Wheeler Real Estate Investment Trust, Inc. (WHLR): Business Model Canvas [11-2024 Updated]

Wheeler Real Estate Investment Trust, Inc. (WHLR) has carved a niche in the competitive world of real estate through its strategic focus on grocery-anchored retail centers. This business model canvas outlines the essential components that drive WHLR's operations, highlighting its key partnerships, activities, and value propositions. Discover how WHLR utilizes its resources and customer relationships to create sustainable income and foster community engagement.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Key Partnerships

Relationships with local and regional retailers

Wheeler Real Estate Investment Trust, Inc. (WHLR) maintains strategic partnerships with various local and regional retailers. These relationships are crucial for ensuring high occupancy rates at its retail properties. As of September 30, 2024, WHLR reported total rental revenues of $76.9 million, with a significant portion derived from its retail tenants. The company focuses on leasing to essential retailers, which has proven resilient even in economic downturns.

Collaborations with real estate brokers and agents

WHLR collaborates with numerous real estate brokers and agents to enhance its market reach and facilitate property acquisitions and disposals. The company reported transaction fees of approximately $315,000 for the nine months ended September 30, 2024. This collaboration is essential for identifying potential investment opportunities and maximizing property value through effective leasing strategies.

Partnerships with financial institutions for funding

Wheeler REIT has established partnerships with various financial institutions to secure funding for its operations and growth initiatives. As of September 30, 2024, the company had total interest expense of $24.0 million, with a significant portion attributed to property debt interest. Notably, WHLR entered into a term loan agreement on June 28, 2024, with Guggenheim Real Estate, LLC for $25.5 million, with a fixed interest rate of 6.80%. These financial partnerships provide the necessary capital for acquisitions and developments, supporting WHLR’s expansion strategy.

Agreements with property management firms

WHLR collaborates with property management firms to ensure the effective management of its real estate portfolio. The company’s property operating expenses for the nine months ended September 30, 2024, amounted to $26.2 million. Property management firms play a vital role in maintaining the quality of the properties and enhancing tenant satisfaction, which ultimately contributes to the company’s revenue stability.

Partnership Type	Details	Financial Impact (as of 2024)
Local and Regional Retailers	High occupancy rates through essential retail leasing	$76.9 million rental revenue
Real Estate Brokers and Agents	Facilitating property transactions and market reach	$315,000 transaction fees
Financial Institutions	Secured funding for acquisitions and operations	$24.0 million total interest expense; $25.5 million loan agreement
Property Management Firms	Ensuring effective management and tenant satisfaction	$26.2 million property operating expenses

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Key Activities

Acquiring and managing retail properties

Wheeler Real Estate Investment Trust, Inc. (WHLR) focuses on acquiring retail properties, primarily shopping centers. As of September 30, 2024, the company owned and operated seventy-three retail shopping centers and two undeveloped properties across various states, including South Carolina, Georgia, Virginia, Pennsylvania, North Carolina, New Jersey, Massachusetts, Florida, Connecticut, Kentucky, Tennessee, Alabama, Maryland, and West Virginia. The total carrying value of the investment properties as of September 30, 2024, was approximately $500.3 million.

Leasing and tenant management

Wheeler REIT generates revenue through rental income from its tenants. For the nine months ended September 30, 2024, the total rental revenue was $75.9 million, with base rent contributing $55.4 million and tenant reimbursements adding $17.1 million. The company actively manages tenant relationships, which includes handling leasing agreements and ensuring timely payments. As of September 30, 2024, the allowance for uncollectible tenant receivables was $1.1 million.

Conducting market research for property valuation

Market research is essential for WHLR's property valuation and acquisition strategies. The company regularly assesses market conditions to determine appropriate pricing for leasing and purchasing properties. This includes analyzing local demographics, competition, and retail trends. The impairment charges recorded for the nine months ended September 30, 2024, amounted to $1.2 million, reflecting adjustments in property valuations based on market conditions.

Implementing property renovations and improvements

WHLR invests in property renovations to enhance the value and appeal of its retail centers. For the nine months ended September 30, 2024, expenditures for real estate improvements totaled approximately $18.7 million. The renovations are aimed at attracting new tenants and retaining existing ones by providing modern and appealing retail spaces. The company frequently evaluates the performance of its properties and implements improvements based on tenant feedback and market demands.

Activity	Details	Financial Impact
Acquiring Properties	Seventy-three retail centers owned	$500.3 million total carrying value
Leasing Management	Base rent and tenant reimbursements	$75.9 million rental revenue
Market Research	Regular assessments for property valuations	$1.2 million impairment charges
Property Renovations	Investments in property improvements	$18.7 million expenditures

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Key Resources

Portfolio of retail shopping centers

The portfolio of Wheeler Real Estate Investment Trust, Inc. (WHLR) consists of several retail shopping centers strategically located in various markets. As of September 30, 2024, the company reported total assets of approximately $515.8 million, with significant investments in real estate properties. The investment properties are valued at $470.1 million and are primarily composed of retail spaces, which generate steady rental income.

Experienced management team

WHLR's management team possesses extensive experience in the real estate investment sector. The team has a proven track record in managing retail properties and optimizing asset performance. Key executives include:

• Shahriar A. M. Shams, President and CEO
• William B. McLain, Chief Financial Officer
• Robert A. L. Johnson, Chief Operating Officer

This experienced leadership is crucial for navigating market challenges and enhancing shareholder value.

Access to capital markets for financing

Wheeler REIT has maintained robust access to capital markets, which is essential for financing its operations and growth initiatives. As of September 30, 2024, the company had approximately $500.3 million in scheduled principal repayments and debt maturities. The firm’s debt structure includes:

Debt Type	Amount (in millions)	Interest Rate	Maturity Date
Term Loans	$470.1	6.80%	July 10, 2034
Convertible Notes	$183.4	7.00%	January 17, 2024

The company has also engaged in various financing activities, including issuing common stock and preferred stock to raise capital, demonstrating its ability to leverage financial markets effectively.

Real estate technology for property management

WHLR utilizes advanced real estate technology to enhance property management efficiency. This includes software for lease management, tenant communications, and maintenance tracking. The integration of technology has improved operational efficiency, resulting in reduced costs and enhanced tenant satisfaction. The company reported a net operating income (NOI) of $45.9 million for the nine months ended September 30, 2024, reflecting a 5.2% increase year-over-year, largely attributed to these technological advancements.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Value Propositions

Focus on grocery-anchored retail centers

Wheeler Real Estate Investment Trust, Inc. specializes in owning and managing grocery-anchored retail centers. As of September 30, 2024, the company operated 73 retail shopping centers across multiple states, including South Carolina, Georgia, Virginia, Pennsylvania, North Carolina, New Jersey, Massachusetts, Florida, Connecticut, Kentucky, Tennessee, Alabama, Maryland, and West Virginia . These grocery-anchored centers are strategically positioned to cater to essential consumer needs, ensuring consistent foot traffic and stable rental income.

Diverse portfolio reducing market risk

The company's diverse portfolio is a crucial element of its risk management strategy. As of the end of Q3 2024, Wheeler REIT's properties had a total fair value of approximately $470.1 million. This diversification across various geographic regions and property types helps mitigate the risks associated with economic downturns or shifts in consumer behavior. Additionally, the company reported a total of $76.98 million in revenues for the nine months ended September 30, 2024, reflecting a stable income stream despite market fluctuations .

Strong tenant relationships enhancing stability

Wheeler REIT has established strong relationships with its tenants, which enhances its operational stability. The company reported an increase in tenant reimbursements of $1.7 million for the nine months ended September 30, 2024 . Furthermore, the company has a tenant retention strategy that focuses on maintaining long-term leases, thus ensuring consistent cash flow and minimizing vacancy rates. As of September 30, 2024, the weighted average remaining lease term for its properties was approximately 36 years.

Commitment to sustainable property management

Wheeler REIT is committed to sustainable property management practices, which not only reduce operational costs but also appeal to environmentally conscious consumers and tenants. The company's sustainability initiatives include energy-efficient upgrades and environmentally friendly building practices. For example, the company has invested in energy-efficient systems across its properties, contributing to lower operating expenses, which totaled $54.05 million for the nine months ended September 30, 2024 .

Metric	Value
Total Retail Centers Operated	73
Total Fair Value of Properties	$470.1 million
Total Revenues (9 months ended Sept 30, 2024)	$76.98 million
Tenant Reimbursements Increase	$1.7 million
Weighted Average Remaining Lease Term	36 years
Total Operating Expenses (9 months ended Sept 30, 2024)	$54.05 million

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Customer Relationships

Direct communication with tenants for feedback

Wheeler Real Estate Investment Trust, Inc. (WHLR) prioritizes direct communication with tenants to gather feedback. As of September 30, 2024, the company had a total of 73 retail shopping centers in operation, providing a significant tenant base for feedback collection. The allowance for uncollectible tenant receivables was $1.1 million, reflecting the company's emphasis on maintaining healthy tenant relationships and addressing concerns promptly.

Regular updates on property improvements

WHLR maintains transparency by providing regular updates to tenants regarding property improvements. The company reported a total revenue of $76.981 million for the nine months ended September 30, 2024, which included an increase in tenant reimbursements of $1.7 million and an increase in base rent of $0.9 million. These updates not only keep tenants informed but also reinforce the company's commitment to enhancing their living and shopping environments.

Tenant engagement programs to foster loyalty

To foster tenant loyalty, WHLR implements various engagement programs. For instance, the company has seen a notable increase in tenant reimbursements, which reached $17.149 million in the nine months ended September 30, 2024. These programs are designed to create a sense of community and ensure tenant satisfaction, contributing to lower vacancy rates across their properties.

Responsive customer service for tenant inquiries

WHLR emphasizes responsive customer service for tenant inquiries, ensuring that concerns are addressed in a timely manner. The company’s corporate general and administrative expenses were reduced to $7.488 million for the nine months ended September 30, 2024, down from $8.364 million in the previous year, indicating an efficient operation that likely supports enhanced customer service.

Metric	Value (2024)	Value (2023)	Change
Total Revenue	$76.981 million	$76.110 million	+1.1%
Tenant Reimbursements	$17.149 million	$15.467 million	+10.8%
Base Rent	$55.364 million	$54.316 million	+1.9%
Allowance for Uncollectible Receivables	$1.1 million	$0.9 million	+22.2%
Corporate General & Administrative Expenses	$7.488 million	$8.364 million	-10.4%

This table encapsulates key financial metrics relevant to WHLR's customer relationships, showcasing their operational efficiency and commitment to tenant engagement.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Channels

Company website for property listings and updates

The company’s website serves as a primary channel for showcasing property listings and providing updates to potential tenants and investors. As of September 30, 2024, Wheeler Real Estate Investment Trust reported total assets of $673.2 million, showcasing its extensive portfolio of properties available for lease.

Real estate platforms for market visibility

Wheeler Real Estate Investment Trust utilizes various real estate platforms to enhance market visibility. The rental revenues for the nine months ended September 30, 2024, amounted to $75.9 million, reflecting the effectiveness of these platforms in attracting tenants.

Networking events to connect with potential tenants

Networking events play a crucial role in establishing connections with potential tenants. The company renewed leases totaling 782,678 square feet during the nine months ended September 30, 2024, which included 121 leases renewed with a rate increase.

Social media for brand awareness and engagement

Social media channels are leveraged for brand awareness and tenant engagement. As of the latest reporting, WHLR had accumulated undeclared dividends of $35.2 million on its Series D Preferred Stock, indicating the company’s ongoing financial commitments and its need to maintain visibility and engagement with its stakeholders.

Channel	Description	Key Metrics
Company Website	Primary source for property listings and updates	Total Assets: $673.2 million
Real Estate Platforms	Increase market visibility and attract tenants	Rental Revenues: $75.9 million
Networking Events	Connect with potential tenants	Leases Renewed: 782,678 sq ft
Social Media	Brand awareness and stakeholder engagement	Undeclared Dividends: $35.2 million

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Customer Segments

Retail tenants seeking space in grocery-anchored centers

Wheeler Real Estate Investment Trust, Inc. focuses on leasing spaces primarily to retail tenants in grocery-anchored shopping centers. The company's portfolio includes properties like the Cypress Shopping Center and Chesapeake Square, which cater to diverse retail needs. As of September 30, 2024, the total rental revenues amounted to $76.98 million, with grocery-anchored centers contributing significantly to this revenue stream.

Investors looking for stable income from REITs

Wheeler REIT appeals to a wide range of investors, particularly those seeking stable income through Real Estate Investment Trusts (REITs). The company offers attractive dividend yields, which have historically been appealing to income-focused investors. As of September 30, 2024, the company reported a total stockholder's deficit of $67.95 million, reflecting the challenges in maintaining consistent dividends amidst operational losses.

Local communities benefiting from retail accessibility

Local communities are a vital customer segment for Wheeler REIT, as the company aims to enhance retail accessibility in underserved areas. The presence of grocery-anchored centers provides essential services to local residents, driving foot traffic and supporting local economies. The properties owned by Wheeler REIT, such as the Tri-County Plaza, are strategically located to meet the needs of these communities.

Institutional investors interested in diversified portfolios

Institutional investors form another key segment for Wheeler REIT, as they look for diversification in their investment portfolios. The company's focus on grocery-anchored retail properties provides a unique value proposition, as these types of assets are generally seen as resilient during economic downturns. As of September 30, 2024, the fair value of the company's fixed-rate secured term loans was $470.1 million, indicating substantial leverage that institutional investors often assess when evaluating investment risks.

Customer Segment	Characteristics	Financial Data
Retail Tenants	Seeking space in grocery-anchored centers	Rental revenues: $76.98 million (2024)
Investors	Looking for stable income from REITs	Stockholder's deficit: $67.95 million (2024)
Local Communities	Benefiting from retail accessibility	Properties enhancing local services
Institutional Investors	Interested in diversified portfolios	Fair value of loans: $470.1 million (2024)

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Cost Structure

Operating expenses for property management

The total operating expenses for property management for the nine months ended September 30, 2024, were approximately $26.158 million, compared to $26.068 million for the same period in 2023. This includes costs related to insurance, grounds and landscaping, and other property-related expenses.

Maintenance and renovation costs for properties

Expenditures for real estate improvements during the nine months ended September 30, 2024, amounted to approximately $18.658 million, compared to $11.618 million in the same period of the previous year.

Year	Maintenance Costs	Renovation Costs
2024	$18.658 million	$11.618 million
2023	$14.0 million	$13.6 million

Administrative expenses including salaries and legal fees

Corporate general and administrative expenses for the nine months ended September 30, 2024, were approximately $7.488 million, down from $8.364 million in the same period of 2023, primarily due to a decrease in legal fees and salaries.

Interest expenses on debts and financing

The total interest expense for the nine months ended September 30, 2024, was $24.034 million, which is a slight decrease from $24.125 million during the same period in 2023. The breakdown of interest expenses includes:

• Property debt interest (excluding Cedar debt): $12.715 million
• Convertible Notes interest: $2.572 million
• Defeasance paid: $368,000
• Amortization of deferred financing costs: $2.157 million
• Property debt interest (Cedar): $6.222 million

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Business Model: Revenue Streams

Rental income from leased properties

As of September 30, 2024, Wheeler Real Estate Investment Trust reported rental revenues of $24.336 million for the three months ended, compared to $24.655 million for the same period in 2023. For the nine months ended September 30, 2024, total rental revenues amounted to $75.925 million, up from $74.738 million in the prior year.

Tenant reimbursements for operating expenses

During the nine months of 2024, the Company recognized an increase in tenant reimbursements amounting to $1.7 million, contributing positively to revenue streams. The total property operating expenses reported for the nine months ended September 30, 2024, were $26.158 million.

Gains from property sales and disposals

Wheeler Real Estate Investment Trust recorded significant gains from property disposals, totaling $9.966 million for the nine months ended September 30, 2024, compared to $2.204 million for the same period in 2023. The detailed breakdown of property disposals for 2024 includes:

Property	Contract Price	Gain (Loss)	Net Proceeds
Kings Plaza	$14,200	$6,509	$13,746
Edenton Commons Land Parcel	$1,400	$574	$1,312
Oakland Commons	$6,000	$3,363	$5,662
Harbor Point Land Parcel	N/A	($480)	N/A
Carll's Corner Outparcel	$3,000	$2,204	$2,759

Investment income from securities and other assets

For the nine months ended September 30, 2024, Wheeler Real Estate Investment Trust reported $256,000 in interest income from investments. Additionally, the net gain on investment securities reached $779,000, a substantial increase from $80,000 in the previous year.

Updated on 16 Nov 2024

Resources:

1. Wheeler Real Estate Investment Trust, Inc. (WHLR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Wheeler Real Estate Investment Trust, Inc. (WHLR)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Wheeler Real Estate Investment Trust, Inc. (WHLR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.