Exhibit 99.2
Supplemental Operating and Financial Data
for the three months ended December 31, 2015
| 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 | |
| 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 acquiring and managing 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. Wheeler’s common stock, Series B convertible preferred stock and common stock warrants trade publicly on the Nasdaq under the symbols “WHLR”, “WHLRP” 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 | |
| Email: info@whlr.us | |
| Website: www.whlr.us | |
| Executive Management | |
| Jon S. Wheeler - Chairman & CEO | |
| Wilkes J. Graham - CFO | |
| Steven M. Belote - COO | |
| Robin A. Hanisch - Secretary | |
| David R. Kelly - Senior VP/Acquisitions | |
| Jeffrey B. Parker - Director of Leasing | |
| Board of Directors | |
| Jon S. Wheeler, Chairman | William W. King |
| Stewart J. Brown | Carl B. McGowan, Jr. |
| Kurt R. Harrington | Ann L. McKinney |
| David Kelly | Jeffrey M. Zwerdling |
| John McAuliffe | |
| Investor Relations Contact | Transfer Agent and Registrar |
The Equity Group Inc. 800 Third Avenue, 36th Floor New York, NY 10022 Adam Prior, Senior Vice President Phone: (212) 836-9606, aprior@equityny.com Terry Downs, Associate Phone: (212) 836-9615, tdowns@equityny.com | 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, 2015 (Unaudited)
| Financial Results | |||
| Net loss attributable to Wheeler REIT common stockholders | $ | (2,686,430 | ) |
| Net loss per basic and diluted share | $ | (0.04 | ) |
Funds from operations available to common shareholders and Operating Partnership (OP) unitholders (FFO) (1) | $ | 536,849 | |
| FFO per common share and OP unit | $ | 0.01 | |
| Adjusted FFO (AFFO) (1) | $ | 1,864,139 | |
| AFFO per common share and OP unit | $ | 0.03 | |
| Pro forma AFFO per common share and OP unit (2) | $ | 0.03 | |
| Assets | |||
| Investment Properties, net (less accumulated depreciation and amortization) (3) | $ | 240,049,519 | |
| Total Assets | $ | 313,969,852 | |
| Debt to Total Assets (3) | 60.94 | % | |
| Market Capitalization | |||
| Common shares outstanding | 66,259,673 | ||
| OP units outstanding | 4,055,292 | ||
| Total common shares and OP units | 70,314,965 | ||
| Range of Common Stock closing prices for the fourth quarter 2015 | $1.67-$2.03 | ||
| Common Stock closing price at year end | $ | 1.93 | |
| Total number of Series B preferred shares | 729,119 | ||
| Range of Series B preferred closing prices for the fourth quarter 2015 | $22.50-$23.50 | ||
| Series B preferred closing price at year end | $ | 23.25 | |
| Total debt (3) | $ | 191,322,498 | |
| Common Stock market capitalization (as of December 31, 2015 closing stock price) | $ | 127,881,169 | |
| Portfolio Summary | |||
| Total Gross Leasable Area (GLA) in sq. ft. | 3,151,358 | ||
| Occupancy Rate | 94.2 | % | |
| Annualized Base Rent | $ | 27,291,152 | |
| Total number of leases signed or renewed during 2015 | 85 | ||
| Total sq. ft. leases signed or renewed during 2015 | 380,089 | ||
(1) See page 13 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) See page 7 for the Company's calculation of Pro Forma AFFO.
(3) Investment properties, net includes investment properties held for sale. Debt to total assets includes debt associated with assets held for sale.
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 4 |
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Balance Sheets
| December 31, | |||||||
| 2015 | 2014 | ||||||
| ASSETS: | |||||||
| Investment properties, net | $ | 238,764,631 | $ | 128,994,061 | |||
| Cash and cash equivalents | 11,306,185 | 9,969,748 | |||||
| Rents and other tenant receivables, net | 3,452,700 | 1,978,149 | |||||
| Goodwill | 5,485,823 | 7,004,072 | |||||
| Assets held for sale | 1,707,709 | 27,095,415 | |||||
| Above market lease intangible, net | 6,517,529 | 4,488,900 | |||||
| Deferred costs and other assets, net | 46,735,275 | 25,440,923 | |||||
| Total Assets | $ | 313,969,852 | $ | 204,971,268 | |||
| LIABILITIES: | |||||||
| Loans payable | $ | 189,340,456 | $ | 122,296,547 | |||
| Liabilities associated with assets held for sale | 2,007,554 | 19,283,423 | |||||
| Below market lease intangible, net | 7,721,335 | 5,182,437 | |||||
| Accounts payable, accrued expenses and other liabilities | 7,533,769 | 5,085,434 | |||||
| Total Liabilities | 206,603,114 | 151,847,841 | |||||
| Commitments and contingencies | — | — | |||||
| EQUITY: | |||||||
| Series A preferred stock (no par value, 4,500 shares authorized, 562 and 1,809 shares issued and outstanding, respectively) | 452,971 | 1,458,050 | |||||
| Series B convertible preferred stock (no par value, 3,000,000 shares authorized, 729,119 and 1,648,900 shares issued and outstanding, respectively) | 17,085,147 | 37,620,254 | |||||
| Common stock ($0.01 par value, 150,000,000 and 75,000,000 shares authorized, 66,259,673 and 7,512,979 shares issued and outstanding, respectively) | 662,596 | 75,129 | |||||
| Additional paid-in capital | 220,370,984 | 31,077,060 | |||||
| Accumulated deficit | (140,306,846 | ) | (27,660,234 | ) | |||
| Total Shareholders’ Equity | 98,264,852 | 42,570,259 | |||||
| Noncontrolling interests | 9,101,886 | 10,553,168 | |||||
| Total Equity | 107,366,738 | 53,123,427 | |||||
| Total Liabilities and Equity | $ | 313,969,852 | $ | 204,971,268 | |||
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 5 |
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Statements of Operations
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| TOTAL REVENUES | $ | 9,238,609 | $ | 5,120,784 | $ | 27,734,205 | $ | 14,874,093 | |||||||
| OPERATING EXPENSES: | |||||||||||||||
| Property operations | 2,832,261 | 1,270,395 | 8,351,456 | 4,123,439 | |||||||||||
| Non-REIT management and leasing services | 209,587 | — | 1,110,705 | — | |||||||||||
| Depreciation and amortization | 5,160,298 | 2,331,420 | 16,882,462 | 7,387,729 | |||||||||||
| Provision for credit losses | 28,713 | 42,099 | 243,029 | 60,841 | |||||||||||
| Corporate general & administrative | 2,766,821 | 4,239,773 | 13,480,089 | 9,447,010 | |||||||||||
| Total Operating Expenses | 10,997,680 | 7,883,687 | 40,067,741 | 21,019,019 | |||||||||||
| Operating Income | (1,759,071 | ) | (2,762,903 | ) | (12,333,536 | ) | (6,144,926 | ) | |||||||
| Interest expense | (2,593,300 | ) | (1,914,795 | ) | (9,043,761 | ) | (5,908,548 | ) | |||||||
| Net Loss from Continuing Operations | (4,352,371 | ) | (4,677,698 | ) | (21,377,297 | ) | (12,053,474 | ) | |||||||
| Discontinued Operations | |||||||||||||||
| Income from discontinued operations | 151,698 | 84,965 | 499,781 | 307,659 | |||||||||||
| Gain on Sales | 2,104,114 | — | 2,104,114 | — | |||||||||||
| Net Income from Discontinued Operations | 2,255,812 | 84,965 | 2,603,895 | 307,659 | |||||||||||
| Net Loss | (2,096,559 | ) | (4,592,733 | ) | (18,773,402 | ) | (11,745,815 | ) | |||||||
| Less: Net income (loss) attributable to noncontrolling interests | 78,571 | (539,573 | ) | (1,252,723 | ) | (1,195,560 | ) | ||||||||
| Net Loss Attributable to Wheeler REIT | (2,175,130 | ) | (4,053,160 | ) | (17,520,679 | ) | (10,550,255 | ) | |||||||
| Preferred stock dividends | (511,300 | ) | (1,165,937 | ) | (13,627,532 | ) | (2,718,257 | ) | |||||||
| Deemed dividend related to beneficial conversion feature of preferred stock | — | — | (72,644,506 | ) | — | ||||||||||
| Net Loss Attributable to Wheeler REIT Common Shareholders | $ | (2,686,430 | ) | $ | (5,219,097 | ) | $ | (103,792,717 | ) | $ | (13,268,512 | ) | |||
Loss per share from continuing operations (basic and diluted): | $ | (0.07 | ) | $ | (0.71 | ) | $ | (2.73 | ) | $ | (1.83 | ) | |||
| Earnings per share from discontinued operations | $ | 0.03 | $ | 0.01 | $ | 0.06 | $ | 0.03 | |||||||
| $ | (0.04 | ) | $ | (0.70 | ) | $ | (2.67 | ) | $ | (1.80 | ) | ||||
| Weighted-average number of shares: | |||||||||||||||
| Basic and Diluted | 66,189,261 | 7,460,109 | 38,940,463 | 7,352,433 | |||||||||||
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 6 |
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures (1)
Reconciliation of Non-GAAP Measures (1)
| FFO and AFFO | Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| 2015 | 2014 (4) | 2015 | 2014 (4) | |||||||||||||
| Net (loss) | $ | (2,096,559 | ) | $ | (4,592,733 | ) | $ | (18,773,402 | ) | $ | (11,745,815 | ) | ||||
| Depreciation of real estate assets from continuing operations | 5,160,297 | 2,331,421 | 16,882,462 | 7,387,729 | ||||||||||||
| Depreciation of real estate assets from discontinued operations | — | 162,279 | 579,891 | 832,761 | ||||||||||||
| Depreciation of real estate assets | 5,160,297 | 2,493,700 | 17,462,353 | 8,220,490 | ||||||||||||
| Gain on sale of discontinued operations | (2,104,114 | ) | — | (2,104,114 | ) | — | ||||||||||
| Total FFO | 959,624 | (2,099,033 | ) | (3,415,163 | ) | (3,525,325 | ) | |||||||||
| Preferred stock dividends | (511,300 | ) | (1,165,937 | ) | (13,627,532 | ) | (2,718,257 | ) | ||||||||
| Preferred stock accretion adjustments | 88,525 | 197,728 | 8,925,221 | 379,584 | ||||||||||||
| FFO available to common shareholders and common unitholders | 536,849 | (3,067,242 | ) | (8,117,474 | ) | (5,863,998 | ) | |||||||||
| Acquisition costs | 703,659 | 1,882,900 | 3,871,037 | 3,787,900 | ||||||||||||
| Capital related costs | 207,584 | — | 2,655,474 | — | ||||||||||||
| Other non-recurring expenses (2) | 203,944 | — | 770,757 | — | ||||||||||||
| Share-based compensation | 191,000 | 266,988 | 547,000 | 456,988 | ||||||||||||
| Straight-line rent | (68,843 | ) | (67,267 | ) | (270,873 | ) | (247,220 | ) | ||||||||
| Loan cost amortization | 252,190 | 372,560 | 1,300,901 | 787,228 | ||||||||||||
| Above (below) market lease amortization | 53,678 | 87,276 | 616,665 | 85,808 | ||||||||||||
| Perimeter legal accrual | 5,478 | — | 133,282 | — | ||||||||||||
| Tenant improvement reserves | (103,200 | ) | (53,500 | ) | (302,600 | ) | (194,400 | ) | ||||||||
| Recurring capital expenditures | (118,200 | ) | (65,800 | ) | (355,900 | ) | (239,200 | ) | ||||||||
| AFFO | $ | 1,864,139 | $ | (644,085 | ) | $ | 848,269 | $ | (1,426,894 | ) | ||||||
| Weighted Average Common Shares | 66,189,261 | 7,460,109 | 38,940,463 | 7,352,433 | ||||||||||||
| Weighted Average Common Units | 4,058,398 | 3,191,209 | 3,863,339 | 2,275,888 | ||||||||||||
| Total Common Shares and Units | 70,247,659 | 10,651,318 | 42,803,802 | 9,628,321 | ||||||||||||
| FFO per Common Share and Common Units | $ | 0.01 | $ | (0.29 | ) | $ | (0.19 | ) | $ | (0.61 | ) | |||||
| AFFO per Common Share and Common Units | $ | 0.03 | $ | (0.06 | ) | $ | 0.02 | $ | (0.15 | ) | ||||||
| Pro forma AFFO per Common Share and Common Units (3) | $ | 0.03 | $ | — | $ | 0.11 | $ | — | ||||||||
(1) See page 13 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2) Annual other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our December 2015 Annual Report on Form 10-K.
(3) Pro forma AFFO assumes the following transactions had occurred on January 1, 2015: (i) the Pierpont Center, Alex City Marketplace, Butler Square, Brook Run Shopping Center, Beaver Ruin Village, Beaver Ruin Village II, Chesapeake Square, Sunshine Plaza, Barnett Portfolio, Grove Park, Parkway Plaza, Ft. Howard Square and Conyers Crossing acquisitions; the sales of Bixby Commons, Harps and Jenks Reasors; the Series C Preferred Stock capital raise and subsequent conversion; and the Series A Preferred Stock and Series B Convertible Preferred Stock exchange offer that closed on July 23, 2015. Additionally, we excluded all non-recurring expenses detailed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our December 2015 Annual Report on Form 10-K, the Lumber River loan which was paid off on May 1, 2015 and any additional common stock and common units issued during the year ended December 31, 2015 were outstanding for the entire period. The Pro forma AFFO is being presented solely for purposes of illustrating the potential impact of these transactions as if they occurred on January 1, 2015, based on information currently available to management, and is not necessarily indicative of what actual results would have been had the transactions referred to above occurred on January 1, 2015.
(4) We adjusted the 2014 previously reported AFFO to be consistent with the 2015 AFFO presentation, primarily as it relates to the treatment of preferred stock accretion adjustments, straight-line rent for AFFO calculation purposes, tenant improvement reserves and capital expenditures. Additionally, we did not provide Pro Forma AFFO per common share and common unit for 2014 as we consider it not meaningful to the 2015 presentation.
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 7 |
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued)
| Property Net Operating Income | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Property Revenues | $ | 9,060,744 | $ | 4,665,618 | $ | 26,783,231 | $ | 14,418,927 | |||||||
| Property Expenses | 2,832,261 | 1,270,395 | 8,351,456 | 4,123,439 | |||||||||||
| Property Net Operating Income | 6,228,483 | 3,395,223 | 18,431,775 | 10,295,488 | |||||||||||
| Asset Management and Commission Revenue | 177,865 | 455,166 | 950,974 | 455,166 | |||||||||||
| Non-REIT management and leasing services | 209,587 | — | 1,110,705 | — | |||||||||||
| Depreciation and amortization | 5,160,298 | 2,331,420 | 16,882,462 | 7,387,729 | |||||||||||
| Provision for credit losses | 28,713 | 42,099 | 243,029 | 60,841 | |||||||||||
| Corporate general & administrative | 2,766,821 | 4,239,773 | 13,480,089 | 9,447,010 | |||||||||||
| Total Other Operating Expenses | 8,165,419 | 6,613,292 | 31,716,285 | 16,895,580 | |||||||||||
| Interest Expense | 2,593,300 | 1,914,795 | 9,043,761 | 5,908,548 | |||||||||||
| Net Loss from Continuing Operations | (4,352,371 | ) | (4,677,698 | ) | (21,377,297 | ) | (12,053,474 | ) | |||||||
| Discontinued Operations | |||||||||||||||
| Income from operations | 151,698 | 84,965 | 499,781 | 307,659 | |||||||||||
| Gain on Sales | 2,104,114 | — | 2,104,114 | — | |||||||||||
| Net Income from Discontinued Operations | 2,255,812 | 84,965 | 2,603,895 | 307,659 | |||||||||||
| Net Loss | $ | (2,096,559 | ) | $ | (4,592,733 | ) | $ | (18,773,402 | ) | $ | (11,745,815 | ) | |||
| EBITDA | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net Loss | $ | (2,096,559 | ) | $ | (4,592,733 | ) | $ | (18,773,402 | ) | $ | (11,745,815 | ) | |||
| Add back: Depreciation and amortization (1) | 5,213,976 | 2,580,976 | 18,079,019 | 8,306,298 | |||||||||||
| Interest Expense (2) | 2,618,384 | 2,187,016 | 9,758,842 | 6,813,426 | |||||||||||
| EBITDA | 5,735,801 | 175,259 | 9,064,459 | 3,373,909 | |||||||||||
| Adjustments for items affecting comparability: | |||||||||||||||
| Acquisition costs | 703,659 | 1,882,900 | 3,871,037 | 3,787,900 | |||||||||||
| Capital related costs | 207,584 | — | 2,655,474 | — | |||||||||||
| Other non-recurring expenses (3) | 203,944 | — | 770,757 | — | |||||||||||
| Gain on sales | (2,104,114 | ) | — | (2,104,114 | ) | — | |||||||||
| Adjusted EBITDA | $ | 4,746,874 | $ | 2,058,159 | $ | 14,257,613 | $ | 7,161,809 | |||||||
(1) Includes above (below) market lease amortization and amounts associated with assets held for sale.
(2) Includes loan cost amortization and amounts associated with assets held for sale.
(3) Annual other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our December 2015 Annual Report on Form 10-K.
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 8 |
Debt Summary
For the Year Ended December 31, 2015
Loans Payable: $191.3 million
Weighted Average Interest Rate: 4.71%
Total Debt to Total Assets: 60.94%
Debt from Continuing Operations:
| Maturities by Year | Amount | % Total Maturities | ||||
| 2016 | $ | 9,065,387 | 4.79 | % | ||
| 2017 | 7,035,351 | 3.72 | % | |||
| 2018 | 14,936,672 | 7.89 | % | |||
| 2019 | 2,505,641 | 1.32 | % | |||
| 2020 | 9,175,072 | 4.85 | % | |||
| Thereafter | 146,622,333 | 77.43 | % | |||
| Total principal maturities | $ | 189,340,456 | 100.00 | % | ||
Debt Associated with Assets Held for Sale:
| Maturities by Year | Amount | % Total Maturities | ||||
| 2016 | $ | 20,948 | 1.06 | % | ||
| 2017 | 22,126 | 1.12 | % | |||
| 2018 | 23,274 | 1.17 | % | |||
| 2019 | 565,694 | 28.54 | % | |||
| 2020 | — | 0.00 | % | |||
| Thereafter | 1,350,000 | 68.11 | % | |||
| Total principal maturities | $ | 1,982,042 | 100.00 | % | ||
Total Debt:
| Maturities by Year | Amount | % Total Maturities | ||||
| 2016 | $ | 9,086,335 | 4.75 | % | ||
| 2017 | 7,057,477 | 3.69 | % | |||
| 2018 | 14,959,946 | 7.82 | % | |||
| 2019 | 3,071,335 | 1.61 | % | |||
| 2020 | 9,175,072 | 4.80 | % | |||
| Thereafter | 147,972,333 | 77.33 | % | |||
| Total principal maturities | $ | 191,322,498 | 100.00 | % | ||
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 9 |
Debt Summary (continued)
| December 31, | |||||||||||||||||
| Property/Description | Monthly Payment | Interest Rate | Debt Maturity | 2015 | 2014 | ||||||||||||
| Shoppes at Eagle Harbor | $ | 25,100 | 4.34 | % | March 2018 | $ | 3,634,085 | $ | 3,773,319 | ||||||||
| Lumber River Plaza | $ | 18,414 | 5.65 | % | May 2015 | — | 2,894,862 | ||||||||||
| Monarch Bank Building | $ | 9,473 | 4.15 | % | December 2017 | 1,376,452 | 1,430,961 | ||||||||||
| Perimeter Square | $ | 28,089 | 6.38 | % | June 2016 | 4,166,406 | 4,294,216 | ||||||||||
| Riversedge North | $ | 8,802 | 6.00 | % | January 2019 | 962,281 | 1,007,856 | ||||||||||
| Walnut Hill Plaza | $ | 24,273 | 5.50 | % | July 2017 | 3,535,606 | 3,626,945 | ||||||||||
| Harps at Harbor Point | $ | 18,122 | 3.99 | % | December 2015 | — | 3,251,552 | ||||||||||
| Twin City Commons | $ | 17,827 | 4.86 | % | January 2023 | 3,225,473 | 3,279,076 | ||||||||||
| Shoppes at TJ Maxx | $ | 33,880 | 3.88 | % | May 2020 | 6,081,272 | 6,248,349 | ||||||||||
| Bixby Commons | Interest only | 2.77 | % | June 2018 | — | 6,700,000 | |||||||||||
| Bank Line of Credit | Interest only | 4.25 | % | September 2016 | — | 2,074,432 | |||||||||||
| Bank Line of Credit | Interest only | 2.79 | % | May 2018 | 6,873,750 | — | |||||||||||
| Forrest Gallery | $ | 50,973 | 5.40 | % | September 2023 | 8,926,712 | 9,045,880 | ||||||||||
| Jenks Reasors | Interest only | 4.25 | % | September 2016 | — | 8,550,000 | |||||||||||
| Tampa Festival | $ | 50,797 | 5.56 | % | September 2023 | 8,627,294 | 8,746,860 | ||||||||||
| Starbucks/Verizon | $ | 4,383 | 5.00 | % | July 2019 | 632,042 | 652,044 | ||||||||||
| Winslow Plaza | Interest only | 4.82 | % | December 2025 | 4,620,000 | — | |||||||||||
| Cypress Shopping Center | Interest only | 4.70 | % | July 2024 | 6,625,000 | 6,625,000 | |||||||||||
| Harrodsburg Marketplace | $ | 19,112 | 4.55 | % | September 2024 | 3,677,501 | 3,735,739 | ||||||||||
| Port Crossing | $ | 34,788 | 4.84 | % | August 2024 | 6,471,636 | 6,568,918 | ||||||||||
| LaGrange Marketplace | $ | 13,813 | 5.00 | % | March 2020 | 2,418,212 | 2,463,909 | ||||||||||
| Freeway Junction | Interest only | 4.60 | % | September 2024 | 8,150,000 | 8,150,000 | |||||||||||
| DF I-Courtland | $ | 1,411 | 6.50 | % | January 2019 | — | 115,728 | ||||||||||
| DF I-Edenton | $ | 250,000 | (1) | 3.75 | % | September 2016 | 650,000 | 1,650,000 | |||||||||
| DF I-Moyock | $ | 10,665 | 5.00 | % | July 2019 | 418,538 | 522,430 | ||||||||||
| Graystone Crossing | $ | 20,386 | 4.55 | % | October 2024 | 4,000,000 | 4,000,000 | ||||||||||
| Bryan Station | Interest only | 4.52 | % | November 2024 | 4,625,000 | 4,625,000 | |||||||||||
| Crockett Square | Interest only | 4.47 | % | December 2024 | 6,337,500 | 6,337,500 | |||||||||||
| Harbor Point | $ | 11,024 | 5.85 | % | December 2016 | 732,685 | 1,544,567 | ||||||||||
| Pierpont Centre | Interest only | 3.95 | % | February 2025 | 9,800,000 | — | |||||||||||
| Alex City Marketplace | Interest only | 3.90 | % | April 2025 | 5,750,000 | — | |||||||||||
| Butler Square | Interest only | 4.08 | % | May 2025 | 5,640,000 | — | |||||||||||
| Brook Run Shopping Center | Interest only | 3.90 | % | June 2025 | 10,950,000 | — | |||||||||||
| Beaver Ruin Village I and II | Interest only | 4.73 | % | July 2025 | 9,400,000 | — | |||||||||||
| Columbia Fire Station | Interest only | 8.00 | % | December 2017 | 450,053 | — | |||||||||||
| Sunshine Shopping Plaza | Interest only | 4.57 | % | August 2025 | 5,900,000 | — | |||||||||||
| Barnett Portfolio | Interest only | 4.30 | % | September 2025 | 8,770,000 | — | |||||||||||
| Grove Park Shopping Center | Interest only | 4.52 | % | October 2025 | 3,800,000 | — | |||||||||||
| Parkway Plaza | Interest only | 4.57 | % | October 2025 | 3,500,000 | — | |||||||||||
| Conyers Crossing | Interest only | 4.67 | % | October 2025 | 5,960,000 | — | |||||||||||
| Fort Howard Shopping Center | Interest only | 4.57 | % | October 2025 | 7,100,000 | — | |||||||||||
| Senior convertible notes | Interest only | 9.00 | % | December 2018 | 3,000,000 | 6,000,000 | |||||||||||
| Senior non-convertible notes | Interest only | 9.00 | % | December 2015 | — | 4,000,000 | |||||||||||
| Senior non-convertible notes | Interest only | 9.00 | % | January 2016 | 2,160,000 | 2,160,000 | |||||||||||
| South Carolina Food Lions Note | Interest only | 5.25 | % | January 2024 | 12,375,000 | 12,375,000 | |||||||||||
| Total Loans Payable (2) | $ | 191,322,498 | $ | 136,450,143 | |||||||||||||
(1) Represents quarterly payment.
(2) Includes debt associated with assets held for sale.
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 10 |
Portfolio Summary (as of December 31, 2015)
| Property | Location | Number of Tenants | Net Leasable Square Feet | Total SF Leased | Percentage Leased | Annualized Base Rent | Annualized Base Rent per Leased Sq. Foot | ||||||||
| Alex City Marketplace | Alexander City, AL | 17 | 147,791 | 128,741 | 87.1 | % | $ | 913,691 | $ | 7.10 | |||||
| Amscot Building | Tampa, FL | 1 | 2,500 | 2,500 | 100.0 | % | 115,849 | 46.34 | |||||||
| Beaver Ruin Village | Lilburn, GA | 27 | 74,048 | 62,461 | 84.4 | % | 1,006,968 | 16.12 | |||||||
| Beaver Ruin Village II | Lilburn, GA | 4 | 34,925 | 34,925 | 100.0 | % | 407,176 | 11.66 | |||||||
| Berkley (2) | Norfolk, VA | — | — | — | — | % | — | — | |||||||
| Brook Run Shopping Center | Richmond, VA | 20 | 147,738 | 137,539 | 93.1 | % | 1,547,303 | 11.25 | |||||||
| Brook Run Properties (2) | Richmond, VA | — | — | — | — | % | — | — | |||||||
| Bryan Station | Lexington, KY | 9 | 54,397 | 54,397 | 100.0 | % | 553,004 | 10.17 | |||||||
| Butler Square | Mauldin, SC | 16 | 82,400 | 82,400 | 100.0 | % | 833,358 | 10.11 | |||||||
| Cardinal Plaza | Henderson, NC | 7 | 50,000 | 42,000 | 84.0 | % | 424,500 | 10.11 | |||||||
| Carolina Place (2) | Onley, VA | — | — | — | — | % | — | — | |||||||
| Chesapeake Square | Onley, VA | 9 | 99,848 | 74,648 | 74.8 | % | 593,583 | 7.95 | |||||||
| Clover Plaza | Clover, SC | 10 | 45,575 | 45,575 | 100.0 | % | 354,771 | 7.78 | |||||||
| Columbia Fire Station (2) | Columbia, SC | — | — | — | — | % | — | — | |||||||
| Conyers Crossing | Conyers, GA | 14 | 170,475 | 170,475 | 100.0 | % | 884,797 | 5.19 | |||||||
| Courtland Commons (2) | Courtland, VA | — | — | — | — | % | — | — | |||||||
| Crockett Square | Morristown, TN | 4 | 107,122 | 107,122 | 100.0 | % | 886,635 | 8.28 | |||||||
| Cypress Shopping Center | Boiling Springs, SC | 16 | 80,435 | 77,635 | 96.5 | % | 804,020 | 10.36 | |||||||
| Edenton Commons (2) | Edenton, NC | — | — | — | — | % | — | — | |||||||
| Forrest Gallery | Tullahoma, TN | 27 | 214,450 | 202,216 | 94.3 | % | 1,204,701 | 5.96 | |||||||
| Fort Howard Shopping Center | Rincon, GA | 16 | 113,652 | 107,813 | 94.9 | % | 941,329 | 8.73 | |||||||
| Freeway Junction | Stockbridge, GA | 16 | 156,834 | 151,924 | 96.9 | % | 1,035,044 | 6.81 | |||||||
| Franklinton Square | Franklinton, NC | 11 | 65,366 | 56,300 | 86.1 | % | 490,295 | 8.71 | |||||||
| Graystone Crossing | Tega Cay, SC | 11 | 21,997 | 21,997 | 100.0 | % | 513,256 | 23.33 | |||||||
| Grove Park | Grove, OK | 16 | 106,557 | 95,829 | 89.8 | % | 685,081 | 7.15 | |||||||
| Harbor Point (2) | Grove, OK | — | — | — | — | % | — | — | |||||||
| Harrodsburg Marketplace | Harrodsburg, KY | 8 | 60,048 | 58,248 | 97.0 | % | 438,556 | 7.53 | |||||||
| Hilton Head (2) | Hilton Head, SC | — | — | — | — | % | — | — | |||||||
| Jenks Plaza | Jenks, OK | 5 | 7,800 | 7,800 | 100.0 | % | 148,629 | 19.06 | |||||||
| LaGrange Marketplace | LaGrange, GA | 13 | 76,594 | 71,494 | 93.3 | % | 388,385 | 5.43 | |||||||
| Laskin Road (2) | Virginia Beach, VA | — | — | — | — | % | — | — | |||||||
| Lumber River Village | Lumberton, NC | 12 | 66,781 | 66,781 | 100.0 | % | 503,506 | 7.54 | |||||||
| Monarch Bank | Virginia Beach, VA | 1 | 3,620 | 3,620 | 100.0 | % | 250,538 | 69.21 | |||||||
| Nashville Commons | Nashville, NC | 12 | 56,100 | 56,100 | 100.0 | % | 564,435 | 10.06 | |||||||
| Parkway Plaza | Brunswick, GA | 5 | 52,365 | 50,765 | 96.9 | % | 533,398 | 10.51 | |||||||
| Perimeter Square | Tulsa, OK | 8 | 58,277 | 55,773 | 95.7 | % | 742,287 | 13.31 | |||||||
| Pierpont Centre | Morgantown, WV | 20 | 122,259 | 122,259 | 100.0 | % | 1,338,612 | 10.95 | |||||||
| Port Crossing | Harrisonburg, VA | 8 | 65,365 | 60,400 | 92.4 | % | 780,445 | 12.92 | |||||||
| Riversedge North (1) | Virginia Beach, VA | — | — | — | — | % | — | — | |||||||
| Shoppes at TJ Maxx | Richmond, VA | 18 | 93,552 | 93,552 | 100.0 | % | 1,117,655 | 11.95 | |||||||
| South Square | Lancaster, SC | 5 | 44,350 | 39,850 | 89.9 | % | 319,206 | 8.01 | |||||||
| Starbucks/Verizon | Virginia Beach, VA | 2 | 5,600 | 5,600 | 100.0 | % | 185,695 | 33.16 | |||||||
| St. George Plaza | St. George, SC | 5 | 59,279 | 42,828 | 72.3 | % | 293,421 | 6.85 | |||||||
| Sunshine Plaza | Lehigh Acres, FL | 21 | 111,189 | 107,486 | 96.7 | % | 954,702 | 8.88 | |||||||
| Surrey Plaza | Hawkinsville, GA | 5 | 42,680 | 42,680 | 100.0 | % | 291,495 | 6.83 | |||||||
| Tampa Festival | Tampa, FL | 20 | 137,987 | 134,766 | 97.7 | % | 1,230,027 | 9.13 | |||||||
| The Shoppes at Eagle Harbor | Carrollton, VA | 7 | 23,303 | 23,303 | 100.0 | % | 447,844 | 19.22 | |||||||
| Tulls Creek (2) | Moyock, NC | — | — | — | — | — | — | ||||||||
| Twin City Commons | Batesburg-Leesville, SC | 5 | 47,680 | 47,680 | 100.0 | % | 450,310 | 9.44 | |||||||
| Walnut Hill Plaza | Petersburg, VA | 11 | 87,239 | 74,345 | 85.2 | % | 596,162 | 8.02 | |||||||
| Waterway Plaza | Little River, SC | 9 | 49,750 | 48,550 | 97.6 | % | 439,583 | 9.05 | |||||||
| Westland Square | West Columbia, SC | 10 | 62,735 | 57,665 | 91.9 | % | 486,698 | 8.44 | |||||||
| Winslow Plaza | Sicklerville, NJ | 17 | 40,695 | 40,695 | 100.0 | % | 594,202 | 14.60 | |||||||
| Total | 478 | 3,151,358 | 2,968,737 | 94.2 | % | $ | 27,291,152 | $ | 9.19 | ||||||
(1) Riversedge North is our corporate office.
(2) This information is not available because the property is undeveloped.
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 11 |
Top Ten Tenants by Annualized Base Rent
(as of December 31, 2015)
Total Tenants : 478
| Tenants | Total Net Leasable Square Feet | % of Total Net Leasable Square Feet | Annualized Base Rent ($ in 000s) | % of Total Annualized Base Rent | Base Rent Per Leased Square Foot | |||||||||||
| Bi-Lo/Winn Dixie | 392,898 | 12.47 | % | $ | 2,853 | 10.45 | % | $ | 7.26 | |||||||
| Food Lion | 325,576 | 10.33 | % | 2,691 | 9.86 | % | 8.27 | |||||||||
| Hobby Lobby | 114,298 | 3.63 | % | 675 | 2.47 | % | 5.91 | |||||||||
| Kroger | 84,938 | 2.70 | % | 534 | 1.96 | % | 6.29 | |||||||||
| Burlington Coat Factory | 83,552 | 2.65 | % | 176 | 0.64 | % | 2.11 | |||||||||
| Family Dollar | 67,626 | 2.15 | % | 465 | 1.70 | % | 6.88 | |||||||||
| Giant Food Stores, LLC | 58,473 | 1.86 | % | 380 | 1.39 | % | 6.50 | |||||||||
| Goodwill | 56,343 | 1.79 | % | 433 | 1.59 | % | 7.69 | |||||||||
| Dollar Tree | 51,974 | 1.65 | % | 441 | 1.62 | % | 8.49 | |||||||||
| Goody's | 51,275 | 1.63 | % | 139 | 0.51 | % | 2.71 | |||||||||
| 1,286,953 | 40.86 | % | $ | 8,787 | 32.19 | % | $ | 6.83 | ||||||||
Leasing Summary
(as of December 31, 2015)
Gross Leasable Area: 3,151,358 square feet
Total Square Footage Leased: 2,968,737 square feet
Occupancy Rate: 94.2%
Lease Expiration Schedule
| Lease Expiration Year | Number of Expiring Leases | Total Expiring Net Leasable Square Footage | % of Total Expiring Net Leasable Square Footage | % of Total Leased Square Footage Expiring | Expiring Base Rent (in 000s) | % of Total Base Rent | Expiring Base Rent Per Leased Square Foot | ||||||||||||||||
| Available | — | 182,621 | 5.79 | % | — | % | $ | — | — | $ | — | ||||||||||||
| 2016 | 71 | 188,045 | 5.97 | % | 6.33 | % | 2,244 | 8.22 | % | 11.93 | |||||||||||||
| 2017 | 105 | 436,806 | 13.86 | % | 14.71 | % | 4,591 | 16.82 | % | 10.51 | |||||||||||||
| 2018 | 97 | 588,498 | 18.67 | % | 19.82 | % | 5,025 | 18.41 | % | 8.54 | |||||||||||||
| 2019 | 70 | 466,894 | 14.82 | % | 15.73 | % | 4,209 | 15.42 | % | 9.01 | |||||||||||||
| 2020 | 72 | 572,140 | 18.16 | % | 19.27 | % | 5,071 | 18.58 | % | 8.86 | |||||||||||||
| 2021 | 23 | 358,741 | 11.38 | % | 12.08 | % | 2,526 | 9.26 | % | 7.04 | |||||||||||||
| 2022 | 10 | 67,484 | 2.14 | % | 2.27 | % | 880 | 3.22 | % | 13.04 | |||||||||||||
| 2023 | 9 | 129,841 | 4.12 | % | 4.37 | % | 1,303 | 4.77 | % | 10.04 | |||||||||||||
| 2024 | 12 | 100,228 | 3.18 | % | 3.38 | % | 844 | 3.09 | % | 8.42 | |||||||||||||
| 2025 and thereafter | 9 | 60,060 | 1.91 | % | 2.04 | % | 598 | 2.21 | % | 9.94 | |||||||||||||
| 3,151,358 | 100.00 | % | 100.00 | % | $ | 27,291 | 100.00 | % | $ | 9.19 | |||||||||||||
| Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data | 12 |
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 April 2002). 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) 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, and depreciation and amortization, 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 | 13 |
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, 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 | 14 |