Wheeler REIT adjusts Series D preferred stock conversion

Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR), a Maryland-based real estate investment trust with a market capitalization of $1.8 million, reported adjustments to the conversion price of its 7.00% Subordinated Convertible Notes due 2031 following the redemptions of its Series D Cumulative Convertible Preferred Stock on Monday. The company’s stock has experienced significant volatility, with InvestingPro data showing a 92% decline over the past six months.

Previously, the conversion price for the notes was set at approximately $8.25 per share of Wheeler’s common stock. However, with the February redemptions, the lowest conversion price of Series D Preferred Stock into common stock was approximately $7.05, prompting an adjustment.

The new conversion price for the notes is now approximately $3.88 per share of common stock, which translates to about 6.44 shares of common stock for each $25.00 of principal amount being converted, representing a 45% discount to the $7.05 figure. According to InvestingPro analysis, the company maintains a current ratio of 1.3, indicating its ability to meet short-term obligations.

On the 17th monthly "Holder Redemption Date," which occurred on Monday, Wheeler processed 19 redemption requests from holders of its Series D Preferred Stock, redeeming a total of 52,091 shares. The redemption price was approximately $40.11 per share, which included accrued but unpaid dividends. In settlement, the company issued 296,182 shares of its common stock.

To date, Wheeler has processed 307 redemption requests, redeeming 1,538,470 shares of Series D Preferred Stock and issuing approximately 881,000 shares of common stock in settlement. As of today, there are 1,166,433 shares of Wheeler’s common stock and 2,069,411 shares of Series D Preferred Stock outstanding.

Looking ahead, the deadline for the next round of Series D Preferred Stock redemptions is set for February 25, 2025, with the subsequent Holder Redemption Date scheduled for March 5, 2025. Holders seeking redemption can find the necessary forms and information on the company’s website.

In other recent news, Wheeler Real Estate Investment Trust, Inc. has made several strategic moves affecting its capital structure. The company announced a one-for-four reverse stock split of its common stock, consolidating outstanding shares and adjusting the par value of its common stock from $0.04 to $0.01 per share.

Additionally, Wheeler REIT conducted an unregistered exchange of equity securities, issuing 1,071,200 shares of its common stock in exchange for 82,400 shares each of its Series D Cumulative Convertible Preferred Stock and Series B Convertible Preferred Stock.

The company also adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031, following the redemptions of the company’s Series D Cumulative Convertible Preferred Stock. The conversion price for the notes was reduced from approximately $4.22 to about $2.06 per share, representing a 45% discount. This adjustment will result in approximately 12.13 shares of common stock being issued for each $25.00 of principal amount of the notes being converted.

In a unique move, Wheeler REIT announced that the interest due on its 7.00% Subordinated Convertible Notes due 2031 will be paid in the form of Series D Cumulative Convertible Preferred Stock, deviating from traditional cash interest payments.

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