Whitestone REIT (WSR) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 4.23%
• Average Volume (3M): 207.04K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.69
• Revenue Growth: 4.04%
• EPS Growth: 107.96%
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 46
• Industry: REIT - Retail
• EPS (TTM): 0.10
• Shares Outstanding: 51,016,945
• 10 Day Avg. Volume: 169,265
• 30 Day Avg. Volume: 207,041
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 8.45
• Enterprise Value/Gross Profit: 12.08
• Enterprise Value/Ebitda: 14.59
• 1Y Price Target: $14.75
• Price Target Upside: 16.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $14.00 ▲(10.32% Upside)

Whitestone REIT's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's robust profitability and strategic acquisitions support future growth, while high leverage and neutral technical indicators present some risks. The valuation is reasonable, with an attractive dividend yield for investors.

Positive Factors

Dividend

Whitestone declared a dividend of $0.135 per share for the first quarter of 2025, representing a 9% increase from the previous dividend.

Financial Performance

Whitestone REIT's core funds from operations beat consensus, demonstrating strong financial performance.

Leasing Performance

The company achieved leasing spreads of 21.9% during the quarter, comprising 36.1% on new leases and 19.0% on renewal leases.

Negative Factors

Debt Levels

The company does have a slightly higher than average level of debt and preferred totaling ~48% to total capitalization.

Guidance

Guidance was soft relative to consensus, though the result is still expected to produce 4% growth at the midpoint.

Whitestone REIT Business Overview & Revenue Model

Company Description

Whitestone REIT (WSR) is a real estate investment trust that focuses on the ownership, operation, and management of commercial properties, primarily in the retail sector. The company specializes in community-centered retail properties located in high-growth markets across the United States. Whitestone REIT's portfolio includes shopping centers and mixed-use properties that cater to local communities, providing essential goods and services. The company aims to create value through strategic property acquisitions, active property management, and tenant relationships.

How the Company Makes Money

Whitestone REIT generates revenue primarily through leasing space to tenants in its retail properties. The company earns rental income from long-term leases with a diverse mix of tenants, which includes national and regional retailers, service providers, and local businesses. Additionally, WSR benefits from ancillary income sources such as management fees and reimbursements from tenants for property expenses. The company's revenue model is supported by its focus on community-oriented properties, which tends to attract stable tenant demand and lower vacancy rates. Strategic partnerships with local businesses and a commitment to enhancing tenant relationships further contribute to consistent revenue streams.

Whitestone REIT Financial Statement Overview

Summary

Whitestone REIT exhibits strong financial health with robust profitability and cash flow generation. The company shows strong revenue growth and solid profit margins, but high leverage presents a potential risk. The ability to generate consistent cash flow and maintain a solid equity base provides a firm foundation for future growth.

Income Statement

Whitestone REIT shows strong revenue growth with a consistent increase over the years, achieving a TTM gross profit margin of 69.93% and a net profit margin of 21.63%, indicating solid profitability. The EBIT and EBITDA margins are also favorable at 33.72% and 57.92% respectively. However, there has been a slight decline in net income compared to the previous annual report.

Balance Sheet

The company's balance sheet reflects a stable equity base, with an equity ratio of 41.22% in TTM. The debt-to-equity ratio is relatively high at 1.57, suggesting significant leverage. ROE stands at 7.89%, which is moderate but shows room for improvement. Overall, the balance sheet presents a stable but leveraged financial position.

Cash Flow

Whitestone REIT demonstrates strong cash flow management with a consistent positive free cash flow and a TTM operating cash flow to net income ratio of 1.52, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also healthy at 1.52. The company has managed to maintain free cash flow despite fluctuations in investing and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.91M	155.51M	147.92M	140.58M	125.36M	123.56M
Gross Profit	109.04M	109.53M	97.96M	97.28M	86.04M	80.35M
EBITDA	90.30M	85.18M	87.18M	79.30M	64.14M	59.23M
Net Income	33.72M	36.89M	19.18M	35.27M	12.05M	6.03M
Balance Sheet
Total Assets	1.16B	1.13B	1.11B	1.10B	1.10B	1.05B
Cash, Cash Equivalents and Short-Term Investments	5.32M	5.22M	7.18M	6.17M	15.72M	25.78M
Total Debt	670.35M	632.36M	640.89M	626.16M	642.84M	644.18M
Total Liabilities	722.53M	690.80M	693.62M	678.31M	703.05M	706.68M
Stockholders Equity	427.51M	438.15M	413.74M	418.45M	392.78M	332.08M
Cash Flow
Free Cash Flow	51.36M	58.23M	47.60M	44.43M	48.87M	42.78M
Operating Cash Flow	51.36M	58.23M	47.60M	44.43M	48.87M	42.78M
Investing Cash Flow	-33.28M	-16.01M	-36.31M	-6.71M	-91.23M	-6.44M
Financing Cash Flow	-15.98M	-31.49M	-13.00M	-47.28M	32.31M	-26.02M

Whitestone REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSR, the sentiment is Positive. The current price of 12.69 is above the 20-day moving average (MA) of 12.25, above the 50-day MA of 12.37, and below the 200-day MA of 13.11, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 85.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WSR.

Whitestone REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTY	79 Outperform	$1.61B	24.83	6.87%	6.47%	6.62%	-3.87%
WSR	73 Outperform	$1.26B	19.02	7.97%	4.23%	4.04%	107.96%
NTST	72 Outperform	$1.80B	―	-0.43%	4.43%	21.31%	-199.59%
CBL	72 Outperform	$949.34M	14.68	21.97%	9.17%	2.20%	128.61%
SITC	70 Outperform	$628.81M	1.77	25.89%	3.71%	-57.45%	-20.83%
BFS	65 Neutral	$813.61M	25.34	12.90%	7.15%	5.17%	-25.96%
Sector *	62 Neutral	$6.93B	13.52	-0.57%	7.16%	3.62%	-22.63%

Whitestone REIT Corporate Events

Whitestone REIT Elects New Board of Trustees

On May 15, 2025, Whitestone REIT held its annual meeting of shareholders where several key proposals were voted on. The election of trustees resulted in Julia B. Buthman, Amy S. Feng, Kristian M. Gathright, David K. Holeman, Jeffrey A. Jones, and Donald A. Miller being elected to the Board of Trustees until 2026. Additionally, the amendment to the 2018 Long-Term Equity Incentive Plan was ratified, executive compensation was approved, and the appointment of Pannell Kerr Forster of Texas, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was confirmed.

The most recent analyst rating on (WSR) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Whitestone REIT stock, see the WSR Stock Forecast page.