Wheeler Real Estate Investment (WHLR) AI Stock Analysis

• Market Cap: $4.73M
• Dividend Yield: N/A
• Average Volume (3M): 121.66K
• Price to Earnings (P/E): ―
• Beta (1Y): -7.70
• Revenue Growth: -1.01%
• EPS Growth: 504.95%
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 2.75
• Shares Outstanding: 1,783,599
• 10 Day Avg. Volume: 93,624
• 30 Day Avg. Volume: 121,656
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.02
• Price to Sales (P/S): 0.00901
• P/FCF Ratio: 0.04
• Enterprise Value/Market Cap: 130.34
• Enterprise Value/Revenue: 6.05
• Enterprise Value/Gross Profit: 9.00
• Enterprise Value/Ebitda: 5.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $6.50 ▲(152.92% Upside)

Wheeler Real Estate Investment's overall score is driven by strong operational efficiency and positive corporate restructuring efforts. However, significant financial risks due to high leverage and low profitability, combined with bearish technical indicators and valuation concerns, weigh heavily on the stock's attractiveness.

Positive Factors

Operational Efficiency

Wheeler's robust EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting long-term profitability.

Cash Flow Management

Effective cash generation and management enhance financial stability, providing resources for reinvestment and debt reduction.

Capital Structure Optimization

Streamlining the capital structure can improve financial flexibility and reduce complexity, aiding long-term strategic initiatives.

Negative Factors

High Leverage

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

Low Profitability

Low net profit margins indicate challenges in converting revenue into profit, which can hinder long-term financial health and growth potential.

Equity Financing Concerns

A low equity ratio suggests heavy reliance on debt financing, which can increase financial vulnerability and limit strategic options.

Wheeler Real Estate Investment Business Overview & Revenue Model

Company Description

Wheeler Real Estate Investment (WHLR) is a real estate investment trust (REIT) that specializes in the acquisition, redevelopment, and management of retail and mixed-use properties. The company focuses on properties located in strategically chosen markets across the United States, aiming to create value through active asset management and strategic leasing. WHLR’s portfolio includes a diverse range of properties that cater to both national and local tenants, ensuring a steady income stream and growth potential.

How the Company Makes Money

Wheeler Real Estate Investment generates revenue primarily through leasing its retail and mixed-use properties to tenants, which provides consistent rental income. The company may also earn additional revenue through property management fees, redevelopment profits from improving properties, and potential sales of appreciated assets. Key revenue streams include long-term leases with stable tenants, short-term leases that can adjust to market rates, and income from ancillary services such as parking or advertising. Strategic partnerships with local businesses and national chains help maintain high occupancy rates and enhance the portfolio's overall value, contributing significantly to WHLR's earnings.

Wheeler Real Estate Investment Financial Statement Overview

Summary

Wheeler Real Estate Investment shows strong operational efficiency and cash flow management with healthy EBIT and EBITDA margins. However, high leverage and low net profit margins pose risks to financial stability, necessitating improved profitability and reduced debt reliance.

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	101.87M	104.57M	102.33M	76.64M	61.31M	60.83M
Gross Profit	68.43M	69.47M	67.45M	50.91M	41.69M	41.94M
EBITDA	112.94M	55.65M	62.33M	32.47M	38.49M	35.83M
Net Income	50.12M	-9.58M	-4.69M	-12.45M	-9.44M	245.00K
Balance Sheet
Total Assets	625.17M	653.70M	668.33M	684.54M	465.28M	489.38M
Cash, Cash Equivalents and Short-Term Investments	27.09M	42.96M	18.40M	28.49M	22.90M	7.66M
Total Debt	496.99M	503.86M	505.72M	506.48M	349.72M	347.47M
Total Liabilities	531.29M	537.05M	526.80M	531.98M	368.93M	376.97M
Stockholders Equity	62.06M	59.26M	75.41M	86.36M	94.41M	110.48M
Cash Flow
Free Cash Flow	10.65M	3.46M	913.00K	22.25M	10.63M	13.51M
Operating Cash Flow	18.72M	25.99M	20.93M	30.76M	17.04M	15.78M
Investing Cash Flow	39.26M	3.98M	-31.52M	-133.51M	5.10M	2.24M
Financing Cash Flow	-54.93M	-9.06M	-5.47M	118.20M	-24.49M	3.16M

Wheeler Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 2.57 is below the 20-day moving average (MA) of 3.53, below the 50-day MA of 4.93, and below the 200-day MA of 70.45, indicating a bearish trend. The MACD of -0.71 indicates Negative momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 4.36 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	73 Outperform	$1.16B	9.53	37.88%	6.63%	5.74%	294.33%
BFS	68 Neutral	$783.64M	27.88	11.88%	7.89%	5.75%	-37.69%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PINE	59 Neutral	$238.96M	-46.85	-2.16%	6.76%	14.81%	-245.25%
WHLR	56 Neutral	$4.73M	―	116.25%	―	-1.01%	504.95%
SITC	55 Neutral	$335.76M	11.49	2.46%	―	-69.63%	-95.99%
SRG	46 Neutral	$184.74M	-2.32	-19.72%	―	-17.76%	44.68%

Wheeler Real Estate Investment Corporate Events

Wheeler Real Estate Executes Stock Exchange Transactions

On December 5 and 8, 2025, Wheeler Real Estate Investment Trust, Inc. executed transactions involving the exchange of preferred stock for common stock with unaffiliated investors, resulting in the issuance of 880,200 shares of common stock. These transactions were conducted without cash proceeds, and the exchanged preferred shares were retired and cancelled. Additionally, the company adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031 to $1.90 per share, reflecting a significant discount. The company also processed multiple redemption requests for its Series D Preferred Stock, issuing 157,093 shares of common stock as settlement, and announced upcoming redemption deadlines.

Wheeler Completes Stock Exchange with Preferred Shares

On December 1, 2025, Wheeler Real Estate Investment Trust, Inc. completed a stock exchange transaction, issuing 56,000 shares of its common stock to an unaffiliated investor in exchange for 4,000 shares of Series D Cumulative Convertible Preferred Stock and 8,000 shares of Series B Convertible Preferred Stock. This transaction, settled by December 2, 2025, involved no cash proceeds, and the exchanged preferred shares were retired and cancelled, potentially impacting the company’s equity structure and market positioning.

Wheeler Real Estate Issues Preferred Stock for Interest

On November 20, 2025, Wheeler Real Estate Investment announced that the interest on its 7.00% Subordinated Convertible Notes due 2031, payable on December 31, 2025, will be issued in the form of Series D Cumulative Convertible Preferred Stock. This decision reflects the company’s strategic financial management and may impact stakeholders by altering the form of returns they receive.

Wheeler Real Estate Releases Q3 2025 Financial Results

On November 6, 2025, Wheeler Real Estate Investment Trust, Inc. announced the release of its financial and operating results for the third quarter of 2025. The results, covering the three and nine months ended September 30, 2025, were filed with the SEC in a Quarterly Report on Form 10-Q and are available on the company’s investor relations website. This release provides stakeholders with updated insights into the company’s financial performance and operational status.

Wheeler Real Estate Adjusts Convertible Notes Price

On November 5, 2025, Wheeler Real Estate Investment Trust, Inc. adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031 to approximately $1.74 per share, a 45% discount from the previous conversion price. This adjustment follows the redemption of Series D Preferred Stock, where 11,425 shares were redeemed at a price of approximately $42.34 per share, settled by issuing 152,703 shares of common stock. The company has processed 394 redemption requests to date, redeeming 1,746,481 shares of Series D Preferred Stock, and issued approximately 575,000 shares of common stock in total. The next redemption date is set for December 5, 2025.

Wheeler Real Estate Optimizes Capital with Stock Exchange

On October 15, 2025, Wheeler Real Estate Investment Trust, Inc. agreed to issue 55,000 shares of its common stock to an unaffiliated investor in exchange for 5,000 shares of Series D Cumulative Convertible Preferred Stock and 10,000 shares of Series B Convertible Preferred Stock. The transaction, settled on October 16, 2025, did not involve any cash proceeds, and the exchanged preferred stock shares were retired and cancelled. This strategic move was executed under an exemption from the registration requirements of the Securities Act of 1933, indicating a focus on optimizing the company’s capital structure without incurring additional costs.

Wheeler Real Estate Adjusts Convertible Notes Price

In October 2025, Wheeler Real Estate Investment Trust, Inc. adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031 to approximately $3.59 per share of common stock, reflecting a 45% discount from the previous conversion rate. This adjustment followed the redemption of 35,031 shares of Series D Preferred Stock, which were converted into 225,970 shares of common stock. The company has processed a total of 389 redemption requests, redeeming 1,735,056 shares of Series D Preferred Stock, and issued approximately 422,000 shares of common stock in settlement. The next redemption date is set for November 5, 2025.

Wheeler Real Estate Streamlines Capital Structure

On September 16, 2025, Wheeler Real Estate Investment Trust, Inc. agreed to issue 253,000 shares of its common stock to two unaffiliated investors in exchange for a total of 33,000 shares of its Series B and Series D Preferred Stock. The transactions, settled on September 16 and 17, 2025, did not involve any cash proceeds, and the exchanged preferred shares have been retired and cancelled. This strategic move, executed under the exemption from the registration requirements of the Securities Act of 1933, aims to streamline the company’s capital structure and potentially improve its financial flexibility.

Wheeler Real Estate Executes Stock Exchange Transactions

On September 9 and 11, 2025, Wheeler Real Estate Investment Trust, Inc. executed transactions involving the exchange of its preferred stock for common stock with two unaffiliated investors. The company issued a total of 1,373,000 shares of common stock in exchange for 56,600 shares of Series D and 113,200 shares of Series B Preferred Stock, which were subsequently retired and cancelled. These transactions were conducted without cash proceeds and relied on a securities registration exemption.