Wheeler Real Estate Investment Trust, Inc., a Maryland-based real estate investment trust, announced on Wednesday that it has regained compliance with Nasdaq's minimum publicly held shares requirement. The company, which trades under the ticker symbol WHLR on the Nasdaq Capital Market, received a notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC confirming its compliance.
The notification, dated November 13, 2024, was based on the company's disclosure in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. Wheeler REIT had reported that as of November 6, 2024, it had 1,200,110 Publicly Held Shares outstanding. This figure meets the threshold set by Nasdaq Listing Rule 5550(a)(4), which mandates a minimum number of shares to be publicly held for continued listing on the exchange.
This development marks the resolution of a deficiency matter that Wheeler REIT previously disclosed on July 1, 2024. At that time, the company was out of compliance with the Nasdaq rule. The company's efforts to address the shortfall have now brought it back into good standing with the exchange's requirements.
Wheeler REIT's securities, including its common stock, Series B Convertible Preferred Stock, Series D Cumulative Convertible Preferred Stock, and 7.00% Subordinated Convertible Notes due 2031, continue to be listed and traded on the Nasdaq Capital Market.
The company's Chief Executive Officer and President, M. Andrew Franklin, signed off on the 8-K filing on Thursday, November 14, 2024, as required by the Securities Exchange Act of 1934. The filing with the Securities and Exchange Commission ensures transparency and provides investors with the latest information regarding the company's regulatory compliance status.
In other recent news, Wheeler Real Estate Investment Trust, Inc. has been actively managing its stock structure and financial strategy. The company recently processed 15 redemptions of its Series D Preferred Stock, resulting in the redemption of 74,740 shares. To settle the aggregate redemption price, Wheeler REIT issued 303,366 shares of its common stock. This is part of the company's ongoing efforts to manage its preferred stock portfolio, with 244 redemption requests processed to date.
Wheeler REIT also completed an exchange of equity securities, issuing 88,000 shares of common stock for 22,000 shares each of Series D Cumulative Convertible Preferred Stock and Series B Convertible Preferred Stock. This led to the retirement and cancellation of the preferred shares involved in the transaction. Furthermore, the company adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031, following the redemption of its Series D Preferred Stock.
Additionally, the company's S-11 registration statement has been approved by the Securities and Exchange Commission, allowing for the issuance of over 20 million shares of common stock for the redemption and conversion of its Series D Cumulative Convertible Preferred Stock. Wheeler REIT has also welcomed Rebecca Musser to its Board of Directors, enhancing its governance structure. These are some of the company's recent developments, highlighting its ongoing adjustments to its financial strategy and stock structure.
InvestingPro Insights
While Wheeler Real Estate Investment Trust has regained compliance with Nasdaq's minimum publicly held shares requirement, InvestingPro data reveals some challenging financial metrics for the company. The REIT's market capitalization stands at a modest $8.94 million, reflecting its small-cap status. InvestingPro Tips indicate that WHLR's stock has experienced significant volatility and poor performance across various timeframes.
The company's revenue for the last twelve months as of Q3 2024 was $102.75 million, with a concerning revenue growth of -0.17% over the same period. Despite these headwinds, WHLR maintains a strong gross profit margin of 65.98% and an operating income margin of 30.42%, suggesting some operational efficiency.
InvestingPro Tips also highlight that WHLR is not profitable over the last twelve months and does not pay a dividend to shareholders, which may be important considerations for income-focused REIT investors. For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for WHLR, providing deeper insights into the company's financial health and market position.
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