Whitestone REIT (WSR) Q3 2024 earnings summary

Executive summary

• Achieved 10 consecutive quarters of leasing spreads above 17%, with Q3 2024 leasing spreads at 25.3% and occupancy at 94.1%.

• Portfolio consists of 55 properties totaling 4.9M SF and 1,466 tenants, focused on high-growth Sun Belt markets in Texas and Arizona.

• Core FFO per share guidance targets 11% growth for 2024, with continued growth expected in 2025.

• Active asset recycling and re-merchandising initiatives drive long-term value and portfolio quality.

• Net income attributable to shareholders rose to $7.6M in Q3 2024, up from $2.5M in Q3 2023.

Financial highlights

• Q3 2024 revenue was $38.6M, up from $37.1M in Q3 2023.

• Core FFO per share was $0.25 in Q3 2024, up from $0.23 in Q3 2023.

• Same-store NOI grew 4.6% in Q3 2024 and 4.9% YTD, with Q3 same-store NOI at $24.2M.

• Net income for Q3 2024 was $7.6M, with EPS at $0.15 (diluted).

• Debt-to-EBITDAre improved to 7.2x, with guidance for 6.6x–7.0x by year-end.

Outlook and guidance

• 2024 Core FFO per share guidance is $0.98–$1.04, targeting 11% growth at midpoint.

• Same-store NOI growth forecasted at 3.75%–4.75% for 2024.

• Net income guidance for 2024 is $24.6M–$27.6M.

• Ending occupancy expected in the 93.8%–94.8% range.

• Guidance range for core FFO remains wide due to uncertainty around Pillarstone monetization.