Wheeler Real Estate Investment Trust, Inc. · NASDAQ:WHLR
Wheeler Real Estate Investment Trust — Investor Presentation (November 2015)
24 slides from Wheeler Real Estate Investment Trust's investor presentation, Nov 12, 2015
Slide 1: Wheeler Real Estate Investment Trust, November 2015
Exhibit 99.1 November 2015 NASDAQ: WHLR
Slide 2: Safe Harbor
SAFE HARBOR Wheeler Real Estate Investment Trust, Inc. (the ”Company”) considers portions of the information in this presentation to be forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended (
Slide 3: Company Overview
COMPANY OVERVIEW Wheeler is an internally-managed REIT focused on acquiring well-located, necessity-based retail properties Target grocery-anchored shopping centers in secondary and tertiary markets with strong demographics Acquire properties at attractive yields and significant discount to replacem
Slide 4: Investment Highlights: High Quality Existing Portfolio
Industry leading occupancy rate of approximately 94.3%* National and Regional merchants represent majority of Wheeler’s tenants Diversified geography and tenant base INVESTMENT HIGHLIGHTS High Quality Existing Portfolio Wheeler properties serve the essential day-to-day shopping needs of the surround
Slide 5: Experienced Management
Steven M. Belote Chief Financial Officer Wheeler’s Chief Financial Officer since 2011 Prior to joining Wheeler, worked at Shore Bank, as their CFO, playing a significant role in IPO during 1997 Previous experience also includes seven years at BDO Seidman, LLP, a large international public accounting
Slide 6: Growth Story
GROWTH STORY As of September 30, 2015, Wheeler owns 45 properties with GLA of 3,338,858 square feet, and 9 undeveloped land parcels totaling approximately 79.5 acres, 1 28,000 square foot redevelopment property and 1 self-occupied office building Completes IPO, begins trading on NASDAQ Completes a $
Slide 7: Stable Portfolio Focused on Necessity-Based Shopping
STABLE PORTFOLIO FOCUSED ON NECESSITY-BASED SHOPPING Predominantly Grocery-Anchored Portfolio2 Strong Grocer Rent to Sales3 79% 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 8: Tenant Overview
TENANT OVERVIEW Top 10 Tenants1 Top tenants represent approximately 40% of portfolio Tenant concentration expected to be reduced significantly after offering proceeds deployed Focus on tenants that create consistent consumer demand offering items such as food, postal, dry-cleaning, health services a
Slide 9: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE1 Approximately 78% of GLA leased until 2018 or beyond Weighted average remaining lease term of 4.8 years Weighted average remaining lease term for grocery anchor tenants is 6.0 years As of 9/30/2015
Slide 10: Strong Leasing Trends
STRONG LEASING TRENDS Wheeler has maintained stable occupancy rates – average of 94.8% since the Company’s IPO Year to date September 30, 2015, approximately 232,943 square feet was renewed at a average weighted increase of 9.01% As of December 31, 2014, average occupancy rate of U.S. shopping cente
Slide 11: Integrated Platform, Proven Success
Integrated Platform, Proven Success Wheeler has acquisition, leasing, property management, development and re-development services all in–house Over 50 associates Since the acquisition of Wheeler Development in January 2014, Wheeler has acquired ten undeveloped properties totaling approximately 79.5
Slide 12: Case Study: Forrest Gallery - Tullahoma, TN
CASE STUDY: FORREST GALLERY - TULLAHOMA, TN Purchase Price LTV Square Feet Price / Foot Anchor Occupancy Acquisition Cap Rate Cost of Debt Estimated ROE Built $11,500,000 79% 214,451 $54 Kroger 92% 8.8% 5.4% 21.6% 1987 Third-party property purchased in 2013 Tullahoma is ranked as the #1 “micropolita
Slide 13: 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 14: Acquisition Update
ACQUISITION UPDATE Beaver Ruin Village Year to date, the Company has closed on fifteen shopping centers for a total acquisition value of approximately $137.5 million at an average cap rate of 8.79%; an average interest rate of 4.25%; and, LTV of 55.5% In 2015, the Company acquired 4 raw land parcels
Slide 15: Current Pipeline (as of 09/30/2015)
CURRENT PIPELINE (as of 09/30/2015) Status Property Name Location Square Footage Anchor Price Cap Interest Rate LTV CLOSED Pierpont Center Morgantown, WV 122,259 Shop n Save $ 13,885,000 9.23% 4.15% 71% Alex Marketplace Alexander City, AL 147,791 Winn Dixie $ 10,250,000 8.99% 3.95% 56% Butler Square
Slide 16: Investment Highlights
INVESTMENT HIGHLIGHTS High Quality Existing Portfolio Attractive Niche Market Opportunity Internally-Managed, Scalable Platform Necessity-based Retail
Slide 17: Appendix
Appendix WHEELER REAL ESTATE INVESTMENT TRUST
Slide 18: Property Overview (as of 9/30/2015)
PROPERTY OVERVIEW (as of 9/30/2015) Riversedge North is Company’s corporate office. Undeveloped/redevelopment property 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 Al
Slide 19: Debt Profile
Strong lending relationships with nationally recognized banks; strong capital position expected to significantly improve bargaining power Expanded revolving credit facility with KeyBank National Association for $45 million with an accordion feature for up to $100 million Weighted average interest ra
Slide 20: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (unaudited) TOTAL REVENUES $ 7,167,213 $ 3,506,414 $ 18,213,885 $ 9,479,342 OPERATING EXPENSES: Property operations 2,094,054 1,101,006 5,474,129 2,819,618 Non-REIT management an
Slide 21: Consolidated Balance Sheet
September 30, 2015 December 31, 2014 (unaudited) ASSETS: Investment properties, net $ 236,163,266 $ 127,140,394 Cash and cash equivalents 7,993,293 9,969,748 Rents and other tenant receivables, net 2,143,239 1,874,084 Goodwill 5,485,823 7,004,072 Assets held for sale 30,831,841 29,093,364 Above mark
Slide 22: FFO and Core FFO
FFO and CORE FFO Other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Company’s September 2015 Quarterly Report on Form 10-Q. Pro forma AFFO assumes the following transactions had occurred on January 1, 2
Slide 23: Capital Structure
CAPITAL STRUCTURE March 31, 2015 September 30, 2015 Debt Outstanding ($000) Outstanding ($000) Security Senior Non-Convertible Debt (9% Coupon, Dec-15 / Jan-16 Maturity)1 $6,160 $6,160 Senior Convertible Debt (9% Coupon, Dec-18 Maturity)2 $3,000 $3,000 Property Debt (4.74%/4.60% Weighted Average Cou
Slide 24: For Additional Information
NASDAQ: WHLR For Additional Information At the Company: Investor Relations Counsel: The Equity Group Inc. Robin Hanisch Corporate Secretary Robin@whlr.us 757-627-9088 Laura Nguyen Director of Capital Markets Laura@whlr.us 757-627-9088 Terry Downs Associate TDowns@equityny.com 212-836-9615 Adam Prior
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