Wheeler Real Estate Investment Trust, Inc.

For Q2 2021, Cedar reported operating FFO of $8.5 million, or $0.61 per share, and property NOI of $20.8 million. Same-property NOI increased 8.2% year over year excluding redevelopment properties and 10.2% including redevelopment. The company collected 97% of billed rent, executed 40 leases totaling 209,100 square feet, and ended the quarter with leased occupancy of 88.7% and same-property leased occupancy of 90.9%. On the balance sheet, Cedar closed a $114 million non-recourse mortgage loan with Guardian Life, repaid a $50 million term loan, and cut revolver borrowings from $179 million to $12 million. Management said the revolver matures in September and that they are optimistic about refinancing it before maturity, while also discussing potential early refinancing of a $50 million term loan due in 2022.

Bruce Schanzer framed the quarter as evidence that Cedar’s grocery-anchored strategy is working, pointing to resilient tenant demand, robust leasing pipeline, and strong investor appetite for these assets. He emphasized the Camp Hill sale, saying it confirms a disconnect between the company’s share price and underlying real estate value, and said the company will consider further actions to exploit that gap if it persists. His tone was upbeat and assertive, with repeated focus on value creation, capital allocation, and the strength of the board and leasing team.

Philip Mays said Q2 operating FFO was $8.5 million, or $0.61 per share, with property NOI of $20.8 million. He noted $0.2 million of demolition costs at Norwood, and said same-property NOI rose 8.2% year over year excluding redevelopment properties and 10.2% including redevelopment, reflecting recovery from COVID-19 effects. On the balance sheet, he highlighted the $114 million 10-year mortgage at a 65% loan-to-value with 5 years of interest-only payments, plus the reduction of revolver borrowings to $12 million. He also said the company has substitution rights on the mortgaged assets, giving it flexibility to sell individual properties.

Analysts focused on whether leasing momentum and rent spreads would continue improving, and management said deal volume has increased in recent months and should keep rising as retailers expand. When asked about occupancy, Bruce said the headline leased rate is distorted by intentional vacancy and redevelopment work, but he believes the core grocery-anchored portfolio can return to the low-to-mid 90% range. Questions also centered on capital allocation and whether Cedar would do more asset sales like Camp Hill; Bruce said they are reviewing everything, because the stock appears below real estate value, and the situation could justify additional sales or other actions. On financing, Philip said the Guardian Life mortgage was structured to preserve flexibility, including substitution rights.