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VIRGINIA BEACH, Va., March 15, 2018 (GLOBE NEWSWIRE) — Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) (“Wheeler” or the “Company”), a fully-integrated, self-managed commercial real estate investment company focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers, has responded to the news that Southeastern Grocers (“SEG”), the parent company to its largest tenant, BI-LO, has filed for a pre-package Chapter 11 bankruptcy.
“Although no tenant bankruptcy is ever good news, over the past several weeks, we have worked diligently and believe we have accomplished a great deal to mitigate the potential impact on our portfolio,” stated David Kelly, President and Chief Executive Officer. “With the speculation in the market over the last several weeks, this removes a significant amount of uncertainty around the SEG bankruptcy and allows us to move forward with our strategic efforts to deleverage through selective asset sales and refinancing activities.”
Through the normal course of business and active portfolio management, the Company has been in ongoing discussions with SEG to identify the potential impact and preemptively prepare solutions to reduce the Company’s exposure through a combination of lease modifications and securing back-fill tenants. Below is a list of preliminary answers to questions pertaining to SEG’s recent announcement:
Q: What is a “Pre-Package Chapter 11 Bankruptcy”?
A: SEG is seeking a pre-packaged bankruptcy filing, which means that they have negotiated agreements with their creditors prior to the filing which are legally binding in the bankruptcy case. Typically, the bankruptcy process is shorter, minimizing the impact on the business operations and speeds up the process with the creditors.
Q: How Many Properties are Impacted?
A: WHLR owns a total of 19 stores leased to BI-LO, Winn-Dixie and Harvey’s aggregating 721,612 square feet. The Company and SEG have preemptively modified 17 of the affected lease agreements. These modifications include a combination of term adjustments, rent adjustments (decreases and increases), deferred landlord contributions for remodels and recaptures. All lease modifications are subject to and conditioned bankruptcy court approval.
Shopping CenterCityStateSq. FtShopping CenterCityStateSq. Ft1.Alex City MarketplaceAlexander CityAL44,93211.Sangaree PlazaSummervilleSC47,6982.Butler SquareMauldinSC49,36512.South Park Shopping CenterMullinsSC33,2183.CypressBoiling SpringsSC47,26013.St. George PlazaSaint GeorgeSC33,5184.Darien CentreDarienGA26,00114.St. Matthews Shopping CenterSt MatthewsSC21,6135.Grove ParkOrangeburgSC41,60015.Sunshine PlazaLehigh AcresFL47,9226.Ladson CrossingLadsonSC33,40716.Surrey PlazaHawkinsvilleGA29,0007.Lake Greenwood CrossingGreenwoodSC33,21817.Tampa FestivalTampaFL45,6008.Lake Murray CenterLexingtonSC33,21818.Tri-County PlazaRoystonGA36,3779.Litchfield Market VillagePawleys IslandSC37,70019.Twin City CrossingBatesburgSC41,98010.Parkway PlazaBrunswickGA37,985
Q: How many stores are being recaptured?
A: In total there are five anticipated recaptures. The Company has elected to recapture four locations, Ladson Crossing, St. Matthews, South Park and Tampa Festival. Based on other grocery operators’ interest, the Company believes there is an opportunity to enhance the value of these centers outside of SEG tenancy.
In addition to these recaptures, and as previously announced during the second quarter of 2017, BI-LO at Cypress Shopping Center in Boiling Springs, SC will not be renewing its lease that is due to expire on March 31, 2018. The Company is in preliminary negotiations with two grocery operators to backfill this location.
Q: When do you expect to recapture these stores?
A: While this may occur earlier, the effective date on three of the leases is anticipated to be on April 30, 2018, with one more lease becoming effective on June 30, 2018.
Q: Was there any monetary consideration given as part of the termination agreements?
A: Yes, through a combination of termination fees and existing lease obligations, the Company received approximately $590,000. At the request of the potential backfill operators, the Company has retained the furniture, fixtures and equipment for three of the four locations, which will be used as part of the backfill plan going forward.
Q: What is the estimated annualized base rent Impact?
A: Assuming the prepackaged negotiated terms that the Company has executed are affirmed by the bankruptcy court, it is estimated that the initial annualized base rent impact of these lease modifications and recaptures will be approximately $2.5 million. However, the Company believes the impact could be reduced to less than $1.5 million upon the successful backfill of the recaptured locations.
Q: What will your SEG exposure be if all of the lease amendments are approved by the bankruptcy court?
A: Based on the annualized base rent from its core portfolio, the Company’s exposure to SEG will be reduced from 12.21% of ABR to 7.57% of ABR.
Q: What is the timing and potential outcome?
A: WHLR cannot speculate specifically on the timing. However, according to SEG’s press release issued today, all general unsecured claims, including supplier partners and trade creditors, will be paid in full in ordinary course. In addition, SEG stated that they are filing pre-packaged (pre-pack) chapter 11 cases to efficiently execute restructuring.
Mr. Kelly continued, “Had it not been for the strong fundamentals of our portfolio the impact would have been far greater. The quality of the real estate has given us the opportunity to revitalize these centers, secure longer term stability and reduce our exposure to any one singular tenant.”
About Wheeler Real Estate Investment Trust, Inc.
Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully-integrated, self-managed commercial real estate investment company focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers. Wheeler’s portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive risk-adjusted returns, with an emphasis on grocery-anchored retail centers. Additional information about Wheeler Real Estate Investment Trust, Inc. can be found at the Company’s corporate website: www.whlr.us.
This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. The Company’s expected results may not be achieved, and actual results may differ materially from expectations. Specifically, the Company’s statements regarding: (i) the bankruptcy court’s prospective approval of SEG’s bankruptcy plan; (ii) the Company’s ability to backfill vacancies created by the SEG bankruptcy, (iii) the exact date of Company recaptures; (iv) the Company’s ability to mitigate the potential impact of the SEG bankruptcy on its portfolio; and (v) the estimated financial impact of SEG’s bankruptcy upon the Company’s financial position are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Company’s control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors that could cause the Company’s actual results to differ materially from those expressed or forecasted in forward-looking statements are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward‐looking statements to reflect events or circumstances that arise after the date hereof.
President and CEO
VIRGINIA BEACH, Va., March 07, 2018 (GLOBE NEWSWIRE) — Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) (“Wheeler” or the “Company”) today reported operating and financial results for three months and year ending December 31, 2017.
Please note that there were two errors in last night’s press release. In the first bullet under “RECENT NEWS”, the date should have been December 31, 2017 not December 31, 2018. The second bullet should have referenced a savings of $9.7 million instead of $9.0 million. Both are corrected below.
Three Months Ended December 31, Years Ended December 31, 2017 2016 2017 2016Net loss per common share $(1.22) $(0.73) $(2.54) $(1.89)FFO per common share and common unit (0.56) (0.11) 0.19 0.37AFFO per common share and common unit 0.18 0.16 1.31 0.95
The Company recorded an impairment of $5.3 million on notes receivable and a $2.4 million reserve on receivables due from Sea Turtle Development and other related parties for property management and leasing services as of December 31, 2017.In order to increase financial flexibility, strengthen the balance sheet and facilitate strategic initiatives the Board of Directors ("the "Board") determined to suspend the dividend on the Company’s common stock, $0.01 par value per share ("Common Stock") and common unit ("Operating Partnership Unit" or "OP Unit") in our operating partnership, Wheeler REIT, L.P. (the "Operating Partnership") for the remainder of the year, generating 2018 cash savings of approximately $9.7 million.The Board of Directors retained KeyBanc Capital Markets to lead the process in identifying and evaluating strategic alternatives in order to maximize shareholder value.
2017 FOURTH QUARTER HIGHLIGHTS (all comparisons to the same prior year period unless otherwise noted)
Net loss attributable to Wheeler Common Stock Shareholders of $10.7 million, or ($1.22) per share.Total revenue from continuing operations increased by 18.9% or $2.3 million.Property Net Operating Income ("NOI") from continuing operations increased by 22.5% to approximately $10.0 million.Adjusted Funds from Operations ("AFFO") of $0.18 per share of the Company’s Common Stock and OP Unit versus guidance of $0.35 – $0.40. AFFO includes a provision on related party receivables of $2.4 million. Excluding these amounts AFFO would be $0.34 per share and OP unit.The Company amended and restated the terms of its KeyBank Credit agreement to extend the maturity date of its revolving credit facility by two years, increase the borrowing limit to $52.5 million from $50 million, increase the accordion to $150 million from $100 million and extend the date by which the Company must repay $15.5 million of the current outstanding balance until July 1, 2018.For the three month period, the Company declared quarterly cash dividends of approximately $0.34 per share of Common Stock and OP Unit. On an annualized basis, this amounted to a dividend of $1.44 per share of Common Stock and OP Unit, given the first quarter dividend of $0.42 per share of Common Stock and OP Unit.
2017 YEAR-TO-DATE HIGHLIGHTS (all comparisons to prior year unless otherwise noted)
Net loss attributable to Wheeler Common Stock Shareholders of $22.1 million, or ($2.54) per share.Total revenue from continuing operations increased by 32.6% or $14.4 million.NOI from continuing operations increased by 35.1% to approximately $40.8 million.AFFO of $1.31 per share of Common Stock and OP Unit versus guidance of $1.48 to $1.55. AFFO includes a provision on related party receivables of $2.4 million. Excluding these amounts AFFO would be $1.47 per share and OP unit.Generated $460 thousand in lease termination fees primarily as a result of the early closure of BI-LO at Shoppes at Myrtle Park.Completed sales of discontinued operations and assets held for sale resulting in a total gain of $1.5 million.Completed sale of Steak n’ Shake out parcel at Rivergate resulting in a total gain of $1.0 million.
The Company’s cash and cash equivalents were $3.7 million at December 31, 2017, compared to $4.9 million at December 31, 2016.Wheeler’s net investment properties as of December 31, 2017 totaled at $384.3 million, as compared to $388.9 million as of December 31, 2016.On December 12, 2017, the Company extended the $1.27 million Monarch Bank Building loan to June 2019 with monthly principal and interest payments of $7,340 at a rate of 4.85%.On December 21, 2017, the Company amended and restated the terms of its KeyBank revolving line of credit agreement. The agreement increases the borrowing capacity from $50.0 million to $52.5 million and increases the accordion feature by $50.0 million to $150.0 million.On December 21, 2017, the Company paid $262 thousand to satisfy the Columbia Fire Station loan in full.The Company’s total debt was $313.8 million at December 31, 2017, compared to $315.0 million at December 31, 2016 (including debt associated with assets held for sale). Wheeler’s weighted-average interest rate and term of its debt was 4.6% and 4.81 years, respectively, at December 31, 2017, compared to 4.3% and 5.55 years (including debt associated with assets held for sale), respectively, at December 31, 2016.
Subsequent to the year ended December 31, 2017:
The Company extended the $3.00 million bank line of credit to June 15, 2018 with interest only payments due monthly at a rate of Libor + 3.00% with a floor of 4.25%.The Company, issued and sold 1,363,636 shares of Series D Cumulative Convertible Preferred Stock (the "Series D Preferred Stock"), in a public offering. Each share of Series D Preferred Stock was sold to investors at an offering price of $16.50 per share. Net proceeds from the public offering totaled $21.21 million, which includes the impact of the underwriters’ selling commissions and legal, accounting and other professional fees.
OPERATIONS AND LEASING
The Company’s leased percentage is 92.8% of GLA at December 31, 2017, including leases executed through January 10, 2018.For the three months ended December 31, 2017, the Company executed 22 lease renewals totaling 77,498 square feet at a weighted-average increase of $0.41 per square foot, representing an increase of 2.99% over prior rates.For the three months ended December 31, 2017, Wheeler signed 11 new leases totaling approximately 41,906 square feet with a weighted-average rate of $8.89 per square foot.For the year ended December 31, 2017, the Company executed 112 lease renewals totaling 570,461 square feet at a weighted-average increase of $0.29 per square foot, representing an increase of 3.10% over prior rates. In December 2016, at the time of the Village of Martinsville acquisition, a decrease in rent was anticipated for the 23,523 square foot space occupied by Office Max. The renewal occurred during the twelve months ended December 31, 2017 at a premium to the Company’s underwritten rental rate at the time of acquisition. If adjusted to exclude the Office Max renewal the weighted-average increase on renewals for the twelve months ended December 31, 2017 would total $0.36 per square foot, representing an increase of 3.91% over prior rates.For the year ended December 31, 2017, Wheeler signed 55 new leases totaling approximately 160,341 square feet with a weighted-average rate of $11.87 per square foot.Approximately 9.39% of Wheeler’s gross leasable area ("GLA") is subject to leases that expire during the year ending December 31, 2018. Of the GLA expiring during the year ending December 31, 2018, 47.6% of the GLA is subject to renewal options.In September 2017, the Company modified leases with two anchor tenants. The lease modifications include a reduction of lease term from 2028 to 2023 on 34,264 square feet and no change in the 2018 lease expiration term on 33,218 square feet. The overall weighted average base rent reduction is $5.59 per square foot.
For the three months ended December 31, 2017, the Company paid dividends of approximately $3.2 million to the holders of shares of our Common Stock and OP Units and approximately $2.3 million to our holders of shares of our Series A Preferred Stock, Series B Preferred Stock, and Series D Preferred Stock.For the year ended December 31, 2017, the Company declared approximately $13.5 million in dividend payments to the holders of shares of our Common Stock and OP Units and approximately $9.2 million to holders of our Series A Preferred Stock, Series B Preferred Stock, and Series D Preferred Stock.
SAME STORE RESULTS
Same-store NOI year-over-year growth for the year ended December 31, 2017 was 1.3% on a GAAP basis and (0.1)% on a cash basis. The same-store pool comprises the 3.2 million square feet that the Company owned as of January 1, 2016. Same-store results were driven by a decrease of 3.8% in property operating expenses primarily resulting from a decrease in real estate taxes, insurance and grounds and landscaping while property revenues remained relatively flat.
Subsequent to the year ended December 31, 2017, the Company acquired an 887,917 square foot office and retail property located in Norfolk, Virginia known as JANAF for $85.65 million.
Subsequent to the year ended December 31, 2017, the Company completed the sale of the Chipotle ground lease at Conyers Crossing for a contract price of $1.27 million, resulting in a gain of $1.05 million with net proceeds of $1.16 million.
CONFERENCE CALL DIAL-IN AND WEBCAST INFORMATION:
The dial-in numbers are:
Live Participant Dial-In (Toll-Free): 877-407-3101
Live Participant Dial-In (International): 201-493-6789
The conference call will also be webcast. To listen to the call, please go to the Investor Relations section of Wheeler’s website at www.whlr.us, or click on the following link: http://whlr.equisolvewebcast.com/q4-2017.
Further details regarding Wheeler Real Estate Investment Trust, Inc.’s operations and financials for the period ended December 31, 2017, including a supplemental presentation, are available through the Company’s website by visiting www.whlr.us.
ABOUT WHEELER REAL ESTATE INVESTMENT TRUST, INC.
Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing retail properties with a primary focus on grocery-anchored centers. Wheeler’s portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk-adjusted returns, with a particular emphasis on grocery-anchored retail centers. For additional information about the Company, please visit: www.whlr.us.
A copy of Wheeler’s Annual Report on Form 10-K, which includes the Company’s consolidated financial statements and management’s discussion & analysis of financial condition and results of operations, will be available upon filing via the U.S. Securities and Exchange Commission website (www.sec.gov) or through Wheeler’s website at www.whlr.us.
FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted EBITDA are non-GAAP financial measures within the meaning of the rules of the Securities and Exchange Commission. Wheeler considers FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted EBITDA to be important supplemental measures of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate and gains and losses from property dispositions, the Company believes that it provides a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from the closest GAAP measurement, net income.
Management believes that the computation of FFO in accordance with NAREIT’s definition includes certain items that are not indicative of the operating performance of the Company’s real estate assets. These items include, but are not limited to, nonrecurring expenses, legal settlements, legal and professional fees, and acquisition costs. Management uses AFFO, which is a non- GAAP financial measure, to exclude such items. Management believes that reporting AFFO and Pro Forma AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis. Management also believes that Property NOI, EBITDA and Adjusted EBITDA represent important supplemental measures for securities analysts, investors and other interested parties, as they are often used in calculating net asset value, leverage and other financial metrics used by these parties in the evaluation of REITs.
FORWARD LOOKING STATEMENTS
This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. The Company’s expected results may not be achieved, and actual results may differ materially from expectations. Specifically, the Company’s statements regarding: (i) the future generation of financial returns from the acquisition of retail focused properties in secondary and tertiary markets; (ii) the Company’s suspension of the Common Stock dividend and its ability to increase financial flexibility, strengthen the balance sheet and facilitate strategic initiatives from the cash savings generated by the suspension of the Common Stock and OP Unit dividend; (iii) the expected identification and implementation of strategic alternatives that could increase shareholder value are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release.
Additional factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
WHEELER INVESTMENT TRUST, INC.
(757) 627-9088 / firstname.lastname@example.org
Wheeler Real Estate Investment Trust, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(in thousands, except per share data)Three Months Ended December 31, Years Ended December 31,2017 2016 2017 2016REVENUE:Rental revenues$10,891 $9,377 $44,156 $33,165Asset management fees120 232 927 855Commissions141 130 899 964Tenant reimbursements2,905 2,149 11,032 8,649Development and other revenues239 139 1,521 527Total Revenue14,296 12,027 58,535 44,160OPERATING EXPENSES:Property operations3,922 3,399 15,389 11,898Non-REIT management and leasing services(598) 215 927 1,567Depreciation and amortization5,776 5,331 26,231 20,637Provision for credit losses2,378 229 2,821 425Impairment on notes receivable5,261 — 5,261 —Corporate general & administrative2,509 3,633 7,364 9,924Total Operating Expenses19,248 12,807 57,993 44,451Operating Income (Loss)(4,952) (780) 542 (291)Gain on disposal of properties— — 1,021 —Interest income363 391 1,443 692Interest expense(4,168) (3,555) (17,165) (13,356)Net Loss from Continuing Operations Before Income Taxes(8,757) (3,944) (14,159) (12,955)Income tax expense38 (107) (137) (107)Net Loss from Continuing Operations(8,719) (4,051) (14,296) (13,062)Discontinued OperationsIncome from discontinued operations— 21 16 136Gain on disposal of properties— (1) 1,502 688Net Income from Discontinued Operations— 20 1,518 824Net Loss(8,719) (4,031) (12,778) (12,238)Less: Net loss attributable to noncontrolling interests(519) (267) (684) (1,035)Net Loss Attributable to Wheeler REIT(8,200) (3,764) (12,094) (11,203)Preferred stock dividends(2,496) (2,450) (9,969) (4,713)Net Loss Attributable to Wheeler REIT CommonShareholders$(10,696) $(6,214) $(22,063) $(15,916)Loss per share from continuing operations (basic and diluted)$(1.22) $(0.73) $(2.70) $(1.98)Income per share from discontinued operations— — 0.16 0.09$(1.22) $(0.73) $(2.54) $(1.89)Weighted-average number of shares:Basic and Diluted8,739,455 8,497,738 8,654,240 8,420,374Dividends declared per common share$0.34 $0.42 $1.44 $1.68
Wheeler Real Estate Investment Trust, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands, except par value and share data)December 31,2017 2016ASSETS:Investment properties, net$384,334 $388,880Cash and cash equivalents3,677 4,863Restricted cash8,609 9,652Rents and other tenant receivables, net5,619 3,984Related party receivables, net— 1,456Notes receivable, net6,739 12,000Goodwill5,486 5,486Assets held for sale— 366Above market lease intangible, net8,778 12,962Deferred costs and other assets, net34,432 49,397Total Assets$457,674 $489,046LIABILITIES:Loans payable, net$308,122 $305,973Liabilities associated with assets held for sale— 1,350Below market lease intangible, net9,616 12,680Accounts payable, accrued expenses and other liabilities10,624 7,735Dividends payable5,480 3,586Total Liabilities333,842 331,324Commitments and contingencies— —Series D Cumulative Convertible Preferred Stock (no par value, 4,000,000 shares authorized,2,237,000 shares issued and outstanding; $55.93 million aggregate liquidation preference)53,236 52,530EQUITY:Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued andoutstanding)453 453Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 1,875,848and 1,871,244 shares issued and outstanding, respectively; $46.90 million and $46.78million aggregate liquidation preference, respectively)40,915 40,733Common Stock ($0.01 par value, 18,750,000 shares authorized, 8,744,189 and8,503,819 shares issued and outstanding, respectively)87 85Additional paid-in capital226,978 223,939Accumulated deficit(204,925) (170,377)Total Shareholders’ Equity63,508 94,833Noncontrolling interests7,088 10,359Total Equity70,596 105,192Total Liabilities and Equity$457,674 $489,046
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO)(in thousands)Three Months Ended December 31,Same Stores New Stores Total Period Over PeriodChanges2017 2016 2017 2016 2017 2016 $ %Net Loss$(8,420) $(3,558) $(299) $(473) $(8,719) $(4,031) $(4,688) (116.30)%Depreciation and amortization of real estate assets3,480 3,974 2,296 1,357 5,776 5,331 445 8.35%Loss on disposal of properties— — — — — — — —%Gain on disposal of properties-discontinued operations— 1 — — — 1 (1) (100.00)%FFO$(4,940) $417 $1,997 $884 $(2,943) $1,301 $(4,244) (326.21)%
Years Ended December 31,Same Stores New Stores Total Period Over PeriodChanges2017 2016 2017 2016 2017 2016 $ %Net Loss$(10,770) $(10,402) $(2,008) $(1,836) $(12,778) $(12,238) $(540) (4.41)%Depreciation and amortization of real estate assets14,749 17,388 11,482 3,249 26,231 20,637 5,594 27.11%Loss (gain) on disposal of properties12 — (1,033) — (1,021) — (1,021) (100.00)%Gain on disposal of properties-discontinued operations(1,502) (688) — — (1,502) (688) (814) (118.31)%FFO$2,489 $6,298 $8,441 $1,413 $10,930 $7,711 $3,219 41.75%
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Reconciliation of Adjusted Funds From Operations (AFFO)(in thousands, except per share data)Three Months Ended December 31, Years Ended December 31,2017 2016 2017 2016Net Loss$(8,719) $(4,031) $(12,778) $(12,238)Depreciation and amortization of real estate assets5,776 5,331 26,231 20,637Gain on disposal of properties— — (1,021) —Loss (gain) on disposal of properties-discontinued operations— 1 (1,502) (688)FFO(2,943) 1,301 10,930 7,711Preferred stock dividends(2,496) (2,450) (9,969) (4,713)Preferred stock accretion adjustments204 162 809 417FFO available to common shareholders and common unitholders(5,235) (987) 1,770 3,415Impairment of notes receivable5,261 — 5,261 —Acquisition costs269 1,115 1,101 2,029Capital related costs195 203 663 514Other non-recurring and non-cash expenses (1)117 158 294 664Share-based compensation135 872 870 1,454Straight-line rent(146) (163) (712) (386)Loan cost amortization578 662 3,087 2,126Accrued interest income774 (121) 415 (415)Above (below) market lease amortization5 (40) 453 29Recurring capital expenditures and tenant improvement reserves(245) (246) (941) (760)AFFO$1,708 $1,453 $12,261 $8,670Weighted Average Common Shares8,739,455 8,497,738 8,654,240 8,420,374Weighted Average Common Units639,555 743,274 702,168 689,162Total Common Shares and Units9,379,010 9,241,012 9,356,408 9,109,536FFO per Common Share and Common Units$(0.56) $(0.11) $0.19 $0.37AFFO per Common Share and Common Units$0.18 $0.16 $1.31 $0.95
(1) Other non-recurring expenses are detailed in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the period ended December 31, 2017.
Wheeler Real Estate Investment Trust, Inc. and SubsidiariesReconciliation of Property Net Operating Income(in thousands) Three Months EndedDecember 31, Years EndedDecember 31, 2017 2016 2017 2016Net Loss $(8,719) $(4,031) $(12,778) $(12,238)Adjustments:Net Income from Discontinued Operations — (20) (1,518) (824)Income tax expense (38) 107 137 107Interest expense 4,168 3,555 17,165 13,356Interest income (363) (391) (1,443) (692)Loss (gain) on disposal of properties — — (1,021) —Corporate general & administrative 2,509 3,633 7,364 9,924Provision for credit losses 2,378 229 2,821 425Impairment of notes receivable 5,261 — 5,261 —Depreciation and amortization 5,776 5,331 26,231 20,637Non-REIT management and leasing services (598) 215 927 1,567Development income (83) (75) (537) (244)Asset management and commission revenues (261) (362) (1,826) (1,819)Property Net Operating Income $10,030 $8,191 $40,783 $30,199Property revenues $13,952 $11,590 $56,172 $42,097Property expenses 3,922 3,399 15,389 11,898Property Net Operating Income $10,030 $8,191 $40,783 $30,199
Wheeler Real Estate Investment Trust, Inc. and SubsidiariesReconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization – EBITDA(in thousands)Three Months Ended December 31, Years EndedDecember 31,2017 2016 2017 2016Net Loss$(8,719) $(4,031) $(12,778) $(12,238)Add back:Depreciation and amortization (1)5,781 5,291 26,684 20,666Interest Expense (2)4,168 3,568 17,174 13,425Income taxes(38) 107 137 107EBITDA1,192 4,935 31,217 21,960Adjustments for items affecting comparability:Acquisition costs269 1,115 1,101 2,029Capital related costs195 203 663 514Other non-recurring expenses (3)117 158 294 664Impairment of notes receivable5,261 — 5,261 —Gain on disposal of properties— — (1,021) —Loss (gain) on disposal of properties-discontinued operations— 1 (1,502) (688)Adjusted EBITDA$7,034 $6,412 $36,013 $24,479
(1) Includes above (below) market lease amortization.(2) Includes loan cost amortization and amounts associated with assets held for sale.(3) Other non-recurring expenses are detailed in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the period ended December 31, 2017.
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Godrevy Island and lighthouse in St. Ives Bay. Andy Haslam for The New York Times
Virginia Woolf wasn’t always the radical we imagine today. Before the debates on truth and beauty with her circle of early 20th-century artists, intellectuals and writers known as the Bloomsbury Group; before the polemic feminist lectures at Cambridge; and before the ever-constant push to experiment with new forms of fiction, there was the impressionable young girl, born Adeline Virginia Stephen, who spent seaside summers in Cornwall, on England’s rugged southwestern tip.
Virginia Woolf, English novelist and critic.
On a gray morning last October, I found myself on the Great Western Railway, rolling along the same route that Woolf would have taken about a century before, the train hugging tight past a progression of wide swathes of golden sand and languidly sloping green cliffs, with the deep blue of St. Ives Bay and the Godrevy Lighthouse in the distance.
The rail line to the coastal town of St. Ives opened in 1877, causing a huge uptick in tourism there, and it is easy to understand how it would have lured well-to-do Britons like her family to this once hard-to-reach stretch of Cornwall, now a thriving arts haven with its own branch of the Tate museum.
St. Ives Harbor at dusk in Cornwall.
Long an admirer of this modernist literary pioneer, not only for how Woolf redefined the possibilities of the novel but, for the simple reason that no other writer has given me, sentence for sentence, such pleasure, I decided to go in search of Woolf in her early years. I headed to the vast coastal county that, by most accounts, had a profound effect on her future writing, making its way into the novels “Jacob’s Room” and “The Waves,” and forming the basis of one of her greatest works, “To the Lighthouse.”
Woolf’s summers in Cornwall were a reprieve from her upper-middle-class life in London, where, for most of the year, she spent her days in “the rich red gloom” of a tall London townhouse. A Victorian girl bound by Victorian-era trappings, she took informal school lessons in a dining room filled with carved oak and marble, ventured on monotonous twice-daily outings to nearby Kensington Park, and awaited a future of ballroom dances in satin dresses and pearls.
Her father, the renowned literary critic and historian, Sir Leslie Stephen, rented a house overlooking St. Ives Bay in Cornwall, which he described in an 1884 letter as “a pocket-paradise with a sheltered cove of sand in easy reach (for ‘Ginia even) just below.” That house, that bay, that lighthouse: all would be immortalized in her famous novel. While Woolf was always careful to abstract somewhat from her personal past, and set “To the Lighthouse” on the Scottish Isle of Skye, it’s steeped with almost direct imagery from her time in Cornwall.
In her childhood, Virginia Woolf spent a few months each year at Talland House on the outskirts of St. Ives.
From 1882, when she was only a few months old, to 1894, when she was 12, the year before her mother died, Woolf spent a few months each year in Talland House, situated on the outskirts of St. Ives, then a small fishing town on the Cornish coast.
It was the sheer physical freedom of Cornwall, compared to the constrictions of Woolf’s London life, suggest the scholars Marion Dell and Marion Whybrow in “Virginia Woolf & Vanessa Bell: Remembering St. Ives,” that helped her buck against the constructs of her day and conceive of independent achievement.
Woolf roamed free in the salty air of the sloping garden, with the expanse of the bay and its distant lighthouse before her. She swam and poked among rock pools down at the beach below, and hunted great-winged moths on rambling nighttime expeditions.
“In retrospect nothing that we had as children made as much difference, was quite so important to us, as our summer in Cornwall. The country was intensified, after the months in London,” and formed “the best beginning to life conceivable,” she wrote in 1940 at age 58, in her autobiographical essay, “A Sketch of the Past.”
Celebrating St. Ives’s outsized role in Woolf’s life, and a marker in its own right for how far the town has grown, is the recently refurbished and extended Tate St. Ives, one of only two branches of the art museum outside London, which runs “Virginia Woolf: An Exhibition Inspired by Her Writings” until April 29 in its sprawling new hall.
But while St. Ives has dramatically evolved from Woolf’s day, some parts of Cornwall, a sprawling county with a population of over half a million, seem frozen in time. Just down the coast, I found a rural, stark, ethereally beautiful landscape that remains today, despite the occasional car and hurtling tractor, close to how Woolf would have remembered it as a child.
St. Ives railway station.
Once a 10-hour trek from London, the train voyage to St. Ives today can be made in under six. Winding my way up from the town’s sole rail station, as Woolf and her family would have done — with cooks, servants and mounds of luggage — the mid-19th-century stone villa looms large, seemingly incongruous among the motley assortment of architecture that has sprung around it, like the glossy modern apartment complex, with glass balconies, next door.
“Her family would move their entire way of life, their whole household, for two or three months out of the year to this house with a magical garden in this very remote setting, and it would become a kind of Eden for her, the place she would idealize and always remember,” said Alexandra Harris, author of “Virginia Woolf” and a professorial fellow at the University of Birmingham in England.
“In ‘To the Lighthouse,’ Woolf, as a successful middle-aged writer, comes face to face with her mother in the garden which is very much the garden at Talland House,” Ms. Harris said. “The novel embodies the feeling of having left something unfinished through those childhood summers.”
“To the Lighthouse” encapsulates Woolf’s love and longing for her mother — as well as her conflicted view of her mother’s vision of Victorian womanhood. All those bottled-up feelings, seemingly suspended in time after the family gave up Talland House following Julia Stephen’s death, found their release in the novel.
Woolf herself wrote as much in “A Sketch of the Past:” “ … when it was written, I ceased to be obsessed by my mother. I no longer hear her voice; I do not see her.”
While Talland House was carved into five flats in the 1950s and isn’t open to the public, visitors can, from Talland Road above, catch a glimpse of the sloping garden, the house’s cream-colored facade and views across St. Ives Bay to the iconic Godrevy Lighthouse. Though for the best tableau, it’s best to mimic the writer and her three siblings on their first trip back to the house as adults.
“We passed through the gate, groped stealthily but with sure feet up the carriage drive, mounted the little flight of rough steps,” wrote Woolf in a 1905 diary entry, adding that they peered through a chink in the escallonia hedge and “hung there like ghosts.”
The original wooden gate no longer exists, though the “rough steps” and hedging, now about chest-height, are still there, beyond which is a full-on view of the house and its stately French windows and balconies. Visitors can also walk up the paved driveway, the former “carriage drive,” around the side of the garden, said Peter Eddy, the house’s longtime owner (with his brother, John Eddy), who met me there.
I found Mr. Eddy with a few of the house’s current residents, Woolf enthusiasts who are also deeply embedded in the town’s fabric (one is the chairman of the St. Ives Chamber of Trade and Commerce, another a volunteer at the St. Ives Archive). Ad hoc gatekeepers of the Talland House myth, they were poring over a map of the property from 1906 and historical photos, which showed a smaller and less imposing house. (Roof and side extensions were added later.)
I walked around, soaking up the spirit of the place.
The garden is more manicured now, lacking the bursts of color from fiery red-hot pokers, and various pockets of charm, which were given names like the “love corner,” “coffee garden” and “lookout place,” that had defined the original garden. Yet a few relics remain, including feathery spears of pampas grass near where Woolf would have played evening games of cricket, and mixed hedging around the garden’s bottom border that included Woolf’s beloved escallonia, “whose leaves, pressed, gave out a very sweet smell.”
Looking across St. Ives Bay from the garden, I recalled one of the best-known lines from “To the Lighthouse:” “For the great plateful of blue water was before her; the hoary Lighthouse, distant, austere, in the midst …”
Woolf fans have been concerned about the obstruction of this view ever since Cornwall Council granted planning permission in December 2015 for an apartment complex to be built below Talland House. But on my visit, it was not clear to me this would happen. I couldn’t find any signs of construction, and permission is set to expire if work doesn’t start by December 2018.
Just minutes’ walk away is Primrose Valley, an area once blanketed with apple orchards and a little dirt path that Woolf and her youthful siblings would have taken down to Porthminster Beach below. Now, sprawling houses with gray-shingled mansard roofs edge up to one another, with hedging and moss-covered stone lining a paved route. The beach, though, with its wide crescent of smooth, powdery sand and turquoise bay, still retains its essential, sweeping majesty.
Bars and shops in tourist-friendly St. Ives.
From the beach, it was a few blocks to the center of St. Ives. I walked past a girl with a butterfly net, and thought of Woolf, and got lost among the labyrinth of cobbled streets. But I couldn’t find much left of the “windy, noisy, fishy, vociferous, narrow-streeted town” as Woolf recalled it. Long gone are the wooden boats that would have been anchored near the shore, awaiting the pilchards — small, sardine-like fish that would come into the bay by the millions. All that has largely been scrubbed clean, replaced with a more tourist-friendly image: St. Ives, the arts haven by the sea.
Woolf was witness to the beginning of this change. In “To the Lighthouse,” she noted that the artists had already started to come to the fictional fishing town inspired by St. Ives, perhaps a reference to the American painter Whistler, who stayed in St. Ives in 1883 and 1884. In the early- to mid-20th century, a new wave of artists made their way there, most notably Barbara Hepworth, Ben Nicholson and Naum Gabo, whose abstract sculptures and paintings were inspired by the area’s landscape.
Galleries in St. Ives. Andy Haslam for The New York Times
For the first time, these modernist works have a permanent dedicated space in the Tate St. Ives, which has a vast new extension dug into a hillside off Porthmeor Beach, a favored spot with surfers that doubled the museum’s gallery area in October.
While traces of Woolf’s work were noticeably absent at the museum in autumn, “Virginia Woolf: An Exhibition Inspired by Her Writings,” showcases the works of more than 80 artists, including her sister, the painter and Bloomsbury Group member Vanessa Bell, who have either been directly influenced by Woolf or explore recurring themes important to Woolf, such as feminist perspectives on domesticity.
The Badger Inn which was formerly the Lelant Hotel.
Bell, one of Woolf’s greatest confidantes, received a rather alarming letter, written on Christmas Day, 1909. “I went for a walk in Regents Park yesterday morning, and it suddenly struck me how absurd it was to stay in London, with Cornwall going on all the time,” Woolf wrote. Woolf impulsively purchased a train ticket and arrived at the Lelant station, near St. Ives, at 10:30 p.m., without “spectacles, cheque book, looking glass, or coat.” Pacing that same platform recently, I was struck by how Woolf might have chosen her lodging: The Lelant Hotel, now The Badger Inn, was the closest accommodation, looming large up a short, steep walk to the top of Station Hill.
There, I met Paul O’Brien, the pub’s historian, who has put together snippets of Woolf’s letters about Lelant, a village of 1,056 residents, in a frame that hangs on a wall near the bar. It was a Tuesday afternoon, and convivial locals were drinking pints of St. Austell’s Tribute, a popular regional ale, their dogs underfoot.
From The Badger Inn, it’s about seven miles to Godrevy, a beach and headland that is now part of the National Trust. There, sunlight streamed down through the clouds and seemed to reflect the golden sands, lighting up the whole place in the area’s infamously soft glow. I walked past wild flowing grasses before reaching the closest point on shore to Godrevy Island and its lighthouse. And then the literary landmark stood before me: stark, solid, sacrosanct.
Woolf’s next trip to Cornwall was more scripted. Back in London and nearing, at age 28, the end of her first novel, “The Voyage Out,” Woolf spiraled into a mental breakdown so severe it landed her in Burley Park, a home for mentally ill women outside the city. (While Hermione Lee, arguably the foremost Woolf expert, called her “a sane woman who had an illness” in her biography “Virginia Woolf,” she also associated Woolf’s symptoms with what would now be recognized as manic-depressive illness or bipolar disorder.)
Zennor village in Cornwall.
Part of her recuperation that summer was a walking tour around Zennor, the name of both a tiny village and parish (population 207), just southwest of St. Ives, with a nurse, Jean Thomas.
Tramping through a light mist, I found my way to the handsome stone farmhouse where Woolf and Ms. Thomas stayed, now the private residence of Lee and William Berryman, whose family has lived and worked on the surrounding farmland for more than 400 years. Inside their cozy sitting room, Ms. Berryman and I pored over small sepia-colored photographs, some nearly a century old, of former lodgers. (My heart leapt when I found one of two women sharing a motorcycle and sidecar, though, while possessing the same independent spirit, it ended up not being Woolf and her nurse.)
Then we ventured outside, touring two nearby structures that have been turned into holiday accommodations, called Porthmeor Cottages. Chickens pecked outside a coop, and in the distance, cattle grazed open pastureland that seemed to drop off into the sea below.
Three years later, in 1913, a similar pattern of illness emerged. Woolf sank into periods of severe depression, and was again admitted to Burley Park. In September, Woolf attempted suicide. After a period of rest, she slowly improved, and with her husband in 1914, headed again to Cornwall.
They spent a portion of their stay at Carbis Bay, a seaside resort village about a mile and a half up the coast from St. Ives, that is today dotted with tanned surfers in wet suits on the beach and, looming above, whitewashed, glass-fronted villas.
The Carbis Bay Hotel & Estate, where the Woolfs stayed, has its own beach that was awarded Blue Flag eco-certification, as well as a spa. Its palm-tree-fringed views of the sweeping turquoise bay could have been from anywhere, more Caribbean than Woolf’s Cornwall. Except there, in the distance, was the Godrevy Lighthouse, and in a hallway off a glass conservatory hangs a photo of the couple from around that time, with Woolf’s guest signature in purple, below.
During the 1920s and 1930s, a creatively fruitful time for Woolf, when she worked on the three novels most closely associated with Cornwall, the couple mainly stayed in the parish of Zennor whenever they visited the area.
As I made my way around its medieval farming tracts, sweeping moors and winding coastal paths, I understood why. It was an antidote not just to the frenzy of London, but also to the rapid growth of St. Ives and Carbis Bay.
Off the main road and onto a dirt track sits the tiny hamlet of Poniou, which then, as now, consists of only three cottages beside three granite footbridges. I met Sue Allen, a longtime resident, who told me the Woolfs had stayed next door in 1921, with their bedroom facing the sea.
View from Gurnard’s Head towards Zennor.
Woolf marveled at seeing Gurnard’s Head, a glorious headland named for the local fish, from that bedroom window.
Then as now, it remains the most distinctive landmark in the area. But it is still, as Woolf described it, “so lonely,” reachable either along a winding “rabbit path round the cliff,” or by following a faintly visible path through fields dotted with grazing cattle and rudimentary stone steps. Taking in the faintly sweet smell of cow dung and the roar of the waters crashing against the rocks below, I didn’t pass a single soul on two trips in October.
About three miles away is the private residence Eagle’s Nest, distinct and visible from the main road. The Woolfs stayed there with friends on several memorable visits, including on Christmas Day, 1926, which Woolf spent revising drafts of “To the Lighthouse.” She despaired that “All my facts about Lighthouses are wrong,” in a letter to an assistant at the publishing house, Hogarth Press, which she and her husband set up and ran.
Picturesque St. Ives is known for its art scene.
The couple stayed there again in May 1936, Woolf’s last trip, at age 54, to Cornwall, an attempt to keep yet another breakdown at bay. They wandered round St. Ives and crept into the garden of Talland House, and in the dusk, her husband wrote, “Virginia peered through the ground-floor windows to see the ghosts of her childhood.”
I peered through those same windows, and I imagined the writer trying to recapture a vanished past when life had felt so new, seeing only inescapable childhood ghosts basking in summer days of exquisite happiness.
WASHINGTON (AFNS) — Senior leader officials recognized two Air Force members at the 32nd Black Engineer of the Year Science, Technology, Engineering and Mathematics, Global Competitiveness Conference, Feb. 9, 2018, in Washington, D.C., for exceptional achievements in STEM career fields.
Timothy K. Bridges, Headquarters Air Force assistant deputy chief of staff for logistics, engineering and force protection at the Pentagon in Arlington, Virgina, received the Black Engineer of the Year Career Achievement in Government Award. Maj. Brendan O’Neal, 14th Air Force analysis and assessment branch chief, at Vandenberg Air Force Base, California, was presented the Black Engineer of the Year Award. (more…)
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