Whitestone REIT (WSR) Bundle
A Brief History of Whitestone REIT
Whitestone REIT, a real estate investment trust (REIT), has undergone significant changes and developments as of 2024. Established to focus on community-centered properties, the company has strategically aligned its portfolio to enhance shareholder value and optimize operational efficiencies.
Financial Performance Overview
As of September 30, 2024, Whitestone REIT reported a net income of $7.7 million, compared to $2.5 million for the same period in 2023, indicating a strong year-over-year growth. The total revenues for the nine months ended September 30, 2024, were approximately $19.8 million, up from $17.9 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $7.7 million | $2.5 million | $5.2 million | 208% |
| Total Revenues | $19.8 million | $17.9 million | $1.9 million | 11% |
Acquisitions and Dispositions
In 2024, Whitestone REIT has strategically acquired several properties to enhance its portfolio. Notably, the acquisition of Scottsdale Commons on April 5, 2024, added significant value to the company's asset base. Conversely, the company disposed of several properties, including Fountain Hills Plaza and Mercado at Scottsdale Ranch, to streamline operations and focus on core assets.
Debt and Capital Management
As of September 30, 2024, Whitestone REIT reported total notes payable of approximately $633.6 million, a slight decrease from $640.2 million in 2023. The company maintained a robust capital structure, with $121 million available under its 2022 Revolver, which provides flexibility for future acquisitions and operational needs.
| Debt Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Notes Payable | $633.6 million | $640.2 million |
| Revolver Availability | $121 million | N/A |
Shareholder Returns and Distributions
Whitestone REIT has maintained a consistent distribution policy. For the nine months ending September 30, 2024, the company paid distributions totaling $18.6 million, compared to $18.0 million in the same period in 2023. The distribution per common share for Q3 2024 was $0.1238, reflecting the company's commitment to returning value to its shareholders.
| Distribution Overview | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Distributions Paid | $6.2 million | $6.0 million |
| Distribution per Share | $0.1238 | $0.1200 |
Market Position and Future Outlook
As of 2024, Whitestone REIT is well-positioned to capitalize on market opportunities due to its focus on community-centered properties and strategic asset management. The company continues to assess its portfolio and market conditions to ensure sustainable growth and value creation for its investors.
A Who Owns Whitestone REIT (WSR)
Major Shareholders
As of 2024, Whitestone REIT (WSR) has a diverse ownership structure, including institutional investors, individual shareholders, and insider holdings. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Entity Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 12.5% |
| Institutional Investor | BlackRock, Inc. | 10.3% |
| Institutional Investor | State Street Corporation | 7.8% |
| Individual Shareholder | James W. Mastandrea (CEO) | 5.0% |
| Individual Shareholder | Other insiders and management | 2.0% |
| Public Float | Various Retail Investors | 62.4% |
Recent Developments Impacting Ownership
On January 25, 2024, Whitestone REIT exercised its notice of redemption for substantially all of its investment in Pillarstone OP, which previously represented an 81.4% ownership interest valued at $31.67 million as of December 31, 2023. Following this redemption, the company ceased utilizing the equity method for Pillarstone OP.
Financial Performance and Shareholder Impact
For the three months ended September 30, 2024, net income attributable to common shareholders was reported at $7.624 million, translating to a diluted earnings per share of $0.15. The weighted average number of common shares outstanding was 51.305 million.
Future Outlook
As of September 30, 2024, Whitestone REIT had total revenues of approximately $38.6 million, a slight increase from $37.1 million for the same period in 2023. The company anticipates growth in rental income due to property additions and rent increases.
Debt Structure
As of September 30, 2024, Whitestone REIT's total notes payable amounted to $634.570 million, with scheduled maturities as follows:
| Year | Amount Due (in thousands) |
|---|---|
| 2024 (remaining) | $18,062 |
| 2025 | $17,596 |
| 2026 | $146,143 |
| 2027 | $97,414 |
| 2028 | $282,823 |
| Thereafter | $72,532 |
Conclusion of Ownership Structure
Whitestone REIT's ownership is characterized by a combination of institutional and individual investors, alongside significant management holdings. The recent strategic decisions regarding Pillarstone OP have altered the landscape of ownership and are expected to influence the company's financial trajectory moving forward.
Whitestone REIT (WSR) Mission Statement
Company Overview
Whitestone REIT (WSR) focuses on managing and acquiring community-centered properties across select markets. The company operates under a mission to enhance the quality of life in the communities it serves by providing high-quality retail and mixed-use properties that foster community engagement.
Mission Statement
Whitestone REIT’s mission is to create and manage high-quality community-centered properties that enhance the local community, focusing on tenant success and sustainable growth.
Core Values
- Community Engagement: Fostering connections among local businesses and residents.
- Sustainability: Implementing eco-friendly practices in property management and development.
- Tenant Success: Prioritizing the needs of tenants to ensure their growth and satisfaction.
- Integrity: Conducting business with honesty and transparency.
Financial Performance
As of September 30, 2024, Whitestone REIT reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Rental Revenues | $112,328 |
| Net Income | $19,813 |
| Total Assets | $1,112,561 |
| Total Liabilities | $687,557 |
| Equity | $425,004 |
| Distributions Paid | $18,565 |
Recent Developments
In 2024, Whitestone REIT has undertaken several strategic acquisitions, including:
- Scottsdale Commons acquired for $22.2 million.
- Garden Oaks Shopping Center acquired for $27.2 million.
- Anderson Arbor Pad acquired for $0.9 million.
Distribution Strategy
Whitestone REIT has increased its quarterly distribution to $0.12375 per common share and OP unit, reflecting the company's commitment to returning value to its shareholders. The following distribution amounts were reported:
| Quarter | Distributions per Common Share | Total Amount Paid (in thousands) |
|---|---|---|
| Q1 2024 | $0.1200 | $6,049 |
| Q2 2024 | $0.1238 | $6,242 |
| Q3 2024 | $0.1238 | $6,274 |
| Total 2024 | $0.3676 | $18,565 |
Conclusion
Whitestone REIT continues to pursue its mission of enhancing community life through strategic property management and development while delivering consistent financial performance and shareholder value.
How Whitestone REIT (WSR) Works
Company Overview
Whitestone REIT (WSR) operates as a real estate investment trust (REIT) focusing on community-centered retail and mixed-use properties. As of September 30, 2024, it owned and operated 55 properties across the United States, with an aggregate Gross Leasable Area (GLA) of approximately 4,943,761 square feet.
Financial Performance
For the nine months ended September 30, 2024, Whitestone REIT reported the following financial metrics:
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Revenues | $113,444,000 | $109,445,000 |
| Total Operating Expenses | $77,507,000 | $74,204,000 |
| Net Income | $19,556,000 | $17,639,000 |
| Funds from Operations (FFO) | $36,064,000 | $34,387,000 |
| Property Net Operating Income (NOI) | $79,972,000 | $77,329,000 |
Occupancy Rates
The ending occupancy rate for the operating portfolio was 94% as of September 30, 2024, compared to 93% in the previous year.
Distributions
Distributions paid on common shares and OP units were $18,565,000 for the nine months ended September 30, 2024, compared to $18,003,000 for the same period in 2023. The distribution per common share and OP unit was $0.3676 for 2024 versus $0.3600 for 2023.
Debt Structure
As of September 30, 2024, Whitestone REIT had total notes payable of $633,552,000. The debt consisted of the following:
| Description | Amount ($) | Interest Rate | Due Date |
|---|---|---|---|
| Fixed Rate Notes | $265,000,000 | 3.18% + 1.45% to 2.10% | January 31, 2028 |
| Fixed Rate Note | $80,000,000 | 3.72% | June 1, 2027 |
| Fixed Rate Note | $19,000,000 | 4.15% | December 1, 2024 |
| Unsecured Line of Credit | $79,000,000 | SOFR + 1.50% to 2.10% | September 16, 2026 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, cash provided by operating activities was $40,156,000. The cash flow from operations exceeded distributions by approximately $21,591,000.
Acquisitions and Dispositions
During 2024, Whitestone REIT acquired the following properties:
| Property Name | Acquisition Price ($) | Leased (%) | Date |
|---|---|---|---|
| Scottsdale Commons | $22,200,000 | 96.6% | April 5, 2024 |
| Garden Oaks Shopping Center | $27,200,000 | 95.8% | February 20, 2024 |
| Anderson Arbor Pad | $900,000 | N/A | April 1, 2024 |
Tenant Overview
As of September 30, 2024, Whitestone REIT had 1,466 tenants, with the largest tenant accounting for only 2.1% of annualized rental revenues. Lease terms typically range from less than one year to over 15 years.
Employee Structure
Whitestone REIT employed 73 full-time employees as of September 30, 2024, managing its operations internally.
How Whitestone REIT (WSR) Makes Money
Revenue Generation
Whitestone REIT primarily generates revenue through rental income from its properties. For the three months ended September 30, 2024, the total revenues amounted to approximately $38.6 million, compared to $37.1 million for the same period in 2023. For the nine months ending September 30, 2024, total revenues were $113.4 million, an increase from $109.4 million in the corresponding period of 2023.
Rental Income Breakdown
The rental income consists of various components, as detailed below:
| Component | Three Months Ended September 30, 2024 (in $000s) | Three Months Ended September 30, 2023 (in $000s) | Change | % Change |
|---|---|---|---|---|
| Rental Revenues | $27,114 | $26,521 | $593 | 2.2% |
| Recoveries | $11,338 | $10,535 | $803 | 7.6% |
| Bad Debt Adjustments | ($345) | ($389) | $44 | (11.3%) |
| Total Rental Income | $38,107 | $36,667 | $1,440 | 3.9% |
Occupancy Rates and Lease Management
As of September 30, 2024, Whitestone REIT reported an occupancy rate of 94% across its operating portfolio, up from 93% in the previous year. This increase is critical as higher occupancy rates directly correlate with increased rental revenue.
The company has a diverse tenant base, with the largest tenant contributing only 2.1% of annualized rental revenues. In the nine months ending September 30, 2024, Whitestone completed 219 new and renewal leases, totaling 735,695 square feet and approximately $78.2 million in total lease value.
Property Net Operating Income (NOI)
Property Net Operating Income is a crucial metric for assessing the profitability of Whitestone's properties. For the nine months ended September 30, 2024, the NOI was approximately $79.972 million, compared to $77.329 million for the same period in 2023, reflecting a growth of 3.4%.
Operating Expenses
The total operating expenses for Whitestone REIT were $77.507 million for the nine months ended September 30, 2024, compared to $74.204 million in 2023. The key components of these expenses included:
| Expense Type | 2024 (in $000s) | 2023 (in $000s) | Change |
|---|---|---|---|
| Property Operations and Maintenance | $19,633 | $18,665 | $968 |
| Real Estate Taxes | $12,450 | $13,636 | ($1,186) |
Debt Management
As of September 30, 2024, Whitestone REIT had total debt of $634.570 million. The company has secured debt collateralized by properties with a carrying value of $242.7 million. Scheduled maturities of outstanding debt are as follows:
| Year | Amount Due (in $000s) |
|---|---|
| 2024 (remaining) | $18,062 |
| 2025 | $17,596 |
| 2026 | $146,143 |
| 2027 | $97,414 |
| 2028 | $282,823 |
| Thereafter | $72,532 |
| Total | $634,570 |
Distributions to Shareholders
For the nine months ended September 30, 2024, Whitestone REIT paid $18.565 million in distributions to common shareholders and OP unit holders, compared to $18.003 million in the same period of 2023. The distribution per common share and OP unit was $0.3676 in 2024.
Conclusion
Whitestone REIT's business model focuses on maintaining high occupancy rates, optimizing rental income, managing operational expenses effectively, and ensuring a reliable distribution of earnings to its shareholders. The company's ability to adapt to market conditions, along with its diversified tenant base, positions it well for continued revenue generation in the future.
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Article updated on 8 Nov 2024
Resources:
- Whitestone REIT (WSR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Whitestone REIT (WSR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Whitestone REIT (WSR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.