Wheeler Real Estate Investment Trust, Inc. · NASDAQ:WHLR
Wheeler Real Estate Investment Trust — Investor Presentation (September 2016)
28 slides from Wheeler Real Estate Investment Trust's investor presentation, Sep 30, 2016
Slide 1: Wheeler Real Estate Investment Trust, September 2016
NASDAQ: WHLR September 2016 Exhibit 99.1
Slide 2: Safe Harbor
SAFE HARBOR This presentation may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do no
Slide 3: Company Overview
COMPANY OVERVIEW Wheeler is an internally-managed REIT focused on acquiring well-located, necessity-based retail properties In November 2012, the Company listed on the NASDAQ exchange with eight assets and a market cap of $13.8 million Targets grocery-anchored shopping centers in secondary and terti
Slide 4: Investment Highlights
Eight Directors- 6 Independent Directors and 2 Non-Independent Directors Institutional representation from Westport Capital Partners INVESTMENT HIGHLIGHTS Industry leading occupancy rate of approximately 93.8%, as of June 30, 2016 National and Regional merchants represent majority of Wheeler’s tenan
Slide 5: Management Team
Wilkes Graham Chief Financial Officer Over 16 years experience in the real estate and financial services industries Previously served as Director of Research and as a Senior Sell-Side Equity Research Analyst at Compass Point Research & Trading, LLC As a Real Estate Analyst, he has forecasted earning
Slide 6: Stable Portfolio Focused on Necessity-Based Shopping
STABLE PORTFOLIO FOCUSED ON NECESSITY-BASED SHOPPING Predominantly Grocery-Anchored Portfolio2 Strong Grocer Rent to Sales3 68% of grocery store GLA with a rent/sales ratio below 3% Company believes necessity-based shopping centers are resistant to economic downturns. In our view, Necessity = Stabil
Slide 7: Solid Tenants Focused on Necessity-Based Retail
Majority of Wheeler’s anchor and junior anchor tenants focus on ‘necessity-based’ products or services that are less likely to be impacted by E-commerce business and fluctuations in the economy From 2012-2013, Wheeler’s anchor and junior anchor tenants reported a 2.3% increase in sales per square fo
Slide 8: Tenant Overview
TENANT OVERVIEW Top tenants represent approximately 40% of portfolio Focus on tenants that create consistent consumer demand, offering items such as food, postal, dry-cleaning, health services and discount merchandise Minimal exposure to E-Commerce industry As of 6/30/2016 Top 10 Tenants1 Diversifie
Slide 9: WHLR-Owned Bi-Los Face Less Competition
WHLR-OWNED BI-LOs FACE LESS COMPETITION WLHR-owned Bi-Lo’s in South Carolina have 3 less competing grocers within a 3-mile radius, based on population density, than do non-WHLR owned Bi-Lo’s The supply/demand ratio for 12 of the 13 WHLR-owned Bi-Lo’s is <= 1 std. dev. of the mean Source: Maptitude,
Slide 10: WHLR Portfolio Supply/Demand Profile in Line with Industry
WHLR PORTFOLIO SUPPLY/DEMAND PROFILE IN LINE WITH INDUSTRY WLHR’s assets are located in lower population-density markets and have the 2nd lowest number of competing grocers within a 3-mile radius among all publicly traded shopping center REITs Lower density markets insulates our assets from e-commer
Slide 11: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE1 Approximately 70% of total leased square footage beyond two years Weighted average remaining lease term of 3.96 years Weighted average remaining lease term for grocery anchor tenants is 4.54 years As of June 30, 2016
Slide 12: Strong Leasing Trends
STRONG LEASING TRENDS Wheeler has maintained stable occupancy rates – average of 94.8% since the Company’s IPO For the three months ended June 30, 2016, approximately 76,761 square feet was renewed at an average weighted increase of 3.6% over prior rates As of June 30, 2016, average occupancy rate o
Slide 13: Integrated Platform, Proven Success
Integrated Platform, Proven Success Wheeler has acquisition, leasing, property management, development and re-development services all in–house and maintains a scalable, manageable platform Over 50 associates between the Company’s headquarters in Virginia Beach and Charleston regional office Develop
Slide 14: Growth Strategy
GROWTH STRATEGY Well located properties in secondary and tertiary markets High unlevered returns (expected cap rates of ~9%) Focus on best in market multi-tenant grocery-anchored centers with necessity-based inline tenants National & regional tenants High traffic count and ease of access Sale of non
Slide 15: Pipeline of Accretive Assets
PIPELINE OF ACCRETIVE ASSETS Butler Square The Company currently has 7 properties under LOI that it is actively investigating totaling approximately $91.8 million with an average cap rate of 8.03% utilizing 60-65% LTV1 The Company has an additional 4 properties under review totaling approximately $1
Slide 16: Current Pipeline for 2016
CURRENT PIPELINE for 2016 (as of 9/28/2016) Status Property Name Location Square Footage Anchor Purchase Price Cap Rate Interest Rate LTV ROE1 Notes Closed AC Portfolio SC & GA 605,358 BI-LO, Piggly Wiggly, Harris Teeter $ 71,000,000 8.85% 5.43 % 65% Closed 4-12 Total Closed 605,358 $ 71,000,000 8.8
Slide 17: Disposition Strategy
DISPOSITION STRATEGY Status Property Name Location Square Footage Purchase Price Purchase NOI Purchase Cap Sale Price Sale NOI Sale Cap Closed Reasors - Jenks Jenks, OK 81,000 $ 11,400,000 $ 912,000 8.00% $ 12,160,000 $ 912,000 7.50% Reasors - Bixby Bixby, OK 74,889 $ 10,600,000 $ 769,000 7.25% $ 10
Slide 18: AFFO Progression to Dividend Coverage Continues
AFFO PROGRESSION TO DIVIDEND COVERAGE CONTINUES Following its $93 Million “re-IPO” in March 2015, Wheeler has made great strides towards covering its $0.21 annual dividend with Adjusted Funds From Operations, or AFFO Following the internalization of its management structure in October 2014, which br
Slide 19: Strength in Income Metrics
STRENGTH IN INCOME METRICS Butler Square Adjusted EBITDA / Interest Expense1,2 Adjusted EBITDA / Fixed Charges1,2 AFFO before Pref. Dividends / Pref. Dividends1,2 Annualized AFFO per Share1 For a definition of AFFO, Adjusted EBITDA and other Non-GAAP measures and a reconciliation to GAAP measures, p
Slide 20: Appendix
Appendix WHEELER REAL ESTATE INVESTMENT TRUST
Slide 21: Property Overview
PROPERTY OVERVIEW (as of 6/30/2016) 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 % $ 918,688 $ 7.14 Amscot Building Tampa,
Slide 22: Property Overview Continued
PROPERTY OVERVIEW CONTINUED (as of 6/30/2016 Property Location Number of Tenants Net Leasable Square Feet Total SF Leased Percentage Leased Annualized Base Rent Annualized Base Rent per Leased Sq. Foot Monarch Bank Virginia Beach, VA 1 3,620 3,620 100.0 % 258,054 $ 71.29 Moncks Corner Moncks Corner,
Slide 23: Debt Profile and Lending Relationships
Strong lending relationships with nationally recognized banks Expanded revolving credit facility with KeyBank National Association to approximately $67.2 million in 2Q16 As of August 12, 2016 have reduced KeyBank facility to $46.1 million Senior non-convertible debt paid in full as of January 2016 W
Slide 24: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (unaudited) TOTAL REVENUES $ 11,085,374 $ 6,081,891 $ 20,224,036 $ 11,235,643 OPERATING EXPENSES: Property operations 2,797,096 1,848,284 5,472,121 3,401,958 Non-REIT management and leasing
Slide 25: Balance Sheet Summary
Balance sheet summary June 30, 2016 December 31, 2015 (unaudited) ASSETS: Investment properties, net $ 294,822,999 $ 238,764,631 Cash and cash equivalents 2,651,557 10,477,576 Restricted cash 9,020,723 7,592,984 Rents and other tenant receivables, net 3,097,931 3,452,700 Goodwill 5,485,823 5,485,823
Slide 26: FFO and AFFO
FFO and AFFO Other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our June 2016 Quarterly Report on Form 10-Q. Pro forma AFFO assumes the A-C Portfolio acquisition, as well as all financings, share issuances
Slide 27: Capital Structure
CAPITAL STRUCTURE March 31, 2015 June 30, 2016 September 27, 2016 Debt Outstanding ($000) Outstanding ($000) Outstanding ($000) Security Senior Non-Convertible Debt (9% Coupon, Dec-15 / Jan-16 Maturity)1 $6,160 - - Senior Convertible Debt (9% Coupon, Dec-18 Maturity)2 $3,000 $1,400 $1,400 Key Bank L
Slide 28: Think Retail. Think Wheeler.
NASDAQ: WHLR Think Retail. Think Wheeler.®
Wheeler Real Estate Investment Trust — Investor Presentation (September 2016) on 6ix