Whitestone REIT(US:WSR)2025-10-29 21:15Financial Performance - For the three months ended September 30, 2025, net income attributable to common shareholders per diluted share was $0.35, compared to $0.15 for the same period in 2024[12]. - Revenues for Q3 2025 were $41.0 million, an increase from $38.6 million in Q3 2024[18]. - Net Income attributable to common shareholders for Q3 2025 was $18.3 million, or $0.35 per diluted share, compared to $7.6 million, or $0.15 per diluted share in Q3 2024[18]. - Core Funds from Operations ("Core FFO") for Q3 2025 were $13.7 million, up from $13.0 million in Q3 2024[18]. - The company reported a comprehensive income of $17,512,000 for the three months ended September 30, 2025, compared to a loss of $1,207,000 in the same period of 2024[46]. - Net income for the nine months ended September 30, 2025, was $27,431,000, a 38.5% increase compared to $19,813,000 in 2024[49]. - The company updated its 2025 full-year guidance for net income attributable to Whitestone REIT to $30,913 - $33,023 thousand, up from the original guidance of $17,135 - $19,219 thousand[20]. Occupancy and Leasing - The occupancy rate for wholly owned properties was 94.2% in Q3 2025, slightly up from 94.1% in Q3 2024[17]. - The number of new leases signed in Q3 2025 was 21, generating lease term revenue of $15.7 million, compared to 26 new leases and $7.6 million in Q3 2024[17]. - Renewal leases in Q3 2025 totaled 47, with lease term revenue of $13.3 million, compared to 46 renewal leases and $15.3 million in Q3 2024[17]. - The total number of leases signed in Q3 2025 was 68, compared to 72 in Q3 2024, indicating a slight decrease of 5.6%[96]. - The total number of renewal leases signed in Q3 2025 was 47, with a total lease value of $13,341,198, compared to 43 leases valued at $11,660,747 in Q3 2024, indicating a growth of 14.4%[101]. Revenue and Income Growth - Same store property net operating income increased by 4.8% in Q3 2025, compared to a 4.6% increase in Q3 2024[17]. - Total rental rate growth on a GAAP basis was 19.3% in Q3 2025, down from 25.3% in Q3 2024[17]. - Same-Store Net Operating Income ("NOI") grew 4.8% to $25.6 million in Q3 2025, compared to $24.4 million in Q3 2024[18]. - Total property revenues for Same Store properties increased by 5% to $39.093 million for the three months ended September 30, 2025, compared to $37.172 million in 2024[66]. - Total rental income for the nine months ended September 30, 2025, was $115,904,000, up 3.1% from $112,328,000 in the same period of 2024[47]. Debt and Financial Obligations - Total debt as of September 30, 2025, was $646.0 million, with $308.9 million available under its revolving credit facility[22]. - The total liabilities as of September 30, 2025, were $701,226,000, an increase from $690,805,000 as of December 31, 2024, reflecting a rise in financial obligations[41]. - Outstanding debt as of September 30, 2025, was $646,002,000, with total net debt of $639,154,000 after accounting for cash and receivables[80]. - The debt to undepreciated book value ratio improved to 49% as of September 30, 2025, down from 50% in 2024, indicating a slight reduction in leverage[79]. - The interest coverage ratio for the three months ended September 30, 2025, was 2.7, compared to 2.6 for the same period in 2024, reflecting improved earnings relative to interest expenses[76]. Dividends and Shareholder Returns - The company has maintained a monthly dividend for over 15 years, with a current annualized distribution of $0.54 per share[5]. - The company declared a quarterly cash distribution of $0.135 per common share for Q4 2025[19]. Strategic Focus and Market Position - Whitestone's strategic focus is on community-centered properties, primarily in high-growth markets in the Sun Belt region[6]. - The largest tenant accounted for only 2.2% of annualized revenues for the three months ended September 30, 2025, indicating a diverse tenant base[9]. - As of September 30, 2025, Whitestone owned 55 Community-Centered Properties™ with a total gross leasable area of 4.8 million square feet[21]. Operational Metrics - Operating expenses for the three months ended September 30, 2025, totaled $26,925,000, compared to $25,940,000 in the same period of 2024, showing a rise of 3.8%[45]. - General and administrative expenses for the three months ended September 30, 2025, were $5.319 million, compared to $4.878 million in 2024, reflecting an increase of 9%[56]. - The company reported a loss on the sale of properties of $14,174,000 for the nine months ended September 30, 2025, compared to a loss of $10,212,000 in 2024[49]. Cash Flow and Liquidity - Cash and cash equivalents increased to $6,848,000 as of September 30, 2025, from $5,224,000 as of December 31, 2024, indicating improved liquidity[41]. - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $34,907,000, compared to $40,156,000 in 2024[49]. - Cash and cash equivalents at the end of the period were $6,848,000, up from $2,534,000 in 2024[52]. Lease and Rental Details - The Annualized Base Rent for the total properties is $112,872,000, resulting in an average rent per square foot of $25.14[111]. - The company has 1,395 leases in place, with a total of 4,092,924 square feet leased, representing 85.7% of the Gross Leasable Area[105]. - The average net effective annual base rent per leased square foot is $25.59 across all properties[111]. - The company is holding land for development, which currently has no Gross Leasable Area reported[111].