FORM |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
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Large accelerated filer | ¨ | Accelerated filer | ¨ | |||||||||||||||||
ý | Smaller reporting company | |||||||||||||||||||
Emerging growth company |
Page | ||||||||
PART I – FINANCIAL INFORMATION | ||||||||
Item 1. | Financial Statements | |||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II – OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
ASSETS: | |||||||||||
Real estate: | |||||||||||
Land and land improvements | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Real estate, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Receivables, net | |||||||||||
Investment securities - related party | |||||||||||
Above market lease intangibles, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred costs and other assets, net | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES: | |||||||||||
Loans payable, net | $ | $ | |||||||||
Below market lease intangibles, net | |||||||||||
Derivative liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Series D Preferred Stock redemptions | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Total Liabilities | |||||||||||
Series D Cumulative Convertible Preferred Stock | |||||||||||
EQUITY: | |||||||||||
Series A Preferred Stock (no par value, | |||||||||||
Series B Convertible Preferred Stock (no par value, | |||||||||||
Common Stock ($ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total Stockholders’ Deficit | ( | ( | |||||||||
Noncontrolling interests | |||||||||||
Total Equity | |||||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Total Revenue | |||||||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Property operations | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Impairment of assets held for sale | |||||||||||||||||||||||
Corporate general & administrative | |||||||||||||||||||||||
Total Operating Expenses | |||||||||||||||||||||||
Gain (loss) on disposal of properties | ( | ||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Gain on investment securities, net | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Net changes in fair value of derivative liabilities | ( | ( | ( | ( | |||||||||||||||||||
Other expense | ( | ( | ( | ||||||||||||||||||||
Net Loss Before Income Taxes | ( | ( | ( | ( | |||||||||||||||||||
Income tax expense | ( | ( | |||||||||||||||||||||
Net Loss | ( | ( | ( | ( | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests | |||||||||||||||||||||||
Net Loss Attributable to Wheeler REIT | ( | ( | ( | ( | |||||||||||||||||||
Preferred Stock dividends - undeclared | ( | ( | ( | ( | |||||||||||||||||||
Deemed distribution related to preferred stock redemptions | ( | ( | |||||||||||||||||||||
Net Loss Attributable to Wheeler REIT Common Stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Loss per share: | |||||||||||||||||||||||
Basic and Diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average number of shares: | |||||||||||||||||||||||
Basic and Diluted | |||||||||||||||||||||||
Series A | Series B | Total Stockholders’ (Deficit) Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series D Preferred Stock to Common Stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for noncontrolling interest in operating partnership | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 (Unaudited) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 (Unaudited) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Operating Partnership units to Common Stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments for noncontrolling interest in operating partnership | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of Series D Preferred Stock to redemption value | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Redemption of fractional units as a result of reverse stock split | — | — | — | — | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 (Unaudited) | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Condensed Consolidated Statements of (Deficit) Equity (Unaudited, in thousands, except share data) Continued | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Partnership | Consolidated Subsidiary | Total | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series D Preferred Stock to Common Stock | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for noncontrolling interest in operating partnership | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Operating Partnership units to Common Stock | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments for noncontrolling interest in operating partnership | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of Series D Preferred Stock to redemption value | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of fractional units as a result of reverse stock split | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 (Unaudited) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Total Stockholders’ (Deficit) Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series B Preferred Stock to Common Stock | — | — | ( | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 (Unaudited) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Operating Partnership units to Common Stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments for noncontrolling interest in operating partnership | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Paid-in-kind interest, issuance of Series B Preferred Stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 (Unaudited) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Operating Partnership units to Common Stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments for noncontrolling interest in operating partnership | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests assumed from the acquisition | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 (Unaudited) | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Condensed Consolidated Statements of (Deficit) Equity (Unaudited, in thousands, except share data) Continued | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Partnership | Consolidated Subsidiary | Total | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series B Preferred Stock to Common Stock | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 (Unaudited) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Operating Partnership units to Common Stock | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments for noncontrolling interest in operating partnership | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Paid-in-kind interest, issuance of Series B Preferred Stock | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 (Unaudited) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Operating Partnership units to Common Stock | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments for noncontrolling interest in operating partnership | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests assumed from acquisition | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 (Unaudited) | $ | $ | $ | $ |
For the Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net Loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred financing cost amortization | |||||||||||
Changes in fair value of derivative liabilities | |||||||||||
Above (below) market lease amortization, net | ( | ( | |||||||||
Paid-in-kind interest | |||||||||||
Loss on repurchase of debt securities | |||||||||||
Unrealized gain on investment securities, net | ( | ||||||||||
Straight-line expense | |||||||||||
(Gain) loss on disposal of properties | ( | ||||||||||
Credit losses on operating lease receivables | |||||||||||
Impairment of assets held for sale | |||||||||||
Net changes in assets and liabilities: | |||||||||||
Receivables, net | |||||||||||
Deferred costs and other assets, net | ( | ||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES: | |||||||||||
Investment property acquisitions | ( | ( | |||||||||
Expenditures for real estate improvements | ( | ( | |||||||||
Purchase of investment securities | ( | ||||||||||
Cash received from disposal of properties | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Payments for deferred financing costs | ( | ( | |||||||||
Dividends and distributions paid on noncontrolling interests | ( | ||||||||||
Loan proceeds | |||||||||||
Loan principal payments | ( | ( | |||||||||
Repurchase of debt securities | ( | ||||||||||
Loan prepayment penalty | ( | ( | |||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | |||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | $ | |||||||||
Supplemental Disclosure: | |||||||||||
The following table provides a reconciliation of cash, cash equivalents and restricted cash: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents, and restricted cash | $ | $ |
For the Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Non-Cash Transactions: | |||||||||||
Conversion of common units to Common Stock | $ | $ | |||||||||
Conversion of Series B Preferred Stock to Common Stock | $ | $ | |||||||||
Conversion of Series D Preferred Stock to Common Stock | $ | $ | |||||||||
Accretion of Preferred Stock discounts | $ | $ | |||||||||
Buildings and improvements included in accounts payable, accrued expenses and other liabilities | $ | $ | |||||||||
Other Cash Transactions: | |||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | |||||||||
Cash paid for interest | $ | $ |
Disposal Date | Property | Contract Price | Gain (Loss) | Net Proceeds | ||||||||||||||||||||||
July 11, 2023 | Carll's Corner Outparcel | $ | $ | $ | ||||||||||||||||||||||
January 11, 2022 | Walnut Hill Plaza | $ | $ | ( | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Leases in place, net | $ | $ | |||||||||
Lease origination costs, net | |||||||||||
Ground lease sandwich interest, net | |||||||||||
Tenant relationships, net | |||||||||||
Legal and marketing costs, net | |||||||||||
Prepaid expenses | |||||||||||
Other | |||||||||||
Total deferred costs and other assets, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Base rent | $ | $ | $ | $ | |||||||||||||||||||
Tenant reimbursements - variable lease revenue | |||||||||||||||||||||||
Above (below) market lease amortization | |||||||||||||||||||||||
Straight-line rents | |||||||||||||||||||||||
Percentage rent - variable lease revenue | |||||||||||||||||||||||
Lease termination fees | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | |||||||||||||||||||||||
Credit losses on operating lease receivables | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ |
Property/Description | Monthly Payment | Interest Rate | Maturity | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
Cypress Shopping Center | $ | July 2024 | $ | $ | ||||||||||||||||||||||||||||
Conyers Crossing | Interest only | October 2025 | ||||||||||||||||||||||||||||||
Winslow Plaza | $ | December 2025 | ||||||||||||||||||||||||||||||
Tuckernuck | $ | March 2026 | ||||||||||||||||||||||||||||||
Chesapeake Square | $ | August 2026 | ||||||||||||||||||||||||||||||
Sangaree/Tri-County | $ | December 2026 | ||||||||||||||||||||||||||||||
Timpany Plaza | Interest only | September 2028 | ||||||||||||||||||||||||||||||
Village of Martinsville | $ | July 2029 | ||||||||||||||||||||||||||||||
Laburnum Square | Interest only | September 2029 | ||||||||||||||||||||||||||||||
Rivergate (1) | $ | September 2031 | ||||||||||||||||||||||||||||||
Convertible Notes | Interest only | December 2031 | ||||||||||||||||||||||||||||||
Guggenheim Loan Agreement (2) | Interest only | July 2032 | ||||||||||||||||||||||||||||||
JANAF Loan Agreement (3) | Interest only | July 2032 | ||||||||||||||||||||||||||||||
Guggenheim-Cedar Loan Agreement (4) | Interest only | November 2032 | ||||||||||||||||||||||||||||||
Patuxent Crossing/Coliseum Marketplace Loan Agreement | Interest only | January 2033 | ||||||||||||||||||||||||||||||
Term loan, | Interest only | June 2033 | ||||||||||||||||||||||||||||||
Term loan, | Interest only | June 2033 | ||||||||||||||||||||||||||||||
Term loans - fixed interest rate | various | various | ||||||||||||||||||||||||||||||
Total Principal Balance | ||||||||||||||||||||||||||||||||
Unamortized deferred financing cost | ( | ( | ||||||||||||||||||||||||||||||
Total Loans Payable, net | $ | $ | ||||||||||||||||||||||||||||||
For the remaining three months ended December 31, 2023 | $ | ||||
December 31, 2024 | |||||
December 31, 2025 | |||||
December 31, 2026 | |||||
December 31, 2027 | |||||
December 31, 2028 | |||||
Thereafter | |||||
Total principal repayments and debt maturities | $ |
For the nine months ended September 30, | Series B Preferred number of shares (1) | Series D Preferred Stock number of shares (1) | Convertible Note interest at | Fair value adjustment | Interest expense | |||||||||||||||||||||||||||
2023 | $ | $ | $ | |||||||||||||||||||||||||||||
2022 | $ | $ | $ | |||||||||||||||||||||||||||||
(1) Shares issued as interest payment on Convertible Notes. |
Warrant Name | Warrants | Exercise Price | Expiration Date | |||||||||||||||||
Powerscourt Warrant | $ | 12/22/2023 | ||||||||||||||||||
Wilmington Warrant Tranche A | $ | 3/12/2026 | ||||||||||||||||||
Wilmington Warrant Tranche B | $ | 3/12/2026 | ||||||||||||||||||
Wilmington Warrant Tranche C | $ | 3/12/2026 | ||||||||||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Common Stock price | $ | $ | |||||||||
Weighted average contractual term to maturity | |||||||||||
Range of expected market volatility % | |||||||||||
Range of risk free interest rate | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Conversion price | $ | $ | |||||||||
Common Stock price | $ | $ | |||||||||
Contractual term to maturity | |||||||||||
Expected market volatility % | |||||||||||
Risk-free interest rate | |||||||||||
Traded WHLRL price, % of par | |||||||||||
(1) Represents the volume weighted average of the Company's closing Common Stock price for the preceding the valuation date of September 30, 2023, less a discount of |
Nine Months Ended September 30, 2023 | Year Ended December 31, 2022 | ||||||||||
Balance at the beginning of period | $ | $ | |||||||||
Changes in fair value - Warrants | ( | ( | |||||||||
Changes in fair value - Convertible Notes | |||||||||||
Balance at end of period | $ | $ |
Series D Preferred Stock | |||||
Balance December 31, 2022 | $ | ||||
Accretion of Preferred Stock discount | |||||
Conversion of Series D Preferred Stock to Common Stock | ( | ||||
Undeclared dividends | |||||
Balance March 31, 2023 | |||||
Accretion of Preferred Stock discount | |||||
Undeclared dividends | |||||
Paid-in-kind interest, issuance of Preferred Stock | |||||
Balance June 30, 2023 | |||||
Accretion of Preferred Stock discount | |||||
Undeclared dividends | |||||
Accretion to liquidation preference (1) | |||||
Series D Preferred Stock redemptions | ( | ||||
Balance September 30, 2023 | $ | ||||
(1) As of the Series D Redemption Date, the Series D Preferred Stock was adjusted to $ | |||||
Series D Preferred Stock | |||||
Balance December 31, 2021 | $ | ||||
Accretion of Preferred Stock discount | |||||
Undeclared dividends | |||||
Balance March 31, 2022 | |||||
Accretion of Preferred Stock discount | |||||
Undeclared dividends | |||||
Balance June 30, 2022 | |||||
Accretion of Preferred Stock discount | |||||
Undeclared dividends | |||||
Balance September 30, 2022 | $ |
September 30, 2023 | ||||||||||||||||||||||||||
Outstanding shares | Potential Dilutive Shares | |||||||||||||||||||||||||
Common units | ||||||||||||||||||||||||||
Series B Preferred Stock | ||||||||||||||||||||||||||
Series D Preferred Stock | ||||||||||||||||||||||||||
Warrants to purchase Common Stock | — | |||||||||||||||||||||||||
Convertible Notes | — |
Series D Preferred Stock | ||||||||||||||
Arrears Date | Arrears | Per Share | ||||||||||||
For the nine months ended September 30, 2023 | $ | $ | ||||||||||||
For the nine months ended September 30, 2022 | $ | $ | ||||||||||||
September 30, 2023 (b) | December 31, 2022 (b) | ||||||||||
2022 financings and real estate taxes | $ | $ | |||||||||
Management fees | |||||||||||
Leasing commissions | |||||||||||
Cost Sharing Agreement allocations (a) | |||||||||||
Other | ( | ||||||||||
Total | $ | $ |
Disposal Date | Property | Contract Price | Gain | Net Proceeds | ||||||||||||||||||||||
July 11, 2023 | Carll's Corner Outparcel - Bridgeton, New Jersey | $ | 3,000 | $ | 2,204 | $ | 2,759 |
For the nine months ended September 30, | Series B Preferred number of shares (1) | Series D Preferred Stock number of shares (1) | Convertible Note interest at 7% coupon | Fair value adjustment | Interest expense | |||||||||||||||||||||||||||
2023 | — | 160,455 | $ | 1,718 | $ | 851 | $ | 2,569 | ||||||||||||||||||||||||
2022 | 432,994 | — | $ | 1,733 | $ | 944 | $ | 2,677 | ||||||||||||||||||||||||
(1) Shares issued as interest payment on Convertible Notes. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Renewals(1): | |||||||||||||||||||||||
Leases renewed with rate increase (sq feet) | 129,041 | 166,594 | 598,259 | 382,802 | |||||||||||||||||||
Leases renewed with rate decrease (sq feet) | — | 47,538 | — | 59,027 | |||||||||||||||||||
Leases renewed with no rate change (sq feet) | 133,119 | 143,060 | 210,377 | 217,711 | |||||||||||||||||||
Total leases renewed (sq feet) | 262,160 | 357,192 | 808,636 | 659,540 | |||||||||||||||||||
Leases renewed with rate increase (count) | 32 | 31 | 91 | 75 | |||||||||||||||||||
Leases renewed with rate decrease (count) | — | 5 | — | 10 | |||||||||||||||||||
Leases renewed with no rate change (count) | 7 | 6 | 16 | 24 | |||||||||||||||||||
Total leases renewed (count) | 39 | 42 | 107 | 109 | |||||||||||||||||||
Option exercised (count) | 6 | 5 | 22 | 12 | |||||||||||||||||||
Weighted average on rate increases (per sq foot) | $ | 1.32 | $ | 1.18 | $ | 0.84 | $ | 1.22 | |||||||||||||||
Weighted average on rate decreases (per sq foot) | $ | — | $ | (0.70) | $ | — | $ | (1.15) | |||||||||||||||
Weighted average rate on all renewals (per sq foot) | $ | 0.65 | $ | 0.46 | $ | 0.62 | $ | 0.61 | |||||||||||||||
Weighted average change over prior rates | 7.2 | % | 5.5 | % | 6.9 | % | 6.6 | % | |||||||||||||||
New Leases(1) (2): | |||||||||||||||||||||||
New leases (sq feet) | 135,537 | 84,874 | 267,319 | 183,064 | |||||||||||||||||||
New leases (count) | 16 | 18 | 44 | 56 | |||||||||||||||||||
Weighted average rate (per sq foot) | $ | 10.71 | $ | 11.21 | $ | 12.37 | $ | 11.99 | |||||||||||||||
Three Months Ended September 30, | Three Months Ended Changes | ||||||||||||||||||||||
2023 | 2022 | Change | % Change | ||||||||||||||||||||
PROPERTY DATA: | |||||||||||||||||||||||
Number of properties owned and leased at period end (1) | 75 | 76 | (1) | a decrease | (1.3) | % | |||||||||||||||||
Aggregate gross leasable area at period end (1) | 8,140,236 | 8,183,345 | (43,109) | a decrease | (0.5) | % | |||||||||||||||||
Ending leased rate at period end (1) | 93.1 | % | 92.1 | % | 1.0 | % | an increase | 1.1 | % | ||||||||||||||
FINANCIAL DATA: | |||||||||||||||||||||||
Rental revenues | $ | 24,655 | $ | 18,486 | $ | 6,169 | an increase | 33.4 | % | ||||||||||||||
Other revenues | 549 | 232 | 317 | an increase | 136.6 | % | |||||||||||||||||
Total Revenue | 25,204 | 18,718 | 6,486 | an increase | 34.7 | % | |||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Property operations | 8,771 | 6,655 | 2,116 | an increase | 31.8 | % | |||||||||||||||||
Depreciation and amortization | 6,875 | 4,981 | 1,894 | an increase | 38.0 | % | |||||||||||||||||
Corporate general & administrative | 2,475 | 2,498 | (23) | a decrease | (0.9) | % | |||||||||||||||||
Total Operating Expenses | 18,121 | 14,134 | 3,987 | an increase | 28.2 | % | |||||||||||||||||
Gain on disposal of properties | 2,204 | — | 2,204 | an increase | 100.0 | % | |||||||||||||||||
Operating Income | 9,287 | 4,584 | 4,703 | an increase | 102.6 | % | |||||||||||||||||
Interest income | 163 | 15 | 148 | an increase | 986.7 | % | |||||||||||||||||
Gain on investment securities, net | 49 | — | 49 | an increase | 100.0 | % | |||||||||||||||||
Interest expense | (7,469) | (6,949) | (520) | a decrease | (7.5) | % | |||||||||||||||||
Net changes in fair value of derivative liabilities | (11,163) | (656) | (10,507) | a decrease | (1,601.7) | % | |||||||||||||||||
Other expense | (2,233) | — | (2,233) | a decrease | (100.0) | % | |||||||||||||||||
Net Loss Before Income Taxes | (11,366) | (3,006) | (8,360) | a decrease | (278.1) | % | |||||||||||||||||
Income tax expense | (2) | — | (2) | a decrease | (100.0) | % | |||||||||||||||||
Net Loss | (11,368) | (3,006) | (8,362) | a decrease | (278.2) | % | |||||||||||||||||
Less: Net Income attributable to noncontrolling interests | 2,693 | 1,234 | 1,459 | an increase | 118.2 | % | |||||||||||||||||
Net Loss Attributable to Wheeler REIT | $ | (14,061) | $ | (4,240) | $ | (9,821) | a decrease | (231.6) | % |
Three Months Ended September 30, | Three Months Ended Changes | ||||||||||||||||||||||
2023 | 2022 | Change | % Change | ||||||||||||||||||||
Property debt interest - excluding Cedar debt | $ | 4,353 | $ | 3,715 | $ | 638 | 17.2 | % | |||||||||||||||
Convertible Notes interest | 563 | 578 | (15) | (2.6) | % | ||||||||||||||||||
Defeasance paid | — | 1,156 | (1,156) | (100.0) | % | ||||||||||||||||||
Amortization of deferred financing costs | 636 | 806 | (170) | (21.1) | % | ||||||||||||||||||
Property debt interest - Cedar | 1,917 | 694 | 1,223 | 100.0 | % | ||||||||||||||||||
Total Interest Expense | $ | 7,469 | $ | 6,949 | $ | 520 | 7.5 | % |
Nine Months Ended September 30, | Nine Months Ended Changes | |||||||||||||||||||||||||
2023 | 2022 | Change | % Change | |||||||||||||||||||||||
PROPERTY DATA: | ||||||||||||||||||||||||||
Number of properties owned and leased at period end (1) | 75 | 76 | (1) | a decrease | (1.3) | % | ||||||||||||||||||||
Aggregate gross leasable area at period end (1) | 8,140,236 | 8,183,345 | (43,109) | a decrease | (0.5) | % | ||||||||||||||||||||
Ending leased rate at period end (1) | 93.1 | % | 92.1 | % | 1.0 | % | an increase | 1.1 | % | |||||||||||||||||
FINANCIAL DATA: | ||||||||||||||||||||||||||
Rental revenues | $ | 74,738 | $ | 49,142 | $ | 25,596 | an increase | 52.1 | % | |||||||||||||||||
Other revenues | 1,372 | 552 | 820 | an increase | 148.6 | % | ||||||||||||||||||||
Total Revenue | 76,110 | 49,694 | 26,416 | an increase | 53.2 | % | ||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||||
Property operations | 26,068 | 16,637 | 9,431 | an increase | 56.7 | % | ||||||||||||||||||||
Depreciation and amortization | 21,642 | 12,222 | 9,420 | an increase | 77.1 | % | ||||||||||||||||||||
Impairment of assets held for sale | — | 760 | (760) | a decrease | (100.0) | % | ||||||||||||||||||||
Corporate general & administrative | 8,364 | 5,434 | 2,930 | an increase | 53.9 | % | ||||||||||||||||||||
Total Operating Expenses | 56,074 | 35,053 | 21,021 | an increase | 60.0 | % | ||||||||||||||||||||
Gain (loss) on disposal of properties | 2,204 | (15) | 2,219 | an increase | 14,793.3 | % | ||||||||||||||||||||
Operating Income | 22,240 | 14,626 | 7,614 | an increase | 52.1 | % | ||||||||||||||||||||
Interest income | 336 | 42 | 294 | an increase | 700.0 | % | ||||||||||||||||||||
Gain on investment securities, net | 80 | — | 80 | an increase | 100.0 | % | ||||||||||||||||||||
Interest expense | (24,125) | (19,079) | (5,046) | a decrease | (26.4) | % | ||||||||||||||||||||
Net changes in fair value of derivative liabilities | (6,281) | (2,533) | (3,748) | a decrease | (148.0) | % | ||||||||||||||||||||
Other expense | (5,273) | (691) | (4,582) | a decrease | (663.1) | % | ||||||||||||||||||||
Net Loss Before Income Taxes | (13,023) | (7,635) | (5,388) | a decrease | (70.6) | % | ||||||||||||||||||||
Income tax expense | (48) | — | (48) | a decrease | (100.0) | % | ||||||||||||||||||||
Net Loss | (13,071) | (7,635) | (5,436) | a decrease | (71.2) | % | ||||||||||||||||||||
Less: Net Income attributable to noncontrolling interests | 8,061 | 1,237 | 6,824 | an increase | 551.7 | % | ||||||||||||||||||||
Net Loss Attributable to Wheeler REIT | $ | (21,132) | $ | (8,872) | $ | (12,260) | a decrease | (138.2) | % | |||||||||||||||||
(1) Excludes the undeveloped land parcels. Includes assets held for sale. |
Nine Months Ended September 30, | Nine Months Ended Changes | ||||||||||||||||||||||
2023 | 2022 | Change | % Change | ||||||||||||||||||||
Property debt interest - excluding Cedar debt | $ | 11,850 | $ | 10,940 | $ | 910 | 8.3 | % | |||||||||||||||
Convertible Notes interest (1) | 2,569 | 2,677 | (108) | (4.0) | % | ||||||||||||||||||
Defeasance paid | 1,758 | 2,614 | (856) | (32.7) | % | ||||||||||||||||||
Amortization of deferred financing costs | 2,357 | 2,154 | 203 | 9.4 | % | ||||||||||||||||||
Property debt interest - Cedar | 5,591 | 694 | 4,897 | 100.0 | % | ||||||||||||||||||
Total Interest Expense | $ | 24,125 | $ | 19,079 | 5,046 | 26.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||||||||
Operating Income | $ | 9,287 | $ | 4,584 | $ | 22,240 | $ | 14,626 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
(Gain) loss on disposal of properties | (2,204) | — | (2,204) | 15 | |||||||||||||||||||
Corporate general & administrative | 2,475 | 2,498 | 8,364 | 5,434 | |||||||||||||||||||
Impairment of assets held for sale | — | — | — | 760 | |||||||||||||||||||
Depreciation and amortization | 6,875 | 4,981 | 21,642 | 12,222 | |||||||||||||||||||
Straight-line rents | (285) | (314) | (1,004) | (547) | |||||||||||||||||||
Above (below) market lease amortization | (1,232) | (494) | (3,865) | (478) | |||||||||||||||||||
Other non-property revenue | — | 2 | (131) | (14) | |||||||||||||||||||
NOI related to non-same store properties | (5,384) | (1,004) | (14,994) | (1,432) | |||||||||||||||||||
Same Store Property Net Operating Income | $ | 9,532 | $ | 10,253 | $ | 30,048 | $ | 30,586 | |||||||||||||||
Property revenues | $ | 15,384 | $ | 15,382 | $ | 46,287 | $ | 45,551 | |||||||||||||||
Property expenses | 5,852 | 5,129 | 16,239 | 14,965 | |||||||||||||||||||
Same Store Property Net Operating Income | $ | 9,532 | $ | 10,253 | $ | 30,048 | $ | 30,586 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended Changes | Nine Months Ended Changes | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | Change | % Change | Change | % Change | ||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (11,368) | $ | (3,006) | $ | (13,071) | $ | (7,635) | $ | (8,362) | (278.2) | % | $ | (5,436) | (71.2) | % | |||||||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 6,875 | 4,981 | 21,642 | 12,222 | 1,894 | 38.0 | % | 9,420 | 77.1 | % | |||||||||||||||||||||||||||||||||||||
Impairment of assets held for sale | — | — | — | 760 | — | — | % | (760) | (100.0) | % | |||||||||||||||||||||||||||||||||||||
(Gain) loss on disposal of properties | (2,204) | — | (2,204) | 15 | (2,204) | (100.0) | % | (2,219) | (14,793.3) | % | |||||||||||||||||||||||||||||||||||||
FFO | $ | (6,697) | $ | 1,975 | $ | 6,367 | $ | 5,362 | $ | (8,672) | (439.1) | % | $ | 1,005 | 18.7 | % | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
FFO | $ | (6,697) | $ | 1,975 | $ | 6,367 | $ | 5,362 | |||||||||||||||
Preferred Stock dividends - undeclared | (2,415) | (2,264) | (6,940) | (6,792) | |||||||||||||||||||
Dividends on noncontrolling interests preferred stock | (2,688) | (1,225) | (8,064) | (1,225) | |||||||||||||||||||
Preferred stock accretion adjustments | 146 | 146 | 438 | 438 | |||||||||||||||||||
FFO available to common stockholders and common unitholders | (11,654) | (1,368) | (8,199) | (2,217) | |||||||||||||||||||
Other non-recurring and non-cash expense | 8 | 1,241 | 2,043 | 3,388 | |||||||||||||||||||
Gain on investment securities, net | (49) | — | (80) | — | |||||||||||||||||||
Net changes in fair value of derivative liabilities | 11,163 | 656 | 6,281 | 2,533 | |||||||||||||||||||
Straight-line rental revenue, net straight-line expense | (293) | (306) | (997) | (523) | |||||||||||||||||||
Deferred financing cost amortization | 636 | 806 | 2,357 | 2,154 | |||||||||||||||||||
Paid-in-kind interest | — | — | 2,006 | 2,099 | |||||||||||||||||||
Above (below) market lease amortization | (1,232) | (494) | (3,865) | (478) | |||||||||||||||||||
Recurring capital expenditures and tenant improvement reserves | (404) | (409) | (1,221) | (948) | |||||||||||||||||||
AFFO | $ | (1,825) | $ | 126 | $ | (1,675) | $ | 6,008 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating activities | $ | 15,032 | $ | 27,954 | |||||||
Investing activities | $ | (19,618) | $ | (140,106) | |||||||
Financing activities | $ | (2,422) | $ | 126,035 |
September 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Fixed-rate notes | $ | 495,933 | $ | 482,447 | |||||||
Total debt | $ | 495,933 | $ | 482,447 |
Exhibit | ||||||||
101.INS XBRL | Instance Document (Filed herewith). | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document (Filed herewith). | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase (Filed herewith). | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase (Filed herewith). | |||||||
101.LAB | XBRL Taxonomy Extension Labels Linkbase (Filed herewith). | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase (Filed herewith). | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
WHEELER REAL ESTATE INVESTMENT TRUST, INC. | |||||||||||||||||
By: | /s/ Crystal Plum | ||||||||||||||||
CRYSTAL PLUM | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(Principal Financial Officer and Principal Accounting Officer) | |||||||||||||||||
Date: | November 7, 2023 |
1. | I have reviewed this quarterly report on Form 10-Q of Wheeler Real Estate Investment Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ M. Andrew Franklin | ||
M. Andrew Franklin | ||
Chief Executive Officer and President |
1. | I have reviewed this quarterly report on Form 10-Q of Wheeler Real Estate Investment Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Crystal Plum | ||
Crystal Plum Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
November 7, 2023 | |||||
/s/ M. Andrew Franklin | |||||
M. Andrew Franklin | |||||
Chief Executive Officer and President | |||||
/s/ Crystal Plum | |||||
Crystal Plum | |||||
Chief Financial Officer | |||||
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 980,857 | 979,396 |
Common stock, shares outstanding (in shares) | 980,857 | 979,396 |
Series A Preferred Stock | ||
Preferred stock, shares authorized (in shares) | 4,500 | 4,500 |
Preferred stock shares issued (in shares) | 562 | 562 |
Preferred stock, shares outstanding (in shares) | 562 | 562 |
Preferred stock, aggregate liquidation preference | $ 0.6 | $ 0.6 |
Series B Preferred Stock | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock shares issued (in shares) | 3,379,142 | 3,379,142 |
Preferred stock, shares outstanding (in shares) | 3,379,142 | 3,379,142 |
Preferred stock, aggregate liquidation preference | $ 84.5 | $ 84.5 |
Condensed Consolidated Statements of Operations - USD ($) |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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REVENUE: | ||||
Rental revenues | $ 24,655,000 | $ 18,486,000 | $ 74,738,000 | $ 49,142,000 |
Other revenues | 549,000 | 232,000 | 1,372,000 | 552,000 |
Total Revenue | 25,204,000 | 18,718,000 | 76,110,000 | 49,694,000 |
OPERATING EXPENSES: | ||||
Property operations | 8,771,000 | 6,655,000 | 26,068,000 | 16,637,000 |
Depreciation and amortization | 6,875,000 | 4,981,000 | 21,642,000 | 12,222,000 |
Impairment of assets held for sale | 0 | 0 | 0 | 760,000 |
Corporate general & administrative | 2,475,000 | 2,498,000 | 8,364,000 | 5,434,000 |
Total Operating Expenses | 18,121,000 | 14,134,000 | 56,074,000 | 35,053,000 |
Gain (loss) on disposal of properties | 2,204,000 | 0 | 2,204,000 | (15,000) |
Operating Income | 9,287,000 | 4,584,000 | 22,240,000 | 14,626,000 |
Interest income | 163,000 | 15,000 | 336,000 | 42,000 |
Gain on investment securities, net | 49,000 | 0 | 80,000 | 0 |
Interest expense | (7,469,000) | (6,949,000) | (24,125,000) | (19,079,000) |
Net changes in fair value of derivative liabilities | (11,163,000) | (656,000) | (6,281,000) | (2,533,000) |
Other expense | (2,233,000) | 0 | (5,273,000) | (691,000) |
Net Loss Before Income Taxes | (11,366,000) | (3,006,000) | (13,023,000) | (7,635,000) |
Income tax expense | (2,000) | 0 | (48,000) | 0 |
Net Loss | (11,368,000) | (3,006,000) | (13,071,000) | (7,635,000) |
Less: Net income attributable to noncontrolling interests | 2,693,000 | 1,234,000 | 8,061,000 | 1,237,000 |
Net Loss Attributable to Wheeler REIT | (14,061,000) | (4,240,000) | (21,132,000) | (8,872,000) |
Preferred Stock dividends - undeclared | (2,415,000) | (2,264,000) | (6,940,000) | (6,792,000) |
Deemed distribution related to preferred stock redemptions | (13,542,000) | 0 | (13,542,000) | 0 |
Net Loss Attributable to Wheeler REIT Common Stockholders | $ (30,018,000) | $ (6,504,000) | $ (41,614,000) | $ (15,664,000) |
Loss per share: | ||||
Basic (in dollars per share) | $ (30.61) | $ (6.64) | $ (42.46) | $ (16.07) |
Diluted (in dollars per share) | $ (30.61) | $ (6.64) | $ (42.46) | $ (16.07) |
Weighted average number of shares: | ||||
Basic (in shares) | 980,654 | 979,282 | 980,031 | 974,965 |
Diluted (in shares) | 980,654 | 979,282 | 980,031 | 974,965 |
Business and Organization |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Wheeler Real Estate Investment Trust, Inc. (the "Trust," the "REIT," the "Company," "we," "our" or "us") is a Maryland corporation formed on June 23, 2011. The Trust serves as the general partner of Wheeler REIT, L.P. (the "Operating Partnership"), which was formed as a Virginia limited partnership on April 5, 2012. At September 30, 2023, the Trust owned 99.11% of the Operating Partnership. As of September 30, 2023, the Trust, through the Operating Partnership, owned and operated seventy-five retail shopping centers and four undeveloped properties in South Carolina, Georgia, Virginia, Pennsylvania, North Carolina, Massachusetts, New Jersey, Florida, Connecticut, Kentucky, Tennessee, Alabama, Maryland, West Virginia, and Oklahoma. These centers and undeveloped properties include the properties acquired through the Cedar Acquisition (defined below). Accordingly, the use of the word “Company” refers to the Trust and its consolidated subsidiaries, except where the context otherwise requires. The Trust through the Operating Partnership owns Wheeler Interests ("WI") and Wheeler Real Estate, LLC ("WRE") (WRE and, together with WI, the "Operating Companies"). The Operating Companies are taxable REIT subsidiaries ("TRS") to accommodate serving the non-REIT properties since applicable REIT regulations consider the income derived from these services to be “bad” income subject to taxation. The regulations allow for costs incurred by the Company commensurate with the services performed for the non-REIT properties to be allocated to a TRS. Acquisition of Cedar Realty Trust On August 22, 2022, the Company completed a merger transaction (the "Cedar Acquisition") with Cedar Realty Trust, Inc. ("Cedar"). As a result of the merger, the Company acquired all of the outstanding shares of Cedar’s common stock, which ceased to be publicly traded on the New York Stock Exchange ("NYSE"). Through this acquisition, the Company acquired an additional 19 retail shopping centers in the Northeast. Cedar’s outstanding 7.25% Series B Preferred Stock and 6.50% Series C Preferred Stock remain outstanding and continue to trade on the NYSE. As a result of the Cedar Acquisition, Cedar became a subsidiary of the REIT.
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Summary of Significant Accounting Policies |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation/Basis of Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles ("GAAP") for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. All material balances and transactions between the consolidated entities of the Company have been eliminated. All per share amounts, common units and shares outstanding, warrants, and conversion features of our 7.00% Subordinated Convertible Notes due 2031 (the "Convertible Notes") for all periods presented reflect the one-for-ten Reverse Stock Split, which took effect on August 17, 2023. The financial statements are prepared on the accrual basis in accordance with GAAP, which requires management to make estimates and assumptions that affect the disclosure of contingent assets and liabilities, the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the periods covered by the financial statements. Actual results could differ from these estimates. The unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"). The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q include Cedar starting from the date of the Cedar Acquisition. We have determined that this acquisition is not a variable interest entity, as defined under the consolidation topic of the Financial Accounting Standards Board (the "FASB"), Accounting Standards Codification, or ASC, and we evaluated such entity under the voting model and concluded we should consolidate the entity. Under the voting model, we consolidate the entity if we determine that we, directly or indirectly, have greater than 50% of the voting rights and that other equity holders do not have substantive participating rights. See the Company's audited 2022 Form 10-K for further disclosure regarding the Cedar Acquisition. Supplemental Condensed Consolidated Statements of Cash Flows Information
Other Expense Other expense represents expenses which are non-operating in nature. Other expenses were $2.2 million and $5.3 million for the three and nine months ended September 30, 2023, respectively, which consisted of $0.0 million and $2.4 million for an exchange offer (the "Exchange Offer") for outstanding shares of the Company's Series D Cumulative Convertible Preferred Stock (the “Series D Preferred Stock”) and $1.1 million and $1.6 million for the three and nine months ended September 30, 2023, respectively, for the repurchases of the Company's Convertible Notes described in Note 7 in this Form 10-Q. Additionally, other expense included transaction costs related to the redemptions by holders of the Series D Preferred Stock and Reverse Stock Split for $1.1 million and $1.3 million for the three and nine months ended September 30, 2023, respectively. Other expenses were $0.0 million and $0.7 million for the three and nine months ended September 30, 2022, respectively, which consisted of legal settlement costs. Recently Issued and Adopted Accounting Pronouncements Accounting standards that have been recently issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. Reclassifications The Company has reclassified certain prior period amounts in the accompanying condensed consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net loss. All per share amounts, common units and shares outstanding, warrants, and conversion features of the Convertible Notes for all periods presented reflect our one-for-ten Reverse Stock Split which was effective August 17, 2023.
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Real Estate |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate A significant portion of the Company’s land, buildings and improvements serve as collateral for its mortgage loans. Accordingly, restrictions exist as to the encumbered property’s transferability, use and other common rights typically associated with property ownership. St. George Plaza Land Acquisition On February 21, 2023 the Company purchased a 2.5 acre land parcel adjacent to St. George Plaza, located in St. George, South Carolina, for $0.2 million. Devine Street Land Acquisition On August 18, 2023, the Company purchased a 3.25 acre land parcel within Devine Street, located in Columbia, South Carolina, for $4.1 million (the "Devine Street Land Acquisition"). The Devine Street Land Acquisition terminated the Company's ground lease associated with this property. Assets Held for Sale, Impairment and Dispositions Impairment expenses on assets held for sale are a result of reducing the carrying value for the amount that exceeded the property's fair value less estimated selling costs. The valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 inputs. No impairment expense was recorded for the three and nine months ended September 30, 2023. Impairment expense was $0.0 million and $0.8 million for the three and nine months ended September 30, 2022, respectively, resulting from reducing the carrying value of Harbor Pointe Associates, LLC, an approximate 5 acre land parcel ("Harbor Pointe Land Parcel"). The Harbor Pointe Land Parcel did not meet the requirements to be classified as held for sale at September 30, 2023 or December 31, 2022. The following properties were sold during the nine months ended September 30, 2023 and 2022 (in thousands, unaudited):
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Investment Securities - Related Party |
9 Months Ended |
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Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities - Related Party | Investment Securities - Related Party On June 1, 2023, the Company subscribed for an investment in the amount of $3.0 million for limited partnership interests in Stilwell Activist Investments, L.P., a limited partnership formed in the State of Delaware (“SAI”). On September 1, 2023, the Company subscribed for an additional investment in the amount of $3.5 million for limited partnership interests in SAI. The investment objective of SAI is to seek long-term capital appreciation through investing primarily in publicly-traded undervalued financial institutions, or businesses with a strong financial component, or the securities of any of them, and pursuing an activist shareholder agenda with respect to those institutions. Stilwell Value LLC ("Value") is the general partner of SAI. Joseph Stilwell, a member of the Company's Board of Directors (the "Board"), is the managing member of Value and a limited partner in funds advised by Value. Additionally, E.J. Borrack, a member of the Board, serves as the General Counsel to Value and its affiliated entities, including SAI and related funds, and is a limited partner in one of the funds advised by Value. Megan Parisi, a member of the Company’s Board, serves as the Director of Communications to Value and its affiliated entities, including SAI and related funds, is a non-managing member of Value and is a limited partner in one of the funds advised by Value. The Company’s initial subscription was approved by the disinterested directors of the Company, and, after the formation of the Related Person Transactions Committee, the second subscription was approved by that Committee. A portion of SAI's underlying investments are in the Company's own equity and debt securities. SAI records investment transactions based on trade date. Realized gains and losses from investment transactions are determined on a specific identification basis. Dividend income, net of withholding taxes, and dividend expense are recognized on the ex-dividend date, and interest income and expense are recognized on an accrual basis. Discounts and premiums to the face amount of debt securities are accreted and amortized using the effective interest rate method over the lives of the respective debt securities. The Company may not withdraw its capital from SAI for a period of one year measured from the date of the Company's initial investment, subject to certain exceptions. In consideration for management, administrative and operational services, limited partners of SAI pay a management fee to an affiliate of Value each calendar quarter, in advance, equal to 0.25% (an annualized rate of 1%) of each limited partner’s capital account balance on the first day of such calendar quarter. In addition, as of the last day of each specified performance period, an incentive allocation of 20% of the amount by which the “positive performance change,” if any, that has been credited to the capital account of a limited partner during such period exceeds any positive balance in such limited partner’s “carryforward account,” is debited from the limited partner’s capital account and is simultaneously credited to the capital account of Value. The Company’s SAI investment is accounted for under the equity method and measured at net asset value as a practical expedient and has not been classified within the fair value hierarchy. All gains and losses, realized and unrealized, and fees are recorded through "gains (losses) on investment securities, net" on the condensed consolidated statements of operations. As of September 30, 2023, the fair value of the Company’s SAI investment was $6.6 million, which includes $6.5 million from subscriptions and $33 thousand in fees. Unrealized gains on investment securities, net of fees were $49 thousand and $80 thousand for the three and nine months ended September 30, 2023, respectively.
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Deferred Costs and Other Assets, Net |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs and Other Assets, Net | Deferred Costs and Other Assets, Net Deferred costs and other assets, net of accumulated amortization are as follows (in thousands, unaudited):
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Rental Revenue and Tenant Receivables |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental Revenue and Tenant Receivables | Rental Revenue and Tenant Receivables Tenant Receivables As of September 30, 2023 and December 31, 2022, the Company’s allowance for uncollectible tenant receivables totaled $1.3 million and $3.1 million, respectively. Lease Contract Revenue At September 30, 2023 and December 31, 2022, there were $7.5 million and $6.5 million, respectively, in unbilled straight-line rent, which is included in "receivables, net." The below table disaggregates the Company’s revenue by type of service (in thousands, unaudited):
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Loans Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable | Loans Payable The Company’s loans payable consist of the following (in thousands, except monthly payment):
(1) In October 2026, the interest rate changes to variable interest rate equal to the 5 years U.S. Treasury Rate plus 2.70%, with a floor of 4.25%. (2) Collateralized by 22 properties. (3) Collateralized by JANAF properties. (4) Collateralized by 10 Cedar properties. (5) Contractual interest rate weighted average. Debt Maturity The Company’s scheduled principal repayments on indebtedness as of September 30, 2023 are as follows (in thousands, unaudited):
Term Loan Agreement, 12 properties On May 5, 2023, the Company entered into a loan agreement (the "Term Loan Agreement, 12 properties") for $61.1 million at a fixed rate of 6.194% and interest-only payments due monthly through June 2025. Commencing in July 2025, until the maturity date of June 1, 2033, monthly principal and interest payments will be $0.4 million. Loan proceeds were used to refinance 12 properties, including $1.1 million in defeasance. Term Loan Agreement, 8 properties On May 18, 2023, the Company entered into a loan agreement (the "Term Loan Agreement, 8 properties") for $53.1 million at a fixed rate of 6.24% and interest-only payments due monthly through June 2028. Commencing in July 2028, until the maturity date of June 10, 2033, monthly principal and interest payments will be $0.3 million. Loan proceeds were used to refinance 8 properties, including $0.7 million in defeasance. Timpany Plaza Loan Agreement On September 12, 2023, the Company entered into a term loan agreement with Cornerstone Bank for $11.6 million at a fixed rate of 7.27% with interest-only payments due monthly for the first twelve months (the "Timpany Plaza Loan Agreement"). Commencing on September 12, 2024, until the maturity date of September 12, 2028, monthly principal and interest payments will be made based on a 30-year amortization schedule calculated based on the principal amount as of that time. On the closing date, the Company received $9.1 million of the $11.6 million, and the remaining $2.5 million will be received upon certain lease-related contingencies being met. The Timpany Plaza Loan Agreement is collateralized by the Timpany Plaza shopping center. Convertible Notes Interest expense on the Convertible Notes consisted of the following (in thousands, except for shares ):
On June 8, 2023, the Company paid down $0.6 million of the Convertible Notes through an open market purchase of 23,784 units totaling $1.2 million. On September 11, 2023, the Company paid down $0.9 million of the Convertible Notes through an open market purchase of 35,000 units totaling $1.9 million. As a result of these transactions, the Company recognized a $1.1 million and $1.6 million loss for the three and nine months ended September 30, 2023, respectively, which represents the fair value of the purchase over principal pay down. The loss is included in "other expense" on the condensed consolidated statements of operations. Fair Value Measurements The fair value of the Company’s fixed rate secured term loans was estimated using available market information and discounted cash flow analyses based on borrowing rates the Company believes it could obtain with a similar term and maturities. As of September 30, 2023 and December 31, 2022, the fair value of the Company’s fixed rate secured term loans, which were determined to be Level 3 within the valuation hierarchy, was $441.8 million and $429.1 million, respectively, and the carrying value of such loans, was $451.2 million and $440.2 million, respectively. The fair value of the Convertible Notes was estimated using available market information. As of September 30, 2023 and December 31, 2022, the fair value of the Convertible Notes, which were determined to be Level 1 within the valuation hierarchy, was $69.4 million and $40.9 million, respectively, and the carrying value, was $26.2 million and $25.8 million, respectively.
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Derivative Liabilities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liabilities | Derivative Liabilities Fair Value of Warrants The Company utilized the Monte Carlo simulation model to calculate the fair value of the two warrant agreements (the "Warrant Agreements") described within the 2022 Form 10-K. Significant observable and unobservable inputs include stock price, conversion price, risk-free rate, term, likelihood of an event of contractual conversion and expected volatility. The Monte Carlo simulation is a Level 3 valuation technique because it requires the development of significant internal assumptions in addition to observable market indicators. The Warrant Agreements contain terms and features that give rise to derivative liability classification. Warrants to purchase shares of Common Stock outstanding at September 30, 2023 and December 31, 2022 are as follows:
In measuring the warrant liabilities, the Company used the following inputs in its Monte Carlo model:
Fair Value of Conversion Features Related to Convertible Notes The Company identified certain embedded derivatives related to the conversion features of the Convertible Notes. In accordance with ASC 815-40, Derivatives and Hedging Activities, the embedded conversion options contained within the Convertible Notes were accounted for as derivative liabilities at the date of issuance and shall be adjusted to fair value through each reporting date. The Company utilized a binomial lattice model to calculate the fair value of the embedded derivatives. Significant observable and unobservable inputs include conversion price, stock price, dividend rate, expected volatility, risk-free rate, optional conversion price and term. The binomial lattice model is a Level 3 valuation technique because it requires the development of significant internal assumptions in addition to observable market indicators. In measuring the embedded derivative liability, the Company used the following inputs in its binomial lattice model:
The following table sets forth a summary of the changes in fair value of the Company's derivative liabilities, which include both the warrant liabilities and embedded derivative liability (in thousands, unaudited):
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Equity and Mezzanine Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Mezzanine Equity | Equity and Mezzanine Equity Common Stock One-for-Ten Reverse Stock Split On August 7, 2023, we announced that our Board of Directors had approved the Reverse Stock Split. The Reverse Stock Split took effect as of 5:00 p.m., Eastern Standard Time, on August 17, 2023 (the “Effective Time”). At the Effective Time, every ten issued and outstanding shares of Common Stock were converted into one share of Common Stock, and as a result, the number of outstanding shares of Common Stock was reduced from approximately 9,809,195 to approximately 980,919. The par value of each share of Common Stock remained unchanged. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would have otherwise been issued a fractional share of the Company’s Common Stock as a result of the Reverse Stock Split instead received a cash payment in lieu of such fractional share in an amount equal to the applicable fraction multiplied by the closing price of the Company’s Common Stock on the Nasdaq Capital Market ("Nasdaq") on August 17, 2023 (as adjusted for the Reverse Stock Split), without any interest. All share and share-related information presented in this Quarterly Report on Form 10-Q, including our condensed consolidated financial statements, has been retroactively adjusted to reflect the decreased number of shares resulting from the Reverse Stock Split. Series D Preferred Stock - Redeemable Preferred Stock After September 21, 2023, each holder of Series D Preferred Stock has the right, at such holder’s option, to request that the Company redeem any or all of such holder’s shares of Series D Preferred Stock on a monthly basis ("Holder Redemption Date"). Redemptions commenced on September 22, 2023 and the first Holder Redemption Date was October 5, 2023. At September 30, 2023 and December 31, 2022, the Company had 3,308,603 and 3,152,392 issued shares, respectively and 6,000,000 authorized shares of Series D Preferred Stock, without par value with a $25.00 liquidation preference per share, or $123.8 million and $113.4 million in aggregate liquidation value, respectively, of which the Company had received requests to redeem 172,241 shares as of September 30, 2023. These redemptions were considered certain at September 30, 2023 and $6.4 million was reclassed from mezzanine equity to a liability, “Series D Preferred Stock redemptions,” on the condensed consolidated balance sheets. The changes in the carrying value of the Series D Preferred Stock for the nine months ended September 30, 2023 and 2022 are as follows (in thousands, unaudited):
Earnings per share Basic earnings per share for the Company’s common stockholders is calculated by dividing income (loss) from continuing operations, excluding amounts attributable to preferred stockholders and the net income (loss) attributable to noncontrolling interests, by the Company’s weighted average shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) attributable to common stockholders, excluding amounts attributable to preferred stockholders and the net income (loss) attributable to noncontrolling interests, by the weighted average number of common shares including any dilutive shares. The following table summarizes the potential dilution of conversion of Operating Partnership common units ("Common Units"), Series B Preferred, Series D Preferred Stock, warrants and Convertible Notes into the Company's Common Stock. These have been excluded from the Company’s diluted earnings per share calculation because their inclusion would be antidilutive.
Dividends The following table summarizes the Series D Preferred Stock dividends (in thousands except for per share amounts, unaudited):
The total cumulative dividends in arrears for Series D Preferred Stock is $41.1 million as of September 30, 2023 (per share $12.42). Commencing September 21, 2023, the Series D Preferred Stock holders are entitled to cumulative cash dividends at an annual dividend rate of 12.75% increased by 2% of the liquidation preference per annum on each subsequent anniversary thereafter, subject to a maximum annual dividend rate of 16%, including the 2% default rate. There were no dividends declared to holders of Common Stock, Series A Preferred, Series B Preferred or Series D Preferred Stock during the nine months ended September 30, 2023 and 2022.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company has ground leases and leases its corporate headquarters; both are accounted for as operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 50 years. As of September 30, 2023 and 2022, the weighted average remaining lease term of our leases was 36 and 34 years, respectively. Rent expense under the operating lease agreements were $0.3 million and $0.3 million for the three months ended September 30, 2023 and 2022, respectively. Rent expense under the operating lease agreements was $0.9 million and $0.8 million for the nine months ended September 30, 2023 and 2022, respectively. Litigation The Company is involved in various legal proceedings arising in the ordinary course of its business, including, but not limited to commercial disputes. The Company believes that such litigation, claims and administrative proceedings will not have a material adverse impact on its financial position or its results of operations. The Company records a liability when it considers the loss probable and the amount can be reasonably estimated. In addition, the below legal proceedings are in process: In Re: Cedar Realty Trust, Inc. Preferred Shareholder Litigation, Case No.: 1:22-cv-1103, in the United States District Court for the District of Maryland. On April 8, 2022, several purported holders of outstanding Cedar preferred stock filed a putative class action complaint against Cedar, Cedar's Board of Directors prior to the Cedar Acquisition and the Company in Montgomery County Circuit Court, Maryland entitled Sydney, et al. v. Cedar Realty Trust, Inc., et al., (Case No. C-15-CV-22-001527). On May 6, 2022, the Plaintiffs in Sydney filed a motion for a preliminary injunction. Also on May, 6, 2022, a purported holder of Cedar’s outstanding preferred stock filed a separate putative class action complaint against Cedar and Cedar's Board of Directors prior to the Cedar Acquisition in the United States District Court for the District of Maryland, entitled Kim v. Cedar Realty Trust, Inc., et al., Civil Action No. 22-cv-01103. On May 11, 2022, Cedar, former Board of Directors of Cedar and the Company removed the Sydney action to the United States District Court for the District of Maryland, Case No. 8:22-cv-01142-GLR. On May 16, 2022, the court ordered that a hearing on the Sydney Plaintiffs’ motion for preliminary injunction be held on June 22, 2022. On June 2, 2022, the Plaintiffs in Kim also filed a motion for a preliminary injunction. The court consolidated the motions for preliminary injunction. On June 23, 2022, following a hearing, the court issued an order denying both motions for preliminary injunction, holding that the Plaintiffs in both cases were unlikely to succeed on the merits and that Plaintiffs had not established that they would suffer irreparable harm if the injunction was denied. By order dated July 11, 2022, the court consolidated the Sydney and Kim cases and set an August 24, 2022 deadline for the Plaintiffs in both cases to file a consolidated amended complaint. Plaintiffs filed their amended complaint on August 24, 2022. The amended complaint alleges on behalf of a putative class of holders of Cedar's preferred stock, among other things, claims for breach of contract against Cedar and Cedar's former Board of Directors with respect to the articles supplementary governing the terms of Cedar's preferred stock, breach of fiduciary duty against Cedar's former Board of Directors, and tortious interference and aiding and abetting breach of fiduciary duty against the Company. On October 7, 2022, Defendants moved to dismiss the amended complaint. Plaintiffs opposed the motion to dismiss and filed a motion to certify a question of law to Maryland’s Supreme Court. On August 1, 2023, the court issued a decision and order granting Defendants’ motions to dismiss, without leave to amend, and denying Plaintiffs’ motion to certify a question of law to the Maryland Supreme Court. The Plaintiffs appealed the dismissal to the United States Court of Appeals for the Fourth Circuit, Case No. 23-1905, docketed on August 30, 2023. The Court has set a briefing schedule. At this juncture, the outcome of the litigation remains uncertain. High Income Securities Fund v. Cedar Realty Trust, Inc., et al., No. 2:22-cv-4031, in the United States District Court for the Eastern District of New York. On July 11, 2022, a purported holder of Cedar's outstanding preferred stock filed a complaint against Cedar and Cedar's Board of Directors prior to the Merger in the United States District Court for the Eastern District of New York, entitled High Income Securities Fund v. Cedar Realty Trust, Inc., et al., No. 2:22-cv-4031. The complaint alleged that the Defendants violated Section 10(b) of the Exchange Act and SEC Rule 10b-5 promulgated thereunder by making false and misleading statements and omissions, and that Cedar's former Board of Directors are control persons under Section 20(a) of the Exchange Act. On September 25, 2023, the Court granted Defendants’ motion to dismiss the complaint with prejudice, and the time within which the Plaintiff could have appealed such decision has passed. Krasner v. Cedar Realty Trust, Inc., et. al., in the United States District Court for the Eastern District of New York, Case No. 2:22-cv-06945. On October 14, 2022, a purported holder of Cedar's outstanding preferred stock filed a putative class action against Cedar, the Board of Directors prior to the Cedar Acquisition, and the Company in Nassau County Supreme Court, New York entitled Krasner v. Cedar Realty Trust, Inc., et al., (Case No. 613985/2022). The complaint alleges on behalf of a putative class of holders of Cedar's preferred stock, among other things, claims for breach of contract against Cedar and the former Board of Directors with respect to the articles supplementary governing the terms of Cedar's preferred stock, breach of fiduciary duty against the former Board of Directors, and tortious interference and aiding and abetting breach of fiduciary duty against the Company. The complaint seeks, among other relief, an award of monetary damages, attorneys' fees, and expert fees. Defendants removed the case to a federal court. On April 24, 2023, the federal court granted Plaintiff’s motion to remand the case to the Nassau County Supreme Court. Defendants sought and received leave from the federal appellate court for permission to appeal the remand decision. The appeal has been briefed and argued. In the interim, Defendants filed motions in the Nassau County action to dismiss or stay the case based both on the pendency of the lawsuit in Maryland in which the same claims were asserted by other preferred stockholders and on the merits. The motions have been fully briefed, including supplemental briefing on the impact of the Maryland decision. The court held a hearing on the motions on October 27, 2023, but has not yet issued a ruling thereon. At this juncture, the outcome of the litigation is uncertain.
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Related Party Transactions |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions Related Party Transactions with Cedar The Company performs property management and leasing services for Cedar, a wholly-owned subsidiary of the Company, pursuant to the Wheeler Real Estate Company Management Agreement. During the three and nine months ended September 30, 2023, Cedar paid the Company $0.7 million and $1.1 million, respectively, for these services. During the three and nine months ended September 30, 2022, Cedar paid the Company $0.1 million and $0.1 million, respectively, for these services. The Operating Partnership and Cedar’s operating partnership, Cedar Realty Trust Partnership, L.P., are party to a cost sharing and reimbursement agreement, pursuant to which the parties agreed to share costs and expenses associated with certain employees, certain facilities and property, and certain arrangements with third parties (the “Cost Sharing Agreement”). Related party amounts due to the Company from Cedar as of September 30, 2023 and December 31, 2022 are comprised of:
(a) Includes allocations for executive compensation and directors' liability insurance. In 2022, the were no allocations made to Cedar for these services due to certain limitations set forth in the Cost Sharing Agreement. (b) These related party amounts have been eliminated for consolidation purposes. Investment securities - related party The Company has investments held with SAI, a related party. See Note 4 in this Form 10-Q for additional details.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Series D Preferred Stock Redemption update The first monthly Holder Redemption Date occurred on October 5, 2023. The Company received fully complete and timely redemption requests from 50 Series D Preferred Holders, collectively redeeming 172,911 shares of Series D Preferred Stock for a redemption price per share of approximately $37.48. The Company settled the redemption price in Common Stock. The volume weighted average of the closing sales price, as reported on the Nasdaq, per share of Common Stock for the ten consecutive trading days immediately preceding, but not including, the Holder Redemption Date was approximately $2.89. Accordingly, the Company issued 2,245,591 shares of Common Stock in settlement of an aggregate redemption price of approximately $6.5 million. The second monthly Holder Redemption Date occurred on November 6, 2023. The Company received fully complete and timely redemption requests from 90 Series D Preferred Holders, collectively redeeming 319,762 shares of Series D Preferred Stock for a redemption price per share of approximately $37.76. The Company settled the redemption price in Common Stock. The volume weighted average of the closing sales price, as reported on the Nasdaq, per share of Common Stock for the ten consecutive trading days immediately preceding, but not including, the Holder Redemption Date was approximately $0.84. Accordingly, the Company issued 14,355,723 shares of Common Stock in settlement of an aggregate redemption price of approximately $12.1 million. The Company recognized an aggregate $5.9 million gain as a result of the difference between the VWAP used to calculate the number of shares of Common Stock distributed to redeeming holders of Series D Preferred Stock and the fair market value of such Common Stock on each of the two Holder Redemption Dates. Adjustment to Conversion Price of Convertible Notes Because at least 100,000 shares of the Series D Preferred Stock have been redeemed, pursuant to Section 14.02 (Optional Conversion) of the indenture governing the Company’s Convertible Notes (the "Convertible Notes Indenture"), effective October 5, 2023, the conversion price for the Convertible Notes was adjusted to $1.59 per share of the Company’s Common Stock, (15.72 shares of Common Stock for each $25.00 of principal amount of the Convertible Notes being converted). For the November redemptions, the lowest price at which any Series D Preferred Stock was converted by a holder into Common Stock was approximately $0.84. Accordingly, pursuant to Section 14.02 (Optional Conversion) of the Convertible Notes Indenture, the conversion price for the Convertible Notes was further adjusted to $0.46 per share of Common Stock (54.05 shares of Common Stock for each $25.00 of principal amount of the Convertible Notes being converted), representing a 45% discount to $0.84.
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Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Preparation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles ("GAAP") for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. All material balances and transactions between the consolidated entities of the Company have been eliminated. All per share amounts, common units and shares outstanding, warrants, and conversion features of our 7.00% Subordinated Convertible Notes due 2031 (the "Convertible Notes") for all periods presented reflect the one-for-ten Reverse Stock Split, which took effect on August 17, 2023. The financial statements are prepared on the accrual basis in accordance with GAAP, which requires management to make estimates and assumptions that affect the disclosure of contingent assets and liabilities, the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the periods covered by the financial statements. Actual results could differ from these estimates. The unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"). |
Principles of Consolidation | The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q include Cedar starting from the date of the Cedar Acquisition. We have determined that this acquisition is not a variable interest entity, as defined under the consolidation topic of the Financial Accounting Standards Board (the "FASB"), Accounting Standards Codification, or ASC, and we evaluated such entity under the voting model and concluded we should consolidate the entity. Under the voting model, we consolidate the entity if we determine that we, directly or indirectly, have greater than 50% of the voting rights and that other equity holders do not have substantive participating rights. |
Recently Issued and Adopted Accounting Pronouncements | Accounting standards that have been recently issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. |
Reclassifications | The Company has reclassified certain prior period amounts in the accompanying condensed consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net loss. All per share amounts, common units and shares outstanding, warrants, and conversion features of the Convertible Notes for all periods presented reflect our one-for-ten Reverse Stock Split which was effective August 17, 2023. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow information | Supplemental Condensed Consolidated Statements of Cash Flows Information
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Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of dispositions | The following properties were sold during the nine months ended September 30, 2023 and 2022 (in thousands, unaudited):
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Deferred Costs and Other Assets, Net (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of details of deferred costs, net of amortization and other assets | Deferred costs and other assets, net of accumulated amortization are as follows (in thousands, unaudited):
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Rental Revenue and Tenant Receivables (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of revenue | The below table disaggregates the Company’s revenue by type of service (in thousands, unaudited):
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Loans Payable (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans payable | The Company’s loans payable consist of the following (in thousands, except monthly payment):
(1) In October 2026, the interest rate changes to variable interest rate equal to the 5 years U.S. Treasury Rate plus 2.70%, with a floor of 4.25%. (2) Collateralized by 22 properties. (3) Collateralized by JANAF properties. (4) Collateralized by 10 Cedar properties. (5) Contractual interest rate weighted average. Interest expense on the Convertible Notes consisted of the following (in thousands, except for shares ):
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Schedule of company's scheduled principal repayments on indebtedness | The Company’s scheduled principal repayments on indebtedness as of September 30, 2023 are as follows (in thousands, unaudited):
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Derivative Liabilities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stockholders' equity note, warrants or rights | Warrants to purchase shares of Common Stock outstanding at September 30, 2023 and December 31, 2022 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value measurement inputs and valuation techniques | In measuring the warrant liabilities, the Company used the following inputs in its Monte Carlo model:
In measuring the embedded derivative liability, the Company used the following inputs in its binomial lattice model:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the changes in fair value of the company's derivative liabilities | The following table sets forth a summary of the changes in fair value of the Company's derivative liabilities, which include both the warrant liabilities and embedded derivative liability (in thousands, unaudited):
|
Equity and Mezzanine Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in carrying value of Series D preferred stock | The changes in the carrying value of the Series D Preferred Stock for the nine months ended September 30, 2023 and 2022 are as follows (in thousands, unaudited):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of potentially dilutive shares | The following table summarizes the potential dilution of conversion of Operating Partnership common units ("Common Units"), Series B Preferred, Series D Preferred Stock, warrants and Convertible Notes into the Company's Common Stock. These have been excluded from the Company’s diluted earnings per share calculation because their inclusion would be antidilutive.
|
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Schedule of summary of preferred stock dividends | The following table summarizes the Series D Preferred Stock dividends (in thousands except for per share amounts, unaudited):
|
Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party activity | Related party amounts due to the Company from Cedar as of September 30, 2023 and December 31, 2022 are comprised of:
(a) Includes allocations for executive compensation and directors' liability insurance. In 2022, the were no allocations made to Cedar for these services due to certain limitations set forth in the Cost Sharing Agreement. (b) These related party amounts have been eliminated for consolidation purposes.
|
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 11, 2023
USD ($)
|
Aug. 17, 2023 |
Jun. 08, 2023
USD ($)
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
|
Summary of Significant Accounting Policies [Line Items] | |||||||
Reverse stock split, conversion ratio | 0.1 | ||||||
Other expense | $ 2,233 | $ 0 | $ 5,273 | $ 691 | |||
Repayments of debt | 3,116 | $ 0 | |||||
Transaction costs from preferred redemptions and stock split | 1,100 | 1,300 | |||||
Series D Preferred Stock | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Amount of exchange offer for outstanding shares | 0 | 2,400 | |||||
Convertible Notes | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Repayments of debt | $ 1,100 | $ 1,600 | |||||
Convertible Notes | 7.00% Senior Subordinated Convertible Notes due 2031 | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Interest rate, percent | 7.00% | 7.00% | |||||
Repayments of debt | $ 900 | $ 600 |
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Non-Cash Transactions: | ||
Conversion of common units to Common Stock and Preferred stock to Common Stock | $ 57 | $ 160 |
Accretion of Preferred Stock discounts | 438 | 438 |
Buildings and improvements included in accounts payable, accrued expenses and other liabilities | 1,979 | 736 |
Other Cash Transactions: | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 798 | 700 |
Cash paid for interest | 18,951 | 14,137 |
Series B Preferred Stock | ||
Non-Cash Transactions: | ||
Conversion of common units to Common Stock and Preferred stock to Common Stock | 0 | 90 |
Series D Preferred Stock | ||
Non-Cash Transactions: | ||
Conversion of common units to Common Stock and Preferred stock to Common Stock | $ 140 | $ 0 |
Real Estate - Additional Information (Details) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Aug. 18, 2023
USD ($)
a
|
Feb. 21, 2023
USD ($)
a
|
Sep. 30, 2023
USD ($)
a
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
a
|
Sep. 30, 2022
USD ($)
|
|
Business Acquisition [Line Items] | ||||||
Impairment of assets held for sale | $ | $ 0 | $ 0 | $ 0 | $ 760,000 | ||
Disposal Group | Harbor Pointe Land Parcel | ||||||
Business Acquisition [Line Items] | ||||||
Area of land | a | 5 | 5 | ||||
St George Plaza | ||||||
Business Acquisition [Line Items] | ||||||
Area of land | a | 2.5 | |||||
Purchase of land | $ | $ 200,000 | |||||
Devine Street Land | ||||||
Business Acquisition [Line Items] | ||||||
Area of land | a | 3.25 | |||||
Purchase of land | $ | $ 4,100,000 |
Real Estate - Dispositions (Details) - Disposal Group, Disposed of by Sale - USD ($) $ in Thousands |
Jul. 11, 2023 |
Jan. 11, 2022 |
---|---|---|
Carll's Corner Outparcel | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contract Price | $ 3,000 | |
Gain (Loss) | 2,204 | |
Net Proceeds | $ 2,759 | |
Walnut Hill Plaza | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contract Price | $ 1,986 | |
Gain (Loss) | (15) | |
Net Proceeds | $ 1,786 |
Deferred Costs and Other Assets, Net - Deferred Costs and Other Assets, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | $ 30,741 | $ 35,880 |
Lease origination costs, net | 6,573 | 7,165 |
Tenant relationships, net | 328 | 500 |
Prepaid expenses | 3,944 | 1,456 |
Other | 3 | 21 |
Leases in place, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | 18,374 | 24,956 |
Ground lease sandwich interest, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | 1,188 | 1,393 |
Legal and marketing costs, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | $ 331 | $ 389 |
Deferred Costs and Other Assets, Net - Additional Information (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Finite-lived intangible assets, accumulated amortization | $ 68.2 | $ 62.4 |
Rental Revenue and Tenant Receivables - Additional Information (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Allowance for uncollectible accounts | $ 1.3 | $ 3.1 |
Receivables, net | ||
Disaggregation of Revenue [Line Items] | ||
Recoveries related to tenant receivables | $ 7.5 | $ 6.5 |
Loans Payable - Schedule of Company's Scheduled Principal Repayments on Indebtedness (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
For the remaining three months ended December 31, 2023 | $ 361 |
December 31, 2024 | 7,220 |
December 31, 2025 | 12,313 |
December 31, 2026 | 16,260 |
December 31, 2027 | 3,049 |
December 31, 2028 | 12,924 |
Thereafter | 443,806 |
Total principal repayments and debt maturities | $ 495,933 |
Loans Payable - Summary of Interest related to the Convertible Notes (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Debt Instrument [Line Items] | ||
Fair value adjustment | $ 851 | $ 944 |
Interest expense | $ 2,569 | 2,677 |
7.00% Senior Subordinated Convertible Notes due 2031 | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, percent | 7.00% | |
Interest expense | $ 1,718 | $ 1,733 |
Series B Preferred Stock | ||
Debt Instrument [Line Items] | ||
Payment of interest expense (in shares) | 0 | 432,994 |
Series D Preferred Stock | ||
Debt Instrument [Line Items] | ||
Payment of interest expense (in shares) | 160,455 | 0 |
Derivative Liabilities - Additional Information (Details) |
Sep. 30, 2023
agreement
|
---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Number of agreement | 2 |
Derivative Liabilities - Changes in Fair Value of the Derivative Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at the beginning of period | $ 7,111 | $ 4,776 |
Balance at end of period | 13,392 | 7,111 |
Warrants | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Change in fair value | (466) | (753) |
Convertible Notes | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Change in fair value | $ 6,747 | $ 3,088 |
Equity and Mezzanine Equity - Changes in Carrying Value of Series D Preferred (Details) - Series D Preferred Stock - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Beginning balance | $ 107,866 | $ 103,621 | $ 101,518 | $ 97,033 | $ 94,791 | $ 92,548 |
Accretion of Preferred Stock discount | 124 | 124 | 125 | 125 | 124 | 125 |
Conversion of Series D Preferred Stock to Common Stock | (140) | |||||
Undeclared dividends | 2,269 | 2,115 | 2,118 | 2,118 | 2,118 | 2,118 |
Paid-in-kind interest, issuance of Preferred Stock | 2,006 | |||||
Accretion to liquidation preference | 13,542 | |||||
Series D Preferred Stock redemptions | (6,448) | |||||
Ending balance | $ 117,353 | $ 107,866 | $ 103,621 | $ 99,276 | $ 97,033 | $ 94,791 |
Preferred stock, liquidation price per share (in dollars per share) | $ 25.00 | |||||
Preferred stock, accretion to redemption value, adjustment | $ 13,542 |
Equity and Mezzanine Equity - Dividends Declared (Details) - Series D Preferred Stock - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Class of Stock [Line Items] | ||
Arrears | $ 6,502 | $ 6,354 |
Per Share (in dollars per share) | $ 1.97 | $ 2.01 |
Commitments and Contingencies (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023
USD ($)
option
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
option
|
Sep. 30, 2022
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||||
Weighted-average remaining lease term | 36 years | 34 years | 36 years | 34 years |
Total rent expense | $ | $ 0.3 | $ 0.3 | $ 0.9 | $ 0.8 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, number of renew options | option | 1 | 1 | ||
Operating lease, renewal term (in years) | 5 years | 5 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, renewal term (in years) | 50 years | 50 years |
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Related Party Transaction [Line Items] | ||||
Revenues | $ 25,204 | $ 18,718 | $ 76,110 | $ 49,694 |
Related Party | Property Management and Leasing Services | Cedar | ||||
Related Party Transaction [Line Items] | ||||
Revenues | $ 700 | $ 100 | $ 1,100 | $ 100 |
Related Party Transactions - Schedule of Related Party Activity (Details) - Related Party - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Related Party Transaction [Line Items] | ||
Amounts of transaction | $ 8,386 | $ 7,328 |
2022 financings and real estate taxes | ||
Related Party Transaction [Line Items] | ||
Amounts of transaction | 7,166 | 7,166 |
Management fees | ||
Related Party Transaction [Line Items] | ||
Amounts of transaction | 220 | 110 |
Leasing commissions | ||
Related Party Transaction [Line Items] | ||
Amounts of transaction | 555 | 85 |
Cost Sharing Agreement allocations | ||
Related Party Transaction [Line Items] | ||
Amounts of transaction | 424 | 0 |
Other | ||
Related Party Transaction [Line Items] | ||
Amounts of transaction | $ 21 | $ (33) |
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