Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today
announced its operating and financial results for the
second quarter of 2024. Whitestone creates neighborhood center
communities in its high-quality open-air shopping centers that it
acquires, owns, manages, develops, and redevelops primarily in some
of the largest, fastest-growing, high-household-income markets in
the Sunbelt.
“Whitestone delivered a very strong quarter
driven by restaurants and fitness offerings that saw 6.6% Same
Store Net Operating Income, GAAP leasing spreads of 33% on new
leases and 14% on renewal leases, portfolio annualized base rent
per square foot increasing 5% from a year ago and occupancy of
93.5%. With the majority of our debt maturities locked until 2027,
we have clear visibility to achieve our leverage objectives. The
leasing environment in our markets remains robust, extending our
streak of nine consecutive quarters with leasing spreads of 17% or
greater. Our curated portfolio in some of the fastest growing
markets in the U.S. provides clear visibility on continued earnings
growth to enhance shareholder value. We are reiterating our 2024
Core FFO per share guidance, which
provides for 11% year-over-year growth at the midpoint.”
|
– Dave Holeman, Chief Executive
Officer |
Second Quarter 2024 Operating and
Financial ResultsAll per share amounts are on a diluted
per common share and operating partnership (“OP”) unit basis unless
stated otherwise.Reconciliations of Net Income Attributable to
Whitestone REIT to FFO, Core FFO, NOI and EBITDAre are included
herein.
- Revenues of $37.6 million versus $36.5 million for
the second quarter of 2023.
- Net Income attributable to common shareholders of $2.6 million,
or $0.05 per diluted share, versus $11.3 million, or $0.22 per
diluted share for the second quarter of 2023.
- Core Funds from Operations (“FFO”) of $12.6 million versus
$10.6 million for the second quarter of 2023.
- FFO per diluted share of $0.22 versus $0.21 for the
second quarter of 2023.
- Core FFO per diluted share was $0.24 versus $0.21 for the
second quarter of 2023.
- EBITDAre of $20.2 million versus $19.2 million for the second
quarter of 2023.
- Same-Store Net Operating Income (“NOI”) grew 6.6% to $24.1
million versus $22.6 million for the second quarter of
2023.
- Net Effective Annual Base Rental Revenue per leased square foot
was up 5.4% to $24.00, compared to the prior year quarter.
Operating Results For the
three-month periods ending June 30, 2024 and 2023, the
Company’s operating highlights were as follows:
|
|
Second Quarter 2024 |
Second Quarter 2023 |
|
Occupancy: |
|
|
|
Wholly Owned Properties – All |
93.5% |
93.3% |
|
>10,000 Sq Ft Occupancy |
97.0% |
96.9% |
|
≤ 10,000 Sq Ft Occupancy |
91.4% |
91.2% |
|
Same Store Property Net Operating Income Change (1) |
6.6% |
0.4% |
|
Rental Rate Growth - Total (GAAP Basis): |
17.5% |
18.7% |
|
New Leases |
33.3% |
32.2% |
|
Renewal Leases |
13.9% |
16.2% |
|
Leasing Transactions: |
|
|
|
Number of New Leases |
30 |
27 |
|
New Leases - Lease Term Revenue (millions) |
$16.1 |
$12.0 |
|
Number of Renewal Leases |
47 |
58 |
|
Renewal Leases - Lease Term Revenue (millions) |
$20.7 |
$14.5 |
Balance Sheet and Debt
Metrics
- As of June 30, 2024, Whitestone had total debt of
$666.7 million, along with capacity and availability of $115.0
million each under its $250 million revolving credit facility.
- As of June 30, 2024, the Company has undepreciated real estate
assets of $1.3 billion.
Dividend
On June 10, 2024, the Company declared a quarterly cash
distribution of $0.12375 per common share and OP unit for
the third quarter of 2024, to be paid in three equal installments
of $0.04125 in July, August, and September of 2024.
2024 Full Year Guidance
The Company has updated its 2024 full-year guidance for net
income attributable to Whitestone REIT, same store net operating
income growth, general and administrative expense, the gain on sale
of property to include the impact of the gain recognized on the
sale of Mercado at Scottsdale Ranch, interest expense expectations
partially related to timing differences of property sales and
acquisitions, and the impact of proxy contest
costs. The guidance update is as follows:
| |
|
Q2 2024 Revised Guidance |
2024 Original Guidance |
| |
|
(unaudited, amounts in thousands except per share and
percentages) |
|
Net income attributable to Whitestone REIT (1)(2) |
|
$21,368 - $24,368 |
$16,600 - $19,600 |
|
Core FFO (3) |
|
$50,985 - $53,985 |
$50,985 - $53,985 |
| |
|
|
|
|
Net income attributable to Whitestone REIT per share |
|
$0.41 - $0.47 |
$0.32 - $0.38 |
|
Core FFO per diluted share and OP Unit (3) |
|
$0.98 - $1.04 |
$0.98 - $1.04 |
| |
|
|
|
| Key Drivers: |
|
|
|
|
Same store net operating income growth (4) |
|
3.0% - 4.5% |
2.5% - 4.0% |
|
Bad debt as a percentage of revenue |
|
0.60% - 1.10% |
0.60% - 1.10% |
|
General and administrative expense (1) |
|
$22,057 - $23,557 |
$19,700 - $21,200 |
|
Interest expense |
|
$33,400 - $34,900 |
$32,600 - $34,100 |
|
Ending occupancy |
|
93.8% - 94.8% |
93.8% - 94.8% |
|
Gain on sale of property (2) |
|
$6,525 |
$0 |
|
Net Debt to EBITDAre Ratio (5) |
|
7.0X - 6.6X |
7.0X - 6.6X |
|
(1) |
2024 revised guidance includes estimated proxy contest costs of
$1,757. |
| (2) |
2024 revised guidance includes a
gain on sale of property that occurred during the first
quarter. |
| (3) |
For the reconciliation of
forward-looking non-GAAP financial measure to the comparable GAAP
financial measure, see the “Core FFO per diluted share and OP unit”
reconciliation table. Core Funds from Operations (“Core FFO”) is a
non-GAAP measure. |
| (4) |
Excludes straight-line rent,
amortization of above/below market rates and lease termination
fees. |
| (5) |
Fourth quarter annualized
EBITDAre. For EBITDAre and Debt/EBITDAre, non-GAAP financial
measures, please see the respective reconciliation tables. |
| |
|
Portfolio Statistics
As of June 30, 2024, Whitestone wholly owned 57
Community-Centered Properties™ with 5.1 million square feet of
gross leasable area (“GLA”). Six of the 57 Community-Centered
Properties™ are land parcels held for future development. The
portfolio is comprised of 31 properties in Texas and
26 in Arizona. Whitestone’s Community-Centered Properties™ are
located in the MSA's of Austin (6), Dallas-Fort Worth (9), Houston
(13), Phoenix (26), and San Antonio (3). The Company’s properties
in these markets are generally in high-traffic locations,
surrounded by high-household-income communities. The Company
also owned an 81.4% equity interest in eight properties containing
0.9 million square feet of GLA through its investment in
Pillarstone OP. On January 25, 2024, the Company exercised its
notice of redemption for substantially all of its investment in
Pillarstone OP. As of June 30, 2024, our ownership in Pillarstone
OP no longer represents a majority interest.
At the end of the second quarter, the
Company’s diversified tenant base was comprised of
1,465 tenants, with the largest tenant accounting for only
2.1% of annualized base rental revenues. No single tenant exceeded
2.1% of total revenue. Lease terms range from less than one
year for smaller tenants to more than 15 years for larger tenants.
Whitestone’s leases generally include minimum monthly lease
payments and tenant reimbursements for payment of taxes, insurance
and maintenance, and typically exclude restrictive lease
clauses.
Conference Call Information
In conjunction with the issuance of its
financial results, the Company invites you to listen to its
earnings release conference call to be broadcast live on Thursday,
August 1, 2024, at 8:30 A.M Eastern Time / 7:30 A.M. Central Time.
The call will be led by Dave Holeman, Chief Executive Officer.
Conference call access information is as follows:
To listen to a webcast of the conference call,
click on the Investor Relations tab of the Company’s website,
www.whitestonereit.com, and then click on the webcast link. A
replay of the call will be available on Whitestone’s website via
the webcast link until the Company’s next earnings release.
Additional information about Whitestone can be found on the
Company’s website.
|
Dial-in number for domestic participants: |
1-877-407-0784 |
| Dial-in number for
international participants: |
1-201-689-8560 |
| |
|
The conference call will be recorded, and a
telephone replay will be available through Thursday, August 15,
2024. Replay access information is as follows:
|
Replay number for domestic participants: |
1-844-512-2921 |
| Replay number for
international participants: |
1-412-317-6671 |
| Passcode (for all
participants): |
13742563 |
| |
|
Supplemental Financial
Information
The second quarter earnings release and
supplemental data package will be located in the “News and Events”
and “Financial Reporting” tabs of the Investor Relations section of
the Company’s website at www.whitestonereit.com. The earnings
release and supplemental data package will also be available by
mail upon request. To receive a copy, please call Investor
Relations at (713) 435-2219.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a
community-centered real estate investment trust (REIT) that
acquires, owns, operates, and develops open-air, retail centers
located in some of the fastest growing markets in the country:
Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio.
Our centers are convenience focused:
merchandised with a mix of service-oriented tenants providing food
(restaurants and grocers), self-care (health and fitness), services
(financial and logistics), education and entertainment to the
surrounding communities. The Company believes its strong community
connections and deep tenant relationships are key to the success of
its current centers and its acquisition strategy. For additional
information, please visit www.whitestonereit.com.
Forward-Looking Statements
This Report contains forward-looking statements
within the meaning of the federal securities laws, including
discussion and analysis of our financial condition and results of
operations, statements related to our expectations regarding the
performance of our business, and other matters. These
forward-looking statements are not historical facts but are the
intent, belief or current expectations of our management based on
its knowledge and understanding of our business and industry.
Forward-looking statements are typically identified by the use of
terms such as “may,” “will,” “should,” “potential,” “predicts,”
“anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,”
“estimates” or the negative of such terms and variations of these
words and similar expressions, although not all forward-looking
statements include these words. These statements are not guarantees
of future performance and are subject to risks, uncertainties and
other factors, some of which are beyond our control, are difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking
statements.
Factors that could cause actual results to
differ materially from any forward-looking statements made in this
Report include: the imposition of federal income taxes if we fail
to qualify as a real estate investment trust (“REIT”) in any
taxable year or forego an opportunity to ensure REIT status;
uncertainties related to the national economy and the real estate
industry, both in general and in our specific markets; legislative
or regulatory changes, including changes to laws governing REITs;
adverse economic or real estate developments or conditions in Texas
or Arizona, Houston and Phoenix in particular, including the
potential impact of public health emergencies, such as COVID-19, on
our tenants’ ability to pay their rent, which could result in bad
debt allowances or straight-line rent reserve adjustments;
increases in interest rates, including as a result of inflation,
which may increase our operating costs or general and
administrative expenses; our current geographic concentration in
the Houston and Phoenix metropolitan area makes us susceptible to
local economic downturns; natural disasters, such as floods and
hurricanes, which may increase as a result of climate change may
adversely affect our returns and adversely impact our existing and
prospective tenants; increasing focus by stakeholders on
environmental, social, and governance matters; financial
institution disruptions; availability and terms of capital and
financing, both to fund our operations and to refinance our
indebtedness as it matures; decreases in rental rates or increases
in vacancy rates; harm to our reputation, ability to do business
and results of operations as a result of improper conduct by our
employees, agents or business partners; litigation risks; lease-up
risks, including leasing risks arising from exclusivity and consent
provisions in leases with significant tenants; our inability to
renew tenant leases or obtain new tenant leases upon the expiration
of existing leases; risks related to generative artificial
intelligence tools and language models, along with the potential
interpretations and conclusions they might make regarding our
business and prospects, particularly concerning the spread of
misinformation; our inability to generate sufficient cash flows due
to market conditions, competition, uninsured losses, changes in tax
or other applicable laws; geopolitical conflicts, such as the
ongoing conflict between Russia and Ukraine, the conflict in the
Gaza Strip and unrest in the Middle East; the need to fund tenant
improvements or other capital expenditures out of operating cash
flow; and the risk that we are unable to raise capital for
working capital, acquisitions or other uses on attractive terms or
at all the ultimate amount we will collect in connection with
the redemption of our equity investment in Pillarstone Capital REIT
Operating Partnership LP (“Pillarstone” or “Pillarstone OP.”); and
other factors detailed in the Company's most recent Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q and other documents
the Company files with the Securities and Exchange Commission from
time to time
Non-GAAP Financial Measures
This release contains supplemental financial
measures that are not calculated pursuant to U.S. generally
accepted accounting principles (“GAAP”) including EBITDAre, FFO,
Core FFO, NOI and net debt. Following are explanations and
reconciliations of these metrics to their most comparable GAAP
metric.
EBITDAre: The National Association of Real
Estate Investment Trusts (“NAREIT”) defines EBITDAre as net income
computed in accordance with GAAP, plus interest expense, income tax
expense, depreciation and amortization and impairment write-downs
of depreciable property and of investments in unconsolidated
affiliates caused by a decrease in value of depreciable property in
the affiliate, plus or minus losses and gains on the disposition of
depreciable property, including losses/gains on change in control
and adjustments to reflect the entity’s share of EBITDAre of the
unconsolidated affiliates and consolidated affiliates with
non-controlling interests. We calculate EBITDAre in a manner
consistent with the NAREIT definition. Management believes that
EBITDAre represents a supplemental non-GAAP performance measure
that provides investors with a relevant basis for comparing REITs.
There can be no assurance the EBITDAre as presented by the Company
is comparable to similarly titled measures of other REITs. EBITDAre
should not be considered as an alternative to net income or other
measurements under GAAP as indicators of operating performance or
to cash flows from operating, investing or financing activities as
measures of liquidity. EBITDAre does not reflect working capital
changes, cash expenditures for capital improvements or principal
payments on indebtedness.
FFO: Funds From Operations: NAREIT defines FFO
as net income (loss) (calculated in accordance with GAAP),
excluding depreciation and amortization related to real estate,
gains or losses from the sale of certain real estate assets, gains
and losses from change in control, and impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity. We calculate FFO in a
manner consistent with the NAREIT definition and also include
adjustments for our unconsolidated real estate partnership.
Core Funds from Operations (“Core FFO”) is a non-GAAP measure.
From time to time, we report or provide guidance with respect
to “Core FFO” which removes the impact of certain
non-recurring and non-operating transactions or other items we do
not consider to be representative of our core operating results
including, without limitation, default interest on debt of real
estate partnership, extinguishment of debt cost, gains or losses
associated with litigation involving the Company that is not in the
normal course of business, and proxy contest costs.
Management uses FFO and Core FFO as a
supplemental measure to conduct and evaluate our business because
there are certain limitations associated with using GAAP net income
alone as the primary measure of our operating performance.
Historical cost accounting for real estate assets in accordance
with GAAP implicitly assumes that the value of real estate assets
diminishes predictably over time. Because real estate
values instead have historically risen or fallen with market
conditions, management believes that the presentation of operating
results for real estate companies that use historical cost
accounting is insufficient by itself. In addition,
securities analysts, investors and other interested parties use
FFO as the primary metric for comparing the relative
performance of equity REITs. FFO and Core FFO should not
be considered as alternatives to net income or other measurements
under GAAP, as an indicator of our operating performance or to cash
flows from operating, investing or financing activities as a
measure of liquidity. FFO and Core FFO do not
reflect working capital changes, cash expenditures for capital
improvements or principal payments on indebtedness. Although our
calculation of FFO is consistent with that of NAREIT, there can be
no assurance that FFO and Core FFO presented by us is
comparable to similarly titled measures of other REITs.
NOI: Net Operating Income: Management
believes that NOI is a useful measure of our property operating
performance. We define NOI as operating revenues (rental and other
revenues) less property and related expenses (property operation
and maintenance and real estate taxes). Other REITs may use
different methodologies for calculating NOI and, accordingly, our
NOI may not be comparable to other REITs. Because NOI excludes
general and administrative expenses, depreciation and amortization,
deficit in earnings of real estate partnership, interest expense,
interest, dividend and other investment income, provision for
income taxes, gain on sale of properties, loss on disposal of
assets, and includes NOI of real estate partnership (pro
rata) and net income attributable to noncontrolling interest, it
provides a performance measure that, when compared year-over-year,
reflects the revenues and expenses directly associated with owning
and operating commercial real estate properties and the impact to
operations from trends in occupancy rates, rental rates and
operating costs, providing perspective not immediately apparent
from net income. We use NOI to evaluate our operating performance
since NOI allows us to evaluate the impact that factors such as
occupancy levels, lease structure, lease rates and tenant base have
on our results, margins and returns. In addition, management
believes that NOI provides useful information to the investment
community about our property and operating performance when
compared to other REITs since NOI is generally recognized as a
standard measure of property performance in the real estate
industry. However, NOI should not be viewed as a measure of our
overall financial performance since it does not reflect the level
of capital expenditure and leasing costs necessary to maintain the
operating performance of our properties, including general and
administrative expenses, depreciation and amortization, equity or
deficit in earnings of real estate partnership, interest expense,
interest, dividend and other investment income, provision for
income taxes, gain on sale of properties, and gain or loss on sale
or disposition of assets.
Same Store NOI: Management believes that Same
Store NOI is a useful measure of the Company’s property operating
performance because it includes only the properties that have been
owned for the entire period being compared, and that it is
frequently used by the investment community. Same Store NOI assists
in eliminating differences in NOI due to the acquisition or
disposition of properties during the period being presented,
providing a more consistent measure of the Company’s performance.
The Company defines Same Store NOI as operating revenues (rental
and other revenues, excluding straight-line rent adjustments,
amortization of above/below market rents, and lease termination
fees) less property and related expenses (property operation and
maintenance and real estate taxes), Non-Same Store NOI, and NOI of
our investment in Pillarstone OP (pro rata). We define “Non-Same
Stores” as properties that have been acquired since the beginning
of the period being compared and properties that have been sold,
but not classified as discontinued operations. Other REITs may use
different methodologies for calculating Same Store NOI, and
accordingly, the Company's Same Store NOI may not be comparable to
that of other REITs.
Net debt: We present net debt, which we define
as total debt net of insurance financing less cash plus our
proportional share of net debt of real estate partnership, and net
debt to pro forma EBITDAre, which we define as net debt divided by
EBITDAre because we believe they are helpful as supplemental
measures in assessing our ability to service our financing
obligations and in evaluating balance sheet leverage against that
of other REITs. However, net debt and net debt to pro forma
EBITDAre should not be viewed as a stand-alone measure of our
overall liquidity and leverage. In addition, our REITs may use
different methodologies for calculating net debt and net debt to
pro forma EBITDAre, and accordingly our net debt and net debt to
pro forma EBITDAre may not be comparable to that of other
REITs.
Investor and Media Relations:David
MordyDirector, Investor RelationsWhitestone REIT(713)
435-2219ir@whitestonereit.com
|
Whitestone REIT and Subsidiaries |
|
CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except share and per share
data) |
| |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
| Real estate assets, at
cost |
|
|
|
|
|
|
|
|
|
Property |
|
$ |
1,258,799 |
|
|
$ |
1,221,466 |
|
|
Accumulated depreciation |
|
|
(240,535 |
) |
|
|
(229,767 |
) |
|
Total real estate assets |
|
|
1,018,264 |
|
|
|
991,699 |
|
| Investment in real estate
partnership |
|
|
— |
|
|
|
31,671 |
|
| Cash and cash equivalents |
|
|
3,231 |
|
|
|
4,572 |
|
| Restricted cash |
|
|
— |
|
|
|
68 |
|
| Escrows and deposits |
|
|
17,679 |
|
|
|
24,148 |
|
| Accrued rents and accounts
receivable, net of allowance for doubtful accounts (1) |
|
|
30,919 |
|
|
|
30,592 |
|
| Receivable from partnership
redemption |
|
|
31,643 |
|
|
|
— |
|
| Receivable due from related
party |
|
|
1,532 |
|
|
|
1,513 |
|
| Unamortized lease commissions,
legal fees and loan costs |
|
|
14,566 |
|
|
|
13,783 |
|
| Prepaid expenses and other
assets(2) |
|
|
12,065 |
|
|
|
4,765 |
|
| Finance lease right-of-use
assets |
|
|
10,471 |
|
|
|
10,428 |
|
|
Total assets |
|
$ |
1,140,370 |
|
|
$ |
1,113,239 |
|
| |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
Notes payable |
|
$ |
665,667 |
|
|
$ |
640,172 |
|
|
Accounts payable and accrued expenses(3) |
|
|
33,223 |
|
|
|
36,513 |
|
|
Payable due to related party |
|
|
1,577 |
|
|
|
1,577 |
|
|
Tenants' security deposits |
|
|
9,038 |
|
|
|
8,614 |
|
|
Dividends and distributions payable |
|
|
6,228 |
|
|
|
6,025 |
|
|
Finance lease liabilities |
|
|
797 |
|
|
|
721 |
|
|
Total liabilities |
|
|
716,530 |
|
|
|
693,622 |
|
| Commitments and
contingencies: |
|
|
— |
|
|
|
— |
|
| Equity: |
|
|
|
|
|
|
|
|
|
Preferred shares, $0.001 par value per share; 50,000,000 shares
authorized; none issued and outstanding as of June 30, 2024 and
December 31, 2023 |
|
|
— |
|
|
|
— |
|
|
Common shares, $0.001 par value per share; 400,000,000 shares
authorized; 50,064,267 and 49,610,831 issued and outstanding as of
June 30, 2024 and December 31, 2023, respectively |
|
|
50 |
|
|
|
50 |
|
|
Additional paid-in capital |
|
|
627,459 |
|
|
|
628,079 |
|
|
Accumulated deficit |
|
|
(217,401 |
) |
|
|
(216,963 |
) |
|
Accumulated other comprehensive income |
|
|
8,152 |
|
|
|
2,576 |
|
|
Total Whitestone REIT shareholders' equity |
|
|
418,260 |
|
|
|
413,742 |
|
|
Noncontrolling interest in subsidiary |
|
|
5,580 |
|
|
|
5,875 |
|
|
Total equity |
|
|
423,840 |
|
|
|
419,617 |
|
|
Total liabilities and equity |
|
$ |
1,140,370 |
|
|
$ |
1,113,239 |
|
|
|
|
|
|
|
|
|
|
|
|
Whitestone REIT and Subsidiaries |
|
CONSOLIDATED BALANCE SHEETS |
|
(in thousands) |
| |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
|
(1) Accrued rents and accounts receivable,
net of allowance for doubtful accounts |
|
|
|
|
|
|
|
|
|
Tenant receivables |
|
$ |
17,758 |
|
|
$ |
16,287 |
|
|
Accrued rents and other recoveries |
|
|
26,343 |
|
|
|
26,751 |
|
|
Allowance for doubtful accounts |
|
|
(14,044 |
) |
|
|
(13,570 |
) |
|
Other receivables |
|
|
862 |
|
|
|
1,124 |
|
|
Total accrued rents and accounts receivable, net of allowance for
doubtful accounts |
|
$ |
30,919 |
|
|
$ |
30,592 |
|
| |
|
|
|
|
|
|
|
|
| (2) Operating lease right of
use assets (net) |
|
$ |
75 |
|
|
$ |
109 |
|
| (3) Operating lease
liabilities |
|
$ |
75 |
|
|
$ |
112 |
|
| |
|
|
|
|
|
|
|
|
|
Whitestone REIT and Subsidiaries |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME |
|
(in thousands) |
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental(1) |
|
$ |
37,480 |
|
|
$ |
36,241 |
|
|
$ |
74,221 |
|
|
$ |
71,738 |
|
|
Management, transaction, and other fees |
|
|
167 |
|
|
|
219 |
|
|
|
590 |
|
|
|
573 |
|
|
Total revenues |
|
|
37,647 |
|
|
|
36,460 |
|
|
|
74,811 |
|
|
|
72,311 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
8,521 |
|
|
|
8,360 |
|
|
|
17,321 |
|
|
|
16,206 |
|
|
Operating and maintenance |
|
|
7,015 |
|
|
|
6,899 |
|
|
|
13,364 |
|
|
|
12,985 |
|
|
Real estate taxes |
|
|
3,912 |
|
|
|
4,767 |
|
|
|
8,150 |
|
|
|
9,475 |
|
|
General and administrative |
|
|
6,552 |
|
|
|
5,175 |
|
|
|
12,732 |
|
|
|
10,259 |
|
|
Total operating expenses |
|
|
26,000 |
|
|
|
25,201 |
|
|
|
51,567 |
|
|
|
48,925 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other expenses
(income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
8,788 |
|
|
|
8,260 |
|
|
|
17,307 |
|
|
|
16,163 |
|
|
(Gain) loss on sale of properties |
|
|
75 |
|
|
|
(9,621 |
) |
|
|
(6,450 |
) |
|
|
(9,621 |
) |
|
Loss on disposal of assets, net |
|
|
72 |
|
|
|
14 |
|
|
|
72 |
|
|
|
20 |
|
|
Interest, dividend and other investment income |
|
|
(4 |
) |
|
|
(18 |
) |
|
|
(12 |
) |
|
|
(38 |
) |
|
Total other expenses (income) |
|
|
8,931 |
|
|
|
(1,365 |
) |
|
|
10,917 |
|
|
|
6,524 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before equity
investment in real estate partnership and income tax |
|
|
2,716 |
|
|
|
12,624 |
|
|
|
12,327 |
|
|
|
16,862 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficit in earnings of real estate partnership |
|
|
— |
|
|
|
(1,034 |
) |
|
|
(28 |
) |
|
|
(1,252 |
) |
|
Provision for income tax |
|
|
(90 |
) |
|
|
(125 |
) |
|
|
(209 |
) |
|
|
(244 |
) |
| Net
Income |
|
|
2,626 |
|
|
|
11,465 |
|
|
|
12,090 |
|
|
|
15,366 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests |
|
|
34 |
|
|
|
159 |
|
|
|
158 |
|
|
|
213 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income
attributable to Whitestone REIT |
|
$ |
2,592 |
|
|
$ |
11,306 |
|
|
$ |
11,932 |
|
|
$ |
15,153 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Whitestone REIT and Subsidiaries |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME |
|
(in thousands, except per share data) |
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Basic Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders, excluding amounts
attributable to unvested restricted shares |
|
$ |
0.05 |
|
|
$ |
0.23 |
|
|
$ |
0.24 |
|
|
$ |
0.31 |
|
| Diluted Earnings Per
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders, excluding amounts
attributable to unvested restricted shares |
|
$ |
0.05 |
|
|
$ |
0.22 |
|
|
$ |
0.23 |
|
|
$ |
0.30 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
49,960 |
|
|
|
49,426 |
|
|
|
49,951 |
|
|
|
49,425 |
|
|
Diluted |
|
|
51,120 |
|
|
|
50,259 |
|
|
|
51,116 |
|
|
|
50,262 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated
Statements of Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income |
|
$ |
2,626 |
|
|
$ |
11,465 |
|
|
$ |
12,090 |
|
|
$ |
15,366 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on cash flow hedging activities |
|
|
643 |
|
|
|
7,095 |
|
|
|
5,650 |
|
|
|
2,508 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive
income |
|
|
3,269 |
|
|
|
18,560 |
|
|
|
17,740 |
|
|
|
17,874 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests |
|
|
34 |
|
|
|
159 |
|
|
|
158 |
|
|
|
213 |
|
|
Less: Comprehensive income attributable to noncontrolling
interests |
|
|
8 |
|
|
|
99 |
|
|
|
74 |
|
|
|
35 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income
attributable to Whitestone REIT |
|
$ |
3,227 |
|
|
$ |
18,302 |
|
|
$ |
17,508 |
|
|
$ |
17,626 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Whitestone REIT and Subsidiaries |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME |
|
(in thousands) |
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(1) Rental |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenues |
|
$ |
27,372 |
|
|
$ |
26,519 |
|
|
$ |
54,236 |
|
|
$ |
52,259 |
|
|
Recoveries |
|
|
10,194 |
|
|
|
9,955 |
|
|
|
20,671 |
|
|
|
20,036 |
|
|
Bad debt |
|
|
(86 |
) |
|
|
(233 |
) |
|
|
(686 |
) |
|
|
(557 |
) |
|
Total rental |
|
$ |
37,480 |
|
|
$ |
36,241 |
|
|
$ |
74,221 |
|
|
$ |
71,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Whitestone REIT and
SubsidiariesCONSOLIDATED STATEMENTS OF CASH
FLOWS(in thousands) |
| |
|
Six Months Ended June 30, |
| |
|
2024 |
|
2023 |
| Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net income |
|
$ |
12,090 |
|
|
$ |
15,366 |
|
| Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
17,321 |
|
|
|
16,206 |
|
|
Amortization of deferred loan costs |
|
|
534 |
|
|
|
550 |
|
|
Gain on sale of properties |
|
|
(6,450 |
) |
|
|
(9,621 |
) |
|
Loss on disposal of assets |
|
|
72 |
|
|
|
20 |
|
|
Bad debt |
|
|
686 |
|
|
|
557 |
|
|
Share-based compensation |
|
|
1,624 |
|
|
|
1,480 |
|
|
Deficit in earnings of real estate partnership |
|
|
28 |
|
|
|
1,252 |
|
|
Amortization of right-of-use assets - finance leases |
|
|
43 |
|
|
|
51 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Escrows and deposits |
|
|
6,469 |
|
|
|
3,982 |
|
|
Accrued rents and accounts receivable |
|
|
(1,013 |
) |
|
|
(2,014 |
) |
|
Receivable due from related party |
|
|
(19 |
) |
|
|
(59 |
) |
|
Unamortized lease commissions, legal fees and loan costs |
|
|
(1,768 |
) |
|
|
(1,894 |
) |
|
Prepaid expenses and other assets |
|
|
999 |
|
|
|
1,430 |
|
|
Accounts payable and accrued expenses |
|
|
(7,258 |
) |
|
|
(5,586 |
) |
|
Payable due to related party |
|
|
— |
|
|
|
16 |
|
|
Tenants' security deposits |
|
|
424 |
|
|
|
(25 |
) |
|
Net cash provided by operating activities |
|
|
23,782 |
|
|
|
21,711 |
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
|
Acquisitions of real estate |
|
|
(50,136 |
) |
|
|
(25,455 |
) |
|
Additions to real estate |
|
|
(8,548 |
) |
|
|
(8,771 |
) |
|
Proceeds from sales of properties |
|
|
25,661 |
|
|
|
13,447 |
|
|
Reverse 1031 exchange |
|
|
— |
|
|
|
(13,447 |
) |
|
Net cash used in investing activities |
|
|
(33,023 |
) |
|
|
(34,226 |
) |
| Cash flows from
financing activities: |
|
|
|
|
|
|
|
Distributions paid to common shareholders |
|
|
(12,131 |
) |
|
|
(11,826 |
) |
|
Distributions paid to OP unit holders |
|
|
(160 |
) |
|
|
(166 |
) |
|
Net (payments) proceeds from credit facility |
|
|
(11,000 |
) |
|
|
48,000 |
|
|
Repayments of notes payable |
|
|
(21,777 |
) |
|
|
(26,504 |
) |
|
Proceeds from notes payable |
|
|
56,340 |
|
|
|
— |
|
|
Payment of loan origination costs |
|
|
(789 |
) |
|
|
— |
|
|
Repurchase of common shares |
|
|
(2,641 |
) |
|
|
(289 |
) |
|
Payment of finance lease liability |
|
|
(10 |
) |
|
|
(6 |
) |
|
Net cash provided by financing activities |
|
|
7,832 |
|
|
|
9,209 |
|
| Net decrease in cash, cash
equivalents and restricted cash |
|
|
(1,409 |
) |
|
|
(3,306 |
) |
| Cash, cash equivalents and
restricted cash at beginning of period |
|
|
4,640 |
|
|
|
6,355 |
|
| Cash, cash equivalents and
restricted cash at end of period (1) |
|
$ |
3,231 |
|
|
$ |
3,049 |
|
| |
|
|
|
|
|
|
|
|
|
(1) |
For a reconciliation of cash, cash equivalents and restricted cash,
see supplemental disclosures below. |
|
|
|
|
Whitestone REIT and Subsidiaries |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
Supplemental Disclosures |
|
(in thousands) |
| |
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
17,013 |
|
|
$ |
15,219 |
|
|
Cash paid for taxes |
|
$ |
432 |
|
|
$ |
435 |
|
| Non cash investing and
financing activities: |
|
|
|
|
|
|
|
|
|
Disposal of fully depreciated real estate |
|
$ |
45 |
|
|
$ |
864 |
|
|
Financed insurance premiums |
|
$ |
2,638 |
|
|
$ |
3,002 |
|
|
Value of shares issued under dividend reinvestment plan |
|
$ |
42 |
|
|
$ |
36 |
|
|
Value of common shares exchanged for OP units |
|
$ |
354 |
|
|
$ |
11 |
|
|
Change in fair value of cash flow hedge |
|
$ |
5,650 |
|
|
$ |
2,508 |
|
|
Accrued capital expenditures |
|
$ |
1,629 |
|
|
$ |
— |
|
|
Receivable from partnership redemption |
|
$ |
31,643 |
|
|
$ |
— |
|
|
Recognition of finance lease liability |
|
$ |
86 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
Cash, cash equivalents and restricted cash |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,231 |
|
|
$ |
2,927 |
|
|
Restricted cash |
|
|
— |
|
|
|
122 |
|
| Total cash, cash equivalents
and restricted cash |
|
$ |
3,231 |
|
|
$ |
3,049 |
|
| |
|
|
|
|
|
|
|
|
|
Whitestone REIT and Subsidiaries |
|
RECONCILIATION OF NON-GAAP MEASURES |
|
(in thousands, except per share and per unit
data) |
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
FFO (NAREIT) AND CORE FFO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to
Whitestone REIT |
|
$ |
2,592 |
|
|
$ |
11,306 |
|
|
$ |
11,932 |
|
|
$ |
15,153 |
|
|
Adjustments to reconcile to FFO:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real estate assets |
|
|
8,497 |
|
|
|
8,318 |
|
|
|
17,265 |
|
|
|
16,123 |
|
|
Depreciation and amortization of real estate assets of real estate
partnership (pro rata) (2) |
|
|
— |
|
|
|
403 |
|
|
|
111 |
|
|
|
806 |
|
|
Loss on disposal of assets |
|
|
72 |
|
|
|
14 |
|
|
|
72 |
|
|
|
20 |
|
|
(Gain) loss on sale of properties |
|
|
75 |
|
|
|
(9,621 |
) |
|
|
(6,450 |
) |
|
|
(9,621 |
) |
|
Net income attributable to noncontrolling interests |
|
|
34 |
|
|
|
159 |
|
|
|
158 |
|
|
|
213 |
|
| FFO (NAREIT) |
|
$ |
11,270 |
|
|
$ |
10,579 |
|
|
$ |
23,088 |
|
|
$ |
22,694 |
|
| Adjustments to reconcile to
Core FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proxy contest costs |
|
|
1,319 |
|
|
|
— |
|
|
|
1,757 |
|
|
|
— |
|
| Core FFO |
|
$ |
12,589 |
|
|
$ |
10,579 |
|
|
$ |
24,845 |
|
|
$ |
22,694 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO PER SHARE AND OP UNIT CALCULATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO |
|
$ |
11,270 |
|
|
$ |
10,579 |
|
|
$ |
23,088 |
|
|
$ |
22,694 |
|
| Core FFO |
|
$ |
12,589 |
|
|
$ |
10,579 |
|
|
$ |
24,845 |
|
|
$ |
22,694 |
|
| Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of total common shares - basic |
|
|
49,960 |
|
|
|
49,426 |
|
|
|
49,951 |
|
|
|
49,425 |
|
|
Weighted average number of total noncontrolling OP units -
basic |
|
|
649 |
|
|
|
694 |
|
|
|
656 |
|
|
|
694 |
|
|
Weighted average number of total common shares and noncontrolling
OP units - basic |
|
|
50,609 |
|
|
|
50,120 |
|
|
|
50,607 |
|
|
|
50,119 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unvested restricted shares |
|
|
1,160 |
|
|
|
833 |
|
|
|
1,165 |
|
|
|
837 |
|
|
Weighted average number of total common shares and noncontrolling
OP units - diluted |
|
|
51,769 |
|
|
|
50,953 |
|
|
|
51,772 |
|
|
|
50,956 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per common share and OP
unit - basic |
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.46 |
|
|
$ |
0.45 |
|
| FFO per common share and OP
unit - diluted |
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.45 |
|
|
$ |
0.45 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core FFO per common share and
OP unit - basic |
|
$ |
0.25 |
|
|
$ |
0.21 |
|
|
$ |
0.49 |
|
|
$ |
0.45 |
|
| Core FFO per common share and
OP unit - diluted |
|
$ |
0.24 |
|
|
$ |
0.21 |
|
|
$ |
0.48 |
|
|
$ |
0.45 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes pro-rata share attributable to real estate partnership for
the three months ended June 30, 2023 and through January 25, 2024,
the redemption date. |
| (2) |
We rely on reporting provided to
us by our third party partners for financial information regarding
the Company's investment in Pillarstone OP. Because Pillarstone OP
financial statements as of June 30, 2024 and 2023 have not been
made available to us, we have estimated depreciation and
amortization of real estate assets based on the information
available to us at the time of this Report. |
| |
|
|
Whitestone REIT and Subsidiaries |
|
RECONCILIATION OF NON-GAAP MEASURES |
|
(continued) |
|
(in thousands) |
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
PROPERTY NET OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to
Whitestone REIT |
|
$ |
2,592 |
|
|
$ |
11,306 |
|
|
$ |
11,932 |
|
|
$ |
15,153 |
|
|
General and administrative expenses |
|
|
6,552 |
|
|
|
5,175 |
|
|
|
12,732 |
|
|
|
10,259 |
|
|
Depreciation and amortization |
|
|
8,521 |
|
|
|
8,360 |
|
|
|
17,321 |
|
|
|
16,206 |
|
|
Deficit in earnings of real estate partnership (1) |
|
|
— |
|
|
|
1,034 |
|
|
|
28 |
|
|
|
1,252 |
|
|
Interest expense |
|
|
8,788 |
|
|
|
8,260 |
|
|
|
17,307 |
|
|
|
16,163 |
|
|
Interest, dividend and other investment income |
|
|
(4 |
) |
|
|
(18 |
) |
|
|
(12 |
) |
|
|
(38 |
) |
|
Provision for income taxes |
|
|
90 |
|
|
|
125 |
|
|
|
209 |
|
|
|
244 |
|
|
(Gain) loss on sale of properties |
|
|
75 |
|
|
|
(9,621 |
) |
|
|
(6,450 |
) |
|
|
(9,621 |
) |
|
Management fee, net of related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
Loss on disposal of assets, net |
|
|
72 |
|
|
|
14 |
|
|
|
72 |
|
|
|
20 |
|
|
NOI of real estate partnership (pro rata)(1) |
|
|
— |
|
|
|
668 |
|
|
|
183 |
|
|
|
1,216 |
|
|
Net income attributable to noncontrolling interests |
|
|
34 |
|
|
|
159 |
|
|
|
158 |
|
|
|
213 |
|
| NOI |
|
$ |
26,720 |
|
|
$ |
25,462 |
|
|
$ |
53,480 |
|
|
$ |
51,083 |
|
| Non-Same Store NOI (2) |
|
|
(1,581 |
) |
|
|
(830 |
) |
|
|
(2,744 |
) |
|
|
(1,819 |
) |
|
NOI of real estate partnership (pro rata) (1) |
|
|
— |
|
|
|
(668 |
) |
|
|
(183 |
) |
|
|
(1,216 |
) |
| NOI less Non-Same
Store NOI and NOI of real estate partnership (pro
rata) |
|
|
25,139 |
|
|
|
23,964 |
|
|
|
50,553 |
|
|
|
48,048 |
|
|
Same Store straight-line rent adjustments |
|
|
(821 |
) |
|
|
(1,038 |
) |
|
|
(1,903 |
) |
|
|
(1,558 |
) |
|
Same Store amortization of above/below market rents |
|
|
(190 |
) |
|
|
(203 |
) |
|
|
(399 |
) |
|
|
(413 |
) |
|
Same Store lease termination fees |
|
|
(1 |
) |
|
|
(87 |
) |
|
|
(269 |
) |
|
|
(301 |
) |
| Same Store
NOI (3) |
|
$ |
24,127 |
|
|
$ |
22,636 |
|
|
$ |
47,982 |
|
|
$ |
45,776 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
We rely on reporting provided to us by our third party partners for
financial information regarding the Company's investment in
Pillarstone OP. Because Pillarstone OP financial
statements for the three and six months ended June
30, 2024 and 2023 have not been made available to us, we have
estimated deficit in earnings and pro rata share of NOI of
real estate partnership based on the information available to us at
the time of this Report. As of June 30, 2024, our ownership in
Pillarstone OP no longer represents a majority interest. On January
25, 2024, we exercised our notice of redemption for substantially
all of our investment in Pillarstone OP. |
|
(2) |
We define “Non-Same Store” as properties that have been acquired
since the beginning of the period being compared and properties
that have been sold, but not classified as discontinued
operations. For purpose of comparing the three months ended
June 30, 2024 to the three months ended June 30, 2023,
Non-Same Store includes properties owned before April 1, 2023, and
not sold before June 30, 2024, but not included in discontinued
operations. For purposes of comparing the six months ended June 30,
2024 to the six months ended June 30, 2023, Non-Same Store includes
properties acquired between January 1, 2023 and June 30, 2024 and
properties sold between January 1, 2023 and June 30, 2024, but not
included in discontinued operations. |
|
(3) |
We define “Same Store” as properties that have been owned during
the entire period being compared. For purpose of comparing the
three months ended June 30, 2024 to the three months ended
June 30, 2023, Same Store includes properties owned before April 1,
2023 and not sold before June 30, 2024. For purposes of
comparing the six months ended June 30, 2024 to the six months
ended June 30, 2023, Same Store includes properties owned before
January 1, 2023 and not sold before June 30, 2024. Straight line
rent adjustments, above/below market rents, and lease termination
fees are excluded. |
|
|
|
|
Whitestone REIT and Subsidiaries |
|
RECONCILIATION OF NON-GAAP MEASURES |
|
(continued) |
|
(in thousands) |
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| EARNINGS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE
(EBITDAre) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to
Whitestone REIT |
|
$ |
2,592 |
|
|
$ |
11,306 |
|
|
$ |
11,932 |
|
|
$ |
15,153 |
|
|
Depreciation and amortization |
|
|
8,521 |
|
|
|
8,360 |
|
|
|
17,321 |
|
|
|
16,206 |
|
|
Interest expense |
|
|
8,788 |
|
|
|
8,260 |
|
|
|
17,307 |
|
|
|
16,163 |
|
|
Provision for income taxes |
|
|
90 |
|
|
|
125 |
|
|
|
209 |
|
|
|
244 |
|
|
Net income attributable to noncontrolling interests |
|
|
34 |
|
|
|
159 |
|
|
|
158 |
|
|
|
213 |
|
|
Deficit in earnings of real estate partnership (1) |
|
|
— |
|
|
|
1,034 |
|
|
|
28 |
|
|
|
1,252 |
|
|
EBITDAre adjustments for real estate partnership (1) |
|
|
— |
|
|
|
(435 |
) |
|
|
136 |
|
|
|
(54 |
) |
|
(Gain) loss on sale of properties |
|
|
75 |
|
|
|
(9,621 |
) |
|
|
(6,450 |
) |
|
|
(9,621 |
) |
|
Loss on disposal of assets |
|
|
72 |
|
|
|
14 |
|
|
|
72 |
|
|
|
20 |
|
| EBITDAre |
|
$ |
20,172 |
|
|
$ |
19,202 |
|
|
$ |
40,713 |
|
|
$ |
39,576 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
We rely on reporting provided to us by our third party partners for
financial information regarding the Company's investment in
Pillarstone OP. Because Pillarstone OP financial
statements for the three and six months ended June 30,
2024 and 2023 have not been made available to us, we have estimated
deficit in earnings and EBITDAre adjustments for real estate
partnership based on the information available to us at the time of
this Report. As of June 30, 2024, our ownership in Pillarstone OP
no longer represents a majority interest. On January 25, 2024, we
exercised our notice of redemption for substantially all of our
investment in Pillarstone OP. |
|
|
|
|
Whitestone REIT and Subsidiaries |
|
RECONCILIATION OF NON-GAAP MEASURES |
|
Initial & Revised Full Year Guidance for
2024 |
|
(in thousands, except per share and per unit
data) |
| |
|
Revised Range Full Year 2024
(1) |
|
Projected Range Full Year 2024 |
|
| |
|
Low |
|
High |
|
Low |
|
High |
|
| FFO and Core FFO per
diluted share and OP unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
21,368 |
|
|
$ |
24,368 |
|
|
$ |
16,600 |
|
$ |
19,600 |
|
|
Adjustments to reconcile to FFO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real estate assets |
|
|
34,252 |
|
|
|
34,252 |
|
|
|
34,252 |
|
|
34,252 |
|
|
Depreciation and amortization of real estate assets of real estate
partnership (pro rata) |
|
|
133 |
|
|
|
133 |
|
|
|
133 |
|
|
133 |
|
|
Gain on sale of properties |
|
|
(6,525 |
) |
|
|
(6,525 |
) |
|
|
— |
|
|
— |
|
|
FFO |
|
$ |
49,228 |
|
|
$ |
52,228 |
|
|
$ |
50,985 |
|
$ |
53,985 |
|
|
Adjustments to reconcile to Core FFO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proxy contest costs |
|
|
1,757 |
|
|
|
1,757 |
|
|
|
— |
|
|
— |
|
| Core FFO |
|
$ |
50,985 |
|
|
$ |
53,985 |
|
|
$ |
50,985 |
|
$ |
53,985 |
|
| Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
51,262 |
|
|
|
51,262 |
|
|
|
51,262 |
|
|
51,262 |
|
|
OP Units |
|
|
695 |
|
|
|
695 |
|
|
|
695 |
|
|
695 |
|
|
Diluted share and OP Units |
|
|
51,957 |
|
|
|
51,957 |
|
|
|
51,957 |
|
|
51,957 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to
Whitestone REIT per diluted share |
|
$ |
0.41 |
|
|
$ |
0.47 |
|
|
$ |
0.32 |
|
$ |
0.38 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per diluted share and OP
Unit |
|
$ |
0.95 |
|
|
$ |
1.01 |
|
|
$ |
0.98 |
|
$ |
1.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core FFO per diluted share and
OP Unit |
|
$ |
0.98 |
|
|
$ |
1.04 |
|
|
$ |
0.98 |
|
$ |
1.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes a $6,525 gain on the sale of property and $1,757 in
proxy contest costs. |
|
|
|
|
Whitestone REIT and Subsidiaries |
|
RECONCILIATION OF NON-GAAP MEASURES |
|
Initial Full Year Guidance for 2024 |
|
(in thousands) |
| |
|
Projected Range Fourth Quarter 2024 |
|
| |
|
Low |
|
|
High |
|
| EARNINGS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE
(EBITDAre) |
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to
Whitestone REIT |
|
$ |
6,161 |
|
|
$ |
5,311 |
|
| Depreciation and
amortization |
|
|
8,746 |
|
|
|
8,746 |
|
| Interest expense |
|
|
8,013 |
|
|
|
8,013 |
|
| Provision for income
taxes |
|
|
134 |
|
|
|
134 |
|
| Net income attributable to
noncontrolling interests |
|
|
89 |
|
|
|
89 |
|
| EBITDAre |
|
$ |
23,143 |
|
|
$ |
22,293 |
|
| Annualized EBITDAre |
|
$ |
92,572 |
|
|
$ |
89,172 |
|
| |
|
|
|
|
|
|
|
|
| Outstanding debt, net of
insurance financing |
|
|
616,290 |
|
|
|
624,290 |
|
| Less: Cash |
|
|
(3,000 |
) |
|
|
(3,000 |
) |
| Add: Proportional share on net
debt of unconsolidated real estate partnership |
|
|
— |
|
|
|
— |
|
| Total net debt |
|
$ |
613,290 |
|
|
$ |
621,290 |
|
| |
|
|
|
|
|
|
|
|
| Ratio of Net Debt to
EBITDAre |
|
|
6.6 |
|
|
|
7.0 |
|
Whitestone REIT (NYSE:WSR)
過去 株価チャート
から 7 2024 まで 8 2024
Whitestone REIT (NYSE:WSR)
過去 株価チャート
から 8 2023 まで 8 2024
