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Property | Location | Number of Tenants (1) | Total Leasable Square Feet | Percentage Leased (1) | Percentage Occupied | Total SF Occupied | Annualized Base Rent (in 000's) (2) | Annualized Base Rent per Occupied Sq. Foot | ||||||||||||||||||||||||
Alex City Marketplace | Alexander City, AL | 19 | 151,843 | 100.0 | % | 100.0 | % | 151,843 | $ | 1,201 | $ | 7.91 | ||||||||||||||||||||
Amscot Building | Tampa, FL | 1 | 2,500 | 100.0 | % | 100.0 | % | 2,500 | 83 | 33.00 | ||||||||||||||||||||||
Beaver Ruin Village | Lilburn, GA | 30 | 74,038 | 96.8 | % | 96.8 | % | 71,648 | 1,250 | 17.44 | ||||||||||||||||||||||
Beaver Ruin Village II | Lilburn, GA | 4 | 34,925 | 100.0 | % | 100.0 | % | 34,925 | 460 | 13.16 | ||||||||||||||||||||||
Brook Run Shopping Center | Richmond, VA | 19 | 147,738 | 87.8 | % | 48.2 | % | 71,237 | 877 | 12.32 | ||||||||||||||||||||||
Brook Run Properties (3) | Richmond, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
Bryan Station | Lexington, KY | 10 | 54,277 | 100.0 | % | 100.0 | % | 54,277 | 597 | 11.00 | ||||||||||||||||||||||
Butler Square | Mauldin, SC | 16 | 82,400 | 98.2 | % | 98.2 | % | 80,950 | 855 | 10.57 | ||||||||||||||||||||||
Cardinal Plaza | Henderson, NC | 9 | 50,000 | 100.0 | % | 100.0 | % | 50,000 | 502 | 10.03 | ||||||||||||||||||||||
Chesapeake Square | Onley, VA | 14 | 108,982 | 99.1 | % | 99.1 | % | 108,016 | 823 | 7.62 | ||||||||||||||||||||||
Clover Plaza | Clover, SC | 10 | 45,575 | 100.0 | % | 100.0 | % | 45,575 | 378 | 8.30 | ||||||||||||||||||||||
Courtland Commons (3) | Courtland, VA | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
Conyers Crossing | Conyers, GA | 14 | 170,475 | 100.0 | % | 100.0 | % | 170,475 | 940 | 5.51 | ||||||||||||||||||||||
Crockett Square | Morristown, TN | 4 | 107,122 | 100.0 | % | 100.0 | % | 107,122 | 970 | 9.06 | ||||||||||||||||||||||
Cypress Shopping Center | Boiling Springs, SC | 17 | 80,435 | 41.2 | % | 41.2 | % | 33,175 | 452 | 13.62 | ||||||||||||||||||||||
Darien Shopping Center | Darien, GA | 1 | 26,001 | 100.0 | % | 100.0 | % | 26,001 | 140 | 5.38 | ||||||||||||||||||||||
Devine Street | Columbia, SC | 1 | 38,464 | 89.1 | % | 89.1 | % | 34,264 | 180 | 5.25 | ||||||||||||||||||||||
Edenton Commons (3) | Edenton, NC | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
Folly Road | Charleston, SC | 5 | 47,794 | 100.0 | % | 100.0 | % | 47,794 | 731 | 15.30 | ||||||||||||||||||||||
Forrest Gallery | Tullahoma, TN | 27 | 214,451 | 91.1 | % | 80.8 | % | 173,289 | 1,285 | 7.42 | ||||||||||||||||||||||
Fort Howard Shopping Center | Rincon, GA | 19 | 113,652 | 95.1 | % | 95.1 | % | 108,120 | 1,046 | 9.68 | ||||||||||||||||||||||
Freeway Junction | Stockbridge, GA | 17 | 156,834 | 97.1 | % | 97.1 | % | 152,249 | 1,304 | 8.56 | ||||||||||||||||||||||
Franklin Village | Kittanning, PA | 25 | 151,821 | 100.0 | % | 98.7 | % | 149,821 | 1,274 | 8.50 | ||||||||||||||||||||||
Franklinton Square | Franklinton, NC | 15 | 65,366 | 100.0 | % | 100.0 | % | 65,366 | 591 | 9.05 | ||||||||||||||||||||||
Georgetown | Georgetown, SC | 2 | 29,572 | 100.0 | % | 100.0 | % | 29,572 | 267 | 9.04 | ||||||||||||||||||||||
Grove Park Shopping Center | Orangeburg, SC | 15 | 93,265 | 100.0 | % | 100.0 | % | 93,265 | 745 | 7.99 | ||||||||||||||||||||||
Harbor Point (3) | Grove, OK | — | — | — | % | — | % | — | — | — | ||||||||||||||||||||||
Harrodsburg Marketplace | Harrodsburg, KY | 8 | 60,048 | 91.0 | % | 91.0 | % | 54,648 | 451 | 8.25 | ||||||||||||||||||||||
JANAF (4) | Norfolk, VA | 118 | 798,086 | 95.3 | % | 93.1 | % | 743,314 | 8,715 | 11.73 | ||||||||||||||||||||||
Laburnum Square | Richmond, VA | 19 | 109,405 | 95.3 | % | 95.3 | % | 104,305 | 950 | 9.11 | ||||||||||||||||||||||
Ladson Crossing | Ladson, SC | 16 | 52,607 | 100.0 | % | 100.0 | % | 52,607 | 535 | 10.17 | ||||||||||||||||||||||
LaGrange Marketplace | LaGrange, GA | 13 | 76,594 | 96.9 | % | 96.9 | % | 74,194 | 433 | 5.84 | ||||||||||||||||||||||
Lake Greenwood Crossing | Greenwood, SC | 8 | 43,618 | 100.0 | % | 100.0 | % | 43,618 | 362 | 8.30 | ||||||||||||||||||||||
Lake Murray | Lexington, SC | 5 | 39,218 | 100.0 | % | 100.0 | % | 39,218 | 255 | 6.50 | ||||||||||||||||||||||
Litchfield Market Village | Pawleys Island, SC | 21 | 86,740 | 90.8 | % | 90.8 | % | 78,797 | 960 | 12.19 | ||||||||||||||||||||||
Lumber River Village | Lumberton, NC | 11 | 66,781 | 98.2 | % | 98.2 | % | 65,581 | 452 | 6.89 | ||||||||||||||||||||||
Moncks Corner | Moncks Corner, SC | 1 | 26,800 | 100.0 | % | 100.0 | % | 26,800 | 323 | 12.07 | ||||||||||||||||||||||
Nashville Commons | Nashville, NC | 11 | 56,100 | 92.0 | % | 92.0 | % | 51,600 | 584 | 11.32 | ||||||||||||||||||||||
New Market Crossing | Mt. Airy, NC | 11 | 117,076 | 90.3 | % | 90.3 | % | 105,738 | 951 | 8.99 | ||||||||||||||||||||||
Parkway Plaza | Brunswick, GA | 4 | 52,365 | 81.7 | % | 81.7 | % | 42,785 | 353 | 8.25 |
Property | Location | Number of Tenants (1) | Total Leasable Square Feet | Percentage Leased (1) | Percentage Occupied | Total SF Occupied | Annualized Base Rent (in 000's) (2) | Annualized Base Rent per Occupied Sq. Foot | ||||||||||||||||||||||||
Pierpont Centre | Morgantown, WV | 17 | 111,162 | 97.2 | % | 97.2 | % | 108,001 | $ | 996 | $ | 9.22 | ||||||||||||||||||||
Port Crossing | Harrisonburg, VA | 7 | 65,365 | 100.0 | % | 100.0 | % | 65,365 | 847 | 12.96 | ||||||||||||||||||||||
Ridgeland | Ridgeland, SC | 1 | 20,029 | 100.0 | % | 100.0 | % | 20,029 | 140 | 7.00 | ||||||||||||||||||||||
Riverbridge Shopping Center | Carrollton, GA | 10 | 91,188 | 94.7 | % | 94.7 | % | 86,388 | 692 | 8.01 | ||||||||||||||||||||||
Rivergate Shopping Center | Macon, GA | 24 | 193,960 | 87.0 | % | 87.0 | % | 168,816 | 2,450 | 14.51 | ||||||||||||||||||||||
Sangaree Plaza | Summerville, SC | 10 | 66,948 | 100.0 | % | 100.0 | % | 66,948 | 707 | 10.56 | ||||||||||||||||||||||
Shoppes at Myrtle Park | Bluffton, SC | 13 | 56,601 | 97.3 | % | 97.3 | % | 55,084 | 653 | 11.86 | ||||||||||||||||||||||
South Lake | Lexington, SC | 10 | 44,318 | 97.3 | % | 97.3 | % | 43,118 | 239 | 5.54 | ||||||||||||||||||||||
South Park | Mullins, SC | 4 | 60,734 | 96.9 | % | 96.9 | % | 58,834 | 381 | 6.48 | ||||||||||||||||||||||
South Square | Lancaster, SC | 6 | 44,350 | 81.0 | % | 81.0 | % | 35,900 | 302 | 8.40 | ||||||||||||||||||||||
St. George Plaza | St. George, SC | 7 | 59,174 | 96.3 | % | 96.3 | % | 56,999 | 396 | 6.95 | ||||||||||||||||||||||
Sunshine Plaza | Lehigh Acres, FL | 23 | 111,189 | 100.0 | % | 100.0 | % | 111,189 | 1,089 | 9.80 | ||||||||||||||||||||||
Surrey Plaza | Hawkinsville, GA | 3 | 42,680 | 96.5 | % | 96.5 | % | 41,180 | 247 | 6.00 | ||||||||||||||||||||||
Tampa Festival | Tampa, FL | 19 | 137,987 | 97.7 | % | 64.6 | % | 89,166 | 910 | 10.21 | ||||||||||||||||||||||
Tri-County Plaza | Royston, GA | 6 | 67,577 | 88.8 | % | 88.8 | % | 59,977 | 420 | 7.00 | ||||||||||||||||||||||
Tuckernuck | Richmond, VA | 16 | 93,624 | 98.0 | % | 98.0 | % | 91,745 | 971 | 10.58 | ||||||||||||||||||||||
Twin City Commons | Batesburg-Leesville, SC | 5 | 47,680 | 100.0 | % | 100.0 | % | 47,680 | 478 | 10.03 | ||||||||||||||||||||||
Village of Martinsville | Martinsville, VA | 20 | 290,902 | 96.6 | % | 96.6 | % | 280,946 | 2,177 | 7.74 | ||||||||||||||||||||||
Walnut Hill Plaza | Petersburg, VA | 6 | 87,239 | 38.1 | % | 38.1 | % | 33,225 | 279 | 8.41 | ||||||||||||||||||||||
Waterway Plaza | Little River, SC | 10 | 49,750 | 100.0 | % | 100.0 | % | 49,750 | 499 | 10.02 | ||||||||||||||||||||||
Westland Square | West Columbia, SC | 10 | 62,735 | 95.7 | % | 95.7 | % | 60,065 | 443 | 7.38 | ||||||||||||||||||||||
Winslow Plaza | Sicklerville, NJ | 18 | 40,695 | 100.0 | % | 100.0 | % | 40,695 | 641 | 15.75 | ||||||||||||||||||||||
Total Portfolio | 785 | 5,478,855 | 94.2 | % | 91.6 | % | 5,015,789 | $ | 48,232 | $ | 9.62 | |||||||||||||||||||||
Tenants | Annualized Base Rent ($ in 000s) | % of Total Annualized Base Rent | Total Occupied Square Feet | Percent Total Leasable Square Foot | Base Rent Per Occupied Square Foot | ||||||||||||||||||||||||||||||
Food Lion | $ | 4,428 | 9.18 | % | 551,469 | 10.07 | % | $ | 8.03 | ||||||||||||||||||||||||||
Kroger Co. (1) | 1,948 | 4.04 | % | 226,010 | 4.13 | % | 8.62 | ||||||||||||||||||||||||||||
Piggly Wiggly | 1,488 | 3.09 | % | 202,968 | 3.70 | % | 7.33 | ||||||||||||||||||||||||||||
Dollar Tree (2) | 1,192 | 2.47 | % | 148,605 | 2.71 | % | 8.02 | ||||||||||||||||||||||||||||
Lowes Foods (3) | 1,181 | 2.45 | % | 130,036 | 2.37 | % | 9.08 | ||||||||||||||||||||||||||||
Winn Dixie | 887 | 1.84 | % | 133,575 | 2.44 | % | 6.64 | ||||||||||||||||||||||||||||
Planet Fitness | 837 | 1.74 | % | 100,427 | 1.83 | % | 8.33 | ||||||||||||||||||||||||||||
Hobby Lobby | 717 | 1.49 | % | 114,298 | 2.09 | % | 6.27 | ||||||||||||||||||||||||||||
Big Lots | 679 | 1.41 | % | 105,674 | 1.93 | % | 6.43 | ||||||||||||||||||||||||||||
BJ'S Wholesale Club | 651 | 1.35 | % | 147,400 | 2.69 | % | 4.42 | ||||||||||||||||||||||||||||
$ | 14,008 | 29.06 | % | 1,860,462 | 33.96 | % | $ | 7.53 |
Lease Expiration Period | Number of Expiring Leases | Total Expiring Square Footage | % of Total Expiring Square Footage | % of Total Occupied Square Footage Expiring | Expiring Annualized Base Rent (in 000s) | % of Total Annualized Base Rent | Expiring Base Rent Per Occupied Square Foot | |||||||||||||||||||||||||||||||||||||
Available | — | 463,066 | 8.45 | % | — | % | $ | — | — | % | $ | — | ||||||||||||||||||||||||||||||||
Month-to-Month | 7 | 13,489 | 0.25 | % | 0.27 | % | 211 | 0.44 | % | 15.64 | ||||||||||||||||||||||||||||||||||
2022 | 105 | 323,894 | 5.91 | % | 6.46 | % | 3,439 | 7.13 | % | 10.62 | ||||||||||||||||||||||||||||||||||
2023 | 131 | 817,131 | 14.91 | % | 16.29 | % | 7,107 | 14.74 | % | 8.70 | ||||||||||||||||||||||||||||||||||
2024 | 141 | 749,944 | 13.69 | % | 14.95 | % | 7,358 | 15.26 | % | 9.81 | ||||||||||||||||||||||||||||||||||
2025 | 120 | 867,537 | 15.83 | % | 17.30 | % | 8,517 | 17.66 | % | 9.82 | ||||||||||||||||||||||||||||||||||
2026 | 121 | 830,542 | 15.16 | % | 16.56 | % | 8,207 | 17.02 | % | 9.88 | ||||||||||||||||||||||||||||||||||
2027 | 59 | 325,704 | 5.94 | % | 6.49 | % | 3,639 | 7.54 | % | 11.17 | ||||||||||||||||||||||||||||||||||
2028 | 22 | 335,606 | 6.13 | % | 6.69 | % | 2,376 | 4.93 | % | 7.08 | ||||||||||||||||||||||||||||||||||
2029 | 20 | 150,962 | 2.76 | % | 3.01 | % | 1,479 | 3.07 | % | 9.80 | ||||||||||||||||||||||||||||||||||
2030 | 15 | 249,357 | 4.55 | % | 4.97 | % | 1,997 | 4.14 | % | 8.01 | ||||||||||||||||||||||||||||||||||
2031 and thereafter | 44 | 351,623 | 6.42 | % | 7.01 | % | 3,902 | 8.07 | % | 11.10 | ||||||||||||||||||||||||||||||||||
Total | 785 | 5,478,855 | 100.00 | % | 100.00 | % | $ | 48,232 | 100.00 | % | $ | 9.62 |
Disposal Date | Property | Contract Price | Gain (loss) | Net Proceeds | ||||||||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||||||||||||
November 17, 2021 | Columbia Fire Station - Columbia, SC | $ | 4,250 | $ | (88) | $ | 3,903 | |||||||||||||||||||
August 31, 2021 | Rivergate Shopping Center Out Parcel - Macon, GA | 3,700 | 1,915 | 3,451 | ||||||||||||||||||||||
July 9, 2021 | Tulls Creek Land Parcel (1.28 acres) - Moyock, NC | 250 | 52 | 222 | ||||||||||||||||||||||
March 25, 2021 | Berkley Shopping Center and Berkley Land Parcel (0.75 acres) - Norfolk, VA | 4,150 | 176 | 3,937 |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Renewals(1): | |||||||||||
Leases renewed with rate increase (sq feet) | 402,875 | 616,548 | |||||||||
Leases renewed with rate decrease (sq feet) | 67,743 | 123,935 | |||||||||
Leases renewed with no rate change (sq feet) | 148,542 | 404,428 | |||||||||
Total leases renewed (sq feet) | 619,160 | 1,144,911 | |||||||||
Leases renewed with rate increase (count) | 104 | 127 | |||||||||
Leases renewed with rate decrease (count) | 11 | 24 | |||||||||
Leases renewed with no rate change (count) | 23 | 53 | |||||||||
Total leases renewed (count) | 138 | 204 | |||||||||
Option exercised (count) | 22 | 22 | |||||||||
Weighted average on rate increases (per sq foot) | $ | 0.85 | $ | 1.12 | |||||||
Weighted average on rate decreases (per sq foot) | $ | (2.18) | $ | (1.43) | |||||||
Weighted average rate (per sq foot) | $ | 0.32 | $ | 0.45 | |||||||
Weighted average change over prior rates | 3.05 | % | 4.63 | % | |||||||
New Leases(1) (2): | |||||||||||
New leases (sq feet) | 436,170 | 333,279 | |||||||||
New leases (count) | 76 | 72 | |||||||||
Weighted average rate (per sq foot) | $ | 8.30 | $ | 9.03 | |||||||
Gross Leasable Area ("GLA") expiring during the next 12 months, including month-to-month leases | 6.16 | % | 6.97 | % |
Years Ended December 31, | Year Over Year Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Operating activities | $ | 17,041 | $ | 15,780 | $ | 1,261 | 7.99 | % | |||||||||||||||
Investing activities | $ | 5,101 | $ | 2,237 | $ | 2,864 | 128.03 | % | |||||||||||||||
Financing activities | $ | (24,491) | $ | 3,160 | $ | (27,651) | (875.03) | % |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Fixed-rate notes (1) | $ | 344,177 | $ | 330,340 | |||||||
Adjustable-rate mortgages (1) | 2,085 | 23,576 | |||||||||
Total debt | $ | 346,262 | $ | 353,916 |
For the Years Ended December 31, | Year over Year Changes | ||||||||||||||||||||||
2021 | 2020 | $/# | % | ||||||||||||||||||||
PROPERTY DATA: | |||||||||||||||||||||||
Number of properties owned and leased at period end (1) | 58 | 60 | (2) | (3.33) | % | ||||||||||||||||||
Aggregate gross leasable area at period end(1) | 5,478,855 | 5,561,766 | (82,911) | (1.49) | % | ||||||||||||||||||
Ending leased rate at period end (1) | 94.2 | % | 88.9 | % | 5.3 | % | 5.96 | % | |||||||||||||||
FINANCIAL DATA: | |||||||||||||||||||||||
Rental revenues | $ | 60,368 | $ | 60,039 | $ | 329 | 0.55 | % | |||||||||||||||
Other revenues | 942 | 964 | (22) | (2.28) | % | ||||||||||||||||||
Total Revenue | 61,310 | 61,003 | 307 | 0.50 | % | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Property operations | 19,618 | 18,886 | 732 | 3.88 | % | ||||||||||||||||||
Depreciation and amortization | 14,797 | 17,291 | (2,494) | (14.42) | % | ||||||||||||||||||
Impairment of assets held for sale | 2,300 | 600 | 1,700 | 283.33 | % | ||||||||||||||||||
Corporate general & administrative | 7,140 | 5,831 | 1,309 | 22.45 | % | ||||||||||||||||||
Total Operating Expenses | 43,855 | 42,608 | 1,247 | 2.93 | % | ||||||||||||||||||
Gain on disposal of properties | 2,055 | 23 | 2,032 | 8,834.78 | % | ||||||||||||||||||
Operating Income | 19,510 | 18,418 | 1,092 | 5.93 | % | ||||||||||||||||||
Interest income | 34 | 1 | 33 | 3,300.00 | % | ||||||||||||||||||
Interest expense | (33,028) | (17,093) | (15,935) | (93.23) | % | ||||||||||||||||||
Net changes in fair value of derivative liabilities | 3,768 | — | 3,768 | 100.00 | % | ||||||||||||||||||
Other income | 552 | — | 552 | 100.00 | % | ||||||||||||||||||
Other expense | (185) | (1,039) | 854 | 82.19 | % | ||||||||||||||||||
Net Income (Loss) Before Income Taxes | (9,349) | 287 | (9,636) | (3,357.49) | % | ||||||||||||||||||
Income tax expense | (2) | — | (2) | (100.00) | % | ||||||||||||||||||
Net Income (Loss) | (9,351) | 287 | (9,638) | (3,358.19) | % | ||||||||||||||||||
Less: Net loss attributable to noncontrolling interests | 92 | 42 | 50 | 119.05 | % | ||||||||||||||||||
Net Income (Loss) Attributable to Wheeler REIT | $ | (9,443) | $ | 245 | $ | (9,688) | (3,954.29) | % |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
Same Store | Non-same Store | Total | |||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Net (Loss) Income | $ | (8,201) | $ | 1,280 | $ | (1,150) | $ | (993) | $ | (9,351) | $ | 287 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
Income tax expense | 2 | — | — | — | 2 | — | |||||||||||||||||||||||||||||
Other expense | 185 | 1,039 | — | — | 185 | 1,039 | |||||||||||||||||||||||||||||
Other income | (552) | — | — | — | (552) | — | |||||||||||||||||||||||||||||
Net changes in fair value of derivative liabilities | (3,768) | — | — | — | (3,768) | — | |||||||||||||||||||||||||||||
Interest expense | 31,978 | 16,607 | 1,050 | 486 | 33,028 | 17,093 | |||||||||||||||||||||||||||||
Interest Income | (34) | (1) | — | — | (34) | (1) | |||||||||||||||||||||||||||||
Gain on disposal of properties | — | — | (2,055) | (23) | (2,055) | (23) | |||||||||||||||||||||||||||||
Corporate general & administrative | 7,079 | 5,762 | 61 | 69 | 7,140 | 5,831 | |||||||||||||||||||||||||||||
Impairment of assets held for sale | 100 | — | 2,200 | 600 | 2,300 | 600 | |||||||||||||||||||||||||||||
Depreciation and amortization | 14,797 | 17,141 | — | 150 | 14,797 | 17,291 | |||||||||||||||||||||||||||||
Other non-property revenue | (36) | (272) | — | — | (36) | (272) | |||||||||||||||||||||||||||||
Property Net Operating Income | $ | 41,550 | $ | 41,556 | $ | 106 | $ | 289 | $ | 41,656 | $ | 41,845 | |||||||||||||||||||||||
Property revenues | $ | 60,948 | $ | 59,999 | $ | 326 | $ | 732 | $ | 61,274 | $ | 60,731 | |||||||||||||||||||||||
Property expenses | 19,398 | 18,443 | 220 | 443 | 19,618 | 18,886 | |||||||||||||||||||||||||||||
Property Net Operating Income | $ | 41,550 | $ | 41,556 | $ | 106 | $ | 289 | $ | 41,656 | $ | 41,845 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Same Store | Non-same Store | Total | Year Over Year Changes | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Net (Loss) income | $ | (8,201) | $ | 1,280 | $ | (1,150) | $ | (993) | $ | (9,351) | $ | 287 | $ | (9,638) | (3,358.19) | % | |||||||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 14,797 | 17,141 | — | 150 | 14,797 | 17,291 | (2,494) | (14.42) | % | ||||||||||||||||||||||||||||||||||||||
Impairment of assets held for sale | 100 | — | 2,200 | 600 | 2,300 | 600 | 1,700 | 283.33 | % | ||||||||||||||||||||||||||||||||||||||
Gain on disposal of properties | — | — | (2,055) | (23) | (2,055) | (23) | (2,032) | (8,834.78) | % | ||||||||||||||||||||||||||||||||||||||
FFO | $ | 6,696 | $ | 18,421 | $ | (1,005) | $ | (266) | $ | 5,691 | $ | 18,155 | $ | (12,464) | (68.65) | % |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
FFO | $ | 5,691 | $ | 18,155 | |||||||
Preferred stock dividends - undeclared | (8,837) | (10,258) | |||||||||
Preferred stock redemption | 70 | 96 | |||||||||
Preferred stock accretion adjustments | 600 | 677 | |||||||||
FFO available to common stockholders and common unitholders | (2,476) | 8,670 | |||||||||
Capital related costs | 438 | 291 | |||||||||
Other non-recurring and non-cash expenses | 352 | 1,085 | |||||||||
Net changes in fair value of derivative liabilities | (3,768) | — | |||||||||
Share-based compensation | 14 | — | |||||||||
Straight-line rental revenue, net straight-line expense | (1,026) | (971) | |||||||||
Loan cost amortization | 12,710 | 1,097 | |||||||||
Paid-in-kind interest | 1,610 | — | |||||||||
Above (below) market lease amortization | 13 | (461) | |||||||||
Recurring capital expenditures and tenant improvement reserves | (1,096) | (1,112) | |||||||||
AFFO | $ | 6,771 | $ | 8,599 |
Equity Compensation Plan Information Table | |||||||||||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | ||||||||||||||
Equity compensation plans approved by stockholders (1) | 15,000 | (2) | — | 153,811 | |||||||||||||
Equity compensation plans not approved by stockholders | — | — | — | ||||||||||||||
Total | 15,000 | — | 153,811 |
Page | ||||||||||||||
(PCAOB ID: | ||||||||||||||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
ASSETS: | |||||||||||
Investment properties, net | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Rents and other tenant receivables, net | |||||||||||
Assets held for sale | |||||||||||
Above market lease intangibles, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred costs and other assets, net | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES: | |||||||||||
Loans payable, net | $ | $ | |||||||||
Liabilities associated with assets held for sale | |||||||||||
Below market lease intangibles, net | |||||||||||
Derivative liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Total Liabilities | |||||||||||
Series D Cumulative Convertible Preferred Stock ( | |||||||||||
EQUITY: | |||||||||||
Series A Preferred Stock ( | |||||||||||
Series B Convertible Preferred Stock and million aggregate liquidation preference, respectively) | |||||||||||
Common Stock ($ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total Stockholders’ Equity | |||||||||||
Noncontrolling interests | |||||||||||
Total Equity | |||||||||||
Total Liabilities and Equity | $ | $ |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
REVENUE: | |||||||||||
Rental revenues | $ | $ | |||||||||
Other revenues | |||||||||||
Total Revenue | |||||||||||
OPERATING EXPENSES: | |||||||||||
Property operations | |||||||||||
Depreciation and amortization | |||||||||||
Impairment of assets held for sale | |||||||||||
Corporate general & administrative | |||||||||||
Total Operating Expenses | |||||||||||
Gain on disposal of properties | |||||||||||
Operating Income | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Net changes in fair value of derivative liabilities | |||||||||||
Other income | |||||||||||
Other expense | ( | ( | |||||||||
Net (Loss) Income Before Income Taxes | ( | ||||||||||
Income tax expense | ( | ||||||||||
Net (Loss) Income | ( | ||||||||||
Less: Net income attributable to noncontrolling interests | |||||||||||
Net (Loss) Income Attributable to Wheeler REIT | ( | ||||||||||
Preferred Stock dividends - undeclared | ( | ( | |||||||||
Deemed contribution related to preferred stock redemption | |||||||||||
Net Loss Attributable to Wheeler REIT Common Stockholders | $ | ( | $ | ( | |||||||
Loss per share: | |||||||||||
Basic and Diluted | $ | ( | $ | ( | |||||||
Weighted-average number of shares: | |||||||||||
Basic and Diluted | |||||||||||
Series A | Series B | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Units | Value | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of operating partnership units to Common Stock | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest in operating partnership | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deemed contribution related to preferred stock redemption | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of operating partnership units to Common Stock | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock under Share Incentive Plan | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest in operating partnership | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series B Preferred Stock to Common Stock | — | — | ( | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deemed contribution related to preferred stock redemption | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | — | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net (Loss) Income | $ | ( | $ | ||||||||
Adjustments to reconcile consolidated net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Loan cost amortization | |||||||||||
Changes in fair value of derivative liabilities | ( | ||||||||||
Above (below) market lease amortization, net | ( | ||||||||||
Paid-in-kind interest | |||||||||||
Straight-line expense | |||||||||||
Share-based compensation | |||||||||||
Gain on disposal of properties | ( | ( | |||||||||
Credit losses on operating lease receivables | |||||||||||
Impairment of assets held for sale | |||||||||||
Net changes in assets and liabilities: | |||||||||||
Rent and other tenant receivables, net | ( | ||||||||||
Unbilled rent | ( | ( | |||||||||
Deferred costs and other assets, net | ( | ( | |||||||||
Accounts payable, accrued expenses and other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Cash received from disposal of properties | |||||||||||
Net cash provided by investing activities | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Payments for deferred financing costs | ( | ( | |||||||||
Loan proceeds | |||||||||||
Loan principal payments | ( | ( | |||||||||
Paycheck Protection Program proceeds | |||||||||||
Preferred stock redemption | ( | ( | |||||||||
Loan prepayment penalty | ( | ||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH , beginning of year | |||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year | $ | $ | |||||||||
Supplemental Disclosures: | |||||||||||
Non-cash Transactions: | |||||||||||
Paycheck Protection Program forgiveness | $ | $ | |||||||||
Initial fair value of warrants | $ | $ | |||||||||
Initial fair value of derivative liability at issuance of convertible notes | $ | $ | |||||||||
Conversion of common units to common stock | $ | $ | |||||||||
Conversion of Series B Preferred Stock to common stock | $ | $ | |||||||||
Accretion of Preferred Stock discounts | $ | $ | |||||||||
Deemed contribution related to Preferred Stock discount | $ | $ | |||||||||
Other Cash Transactions: | |||||||||||
Cash paid for taxes | $ | $ | |||||||||
Cash paid for interest | $ | $ | |||||||||
The following table provides a reconciliation of cash, cash equivalents and restricted cash: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents, and restricted cash | $ | $ |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Minimum rent | $ | $ | |||||||||
Tenant reimbursements - variable lease revenue | |||||||||||
Straight-line rents | |||||||||||
Percentage rent - variable lease revenue | |||||||||||
Lease termination fees | |||||||||||
Other | |||||||||||
Total | |||||||||||
Credit losses on operating lease receivables | ( | ( | |||||||||
Total | $ | $ |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Professional fees | $ | $ | |||||||||
Corporate administration (1) | |||||||||||
Compensation and benefits | |||||||||||
Capital and debt financing costs | |||||||||||
Advertising costs for leasing activities | |||||||||||
Other | |||||||||||
Total | $ | $ |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Land and land improvements | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Investment properties at cost | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Investment properties, net | $ | $ |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Walnut Hill Plaza | $ | $ | |||||||||
Columbia Fire Station | |||||||||||
Total | $ | $ |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Investment properties, net | $ | $ | ||||||||||||
Rents and other tenant receivables, net | ||||||||||||||
Above market leases, net | ||||||||||||||
Deferred costs and other assets, net | ||||||||||||||
Total assets held for sale | $ | $ |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Loans payable | $ | $ | ||||||||||||
Below market leases, net | ||||||||||||||
Accounts payable, accrued expenses and other liabilities | ||||||||||||||
Total liabilities associated with assets held for sale | $ | $ |
Disposal | Property | Contract Price | Gain (Loss) | Net Proceeds | ||||||||||||||||||||||
November 17, 2021 | Columbia Fire Station | $ | $ | ( | $ | |||||||||||||||||||||
August 31, 2021 | Rivergate Shopping Center Out Parcel | |||||||||||||||||||||||||
July 9, 2021 | Tulls Creek Land Parcel ( | |||||||||||||||||||||||||
March 25, 2021 | Berkley Shopping Center and Berkley Land Parcel ( | |||||||||||||||||||||||||
December 31, 2020 | Riversedge North | |||||||||||||||||||||||||
January 21, 2020 | St. Matthews | ( |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Leases in place, net | $ | $ | |||||||||
Ground lease sandwich interest, net | |||||||||||
Lease origination costs, net | |||||||||||
Tenant relationships, net | |||||||||||
Legal and marketing costs, net | |||||||||||
Other | |||||||||||
Total deferred costs and other assets, net | $ | $ |
For the Years Ended December 31, | Leases in place, net | Ground lease sandwich interest, net | Lease origination costs, net | Tenant relationships, net | Legal & marketing costs, net | Total | ||||||||||||||||||||||||||||||||
2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||||||||||||||
2025 | ||||||||||||||||||||||||||||||||||||||
2026 | ||||||||||||||||||||||||||||||||||||||
Thereafter | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Property/Description | Monthly Payment | Interest Rate | Maturity | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
Litchfield Market Village | $ | % | November 2022 | $ | $ | |||||||||||||||||||||||||||
Twin City Commons | $ | % | January 2023 | |||||||||||||||||||||||||||||
Walnut Hill Plaza | $ | % | March 2023 | |||||||||||||||||||||||||||||
New Market | $ | % | June 2023 | |||||||||||||||||||||||||||||
Benefit Street Note (3) | $ | % | June 2023 | |||||||||||||||||||||||||||||
Deutsche Bank Note (2) | $ | % | July 2023 | |||||||||||||||||||||||||||||
JANAF | $ | % | July 2023 | |||||||||||||||||||||||||||||
First National Bank (6) (7) | $ | LIBOR + | August 2023 | |||||||||||||||||||||||||||||
Lumber River (7) | $ | LIBOR + | September 2023 | |||||||||||||||||||||||||||||
Tampa Festival | $ | % | September 2023 | |||||||||||||||||||||||||||||
Forrest Gallery | $ | % | September 2023 | |||||||||||||||||||||||||||||
South Carolina Food Lions Note (5) | $ | % | January 2024 | |||||||||||||||||||||||||||||
JANAF Bravo | $ | % | May 2024 | |||||||||||||||||||||||||||||
Cypress Shopping Center | $ | % | July 2024 | |||||||||||||||||||||||||||||
Port Crossing | $ | % | August 2024 | |||||||||||||||||||||||||||||
Freeway Junction | $ | % | September 2024 | |||||||||||||||||||||||||||||
Harrodsburg Marketplace | $ | % | September 2024 | |||||||||||||||||||||||||||||
Bryan Station | $ | % | November 2024 | |||||||||||||||||||||||||||||
Crockett Square | % | December 2024 | ||||||||||||||||||||||||||||||
Pierpont Centre | $ | % | February 2025 | |||||||||||||||||||||||||||||
Shoppes at Myrtle Park | $ | % | February 2025 | |||||||||||||||||||||||||||||
Folly Road | $ | % | March 2025 | |||||||||||||||||||||||||||||
Alex City Marketplace | % | April 2025 | ||||||||||||||||||||||||||||||
Butler Square | % | May 2025 | ||||||||||||||||||||||||||||||
Brook Run Shopping Center | % | June 2025 | ||||||||||||||||||||||||||||||
Beaver Ruin Village I and II | % | July 2025 | ||||||||||||||||||||||||||||||
Sunshine Shopping Plaza | % | August 2025 | ||||||||||||||||||||||||||||||
Barnett Portfolio (4) | % | September 2025 | ||||||||||||||||||||||||||||||
Fort Howard Shopping Center | % | October 2025 | ||||||||||||||||||||||||||||||
Conyers Crossing | % | October 2025 | ||||||||||||||||||||||||||||||
Grove Park Shopping Center | % | October 2025 | ||||||||||||||||||||||||||||||
Parkway Plaza | % | October 2025 | ||||||||||||||||||||||||||||||
Winslow Plaza | $ | % | December 2025 | |||||||||||||||||||||||||||||
JANAF BJ's | $ | % | January 2026 | |||||||||||||||||||||||||||||
Tuckernuck | $ | % | March 2026 | |||||||||||||||||||||||||||||
Chesapeake Square | $ | % | August 2026 | |||||||||||||||||||||||||||||
Berkley/Sangaree/Tri-County | % | December 2026 | ||||||||||||||||||||||||||||||
Riverbridge | % | December 2026 | ||||||||||||||||||||||||||||||
Franklin Village | $ | % | January 2027 | |||||||||||||||||||||||||||||
Village of Martinsville | $ | % | July 2029 | |||||||||||||||||||||||||||||
Laburnum Square | % | September 2029 | ||||||||||||||||||||||||||||||
Rivergate | $ | % | September 2031 | |||||||||||||||||||||||||||||
Convertible Notes | % | December 2031 | ||||||||||||||||||||||||||||||
Columbia Fire Station | % | July 2021 | ||||||||||||||||||||||||||||||
Powerscourt Financing Agreement | % | March 2023 | ||||||||||||||||||||||||||||||
Total Principal Balance (1) | ||||||||||||||||||||||||||||||||
Unamortized debt issuance cost (1) | ( | ( | ||||||||||||||||||||||||||||||
Total Loans Payable, including assets held for sale | ||||||||||||||||||||||||||||||||
Less loans payable on assets held for sale, net loan amortization costs | ||||||||||||||||||||||||||||||||
Total Loans Payable, net | $ | $ |
For the years ended December 31, | ||||||||
2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Thereafter | ||||||||
Total principal repayments and debt maturities | $ |
For the Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Range of exercise prices | $ | $ | |||||||||
Common Stock price | $ | $ | |||||||||
Weighted average contractual term to maturity | |||||||||||
Range of expected market volatility % | |||||||||||
Range of risk-free interest rate | |||||||||||
Conversion price | $ | |||||||
Common Stock price | $ | |||||||
Contractual term to maturity | ||||||||
Expected market volatility % | ||||||||
Risk-free interest rate | ||||||||
Balance December 31, 2019 | $ | ||||
Issuance of Powerscourt Warrant | |||||
Balance December 31, 2020 | |||||
Issuance of Wilmington Warrant | |||||
Issuance of embedded derivative | |||||
Changes in fair value | ( | ||||
Balance December 31, 2021 | $ |
For the years ended December 31, | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total minimum rents | $ |
Series D Preferred | |||||
Balance December 31, 2019 | $ | ||||
Accretion of Preferred Stock discount | |||||
Undeclared dividends | |||||
Redemption of Preferred Stock | ( | ||||
Balance December 31, 2020 | |||||
Accretion of Preferred Stock discount | |||||
Undeclared dividends | |||||
Paid-in-kind interest, issuance of Preferred Stock | |||||
Redemption of Preferred Stock | ( | ||||
Balance December 31, 2021 | $ |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Outstanding shares | Potential Dilutive Shares | Outstanding shares | Potential Dilutive Shares | ||||||||||||||||||||
Common units | |||||||||||||||||||||||
Series B Preferred Stock | |||||||||||||||||||||||
Series D Preferred Stock | |||||||||||||||||||||||
Warrants to purchase Common Stock | — | — | |||||||||||||||||||||
Convertible Notes | — | — |
Series D Preferred | |||||||||||
Record Date/Arrears Date | Arrears | Per Share | |||||||||
For the year ended December 31, 2021 | $ | $ | |||||||||
For the year ended December 31, 2020 | $ | $ |
For the Years Ended December 31, | Shares Issued | Market Value | ||||||||||||
(in thousands) | ||||||||||||||
2021 | $ | |||||||||||||
2020 |
For the Years Ended December 31, | |||||||||||||||||
2021 | 2020 | Expiration Year | |||||||||||||||
Amscot | $ | $ | |||||||||||||||
Beaver Ruin Village | |||||||||||||||||
Beaver Ruin Village II | |||||||||||||||||
Moncks Corner | |||||||||||||||||
Devine Street (1) | |||||||||||||||||
JANAF (2) | |||||||||||||||||
Riversedge corporate headquarters office space, Virginia Beach, VA | |||||||||||||||||
Total rent expense | $ | $ |
For the Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | |||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | $ | |||||||||
For the years ended December 31, | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total minimum lease payments (1) | |||||
Discount | ( | ||||
Operating lease liabilities | $ |
2021 | 2020 | ||||||||||
Amounts paid to affiliates | $ | $ | |||||||||
Description | Balance at Beginning of Year | Charged to Costs and Expense | Deductions from Reserves | Balance at End of Year | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||||
Year Ended December 31, 2021 | $ | $ | $ | ( | $ | ||||||||||||||||||
Year Ended December 31, 2020 | $ | $ | $ | ( | $ |
Initial Cost | Costs Capitalized Subsequent to Acquisition | Gross Amount at which Carried at End of Period | |||||||||||||||||||||||||||||||||||||||
Property Name | Land | Building and Improvements | Improvements (net) | Carrying Costs | Land | Building and Improvements | Total | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Amscot Building | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Lumber River Village | |||||||||||||||||||||||||||||||||||||||||
Surrey Plaza | |||||||||||||||||||||||||||||||||||||||||
Tuckernuck | |||||||||||||||||||||||||||||||||||||||||
Twin City Commons | |||||||||||||||||||||||||||||||||||||||||
Walnut Hill Plaza (1) | |||||||||||||||||||||||||||||||||||||||||
Tampa Festival | |||||||||||||||||||||||||||||||||||||||||
Forrest Gallery | |||||||||||||||||||||||||||||||||||||||||
Winslow Plaza | |||||||||||||||||||||||||||||||||||||||||
Clover Plaza | |||||||||||||||||||||||||||||||||||||||||
St. George Plaza | |||||||||||||||||||||||||||||||||||||||||
South Square | |||||||||||||||||||||||||||||||||||||||||
Westland Square | |||||||||||||||||||||||||||||||||||||||||
Waterway Plaza | |||||||||||||||||||||||||||||||||||||||||
Cypress Shopping Center | |||||||||||||||||||||||||||||||||||||||||
Harrodsburg Marketplace | |||||||||||||||||||||||||||||||||||||||||
Port Crossing Shopping Center | |||||||||||||||||||||||||||||||||||||||||
LaGrange Marketplace | |||||||||||||||||||||||||||||||||||||||||
DF I-Courtland (1) | |||||||||||||||||||||||||||||||||||||||||
DF I-Edenton (1) | |||||||||||||||||||||||||||||||||||||||||
Freeway Junction | |||||||||||||||||||||||||||||||||||||||||
Bryan Station | |||||||||||||||||||||||||||||||||||||||||
Crockett Square | |||||||||||||||||||||||||||||||||||||||||
Harbor Point (1) | ( | ||||||||||||||||||||||||||||||||||||||||
Pierpont Centre | |||||||||||||||||||||||||||||||||||||||||
Brook Run Properties | |||||||||||||||||||||||||||||||||||||||||
Alex City Marketplace | |||||||||||||||||||||||||||||||||||||||||
Butler Square | |||||||||||||||||||||||||||||||||||||||||
Brook Run Shopping Center | |||||||||||||||||||||||||||||||||||||||||
Beaver Ruin Village | |||||||||||||||||||||||||||||||||||||||||
Beaver Ruin Village II | |||||||||||||||||||||||||||||||||||||||||
Chesapeake Square | |||||||||||||||||||||||||||||||||||||||||
Sunshine Plaza | |||||||||||||||||||||||||||||||||||||||||
Barnett Portfolio | |||||||||||||||||||||||||||||||||||||||||
Grove Park | |||||||||||||||||||||||||||||||||||||||||
Parkway Plaza | |||||||||||||||||||||||||||||||||||||||||
Fort Howard Square | |||||||||||||||||||||||||||||||||||||||||
Conyers Crossing | |||||||||||||||||||||||||||||||||||||||||
Darien Shopping Center | ( | ||||||||||||||||||||||||||||||||||||||||
Devine Street | ( | ||||||||||||||||||||||||||||||||||||||||
Folly Road | |||||||||||||||||||||||||||||||||||||||||
Georgetown |
Initial Cost | Costs Capitalized Subsequent to Acquisition | Gross Amount at which Carried at End of Period | |||||||||||||||||||||||||||||||||||||||
Property Name | Land | Building and Improvements | Improvements (net) | Carrying Costs | Land | Building and Improvements | Total | ||||||||||||||||||||||||||||||||||
Ladson Crossing | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Lake Greenwood Crossing | |||||||||||||||||||||||||||||||||||||||||
Lake Murray | |||||||||||||||||||||||||||||||||||||||||
Litchfield I | |||||||||||||||||||||||||||||||||||||||||
Litchfield II | |||||||||||||||||||||||||||||||||||||||||
Litchfield Market Village | |||||||||||||||||||||||||||||||||||||||||
Moncks Corner | |||||||||||||||||||||||||||||||||||||||||
Ridgeland | |||||||||||||||||||||||||||||||||||||||||
Shoppes at Myrtle Park | |||||||||||||||||||||||||||||||||||||||||
South Lake | |||||||||||||||||||||||||||||||||||||||||
South Park | |||||||||||||||||||||||||||||||||||||||||
Sangaree | |||||||||||||||||||||||||||||||||||||||||
Tri-County | |||||||||||||||||||||||||||||||||||||||||
Riverbridge | |||||||||||||||||||||||||||||||||||||||||
Laburnum Square | |||||||||||||||||||||||||||||||||||||||||
Franklin Village | |||||||||||||||||||||||||||||||||||||||||
Village at Martinsville | |||||||||||||||||||||||||||||||||||||||||
New Market Crossing | |||||||||||||||||||||||||||||||||||||||||
Rivergate Shopping Center | |||||||||||||||||||||||||||||||||||||||||
JANAF | |||||||||||||||||||||||||||||||||||||||||
Totals | $ | $ | $ | $ | $ | $ | $ |
Property Name | Encumbrances | Accumulated Depreciation | Date of Construction | Date Acquired | Depreciation Life | |||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Amscot Building (2) | $ | 5-40 years | ||||||||||||||||||||||||||||||
Lumber River Village | $ | 5-40 years | ||||||||||||||||||||||||||||||
Surrey Plaza (2) | 5-40 years | |||||||||||||||||||||||||||||||
Tuckernuck | 5-40 years | |||||||||||||||||||||||||||||||
Twin City Commons | 5-40 years | |||||||||||||||||||||||||||||||
Walnut Hill Plaza | 5-15 years | |||||||||||||||||||||||||||||||
Tampa Festival | 5-40 years | |||||||||||||||||||||||||||||||
Forrest Gallery | 5-40 years | |||||||||||||||||||||||||||||||
Winslow Plaza | 5-40 years | |||||||||||||||||||||||||||||||
Clover Plaza | 5-40 years | |||||||||||||||||||||||||||||||
St. George Plaza | 5-40 years | |||||||||||||||||||||||||||||||
South Square | 5-40 years | |||||||||||||||||||||||||||||||
Westland Square | 5-40 years | |||||||||||||||||||||||||||||||
Waterway Plaza | 5-40 years | |||||||||||||||||||||||||||||||
Cypress Shopping Center | 5-40 years | |||||||||||||||||||||||||||||||
Harrodsburg Marketplace | 5-40 years | |||||||||||||||||||||||||||||||
Port Crossing Shopping Center | 5-40 years | |||||||||||||||||||||||||||||||
LaGrange Marketplace (6) | 5-40 years | |||||||||||||||||||||||||||||||
DF I-Courtland (undeveloped land) | N/A | |||||||||||||||||||||||||||||||
Edenton Commons (undeveloped land) | N/A | |||||||||||||||||||||||||||||||
Freeway Junction | 5-40 years | |||||||||||||||||||||||||||||||
Bryan Station | 5-40 years | |||||||||||||||||||||||||||||||
Crockett Square | 5-40 years | |||||||||||||||||||||||||||||||
Harbor Point (undeveloped land) | N/A | |||||||||||||||||||||||||||||||
Pierpont Centre | 5-40 years | |||||||||||||||||||||||||||||||
Brook Run Properties (undeveloped land) | N/A | |||||||||||||||||||||||||||||||
Alex City Marketplace | 5-40 years | |||||||||||||||||||||||||||||||
Butler Square | 5-40 years | |||||||||||||||||||||||||||||||
Brook Run Shopping Center | 5-40 years | |||||||||||||||||||||||||||||||
Beaver Ruin Village (3) | 5-40 years | |||||||||||||||||||||||||||||||
Beaver Ruin Village II (3) | 5-40 years | |||||||||||||||||||||||||||||||
Chesapeake Square | 5-40 years | |||||||||||||||||||||||||||||||
Sunshine Plaza | 5-40 years | |||||||||||||||||||||||||||||||
Barnett Portfolio | 5-40 years | |||||||||||||||||||||||||||||||
Grove Park | 5-40 years | |||||||||||||||||||||||||||||||
Parkway Plaza | 5-40 years | |||||||||||||||||||||||||||||||
Fort Howard Square | 5-40 years | |||||||||||||||||||||||||||||||
Conyers Crossing | 5-40 years | |||||||||||||||||||||||||||||||
Darien Shopping Center | 5-40 years | |||||||||||||||||||||||||||||||
Devine Street | 5-40 years |
Property Name | Encumbrances | Accumulated Depreciation | Date of Construction | Date Acquired | Depreciation Life | |||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Folly Road | $ | $ | 5-40 years | |||||||||||||||||||||||||||||
Georgetown (6) | 5-40 years | |||||||||||||||||||||||||||||||
Ladson Crossing (5) | 5-40 years | |||||||||||||||||||||||||||||||
Lake Greenwood Crossing (5) | 5-40 years | |||||||||||||||||||||||||||||||
Lake Murray | 5-40 years | |||||||||||||||||||||||||||||||
Litchfield I (4) | 5-40 years | |||||||||||||||||||||||||||||||
Litchfield II (4) | 5-40 years | |||||||||||||||||||||||||||||||
Litchfield Market Village (4) | 5-40 years | |||||||||||||||||||||||||||||||
Moncks Corner | 5-40 years | |||||||||||||||||||||||||||||||
Ridgeland (6) | 5-40 years | |||||||||||||||||||||||||||||||
Shoppes at Myrtle Park | 5-40 years | |||||||||||||||||||||||||||||||
South Lake | 5-40 years | |||||||||||||||||||||||||||||||
South Park (5) | 5-40 years | |||||||||||||||||||||||||||||||
Sangaree (1) | 5-40 years | |||||||||||||||||||||||||||||||
Tri-County (1) | 5-40 years | |||||||||||||||||||||||||||||||
Riverbridge | 5-40 years | |||||||||||||||||||||||||||||||
Laburnum Square | 5-40 years | |||||||||||||||||||||||||||||||
Franklin Village | 5-40 years | |||||||||||||||||||||||||||||||
Village at Martinsville | 5-40 years | |||||||||||||||||||||||||||||||
New Market Crossing | 5-40 years | |||||||||||||||||||||||||||||||
Rivergate Shopping Center | 5-40 years | |||||||||||||||||||||||||||||||
JANAF Shopping Center | 5-40 years | |||||||||||||||||||||||||||||||
Totals | $ |
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
Balance at beginning of period | $ | $ | |||||||||
Additions during the period: | |||||||||||
Acquisitions | |||||||||||
Improvements | |||||||||||
Impairments | ( | ( | |||||||||
Disposals | ( | ( | |||||||||
Balance at end of period | $ | $ |
Exhibit | ||||||||
101.INS XBRL | Instance Document (Filed herewith). | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document (Filed herewith). | |||||||
WHEELER REAL ESTATE INVESTMENT TRUST, INC. | ||||||||
By: | /s/ M. Andrew Franklin | |||||||
M. Andrew Franklin | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Crystal Plum | |||||||
Crystal Plum | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Signature | Title | Date | |||||||||
/S/ M. ANDREW FRANKLIN | CEO and President | February 28, 2022 | |||||||||
M. Andrew Franklin | (Principal Executive Officer) | ||||||||||
/S/ CRYSTAL PLUM | Chief Financial Officer | February 28, 2022 | |||||||||
Crystal Plum | (Principal Financial Officer and Principal Accounting Officer) | ||||||||||
/S/ STEFANI D. CARTER | Chair of Board | February 28, 2022 | |||||||||
Stefani D. Carter | |||||||||||
/S/ SAVERIO M FLEMMA | Director | February 28, 2022 | |||||||||
Saverio M Flemma | |||||||||||
/S/ MICHELLE D. BERGMAN | Director | February 28, 2022 | |||||||||
Michelle D. Bergman | |||||||||||
/S/ JOSEPH D. STILWELL | Director | February 28, 2022 | |||||||||
Joseph D. Stilwell | |||||||||||
/S/ PAULA J. POSKON | Director | February 28, 2022 | |||||||||
Paula J. Poskon |
/S/ KERRY G. CAMPBELL | Director | February 28, 2022 | |||||||||
Kerry G. Campbell | |||||||||||
/S/ E.J. BORRACK | Director | February 28, 2022 | |||||||||
E.J. Borrack |
1. | I have reviewed this annual report on Form 10-K of Wheeler Real Estate Investment Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ M. Andrew Franklin | ||
M. Andrew Franklin | ||
Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Wheeler Real Estate Investment Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Crystal Plum | ||
Crystal Plum | ||
Chief Financial Officer |
/s/ M. Andrew Franklin | ||
M. Andrew Franklin | ||
Chief Executive Officer |
/s/ Crystal Plum | ||
Crystal Plum | ||
Chief Financial Officer |
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Cherry Bekaert LLP |
Auditor Location | Virginia Beach, Virginia |
Auditor Firm ID | 677 |
Organization and Basis of Presentation and Consolidation |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation and Consolidation | Organization and Basis of Presentation and Consolidation Wheeler Real Estate Investment Trust, Inc. (the “Trust,” the “REIT”, the “Company”, "we", "our" or "us") is a Maryland corporation formed on June 23, 2011. The Trust serves as the general partner of Wheeler REIT, L.P. (the “Operating Partnership”), which was formed as a Virginia limited partnership on April 5, 2012. At December 31, 2021, the Company owned 98.59% of the Operating Partnership. As of December 31, 2021, the Trust, through the Operating Partnership, owned and operated fifty-eight centers and four undeveloped properties. Ten of these properties are located in Virginia, three are located in Florida, six are located in North Carolina, twenty-two are located in South Carolina, twelve are located in Georgia, two are located in Kentucky, two are located in Tennessee, one is located in New Jersey, one is located in Alabama, one is located in West Virginia, one is located in Oklahoma and one is located in Pennsylvania. The Company’s portfolio had total gross rentable space of approximately 5,478,855 square feet and a leased level of approximately 94.2% at December 31, 2021. Accordingly, the use of the word “Company”, "we", "our" or "us" refers to the Trust and its consolidated subsidiaries, except where the context otherwise requires. The Company includes the Trust, the Operating Partnership, the entities included in the REIT formation and the entities acquired since November 2012. The Company prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, or GAAP. All material balances and transactions between the consolidated entities of the Company have been eliminated. The Company owns, leases and operates income producing grocery-anchored centers, neighborhood centers, community centers and free-standing retail properties with a strategy to acquire high quality retail properties that generate attractive risk-adjusted returns. The Company targeted competitively protected properties in communities that have stable demographics and have historically exhibited pro-business jurisdictions. The Company considers competitively protected properties to be located in the most prominent shopping districts in their respective markets, ideally situated at major “Main and Main” intersections. The Company generally leases its properties to national and regional supermarket chains and selects retailers that offer necessity and value oriented services and items and generate regular consumer traffic. The Company’s tenants carry goods and offer services that are less impacted by fluctuations in the broader U.S. economy and consumers’ disposable income, which it believes generates more predictable property-level cash flows. The Trust through the Operating Partnership owns Wheeler Interests, LLC (“WI”) and Wheeler Real Estate, LLC (“WRE”) (collectively the “Operating Companies”). The Operating Companies are Taxable REIT Subsidiaries (“TRS”) to accommodate serving the Non-REIT Properties since applicable REIT regulations consider the income derived from these services to be “bad” income subject to taxation. The regulations allow for costs incurred by the Company commensurate with the services performed for the Non-REIT Properties to be allocated to a TRS.
|
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Investment Properties The Company records investment properties and related intangibles at fair value upon acquisition. Investment properties include both acquired and constructed assets. Improvements and major repairs and maintenance are capitalized when the repair and maintenance substantially extends the useful life, increases capacity or improves the efficiency of the asset. All other repair and maintenance costs are expensed as incurred. The Company allocates the purchase price of acquisitions to the various components of the asset based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, the Company may utilize third party valuation specialists. These components typically include buildings, land and any intangible assets related to out-of-market leases, tenant relationships and in-place leases the Company determines to exist. The Company determines fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends and specific market and economic conditions that may affect the property. Factors considered by management in the analysis of determining the as-if-vacant property value include an estimate of carrying costs during the expected lease-up periods considering market conditions, and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and estimates of lost rentals at market rates during the expected lease-up periods, tenant demand and other economic conditions. Management also estimates costs to execute similar leases including leasing commissions, tenant improvements, legal and other related expenses. Intangibles related to out-of-market leases, tenant relationships and in-place lease value are recorded at fair value as acquired lease intangibles and are amortized as an adjustment to rental revenue or amortization expense, as appropriate, over the remaining terms of the underlying leases. The Company records depreciation on buildings and improvements utilizing the straight-line method over the estimated useful life of the asset, generally 5 to 40 years. The Company reviews depreciable lives of investment properties periodically and makes adjustments to reflect a shorter economic life, when necessary. Tenant allowances, tenant inducements and tenant improvements are amortized utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. Amounts allocated to buildings are depreciated over the estimated remaining life of the acquired building or related improvements. The Company amortizes amounts allocated to tenant improvements, in-place lease assets and other lease-related intangibles over the remaining life of the underlying leases. The Company also estimates the value of other acquired intangible assets, if any, and amortizes them over the remaining life of the underlying related intangibles. The Company reviews investment properties for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of investment properties may not be recoverable. These circumstances include, but are not limited to, declines in the property’s cash flows, occupancy and fair market value. The Company measures any impairment of investment property when the estimated undiscounted future operating income before depreciation and amortization, plus its residual value, is less than the carrying value of the property. Estimated undiscounted operating income before depreciation and amortization include renewal and renegotiations of current leases, estimates of new leases on vacant spaces, estimates of operating costs and fluctuating market conditions. The renewal and renegotiations of leases in some cases must be approved by additional third parties outside the control of the Company and the tenant. If such renewed or renegotiated leases are approved at amounts below current estimates, then impairment adjustments may be necessary in the future. To the extent impairment has occurred, the Company charges to income the excess of the carrying value of the property over its estimated fair value. The Company estimates fair value using unobservable data such as operating income, estimated capitalization rates, or multiples, leasing prospects for vacant spaces and local market information. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets Held For Sale and Discontinued Operations The Company may decide to sell properties that are held for use. The Company records these properties as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. Properties classified as held for sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. When the carrying value exceeds the fair value, less estimated costs to sell an impairment expense is recognized. The Company estimates fair value, less estimated closing costs based on similar real estate sales transactions. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 and 3 inputs. Level 2 inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 3 for additional details on impairment of assets held for sale for the years ended December 31, 2021 and 2020. Assets held for sale are presented as discontinued operations in all periods presented if the disposition represents a strategic shift that has, or will have, a major effect on the Company's financial position or results of operations. This includes the net gain (or loss) upon disposal of property held for sale, the property's operating results, depreciation and interest expense. Conditional Asset Retirement Obligation A conditional asset retirement obligation represents a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement depends on a future event that may or may not be within the Company’s control. Currently, the Company does not have any conditional asset retirement obligations. However, any such obligations identified in the future would result in the Company recording a liability if the fair value of the obligation can be reasonably estimated. Environmental studies conducted at the time the Company acquired its properties did not reveal any material environmental liabilities, and the Company is unaware of any subsequent environmental matters that would have created a material liability. The Company believes that its properties are currently in material compliance with applicable environmental, as well as non-environmental, statutory and regulatory requirements. The Company did not record any conditional asset retirement obligation liabilities as of December 31, 2021 and 2020. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash and cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Cash equivalents consist primarily of bank operating accounts and money markets. Financial instruments that potentially subject the Company to concentrations of credit risk include its cash and cash equivalents and its trade accounts receivable. The Company places its cash and cash equivalents with institutions of high credit quality. Restricted cash represents amounts held by lenders for real estate taxes, insurance, reserves for capital improvements, leasing costs, tenant security deposits and funds restricted by lender for redemption of Series D Preferred. The Company places its cash and cash equivalents and restricted cash on deposit with financial institutions in the United States, which are insured by the Federal Deposit Insurance Company ("FDIC") up to $250 thousand. The Company's loss in the event of failure of these financial institutions is represented by the difference between the FDIC limit and the total amounts on deposit. Management monitors the financial institutions credit worthiness in conjunction with balances on deposit to minimize risk. Tenant Receivables Tenant receivables include base rents, tenant reimbursements and receivables attributable to recording rents on a straight-line basis. The Company determines an allowance for the uncollectible portion of accrued rents and accounts receivable based upon customer credit-worthiness (including expected recovery of a claim with respect to any tenants in bankruptcy), historical bad debt levels, and current economic trends. The Company considers a receivable past due once it becomes delinquent per the terms of the lease. The Company’s standard lease form considers a rent charge past due after days. A past due receivable triggers certain events such as notices, fees and other allowable and required actions per the lease. As of December 31, 2021 and 2020, the Company’s allowance for uncollectible tenant receivables totaled $633 thousand and $994 thousand, respectively. Above and Below Market Lease Intangibles, net The Company determines the above and below market lease intangibles upon acquiring a property. Above and below market lease intangibles are amortized over the life of the respective leases. Amortization of above and below market lease intangibles is recorded as a component of rental revenues. Deferred Costs and Other Assets, net The Company’s deferred costs and other assets consist primarily of leasing commissions, leases in place, capitalized legal and marketing costs, tenant relationships and ground lease sandwich interest intangibles associated with acquisitions. The Company’s lease origination costs consist primarily of the portion of property acquisitions allocated to lease originations and commissions paid to third parties in connection with lease originations. The Company generally records amortization of lease origination costs on a straight-line basis over the terms of the related leases. Amortization of deferred costs and other assets represents a component of depreciation and amortization expense. Paycheck Protection Program The Company received proceeds of $552 thousand (the "PPP funds") pursuant to the Paycheck Protection Program (the "PPP") under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP funds were received in the form of a promissory note, dated April 24, 2020 (the “Promissory Note”), between the Company and KeyBank as the lender. Under the terms of the CARES Act, the Promissory Note was forgiven during the year ended December 31, 2021 and the corresponding forgiveness of the liability was recorded as "other income" on the consolidated statements of operations. Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including stock purchase warrants and convertible notes, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. The assumptions used in these fair value estimates are based on the three-level valuation hierarchy for fair value measurement and represent Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Debt Issuance Costs The Company may incur debt issuance costs in connection with raising funds through debt. These costs may be paid in the form of cash, or equity (such as warrants and convertible notes). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed. Debt issuance costs are presented as a direct deduction from the carrying value of the associated debt liability in the consolidated balance sheets. Operating Partnership Purchase of Stock The Operating Partnership purchased 71,343 shares of the Series D Preferred on September 22, 2020 from an unaffiliated investor at $15.50 per share. The Company considers the purchase of the REIT's equity securities to be retired in the consolidated financial statements. See Note 8 for additional details. Revenue Recognition Lease Contract Revenue The Company has two classes of underlying assets relating to rental revenue activity, retail and office space. The Company retains substantially all of the risks and benefits of ownership of these underlying assets and accounts for these leases as operating leases. The Company combines lease and nonlease components in lease contracts, which includes combining base rent and tenant reimbursement revenue. The Company accrues minimum rents on a straight-line basis over the terms of the respective leases which results in an unbilled rent asset or deferred rent liability being recorded on the balance sheet. At December 31, 2021 and 2020, there were $5.77 million and $4.48 million, respectively, in unbilled rent which is included in "rents and other tenant receivables, net." Additionally, certain lease agreements contain provisions that grant additional rents based on tenants’ sales volumes (contingent or percentage rent). Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements as variable lease income. The Company’s leases generally require the tenant to reimburse the Company for a substantial portion of its expenses incurred in operating, maintaining, repairing, insuring and managing the shopping center and common areas (collectively defined as Common Area Maintenance or “CAM” expenses). This significantly reduces the Company’s exposure to increases in costs and operating expenses resulting from inflation or other outside factors. These reimbursements are considered nonlease components which the Company combines with the lease component. The Company calculates the tenant’s share of operating costs by multiplying the total amount of the operating costs by the tenant's pro-rata percentage of square footage to total square footage of the property. The Company also receives monthly payments for these reimbursements from substantially all its tenants throughout the year. The Company recognizes tenant reimbursements as variable lease income. Additionally, the Company has tenants who pay real estate taxes directly to the taxing authority. The Company excludes these Company costs paid directly by the tenant to third parties on the Company’s behalf from both variable revenue payments recognized and the associated property operating expenses. The Company does not evaluate whether certain sales taxes and other similar taxes are the Company’s costs or tenants' costs. Instead, the Company accounts for these costs as tenant costs. The Company recognizes lease termination fees, which are included in "other revenues" on the consolidated statements of operations, in the year that the lease is terminated and collection of the fee is reasonably assured. Upon early lease termination, the Company records losses related to unrecovered intangibles and other assets. Beginning in April 2020, the Company received certain rent relief requests, most often in the form of rent deferral requests, as a result of COVID-19. The Company evaluated each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant requests ultimately result in concessions or modification of agreements, nor is the Company forgoing its contractual rights under its lease agreements. The Financial Accounting Standards Board (the "FASB") issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. The Lease Modification Q&A clarifies that entities may elect to treat qualifying lease concessions as if they were based on enforceable rights and obligations, and may choose to apply or not to apply modification accounting to those qualifying concessions. Qualifying concessions must be in response to COVID-19 and not have a substantial increase in the lessee’s obligation or the lessor’s rights under the contract. The Company has elected not to apply ASC 842 modification guidance for concessions that did not increase the lease term, generally these concessions do not impact the overall economics of the lease. Concessions that extend the lease term are accounted for under ASC 842, lease modification guidance. The below table disaggregates the Company’s revenue by type of service for the years ended December 31, 2021 and 2020 (in thousands):
Income Taxes The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code and applicable Treasury regulations relating to REIT qualification. In order to maintain this REIT status, the regulations require the Company to distribute at least 90% of its taxable income to stockholders and meet certain other asset and income tests, as well as other requirements. If the Company fails to qualify as a REIT, it will be subject to tax at regular corporate rates for the years in which it fails to qualify. If the Company loses its REIT status it could not elect to be taxed as a REIT for years unless the Company’s failure to qualify was due to reasonable cause and certain other conditions were satisfied. Management has evaluated the effect of the guidance provided by GAAP on Accounting for Uncertainty of Income Taxes and has determined that the Company had no uncertain income tax positions. Financial Instruments The carrying amount of financial instruments included in assets and liabilities approximates fair market value due to their immediate or short-term maturity. Use of Estimates The Company has made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported periods. The Company’s actual results could differ from these estimates. Corporate General and Administrative Expense Corporate general & administrative expenses consist of the following (in thousands):
(1) Includes $169 thousand in annual rental payments for the year ended December 31, 2021 for the Company's office space headquarters that had a sale leaseback in December 2020. Other Expense Other expense represents costs which are non-operating in nature. Other expenses were $185 thousand for the year ended December 31, 2021, and consist of legal settlement costs. Other expenses were $1.04 million for the year ended December 31, 2020, and include legal settlement costs and reimbursement of 2019 proxy costs, see Note 11 for additional details. Lease Commitments The Company determines if an arrangement is a lease at inception. Operating leases, in which the Company is the lessee, are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU assets include any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend the lease when it is reasonably certain that the company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elects the practical expedient to combine lease and associated nonlease components. The lease components are the majority of its leasing arrangements and the Company accounts for the combined component as an operating lease. In the event the Company modifies existing ground leases or enters into new ground leases, such leases may be classified as finance leases. Noncontrolling Interests Noncontrolling interests is the portion of equity in the Operating Partnership not attributable to the Trust. The ownership interests not held by the parent are considered noncontrolling interests. Accordingly, noncontrolling interests have been reported in equity on the consolidated balance sheets but separate from the Company’s equity. On the consolidated statements of operations, the subsidiaries are reported at the consolidated amount, including both the amount attributable to the Company and noncontrolling interests. Consolidated statements of equity include beginning balances, activity for the period and ending balances for stockholders’ equity, noncontrolling interests and total equity. The noncontrolling interest of the Operating Partnership common unit holders is calculated by multiplying the noncontrolling interest ownership percentage at the balance sheet date by the Operating Partnership’s net assets (total assets less total liabilities). The noncontrolling interest percentage is calculated at any point in time by dividing the number of units not owned by the Company by the total number of units outstanding. The noncontrolling interest ownership percentage will change as additional units are issued or as units are exchanged for the Company’s $0.01 par value per share common stock ("Common Stock"). In accordance with GAAP, any changes in the value from period to period are charged to additional paid-in capital. Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entities Own Equity (Subtopic 815-40).” This ASU simplifies accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separating embedded conversion features from convertible instruments. In addition, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The guidance is effective for fiscal years beginning after December 15, 2021. We adopted this guidance effective January 1, 2021 under the modified retrospective adoption approach. There was no effect to the opening balance of retained earnings at the date of adoption. The comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)". This update modifies the disclosure requirements on fair value measurements in Topic 820 with several removals, modifications and additions for disclosures, which includes both prospective and retrospective disclosures. The guidance adds prospective disclosures related to the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements including measurement uncertainty disclosures to communicate the uncertainty in the measurement as of the reporting date. The Company adopted this ASU as of January 1, 2020. The adoption did not have material impact on its consolidated financial statements upon adoption of the guidance and there were no retrospective disclosures necessary. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This update enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better calculate credit loss estimates. The guidance will apply to most financial assets measured at amortized cost and certain other instruments, such as accounts receivable and loans. The guidance will require that the Company estimate the lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. The Company will also be required to disclose information about how it developed the allowances, including changes in the factors that influenced the Company’s estimate of expected credit losses and the reasons for those changes. The guidance would be effective for interim and annual reporting periods beginning after December 15, 2022, per FASB's issuance of ASU 2019-10, "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates." The Company is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. Reclassifications The Company has reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. The consolidated statements of operations reported within prior year's Form 10-K, fiscal year ended December 31, 2020, presented net loss attributable to Wheeler REIT Common Stockholders and basic and diluted loss per share amounts of $13.56 million and $1.40 per share, respectively. On November 3, 2021, common stockholders of the Company voted to amend the Company’s Charter to remove the cumulative dividend rights of the Series A Preferred and Series B Preferred. As a result, the net loss attributable to Wheeler REIT Common Stockholders and basic and diluted loss per share amounts have been restated to conform with this amendment, resulting in net loss attributable to Wheeler REIT Common Stockholders and basic and diluted loss per share amounts of $9.29 million and $0.96 per share, respectively, for the year ended December 31, 2020. No other reclassifications had an effect on net income, total assets, total liabilities or equity. The revenue from interest income was reclassified from interest expense on the consolidated statements of operations for consistency with current period presentation.
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Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate Investment properties consist of the following (in thousands):
The Company’s depreciation expense on investment properties was $11.07 million and $11.32 million for the years ended December 31, 2021 and 2020, respectively. A significant portion of the Company’s land, buildings and improvements serve as collateral for its mortgage loans. Accordingly, restrictions exist as to the encumbered property's transferability, use and other common rights typically associated with property ownership. Assets Held for Sale and Dispositions At December 31, 2021, assets held for sale included Walnut Hill Plaza, as the Company has committed to a plan to sell the property. At December 31, 2020, assets held for sale included Columbia Fire Station, Berkley Shopping Center, a 0.75 acre land parcel at Berkley (the "Berkley Land Parcel") and two outparcels at Rivergate Shopping Center. Impairment expenses on assets held for sale are a result of reducing the carrying value for the amount that exceeded the property's fair value less estimated selling costs. The valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 inputs. Impairment expenses for the years ended December 31, 2021 and 2020 are as follows (in thousands):
As of December 31, 2021 and 2020, assets held for sale and associated liabilities consist of the following (in thousands):
The following properties were sold during the years ended December 31, 2021 and 2020 (in thousands):
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Deferred Costs |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs | Deferred Costs Deferred costs and other assets, net of accumulated amortization are as follows (in thousands):
As of December 31, 2021 and 2020, the Company’s intangible accumulated amortization totaled $62.94 million and $60.33 million, respectively. During the years ended December 31, 2021 and 2020, the Company’s intangible amortization expense totaled $3.73 million and $5.97 million, respectively. Future amortization of leases in place, ground lease sandwich interest, lease origination costs, tenant relationships, and legal and marketing costs is as follows (in thousands):
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Loans Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable | Loans Payable The Company’s loans payable consist of the following (in thousands, except monthly payment):
(1) Includes loans payable on assets held for sale, see Note 3. (2) Collateralized by LaGrange Marketplace, Ridgeland and Georgetown. (3) Collateralized by Ladson Crossing, Lake Greenwood Crossing and South Park. (4) Collateralized by Cardinal Plaza, Franklinton Square, and Nashville Commons. (5) Collateralized by Clover Plaza, South Square, St. George, Waterway Plaza and Westland Square. (6) Collateralized by Surrey Plaza and Amscot Building. (7) Certain loans bear interest at a variable interest rate equal to LIBOR or another index rate, subject to a floor, in each case plus or minus a specified margin. Rights Offering and Convertible Notes On July 22, 2021, the Company commenced the rights offering (the “Rights Offering”) for the purchase of up to $30.00 million in aggregate principal amount of the Company’s 7.00% senior subordinated convertible notes due 2031 (the “Convertible Notes”). On August 13, 2021, the Rights Offering expired. Pursuant to the Rights Offering, the Company distributed to holders of its Common Stock, as of 5:00 p.m. New York City time on June 1, 2021 (the “Record Date”), non-transferable subscription rights to purchase Convertible Notes. Each holder of the Company’s Common Stock as of the Record Date received one right for each eight shares of the Company’s Common Stock owned, and each right entitled a holder to purchase $25.00 principal amount of Convertible Notes. The Rights Offering was made pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission. The aggregate principal amount of Convertible Notes issued in the Rights Offering was $30.00 million. The Rights Offering was backstopped by Magnetar Structured Credit Fund, LP, Magnetar Longhorn Fund LP, Magnetar Lake Credit Fund LLC, Purpose Alternative Credit Fund – F LLC, Purpose Alternative Credit Fund – T LLC, and AY2 Capital LLC (each individually, a “Backstop Party” and, collectively, the “Backstop Parties”) in the amount of $2.19 million in aggregate principal. On October 12, 2021, the Backstop Parties and their assignee elected to exercise their “accordion right” in full and purchased from the Company an additional $3.00 million in aggregate principal amount of the Company’s Convertible Notes. The Convertible Notes contain debt issuance costs aggregating $7.10 million which is being amortized over the life of the Convertible Notes. On August 13, 2021, the Company, as Issuer, and Wilmington Savings Fund Society, FSB., as Trustee, entered into an Indenture governing the terms of the Convertible Notes (the "Indenture"). The Convertible Notes bear interest at a rate of 7.00% per annum. Interest on the Convertible Notes is payable semi-annually in arrears on June 30 and December 31 of each year, commencing on December 31, 2021. The Convertible Notes are subordinate and junior in right of payment to the Company's obligations to the holders of senior indebtedness, and that in the case of any insolvency, receivership, conservatorship, reorganization, readjustment of debt, marshalling of assets and liabilities or similar proceedings or any liquidation or winding-up of or relating to the Company as a whole, whether voluntary or involuntary, all obligations to holders of senior indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal or interest on the Convertible Notes. Interest on the Convertible Notes is payable, at the Company's election: (a) in cash; (b) in shares of Series B Preferred; (c) in shares of Series D Preferred; or (d) in any combination of (a), (b), and/or (c). For purposes of determining the value of Series B Preferred and Series D Preferred paid as interest on the Convertible Notes, each share of Series B Preferred and Series D Preferred shall be deemed to have a value equal to the product of (x) the average of the VWAPs (as defined in the Indenture) for the Series B Preferred or the Series D Preferred, as the case may be, for the 15 consecutive trading days ending on the third business day immediately preceding the relevant interest payment date, and (y) 0.55. During the year ended December 31, 2021, interest related to the Convertible Notes was $886 thousand and paid with 113,709 shares of Series D Preferred, which when adjusted for the VWAP discount represents interest expense of $1.61 million. The Convertible Notes are convertible, in whole or in part, at any time, at the option of the holders of the Convertible Notes, into shares of the Company’s Common Stock at a conversion price of $6.25 per share of the Company’s Common Stock (the “Conversion Price”); provided, however, that if at any time after September 21, 2023, holders of the Series D Preferred have required the Company to redeem (payable in cash or stock) in the aggregate at least 100,000 shares of Series D Preferred, then the Conversion Price will be adjusted to the lower of (i) 55% of the Conversion Price or (ii) a 45% discount to the lowest price at which any Series D Preferred was converted into the Common Stock. Upon a change of control, each Convertible Note will mandatorily convert into shares of the Company’s Common Stock equal to: (i) the principal amount of each Convertible Note divided by (ii) the product of (x) the average of the per share volume-weighted average prices for the Common Stock for the 15 consecutive trading days ending on the third business day immediately preceding the date of such change of control, and (y) 0.55. After January 1, 2024, the Company may redeem the Convertible Notes at any time (in whole or in part) at the Company's option at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest as of the redemption date (the "Redemption Price"). The Redemption Price may be paid: (a) in cash; (b) in shares of Common Stock; or (c) in any combination of (a) and (b). Powerscourt Financing Agreement On December 22, 2020, the Company entered into a financing agreement (the "Powerscourt Financing Agreement") with Powerscourt Investments XXII, LP, as administrative agent and collateral agent. The Powerscourt Financing Agreement provides for a term loan in the aggregate principal of $25.00 million. The proceeds of the Powerscourt Financing Agreement are intended for the following: (i) to paydown the Company’s indebtedness on the KeyBank Credit Agreement, (ii) to redeem certain shares of the Company’s Series D Preferred, and (iii) to pay fees and expenses in connection with the transactions contemplated by the Powerscourt Financing Agreement. The Powerscourt Financing Agreement is at a rate of 13.50% and matures on March 31, 2023 with quarterly interest only payments beginning on January 15, 2021. In conjunction with the Powerscourt Financing Agreement, the Company issued to Powerscourt XXII, LP a warrant (the "Powerscourt Warrant") to purchase 496,415 shares of Common Stock for $3.12 per share (the "Powerscourt Warrant Agreement"). The Powerscourt Warrant is exercisable at the option of its holder in whole or in part into shares of Common Stock from time to time on or after December 22, 2020 (the "Effective Date") and before the date that is the 36-month anniversary of the Effective Date. Additionally, the Company entered into a registration rights agreement with the holders from time to time of the Powerscourt Warrant, dated as of December 22, 2020 (the “Powerscourt Registration Rights Agreement”), accordingly, the Company registered the resale of the common stock underlying the Powerscourt Warrant on a Form S-11 Registration Statement which became effective on May 25, 2021. On March 12, 2021, the Company paid in full the $25.00 million Powerscourt Financing Agreement. The Powerscourt Warrant Agreement and the Powerscourt Registration Rights Agreement remain as of December 31, 2021. Wilmington Financing Agreement On March 12, 2021, the Company entered into a financing agreement (the "Wilmington Financing Agreement") as borrower, certain subsidiaries of the Company from time to time party thereto, as guarantors (together with the Company, the "Loan Parties"), the lenders from time to time party thereto, and Wilmington Savings Fund Society, FSB, as administrative agent and collateral agent. The Wilmington Financing Agreement provided for a term loan in the aggregate principal amount of $35.00 million. The proceeds of the Wilmington Financing Agreement were intended for the following: (i) to payoff the Company's indebtedness on the Powerscourt Financing Agreement, (ii) to fund the redemption of certain shares of the Company's 8.75% Series D Preferred and (iii) to pay fees and expenses in connection with the transactions contemplated by the Wilmington Financing Agreement. The Wilmington Financing Agreement is at a rate of 8.00% and matures in March 2026 with quarterly interest only payments beginning on April 15, 2021. Any payment or repayment of principal will be made with a premium equal to 5% of the amount repaid or prepaid, a total of $1.75 million. The obligations of the Company under the Wilmington Financing Agreement were secured by liens on certain assets of the Company and certain of the Company's subsidiaries, including mortgages on the properties within the Company's portfolio. The Wilmington Financing Agreement also contains covenants that restrict, among other things the ability of the Company and its subsidiaries to create liens, incur indebtedness, make certain investments, merge or consolidate, dispose of assets, pay certain dividends and make certain other restricted payments or certain equity issuances, change the nature of their businesses, enter into certain transactions with affiliates and change their governing documents. Pursuant to the Wilmington Financing Agreement, the Company issued to the holders from time to time party thereto a warrant (the "Wilmington Warrant") to purchase in the aggregate, 1,061,719 shares of Common Stock in three tranches: warrants to purchase an aggregate of 510,204 shares at an exercise price of $3.430 per share ("Tranche A"); warrants to purchase an aggregate of 424,242 shares at an exercise price of $4.125 per share ("Tranche B"); and warrants to purchase an aggregate of 127,273 shares at an exercise price of $6.875 per share ("Tranche C") (the "Wilmington Warrant Agreement"). The Wilmington Warrant is exercisable at the option of its holder in whole or in part into shares of Common Stock from time to time on or after March 12, 2021 (the "Effective Date") and before the maturity date of the Wilmington Financing Agreement. In connection with the Wilmington Financing Agreement, the Company entered into a registration rights agreement with the holders from time to time of the Wilmington Warrants, dated as of March 12, 2021 (the "Wilmington Registration Rights Agreement"), accordingly, the Company registered the resale of the common stock underlying the Wilmington Warrant on a Form S-11 Registration Statement which became effective on May 25, 2021. On December 21, 2021, the principal balance on the Wilmington Financing Agreement was paid in full. The Wilmington Warrant Agreement and the Wilmington Registration Rights Agreement remain as of December 31, 2021. KeyBank Credit Agreement The KeyBank Credit Agreement was paid in full as of December 22, 2020. The KeyBank Credit Agreement had the following activity during the year ended December 31, 2020: •Entered into the Second Amendment to the KeyBank Credit Agreement (the "Second Amendment") on January 24, 2020, effective December 21, 2019, and the Company began making monthly principal payments of $350 thousand on November 1, 2019. The Second Amendment, among other provisions, requires a pledge of additional collateral of $15.00 million in residual equity interests and staggered maturity dates with an ultimate maturity of June 30, 2020; •Entered into a Third Amendment to the KeyBank Credit Agreement (the "Third Amendment") on July 21, 2020. The Third Amendment, among other provisions, reduces the pledge of additional collateral by two properties and extends the maturity to December 31, 2020; •The KeyBank Credit Agreement had principal paydowns as noted below: ◦$1.78 million paydown from St. Matthews sale proceeds on January 21, 2020; ◦$5.75 million paydown from Shoppes at Myrtle Park refinancing proceeds on January 23, 2020; and ◦$2.50 million paydown from cash released to the Company from restricted cash accounts on May 20, 2020; ◦$1.00 million paydown on November 12, 2020; ◦$3.00 million final paydown from Powerscourt Financing Agreement proceeds on December 22, 2020. Shoppes at Myrtle Park Refinance On January 23, 2020, the Company refinanced the Shoppes at Myrtle Park collateralized portion of the KeyBank Credit Agreement for $6.00 million at a fixed interest rate of 4.45%. The loan matures in February 2025 with monthly principal and interest payments of $33 thousand. Folly Road Refinance On March 23, 2020, the Company executed a promissory note for $7.35 million for the refinancing of Folly Road at a rate of 4.65%. The loan matures in March 2025 with monthly principal and interest payments of $41 thousand. First National Bank Amendment On October 14, 2020, the Company entered into the Second Amendment to extend the $1.13 million First National Bank Loan to March 15, 2021 with monthly principal and interest payments of $25 thousand. The First National Bank Loan will bear interest at LIBOR plus 350 basis points with a minimum interest rate set at 4.25%. On September 22, 2021, the Company entered into the Fourth Amendment to extend the $875 thousand First National Bank Loan to August 15, 2023 with monthly principal and interest payments of $25 thousand. The First National Bank Loan will bear interest at LIBOR plus 350 basis points with a minimum interest rate set at 4.25%. Lumber River Extensions On October 14, 2020, the Company entered into the Third Amendment to extend the $1.39 million Lumber River Loan to April 10, 2021 with monthly principal and interest payments of $11 thousand. The Lumber River Loan will bear interest at LIBOR plus 350 basis points with a minimum interest rate set at 4.25%. On September 22, 2021, the Company entered into the Fifth Amendment to extend the $1.31 million Lumber River Loan to September 10, 2023 with monthly principal and interest payments of $11 thousand. The Lumber River Loan will bear interest at LIBOR plus 350 basis points with a minimum interest rate set at 4.25%. Walnut Hill Plaza Amendment On July 15, 2020, the Company entered into the Third Amendment to reduce the Walnut Hill Plaza loan by $443 thousand to $3.30 million using proceeds from restricted cash reserves and received three months of forbearance on principal payments. On October 16, 2020, the Company entered into the Fourth Amendment to receive forbearance on principal payments through December 29, 2020 and extend the maturity date to March 2023. Tuckernuck Extension and Refinance On November 1, 2020, the Company entered into a Second Amended Forbearance Agreement to extend the Tuckernuck Loan to February 1, 2021 with monthly principal and interest payments of $34 thousand. On February 2, 2021, the Company refinanced the Tuckernuck Loan for $5.15 million at a rate of 5.00%. The loan matures on March 1, 2026 with monthly principal and interest payments of $32 thousand. Rivergate Extensions and Refinance On November 19, 2020, the Company entered into an agreement to extend the maturity date from October 20, 2020 to April 20, 2021 with monthly principal payments of $48 thousand plus accrued and unpaid interest. On May 28, 2021, the Company entered into an agreement with Synovus Bank to extend the maturity date from April 21, 2021 to October 20, 2021 with monthly principal payments of $60 thousand plus accrued and unpaid interest. The Rivergate Loan will bear interest at the Synovus Bank's prime rate less 0.25% with a floor of 3.00%. On August 31, 2021 a $3.54 million principal payment was made in conjunction with the outparcel sale. On September 30, 2021, the Company refinanced the Rivergate Loan for $18.50 million at a rate of 4.25%. The loan matures on September 30, 2031 with monthly principal and interest payments of $100 thousand through September 2026 at which time monthly principal and interest payments begin based on a 20-year amortization and an interest rate change to 5 year U.S. Treasury Rate plus 2.70% with a floor of 4.25%. Riversedge North Payoff On December 31, 2020, the principal balance on the Riversedge North loan was paid in full with the sale of the property, as detailed in Note 3. Columbia Fire Station Extension and Payoff Effective September 3, 2020, the Company extended the Columbia Fire Station promissory note ("Columbia Fire Station Loan") to December 3, 2020, with the monthly principal payment increasing $20 thousand for a total monthly principal and interest payment of $46 thousand beginning on October 3, 2020. On December 7, 2020, the Company received a letter demanding payment in full from Pinnacle Bank for all amounts due under Columbia Fire Station Loan and the interest rate increased to 14%, the default rate. On December 29, 2020, Pinnacle Bank filed a suit against the Company, guarantor. On January 21, 2021, the Company entered into a Forbearance Agreement (the "Forbearance Agreement") with Pinnacle Bank at an interest rate of 14% and made a $500 thousand principal payment. The Forbearance Agreement, among other provisions, extends the maturity date of the Columbia Fire Station Loan to July 21, 2021 and waives all defaults and late fees existing prior to the Forbearance Agreement. On July 21, 2021, the principal balance on the Columbia Fire Station Loan was paid in full. Berkley/Sangaree/Tri-County Paydown On March 25, 2021, the Company made a $3.22 million principal payment on the Berkley/Sangaree/Tri-County loan with the sale of the Berkley Shopping Center, as detailed in Note 3, and paid $687 thousand in defeasance. JANAF Bravo Refinance On May 5, 2021, the Company refinanced the JANAF Bravo Loan for $6.00 million at a rate of 5.00%. The loan matures on May 5, 2024 with monthly principal and interest payments of $35 thousand. Debt Maturities The Company’s scheduled principal repayments on indebtedness as of December 31, 2021, including assets held for sale, are as follows (in thousands):
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Derivative Liabilities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liabilities | Derivative Liabilities Fair Value of Warrants The Company utilized the Monte Carlo simulation model to calculate the fair value of the Powerscourt Warrant and Wilmington Warrant (collectively, the "Warrant Agreements"). Significant observable and unobservable inputs include stock price, conversion price, risk-free rate, term, likelihood of an event of contractual conversion and expected volatility. The Monte Carlo simulation is a Level 3 valuation technique because it requires the development of significant internal assumptions in addition to observable market indicators. The Warrant Agreements contain terms and features that give rise to derivative liability classification. In determining the initial fair value of the Powerscourt Warrant, the Company used the following inputs in its Monte Carlo model; exercise price of $3.12 per share , Common Stock price $2.75, contractual term to maturity 3.0 years, expected Common Stock volatility 72.00% and risk-free interest rate 0.17%. In determining the initial fair value of the Wilmington Warrant, the Company used the following inputs in its Monte Carlo model; exercise price of each of the three tranches within the Wilmington Warrant Agreement as described in Note 5, Common Stock price $3.75, contractual term to maturity 5.0 years, expected Common Stock volatility 54.72% and risk-free interest rate 0.91%. In measuring the warrant liability at December 31, 2021 and 2020, the Company used the following inputs in its Monte Carlo Model:
Fair Value of Conversion Features Related to Convertible Notes The Company identified certain embedded derivatives related to the conversion features of the Convertible Notes. In accordance with ASC 815-40, Derivatives and Hedging Activities, the embedded conversion options contained within the Convertible Notes were accounted for as derivative liabilities at the date of issuance and shall be adjusted to fair value through each reporting date. The Company utilized a multinomial lattice model to calculate the fair value of the embedded derivatives. Significant observable and unobservable inputs include, conversion price, stock price, dividend rate, expected volatility, risk-free rate and term. The multinomial lattice model is a Level 3 valuation technique because it requires the development of significant internal assumptions in addition to observable market indicators. In determining the initial fair value of the embedded derivatives, the Company used the following inputs in its multinomial lattice model; initial conversion price within the Convertible Notes was $6.25, Common Stock price of $2.94, dividend rate of 0%, expected Common Stock volatility 50.00%, risk-free interest rate 1.53% and contractual term to maturity was 10.3 years. In measuring the embedded derivative liability at December 31, 2021, the Company used the following inputs in its multinomial lattice model:
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Rentals under Operating Leases |
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Lessor Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rentals under Operating Leases | Rentals under Operating Leases Future minimum rents to be received under noncancelable tenant operating leases, excluding rents on assets held for sale, for each of the next five years and thereafter, excluding tenant reimbursements and percentage rent based on tenant sales volume, as of December 31, 2021 are as follows (in thousands):
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Equity and Mezzanine Equity |
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Equity and Mezzanine Equity | Equity and Mezzanine Equity The Company has authority to issue 215,000,000 shares of stock, consisting of 200,000,000 shares of $0.01 par value Common Stock (“Common Stock”) and 15,000,000 shares of preferred stock of which 5,000,000 shares have been classified as no par value Series B Preferred Stock (“Series B Preferred”), 6,000,000 shares as Series D Cumulative Convertible Preferred Stock ("Series D Preferred") and 4,500 shares of Series A Preferred Stock ("Series A Preferred"). Substantially all of our business is conducted through the Company’s Operating Partnership. The Trust is the sole general partner of the Operating Partnership and owned a 98.59% and 98.53% interest in the Operating Partnership as of December 31, 2021 and 2020, respectively. Limited partners in the Operating Partnership have the right to redeem their common units for cash or, at our option, common shares at a ratio of one common unit for one common share. Distributions to common unit holders are paid at the same rate per unit as dividends per share to the Trust’s common stockholders. As of December 31, 2021 and 2020, there were 15,227,758 of common units outstanding with the Trust owning 15,012,415 and 15,003,329, respectively, of these common units. Series A Preferred Stock At December 31, 2021 and 2020, the Company had 562 shares without par value Series A Preferred issued and outstanding and a $1,000 liquidation preference per share, or $562 thousand in aggregate. The Company has the right to redeem the 562 shares of Series A Preferred, on a pro rata basis, at any time at a price equal to 103% of the purchase price for the Series A Preferred. Series B Preferred Stock At December 31, 2021 and 2020, the Company had 1,872,448 and 1,875,748 shares, issued and outstanding, respectively, without par value Series B Preferred with a $25.00 liquidation preference per share, or $46.81 million and $46.90 million, respectively. Holders of Series B Preferred shares have the right to receive, only when and as authorized by the Board of Directors and declared by the Company, out of funds legally available for the payment of dividends, cash dividends, at a rate of 9% per annum of the $25 liquidation preference per share. The Series B Preferred has no redemption rights. However, the Series B Preferred is subject to a mandatory conversion once the 20-trading day volume-weighted average closing price of our Common Stock, exceeds $58 per share; once this weighted average closing price is met, each share of our Series B Preferred will automatically convert into shares of our Common Stock at a conversion price equal to $40.00 per share of Common Stock. In addition, holders of our Series B Preferred also have the option, at any time, to convert shares of our Series B Preferred into shares of our Common Stock at a conversion price of $40.00 per share of Common Stock. Upon any voluntary or involuntary liquidation, dissolution or winding up of our company, the holders of shares of our Series B Preferred shall be entitled to be paid out of our assets a liquidation preference of $25.00 per share. The Series B Preferred has no maturity date and will remain outstanding indefinitely unless subject to a mandatory or voluntary conversion as described above. Series D Preferred Stock - Redeemable Preferred Stock and Tender Offers At December 31, 2021 and 2020, the Company had 3,152,392 and 3,529,293 issued and outstanding, respectively, of Series D Preferred, without par value with a $25.00 liquidation preference per share, and a liquidation value of $104.97 million and $109.13 million in aggregate, respectively. Until September 21, 2023, the holders of the Series D Preferred are entitled to receive cumulative cash dividends at a rate of 8.75% per annum of the $25.00 liquidation preference per share (equivalent to the fixed annual amount of $2.1875 per share) (the “Initial Rate”). Commencing September 21, 2023, the holder’s will be entitled to cumulative cash dividends at an annual dividend rate of the Initial Rate increased by 2% of the liquidation preference per annum on each subsequent anniversary thereafter, subject to a maximum annual dividend rate of 14%. Dividends are payable quarterly in arrears on or before January 15th, April 15th, July 15th and October 15th of each year. On or after September 21, 2021, the Company may, at its option, redeem the Series D Preferred, for cash at a redemption price of $25.00 per share, plus an amount equal to all accrued and unpaid dividends, if any, to and including the redemption date. The holder of the Series D Preferred may convert shares at any time into shares of the Company’s Common Stock at an initial conversion rate of $16.96 per share of Common Stock. On September 21, 2023, the holders of the Series D Preferred may, at their option, elect to cause the Company to redeem any or all of their shares at a redemption price of $25.00 per share, plus an amount equal to all accrued and unpaid dividends, if any, to and including the redemption date, payable in cash or in shares of Common Stock, or any combination thereof, at the Company's option. The Series D Preferred requires the Company maintain asset coverage of at least 200%. If we fail to maintain asset coverage of at least 200% calculated by determining the percentage value of (i) our total assets plus accumulated depreciation and accumulated amortization minus our total liabilities and indebtedness as reported in our financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) (exclusive of the book value of any Redeemable and Term Preferred Stock (defined below)) over (ii) the aggregate liquidation preference, plus an amount equal to all accrued and unpaid dividends, of outstanding shares of our Series D Preferred and any outstanding shares of term preferred stock or preferred stock providing for a fixed mandatory redemption date or maturity date (collectively referred to as “Redeemable and Term Preferred Stock”) on the last business day of any calendar quarter (“Asset Coverage Ratio”), and such failure is not cured by the close of business on the date that is 30 calendar days following the filing date of our Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable, for that quarter, or the “Asset Coverage Cure Date,” then we will be required to redeem, within 90 calendar days of the Asset Coverage Cure Date, shares of Redeemable and Term Preferred Stock, which may include Series D Preferred, at least equal to the lesser of (i) the minimum number of shares of Redeemable and Term Preferred Stock that will result in us having a coverage ratio of at least 200% and (ii) the maximum number of shares of Redeemable and Term Preferred Stock that can be redeemed solely out of funds legally available for such redemption. In connection with any redemption for failure to maintain the Asset Coverage Ratio, we may, in our sole option, redeem any shares of Redeemable and Term Preferred Stock we select, including on a non-pro rata basis. We may elect not to redeem any Series D Preferred to cure such failure as long as we cure our failure to meet the Asset Coverage Ratio by or on the Asset Coverage Cure Date. If shares of Series D Preferred are to be redeemed for failure to maintain the Asset Coverage Ratio, such shares will be redeemed solely in cash at a redemption price equal to $25.00 per share plus an amount equal to all accrued but unpaid dividends, if any, on such shares (whether or not declared) to and including the redemption date. Dividends on the Series D Preferred cumulate from the end of the most recent dividend period for which dividends have been paid. Dividends on the Series D Preferred cumulate whether or not (i) we have earnings, (ii) there are funds legally available for the payment of such dividends and (iii) such dividends are authorized by our Board of Directors or declared by us. Dividends on the Series D Preferred do not bear interest. If the Company, fails to pay any dividend within (3) business days after the payment date for such dividend, the then-current dividend rate increases following the payment date by an additional 2.0% of the $25.00 stated liquidation preference per share, or $0.50 per annum, until we pay the dividend, subject to our ability to cure the failure. On December 20, 2018, the Company suspended the Series D Preferred dividend. As such, the Series D Preferred shares began accumulating dividends at 10.75% beginning January 1, 2019 and will continue to accumulate dividends at this rate until all accumulated dividends have been paid. Holders of shares of the Series D Preferred have no voting rights. Pursuant to the Company's Articles Supplementary, if dividends on the Series D Preferred are in arrears for six or more consecutive quarterly periods (a "Preferred Dividend Default"), the number of directors on our Board of Directors will automatically be increased by two, and holders of shares of the Series D Preferred and the holders of Series A Preferred and Series B Preferred (the Series A Preferred and Series B Preferred together, being the "Parity Preferred Stock"), shall be entitled to vote for the election of two additional directors ("Series D Preferred Directors"). A Preferred Dividend Default occurred on April 15, 2020. The election of such directors will take place upon the written request of the holders of record of at least 20% of the Series D Preferred and Parity Preferred Stock. The Board of Directors is not permitted to fill the vacancies on the Board of Directors as a result of the failure of the holders of 20% of the Series D Preferred and Parity Preferred Stock to deliver such written request for the election of the Series D Preferred Directors. The Series D Preferred Directors may serve on our Board of Directors, until all unpaid dividends on such Series D Preferred and Parity Preferred Stock, if any, have been paid or declared a sum sufficient for the payment thereof set apart for payment. On September 22, 2020, the Operating Partnership purchased 71,343 shares of Series D Preferred at $15.50 per share. These shares are deemed to be retired on the consolidated financial statements. The book value of the shares purchased included both accreted and unaccreted issuance costs and dividends in arrears totaling $1.83 million. The Company through “modified Dutch auction” tender offers on the Series D Preferred accepted for purchase 387,097 shares at a purchase price of $15.50 per share, for an aggregate cost of $6.00 million on March 12, 2021 and 103,513 shares of Series D Preferred at a purchase price of $18.00 per share, for an aggregate cost of $1.86 million on May 15, 2021, both excluding fees and expenses. The changes in the carrying value of the Series D Preferred for the years ended December 31, 2021 and 2020 is as follows (in thousands):
Earnings per share Basic earnings per share for the Company’s common stockholder is calculated by dividing income (loss) from continuing operations, excluding amounts attributable to preferred stockholders and the net income (loss) attributable to noncontrolling interests, by the Company’s weighted-average shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) attributable to common stockholders, excluding amounts attributable to preferred stockholders and the net income (loss) attributable to noncontrolling interests, by the weighted-average number of common shares including any dilutive shares. As of December 31, 2021 and 2020, the below shares are able to be converted to Common Stock. The common units, Series B Preferred, Series D Preferred, warrants and Convertible Notes have been excluded from the Company’s diluted earnings per share calculation because their inclusion would be antidilutive.
Dividends On November 3, 2021, common stockholders of the Company voted to amend the Company’s Charter to remove the cumulative dividend rights of the Series A Preferred and Series B Preferred. The following table summarizes the Series D Preferred dividends (in thousands except for per share amounts):
There were no dividends declared to holders of Common Stock for the years ended December 31, 2021 and 2020. The total cumulative dividends in arrears for Series D Preferred (per share $8.30) as of December 31, 2021 is $26.16 million. 2015 Long-Term Incentive Plan On June 4, 2015, the Company's stockholders approved the 2015 Long-Term Incentive Plan (the "2015 Incentive Plan"). The 2015 Incentive Plan allows for issuance of up to 125,000 shares of the Company's Common Stock to employees, directors, officers and consultants for services rendered to the Company. The 2015 Incentive Plan replaced the 2012 Stock Incentive Plan. As of December 31, 2021, there are 41,104 shares available for issuance under the Company’s 2015 Incentive Plan and there were no shares issued in 2021 or 2020. 2016 Long-Term Incentive Plan On June 15, 2016, the Company's stockholders approved the 2016 Long-Term Incentive Plan (the "2016 Incentive Plan"). The 2016 Incentive Plan allows for issuance of up to 625,000 shares of the Company's Common Stock to employees, directors, officers and consultants for services rendered to the Company.
As of December 31, 2021, there are 127,707 shares available for issuance under the Company’s 2016 Incentive Plan. Cancellation of Stock Appreciation Rights Agreement Effective July 5, 2021, Daniel Khoshaba resigned as the President and Chief Executive Officer of the Company and as a member of the Board of Directors and as a member of the Executive Committee of our Board of Directors. Upon Mr. Khoshaba’s cessation of employment with the Company, all of his rights under that certain Stock Appreciation Rights Agreement, dated August 4, 2020, by and between Mr. Khoshaba and the Company (the “SAR Agreement”), were forfeited for no consideration.
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Lease Commitments |
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Lease Commitments | Lease Commitments The Company has ground leases and leases its corporate headquarters; both are accounted for as operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 50 years. As of December 31, 2021 and 2020, the weighted average remaining lease term of our leases is 31 and 32 years, respectively. The following properties are subject to leases which require the Company to make the following fixed annual rental payments and variable lease payments and include escalation clauses and renewal options as follows (in thousands):
(1) Lease options are exercised through 2035 with options which are reasonably certain to be exercised through 2051. (2) Includes $118 thousand and $131 thousand in variable percentage rent, during the years ended December 31, 2021 and 2020, respectively. Supplemental information related to leases is as follows (in thousands):
Undiscounted cash flows of our scheduled obligations for future minimum lease payments due under the operating leases, including applicable automatic extension options and options reasonably certain of being exercised, as of December 31, 2021 and a reconciliation of those cash flows to the operating lease liabilities at December 31, 2021 are as follows (in thousands):
(1) Operating lease payments include $7.54 million related to options to extend lease terms that are reasonably certain of being exercised. On December 31, 2020, the Company sold its corporate headquarters in Virginia Beach to an unrelated party for approximately $2.84 million, net of costs to sell, and simultaneously leased the building for 10 years at an annual base rent of $265 thousand, plus taxes and other operating and maintenance expenses. The transaction qualified for sale leaseback accounting in accordance with ASC 842 and the Company used the incremental borrowing rate associated with the previous loan on the office building of 5.77% for purposes of calculating the lease liability. The lease agreement includes an option for five years and the Company recognized only the initial term of the lease as part of its ROU asset and lease liability. As a result of this transaction, a gain of $49 thousand was recognized, which is included in "gain on disposal of properties" on the consolidated statements of operations with the remaining gain of $725 thousand deferred over the life of the lease.
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Commitments and Contingencies |
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Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance The Company carries comprehensive liability, fire, extended coverage, business interruption and rental loss insurance covering all of the properties in its portfolio under an insurance policy, in addition to other coverages, such as trademark and pollution coverage that may be appropriate for certain of its properties. Additionally, the Company carries a directors’, officers’, entity and employment practices liability insurance policy that covers such claims made against the Company and its directors and officers. The Company believes the policy specifications and insured limits are appropriate and adequate for its properties given the relative risk of loss, the cost of the coverage and industry practice; however, its insurance coverage may not be sufficient to fully cover its losses. Concentration of Credit Risk The Company is subject to risks incidental to the ownership and operation of commercial real estate. These risks include, among others, the risks normally associated with changes in the general economic climate, trends in the retail industry, creditworthiness of tenants, competition for tenants and customers, changes in tax laws, interest rates, the availability of financing and potential liability under environmental and other laws. The Company’s portfolio of properties is dependent upon regional and local economic conditions and is geographically located in the Southeast, Mid-Atlantic and Northeast, which markets represented approximately 62%, 34% and 4%, respectively, of the total annualized base rent of the properties in its portfolio as of December 31, 2021. The Company’s geographic concentration may cause it to be more susceptible to adverse developments in those markets than if it owned a more geographically diverse portfolio. Additionally, the Company’s retail shopping center properties depend on anchor stores or major tenants to attract shoppers and could be adversely affected by the loss of, or a store closure by, one or more of these tenants. Regulatory and Environmental As the owner of the buildings on our properties, the Company could face liability for the presence of hazardous materials (e.g., asbestos or lead) or other adverse conditions (e.g., poor indoor air quality) in its buildings. Environmental laws govern the presence, maintenance, and removal of hazardous materials in buildings, and if the Company does not comply with such laws, it could face fines for such noncompliance. Also, the Company could be liable to third parties (e.g., occupants of the buildings) for damages related to exposure to hazardous materials or adverse conditions in its buildings, and the Company could incur material expenses with respect to abatement or remediation of hazardous materials or other adverse conditions in its buildings. In addition, some of the Company’s tenants routinely handle and use hazardous or regulated substances and wastes as part of their operations at our properties, which are subject to regulation. Such environmental and health and safety laws and regulations could subject the Company or its tenants to liability resulting from these activities. Environmental liabilities could affect a tenant’s ability to make rental payments to the Company, and changes in laws could increase the potential liability for noncompliance. This may result in significant unanticipated expenditures or may otherwise materially and adversely affect the Company’s operations. The Company is not aware of any material contingent liabilities, regulatory matters or environmental matters that may exist. Litigation The Company is involved in various legal proceedings arising in the ordinary course of its business, including, but not limited to commercial disputes. The Company believes that such litigation, claims and administrative proceedings will not have a material adverse impact on its financial position or its results of operations. The Company records a liability when it considers the loss probable and the amount can be reasonably estimated. In addition, the below legal proceedings are in process. Jon Wheeler v. Wheeler Real Estate Investment Trust, Inc., Circuit Court for the City of Virginia Beach, Virginia. Former CEO, Jon Wheeler, alleged that his employment was improperly terminated and that he was owed severance and bonus payments pursuant to his Employment Agreement. In 2020, The Court found in favor of Jon Wheeler on his claim that his employment was terminated without cause. The Court denied Mr. Wheeler’s claims for a bonus and that his termination of employment was wrongful as a violation of public policy. The Court awarded the Company $5 thousand on its counterclaim. At a hearing on September 4, 2020 on Jon Wheeler’s motion for the award of attorneys’ fees, costs, and pre-judgment interest, the Court awarded Mr. Wheeler the requested costs, but awarded no attorneys’ fees and no pre-judgment interest. In total, Mr. Wheeler was awarded $520 thousand. In October 2020, the Company settled with Mr. Wheeler for $500 thousand. Mr. Wheeler preserved his right to appeal the Court’s denial of an award of attorneys’ fees of $375 thousand and pre-judgment interest of $63 thousand. On June 16, 2021, the Supreme Court granted Mr. Wheeler an appeal on his first assignment of error (i.e., the Circuit Court’s refusal to award Mr. Wheeler any attorneys’ fees) but denied the appeal as to Mr. Wheeler’s claim for prejudgment interest. The parties settled in the amount of $185 thousand on July 28, 2021. David Kelly v. Wheeler Real Estate Investment Trust, Inc., Circuit Court for the City of Virginia Beach, Virginia. Former CEO David Kelly filed suit on May 28, 2020, alleging breach of his employment contract. Mr. Kelly claims that his employment was improperly terminated, that he is owed severance pay and related benefits pursuant to his employment agreement, and seeks damages of $400 thousand, plus unpaid bonuses and benefits, pre- and post-judgment interest, attorneys’ fees, and costs. The Company is defending the action on the grounds that Mr. Kelly’s employment was properly terminated for cause and no severance is owed to him. Trial is set for March 2022. At this juncture, the outcome of the matter cannot be predicted. JCP Investment Partnership LP, et al v. Wheeler Real Estate Investment Trust, Inc., United States District Court for the District of Maryland. On March 22, 2021, JCP Investment Partnership, LP, a Texas limited partnership and stockholder of the Company, JCP Investment Partners, LP, a Texas limited partnership and stockholder of the Company, JCP Investment Holdings, LLC, a Texas limited liability company and stockholder of the Company, and JCP Investment Management, LLC, a Texas limited liability company and stockholder of the Company (collectively, the “JCP Plaintiffs”), filed suit against the Company and certain current and former directors and former officers of the Company (the “Individual Defendants”), in the United States District Court for the District of Maryland. The complaint alleges that the Company amended provisions of its Articles Supplementary in 2018 governing the issuance of the Company’s Series D Preferred in violation of Maryland corporate law and without obtaining the consent of preferred stockholders and, therefore, the court should declare the Company’s said amendment invalid, enjoin further purportedly unauthorized amendments, and either compel the Company to redeem the JCP Plaintiffs' stock or enter judgment for monetary damages the JCP Plaintiffs purportedly sustained based on the Company’s alleged breach of its contractual duties to redeem the JCP Plaintiffs’ Series D Preferred. The complaint also alleges certain violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, and alleges that the Individual Defendants violated Section 20(a) of the Exchange Act. The JCP Plaintiffs are each purportedly a holder of the Company’s Series D Preferred. The complaint seeks damages, interest, attorneys’ fees, other costs and expenses, and such other relief as the court may deem just and equitable. The Company has filed an answer to the complaint denying any liability. The Individual Defendants filed a motion to dismiss the complaint, which was denied. The JCP Plaintiffs have filed a Motion For Partial Summary Judgment, as to which the Company and the Individual Defendants filed oppositions. The Court has not yet ruled on the Motion. At this early juncture, the outcome of the litigation is uncertain. Steamboat Capital Partners Master Fund, LP and Steamboat Capital Partners II, LP v. Wheeler Real Estate Investment Trust, Inc., Steamboat Capital Partners Master Fund, LP and Steamboat Capital Partners II, LP v. Wheeler Real Estate Investment Trust, Inc., Circuit Court for Baltimore County, Maryland. On October 25, 2021, Steamboat Capital Partners Master Fund, LP, a Cayman Islands exempted limited partnership and stockholder of the Company, and Steamboat Capital Partners II, LP, a Delaware limited partnership and stockholder of the Company, filed suit against the Company in the Circuit Court for Baltimore County, Maryland. The complaint alleges that the Company's rights offering of convertible debt to the Company's common stockholders, and the notes issued pursuant to the rights offering, breached the provisions of the Company's governing documents and violated the rights of the holders of the Series B Preferred and Series D Preferred. Plaintiffs seek relief as follows: require the Company to pay all dividends accrued, as of the date of the rights offering, on the Series B Preferred and Series D Preferred, and prohibit the Company from paying interest on the notes held by the Company's common stockholders (upon exercise of the rights) until all accrued dividends on the Series B Preferred and Series D Preferred are paid. Plaintiffs also seek a declaration that the rights offering by the Company to its common stockholders, which resulted in the issuance of notes, when accrued Series B Preferred dividends and Series D Preferred dividends had not been fully paid, breached the provisions of the Company's governing documents. In addition, the complaint contends that the Company's amendment of its charter to remove the cumulative nature of dividends from the Series B Preferred cannot be applied retroactively. A trial date is set for May 2023. At this juncture, the outcome of the matter cannot be predicted. Harbor Pointe Tax Increment Financing On September 1, 2011, the Grove Economic Development Authority issued the Grove Economic Development Authority Tax Increment Revenue Note, Taxable Series 2011 in the amount of $2.42 million, bearing a variable interest rate of 2.29%, not to exceed 14% and payable in 50 semi-annual installments. The proceeds of the bonds were to provide funding for the construction of public infrastructure and other site improvements and to be repaid by incremental additional property taxes generated by development. Harbor Pointe Associates, LLC, then owned by an affiliate of former CEO, Jon Wheeler, entered into an Economic Development Agreement with the Grove Economic Development Authority for this infrastructure development and in the event the ad valorem taxes were insufficient to cover annual debt service, Harbor Pointe Associates, LLC would reimburse the Grove Economic Development Authority (the “Harbor Pointe Agreement”). In 2014, Harbor Pointe Associates, LLC was acquired by the Company. The total debt service shortfall over the life of the bond is uncertain as it is based on ad valorem taxes, assessed property values, property tax rates, LIBOR and future potential development ranging until 2036. The Company’s future total principal obligation under the Harbor Pointe Agreement will be no more than $2.11 million, the principal amount of the bonds, as of December 31, 2021. In addition, the Company may have an interest obligation on the note based on the principal balance and LIBOR rates in effect at future payment dates. The Company funded approximately $87 thousand and $0 thousand, during the years ended December 31, 2021 and 2020, respectively, in debt service shortfalls. No amounts have been accrued for this as of December 31, 2021 as a reasonable estimate of future debt service shortfalls cannot be determined based on variables noted above. Tax Protection Agreement In 2016, in connection with the acquisition of Berkley and Sangaree/Tri-County, the Operating Partnership entered into a tax protection agreement that obligates the Operating Partnership to reimburse Jon Wheeler, the Company's former CEO, for his tax liabilities resulting from the recognition of certain taxable income or gain in the event the Operating Partnership takes certain action prior to November 10, 2023 with respect to Sangaree Plaza, Tri-County Plaza and Berkley. No liability was recorded as of December 31, 2021.
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Related Party Transactions |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions The related party amounts below reflect the activity between the Company and its affiliates for the years ended December 31, 2021 and 2020 (in thousands):
Reimbursement of Proxy Solicitation Expenses The Company agreed to reimburse the Stilwell Value Partners VII, L.P., Stilwell Activist Fund, L.P., Stilwell Activist Investments, L.P., Stilwell Value LLC and Joseph Stilwell (collectively, the “Stilwell Group”), for expenses it incurred in connection with the 2019 Stilwell Solicitation. At the 2019 annual meeting, our stockholders elected three nominees designated by the Stilwell Group to the Board of Directors. The Stilwell Group disclosed in the Stilwell Solicitation that it intended to seek reimbursement of the expenses it incurred in connection with such solicitation. This reimbursement was recorded on the consolidated statements of operations as "other expense". During the years ended December 31, 2021 and 2020, the Company reimbursed the Stilwell Group $369 thousand and $70 thousand, respectively, for these costs. As of December 31, 2021, the Company had reimbursed the Stilwell Group in full for these expenses.
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Walnut Hill Plaza On January 11, 2022, the Company sold Walnut Hill Plaza for a contract price of $1.99 million, resulting in a paydown of $1.79 million on the Walnut Hill Plaza Loan. On February 17, 2022, the Company paid the remaining loan balance of $1.34 million in full.
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Schedule II-Valuation and Qualifying Accounts |
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Schedule II-Valuation and Qualifying Accounts December 31, 2021
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Schedule III-Real Estate and Accumulated Depreciation |
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SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule III-Real Estate and Accumulated Depreciation | Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Schedule III-Real Estate and Accumulated Depreciation December 31, 2021
(1) Net of impairment expenses. Wheeler Real Estate Investment Trust, Inc. and Subsidiaries Schedule III-Real Estate and Accumulated Depreciation
(1) Properties secure a $6.2 million mortgage note. (2) Properties secure a $789 thousand mortgage note. (3) Properties secure a $9.4 million mortgage note. (4) Properties secure a $7.3 million mortgage note. (5) Properties secure a $6.9 million mortgage note. (6) Properties secure a $5.5 million mortgage note. Schedule III-Real Estate and Accumulated Depreciation (Continued)
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Summary of Significant Accounting Policies - Policies |
12 Months Ended |
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Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Investment Properties | Investment Properties The Company records investment properties and related intangibles at fair value upon acquisition. Investment properties include both acquired and constructed assets. Improvements and major repairs and maintenance are capitalized when the repair and maintenance substantially extends the useful life, increases capacity or improves the efficiency of the asset. All other repair and maintenance costs are expensed as incurred. The Company allocates the purchase price of acquisitions to the various components of the asset based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, the Company may utilize third party valuation specialists. These components typically include buildings, land and any intangible assets related to out-of-market leases, tenant relationships and in-place leases the Company determines to exist. The Company determines fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends and specific market and economic conditions that may affect the property. Factors considered by management in the analysis of determining the as-if-vacant property value include an estimate of carrying costs during the expected lease-up periods considering market conditions, and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and estimates of lost rentals at market rates during the expected lease-up periods, tenant demand and other economic conditions. Management also estimates costs to execute similar leases including leasing commissions, tenant improvements, legal and other related expenses. Intangibles related to out-of-market leases, tenant relationships and in-place lease value are recorded at fair value as acquired lease intangibles and are amortized as an adjustment to rental revenue or amortization expense, as appropriate, over the remaining terms of the underlying leases. The Company records depreciation on buildings and improvements utilizing the straight-line method over the estimated useful life of the asset, generally 5 to 40 years. The Company reviews depreciable lives of investment properties periodically and makes adjustments to reflect a shorter economic life, when necessary. Tenant allowances, tenant inducements and tenant improvements are amortized utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. Amounts allocated to buildings are depreciated over the estimated remaining life of the acquired building or related improvements. The Company amortizes amounts allocated to tenant improvements, in-place lease assets and other lease-related intangibles over the remaining life of the underlying leases. The Company also estimates the value of other acquired intangible assets, if any, and amortizes them over the remaining life of the underlying related intangibles. |
Assets Held for Sale and DIscontinued Operations | Assets Held For Sale and Discontinued Operations The Company may decide to sell properties that are held for use. The Company records these properties as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. Properties classified as held for sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. When the carrying value exceeds the fair value, less estimated costs to sell an impairment expense is recognized. The Company estimates fair value, less estimated closing costs based on similar real estate sales transactions. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 and 3 inputs. Level 2 inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 3 for additional details on impairment of assets held for sale for the years ended December 31, 2021 and 2020. Assets held for sale are presented as discontinued operations in all periods presented if the disposition represents a strategic shift that has, or will have, a major effect on the Company's financial position or results of operations. This includes the net gain (or loss) upon disposal of property held for sale, the property's operating results, depreciation and interest expense.
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Conditional Asset Retirement Obligation | Conditional Asset Retirement Obligation |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash and cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Cash equivalents consist primarily of bank operating accounts and money markets. Financial instruments that potentially subject the Company to concentrations of credit risk include its cash and cash equivalents and its trade accounts receivable. The Company places its cash and cash equivalents with institutions of high credit quality. Restricted cash represents amounts held by lenders for real estate taxes, insurance, reserves for capital improvements, leasing costs, tenant security deposits and funds restricted by lender for redemption of Series D Preferred. The Company places its cash and cash equivalents and restricted cash on deposit with financial institutions in the United States, which are insured by the Federal Deposit Insurance Company ("FDIC") up to $250 thousand. The Company's loss in the event of failure of these financial institutions is represented by the difference between the FDIC limit and the total amounts on deposit. Management monitors the financial institutions credit worthiness in conjunction with balances on deposit to minimize risk.
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Tenant Receivables | Tenant Receivables |
Above and Below Market Lease Intangibles, Net | Above and Below Market Lease Intangibles, netThe Company determines the above and below market lease intangibles upon acquiring a property. Above and below market lease intangibles are amortized over the life of the respective leases. Amortization of above and below market lease intangibles is recorded as a component of rental revenues. |
Deferred Costs and Other Assets, Net | Deferred Costs and Other Assets, net The Company’s deferred costs and other assets consist primarily of leasing commissions, leases in place, capitalized legal and marketing costs, tenant relationships and ground lease sandwich interest intangibles associated with acquisitions. The Company’s lease origination costs consist primarily of the portion of property acquisitions allocated to lease originations and commissions paid to third parties in connection with lease originations. The Company generally records amortization of lease origination costs on a straight-line basis over the terms of the related leases. Amortization of deferred costs and other assets represents a component of depreciation and amortization expense.
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Paycheck Protection Program | Paycheck Protection Program The Company received proceeds of $552 thousand (the "PPP funds") pursuant to the Paycheck Protection Program (the "PPP") under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP funds were received in the form of a promissory note, dated April 24, 2020 (the “Promissory Note”), between the Company and KeyBank as the lender. Under the terms of the CARES Act, the Promissory Note was forgiven during the year ended December 31, 2021 and the corresponding forgiveness of the liability was recorded as "other income" on the consolidated statements of operations.
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Derivative Financial Instruments | Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including stock purchase warrants and convertible notes, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. The assumptions used in these fair value estimates are based on the three-level valuation hierarchy for fair value measurement and represent Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
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Debt Issuance Costs | Debt Issuance Costs The Company may incur debt issuance costs in connection with raising funds through debt. These costs may be paid in the form of cash, or equity (such as warrants and convertible notes). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed. Debt issuance costs are presented as a direct deduction from the carrying value of the associated debt liability in the consolidated balance sheets.
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Lease Contract Revenue | Lease Contract Revenue The Company has two classes of underlying assets relating to rental revenue activity, retail and office space. The Company retains substantially all of the risks and benefits of ownership of these underlying assets and accounts for these leases as operating leases. The Company combines lease and nonlease components in lease contracts, which includes combining base rent and tenant reimbursement revenue. The Company accrues minimum rents on a straight-line basis over the terms of the respective leases which results in an unbilled rent asset or deferred rent liability being recorded on the balance sheet. At December 31, 2021 and 2020, there were $5.77 million and $4.48 million, respectively, in unbilled rent which is included in "rents and other tenant receivables, net." Additionally, certain lease agreements contain provisions that grant additional rents based on tenants’ sales volumes (contingent or percentage rent). Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements as variable lease income. The Company’s leases generally require the tenant to reimburse the Company for a substantial portion of its expenses incurred in operating, maintaining, repairing, insuring and managing the shopping center and common areas (collectively defined as Common Area Maintenance or “CAM” expenses). This significantly reduces the Company’s exposure to increases in costs and operating expenses resulting from inflation or other outside factors. These reimbursements are considered nonlease components which the Company combines with the lease component. The Company calculates the tenant’s share of operating costs by multiplying the total amount of the operating costs by the tenant's pro-rata percentage of square footage to total square footage of the property. The Company also receives monthly payments for these reimbursements from substantially all its tenants throughout the year. The Company recognizes tenant reimbursements as variable lease income. Additionally, the Company has tenants who pay real estate taxes directly to the taxing authority. The Company excludes these Company costs paid directly by the tenant to third parties on the Company’s behalf from both variable revenue payments recognized and the associated property operating expenses. The Company does not evaluate whether certain sales taxes and other similar taxes are the Company’s costs or tenants' costs. Instead, the Company accounts for these costs as tenant costs. The Company recognizes lease termination fees, which are included in "other revenues" on the consolidated statements of operations, in the year that the lease is terminated and collection of the fee is reasonably assured. Upon early lease termination, the Company records losses related to unrecovered intangibles and other assets. Beginning in April 2020, the Company received certain rent relief requests, most often in the form of rent deferral requests, as a result of COVID-19. The Company evaluated each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant requests ultimately result in concessions or modification of agreements, nor is the Company forgoing its contractual rights under its lease agreements. The Financial Accounting Standards Board (the "FASB") issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. The Lease Modification Q&A clarifies that entities may elect to treat qualifying lease concessions as if they were based on enforceable rights and obligations, and may choose to apply or not to apply modification accounting to those qualifying concessions. Qualifying concessions must be in response to COVID-19 and not have a substantial increase in the lessee’s obligation or the lessor’s rights under the contract. The Company has elected not to apply ASC 842 modification guidance for concessions that did not increase the lease term, generally these concessions do not impact the overall economics of the lease. Concessions that extend the lease term are accounted for under ASC 842, lease modification guidance.
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Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code and applicable Treasury regulations relating to REIT qualification. In order to maintain this REIT status, the regulations require the Company to distribute at least 90% of its taxable income to stockholders and meet certain other asset and income tests, as well as other requirements. If the Company fails to qualify as a REIT, it will be subject to tax at regular corporate rates for the years in which it fails to qualify. If the Company loses its REIT status it could not elect to be taxed as a REIT for years unless the Company’s failure to qualify was due to reasonable cause and certain other conditions were satisfied. |
Financial Instruments | Financial Instruments The carrying amount of financial instruments included in assets and liabilities approximates fair market value due to their immediate or short-term maturity.
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Use of Estimates | Use of Estimates |
Lease Commitments | Lease Commitments The Company determines if an arrangement is a lease at inception. Operating leases, in which the Company is the lessee, are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU assets include any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend the lease when it is reasonably certain that the company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elects the practical expedient to combine lease and associated nonlease components. The lease components are the majority of its leasing arrangements and the Company accounts for the combined component as an operating lease. In the event the Company modifies existing ground leases or enters into new ground leases, such leases may be classified as finance leases.
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Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests is the portion of equity in the Operating Partnership not attributable to the Trust. The ownership interests not held by the parent are considered noncontrolling interests. Accordingly, noncontrolling interests have been reported in equity on the consolidated balance sheets but separate from the Company’s equity. On the consolidated statements of operations, the subsidiaries are reported at the consolidated amount, including both the amount attributable to the Company and noncontrolling interests. Consolidated statements of equity include beginning balances, activity for the period and ending balances for stockholders’ equity, noncontrolling interests and total equity. The noncontrolling interest of the Operating Partnership common unit holders is calculated by multiplying the noncontrolling interest ownership percentage at the balance sheet date by the Operating Partnership’s net assets (total assets less total liabilities). The noncontrolling interest percentage is calculated at any point in time by dividing the number of units not owned by the Company by the total number of units outstanding. The noncontrolling interest ownership percentage will change as additional units are issued or as units are exchanged for the Company’s $0.01 par value per share common stock ("Common Stock"). In accordance with GAAP, any changes in the value from period to period are charged to additional paid-in capital.
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Recently Adopted Accounting Standards and Recent Accounting Pronouncements | Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entities Own Equity (Subtopic 815-40).” This ASU simplifies accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separating embedded conversion features from convertible instruments. In addition, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The guidance is effective for fiscal years beginning after December 15, 2021. We adopted this guidance effective January 1, 2021 under the modified retrospective adoption approach. There was no effect to the opening balance of retained earnings at the date of adoption. The comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)". This update modifies the disclosure requirements on fair value measurements in Topic 820 with several removals, modifications and additions for disclosures, which includes both prospective and retrospective disclosures. The guidance adds prospective disclosures related to the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements including measurement uncertainty disclosures to communicate the uncertainty in the measurement as of the reporting date. The Company adopted this ASU as of January 1, 2020. The adoption did not have material impact on its consolidated financial statements upon adoption of the guidance and there were no retrospective disclosures necessary. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This update enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better calculate credit loss estimates. The guidance will apply to most financial assets measured at amortized cost and certain other instruments, such as accounts receivable and loans. The guidance will require that the Company estimate the lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. The Company will also be required to disclose information about how it developed the allowances, including changes in the factors that influenced the Company’s estimate of expected credit losses and the reasons for those changes. The guidance would be effective for interim and annual reporting periods beginning after December 15, 2022, per FASB's issuance of ASU 2019-10, "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates." The Company is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows.
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Reclassifications | Reclassifications The Company has reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. The consolidated statements of operations reported within prior year's Form 10-K, fiscal year ended December 31, 2020, presented net loss attributable to Wheeler REIT Common Stockholders and basic and diluted loss per share amounts of $13.56 million and $1.40 per share, respectively. On November 3, 2021, common stockholders of the Company voted to amend the Company’s Charter to remove the cumulative dividend rights of the Series A Preferred and Series B Preferred. As a result, the net loss attributable to Wheeler REIT Common Stockholders and basic and diluted loss per share amounts have been restated to conform with this amendment, resulting in net loss attributable to Wheeler REIT Common Stockholders and basic and diluted loss per share amounts of $9.29 million and $0.96 per share, respectively, for the year ended December 31, 2020. No other reclassifications had an effect on net income, total assets, total liabilities or equity. The revenue from interest income was reclassified from interest expense on the consolidated statements of operations for consistency with current period presentation.
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Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of Company's revenue | The below table disaggregates the Company’s revenue by type of service for the years ended December 31, 2021 and 2020 (in thousands):
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Schedule of corporate general and administrative expense | Corporate general & administrative expenses consist of the following (in thousands):
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Real Estate (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment properties | Investment properties consist of the following (in thousands):
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Schedule of Impaired Long-Lived Assets Held and Used by Asset | Impairment expenses for the years ended December 31, 2021 and 2020 are as follows (in thousands):
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Schedule of dispositions | As of December 31, 2021 and 2020, assets held for sale and associated liabilities consist of the following (in thousands):
The following properties were sold during the years ended December 31, 2021 and 2020 (in thousands):
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Deferred Costs (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of details of deferred costs, net of amortization and other assets | Deferred costs and other assets, net of accumulated amortization are as follows (in thousands):
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Schedule of future amortization of lease origination costs, financing costs and in place leases | Future amortization of leases in place, ground lease sandwich interest, lease origination costs, tenant relationships, and legal and marketing costs is as follows (in thousands):
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Loans Payable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans payable | The Company’s loans payable consist of the following (in thousands, except monthly payment):
(1) Includes loans payable on assets held for sale, see Note 3. (2) Collateralized by LaGrange Marketplace, Ridgeland and Georgetown. (3) Collateralized by Ladson Crossing, Lake Greenwood Crossing and South Park. (4) Collateralized by Cardinal Plaza, Franklinton Square, and Nashville Commons. (5) Collateralized by Clover Plaza, South Square, St. George, Waterway Plaza and Westland Square. (6) Collateralized by Surrey Plaza and Amscot Building. (7) Certain loans bear interest at a variable interest rate equal to LIBOR or another index rate, subject to a floor, in each case plus or minus a specified margin.
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Schedule of Company's scheduled principal repayments on indebtedness | The Company’s scheduled principal repayments on indebtedness as of December 31, 2021, including assets held for sale, are as follows (in thousands):
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Derivative Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques | In measuring the warrant liability at December 31, 2021 and 2020, the Company used the following inputs in its Monte Carlo Model:
In measuring the embedded derivative liability at December 31, 2021, the Company used the following inputs in its multinomial lattice model:
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Summary of the changes in fair value of the Company's derivative liabilities | The following table sets forth a summary of the changes in fair value of the Company's derivative liabilities, which include both the warrant liabilities and embedded derivative liability (in thousands):
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Rentals under Operating Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future minimum rentals to be received under noncancelable tenant operating leases | Future minimum rents to be received under noncancelable tenant operating leases, excluding rents on assets held for sale, for each of the next five years and thereafter, excluding tenant reimbursements and percentage rent based on tenant sales volume, as of December 31, 2021 are as follows (in thousands):
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Equity and Mezzanine Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Carrying Value of Series D Preferred | The changes in the carrying value of the Series D Preferred for the years ended December 31, 2021 and 2020 is as follows (in thousands):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | As of December 31, 2021 and 2020, the below shares are able to be converted to Common Stock. The common units, Series B Preferred, Series D Preferred, warrants and Convertible Notes have been excluded from the Company’s diluted earnings per share calculation because their inclusion would be antidilutive.
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Schedule of Dividends Declared | The following table summarizes the Series D Preferred dividends (in thousands except for per share amounts):
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Share-based Payment Arrangement Cost | On June 15, 2016, the Company's stockholders approved the 2016 Long-Term Incentive Plan (the "2016 Incentive Plan"). The 2016 Incentive Plan allows for issuance of up to 625,000 shares of the Company's Common Stock to employees, directors, officers and consultants for services rendered to the Company.
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Lease Commitments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Ground Lease Payments and Supplemental Information Related to Leases | The following properties are subject to leases which require the Company to make the following fixed annual rental payments and variable lease payments and include escalation clauses and renewal options as follows (in thousands):
(1) Lease options are exercised through 2035 with options which are reasonably certain to be exercised through 2051. (2) Includes $118 thousand and $131 thousand in variable percentage rent, during the years ended December 31, 2021 and 2020, respectively. Supplemental information related to leases is as follows (in thousands):
|
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Schedule of Undiscounted Cash Flows of Scheduled Obligations for Under Operating Leases | Undiscounted cash flows of our scheduled obligations for future minimum lease payments due under the operating leases, including applicable automatic extension options and options reasonably certain of being exercised, as of December 31, 2021 and a reconciliation of those cash flows to the operating lease liabilities at December 31, 2021 are as follows (in thousands):
(1) Operating lease payments include $7.54 million related to options to extend lease terms that are reasonably certain of being exercised.
|
Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of related party activity | The related party amounts below reflect the activity between the Company and its affiliates for the years ended December 31, 2021 and 2020 (in thousands):
|
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 942 | $ 964 |
Subtotal | 61,549 | 62,134 |
Credit losses on operating lease receivables | (239) | (1,131) |
Total Revenue | 61,310 | 61,003 |
Minimum rent | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 45,896 | 46,349 |
Tenant reimbursements - variable lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,120 | 13,273 |
Percentage Rent - variable lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Variable lease revenue | 531 | 393 |
Straight-line rents | ||
Disaggregation of Revenue [Line Items] | ||
Straight-line rents | 1,060 | 1,155 |
Lease termination fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 139 | 178 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 803 | $ 786 |
Summary of Significant Accounting Policies - CG&A Schedule (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
CG&A Schedule [Abstract] | ||
Professional fees | $ 3,116 | $ 2,466 |
Corporate administration | 1,771 | 1,240 |
Compensation and benefits | 1,465 | 1,589 |
Capital and debt financing costs | 438 | 291 |
Advertising costs for leasing activities | 119 | 117 |
Other | 231 | 128 |
Total | 7,140 | 5,831 |
Property, Plant and Equipment [Line Items] | ||
Annual rental payments | 902 | $ 583 |
Office Building | ||
Property, Plant and Equipment [Line Items] | ||
Annual rental payments | $ 169 |
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reclassification [Line Items] | ||
Net loss attributable to Wheeler REIT Common stock holders, basic and diluted | $ (13,240) | $ (9,287) |
Basic (in dollars per share) | $ (1.36) | $ (0.96) |
Diluted (in dollars per share) | $ (1.36) | $ (0.96) |
Removal of cumulative dividend rights | ||
Reclassification [Line Items] | ||
Net loss attributable to Wheeler REIT Common stock holders, basic and diluted | $ 9,290 | |
Basic (in dollars per share) | $ 0.96 | |
Diluted (in dollars per share) | $ 0.96 | |
Previously Reported | Removal of cumulative dividend rights | ||
Reclassification [Line Items] | ||
Net loss attributable to Wheeler REIT Common stock holders, basic and diluted | $ 13,560 | |
Basic (in dollars per share) | $ 1.40 | |
Diluted (in dollars per share) | $ 1.40 |
Real Estate Investment Properties - Investment Properties (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Real Estate Properties [Line Items] | ||
Investment properties at cost | $ 454,358 | $ 451,855 |
Less accumulated depreciation | (67,628) | (59,191) |
Investment properties, net | 386,730 | 392,664 |
Land and land improvements | ||
Real Estate Properties [Line Items] | ||
Investment properties at cost | 96,752 | 97,117 |
Buildings and improvements | ||
Real Estate Properties [Line Items] | ||
Investment properties at cost | $ 357,606 | $ 354,738 |
Real Estate - Additional Information (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
a
outparcel
|
|
Real Estate Properties [Line Items] | ||
Depreciation | $ | $ 11,072 | $ 11,317 |
Berkley | ||
Real Estate Properties [Line Items] | ||
Area of land | a | 0.75 | |
Rivergate Shopping Center | ||
Real Estate Properties [Line Items] | ||
Number of outparcels | outparcel | 2 |
Real Estate Impairment - Impairment Expenses (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of assets held for sale | $ 2,300 | $ 600 |
Walnut Hill Plaza | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of assets held for sale | 100 | 0 |
Columbia Fire Station | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of assets held for sale | $ 2,200 | $ 600 |
Real Estate - Assets Held for Sale and Associated Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Real Estate Properties [Line Items] | ||
Total assets held for sale | $ 2,047 | $ 13,072 |
Loans payable | 3,381 | 13,124 |
Held-for-sale, Not Discontinued Operations | ||
Real Estate Properties [Line Items] | ||
Investment properties, net | 1,824 | 12,593 |
Rents and other tenant receivables, net | 18 | 132 |
Above market leases, net | 0 | 153 |
Deferred costs and other assets, net | 205 | 194 |
Total assets held for sale | 2,047 | 13,072 |
Loans payable | 3,145 | 12,838 |
Below market leases, net | 0 | 25 |
Accounts payable, accrued expenses and other liabilities | 236 | 261 |
Total liabilities associated with assets held for sale | $ 3,381 | $ 13,124 |
Deferred Costs and Other Assets, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | $ 11,973 | $ 15,430 |
Lease origination costs, net | 1,474 | 1,334 |
Tenant relationships, net | 853 | 1,308 |
Other | 446 | 592 |
Leases in place, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | 7,519 | 10,233 |
Ground lease sandwich interest, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | 1,667 | 1,941 |
Legal & marketing costs, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | $ 14 | $ 22 |
Deferred Costs Additional Details (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Finite-lived intangible assets, accumulated amortization | $ 62,940 | $ 60,330 |
Amortization of intangible assets | $ 3,730 | $ 5,970 |
Deferred Costs Future Amortization Expense (Details) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 2,951 |
2023 | 2,326 |
2024 | 1,708 |
2025 | 1,290 |
2026 | 843 |
Thereafter | 2,409 |
Total | 11,527 |
Leases in place, net | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 2,092 |
2023 | 1,612 |
2024 | 1,111 |
2025 | 794 |
2026 | 422 |
Thereafter | 1,488 |
Total | 7,519 |
Ground lease sandwich interest, net | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 274 |
2023 | 274 |
2024 | 274 |
2025 | 274 |
2026 | 274 |
Thereafter | 297 |
Total | 1,667 |
Lease origination costs, net | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 230 |
2023 | 213 |
2024 | 194 |
2025 | 160 |
2026 | 136 |
Thereafter | 541 |
Total | 1,474 |
Tenant relationships, net | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 349 |
2023 | 222 |
2024 | 126 |
2025 | 62 |
2026 | 11 |
Thereafter | 83 |
Total | 853 |
Legal & marketing costs, net | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 6 |
2023 | 5 |
2024 | 3 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total | $ 14 |
Loans Payable - Scheduled Principal Repayments on Indebtedness (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Disclosure [Abstract] | ||
2022 | $ 13,567 | |
2023 | 89,288 | |
2024 | 50,490 | |
2025 | 92,016 | |
2026 | 23,531 | |
Thereafter | 77,370 | |
Total principal maturities | $ 346,262 | $ 353,916 |
Derivative Liabilities - Changes in fair value of the Company's derivative liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Liability value, beginning balance | $ 594 | $ 0 |
Issuances derivative liability | 5,932 | |
Changes in fair value | (3,768) | |
Liability value, ending balance | 4,776 | 594 |
Powerscourt Financing Agreement | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Issuances derivative liability | $ 594 | |
Wilmington Financing Agreement | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Issuances derivative liability | $ 2,018 |
Rentals under Operating Leases (Details) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Lessor Disclosure [Abstract] | |
2022 | $ 47,232 |
2023 | 43,305 |
2024 | 35,993 |
2025 | 28,701 |
2026 | 20,382 |
Thereafter | 51,921 |
Total minimum rents | $ 227,534 |
Equity and Mezzanine Equity - Changes in Carrying Value of Series D Preferred (Details) - Series D Cumulative Convertible Preferred Stock - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Series D Preferred, Beginning Balance | $ 95,563 | $ 87,225 |
Accretion of Preferred Stock discount | 513 | 590 |
Undeclared dividends | 8,237 | 9,581 |
Paid-in-kind interest, issuance of Preferred Stock | 1,610 | |
Redemption of Preferred Stock | (13,375) | (1,833) |
Series D Preferred, Ending Balance | $ 92,548 | $ 95,563 |
Equity and Mezzanine Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Class of Stock [Line Items] | ||
Arrears | $ 26,160 | |
Series D Cumulative Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Arrears | $ 8,167 | $ 9,488 |
Per Share | $ 2.59 | $ 2.69 |
Equity and Mezzanine Equity - Long Term Incentive Plans (Details) - 2016 Incentive Plan - Common Stock - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 5,000,000 | 0 |
Market Value | $ 14 | $ 0 |
Lease Commitments - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2021 |
|
Lessee, Lease, Description [Line Items] | |||
Weighted-average remaining lease term | 32 years | 32 years | 31 years |
Riversedge North | |||
Lessee, Lease, Description [Line Items] | |||
Debt interest rate | 5.77% | 5.77% | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Riversedge North | |||
Lessee, Lease, Description [Line Items] | |||
Net Proceeds | $ 2,843 | $ 2,843 | |
Lease term | 10 years | ||
Annual base rent | 265 | $ 265 | |
Gain recognized on disposal | 49 | ||
Remaining gain | $ 725 | $ 725 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 5 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 50 years |
Lease Commitments - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 902 | $ 583 |
Leased assets obtained in exchange for new operating lease liabilities | $ 0 | $ 1,285 |
Lease Commitments Undiscounted Cash Flows of Scheduled Obligations Under Operations Leases (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
2022 | $ 905 | |
2023 | 907 | |
2024 | 909 | |
2025 | 913 | |
2026 | 943 | |
Thereafter | 22,843 | |
Total minimum lease payments | 27,420 | |
Discount | (14,380) | |
Operating lease liabilities | 13,040 | $ 13,200 |
Operating lease options to extend | $ 7,540 |
Related Party Transactions - Summary of Related Party Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Wheeler Interests and Affiliates | ||
Related Party Transaction [Line Items] | ||
Amounts paid to affiliates | $ 402 | $ 106 |
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Stilwell Group | ||
Related Party Transaction [Line Items] | ||
Amounts paid to affiliates | $ 369 | $ 70 |
Subsequent Events (Details) - USD ($) $ in Thousands |
Feb. 17, 2022 |
Jan. 11, 2022 |
Dec. 22, 2020 |
Nov. 12, 2020 |
May 20, 2020 |
Jan. 23, 2020 |
Jan. 21, 2020 |
Dec. 21, 2019 |
---|---|---|---|---|---|---|---|---|
KeyBank | Line of Credit | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt periodic payment | $ 3,000 | $ 1,000 | $ 2,500 | $ 5,750 | $ 1,780 | $ 350 | ||
Subsequent Event | KeyBank | Line of Credit | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt periodic payment | $ 1,340 | $ 1,790 | ||||||
Subsequent Event | Walnut Hill Plaza | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash received from disposal of properties-discontinued operations | $ 1,990 |
Schedule II-Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Year | $ 994 | $ 3,293 |
Charged to Costs and Expense | 239 | 1,131 |
Deductions from Reserves | (600) | (3,430) |
Balance at End of Year | $ 633 | $ 994 |
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