Wheeler Real Estate Investment Trust, Inc. (WHLR): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Wheeler Real Estate Investment Trust, Inc. (WHLR) makes its money, especially now, as they navigate capital markets while actively managing a portfolio of 66 grocery-anchored centers spanning over 7.6 million square feet. Honestly, understanding their strategy means looking past the stock ticker to see their core activities: actively leasing those centers, pushing strategic asset sales, and managing a hefty $487.3 million in total debt, all while pulling in about $23.82 million in revenue for Q3 2025. This canvas breaks down their entire operation-from who they partner with to their key costs-so you can see the real levers driving their value proposition of necessity-based retail returns. Dive in below to see the precise map of their business model.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Key Partnerships

You're looking at the relationships Wheeler Real Estate Investment Trust, Inc. (WHLR) relies on to manage its balance sheet and portfolio, which is key for a company actively managing leverage and equity structure. These partnerships are critical for both immediate liquidity needs and long-term asset value preservation.

Financial institutions for refinancing near-term debt are essential partners in managing maturity walls. Wheeler Real Estate Investment Trust, Inc. has stated intentions to work with lenders to reduce its obligations. For instance, the Company referenced statements regarding its ability to close a transaction to reduce the Key Bank line to less than $51 million, alongside reducing the Key Bank loan balance and identifying further refinancing opportunities.

The relationship with national and regional anchor tenants for long-term lease commitments underpins the predictable cash flow Wheeler Real Estate Investment Trust, Inc. targets, especially given its focus on grocery-anchored centers. As of December 31, 2024, the top 10 tenants represented 24.1% or $17.6 million of annualized base rent (ABR) and 26.3% or 2.0 million of gross leasable square footage. Importantly, no single tenant represented more than approximately 6% of the Company's ABR at that time. The Company aims to extend these long-term leases as part of its capital allocation strategy.

Dealing with unaffiliated securities holders for preferred stock exchanges has been a frequent, non-cash method for Wheeler Real Estate Investment Trust, Inc. to adjust its capital structure by retiring preferred shares. These transactions, often utilizing Section 3(a)(9) exemptions, swap preferred stock for common stock, which was retired and cancelled with no cash proceeds to the Company. You can see the scale of these exchanges:

The Company also manages relationships with brokers and advisors for strategic property dispositions. Wheeler Real Estate Investment Trust, Inc. intends to grow operations by disposing of non-core assets. The financial results for the third quarter ended September 30, 2025, showed a revenue drop partially due to credit adjustments on operating lease receivables from properties sold in both 2024 and 2025. These sales are a key part of managing leverage and allocating capital to higher-yielding opportunities.

Wheeler Real Estate Investment Trust, Inc. also has relationships with holders of its 7.00% Subordinated Convertible Notes due 2031, evidenced by adjustments to the conversion price, such as a reduction to approximately $1.74 per share, effective before November 5, 2025.

Finance: draft 13-week cash view by Friday.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Key Activities

You're looking at the core engine of Wheeler Real Estate Investment Trust, Inc. (WHLR)-the day-to-day and strategic moves that keep the lights on and the balance sheet shifting. Honestly, for a REIT like this, Key Activities are all about managing the physical assets while constantly juggling the capital structure.

Active Management and Leasing of Retail Shopping Centers

The primary activity is keeping the existing portfolio running smoothly and maximizing rent collection across the properties. This involves intensive property management and aggressive leasing efforts to maintain high occupancy rates in their Mid-Atlantic, Southeast, and Northeast markets. As of December 31, 2024, the portfolio achieved 92.3% occupancy, which was an improvement of 120 basis points from the prior 91.1% mark, with the portfolio being 93.1% leased overall.

Operational focus is clearly on driving net operating income (NOI) from existing assets. For the third quarter of 2025, Wheeler Real Estate Investment Trust, Inc. reported a Same-Property NOI growth of 4.2%. This growth is partly attributed to mitigating rising operating costs through improved tenant reimbursement structures. Still, revenue management is a tightrope walk; Q3 2025 revenue hit $23.82 million, a 3.91% drop from Q3 2024's $24.79 million, largely due to a $1.9 million decline in rental revenues from properties sold in 2024 and 2025, though same-center properties saw a $900,000 increase in those same metrics. It's about making the remaining centers work harder.

Here's a snapshot of the tenant concentration as of December 31, 2024:

Geographically, the annualized base rent was split across the regions as follows:

• Mid-Atlantic: 44%
• Southeast: 43%
• Northeast: 13%

Strategic Capital Markets Transactions

Wheeler Real Estate Investment Trust, Inc. is defintely active in reshaping its equity and debt structure, often without taking in new cash proceeds. This involves constant adjustments to the share structure to manage preferred obligations.

Key capital structure activities in 2025 included several reverse stock splits to adjust the share base. Specifically, a one-for-four reverse split was effective on January 27, 2025, and a one-for-seven reverse split became effective on May 27, 2025.

The company also executed several non-cash exchanges to retire preferred stock:

• On December 1, 2025, 56,000 shares of common stock were issued in exchange for 4,000 Series D and 8,000 Series B preferred shares.
• In a transaction related to Series D redemptions, 152,703 shares of common stock were issued to settle redemptions of 11,425 shares of Series D Preferred Stock.
• Another redemption settled 11,551 shares of Series D Preferred Stock (at approximately $41.74 per share) with 270,184 shares of common stock.

Furthermore, the terms of the 7.00% Subordinated Convertible Notes due 2031 were modified, with the conversion price reduced from approximately $3.59 to $1.74 per common share, effective before November 5, 2025.

Portfolio Optimization Through Non-Core Asset Dispositions

A critical activity is shedding properties that don't fit the long-term, grocery-anchored strategy. This frees up capital and reduces management complexity. The sale of Webster Commons is a prime example from early 2025.

The disposition of Webster Commons, a 98,984 square foot retail center in Webster, Massachusetts, occurred on February 11, 2025. The sale price was $14.5 million, yielding net proceeds of $13.9 million. This cash flow was immediately put to work, including a $9.1 million pay down of the Ceder term loan.

Enhancing Property Value Via Capital Improvements and Tenant Fit-Outs

While specific dollar amounts for capital improvements and tenant fit-outs for late 2025 weren't detailed in the immediate results, the focus on operational efficiency and Same-Property NOI growth implies this activity is ongoing. The CEO noted the focus on leasing and operational efficiency, which inherently includes ensuring properties are maintained and tenants are set up for success. Finance: draft 13-week cash view by Friday.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Key Resources

The Key Resources for Wheeler Real Estate Investment Trust, Inc. (WHLR) center on its physical real estate assets, operational structure, and access to capital.

Physical Assets: The foundation of Wheeler Real Estate Investment Trust, Inc. (WHLR)'s model is its owned real estate portfolio, which is primarily composed of grocery-anchored centers, a resilient retail format.

• Portfolio size: 69 properties.
• Substantial leasable area: Over 7.6 million square feet (GLA).
• Geographic focus: Mid-Atlantic, Northeast, and Southeast regions of the United States.

The tenants within this portfolio include nationally and regionally recognized retailers such as Food Lion, Kroger, Home Depot, TJ Maxx, Burlington, Ross Dress for Less, fiveBelow, Dollar Tree, and Planet Fitness.

Operational Structure: Wheeler Real Estate Investment Trust, Inc. (WHLR) maintains a self-managed, fully integrated operating structure. This means the company handles the acquisition, financing, development, leasing, owning, and management functions internally, which is a key human and intellectual resource.

Financial Resources: The financial health metrics, based on the Second Quarter 2025 results (period ended June 30, 2025), define the capital base available for operations and investment.

The reliance on debt is significant, evidenced by the Debt to Equity ratio, which stood at 519.1% as of June 30, 2025. Furthermore, the Interest coverage ratio was reported at 1x, indicating that EBIT of $33.3M barely covers interest payments.

Access to Capital Markets: Access to debt and equity financing is a critical resource for any REIT. As of early November 2025, the market capitalization for Wheeler Real Estate Investment Trust, Inc. (WHLR) was reported at $3.2M. The company has publicly traded securities, including NASDAQ: WHLRD, WHLRP, WHLRL, which represent potential avenues for equity capital, though the P/E ratio was reported as 0 and there was no dividend yield reported as of November 6, 2025.

The physical infrastructure, like the specialized retail properties, is the primary asset, but the internal management team is the human resource enabling the self-managed structure.

• Key internal capabilities: Internal leasing and property management expertise.
• Intellectual property: The established brand and operational know-how in grocery-anchored retail.

Finance: draft 13-week cash view by Friday.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Value Propositions

Stable, necessity-based retail locations for tenants (grocery-anchored).

Wheeler Real Estate Investment Trust, Inc. (WHLR) concentrates on owning, leasing, and operating income-producing retail properties, with a primary emphasis on grocery-anchored centers. This focus capitalizes on the stability provided by essential consumer services. As of December 31, 2024, the portfolio consisted of 75 properties, which included 72 retail shopping centers. The tenant roster features nationally and regionally recognized retailers, such as Food Lion, Kroger, Home Depot, TJ Maxx, Burlington, Ross Dress for Less, fiveBelow, Dollar Tree, and Planet Fitness.

The portfolio's concentration risk is managed, as no single tenant represented greater than approximately 6% of the Company's annualized base rent or 7% of gross leasable square footage at December 31, 2024. The top ten tenants accounted for 24.1% or $17.6 million of annualized base rent as of that date.

High-traffic centers in secondary and tertiary markets.

The properties are strategically located in secondary and tertiary markets, aiming for dominant positioning within those areas. Geographically, as of December 31, 2024, the properties were situated in the Mid-Atlantic, Southeast, and Northeast regions. These regions represented approximately 44%, 43%, and 13%, respectively, of the total annualized base rent. The total leasable square footage across the portfolio was approximately 7.66 million as of December 31, 2024, with an occupancy rate of 93.1%. For the quarter ended June 30, 2025, the real estate portfolio was 91.6% occupied.

Improved tenant reimbursement structures to mitigate rising operating costs.

Wheeler Real Estate Investment Trust, Inc. (WHLR) employs leases that generally require the tenant to reimburse a substantial portion of operating, maintenance, repair, and management expenses, which is referred to as a triple net lease arrangement. The company's strategy includes looking beyond just Average Base Rent (ABR) growth to mitigate the impact of raising operating costs through these improved tenant reimbursement structures. For the three months ended September 30, 2025, Total Revenue was $23.82 million. This revenue figure reflected a $1.9 million decline in rental revenues and tenant reimbursements (net of credit adjustments from sold properties), which was partially offset by a $900,000 increase from same center properties. The Same-Property Net Operating Income (NOI) growth for the third quarter of 2025 was 4.2%.

Here's a quick look at revenue components for the nine months ended September 30, 2024 (in thousands):

Property operating expenses for the three months ended September 30, 2025, were $7,356 thousand.

Risk-adjusted returns for investors via a focused REIT structure.

Wheeler Real Estate Investment Trust, Inc. (WHLR) is a self-managed commercial real estate investment trust (REIT). The company is committed to maintaining its REIT status by distributing at least 90% of its REIT taxable income. The focus on necessity-based retail in diversified secondary/tertiary markets is intended to generate attractive, risk-adjusted returns. The diluted earnings per share (EPS) for the third quarter of 2025 was -83 cents, which was a significant improvement from the -$14.77 per share reported in the third quarter of 2024. The Net Loss Attributable to Wheeler REIT for the three months ended September 30, 2025, was $8,088 thousand. The stock valuation metrics as of late 2025 include a P/E ratio of 0 and no dividend yield.

Key financial metrics related to investor performance:

• Diluted EPS (Q3 2025): -$0.83 per share
• Diluted EPS (Q3 2024): -$14.77 per share
• Net Loss Attributable to WHLR Common Stockholders (Six Months Ended June 30, 2025): $(41.01) per share
• Total Liabilities (as of late 2024/early 2025): $583,004 thousand

The company has executed capital markets transactions, including a Cedar Bridge Loan in April 2025, which involved $10.0 million of restricted cash pledged as collateral.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Customer Relationships

You're managing a portfolio where tenant relationships are the bedrock of cash flow, so understanding how Wheeler Real Estate Investment Trust, Inc. (WHLR) handles its customers-both tenants and equity holders-is key. The company emphasizes a hands-on, self-managed approach to keep its retail centers attractive and cost-effective for the businesses that pay the rent.

Direct, long-term lease negotiations with national and regional retailers

Wheeler Real Estate Investment Trust, Inc. focuses its leasing efforts on necessity-based retail, like grocery-anchored centers, aiming for stable, lower-risk tenants. The leasing representatives are experienced in their markets, studying demographics and merchandising mix to optimize the tenant base. This direct negotiation process is crucial for maximizing revenue per square foot. As of December 31, 2024, the top 10 tenants represented 24.1% or $17.6 million of annualized base rent, but importantly, no single tenant accounted for more than approximately 6% of that rent, showing a degree of diversification within the key customer group.

The leasing activity for the nine months ended September 30, 2025, shows a clear strategy of securing rate increases upon renewal:

Dedicated property management for tenant retention and satisfaction

Wheeler Real Estate Investment Trust, Inc. self-administers substantially all property management and leasing functions. The primary goal here is maintaining an attractive shopping environment on a cost-effective basis. This involves regular contact with tenants and frequent visits to each asset to ensure market strategies are executed correctly. The portfolio occupancy rate stood at 91.6% as of the end of the second quarter of 2025, which was an 80 basis point increase from 90.8%.

• On-site functions like maintenance and landscaping are subcontracted.
• The cost of these subcontracted functions is passed on to tenants where leases permit.
• Management conducts regular physical property reviews to react to market conditions.

Investor Relations (IR) for communication with common and preferred stockholders

Investor communication is critical, especially given the ongoing capital structure management involving preferred stock redemptions. As of July 7, 2025, the outstanding share count was 1,160,584 common shares and 1,836,032 Series D preferred shares. The company settled preferred redemptions by issuing common stock, which introduces dilution risk that IR must manage. As of September 30, 2025, the accumulated undeclared dividends owed to Series D Preferred Stock holders totaled $26.6 million, with $5.0 million attributable to the nine months ended September 30, 2025. The stock price as of December 3, 2025, was $3.11, and the market capitalization on November 6, 2025, was listed as $3.2M.

Proactive lease renewal strategy for anchor tenants

A key part of the capital allocation strategy involves extending long-term leases with anchor tenants, which are essential for driving traffic to the centers. The company studies tenant sales trends to support renewals in necessity-based locations. While specific 2025/2026 anchor lease expiration data isn't explicitly detailed here, the filings confirm they track this information meticulously, including:

• Number of expiring leases.
• Expiring occupied Square Footage.
• Expiring Annualized Base Rent (in 000s).

This data is used to prioritize capital allocation toward value-added improvements that support these critical, long-term relationships.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Channels

You're looking at how Wheeler Real Estate Investment Trust, Inc. gets its message out and its properties filled. It's a mix of direct sales efforts and required public disclosures, so let's map out the specific pathways they use right now.

Property Occupancy Channels

Wheeler Real Estate Investment Trust, Inc. relies on direct and intermediary channels to keep its portfolio of retail properties leased. The company's portfolio consists of properties like strip centers, neighborhood centers, and grocery-anchored centers, with tenants including Food Lion, Kroger, Home Depot, and Planet Fitness.

The leasing function is executed through:

• Direct leasing teams employed by Wheeler Real Estate Investment Trust, Inc.
• Third-party brokers engaged for specific property placements.

The success of these channels is tied to the performance of their real estate assets, which are located in the Mid-Atlantic, Northeast, and Southeast regions of the United States.

Investor Communication Channels

For communicating with investors, Wheeler Real Estate Investment Trust, Inc. uses a defined set of official and digital channels. The company states it currently announces material information using SEC filings and press releases.

The primary digital touchpoints for investors are:

• The corporate website, specifically the Investor Relations page at http://www.whlr.us/.
• Public conference calls and webcasts, used alongside filings.
• SEC filings, such as the Form 10-Q for Q3 2025 results filed on November 6, 2025, and the Form 8-K filed on December 4, 2025.
• Social media, including their LinkedIn account.

The capital structure data flowing through these channels shows the scale of the equity base as of mid-2025:

Stock Exchange Trading

Trading of Wheeler Real Estate Investment Trust, Inc. securities occurs on the NASDAQ stock exchange. You need to monitor the specific ticker symbols for the different classes of securities to track market activity.

The key tickers are:

• Common Shares: WHLR
• Preferred Shares (e.g., Series B, D): WHLRP
• Other Preferred/Debt Instruments: WHLRD, WHLRL

Market data from early December 2025 provides a snapshot of recent trading activity for the common stock:

The market capitalization as of a recent report was valued at 2,243,540 (USD equivalent), with a shares float of 690.32 K.

Stockholder Engagement

Stockholder engagement is channeled through formal corporate governance events. Wheeler Real Estate Investment Trust, Inc. held its 2025 Annual Meeting of Stockholders virtually.

Key dates for this engagement channel include:

• 2025 Annual Meeting Date: August 20, 2025.
• Record Date for Voting Eligibility: July 3, 2025.
• Deadline for Shareholder Proposals (Rule 14a-8): June 30, 2025.

The meeting was conducted as a virtual meeting, allowing stockholders to participate remotely.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Customer Segments

You're looking at the core groups Wheeler Real Estate Investment Trust, Inc. (WHLR) serves, which span from the tenants paying rent to the capital providers funding the properties. Honestly, for a REIT, these segments are the lifeblood, dictating cash flow stability and the cost of capital.

National and regional necessity-based retailers (e.g., Kroger, Food Lion, TJ Maxx)

This group forms the foundation of the revenue stream. Wheeler Real Estate Investment Trust, Inc. specializes in owning, leasing, and operating income-producing retail properties, with a primary emphasis on grocery-anchored centers. The strategy targets tenants whose goods and services are less affected by economic swings, aiming for more predictable property-level cash flows. As of December 31, 2024, the portfolio held approximately 7.66 million leasable square feet across 72 retail shopping centers, maintaining a 93.1% occupancy rate. Key national and regional names in the roster include Kroger, Food Lion, TJ Maxx, Home Depot, Harbor Freight Tools, Burlington, Ross Dress for Less, fiveBelow, Dollar Tree, and Planet Fitness. For instance, one property is specifically noted as a Kroger-anchored center, and another is anchored by Harbor Freight Tools, Goodwill, and Bealls Outlet. The focus on necessity retail helped drive Same-Property NOI growth of 4.2% in the third quarter of 2025.

Local and small-shop tenants in retail centers

Beyond the anchors, Wheeler Real Estate Investment Trust, Inc. incorporates a mix of consumer service providers within its strip centers and neighborhood centers. The leasing team actively manages this mix around three pillars: necessity, service, and convenience to keep the tenant base current and strategic. This segment provides essential local services that complement the traffic generated by the larger national tenants.

Common and preferred stockholders (investors)

Investors are crucial, as they provide the equity base for the REIT. Wheeler Real Estate Investment Trust, Inc. has several classes of securities trading on the Nasdaq Capital Market, including Common Stock (WHLR), Series B Convertible Preferred Stock (WHLRP), Series D Cumulative Convertible Preferred Stock (WHLRD), and 7.00% Subordinated Convertible Notes due 2031 (WHLRL). As of February 28, 2025, there were 1,166,433 shares of Common Stock outstanding. The Market Cap as of December 4, 2025, stood at $2.24M. Institutional Ownership was reported at 24.48%, with a Short Percent of 16.38% around November 2025. The company has been actively managing its capital structure, for example, issuing 56,000 shares of common stock in exchange for preferred shares in December 2025.

Financial creditors and mortgage lenders

This group provides the necessary debt financing to acquire and operate the portfolio. The company's ability to service this debt is a key metric for this segment. For instance, the interest coverage ratio was reported at 4.8, illustrating capacity to meet interest obligations. The Current Ratio was noted as 3.5, suggesting good short-term financial strength. Creditors are keenly watching debt structures, especially given recent adjustments, such as the conversion price reduction on the 7.00% Subordinated Convertible Notes due 2031 from approximately $3.59 to $1.74 per common share before November 5, 2025. Furthermore, the company settled a tender offer in January 2025, purchasing 645,276 shares of its Cedar Series C Preferred Stock at $15.75 per share for approximately $10.2 million.

Here's a quick look at some key financial metrics relevant to the capital structure segments:

The company's focus on operational efficiency is clear, with a reported Gross Margin of 84.7% in Q3 2025.

You should review the November 6, 2025, Third Quarter 2025 Supplement for the most granular detail on tenant lease expirations.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Cost Structure

You're looking at the core expenses Wheeler Real Estate Investment Trust, Inc. (WHLR) faces to keep its portfolio running and its capital structure intact. For a self-managed REIT focused on retail properties, the costs are heavily weighted toward debt service and property upkeep.

The most significant recurring cost is the expense tied to its financing obligations. As of September 30, 2025, Wheeler Real Estate Investment Trust, Inc. reported Total Debt of approximately $502.676 million (stated as $502,676 thousand). This substantial leverage drives the primary fixed cost.

Interest expense for the nine months ended September 30, 2025, totaled $24.638 million (stated as $24,638 thousand). This breaks down into several components:

• Property debt interest excluding Cedar debt was $13.002 million for the nine months ended September 30, 2025.
• Interest expense on the Cedar debt component was $6.162 million for the same nine-month period.
• Convertible Notes interest accounted for $2.519 million.
• Loan prepayment premium added $0.569 million.

The table below summarizes key operating and financing expenses for the nine months ended September 30, 2025, in thousands of US Dollars:

Property operating expenses are the direct costs of maintaining the income-producing assets. For the nine months ended September 30, 2025, total Property operations expenses were $24.497 million. This category covers real estate taxes, utilities, and routine maintenance you'd expect with a portfolio of strip centers and retail properties.

Wheeler Real Estate Investment Trust, Inc. is self-managed, meaning G&A costs are directly attributable to internal overhead. Corporate general & administrative costs for the nine months ended September 30, 2025, were $7.953 million. This was higher than the prior year, driven by specific increases:

• An increase in salaries of $0.3 million.
• An increase of $0.3 million in corporate administration.

Capital structure costs reflect non-recurring or transactional expenses related to managing the equity and debt base. The company has been active in this area. For instance, the Loss on conversion of Convertible Notes for the nine months ended September 30, 2025, was $(0.902 million) (a loss of $902 thousand). Furthermore, the company executed multiple reverse stock splits in 2024 and announced a one-for-two reverse split effective November 28, 2025. Expenses related to prior capital structure activities, such as the 2024 Reverse Stock Splits and redemptions of Series D Preferred Stock, were noted as non-operating expenses of $1.5 million in a March 2025 filing, covering costs incurred through the end of 2024. Cash paid in lieu of fractional shares resulting from the November 2025 reverse split is another direct, albeit minor, capital structure cost impacting cash flow.

Finance: draft 13-week cash view by Friday.

Wheeler Real Estate Investment Trust, Inc. (WHLR) - Canvas Business Model: Revenue Streams

The revenue streams for Wheeler Real Estate Investment Trust, Inc. (WHLR) are fundamentally tied to its ownership and management of income-producing retail properties, primarily strip centers, neighborhood centers, and grocery-anchored centers in the Mid-Atlantic, Northeast, and Southeast regions. The primary sources are the contractual payments from its tenant base, which includes nationally and regionally recognized retailers like Food Lion, Kroger, Home Depot, TJ Maxx, Burlington, Ross Dress for Less, fiveBelow, Dollar Tree, and Planet Fitness.

Wheeler Real Estate Investment Trust, Inc. (WHLR) reported total revenue for the third quarter ending September 30, 2025, of $23.82 million. This figure represented a slight decrease from the $24.79 million reported in the third quarter of 2024. The company noted that this revenue dip was due to a $1.9 million decline in rental revenues and tenant reimbursements, net of credit adjustments from properties sold in 2024 and 2025. Still, this was partially offset by a $900,000 increase in the same metrics for same-center properties.

The core revenue generation is detailed below, showing the split between rental income and other revenues for the third quarter periods ending September 30, 2025, and September 30, 2024. You'll notice the rental revenues are the vast majority of the top line.

The revenue streams are further supported by tenant reimbursements for operating expenses, which are a key component of the REIT's net operating income (NOI) strategy. The focus on improved tenant reimbursement structures helps mitigate the impact of rising operating costs. The company highlighted a 4.2% Same-Property NOI growth for the quarter, which reflects this focus. Furthermore, proceeds from strategic dispositions of non-core assets contribute to the overall financial picture, as seen in the non-operating line items in the income statement, such as the $7,083 thousand gain on disposal of properties, net, for the quarter ending September 30, 2025.

Here are some other key financial metrics that speak to the efficiency of these revenue streams in Q3 2025:

• Gross margin stood at an impressive 84.7%.
• EBITDA margin reached 52.3%.
• Operating Income for the quarter was $13,894 thousand.
• The company reported an EBIT margin of 29.4%.
• The overall profit margin for the quarter was reported at 24.82%.

The company's ability to execute strategic dispositions and drive rent growth positions it to navigate market challenges. The revenue model relies on maintaining a portfolio with tenants focused on necessity, service, and convenience. The total revenue for the trailing twelve months ending September 30, 2025, was $101.87 million.