Wheeler Real Estate Investment Trust, Inc.WHLR

Wheeler Real Estate Investment Trust, Inc. Leases Disclosure

10-KFiled Mar 2, 20232 min read
Lease CommitmentsThe Company has ground leases and leases its corporate headquarters; both are accounted for as operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 50 years. As of December 31, 2022 and 2021, the weighted average remaining lease term of our leases is 34 and 31 years, respectively. Rent expense under the operating lease agreements were $1.15 million and $1.06 million for the years ended December 31, 2022 and 2021, respectively.
The Cedar Portfolio has a ground lease which is accounted for as an operating lease expiring in 2071 and is included in the purchase price allocation discussed in Note 3 of this Form 10-K.

Supplemental information related to leases is as follows (in thousands):
For the Years Ended December 31,
20222021
Cash paid for amounts included in the measurement of operating lease liabilities$956 $902 

Undiscounted cash flows of our scheduled obligations for future minimum lease payments due under the operating leases, including applicable automatic extension options and options reasonably certain of being exercised, as of December 31, 2022 and a reconciliation of those cash flows to the operating lease liabilities at December 31, 2022 are as follows (in thousands):

For the years ended December 31,
2023$1,113 
20241,115 
20251,119 
20261,148 
20271,152 
Thereafter30,829 
    Total minimum lease payments (1)
36,476 
Discount(19,998)
    Operating lease liabilities$16,478 
(1) Operating lease payments include $7.54 million related to options to extend lease terms that are reasonably certain of being exercised.

Historical Timeline

Fiscal YearFiled
2022Mar 2, 2023Showing above
2021Feb 28, 2022
2020Mar 18, 2021
2019Feb 26, 2020
2017Mar 7, 2018
2016Feb 28, 2017
2015Mar 10, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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