Wheeler Real Estate Investment Trust, Inc. has announced a significant decision regarding its financial operations. Today, the company disclosed that the interest due on December 31, 2024, for its 7.00% Subordinated Convertible Notes due 2031 will be paid in the form of Series D Cumulative Convertible Preferred Stock to note holders who are on record by 5:00 p.m., New York City time, on December 1, 2024.
This strategic move deviates from the traditional cash interest payments and reflects the company's use of stock to manage its debt obligations. The Virginia Beach-based real estate investment trust, incorporated in Maryland, is listed on the Nasdaq Capital Market under the ticker symbol NASDAQ:WHLR.
The decision to pay interest with preferred stock is an event that note holders should be aware of, as it will affect the form of their investment returns. Wheeler REIT, with its principal executive offices located at 2529 Virginia Beach Blvd., Virginia Beach, VA, operates within the real estate sector focusing on commercial properties.
The announcement made by Wheeler REIT today is based on a press release statement and serves as an essential update for investors and stakeholders of the company. This approach to interest payments may indicate the company's financial strategy and position, which is crucial information for market participants.
The trust's CEO and President, M. Andrew Franklin, has signed off on this report in compliance with the Securities Exchange Act of 1934. The information provided in this article is based solely on the facts presented in the SEC filing, offering a clear and unbiased view of the company's latest financial maneuver.
In other recent news, Wheeler Real Estate Investment Trust, Inc. has announced a one-for-two reverse stock split and a decrease in the par value of its common stock. These modifications are part of the company's strategic adjustments to its financial structure. In addition, Wheeler REIT has regained compliance with Nasdaq's minimum publicly held shares requirement, marking the resolution of a previously disclosed deficiency matter.
The company has also been actively managing its stock structure and financial strategy, processing numerous redemptions of its Series D Preferred Stock and issuing common stock in return. Furthermore, Wheeler REIT completed an exchange of equity securities, leading to the retirement and cancellation of certain preferred shares. The company adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031, following the redemption of its Series D Preferred Stock.
Wheeler REIT's S-11 registration statement was approved by the Securities and Exchange Commission, enabling the issuance of over 20 million shares of common stock for the redemption and conversion of its Series D Cumulative Convertible Preferred Stock. In governance news, the company welcomed Rebecca Musser to its Board of Directors.
InvestingPro Insights
Wheeler Real Estate Investment Trust's decision to pay interest with preferred stock aligns with its current financial situation, as revealed by InvestingPro data. The company's market capitalization stands at a modest $5.84 million, reflecting its small-cap status. This move to conserve cash through stock-based interest payments is understandable given the company's recent performance metrics.
InvestingPro Tips highlight that WHLR's stock price has fallen significantly over the last year, with a staggering 93.21% decline. This downward trend is further emphasized by the stock's poor performance across various timeframes, including a 55.96% drop in the past month alone. These figures underscore the challenging market conditions WHLR faces and may explain the company's decision to preserve cash through alternative interest payment methods.
Additionally, the InvestingPro data shows that WHLR is not profitable over the last twelve months, with a negative P/E ratio of -0.11. This financial strain is likely influencing the company's strategic decisions, including the method of interest payment announced today.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for WHLR, providing a deeper understanding of the company's financial health and market position.
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