Wheeler Real Estate Investment Trust, Inc. · NASDAQ:WHLR
Wheeler Real Estate Investment Trust — Investor Presentation (May 2016)
24 slides from Wheeler Real Estate Investment Trust's investor presentation, May 9, 2016
Slide 1: Wheeler Real Estate Investment Trust, May 2016
NASDAQ: WHLR May 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
INVESTMENT HIGHLIGHTS Industry leading occupancy rate of approximately 93.9%, as of March 31, 2016 National and Regional merchants represent majority of Wheeler’s tenants Diversified geography and tenant base Wheeler properties serve the essential day-to-day shopping needs of the surrounding communi
Slide 5: Management team: Jon S. Wheeler and Wilkes Graham
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 82% 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
Type GLA % of GLA % of Annualized Base Rent Grocery 649,173 17.28% 16.90 % Grocery 325,576 8.67% 7.85 Grocery 136,343 3.63% 3.95 Retail 114,298 3.04% 1.97 Grocery 84,938 2.26% 1.56 Retail 83,552 2.22% .51 Retail 85,166 2.27% 1.72 Grocery 58,473 1.56% 1.11 Retail 56,343 1.50% 1.26 Retail 51,974 1.38%
Slide 9: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE1 Approximately 75% of total leased square footage beyond two years Weighted average remaining lease term of 4.67 years Weighted average remaining lease term for grocery anchor tenants is 5.43 years As twelve months ending March 31, 2016
Slide 10: 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 March 31, 2016, approximately 32,056 square feet was renewed at a average weighted increase of 7.4% over prior rates As of December 31, 2015, average occupancy ra
Slide 11: 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 Since t
Slide 12: 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 13: Acquisition Update
ACQUISITION UPDATE Beaver Ruin Village Year to date, the Company has closed on fourteen shopping centers for a total acquisition value of approximately $71.0 million at an average cap rate of 8.85%; a weighted average interest rate of 5.43%; and, LTV of 85% Six properties totaling $64.0 million unde
Slide 14: Current Pipeline
CURRENT PIPELINE (as of 4/30/2016) Status Property Name Location Square Footage Anchor Price Cap Interest Rate LTV CLOSED AC Portfolio South Carolina and Georgia 605,358 BI-LO, Harris Teeter, Piggly Wiggly $ 71,000,000 8.85% 5.43% 85% Total Closed 605,358 $ 71,000,000 8.85% 5.34% 85% LOI Shopping Ce
Slide 15: 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 16: Investment Highlights
INVESTMENT HIGHLIGHTS Necessity-based Retail High Quality Existing Portfolio Improving Capital Position Attractive Niche Market Opportunity Internally-Managed, Scalable Platform
Slide 17: Appendix
Appendix WHEELER REAL ESTATE INVESTMENT TRUST
Slide 18: Property Schedule
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 87.11% $ 936,088 $ 7.27 Amscot Building Tampa, FL 1 2,500 2,500 100.00% 115,849 46.
Slide 19: Debt Profile
Strong lending relationships with nationally recognized banks Expanded revolving credit facility with KeyBank National Association to approximately $67.2 million Senior non-convertible debt paid in full as of January 2016 Weighted average interest rate of 4.68% WHLR’s Debt Profile from Continuing Op
Slide 20: Consolidated Statement of Operations
CONSOLIDATED STATEMENT 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 Provis
Slide 21: Balance Sheet Summary
Balance sheet summary 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 5,485,82
Slide 22: 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 March 2016 Quarterly Report on Form 10-Q. Pro forma AFFO assumes the A-C Portfolio acquisition had occurred on January 1, 2016. Additional
Slide 23: Capital Structure
CAPITAL STRUCTURE March 31, 2015 March 31, 2016 Debt 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 $3,000 Key Bank Line of Credit (2.94%, May-18 Maturity) - $6,87
Slide 24: For Additional Information
NASDAQ: WHLR For Additional Information At the Company: Investor Relations Counsel: The Equity Group Inc. Wilkes Graham Chief Financial Officer wilkes@whlr.us 757-627-9088 Laura Nguyen Director of Capital Markets Lnguyen@whlr.us 757-627-9088 Robin Hanisch Corporate Secretary Robin@whlr.us 757-627-90
Wheeler Real Estate Investment Trust — Investor Presentation (May 2016) on 6ix