VIRGINIA BEACH, Va., Feb. 05, 2018 (GLOBE NEWSWIRE) -- Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) ("Wheeler" or the "Company"), a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing retail properties with a primary focus on grocery-anchored centers, today announces an update on the Company's management transition and strategic initiatives.

On behalf of the Company, President and Chief Executive Officer, David Kelly has made the following statement:

"Over the past seven days, the Company has taken a number of steps designed to enhance shareholder value.  This statement is a direct and transparent communication on our progress thus far.

BACKGROUND
On January 29^, 2018, the Board of Directors terminated Jon Wheeler as Chief Executive Officer and President. Concurrently, the Board named me Chief Executive Officer and President and subsequently, Matt Reddy was named Chief Financial Officer, replacing Wilkes Graham.  Over the past week, Matt and I have worked with Andy Franklin, the Company's Senior Vice President of Operations, as well as the entire management team to extensively review the Company and its present operations and financial position.

We have found through a comprehensive review that the Company's existing portfolio and organizational structure confirms our pre-existing belief that our real estate portfolio is solid and performing well. Further, our talented associates are committed and focused on the job at hand – effectively managing and leasing our properties at the highest level.  In fact, it has been business as usual at the property level amidst transitions in the executive suite. I would like to take this opportunity to thank all of our valued associates for their commitment to the Company and their continued dedication.

NEXT STEPS
Strategic Alternatives:  As a result of these recent events, the Board of Directors has begun the process of selecting an independent third-party advisor to assist the Company in identifying and pursuing various options designed to maximize shareholder value. I, and the rest of the management team, wholeheartedly support and invite this process.

Expense Savings:  As the Board runs this process, we have identified additional opportunities to materially reduce operating expenses in addition to the obvious G&A expenses we should save based on recent events. We expect to implement some of these reductions by the end of February and expect these reductions to include, among other things, closing our Charleston office in South Carolina. Our associates in that office will either be relocated to our home office in Virginia Beach or will continue to service the region by working remotely. We do not expect this closure to impact the high level of service we provide to our properties in this region.

Balance Sheet:  Of course, our balance sheet is of paramount concern to all of you, and as such, the Company will immediately place 7 parcels of non-income producing land in Virginia and North Carolina on the market for sale. Simultaneously, our team is working to identify additional stabilized real estate assets for disposition, which we feel will demonstrate the value creation our asset management and leasing teams have realized since acquisition.  The Company expects to utilize the proceeds from these sales to pay off the associated property debt and reduce the Company's existing liabilities.

We continue the process of refinancing several assets encumbered through our KeyBank line of credit.  We appreciate the strong relationship we have with KeyBank, as demonstrated by the recent two-year extension of the credit facility.  The extended facility includes: (i) a borrower option to extend for a third year, (ii) a $2 million increase in the line of credit, and (iii) an accordion feature that could raise the limit to $150 million over time.  We have committed to refinancing $16 million off this line on or before July 1, 2018.

In addition, we continue to work to refinance our $6.9 million of debt with Revere that matures in April 2018. We are confident we will be successful in retiring that debt on or before the maturity date.

Finally, we are anticipating releasing our fourth quarter and year-end results for 2017 and an update on our progress within the next month.  The exact dates have not been determined, but we will provide ample notice once a definitive date has been established.

In closing, I want to thank our investors for their candid and thoughtful recommendations.  We value this input as we are ever conscious that we work for the shareholders, and regaining your trust is the primary driver in our efforts to return value to our investors."

Additional information about Wheeler Real Estate Investment Trust, Inc. can be found at the Company's corporate website: www.whlr.us.

Forward-Looking Statements

CONTACT:
Wheeler Real Estate Investment Trust, Inc.
David Kelly
President and CEO
(757) 627-9088
[email protected]