Financial Condition and Cash Flow - As of December 31, 2024, the company had approximately $136.3 million of mortgage debt secured by four properties, which may affect cash distributions to shareholders if cash flow is insufficient [102]. - The company may need to defer necessary property improvements due to insufficient working capital, potentially impacting property quality and operational results [103]. - The company’s cash available for distribution is primarily derived from its share of cash distributions made by its Operating Partnership [107]. - There is no assurance that the company will be able to maintain or increase cash distributions to shareholders, as these depend on various financial factors [149]. - The company has no assurance that it will be able to continue paying distributions or that rents from properties will increase, which could affect cash available for distributions to shareholders [150]. - Any deficiencies in the company's internal controls could have a material adverse effect on its financial condition and ability to make distributions [151]. REIT Compliance and Taxation - To maintain REIT qualification, the company must distribute at least 90% of its annual taxable income, with a potential 4% excise tax on insufficient distributions [106]. - The company must ensure that at least 75% of its assets consist of cash, government securities, and qualified real estate assets to maintain REIT status [115]. - Dividends payable by the company do not qualify for reduced tax rates available for some dividends, generally taxed at a maximum rate of 37% [116]. - Changes in U.S. federal income tax laws could adversely impact the company's business and financial results [119]. Market and Economic Risks - The market value of the company's common shares may fluctuate significantly due to various factors, including interest rates and dividend distribution rates [120]. - Market disruptions and adverse economic conditions could significantly impact the company's financial condition and results of operations, affecting tenant leasing practices and rental income [131]. - The principal market risk faced by the company is related to interest rate fluctuations, influenced by various economic and political factors [337]. - The company aims to limit the impact of interest rate fluctuations on earnings and cash flows through the use of fixed rate debt instruments [337]. Debt and Interest Rate Exposure - As of December 31, 2024, approximately 88% of the company's outstanding debt, totaling $557.5 million, was subject to fixed interest rates, with an average effective interest rate of 4.89% per annum [339]. - A 1% increase or decrease in interest rates would cause a $13.6 million decline or increase in the fair value of the company's fixed rate debt [339]. - Approximately 12% of the company's outstanding debt, amounting to $75.0 million, was subject to floating interest rates, with an impact of $0.8 million on annual net income for a 1% change in interest rates [340]. Corporate Governance and Strategy - The company's Board may change its business strategy or investment policies without shareholder approval, potentially affecting financial condition and cash flows [122]. - The Maryland General Corporation Law includes provisions that may deter acquisitions, such as the business combination statute and control share acquisition statute, which impose restrictions on shareholders owning 10% or more of voting shares [123]. - The board of trustees has adopted a resolution exempting any business combination from the business combination statute, which could otherwise delay or prevent acquisition offers [125]. - The company is authorized to issue up to 400 million common shares and 50 million preferred shares, which may deter or prevent sales of common shares that could benefit shareholders [129]. - Future offerings of debt or preferred equity securities may adversely affect the market price of common shares and dilute existing shareholders' holdings [130]. Operational and Environmental Risks - The company may face challenges in acquiring properties on favorable terms due to various risks, including changes in economic conditions and competition from other investors [142]. - Climate change and natural disasters could adversely affect the company's properties and business operations, leading to increased costs and potential property damage [139]. - Shareholder activism or unsolicited offers could disrupt the company's business and financial results, potentially harming relationships with stakeholders [148].

Core Insights - Whitestone REIT (WSR) has signed a lease with The Picklr to establish a new indoor pickleball facility, The Picklr Cave Creek, in Scottsdale, AZ, which is set to open in the second half of 2025 [1] - The facility aims to enhance the active lifestyle of the surrounding communities, providing a professional-grade environment for pickleball players [2] - The Picklr has rapidly expanded since its founding in 2021, becoming North America's fastest-growing indoor pickleball franchise with over 500 locations [4] Company Developments - The Picklr Cave Creek will feature eight premium indoor courts in a climate-controlled environment, allowing players to train without the challenges posed by Arizona's summer heat [3] - The strategic location of the facility at Terravita Marketplace is designed to attract players from nearby affluent neighborhoods, enhancing accessibility [3][5] - CEO of Whitestone REIT, Dave Holeman, highlighted the positive impact of The Picklr on community engagement and surrounding tenants' growth, referencing a successful partnership in Dallas [6] Market Performance - Whitestone REIT shares have increased by 8.3% over the past six months, contrasting with a 9.1% decline in the broader industry [6] - Other notable stocks in the REIT sector include Welltower (WELL) and SL Green Realty (SLG), both of which have favorable Zacks rankings [7] - The Zacks Consensus Estimate for Welltower's 2025 FFO per share indicates a year-over-year growth of 13.2%, while SL Green's estimate shows a 9% increase from the previous year [9]

Core Insights - Whitestone REIT has signed a lease with The Picklr to open a 20,909-square-foot indoor pickleball facility at Terravita Marketplace in Scottsdale, Arizona, enhancing the active lifestyle of the local community [1][3] - The Picklr, founded in 2021, has rapidly expanded to over 500 locations, becoming the fastest-growing indoor pickleball franchise in North America [2] - The new facility will feature eight premium courts and is expected to open in the second half of 2025, catering to the high demand for pickleball in the Greater Phoenix area [3][4] Company Overview - Whitestone REIT focuses on community-centered open-air shopping centers in Texas and Arizona, aiming to enhance shareholder value and community engagement through strategic leasing [3][6] - The company emphasizes a tenant mix that includes service-oriented businesses, contributing to the overall success of its retail centers [7] Market Context - The popularity of pickleball is surging in Greater Phoenix, driven by health-conscious families and individuals, highlighting a supply-demand gap in available courts [4] - The location of Terravita Marketplace is strategically positioned near affluent communities, with an average household income exceeding $200,000 within a 15-minute drive [4]

Positioning asset to become an 18-hour activity hub that better serves the lifestyle needs of the surrounding community Meets neighborhood demand for an upscale coffeehouse, premium fitness concepts and executive suites by bringing in Starbucks Reserve, Pvolve, RVE Fitness and CUBExec HOUSTON, March 10, 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 transformat ...

Core Points - Whitestone REIT has declared a monthly cash dividend of $0.045 per share for the second 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 April, May, and June 2025, with record 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 provide convenience, featuring a mix of service-oriented tenants that include restaurants, grocers, health and fitness services, financial services, education, and entertainment [3] - Strong community connections and deep tenant relationships are considered key to the success of the company's current centers and acquisition strategy [3]

Whitestone REIT (NYSE:WSR) Q4 2024 Earnings Conference Call March 4, 2025 8:30 AM ET Company Participants David Moody - Director, Investor Relations Dave Holeman - Chief Executive Officer Christine Mastandrea - Chief Operating Officer Scott Hogan - Chief Financial Officer Conference Call Participants Mitch Germain - Citizens Capital Market Anthony Hall - Truist Securities Gaurav Mehta - Alliance Global Partners John Massocca - B. Riley Operator Greetings, and welcome to the Whitestone REIT Fourth Quarter 20 ...

Whitestone REIT Q4 2024 Earnings Presentation Industry Leaders in High- Value Shop Space Differentiated Strategy, Proven Execution 2024 Highlights 5.1% Same Store NOI Growth 5.3% Avg Since 2021 94.1% Occupancy Up 280 Basis Points Since 2021 6.6x Debt / EBITDAre 2.6x Improvement Versus 2021 11% Core FFO/Share Growth 5.5% CAGR Since 2021 9.1% Dividend Growth 6.5% CAGR Q1 2021 – Q1 2025 Advantages of our Leading Position in High-Value Shop Space: ➢ Very strong leasing spreads and SS NOI growth ➢ Smaller tenant ...

Core Insights - Whitestone (WSR) reported quarterly funds from operations (FFO) of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.21 per share a year ago, representing a 7.69% surprise [1] - The company posted revenues of $40.84 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.38%, compared to $37.52 million in the same quarter last year [2] - The stock has underperformed the market, losing about 3.9% since the beginning of the year, while the S&P 500 gained 1.2% [3] Financial Performance - Over the last four quarters, Whitestone has surpassed consensus FFO estimates just once [2] - The current consensus FFO estimate for the upcoming quarter is $0.24 on revenues of $37.79 million, and for the current fiscal year, it is $1.05 on revenues of $156.38 million [7] Market Outlook - The estimate revisions trend for Whitestone is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] - The outlook for the REIT and Equity Trust - Other industry is currently in the bottom 47% of Zacks industries, which may impact stock performance [8]

Financial Performance - For Q4 2024, net income attributable to common shareholders per diluted share was $0.33, compared to $0.03 in Q4 2023, representing a significant increase[11]. - For the full year 2024, net income attributable to common shareholders per diluted share was $0.72, up from $0.38 in 2023, indicating strong annual growth[11]. - Revenues for Q4 2024 were $40.8 million, up from $37.5 million in Q4 2023, representing a growth of 8.8%[16]. - Net income attributable to common shareholders for Q4 2024 was $17.3 million, or $0.33 per diluted share, compared to $1.5 million, or $0.03 per diluted share in Q4 2023[16]. - Net income for the year ended December 31, 2024, was $37,373,000, compared to $19,450,000 in 2023, representing a 92% increase[51]. - Total revenues for Q4 2024 were $40,838,000, an increase of 6.9% from $37,524,000 in Q4 2023[47]. - The company reported a comprehensive income of $24,034,000 for Q4 2024, compared to a loss of $8,491,000 in Q4 2023[48]. Operational Metrics - Core FFO per share grew by 11% year-over-year, demonstrating robust operational performance[12]. - Same Store NOI growth for the full year 2024 was 5.1%, reflecting effective property management and leasing strategies[12]. - Same-Store Net Operating Income (NOI) grew by 5.8% to $25.0 million in Q4 2024, compared to $23.7 million in Q4 2023[16]. - Total property revenues for the year ended December 31, 2024, were $143,969,000, a 5% increase from $137,247,000 in 2023[72]. - Core Funds from Operations (FFO) for Q4 2024 were $14.7 million, an increase from $12.4 million in Q4 2023[16]. - Funds from Operations (FFO) for the year ended December 31, 2024, were $50,717,000, an increase of 11.5% from $45,390,000 in 2023[57]. - Core FFO for the year ended December 31, 2024, was $52,474,000, up 12.5% from $46,765,000 in 2023[57]. Debt and Financial Stability - The debt to EBITDAre ratio improved to 6.6X in Q4 2024, a reduction of nearly one full turn compared to Q4 2023, indicating enhanced financial stability[12]. - As of December 31, 2024, the company had total debt of $632.5 million and undepreciated real estate assets of $1.2 billion[22]. - The debt to undepreciated real estate assets ratio decreased to 48% in 2024 from 50% in 2023, indicating improved leverage[82]. - The interest coverage ratio improved to 2.9 in Q4 2024 from 2.2 in Q4 2023, indicating better ability to cover interest expenses[79]. - Total liabilities decreased slightly to $690,805,000 in 2024 from $693,622,000 in 2023[43]. Leasing and Tenant Information - Whitestone REIT operates 55 community centers with a total gross leasable area of 4.9 million sq. ft. and 1,445 tenants, highlighting its extensive market presence[3]. - The largest tenant only accounted for 2.2% of annualized revenues, demonstrating a well-diversified tenant base[7]. - The company renewed 50 leases in Q4 2024, covering 167,112 square feet, with a total lease value of $15,909,000[98]. - New leases signed in Q4 2024 totaled 29, covering 123,582 square feet, with a total lease value of $40,643,000[98]. - The average square footage for new leases in Q4 2024 was 4,261 square feet, compared to 2,641 square feet for new leases in Q4 2023[98]. - The percentage of leased square footage for Restaurants & Food Service was 20%, contributing 27% to the annualized base rental revenue[95]. Future Guidance and Expectations - The initial 2025 Core FFO guidance range is set at $1.03 to $1.07, indicating positive expectations for future performance[12]. - The company expects 2025 GAAP net income per diluted share to be in the range of $0.33 to $0.37[18]. - Same-store NOI growth for 2025 is estimated to be between 3.0% and 4.5%[19]. - Full Year 2025 guidance projects FFO per diluted share and OP unit to be between $1.03 and $1.07[66]. Cash and Liquidity - Cash and cash equivalents rose to $5,224,000 in 2024, compared to $4,572,000 in 2023, indicating improved liquidity[43]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $15,370,000 in 2024 from $4,640,000 in 2023[54]. - Net cash provided by operating activities increased to $58,227,000 in 2024 from $47,600,000 in 2023, a growth of 22.5%[51]. Property and Development - The company holds several parcels of land for future development, which currently have no gross leasable area[115]. - The property with the largest gross leasable area is Market Street at DC Ranch, totaling 244,888 square feet with a 96% occupancy rate[113]. - The company continues to focus on market expansion and development opportunities in key locations[115].

Core Insights - Whitestone REIT reported strong financial results for Q4 and full year 2024, with a significant increase in net income attributable to common shareholders, reaching $0.33 per diluted share for Q4 2024 compared to $0.03 in Q4 2023, and $0.72 for the full year 2024 compared to $0.38 in 2023 [1][6][41] Financial Performance - Q4 2024 revenues were $40.8 million, up from $37.5 million in Q4 2023, while full year revenues increased to $154.3 million from $147.0 million in 2023 [6][41] - Core Funds from Operations (FFO) for Q4 2024 were $14.7 million, compared to $12.4 million in Q4 2023, with Core FFO per diluted share rising to $0.28 from $0.24 [6][41] - Same Store Net Operating Income (NOI) grew by 5.8% in Q4 2024, reaching $25.0 million, compared to $23.7 million in Q4 2023 [6][41] Leasing and Occupancy - The company achieved a combined GAAP leasing spread of 21.9% in Q4 2024, marking the 11th consecutive quarter with leasing spreads exceeding 17% [2] - Occupancy rates for wholly owned properties were 94.1% in Q4 2024, slightly down from 94.2% in Q4 2023 [7] Debt and Dividend - The debt to EBITDAre ratio improved to 6.6X in Q4 2024, a reduction of nearly one full turn from Q4 2023 [2] - The company declared a quarterly cash distribution of $0.135 per common share for Q1 2025, representing a 9% increase from the previous quarter [8] 2025 Guidance - Whitestone REIT provided initial guidance for 2025, estimating Core FFO per diluted share to be in the range of $1.03 to $1.07, with net income per share projected between $0.33 and $0.37 [9][10] Portfolio Overview - As of December 31, 2024, Whitestone owned 55 Community-Centered Properties™ with a total gross leasable area of 4.9 million square feet, primarily located in Texas and Arizona [15] - The tenant base consisted of 1,445 tenants, with the largest tenant accounting for only 2.2% of annualized base rental revenues, indicating a well-diversified portfolio [16]