Wheeler Real Estate Investment Trust, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Attached files

file	filename
8-K - 8-K Q1 2016 RESULTS OF OPERATIONS 8-K - Wheeler Real Estate Investment Trust, Inc.	q1resultsofoperations8-k20.htm
EX-99.1 - EXHIBIT 99.1 EARNINGS RELEASE - Wheeler Real Estate Investment Trust, Inc.	ex991whlrq12016earningsrel.htm

Exhibit 99.2

Supplemental Operating and Financial Data

for the three months ended March 31, 2016



Table of Contents
	Page
Company Overview	3
Financial and Portfolio Overview	4
Financial Summary
Consolidated Balance Sheets	5
Consolidated Statements of Operations	6
Reconciliation of Non-GAAP Measures	7
Debt Summary	9
Portfolio Summary
Property Summary	11
Top Ten Tenants by Annualized Base Rent	12
Leasing Summary	12
Definitions	13

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 & Director of 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	John McAuliffe
David Kelly	Jeffrey M. Zwerdling


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 March 31, 2016 (Unaudited)



Financial Results
Net loss attributable to Wheeler REIT common stockholders	$	(3,740,206	)
Net loss per basic and diluted share	$	(0.06	)
Funds from operations available to common shareholders and Operating Partnership (OP) unitholders (FFO) (1)	$	895,530
FFO per common share and OP unit	$	0.01
Adjusted FFO (AFFO) (1)	$	1,873,584
AFFO per common share and OP unit	$	0.03
Pro forma AFFO per common share and OP unit (2)	$	0.04

Assets
Investment Properties, net (less accumulated depreciation and amortization) (3)	$	238,828,860
Total Assets	$	301,946,960
Debt to Total Assets (3)	63.44		%

Market Capitalization
Common shares outstanding	66,314,380
OP units outstanding	4,863,019
Total common shares and OP units	71,177,399
Range of Common Stock closing prices for the first quarter 2016	$1.10 to $1.93
Common Stock closing price at first quarter end		$1.25
Total number of Series B preferred shares	729,119
Range of Series B preferred closing prices for the first quarter 2016	$16.52 to $23.14
Series B preferred closing price at first quarter end		$19.73
Total debt (3)	$	191,550,584
Common Stock market capitalization (as of March 31, 2016 closing stock price)	$	82,892,975

Portfolio Summary
Total Gross Leasable Area (GLA) in sq. ft.	3,151,358
Occupancy Rate	93.9		%
Annualized Base Rent	$	27,354,590
Total number of leases signed or renewed during the first quarter of 2016	20
Total sq. ft. leases signed or renewed during the first quarter of 2016	50,993

(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

Condensed Consolidated Balance Sheets



	March 31, 2016			December 31, 2015
	(unaudited)
ASSETS:
Investment properties, net	$	237,543,972		$	238,764,631
Cash and cash equivalents	7,029,642			10,706,185
Restricted cash	7,180,925			7,364,375
Rents and other tenant receivables, net	3,060,825			3,452,700
Goodwill	5,485,823			5,485,823
Assets held for sale	1,682,526			1,692,473
Above market lease intangible, net	5,981,123			6,517,529
Deferred costs and other assets, net	33,982,124			35,259,526
Total Assets	$	301,946,960		$	309,243,242
LIABILITIES:
Loans payable	$	184,970,426		$	184,629,082
Liabilities associated with assets held for sale	1,981,136			1,992,318
Below market lease intangible, net	7,256,541			7,721,335
Accounts payable, accrued expenses and other liabilities	6,522,190			7,533,769
Total Liabilities	200,730,293			201,876,504
Commitments and contingencies	—			—
EQUITY:
Series A preferred stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding, respectively)	452,971			452,971
Series B convertible preferred stock (no par value, 3,000,000 shares authorized, 729,119 shares issued and outstanding, respectively)	17,173,672			17,085,147
Common stock ($0.01 par value, 150,000,000 and 75,000,000 shares authorized, 66,314,380 and 66,259,673 shares issued and outstanding, respectively)	663,143			662,596
Additional paid-in capital	220,171,165			220,370,984
Accumulated deficit	(147,526,640		)	(140,306,846		)
Total Shareholders’ Equity	90,934,311			98,264,852
Noncontrolling interests	10,282,356			9,101,886
Total Equity	101,216,667			107,366,738
Total Liabilities and Equity	$	301,946,960		$	309,243,242



Wheeler Real Estate Investment Trust \| Supplemental Operating and Financial Data	5

Wheeler Real Estate Investment Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations



	Three Months Ended March 31,
	2016			2015
	(unaudited)
TOTAL REVENUES	$	9,138,662		$	5,153,752
OPERATING EXPENSES:
Property operations	2,675,025			1,553,674
Non-REIT management and leasing services	377,408			369,775
Depreciation and amortization	4,880,087			3,000,978
Provision for credit losses	87,526			47,198
Corporate general & administrative	2,281,108			2,308,964
Total Operating Expenses	10,301,154			7,280,589
Operating Income	(1,162,492		)	(2,126,837		)
Interest expense	(2,419,815		)	(2,142,719		)
Net Loss from Continuing Operations	(3,582,307		)	(4,269,556		)
Income from Discontinued Operations	20,525			46,367
Net Loss	(3,561,782		)	(4,223,189		)
Less: Net loss attributable to noncontrolling interests	(332,876		)	(462,376		)
Net Loss Attributable to Wheeler REIT	(3,228,906		)	(3,760,813		)
Preferred stock dividends	(511,300		)	(2,502,223		)
Deemed dividend related to beneficial conversion feature of preferred stock	—			—
Net Loss Attributable to Wheeler REIT Common Shareholders	$	(3,740,206	)	$	(6,263,036	)
Loss per share from continuing operations:
Basic and Diluted	$	(0.06	)	$	(0.81	)
Earnings per share from discontinued operations	—			0.01
	$	(0.06	)	$	(0.80	)
Weighted-average number of shares:
Basic and Diluted	66,272,926			7,806,467



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)



FFO and AFFO	Three Months Ended March 31,
	2016			2015 (4)
	(unaudited)
Net (loss)	$	(3,561,782	)	$	(4,223,189	)
Depreciation of real estate assets from continuing operations	4,880,087			3,000,978
Depreciation of real estate assets from discontinued operations	—			235,506
Depreciation of real estate assets	4,880,087			3,236,484
Total FFO	1,318,305			(986,705		)
Preferred stock dividends	(511,300		)	(2,502,223		)
Preferred stock accretion adjustments	88,525			1,211,202
FFO available to common shareholders and common unitholders	895,530			(2,277,726		)
Acquisition costs	413,310			653,242
Capital related costs	62,169			68,518
Other non-recurring and non-cash expenses (2)	237,460			89,500
Share-based compensation	150,250			45,000
Straight-line rent	(7,106		)	(57,577		)
Loan cost amortization	189,542			486,198
Above (below) market lease amortization	71,612			195,729
Recurring capital expenditures and tenant improvement reserves	(139,183		)	(130,900		)
AFFO	$	1,873,584		$	(928,016	)

Weighted Average Common Shares	66,272,926			7,806,467
Weighted Average Common Units	4,703,249			3,540,576
Total Common Shares and Units	70,976,175			11,347,043
FFO per Common Share and Common Units	$	0.01		$	(0.20	)
AFFO per Common Share and Common Units	$	0.03		$	(0.08	)
Pro forma AFFO per Common Share and Common Units (3)	$	0.04

(1) See page 13 for the Company's definition of this non-GAAP measurement and reasons for using it.


(2)	Other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our March 2016 Quarterly Report on Form 10-Q.

(3)

Pro forma AFFO assumes the A-C Portfolio acquisition, as well as all financings, share issuances and cost containment initiatives, had occurred on January 1, 2016. Additionally, we excluded all non-recurring expenses detailed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our March 2016 Quarterly Report on Form 10-Q and any additional common stock and common units issued during the three months ended March 31, 2016 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, 2016, 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, 2016.


(4)	We adjusted the 2015 previously reported AFFO to be consistent with the 2016 AFFO presentation, primarily as it relates to the treatment of capital expenditures, non-cash costs, and other non-recurring expenses. Additionally, we did not provide Pro Forma AFFO per common share and common unit for 2015 as we consider it not meaningful to the 2016 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)



Property Net Operating Income	Three Months Ended March 31,
	2016			2015
	(unaudited)
Property Revenues	$	8,730,925		$	4,832,561
Property Expenses	2,675,025			1,553,674
Property Net Operating Income	6,055,900			3,278,887
Asset Management and Commission Revenue	407,737			321,191
Non-REIT management and leasing services	377,408			369,775
Depreciation and amortization	4,880,087			3,000,978
Provision for credit losses	87,526			47,198
Corporate general & administrative	2,281,108			2,308,964
Total Other Operating Expenses	7,626,129			5,726,915
Interest Expense	2,419,815			2,142,719
Net Loss from Continuing Operations	(3,582,307		)	(4,269,556		)
Net Income from Discontinued Operations	20,525			46,367
Net Loss	$	(3,561,782	)	$	(4,223,189	)



EBITDA		Three Months Ended March 31,
		2016			2015
		(unaudited)
Net Loss		$	(3,561,782	)	$	(4,223,189	)
Add back:	Depreciation and amortization (1)	4,951,699			3,432,213
	Interest Expense (2)	2,441,923			2,378,464
EBITDA		3,831,840			1,587,488
Adjustments for items affecting comparability:
	Acquisition costs	413,310			653,242
	Capital related costs	62,169			68,518
	Other non-recurring expenses (3)	191,000			89,500
Adjusted EBITDA		$	4,498,319		$	2,398,748

(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)	Other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our March 2016 Quarterly Report on Form 10-Q.



Wheeler Real Estate Investment Trust \| Supplemental Operating and Financial Data	8

Debt Summary

For the Three Months Ended March 31, 2016

Loans Payable: $191.6 million

Weighted Average Interest Rate: 4.68%

Total Debt to Total Assets: 63.4%

Debt from Continuing Operations:



Maturities by Year	Amount		% Total Maturities
2017	$	9,791,207	5.16	%
2018	10,326,405		5.45	%
2019	12,409,633		6.55	%
2020	3,894,318		2.05	%
2021	6,919,536		3.65	%
Thereafter	146,232,624		77.14	%
Total principal maturities	$	189,573,723	100.00	%

Debt Associated with Assets Held for Sale:



Maturities by Year	Amount		% Total Maturities
2017	$	21,299	1.08	%
2018	22,403		1.13	%
2019	23,566		1.19	%
2020	559,593		28.31	%
2021	—		0.00	%
Thereafter	1,350,000		68.29	%
Total principal maturities	$	1,976,861	100.00	%

Total Debt:



Maturities by Year	Amount		% Total Maturities
2017	$	9,812,506	5.12	%
2018	10,348,808		5.40	%
2019	12,433,199		6.49	%
2020	4,453,911		2.33	%
2021	6,919,536		3.61	%
Thereafter	147,582,624		77.05	%
Total principal maturities	$	191,550,584	100.00	%



Wheeler Real Estate Investment Trust \| Supplemental Operating and Financial Data	9

Debt Summary (continued)



Property/Description	Monthly Payment			Interest Rate		Debt Maturity	March 31, 2016			December 31, 2015
							(unaudited)
Shoppes at Eagle Harbor		$25,100		4.34	%	March 2018		$3,599,870			$3,634,085
Monarch Bank Building		$9,473		4.15	%	December 2017	1,362,425			1,376,452
Perimeter Square		$28,089		6.38	%	June 2016	4,133,592			4,166,406
Riversedge North		$8,802		6.00	%	January 2019	950,414			962,281
Walnut Hill Plaza		$24,273		5.50	%	July 2017	3,511,836			3,535,606
Twin City Commons		$17,827		4.86	%	January 2023	3,211,553			3,225,473
Shoppes at TJ Maxx		$33,880		3.88	%	May 2020	6,038,482			6,081,272
Bank Line of Credit	Interest only			4.25	%	2016-09	3,000,000			—
Bank Line of Credit	Interest only			2.94	%	May 2018	6,873,750			6,873,750
Forrest Gallery		$50,973		5.40	%	September 2023	8,895,572			8,926,712
Tampa Festival		$50,797		5.56	%	September 2023	8,596,023			8,627,294
Starbucks/Verizon		$4,383		5.00	%	July 2019	626,861			632,042
Winslow Plaza	Interest only			4.82	%	December 2025	4,620,000			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	3,662,408			3,677,501
Port Crossing		$34,788		4.84	%	August 2024	6,446,357			6,471,636
LaGrange Marketplace		$13,813		5.00	%	March 2020	2,406,217			2,418,212
Freeway Junction	Interest only			4.60	%	September 2024	8,150,000			8,150,000
DF I-Edenton		$250,000	(1)	3.75	%	September 2016	400,000			650,000
DF I-Moyock		$10,665		5.00	%	July 2019	391,723			418,538
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	710,339			732,685
Pierpont Centre	Interest only			3.95	%	February 2025	9,800,000			9,800,000
Alex City Marketplace	Interest only			3.90	%	April 2025	5,750,000			5,750,000
Butler Square	Interest only			4.08	%	May 2025	5,640,000			5,640,000
Brook Run Shopping Center	Interest only			3.90	%	June 2025	10,950,000			10,950,000
Beaver Ruin Village I and II	Interest only			4.73	%	July 2025	9,400,000			9,400,000
Columbia Fire Station	Interest only			8.00	%	December 2017	459,114			450,053
Sunshine Shopping Plaza	Interest only			4.57	%	August 2025	5,900,000			5,900,000
Barnett Portfolio	Interest only			4.30	%	September 2025	8,770,000			8,770,000
Grove Park Shopping Center	Interest only			4.52	%	October 2025	3,800,000			3,800,000
Parkway Plaza	Interest only			4.57	%	October 2025	3,500,000			3,500,000
Conyers Crossing	Interest only			4.67	%	October 2025	5,960,000			5,960,000
Fort Howard Shopping Center	Interest only			4.57	%	October 2025	7,100,000			7,100,000
Senior convertible notes	Interest only			9.00	%	December 2018	3,000,000			3,000,000
Senior non-convertible notes	Interest only			9.00	%	January 2016	0			2,160,000
South Carolina Food Lions Note		$68,320		5.25	%	January 2024	12,346,548			12,375,000
Total Principal Balance							191,550,584			191,322,498
Unamortized debt issuance costs							(4,618,533		)	(4,726,610		)
Total Loans Payable (2)								$186,932,051			$186,595,888

(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 March 31, 2016)



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	%	$	917,488	$	7.13
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	%	1,026,479		16.43
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	19	147,738	135,139	91.5	%	1,510,546		11.18
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	%	837,988		10.17
Cardinal Plaza	Henderson, NC	7	50,000	42,000	84.0	%	424,500		10.11
Carolina Place (2)	Onley, VA	—	—	—	—	%	—		—
Chesapeake Square	Onley, VA	10	99,848	76,048	76.2	%	574,105		7.55
Clover Plaza	Clover, SC	9	45,575	45,575	100.0	%	346,634		7.61
Courtland Commons (2)	Courtland, VA	—	—	—	—	%	—		—
Columbia Fire Station (2)	Columbia, SC	—	—	—	—	%	—		—
Conyers Crossing	Conyers, GA	14	170,475	170,475	100.0	%	909,909		5.34
Crockett Square	Morristown, TN	3	107,122	99,122	92.5	%	804,822		8.12
Cypress Shopping Center	Boiling Springs, SC	17	80,435	79,035	98.3	%	826,420		10.46
Edenton Commons (2)	Edenton, NC	—	—	—	—	%	—		—
Forrest Gallery	Tullahoma, TN	27	214,450	202,216	94.3	%	1,217,882		6.02
Fort Howard Shopping Center	Rincon, GA	16	113,652	107,813	94.9	%	946,596		8.78
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	%	514,899		23.41
Grove Park	Grove, OK	15	106,557	91,528	85.9	%	683,800		7.47
Harbor Point (2)	Grove, OK	—	—	—	—	%	—		—
Harrodsburg Marketplace	Harrodsburg, KY	7	60,048	56,448	94.0	%	415,606		7.36
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	14	76,594	75,094	98.0	%	425,261		5.66
Laskin Road (2)	Virginia Beach, VA	—	—	—	—	%	—		—
Lumber River Village	Lumberton, NC	11	66,781	66,781	100.0	%	499,306		7.48
Monarch Bank	Virginia Beach, VA	1	3,620	3,620	100.0	%	258,054		71.29
Nashville Commons	Nashville, NC	12	56,100	56,100	100.0	%	568,935		10.14
Parkway Plaza	Brunswick, GA	5	52,365	50,765	96.9	%	534,694		10.53
Perimeter Square	Tulsa, OK	8	58,277	57,139	98.1	%	743,092		13
Pierpont Centre	Morgantown, WV	20	122,259	122,259	100.0	%	1,436,928		11.75
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	%	1,119,670		11.97
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	22	111,189	109,186	98.2	%	982,117		8.99
Surrey Plaza	Hawkinsville, GA	5	42,680	42,680	100.0	%	292,245		6.85
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	%	451,928		19.39
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	10	87,239	70,017	80.3	%	553,916		7.91
Waterway Plaza	Little River, SC	10	49,750	49,750	100.0	%	474,088		9.53
Westland Square	West Columbia, SC	10	62,735	57,665	91.9	%	487,159		8.45
Winslow Plaza	Sicklerville, NJ	17	40,695	40,695	100.0	%	560,422		13.77
Total		476	3,151,358	2,958,574	93.9	%	$	27,354,590	$	9.25

(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 March 31, 2016)

Total Tenants : 476



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
1. Bi-Lo/Winn Dixie	392,898	12.47	%	$	2,858	10.45	%	$	7.28
2. Food Lion	325,576	10.33	%	2,691		9.84	%	8.27
3. Hobby Lobby	114,298	3.63	%	675		2.47	%	5.90
4. Kroger	84,938	2.70	%	534		1.95	%	6.28
5. Burlington Coat Factory	83,552	2.65	%	176		0.64	%	2.11
6. Family Dollar	67,626	2.15	%	481		1.76	%	7.11
7. Giant Food Stores, LLC	58,473	1.86	%	380		1.39	%	6.50
8. Goodwill	56,343	1.79	%	433		1.58	%	7.68
9. Dollar Tree	51,974	1.65	%	441		1.61	%	8.48
10. Goody's	51,275	1.63	%	139		0.51	%	2.71
	1,286,953	40.86	%	8,808		32.20	%	$	6.84

Leasing Summary

(as of March 31, 2016)

Gross Leasable Area: 3,151,358 square feet

Total Square Footage Leased: 2,958,574 square feet

Occupancy Rate: 93.9%

Lease Expiration Schedule



Lease Expiration Twelve Month Period Ending March 31,	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	—	192,784	6.12	%	—		—		—		$	—
2017	75	269,929	8.57	%	9.12	%	2,640		9.65	%	9.78
2018	109	554,382	17.59	%	18.74	%	5,423		19.82	%	9.78
2019	94	541,119	17.17	%	18.29	%	4,490		16.41	%	8.30
2020	60	371,067	11.77	%	12.54	%	3,669		13.41	%	9.89
2021	76	640,813	20.33	%	21.66	%	5,511		20.15	%	8.60
2022	22	233,245	7.40	%	7.88	%	2,000		7.31	%	8.57
2023	14	117,872	3.74	%	3.98	%	1,515		5.54	%	12.85
2024	7	77,809	2.47	%	2.63	%	735		2.69	%	9.45
2025	11	75,684	2.40	%	2.56	%	718		2.62	%	9.49
2026 and thereafter	8	76,654	2.44	%	2.60	%	654		2.40	%	8.51
	476	3,151,358	100.00	%	100.00	%	$	27,355	100.00	%	$	9.25



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

Attached files

Wheeler Real Estate Investment Trust, Inc. Reports

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