Wheeler Real Estate Investment Trust, Inc. Announces 2013 First Quarter Financial Results

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Wheeler Real Estate Investment Trust, Inc. Announces 2013 First Quarter Financial Results

VIRGINIA BEACH, Va.--(BUSINESS WIRE)-- Wheeler Real Estate Investment Trust, Inc. (Nasdaq: WHLR) ("Wheeler" or the "Company"), today reported financial results for the three month period ended March 31, 2013.

2013 First Quarter Summary of Activities

  • Property portfolio occupancy rate of 94.3%
  • The Company signed a contract to purchase Bixby Commons, a 75,000 square foot free-standing retail property located in Bixby, Oklahoma for the purchase price of approximately $10.6 million. Principle tenant is Associated Wholesale Grocers, Inc., and is secured under an initial 20-year lease term.
  • For the three month period, the Company's Board of Directors declared monthly cash dividends of approximately $0.035 per a share.

2013 First Quarter Financial Highlights

  • Wheeler reported Funds from Operations ("FFO") for the three month period ended March 31, 2013 of $168,794, or $0.05 per basic and diluted share. Same store total FFO was negative $261,103, primary due to the added corporate general and administrative expenses related to operating as a publicly traded company. While new store total FFO was $429,897 for the period.
  • Total revenue for the first quarter of 2013 was $1.6 million. Same store revenue was $497,772 for the period ended March 31, 2013 and new store revenue was approximately $1.1 million.
  • Property net operating income ("NOI") was $1.3 million for the quarter ended March 31, 2013. Same store NOI was approximately $397,638, while new store NOI was approximately $919,576.
  • Net loss attributable to Wheeler REIT for common stockholders for the period ended March 31, 2013 was $433,682, or $0.13 per basic and diluted share.
  • Total operating expense was $1.5 million for the first quarter of 2013. New stores operating expenses were $824,391, while same store operating expenses were $723,235 for the period ended March 31, 2013.

Additional "same store" and "new store" information is included in the accompanying tables.

FFO is a non-GAAP financial measure within the meaning of the rules of the Securities and Exchange Commission. See the discussion included in this press release for information regarding non-GAAP financial measures. A reconciliation of non-GAAP financial measures is included in the accompanying financial tables.

Portfolio Summary

            
Property   Location   Year Built/Renovated   GLA   % Leased
Amscot Building   Tampa, FL   2004   2,500   100%
Harps Food Store   Grove, OK   2012   31,500   100%
Lumber River Village   Lumberton, NC   1985/1997-98/2004   66,781   100%
Monarch Bank   Virginia Beach, VA   2002   3,620   100%
Perimeter Square   Tulsa, OK   1982-1983   58,277   95.7%
Riversedge North   Virginia Beach, VA   2007   10,550   100%
Shoppes at TJ Maxx   Richmond, VA   1982/1999   93,552   90.6%
Surrey Plaza   Hawkinsville, GA   1993   42,680   100%
The Shoppes at Eagle Harbor   Carrollton, VA   2009   23,303   100%
Twin City Crossing   Batesburg-Leesville, SC   1998/2002   47,680   100%
Walnut Hill Plaza   Petersburg, VA   1959/2006/2008   89,907   82.7%
Totals   470,350   94.3%
 

2013 Dividend Distribution History

            
Announce Date   Record Date   Pay Date   Amount   Frequency
4/16/2013   4/30/2013   5/31/2013   0.035   Monthly
3/15/2013   3/31/2013   4/30/2013   0.035   Monthly
2/19/2013   3/1/2013   3/31/2013   0.035   Monthly
1/16/2013   2/1/2013   2/28/2013   0.035   Monthly
Total Amount Paid to Shareholders:   $613,989
 

Acquisition Activity Subsequent to First Quarter 2013

Currently, the Company has entered into assignments of purchase and sale agreements with Wheeler Interest, LLC to assume the contracts of four third-party retail focused properties. Additionally, the Company has entered into purchase and sale agreements to acquire a third-party retailed focused property and an adjoining parcel of vacant land.

The Company has also entered into purchase contacts with five related-party sellers to acquire an additional three shopping centers, one strip center and one free-standing retail building.

Additional information regarding these properties will be available upon filing the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2013 via the U.S. Securities and Exchange Commission website (www.sec.gov).

About Wheeler Real Estate Investment Trust, Inc.

Headquartered in Virginia Beach, VA, the Company specializes in owning, acquiring, financing, developing, renovating, leasing and managing income producing assets, such as community centers, neighborhood centers, strip centers and free-standing retail properties. Wheeler's portfolio contains strategically selected properties, primarily leased by nationally and regionally recognized retailers of consumer goods and located in the Mid-Atlantic, Southeast and Southwest regions of the United States.

Additional information about Wheeler and its properties can be found at its corporate website: www.whlr.us.

Financial Information

Additional information about Wheeler, including a copy of Wheeler's Quarterly Report on Form 10-Q which includes the Company's consolidated financial statements and Management's Discussion & Analysis, 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.

Forward-Looking Statement

This press release contains forward-looking statements, including discussion and analysis of our financial condition, anticipated capital expenditures required to complete projects, amounts of anticipated cash distributions to the Company's shareholders in the future and other matters. These forward-looking statements are not historical facts but are the intent, belief or current expectations of management based on its knowledge and understanding of our business and industry. Forward-looking statements are typically identified by the use of terms such as "may," "will," "should," "potential," "predicts," "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or the negative of such terms and variations of these words and similar expressions. 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.

Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. You are cautioned to not place undue reliance on forward-looking statements, which reflect management's view only as of the date of this press release. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Factors that could cause actual results to differ materially from any forward-looking statements made in this press release include:

  • the imposition of federal taxes if the Company fails to qualify as a REIT in any taxable year or opts to forego an opportunity to ensure REIT status;
  • uncertainties related to the national economy, the real estate industry in general and in our specific markets;
  • legislative or regulatory changes, including changes to laws governing REITs;
  • adverse economic or real estate developments in Virginia, Florida, Georgia, South Carolina, North Carolina or Oklahoma;
  • increases in interest rates and operating costs;
  • inability to obtain necessary outside financing;
  • litigation risks;
  • lease-up risks;
  • inability to obtain new tenants upon the expiration of existing leases;
  • inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws; and
  • the need to fund tenant improvements or other capital expenditures out of operating cash flow.
 
Wheeler Real Estate Investment Trust
Condensed Consolidated Statements of Income

(in thousands, except for share data)

 
    
Three Months Ended March 31,
 2013     2012 
 
REVENUE:
Rental revenues$1,393,032$396,732
Other revenues 224,884  133,111 
 
Total Revenue 1,617,916  529,843 
 
OPERATING EXPENSES:
Property operations300,702115,177
Depreciation and amortization648,132186,611
Provision for credit losses15,000-
Corporate general & administrative 583,792  170,302 
 
Total Operating Expenses 1,547,626  472,090 
 
Operating Income (Loss)70,29057,753
 
Interest expense (549,628) (197,904)
 
Net Loss(479,338)(140,151)
 
Less: Net loss attributable to noncontrolling interests (45,656) - 
 
Net Loss Attributable to Wheeler REIT$(433,682)$(140,151)
 
 
Loss per share:
Basic and Diluted$(0.13)
 
Weighted-average number of shares:
Basic and Diluted 3,301,502 
 
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Wheeler Real Estate Investment Trust
Consolidated Balance Sheets

(in thousands, except for share data)

 
 
March 31,   December 31,
 2013  2012 
(unaudited)
ASSETS:
Investment properties, at cost$46,748,018$46,637,221
Less accumulated depreciation and amortization 3,612,525  3,291,556 
43,135,49343,345,665
 
Cash and cash equivalents1,053,4802,053,192
Rents and other tenant receivables, net815,658761,114
Deferred costs and other assets 6,360,737  6,527,906 
 
Total Assets$51,365,368 $52,687,877 
 
LIABILITIES:
Mortgages and other indebtedness$31,821,342$31,843,503
Below market lease intangible, net3,523,8693,673,019
Accounts payable, accrued expenses and other liabilities808,792938,896
 
Total Liabilities 36,154,003  36,455,418 
 
Commitments and contingencies--
 
EQUITY:
Convertible preferred stock (no par value, 500,000 shares authorized,
no shares issued and outstanding, respectively)--
Common stock ($0.01 par value, 15,000,000 shares authorized,
3,301,502 and 3,301,502 shares issued and outstanding, respectively)33,01533,015
Additional paid-in capital14,097,45314,097,453
Accumulated deficit (6,418,537) (5,443,099)
Total Shareholders' Equity7,711,9318,687,369
 
Noncontrolling interests 7,499,434