Wheeler Real Estate Investment (WHLR) AI Stock Analysis

• Market Cap: $2.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): -7.12
• Revenue Growth: 1.47%
• EPS Growth: 99.15%
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Retail
• EPS (TTM): -156.90
• Shares Outstanding: 549,370
• 10 Day Avg. Volume: 574,970
• 30 Day Avg. Volume: 1,069,892
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ―

WHLR's overall score reflects significant financial and technical challenges. The company's high debt levels and persistent profitability issues are major concerns, while the bearish technical indicators suggest continued pressure on the stock price. The unattractive valuation due to negative earnings and lack of dividends further weighs down the score. Improving profitability and reducing leverage are essential for any positive outlook.

Wheeler Real Estate Investment Business Overview & Revenue Model

Company Description

Wheeler Real Estate Investment Trust, Inc. (WHLR) is a real estate investment trust that specializes in acquiring, leasing, and managing retail-focused properties. The company primarily invests in grocery-anchored shopping centers, which are strategically located in secondary and tertiary markets across the United States. WHLR's portfolio is designed to provide stable, long-term cash flow and capital appreciation through a diversified mix of tenants.

How the Company Makes Money

Wheeler Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of retail properties. The company's key revenue streams include base rent, percentage rent, and reimbursement of property operating expenses from tenants. WHLR also benefits from the strategic selection of locations that attract stable, long-term tenants, contributing to consistent occupancy rates and cash flow. Additionally, the company may engage in property acquisitions, dispositions, and refinancing activities to optimize its portfolio and enhance revenue growth.

Wheeler Real Estate Investment Financial Statement Overview

Summary

Wheeler Real Estate Investment shows strong revenue and cash flow growth but faces profitability challenges and high leverage. The income statement indicates positive revenue growth but persistent net losses. The balance sheet highlights a high debt-to-equity ratio and decreasing stockholders' equity, posing financial risks. However, cash flows are robust with increased operating and free cash flow, suggesting efficient cash management.

Income Statement

Wheeler Real Estate Investment has shown a positive revenue growth trend with a year-over-year increase from $102.3 million to $104.6 million. Despite this growth, the company has struggled with profitability, as indicated by a negative net income for consecutive years. Gross profit margin remains healthy at around 66%, but net profit margins are negative, reflecting ongoing challenges in cost management or high interest expenses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to significant total debt compared to the equity base, which poses a financial risk. Stockholders' equity has been decreasing, further exacerbating leverage issues. The company's equity ratio remains low, indicating a heavy reliance on debt financing, which can impact financial stability in adverse market conditions.

Cash Flow

The operating cash flow has been robust, showing an increase to $25.9 million from $20.9 million, signaling efficient cash generation from operations. Free cash flow has improved significantly, but the high debt levels could impact future cash flow flexibility. Positive free cash flow to net income ratio indicates effective cash management despite net losses.

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
	EBIT
37.53M	29.41M	24.60M	19.51M	19.00M
	EBITDA
55.65M	62.33M	32.47M	38.49M	36.29M
	Net Income Common Stockholders
-9.58M	-4.69M	-12.45M	-9.44M	245.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.96M	18.40M	28.49M	22.90M	42.77M
	Total Assets
653.70M	668.33M	684.54M	465.28M	489.38M
	Total Debt
503.86M	505.72M	506.48M	349.72M	347.47M
	Net Debt
460.89M	487.31M	477.98M	326.82M	304.70M
	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: 5.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 5.12 is below the 20-day moving average (MA) of 7.30, below the 50-day MA of 15.66, and below the 200-day MA of 1239.91, indicating a bearish trend. The MACD of -4.02 indicates Negative momentum. The RSI at 26.05 is Positive, neither overbought nor oversold. The STOCH value of 13.72 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	65 Neutral	$752.67M	11.31	21.87%	6.58%	0.03%	1997.67%
BFS	64 Neutral	$806.86M	22.61	13.86%	7.24%	5.00%	-14.72%
SITC	63 Neutral	$629.86M	1.16	42.15%	10.23%	-42.71%	152.66%
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
PINE	59 Neutral	$215.71M	164.17	0.47%	7.52%	14.71%	―
WHLR	49 Neutral	$2.82M	―	4.42%	―	1.47%	99.15%
SRG	43 Neutral	$160.53M	―	-33.95%	―	-36.26%	-38.17%

Wheeler Real Estate Investment Corporate Events

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.

Wheeler Real Estate Releases 2024 Financial Results

Wheeler Real Estate Investment Trust, Inc. announced on March 4, 2025, the release of its financial and operating results for the year ending December 31, 2024. The company has made available its Annual Report on Form 10-K and supplemental information on its investor relations website, providing stakeholders with detailed insights into its performance for the fourth quarter and the full year of 2024.