Wheeler Real Estate Investment (WHLR) AI Stock Analysis

• Market Cap: $6.16M
• Dividend Yield: N/A
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): ―
• Beta (1Y): -7.87
• Revenue Growth: 0.14%
• EPS Growth: 99.35%
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): -9.45
• Shares Outstanding: 3,108,970
• 10 Day Avg. Volume: 4,992,429
• 30 Day Avg. Volume: 2,716,784
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 94.89
• Enterprise Value/Revenue: 5.68
• Enterprise Value/Gross Profit: 9.25
• Enterprise Value/Ebitda: 11.30
• 1Y Price Target: $3.50
• Price Target Upside: 76.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $3.50 ▲(76.77% Upside)

The overall stock score is primarily influenced by strong operational efficiency and cash flow management, offset by high financial leverage and low profitability. The technical analysis indicates a bearish trend, and the stock's valuation is unappealing due to a zero P/E ratio and no dividend yield. These factors together lead to a moderate risk assessment for the stock.

Positive Factors

Operational Efficiency

High EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting long-term business sustainability.

Cash Flow Management

Strong free cash flow growth highlights effective cash generation, providing financial flexibility and supporting future investments.

Capital Structure Streamlining

Streamlining capital structure by retiring preferred stock can enhance financial flexibility and improve shareholder value over the long term.

Negative Factors

High Financial Leverage

High leverage poses financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns.

Low Profitability

Low net profit margin indicates challenges in converting revenue into profit, which can affect long-term financial health and investor confidence.

Inconsistent Net Income

Inconsistent net income can undermine financial stability, affecting the company's ability to plan and execute long-term strategic initiatives.

Wheeler Real Estate Investment Business Overview & Revenue Model

Company Description

Wheeler Real Estate Investment (WHLR) is a real estate investment trust (REIT) specializing in the acquisition, ownership, and management of retail and commercial properties across the United States. The company focuses on properties that generate stable cash flow through long-term leases with creditworthy tenants. WHLR's portfolio includes shopping centers, grocery-anchored retail spaces, and multi-tenant office buildings, emphasizing a strategic approach to real estate investments that balances risk and returns.

How the Company Makes Money

Wheeler Real Estate Investment generates revenue primarily through rental income from its properties, which are leased to various tenants under long-term agreements. This consistent stream of rental payments provides the bulk of the company's earnings. Additionally, WHLR may earn income through property management fees and, in some cases, from the sale of properties at appreciated values. The company's revenue model is further supported by its focus on acquiring properties in markets with strong demographic trends and economic growth. Strategic partnerships with real estate brokers and developers can also enhance WHLR's access to attractive investment opportunities, contributing to its overall profitability.

Wheeler Real Estate Investment Financial Statement Overview

Summary

Wheeler Real Estate Investment shows strong operational efficiency with high EBIT and EBITDA margins. However, the company faces challenges with high leverage and low net profit margins, which could pose risks to financial stability. Cash flow management is robust, but inconsistent net income impacts overall profitability.

Income Statement

Wheeler Real Estate Investment has shown a stable revenue base with a slight decline in the TTM period. The gross profit margin is strong at 66.05% for TTM, indicating efficient cost management. However, the net profit margin is low at 2.59% for TTM, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are healthy at 40.95% and 65.32% respectively, suggesting good operational efficiency. Despite these strengths, the company has experienced inconsistent net income, impacting overall profitability.

Balance Sheet

The balance sheet of Wheeler Real Estate Investment shows a high debt-to-equity ratio of 9.18 for TTM, indicating significant leverage and potential financial risk. The return on equity is low at 4.97% for TTM, reflecting limited returns for shareholders. The equity ratio stands at 8.59% for TTM, suggesting a low proportion of equity financing. These factors highlight a need for improved financial stability and reduced reliance on debt.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 5.00% for TTM, indicating effective cash generation. The operating cash flow to net income ratio is high at 9.45 for TTM, showing robust cash flow relative to net income. The free cash flow to net income ratio is also strong at 10.22 for TTM, underscoring the company's ability to generate cash beyond its net earnings. These metrics reflect solid cash flow management, despite the challenges in net profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.84M	104.57M	102.33M	76.64M	61.31M	62.13M
Gross Profit	63.15M	69.47M	67.45M	50.91M	41.69M	25.96M
EBITDA	51.70M	55.65M	62.33M	32.47M	38.49M	36.29M
Net Income	2.68M	-9.58M	-4.69M	-12.45M	-9.44M	245.00K
Balance Sheet
Total Assets	625.95M	653.70M	668.33M	684.54M	465.28M	489.38M
Cash, Cash Equivalents and Short-Term Investments	28.07M	42.96M	18.40M	28.49M	22.90M	42.77M
Total Debt	495.93M	503.86M	505.72M	506.48M	349.72M	347.47M
Total Liabilities	534.30M	537.05M	526.80M	531.98M	368.93M	376.97M
Stockholders Equity	53.78M	59.26M	75.41M	86.36M	94.41M	110.48M
Cash Flow
Free Cash Flow	27.14M	25.99M	20.93M	22.25M	10.63M	13.51M
Operating Cash Flow	17.32M	25.99M	20.93M	30.76M	17.04M	15.78M
Investing Cash Flow	38.44M	15.48M	-31.52M	-133.51M	5.10M	2.24M
Financing Cash Flow	-50.50M	-20.56M	-5.47M	118.20M	-24.49M	3.16M

Wheeler Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHLR, the sentiment is Neutral. The current price of 1.98 is above the 20-day moving average (MA) of 1.84, below the 50-day MA of 3.25, and below the 200-day MA of 153.40, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 50.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WHLR.

Wheeler Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBL	72 Outperform	$992.65M	15.35	21.97%	8.73%	2.20%	128.61%
SITC	70 Outperform	$463.09M	1.31	25.89%	5.04%	-57.45%	-20.83%
BFS	65 Neutral	$785.10M	24.45	12.90%	7.32%	5.17%	-25.96%
Sector *	63 Neutral	$7.11B	13.20	-0.32%	6.85%	4.02%	-23.53%
PINE	60 Neutral	$207.70M	157.55	-0.29%	7.74%	17.14%	3.27%
WHLR	52 Neutral	$6.16M	―	8.94%	―	0.14%	99.35%
SRG	51 Neutral	$237.13M	―	-21.22%	―	-30.14%	27.34%

Wheeler Real Estate Investment Corporate Events

Wheeler Real Estate Adjusts Convertible Notes Price

In September 2025, Wheeler Real Estate Investment Trust, Inc. adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031 to approximately $0.98 per share, following the redemption of Series D Cumulative Convertible Preferred Stock at a conversion price of approximately $1.78 per share. This adjustment represents a 45% discount and impacts the company’s financial strategy by increasing the number of common shares issued. During the September 2025 redemption, the company processed eight requests, redeeming 11,551 shares of Series D Preferred Stock and issuing 270,184 shares of common stock. Cumulatively, 1,700,025 shares of Series D Preferred Stock have been redeemed, with 982,000 shares of common stock issued in return, affecting the company’s stock structure.

Wheeler Real Estate Executes Stock Exchange Transactions

On August 27 and 28, 2025, Wheeler Real Estate Investment Trust, Inc. executed transactions involving the exchange of preferred stock for common stock with unaffiliated investors. The company issued a total of 450,000 shares of common stock in exchange for 18,000 shares of Series D and Series B Preferred Stock, without receiving any cash proceeds. These transactions were conducted under the exemption from registration requirements of the Securities Act, and the exchanged preferred stocks have been retired and cancelled.

Wheeler Real Estate Approves Key Proposals at Annual Meeting

On August 18 and 19, 2025, Wheeler Real Estate Investment Trust, Inc. executed transactions involving the issuance of common stock in exchange for preferred stock, resulting in the retirement and cancellation of the preferred shares. These transactions were conducted without cash proceeds and relied on exemptions from the Securities Act of 1933. At the 2025 Annual Meeting of Stockholders held on August 20, 2025, all director nominees were elected, and key proposals, including the ratification of the appointment of an independent accounting firm and multiple authorizations for the Board to effect reverse stock splits of the company’s common stock over various periods, were approved.

Wheeler Real Estate Adjusts Convertible Notes Conversion Price

In August 2025, Wheeler Real Estate Investment Trust, Inc. adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031 to approximately $2.00 per share, representing a 45% discount from the previous conversion rate. This adjustment followed the redemption of 35,981 shares of Series D Preferred Stock, settled through the issuance of 410,202 shares of Common Stock. The company has processed a total of 371 redemption requests to date, issuing approximately 712,000 shares of Common Stock. The next redemption date is set for September 5, 2025, with registered Common Stock to be used for settlement.

Wheeler Real Estate Announces Q2 2025 Financial Results

On August 5, 2025, Wheeler Real Estate Investment Trust, Inc. announced its financial and operating results for the second quarter of 2025, ending June 30, 2025. The company has made these results available through its Quarterly Report on Form 10-Q filed with the SEC and supplemented with additional information on its investor relations website. This release provides stakeholders with updated insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder decisions.

Wheeler Real Estate Streamlines Capital Structure

On July 21, 2025, Wheeler Real Estate Investment Trust, Inc. agreed to issue 120,000 shares of its common stock to an unaffiliated investor in exchange for 15,000 shares each of its Series D and Series B Convertible Preferred Stock. The transaction, settled on July 23, 2025, involved no cash proceeds, and the exchanged preferred shares were retired and cancelled. This strategic move reflects the company’s efforts to streamline its capital structure by retiring preferred stock, potentially impacting its financial flexibility and shareholder value.

Wheeler Real Estate Processes July 2025 Redemptions

Wheeler Real Estate Investment Trust announced that the conversion price for its 7.00% Subordinated Convertible Notes due 2031 remains unchanged at approximately $2.82 per share, following the July 2025 redemptions. During the July 2025 redemption period, the company processed seven requests, redeeming 11,490 shares of Series D Preferred Stock, and issued 65,898 shares of Common Stock in settlement. The company has cumulatively processed 358 redemption requests, redeeming over 1.65 million shares of Series D Preferred Stock, and issued approximately 301,500 shares of Common Stock. The next redemption date is set for August 5, 2025, with a deadline for requests on July 25, 2025.

Wheeler Real Estate’s Convertible Notes Converted to Shares

On June 11, 2025, Stilwell Activist Investments, L.P., Stilwell Activist Fund, L.P., and Stilwell Value Partners VII, L.P. converted portions of Wheeler Real Estate Investment Trust’s 7.00% Subordinated Convertible Notes into shares of common stock, totaling 536,477 shares. This conversion was executed under the terms of the Indenture and relied on an exemption from registration under the Securities Act of 1933, indicating a strategic move by the investors to increase their equity stake without incurring additional costs for the company.