Wheeler Real Estate Investment (WHLR) AI Stock Analysis

• Market Cap: $2.40M
• Dividend Yield: N/A
• Average Volume (3M): 121.66K
• Price to Earnings (P/E): ―
• Beta (1Y): -7.74
• Revenue Growth: -1.01%
• EPS Growth: 504.95%
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 8.25
• Shares Outstanding: 694,858
• 10 Day Avg. Volume: 93,624
• 30 Day Avg. Volume: 121,656
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 0.54
• Enterprise Value/Market Cap: 196.29
• Enterprise Value/Revenue: 4.62
• Enterprise Value/Gross Profit: 6.88
• Enterprise Value/Ebitda: 4.17
• 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: 45 Neutral
• Price Target: $3.50 ▲(36.19% Upside)

The score is held down primarily by high leverage and declining equity despite a TTM rebound in profitability, plus a clearly bearish technical trend (price below all major moving averages and negative MACD). A modest offset comes from improved free cash flow and a positive capital-structure simplification event, while valuation inputs are insufficient to meaningfully improve or reduce the rating.

Positive Factors

Operating cash flow consistency

Consistent positive operating cash flow shows the REIT's rental portfolio generates recurring cash to fund operations, maintenance, and debt service. That durability supports ongoing asset management and reduces near‑term reliance on external financing for strategic actions.

Improving free cash flow

A material improvement to positive free cash flow (~$11.6M TTM) enhances the company's ability to reinvest in redevelopment, service or reduce debt, and absorb tenant turnover. Sustained FCF gives management optionality to fund capex or strategic exchanges without immediate market raises.

Capital structure simplification

Active exchanges that retire preferred shares materially simplify the capital structure, reducing fixed preferred claims and future cash/convertible obligations. This structural change improves long‑term financial flexibility and lowers priority claims on cash flow, despite common share dilution.

Negative Factors

Very high leverage

Debt-to-equity of roughly 6.7–8.3x reflects very high leverage that amplifies refinancing and interest-rate risk. Heavy leverage constrains capital allocation, limits ability to pursue redevelopment or acquisitions, and increases sensitivity to property value declines over the medium term.

Sharp TTM revenue decline

A ~94% TTM revenue decline indicates a substantial loss of recurring rental base or large asset dispositions. Such a drastic drop undermines predictability of cash flow, reduces coverage for fixed charges, and makes sustained deleveraging and portfolio investment more difficult absent revenue stabilization.

Earnings quality concerns

Unusually high TTM margins (above 100%) are inconsistent with historical performance and suggest non‑recurring gains or accounting effects. This weakens confidence in ongoing profitability and cash conversion, raising the risk that reported earnings will revert lower when one‑time items are removed.

Wheeler Real Estate Investment Business Overview & Revenue Model

Company Description

Headquartered in Virginia Beach, Virginia, Wheeler Real Estate Investment Trust, Inc. (Nasdaq: WHLR) is a fully integrated, self-managed commercial real estate investment company focused on owning, leasing and operating income-producing retail properties with a primary focus on grocery-anchored centers. WHLR's portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk adjusted returns. WHLR's common stock, Series B convertible preferred stock ("Series B Preferred Stock" and, together with the Series D Preferred Stock, the "Preferred Stock"), Series D Preferred Stock, and Convertible Notes trade publicly on Nasdaq under the symbols "WHLR", "WHLRP", "WHLRD", and "WHLRL", respectively.

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

TTM profitability and free cash flow improved, but revenue shows a sharp TTM decline and earnings quality looks uneven (atypical >100% margin figures and weaker cash conversion). The largest constraint is the highly leveraged balance sheet with declining equity, which materially raises financial risk.

Income Statement

Revenue has been broadly stable across the annual periods, but TTM (Trailing-Twelve-Months) shows a sharp revenue decline versus the prior period (reported growth of -94%), which raises sustainability questions. Profitability improved meaningfully in TTM with a swing to solid net income after losses in 2021–2024, indicating better bottom-line performance. That said, the very high TTM operating profit and EBITDA margins (above 100%) look atypical versus the annual history and suggest results may be influenced by non-recurring items or accounting effects, adding volatility risk.

Balance Sheet

The balance sheet is highly leveraged: debt-to-equity is ~6.7–8.3x in 2023–TTM, which is elevated and limits financial flexibility. Equity has trended down versus earlier years (from ~110M in 2020 to ~62M in TTM), increasing sensitivity to asset value changes and refinancing conditions. Return on equity improved to strongly positive in TTM after multiple loss years, but the capital structure remains the key weakness.

Cash Flow

Operating cash flow has been consistently positive each year, supporting the underlying cash-generating capacity of the portfolio. Free cash flow improved sharply from 2023 to 2024 and remains positive in TTM (about $11.6M), a constructive trend. However, cash conversion is mixed: in TTM, operating cash flow covers only ~71% of net income and free cash flow is ~57% of net income, implying reported earnings are running ahead of cash generation.

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	492.74M	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	11.62M	3.46M	913.00K	22.25M	10.63M	13.51M
Operating Cash Flow	24.16M	25.99M	20.93M	30.76M	17.04M	15.78M
Investing Cash Flow	24.74M	3.98M	-31.52M	-133.51M	5.10M	2.24M
Financing Cash Flow	-47.02M	-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: 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 2.57 is below the 20-day moving average (MA) of 5.18, below the 50-day MA of 7.48, and below the 200-day MA of 82.62, indicating a bearish trend. The MACD of -1.00 indicates Negative momentum. The RSI at 29.18 is Positive, neither overbought nor oversold. The STOCH value of 5.38 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	$1.13B	9.28	37.88%	6.79%	5.74%	294.33%
BFS	68 Neutral	$779.97M	27.75	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	$250.15M	-50.42	-2.16%	7.01%	14.81%	-245.25%
SITC	55 Neutral	$322.64M	11.38	2.46%	―	-69.63%	-95.99%
SRG	46 Neutral	$184.18M	-2.26	-19.72%	―	-17.76%	44.68%
WHLR	45 Neutral	$2.40M	―	116.25%	―	-1.01%	504.95%

Wheeler Real Estate Investment Corporate Events

Wheeler Real Estate Simplifies Capital Structure via Exchanges

On January 8 and 9, 2026, Wheeler Real Estate Investment Trust, Inc. entered into exchange agreements with three unaffiliated security holders to retire portions of its preferred equity in favor of common stock. In transactions settled on January 12 and 13, 2026, the company issued a total of 175,000 shares of common stock in exchange for 6,250 shares of its Series D Cumulative Convertible Preferred Stock and 12,500 shares of its Series B Convertible Preferred Stock, with the preferred shares subsequently retired and cancelled. The exchanges, conducted at a fixed ratio of 28 common shares for every combined block of two Series B and one Series D preferred share and executed under a registration exemption, allowed Wheeler to simplify its capital structure and reduce outstanding preferred obligations without raising new cash or paying commissions, reshaping the balance between its common and preferred equity for existing stakeholders.

The most recent analyst rating on (WHLR) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.

Wheeler REIT Adjusts Conversion Terms, Processes January Redemptions

In January 2026, Wheeler Real Estate Investment Trust, Inc. further adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031 to approximately $1.16 per share of common stock, after the lowest Series D Cumulative Convertible Preferred Stock conversion price in that month was about $2.11, implying roughly 21.50 common shares for each $25 of note principal. On the 28th monthly Holder Redemption Date on January 5, 2026, the company processed one redemption request for 700 shares of Series D Preferred Stock at a redemption price of about $42.20 per share, settling the aggregate amount through issuance of 13,974 common shares; cumulatively, it has processed 398 redemption requests, redeeming 1,759,881 Series D Preferred shares and issuing approximately 459,000 common shares, leaving 1,909,573 common shares and 1,577,848 Series D Preferred shares outstanding as of January 6, 2026, and setting timelines for the next round of redemptions in late January and early February 2026.

The most recent analyst rating on (WHLR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.

Wheeler Real Estate optimizes equity with share exchanges

Wheeler Real Estate Investment Trust, Inc. announced two transactions in December 2025 involving the issuance of a total of 112,000 shares of common stock in exchange for 9,000 shares of Series D Preferred Stock and 14,000 shares of Series B Preferred Stock previously held by unaffiliated investors. The transactions, settled on December 12 and December 17, respectively, resulted in the retirement and cancellation of the preferred shares without generating cash proceeds, reflecting the company’s focus on optimizing its equity structure without raising additional liabilities.

The most recent analyst rating on (WHLR) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.

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.

The most recent analyst rating on (WHLR) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.

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.

The most recent analyst rating on (WHLR) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.

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.

The most recent analyst rating on (WHLR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.

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.

The most recent analyst rating on (WHLR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.

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.

The most recent analyst rating on (WHLR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wheeler Real Estate Investment stock, see the WHLR Stock Forecast page.