Wheeler Real Estate Investment Trust (Ticker WHLR)
Any thoughts on what is going on here? They’ve executed a few reverse stock splits, had some decent news in sept 2024 for winning a lawsuit based on their acquisition of another public REIT (CDR) but the market cap is under $6M and their stock just fell below $2 again…at what point is bankruptcy a realistic possibility?
The stock is down 99% for the year, how does a company survive that? Any potential for a turnaround?
They had some trouble with their preferred shares, a ton of leverage, doing an equity swap but to me it seems very very hairy and a bit over my head, would love to get thoughts.
Wow, I remember this REIT back when it had a few hundred million market cap. Had no idea its downfall. They went super aggressive into small rural towns on grocery anchored centers. Looks like they kept taking on debt for bad purchases. Then they struggled when the grocery anchors didnt renew. Its very hard to replace these tenants in the rural markets. Based on a very short scroll through their cash flows, looks like theyre just taking on new debt to keep overall cash flow incoming. Seems like its an eventual bankruptcy scenario.
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