Whitestone REIT(WSR) - 2025 Q2 - Quarterly Results

Corporate Profile This section introduces Whitestone REIT, detailing its business model, market focus, and key operational and financial statistics Company Overview Whitestone REIT (NYSE: WSR) is a community-centered shopping center REIT focused on acquiring, owning, managing, developing, and redeveloping high-quality open-air neighborhood centers primarily in the largest, fastest-growing, and high-household-income markets in the Sun Belt - Whitestone REIT is a community-centered shopping center REIT operating in Sun Belt markets, focusing on high-quality open-air neighborhood centers[6] - The company invests in properties that are or can become Community Centered Properties®, targeting smaller rental spaces for attractive returns[7] - Whitestone has a diverse tenant base concentrated on service offerings (specialty retail, grocery, restaurants, medical, educational, financial services, entertainment), with smaller spaces (less than 10,000 sq ft) commanding a 95% premium rental rate[9] Common Shares and Operating Data | Metric | Value | | :-------------------------------- | :------------------- | | Common Shares Outstanding | 51.0 million | | Operating Partnership Units Outstanding | 0.6 million | | Distribution (per share / unit) - Quarter | $0.135 | | Distribution (per share / unit) - Annualized | $0.54 | | Dividend Yield (as of July 28, 2025) | 4.37% | | Number of Community Centers | 56 | | Gross Leasable Area (GLA) | 4.9 million sq. ft. | | Number of Tenants | 1,456 | | Fiscal Year End | 12/31 | Second Quarter 2025 Earnings Release This section presents Whitestone REIT's strong Q2 2025 financial and operational performance, reiterating full-year guidance and providing details for the earnings conference call Q2 2025 Performance Highlights and Guidance Whitestone REIT reported a strong second quarter 2025, with Core FFO per share increasing by 5.4% year-over-year, occupancy growing to 93.9%, and average base rent per leased square foot rising by 5.3% - CEO Dave Holeman highlighted a strong quarter with a 5.4% year-over-year increase in Core FFO per share, 100bps occupancy growth from Q1-25 to 93.9%, and a 5.3% year-over-year increase in average base rent per leased square foot to $25.28[13] - The company is reiterating its Core FFO per share and Same Store Net Operating Income guidance for the full year 2025[13] Second Quarter 2025 Operating Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------- | :------ | :------ | :----- | | Occupancy - Wholly Owned Properties | 93.9% | 93.5% | +0.4% | | Same Store Property NOI Change | 2.5% | 6.6% | -4.1% | | Rental Rate Growth - Total (GAAP Basis) | 17.9% | 17.5% | +0.4% | | New Leases - Rental Rate Growth | 41.4% | 33.3% | +8.1% | | Renewal Leases - Rental Rate Growth | 15.2% | 13.9% | +1.3% | | Number of New Leases | 24 | 30 | -6 | | New Leases - Lease Term Revenue (millions) | $8.9 | $16.1 | -$7.2 | | Number of Renewal Leases | 54 | 47 | +7 | | Renewal Leases - Lease Term Revenue (millions) | $24.3 | $20.7 | +$3.6 | Second Quarter 2025 Financial Results (in millions) | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change | | :------------------------------------- | :----------------- | :----------------- | :----- | | Revenues | $37.9 | $37.6 | +$0.3 | | Net Income attributable to common shareholders | $5.1 | $2.6 | +$2.5 | | Net Income per diluted share | $0.10 | $0.05 | +$0.05 | | Core FFO | $13.5 | $12.6 | +$0.9 | | FFO per diluted share | $0.26 | $0.22 | +$0.04 | | Core FFO per diluted share | $0.26 | $0.24 | +$0.02 | | EBITDAre | $21.9 | $20.2 | +$1.7 | | Same-Store NOI | $25.0 | $24.4 | +$0.6 | | Net Effective Annual Base Rental Revenue per leased sq ft | $25.28 | N/A | +5.3% YoY | Year-to-Date 2025 Financial Results (in millions) | Metric | YTD 2025 (millions) | YTD 2024 (millions) | Change | | :------------------------------------- | :------------------ | :------------------ | :----- | | Revenues | $75.9 | $74.8 | +$1.1 | | Net Income attributable to common shareholders | $8.8 | $11.9 | -$3.1 | | Net Income per diluted share | $0.17 | $0.23 | -$0.06 | | Core FFO | $26.6 | $24.8 | +$1.8 | | FFO per diluted share | $0.51 | $0.45 | +$0.06 | | Core FFO per diluted share | $0.51 | $0.48 | +$0.03 | | EBITDAre | $43.3 | $40.7 | +$2.6 | | Same-Store NOI | $49.3 | $47.5 | +$1.8 | - A quarterly cash distribution of $0.135 per common share and OP unit was declared for Q3 2025, payable in three equal installments[19] 2025 Full Year Guidance Update | Metric | Q2 2025 Revised Guidance | 2025 Original Guidance | | :------------------------------------- | :----------------------- | :--------------------- | | Net income attributable to Whitestone REIT | $17,135 - $19,219 | $17,135 - $19,219 | | Core FFO | $54,158 - $56,268 | $54,158 - $56,268 | | Net income attributable to Whitestone REIT per share | $0.33 - $0.37 | $0.33 - $0.37 | | Core FFO per diluted share and OP Unit | $1.03 - $1.07 | $1.03 - $1.07 | | Same store net operating income growth | 3.0% - 4.5% | 3.0% - 4.5% | | Bad debt as a percentage of revenue | 0.75% - 1.00% | 0.75% - 1.00% | | General and administrative expense | $20,800 - $22,800 | $20,800 - $22,800 | | Interest expense | $33,000 - $34,000 | $32,000 - $33,000 | | Ending occupancy | 94.0% - 95.0% | 94.0% - 95.0% | - As of June 30, 2025, Whitestone wholly owned 56 Community-Centered Properties™ (4.9 million sq ft GLA), with 5 land parcels for future development[21] - The portfolio is concentrated in Texas (32 properties) and Arizona (24 properties), specifically in high-traffic, high-household-income MSA's of Austin, Dallas-Fort Worth, Houston, Phoenix, and San Antonio[21] - Total debt as of June 30, 2025, was $671.2 million, with $68.7 million capacity and availability under its $250 million revolving credit facility[23] - Undepreciated real estate assets stood at $1.3 billion[23] Conference Call and Supplemental Information Whitestone REIT announced details for its Q2 2025 earnings conference call, providing access information for both live broadcast and replay - The Q2 2025 earnings conference call was scheduled for Thursday, July 31, 2025, at 8:30 A.M. Eastern Time / 7:30 A.M. Central Time, led by CEO Dave Holeman[25] - Webcast and telephone replay information was provided for participants, with the replay available until August 15, 2025[25][26] - Supplemental financial information and the earnings release are accessible on the Investor Relations section of the company's website[27] Financial Results This section details Whitestone REIT's financial statements, including balance sheets, statements of operations, and cash flows, alongside disclosures on forward-looking statements and non-GAAP measures Forward-Looking Statements and Non-GAAP Measures This section outlines the forward-looking nature of the report, detailing various risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements subject to risks including REIT status, economic conditions, real estate market fluctuations, interest rate changes, natural disasters, and geopolitical conflicts[31][32] - Non-GAAP financial measures like EBITDAre, FFO, Core FFO, NOI, Same Store NOI, and Net Debt are used to provide supplemental insights into operating performance and liquidity, as GAAP net income alone has limitations for real estate companies[33][38][39][41] - Core FFO specifically removes the impact of certain non-recurring and non-operating transactions not considered representative of core operating results, such as proxy contest costs[37] Consolidated Balance Sheets The consolidated balance sheets present the financial position of Whitestone REIT and its subsidiaries as of June 30, 2025, and December 31, 2024, showing a slight increase in total assets and liabilities Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | ASSETS | | | | Total real estate assets (net) | $1,037,316 | $1,001,689 | | Cash and cash equivalents | $5,324 | $5,224 | | Total assets | $1,155,534 | $1,134,639 | | LIABILITIES AND EQUITY | | | | Notes payable | $670,345 | $631,518 | | Total liabilities | $722,527 | $690,805 | | Total Whitestone REIT shareholders' equity | $427,513 | $438,153 | | Total equity | $433,007 | $443,834 | | Total liabilities and equity | $1,155,534 | $1,134,639 | Accrued Rents and Accounts Receivable (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Tenant receivables | $16,734 | $17,285 | | Accrued rents and other recoveries | $28,331 | $29,964 | | Allowance for doubtful accounts | ($13,524) | ($14,720) | | Total accrued rents and accounts receivable, net | $32,508 | $33,820 | Consolidated Statements of Operations and Comprehensive Income (Loss) The consolidated statements of operations show an increase in net income attributable to Whitestone REIT for the three months ended June 30, 2025, compared to the prior year, driven by stable revenues and reduced general and administrative expenses Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $37,892 | $37,647 | $75,895 | $74,811 | | Total operating expenses | $24,578 | $26,000 | $50,609 | $51,567 | | Interest expense | $8,291 | $8,788 | $16,388 | $17,307 | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | Basic Earnings Per Share | $0.10 | $0.05 | $0.17 | $0.24 | | Diluted Earnings Per Share | $0.10 | $0.05 | $0.17 | $0.23 | Rental Revenue Breakdown (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rental revenues | $27,850 | $27,372 | $55,055 | $54,236 | | Recoveries | $10,236 | $10,194 | $20,745 | $20,671 | | Bad debt | ($405) | ($86) | ($724) | ($686) | | Total rental | $37,681 | $37,480 | $75,076 | $74,221 | Consolidated Statements of Cash Flows The consolidated statements of cash flows show a decrease in net cash provided by operating activities for the six months ended June 30, 2025, compared to the prior year Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $16,917 | $23,782 | | Net cash used in investing activities | ($50,296) | ($33,023) | | Net cash provided by financing activities | $23,333 | $7,832 | | Net decrease in cash, cash equivalents and restricted cash | ($10,046) | ($1,409) | | Cash, cash equivalents and restricted cash at end of period | $5,324 | $3,231 | Supplemental Cash Flow Disclosures (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :----------------------------- | :----------------------------- | | Cash paid for interest | $16,522 | $17,013 | | Cash paid for taxes | $457 | $432 | | Disposal of fully depreciated real estate | $280 | $45 | | Change in fair value of cash flow hedge | ($5,481) | $5,650 | | Accrued capital expenditures | $719 | $1,629 | | Recognition of operating lease liability | $1,220 | — | Reconciliation of Non-GAAP Measures This section provides detailed reconciliations of GAAP net income to key non-GAAP financial metrics, including FFO, Core FFO, NOI, Same Store NOI, and EBITDAre, along with full-year guidance FFO (NAREIT) and Core FFO This section reconciles Net Income attributable to Whitestone REIT to FFO (NAREIT) and Core FFO, showing an increase in both FFO and Core FFO for the three and six months ended June 30, 2025 FFO (NAREIT) and Core FFO (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | FFO (NAREIT) | $13,473 | $11,270 | $26,621 | $23,088 | | Core FFO | $13,473 | $12,589 | $26,621 | $24,845 | | FFO per common share and OP unit - diluted | $0.26 | $0.22 | $0.51 | $0.45 | | Core FFO per common share and OP unit - diluted | $0.26 | $0.24 | $0.51 | $0.48 | Property Net Operating Income (NOI) This section reconciles Net Income attributable to Whitestone REIT to Net Operating Income (NOI) and Same Store NOI, reflecting improved property operating performance Property Net Operating Income (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | NOI | $26,752 | $26,720 | $53,491 | $53,480 | | Same Store NOI | $25,049 | $24,432 | $49,316 | $47,467 | Earnings Before Interest, Tax, Depreciation and Amortization for Real Estate (EBITDAre) This section reconciles Net Income attributable to Whitestone REIT to EBITDAre, indicating improved operational profitability before non-operating items EBITDAre (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Whitestone REIT | $5,054 | $2,592 | $8,755 | $11,932 | | EBITDAre | $21,866 | $20,172 | $43,262 | $40,713 | Initial Full Year Guidance for 2025 This section provides the projected ranges for Whitestone REIT's full-year 2025 financial performance, including Net Income, FFO, and Core FFO Projected Full Year 2025 Guidance (in thousands, except per share data) | Metric | Low Range | High Range | | :------------------------------------- | :-------- | :--------- | | Net income attributable to Whitestone REIT | $17,135 | $19,219 | | FFO | $54,158 | $56,268 | | Core FFO | $54,158 | $56,268 | | Net income attributable to Whitestone REIT per diluted share | $0.33 | $0.37 | | FFO per diluted share and OP Unit | $1.03 | $1.07 | | Core FFO per diluted share and OP Unit | $1.03 | $1.07 | - Guidance excludes the operational or capital impact of any future unannounced acquisition or disposition activity or the collection of amounts from the Pillarstone bankruptcy[67] Same Store Property Analysis This section analyzes the performance of Whitestone REIT's same-store properties for Q2 and year-to-date 2025, detailing changes in revenues, expenses, and Net Operating Income Q2 2025 Same Store Property Analysis The Same Store Property Analysis for the second quarter of 2025, covering 47 properties, shows a 2% increase in total property revenues and a 3% increase in total property expenses Same Store Property Analysis (47 properties, in thousands) | Metric | Q2 2025 | Q2 2024 | Increase (Decrease) | % Increase (Decrease) | | :------------------------------------- | :------ | :------ | :------------------ | :-------------------- | | Rental revenues | $36,492 | $35,767 | $725 | 2% | | Total property revenues | $36,701 | $35,932 | $769 | 2% | | Property operation and maintenance | $6,884 | $6,560 | $324 | 5% | | Real estate taxes | $3,846 | $3,848 | ($2) | 0% | | Total property expenses | $10,730 | $10,408 | $322 | 3% | | Total property revenues less total property expenses | $25,971 | $25,524 | $447 | 2% | | Same Store NOI | $25,049 | $24,432 | $617 | 3% | - Same Store lease termination fees increased significantly from $1 thousand in Q2 2024 to $19 thousand in Q2 2025, an 1800% increase[70] YTD 2025 Same Store Property Analysis The Year-to-Date 2025 Same Store Property Analysis, covering 46 properties, shows a 3% increase in total property revenues and a 5% increase in total property expenses Same Store Property Analysis (46 properties, in thousands) | Metric | YTD 2025 | YTD 2024 | Increase (Decrease) | % Increase (Decrease) | | :------------------------------------- | :------- | :------- | :------------------ | :-------------------- | | Rental revenues | $71,655 | $69,646 | $2,009 | 3% | | Total property revenues | $72,456 | $70,232 | $2,224 | 3% | | Property operation and maintenance | $13,450 | $12,335 | $1,115 | 9% | | Real estate taxes | $7,797 | $7,809 | ($12) | 0% | | Total property expenses | $21,247 | $20,144 | $1,103 | 5% | | Total property revenues less total property expenses | $51,209 | $50,088 | $1,121 | 2% | | Same Store NOI | $49,316 | $47,467 | $1,849 | 4% | - Same Store lease termination fees increased by 65% year-over-year for the six months ended June 30, 2025[72] Other Financial Information This section provides additional financial and operational data, including capital expenditures, debt payments, non-cash expenses, and property statistics Key Financial Metrics and Operational Data This section provides a snapshot of various financial and operational metrics for Whitestone REIT, including capital expenditures, debt payments, non-cash expenses, and property statistics Other Financial Information (in thousands, except number of properties and employees) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | Tenant improvements | $808 | $510 | $2,373 | $1,223 | | Leasing commissions | $611 | $726 | $1,262 | $1,480 | | Maintenance capital | $1,516 | $1,429 | $3,143 | $1,694 | | Scheduled debt principal payments | — | $231 | — | $718 | | Scheduled bond principal payment | — | $7,143 | $17,143 | $7,143 | | Straight-line rent income | $740 | $897 | $1,476 | $1,782 | | Non-cash share-based compensation expense | $1,044 | $888 | $2,176 | $1,824 | | Undepreciated value of unencumbered properties | $1,037,861 | $939,709 | $1,037,861 | $939,709 | | Number of unencumbered properties | 52 | 50 | 52 | 50 | | Full time employees | 69 | 76 | 69 | 76 | - Annual bond principal payments for Series A Notes began in March 2023, and for Series B Notes in March 2025[75] Market Capitalization and Selected Ratios This section details Whitestone REIT's market capitalization and key financial ratios, including interest coverage and leverage, as of June 30, 2025 Market Capitalization As of June 30, 2025, Whitestone REIT's total market capitalization was approximately $1.3 billion, with equity and debt capitalization each representing 50% of the total Market Capitalization as of June 30, 2025 (in thousands) | Metric | Amount | Percent of Total Market Capitalization | | :------------------------------------- | :------- | :----------------------------------- | | Total equity capitalization | $644,717 | 50% | | Total debt capitalization | $652,254 | 50% | | Total Market Capitalization | $1,296,971 | 100% | - Common shares outstanding were 51,017 thousand, and operating partnership units outstanding were 643 thousand[78] Selected Ratios Whitestone REIT's interest coverage ratio improved to 2.7 for Q2 and YTD 2025, up from 2.4 in the prior year Interest Coverage Ratio | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | EBITDAre | $21,866 | $20,172 | $43,262 | $40,713 | | Interest expense, excluding amortization of loan fees | $8,010 | $8,519 | $15,827 | $16,814 | | Ratio of EBITDAre to interest expense | 2.7 | 2.4 | 2.7 | 2.4 | Leverage Ratio (as of June 30, in thousands) | Metric | 2025 | 2024 | | :------------------------------------- | :----- | :----- | | Total Net Debt | $652,254 | $648,068 | | Undepreciated real estate assets | $1,294,319 | $1,258,799 | | Ratio of debt to real estate assets | 50% | 51% | Debt/EBITDAre Ratio (in thousands) | Metric | Q2 2025 | Q2 2024 | LTM 2025 | LTM 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | Total Net Debt | $652,254 | $648,068 | $652,254 | $648,068 | | Pro forma EBITDAre (annualized for Q2) | $89,392 | $80,780 | $90,058 | $83,270 | | Ratio of debt to pro forma EBITDAre | 7.3 | 8.0 | 7.2 | 7.8 | Summary of Outstanding Debt and Debt Maturities This section outlines Whitestone REIT's total outstanding debt, its composition of fixed and floating rates, and the detailed maturity schedule as of June 30, 2025 Debt Portfolio and Maturity Schedule As of June 30, 2025, Whitestone REIT's total outstanding debt was $671.2 million, comprising a mix of fixed and floating rate notes Total Outstanding Debt (in thousands) | Description | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Fixed rate notes | $519,911 | $502,483 | | Floating rate notes (Unsecured line of credit) | $131,300 | $75,000 | | Total notes payable principal | $671,211 | $632,483 | | Less deferred financing costs, net | ($866) | ($965) | | Total notes payable | $670,345 | $631,518 | Schedule of Debt Maturities as of June 30, 2025 (in thousands) | Year | Amount Due | | :------------------------------------- | :--------- | | 2025 (remaining) | — | | 2026 | $198,443 | | 2027 | $97,414 | | 2028 | $302,823 | | 2029 | $17,867 | | Thereafter | $54,664 | | Total | $671,211 | Summary of Top Tenants This section highlights Whitestone REIT's diversified tenant base, with the largest tenant contributing a minimal percentage to annualized rental revenue Top Tenant Contributions and Lease Details Whitestone REIT's tenant base is highly diversified, with the largest tenant, Whole Foods Market, accounting for only 2.2% of annualized rental revenue - The largest of Whitestone's 1,456 tenants comprised only 2.2% of annualized revenues for the three months ended June 30, 2025, indicating a diversified tenant base[9] Summary of Top Tenants (as of June 30, 2025, in thousands) | Tenant Name | Location | Annualized Rental Revenue | Percentage of Total Annualized Base Rental Revenues | | :------------------------------------- | :----------------------- | :------------------------ | :-------------------------------------------------- | | Whole Foods Market | Houston | $2,471 | 2.2% | | Albertsons Companies, Inc. | Austin and Phoenix | $2,347 | 2.1% | | Frost Bank | Houston | $1,961 | 1.7% | | Fitness Alliance, LLC | Houston and San Antonio | $1,800 | 1.6% | | Newmark Real Estate of Houston LLC | Houston | $1,337 | 1.2% | | Barnes & Noble Booksellers, Inc. | Phoenix and Dallas | $898 | 0.8% | | Walgreens & Co. | Houston and Phoenix | $767 | 0.7% | | Cactus Café Uptown Houston, Inc. | Houston | $758 | 0.7% | | Alamo Drafthouse Cinema | Austin | $740 | 0.7% | | Dollar Tree | Houston and Phoenix | $685 | 0.6% | | Soul Concepts, LLC | Phoenix | $671 | 0.6% | | Starbucks Corporation | Dallas and Phoenix | $635 | 0.6% | | Total Wine | Houston | $564 | 0.5% | | Kroger Co. | Dallas | $483 | 0.4% | | Capital Area Multispecialty Providers | Austin | $465 | 0.4% | | Total Top 15 Tenants | | $16,582 | 14.8% | Tenant Type Summary This section categorizes Whitestone REIT's tenant portfolio by type, showcasing diversification across service-oriented segments, with Restaurants & Food Service as the largest contributor Diversification by Tenant Category Whitestone REIT's tenant portfolio is diversified across various service-oriented categories, with Restaurants & Food Service being the largest segment, contributing 21% of leased square footage and 28% of annualized base rent Tenant Type Summary (as of June 30, 2025) | Tenant Type | % of Leased SF | % of ABR | | :------------------------------------- | :------------- | :------- | | Restaurants & Food Service | 21% | 28% | | Salons | 7% | 9% | | Medical & Dental | 6% | 8% | | Grocery | 12% | 7% | | Financial Services | 5% | 6% | | Fitness | 7% | 6% | | Apparel | 5% | 5% | | General Retail | 7% | 5% | | Non Retail | 3% | 4% | | Home Décor And Improvement | 5% | 4% | | Education | 4% | 3% | | Pet Supply & Services | 3% | 3% | | Off-Price | 3% | 2% | | Local Services | 2% | 2% | | Entertainment | 3% | 2% | | Pharmacies & Nutritional Supplies | 2% | 2% | | Sporting Goods | 2% | 1% | | Wireless | 1% | 1% | | Automotive Supply & Services | 1% | 1% | | Postal Services | 1% | 1% | | Total | 100% | 100% | Summary of Leasing Activity This section provides an overview of Whitestone REIT's leasing performance for Q2 and YTD 2025, detailing new leases, renewals, and comparable rent growth Leasing Activity Overview Whitestone REIT's leasing activity for Q2 2025 included 78 total leases, covering 297,146 square feet with a total lease value of $33.18 million Summary of Leasing Activity (Q2 and YTD, 2025 vs 2024) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------- | :------ | :------ | :------- | :------- | | RENEWALS | | | | | | Number of Leases | 54 | 47 | 116 | 93 | | Total Square Feet | 251,960 | 232,713 | 410,151 | 370,309 | | Total Lease Value | $24,277,000 | $20,730,000 | $45,572,000 | $31,406,000 | | NEW LEASES | | | | | | Number of Leases | 24 | 30 | 46 | 54 | | Total Square Feet | 45,186 | 78,355 | 86,605 | 133,108 | | Total Lease Value | $8,903,000 | $16,094,000 | $18,859,000 | $23,927,000 | | TOTAL LEASES | | | | | | Number of Leases | 78 | 77 | 162 | 147 | | Total Square Feet | 297,146 | 311,068 | 496,756 | 503,417 | | Total Lease Value | $33,180,000 | $36,824,000 | $64,431,000 | $55,333,000 | Comparable Leasing Activity Comparable leasing activity for Q2 2025 showed an 8.1% increase in contractual rent on a cash basis and a 17.9% increase on a straight-lined basis for total comparable leases Comparable Total Leases (Q2 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Number of Leases Signed | 55 | | GLA Signed | 222,116 | | Weighted Average Lease Term | 4.4 years | | TI and Incentives Per Sq. Ft. | $2.87 | | Increase in Contractual Rent (Cash Basis) | 8.1% | | Increase in Straight-lined Rent (Straight-lined Basis) | 17.9% | Comparable New Leases (Q2 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Number of Leases Signed | 8 | | GLA Signed | 13,283 | | Weighted Average Lease Term | 6.2 years | | TI and Incentives Per Sq. Ft. | $36.04 | | Increase in Contractual Rent (Cash Basis) | 25.3% | | Increase in Straight-lined Rent (Straight-lined Basis) | 41.4% | Comparable Renewal Leases (Q2 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Number of Leases Signed | 47 | | GLA Signed | 208,833 | | Weighted Average Lease Term | 4.3 years | | TI and Incentives Per Sq. Ft. | $0.76 | | Increase in Contractual Rent (Cash Basis) | 6.3% | | Increase in Straight-lined Rent (Straight-lined Basis) | 15.2% | Lease Expirations This section presents Whitestone REIT's lease expiration schedule, detailing the percentage of Gross Leasable Area and Annualized Base Rent expiring in upcoming years Lease Expiration Schedule The lease expiration schedule as of June 30, 2025, indicates that 6.4% of Gross Leasable Area (GLA) and 6.7% of Annualized Base Rent (ABR) are set to expire in the remainder of 2025 Lease Expirations by Year (as of June 30, 2025) | Year | Number of Leases | Gross Leasable Area (sq ft) | Percent of Gross Leasable Area | Annualized Base Rent (in thousands) | Percent of Total ABR | Per Square Foot | | :------------------------------------- | :--------------- | :-------------------------- | :----------------------------- | :---------------------------------- | :------------------- | :-------------- | | 2025 | 309 | 313,866 | 6.4% | $7,614 | 6.7% | $24.26 | | 2026 | 224 | 584,867 | 12.0% | $14,772 | 13.0% | $25.26 | | 2027 | 209 | 684,510 | 14.1% | $16,978 | 15.0% | $24.80 | | 2028 | 184 | 577,217 | 11.8% | $14,842 | 13.1% | $25.71 | | 2029 | 165 | 660,466 | 13.6% | $16,192 | 14.3% | $24.52 | | 2030 | 166 | 597,192 | 12.3% | $14,434 | 12.7% | $24.17 | | Total | 1,396 | 4,175,834 | 85.7% | $103,063 | 91.0% | $24.68 | - The table reflects rents in place as of June 30, 2025, and does not include option periods[107] Property Details This section provides an overview of Whitestone REIT's wholly-owned property portfolio, including total GLA, occupancy rates, and geographical concentration Wholly-Owned Property Portfolio Overview Whitestone REIT's portfolio consists of 56 wholly-owned properties, totaling 4,871,932 square feet of Gross Leasable Area with an average occupancy of 94% as of June 30, 2025 Summary of Whitestone Properties (as of June 30, 2025) | Metric | Value | | :------------------------------------- | :---------------- | | Total Gross Leasable Area | 4,871,932 sq ft | | Weighted Average Percent Occupied | 94% | | Total Annualized Base Rental Revenue | $113,292,000 | | Weighted Average Base Rental Revenue Per Sq. Ft. | $24.74 | | Weighted Average Net Effective Annual Base Rent Per Leased Sq. Ft. | $25.28 | - The portfolio includes 56 Community-Centered Properties™, with 5 land parcels held for future development[21][113] - Properties are located in the MSA's of Austin (7), Dallas-Fort Worth (10), Houston (12), Phoenix (24), and San Antonio (3)[21]