Whitestone Rewards Investors With 9% Dividend Hike: Is it Sustainable?

Core Points - Whitestone REIT's board declared a monthly cash dividend of 4.5 cents per share for Q1 2025, marking a 9% increase from the previous payout [1] - The dividend increase supports a payout ratio of approximately 50% of core funds from operations (FFO), reflecting the company's commitment to growing earnings and improving its balance sheet [2] - The company aims to align quarterly dividends with earnings growth and plans to leverage its expertise in high-return retail spaces for significant earnings growth in 2025 [3] Industry Insights - Solid dividend payouts are crucial for attracting REIT investors, and Whitestone's dividend hike demonstrates its ability to generate cash flow from its operating portfolio [4] - Over the past six months, Whitestone's shares have increased by 7.2%, while the industry has seen a growth of 13.3% [4] - Other REITs with better rankings include Welltower and Alpine Income Property Trust, with projected FFO per share growth of 17% and 15.7% respectively for 2024 [5][6]