Wheeler Real Estate Investment Trust, Inc. Announces 2012 Year End Financial Results
VIRGINIA BEACH, Va.--(BUSINESS WIRE)-- Wheeler Real Estate Investment Trust, Inc. (Nasdaq: WHLR) ("Wheeler" or the "Company"), a real estate investment trust ("REIT") specializing 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, today reported financial results for the year ended December 31, 2012.
Significant Events for the Year Ended December 31, 2012
In November 2012, the Company completed its Initial Public Offering ("IPO"), generating approximately $13.4 million in net proceeds.
Since the completion of its IPO, Wheeler has purchased two grocery-anchored shopping centers and a free-standing retail property. The aggregate total purchase price of these three properties was approximately $11.4 million.
Currently, the Company is under contract to purchase an additional free-standing retail property located in Bixby, Oklahoma for a purchase price of $10.6 million.
The Company has declared a monthly dividend at an initial annual distribution of $0.42 per share, equal to approximately $0.035 per month.
Jon S. Wheeler, Chairman and Chief Executive Officer, commented, "We completed our IPO last November and have since acquired three additional assets, all of which fit the Company's acquisition criteria. We believe that as a public company, we have been provided an opportunity to capitalize on the steady pipeline of 'necessity-shopping' based properties in secondary and tertiary markets that are available for purchase. In the year ahead, we expect to continue to pursue acquisitions that will maximize the Company's return and create long-term value for shareholders."
2012 Financial Highlights
Wheeler reported Funds from Operations ("FFO") for the year ended December 31, 2012 of negative $383,506, or $0.12 per basic and diluted share. Same store total FFO was negative $489,785, as a result of an increase in corporate general and administrative expenses of $878,857, primarily related to the audit, operational and organizational costs that were incurred during the Company's IPO process. New store total FFO was $106,279, as result of the three acquisitions that occurred as part of the REIT formation transactions in November 2012 and the three acquisitions completed in December 2012.
Property net operating income ("NOI") was $1.9 million for the year ended December 31, 2012, consisting of approximately $1.6 million in same store NOI and approximately $332,000 of new store NOI. Same store property NOI benefited from an additional $83,183 received in base rental income and tenant reimbursements over the prior year.
Same store revenue was $2.0 million for the year ended December 31, 2012. New store revenue was $425,518 which relates to the three properties that the Company acquired as part of the REIT formation transactions in November 2012 and the three properties acquired during December 2012, as noted above.
Net loss attributable to common stockholders for the year ended December 31, 2012 was $1.2 million, or $0.35 per basic and diluted share.
Total other operating expense, which includes depreciation and amortization, provision for credit losses and general and administrative expenses, was $2.2 million for the year ended December 31, 2012. New stores total operating expenses were $233,570, while same store operating expenses increased to $1.9 million, primarily due to the $878,857 increase in corporate general and administrative expenses related to Wheeler's REIT formation process.
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.
IPO and Acquisition Activity
As mentioned above, in November 2012, Wheeler closed its IPO of 3,016,045 shares of common stock at a price of $5.25 per share. The Company's shares were listed on The NASDAQ Capital Market and commenced trading on November 19, 2012. The Company realized approximately $13.4 million in net proceeds from the offering, after the deduction of underwriting fees and related costs.
Since completion of the IPO, the Company has acquired 2 grocery-anchored shopping centers and a free-standing retail property. The combined purchase price of these properties was approximately $11.4 million and was paid for using a combination of proceeds from the IPO, debt financing and the issuance of operating partnership units.
Currently, the Company is under contract to purchase for $10.6 million a free-standing retail property. The property is a 75,000 sq. foot supermarket located in Bixby, Oklahoma.
Harps Food Store
Lumber River Village
Virginia Beach, VA
Virginia Beach, VA
Shoppes at TJ Maxx
The Shoppes at Eagle Harbor
Twin City Crossing
Walnut Hill Plaza
The above table does not include the pending acquisition of Bixby Commons which is 100% leased and will add approximately 75,000 sq. feet of GLA to Wheeler's portfolio.
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.
Additional information about Wheeler, including a copy of Wheeler's Annual Report on Form 10-K which includes the Company's audited 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.
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;
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)
Years Ended December 31,
Percentage of sales rent
Real estate taxes
Repairs and maintenance
Depreciation and amortization
Provision for credit losses
Corporate general & administrative
Total Operating Expenses
Operating Income (Loss)
Less: Net loss attributable to noncontrolling interests
Net Loss Attributable to Wheeler REIT
Loss per share:
Weighted-average number of shares:
Wheeler Real Estate Investment Trust
Consolidated Balance Sheets
(in thousands, except for share data)
Investment properties, at cost
Less accumulated depreciation and amortization
Cash and cash equivalents
Rents and other tenant receivables, net
Rents and other tenant receivables due from related parties, net
Deferred costs and other assets
Mortgages and other indebtedness
Below market lease intangible, net
Accounts payable, accrued expenses and other liabilities
Due to related parties
Commitments and contingencies
Convertible preferred stock (no par value, 500,000 shares authorized,