Wheeler Real Estate Investment (WHLR) AI Stock Analysis

• Market Cap: $4.39M
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): ―
• Beta (1Y): -7.46
• Revenue Growth: 1.47%
• EPS Growth: 99.15%
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 51
• Industry: REIT - Retail
• EPS (TTM): -156.90
• Shares Outstanding: 1,280,584
• 10 Day Avg. Volume: 47,647
• 30 Day Avg. Volume: 1,846,872
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.18
• Enterprise Value/Market Cap: 108.85
• Enterprise Value/Revenue: 3.77
• Enterprise Value/Gross Profit: 122.92
• Enterprise Value/Ebitda: 6.39
• 1Y Price Target: $7.50
• Price Target Upside: 119.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $3.50 ▲(2.64%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.

Wheeler Real Estate Investment Business Overview & Revenue Model

Company Description

Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR ) is a fully integrated, self-managed commercial real estate investment company focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers.

How the Company Makes Money

Wheeler Real Estate Investment makes money primarily through rental income generated from its portfolio of retail properties. The company leases space to a variety of tenants, with a focus on grocery-anchored shopping centers, which tend to draw consistent foot traffic and stable income. WHLR's revenue model involves long-term lease agreements, providing predictable cash flow. Additionally, the company may engage in property sales or refinancing as opportunities arise, contributing to its earnings. Significant partnerships with established retail chains and strategic property acquisitions also enhance its revenue potential.

Wheeler Real Estate Investment Financial Statement Overview

Summary

Wheeler Real Estate Investment has strong operational efficiency with healthy EBIT and EBITDA margins. However, high leverage and low net profit margins pose financial risks.

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

Wheeler Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHLR, the sentiment is Negative. The current price of 3.41 is below the 20-day moving average (MA) of 4.89, below the 50-day MA of 5.13, and below the 200-day MA of 515.98, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 29.72 is Positive, neither overbought nor oversold. The STOCH value of 2.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$837.12M	12.58	21.87%	10.25%	0.03%	1997.67%
SITC	67 Neutral	$564.83M	1.04	42.15%	4.13%	-42.71%	152.66%
BFS	64 Neutral	$780.23M	21.86	13.86%	7.32%	5.00%	-14.72%
Sector *	63 Neutral	$6.78B	14.59	-1.87%	7.22%	3.95%	-36.33%
PINE	60 Neutral	$198.92M	157.55	-0.29%	8.04%	17.14%	3.27%
SRG	53 Neutral	$179.68M	―	-33.95%	―	-36.26%	-38.17%
WHLR	52 Neutral	$4.39M	―	4.42%	―	1.47%	99.15%

Wheeler Real Estate Investment Corporate Events

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.

Wheeler Real Estate Adjusts Convertible Notes Conversion Price

Wheeler Real Estate Investment Trust, Inc. announced an adjustment to the conversion price of its 7.00% Subordinated Convertible Notes due 2031, reducing it to approximately $2.82 per share of Common Stock, representing a 45% discount from the previous conversion price. This adjustment follows the June 2025 redemptions of Series D Preferred Stock, where the company processed 1,100 shares for redemption, settling through the issuance of 8,871 shares of Common Stock. Looking ahead to July 2025, the company anticipates potential challenges in meeting redemption requests due to a possible shortage of registered Common Stock, prompting plans to file a new registration statement to cover future redemptions.

Wheeler Real Estate Announces Convertible Notes Interest Strategy

On May 20, 2025, Wheeler Real Estate Investment announced that the interest on its 7.00% Subordinated Convertible Notes due 2031, payable on June 30, 2025, will be issued in the form of Series D Cumulative Convertible Preferred Stock. This decision reflects a strategic financial maneuver that may impact the company’s financial structure and stakeholder interests.

Wheeler Real Estate Announces Reverse Stock Split

On May 21, 2025, Wheeler Real Estate Investment Trust, Inc. announced a one-for-seven reverse stock split of its common stock, effective May 26, 2025. This move, which will not alter the relative ownership percentages or voting rights of shareholders, aims to adjust the trading price of the company’s stock. The reverse stock split will also proportionally adjust the conversion rates of the company’s convertible securities, including its subordinated convertible notes and Series B and D preferred stocks. The company’s trading symbol will remain unchanged, but the CUSIP number will be updated.

Wheeler Real Estate Releases Q1 2025 Financial Results

On May 6, 2025, Wheeler Real Estate Investment Trust, Inc. announced the release of its financial and operating results for the first quarter of 2025, ending March 31, 2025. The company has filed its Quarterly Report on Form 10-Q with the SEC and made supplemental financial information available on its investor relations website. This release provides stakeholders with insights into the company’s financial performance and operational activities during the specified period.

Wheeler Real Estate Adjusts Convertible Notes Price

Wheeler Real Estate Investment Trust, Inc. announced an adjustment to the conversion price of its 7.00% Subordinated Convertible Notes due 2031, reducing it to approximately $0.67 per share of common stock. This adjustment follows the May 2025 redemptions of Series D Preferred Stock, where the company processed 15 redemption requests, issuing 774,572 shares of common stock in settlement. The company faces a potential shortfall in registered common stock for the upcoming June 2025 redemptions and plans to file a new registration statement to address this issue.