Whitestone REIT(US:WSR)2025-04-30 20:34Corporate Profile 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 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 payments678 - 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 revenue9 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 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 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 $0.135 per share cash dividend for Q2 - CEO Dave Holeman reported strong Q1 2025 performance with 4.8% same-store Net Operating Income growth, a GAAP leasing spread of 20.3%, and 92.9% occupancy, reaffirming the 2025 core FFO per share guidance for a 4% median year-over-year increase1314 Q1 2025 Operating and Financial Results | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Occupancy Rate (%) | | | | | - Wholly Owned Properties | 92.9% | 93.6% | -0.7 pp | | - >10,000 sq ft | 95.4% | 96.9% | -1.5 pp | | - ≤ 10,000 sq ft | 91.4% | 91.6% | -0.2 pp | | Same-Store NOI Change (%) | 4.8% | 3.1% | +1.7 pp | | Leasing Rate Growth (GAAP, %) | | | | | - Total | 20.3% | 17.0% | +3.3 pp | | - New Leases | 22.6% | 25.9% | -3.3 pp | | - Renewals | 19.9% | 15.0% | +4.9 pp | | Leasing Transactions | | | | | - New Leases (count) | 22 | 24 | -2 | | - New Lease Term Revenue ($ 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 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 Antonio21 - 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 billion23 Conference Call and Supplemental Information 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, 20252627 - 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' tabs28 Forward-Looking Statements and Non-GAAP Measures 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 projections3233 - 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 flow3435363738394041 Financial Results 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 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) 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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) | $642,211 | Summary of Top Tenants This section provides an overview of the company's top tenants by annualized rental revenue, demonstrating a diversified tenant base with low concentration risk Top Tenants by Annualized Rental Revenue The company's tenant base is highly diversified, with the largest tenant, Whole Foods Market, accounting for 2.2% of annualized rental revenue, followed by Albertsons Companies, Inc. at 2.1% and Frost Bank at 1.8%, while the top 15 tenants collectively represent 14.2% of annualized rental revenue, indicating low tenant concentration risk Summary of Top Tenants (As of March 31, 2025, in thousands of dollars) | Tenant Name | Location | Annualized Rental Revenue ($ 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 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 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 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 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 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 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 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 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 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 $24.79 per leased square foot, distributed across key markets including Phoenix, Austin, Houston, Dallas, and San Antonio - The property portfolio includes Ahwatukee Plaza, BLVD Place, Davenport Village, Eldorado Plaza, and others, located in key markets such as Phoenix, Austin, Houston, Dallas, and San Antonio, with varying occupancy rates and rent levels across properties, for instance, BLVD Place and Arcadia Towne Center achieved 100% occupancy107 Wholly Owned Property Portfolio Overview (As of March 31, 2025) | Metric | Data | | :--- | :--- | | Total Gross Leasable Area (GLA) (sq ft) | 4,863,562 | | Overall Occupancy Rate (%) | 93% | | Average Annualized Base Rent (per sq ft) ($) | $24.51 | | Average Net Effective Annualized Base Rent (per leased sq ft) ($) | $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) |