Wheeler Real Estate Investment Trust, Inc. Q4 FY2020 earnings call

• Acknowledged team's commitment during the pandemic, with reduced headcount by ~20% and G&A reduced by ~$2 million. Mothballed South Quarter Crossing redevelopment and paused smaller capital projects. - Progress on large-scale refinancing of unsecured debt, joint venture for DGS building (first phase of Northeast Heights redevelopment), and exploring asset sales. - Leasing: 222,000 square feet leased in Q4, same-center leased occupancy 91.2% at year-end 2020. - Value-add renovations: Fishtown Crossing facade renovation completed, Yorktowne renovation anticipated, Norwood Shopping Center grocer expansion, South Quarter Crossing on hold with focus on Revelry and Northeast Heights, Revelry site planning with potential new anchor, Northeast Heights DGS building construction to commence in Spring 2021.

For the fourth quarter of 2020, operating FFO was $9.8 million or $0.71 per share. For the full year 2020, operating FFO was $40.3 million or $2.91 per share. Same-property NOI decreased 6.8% excluding redevelopment properties and 9.3% including redevelopments in 2020. The fourth quarter 2020 collections rate totaled 94.3%, a 3.6% increase over the third quarter collections rate. The top ten tenants, which are essentials-grocer anchored retailers (except La Fitness and Staples), represent 30% of annualized base rent.

• Not providing 2021 FFO guidance. - Expect decrease in lease termination income by $7.5 million. Same-property NOI decrease 1%-3% excluding redevelopments and 2%-4% including redevelopments. Property NOI decrease $2.5 million from 2020 dispositions. Interest expense decrease ~$1.7 million prior to refinancing. No 2021 debt maturities, but advancing refinancing of 2022 debt.

• Continued pandemic impact on tenant closures and financial performance. - Uncertainty in rent collections from cash-based tenants (15% of rental revenue). - Timing and outcome of asset dispositions and refinancing.

Q: Todd Thomas asked about guidance trajectory, quarterly cadence, and FFO guidance possibility.

A: Philip Mays responded that first quarter has tough comp, 1%-3% full-year same-property NOI guidance, and uncertainty from pandemic risks, accounting for cash-based tenants, and cedar-specific matters.

Q: Floris van Dijkum inquired about lease spreads, Kroger vacancy prospects, refinancing details, and headcount reduction permanence.

A: Robin Zeigler discussed lease spreads, Robin Zeigler and Bruce Schanzer talked about Kroger vacancy and marketing, Philip Mays provided refinancing details, and Bruce Schanzer addressed headcount reduction being likely permanent.