Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may face access issues if they have an ad-blocker enabled, suggesting the need to disable it for a better experience [1]

Core Insights - Whitestone REIT (WSR) has acquired Ashford Village, an 81,407-square-foot grocery-anchored shopping center in Houston, marking its 10th shopping center in the market [2] Company Summary - The acquisition of Ashford Village is significant as it is anchored by Seiwa Market, which is noted to be the largest Japanese grocery in the area [2]

Core Insights - Whitestone REIT has acquired Ashford Village, an 81,407 square-foot grocery-anchored shopping center in Houston, enhancing its portfolio in a strategic location near the Energy Corridor, which is home to 8 Fortune 500 companies [1][4][6] - The acquisition aligns with Whitestone's strategy to capitalize on strong market fundamentals and cater to the area's significant Asian community through diverse tenant offerings [4][5] Company Overview - Whitestone REIT focuses on neighborhood shopping centers in Texas and Arizona, emphasizing community-centered retail experiences [7][8] - The company aims to enhance shareholder value by expanding its portfolio in high-performing markets, with Ashford Village being its third acquisition in Houston since 2022 [6] Market Context - The area surrounding Ashford Village has a high average household income of $113,979 within a 3-mile radius, indicating strong purchasing power among local residents [5] - The shopping center is strategically located near major office developments and has a robust tenant mix, including Seiwa Market, which serves the local Asian community [1][4]

Property Ownership and Acquisitions - As of September 30, 2025, the company wholly owned 55 commercial properties with a total carrying amount of $1,012.5 million and approximately 4.8 million square feet of gross leasable area (GLA) [211] - The company acquired three properties in 2025: 1730 S Val Vista for $3.5 million, South Hulen Shopping Center for $32.4 million, and San Clemente for $12 million, all aligning with its Community Centered Properties® strategy [222][223][224] - The company acquired Village Shops at Dana Park for $5.6 million, a 10,128 square foot property that was 100% leased at the time of purchase [225] - Scottsdale Commons was acquired for $22.2 million, a 69,482 square foot property that was 96.6% leased at the time of purchase [226] - The company completed the sale of Sugar Park Plaza for $20.8 million, recording a gain on sale of $14.0 million [229] Financial Performance - Total revenues for the three months ended September 30, 2025, were approximately $41.0 million, up from $38.6 million for the same period in 2024, and $116.9 million for the nine months ended September 30, 2025, compared to $113.4 million in 2024 [217] - Net income attributable to Whitestone REIT for the three months ended September 30, 2025, was $18,333,000, compared to $7,624,000 in 2024 [237] - Total revenues for the nine months ended September 30, 2025, increased to $116,943,000, up from $113,444,000 in 2024, representing a 3% increase [251] - Same Store rental revenues for the nine months ended September 30, 2025, were $77,793,000, an increase of $2,665,000 or 4% compared to $75,128,000 in 2024 [251] - Property net operating income (NOI) for the nine months ended September 30, 2025, was $81,264,000, compared to $79,972,000 in 2024, reflecting an increase of $1,292,000 [247] Operating Expenses and Income - Total operating expenses for the three months ended September 30, 2025, were $26,925,000, a 4% increase from $25,940,000 in 2024 [243] - General and administrative expenses increased to $5,319,000 in the three months ended September 30, 2025, from $4,878,000 in 2024, marking an increase of 9% [246] - Interest expense for the three months ended September 30, 2025, rose to $8,658,000, up from $8,506,000 in 2024, a 2% increase attributed to a higher effective interest rate [245] - Total operating expenses for the nine months ended September 30, 2025, were $77,534,000, a slight increase of 0% compared to $77,507,000 in 2024 [253] - Same Store net operating income (NOI) for the three months ended September 30, 2025, was $25,591,000, an increase of $1,179,000 or 4.8% from $24,412,000 in 2024 [246] Debt and Interest Rates - As of September 30, 2025, $66.1 million, or approximately 10% of the company's outstanding debt, was subject to floating interest rates, with a potential impact of $0.7 million on annual net income for a 1% change in interest rates [216] - The average effective interest rate on the company's fixed interest rate debt was approximately 4.80% per annum as of September 30, 2025 [322] - Approximately 90% of the company's total outstanding debt, or $579.9 million, was subject to fixed interest rates, limiting the risk of fluctuating interest rates [322] - The interest rate on the Term Loan is set at 3.40% plus an applicable margin, with a maturity date of January 31, 2031 [290] - A 1% increase in interest rates would cause a $17.9 million decline in the fair value of the company's fixed rate debt [322] Cash Flow and Distributions - Cash provided by operating activities during the nine months ended September 30, 2025, was $34,907,000, with total distributions amounting to $20,809,000, resulting in a cash flow surplus of approximately $14,098,000 [266] - Payments of distributions to common shareholders and OP unit holders increased to $20.8 million for the nine months ended September 30, 2025, compared to $18.6 million in 2024, reflecting an increase of approximately 6.7% [278] - The company announced an increase in its quarterly distribution to $0.135 per common share and OP unit, effective January 2025 [267] - Cash flow from operations was $34.9 million for the nine months ended September 30, 2025, down from $40.2 million in 2024, representing a decrease of approximately 8.1% [278] - Cash, cash equivalents, and restricted cash decreased to approximately $6,848,000 as of September 30, 2025, down from $15,370,000 at the end of 2024 [275] Strategic Initiatives - The company is actively evaluating development and redevelopment activities on a case-by-case basis to grow its GLA [220] - The company has identified non-core properties for divestment to reallocate resources towards acquiring properties that align with its long-term growth objectives [221] - The company intends to continue investing in properties with potential for increasing value, which may incur significant capital expenditures [308] - The company completed several property acquisitions and sales, including Garden Oaks and Scottsdale Commons, impacting rental expenses and overall financial performance [254] - The company entered into equity distribution agreements for the sale of up to $100 million of common shares, providing additional funding flexibility [270]

Financial Data and Key Metrics Changes - Whitestone REIT achieved a 94.2% occupancy rate, an increase of 30 basis points from Q2 2025, indicating strong leasing performance [5][34] - The company reported a 4.8% growth in same store net operating income (NOI) for the quarter, driven by increases in shop space leases across Texas and Arizona [5][12] - Average base rent rose to $25.59, reflecting an 8.2% increase year-over-year and a 26% increase compared to four years ago, translating to a 5.9% compound annual growth rate [7] - Core FFO per share was reported at $0.26, with expectations for a slight increase in Q4 due to new lease commencements [7][20] - Revenue for the quarter increased by 6%, with improved quality of revenue evidenced by a reduction in uncollectible accounts [22] Business Line Data and Key Metrics Changes - The company signed $29.1 million in total lease value, with new leases showing spreads of 22.5% and renewals at 18.6%, resulting in a combined straight-line leasing spread of 19.3% [12] - Foot traffic across the portfolio increased by 4% compared to Q3 2024, indicating healthy consumer engagement [12] Market Data and Key Metrics Changes - The markets in Texas and Arizona continue to show significant strength, supported by business-friendly environments and strong demographic trends [11] - The Houston metro area has added nearly 2 million people over the last 15 years, while the Phoenix metro area has added 1 million residents, contributing to demand for retail space [17] Company Strategy and Development Direction - The company aims to deliver consistent earnings growth and achieve a long-term core FFO per share growth target of 5% to 7% [6][9] - Whitestone REIT is focused on asset recycling, having disposed of one property this quarter and planning further acquisitions and dispositions to enhance portfolio value [10][47] - The company is actively redeveloping properties, with projects expected to contribute to same store NOI growth in 2026 [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain strong leasing demand and occupancy rates, with no signs of weakening in leasing spreads [24][30] - The company is optimistic about the fourth quarter, traditionally its strongest leasing period, and anticipates a strong finish to the year [5][35] - Management highlighted the importance of understanding consumer behavior and adapting to changes in the market to sustain growth [15][18] Other Important Information - The company amended and extended its credit facility, improving its valuation cap rate to 6.75% and enhancing its financial flexibility [20][21] - The dividend is well-covered with a healthy payout ratio, and the company expects to grow the dividend in line with earnings growth [22] Q&A Session Summary Question: What are the expectations for rent expirations in 2026? - Management indicated that there is strong leasing demand and no unique factors affecting next year's rental rates, expecting similar leasing spreads as in recent quarters [23][24] Question: Can you provide details on the change in occupancy? - Management explained that the decrease in occupancy in smaller centers is due to taking back space to attract higher revenue and stronger quality tenants [30][31] Question: Any updates on the Pillarstone JV? - Management confirmed nearing the end of the collection phase, with a settlement agreement filed with the court expected to be approved, leading to a distribution of proceeds in December [36][37] Question: What are the assumptions driving leverage lower in Q4? - Management noted improvements in operations and expected strong performance in Q4, which typically sees sales break points hit [44][46] Question: What is the strategy for site developments? - Management stated that decisions on whether to hold or sell pad sites are made on a case-by-case basis, focusing on maximizing shareholder value [91][92]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that ad-blockers may interfere with website functionality, suggesting users disable them for better access [1] Summary by Sections - **Technical Requirements** - Users are advised to enable Javascript and cookies in their browsers to ensure proper website functionality [1] - **Ad-Blocker Impact** - The article notes that having an ad-blocker enabled may block users from proceeding to the desired content, recommending its temporary disablement [1]

Financial Performance & Growth - Same Store NOI 增长强劲，Q3 2025 增长率为 4.8%[7]，2021-2025 年的年化增长率为 5.1%[7] - 2025 年 Core FFO/Share 的目标增长率为 4-6%[10] - 预计 Same Store NOI 可持续增长 3-5%，主要由合同自动扶梯和租赁活动驱动[11] - 2025-2029 年到期的基本租金为 7750 万美元[13] Portfolio & Occupancy - Q3 2025 年入住率达到 94.2%，自 2021 年第三季度以来上升了 400 个基点[7] - 77% 的总 ABR 来自于小于 10,000 平方英尺的小型商铺空间[7, 30] - 92% 的中心配置有高需求的 1,500 – 3,000 平方英尺的空间[7] Capital Structure & Debt - 债务/EBITDAre 为 7.2 倍，相比 2021 年第三季度改善了 1.7 倍[7] - 总债务为 6.46 亿美元，其中 90% 为固定利率债务[58] - 2025 年 9 月修订并延长了 7.5 亿美元的信贷额度[58] Acquisitions & Dispositions - 自 2022 年第四季度以来，已收购约 1.53 亿美元的物业[25] - 自 2022 年第四季度以来，已处置约 1.47 亿美元的资产[25] Market & Strategy - 100% 的投资组合增长位于低监管州：德克萨斯州和亚利桑那州[7] - Whitestone 的市场预计未来 5 年的就业增长复合年增长率为 1.1%，而美国平均水平为 0.7%[66]

分组1 - Whitestone reported quarterly funds from operations (FFO) of $0.26 per share, matching the Zacks Consensus Estimate and showing an increase from $0.25 per share a year ago [1] - The company achieved revenues of $41.05 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.36% and up from $38.63 million year-over-year [2] - Over the last four quarters, Whitestone has surpassed consensus FFO estimates three times and revenue estimates two times [2][3] 分组2 - The stock has underperformed, losing about 14.3% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The current consensus FFO estimate for the upcoming quarter is $0.28 on revenues of $40.7 million, and for the current fiscal year, it is $1.05 on revenues of $157.4 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - Whitestone REIT reported significant growth in net income and Core FFO for Q3 2025 compared to Q3 2024, with net income attributable to common shareholders increasing to $18.3 million or $0.35 per diluted share from $7.6 million or $0.15 per diluted share [1][5][6] - The company is on track to achieve its long-term Core FFO per share growth target of 5-7%, supported by operational excellence and a high percentage of shop space within its peer group [2][3] Financial Performance - Revenues for Q3 2025 were $41.0 million, up from $38.6 million in Q3 2024, while year-to-date revenues reached $116.9 million compared to $113.4 million for the same period in 2024 [5][6] - Core FFO for Q3 2025 was $13.7 million, slightly up from $13.0 million in Q3 2024, with Core FFO per diluted share increasing to $0.26 from $0.25 [5][6] - Same-Store Net Operating Income (NOI) grew by 4.8% to $25.6 million in Q3 2025, compared to $24.4 million in Q3 2024 [5][7] Operational Metrics - The occupancy rate for wholly owned properties was 94.2% in Q3 2025, a slight increase from 94.1% in Q3 2024 [7] - Rental rate growth on a GAAP basis was 19.3% for Q3 2025, down from 25.3% in Q3 2024, with new leases showing a growth of 22.5% [7] Balance Sheet and Debt - As of September 30, 2025, Whitestone had total debt of $646.0 million and undepreciated real estate assets valued at $1.3 billion [10][13] - The company declared a quarterly cash distribution of $0.135 per common share for Q4 2025, to be paid in three installments [8] Guidance and Future Outlook - The company updated its 2025 full-year guidance for net income attributable to Whitestone REIT to a range of $30.9 million to $33.0 million, significantly higher than the original guidance of $17.1 million to $19.2 million [9] - Core FFO guidance remains unchanged at $54.2 million to $56.3 million, with same-store NOI growth projected at 3.5% to 4.5% [9]

Financial Performance - For the three months ended September 30, 2025, net income attributable to common shareholders per diluted share was $0.35, compared to $0.15 for the same period in 2024[12]. - Revenues for Q3 2025 were $41.0 million, an increase from $38.6 million in Q3 2024[18]. - Net Income attributable to common shareholders for Q3 2025 was $18.3 million, or $0.35 per diluted share, compared to $7.6 million, or $0.15 per diluted share in Q3 2024[18]. - Core Funds from Operations ("Core FFO") for Q3 2025 were $13.7 million, up from $13.0 million in Q3 2024[18]. - The company reported a comprehensive income of $17,512,000 for the three months ended September 30, 2025, compared to a loss of $1,207,000 in the same period of 2024[46]. - Net income for the nine months ended September 30, 2025, was $27,431,000, a 38.5% increase compared to $19,813,000 in 2024[49]. - The company updated its 2025 full-year guidance for net income attributable to Whitestone REIT to $30,913 - $33,023 thousand, up from the original guidance of $17,135 - $19,219 thousand[20]. Occupancy and Leasing - The occupancy rate for wholly owned properties was 94.2% in Q3 2025, slightly up from 94.1% in Q3 2024[17]. - The number of new leases signed in Q3 2025 was 21, generating lease term revenue of $15.7 million, compared to 26 new leases and $7.6 million in Q3 2024[17]. - Renewal leases in Q3 2025 totaled 47, with lease term revenue of $13.3 million, compared to 46 renewal leases and $15.3 million in Q3 2024[17]. - The total number of leases signed in Q3 2025 was 68, compared to 72 in Q3 2024, indicating a slight decrease of 5.6%[96]. - The total number of renewal leases signed in Q3 2025 was 47, with a total lease value of $13,341,198, compared to 43 leases valued at $11,660,747 in Q3 2024, indicating a growth of 14.4%[101]. Revenue and Income Growth - Same store property net operating income increased by 4.8% in Q3 2025, compared to a 4.6% increase in Q3 2024[17]. - Total rental rate growth on a GAAP basis was 19.3% in Q3 2025, down from 25.3% in Q3 2024[17]. - Same-Store Net Operating Income ("NOI") grew 4.8% to $25.6 million in Q3 2025, compared to $24.4 million in Q3 2024[18]. - Total property revenues for Same Store properties increased by 5% to $39.093 million for the three months ended September 30, 2025, compared to $37.172 million in 2024[66]. - Total rental income for the nine months ended September 30, 2025, was $115,904,000, up 3.1% from $112,328,000 in the same period of 2024[47]. Debt and Financial Obligations - Total debt as of September 30, 2025, was $646.0 million, with $308.9 million available under its revolving credit facility[22]. - The total liabilities as of September 30, 2025, were $701,226,000, an increase from $690,805,000 as of December 31, 2024, reflecting a rise in financial obligations[41]. - Outstanding debt as of September 30, 2025, was $646,002,000, with total net debt of $639,154,000 after accounting for cash and receivables[80]. - The debt to undepreciated book value ratio improved to 49% as of September 30, 2025, down from 50% in 2024, indicating a slight reduction in leverage[79]. - The interest coverage ratio for the three months ended September 30, 2025, was 2.7, compared to 2.6 for the same period in 2024, reflecting improved earnings relative to interest expenses[76]. Dividends and Shareholder Returns - The company has maintained a monthly dividend for over 15 years, with a current annualized distribution of $0.54 per share[5]. - The company declared a quarterly cash distribution of $0.135 per common share for Q4 2025[19]. Strategic Focus and Market Position - Whitestone's strategic focus is on community-centered properties, primarily in high-growth markets in the Sun Belt region[6]. - The largest tenant accounted for only 2.2% of annualized revenues for the three months ended September 30, 2025, indicating a diverse tenant base[9]. - As of September 30, 2025, Whitestone owned 55 Community-Centered Properties™ with a total gross leasable area of 4.8 million square feet[21]. Operational Metrics - Operating expenses for the three months ended September 30, 2025, totaled $26,925,000, compared to $25,940,000 in the same period of 2024, showing a rise of 3.8%[45]. - General and administrative expenses for the three months ended September 30, 2025, were $5.319 million, compared to $4.878 million in 2024, reflecting an increase of 9%[56]. - The company reported a loss on the sale of properties of $14,174,000 for the nine months ended September 30, 2025, compared to a loss of $10,212,000 in 2024[49]. Cash Flow and Liquidity - Cash and cash equivalents increased to $6,848,000 as of September 30, 2025, from $5,224,000 as of December 31, 2024, indicating improved liquidity[41]. - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $34,907,000, compared to $40,156,000 in 2024[49]. - Cash and cash equivalents at the end of the period were $6,848,000, up from $2,534,000 in 2024[52]. Lease and Rental Details - The Annualized Base Rent for the total properties is $112,872,000, resulting in an average rent per square foot of $25.14[111]. - The company has 1,395 leases in place, with a total of 4,092,924 square feet leased, representing 85.7% of the Gross Leasable Area[105]. - The average net effective annual base rent per leased square foot is $25.59 across all properties[111]. - The company is holding land for development, which currently has no Gross Leasable Area reported[111].