

 
927

Depreciation and amortization
6,151

 
5,776

 
27,094

 
26,231

Impairment of goodwill
5,486

 
—

 
5,486

 
—

Provision for credit losses
99

 
2,378

 
434

 
2,821

Impairment of notes receivable
1,739

 
5,261

 
1,739

 
5,261

Corporate general & administrative
1,749

 
2,509

 
8,228

 
7,364

Other operating expenses
—

 
—

 
250

 
—

Total Operating Expenses
19,909

 
19,248

 
61,779

 
57,993

Gain on disposal of properties
151

 
—

 
2,463

 
1,021

Operating (Loss) Income
(3,691
)
 
(4,952
)
 
6,393

 
1,563

Interest income
1

 
363

 
4

 
1,443

Interest expense
(5,288
)
 
(4,168
)
 
(20,228
)
 
(17,165
)
Net Loss from Continuing Operations Before Income Taxes
(8,978
)
 
(8,757
)
 
(13,831
)
 
(14,159
)
Income tax expense (benefit)
32

 
38

 
(40
)
 
(137
)
Net Loss from Continuing Operations
(8,946
)
 
(8,719
)
 
(13,871
)
 
(14,296
)
Discontinued Operations
 
 
 
 
 
 
 
(Loss) income from discontinued operations
(3,938
)
 
—

 
(3,938
)
 
16

Gain on disposal of properties
—

 
—

 
903

 
1,502

Net (Loss) Income from Discontinued Operations
(3,938
)
 
—

 
(3,035
)
 
1,518

Net Loss
(12,884
)
 
(8,719
)
 
(16,906
)
 
(12,778
)
Less: Net loss attributable to noncontrolling interests
(336
)
 
(519
)
 
(406
)
 
(684
)
Net Loss Attributable to Wheeler REIT
(12,548
)
 
(8,200
)
 
(16,500
)
 
(12,094
)
Preferred Stock dividends - declared
(169
)
 
(2,496
)
 
(9,790
)
 
(9,969
)
Preferred Stock dividends - undeclared
(3,037
)
 
—

 
(3,037
)
 
—

Net Loss Attributable to Wheeler REIT Common Shareholders
$
(15,754
)
 
$
(10,696
)
 
$
(29,327
)
 
$
(22,063
)
 
 
 
 
 
 
 
 
Loss per share from continuing operations (basic and diluted)
$
(1.25
)
 
$
(1.22
)
 
$
(2.85
)
 
$
(2.70
)
(Loss) income per share from discontinued operations
(0.41
)
 
—

 
(0.32
)
 
0.16

Total loss per share
$
(1.66
)
 
$
(1.22
)
 
$
(3.17
)
 
$
(2.54
)
Weighted-average number of shares:
 
 
 
 
 
 
 
Basic and Diluted
9,484,185

 
8,739,455

 
9,256,234

 
8,654,240

 
 
 
 
 
 
 
 



Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except par value and share data)
 
December 31,
 
2018
 
2017
ASSETS:
 
 
 
Investment properties, net
$
433,142

 
$
375,199

Cash and cash equivalents
3,544

 
3,677

Restricted cash
14,455

 
8,609

Rents and other tenant receivables, net
5,539

 
5,619

Notes receivable, net
5,000

 
6,739

Goodwill
—

 
5,486

Assets held for sale
8,982

 
9,135

Above market lease intangible, net
7,346

 
8,778

Deferred costs and other assets, net
30,073

 
34,432

Total Assets
$
508,081

 
$
457,674

LIABILITIES:
 
 
 
Loans payable, net
$
360,117

 
$
307,375

Liabilities associated with assets held for sale
4,632

 
792

Below market lease intangible, net
10,045

 
9,616

Accounts payable, accrued expenses and other liabilities
12,077

 
10,579

Dividends payable
—

 
5,480

Total Liabilities
386,871

 
333,842

Commitments and contingencies
—

 
—

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; $91.98 million and $55.93 million aggregate liquidation preference, respectively)
76,955

 
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)
41,000

 
40,915

Common Stock ($0.01 par value, 18,750,000 shares authorized, 9,511,464 and 8,744,189 shares issued and outstanding, respectively)
95

 
87

Additional paid-in capital
233,697

 
226,978

Accumulated deficit
(233,184
)
 
(204,925
)
Total Shareholders’ Equity
42,061

 
63,508

Noncontrolling interests
2,194

 
7,088

Total Equity
44,255

 
70,596

Total Liabilities and Equity
$
508,081

 
$
457,674









Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Funds From Operations (FFO)
(unaudited, in thousands)

 
Three Months Ended December 31,
 
Same Stores
 
New Stores
 
Total
 
Year Over Year Changes
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
$
 
%
Net loss
$
(12,852
)
 
$
(8,719
)
 
$
(32
)
 
$
—

 
$
(12,884
)
 
$
(8,719
)
 
$
(4,165
)
 
(47.77
)%
Depreciation and amortization of real estate assets
4,855

 
5,776

 
1,296

 
—

 
6,151

 
5,776

 
375

 
6.49
 %
Impairment of goodwill
5,486

 
—

 
—

 
—

 
5,486

 
—

 
5,486

 
100.00
 %
Impairment of land
3,938

 
—

 
—

 
—

 
3,938

 
—

 
3,938

 
100.00
 %
Gain on disposal of properties
(151
)
 
—

 
—

 
—

 
(151
)
 
—

 
(151
)
 
(100.00
)%
FFO
$
1,276

 
$
(2,943
)
 
$
1,264

 
$
—

 
$
2,540

 
$
(2,943
)
 
$
5,483

 
186.31
 %
 
Years Ended December 31,
 
Same Stores
 
New Stores
 
Total
 
Year Over Year Changes
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
$
 
%
Net loss
$
(16,696
)
 
$
(12,778
)
 
$
(210
)
 
$
—

 
$
(16,906
)
 
$
(12,778
)
 
$
(4,128
)
 
(32.31
)%
Depreciation and amortization of real estate assets
22,386

 
26,231

 
4,708

 
—

 
27,094

 
26,231

 
863

 
3.29
 %
Impairment of goodwill
5,486

 
—

 
—

 
—

 
5,486

 
—

 
5,486

 
100.00
 %
Impairment of land
3,938

 
—

 
—

 
—

 
3,938

 
—

 
3,938

 
100.00
 %
Gain on disposal of properties
(2,463
)
 
(1,021
)
 
—

 
—

 
(2,463
)
 
(1,021
)
 
(1,442
)
 
(141.23
)%
Gain on disposal of properties-discontinued operations
(903
)
 
(1,502
)
 
—

 
—

 
(903
)
 
(1,502
)
 
599

 
39.88
 %
FFO
$
11,748

 
$
10,930

 
$
4,498

 
$
—

 
$
16,246

 
$
10,930

 
$
5,316

 
48.64
 %


















Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Funds From Operations (FFO)
(unaudited, in thousands)
 
Three Months Ended December 31,
 
Years Ended December 31,
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(12,884
)
 
$
(8,719
)
 
$
(16,906
)
 
$
(12,778
)
Depreciation and amortization of real estate assets
6,151

 
5,776

 
27,094

 
26,231

Impairment of goodwill
5,486

 
—

 
5,486

 
—

Impairment of land
3,938

 
—

 
3,938

 
—

Gain on disposal of properties
(151
)
 
—

 
(2,463
)
 
(1,021
)
Gain on disposal of properties-discontinued operations
—

 
—

 
(903
)
 
(1,502
)
FFO
2,540

 
(2,943
)
 
16,246

 
10,930

Preferred stock dividends-declared
(169
)
 
(2,496
)
 
(9,790
)
 
(9,969
)
Preferred stock dividends-undeclared
(3,037
)
 
—

 
(3,037
)
 
—

Preferred stock accretion adjustments
169

 
204

 
678

 
809

FFO available to common shareholders and common unitholders
(497
)
 
(5,235
)
 
4,097

 
1,770

Impairment of notes receivable
1,739

 
5,261

 
1,739

 
5,261

Acquisition and development costs
(46
)
 
269

 
300

 
1,101

Capital related costs
168

 
195

 
576

 
663

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

 
117

 
103

 
294

Share-based compensation
213

 
135

 
940

 
870

Straight-line rent
(244
)
 
(146
)
 
(1,197
)
 
(712
)
Loan cost amortization
681

 
578

 
2,363

 
3,087

Accrued interest income
—

 
774

 
—

 
415

(Below) above market lease amortization
(274
)
 
5

 
(695
)
 
453

Recurring capital expenditures and tenant improvement reserves
(285
)
 
(245
)
 
(1,143
)
 
(941
)
AFFO
$
1,455

 
$
1,708

 
$
7,083

 
$
12,261

 
 
 
 
 
 
 
 
Weighted Average Common Shares
9,484,185

 
8,739,455

 
9,256,234

 
8,654,240

Weighted Average Common Units
259,054

 
639,555

 
389,421

 
702,168

Total Common Shares and Units
9,743,239

 
9,379,010

 
9,645,655

 
9,356,408

FFO per Common Share and Common Units
$
(0.05
)
 
$
(0.56
)
 
$
0.42

 
$
0.19

AFFO per Common Share and Common Units
$
0.15

 
$
0.18

 
$
0.73

 
$
1.31

(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-K for the year ended December 31, 2018.











Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Property Net Operating Income
(unaudited, in thousands)
 
Three Months Ended December 31,
 
Same Store
 
New Store
 
Total
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
(in thousands)
Net Loss
$
(12,852
)
 
$
(8,719
)
 
$
(32
)
 
$
—

 
$
(12,884
)
 
$
(8,719
)
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net Loss from Discontinued Operations
3,938

 
—

 
—

 
—

 
3,938

 
—

Income tax benefit
(32
)
 
(38
)
 
—

 
—

 
(32
)
 
(38
)
Interest expense
4,542

 
4,168

 
746

 
—

 
5,288

 
4,168

Interest income
(1
)
 
(363
)
 
—

 
—

 
(1
)
 
(363
)
Gain on disposal of properties
(151
)
 
—

 
—

 
—

 
(151
)
 
—

Corporate general & administrative
1,729

 
2,509

 
20

 
—

 
1,749

 
2,509

Impairment of notes receivable
1,739

 
5,261

 
—

 
—

 
1,739

 
5,261

Provision for credit losses- non-tenant
—

 
2,364

 
—

 
—

 
—

 
2,364

Impairment of goodwill
5,486

 
—

 
—

 
—

 
5,486

 
—

Depreciation and amortization
4,855

 
5,776

 
1,296

 
—

 
6,151

 
5,776

Non-REIT management and leasing services
16

 
(598
)
 
—

 
—

 
16

 
(598
)
Development income
—

 
(83
)
 
—

 
—

 
—

 
(83
)
Asset management and commission revenues
(84
)
 
(261
)
 
—

 
—

 
(84
)
 
(261
)
Property Net Operating Income
$
9,185

 
$
10,016

 
$
2,030

 
$
—

 
$
11,215

 
$
10,016

 
 
 
 
 
 
 
 
 
 
 
 
Property revenues
$
13,146

 
$
13,952

 
$
2,837

 
$
—

 
$
15,983

 
$
13,952

Property expenses
3,876

 
3,922

 
793

 
—

 
4,669

 
3,922

Provision for credit losses- tenant
85

 
14

 
14

 
—

 
99

 
14

Property Net Operating Income
$
9,185

 
$
10,016

 
$
2,030

 
$
—

 
$
11,215

 
$
10,016







 
Years Ended December 31,
 
Same Store
 
New Store
 
Total
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
(in thousands)
Net Loss
$
(16,696
)
 
$
(12,778
)
 
$
(210
)
 
$
—

 
$
(16,906
)
 
$
(12,778
)
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net Loss (Income) from Discontinued Operations
3,035

 
(1,518
)
 
—

 
—

 
3,035

 
(1,518
)
Income tax expense
40

 
137

 
—

 
—

 
40

 
137

Interest expense
17,379

 
17,165

 
2,849

 
—

 
20,228

 
17,165

Interest income
(4
)
 
(1,443
)
 
—

 
—

 
(4
)
 
(1,443
)
Gain on disposal of properties
(2,463
)
 
(1,021
)
 
—

 
—

 
(2,463
)
 
(1,021
)
Other operating expenses
—

 
—

 
250

 
—

 
250

 
—

Corporate general & administrative
8,136

 
7,364

 
92

 
—

 
8,228

 
7,364

Impairment of notes receivable
1,739

 
5,261

 
—

 
—

 
1,739

 
5,261

Provision for credit losses- non-tenant
(77
)
 
2,364

 
—

 
—

 
(77
)
 
2,364

Impairment of goodwill
5,486

 
—

 
—

 
—

 
5,486

 
—

Depreciation and amortization
22,386

 
26,231

 
4,708

 
—

 
27,094

 
26,231

Non-REIT management and leasing services
75

 
927

 
—

 
—

 
75

 
927

Development income
—

 
(537
)
 
—

 
—

 
—

 
(537
)
Asset management and commission revenues
(329
)
 
(1,826
)
 
—

 
—

 
(329
)
 
(1,826
)
Property Net Operating Income
$
38,707

 
$
40,326

 
$
7,689

 
$
—

 
$
46,396

 
$
40,326

 
 
 
 
 
 
 
 
 
 
 
 
Property revenues
$
54,680

 
$
56,172

 
$
10,700

 
$
—

 
$
65,380

 
$
56,172

Property expenses
15,572

 
15,389

 
2,901

 
—

 
18,473

 
15,389

Provision for credit losses- tenant
401

 
457

 
110

 
—

 
511

 
457

Property Net Operating Income
$
38,707

 
$
40,326

 
$
7,689

 
$
—

 
$
46,396

 
$
40,326



























Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA
(unaudited, in thousands)
 
Three Months Ended December 31,
 
Years Ended December 31,
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(12,884
)
 
$
(8,719
)
 
$
(16,906
)
 
$
(12,778
)
Add back:
Depreciation and amortization (1)
5,877

 
5,781

 
26,399

 
26,684

 
Interest Expense (2)
5,288

 
4,168

 
20,228

 
17,174

 
Income tax (benefit) expense
(32
)
 
(38
)
 
40

 
137

EBITDA
(1,751
)
 
1,192

 
29,761

 
31,217

Adjustments for items affecting comparability:
 
 
 
 
 
 
 
 
Acquisition and development costs
(46
)
 
269

 
300

 
1,101

 
Capital related costs
168

 
195

 
576

 
663

 
Other non-recurring and non-cash expenses (3)
—

 
117

 
103

 
294

 
Impairment of goodwill
5,486

 
—

 
5,486

 
—

 
Impairment of notes receivable
1,739

 
5,261

 
1,739

 
5,261

 
Impairment of land-discontinued operations
3,938

 
—

 
3,938

 
—

 
Gain on disposal of properties
(151
)
 
—

 
(2,463
)
 
(1,021
)
 
Gain on disposal of properties-discontinued operations
—

 
—

 
(903
)
 
(1,502
)
Adjusted EBITDA
$
9,383

 
$
7,034

 
$
38,537

 
$
36,013

(1)
Includes above (below) market lease amortization.
(2)
Includes loan cost amortization and amounts associated with discontinued operations.
(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-K for the period ended December 31, 2018.


Exhibit 99.2

image0a41.jpg

image1b35.jpg










Supplemental Operating and Financial Data
for the three months and year ended December 31, 2018


Table of Contents
 
 
Page
Company Overview
Financial and Portfolio Overview
Financial Summary
 
Consolidated Balance Sheets
Consolidated Statements of Operations
Reconciliation of Non-GAAP Measures
Debt Summary
Portfolio Summary
 
Property Summary
Top Ten Tenants by Annualized Base Rent
Leasing Summary
15
Definitions



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, Inc. 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, Inc.'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, Inc.'s inability to successfully complete real estate acquisitions or successfully operate acquired properties and Wheeler Real Estate Investment Trust, Inc.'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, Inc.'s future results, performance or transactions, see the reports filed by Wheeler Real Estate Investment Trust, Inc. 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, Inc. 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. 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. Wheeler’s common stock, Series B convertible preferred stock, Series D cumulative convertible preferred stock and common stock warrants trade publicly on the Nasdaq under the symbols “WHLR”, “WHLRP”, "WHLRD" 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
 
Website: www.whlr.us
 
 
 
 
 
Executive Management
 
David Kelly - President & CEO
 
Matthew T. Reddy - CFO
 
M. Andrew Franklin - COO
 
 
 
Board of Directors
 
John W. Sweet (Chairman)
Andrew R. Jones
Sean F. Armstrong
John P. McAuliffe
Stewart J. Brown
Carl B. McGowan, Jr.
David Kelly
Jeffrey M. Zwerdling
 
 
Investor Relations Contact
Transfer Agent and Registrar
Mary Jensen [email protected]
2529 Virginia Beach Boulevard
Virginia Beach, VA 23452
Phone: (757) 627-9088
www.whlr.us
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 December 31, 2018
Financial Results
 
Net loss attributable to Wheeler REIT common shareholders (in 000s)
$
(15,754
)
Net loss per basic and diluted shares
$
(1.66
)
Funds from operations available to common shareholders and Operating Partnership (OP) unitholders (FFO) (in 000s) (1)
$
(497
)
FFO per common share and OP unit
$
(0.05
)
Adjusted FFO (AFFO) (in 000s) (1)
$
1,455

AFFO per common share and OP unit
$
0.15

 
 
Assets and Leverage
 
Investment Properties, net of $40.19 million accumulated depreciation (in 000s)
$
433,142

Cash and Cash Equivalents (in 000s)
$
3,544

Total Assets (in 000s)
$
508,081

Debt to Total Assets(3)
72.75
%
Debt to Gross Asset Value
63.60
%
 
 
Market Capitalization
 
Common shares outstanding
9,511,464

OP units outstanding
235,032

Total common shares and OP units
9,746,496

 
Shares Outstanding at December 31, 2018
 
Fourth Quarter stock price range
 
Stock price as of December 31, 2018
Common Stock
9,511,464

 
$0.72 - $4.54
 
$
0.89

Series B preferred shares
1,875,748

 
$6.20 - $19.20
 
$
7.78

Series D preferred shares
3,600,636

 
$7.00 - $21.68
 
$
9.63

Total debt (in 000s)(3)
$
369,612

Common Stock market capitalization (as of December 31, 2018 closing stock price, in 000s)
$
8,465

 
 
Portfolio Summary
 
Total Leasable Area (GLA) in sq. ft.
5,716,471

Occupancy Rate
89.1
%
Leased Rate (2)
89.4
%
Annualized Base Rent (in 000s)
$
49,247

Total number of leases signed or renewed during the fourth quarter of 2018
37

Total sq. ft. leases signed or renewed during the fourth quarter of 2018
188,179


(1)    See page 18 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2)
Reflects leases executed through January 9, 2019 that commence subsequent to the end of the current period.
(3)    Includes debt associated with assets held for sale.


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



Consolidated Balance Sheets
$ in 000s
 
December 31,
 
2018
 
2017
ASSETS:
 
 
 
Investment properties, net
$
433,142

 
$
375,199

Cash and cash equivalents
3,544

 
3,677

Restricted cash
14,455

 
8,609

Rents and other tenant receivables, net
5,539

 
5,619

Notes receivable, net
5,000

 
6,739

Goodwill
—

 
5,486

Assets held for sale
8,982

 
9,135

Above market lease intangible, net
7,346

 
8,778

Deferred costs and other assets, net
30,073

 
34,432

Total Assets
$
508,081

 
$
457,674

LIABILITIES:
 
 
 
Loans payable, net
$
360,117

 
$
307,375

Liabilities associated with assets held for sale
4,632

 
792

Below market lease intangible, net
10,045

 
9,616

Accounts payable, accrued expenses and other liabilities
12,077

 
10,579

Dividends payable
—

 
5,480

Total Liabilities
386,871

 
333,842

Commitments and contingencies
—

 
—

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; $91.98 million and $55.93 million aggregate liquidation preference, respectively)
76,955

 
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)
41,000

 
40,915

Common Stock ($0.01 par value, 18,750,000 shares authorized, 9,511,464 and 8,744,189 shares issued and outstanding, respectively)
95

 
87

Additional paid-in capital
233,697

 
226,978

Accumulated deficit
(233,184
)
 
(204,925
)
Total Shareholders’ Equity
42,061

 
63,508

Noncontrolling interests
2,194

 
7,088

Total Equity
44,255

 
70,596

Total Liabilities and Equity
$
508,081

 
$
457,674



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


Consolidated Statements of Operations
$ in 000s
 
Three Months Ended December 31,
 
Years Ended December 31,
 
2018
 
2017
 
2018
 
2017
REVENUE:
 
 
 
 
 
 
 
Rental revenues
$
12,589

 
$
10,891

 
$
50,952

 
$
44,156

Asset management fees
46

 
120

 
189

 
927

Commissions
38

 
141

 
140

 
899

Tenant reimbursements
3,258

 
2,905

 
12,595

 
11,032

Development and other revenues
136

 
239

 
1,833

 
1,521

Total Revenue
16,067

 
14,296

 
65,709

 
58,535

OPERATING EXPENSES:
 
 
 
 
 
 
 
Property operations
4,669

 
3,922

 
18,473

 
15,389

Non-REIT management and leasing services
16

 
(598
)
 
75

 
927

Depreciation and amortization
6,151

 
5,776

 
27,094

 
26,231

Impairment of goodwill
5,486

 
—

 
5,486

 
—

Provision for credit losses
99

 
2,378

 
434

 
2,821

Impairment of notes receivable
1,739

 
5,261

 
1,739

 
5,261

Corporate general & administrative
1,749

 
2,509

 
8,228

 
7,364

Other operating expenses
—

 
—

 
250

 
—

Total Operating Expenses
19,909

 
19,248

 
61,779

 
57,993

Gain on disposal of properties
151

 
—

 
2,463

 
1,021

Operating (Loss) Income
(3,691
)
 
(4,952
)
 
6,393

 
1,563

Interest income
1

 
363

 
4

 
1,443

Interest expense
(5,288
)
 
(4,168
)
 
(20,228
)
 
(17,165
)
Net Loss from Continuing Operations Before Income Taxes
(8,978
)
 
(8,757
)
 
(13,831
)
 
(14,159
)
Income tax expense (benefit)
32

 
38

 
(40
)
 
(137
)
Net Loss from Continuing Operations
(8,946
)
 
(8,719
)
 
(13,871
)
 
(14,296
)
Discontinued Operations
 
 
 
 
 
 
 
(Loss) income from discontinued operations
(3,938
)
 
—

 
(3,938
)
 
16

Gain on disposal of properties
—

 
—

 
903

 
1,502

Net (Loss) Income from Discontinued Operations
(3,938
)
 
—

 
(3,035
)
 
1,518

Net Loss
(12,884
)
 
(8,719
)
 
(16,906
)
 
(12,778
)
Less: Net loss attributable to noncontrolling interests
(336
)
 
(519
)
 
(406
)
 
(684
)
Net Loss Attributable to Wheeler REIT
(12,548
)
 
(8,200
)
 
(16,500
)
 
(12,094
)
Preferred Stock dividends - declared
(169
)
 
(2,496
)
 
(9,790
)
 
(9,969
)
Preferred Stock dividends - undeclared
(3,037
)
 
—

 
(3,037
)
 
—

Net Loss Attributable to Wheeler REIT Common Shareholders
$
(15,754
)
 
$
(10,696
)
 
$
(29,327
)
 
$
(22,063
)
 
 
 
 
 
 
 
 
Loss per share from continuing operations (basic and diluted)
$
(1.25
)
 
$
(1.22
)
 
$
(2.85
)
 
$
(2.70
)
(Loss) income per share from discontinued operations
(0.41
)
 
—

 
(0.32
)
 
0.16

Total loss per share
$
(1.66
)
 
$
(1.22
)
 
$
(3.17
)
 
$
(2.54
)
Weighted-average number of shares:
 
 
 
 
 
 
 
Basic and Diluted
9,484,185

 
8,739,455

 
9,256,234

 
8,654,240

 
 
 
 
 
 
 
 

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


Reconciliation of Non-GAAP Measures

FFO and AFFO (1) 
$ in 000s

 
Three Months Ended December 31,
 
Years Ended December 31,
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(12,884
)
 
$
(8,719
)
 
$
(16,906
)
 
$
(12,778
)
Depreciation and amortization of real estate assets
6,151

 
5,776

 
27,094

 
26,231

Impairment of goodwill
5,486

 
—

 
5,486

 
—

Impairment of land
3,938

 
—

 
3,938

 
—

Gain on disposal of properties
(151
)
 
—

 
(2,463
)
 
(1,021
)
Gain on disposal of properties-discontinued operations
—

 
—

 
(903
)
 
(1,502
)
FFO
2,540

 
(2,943
)
 
16,246

 
10,930

Preferred stock dividends-declared
(169
)
 
(2,496
)
 
(9,790
)
 
(9,969
)
Preferred stock dividends-undeclared
(3,037
)
 
—

 
(3,037
)
 
—

Preferred stock accretion adjustments
169

 
204

 
678

 
809

FFO available to common shareholders and common unitholders
(497
)
 
(5,235
)
 
4,097

 
1,770

Impairment of notes receivable
1,739

 
5,261

 
1,739

 
5,261

Acquisition and development costs
(46
)
 
269

 
300

 
1,101

Capital related costs
168

 
195

 
576

 
663

Other non-recurring and non-cash expenses (2)
—

 
117

 
103

 
294

Share-based compensation
213

 
135

 
940

 
870

Straight-line rent
(244
)
 
(146
)
 
(1,197
)
 
(712
)
Loan cost amortization
681

 
578

 
2,363

 
3,087

Accrued interest income
—

 
774

 
—

 
415

(Below) above market lease amortization
(274
)
 
5

 
(695
)
 
453

Recurring capital expenditures and tenant improvement reserves
(285
)
 
(245
)
 
(1,143
)
 
(941
)
AFFO
$
1,455

 
$
1,708

 
$
7,083

 
$
12,261

 
 
 
 
 
 
 
 
Weighted Average Common Shares
9,484,185

 
8,739,455

 
9,256,234

 
8,654,240

Weighted Average Common Units
259,054

 
639,555

 
389,421

 
702,168

Total Common Shares and Units
9,743,239

 
9,379,010

 
9,645,655

 
9,356,408

FFO per Common Share and Common Units
$
(0.05
)
 
$
(0.56
)
 
$
0.42

 
$
0.19

AFFO per Common Share and Common Units
$
0.15

 
$
0.18

 
$
0.73

 
$
1.31


(1)
See page 18 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2)
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-K for the year ended December 31, 2018.







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


Reconciliation of Non-GAAP Measures (continued)

Property Net Operating Income (1) 
$ in 000s
 
Three Months Ended December 31,
 
Years Ended December 31,
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(12,884
)
 
$
(8,719
)
 
$
(16,906
)
 
$
(12,778
)
Adjustments:
 
 
 
 
 
 
 
Net Income from Discontinued Operations
3,938

 
—

 
3,035

 
(1,518
)
Income tax (benefit) expense
(32
)
 
(38
)
 
40

 
137

Interest expense
5,288

 
4,168

 
20,228

 
17,165

Interest income
(1
)
 
(363
)
 
(4
)
 
(1,443
)
Gain on disposal of properties
(151
)
 
—

 
(2,463
)
 
(1,021
)
Other operating expenses
—

 
—

 
250

 
—

Corporate general & administrative
1,749

 
2,509

 
8,228

 
7,364

Impairment of notes receivable
1,739

 
5,261

 
1,739

 
5,261

Provision for credit losses - non-tenant
—

 
2,364

 
(77
)
 
2,364

Impairment of goodwill
5,486

 
—

 
5,486

 
—

Depreciation and amortization
6,151

 
5,776

 
27,094

 
26,231

Non-REIT management and leasing services
16

 
(598
)
 
75

 
927

Development income
—

 
(83
)
 
—

 
(537
)
Asset management and commission revenues
(84
)
 
(261
)
 
(329
)
 
(1,826
)
Property Net Operating Income
$
11,215

 
$
10,016

 
$
46,396

 
$
40,326

 
 
 


 
 
 
 
Property revenues
$
15,983

 
$
13,952

 
$
65,380

 
$
56,172

Property expenses
4,669

 
3,922

 
18,473

 
15,389

Provision for credit losses - tenant
99

 
14

 
511

 
457

Property Net Operating Income
$
11,215

 
$
10,016

 
$
46,396

 
$
40,326

(1)
See page 19 for the Company's definition of this non-GAAP measurement and reasons for using it.















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


Reconciliation of Non-GAAP Measures (continued)

EBITDA (4) 
$ in 000s
 
Three Months Ended December 31,
 
Years Ended December 31,
 
2018
 
2017
 
2018
 
2017
Net Loss
$
(12,884
)
 
$
(8,719
)
 
$
(16,906
)
 
$
(12,778
)
Add back:
Depreciation and amortization (1)
5,877

 
5,781

 
26,399

 
26,684

 
Interest Expense (2)
5,288

 
4,168

 
20,228

 
17,174

 
Income tax (benefit) expense
(32
)
 
(38
)
 
40

 
137

EBITDA
(1,751
)
 
1,192

 
29,761

 
31,217

Adjustments for items affecting comparability:
 
 
 
 
 
 
 
 
Acquisition and development costs
(46
)
 
269

 
300

 
1,101

 
Capital related costs
168

 
195

 
576

 
663

 
Other non-recurring and non-cash expenses (3)
—

 
117

 
103

 
294

 
Impairment of goodwill
5,486

 
—

 
5,486

 
—

 
Impairment of notes receivable
1,739

 
5,261

 
1,739

 
5,261

 
Impairment of land-discontinued operations
3,938

 
—

 
3,938

 
—

 
Gain on disposal of properties
(151
)
 
—

 
(2,463
)
 
(1,021
)
 
Gain on disposal of properties-discontinued operations
—

 
—

 
(903
)
 
(1,502
)
Adjusted EBITDA
$
9,383

 
$
7,034

 
$
38,537

 
$
36,013

(1)
Includes above (below) market lease amortization.
(2)
Includes loan cost amortization and amounts associated with discontinued operations.
(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-K for the period ended December 31, 2018.
(4)
See page 18 for the Company's definition of this non-GAAP measurement and reasons for using it.

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


Debt Summary as of December 31, 2018
$ in 000s
Loans Payable:
$369.61 million
Weighted Average Interest Rate:
4.84%
Total Debt to Total Assets:
72.75%

Property/Description
 
Monthly Payment
 
Interest
Rate
 
Maturity
 
December 31, 2018
 
December 31, 2017
 Harbor Pointe (1)
 
$
11,024

 
5.85
%
 
December 2018
 
$
460

 
$
553

 Perimeter Square
 
Interest only

 
5.50
%
 
December 2018
 
6,250

 
5,382

 Perimeter Square construction loan
 
Interest only

 
6.00
%
 
December 2018
 
247

 
—

 KeyBank Line of Credit
 
Interest only

 
Libor + 250 basis points

 
February 2019
 
3,830

 
15,532

 Revere Term Loan
 
$
109,658

 
10.00
%
 
February 2019
 
1,059

 
6,808

 Monarch Bank Building
 
$
7,340

 
4.85
%
 
June 2019
 
—

 
1,266

 Senior convertible notes
 
$
234,199

 
9.00
%
 
June 2019
 
1,369

 
1,369

 DF I-Moyock (1)
 
$
10,665

 
5.00
%
 
July 2019
 
73

 
194

 Rivergate
 
$
144,823

 
Libor + 295 basis points

 
December 2019
 
22,117

 
22,689

 KeyBank Line of Credit
 
Interest only

 
Libor + 250 basis points

 
December 2019
 
48,272

 
52,500

 LaGrange Marketplace
 
$
15,065

 
Libor + 375 basis points

 
March 2020
 
—

 
2,317

 Folly Road
 
$
32,827

 
4.00
%
 
March 2020
 
6,073

 
6,181

 Columbia Fire Station construction loan
 
$
25,452

 
4.00
%
 
May 2020
 
4,189

 
3,421

 Shoppes at TJ Maxx
 
$
33,880

 
3.88
%
 
May 2020
 
5,539

 
5,727

 First National Bank Line of Credit
 
Interest only

 
Libor + 300 basis points

 
September 2020
 
2,938

 
3,000

 Lumber River
 
$
10,723

 
Libor + 350 basis points

 
October 2020
 
1,448

 
1,500

 JANAF Bravo
 
Interest only

 
4.65
%
 
January 2021
 
6,500

 
—

 Walnut Hill Plaza
 
$
26,850

 
5.50
%
 
September 2022
 
3,868

 
3,903

 Riversedge North
 
$
11,436

 
5.77
%
 
December 2023
 
1,800

 
863

 Twin City Commons
 
$
17,827

 
4.86
%
 
January 2023
 
3,048

 
3,111

 Shoppes at Eagle Harbor
 
$
26,528

 
5.10
%
 
March 2023
 
—

 
3,341

 New Market
 
$
48,747

 
5.65
%
 
June 2023
 
6,907

 
—

 Benefit Street Note (3)
 
$
53,185

 
5.71
%
 
June 2023
 
7,567

 
—

 Deutsche Bank Note (2)
 
$
33,340

 
5.71
%
 
July 2023
 
5,713

 
—

 JANAF
 
$
333,159

 
4.49
%
 
July 2023
 
52,253

 
—

 Tampa Festival
 
$
50,797

 
5.56
%
 
September 2023
 
8,227

 
8,368

 Forrest Gallery
 
$
50,973

 
5.40
%
 
September 2023
 
8,529

 
8,669

 South Carolina Food Lions Note
 
$
68,320

 
5.25
%
 
January 2024
 
11,867

 
12,050

 Cypress Shopping Center
 
$
34,360

 
4.70
%
 
July 2024
 
6,379

 
6,485

 Port Crossing
 
$
34,788

 
4.84
%
 
August 2024
 
6,150

 
6,263

 Freeway Junction
 
$
41,798

 
4.60
%
 
September 2024
 
7,863

 
7,994

 Harrodsburg Marketplace
 
$
19,112

 
4.55
%
 
September 2024
 
3,486

 
3,553

 Graystone Crossing (1)
 
$
20,386

 
4.55
%
 
October 2024
 
3,863

 
3,928

 Bryan Station
 
$
23,489

 
4.52
%
 
November 2024
 
4,472

 
4,547

 Crockett Square
 
Interest only

 
4.47
%
 
December 2024
 
6,338

 
6,338

 Pierpont Centre
 
 Interest only

 
4.15
%
 
February 2025
 
8,113

 
8,113

 Alex City Marketplace
 
 Interest only

 
3.95
%
 
April 2025
 
5,750

 
5,750

 Butler Square
 
 Interest only

 
3.90
%
 
May 2025
 
5,640

 
5,640

 Brook Run Shopping Center
 
 Interest only

 
4.08
%
 
June 2025
 
10,950

 
10,950

 Beaver Ruin Village I and II
 
 Interest only

 
4.73
%
 
July 2025
 
9,400

 
9,400

 Sunshine Shopping Plaza
 
 Interest only

 
4.57
%
 
August 2025
 
5,900

 
5,900

 Barnett Portfolio
 
 Interest only

 
4.30
%
 
September 2025
 
8,770

 
8,770

 Fort Howard Shopping Center
 
 Interest only

 
4.57
%
 
October 2025
 
7,100

 
7,100

 Conyers Crossing
 
 Interest only

 
4.67
%
 
October 2025
 
5,960

 
5,960

 Grove Park Shopping Center
 
 Interest only

 
4.52
%
 
October 2025
 
3,800

 
3,800

 Parkway Plaza
 
 Interest only

 
4.57
%
 
October 2025
 
3,500

 
3,500

 Winslow Plaza
 
Interest only

 
4.82
%
 
December 2025
 
4,620

 
4,620

 JANAF BJ's
 
$
29,964

 
4.95
%
 
January 2026
 
5,065

 
—

 Chesapeake Square
 
$
23,857

 
4.70
%
 
August 2026
 
4,434

 
4,507

 Berkley/Sangaree/Tri-County
 
Interest only

 
4.78
%
 
December 2026
 
9,400

 
9,400

 Riverbridge
 
Interest only

 
4.48
%
 
December 2026
 
4,000

 
4,000

 Franklin
 
Interest only

 
4.93
%
 
January 2027
 
8,516

 
8,516

Total Principal Balance (1)
 
 
 
 
 
 
 
369,612

 
313,778

Unamortized debt issuance cost (1)
 
 
 
 
 
 
 
(5,144
)
 
(5,656
)
Total Loans Payable, including Assets Held for Sale
 
 
 
 
 
 
 
364,468

 
308,122

Less loans payable on assets held for sale, net loan amortization costs
 
 
 
 
4,351

 
747

Total Loans Payable, net
 
 
 
 
 
 
 
$
360,117

 
$
307,375

(1) Includes loans payable on assets held for sale.
(2) This loan is collateralized by LaGrange Marketplace, Ridgeland and Georgetown.
(3) This loan is collateralized by Ladson Crossing, Lake Greenwood Crossing and South Park.

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


Debt Summary as of December 31, 2018 (continued)

Total Debt
$ in 000s
Scheduled principal repayments and maturities by year
 
Amount
 
% Total Principal Payments and Maturities
December 31, 2019
 
88,036

 
23.82
%
December 31, 2020
 
23,806

 
6.44
%
December 31, 2021
 
10,628

 
2.88
%
December 31, 2022
 
8,152

 
2.21
%
December 31, 2023
 
84,982

 
22.99
%
Thereafter
 
154,008

 
41.66
%
Total principal repayments and maturities
 
$
369,612

 
100.00
%
 
 
 
 
 




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


Property Summary as of December 31, 2018
Property
 
Location
 
Number of
Tenants (1)
Total Leasable
Square Feet
Percentage
Leased (1)
Percentage Occupied
Total SF Occupied
Annualized
Base Rent (2)
Annualized Base Rent per Occupied Sq. Foot
Alex City Marketplace
 
 Alexander City, AL
 
19

147,791

100.0
%
100.0
%
147,791

$
1,156,565

$
7.83

Amscot Building (3)
 
 Tampa, FL
 
1

2,500

100.0
%
100.0
%
2,500

115,849

46.34

Beaver Ruin Village
 
 Lilburn, GA
 
27

74,038

84.7
%
84.7
%
62,701

1,091,836

17.41

Beaver Ruin Village II
 
 Lilburn, GA
 
4

34,925

100.0
%
100.0
%
34,925

448,130

12.83

Berkley (4)
 
 Norfolk, VA
 
—

—

—
%
—
%
—

—

—

Berkley Shopping Center
 
 Norfolk, VA
 
9

47,945

39.5
%
39.5
%
18,940

232,030

12.25

Brook Run Shopping Center
 
 Richmond, VA
 
19

147,738

92.1
%
92.1
%
136,102

1,498,354

11.01

Brook Run Properties (4)
 
 Richmond, VA
 
—

—

—
%
—
%
—

—

—

Bryan Station
 
 Lexington, KY
 
10

54,397

100.0
%
100.0
%
54,397

596,441

10.96

Butler Square
 
 Mauldin, SC
 
15

82,400

96.5
%
96.5
%
79,550

848,760

10.67

Cardinal Plaza
 
 Henderson, NC
 
7

50,000

94.0
%
94.0
%
47,000

449,600

9.57

Chesapeake Square
 
 Onley, VA
 
12

108,982

96.5
%
96.5
%
105,182

792,110

7.53

Clover Plaza
 
 Clover, SC
 
10

45,575

100.0
%
100.0
%
45,575

363,137

7.97

Columbia Fire Station
 
 Columbia, SC
 
3

21,273

79.0
%
79.0
%
16,800

449,884

26.78

Courtland Commons (4)
 
 Courtland, VA
 
—

—

—
%
—
%
—

—

—

Conyers Crossing
 
 Conyers, GA
 
12

170,475

98.3
%
98.3
%
167,575

870,171

5.19

Crockett Square
 
 Morristown, TN
 
4

107,122

100.0
%
100.0
%
107,122

920,322

8.59

Cypress Shopping Center
 
 Boiling Springs, SC
 
15

80,435

37.8
%
37.8
%
30,375

407,147

13.40

Darien Shopping Center
 
 Darien, GA
 
1

26,001

100.0
%
100.0
%
26,001

156,006

6.00

Devine Street
 
 Columbia, SC
 
2

38,464

100.0
%
100.0
%
38,464

318,500

8.28

Edenton Commons (4)
 
 Edenton, NC
 
—

—

—
%
—
%
—

—

—

Folly Road
 
 Charleston, SC
 
5

47,794

100.0
%
100.0
%
47,794

725,840

15.19

Forrest Gallery
 
 Tullahoma, TN
 
24

214,451

93.0
%
93.0
%
199,504

1,348,619

6.76

Fort Howard Shopping Center
 
 Rincon, GA
 
18

113,652

93.6
%
93.6
%
106,320

879,340

8.27

Freeway Junction
 
 Stockbridge, GA
 
14

156,834

94.6
%
94.6
%
148,424

1,084,566

7.31

Franklin Village
 
 Kittanning, PA
 
29

151,821

100.0
%
100.0
%
151,821

1,254,274

8.26

Franklinton Square
 
 Franklinton, NC
 
13

65,366

90.7
%
90.7
%
59,300

542,253

9.14

Georgetown
 
 Georgetown, SC
 
2

29,572

100.0
%
100.0
%
29,572

267,215

9.04

Graystone Crossing
 
 Tega Cay, SC
 
11

21,997

100.0
%
92.3
%
20,297

545,353

26.87

Grove Park
 
 Orangeburg, SC
 
15

106,557

87.5
%
87.5
%
93,265

737,810

7.91

Harbor Pointe (4)
 
 Grove, OK
 
—

—

—
%
—
%
—

—

—

Harrodsburg Marketplace
 
 Harrodsburg, KY
 
8

60,048

91.0
%
91.0
%
54,648

413,640

7.57

JANAF (6)
 
Norfolk, VA
 
117

810,137

85.9
%
84.5
%
684,533

7,819,908

11.42

Jenks Plaza
 
 Jenks, OK
 
5

7,800

100.0
%
100.0
%
7,800

165,820

21.26

Laburnum Square
 
 Richmond, VA
 
21

109,405

100.0
%
100.0
%
109,405

994,847

9.09

Ladson Crossing
 
 Ladson, SC
 
15

52,607

100.0
%
100.0
%
52,607

491,572

9.34

LaGrange Marketplace
 
 LaGrange, GA
 
13

76,594

95.3
%
95.3
%
72,994

417,150

5.71

Lake Greenwood Crossing
 
 Greenwood, SC
 
5

47,546

85.0
%
85.0
%
40,418

316,490

7.83

Lake Murray
 
 Lexington, SC
 
5

39,218

100.0
%
100.0
%
39,218

256,162

6.53

Litchfield Market Village
 
 Pawleys Island, SC
 
18

86,740

86.6
%
86.6
%
75,103

911,274

12.13

Lumber River Village
 
 Lumberton, NC
 
11

66,781

98.2
%
98.2
%
65,581

446,203

6.80

Moncks Corner
 
 Moncks Corner, SC
 
1

26,800

100.0
%
100.0
%
26,800

323,451

12.07

Nashville Commons
 
 Nashville, NC
 
12

56,100

99.9
%
99.9
%
56,050

602,724

10.75

New Market Crossing
 
 Mt. Airy, NC
 
13

117,076

96.0
%
96.0
%
112,368

976,833

8.69

Parkway Plaza
 
 Brunswick, GA
 
4

52,365

81.7
%
81.7
%
42,785

346,979

8.11

Perimeter Square
 
 Tulsa, OK
 
9

58,277

66.6
%
66.6
%
38,815

470,601

12.12

Pierpont Centre
 
 Morgantown, WV
 
17

122,259

90.9
%
89.3
%
109,203

1,294,704

11.86

Port Crossing
 
 Harrisonburg, VA
 
9

65,365

97.9
%
97.9
%
64,000

813,644

12.71

Ridgeland
 
 Ridgeland, SC
 
1

20,029

100.0
%
100.0
%
20,029

140,203

7.00

Riverbridge Shopping Center
 
 Carrollton, GA
 
11

91,188

98.5
%
98.5
%
89,788

688,391

7.67

Riversedge North (5)
 
 Virginia Beach, VA
 
—

—

—
%
—
%
—

—

—

Rivergate Shopping Center
 
 Macon, GA
 
31

201,680

97.5
%
97.5
%
196,719

2,814,797

14.31

Sangaree Plaza
 
 Summerville, SC
 
9

66,948

100.0
%
100.0
%
66,948

648,335

9.68



Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
12


Portfolio Summary as of December 31, 2018, (continued)
Property
 
Location
 
Number of
Tenants (1)
Total Leasable
Square Feet
Percentage
Leased (1)
Occupied Square Foot Percentage
Total SF Occupied
Annualized
Base Rent (2)
Annualized Base Rent per Occupied Sq. Foot
Shoppes at Myrtle Park
 
 Bluffton, SC
 
12

56,601

76.3
%
76.3
%
43,204

$
489,327

$
11.33

Shoppes at TJ Maxx
 
 Richmond, VA
 
16

93,624

95.9
%
95.9
%
89,815

1,092,673

12.17

South Lake
 
 Lexington, SC
 
6

44,318

14.2
%
14.2
%
6,300

89,793

14.25

South Park
 
 Mullins, SC
 
3

60,734

83.2
%
83.2
%
50,509

351,189

6.95

South Square
 
 Lancaster, SC
 
5

44,350

74.2
%
74.2
%
32,900

272,005

8.27

St. George Plaza
 
 St. George, SC
 
6

59,279

86.5
%
86.5
%
51,278

332,439

6.48

St. Matthews
 
 St. Matthews, SC
 
5

29,015

87.2
%
87.2
%
25,314

185,508

7.33

Sunshine Plaza
 
 Lehigh Acres, FL
 
21

111,189

96.6
%
96.6
%
107,396

987,132

9.19

Surrey Plaza
 
 Hawkinsville, GA
 
2

42,680

78.5
%
78.5
%
33,500

211,050

6.30

Tampa Festival
 
 Tampa, FL
 
17

137,987

63.2
%
63.2
%
87,266

910,413

10.43

Tri-County Plaza
 
 Royston, GA
 
6

67,577

89.2
%
89.2
%
60,277

399,073

6.62

Tulls Creek (4)
 
 Moyock, NC
 
—

—

—
%
—
%
—

—

—

Twin City Commons
 
 Batesburg-Leesville, SC
 
5

47,680

100.0
%
100.0
%
47,680

434,093

9.10

Village of Martinsville
 
 Martinsville, VA
 
18

297,950

96.1
%
96.1
%
286,431

2,224,821

7.77

Walnut Hill Plaza
 
 Petersburg, VA
 
6

87,239

34.3
%
34.3
%
29,957

268,048

8.95

Waterway Plaza
 
 Little River, SC
 
10

49,750

100.0
%
100.0
%
49,750

485,140

9.75

Westland Square
 
 West Columbia, SC
 
10

62,735

80.8
%
80.8
%
50,690

471,206

9.30

Winslow Plaza
 
 Sicklerville, NJ
 
16

40,695

94.1
%
94.1
%
38,295

589,702

15.40

Total Portfolio
 
 
 
800

5,716,471

89.4
%
89.1
%
5,093,671

$
49,247,452

$
9.67

(1)
Reflects leases executed through January 9, 2019 that commence subsequent to the end of the current period.
(2)
Annualized based rent per occupied square foot, assumes base rent as of the end of the current reporting period, excludes the impact of tenant concessions and rent abatements.
(3)
We own the Amscot building, but we do not own the land underneath the buildings and instead lease the land pursuant to ground leases. As discussed in the financial statements, these ground leases require us to make annual rental payments and contain escalation clauses and renewal options.
(4)
This information is not available because the property is undeveloped.
(5)
This property is our corporate headquarters that we 100% occupy.
(6)
Square footage is net of management office the Company occupies on premise and buildings on ground lease which the Company only leases the land.

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
13


Top Ten Tenants by Annualized Base Rent as of December 31, 2018

Total Tenants : 800
Tenants
 
Annualized Base Rent
($ in 000s)
 
% of Total Annualized Base Rent
 
Total Occupied Square Feet
 
Percent Total Leasable Square Foot
 
Base Rent Per Occupied Square Foot
1.
BI-LO (1)
 
$
2,717

 
5.52
%
 
380,675

 
6.66
%
 
$
7.14

2.
Food Lion
 
2,651

 
5.38
%
 
325,576

 
5.70
%
 
8.14

3.
Piggly Wiggly
 
1,474

 
2.99
%
 
191,363

 
3.35
%
 
7.70

4.
Kroger (2)
 
1,324

 
2.69
%
 
186,064

 
3.25
%
 
7.12

5.
Winn Dixie (1)
 
863

 
1.75
%
 
133,575

 
2.34
%
 
6.46

6.
Hobby Lobby
 
675

 
1.37
%
 
114,298

 
2.00
%
 
5.91

7.
Dollar Tree
 
660

 
1.34
%
 
87,133

 
1.52
%
 
7.57

8.
BJ's Wholesale Club
 
594

 
1.21
%
 
147,400

 
2.58
%
 
4.03

9.
Harris Teeter (2)
 
578

 
1.17
%
 
39,946

 
0.70
%
 
14.47

10.
TJ Maxx
 
574

 
1.17
%
 
69,783

 
1.22
%
 
8.23

 
 
 
$
12,110

 
24.59
%
 
1,675,813

 
29.32
%
 
$
7.23


(1) These tenants are both owned by Southeastern Grocers.
(2) These tenants are both owned by The Kroger Company.
















Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
14


Leasing Summary as of December 31, 2018

Total Leasable Area:
5,716,471 square feet
Total Square Footage Occupied:
5,093,671 square feet
Occupancy Rate:
89.1%
Lease Expiration Schedule
Lease Expiration Period
 
Number of Expiring Leases
 
Total Expiring Square Footage
 
% of Total Expiring Square Footage
 
% of Total Occupied Square Footage Expiring
 
Expiring Annualized Base Rent (in 000s)
 
% of Total Annualized Base Rent
 
Expiring Base Rent Per Occupied
Square Foot
Available
 
—

 
622,800

 
10.89
%
 
—
%
 
$
—

 
—
%
 
$
—

Month-to-Month
 
16

 
33,491

 
0.59
%
 
0.66
%
 
433

 
0.88
%
 
12.93

2019
 
133

 
370,966

 
6.49
%
 
7.28
%
 
4,642

 
9.43
%
 
12.51

2020
 
170

 
1,238,042

 
21.66
%
 
24.31
%
 
10,234

 
20.78
%
 
8.27

2021
 
138

 
702,359

 
12.29
%
 
13.79
%
 
7,060

 
14.33
%
 
10.05

2022
 
112

 
462,647

 
8.09
%
 
9.08
%
 
5,343

 
10.84
%
 
11.55

2023
 
96

 
659,199

 
11.53
%
 
12.94
%
 
6,405

 
13.01
%
 
9.72

2024
 
42

 
418,792

 
7.33
%
 
8.22
%
 
3,553

 
7.21
%
 
8.48

2025
 
20

 
312,103

 
5.46
%
 
6.13
%
 
2,925

 
5.94
%
 
9.37

2026
 
23

 
304,186

 
5.32
%
 
5.97
%
 
2,713

 
5.51
%
 
8.92

2027
 
12

 
83,850

 
1.47
%
 
1.65
%
 
1,023

 
2.08
%
 
12.20

2028 and thereafter
 
38

 
508,036

 
8.88
%
 
9.97
%
 
4,916

 
9.99
%
 
9.68

Total
 
800

 
5,716,471

 
100.00
%
 
100.00
%
 
$
49,247

 
100.00
%
 
$
9.67

















Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
15



Leasing Summary as of December 31, 2018, (continued)

Anchor Lease Expiration Schedule (1) 
 
No Option
 
Option
Lease Expiration Twelve Month Periods Ending December 31,
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
 
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
Available
—

140,564

$
—

—
%
$
—

 
—

45,600

$
—

—
%
$
—

Month-to-Month
—

—

—

—
%
—

 
—

—

—

—
%
—

2019
1

21,213

301

38.89
%
14.18

 
1

37,500

296

1.50
%
7.88

2020
1

20,858

55

7.11
%
2.61

 
17

778,344

4,509

22.79
%
5.79

2021
2

43,427

88

11.37
%
2.03

 
10

290,769

2,361

11.94
%
8.12

2022
—

—

—

—
%
—

 
4

148,663

1,149

5.81
%
7.73

2023
1

22,032

215

27.78
%
9.75

 
13

408,495

3,059

15.46
%
7.49

2024
1

32,000

115

14.85
%
3.59

 
6

252,259

1,674

8.46
%
6.64

2025
—

—

—

—
%
—

 
6

256,248

2,122

10.73
%
8.28

2026
—

—

—

—
%
—

 
6

221,755

1,637

8.28
%
7.38

2027
—

—

—

—
%
—

 
1

24,945

212

1.07
%
8.50

2028+
—

—

—

—
%
—

 
12

409,055

2,763

13.96
%
6.76

Total
6

280,094

774

100.00
%
$
5.54

 
76

2,873,633

19,782

100.00
%
$
7.00


(1) Anchors defined as leases occupying 20,000 square feet or more.

Non-anchor Lease Expiration Schedule
 
No Option
 
Option
Lease Expiration Twelve Month Periods Ending December 31,
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
 
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
Available
—

436,636

$
—

—
%
$
—

 
—

—

$
—

—
%
$
—

Month-to-Month
12

23,901

323

2.75
%
13.54

 
4

9,590

110

0.65
%
11.43

2019
77

154,087

1,951

16.60
%
12.67

 
54

158,166

2,094

12.36
%
13.24

2020
100

259,650

3,303

28.11
%
12.72

 
52

179,190

2,367

13.97
%
13.21

2021
67

156,940

1,911

16.26
%
12.18

 
59

211,223

2,700

15.94
%
12.78

2022
39

81,254

1,194

10.16
%
14.70

 
69

232,730

3,000

17.71
%
12.89

2023
38

81,162

1,050

8.93
%
12.94

 
44

147,510

2,081

12.29
%
14.11

2024
18

36,732

516

4.39
%
14.03

 
17

97,801

1,248

7.37
%
13.72

2025
8

19,841

299

2.54
%
15.09

 
6

36,014

504

2.98
%
14.00

2026
6

14,681

263

2.24
%
17.84

 
11

67,750

813

4.80
%
12.01

2027
—

—

—

—
%
—

 
11

58,905

811

4.79
%
13.77

2028+
13

50,433

942

8.02
%
18.67

 
13

48,548

1,211

7.14
%
24.94

Total
378

1,315,317

11,752

100.00
%
$
13.37

 
340

1,247,427

16,939

100.00
%
$
13.58










Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
16





Leasing Summary as of December 31, 2018, (continued)

Leasing Renewals, New Leases and Expirations
 
Three Months Ended December 31,
 
Twelve months Ended December 31,
 
2018
 
2017 (2)
 
2018
 
2017 (2)
Renewals(1):
 
 
 
 
 
 
 
Leases renewed with rate increase (sq feet)
114,413

 
63,068

 
540,896

 
282,335

Leases renewed with rate decrease (sq feet)
4,215

 
—

 
43,935

 
70,049

Leases renewed with no rate change (sq feet)
12,972

 
14,430

 
109,139

 
218,077

Total leases renewed (sq feet)
131,600

 
77,498

 
693,970

 
570,461

 
 
 
 
 
 
 
 
Leases renewed with rate increase (count)
22

 
18

 
93

 
78

Leases renewed with rate decrease (count)
2

 
—

 
8

 
9

Leases renewed with no rate change (count)
5

 
4

 
18

 
25

Total leases renewed (count)
29

 
22

 
119

 
112

 
 
 
 
 
 
 
 
Option exercised (count)
8

 
16

 
31

 
60

 
 
 
 
 
 
 
 
Weighted average on rate increases (per sq foot)
$
0.82

 
$
0.75

 
$
0.93

 
$
0.92

Weighted average on rate decreases (per sq foot)
$
(5.80
)
 
$
—

 
$
(2.23
)
 
$
(1.18
)
Weighted average rate (per sq foot)
$
0.53

 
$
0.61

 
$
0.52

 
$
0.31

Weighted average change over prior rates
4.83
%
 
4.47
%
 
6.05
%
 
3.35
%
 
 
 
 
 
 
 
 
New Leases (1):
 
 
 
 
 
 
 
New leases (sq feet)
56,579

 
41,906

 
290,986

 
160,341

New leases (count)
8

 
11

 
55

 
55

Weighted average rate (per sq foot)
$
10.38

 
$
10.37

 
$
9.06

 
$
11.95

 
 
 
 
 
 
 
 
Gross Leasable Area ("GLA") expiring during the next 12 months, including month-to-month
7.08
%
 
9.39
%
 
7.08
%
 
9.39
%
(1)
Lease data presented for the three and twelve months ended December 31, 2018 and 2017 is based on average rate per square foot over the renewed or new lease term.
(2)
2017 lease data adjusted to reflect average rate per square foot over the renewed or new lease term for consistency with 2018 presentation.



Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
17


Definitions
Funds from Operations (FFO): an alternative measure of a REIT's 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 December 2018). 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), plus impairment of goodwill and real estate related long-lived assets 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.
Adjusted FFO (AFFO): 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, acquisition costs and capital raise costs. Management uses AFFO, which is a non-GAAP financial measure, to exclude such items. Management believes that reporting 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. The Company also presents Pro Forma AFFO which shows the impact of certain activities assuming they occurred at the beginning of the year.
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 interests, depreciation and amortization and impairment of goodwill, long-lived assets and notes receivable, from income from continuing operations. The Company also presents Adjusted EBITDA which excludes affecting the comparability of the periods presented, including but not limited to, costs associated with acquisitions and capital related activities.

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
18


Net Operating Income (NOI): The Company 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, impairment of goodwill, impairment of long-lived assets, 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
19


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