Wheeler Real Estate Investment Trust (WHLRD), mcap=$13m, price $13.59 vs $14.00

D pitch:
– REIT preferreds trading at a 60% discount to liquidation value.
– Puttable by holders on Sep’23.
– Preferreds are in the money at a 6.5% cap rate.
– The company might attempt to tender for Series D preferreds before Sep’23
– Otherwise, holders will convert to common.

D valuation:
– Both tender and conversion scenarios result in low 20s Series D preferred price providing 40-50% upside.

Exp. gain: +40-50% to $21-24/share

Full WHLRD write-up (free guest account required):

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