Business Context and Reporting Period
Company: Wheeler Real Estate Investment Trust, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: February 5, 2013
Event: Entry into a material definitive agreement to acquire a retail property.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial performance. Consequently, revenue, profit, cash flow, margins, debt, and liquidity metrics for the reporting period are not provided in this document.
- Transaction Value: $10.6 million (cash purchase price).
- Asset Size: 75,000 square feet.
- Lease Term: 20-year triple-net lease.
Material Changes
The registrant's subsidiary, WHLR-Bixby Commons, LLC, entered into a contract to acquire Bixby Commons, a free-standing retail property in Bixby, Oklahoma, from Super Market Developers, Inc. The transaction represents a new asset acquisition pending due diligence and closing.
Outlook, Management Commentary, and Risks
- Closing Timeline: Management expects to close the transaction in the second quarter of 2013, subject to the completion of due diligence.
- Tenant Profile: The property is stabilized by a lease with Associated Wholesale Grocers, Inc., which subleases to Reasor's Foods, an Oklahoma-based grocery chain.
- Risks: The transaction is contingent upon the successful completion of due diligence.
Investor Verification Checklist
- Confirm the successful closing of the transaction in Q2 2013.
- Verify the financial impact of the $10.6 million cash outlay on the company's liquidity.
- Review the terms of the 20-year triple-net lease with Associated Wholesale Grocers, Inc.
- Assess the creditworthiness of the subtenant, Reasor's Foods.