Tue, Mar 4, 1:14 PM (47 days ago)
Wheeler Real Estate Investment Trust, Inc. (WHLR) reported a modest revenue increase to $104,574,000 for the fiscal year ended December 31, 2024, compared to $102,325,000 in 2023. However, net income dropped sharply to $767,000 from $6,083,000, largely due to increased operating expenses and impairment charges. Operating expenses rose slightly to $72,593,000, with notable increases in property operations and depreciation. The company continues to focus on grocery-anchored retail properties, holding a portfolio of 75 properties, with a 93.1% occupancy rate. Strategic efforts include optimizing leasing strategies and managing expenses. The company executed several asset sales, generating $38.5 million in proceeds, which positively impacted cash flow. Risk factors include reliance on retail space demand, tenant bankruptcies, and economic conditions, particularly in the Mid-Atlantic and Southeast regions. The company is also navigating challenges related to its Series D Preferred Stock, which has seen increased redemption requests, leading to dilution concerns. Looking ahead, WHLR aims to enhance liquidity through property sales and prudent capital management, while also focusing on maintaining its REIT status amidst ongoing financial challenges.