For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 WHITESTONE REIT (Exact Name of Registrant as Specified in Its Charter) Maryland 76-0594970 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer ...

Whitestone REIT (WSR) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants David Mordy - Director of Investor RelationsDavid Holeman - CEOChristine Mastandrea - President & Chief Operating OfficerJ. Scott Hogan - CFO & ControllerGaurav Mehta - Managing DirectorMitch Germain - Managing Director - Real Estate Research Conference Call Participants John Massocca - Senior Research Analyst Operator Ladies and gentlemen, greetings, and welcome to the Whitestone REIT First Quarter twenty twenty five ...

Financial Data and Key Metrics Changes - Core FFO per share for the quarter was $0.25, up 4.2% compared to Q1 2024 [8] - Same store net operating income (NOI) growth was 4.8%, near the top of the forecasted range [9] - Straight line leasing spreads were 20.3%, marking the twelfth consecutive quarter with spreads exceeding 17% [9] - Annual net effective average base rent (ABR) per square foot increased by 4% over Q1 2024 [9] - Debt to EBITDAre ratio improved to 7.2 times from 7.8 times a year ago [24] Business Line Data and Key Metrics Changes - Redevelopment efforts contributed to a 1% lift in same store NOI growth, with $8 million spent in capital above 2023 levels [7] - The company anticipates redevelopment projects will create up to 100 basis points of same store NOI growth lift in 2026, 2027, and 2028 [7] - Total lease value signed for the quarter was $31 million, the highest first quarter amount in a decade, representing a 40% increase over the average of the last decade [13] Market Data and Key Metrics Changes - Green Street's population forecast for the company's footprint is 50 to 70 basis points higher than the national average, with job growth CAGR forecasted to be 40 basis points above the national average [11] - Phoenix, the largest market for the company, leads the country in industrial construction underway [11] Company Strategy and Development Direction - The company is focused on capitalizing on the reshoring dynamic, with a strategy designed to benefit from economic changes [6] - The operational model is set up to provide accelerated growth and greater durability of cash flows in varying economic conditions [5] - The company aims for a long-term core FFO growth target of 5% to 7%, supported by redevelopment and acquisitions [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform in different economic cycles, despite current macroeconomic uncertainties [67] - The company is optimistic about the future of service-based businesses in the Sunbelt region [11] - Management is closely monitoring tenant performance and market trends, indicating no significant pullback in sales yet [48][52] Other Important Information - The company has approximately $50 million in acquisitions in the current pipeline, primarily financed through cash flow and dispositions [24] - The dividend payout ratio remains nearly 50%, with expectations for strong dividend growth in line with earnings growth [25] Q&A Session Summary Question: Why did occupancy decline? - The decline in occupancy was primarily due to a retenanting effort at Terra Vida, where a low-paying tenant was replaced by higher-performing tenants [27][28] Question: Is the $50 million in acquisitions already under contract? - The $50 million is an estimate of current opportunities being pursued, not necessarily under contract yet [29][30] Question: What are the expectations for leverage levels this year? - The company expects to end the year in the low sixes for the debt to EBITDA ratio, with improvements anticipated from increased earnings and cash flow [32][34] Question: What redevelopment projects are contributing to same store NOI growth? - Key projects include Lions Square and Williams Trace, with ongoing efforts to improve tenant quality and revenue [39][42] Question: Are tenants seeing any consumer pullback? - While there are indications of changing consumer behavior, particularly in restaurant sales, overall traffic and sales have not significantly declined [48][52]

分组1 - Whitestone reported quarterly funds from operations (FFO) of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and up from $0.23 per share a year ago, representing a 4.17% surprise [1] - The company posted revenues of $38 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 3.05%, compared to $37.16 million in the same quarter last year [2] - Over the last four quarters, Whitestone has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] 分组2 - The current consensus FFO estimate for the coming quarter is $0.26 on revenues of $39.5 million, and for the current fiscal year, it is $1.05 on revenues of $159.5 million [7] - The estimate revisions trend for Whitestone is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The REIT and Equity Trust - Other industry is currently in the bottom 36% of Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Whitestone REIT Q1 2025 Earnings Presentation Industry Leaders in High- Value Shop Space The Value of Shop Space "Shop Spaces" are the smaller spaces within centers, often in the high-demand 1,500 – 3,000 square foot range that suit regional or local service-based tenants | | Higher Growth | More Durable Cash Flows | | --- | --- | --- | | ➢ | Shop Spaces command higher rents and higher | ➢ Whitestone's underwriting assesses the full strength | | | contractual escalators due to the overall demand for | of th ...

[Corporate Profile](index=3&type=section&id=Corporate%20Profile) Whitestone REIT operates community-focused shopping centers in high-growth Sunbelt markets, emphasizing a diversified service-oriented tenant mix and consistent monthly dividend payments [Corporate Profile Overview](index=3&type=section&id=Corporate%20Profile%20Overview) Whitestone REIT is a community-centered shopping center REIT focused on acquiring, owning, managing, developing, and redeveloping high-quality open-air community centers in the largest, fastest-growing, and highest household income markets in the Sunbelt, offering a diversified tenant mix of daily necessities, services, entertainment, and experiences, and has paid monthly dividends for over 15 consecutive years - Whitestone REIT focuses on operating community shopping centers in **high-growth Sunbelt markets**, featuring a **diversified service-oriented tenant base** and **consistent monthly dividend payments**[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's tenant base is diversified, primarily focused on service sectors such as specialty retail, grocery, dining, medical, education, financial services, and entertainment. As of March 31, 2025, tenants occupying less than **10,000 square feet** had a **90% higher rental rate** than larger space tenants, with the largest tenant accounting for only **2.2% of annualized revenue**[9](index=9&type=chunk) Key Company Information (As of April 28, 2025) | Metric | Data | | :--- | :--- | | **Ticker** | NYSE: WSR | | **Number of Properties** | 55 community centers | | **Gross Leasable Area (GLA) (sq ft)** | 4.9 million | | **Number of Tenants** | 1,456 | | **Key Growth Markets** | Austin, Dallas-Fort Worth, Houston, Phoenix, San Antonio | | **Fiscal Year End** | 12/31 | | **Shares & Units Outstanding (million)** | Common Shares: 50.9, Operating Partnership Units: 0.6 | | **Quarterly Dividend (per share/unit) ($)** | $0.135 | | **Annualized Dividend ($)** | $0.54 | | **Dividend Yield (%)** | 4.08% (Based on April 28, 2025 closing price of $13.23) | [First Quarter 2025 Earnings Release](index=4&type=section&id=First%20Quarter%202025%20Earnings%20Release) The First Quarter 2025 Earnings Release details strong operational and financial highlights, portfolio statistics, debt metrics, and includes important forward-looking statements and non-GAAP financial measure reconciliations [Q1 2025 Operating and Financial Highlights](index=4&type=section&id=Q1%202025%20Operating%20and%20Financial%20Highlights) Whitestone REIT demonstrated strong performance in Q1 2025 with **4.8% same-store Net Operating Income (NOI) growth**, a **GAAP leasing spread of 20.3%**, and a **92.9% occupancy rate**, reaffirming its 2025 core FFO per share guidance for a **4% median year-over-year increase** and declaring a **$0.135 per share cash dividend** for Q2 - CEO Dave Holeman reported strong Q1 2025 performance with **4.8% same-store Net Operating Income growth**, a **GAAP leasing spread of 20.3%**, and **92.9% occupancy**, reaffirming the 2025 core FFO per share guidance for a **4% median year-over-year increase**[13](index=13&type=chunk)[14](index=14&type=chunk) Q1 2025 Operating and Financial Results | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Occupancy Rate (%)** | | | | | - Wholly Owned Properties | 92.9% | 93.6% | -0.7 pp | | - >10,000 sq ft | 95.4% | 96.9% | -1.5 pp | | - ≤ 10,000 sq ft | 91.4% | 91.6% | -0.2 pp | | **Same-Store NOI Change (%)** | 4.8% | 3.1% | +1.7 pp | | **Leasing Rate Growth (GAAP, %)** | | | | | - Total | 20.3% | 17.0% | +3.3 pp | | - New Leases | 22.6% | 25.9% | -3.3 pp | | - Renewals | 19.9% | 15.0% | +4.9 pp | | **Leasing Transactions** | | | | | - New Leases (count) | 22 | 24 | -2 | | - New Lease Term Revenue ($ million) | $10.0 | $7.8 | +$2.2 | | - Renewals (count) | 62 | 46 | +16 | | - Renewal Lease Term Revenue ($ million) | $21.3 | $10.7 | +$10.6 | | **Financial Metrics** | | | | | - Revenue ($ million) | $38.0 | $37.2 | +$0.8 | | - Net Income Attributable to Common Shareholders ($ million) | $3.7 | $9.3 | -$5.6 | | - Diluted Net Income per Share ($) | $0.07 | $0.18 | -$0.11 | | - Core FFO ($ million) | $13.1 | $12.3 | +$0.8 | | - Diluted FFO per Share ($) | $0.25 | $0.23 | +$0.02 | | - Diluted Core FFO per Share ($) | $0.25 | $0.24 | +$0.01 | | - EBITDAre ($ million) | $21.4 | $20.5 | +$0.9 | | - Same-Store NOI ($ million) | $24.7 | $23.5 | +$1.2 | | - Net Effective Annual Base Rent per Leased Square Foot ($) | $24.79 | - | +4% | | **Dividend** | | | | | - Q2 2025 Quarterly Cash Dividend (per share/unit) ($) | $0.135 | - | - | | **2025 Full Year Guidance** | | | | | - GAAP Net Income Attributable to Whitestone REIT (diluted per share) ($) | $0.33 - $0.37 | - | - | | - Core FFO (diluted per share & OP units) ($) | $1.03 - $1.07 | - | - | | - Same-Store NOI Growth (%) | 3.0% - 4.5% | - | - | | - Bad Debt as % of Revenue (%) | 0.75% - 1.00% | - | - | | - General & Administrative Expenses ($ million) | $20.8 - $22.8 | - | - | | - Interest Expense ($ million) | $32.0 - $33.0 | - | - | | - Period-End Occupancy Rate (%) | 94.0% - 95.0% | - | - | [Portfolio Statistics and Debt Metrics](index=5&type=section&id=Portfolio%20Statistics%20and%20Debt%20Metrics) As of March 31, 2025, Whitestone owned **55 community center properties** with a total of **4.9 million square feet of leasable area**, including **5 land parcels held for development**, primarily located in high household income areas of Austin, Dallas-Fort Worth, Houston, Phoenix, and San Antonio in Texas and Arizona, with total debt at **$642.2 million** and **$97.7 million available** under its revolving credit facility - As of March 31, 2025, Whitestone wholly owned **55 community center properties** with a total of **4.9 million square feet of leasable area**, including **5 land parcels held for development**, with the portfolio comprising **31 properties in Texas** and **24 in Arizona**, primarily in high-traffic, high household income communities such as Austin, Dallas-Fort Worth, Houston, Phoenix, and San Antonio[21](index=21&type=chunk) - As of March 31, 2025, the company's total debt stood at **$642.2 million**, with **$97.7 million available** under its **$250 million revolving credit facility**, and undepreciated real estate assets totaling **$1.3 billion**[23](index=23&type=chunk) [Conference Call and Supplemental Information](index=6&type=section&id=Conference%20Call%20and%20Supplemental%20Information) The company invites investors to its Q1 2025 earnings conference call on May 1, 2025, hosted by CEO Dave Holeman, with a replay available until May 15, 2025, and supplemental financial information accessible on the company's investor relations website - The company will host its Q1 earnings conference call on **May 1, 2025, at 8:30 AM ET**, led by CEO Dave Holeman, with a replay available until **May 15, 2025**[26](index=26&type=chunk)[27](index=27&type=chunk) - The Q1 earnings release and supplemental data package are available on the company's website, www.whitestonereit.com, under the 'News & Events' and 'Financial Reports' tabs[28](index=28&type=chunk) [Forward-Looking Statements and Non-GAAP Measures](index=7&type=section&id=Forward-Looking%20Statements%20and%20Non-GAAP%20Measures) The report includes forward-looking statements regarding expected business performance, which are subject to various risks and uncertainties that could cause actual results to differ materially from projections, and provides explanations and reconciliations for non-GAAP financial measures such as EBITDAre, FFO, Core FFO, NOI, and Net Debt, which management believes offer supplementary insights into operational performance and REIT comparisons - The report contains forward-looking statements concerning expectations for the company's financial condition and operating results, which are not historical facts and are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from projections[32](index=32&type=chunk)[33](index=33&type=chunk) - The report includes non-GAAP financial measures such as **EBITDAre, FFO, Core FFO, NOI, and Net Debt**, which management believes provide a supplementary basis for evaluating the company's operating performance and comparing REITs, but these should not be considered substitutes for GAAP net income or cash flow[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [Financial Results](index=9&type=section&id=Financial%20Results) The Financial Results section presents the company's consolidated balance sheets, statements of operations and comprehensive income (loss), and cash flows, detailing asset and liability changes, revenue and expense performance, and cash movements across operating, investing, and financing activities [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's total assets slightly decreased to **$1.127 billion**, while total liabilities remained around **$690 million**, with a slight reduction in net real estate assets and a modest increase in cash and cash equivalents Consolidated Balance Sheets Summary (in thousands of dollars) | Metric | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Real Estate Assets, Net ($ thousand) | $998,822 | $1,001,689 | -$2,867 | | Cash and Cash Equivalents ($ thousand) | $5,586 | $5,224 | +$362 | | Restricted Cash ($ thousand) | $10,228 | $10,146 | +$82 | | Accounts Receivable, Net ($ thousand) | $33,865 | $33,820 | +$45 | | **Total Assets ($ thousand)** | **$1,126,691** | **$1,134,639** | **-$7,948** | | **Liabilities** | | | | | Notes Payable ($ thousand) | $641,295 | $631,518 | +$9,777 | | Accounts Payable and Accrued Expenses ($ thousand) | $30,376 | $40,703 | -$10,327 | | **Total Liabilities ($ thousand)** | **$690,124** | **$690,805** | **-$681** | | **Equity** | | | | | Equity Attributable to Whitestone REIT Shareholders ($ thousand) | $431,025 | $438,153 | -$7,128 | | Noncontrolling Interests ($ thousand) | $5,542 | $5,681 | -$139 | | **Total Equity ($ thousand)** | **$436,567** | **$443,834** | **-$7,267** | | **Total Liabilities and Equity ($ thousand)** | **$1,126,691** | **$1,134,639** | **-$7,948** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=11&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) In Q1 2025, total revenue increased to **$38.0 million**, but net income attributable to Whitestone REIT significantly decreased to **$3.701 million** from **$9.34 million** in the prior year, primarily due to **$6.525 million in gain on property sales** in the previous period, with diluted net income per share consequently falling from **$0.18 to $0.07** Consolidated Statements of Operations and Comprehensive Income (Loss) Summary (in thousands of dollars, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenues** | | | | | Rental Revenue ($ thousand) | $37,395 | $36,741 | +$654 | | Management, Transaction and Other Fees ($ thousand) | $608 | $423 | +$185 | | **Total Revenues ($ thousand)** | **$38,003** | **$37,164** | **+$839** | | **Operating Expenses** | | | | | Depreciation and Amortization ($ thousand) | $9,324 | $8,800 | +$524 | | Operating and Maintenance ($ thousand) | $7,012 | $6,349 | +$663 | | Real Estate Taxes ($ thousand) | $4,252 | $4,238 | +$14 | | General and Administrative Expenses ($ thousand) | $5,443 | $6,180 | -$737 | | **Total Operating Expenses ($ thousand)** | **$26,031** | **$25,567** | **+$464** | | **Other Expenses (Income)** | | | | | Interest Expense ($ thousand) | $8,097 | $8,519 | -$422 | | Gain on Property Sales ($ thousand) | $0 | -$6,525 | +$6,525 | | Loss on Asset Dispositions ($ thousand) | $100 | $0 | +$100 | | Interest, Dividend and Other Investment Income ($ thousand) | -$100 | -$8 | -$92 | | **Total Other Expenses ($ thousand)** | **$8,097** | **$1,986** | **+$6,111** | | **Income Before Income Taxes ($ thousand)** | **$3,875** | **$9,611** | **-$5,736** | | **Net Income Attributable to Whitestone REIT ($ thousand)** | **$3,701** | **$9,340** | **-$5,639** | | **Diluted Net Income per Share ($)** | **$0.07** | **$0.18** | **-$0.11** | | **Comprehensive Income ($ thousand)** | **$222** | **$14,471** | **-$14,249** | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities was **$3.081 million**, a significant decrease from the prior year, while cash outflows from investing activities reduced, primarily due to real estate acquisitions and sales in the previous period, and financing activities shifted from a net outflow to a **$1.277 million net inflow**, driven by increased credit facility draws Consolidated Statements of Cash Flows Summary (in thousands of dollars) | Cash Flow Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Net Cash from Operating Activities ($ thousand)** | **$3,081** | **$11,524** | **-$8,443** | | **Net Cash from Investing Activities ($ thousand)** | **-$3,914** | **-$4,584** | **+$670** | | - Real Estate Acquisitions ($ thousand) | $0 | -$27,204 | +$27,204 | | - Real Estate Additions ($ thousand) | -$3,914 | -$3,041 | -$873 | | - Proceeds from Property Sales ($ thousand) | $0 | $25,661 | -$25,661 | | **Net Cash from Financing Activities ($ thousand)** | **$1,277** | **-$5,365** | **+$6,642** | | - Dividends Paid to Common Shareholders ($ thousand) | -$6,845 | -$5,969 | -$876 | | - Credit Facility Draws ($ thousand) | $27,300 | $23,000 | +$4,300 | | - Repayment of Notes Payable ($ thousand) | -$17,572 | -$20,869 | +$3,297 | | **Net Increase in Cash, Cash Equivalents, and Restricted Cash ($ thousand)** | **$444** | **$1,575** | **-$1,131** | | **Cash, Cash Equivalents, and Restricted Cash, End of Period ($ thousand)** | **$15,814** | **$6,215** | **+$9,599** | [Reconciliation of Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations for key non-GAAP financial measures including FFO, Core FFO, NOI, and EBITDAre, along with the company's 2025 full-year guidance for these metrics [FFO and Core FFO Reconciliation](index=16&type=section&id=FFO%20and%20Core%20FFO%20Reconciliation) In Q1 2025, the company's FFO (NAREIT) was **$13.148 million** and Core FFO was **$13.148 million**, both higher than the prior year, with diluted FFO and Core FFO per share each at **$0.25**, showing a slight increase year-over-year FFO and Core FFO Reconciliation (in thousands of dollars, except per share/unit data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Income Attributable to Whitestone REIT ($ thousand) | $3,701 | $9,340 | -$5,639 | | Real Estate Depreciation and Amortization ($ thousand) | $9,300 | $8,768 | +$532 | | Loss on Asset Dispositions ($ thousand) | $100 | $0 | +$100 | | Gain on Property Sales ($ thousand) | $0 | -$6,525 | +$6,525 | | Net Income Attributable to Noncontrolling Interests ($ thousand) | $47 | $124 | -$77 | | **FFO (NAREIT) ($ thousand)** | **$13,148** | **$11,818** | **+$1,330** | | Proxy Contest Costs ($ thousand) | $0 | $438 | -$438 | | **Core FFO ($ thousand)** | **$13,148** | **$12,256** | **+$892** | | **Diluted FFO per Share/Unit ($)** | **$0.25** | **$0.23** | **+$0.02** | | **Diluted Core FFO per Share/Unit ($)** | **$0.25** | **$0.24** | **+$0.01** | [Property Net Operating Income (NOI) Reconciliation](index=17&type=section&id=Property%20Net%20Operating%20Income%20(NOI)%20Reconciliation) In Q1 2025, the company's NOI was **$26.739 million**, largely flat year-over-year, while same-store NOI grew **4.8% to $24.661 million**, indicating robust operational performance from core properties Property Net Operating Income (NOI) Reconciliation (in thousands of dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Income Attributable to Whitestone REIT ($ thousand) | $3,701 | $9,340 | -$5,639 | | General and Administrative Expenses ($ thousand) | $5,443 | $6,180 | -$737 | | Depreciation and Amortization ($ thousand) | $9,324 | $8,800 | +$524 | | Interest Expense ($ thousand) | $8,097 | $8,519 | -$422 | | Gain on Property Sales ($ thousand) | $0 | -$6,525 | +$6,525 | | Loss on Asset Dispositions ($ thousand) | $100 | $0 | +$100 | | **NOI ($ thousand)** | **$26,739** | **$26,760** | **-$21** | | Non-Same Store NOI ($ thousand) | -$1,041 | -$1,459 | +$418 | | Same Store Straight-Line Rent Adjustment ($ thousand) | -$490 | -$1,114 | +$624 | | Same Store Above/Below Market Rent Amortization ($ thousand) | -$121 | -$214 | +$93 | | Same Store Lease Termination Fees ($ thousand) | -$426 | -$268 | -$158 | | **Same Store NOI ($ thousand)** | **$24,661** | **$23,522** | **+$1,139** | [EBITDAre Reconciliation](index=18&type=section&id=EBITDAre%20Reconciliation) In Q1 2025, EBITDAre increased to **$21.396 million** from **$20.541 million** in Q1 2024, reflecting improved profitability before interest, taxes, depreciation, amortization, and real estate-related adjustments EBITDAre Reconciliation (in thousands of dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Income Attributable to Whitestone REIT ($ thousand) | $3,701 | $9,340 | -$5,639 | | Depreciation and Amortization ($ thousand) | $9,324 | $8,800 | +$524 | | Interest Expense ($ thousand) | $8,097 | $8,519 | -$422 | | Provision for Income Taxes ($ thousand) | $127 | $119 | +$8 | | Net Income Attributable to Noncontrolling Interests ($ thousand) | $47 | $124 | -$77 | | Gain on Property Sales ($ thousand) | $0 | -$6,525 | +$6,525 | | Loss on Asset Dispositions ($ thousand) | $100 | $0 | +$100 | | **EBITDAre ($ thousand)** | **$21,396** | **$20,541** | **+$892** | [2025 Full Year Guidance for Non-GAAP Measures](index=19&type=section&id=2025%20Full%20Year%20Guidance%20for%20Non-GAAP%20Measures) The company reaffirmed its 2025 full-year guidance, projecting GAAP net income attributable to Whitestone REIT between **$17.135 million and $19.219 million**, and diluted Core FFO per share between **$1.03 and $1.07** 2025 Full Year Non-GAAP Measures Guidance (in thousands of dollars, except per share/unit data) | Metric | 2025 Full Year Guidance (Low) | 2025 Full Year Guidance (High) | | :--- | :--- | :--- | | Net Income Attributable to Whitestone REIT ($ thousand) | $17,135 | $19,219 | | Real Estate Depreciation and Amortization ($ thousand) | $36,781 | $36,781 | | Net Income Attributable to Noncontrolling Interests ($ thousand) | $242 | $268 | | **FFO ($ thousand)** | **$54,158** | **$56,268** | | **Core FFO ($ thousand)** | **$54,158** | **$56,268** | | **Diluted Net Income per Share ($)** | **$0.33** | **$0.37** | | **Diluted FFO per Share ($)** | **$1.03** | **$1.07** | | **Diluted Core FFO per Share ($)** | **$1.03** | **$1.07** | [Same Store Property Analysis](index=20&type=section&id=Same%20Store%20Property%20Analysis) This section analyzes the performance of the company's same-store properties, detailing revenue, expenses, and Net Operating Income growth, highlighting the operational strength of its core assets [Same Store Property Performance](index=20&type=section&id=Same%20Store%20Property%20Performance) In Q1 2025, total property revenue for the company's **47 same-store properties** increased **4% to $36.628 million**, while total property expenses grew **8% to $10.93 million**, resulting in a **5% increase in same-store Net Operating Income (NOI) to $24.661 million**, demonstrating sustained growth momentum from core assets Same Store Property Analysis (in thousands of dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Increase (Decrease) ($ thousand) | % Increase (Decrease) | | :--- | :--- | :--- | :--- | :--- | | **Property Revenues** | | | | | | Rental Revenue ($ thousand) | $36,029 | $34,847 | $1,182 | 3% | | Management, Transaction and Other Fees ($ thousand) | $599 | $422 | $177 | 42% | | **Total Property Revenues ($ thousand)** | **$36,628** | **$35,269** | **$1,359** | **4%** | | **Property Expenses** | | | | | | Property Operating and Maintenance ($ thousand) | $6,845 | $6,071 | $774 | 13% | | Real Estate Taxes ($ thousand) | $4,085 | $4,080 | $5 | 0% | | **Total Property Expenses ($ thousand)** | **$10,930** | **$10,151** | **$779** | **8%** | | **Total Property Revenues Less Total Property Expenses ($ thousand)** | **$25,698** | **$25,118** | **$580** | **2%** | | Same Store Straight-Line Rent Adjustment ($ thousand) | -$490 | -$1,114 | $624 | -56% | | Same Store Above/Below Market Rent Amortization ($ thousand) | -$121 | -$214 | $93 | -43% | | Same Store Lease Termination Fees ($ thousand) | -$426 | -$268 | -$158 | 59% | | **Same Store NOI ($ thousand)** | **$24,661** | **$23,522** | **$1,139** | **5%** | [Other Financial Information](index=21&type=section&id=Other%20Financial%20Information) This section provides additional key financial metrics, including capital expenditures for tenant improvements and maintenance, debt principal payments, and the undepreciated value of unencumbered properties [Key Financial Metrics](index=21&type=section&id=Key%20Financial%20Metrics) In Q1 2025, the company saw significant increases in tenant improvement and maintenance capital expenditures, reaching **$1.565 million** and **$1.627 million** respectively, with scheduled bond principal payments also rising sharply to **$17.143 million**, and the undepreciated value of unencumbered properties standing at **$997.7 million** as of March 31, 2025 Other Financial Information (in thousands of dollars, except number of employees) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Tenant Improvements ($ thousand) | $1,565 | $713 | +$852 | | Leasing Commissions ($ thousand) | $651 | $754 | -$103 | | Maintenance Capital ($ thousand) | $1,627 | $265 | +$1,362 | | Scheduled Debt Principal Payments ($ thousand) | $0 | $487 | -$487 | | Scheduled Bond Principal Payments ($ thousand) | $17,143 | $7,143 | +$10,000 | | Straight-Line Rent Income ($ thousand) | $736 | $885 | -$149 | | Non-Cash Equity Compensation Expense ($ thousand) | $1,132 | $936 | +$196 | | Undepreciated Value of Unencumbered Properties ($ thousand) | $997,677 | $1,006,333 | -$8,656 | | Number of Unencumbered Properties | 51 | 51 | 0 | | Full-Time Employees | 69 | 80 | -11 | [Market Capitalization and Selected Ratios](index=22&type=section&id=Market%20Capitalization%20and%20Selected%20Ratios) This section outlines the company's market capitalization structure, detailing equity and debt components, and presents key financial ratios such as interest coverage and leverage, indicating improved financial health [Market Capitalization Structure](index=22&type=section&id=Market%20Capitalization%20Structure) As of March 31, 2025, the company's total market capitalization was **$1.364 billion**, with equity capitalization at **$751 million (55%)** and debt capitalization at **$613 million (45%)** Market Capitalization Structure (in thousands of dollars, except percentages) | Metric | Amount ($ thousand) | Percentage of Total Market Cap (%) | | :--- | :--- | :--- | | **Equity Capitalization** | | | | Common Shares Outstanding | 50,895 | | | Operating Partnership Units Outstanding | 643 | | | **Total Equity Capitalization ($ thousand)** | **$750,909** | **55%** | | **Debt Capitalization** | | | | Outstanding Debt ($ thousand) | $642,211 | | | Less: Cash and Cash Equivalents ($ thousand) | -$5,586 | | | Less: Restricted Cash ($ thousand) | -$10,228 | | | Less: Accounts Receivable from Real Estate Partnership Debt Default ($ thousand) | -$13,633 | | | **Total Debt Capitalization ($ thousand)** | **$612,764** | **45%** | | **Total Market Capitalization ($ thousand)** | **$1,363,673** | **100%** | [Selected Financial Ratios](index=22&type=section&id=Selected%20Financial%20Ratios) In Q1 2025, the company's **EBITDAre to Interest Expense ratio improved to 2.7x**, indicating stronger interest coverage, while the **Debt to Undepreciated Book Value ratio decreased to 49%** and the **Debt to Pro Forma EBITDAre ratio fell to 7.2x**, signaling an improvement in leverage levels Selected Financial Ratios | Ratio | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **EBITDAre to Interest Expense Ratio (x)** | 2.7 | 2.5 | +0.2 | | **Debt to Undepreciated Book Value Ratio (%)** | 49% | 51% | -2 pp | | **Debt to Pro Forma EBITDAre Ratio (x)** | 7.2 | 7.8 | -0.6 | [Summary of Outstanding Debt and Debt Maturities](index=24&type=section&id=Summary%20of%20Outstanding%20Debt%20and%20Debt%20Maturities) This section provides a detailed overview of the company's outstanding debt, including its composition by type and a comprehensive maturity schedule, highlighting future repayment obligations [Outstanding Debt and Maturity Schedule](index=24&type=section&id=Outstanding%20Debt%20and%20Maturity%20Schedule) As of March 31, 2025, the company's total outstanding debt principal was **$642.2 million**, predominantly fixed-rate notes, with significant maturities concentrated in **2026 ($169.4 million)** and **2028 ($302.8 million)** Summary of Outstanding Debt (in thousands of dollars) | Debt Type | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Fixed Rate Notes ($ thousand) | $539,911 | $557,483 | -$17,572 | | Floating Rate Notes (Unsecured Revolving Credit Facility) ($ thousand) | $102,300 | $75,000 | +$27,300 | | **Total Notes Payable Principal ($ thousand)** | **$642,211** | **$632,483** | **+$9,728** | | Less: Net Deferred Financing Costs ($ thousand) | -$916 | -$965 | +$49 | | **Total Notes Payable ($ thousand)** | **$641,295** | **$631,518** | **+$9,777** | Debt Maturity Schedule as of March 31, 2025 (in thousands of dollars) | Year | Amount Due ($ thousand) | | :--- | :--- | | 2025 (Remaining) | $0 | | 2026 | $169,443 | | 2027 | $97,414 | | 2028 | $302,823 | | 2029 | $17,867 | | Thereafter | $54,664 | | **Total ($ thousand)** | **$642,211** | [Summary of Top Tenants](index=25&type=section&id=Summary%20of%20Top%20Tenants) This section provides an overview of the company's top tenants by annualized rental revenue, demonstrating a diversified tenant base with low concentration risk [Top Tenants by Annualized Rental Revenue](index=25&type=section&id=Top%20Tenants%20by%20Annualized%20Rental%20Revenue) The company's tenant base is highly diversified, with the largest tenant, Whole Foods Market, accounting for **2.2% of annualized rental revenue**, followed by Albertsons Companies, Inc. at **2.1%** and Frost Bank at **1.8%**, while the top **15 tenants collectively represent 14.2% of annualized rental revenue**, indicating low tenant concentration risk Summary of Top Tenants (As of March 31, 2025, in thousands of dollars) | Tenant Name | Location | Annualized Rental Revenue ($ thousand) | Percentage of Total Annualized Base Rent (%) | Initial Lease Date | Expiration Year | | :--- | :--- | :--- | :--- | :--- | :--- | | Whole Foods Market | Houston | $2,471 | 2.2% | 2014/9/3 | 2035 | | Albertsons Companies, Inc. | Austin and Phoenix | $2,303 | 2.1% | 1991/5/8, etc. | 2026, 2029, 2030, 2034 | | Frost Bank | Houston | $1,961 | 1.8% | 2014/7/1 | 2029 | | Fitness Alliance, LLC | Houston and San Antonio | $1,800 | 1.6% | 2022/11/29, etc. | 2039, 2041 | | Newmark Real Estate of Houston LLC | Houston | $1,337 | 1.2% | 2015/10/1 | 2026 | | Walgreens & Co. | Houston and Phoenix | $767 | 0.7% | 1982/11/14, etc. | 2027, 2056 | | Alamo Drafthouse Cinema | Austin | $740 | 0.7% | 2012/2/1 | 2031 | | Dollar Tree | Houston and Phoenix | $685 | 0.6% | 1999/8/10, etc. | 2026, 2027, 2028, 2030, 2035 | | Soul Concepts, LLC | Phoenix | $671 | 0.6% | 2011/10/25, etc. | 2026, 2028, 2029, 2030 | | Starbucks Corporation | Dallas, Phoenix and Austin | $635 | 0.6% | 1997/7/1, etc. | 2025, 2027, 2028, 2029, 2034, 2035 | | Total Wine | Houston | $564 | 0.5% | 2018/11/27 | 2029 | | Regus Corporation | Houston | $488 | 0.4% | 2014/5/23 | 2025 | | Kroger Co. | Dallas | $483 | 0.4% | 2000/12/15 | 2027 | | Capital Area Multispecialty Providers | Austin | $465 | 0.4% | 2014/5/23 | 2026 | | Original Ninfas LP | Houston | $437 | 0.4% | 2018/8/29 | 2029 | | **Total Top 15 Tenants ($ thousand)** | | **$15,807** | **14.2%** | | | [Tenant Type Summary](index=27&type=section&id=Tenant%20Type%20Summary) This section details the company's tenant composition by type, categorized by leased square footage and annualized base rent, highlighting the diversified and service-oriented nature of its community centers [Tenant Mix by Leased SF and ABR](index=27&type=section&id=Tenant%20Mix%20by%20Leased%20SF%20and%20ABR) As of March 31, 2025, the company's tenant mix is diversified, with dining and food services being the largest category, accounting for **21% of leased square footage** and **27% of annualized base rent (ABR)**, while salons, medical and dental, grocery, and financial services also hold significant shares, reflecting the service-oriented nature of community centers Tenant Type Summary (As of March 31, 2025) | Tenant Type | Percentage of Leased Square Footage (%) | Percentage of Annualized Base Rent (%) | | :--- | :--- | :--- | | Dining and Food Services | 21% | 27% | | Salons | 7% | 9% | | Medical and Dental | 6% | 8% | | Grocery | 12% | 8% | | Financial Services | 5% | 7% | | Fitness | 7% | 5% | | Apparel | 5% | 5% | | General Retail | 7% | 5% | | Non-Retail | 4% | 4% | | Home Decor and Improvement | 5% | 4% | | Education | 4% | 4% | | Pet Supplies and Services | 3% | 3% | | Discount Stores | 3% | 2% | | Local Services | 2% | 2% | | Entertainment | 3% | 2% | | Pharmacy and Nutrition | 2% | 1% | | Sporting Goods | 1% | 1% | | Automotive Supplies and Services | 1% | 1% | | Postal Services | 1% | 1% | | **Total** | **100%** | **100%** | [Summary of Leasing Activity](index=28&type=section&id=Summary%20of%20Leasing%20Activity) This section summarizes the company's Q1 2025 leasing activities, including new leases and renewals, and details comparable leasing spreads for both straight-line and cash rent bases, indicating strong rental growth [Q1 2025 Leasing Activity](index=28&type=section&id=Q1%202025%20Leasing%20Activity) In Q1 2025, the company executed **84 lease agreements** covering nearly **200,000 square feet** with a total lease value of **$31.251 million**, demonstrating strong renewal activity with significant growth in both number and lease value, while new lease count slightly decreased but lease value increased Q1 2025 Leasing Activity Summary | Lease Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Renewals** | | | | | Number of Leases | 62 | 46 | +16 | | Total Square Feet (sq ft) | 158,191 | 137,596 | +20,595 | | Average Square Feet (sq ft) | 2,551 | 2,991 | -440 | | Total Lease Value ($ thousand) | $21,295 | $10,676 | +$10,619 | | **New Leases** | | | | | Number of Leases | 22 | 24 | -2 | | Total Square Feet (sq ft) | 41,419 | 54,753 | -13,334 | | Average Square Feet (sq ft) | 1,883 | 2,281 | -398 | | Total Lease Value ($ thousand) | $9,956 | $7,833 | +$2,123 | | **Total Leasing** | | | | | Number of Leases | 84 | 70 | +14 | | Total Square Feet (sq ft) | 199,610 | 192,349 | +7,261 | | Average Square Feet (sq ft) | 2,376 | 2,748 | -372 | | Total Lease Value ($ thousand) | $31,251 | $18,509 | +$12,742 | [Comparable Leasing Spreads](index=29&type=section&id=Comparable%20Leasing%20Spreads) In Q1 2025, comparable total leases saw a **20.3% increase in straight-line rent basis** and a **12.8% increase in cash rent basis**, with comparable new leases growing **22.6% in straight-line rent basis** and **9.5% in cash rent basis**, and comparable renewals increasing **19.9% in straight-line rent basis** and **13.4% in cash rent basis** Comparable Leasing Spreads (Quarterly) | Lease Type | Quarter | Straight-Line Rent Basis Growth (%) | Cash Rent Basis Growth (%) | | :--- | :--- | :--- | :--- | | **Comparable Total Leases** | | | | | 2025 Q1 | 20.3% | 12.8% | | 2024 Q4 | 21.9% | 7.0% | | 2024 Q3 | 25.3% | 11.9% | | 2024 Q2 | 17.5% | 7.7% | | **Comparable New Leases** | | | | | 2025 Q1 | 22.6% | 9.5% | | 2024 Q4 | 36.1% | 13.6% | | 2024 Q3 | 22.7% | 4.1% | | 2024 Q2 | 33.3% | 14.2% | | **Comparable Renewals** | | | | | 2025 Q1 | 19.9% | 13.4% | | 2024 Q4 | 19.0% | 5.6% | | 2024 Q3 | 25.9% | 13.5% | | 2024 Q2 | 13.9% | 6.2% | [Lease Expirations](index=31&type=section&id=Lease%20Expirations) This section presents the company's lease expiration schedule, detailing the number of leases, total leasable area, and annualized base rent expiring each year, highlighting future leasing opportunities and risks [Lease Expiration Schedule](index=31&type=section&id=Lease%20Expiration%20Schedule) As of March 31, 2025, the company faces significant lease expirations in the coming years, with **395 leases** totaling **509,218 square feet** (**10.5% of GLA**) and **$13.255 million in annualized base rent** expiring in 2025, followed by substantial expirations in **2026 (13.7% of GLA)** and **2027 (13.4% of GLA)** Lease Expiration Schedule (As of March 31, 2025, in thousands of dollars, except square feet) | Year | Number of Leases | Total Leasable Area (sq ft) | Percentage of Total Leasable Area (%) | Annualized Base Rent ($ thousand) | Percentage of Total Annualized Base Rent (%) | Rent per Square Foot ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | 395 | 509,218 | 10.5% | $13,255 | 12.0% | $26.03 | | 2026 | 212 | 667,244 | 13.7% | $14,945 | 13.5% | $22.40 | | 2027 | 203 | 651,848 | 13.4% | $16,188 | 14.6% | $24.83 | | 2028 | 180 | 585,376 | 12.0% | $14,615 | 13.2% | $24.97 | | 2029 | 164 | 637,781 | 13.1% | $15,807 | 14.3% | $24.78 | | 2030 | 132 | 505,794 | 10.4% | $11,979 | 10.8% | $23.68 | | 2031 | 36 | 154,700 | 3.2% | $4,494 | 4.1% | $29.05 | | 2032 | 36 | 181,908 | 3.7% | $4,597 | 4.1% | $25.27 | | 2033 | 20 | 103,729 | 2.1% | $2,539 | 2.3% | $24.48 | | 2034 | 31 | 203,744 | 4.2% | $4,378 | 3.9% | $21.49 | | **Total** | **1,409** | **4,201,342** | **86.3%** | **$102,797** | **92.8%** | **$24.47** | [Property Details](index=32&type=section&id=Property%20Details) This section provides a detailed overview of the company's wholly-owned property portfolio, including total leasable area, occupancy rates, average rents, and geographic distribution across key markets [Wholly Owned Property Portfolio](index=32&type=section&id=Wholly%20Owned%20Property%20Portfolio) As of March 31, 2025, Whitestone REIT's property portfolio comprises **4.863 million square feet of total leasable area** with an **overall occupancy rate of 93%**, an average annualized base rent of **$24.51 per square foot**, and an average net effective annualized base rent of **$24.79 per leased square foot**, distributed across key markets including Phoenix, Austin, Houston, Dallas, and San Antonio - The property portfolio includes Ahwatukee Plaza, BLVD Place, Davenport Village, Eldorado Plaza, and others, located in key markets such as Phoenix, Austin, Houston, Dallas, and San Antonio, with varying occupancy rates and rent levels across properties, for instance, **BLVD Place and Arcadia Towne Center achieved 100% occupancy**[107](index=107&type=chunk) Wholly Owned Property Portfolio Overview (As of March 31, 2025) | Metric | Data | | :--- | :--- | | **Total Gross Leasable Area (GLA) (sq ft)** | 4,863,562 | | **Overall Occupancy Rate (%)** | 93% | | **Average Annualized Base Rent (per sq ft) ($)** | $24.51 | | **Average Net Effective Annualized Base Rent (per leased sq ft) ($)** | $24.79 | | **Land Held for Development Properties (count)** | 5 | | **Primary Market Distribution (count)** | Phoenix (24), Houston (13), Dallas-Fort Worth (9), Austin (6), San Antonio (3) |

Core Insights - Whitestone REIT reported a net income attributable to common shareholders of $3.7 million, or $0.07 per diluted share for Q1 2025, down from $9.3 million, or $0.18 per diluted share in Q1 2024 [5][38] - The company achieved a Same Store Net Operating Income (NOI) growth of 4.8%, with total revenues increasing to $38.0 million from $37.2 million year-over-year [2][5] - Whitestone reaffirmed its 2025 Core FFO per share guidance, projecting a 4% year-over-year growth at the midpoint, driven by strong Same Store NOI growth [2][7] Operating Results - Occupancy rates for wholly owned properties decreased to 92.9% in Q1 2025 from 93.6% in Q1 2024 [4] - The company reported GAAP leasing spreads of 20.3%, with new leases showing a growth of 22.6% and renewal leases at 19.9% [4] - Same Store Property Net Operating Income increased to $24.7 million in Q1 2025 from $23.5 million in Q1 2024 [5][50] Financial Metrics - Core Funds from Operations (FFO) for Q1 2025 were $13.1 million, compared to $12.3 million in Q1 2024, with FFO per diluted share rising to $0.25 from $0.23 [5][47] - EBITDAre for Q1 2025 was reported at $21.4 million, up from $20.5 million in Q1 2024 [5] - The company declared a quarterly cash distribution of $0.135 per common share for Q2 2025 [6] Balance Sheet and Debt Metrics - As of March 31, 2025, Whitestone had total debt of $642.2 million and undepreciated real estate assets valued at $1.3 billion [9][10] - The company has a capacity of $97.7 million available under its $250 million revolving credit facility [9] Portfolio Statistics - Whitestone owned 55 Community-Centered Properties™ with a total gross leasable area of 4.9 million square feet as of March 31, 2025 [9][10] - The properties are primarily located in high-income markets in Texas and Arizona, including Austin, Dallas-Fort Worth, Houston, Phoenix, and San Antonio [10][15]

Core Viewpoint - Whitestone REIT is initiating a strategic redevelopment of Lion Square in Houston's Asiatown to create a cultural hub that reflects the local Asian community's heritage and needs [1][3][4]. Group 1: Redevelopment Plans - The redevelopment will enhance architectural design, curb appeal, and introduce sustainable features such as new greenery and irrigation systems [2]. - The project aims to improve walkability and connectivity, aligning with Houston's Walkable Places initiative, which promotes pedestrian-friendly environments [2]. - The center will incorporate Asian architectural elements and will include an Asian-themed restaurant upon completion [5]. Group 2: Community Engagement and Market Position - The redevelopment is designed to meet the expectations of the Asian community, which is the second largest concentration of Asian-Americans in the U.S. [4]. - Lion Square attracts over 2 million visitors annually and is strategically located at a busy intersection, enhancing its appeal [4]. - The area has seen significant rent increases and low vacancy rates, indicating strong market demand, which Whitestone aims to capitalize on through this redevelopment [3]. Group 3: Company Overview - Whitestone REIT focuses on community-centered retail centers in rapidly growing markets, including Houston, and emphasizes strong tenant relationships [6][7]. - The company aims to drive foot traffic and sales through improved aesthetics and functionality of its properties [3].

About Whitestone REIT HOUSTON, April 23, 2025 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR), a neighborhood- focused owner and operator of open-air shopping centers in Texas and Arizona, today announced that it has commenced a strategic redevelopment at Lion Square in Houston's Asiatown – part of the International Management District – that will transform the Sun Wing Supermarket-anchored center into a vibrant and meaningful cultural hub that pays homage to the city's expansive Asian community. Whitestone ...

Core Viewpoint - Whitestone REIT is initiating a strategic redevelopment of Lion Square in Houston's Asiatown to create a cultural hub that reflects the local Asian community's heritage and needs [1][3][4]. Group 1: Redevelopment Details - The redevelopment will enhance architectural design, curb appeal, and introduce sustainable features such as new greenery and irrigation systems [2]. - The project aims to improve walkability and connectivity, aligning with Houston's Walkable Places initiative, which promotes pedestrian-friendly environments [2]. - Lion Square, a 117,592-square-foot center, attracts over 2 million visitors annually and features retailers and restaurants catering to the Asian community [4][5]. Group 2: Strategic Importance - The redevelopment is seen as a strategic move to solidify the property's competitive standing amid significant investment activity in Asiatown [3]. - The area has high barriers to entry due to limited land availability and has seen market rents rise significantly over the past decade, driven by continuous improvements and low vacancy rates [3]. - Whitestone REIT aims to capitalize on these trends to boost revenue, underlying value, and return potential from the Lion Square redevelopment [3]. Group 3: Community Engagement - The redevelopment plan was developed with input from architects and planners familiar with Asian culture, emphasizing the importance of community engagement [4]. - The project is intended to enhance the center's appeal as a neighborhood town square and cultural hub, fostering a sense of pride within the community [4].