What factors drove the changes in Whitestone Reit's revenue and profit?

What were the key takeaways from Whitestone Reit's earnings call?

What is Whitestone Reit's gross profit margin?

What is the market's earnings forecast for Whitestone Reit next quarter?

What were the key takeaways from Whitestone Reit’s earnings call?

Did Whitestone Reit beat or miss consensus estimates last quarter?

What does Whitestone Reit do and what are its main business segments?

What is the revenue and EPS growth rate for Whitestone Reit year over year?

- **Record Occupancy and Growth**: 94.2% occupancy, 4.8% same-store NOI growth, and 19.3% leasing spreads highlight strong execution.
- **Strategic Redevelopment**: $20-30M capital spend on redevelopments targeting 1%+ NOI growth, with projects like Lion Square 75% complete.
- **Financial Strength**: Core FFO guidance maintained at $1.03-$1.07, debt metrics improving to mid-6s, and $40M Pillarstone JV distribution expected in Q4.
- **Adaptability and Expansion**: Leveraging consumer trends (delivery, health/wellness) and demographic shifts to drive durable cash flows.

**【CEO Summary Section】**
- Achieved 94.2% occupancy, up 30 basis points from Q2, with Q4 expected to be the strongest leasing quarter.
- Delivered 4.8% same-store NOI growth, driven by shop space leases and tenant diversification.
- TAP score increased by 5 points over 2.5 years, leading the peer group, reflecting portfolio strength.
- Completed redevelopments at La Mirada and Lion Square, with Terravita underway, targeting $20-30M capital spend over two years.
- Core FFO per share guidance for 2025: $1.03-$1.07, with long-term growth target of 5%-7%.
- Pillarstone JV settlement expected to distribute $40M in December, pending court approval.

**【COO Summary Section】**
- Signed $29.1M in lease value with 19.3% straight-line spreads (14th consecutive quarter above 17%).
- Foot traffic up 4% YoY, driven by delivery services and health/wellness trends.
- Completed facade renovations at La Mirada and 75% progress on Lion Square, targeting grocery-anchored centers.
- Introduced pickleball at Boulevard, monetizing previously unused roof space.
- Emphasized adaptability to generational, migratory, and technological changes, leveraging Esri data for consumer insights.

**【CFO Financial Commentary】**
- Core FFO per share: $0.26 for Q3, with typical Q4 lift of a few cents.
- Debt-to-EBITDAre ratio expected to improve to mid-to-high 6s in Q4 from 7.2% in Q3.
- Amended credit facility expanded to $150M, with 4.8% weighted average fixed rate and 4.3-year weighted average term.
- Reduced G&A costs by 6% YoY, with dividend coverage maintained at healthy levels.
- Texas real estate tax accruals increased due to ARB valuation process, with costs passed through to tenants.

**【Q&A Highlights】**
- **Leasing Spreads**: 19.3% Q3 spreads expected to continue in 2026, driven by strong demand for retail space.
- **Occupancy**: Small space rollbacks for higher-quality tenants offset slight decline in smaller centers.
- **Acquisitions/Dispositions**: 1-2 more acquisitions and 1-2 dispositions expected in Q4, maintaining $40M+ annual pace.
- **Leverage**: Q4 debt-to-EBITDAre target of mid-to-high 6s, supported by Q4 NOI growth and balance sheet management.
- **Pillarstone JV**: $13.6M received in Q3, with $40M expected in December if court approves settlement.
- **Redevelopment Impact**: 2026 NOI growth from current projects, with Garden Oaks next in line for 2027 impact.

Whitestone REIT (WSR) Q3 2025 Earnings Call Transcript

- **Strong Q2 Growth**: Core FFO up 5.4% YoY, occupancy +100 bps to 93.9%, and rent +5.3% YoY, driven by Sunbelt market strength.
- **Strategic Acquisitions**: $40M+ in 2025H2 purchases (e.g., San Clemente, South Hulen) targeting high-growth areas with >$280K household incomes.
- **Urban Development Catalysts**: Nearby projects like Park Eight Place (+$1B) and TSMC ($165B) in Phoenix driving tenant demand and NOI growth.
- **Financial Strength**: Debt-to-EBITDAre 7.2x (down 0.6x YoY), 50% dividend coverage, and 13.9% EBITDAre growth since Q2 2022.
- **Long-Term Vision**: 5% FFO growth via 3%-5% same-store NOI and 1% redevelopment uplift, supported by disciplined capital recycling.

**【CEO Summary Section】**
- **Q2 2025 Performance**: Core FFO per share grew 5.4% YoY to $0.26, with occupancy rising 100 bps sequentially to 93.9% and average base rent increasing 5.3% YoY to $25.28. Same-store NOI grew 2.5% QoQ and 3.9% YoY.
- **Strategic Initiatives**: 
  - **Remerchandising**: Added Ace Hardware at Terravita and expects Picklr later this year, enhancing tenant mix and future NOI.
  - **Acquisitions**: Purchased San Clemente (Austin) and South Hulen (Fort Worth), aligning with high-growth Sunbelt markets.
  - **Redevelopment**: Lion Square in Houston nearing completion, benefiting from nearby $1 billion Park Eight Place development.
- **Guidance**: Reaffirmed 2025 core FFO of $1.03-$1.07 and same-store NOI growth of 3%-4.5%. Long-term target: 5% FFO growth driven by 3%-5% same-store NOI and 1% redevelopment uplift.
- **Cost Management**: Reduced G&A and interest expense by ~6% YoY, supporting margin expansion.

**【CFO Financial Commentary】**
- **Financial Health**: 
  - Core FFO: $0.26/Q2, $0.51/6 months (5.6% YoY growth).
  - Debt-to-EBITDAre: 7.2x (down from 7.8x YoY), targeting ~7x by year-end.
  - Liquidity: $5.3M cash + $69M credit facility, with dividend coverage at ~50%.
- **Capital Recycling**: Projected $40M acquisitions and dispositions for 2025H2, maintaining portfolio quality.
- **Balance Sheet**: Recasting credit facility to ladder debt and deepen bank relationships, reflecting improved financial profile (EBITDAre +13.9% YoY).

**【Q&A Highlights】**
- **Growth Confidence**: Despite tough comps, Q3/Q4 same-store NOI growth expected to accelerate due to: 
  - 100 bps Q2 occupancy gain driving future NOI.
  - ~$33M new leases (41.4% spreads) entering free rent periods, contributing to 2026 NOI.
  - Urban developments (e.g., South Hulen, Garden Oaks) driving traffic and tenant demand.
- **Acquisition Strategy**: Focused on high-income, low-competition Sunbelt markets; recent purchases (e.g., San Clemente) benefit from Loop 360 traffic upgrades.
- **Leverage Discipline**: Targeting sub-7x debt-to-EBITDAre, with flexibility to act on attractive acquisitions while maintaining balance sheet strength.
- **Interest Expense**: Temporary increase due to acquisition timing, offset by accretive NOI from new properties.


Whitestone REIT (WSR) Q2 2025 Earnings Call Transcript

- **Core FFO Guidance**: $1.03-$1.07 for 2025, supported by 3-5% same-store NOI growth.
- **Leasing Strength**: 20.3% spreads, $31M leases signed (40% above 10-year avg).
- **Redevelopment Impact**: $20-30M annual spend targeting 100bps NOI lift, with Lion Square project +30-50% NOI.
- **Balance Sheet**: 7.2x debt-to-EBITDA (targeting low 6x), $16M cash + $98M revolver.
- **Resilient Tenants**: Service-based mix (77% shop space) outperforms peers, with fitness/restaurant traffic stable.

**【CEO Summary Section】**
- Reiterated core FFO guidance of $1.03-$1.07 for 2025, with 3-5% same-store NOI growth driven by 2% escalators, 1-2% leasing, and 1% redevelopment.
- Q1 same-store NOI growth of 4.8%, above peer average, supported by 20.3% leasing spreads and 4% ABR increase.
- $20-30M annual redevelopment spend targeting 100bps NOI lift by 2028, with Lion Square project expected to boost NOI 30-50%.
- Benefits from Sunbelt job growth (40bps above national average) and reshoring trends (TSMC/Apple investments nearby).

**【COO Commentary】**
- Signed $31M in leases (40% above 10-year average), with 22.6% new lease spreads and 19.9% renewals.
- 77% shop space vs. peer average 50%, enabling tenant mix flexibility and higher traffic (e.g., Picklr at Terravita).
- Proactive tenant management: replaced underperforming tenant at Terravita with Picklr, aligning with community shift to young families.
- Diversified tenant base (largest tenant 2.2% of ABR) reduces leverage risk seen in peers during pandemic.

**【CFO Financial Commentary】**
- Q1 core FFO of $0.25 (up 4.2% YoY), with 3-4.5% full-year same-store NOI target.
- Debt-to-EBITDA improved to 7.2x (vs. 7.8x YoY), targeting low 6x by year-end via operating cash flow ($50-60M) and Pillarstone proceeds ($50-70M).
- $16M cash + $98M revolver liquidity; dividend payout ratio ~50%.
- Intentional occupancy decline (0.7pts) to retenant low-paying grocery store at Terravita with Picklr/Ace Hardware.

**【Q&A Highlights】**
- **Occupancy Decline**: 0.7% drop due to 37k sqft retenanting at Terravita, with new tenants (Picklr/Ace) expected to open Q3.
- **Acquisition Pipeline**: $50M pipeline (funded by cash flow/dispositions), focused on Sunbelt service-based centers.
- **Balance Sheet**: Targeting low 6x leverage via NOI growth and Pillarstone proceeds; 600bps improvement since Q1 2024.
- **Tenant Performance**: Service-based tenants (fitness/restaurants) resilient; high-end restaurants seeing slight pullback but offset by new openings.


Whitestone REIT (WSR)-1 May 25-2025 Q1 Earnings call transcript

- **Growth Momentum**: 11% core FFO growth in 2024, targeting 4-6% organic growth in 2025.
- **Strategic Investments**: $20-30M in high-return redevelopments, driving 100bps NOI growth.
- **Financial Strength**: Debt/EBITDAre under 7x, $15M cash, and no 2025 maturities.
- **Tenant Flexibility**: 2.2% tenant concentration, focusing on service-oriented businesses for resilience.

**【CEO Summary Section】**
- **Past Performance**: Delivered 5.5% CAGR in core FFO over three years, reducing leverage from 9.2x to 6.6x despite 380bps interest rate increase.
- **Future Growth**: Targets 4-6% organic core FFO growth, plus 100bps from acquisitions. Same-store NOI growth driven by 2.3% escalators, 0.8-1.8% leasing spreads, and 100bps redevelopment.
- **Strategic Focus**: 77% high-value shop space, strategic locations with population growth, and supply-demand imbalance in neighborhood retail.

**【COO Operations Summary】**
- **Quality of Revenue**: 5.1% same-store NOI growth in 2024, with tenant upgrades (e.g., EOS Fitness) boosting traffic by 60%.
- **Leasing Success**: 19% renewal spreads, 36.1% new spreads, 21.9% overall. New deals with service-oriented businesses for flexibility.
- ** Redevelopment**: $10-20/sq ft costs, targeting high returns. Williams Trace and Lion Square projects underway.

**【CFO Financial Commentary】**
- **2024 Results**: Core FFO of $1.01 (11% growth), Q4 same-store NOI 5.8%. 2025 guidance includes $0.07 from NOI, $0.03 interest savings, $0.01 G&A reduction.
- **Balance Sheet**: Debt/EBITDAre under 7x, targeting low 6s. Liquidity: $15M cash, $125M credit facility.

**【Q&A Highlights】**
- **Redevelopment**: $20-30M spend over two years, targeting double-digit returns. Larger projects (e.g., Williams Trace) in process.
- **Competitive Environment**: More interest but Whitestone's model remains effective with 2.2% tenant concentration.
- **Lease Termination Fees**: Expected lower in 2025, but timing-dependent. Pillarstone proceeds >$45M, uncertain timing.
- **Occupancy/Cap Rates**: 94.1% occupancy, dispositions at mid-6s cap rates.

WSR

WSR fundamentals

Earnings Call

You can ask Aime