Following a recent management shakeup, Wheeler Real Estate Investment Trust Inc. plans to hire a third-party adviser to help it conduct a strategic review to maximize shareholder value.
The announcement follows the recent termination of Chairman, President and CEO Jon Wheeler, who was replaced by Chief Investment Officer David Kelly, after activist investor Joseph Stilwell of the Stilwell Group called for Jon Wheeler's removal, arguing that the company's share price did not reflect the value of its assets.
In a release, Kelly said that after a review of the company's current operations and financial position with newly appointed CFO Matt Reddy and other members of the company's management team, executives determined that the real estate investment trust's existing portfolio of grocery-anchored retail centers is performing well, adding that "it has been business as usual at the property level" amidst the executive transitions.
The company plans to close its Charleston, S.C., office to reduce expenses and sell seven parcels of non-income-producing land in Virginia and North Carolina in order to strengthen its balance sheet. The company is evaluating some stabilized properties for sale, as well.
Wheeler is also working with KeyBank to refinance several assets encumbered by its line of credit and expects to retire $6.9 million of debt with Revere before it matures in April.
Finally, Kelly said, Wheeler is in "proactive and substantive discussions" with tenant Southeastern Grocers LLC, which has recently "been contemplating business decisions that would affect our company."
Wheeler expects to release its fourth-quarter 2017 results within the next month.
