WHLR - Earnings call transcript Q2 2018 | Wheeler Real Estate Investment Trust, Inc.

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Operator

Good morning, ladies and gentlemen. And welcome to Wheeler Real Estate Investment Trust 2018 Second Quarter Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. Please note that today's conference call is being recorded with a webcast replay available for the next 90 days. The dial-in details for the replay can be found in yesterday's press release and can be obtained from the Investor Relations section of the Company’s Web site at www.whlr.us. there a remarks, Instructions]. period speakers’ our will question-and-answer be [Operator After will over conference turn Mary I the IRRealized. to now Jensen, of

Mary Jensen

Operator. you, Thank

Joining Reddy, today Chief call Officer. Andy us Kelly, Operating on and President Franklin, are Chief Executive Financial Chief Dave Matt Officer; and Officer; the

forward-looking assumptions us. course the made information available to These by call, based on make forward-looking we and During are will the this statements. of statements beliefs of, currently

factors unknown Our are actual affected be control trends, ability beyond that results and or by known our risks, uncertainties and will to predict.

maybe assumptions believe that prove reasonable, we our guarantees and expected Although, material. not incorrect. from differences of be performance our actual will are some differ they be can expectations to and are results Therefore, future our to those

of presented risks, our potential is unless more this For to and Relations please be in undertakes description update information a law. no filing, duty current SEC of Wheeler of August statement the detailed All on intend to section site. found required X, not Investor can forward-looking XXXX. which today, does call by as Web refer our some

In be which reconciliations of in AFFO, such and as quarterly of can site. Investor Web this our measures obtained non-GAAP FFO in addition, presented reports, on be also call, section can Wheeler’s the found financial Relations

released Dave? results we and to Dave business our over will prepared that During to remarks With discuss and today, turn provide would an Matt like Reddy activities operating call quarterly Dave on recent that, will Kelly. update the Kelly our I financial yesterday.

Dave Kelly

release. morning. the to time the I highlights making Matt you on before over earnings who this you pass second details Good just us will Reddy, a you, morning. hit Mary. the quarter Thank thank join few for behind and want call give to to

positive number working we while work year. made to a near we have earlier are the We initiatives we have our in steps. with follow And progress, of outlined through diligently not been this completed

the million we line. have moved With $X assets, refinancing over KeyBank the off certain of

loan We that to are near million million on exposure our approximately $X KeyBank's year. at facility from the the reduce the will million $XX $XX closing on our beginning of initial credit

As Net Southeastern bankruptcy The thereby in storyline generated of dominated an XX.X% was have AFFO we the of we we KeyBank also be overall the only revenue filing the appreciate reduced operating get and of $X.X but have a line anticipated time that on work asset by line, executed to of within and of on payments, the line, the year. basis associated year year. NOI million valuable expenses onetime million. reduce not respectively and much debt currently a FFO, with the over for non-property we XX.X% and have QX period to has reducing operating from the and continue these EBITDA that this progress our beginning through by non-property reflected the operating approximately gives stock management to refinancing of Grocers. expenses balance continue the $X.X six We an extension growth be the later covenants through significant million period they non-cash Keybank, first versus partner reduced under the period improving relaxes of of non-recurring demonstrated half in down us $XXX,XXX year. process. balance compensation, for agreement. of compensation, we’ve our the off metrics. paid compared total over expenses, as sequential dispositions year represent our last first relationship to expenses cash same QX, reduced certain Net XX.X% core a by Further, eventual this stock to to Through same and of we X.X% year, months revenue last expenses this and from the a transition on at schedule the the and Revere combination with which of is growth $X.X portfolio On completed,

system During SEG XXst. these none pleased we were operating May grocers. the emerged for as to see our four stores four Two SEG currently on of this locations SEG we with And locations altered and the of as quarter, bankruptcy recaptured in we the second we expected, reinvesting process. with and by remodels replacement process. upgrades. from bankruptcy of the part started recaptured qualifications have We leased are opened

grocer in stages negotiations the the these a on of outcome last. discussions lease eventual forward We with We look sharing of and negotiations are final active the shortly. third in to

to also square restricted In focused SEG exposure leasable lender over putting were on $X in bankruptcy, to this representing our in XX% at that footage X.XX% reinvesting reduction. by in XX.X% to Over $XX capital held significantly reduced before and our and reserves. We cost total our then earmarked our money cash a that of million currently tenants. million the for compared of is properties We're work improvements. leasing addition,

a plan parking the fields lighting, pylon within commenced upgrade systematic and portfolio. have to roofs We lot sign, parking

with will Matt feet of X.XX% year. the quarter XXX,XXX a the and positive feet over we XXX,XXX renewed for square As quarter this detail, square have for rent this almost and X.XX% year, spread

square this maintaining leases We leasing XXX,XXX have to activity. over continue type XX feet XX positive well for enable us XXX,XXX our for will also improving centers and quarter located year-to-date We this new of feet. square signed believe

shadow strips level KeyBank have debt, process number strategic the including up plan. reduces We equity balance and of long-term This not further anchored do our and property Revere retail assets for remaining our disposition. fit select frees the are such further properties assets listed that non-core or non-grocery rightsizing These as anchored line.

still dispositions solidifying portfolio that debt buyback on or manner appropriate the cash any reducing deem embarking of will to management include we at cash not these of may note we we additional in committed proceeds new also say Please the in our to investment time. Directors, in our use time, addition In acquisitions reinvest Board the prudently with the future. appropriate securities. that best provide Together that that when foundation, and this, can our a foreseeable will are at I of which identify

have filed recently from statement in stockholders Annual our preliminary and WHLR's our the reach We stockholders October Board and WHLR proxies connection on Xrd with WHLR XXXX. proxy due Directors announced proxy soliciting have XXXX WHLR's Meeting its encourages meeting Stockholder. for Meeting to of in are proxy strongly in materials. XXXX final of to materials Annual intends with course, file annual connection

any WHLR what we to our concerning issued look are questions unable essence, our we’re any today's to and that as this In or Stilwell referring of result, nominees, a WHLR's Stilwell not to Board Group. our them on stated and As answer sign the call. the election endorse letter Directors to stop, it’s to shareholders urge of issue return listen any on has and behalf sent Group not shareholders. by of strongly proxy does card

juncture. the I B complaint by We’re our asking shareholders until filing all related any recent matter, ongoing This await which that cannot refrain filed proxy JCP materials is voting Stilwell Series an Group to to this as preferred well they're Investments stock. a from the on by all at proxy comment litigation WHLR. reviewed

The correcting areas value. and over believe made we the efforts our interest above diligence, and Matt. shareholders original However, error filing. we our that, I'll best commitments through in the to progress on appropriately to have shareholders due turn grafting of the to and acted call careful maximize have we in our demonstrates in With our the

Matt Reddy

compares and AFFO of $X.XX Dave. and the we XXXX. quarter second Yesterday, FFO second per to the share AFFO for share of $X.XX XXXX, FFO which reported of of of Thanks, diluted per $X.XX diluted of $X.XX during quarter

tenant $XX.X Revenue by XX% last onetime which for the that year has recently increased the same Berkley at Center vacated lease Hampton Shopping termination represents to value revenue XX% total $XXX,XXX million. Roads impacted quarter the quarter an the Second for market. of fee, period from was anchored

key our additional, decrease during million $X.X AFFO quarter. center generated our shopping to prior a few Consistent the be with factors. In results, JANAF could quarter incremental of year-over-year the attributed in asset revenue

leasing asset by or development as management fees and and anticipated, per $X.XX commissions First fees, share. $XXX,XXX decreased

Turtle same amount a Additionally, for has the or which income $XXX,XXX of Sea basis, been excluded on from non-accrual to the the primarily last has to or compared when of for year. a X% of portfolio. amortization, share services, interest adjustable the interest rates increased Interest due This is AFFO, second increases in previous with $X.XXX marketplace from associated increased at which compared tied rate attributed the $X.XXX $XXX,XXX share quarter This of the portion non-property store share same expense, debt XXXX. accounted excludes to note per development placed or period AFFO decrease $X.XXX receivable periods. loan across of operations. non-REIT non-cash $XXX,XXX when per impacting operating variable per been expenses maturity, in interest cost our expenses loan to due net including management leasing and Furthermore, by

non-recurring discussed of transition, As non-property earlier, Dave expenses have expenses. associated management operating we with net reduced the

which XX, during year-over-year offset these we generated January were reductions asset, on of XXXX. These decrease costs partially by to onetime We acquired JANAF year. to expect half second the the AFFO by the NOI the

increasing store during During quarter. dividends. per the compared when X.XX% of $XXX,XXX during quarter quarter, and contributed to NOI million second JANAF AFFO preferred the JANAF $X.XXX $X.X million second contributed after share which generated of of quarter, considering NOI, FFO improved second $X of in the Same AFFO XXXX. the

in the last recaptures same the termination we when Berkley loss vacancies reduced SEG quarter to be As to quarter Center, the and compared revenue same-store during year. this $X.XX Shopping be previous the operation. which of other fee, to adjustments period associated $X.XXX that when fee the NOI previously NOI have same-store to yet per added with of attributed backfilled open the decrease termination year. for decreased can by or interim prior The Disregarding recent share second and mentioned, AFFO AFFO recognize one-time compared of

be Myrtle rent; Chesapeake We offset Park; Harbor Wiggly the Piggly anchored recent Ladson expect Perimeter; to tenants at decrease Tractor four of Fitness and the our Planet disclosed commence Howard; Mullins at South recaptures. previously Freight in the at two and Park, Aspire Fitness backfilled Supply which operational Crossing and were some following fully at of future quarters become this as Fort SEG Square;

the Shopping is The rental rate percent in lease remaining two over is $X.XX average Fresh As X.XX first anchor from recaptures average of Farm foot is term June an XX.X% in leased related with decrease quarter occupied. this the square The our portfolio per the occupied our the of at primarily SEG vacated to XXXX, years. Berkley for and year Center. of XX, portfolio XX.X% core

increase $X.XX XXth, square per $X.X effect new into at including over are new associated quarter of X.XX% at During feet bankruptcy on XXX,XXX term. lease increase square the the calculated foot. $X.XX which per weighted Rent of debt rate the proceedings, million following average an XXX,XXX sale. in of renewals Exclusive XXXX. debt of ended modified prior with on of feet approval square executed weighted the lease with the foot, June XX quarter, Southeastern was over foot reviewed we lease We leases the or leases spreads for held average Grocers, $XXX.X Total a we cash went totaling average modifications million square rate any per June assets totaling based at with square XX for executed associated of XX, a rates. the at the

we a our average sale. when with including the assets we $X.X of Further, term with average ended XXXX. X.XX by remaining, During obligations compared debt years and quarter, the quarter associated debt weighted million March weighted to interest for reduced rate X.XX% held XX

be Additional package can activities we yesterday second financing on will on afternoon. the to supplemental found press detail and be your questions. the happy With release that, filed take we quarter

Dave Kelly

Operator. you, Thank

day. you reinvesting a I the this the of in maximizing satisfied have are have fundamentals joining growing by reducing And continue again debt, the to to time. work am short us shareholders. we pleased While common portfolio, We'll I revenues value we Thank period a our properties tenants, where in am morning. for the very returning good and the our of progress with yet in not with today, made

Operator

today's concludes This call.

You disconnect. may now

Wheeler Real Estate Investment Trust (WHLR) 9 Aug 182018 Q2 Earnings call transcript