Wheeler Real Estate Investment (WHLR) AI Stock Analysis

• Market Cap: $2.12M
• Dividend Yield: N/A
• Average Volume (3M): 181.90K
• Price to Earnings (P/E): ―
• Beta (1Y): -7.11
• Revenue Growth: 1.47%
• EPS Growth: 99.15%
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Retail
• EPS (TTM): -156.90
• Shares Outstanding: 558,209
• 10 Day Avg. Volume: 348,673
• 30 Day Avg. Volume: 181,902
• PEG Ratio: -0.08
• Price to Book (P/B): -14.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.80
• Enterprise Value/Market Cap: 316.82
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 9.87
• Enterprise Value/Ebitda: 3.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $3.50 ▲(2.34%Upside)

The overall score for WHLR is primarily impacted by financial performance, which is moderate due to operational efficiency and strong cash flow management but hindered by high leverage and low profitability. Technical analysis indicates bearish momentum, further weighing down the score. Valuation is weak due to lack of profitability and dividend yield, making the stock less attractive.

Wheeler Real Estate Investment Business Overview & Revenue Model

Company Description

Wheeler Real Estate Investment Trust (WHLR) is a real estate investment trust (REIT) that specializes in owning and operating income-producing retail properties, primarily in the southeastern United States. The company focuses on acquiring and managing shopping centers that are anchored by grocery stores, which typically serve as a consistent customer draw and stable revenue source. WHLR aims to provide attractive returns to its shareholders through its portfolio of strategically located retail properties.

How the Company Makes Money

Wheeler Real Estate Investment Trust generates revenue primarily through the leasing of retail space within its portfolio of shopping centers. The company earns money from rental income paid by tenants, which often includes grocery stores, retail shops, and service providers. Additionally, WHLR may benefit from contractual rent escalations and percentage rents based on tenant sales performance. The company focuses on maintaining high occupancy rates and managing lease agreements to ensure steady income streams. WHLR may also pursue strategic acquisitions and dispositions of properties to optimize its portfolio and enhance revenue potential.

Wheeler Real Estate Investment Financial Statement Overview

Summary

Wheeler Real Estate shows operational efficiency with improving margins and cash flow strength. However, high leverage and low equity base pose financial stability risks, and the net profit margin is low due to past losses.

Income Statement

The company's gross profit margin is healthy, and there is a positive trend in EBIT and EBITDA margins for TTM, indicating operational efficiency. However, the net profit margin is low due to past losses, suggesting challenges in achieving net profitability. Revenue growth is modest, but has shown recovery from previous periods.

Balance Sheet

Wheeler Real Estate Investment has a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. The equity ratio is low, highlighting limited shareholder equity relative to total assets. Return on equity is weak, reflecting the challenge of generating profit for shareholders.

Cash Flow

The company exhibits strong free cash flow growth and a healthy operating cash flow to net income ratio, illustrating effective cash generation despite net losses. Free cash flow coverage of net income is robust, signaling good cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
103.06M	104.57M	102.33M	76.64M	61.31M	62.13M
	Gross Profit
68.07M	69.47M	67.45M	50.91M	41.69M	25.96M
	EBIT
42.20M	37.53M	29.41M	24.60M	19.51M	19.00M
	EBITDA
67.32M	55.65M	62.33M	32.47M	38.49M	36.29M
	Net Income Common Stockholders
2.67M	-9.58M	-4.69M	-12.45M	-9.44M	245.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.23M	42.96M	18.40M	28.49M	22.90M	42.77M
	Total Assets
624.75M	653.70M	668.33M	684.54M	465.28M	489.38M
	Total Debt
492.57M	503.86M	505.72M	506.48M	349.72M	347.47M
	Net Debt
473.34M	460.89M	487.31M	477.98M	326.82M	304.70M
	Total Liabilities
526.64M	537.05M	526.80M	531.98M	368.93M	376.97M
	Stockholders Equity
53.67M	59.26M	75.41M	86.36M	94.41M	110.48M
Cash Flow		Free Cash Flow
27.25M	25.99M	20.93M	22.25M	10.63M	13.51M
	Operating Cash Flow
25.19M	25.99M	20.93M	30.76M	17.04M	15.78M
	Investing Cash Flow
35.84M	15.48M	-31.52M	-133.51M	5.10M	2.24M
	Financing Cash Flow
-52.53M	-20.56M	-5.47M	118.20M	-24.49M	3.16M

Wheeler Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.42
• 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 3.42 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 7.36, and below the 200-day MA of 1082.75, indicating a bearish trend. The MACD of -1.89 indicates Negative momentum. The RSI at 27.74 is Positive, neither overbought nor oversold. The STOCH value of 3.15 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	$763.80M	11.48	21.87%	6.34%	0.03%	1997.67%
SITC	67 Neutral	$603.12M	1.11	42.15%	18.09%	-42.71%	152.66%
BFS	65 Neutral	$837.13M	23.46	13.86%	6.83%	5.00%	-14.72%
Sector *	61 Neutral	$2.83B	10.89	0.41%	9.34%	5.96%	-21.31%
PINE	59 Neutral	$212.29M	161.56	0.47%	7.66%	14.71%	―
WHLR	52 Neutral	$2.12M	―	4.42%	―	1.47%	99.15%
SRG	49 Neutral	$165.03M	―	-33.95%	―	-36.26%	-38.17%

Wheeler Real Estate Investment Corporate Events

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.