Wheeler Real Estate Investment Trust, Inc. Q3 FY2020 earnings call

• Core business strategy: Focus on a core portfolio of grocery anchored shopping centers in the D.C. to Boston corridor and mixed use urban redevelopment projects with workforce housing. - Pandemic responses: Focused on helping tenants survive, addressing near-term debt maturities, advancing redevelopment projects (e.g., Northeast Heights DGS building), and implementing a zero-based approach to G&A to achieve savings. - Third quarter performance: Collections rate of 91%, addressed near-term debt, made progress on redevelopment projects like Northeast Heights, and expects G&A savings over $2 million in 2021.

FFO increased to $8 million or $0.09 per share compared to $5.7 million or $0.06 per share in the previous quarter. Same property NOI decreased 9.1% over the comparable period in 2019, marking an improvement from the 14.6% decrease in the previous quarter. Total tenant billings for the quarter were $31.6 million. Of this, $30.1 million (91%) was collected and recognized as revenue, and an additional $1.1 million (3%) was recognized as collectible, resulting in 94% of billings being recognized as revenue for the quarter. The $1.9 million (6%) not recognized consisted of $1.8 million not paid by tenants and $100,000 waived.

• Expect to break ground on the DGS office building in early 2021 with ongoing work on financing and equity partnerships. - Anticipate closing on a permanent refinancing later in 2020 or early 2021. - Expect full-year G&A savings of over $2 million through the zero-based cost savings approach.

• Uncertainty related to the ongoing pandemic affecting tenant payments and market conditions. - Risk of challenges in securing favorable terms for refinancing near-term debt maturities. - Uncertainty in the asset sale market impacting disposition plans.

Q: Todd Thomas asked about the progress and funding of the DGS office building and pre-leasing of ground floor retail.

A: Bruce said they're working with equity partners and construction financing, and Robin mentioned relocating East River tenants to the ground floor of DGS and looking at fast casual restaurants for remaining retail space.

Q: Todd Thomas inquired about the asset sales market and Glen Allen.

A: Bruce discussed the market for grocery anchored centers with cap rates in the low 6s to low 7s, and Phil mentioned liquidity and loan terms for financing.

Q: Floris van Dijkum asked about refinancing, asset sales liquidity, and leasing.

A: Philip talked about liquidity and loan preferences between life companies and CMBS, Bruce and Robin discussed asset sales and leasing strategy