Core Insights - Whitestone REIT has appointed Felice Terrigno as Houston Division Director to enhance its leasing strategy for its portfolio of over 10 open-air shopping centers in Houston [1][2] Company Overview - Whitestone REIT (NYSE: WSR) 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 [5] - The company emphasizes community connections and strong tenant relationships as key factors for the success of its centers and acquisition strategy [6] Leadership and Experience - Felice Terrigno brings seven years of experience from SDI Realty Advisors, where he specialized in maximizing the value and occupancy of retail shopping centers [2] - Terrigno holds a degree in Business Administration from the United States Military Academy and an MBA from Rice University, enhancing his expertise in finance and commercial real estate [3] Strategic Goals - The appointment of Terrigno is expected to strengthen Whitestone's leasing initiatives, attract national and regional tenants, and align with market trends to expand the portfolio's value [2][4] - The company aims to leverage Terrigno's military discipline and industry expertise to improve the quality of its retail centers and enhance customer experience [4]

Core Points - Western Star Resources Inc. plans to complete a non-brokered Private Placement of up to 7,500,000 units at a price of $0.20 per unit, aiming for gross proceeds of up to $1,500,000 [1][3] - Each unit will consist of one common share and one share purchase warrant exercisable at $0.35 for two years, with a four-month holding period for all securities issued [2][3] - The net proceeds will be used to define high-priority drill targets at the Western Star Project, facilitate the company's move into Nevada for critical metals, and for general working capital and market awareness [3] Company Information - Western Star Resources is a mineral exploration and development company focused on increasing shareholder value through cost-effective exploration practices and partnerships [5] - The company owns nine non-surveyed contiguous mineral claims totaling 2,797 hectares located in the Revelstoke mining division of British Columbia, approximately 50 kilometers southeast of Revelstoke [5]

Core Viewpoint - Whitestone REIT will release its financial results for Q3 2025 on October 29, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results for the third quarter ended September 30, 2025, will be announced after market close on October 29, 2025 [1] - A conference call to discuss the results will be held on October 30, 2025, at 8:30 A.M. Eastern Time, led by CEO Dave Holeman [2] Group 2: 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 [3] - 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 [4] - Strong community connections and deep tenant relationships are considered key to the success of the company's current centers and acquisition strategy [4]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on real estate investment trusts (REITs) [1] - He has a background in IT analysis for Fortune 500 companies and experience in financial services with Charles Schwab [1] - Anthony is launching a book on REITs in 2025 and manages his own equities research firm remotely [1] Company Background - Albert Anthony & Company is an equities research firm managed by Anthony, who has a data-driven and process-oriented approach [1] - The firm does not engage with non-publicly traded companies, small cap stocks, or startup CEOs [1] Educational and Professional Development - Anthony holds degrees from Drew University and is currently pursuing the CMSA certification at the Corporate Finance Institute [1] - He has participated in numerous business and innovation conferences in Europe, enhancing his industry knowledge [1] Media Presence - Anthony has a growing presence on platforms like Seeking Alpha and Investing.com, with over 1,000 followers [1] - He is also active on YouTube, where he plans to discuss REITs [1]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on real estate investment trusts (REITs) [1] - He has a background in IT analysis for Fortune 500 companies and experience in financial services with Charles Schwab [1] - Anthony is launching a book on REITs in 2025 and manages his own equities research firm remotely [1] Background and Experience - Albert Anthony has over 1,000 followers on Seeking Alpha and writes for various financial platforms [1] - He has participated in numerous business and innovation conferences in the EU and has a degree from Drew University [1] - Currently enrolled in the CMSA certification program at the Corporate Finance Institute in Vancouver [1] Media and Digital Presence - Anthony is active in digital media, including a YouTube channel focused on REITs [1] - He has appeared in regional media channels in Croatia and has had roles in over five productions [1] - The firm does not engage with non-publicly traded companies or small-cap stocks [1]

Group 1 - Whitestone REIT has amended, expanded, and extended its credit facility [1] - The new facility includes a $215 million increase in size [1] - The facility features lower interest rates and extended maturities [1]

Core Viewpoint - Whitestone REIT has successfully amended, expanded, and extended its $750 million credit facility, which includes a $375 million revolver and a $375 million term loan, enhancing its financial flexibility and liquidity [1][2]. Credit Facility Details - The new credit facility includes a $215 million increase in size, lower interest rates, and extended maturities, with the revolver maturing in September 2029 and the term loan in January 2031 [2]. - The initial interest rate for the revolver is SOFR plus 1.40%, while the term loan has an initial interest rate of SOFR plus 1.35% [2]. - Interest rate swaps have been entered into to fix the interest rates on the $375 million term loan, locking in a rate between 3.36% and 3.42% (plus 1.35%) until maturity [2]. Financial Performance and Strategy - The company has improved its leverage metrics by increasing EBITDAre and achieving top quartile Same Store Net Operating Income Growth, focusing on disciplined capital spending [2]. - The capitalization rate used for valuation has improved from 7% to 6.75%, reflecting the strengthening of operations and financial position [2]. - The company aims for a 5-7% Core FFO per share growth target in 2026, 2027, and 2028, supported by the new credit facility [7]. 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 [4]. - The company's retail centers are designed to provide convenience, featuring a mix of service-oriented tenants that include food, self-care, services, education, and entertainment [5].

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)