Wheeler Real Estate Investment Trust, Inc. · NASDAQ:WHLR
Wheeler Real Estate Investment Trust — Investor Presentation (May 2017)
30 slides from Wheeler Real Estate Investment Trust's investor presentation, May 17, 2017
Slide 1: Wheeler REIT May 2017
NASDAQ: WHLR May 2017 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 $15.8 million Targets grocery-anchored shopping centers in secondary and terti
Slide 4: Key Investment Highlights
Nine Directors – 7 Independent Directors and 2 Non-Independent Directors Representation from Westport Capital Partners as well as former, highly regarded REIT executives KEY INVESTMENT HIGHLIGHTS National and Regional merchants represent majority of Wheeler’s tenants Predominately grocery-anchored p
Slide 5: Management Team
Wilkes Graham Chief Financial Officer Over 17 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 forecasted earnings an
Slide 6: 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 Ability
Slide 7: Earnings Trajectory Including First Look at April 2017
EARNINGS TRAJECTORY INCLUDING FIRST LOOK AT APRIL 2017 Following its $93 Million “re-IPO” in March 2015, Wheeler has made great strides in growth of Adjusted Funds From Operations, or AFFO Through strategic cost-containment initiatives that included reducing third-party services, creating efficienci
Slide 8: Stable Portfolio Focused on Necessity-Based Shopping
STABLE PORTFOLIO FOCUSED ON NECESSITY-BASED SHOPPING Predominantly Grocery-Anchored Portfolio3 Strong Grocer Rent to Sales4 61% 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 9: Operational Expertise: Perimeter Square
OPERATIONAL EXPERTISE PERIMETER SQUARE Location Tulsa, OK Square Feet 58,277 Anchor Aspire Fitness 2016 % Leased 95.1% ABR $733,601 ABR/SF $13.23 Status as of Full Rent Commencement of Aspire Fitness Lease % Leased 85.2% ABR $679,361 ABR/SF $13.68 26,000 square foot anchor tenant, formerly Career Po
Slide 10: Strategic Plan for Anchor Tenant Closures
STRATEGIC PLAN FOR ANCHOR TENANT CLOSURES Southeastern Grocers recently announced a small reduction in its footprint and closed several BI-LO locations Two Wheeler locations located in South Carolina were identified to close by June 2017 All 2017 store closures have been announced by Southeastern Gr
Slide 11: Tenant Overview
Type GLA % of GLA % of Annualized Base Rent Grocery 554,073 11.29 12.38 Grocery 325,576 6.64 6.17 Grocery 136,343 2.78 3.11 Grocery 186,064 3.79 2.97 Grocery 179,175 3.65 2.84 Retail 114,298 2.33 1.55 Grocery 39,946 0.81 1.33 Grocery 54,838 1.12 1.31 Retail 75,291 1.53 1.25 Retail 59,533 1.21 1.08 T
Slide 12: Proven Operating Results
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 Same Store NOI for previous two years is 4.7% for WHLR properties compared to an industry average of 3.1%
Slide 13: Lease Expiration Schedule by Calendar Year
LEASE EXPIRATION SCHEDULE BY CALENDAR YEAR 1.3% of Annualized Base Rent (ABR) is contributed from anchors with leases expiring in 2017 Weighted average remaining lease term of 4.34 years Weighted average remaining lease term for anchor tenants is 4.97 years Anchors defined here as leases comprising
Slide 14: Strong Leasing Trends
STRONG LEASING TRENDS Wheeler has maintained stable occupancy rates – average of 94.6% since the Company’s IPO For the three months ended March 31, 2017, approximately 179,121 square feet was renewed at an average weighted increase of 3.5% over prior rates As of March 31, 2017, average occupancy rat
Slide 15: 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 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-commerce,
Slide 16: Acquisition Strategy
ACQUISITION STRATEGY Well located properties in secondary and tertiary markets High unlevered returns (expected cap rates of ~9%) Focus on dominant multi-tenant grocery-anchored centers with necessity-based inline tenants National & regional tenants High traffic count and ease of access Sale of non-
Slide 17: Property Highlights: Village of Martinsville
PROPERTY HIGHLIGHTS Village of Martinsville Location Martinsville, VA Square Feet 297,950 Purchase Price $23.53 million Anchor Kroger ROE 15.7% Former mall re-developed in 2012 to open-air retail center Kroger lease term through 2022 with upward trending sales High quality, credit tenants Upside pot
Slide 18: Property Highlights: Rivergate Shopping Center
PROPERTY HIGHLIGHTS Rivergate Shopping Center Location Macon, GA Square Feet 205,810 Purchase Price $37.25 million Anchor Publix ROE 12.68% Largest single acquisition to date Desirable location- Approximately 70 miles outside of Atlanta, MSA High credit tenants with strong sales performance Opportun
Slide 19: Dispositions Schedule
DISPOSITIONS SCHEDULE In 3Q15, Wheeler listed 8 free-standing assets for sale as part of its capital recycling program Since then, 6 assets have sold demonstrating cap rate compression in the secondary and tertiary markets while 2 were de-listed due to loan maturities A seventh property is now under
Slide 20: 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 21: Appendix
Appendix WHEELER REAL ESTATE INVESTMENT TRUST
Slide 22: Property Overview
PROPERTY OVERVIEW (as of 3/31/2017) Property Location Number of Tenants Total Leasable Square Feet Percentage Leased (6) Total SF Occupied Percentage Occupied Annualized Base Rent (1) Annualized Base Rent per Occupied Sq. Foot Alex City Marketplace Alexander City, AL 18 147,791 99.2 % 146,591 99.2 %
Slide 23: Property Overview Continued
PROPERTY OVERVIEW CONTINUED (as of 03/31/2017) Property Location Number of Tenants Total Leasable Square Feet Percentage Leased (6) Total SF Occupied Percentage Occupied Annualized Base Rent (1) Annualized Base Rent per Occupied SF Monarch Bank Virginia Beach, VA 1 3,620 100.0 % 3,620 100.0 % 265,79
Slide 24: Non-GAAP Measures
NON-GAAP MEASURES 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). Wheele
Slide 25: Strong lending relationships with nationally recognized banks
Strong lending relationships with nationally recognized banks Revolving credit facility with KeyBank National Association to approximately $75 million in 4Q16 Provision allowing for expansion to $100 million through syndication with other lenders Senior non-convertible debt paid in full as of Januar
Slide 26: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS (Amounts in thousands, except per share amounts) Three Months Ended March 31, (Unaudited) 2017 2016 TOTAL REVENUES $ 14,332 $ 9,138 OPERATING EXPENSES: Property operations 3,994 2,675 Non-REIT management and leasing services 271 377 Depreciation and amortization
Slide 27: Balance Sheet Summary
Balance sheet summary (Amounts in thousands, except per share amounts) March 31, 2017 2016 ASSETS: (Unaudited) Investment properties, net $ 386,704 $ 388,880 Cash and cash equivalents 4,664 4,863 Restricted cash 9,324 9,652 Rents and other tenant receivables, net 3,370 3,984 Related party receivable
Slide 28: FFO and AFFO
FFO and AFFO (Amounts in thousands, except per share amounts) FFO and AFFO Three Months Ended March 31, 2017 2016 Net loss $ (1,160 ) $ (3,562 ) Depreciation of real estate assets 6,400 4,880 Gain on sale of discontinued operations (1,513) — FFO 3,727 1,318 Preferred stock dividends (2,483) (511 ) P
Slide 29: Capital Structure
CAPITAL STRUCTURE March 31, 2017 December 31, 2016 Debt Outstanding ($000) Outstanding ($000) Security Senior Convertible Debt (9% Coupon, Dec-18 Maturity) 1,2 $1,369 $1,400 Key Bank Line of Credit (3.46% @ 03/31/17, 3.24% @ 12/31/16, May-18 Maturity) $68,032 $74,077 Vantage South Line of Credit (4.
Slide 30: Think Retail. Think Wheeler.
NASDAQ: WHLR Think Retail. Think Wheeler.®
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