Wheeler Real Estate Investment Trust adjusts note conversion price after September redemptions

Published 08/09/2025, 13:50
Wheeler Real Estate Investment Trust adjusts note conversion price after September redemptions

Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) announced Monday that it has adjusted the conversion price for its 7.00% Subordinated Convertible Notes due 2031 following recent redemptions of its Series D Cumulative Convertible Preferred Stock. The announcement comes as the company, currently valued at $2.87 million, faces significant stock price volatility. According to InvestingPro data, WHLR has experienced a 96.6% decline over the past six months, though analysis suggests the stock may be undervalued at current levels.

According to a statement based on a recent SEC filing, the company processed eight redemption requests on Friday, collectively redeeming 11,551 shares of Series D Preferred Stock at a redemption price of approximately $41.74 per share. The aggregate redemption price was settled through the issuance of 270,184 shares of common stock. Despite recent challenges, InvestingPro data shows the company maintains a current ratio of 1.47, indicating sufficient liquid assets to meet short-term obligations.

Prior to the redemptions, the conversion price for the notes was approximately $2.00 per share of common stock, allowing for about 12.51 shares to be issued for each $25.00 of principal amount converted. Following the September redemptions, the lowest conversion price of Series D Preferred Stock was about $1.78 per share. In accordance with the indenture governing the notes, the conversion price was further adjusted to approximately $0.98 per share, or about 25.47 shares per $25.00 of principal amount converted.

The company reported that, as of Friday, the volume weighted average closing price of its common stock on the Nasdaq Capital Market over the ten trading days preceding the redemption date was approximately $1.78 per share.

To date, Wheeler Real Estate Investment Trust has processed 379 redemption requests, redeeming a total of 1,700,025 shares of Series D Preferred Stock and issuing approximately 982,000 shares of common stock in settlement. As of September 5, 2025, the company had 3,108,970 shares of common stock and 1,715,500 shares of Series D Preferred Stock outstanding. With a gross profit margin of 67% and significant market volatility, investors seeking deeper insights can access 11 additional key metrics and analysis through InvestingPro.

The next deadline for Series D Preferred Stock redemption requests is September 25, 2025, with the following monthly holder redemption date scheduled for October 6, 2025.

All information is based on a press release statement included in the company’s SEC filing.

In other recent news, Wheeler Real Estate Investment Trust has been actively engaging in transactions involving its preferred and common stock. The company reported unregistered sales of equity securities, exchanging preferred stock for common stock. Specifically, Wheeler agreed to issue 175,000 shares of common stock in exchange for 7,000 shares each of its Series D Cumulative Convertible Preferred Stock and Series B Convertible Preferred Stock. This exchange was executed at a rate of twenty-five common shares for each combined share of Series B and Series D preferred stock. Additionally, Wheeler processed seven redemption requests from holders of its Series D Cumulative Convertible Preferred Stock, redeeming a total of 11,490 shares. These redemptions were settled by issuing 65,898 shares of common stock. The redemption price was approximately $41.15 per Series D preferred share, which included accrued but unpaid dividends. These developments reflect Wheeler’s ongoing strategic financial maneuvers involving its equity securities.

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