SEC Filing ⚠ 9
WHLR: 10-Q · periodic report
Wheeler REIT reported Q2 2026 net income of $9.7 million ($7.1 million attributable to common shareholders) versus a $1.0 million loss a year ago, but the swing was driven mainly by a $7.6 million non-cash derivative fair value gain and $4.9 million of property sale gains. Revenue fell 13.9% year-over-year to $22.5 million, Same-Property NOI declined 6.9% to $15.0 million, and the company booked a $1.6 million impairment on Rivergate Shopping Center in Macon, Georgia.
Dilution remains the defining story: Wheeler has effected nine reverse stock splits since January 2025, including four in 2026 (most recently 1-for-5 on July 27, 2026), with monthly splits authorized through December 2026. Shares outstanding jumped from 167,781 at June 30 to 1,931,568 by August 4 after post-quarter preferred exchanges, up to 100,090,365 shares are registered to settle Series D redemptions, and the convertible notes conversion price was cut to roughly $3.35 per share after quarter-end.
The balance sheet stays strained with $471.7 million of debt principal against just $5.7 million of common equity and $27.1 million of cumulative Series D preferred dividends in arrears. Seven property sales in the first half generated about $22.7 million in contract proceeds, funding a $5.7 million paydown on the June 2022 term loan and full payoff of the $4.4 million Tuckernuck loan.
On litigation, Wheeler agreed to pay up to $0.9 million toward the Aquino class action settlement tied to the 2022 Cedar acquisition, booking a $0.4 million liability that was paid August 3, 2026; final court approval is set for October 8, 2026, and a separate $1.3-$1.4 million indemnification dispute with former Cedar directors remains unresolved.
SEC 10-Q • 2mo ago