Connect with us

Hi, what are you looking for?

Saturday, May 10, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Wheeler Real Estate stock skyrockets after lawsuit dismissal
Wheeler Real Estate stock skyrockets after lawsuit dismissal
One of Wheeler's malls in Richmond, Virginia. Photo credit: Wheeler Real Estate

Stock News

Wheeler Real Estate stock skyrockets after lawsuit dismissal

This victory boosted investor confidence significantly by de-risking the company financially

Shares of Wheeler Real Estate Investment Trust Inc (NASDAQ: WHLR) soared Friday following dismissal of a lawsuit against the company. They have shot up by over 147 per cent.

This class-action suit related to Wheeler’s acquisition of Cedar Realty in the summer of 2022.

The specifics provided by the company on the matter are vague, but they essentially relate to perceived violations by shareholders of Cedar’s preferred stock with regard to way the acquisition was handled.

“Courts are not time machines for disgruntled buyers,” the appellate court said in a statement regarding the trial court’s verdict. “We resolve legal claims.”

“And [p]laintiffs do not adequately allege that [d]efendants violated any legal right or duty – they only allege that they regret the terms they bargained for,” the appellate court concluded.

Wheeler’s revenue increased by 2.5 per cent last quarter to US$52.2 million while operating expenses declined by 5 per cent. The company currently has US$670 million worth of assets and debt totalling US$499 million.

Read more: Calibre Mining finds higher gold rates at Marathon Pit

Read more: Calibre intercepts long intervals of gold mineralization above resource grade

Over 8 million square feet of real estate

Following the acquisition of Cedar, Wheeler’s property portfolio expanded into three additional states. Cedar, now a wholly-owned subsidiary, is primarily involved with grocery-focused shopping centres.

Wheeler’s foremost aim is to obtain, finance, develop, lease, own and manage revenue generating real estate assets throughout the United States. Strip malls, community centres and various other properties.

Major businesses that lease space from Wheeler include Home Depot Inc (NYSE: HD), Dollar Tree Inc (NASDAQ: DLTR), Planet Fitness Inc (NYSE: PLNT) and many others.

Prologis Inc (NYSE: PLD), American Tower Corp (NYSE: AMT) and Realty Income Corp (NYSE: O) are some of the top American real estate stocks that are much more valuable than Wheeler.

Prologis focuses on so-called “logistics real estate” and American Tower is primarily concerned with communications and broadcasting infrastructure.

Meanwhile, Realty Income Corp has earned itself the nickname “the monthly dividend company” because of its unbroken track record of increasing its dividends annually for the last 25 years. It pays them out monthly.

 

Follow Mugglehead on X

Like Mugglehead on Facebook

Follow Rowan Dunne on X

rowan@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Gold

Preparations are underway for production at the Valentine Gold Mine in Q3

Gold

The renowned mining investor now has a 32.9% stake

Gold

They will have a 39% stake once Equinox completes the takeover