VIRGINIA BEACH, Va., Feb. 26, 2019 (GLOBE NEWSWIRE) -- Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) (“WHLR” or the “Company”) today reported operating and financial results for the three and twelve months ending December 31, 2018.
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss per common share | $ | (1.66 | ) | $ | (1.22 | ) | $ | (3.17 | ) | $ | (2.54 | ) | ||||
FFO per common share and common unit | (0.05 | ) | (0.56 | ) | 0.42 | 0.19 | ||||||||||
AFFO per common share and common unit | 0.15 | 0.18 | 0.73 | 1.31 |
2018 FOURTH QUARTER HIGHLIGHTS
(all comparisons to the same prior year period unless otherwise noted)
2018 YEAR-TO-DATE HIGHLIGHTS
SUBSEQUENT EVENTS
BALANCE SHEET
DIVIDENDS
OPERATIONS AND LEASING
SAME STORE RESULTS
ACQUISITIONS
DISPOSITIONS
SUPPLEMENTAL INFORMATION
Further details regarding Wheeler Real Estate Investment Trust, Inc.’s operations and financials for the period ended December 31, 2018, including a supplemental presentation, are available at https://ir.whlr.us/.
CONFERENCE CALL DIAL-IN AND WEBCAST INFORMATION:
The Company will host a conference call and webcast on Wednesday, February 27, 2019 at 10:00 am Eastern Time to review its financial performance and operating results for the quarter ended December 31, 2018.
Conference Call and Webcast:
U.S. & Canada Toll Free: (877) 407-3101 / International: (201) 493-6789
Webcast: www.whlr.us via the Investor Relations Section
Replay:
U.S. & Canada Toll Free: (877) 660-6853 / International: (201) 612-7415
Conference ID#: 13679474
Available February 27, 2019 (one hour after the end of the conference call) to March 27, 2019 at 10:00 am Eastern Time.
ABOUT WHEELER REAL ESTATE INVESTMENT TRUST, INC.
Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully-integrated, self-managed commercial real estate investment company focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers. Wheeler’s portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk-adjusted returns, with a particular emphasis on grocery-anchored retail centers. For additional information about the Company, please visit: www.whlr.us.
A copy of Wheeler’s Annual Report on Form 10-K, which includes the Company’s consolidated financial statements and management’s discussion & analysis of financial condition and results of operations, will be available upon filing via the U.S. Securities and Exchange Commission website (www.sec.gov) or through Wheeler’s website at www.whlr.us.
DEFINITIONS
FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted EBITDA are non-GAAP financial measures within the meaning of the rules of the Securities and Exchange Commission. Wheeler considers FFO, AFFO, Pro Forma AFFO, Property NOI, EBITDA and Adjusted EBITDA to be important supplemental measures of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate and gains and losses from property dispositions, the Company believes that it provides a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from the closest GAAP measurement, net income.
Management believes that the computation of FFO in accordance with NAREIT’s definition includes certain items that are not indicative of the operating performance of the Company’s real estate assets. These items include, but are not limited to, nonrecurring expenses, legal settlements, legal and professional fees, and acquisition costs. Management uses AFFO, which is a non- GAAP financial measure, to exclude such items. Management believes that reporting AFFO and Pro Forma AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis. Management also believes that Property NOI, EBITDA and Adjusted EBITDA represent important supplemental measures for securities analysts, investors and other interested parties, as they are often used in calculating net asset value, leverage and other financial metrics used by these parties in the evaluation of REITs.
FORWARD LOOKING STATEMENTS
This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. The Company’s expected results may not be achieved, and actual results may differ materially from expectations. Specifically, the Company’s statements regarding future generation of financial returns from its portfolio are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release.
Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
INVESTOR CONTACT:
Mary Jensen
Investor Relations
(757) 627-9088
mjensen@whlr.us
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUE: | |||||||||||||||
Rental revenues | $ | 12,589 | $ | 10,891 | $ | 50,952 | $ | 44,156 | |||||||
Asset management fees | 46 | 120 | 189 | 927 | |||||||||||
Commissions | 38 | 141 | 140 | 899 | |||||||||||
Tenant reimbursements | 3,258 | 2,905 | 12,595 | 11,032 | |||||||||||
Development and other revenues | 136 | 239 | 1,833 | 1,521 | |||||||||||
Total Revenue | 16,067 | 14,296 | 65,709 | 58,535 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operations | 4,669 | 3,922 | 18,473 | 15,389 | |||||||||||
Non-REIT management and leasing services | 16 | (598 | ) | 75 | 927 | ||||||||||
Depreciation and amortization | 6,151 | 5,776 | 27,094 | 26,231 | |||||||||||
Impairment of goodwill | 5,486 | — | 5,486 | — | |||||||||||
Provision for credit losses | 99 | 2,378 | 434 | 2,821 | |||||||||||
Impairment of notes receivable | 1,739 | 5,261 | 1,739 | 5,261 | |||||||||||
Corporate general & administrative | 1,749 | 2,509 | 8,228 | 7,364 | |||||||||||
Other operating expenses | — | — | 250 | — | |||||||||||
Total Operating Expenses | 19,909 | 19,248 | 61,779 | 57,993 | |||||||||||
Gain on disposal of properties | 151 | — | 2,463 | 1,021 | |||||||||||
Operating (Loss) Income | (3,691 | ) | (4,952 | ) | 6,393 | 1,563 | |||||||||
Interest income | 1 | 363 | 4 | 1,443 | |||||||||||
Interest expense | (5,288 | ) | (4,168 | ) | (20,228 | ) | (17,165 | ) | |||||||
Net Loss from Continuing Operations Before Income Taxes | (8,978 | ) | (8,757 | ) | (13,831 | ) | (14,159 | ) | |||||||
Income tax expense (benefit) | 32 | 38 | (40 | ) | (137 | ) | |||||||||
Net Loss from Continuing Operations | (8,946 | ) | (8,719 | ) | (13,871 | ) | (14,296 | ) | |||||||
Discontinued Operations | |||||||||||||||
(Loss) income from discontinued operations | (3,938 | ) | — | (3,938 | ) | 16 | |||||||||
Gain on disposal of properties | — | — | 903 | 1,502 | |||||||||||
Net (Loss) Income from Discontinued Operations | (3,938 | ) | — | (3,035 | ) | 1,518 | |||||||||
Net Loss | (12,884 | ) | (8,719 | ) | (16,906 | ) | (12,778 | ) | |||||||
Less: Net loss attributable to noncontrolling interests | (336 | ) | (519 | ) | (406 | ) | (684 | ) | |||||||
Net Loss Attributable to Wheeler REIT | (12,548 | ) | (8,200 | ) | (16,500 | ) | (12,094 | ) | |||||||
Preferred Stock dividends - declared | (169 | ) | (2,496 | ) | (9,790 | ) | (9,969 | ) | |||||||
Preferred Stock dividends - undeclared | (3,037 | ) | — | (3,037 | ) | — | |||||||||
Net Loss Attributable to Wheeler REIT Common Shareholders | $ | (15,754 | ) | $ | (10,696 | ) | $ | (29,327 | ) | $ | (22,063 | ) | |||
Loss per share from continuing operations (basic and diluted) | $ | (1.25 | ) | $ | (1.22 | ) | $ | (2.85 | ) | $ | (2.70 | ) | |||
(Loss) income per share from discontinued operations | (0.41 | ) | — | (0.32 | ) | 0.16 | |||||||||
Total loss per share | $ | (1.66 | ) | $ | (1.22 | ) | $ | (3.17 | ) | $ | (2.54 | ) | |||
Weighted-average number of shares: | |||||||||||||||
Basic and Diluted | 9,484,185 | 8,739,455 | 9,256,234 | 8,654,240 | |||||||||||
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except par value and share data)
December 31, | |||||||
2018 | 2017 | ||||||
ASSETS: | |||||||
Investment properties, net | $ | 433,142 | $ | 375,199 | |||
Cash and cash equivalents | 3,544 | 3,677 | |||||
Restricted cash | 14,455 | 8,609 | |||||
Rents and other tenant receivables, net | 5,539 | 5,619 | |||||
Notes receivable, net | 5,000 | 6,739 | |||||
Goodwill | — | 5,486 | |||||
Assets held for sale | 8,982 | 9,135 | |||||
Above market lease intangible, net | 7,346 | 8,778 | |||||
Deferred costs and other assets, net | 30,073 | 34,432 | |||||
Total Assets | $ | 508,081 | $ | 457,674 | |||
LIABILITIES: | |||||||
Loans payable, net | $ | 360,117 | $ | 307,375 | |||
Liabilities associated with assets held for sale | 4,632 | 792 | |||||
Below market lease intangible, net | 10,045 | 9,616 | |||||
Accounts payable, accrued expenses and other liabilities | 12,077 | 10,579 | |||||
Dividends payable | — | 5,480 | |||||
Total Liabilities | 386,871 | 333,842 | |||||
Commitments and contingencies | — | — | |||||
Series D Cumulative Convertible Preferred Stock (no par value, 4,000,000 shares authorized, 3,600,636 and 2,237,000 shares issued and outstanding; $91.98 million and $55.93 million aggregate liquidation preference, respectively) | 76,955 | 53,236 | |||||
EQUITY: | |||||||
Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding) | 453 | 453 | |||||
Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 1,875,748 and 1,875,848 shares issued and outstanding, respectively; $46.90 million aggregate liquidation preference) | 41,000 | 40,915 | |||||
Common Stock ($0.01 par value, 18,750,000 shares authorized, 9,511,464 and 8,744,189 shares issued and outstanding, respectively) | 95 | 87 | |||||
Additional paid-in capital | 233,697 | 226,978 | |||||
Accumulated deficit | (233,184 | ) | (204,925 | ) | |||
Total Shareholders’ Equity | 42,061 | 63,508 | |||||
Noncontrolling interests | 2,194 | 7,088 | |||||
Total Equity | 44,255 | 70,596 | |||||
Total Liabilities and Equity | $ | 508,081 | $ | 457,674 | |||
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Funds From Operations (FFO)
(unaudited, in thousands)
Three Months Ended December 31, | ||||||||||||||||||||||||||||||
Same Stores | New Stores | Total | Year Over Year Changes | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | $ | % | |||||||||||||||||||||||
Net loss | $ | (12,852 | ) | $ | (8,719 | ) | $ | (32 | ) | $ | — | $ | (12,884 | ) | $ | (8,719 | ) | $ | (4,165 | ) | (47.77 | )% | ||||||||
Depreciation and amortization of real estate assets | 4,855 | 5,776 | 1,296 | — | 6,151 | 5,776 | 375 | 6.49 | % | |||||||||||||||||||||
Impairment of goodwill | 5,486 | — | — | — | 5,486 | — | 5,486 | 100.00 | % | |||||||||||||||||||||
Impairment of land | 3,938 | — | — | — | 3,938 | — | 3,938 | 100.00 | % | |||||||||||||||||||||
Gain on disposal of properties | (151 | ) | — | — | — | (151 | ) | — | (151 | ) | (100.00 | )% | ||||||||||||||||||
FFO | $ | 1,276 | $ | (2,943 | ) | $ | 1,264 | $ | — | $ | 2,540 | $ | (2,943 | ) | $ | 5,483 | 186.31 | % |
Years Ended December 31, | ||||||||||||||||||||||||||||||
Same Stores | New Stores | Total | Year Over Year Changes | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | $ | % | |||||||||||||||||||||||
Net loss | $ | (16,696 | ) | $ | (12,778 | ) | $ | (210 | ) | $ | — | $ | (16,906 | ) | $ | (12,778 | ) | $ | (4,128 | ) | (32.31 | )% | ||||||||
Depreciation and amortization of real estate assets | 22,386 | 26,231 | 4,708 | — | 27,094 | 26,231 | 863 | 3.29 | % | |||||||||||||||||||||
Impairment of goodwill | 5,486 | — | — | — | 5,486 | — | 5,486 | 100.00 | % | |||||||||||||||||||||
Impairment of land | 3,938 | — | — | — | 3,938 | — | 3,938 | 100.00 | % | |||||||||||||||||||||
Gain on disposal of properties | (2,463 | ) | (1,021 | ) | — | — | (2,463 | ) | (1,021 | ) | (1,442 | ) | (141.23 | )% | ||||||||||||||||
Gain on disposal of properties-discontinued operations | (903 | ) | (1,502 | ) | — | — | (903 | ) | (1,502 | ) | 599 | 39.88 | % | |||||||||||||||||
FFO | $ | 11,748 | $ | 10,930 | $ | 4,498 | $ | — | $ | 16,246 | $ | 10,930 | $ | 5,316 | 48.64 | % |
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Funds From Operations (FFO)
(unaudited, in thousands)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Loss | $ | (12,884 | ) | $ | (8,719 | ) | $ | (16,906 | ) | $ | (12,778 | ) | |||
Depreciation and amortization of real estate assets | 6,151 | 5,776 | 27,094 | 26,231 | |||||||||||
Impairment of goodwill | 5,486 | — | 5,486 | — | |||||||||||
Impairment of land | 3,938 | — | 3,938 | — | |||||||||||
Gain on disposal of properties | (151 | ) | — | (2,463 | ) | (1,021 | ) | ||||||||
Gain on disposal of properties-discontinued operations | — | — | (903 | ) | (1,502 | ) | |||||||||
FFO | 2,540 | (2,943 | ) | 16,246 | 10,930 | ||||||||||
Preferred stock dividends-declared | (169 | ) | (2,496 | ) | (9,790 | ) | (9,969 | ) | |||||||
Preferred stock dividends-undeclared | (3,037 | ) | — | (3,037 | ) | — | |||||||||
Preferred stock accretion adjustments | 169 | 204 | 678 | 809 | |||||||||||
FFO available to common shareholders and common unitholders | (497 | ) | (5,235 | ) | 4,097 | 1,770 | |||||||||
Impairment of notes receivable | 1,739 | 5,261 | 1,739 | 5,261 | |||||||||||
Acquisition and development costs | (46 | ) | 269 | 300 | 1,101 | ||||||||||
Capital related costs | 168 | 195 | 576 | 663 | |||||||||||
Other non-recurring and non-cash expenses (1) | — | 117 | 103 | 294 | |||||||||||
Share-based compensation | 213 | 135 | 940 | 870 | |||||||||||
Straight-line rent | (244 | ) | (146 | ) | (1,197 | ) | (712 | ) | |||||||
Loan cost amortization | 681 | 578 | 2,363 | 3,087 | |||||||||||
Accrued interest income | — | 774 | — | 415 | |||||||||||
(Below) above market lease amortization | (274 | ) | 5 | (695 | ) | 453 | |||||||||
Recurring capital expenditures and tenant improvement reserves | (285 | ) | (245 | ) | (1,143 | ) | (941 | ) | |||||||
AFFO | $ | 1,455 | $ | 1,708 | $ | 7,083 | $ | 12,261 | |||||||
Weighted Average Common Shares | 9,484,185 | 8,739,455 | 9,256,234 | 8,654,240 | |||||||||||
Weighted Average Common Units | 259,054 | 639,555 | 389,421 | 702,168 | |||||||||||
Total Common Shares and Units | 9,743,239 | 9,379,010 | 9,645,655 | 9,356,408 | |||||||||||
FFO per Common Share and Common Units | $ | (0.05 | ) | $ | (0.56 | ) | $ | 0.42 | $ | 0.19 | |||||
AFFO per Common Share and Common Units | $ | 0.15 | $ | 0.18 | $ | 0.73 | $ | 1.31 |
(1) Other non-recurring expenses are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2018.
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Property Net Operating Income
(unaudited, in thousands)
Three Months Ended December 31, | |||||||||||||||||||||||
Same Store | New Store | Total | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net Loss | $ | (12,852 | ) | $ | (8,719 | ) | $ | (32 | ) | $ | — | $ | (12,884 | ) | $ | (8,719 | ) | ||||||
Adjustments: | |||||||||||||||||||||||
Net Loss from Discontinued Operations | 3,938 | — | — | — | 3,938 | — | |||||||||||||||||
Income tax benefit | (32 | ) | (38 | ) | — | — | (32 | ) | (38 | ) | |||||||||||||
Interest expense | 4,542 | 4,168 | 746 | — | 5,288 | 4,168 | |||||||||||||||||
Interest income | (1 | ) | (363 | ) | — | — | (1 | ) | (363 | ) | |||||||||||||
Gain on disposal of properties | (151 | ) | — | — | — | (151 | ) | — | |||||||||||||||
Corporate general & administrative | 1,729 | 2,509 | 20 | — | 1,749 | 2,509 | |||||||||||||||||
Impairment of notes receivable | 1,739 | 5,261 | — | — | 1,739 | 5,261 | |||||||||||||||||
Provision for credit losses- non-tenant | — | 2,364 | — | — | — | 2,364 | |||||||||||||||||
Impairment of goodwill | 5,486 | — | — | — | 5,486 | — | |||||||||||||||||
Depreciation and amortization | 4,855 | 5,776 | 1,296 | — | 6,151 | 5,776 | |||||||||||||||||
Non-REIT management and leasing services | 16 | (598 | ) | — | — | 16 | (598 | ) | |||||||||||||||
Development income | — | (83 | ) | — | — | — | (83 | ) | |||||||||||||||
Asset management and commission revenues | (84 | ) | (261 | ) | — | — | (84 | ) | (261 | ) | |||||||||||||
Property Net Operating Income | $ | 9,185 | $ | 10,016 | $ | 2,030 | $ | — | $ | 11,215 | $ | 10,016 | |||||||||||
Property revenues | $ | 13,146 | $ | 13,952 | $ | 2,837 | $ | — | $ | 15,983 | $ | 13,952 | |||||||||||
Property expenses | 3,876 | 3,922 | 793 | — | 4,669 | 3,922 | |||||||||||||||||
Provision for credit losses- tenant | 85 | 14 | 14 | — | 99 | 14 | |||||||||||||||||
Property Net Operating Income | $ | 9,185 | $ | 10,016 | $ | 2,030 | $ | — | $ | 11,215 | $ | 10,016 | |||||||||||
Years Ended December 31, | |||||||||||||||||||||||
Same Store | New Store | Total | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net Loss | $ | (16,696 | ) | $ | (12,778 | ) | $ | (210 | ) | $ | — | $ | (16,906 | ) | $ | (12,778 | ) | ||||||
Adjustments: | |||||||||||||||||||||||
Net Loss (Income) from Discontinued Operations | 3,035 | (1,518 | ) | — | — | 3,035 | (1,518 | ) | |||||||||||||||
Income tax expense | 40 | 137 | — | — | 40 | 137 | |||||||||||||||||
Interest expense | 17,379 | 17,165 | 2,849 | — | 20,228 | 17,165 | |||||||||||||||||
Interest income | (4 | ) | (1,443 | ) | — | — | (4 | ) | (1,443 | ) | |||||||||||||
Gain on disposal of properties | (2,463 | ) | (1,021 | ) | — | — | (2,463 | ) | (1,021 | ) | |||||||||||||
Other operating expenses | — | — | 250 | — | 250 | — | |||||||||||||||||
Corporate general & administrative | 8,136 | 7,364 | 92 | — | 8,228 | 7,364 | |||||||||||||||||
Impairment of notes receivable | 1,739 | 5,261 | — | — | 1,739 | 5,261 | |||||||||||||||||
Provision for credit losses- non-tenant | (77 | ) | 2,364 | — | — | (77 | ) | 2,364 | |||||||||||||||
Impairment of goodwill | 5,486 | — | — | — | 5,486 | — | |||||||||||||||||
Depreciation and amortization | 22,386 | 26,231 | 4,708 | — | 27,094 | 26,231 | |||||||||||||||||
Non-REIT management and leasing services | 75 | 927 | — | — | 75 | 927 | |||||||||||||||||
Development income | — | (537 | ) | — | — | — | (537 | ) | |||||||||||||||
Asset management and commission revenues | (329 | ) | (1,826 | ) | — | — | (329 | ) | (1,826 | ) | |||||||||||||
Property Net Operating Income | $ | 38,707 | $ | 40,326 | $ | 7,689 | $ | — | $ | 46,396 | $ | 40,326 | |||||||||||
Property revenues | $ | 54,680 | $ | 56,172 | $ | 10,700 | $ | — | $ | 65,380 | $ | 56,172 | |||||||||||
Property expenses | 15,572 | 15,389 | 2,901 | — | 18,473 | 15,389 | |||||||||||||||||
Provision for credit losses- tenant | 401 | 457 | 110 | — | 511 | 457 | |||||||||||||||||
Property Net Operating Income | $ | 38,707 | $ | 40,326 | $ | 7,689 | $ | — | $ | 46,396 | $ | 40,326 |
Wheeler Real Estate Investment Trust, Inc. and Subsidiaries
Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA
(unaudited, in thousands)
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net Loss | $ | (12,884 | ) | $ | (8,719 | ) | $ | (16,906 | ) | $ | (12,778 | ) | ||||
Add back: | Depreciation and amortization (1) | 5,877 | 5,781 | 26,399 | 26,684 | |||||||||||
Interest Expense (2) | 5,288 | 4,168 | 20,228 | 17,174 | ||||||||||||
Income tax (benefit) expense | (32 | ) | (38 | ) | 40 | 137 | ||||||||||
EBITDA | (1,751 | ) | 1,192 | 29,761 | 31,217 | |||||||||||
Adjustments for items affecting comparability: | ||||||||||||||||
Acquisition and development costs | (46 | ) | 269 | 300 | 1,101 | |||||||||||
Capital related costs | 168 | 195 | 576 | 663 | ||||||||||||
Other non-recurring and non-cash expenses (3) | — | 117 | 103 | 294 | ||||||||||||
Impairment of goodwill | 5,486 | — | 5,486 | — | ||||||||||||
Impairment of notes receivable | 1,739 | 5,261 | 1,739 | 5,261 | ||||||||||||
Impairment of land-discontinued operations | 3,938 | — | 3,938 | — | ||||||||||||
Gain on disposal of properties | (151 | ) | — | (2,463 | ) | (1,021 | ) | |||||||||
Gain on disposal of properties-discontinued operations | — | — | (903 | ) | (1,502 | ) | ||||||||||
Adjusted EBITDA | $ | 9,383 | $ | 7,034 | $ | 38,537 | $ | 36,013 |
(1) Includes above (below) market lease amortization.
(2) Includes loan cost amortization and amounts associated with discontinued operations.
(3) Other non-recurring expenses are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the period ended December 31, 2018.