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

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 operations

300,702

115,177

Depreciation and amortization

648,132

186,611

Provision for credit losses

15,000

-

Corporate general & administrative

583,792

170,302

Total Operating Expenses

1,547,626

472,090

Operating Income (Loss)

70,290

57,753

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

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

43,135,493

43,345,665

Cash and cash equivalents

1,053,480

2,053,192

Rents and other tenant receivables, net

815,658

761,114

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, net

3,523,869

3,673,019

Accounts payable, accrued expenses and other liabilities

808,792

938,896

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)

33,015

33,015

Additional paid-in capital

14,097,453

14,097,453

Accumulated deficit

(6,418,537

)

(5,443,099

)

Total Shareholders' Equity

7,711,931

8,687,369

Noncontrolling interests

7,499,434