Whitestone REIT (WSR) 1 Aug 24 2024 Q2 Earnings call transcript

Whitestone REIT held its second quarter 2024 earnings conference call, highlighting a robust performance across various aspects of its business. The company, led by CEO David Holeman, COO Christine Mastandrea, and CFO Scott Hogan, reported a strong quarter with key themes centered on operational excellence, strategic acquisitions, and a focus on high growth tenants.

Strong Performance and Strategic Focus

Whitestone REIT's second quarter earnings call showcased a remarkable performance, with a 17.5% increase in overall leasing spreads and a 6.6% growth in same store net operating income (NOI). The company's strategic focus on acquiring and repositioning properties has yielded positive results, with a 17% plus leasing spread over the past nine quarters. The company reiterated its 2024 core FFO guidance of $0.98 to $1.04, and reported $0.24 core FFO per share for the quarter, demonstrating a solid financial foundation.

Key Differentiators Driving Growth

David Holeman emphasized Whitestone's key differentiators that enable the company to drive growth and outperform its peers. These differentiators include a strategic focus on neighborhood and community centers, a strong leasing team, and a tenant base that is selected for growth potential. The company's strategy of acquiring correctly configured centers allows for efficient redevelopment capital allocation and a high mix of high growth tenants. This strategic approach is paying off, as evidenced by Whitestone's outperformance of the peer group in same store net operating income growth.

Capital Efficiency and Operational Excellence

Whitestone's operational efficiency was a recurring theme in the earnings call, with a focus on maximizing return on investment through strategic acquisitions and dispositions. The company's debt to EBITDAre ratio improved to 8 times, excluding proxy contest fees, demonstrating a strong balance sheet. The leasing and property management teams' efforts in remerchandising and curating centers have resulted in a high occupancy rate of 93.5%, underscoring the company's operational excellence.

Looking Ahead

Whitestone's outlook remains positive, with a focus on driving results through its key differentiators and strategic acquisitions. The company is also actively working on refreshing its board of trustees with two new, experienced members, further strengthening its leadership and governance structure. Looking ahead, Whitestone is poised for continued growth and value creation, driven by its strategic focus and operational excellence.

In conclusion, Whitestone REIT's second quarter earnings call provided a comprehensive update on its strong performance and strategic outlook. The company's focus on operational excellence, strategic acquisitions, and a high growth tenant base positions it well for continued success in the real estate sector. With a solid financial foundation and a forward-looking approach, Whitestone REIT is well-positioned for growth and value creation in the years ahead.