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Southeastern Grocers' Financial Distress Will Overwhelm Wheeler; KeyBank Extension Delays Inevitable Dividend Cut

Published Thu, 28 Dec 2017 00:13:25 -0500 on Seeking Alpha

There is no love lost for Wheeler (WHLR) on Seeking Alpha. Numerous authors, myself included, have written articles pointing to the many flaws in Wheeler’s business model. Wheeler’s mere existence is a black mark against modern publicly traded REITs. It is amazing that in 2017 such a REIT can remain a publicly traded company. It has cut its dividend multiple times, has a definition of AFFO that any self-respecting analyst would tear to shreds, utilizes leverage like a private developer and has made multiple promises to investors that were broken. I recently wrote an article on Seeking Alpha predicting another dividend cut due to WHLR’s inability to extend their Line Of Credit. Clearly, I was wrong about the timing as KeyBank agreed to an extension. Nonetheless, I stand by my thesis that Wheeler is rapidly moving toward another dividend cut/suspension. In this article I will cover a couple of items that have not already been addressed by other Seeking Alpha authors and support the view that another dividend cut/suspension is in the cards: Covenants in the Amended Line Of Credit, Robin Hanisch’s Termination and Southeastern Grocers’ Financial Troubles.
I will be the first to admit that I was surprised to see that just before Christmas Wheeler announced a modification to its credit facility with KeyBank that was fairly close to what management outlined on its earnings call on November 9th. While the amendment buys Wheeler a couple of months, it does... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
WHEELER REIT 1.35   0.0 0.00 1.36 95.17


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