Whitestone REIT Q2 2025 Earnings Presentation Industry Leaders in High- Value Shop Space The Value of Shop Space "Shop Spaces" are the smaller spaces within centers, often in the high-demand 1,500 – 3,000 square foot range that suit regional or local service-based tenants | | Higher Growth | More Durable Cash Flows | | --- | --- | --- | | ➢ | Shop Spaces command higher rents and higher | ➢ Whitestone's underwriting assesses the full strength | | | contractual escalators due to the overall demand for | of th ...

Financial Data and Key Metrics Changes - The company reported a second quarter NOI of $33.6 million, reflecting a 6.3% increase year-over-year, driven by a 5.3% same store NOI growth [12][14] - FFO per share for Q2 was $0.29, a 3.6% increase from the same quarter last year, while total company FFO was $0.48 per share, up $0.20 from Q2 of the previous year [12][14] - General and administrative expenses decreased by 3.3% year-over-year to approximately $7 million for the quarter [13] Business Line Data and Key Metrics Changes - The company executed 52 leases in its improved property portfolio, representing approximately 184,000 square feet of GLA and $6.1 million of ABR [9] - Blended leasing spreads were reported at 6.8% on a comparable basis, with leased occupancy at 95.8%, up 40 basis points sequentially and 190 basis points year-over-year [10] - Economic occupancy at quarter end was 94.8%, an increase of 90 basis points from the previous quarter and 200 basis points from the same period last year [10] Market Data and Key Metrics Changes - The transaction market in Hawaii is beginning to open up, with the company seeing a number of exciting acquisition opportunities [9] - The company noted that while there is active capital looking for opportunities in Hawaii, it remains competitive, particularly in the mid-range deal sizes [46][47] Company Strategy and Development Direction - The company is focused on three priorities for 2025: improving CRE portfolio performance, internal and external growth, and streamlining business and cost structure [6] - The company is actively adding to its industrial asset base through current developments and is optimistic about future acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in portfolio performance and growth prospects, raising the 2025 guidance for same store NOI to a range of 3.4% to 3.8% [14][15] - Management acknowledged potential challenges in the third quarter due to strong results in the same period last year, but expects the fourth quarter to align more closely with first half performance [49] Other Important Information - The company has total liquidity of over $300 million and a net debt to adjusted EBITDA ratio of 3.3 times, with approximately 95% of its debt at fixed rates [14] - A second quarter dividend of $0.025 per share was paid, with a third quarter dividend declared at the same rate [14] Q&A Session Summary Question: Improvement in the transaction market - Management noted that the market is starting to open up with more opportunities across asset classes, although no specific deal profiles were highlighted [20] Question: Comparable leasing spreads - Management explained that while the leasing activity was strong, there were no major outliers affecting the spreads, leading to a slight decrease compared to previous quarters [21][22] Question: Below market lease expirations - Management indicated that growth is driven by market fundamentals rather than specific mark-to-market opportunities, with strong sales and foot traffic supporting performance [25][26] Question: Impact of Sam's Club TI on AFFO - Management clarified that the $20 million TI is considered non-recurring for AFFO calculations, as it is atypical and related to a long-term lease extension [30][56] Question: Legacy issues and future obligations - Management expressed confidence that they are fully reserved for legacy obligations and do not expect any material issues in the near term [42][43] Question: Competitive landscape in investment sales - Management acknowledged active competition in the market but emphasized their local knowledge and balance sheet strength as competitive advantages [46][47] Question: Same store growth dynamics - Management explained that while the first half of the year showed strong performance, the third quarter's growth may be impacted by strong results from the previous year [49] Question: Health of tenants - Management reported no signs of trouble among tenants, with strong customer traffic and sales trends observed [75] Question: Impact of tariffs on construction costs - Management noted that inflation has impacted construction costs, but they are taking measures to mitigate these risks [76]

Whitestone REIT Q1 2025 Earnings Presentation Industry Leaders in High- Value Shop Space The Value of Shop Space "Shop Spaces" are the smaller spaces within centers, often in the high-demand 1,500 – 3,000 square foot range that suit regional or local service-based tenants | | Higher Growth | More Durable Cash Flows | | --- | --- | --- | | ➢ | Shop Spaces command higher rents and higher | ➢ Whitestone's underwriting assesses the full strength | | | contractual escalators due to the overall demand for | of th ...

Financial Data and Key Metrics Changes - In Q4 2024, the total portfolio same store NOI grew by 21.6% year over year, bringing full year 2024 same store NOI growth to 17.7% compared to 2023 [17][28] - The normalized funds from operation (NFFO) for Q4 was $0.40 per diluted share, resulting in full year 2024 NFFO of $1.41, which was within the guidance range [28][29] - The net debt to adjusted EBITDA ratio improved significantly from 8.5x at the end of 2023 to 4.3x at the end of 2024 [13][32] Business Line Data and Key Metrics Changes - The Trilogy segment achieved same store NOI growth of 28% year over year in Q4 2024, with full year growth at 23.8% [17][18] - The SHOP segment saw same store NOI growth of over 65% year over year in Q4 2024, with full year growth reaching a record 52.8% [20][21] - Trilogy and SHOP segments accounted for 71% of total NOI by the end of Q4 2024, with expectations for continued growth in these segments [11] Market Data and Key Metrics Changes - The aging population is projected to grow by over 700,000 individuals annually, while the senior housing industry has added less than 20,000 units on average each year since 2020, indicating a favorable demand-supply dynamic [9][10] - The company noted persistent barriers to new supply in the market, with construction starts decelerating despite increasing demand [22][23] Company Strategy and Development Direction - The company is focused on accretive external growth through RIDEA structured senior housing and care investments, leveraging its favorable cost of capital [12] - In 2024, the company invested over $650 million in external growth within its Managed Long Term Care segments and plans to continue this strategy in 2025 [12][26] - The company aims to enhance its portfolio quality by disposing of lower growth assets and targeting high-quality acquisitions [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term care landscape, citing strong demand fundamentals and limited new supply as key drivers for future growth [22][30] - The company anticipates double-digit growth in same store NOI for 2025, supported by strong occupancy and pricing strategies [30][31] - Management acknowledged potential headwinds from seasonal factors and regulatory changes but remains optimistic about operational performance [16][39] Other Important Information - The company has received inquiries regarding potential Medicaid policy changes but emphasized that any speculation is premature [15][56] - The company is under contract to acquire two new SHOP assets for approximately $70.5 million and plans to start several new Trilogy development projects in 2025 [26][13] Q&A Session Summary Question: Trends in January and February - Management noted that while Q1 2025 NOI is expected to be higher than Q1 2024, it may not see growth compared to Q4 2024 due to seasonal factors and resets in compensation-related expenses [35][38] Question: Acquisition Pipeline - The acquisition pipeline is robust, with a significant number of potential deals being evaluated, indicating a favorable environment for new opportunities [42][43] Question: Occupancy Tipping Point - Management indicated that occupancy levels are above pre-COVID levels, allowing for rate increases and margin expansion, particularly in the Trilogy segment [48][49] Question: Medicaid Exposure - The company has reduced its Medicaid exposure to about 21% of its revenue, and management believes that potential Medicaid cuts would have limited impact due to the strategic focus on higher-paying Medicare and private pay residents [54][56] Question: Trilogy Developments and Expansions - Management reported that several expansions and new projects are planned for 2025, with expectations for quicker stabilization of new campuses due to strong demand [82][90]