Larry Raiman's questions to Wheeler Real Estate Investment Trust (WHLR) leadership • Q1 2018
Question
Larry Raiman from LDR questioned how the company will balance its capital strategy, specifically reducing debt through asset sales without diluting earnings, and inquired about plans to lower high overhead costs, which he estimated at 25% of NOI.
Answer
President and CEO Dave Kelly explained that the company is pursuing strategic, not wholesale, asset dispositions, focusing on non-core properties or those with maximized value to minimize cash flow impact. He noted that paying down high-interest debt, like the Revere loan, would actually be accretive to cash flow. Kelly also acknowledged that overhead costs are too high and stated the company is aggressively cutting discretionary spending, such as on ICSC events and advertising, with the financial impact expected to become more apparent in subsequent quarters.