Whitestone REIT(US:WSR)2022-03-02 19:47Financial Data and Key Metrics Changes - Revenue growth of 11.5% for Q4 2021 compared to Q4 2020, totaling $33 million [7][30] - Full year revenue increased by 6.3% to $125.4 million from $117.9 million in 2020 [30] - Same-store net operating income rose by 12.8% year-over-year [7] - Full year FFO per diluted share grew by 4% to $0.86, with an adjusted growth of 8.9% excluding loan forgiveness from 2020 [31] Business Line Data and Key Metrics Changes - Same-store occupancy increased to 91.7% from 88.2%, a rise of 350 basis points [21] - Positive leasing spreads of 14.9% in Q4 and 8% for the full year [21] - New leasing spreads increased by 11.2% in Q4 and 6.1% for the full year [21] - Renewal leasing spreads increased by 15.7% in Q4 and 12.2% for the full year [21] Market Data and Key Metrics Changes - Focus on high-growth markets in the Sunbelt, including Houston, Dallas-Fort Worth, Austin, San Antonio, Phoenix, and Scottsdale [24] - Average base rent (ABR) increased by almost 8% in 2021, reaching over $21 per square foot [25] Company Strategy and Development Direction - Commitment to reduce general and administrative costs and align with corporate governance best practices [13][14] - Focus on maximizing shareholder value through leasing and organic growth rather than acquisitions in the first half of 2022 [15][18] - Evaluation of the entire portfolio to identify properties for monetization and reinvestment [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong leasing momentum and traffic in early 2022 [39] - Anticipation of continued strong cash collections and no significant tenant issues for 2022 [42] - Guidance for FFO per share expected to range from $0.98 to $1.02, representing a 14% to 19% increase from 2021 [34][35] Other Important Information - Total net debt at the end of 2021 was $636 million, improving the debt to gross book real estate cost ratio to 51% [32] - Quarterly dividend of $0.12 per share approved for Q2 2022, an increase of 11.6% from Q1 2022 [34] Q&A Session Summary Question: Is becoming a pure-play shopping center REIT a goal for Whitestone over time? - Management confirmed the intention to focus on community center properties and liquidate non-core assets [38] Question: How is the leasing momentum looking in Q1? - Management reported strong traffic and leasing activity, particularly in the health and wellness sector [39] Question: What is the breakdown of G&A cost reductions for 2022? - Expected one-time reductions of $500,000 and about $2 million in share-based compensation expense reductions [41] Question: Is the bad debt estimate conservative? - Management indicated that the 1.5% bad debt estimate may be conservative, with strong collections expected [42] Question: Are there any development or redevelopment plans? - Management confirmed ongoing opportunities for redevelopment and outparcels, with a focus on organic growth [44][46]