Whitestone REIT(WSR) GlobeNewswire·2024-12-17 13:05Core Insights - Whitestone REIT continues to demonstrate the effectiveness of its differentiated strategy, with asset values steadily increasing and a strong total shareholder return over the past three years [1][2][7] - The company has achieved a 16% increase in net asset value as assessed by sell-side analysts since Q3 2023, indicating a positive reassessment of its future potential [3][5] Strategy and Operations - 75% of annual base rent (ABR) is derived from high-growth, high-return shop spaces, with an average lease term of 4 years, allowing for quicker adjustments to market rents [3] - The company has maintained a leasing spread exceeding 17% for 10 consecutive quarters, reinforcing the credibility of its operational strategy [4] - Occupancy rates improved to 94.1% in Q3 2024, with a same-store net operating income (NOI) growth target raised to 3.75% - 4.75% after achieving 4.9% year-to-date growth [8] Financial Performance - Core funds from operations (Core FFO) per share are estimated to be between 1.04 for 2024, reflecting an 11% growth compared to 2023 [9][10] - The company has reduced its leverage ratio to 7.2x, with expectations to lower it further to between 6.6x and 7.0x by the end of 2024 [13][45] - Whitestone REIT declared a 9% increase in dividends for Q1 2025, demonstrating confidence in its earnings growth trajectory [10] Portfolio and Growth Strategy - The company has successfully acquired properties such as Garden Oaks Shopping Center and Scottsdale Commons, funded through timely dispositions, enhancing growth potential [17] - Whitestone's portfolio is concentrated in fast-growing sunbelt markets, with a focus on optimizing community connections and tenant relationships [15][24] - The company anticipates further growth opportunities and value creation as it enters 2025, supported by a disciplined acquisition strategy and a refreshed board [23][24][25]