Wheeler Real Estate Investment Trust, Inc. · NASDAQ:WHLR
Wheeler Real Estate Investment Trust — Investor Presentation (March 2016)
23 slides from Wheeler Real Estate Investment Trust's investor presentation, Mar 9, 2016
Slide 1: March 2016 Investor Presentation
March 2016 NASDAQ: WHLR Exhibit 99.1
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 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 tert
Slide 4: Investment Highlights
Industry leading occupancy rate of approximately 94.2%* 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: Management: 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 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 7: Solid Tenants Focused on Necessity-Based Retail
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
Slide 8: Tenant Overview
TENANT OVERVIEW Top 10 Tenants1 Top tenants represent approximately 41% 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 12/31/2015 Diversifie
Slide 9: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE1 Approximately 80% of total leased square footage expiring in 2018 or beyond Weighted average remaining lease term of 3.9 years Weighted average remaining lease term for grocery anchor tenants is 4.4 years As of 12/31/2015
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 year ended December 31, 2015, approximately 334,928 square feet was renewed at a average weighted increase of 6.9% over prior rates As of December 31, 2015, average occupancy rate o
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 Since the acquisition of Wheeler Development in January 2014, Wheeler has acquired ten unde
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 For the year 2015, the Company closed on fifteen shopping centers for a total acquisition value of approximately $135.7 million at an average cap rate of 8.79%; a weighted average interest rate of 4.34%; and, LTV of 65% In 2015, the Company acquired 4 raw land
Slide 14: Current Pipeline (as of 3/3/2016)
CURRENT PIPELINE (as of 3/3/2016) 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 M
Slide 15: Investment Highlights
INVESTMENT HIGHLIGHTS High Quality Existing Portfolio Attractive Niche Market Opportunity Internally-Managed, Scalable Platform Necessity-based Retail
Slide 16: Appendix
Appendix WHEELER REAL ESTATE INVESTMENT TRUST
Slide 17: Property Overview (as of 12/31/2015)
PROPERTY OVERVIEW (as of 12/31/2015) 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 A
Slide 18: Debt Profile
Strong lending relationships with nationally recognized banks Expanded revolving credit facility with KeyBank National Association for $45 million with an accordion feature for up to $100 million Senior non-convertible debt paid in full as of January 2016 Weighted average interest rate of 4.71% WHLR
Slide 19: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended December 31, Years Ended December 31, 2015 2014 2015 2014 TOTAL REVENUES $ 9,238,609 $ 5,120,784 $ 27,734,205 $ 14,874,093 OPERATING EXPENSES: Property operations 2,832,261 1,270,395 8,351,456 4,123,439 Non-REIT management and leasing services
Slide 20: Balance Sheet Summary
Balance sheet summary December 31, ASSETS: 2015 2014 Investment properties, net $ 238,764,631 $ 128,994,061 Cash and cash equivalents 11,306,185 9,969,748 Rents and other tenant receivables, net 3,452,700 1,978,149 Goodwill 5,485,823 7,004,072 Assets held for sale 1,707,709 27,095,415 Above market l
Slide 21: 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 the Company’s 2015 Annual Report on Form 10-K. Pro forma AFFO assumes the following transactions had occurred on January 1, 2015: (i) the Pier
Slide 22: Capital Structure
CAPITAL STRUCTURE March 31, 2015 December 31, 2015 Debt Outstanding ($000) Outstanding ($000) Security Senior Non-Convertible Debt (9% Coupon, Dec-15 / Jan-16 Maturity)1 $6,160 $2,160 Senior Convertible Debt (9% Coupon, Dec-18 Maturity)2 $3,000 $3,000 Key Bank Line of Credit (2.79%, May-18 Maturity)
Slide 23: 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
Wheeler Real Estate Investment Trust — Investor Presentation (March 2016) on 6ix