EX-99.2 3 ex992supplementaloperating.htm EXHIBIT 99.2 12.31.17 SUPPLEMENTAL OPERATING AND FINANCIAL DISCLOSURE Exhibit
Exhibit 99.2

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Supplemental Operating and Financial Data
for the three months and year ended December 31, 2017


Table of Contents
 
 
Page
Company Overview
Financial and Portfolio Overview
Financial Summary
 
Consolidated Balance Sheets
Consolidated Statements of Operations
Reconciliation of Non-GAAP Measures
Debt Summary
Portfolio Summary
 
Property Summary
Top Ten Tenants by Annualized Base Rent
Leasing Summary
15
Definitions



Forward-Looking Statements

This document contains forward-looking statements that are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks include, without limitation: adverse economic or real estate developments in the retail industry or the markets in which Wheeler Real Estate Investment Trust, Inc. operates; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; Wheeler Real Estate Investment Trust, Inc.'s failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; Wheeler Real Estate Investment Trust, Inc.'s inability to successfully complete real estate acquisitions or successfully operate acquired properties and Wheeler Real Estate Investment Trust, Inc.'s failure to qualify or maintain its status as a REIT. For a further list and description of such risks and uncertainties that could impact Wheeler Real Estate Investment Trust, Inc.'s future results, performance or transactions, see the reports filed by Wheeler Real Estate Investment Trust, Inc. with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and annual reports on Form 10-K. Wheeler Real Estate Investment Trust, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
2


Company Overview
Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing retail properties with a primary focus on grocery-anchored centers. Wheeler’s portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk-adjusted returns, with a particular emphasis on grocery-anchored retail centers. Wheeler’s common stock, Series B convertible preferred stock, Series D cumulative convertible preferred stock and common stock warrants trade publicly on the Nasdaq under the symbols “WHLR”, “WHLRP”, "WHLRD" and “WHLRW”, respectively.
Corporate Headquarters
 
Wheeler Real Estate Investment Trust, Inc.
 
Riversedge North
 
2529 Virginia Beach Boulevard
Virginia Beach, VA 23452
 
Phone: (757) 627-9088
Toll Free: (866) 203-4864
 
Website: www.whlr.us
 
 
 
 
 
Executive Management
 
David Kelly - President & CEO
 
Matthew T. Reddy - CFO
 
M. Andrew Franklin - COO
 
 
 
Board of Directors
 
Stewart J. Brown
William W. King
Kurt R. Harrington
Carl B. McGowan, Jr.
David Kelly
John P. McAuliffe
John W. Sweet
Jeffrey M. Zwerdling
 
 
 
 
Investor Relations Contact
Transfer Agent and Registrar
Mary Jensen investorrelations@whlr.us
2529 Virginia Beach Boulevard
Virginia Beach, VA 23452
Phone: (757) 627-9088
www.whlr.us
Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
www.computershare.com


Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
3


Financial and Portfolio Overview
For the Three Months Ended December 31, 2017
Financial Results
 
Net loss attributable to Wheeler REIT common shareholders (in 000s)
$
(10,696
)
Net loss per basic and diluted shares
$
(1.22
)
Funds from operations available to common shareholders and Operating Partnership (OP) unitholders (FFO) (in 000s) (1)
$
(5,235
)
FFO per common share and OP unit
$
(0.56
)
Adjusted FFO (AFFO) (in 000s) (1)
$
1,708

AFFO per common share and OP unit
$
0.18

 
 
Assets and Leverage
 
Investment Properties, net of $31.05 million accumulated depreciation (in 000s)
$
384,334

Cash and Cash Equivalents (in 000s)
$
3,677

Total Assets (in 000s)
$
457,674

Debt to Total Assets
68.56
%
Debt to Gross Asset Value
62.85
%
 
 
Market Capitalization
 
Common shares outstanding
8,744,189

OP units outstanding
635,018

Total common shares and OP units
9,379,207

 
Shares Outstanding at December 31, 2017
 
Fourth Quarter stock price range
 
Stock price as of December 31, 2017
Common Stock
8,744,189

 
$8.18 - $12.30
 
$
9.98

Series B preferred shares
1,875,848

 
$17.69 - $22.65
 
$
21.89

Series D preferred shares
2,237,000

 
$19.02 - $22.84
 
$
20.10

Total debt (in 000s)
$
313,778

Common Stock market capitalization (as of December 31, 2017 closing stock price, in 000s)
$
87,267

 
 
Portfolio Summary
 
Total Leasable Area (GLA) in sq. ft.
4,902,381

Occupancy Rate
91.9
%
Leased Rate (2)
92.8
%
Annualized Base Rent (in 000s)
$
42,971

Total number of leases signed or renewed during the fourth quarter of 2017
33

Total sq. ft. leases signed or renewed during the fourth quarter of 2017
119,404


(1)    See page 18 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2)    Reflects leases executed through January 10, 2018 that commence subsequent to the end of current period.

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
4



Consolidated Balance Sheets
$ in 000s
 
December 31,
2017
 
December 31,
2016
ASSETS:
 
 
 
Investment properties, net
$
384,334

 
$
388,880

Cash and cash equivalents
3,677

 
4,863

Restricted cash
8,609

 
9,652

Rents and other tenant receivables, net
5,619

 
3,984

Related party receivable, net
—

 
1,456

Notes receivable
6,739

 
12,000

Goodwill
5,486

 
5,486

Assets held for sale
—

 
366

Above market lease intangible, net
8,778

 
12,962

Deferred costs and other assets, net
34,432

 
49,397

Total Assets
$
457,674

 
$
489,046

LIABILITIES:
 
 
 
Loans payable, net
$
308,122

 
$
305,973

Liabilities associated with assets held for sale
—

 
1,350

Below market lease intangible, net
9,616

 
12,680

Accounts payable, accrued expenses and other liabilities
10,624

 
7,735

Dividends payable
5,480

 
3,586

Total Liabilities
333,842

 
331,324

Commitments and contingencies
—

 
—

Series D Cumulative Convertible Preferred Stock (no par value, 4,000,000 shares authorized, 2,237,000 shares issued and outstanding; $55.93 million aggregate liquidation preference)
53,236

 
52,530

EQUITY:
 
 
 
Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding)
453

 
453

Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 1,875,848 and 1,871,244 shares issued and outstanding, respectively; $46.90 million and $46.78 million aggregate liquidation preference, respectively)
40,915

 
40,733

Common Stock ($0.01 par value, 18,750,000 shares authorized, 8,744,189 and 8,503,819 shares issued and outstanding, respectively)
87

 
85

Additional paid-in capital
226,978

 
223,939

Accumulated deficit
(204,925
)
 
(170,377
)
Total Shareholders’ Equity
63,508

 
94,833

Noncontrolling interests
7,088

 
10,359

Total Equity
70,596

 
105,192

Total Liabilities and Equity
$
457,674

 
$
489,046


Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
5


Consolidated Statements of Operations
$ in 000s
 
Three Months Ended
December 31,
 
Years Ended
December 31,
 
2017
 
2016
 
2017
 
2016
TOTAL REVENUES
$
14,296

 
$
12,027

 
$
58,535

 
$
44,160

OPERATING EXPENSES:
 
 
 
 
 
 
 
Property operations
3,922

 
3,399

 
15,389

 
11,898

Non-REIT management and leasing services
(598
)
 
215

 
927

 
1,567

Depreciation and amortization
5,776

 
5,331

 
26,231

 
20,637

Provision for credit losses
2,378

 
229

 
2,821

 
425

Impairment of notes receivable
5,261

 
—

 
5,261

 
—

Corporate general & administrative
2,509

 
3,633

 
7,364

 
9,924

Total Operating Expenses
19,248

 
12,807

 
57,993

 
44,451

Operating Income (Loss)
(4,952
)
 
(780
)
 
542

 
(291
)
Gain on disposal of properties
—

 
—

 
1,021

 
—

Interest income
363

 
391

 
1,443

 
692

Interest expense
(4,168
)
 
(3,555
)
 
(17,165
)
 
(13,356
)
Net Loss from Continuing Operations Before Income Taxes
(8,757
)
 
(3,944
)
 
(14,159
)
 
(12,955
)
Income tax expense
38

 
(107
)
 
(137
)
 
(107
)
Net Loss from Continuing Operations
(8,719
)
 
(4,051
)
 
(14,296
)
 
(13,062
)
Discontinued Operations
 
 
 
 
 
 
 
Income from discontinued operations
—

 
21

 
16

 
136

(Loss) gain on disposal of properties
—

 
(1
)
 
1,502

 
688

Net Income from Discontinued Operations
—

 
20

 
1,518

 
824

Net Loss
(8,719
)
 
(4,031
)
 
(12,778
)
 
(12,238
)
Less: Net loss attributable to noncontrolling interests
(519
)
 
(267
)
 
(684
)
 
(1,035
)
Net Loss Attributable to Wheeler REIT
(8,200
)
 
(3,764
)
 
(12,094
)
 
(11,203
)
Preferred stock dividends
(2,496
)
 
(2,450
)
 
(9,969
)
 
(4,713
)
Net Loss Attributable to Wheeler REIT Common Shareholders
$
(10,696
)
 
$
(6,214
)
 
$
(22,063
)
 
$
(15,916
)
 
 
 
 
 
 
 
 
Loss per share from continuing operations (basic and diluted)
$
(1.22
)
 
$
(0.73
)
 
$
(2.70
)
 
$
(1.98
)
Income per share from discontinued operations
—

 
—

 
0.16

 
0.09

 
$
(1.22
)
 
$
(0.73
)
 
$
(2.54
)
 
$
(1.89
)
Weighted-average number of shares:
 
 
 
 
 
 
 
Basic and Diluted
8,739,455

 
8,497,738

 
8,654,240

 
8,420,374



Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
6


Reconciliation of Non-GAAP Measures (1) 

FFO and AFFO
$ in 000s

 
Three Months Ended
December 31,
 
Years Ended
December 31,
 
2017
 
2016
 
2017
 
2016
Net Loss
$
(8,719
)
 
$
(4,031
)
 
$
(12,778
)
 
$
(12,238
)
Depreciation and amortization of real estate assets
5,776

 
5,331

 
26,231

 
20,637

Gain on disposal of properties
—

 
—

 
(1,021
)
 
—

Loss (gain) on disposal of properties-discontinued operations
—

 
1

 
(1,502
)
 
(688
)
FFO
(2,943
)
 
1,301

 
10,930

 
7,711

Preferred stock dividends
(2,496
)
 
(2,450
)
 
(9,969
)
 
(4,713
)
Preferred stock accretion adjustments
204

 
162

 
809

 
417

FFO available to common shareholders and common unitholders
(5,235
)
 
(987
)
 
1,770

 
3,415

Impairment of notes receivable
5,261

 
—

 
5,261

 
—

Acquisition costs
269

 
1,115

 
1,101

 
2,029

Capital related costs
195

 
203

 
663

 
514

Other non-recurring and non-cash expenses (2)
117

 
158

 
294

 
664

Share-based compensation
135

 
872

 
870

 
1,454

Straight-line rent
(146
)
 
(163
)
 
(712
)
 
(386
)
Loan cost amortization
578

 
662

 
3,087

 
2,126

Accrued interest income
774

 
(121
)
 
415

 
(415
)
Above (below) market lease amortization
5

 
(40
)
 
453

 
29

Recurring capital expenditures and tenant improvement reserves
(245
)
 
(246
)
 
(941
)
 
(760
)
AFFO
$
1,708

 
$
1,453

 
$
12,261

 
$
8,670

 
 
 
 
 
 
 
 
Weighted Average Common Shares
8,739,455

 
8,497,738

 
8,654,240

 
8,420,374

Weighted Average Common Units
639,555

 
743,274

 
702,168

 
689,162

Total Common Shares and Units
9,379,010

 
9,241,012

 
9,356,408

 
9,109,536

FFO per Common Share and Common Units
$
(0.56
)
 
$
(0.11
)
 
$
0.19

 
$
0.37

AFFO per Common Share and Common Units
$
0.18

 
$
0.16

 
$
1.31

 
$
0.95

(1)
See page 18 for the Company's definition of this non-GAAP measurement and reasons for using it.
(2)
Other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2017.







Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
7


Reconciliation of Non-GAAP Measures (continued)
Property Net Operating Income
$ in 000s
 
 
Three Months Ended
December 31,
 
Years Ended
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net Loss
 
$
(8,719
)
 
$
(4,031
)
 
$
(12,778
)
 
$
(12,238
)
Adjustments:
 
 
 
 
 
 
 
 
Net Income from Discontinued Operations
 
—

 
(20
)
 
(1,518
)
 
(824
)
Income tax expense
 
(38
)
 
107

 
137

 
107

Interest expense
 
4,168

 
3,555

 
17,165

 
13,356

Interest income
 
(363
)
 
(391
)
 
(1,443
)
 
(692
)
Loss (gain) on disposal of properties
 
—

 
—

 
(1,021
)
 
—

Corporate general & administrative
 
2,509

 
3,633

 
7,364

 
9,924

Provision for credit losses
 
2,378

 
229

 
2,821

 
425

Impairment of notes receivable
 
5,261

 
—

 
5,261

 
—

Depreciation and amortization
 
5,776

 
5,331

 
26,231

 
20,637

Non-REIT management and leasing services
 
(598
)
 
215

 
927

 
1,567

Development income
 
(83
)
 
(75
)
 
(537
)
 
(244
)
Asset management and commission revenues
 
(261
)
 
(362
)
 
(1,826
)
 
(1,819
)
Property Net Operating Income
 
$
10,030

 
$
8,191

 
$
40,783

 
$
30,199

 
 
 
 
 
 
 
 
 
Property revenues
 
$
13,952

 
$
11,590

 
$
56,172

 
$
42,097

Property expenses
 
3,922

 
3,399

 
15,389

 
11,898

Property Net Operating Income
 
$
10,030

 
$
8,191

 
$
40,783

 
$
30,199





















Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
8


Reconciliation of Non-GAAP Measures (continued)
EBITDA
$ in 000s
 
Three Months Ended
December 31,
 
Years Ended
December 31,
 
2017
 
2016
 
2017
 
2016
Net Loss
$
(8,719
)
 
$
(4,031
)
 
$
(12,778
)
 
$
(12,238
)
Add back:
Depreciation and amortization (1)
5,781

 
5,291

 
26,684

 
20,666

 
Interest Expense (2)
4,168

 
3,568

 
17,174

 
13,425

 
Income taxes
(38
)
 
107

 
137

 
107

EBITDA
1,192

 
4,935

 
31,217

 
21,960

Adjustments for items affecting comparability:
 
 
 
 
 
 
 
 
Acquisition costs
269

 
1,115

 
1,101

 
2,029

 
Capital related costs
195

 
203

 
663

 
514

 
Other non-recurring expenses (3)
117

 
158

 
294

 
664

 
Impairment of notes receivable
5,261

 
—

 
5,261

 
—

 
Gain on disposal of properties
—

 
—

 
(1,021
)
 
—

 
Loss (gain) on disposal of properties-discontinued operations
—

 
1

 
(1,502
)
 
(688
)
Adjusted EBITDA
$
7,034

 
$
6,412

 
$
36,013

 
$
24,479

(1)
Includes above (below) market lease amortization.
(2)
Includes loan cost amortization and amounts associated with assets held for sale.
(3)
Other non-recurring expenses are detailed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the period ended December 31, 2017.

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
9


Debt Summary as of December 31, 2017
Loans Payable:
$313.78 million
Weighted Average Interest Rate:
4.59%
Total Debt to Total Assets:
68.56%
Property/Description
 
Monthly Payment
 
Interest Rate
 
Maturity
 
December 31, 2017
 
December 31, 2016
 
 
 
 
 
 
 
 
($ in 000s)
 Bank Line of Credit
 
Interest only

 
Libor + 300 basis points

 
December 2017 (2)
 
$
3,000

 
$
3,000

 Columbia Fire Station
 
 Interest only

 
8.00
%
 
December 2017
 
—

 
487

 Shoppes at Eagle Harbor
 
$
25,100

 
4.34
%
 
March 2018
 
3,341

 
3,492

 Revere Loan
 
Interest only

 
8.00
%
 
April 2018
 
6,808

 
7,450

 Lumber River
 
Interest only

 
Libor + 295 basis points

 
June 2018
 
1,500

 
1,500

 KeyBank Line of Credit
 
Interest only

 
Libor + 250 basis points

 
July 2018
 
15,532

 
74,077

 Senior convertible notes
 
Interest only

 
9.00
%
 
December 2018
 
1,369

 
1,400

 Harbor Point
 
$
11,024

 
5.85
%
 
December 2018
 
553

 
649

 Perimeter Square
 
Interest only

 
5.50
%
 
December 2018
 
5,382

 
4,500

 Riversedge North
 
$
8,802

 
6.00
%
 
January 2019
 
863

 
914

 Monarch Bank Building
 
$
7,340

 
4.85
%
 
June 2019
 
1,266

 
1,320

 DF I-Moyock
 
$
10,665

 
5.00
%
 
July 2019
 
194

 
309

 Rivergate
 
Interest only

 
Libor + 295 basis points

 
December 2019
 
22,689

 
24,213

 KeyBank Line of Credit
 
Interest only

 
Libor + 250 basis points

 
December 2019
 
52,500

 
—

 LaGrange Marketplace
 
$
15,065

 
Libor + 375 basis points

 
March 2020
 
2,317

 
2,369

 Folly Road
 
Interest only

 
4.00
%
 
March 2020
 
6,181

 
—

 Columbia Fire Station construction loan
 
Interest only

 
4.00
%
 
May 2020
 
3,421

 
—

 Shoppes at TJ Maxx
 
$
33,880

 
3.88
%
 
May 2020
 
5,727

 
5,908

 Walnut Hill Plaza
 
Interest only

 
5.50
%
 
September 2022
 
3,903

 
3,440

 Twin City Commons
 
$
17,827

 
4.86
%
 
January 2023
 
3,111

 
3,170

 Tampa Festival
 
$
50,797

 
5.56
%
 
September 2023
 
8,368

 
8,502

 Forrest Gallery
 
$
50,973

 
5.40
%
 
September 2023
 
8,669

 
8,802

 South Carolina Food Lions Note
 
$
68,320

 
5.25
%
 
January 2024
 
12,050

 
12,224

 Cypress Shopping Center
 
$
34,360

 
4.70
%
 
July 2024
 
6,485

 
6,585

 Port Crossing
 
$
34,788

 
4.84
%
 
August 2024
 
6,263

 
6,370

 Freeway Junction
 
$
41,798

 
4.60
%
 
September 2024
 
7,994

 
8,119

 Harrodsburg Marketplace
 
$
19,112

 
4.55
%
 
September 2024
 
3,553

 
3,617

 Graystone Crossing
 
$
20,386

 
4.55
%
 
October 2024
 
3,928

 
3,990

 Bryan Station
 
$
23,489

 
4.52
%
 
November 2024
 
4,547

 
4,619

 Crockett Square
 
Interest only

 
4.47
%
 
December 2024
 
6,338

 
6,338

 Pierpont Centre (1)
 
 Interest only

 
4.15
%
 
February 2025
 
8,113

 
9,800

 Alex City Marketplace
 
 Interest only

 
3.95
%
 
April 2025
 
5,750

 
5,750

 Butler Square
 
 Interest only

 
3.90
%
 
May 2025
 
5,640

 
5,640

 Brook Run Shopping Center
 
 Interest only

 
4.08
%
 
June 2025
 
10,950

 
10,950

 Beaver Ruin Village I and II
 
 Interest only

 
4.73
%
 
July 2025
 
9,400

 
9,400

 Sunshine Shopping Plaza
 
 Interest only

 
4.57
%
 
August 2025
 
5,900

 
5,900

 Barnett Portfolio
 
 Interest only

 
4.30
%
 
September 2025
 
8,770

 
8,770

 Fort Howard Shopping Center
 
 Interest only

 
4.57
%
 
October 2025
 
7,100

 
7,100

 Conyers Crossing
 
 Interest only

 
4.67
%
 
October 2025
 
5,960

 
5,960

 Grove Park Shopping Center
 
 Interest only

 
4.52
%
 
October 2025
 
3,800

 
3,800

 Parkway Plaza
 
 Interest only

 
4.57
%
 
October 2025
 
3,500

 
3,500

 Winslow Plaza
 
Interest only

 
4.82
%
 
December 2025
 
4,620

 
4,620

 Chesapeake Square
 
$
23,857

 
4.70
%
 
August 2026
 
4,507

 
4,578

Berkley/Sangaree/Tri-County
 
Interest only

 
4.78
%
 
December 2026
 
9,400

 
9,400

 Riverbridge
 
Interest only

 
4.48
%
 
December 2026
 
4,000

 
4,000

 Franklin
 
Interest only

 
4.93
%
 
January 2027
 
8,516

 
8,516

Total Principal Balance
 
 
 
 
 
 
 
313,778

 
315,048

Unamortized debt issuance cost
 
 
 
 
 
(5,656
)
 
(7,725
)
Total Loans Payable
 
 
 
 
 
 
 
$
308,122

 
$
307,323

(1) Includes debt associated with assets held for sale.
(2) On January 10, 2018, the Company extended the $3.00 million bank line of credit to June 15, 2018 with interest only payments due monthly at a rate of Libor + 3.00% with a floor of 4.25%.



Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
10


Debt Summary as of December 31, 2017 (continued)

Total Debt
$ in 000s
Scheduled principal repayments and maturities by year
 
Amount
 
% Total Principal Payments and Maturities
December 31, 2018
 
$
39,807

 
12.69
%
December 31, 2019
 
78,576

 
25.04
%
December 31, 2020
 
18,531

 
5.91
%
December 31, 2021
 
1,907

 
0.61
%
December 31, 2022
 
5,534

 
1.76
%
Thereafter
 
169,423

 
53.99
%
Total principal repayments and maturities
 
$
313,778

 
100.00
%
 
 
 
 
 



Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
11


Portfolio Summary as of December 31, 2017
Property
 
Location
 
Number of
Tenants (1)
Total Leasable
Square Feet
Percentage
Leased (1)
Percentage Occupied
Total SF Occupied
Annualized
Base Rent (2)
Annualized Base Rent per Occupied Sq. Foot
Alex City Marketplace
 
 Alexander City, AL
 
18

147,791

99.2
%
99.2
%
146,591

$
1,133,080

$
7.73

Amscot Building (3)
 
 Tampa, FL
 
1

2,500

100.0
%
100.0
%
2,500

115,849

46.34

Beaver Ruin Village
 
 Lilburn, GA
 
27

74,038

84.0
%
84.0
%
62,191

1,065,286

17.13

Beaver Ruin Village II
 
 Lilburn, GA
 
4

34,925

100.0
%
100.0
%
34,925

416,584

11.93

Berkley (4)
 
 Norfolk, VA
 
—

—

—
%
—
%
—

—

—

Berkley Shopping Center
 
 Norfolk, VA
 
10

47,945

91.7
%
91.7
%
43,940

340,560

7.75

Brook Run Shopping Center
 
 Richmond, VA
 
19

147,738

92.1
%
92.1
%
136,102

1,511,306

11.10

Brook Run Properties (4)
 
 Richmond, VA
 
—

—

—
%
—
%
—

—

—

Bryan Station
 
 Lexington, KY
 
10

54,397

99.8
%
99.8
%
54,277

582,113

10.72

Butler Square
 
 Mauldin, SC
 
16

82,400

98.2
%
98.2
%
80,950

804,183

9.93

Cardinal Plaza
 
 Henderson, NC
 
7

50,000

94.0
%
94.0
%
47,000

447,350

9.52

Chesapeake Square
 
 Onley, VA
 
13

99,848

79.5
%
79.5
%
79,414

679,232

8.55

Clover Plaza
 
 Clover, SC
 
9

45,575

100.0
%
100.0
%
45,575

354,044

7.77

Columbia Fire Station (6)
 
 Columbia, SC
 
—

—

—
%
—
%
—

—

—

Conyers Crossing
 
 Conyers, GA
 
15

170,475

100.0
%
100.0
%
170,475

1,004,179

5.89

Courtland Commons (4)
 
 Courtland, VA
 
—

—

—
%
—
%
—

—

—

Crockett Square
 
 Morristown, TN
 
4

107,122

100.0
%
100.0
%
107,122

920,322

8.59

Cypress Shopping Center
 
 Boiling Springs, SC
 
17

80,435

98.3
%
98.3
%
79,035

865,610

10.95

Darien Shopping Center
 
 Darien, GA
 
1

26,001

100.0
%
100.0
%
26,001

208,008

8.00

Devine Street
 
 Columbia, SC
 
2

38,464

100.0
%
100.0
%
38,464

318,500

8.28

Edenton Commons (4)
 
 Edenton, NC
 
—

—

—
%
—
%
—

—

—

Folly Road
 
 Charleston, SC
 
6

47,794

100.0
%
100.0
%
47,794

721,552

15.10

Forrest Gallery
 
 Tullahoma, TN
 
28

214,451

95.3
%
95.3
%
204,369

1,366,992

6.69

Fort Howard Shopping Center
 
 Rincon, GA
 
17

113,652

75.1
%
75.1
%
85,344

728,150

8.53

Freeway Junction
 
 Stockbridge, GA
 
15

156,834

96.9
%
96.9
%
151,959

1,120,756

7.38

Franklin Village
 
 Kittanning, PA
 
29

151,673

100.0
%
100.0
%
151,673

1,203,743

7.94

Franklinton Square
 
 Franklinton, NC
 
14

65,366

93.0
%
93.0
%
60,800

541,086

8.90

Georgetown
 
 Georgetown, SC
 
2

29,572

100.0
%
100.0
%
29,572

267,215

9.04

Graystone Crossing
 
 Tega Cay, SC
 
11

21,997

100.0
%
100.0
%
21,997

537,329

24.43

Grove Park
 
 Orangeburg, SC
 
14

106,557

86.9
%
86.9
%
92,615

704,674

7.61

Harbor Point (4)
 
 Grove, OK
 
—

—

—
%
—
%
—

—

—

Harrodsburg Marketplace
 
 Harrodsburg, KY
 
9

60,048

100.0
%
100.0
%
60,048

401,440

6.69

Jenks Plaza
 
 Jenks, OK
 
4

7,800

64.1
%
64.1
%
5,000

101,764

20.35

Laburnum Square
 
 Richmond, VA
 
21

109,405

100.0
%
100.0
%
109,405

978,186

8.94

Ladson Crossing
 
 Ladson, SC
 
14

52,607

95.4
%
95.4
%
50,207

739,374

14.73

LaGrange Marketplace
 
 LaGrange, GA
 
14

76,594

95.3
%
95.3
%
72,994

385,743

5.28

Lake Greenwood Crossing
 
 Greenwood, SC
 
6

47,546

87.4
%
87.4
%
41,546

409,417

9.85

Lake Murray
 
 Lexington, SC
 
5

39,218

100.0
%
100.0
%
39,218

352,185

8.98

Laskin Road (4)
 
 Virginia Beach, VA
 
—

—

—
%
—
%
—

—

—

Litchfield Market Village
 
 Pawleys Island, SC
 
17

86,740

83.8
%
83.8
%
72,663

1,088,817

14.98

Lumber River Village
 
 Lumberton, NC
 
10

66,781

96.4
%
96.4
%
64,381

483,813

7.51

Monarch Bank
 
 Virginia Beach, VA
 
1

3,620

100.0
%
100.0
%
3,620

126,702

35.00

Moncks Corner
 
 Moncks Corner, SC
 
1

26,800

100.0
%
100.0
%
26,800

323,451

12.07

Nashville Commons
 
 Nashville, NC
 
12

56,100

99.9
%
99.9
%
56,050

585,453

10.45

New Market Crossing
 
 Mt. Airy, NC
 
13

116,976

96.1
%
96.1
%
112,368

966,962

8.61

Parkway Plaza
 
 Brunswick, GA
 
4

52,365

81.7
%
81.7
%
42,785

488,280

11.41

Perimeter Square
 
 Tulsa, OK
 
8

58,277

85.2
%
51.8
%
30,162

374,167

12.41

Pierpont Centre
 
 Morgantown, WV
 
17

122,259

89.3
%
89.3
%
109,203

1,294,431

11.85

Port Crossing
 
 Harrisonburg, VA
 
9

65,365

97.9
%
97.9
%
64,000

806,576

12.60

Ridgeland
 
 Ridgeland, SC
 
1

20,029

100.0
%
100.0
%
20,029

140,203

7.00

Riverbridge Shopping Center
 
 Carrollton, GA
 
11

91,188

98.5
%
98.5
%
89,788

682,628

7.60

Riversedge North (5)
 
 Virginia Beach, VA
 
—

—

—
%
—
%
—

—

—

Rivergate Shopping Center
 
 Macon, GA
 
30

201,680

96.6
%
96.6
%
194,819

2,753,254

14.13

Sangaree Plaza
 
 Summerville, SC
 
8

66,948

87.4
%
87.4
%
58,498

538,060

9.20



Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
12


Portfolio Summary as of December 31, 2017, (continued)
Property
 
Location
 
Number of
Tenants (1)
Total Leasable
Square Feet
Percentage
Leased (1)
Occupied Square Foot Percentage
Total SF Occupied
Annualized
Base Rent (2)
Annualized Base Rent per Occupied Sq. Foot
Shoppes at Myrtle Park
 
 Bluffton, SC
 
12

56,380

75.4
%
32.8
%
18,480

$
366,347

$
19.82

Shoppes at TJ Maxx
 
 Richmond, VA
 
18

93,624

100.0
%
100.0
%
93,624

1,124,749

12.01

South Lake
 
 Lexington, SC
 
10

44,318

100.0
%
100.0
%
44,318

278,550

6.29

South Park
 
 Mullins, SC
 
2

60,734

71.2
%
71.2
%
43,218

491,245

11.37

South Square
 
 Lancaster, SC
 
4

44,350

70.8
%
70.8
%
31,400

256,255

8.16

St. George Plaza
 
 St. George, SC
 
3

59,279

62.0
%
62.0
%
36,768

273,786

7.45

St. Matthews
 
 St. Matthews, SC
 
5

29,015

87.2
%
87.2
%
25,314

307,693

12.16

Sunshine Plaza
 
 Lehigh Acres, FL
 
19

111,189

91.1
%
91.1
%
101,343

911,068

8.99

Surrey Plaza
 
 Hawkinsville, GA
 
5

42,680

100.0
%
100.0
%
42,680

286,245

6.71

Tampa Festival
 
 Tampa, FL
 
19

137,987

98.8
%
98.8
%
136,387

1,266,566

9.29

The Shoppes at Eagle Harbor
 
 Carrollton, VA
 
7

23,303

100.0
%
100.0
%
23,303

456,737

19.60

Tri-County Plaza
 
 Royston, GA
 
6

67,577

89.2
%
89.2
%
60,277

431,969

7.17

Tulls Creek (4)
 
 Moyock, NC
 
—

—

—
%
—
%
—

—

—

Twin City Commons
 
 Batesburg-Leesville, SC
 
5

47,680

100.0
%
100.0
%
47,680

454,315

9.53

Village of Martinsville
 
 Martinsville, VA
 
18

297,950

96.1
%
96.1
%
286,431

2,218,658

7.75

Walnut Hill Plaza
 
 Petersburg, VA
 
8

87,239

65.0
%
65.0
%
56,737

447,119

7.88

Waterway Plaza
 
 Little River, SC
 
10

49,750

100.0
%
100.0
%
49,750

418,228

8.41

Westland Square
 
 West Columbia, SC
 
9

62,735

77.1
%
77.1
%
48,380

443,952

9.18

Winslow Plaza
 
 Sicklerville, NJ
 
15

40,695

89.9
%
89.9
%
36,600

558,894

15.27

Total Portfolio
 
 
 
699

4,902,381

92.8
%
91.9
%
4,506,959

$
42,970,985

$
9.53

(1) Reflects leases executed through January 10, 2018 that commence subsequent to the end of the current period.
(2) Annualized based rent per occupied square foot, assumes base rent as of the end of the current reporting period, excludes the impact of tenant concessions and rent abatements.
(3) We own the Amscot building, but we do not own the land underneath the buildings and instead lease the land pursuant to ground leases with parties
that are affiliates of our former CEO, Jon Wheeler. As discussed in the financial statements, these ground leases require us to make annual rental payments
and contain escalation clauses and renewal options.
(4) This information is not available because the property is undeveloped.
(5) This property is our corporate headquarters that we 100% occupy.
(6) This information is not available because the property is a redevelopment property.

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
13


Top Ten Tenants by Annualized Base Rent as of December 31, 2017

Total Tenants : 699
Tenants
 
Annualized Base Rent
($ in 000s)
 
% of Total Annualized Base Rent
 
Total Occupied Square Feet
 
Percent Total Leasable Square Foot
 
Base Rent Per Occupied Square Foot
1. BI-LO (1)
 
$
4,829

 
11.24
%
 
516,173

 
10.53
%
 
$
9.36

2.    Food Lion
 
2,691

 
6.26
%
 
325,576

 
6.64
%
 
8.27

3.    Kroger (2)
 
1,309

 
3.05
%
 
186,064

 
3.80
%
 
7.04

4.    Winn Dixie (1)
 
1,031

 
2.40
%
 
133,575

 
2.72
%
 
7.72

5.    Piggly Wiggly
 
978

 
2.28
%
 
136,343

 
2.78
%
 
7.17

6.    Hobby Lobby
 
675

 
1.57
%
 
114,298

 
2.33
%
 
5.91

7.    Harris Teeter (2)
 
578

 
1.35
%
 
39,946

 
0.81
%
 
14.47

8.    Lowes Foods
 
571

 
1.33
%
 
54,838

 
1.12
%
 
10.41

9.    Family Dollar
 
548

 
1.28
%
 
75,291

 
1.54
%
 
7.28

10.    Goodwill
 
538

 
1.25
%
 
71,620

 
1.46
%
 
7.51

 
 
$
13,748

 
32.01
%
 
1,653,724

 
33.73
%
 
$
8.31

(1) These tenants are both owned by Southeastern Grocers.
(2) These tenants are both owned by The Kroger Company.

















Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
14


Leasing Summary as of December 31, 2017

Total Leasable Area:
4,902,381 square feet
Total Square Footage Occupied:
4,506,959 square feet
Occupancy Rate:
91.9%
Lease Expiration Schedule
Lease Expiration Period
 
Number of Expiring Leases
 
Total Expiring Occupied Square Footage
 
% of Total Expiring Occupied Square Footage
 
% of Total Occupied Square Footage Expiring
 
Expiring Annualized Base Rent (in 000s)
 
% of Total Annualized Base Rent
 
Expiring Base Rent Per Occupied
Square Foot
Available
 
—
 
395,422

 
8.07
%
 
 
 
$
—

 
—
%
 
$
—

2018
 
115
 
460,155

 
9.39
%
 
10.21
%
 
4,292

 
9.99
%
 
9.33

2019
 
140
 
713,230

 
14.55
%
 
15.83
%
 
7,158

 
16.66
%
 
10.04

2020
 
139
 
887,603

 
18.11
%
 
19.69
%
 
8,044

 
18.72
%
 
9.06

2021
 
89
 
578,364

 
11.80
%
 
12.83
%
 
5,305

 
12.35
%
 
9.17

2022
 
99
 
429,834

 
8.77
%
 
9.54
%
 
4,786

 
11.14
%
 
11.13

2023
 
37
 
452,104

 
9.22
%
 
10.03
%
 
3,731

 
8.68
%
 
8.25

2024
 
19
 
113,484

 
2.31
%
 
2.52
%
 
1,105

 
2.57
%
 
9.74

2025
 
18
 
264,323

 
5.39
%
 
5.86
%
 
2,815

 
6.55
%
 
10.65

2026
 
20
 
278,223

 
5.68
%
 
6.17
%
 
2,418

 
5.63
%
 
8.69

2027 and thereafter
 
23
 
329,639

 
6.71
%
 
7.32
%
 
3,317

 
7.71
%
 
10.06

Total
 
699
 
4,902,381
 
100.00
%
 
100.00
%
 
42,971

 
100.00
%
 
$
9.53
















Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
15


Leasing Summary as of December 31, 2017, (continued)

Anchor Lease Expiration Schedule (1) 
 
No Option
 
Option
Lease Expiration Three and Twelve Month Periods Ending December 31,
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
 
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
Available
—

20,976

$
—

—

$
—

 
—

24,050

$
—

—

$
—

2018
2

80,478

574

41.09
%
7.13

 
4

122,499

991

5.28
%
8.09

2019
—

—

—

—
%
—

 
9

364,544

2,700

14.40
%
7.41

2020
1

58,473

380

27.20
%
6.50

 
11

472,788

2,993

15.96
%
6.33

2021
2

43,427

88

6.30
%
2.03

 
9

290,314

2,214

11.81
%
7.63

2022
—

—

—

—
%
—

 
4

148,663

1,277

6.81
%
8.59

2023
2

42,061

355

25.41
%
8.44

 
11

340,096

2,460

13.12
%
7.23

2024
—

—

—

—
%
—

 
1

47,922

288

1.54
%
6.01

2025
—

—

—

—
%
—

 
6

214,393

2,058

10.97
%
9.60

2026
—

—

—

—
%
—

 
6

221,755

1,591

8.48
%
7.17

2027+
—

—

—

—
%
—

 
8

262,401

2,182

11.63
%
8.32

Total
7

245,415

$
1,397

100.00
%
$
6.22

 
69

2,509,425

$
18,754

100.00
%
$
7.55

(1) Anchors defined as leases occupying 20,000 square feet or more.

Non-anchor Lease Expiration Schedule
 
No Option
 
Option
Lease Expiration Three and Twelve Month Periods Ending December 31,
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
 
Number of Expiring Leases
Expiring Occupied Square Footage
Expiring Annualized Based Rent (in 000s)
% of Total Annualized Base Rent
Expiring Base Rent per Square Foot
Available
—

350,396

$
—

—

$
—

 
—

—

$
—

—

$
—

2018
79

160,708

1,730

17.53
%
10.76

 
30

96,470

997

7.70
%
10.33

2019
74

147,101

1,994

20.20
%
13.56

 
57

201,585

2,464

19.03
%
12.22

2020
83

211,360

2,655

26.90
%
12.56

 
44

144,982

2,016

15.57
%
13.91

2021
41

117,516

1,434

14.53
%
12.20

 
37

127,107

1,569

12.12
%
12.34

2022
31

55,993

841

8.52
%
15.02

 
64

225,178

2,668

20.60
%
11.85

2023
6

10,841

138

1.40
%
12.73

 
18

59,106

778

6.01
%
13.16

2024
11

25,763

354

3.59
%
13.74

 
7

39,799

463

3.58
%
11.63

2025
6

17,116

242

2.45
%
14.14

 
6

32,814

515

3.98
%
15.69

2026
7

20,085

355

3.60
%
17.67

 
7

36,383

472

3.65
%
12.97

2027+
2

5,540

128

1.28
%
23.12

 
13

61,698

1,007

7.76
%
16.32

Total
340

1,122,419

$
9,871

100.00
%
$
12.79

 
283

1,025,122

$
12,949

100.00
%
$
12.63















Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
16


Leasing Summary as of December 31, 2017, (continued)

Leasing Renewals, New Leases and Expirations
 
Three Months Ended
December 31,
 
Twelve Months Ended
December 31,
 
2017
 
2016
 
2017
 
2016
Renewals:
 
 
 
 
 
 
 
Leases renewed with rate increase (sq feet)
60,668

 
85,135

 
296,005

 
181,850

Leases renewed with rate decrease (sq feet)
—

 
1,200

 
53,669

 
1,200

Leases renewed with no rate change (sq feet)
16,830

 
49,737

 
220,787

 
103,213

Total leases renewed (sq feet)
77,498

 
136,072

 
570,461

 
286,263

 
 
 
 
 
 
 
 
Leases renewed with rate increase (count)
16

 
19

 
76

 
50

Leases renewed with rate decrease (count)
—

 
1

 
6

 
1

Leases renewed with no rate change (count)
6

 
8

 
30

 
18

Total leases renewed (count)
22

 
28

 
112

 
69

 
 
 
 
 
 
 
 
Option exercised (count)
16

 
11

 
60

 
26

 
 
 
 
 
 
 
 
Weighted average on rate increases (per sq foot)
$
0.52

 
$
0.61

 
$
0.75

 
$
0.81

Weighted average on rate decreases (per sq foot)
$
—

 
$
(0.25
)
 
$
(1.07
)
 
$
(0.25
)
Weighted average rate (per sq foot)
$
0.41

 
$
0.38

 
$
0.29

 
$
0.52

Weighted average change over prior rates
2.99
%
 
3.92
%
 
3.10
%
 
4.90
%
 
 
 
 
 
 
 
 
New Leases:
 
 
 
 
 
 
 
New leases (sq feet)
41,906

 
56,914

 
160,341

 
148,328

New leases (count)
11

 
9

 
55

 
47

Weighted average rate (per sq foot)
$
8.89

 
$
8.53

 
$
11.87

 
$
12.00

 
 
 
 
 
 
 
 
GLA Expiring during the next twelve months
9.39
%
 
7.17
%
 
9.39
%
 
7.17
%





Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
17


Definitions
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). Wheeler computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures.
Most industry analysts and equity REITs, including Wheeler, consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions and excluding depreciation, FFO is a helpful tool that can assist in the comparison of the operating performance of a company’s real estate between periods, or as compared to different companies. Management uses FFO as a supplemental measure to conduct and evaluate the business because there are certain limitations associated with using GAAP net income alone as the primary measure of our operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time, while historically real estate values have risen or fallen with market conditions.
Adjusted FFO (AFFO): Management believes that the computation of FFO in accordance with NAREIT’s definition includes certain items that are not indicative of the operating performance of the Company’s real estate assets. These items include, but are not limited to, non-recurring expenses, legal settlements, acquisition costs and capital raise costs. Management uses AFFO, which is a non-GAAP financial measure, to exclude such items. Management believes that reporting AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis. The Company also presents Pro Forma AFFO which shows the impact of certain activities assuming they occurred at the beginning of the year.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): another widely-recognized non-GAAP financial measure that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors and lenders in understanding financial performance and providing a relevant basis for comparison among other companies, including REITs. While EBITDA should not be considered as a substitute for net income attributable to the Company’s common shareholders, net operating income, cash flow from operating activities, or other income or cash flow data prepared in accordance with GAAP, the Company believes that EBITDA may provide additional information with respect to the Company’s performance or ability to meet its future debt service requirements, capital expenditures and working capital requirements. The Company computes EBITDA by excluding interest expense, net loss attributable to noncontrolling interests, and depreciation and amortization, from income from continuing operations. The Company also presents Adjusted EBITDA which excludes affecting the comparability of the periods presented, including but not limited to, costs associated with acquisitions and capital related activities.

Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
18


Net Operating Income (NOI): The Company believes that NOI is a useful measure of the Company's property operating performance. The Company defines NOI as property revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, interest expense, interest income, provision for income taxes, gain or loss on sale or capital expenditures and leasing costs, it provides a performance measure, that when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company's results, margins and returns. NOI should not be viewed as a measure of the Company's overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company's NOI may not be comparable to that of other REITs.


Wheeler Real Estate Investment Trust | Supplemental Operating and Financial Data
19