Wheeler Real Estate Investment Trust Reports Q3 2025 Financial Results with Revenue Decline and Net Income Turnaround

Wheeler Real Estate Investment Trust, Inc. (WHLR) reported its financial results for the third quarter of 2025, revealing a total revenue of $23.8 million, a decrease of 3.9% from $24.8 million in the same period last year. The decline in revenue was primarily attributed to a drop in rental revenues and tenant reimbursements, which fell by $1.9 million due to properties sold in 2024 and 2025. However, the company experienced a slight increase in revenues from same-center properties, which contributed positively to the overall figures. The net income for the quarter was $12.98 million, a significant turnaround from a net loss of $30.63 million in the prior year, largely due to a gain on the fair value of derivative liabilities.

In terms of operational performance, WHLR's property operating expenses decreased to $7.8 million from $8.5 million year-over-year, reflecting cost management efforts and the impact of property sales. The company recorded impairment charges of $2.5 million related to its Carll's Corner property, which contributed to a total operating income of $5.49 million, down from $13.89 million in the previous year. The company’s total assets as of September 30, 2025, were reported at $625.2 million, a decrease from $653.7 million at the end of 2024, primarily due to the sale of properties and depreciation.

Strategically, WHLR has been active in managing its capital structure, including the redemption of Series D Preferred Stock. During the nine months ended September 30, 2025, the company processed redemptions for 316,133 shares of Series D Preferred Stock, issuing 194,568 shares of common stock in settlement of approximately $12.8 million in redemption price. The company also engaged in several property dispositions, including the sale of Winslow Plaza and Webster Commons, which generated significant cash inflows used to pay down debt.

The company’s operational metrics indicate a focus on enhancing its portfolio. As of September 30, 2025, WHLR owned and operated 69 properties, including 66 retail shopping centers across various states. The company reported a Same-Property Net Operating Income (NOI) of $15.0 million for the third quarter, reflecting a 3.3% increase from the previous year, driven by improved property revenues despite rising expenses. The company continues to explore opportunities for growth through strategic acquisitions and optimizing its existing asset base.

Looking ahead, WHLR remains cautious about market conditions, particularly regarding inflation and interest rates, which could impact its operations and financial performance. The company plans to maintain a conservative capital structure while pursuing opportunities to enhance liquidity and operational efficiency. The management is committed to navigating the challenges posed by the current economic environment while focusing on long-term growth and stability.