Core Viewpoint - The recent non-binding takeout offer for Plymouth Industrial signifies a growing trend in M&A activity within the real estate sector, driven by favorable market conditions and significant valuation disparities among REITs [1][6]. Group 1: M&A Activity Drivers - The median REIT is currently trading at 81.8% of NAV, with some REITs as low as 46% and others at 198%, creating opportunities for accretive M&A transactions [1][6]. - Strong fundamentals in REITs are evident, with 60.7% of REITs beating earnings in Q2 2025, indicating robust performance in the sector [5][6]. - There is ample capital available for acquisitions, with private equity firms and publicly traded REITs well-capitalized following the reopening of equity and debt markets post-pandemic [6][7]. Group 2: Sector-Specific Transaction Volume - Industrial REITs have been particularly active, acquiring 90 properties in 2025 for a total of $3.94 billion [8]. - In the shopping center sector, Blackstone's buyout of ROIC and 86 individual property purchases by shopping center REITs totaling $2.39 billion highlight increased M&A interest [9]. - The multifamily sector has seen significant activity, with Equity Residential acquiring a portfolio from Blackstone for $964 million and BSR REIT selling to Avalon Bay for $618 million, alongside $2.7 billion in individual asset purchases [10]. Group 3: Targeted REITs for Acquisition - Whitestone REIT is a potential target due to its trading at $12.91, significantly below its NAV of $17.88, despite strong asset performance [12][17]. - Centerspace is trading at 73.9% of NAV, with a unique portfolio that is outperforming in its markets, making it an attractive acquisition target [18][19]. - Kite Realty is noted for its large discount to NAV and strong cash flows, presenting an opportunity for accretive acquisitions [21][23]. - Farmland Partners is strategically selling assets to buy back stock, potentially leading to a full company sale in the future [24][25]. - Armada Hoffler is trading at a substantial discount to NAV, with a market price of $7.15 compared to an NAV of $12.49, indicating a significant acquisition opportunity [25][30].

Core Points - Whitestone REIT has declared a monthly cash dividend of $0.045 per share for the fourth quarter of 2025, amounting to a quarterly total of $0.135 per share and an annualized total of $0.54 per share [1] - The dividend distribution schedule includes payments in October, November, and December 2025, with record dates and payment dates specified [1] Company Overview - Whitestone REIT is a community-centered real estate investment trust that focuses on acquiring, owning, operating, and developing open-air retail centers in rapidly growing markets such as Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio [2] - The company's retail centers are designed to be convenience-focused, featuring a mix of service-oriented tenants that provide food, self-care, services, education, and entertainment to local communities [3] - The company emphasizes strong community connections and deep tenant relationships as key factors for the success of its current centers and acquisition strategy [3]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) The unaudited consolidated financial statements detail the company's financial position, performance, and cash flows for the period [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The company's assets grew to $1.156 billion, with Q2 net income rising to $5.1 million year-over-year Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total real estate assets | $1,037,316 | $1,001,689 | | Total assets | $1,155,534 | $1,134,639 | | Notes payable | $670,345 | $631,518 | | Total liabilities | $722,527 | $690,805 | | Total equity | $433,007 | $443,834 | Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $37,892 | $37,647 | $75,895 | $74,811 | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | Diluted EPS | $0.10 | $0.05 | $0.17 | $0.23 | Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,917 | $23,782 | | Net cash used in investing activities | ($50,296) | ($33,023) | | Net cash provided by financing activities | $23,333 | $7,832 | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail property holdings, the Pillarstone investment redemption, debt increases, and recent transactions - Whitestone owned **56 commercial properties** in Texas and Arizona as of June 30, 2025[36](index=36&type=chunk)[37](index=37&type=chunk) - The company is pursuing collection on its redeemed Pillarstone OP investment after Pillarstone's bankruptcy filing[38](index=38&type=chunk)[68](index=68&type=chunk)[83](index=83&type=chunk) - **Total notes payable increased to $670.3 million** from $631.5 million at year-end 2024[91](index=91&type=chunk)[94](index=94&type=chunk) - Q2 2025 real estate activity included **two acquisitions for a total of $44.4 million** and one disposition for $4.5 million[169](index=169&type=chunk)[170](index=170&type=chunk)[175](index=175&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management analyzes financial results, liquidity, and capital resources, including non-GAAP measure reconciliations [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Q2 net income rose 95% to $5.1 million, while six-month net income fell due to a prior-year property sale gain Q2 2025 vs. Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $37,892 | $37,647 | $245 | 1% | | Total Operating Expenses | $24,578 | $26,000 | ($1,422) | (5)% | | Net Income Attributable to Whitestone REIT | $5,054 | $2,592 | $2,462 | 95% | | Same Store NOI | $25,049 | $24,432 | $617 | 3% | Six Months 2025 vs. Six Months 2024 Performance (in thousands) | Metric | Six Months 2025 | Six Months 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $75,895 | $74,811 | $1,084 | 1% | | Net Income Attributable to Whitestone REIT | $8,755 | $11,932 | ($3,177) | (27)% | | Same Store NOI | $49,316 | $47,467 | $1,849 | 4% | - The decline in six-month net income was driven by a **$6.5 million gain on a property sale in 2024** not repeated in 2025[252](index=252&type=chunk) [Non-GAAP Financial Measures](index=60&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliations show Funds From Operations (FFO) increased to $13.5 million for Q2 2025 FFO and Core FFO Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | FFO (NAREIT) | $13,473 | $11,270 | $26,621 | $23,088 | | Core FFO | $13,473 | $12,589 | $26,621 | $24,845 | Property Net Operating Income (NOI) Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | NOI | $26,752 | $26,720 | $53,491 | $53,480 | [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through operating cash flow and its credit facility to cover distributions - **Operating cash flow of $16.9 million** for the first six months of 2025 covered total distributions of $13.9 million[264](index=264&type=chunk)[313](index=313&type=chunk) - The company had **$68.7 million available** under its 2022 Revolver as of June 30, 2025[265](index=265&type=chunk) - A new Form S-3 shelf registration allows for the issuance of up to **$750 million in securities**[267](index=267&type=chunk) - The quarterly distribution was **increased to $0.135 per share** effective January 2025[311](index=311&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company manages interest rate risk with 80% of its debt at fixed rates - **80% of total debt ($539.9 million)** is fixed-rate, mitigating interest rate risk[319](index=319&type=chunk) - A 1% change in interest rates would impact annual net income by an estimated **$1.3 million** on its variable-rate debt[320](index=320&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - Disclosure controls and procedures were deemed **effective** as of June 30, 2025[322](index=322&type=chunk) - No material changes to internal controls over financial reporting occurred during the quarter[323](index=323&type=chunk) [PART II - OTHER INFORMATION](index=73&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings.) Ongoing legal proceedings are not expected to have a material adverse effect on the company's financials - Ordinary course legal proceedings are not expected to have a **material adverse effect** on financial condition[324](index=324&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors have occurred since the 2024 Annual Report - No material changes to risk factors were reported since the **2024 Annual Report on Form 10-K**[326](index=326&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company repurchased 60,732 shares from employees for tax withholding purposes in Q2 2025 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | — | $— | | June 2025 | 60,732 | $12.48 | | **Total** | **60,732** | **$12.48** | - Share repurchases were conducted to satisfy employee tax withholding obligations on vested restricted shares[329](index=329&type=chunk)[334](index=334&type=chunk) [Item 5. Other Information](index=74&type=section&id=Item%205.%20Other%20Information.) No company insiders adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No trustees or officers adopted or terminated a **Rule 10b5-1 trading plan** in Q2 2025[332](index=332&type=chunk)

Financial Data and Key Metrics Changes - Core FFO per share increased by 5.4% year over year, reaching $0.26 for the quarter and $0.51 for the six months [9][25] - Same store NOI growth was 2.5% for the quarter and 3.9% for the six months, with a target range of 3% to 4.5% for the year [9][10][25] - Occupancy rose by 100 basis points sequentially from Q1 to 93.9% [4][5] Business Line Data and Key Metrics Changes - The company signed $33.2 million in total lease value, slightly up from Q1, with leasing spreads of 41.4% for new leases and 15.2% for renewals, resulting in a combined leasing spread of 17.9% for the quarter [13][25] - The addition of new tenants, such as Ace Hardware and the Pickler, is expected to enhance same store NOI growth in the future [5][14] Market Data and Key Metrics Changes - The company is focusing on high-growth Sunbelt markets, which are experiencing strong leasing environments [4][5] - Significant urban developments are occurring around the company's properties, such as the $1 billion Park 8 Place redevelopment in Houston and TSMC's $165 billion investment in Phoenix [9][20][19] Company Strategy and Development Direction - The company aims to leverage its leadership position in the high-value shop space to achieve core FFO growth of 5% to 7% and same store NOI growth of 3% to 5% [4][9] - Strategic acquisitions, such as San Clemente in Austin and South Hewlett in Fort Worth, align with the company's criteria for growth and neighborhood dynamics [6][8][21] - The company is committed to capital recycling, with an estimated $40 million in acquisitions and dispositions planned for the remainder of the year [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving future same store NOI growth due to strong leasing activity and tenant mix improvements [32][33] - The company is actively managing expenses, reducing G&A and interest expenses by about 6% from the previous year [11][28] - Management reiterated guidance for core FFO per share and year-end occupancy, indicating strong momentum heading into the second half of the year [25][26] Other Important Information - The company has a strong liquidity position with $5.3 million in cash and $69 million available under the credit facility [28] - The company is focused on maintaining a dividend payout of approximately 50% of FFO, with plans to grow the dividend in line with earnings growth [28] Q&A Session Summary Question: Concerns about same store comps in upcoming quarters - Management expressed confidence in meeting forecasts due to improved occupancy and leasing activity contributing to future same store NOI growth [30][32] Question: Impact of new tenants on same store NOI - Management indicated that new tenants like the Pickler will commence in the second half of the year, contributing minimally to same store NOI this year but expected to enhance future growth [34] Question: Details on acquisitions and dispositions - Management confirmed ongoing activities related to $40 million in acquisitions and dispositions, emphasizing the importance of capital recycling [35][36] Question: Interest expense forecast changes - Management clarified that the increase in interest expense is due to timing related to acquisitions and is expected to be offset by increased non-same store NOI [39] Question: Insights on recent acquisitions - Management highlighted the quality of neighborhoods and potential for rent increases in the recent acquisitions, indicating strong upside opportunities [42][43] Question: Cap rates and market pricing trends - Management noted stability in cap rates for recent acquisitions, with a focus on asset-specific evaluations rather than broad market trends [52][53] Question: Same store growth guidance and leasing activity - Management confirmed that the guidance is based on normal leasing activity, with a mix of routine leasing and larger spaces that will contribute to future growth [60][62]

Whitestone REIT's Strategy & Performance - Whitestone focuses on acquiring high total return potential centers, anchoring them to the community, and constantly remerchandising to drive results via capital efficiency[4] - The company targets a Core FFO growth of 4-6%, matched by sustained dividend growth, underpinned by 3-5% Same Store NOI growth[11] - Whitestone aims to enhance Core FFO growth to 5-7% by adding accretive acquisitions with short-term lease up opportunities[11] - The company's strategy involves scaling the Whitestone model to reduce fixed costs and broaden the investor base[11] Financial Highlights & Metrics - Whitestone reported Q2 2025 revenue of $37.9 million, compared to $37.6 million in Q2 2024[8] - Core FFO per share was $0.26 in Q2 2025, up from $0.24 in Q2 2024[8] - Straight Line Leasing Spreads were 17.9% in Q2 2025, compared to 17.5% in Q2 2024[8] - The company's occupancy rate was 93.9% in Q2 2025, slightly up from 93.5% in Q2 2024[8] - Whitestone's Debt/EBITDAre ratio has improved to 7.1x, a 2.0x improvement versus 2021[8] Shop Space & Leasing - 77% of Whitestone's Total Annual Base Rent (ABR) is driven by small shop space tenants under 10,000 square feet[8, 32] - Whitestone's leasing spreads have shown strong performance, with Q2 2025 at 17.9%[5, 8] - The company forecasts a sustainable Same Store NOI growth of 3-5%, driven by contractual escalators (2.3%), leasing (0.8-1.8%), and redevelopment (up to 1.0%)[12, 13] Acquisitions & Dispositions - Whitestone has acquired approximately $153 million in property since Q4 2022, including S Hulen in Ft Worth and San Clemente in Austin in Q2 2025[26] - The company has completed approximately $126 million in dispositions since Q4 2022, including Woodlake in Houston in Q2 2025[26]

分组1 - Whitestone reported quarterly funds from operations (FFO) of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.24 per share a year ago, representing an FFO surprise of +4.00% [1] - The company posted revenues of $37.89 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 3.34%, compared to year-ago revenues of $37.65 million [2] - Over the last four quarters, Whitestone has surpassed consensus FFO estimates three times and topped consensus revenue estimates two times [2] 分组2 - The current consensus FFO estimate for the coming quarter is $0.27 on revenues of $40.2 million, and for the current fiscal year, it is $1.06 on revenues of $159.1 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] 分组3 - Whitestone shares have underperformed the market, losing about 10.5% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The estimate revisions trend for Whitestone was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

[Corporate Profile](index=3&type=section&id=Corporate%20Profile) This section introduces Whitestone REIT, detailing its business model, market focus, and key operational and financial statistics [Company Overview](index=3&type=section&id=2.1%20Company%20Overview) Whitestone REIT (NYSE: WSR) is a community-centered shopping center REIT focused on acquiring, owning, managing, developing, and redeveloping high-quality open-air neighborhood centers primarily in the largest, fastest-growing, and high-household-income markets in the Sun Belt - Whitestone REIT is a community-centered shopping center REIT operating in Sun Belt markets, focusing on high-quality open-air neighborhood centers[6](index=6&type=chunk) - The company invests in properties that are or can become Community Centered Properties®, targeting smaller rental spaces for attractive returns[7](index=7&type=chunk) - Whitestone has a diverse tenant base concentrated on service offerings (specialty retail, grocery, restaurants, medical, educational, financial services, entertainment), with smaller spaces (less than 10,000 sq ft) commanding a **95% premium rental rate**[9](index=9&type=chunk) Common Shares and Operating Data | Metric | Value | | :-------------------------------- | :------------------- | | Common Shares Outstanding | 51.0 million | | Operating Partnership Units Outstanding | 0.6 million | | Distribution (per share / unit) - Quarter | $0.135 | | Distribution (per share / unit) - Annualized | $0.54 | | Dividend Yield (as of July 28, 2025) | 4.37% | | Number of Community Centers | 56 | | Gross Leasable Area (GLA) | 4.9 million sq. ft. | | Number of Tenants | 1,456 | | Fiscal Year End | 12/31 | [Second Quarter 2025 Earnings Release](index=4&type=section&id=Second%20Quarter%202025%20Earnings%20Release) This section presents Whitestone REIT's strong Q2 2025 financial and operational performance, reiterating full-year guidance and providing details for the earnings conference call [Q2 2025 Performance Highlights and Guidance](index=4&type=section&id=2.1%20Q2%202025%20Performance%20Highlights%20and%20Guidance) Whitestone REIT reported a strong second quarter 2025, with Core FFO per share increasing by 5.4% year-over-year, occupancy growing to 93.9%, and average base rent per leased square foot rising by 5.3% - CEO Dave Holeman highlighted a strong quarter with a **5.4% year-over-year increase in Core FFO per share**, **100bps occupancy growth** from Q1-25 to **93.9%**, and a **5.3% year-over-year increase in average base rent per leased square foot** to **$25.28**[13](index=13&type=chunk) - The company is reiterating its Core FFO per share and Same Store Net Operating Income guidance for the full year 2025[13](index=13&type=chunk) Second Quarter 2025 Operating Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------- | :------ | :------ | :----- | | Occupancy - Wholly Owned Properties | 93.9% | 93.5% | +0.4% | | Same Store Property NOI Change | 2.5% | 6.6% | -4.1% | | Rental Rate Growth - Total (GAAP Basis) | 17.9% | 17.5% | +0.4% | | New Leases - Rental Rate Growth | 41.4% | 33.3% | +8.1% | | Renewal Leases - Rental Rate Growth | 15.2% | 13.9% | +1.3% | | Number of New Leases | 24 | 30 | -6 | | New Leases - Lease Term Revenue (millions) | $8.9 | $16.1 | -$7.2 | | Number of Renewal Leases | 54 | 47 | +7 | | Renewal Leases - Lease Term Revenue (millions) | $24.3 | $20.7 | +$3.6 | Second Quarter 2025 Financial Results (in millions) | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change | | :------------------------------------- | :----------------- | :----------------- | :----- | | Revenues | $37.9 | $37.6 | +$0.3 | | Net Income attributable to common shareholders | $5.1 | $2.6 | +$2.5 | | Net Income per diluted share | $0.10 | $0.05 | +$0.05 | | Core FFO | $13.5 | $12.6 | +$0.9 | | FFO per diluted share | $0.26 | $0.22 | +$0.04 | | Core FFO per diluted share | $0.26 | $0.24 | +$0.02 | | EBITDAre | $21.9 | $20.2 | +$1.7 | | Same-Store NOI | $25.0 | $24.4 | +$0.6 | | Net Effective Annual Base Rental Revenue per leased sq ft | $25.28 | N/A | +5.3% YoY | Year-to-Date 2025 Financial Results (in millions) | Metric | YTD 2025 (millions) | YTD 2024 (millions) | Change | | :------------------------------------- | :------------------ | :------------------ | :----- | | Revenues | $75.9 | $74.8 | +$1.1 | | Net Income attributable to common shareholders | $8.8 | $11.9 | -$3.1 | | Net Income per diluted share | $0.17 | $0.23 | -$0.06 | | Core FFO | $26.6 | $24.8 | +$1.8 | | FFO per diluted share | $0.51 | $0.45 | +$0.06 | | Core FFO per diluted share | $0.51 | $0.48 | +$0.03 | | EBITDAre | $43.3 | $40.7 | +$2.6 | | Same-Store NOI | $49.3 | $47.5 | +$1.8 | - A quarterly cash distribution of **$0.135 per common share and OP unit** was declared for Q3 2025, payable in three equal installments[19](index=19&type=chunk) 2025 Full Year Guidance Update | Metric | Q2 2025 Revised Guidance | 2025 Original Guidance | | :------------------------------------- | :----------------------- | :--------------------- | | Net income attributable to Whitestone REIT | $17,135 - $19,219 | $17,135 - $19,219 | | Core FFO | $54,158 - $56,268 | $54,158 - $56,268 | | Net income attributable to Whitestone REIT per share | $0.33 - $0.37 | $0.33 - $0.37 | | Core FFO per diluted share and OP Unit | $1.03 - $1.07 | $1.03 - $1.07 | | Same store net operating income growth | 3.0% - 4.5% | 3.0% - 4.5% | | Bad debt as a percentage of revenue | 0.75% - 1.00% | 0.75% - 1.00% | | General and administrative expense | $20,800 - $22,800 | $20,800 - $22,800 | | Interest expense | $33,000 - $34,000 | $32,000 - $33,000 | | Ending occupancy | 94.0% - 95.0% | 94.0% - 95.0% | - As of June 30, 2025, Whitestone wholly owned **56 Community-Centered Properties™** (**4.9 million sq ft GLA**), with 5 land parcels for future development[21](index=21&type=chunk) - The portfolio is concentrated in Texas (32 properties) and Arizona (24 properties), specifically in high-traffic, high-household-income MSA's of Austin, Dallas-Fort Worth, Houston, Phoenix, and San Antonio[21](index=21&type=chunk) - Total debt as of June 30, 2025, was **$671.2 million**, with **$68.7 million capacity and availability** under its $250 million revolving credit facility[23](index=23&type=chunk) - Undepreciated real estate assets stood at **$1.3 billion**[23](index=23&type=chunk) [Conference Call and Supplemental Information](index=6&type=section&id=2.2%20Conference%20Call%20and%20Supplemental%20Information) Whitestone REIT announced details for its Q2 2025 earnings conference call, providing access information for both live broadcast and replay - The Q2 2025 earnings conference call was scheduled for Thursday, July 31, 2025, at **8:30 A.M. Eastern Time / 7:30 A.M. Central Time**, led by CEO Dave Holeman[25](index=25&type=chunk) - Webcast and telephone replay information was provided for participants, with the replay available until August 15, 2025[25](index=25&type=chunk)[26](index=26&type=chunk) - Supplemental financial information and the earnings release are accessible on the Investor Relations section of the company's website[27](index=27&type=chunk) [Financial Results](index=7&type=section&id=Financial%20Results) This section details Whitestone REIT's financial statements, including balance sheets, statements of operations, and cash flows, alongside disclosures on forward-looking statements and non-GAAP measures [Forward-Looking Statements and Non-GAAP Measures](index=7&type=section&id=3.1%20Forward-Looking%20Statements%20and%20Non-GAAP%20Measures) This section outlines the forward-looking nature of the report, detailing various risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements subject to risks including REIT status, economic conditions, real estate market fluctuations, interest rate changes, natural disasters, and geopolitical conflicts[31](index=31&type=chunk)[32](index=32&type=chunk) - Non-GAAP financial measures like EBITDAre, FFO, Core FFO, NOI, Same Store NOI, and Net Debt are used to provide supplemental insights into operating performance and liquidity, as GAAP net income alone has limitations for real estate companies[33](index=33&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) - Core FFO specifically removes the impact of certain non-recurring and non-operating transactions not considered representative of core operating results, such as proxy contest costs[37](index=37&type=chunk) [Consolidated Balance Sheets](index=9&type=section&id=3.2%20Consolidated%20Balance%20Sheets) The consolidated balance sheets present the financial position of Whitestone REIT and its subsidiaries as of June 30, 2025, and December 31, 2024, showing a slight increase in total assets and liabilities Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Total real estate assets (net) | $1,037,316 | $1,001,689 | | Cash and cash equivalents | $5,324 | $5,224 | | Total assets | $1,155,534 | $1,134,639 | | **LIABILITIES AND EQUITY** | | | | Notes payable | $670,345 | $631,518 | | Total liabilities | $722,527 | $690,805 | | Total Whitestone REIT shareholders' equity | $427,513 | $438,153 | | Total equity | $433,007 | $443,834 | | Total liabilities and equity | $1,155,534 | $1,134,639 | Accrued Rents and Accounts Receivable (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Tenant receivables | $16,734 | $17,285 | | Accrued rents and other recoveries | $28,331 | $29,964 | | Allowance for doubtful accounts | ($13,524) | ($14,720) | | Total accrued rents and accounts receivable, net | $32,508 | $33,820 | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=11&type=section&id=3.3%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) The consolidated statements of operations show an increase in net income attributable to Whitestone REIT for the three months ended June 30, 2025, compared to the prior year, driven by stable revenues and reduced general and administrative expenses Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $37,892 | $37,647 | $75,895 | $74,811 | | Total operating expenses | $24,578 | $26,000 | $50,609 | $51,567 | | Interest expense | $8,291 | $8,788 | $16,388 | $17,307 | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | Basic Earnings Per Share | $0.10 | $0.05 | $0.17 | $0.24 | | Diluted Earnings Per Share | $0.10 | $0.05 | $0.17 | $0.23 | Rental Revenue Breakdown (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rental revenues | $27,850 | $27,372 | $55,055 | $54,236 | | Recoveries | $10,236 | $10,194 | $20,745 | $20,671 | | Bad debt | ($405) | ($86) | ($724) | ($686) | | Total rental | $37,681 | $37,480 | $75,076 | $74,221 | [Consolidated Statements of Cash Flows](index=14&type=section&id=3.4%20Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows show a decrease in net cash provided by operating activities for the six months ended June 30, 2025, compared to the prior year Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $16,917 | $23,782 | | Net cash used in investing activities | ($50,296) | ($33,023) | | Net cash provided by financing activities | $23,333 | $7,832 | | Net decrease in cash, cash equivalents and restricted cash | ($10,046) | ($1,409) | | Cash, cash equivalents and restricted cash at end of period | $5,324 | $3,231 | Supplemental Cash Flow Disclosures (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :----------------------------- | :----------------------------- | | Cash paid for interest | $16,522 | $17,013 | | Cash paid for taxes | $457 | $432 | | Disposal of fully depreciated real estate | $280 | $45 | | Change in fair value of cash flow hedge | ($5,481) | $5,650 | | Accrued capital expenditures | $719 | $1,629 | | Recognition of operating lease liability | $1,220 | — | [Reconciliation of Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP net income to key non-GAAP financial metrics, including FFO, Core FFO, NOI, Same Store NOI, and EBITDAre, along with full-year guidance [FFO (NAREIT) and Core FFO](index=16&type=section&id=4.1%20FFO%20%28NAREIT%29%20and%20Core%20FFO) This section reconciles Net Income attributable to Whitestone REIT to FFO (NAREIT) and Core FFO, showing an increase in both FFO and Core FFO for the three and six months ended June 30, 2025 FFO (NAREIT) and Core FFO (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | FFO (NAREIT) | $13,473 | $11,270 | $26,621 | $23,088 | | Core FFO | $13,473 | $12,589 | $26,621 | $24,845 | | FFO per common share and OP unit - diluted | $0.26 | $0.22 | $0.51 | $0.45 | | Core FFO per common share and OP unit - diluted | $0.26 | $0.24 | $0.51 | $0.48 | [Property Net Operating Income (NOI)](index=17&type=section&id=4.2%20Property%20Net%20Operating%20Income%20%28NOI%29) This section reconciles Net Income attributable to Whitestone REIT to Net Operating Income (NOI) and Same Store NOI, reflecting improved property operating performance Property Net Operating Income (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | NOI | $26,752 | $26,720 | $53,491 | $53,480 | | Same Store NOI | $25,049 | $24,432 | $49,316 | $47,467 | [Earnings Before Interest, Tax, Depreciation and Amortization for Real Estate (EBITDAre)](index=18&type=section&id=4.3%20Earnings%20Before%20Interest%2C%20Tax%2C%20Depreciation%20and%20Amortization%20for%20Real%20Estate%20%28EBITDAre%29) This section reconciles Net Income attributable to Whitestone REIT to EBITDAre, indicating improved operational profitability before non-operating items EBITDAre (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | EBITDAre | $21,866 | $20,172 | $43,262 | $40,713 | [Initial Full Year Guidance for 2025](index=19&type=section&id=4.4%20Initial%20Full%20Year%20Guidance%20for%202025) This section provides the projected ranges for Whitestone REIT's full-year 2025 financial performance, including Net Income, FFO, and Core FFO Projected Full Year 2025 Guidance (in thousands, except per share data) | Metric | Low Range | High Range | | :------------------------------------- | :-------- | :--------- | | Net income attributable to Whitestone REIT | $17,135 | $19,219 | | FFO | $54,158 | $56,268 | | Core FFO | $54,158 | $56,268 | | Net income attributable to Whitestone REIT per diluted share | $0.33 | $0.37 | | FFO per diluted share and OP Unit | $1.03 | $1.07 | | Core FFO per diluted share and OP Unit | $1.03 | $1.07 | - Guidance excludes the operational or capital impact of any future unannounced acquisition or disposition activity or the collection of amounts from the Pillarstone bankruptcy[67](index=67&type=chunk) [Same Store Property Analysis](index=20&type=section&id=Same%20Store%20Property%20Analysis) This section analyzes the performance of Whitestone REIT's same-store properties for Q2 and year-to-date 2025, detailing changes in revenues, expenses, and Net Operating Income [Q2 2025 Same Store Property Analysis](index=20&type=section&id=5.1%20Q2%202025%20Same%20Store%20Property%20Analysis) The Same Store Property Analysis for the second quarter of 2025, covering 47 properties, shows a 2% increase in total property revenues and a 3% increase in total property expenses Same Store Property Analysis (47 properties, in thousands) | Metric | Q2 2025 | Q2 2024 | Increase (Decrease) | % Increase (Decrease) | | :------------------------------------- | :------ | :------ | :------------------ | :-------------------- | | Rental revenues | $36,492 | $35,767 | $725 | 2% | | Total property revenues | $36,701 | $35,932 | $769 | 2% | | Property operation and maintenance | $6,884 | $6,560 | $324 | 5% | | Real estate taxes | $3,846 | $3,848 | ($2) | 0% | | Total property expenses | $10,730 | $10,408 | $322 | 3% | | Total property revenues less total property expenses | $25,971 | $25,524 | $447 | 2% | | Same Store NOI | $25,049 | $24,432 | $617 | 3% | - Same Store lease termination fees increased significantly from **$1 thousand in Q2 2024 to $19 thousand in Q2 2025**, an **1800% increase**[70](index=70&type=chunk) [YTD 2025 Same Store Property Analysis](index=21&type=section&id=5.2%20YTD%202025%20Same%20Store%20Property%20Analysis) The Year-to-Date 2025 Same Store Property Analysis, covering 46 properties, shows a 3% increase in total property revenues and a 5% increase in total property expenses Same Store Property Analysis (46 properties, in thousands) | Metric | YTD 2025 | YTD 2024 | Increase (Decrease) | % Increase (Decrease) | | :------------------------------------- | :------- | :------- | :------------------ | :-------------------- | | Rental revenues | $71,655 | $69,646 | $2,009 | 3% | | Total property revenues | $72,456 | $70,232 | $2,224 | 3% | | Property operation and maintenance | $13,450 | $12,335 | $1,115 | 9% | | Real estate taxes | $7,797 | $7,809 | ($12) | 0% | | Total property expenses | $21,247 | $20,144 | $1,103 | 5% | | Total property revenues less total property expenses | $51,209 | $50,088 | $1,121 | 2% | | Same Store NOI | $49,316 | $47,467 | $1,849 | 4% | - Same Store lease termination fees increased by **65% year-over-year** for the six months ended June 30, 2025[72](index=72&type=chunk) [Other Financial Information](index=22&type=section&id=Other%20Financial%20Information) This section provides additional financial and operational data, including capital expenditures, debt payments, non-cash expenses, and property statistics [Key Financial Metrics and Operational Data](index=22&type=section&id=6.1%20Key%20Financial%20Metrics%20and%20Operational%20Data) This section provides a snapshot of various financial and operational metrics for Whitestone REIT, including capital expenditures, debt payments, non-cash expenses, and property statistics Other Financial Information (in thousands, except number of properties and employees) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | Tenant improvements | $808 | $510 | $2,373 | $1,223 | | Leasing commissions | $611 | $726 | $1,262 | $1,480 | | Maintenance capital | $1,516 | $1,429 | $3,143 | $1,694 | | Scheduled debt principal payments | — | $231 | — | $718 | | Scheduled bond principal payment | — | $7,143 | $17,143 | $7,143 | | Straight-line rent income | $740 | $897 | $1,476 | $1,782 | | Non-cash share-based compensation expense | $1,044 | $888 | $2,176 | $1,824 | | Undepreciated value of unencumbered properties | $1,037,861 | $939,709 | $1,037,861 | $939,709 | | Number of unencumbered properties | 52 | 50 | 52 | 50 | | Full time employees | 69 | 76 | 69 | 76 | - Annual bond principal payments for Series A Notes began in March 2023, and for Series B Notes in March 2025[75](index=75&type=chunk) [Market Capitalization and Selected Ratios](index=23&type=section&id=Market%20Capitalization%20and%20Selected%20Ratios) This section details Whitestone REIT's market capitalization and key financial ratios, including interest coverage and leverage, as of June 30, 2025 [Market Capitalization](index=23&type=section&id=7.1%20Market%20Capitalization) As of June 30, 2025, Whitestone REIT's total market capitalization was approximately $1.3 billion, with equity and debt capitalization each representing 50% of the total Market Capitalization as of June 30, 2025 (in thousands) | Metric | Amount | Percent of Total Market Capitalization | | :------------------------------------- | :------- | :----------------------------------- | | Total equity capitalization | $644,717 | 50% | | Total debt capitalization | $652,254 | 50% | | Total Market Capitalization | $1,296,971 | 100% | - Common shares outstanding were **51,017 thousand**, and operating partnership units outstanding were **643 thousand**[78](index=78&type=chunk) [Selected Ratios](index=23&type=section&id=7.2%20Selected%20Ratios) Whitestone REIT's interest coverage ratio improved to 2.7 for Q2 and YTD 2025, up from 2.4 in the prior year Interest Coverage Ratio | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | EBITDAre | $21,866 | $20,172 | $43,262 | $40,713 | | Interest expense, excluding amortization of loan fees | $8,010 | $8,519 | $15,827 | $16,814 | | Ratio of EBITDAre to interest expense | 2.7 | 2.4 | 2.7 | 2.4 | Leverage Ratio (as of June 30, in thousands) | Metric | 2025 | 2024 | | :------------------------------------- | :----- | :----- | | Total Net Debt | $652,254 | $648,068 | | Undepreciated real estate assets | $1,294,319 | $1,258,799 | | Ratio of debt to real estate assets | 50% | 51% | Debt/EBITDAre Ratio (in thousands) | Metric | Q2 2025 | Q2 2024 | LTM 2025 | LTM 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | Total Net Debt | $652,254 | $648,068 | $652,254 | $648,068 | | Pro forma EBITDAre (annualized for Q2) | $89,392 | $80,780 | $90,058 | $83,270 | | Ratio of debt to pro forma EBITDAre | 7.3 | 8.0 | 7.2 | 7.8 | [Summary of Outstanding Debt and Debt Maturities](index=25&type=section&id=Summary%20of%20Outstanding%20Debt%20and%20Debt%20Maturities) This section outlines Whitestone REIT's total outstanding debt, its composition of fixed and floating rates, and the detailed maturity schedule as of June 30, 2025 [Debt Portfolio and Maturity Schedule](index=25&type=section&id=8.1%20Debt%20Portfolio%20and%20Maturity%20Schedule) As of June 30, 2025, Whitestone REIT's total outstanding debt was $671.2 million, comprising a mix of fixed and floating rate notes Total Outstanding Debt (in thousands) | Description | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Fixed rate notes | $519,911 | $502,483 | | Floating rate notes (Unsecured line of credit) | $131,300 | $75,000 | | Total notes payable principal | $671,211 | $632,483 | | Less deferred financing costs, net | ($866) | ($965) | | Total notes payable | $670,345 | $631,518 | Schedule of Debt Maturities as of June 30, 2025 (in thousands) | Year | Amount Due | | :------------------------------------- | :--------- | | 2025 (remaining) | — | | 2026 | $198,443 | | 2027 | $97,414 | | 2028 | $302,823 | | 2029 | $17,867 | | Thereafter | $54,664 | | Total | $671,211 | [Summary of Top Tenants](index=26&type=section&id=Summary%20of%20Top%20Tenants) This section highlights Whitestone REIT's diversified tenant base, with the largest tenant contributing a minimal percentage to annualized rental revenue [Top Tenant Contributions and Lease Details](index=26&type=section&id=9.1%20Top%20Tenant%20Contributions%20and%20Lease%20Details) Whitestone REIT's tenant base is highly diversified, with the largest tenant, Whole Foods Market, accounting for only 2.2% of annualized rental revenue - The largest of Whitestone's **1,456 tenants** comprised only **2.2% of annualized revenues** for the three months ended June 30, 2025, indicating a diversified tenant base[9](index=9&type=chunk) Summary of Top Tenants (as of June 30, 2025, in thousands) | Tenant Name | Location | Annualized Rental Revenue | Percentage of Total Annualized Base Rental Revenues | | :------------------------------------- | :----------------------- | :------------------------ | :-------------------------------------------------- | | Whole Foods Market | Houston | $2,471 | 2.2% | | Albertsons Companies, Inc. | Austin and Phoenix | $2,347 | 2.1% | | Frost Bank | Houston | $1,961 | 1.7% | | Fitness Alliance, LLC | Houston and San Antonio | $1,800 | 1.6% | | Newmark Real Estate of Houston LLC | Houston | $1,337 | 1.2% | | Barnes & Noble Booksellers, Inc. | Phoenix and Dallas | $898 | 0.8% | | Walgreens & Co. | Houston and Phoenix | $767 | 0.7% | | Cactus Café Uptown Houston, Inc. | Houston | $758 | 0.7% | | Alamo Drafthouse Cinema | Austin | $740 | 0.7% | | Dollar Tree | Houston and Phoenix | $685 | 0.6% | | Soul Concepts, LLC | Phoenix | $671 | 0.6% | | Starbucks Corporation | Dallas and Phoenix | $635 | 0.6% | | Total Wine | Houston | $564 | 0.5% | | Kroger Co. | Dallas | $483 | 0.4% | | Capital Area Multispecialty Providers | Austin | $465 | 0.4% | | **Total Top 15 Tenants** | | **$16,582** | **14.8%** | [Tenant Type Summary](index=28&type=section&id=Tenant%20Type%20Summary) This section categorizes Whitestone REIT's tenant portfolio by type, showcasing diversification across service-oriented segments, with Restaurants & Food Service as the largest contributor [Diversification by Tenant Category](index=28&type=section&id=10.1%20Diversification%20by%20Tenant%20Category) Whitestone REIT's tenant portfolio is diversified across various service-oriented categories, with Restaurants & Food Service being the largest segment, contributing 21% of leased square footage and 28% of annualized base rent Tenant Type Summary (as of June 30, 2025) | Tenant Type | % of Leased SF | % of ABR | | :------------------------------------- | :------------- | :------- | | Restaurants & Food Service | 21% | 28% | | Salons | 7% | 9% | | Medical & Dental | 6% | 8% | | Grocery | 12% | 7% | | Financial Services | 5% | 6% | | Fitness | 7% | 6% | | Apparel | 5% | 5% | | General Retail | 7% | 5% | | Non Retail | 3% | 4% | | Home Décor And Improvement | 5% | 4% | | Education | 4% | 3% | | Pet Supply & Services | 3% | 3% | | Off-Price | 3% | 2% | | Local Services | 2% | 2% | | Entertainment | 3% | 2% | | Pharmacies & Nutritional Supplies | 2% | 2% | | Sporting Goods | 2% | 1% | | Wireless | 1% | 1% | | Automotive Supply & Services | 1% | 1% | | Postal Services | 1% | 1% | | **Total** | **100%** | **100%** | [Summary of Leasing Activity](index=29&type=section&id=Summary%20of%20Leasing%20Activity) This section provides an overview of Whitestone REIT's leasing performance for Q2 and YTD 2025, detailing new leases, renewals, and comparable rent growth [Leasing Activity Overview](index=29&type=section&id=11.1%20Leasing%20Activity%20Overview) Whitestone REIT's leasing activity for Q2 2025 included 78 total leases, covering 297,146 square feet with a total lease value of $33.18 million Summary of Leasing Activity (Q2 and YTD, 2025 vs 2024) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | **RENEWALS** | | | | | | Number of Leases | 54 | 47 | 116 | 93 | | Total Square Feet | 251,960 | 232,713 | 410,151 | 370,309 | | Total Lease Value | $24,277,000 | $20,730,000 | $45,572,000 | $31,406,000 | | **NEW LEASES** | | | | | | Number of Leases | 24 | 30 | 46 | 54 | | Total Square Feet | 45,186 | 78,355 | 86,605 | 133,108 | | Total Lease Value | $8,903,000 | $16,094,000 | $18,859,000 | $23,927,000 | | **TOTAL LEASES** | | | | | | Number of Leases | 78 | 77 | 162 | 147 | | Total Square Feet | 297,146 | 311,068 | 496,756 | 503,417 | | Total Lease Value | $33,180,000 | $36,824,000 | $64,431,000 | $55,333,000 | [Comparable Leasing Activity](index=30&type=section&id=11.2%20Comparable%20Leasing%20Activity) Comparable leasing activity for Q2 2025 showed an 8.1% increase in contractual rent on a cash basis and a 17.9% increase on a straight-lined basis for total comparable leases Comparable Total Leases (Q2 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Number of Leases Signed | 55 | | GLA Signed | 222,116 | | Weighted Average Lease Term | 4.4 years | | TI and Incentives Per Sq. Ft. | $2.87 | | Increase in Contractual Rent (Cash Basis) | 8.1% | | Increase in Straight-lined Rent (Straight-lined Basis) | 17.9% | Comparable New Leases (Q2 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Number of Leases Signed | 8 | | GLA Signed | 13,283 | | Weighted Average Lease Term | 6.2 years | | TI and Incentives Per Sq. Ft. | $36.04 | | Increase in Contractual Rent (Cash Basis) | 25.3% | | Increase in Straight-lined Rent (Straight-lined Basis) | 41.4% | Comparable Renewal Leases (Q2 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Number of Leases Signed | 47 | | GLA Signed | 208,833 | | Weighted Average Lease Term | 4.3 years | | TI and Incentives Per Sq. Ft. | $0.76 | | Increase in Contractual Rent (Cash Basis) | 6.3% | | Increase in Straight-lined Rent (Straight-lined Basis) | 15.2% | [Lease Expirations](index=32&type=section&id=Lease%20Expirations) This section presents Whitestone REIT's lease expiration schedule, detailing the percentage of Gross Leasable Area and Annualized Base Rent expiring in upcoming years [Lease Expiration Schedule](index=32&type=section&id=12.1%20Lease%20Expiration%20Schedule) The lease expiration schedule as of June 30, 2025, indicates that 6.4% of Gross Leasable Area (GLA) and 6.7% of Annualized Base Rent (ABR) are set to expire in the remainder of 2025 Lease Expirations by Year (as of June 30, 2025) | Year | Number of Leases | Gross Leasable Area (sq ft) | Percent of Gross Leasable Area | Annualized Base Rent (in thousands) | Percent of Total ABR | Per Square Foot | | :------------------------------------- | :--------------- | :-------------------------- | :----------------------------- | :---------------------------------- | :------------------- | :-------------- | | 2025 | 309 | 313,866 | 6.4% | $7,614 | 6.7% | $24.26 | | 2026 | 224 | 584,867 | 12.0% | $14,772 | 13.0% | $25.26 | | 2027 | 209 | 684,510 | 14.1% | $16,978 | 15.0% | $24.80 | | 2028 | 184 | 577,217 | 11.8% | $14,842 | 13.1% | $25.71 | | 2029 | 165 | 660,466 | 13.6% | $16,192 | 14.3% | $24.52 | | 2030 | 166 | 597,192 | 12.3% | $14,434 | 12.7% | $24.17 | | Total | 1,396 | 4,175,834 | 85.7% | $103,063 | 91.0% | $24.68 | - The table reflects rents in place as of June 30, 2025, and does not include option periods[107](index=107&type=chunk) [Property Details](index=33&type=section&id=Property%20Details) This section provides an overview of Whitestone REIT's wholly-owned property portfolio, including total GLA, occupancy rates, and geographical concentration [Wholly-Owned Property Portfolio Overview](index=33&type=section&id=13.1%20Wholly-Owned%20Property%20Portfolio%20Overview) Whitestone REIT's portfolio consists of 56 wholly-owned properties, totaling 4,871,932 square feet of Gross Leasable Area with an average occupancy of 94% as of June 30, 2025 Summary of Whitestone Properties (as of June 30, 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Total Gross Leasable Area | 4,871,932 sq ft | | Weighted Average Percent Occupied | 94% | | Total Annualized Base Rental Revenue | $113,292,000 | | Weighted Average Base Rental Revenue Per Sq. Ft. | $24.74 | | Weighted Average Net Effective Annual Base Rent Per Leased Sq. Ft. | $25.28 | - The portfolio includes **56 Community-Centered Properties™**, with **5 land parcels** held for future development[21](index=21&type=chunk)[113](index=113&type=chunk) - Properties are located in the MSA's of Austin (7), Dallas-Fort Worth (10), Houston (12), Phoenix (24), and San Antonio (3)[21](index=21&type=chunk)

Core Viewpoint - Whitestone REIT reported strong operating and financial results for Q2 2025, highlighting growth in Core FFO per share, occupancy rates, and average base rent, driven by a favorable leasing environment in high-growth markets [2][7][19]. Financial Performance - Revenues for Q2 2025 were $37.9 million, up from $37.6 million in Q2 2024 [7]. - Net income attributable to common shareholders increased to $5.1 million, or $0.10 per diluted share, compared to $2.6 million, or $0.05 per diluted share in Q2 2024 [7]. - Core FFO for Q2 2025 was $13.5 million, up from $12.6 million in Q2 2024, with Core FFO per diluted share rising to $0.26 from $0.24 [7]. - EBITDAre for Q2 2025 was $21.9 million, compared to $20.2 million in Q2 2024 [7]. Operational Highlights - Occupancy rate for wholly owned properties increased to 93.9% in Q2 2025 from 93.5% in Q2 2024 [6]. - Same-Store Net Operating Income (NOI) grew by 2.5% to $25.0 million compared to $24.4 million in Q2 2024 [7]. - Average base rent per leased square foot increased by 5.3% year-over-year to $25.28 [7]. Year-to-Date Results - Year-to-date revenues reached $75.9 million, up from $74.8 million in the same period of 2024 [7]. - Year-to-date net income attributable to common shareholders was $8.8 million, or $0.17 per diluted share, compared to $11.9 million, or $0.23 per diluted share in the same period of 2024 [7]. - Year-to-date Core FFO was $26.6 million, up from $24.8 million in the same period of 2024, with Core FFO per diluted share increasing to $0.51 from $0.48 [7]. Guidance and Future Outlook - The company reiterated its guidance for Core FFO per share and Same Store NOI growth for the year, expecting net income attributable to Whitestone REIT to be in the range of $17.1 million to $19.2 million [10][11]. - The company anticipates Same Store NOI growth of 3.0% to 4.5% for the full year [11]. Portfolio and Market Position - As of June 30, 2025, Whitestone owned 56 Community-Centered Properties™ with a total gross leasable area of 4.9 million square feet, primarily located in Texas and Arizona [15]. - The diversified tenant base consisted of 1,456 tenants, with the largest tenant accounting for only 2.2% of annualized base rental revenues [16].

Core Insights - Whitestone REIT (NYSE: WSR) is relatively undercovered in the small-cap REIT sector, yet it has developed a data-driven strategy to enhance its relevance and scale [1] Company Overview - Whitestone REIT has a focus on executing a deliberate strategy that leverages data to drive its operations and growth [1] Investment Strategy - The investment approach combines growth stocks, quality stalwarts, and dividend growth (DRIP) to create a balanced portfolio aimed at outperforming the market [1] Analyst Background - The analyst has a master's in economics and 15 years of experience in both public and private sectors, providing a global perspective on investment insights [1] Educational Contribution - The analyst is involved in teaching investing, micro, and macroeconomics, aiming to guide the next generation of investors in understanding financial market fundamentals [1]

Core Viewpoint - Whitestone REIT will release its financial results for Q2 2025 on July 30, 2025, after market close [1] - A conference call to discuss the results will be held on July 31, 2025, at 8:30 A.M. Eastern Time [2] Financial Results Announcement - The financial results for the second quarter ended June 30, 2025, will be announced after market close on July 30, 2025 [1] - The conference call will be led by the CEO, Dave Holeman, and will include a live webcast [2] Conference Call Details - Domestic dial-in number for participants is 1-877-407-0784, and for international participants, it is 1-201-689-8560 [2] - The passcode for the call is 13747766 [2] - A replay of the conference call will be available until August 15, 2025 [3] Company Overview - Whitestone REIT is a community-centered real estate investment trust that focuses on acquiring, owning, operating, and developing open-air retail centers [4] - The company operates in rapidly growing markets including Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio [4] - The centers are designed to be convenience-focused, featuring a mix of service-oriented tenants [5] Tenant Relationships - The company emphasizes strong community connections and deep tenant relationships as key to its success [5]