Wheeler Real Estate Investment Trust, Inc. Q2 FY2020 earnings call

Crisis Management - Formed a 12-person cross-functional crisis management committee that performed well during the pandemic. - Waived board fees for the second and third quarters. ### Collections - Strong collections with over 80% cash collections in June and over 88% in July. - Extended rent deferral to tenants with customized terms based on tenant type. - Executed 92 tenant assistant agreements and 74 deferral agreements totaling $2 million of base rent in Q2 for 630,000 square feet. ### Redevelopment - Finalized a 20-year build-to-suit lease with the District of Columbia for a 260,000 square foot office building with street-level retail, a key milestone for the Northeast Heights redevelopment project. - Reduced capital spend for mixed-use urban redevelopments and value-add renovations to ~$20 million. - Fishtown crossing progressing with Starbucks delivered, Gamestop and Nifty 50 scheduled for August, etc. ### Leasing - Signed 21 leases totaling 182,300 square feet, 17 renewals totaling 170,000 square feet with an average rent of $9.77 and positive spread of 2.6%, and 4 new leases with average base rent of $22.60 per square foot and negative spread of 30%. ### Balance Sheet - Sold Metro Square for $4.3 million. - Modified credit facility to give greater breathing room on covenant and borrowing base. - Repaid $70 million of borrowings under revolving credit facility, leaving $74.5 million availability and $4.5 million unrestricted cash.

Cedar Realty Trust's total annualized base rent is $102 million. Grocer anchors contribute $29 million (28.5%) with a collection rate of 99.7%. Fast casual restaurants contribute $7.1 million (7%) with a collection rate of 77%. Dollar stores contribute $5 million (4.9%) with a collection rate of 90%. Medical facilities contribute $4.6 million (4.5%) with a collection rate of 75%. Discount department stores contribute $4.5 million (4.4%) with a collection rate of 81%. Other essential uses like banking, drug stores, etc., have collection rates over 95%. Cash collections in April, May, and June were 76%, 76%, and 81% respectively, with a 77.4% collection rate for the quarter, and 88% collection in July.

Term Loan Maturity - Have a $75 million unsecured term loan maturing in February 2021. - Considering three options for refinancing: secure debt market (CMBS and life co-loans with 60%-70% LTV, 25-30-year amort, rates 3.5%-4%), syndicated bank unsecured loans, and a three-year unsecured term loan. ### Line of Credit - Line of credit matures in September 2021 with a one-year extension option at election.

Tenant Non-Payments - Uncertainty regarding tenants in fitness and movie industries post-COVID. - Some tenants in negotiation for rent deferral with uncertain outcomes. ### Credit Risk - Potential credit risk in leasing certain tenants, especially those in at-risk retail categories. ### Market Uncertainties - Unpredictability in capital markets and potential impact on refinancing and asset values.

Q: Hey good afternoon everybody. Obviously pretty strong rent collections in July at 80% Robin I appreciate you sort of running through the different buckets but is there a way that you could just bucket the additional 12 versus working on deferrals or expectations that rent won't be paid?

A: Yes. Thank you R.J. So the way that we are looking at it is really focusing on the different types of tenants and based on the essential retail mix that we have and the level of collection that we have in July and even so far in August, the types of the collections that we have so far we think that we will have that level coming into August as well and Phil can kind of talk to you about how we have bifurcated the portfolio. I think he went through that a little bit in his comments based on how we typically forecast and how he have forecasted now based on tenants we have paid rent historically through COVID and tenants that we think will not pay based on what we've seen and that's how we've kind of bracketed out the bucket.

Q: Hi, thanks. Good afternoon. Just first question I wanted to ask about the lease said Northeast Heights, it seems like there would be an opportunity to monetize that lease and development up front take a lot of risk off the table and maybe raise capital for deleveraging. How are you weighing your potential options there?

A: Hi Todd it's Bruce. Thanks for asking that question. Of course we're very excited about the lease and it's certainly as you correctly note something of value today just by its very execution even before we've started the construction. It certainly isn't something that caught us by surprise been working on it for the better part of the year and so we've, as the lease started to crystallize and as we realized with a fairly high degree of certainty that it was going to come together we started exploring a whole slew of different options and we continue to do that. We're not yet at a point where we can publicly disclose what our plans are but certainly we're very excited about this lease as it represents the first phase of a significant project that we think will add a lot of value both to our shareholders and to the community and so you are correct one path would be to potentially monetize it and de-risk but there are a lot of considerations that go into how we're going to exploit this lease and also how we're going to do right by the folks that we are hoping to help within downtown ward 7. So certainly something that we've been actively exploring that. We will continue to explore now that it's now been finalized.