Wheeler Real Estate Investment Trust, Inc. Q1 FY2021 earnings call

• Bruce noted strong collections, leasing volumes picking up, and positive spreads. Closed joint venture for Northeast Heights redevelopment, $114 million financing, and sale of The Commons in Dubois, PA. - Robin discussed rent collections (95.7% at quarter end, 96.7% in April), leasing activity including 31 leases totaling 268,200 sq ft, specific lease deals at Norwood, Yorktowne, Carmans Plaza, etc., and commencement of construction on the first phase of Northeast Heights with joint venture. - Phil highlighted closing of refinancing, $114 million non-recourse mortgage loan with details on loan terms, reduced revolving credit facility balance, and cash position.

For the first quarter, operating FFO was $8.6 million or $0.62 per share and property NOI was $20.6 million. Same-property NOI decreased 5.1% compared to the comparable period in 2020. The portfolio is focused on grocery-anchored shopping centers, which have proven resilient. Collections were strong at nearly 96% in Q1 with another 100 basis points improvement in April, approaching pre-COVID levels. Leasing volumes are picking up with positive spreads, especially in new leases. The redevelopment portfolio has an occupancy of 73% while the same-store leased portfolio is at 90.1%.

• Anticipate significant growth in occupancy and NOI during recovery phase. Applying a 7% cap rate to Q1 annualized NOI results in value per share over $26. Revolving credit facility maturing in September 2021 can be extended at option for one additional year.

• Market dynamics and cap rate differences; current share price valuing at over an 8% cap rate which is off market. Potential delays in redevelopment projects and general economic uncertainties affecting retail real estate.

Q: Todd Thomas asked about Cedar's 10% interest and capital commitment in the Northeast Heights joint venture, rights to future phases, and occupancy trough.

A: Bruce and Robin discussed the JV structure, potential future phases, and occupancy considering redevelopment-related vacancy.

Q: RJ Milligan asked about cap rates and comparable transactions.

A: Bruce noted blended cap rate of 6.7% on financed assets and active transaction activity in grocery-anchored assets with favorable cap rates.

Q: Floris Van Dijkum asked about joint ventures and portfolio management.

A: Bruce discussed monitoring RPT's joint venture and potential portfolio management strategies like arbitraging assets for leverage reduction or new investments.