Whitestone REIT (WSR) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 3.97%
• Average Volume (3M): 219.92K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.48
• Revenue Growth: 4.44%
• EPS Growth: 107.23%
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.35
• Shares Outstanding: 51,020,123
• 10 Day Avg. Volume: 196,184
• 30 Day Avg. Volume: 219,924
• PEG Ratio: 0.22
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 4.58
• P/FCF Ratio: 12.22
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 8.05
• Enterprise Value/Gross Profit: 11.55
• Enterprise Value/Ebitda: 11.25
• 1Y Price Target: $14.80
• Price Target Upside: 8.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.63
• Revenue Forecast (FY): $157.01M

• Rating: 73 Outperform
• Price Target: $14.50 ▲(6.62% Upside)

Whitestone REIT's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust cash flow and profitability metrics, along with strategic financial moves, position it well in the REIT - Retail industry. However, high leverage and valuation concerns slightly temper the overall outlook.

Positive Factors

Occupancy Rates

High occupancy rates indicate strong demand for Whitestone's properties, enhancing rental income stability and supporting long-term revenue growth.

Strategic Acquisitions

Strategic acquisitions in high-growth areas like Frisco, Texas, can enhance Whitestone's market position and drive future revenue growth through increased foot traffic.

Improved Credit Facility

Enhanced credit facility terms provide Whitestone with greater financial flexibility, supporting growth initiatives and reducing financing costs.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially if interest rates rise or revenue growth slows, impacting long-term stability.

Real Estate Tax Increases

Rising real estate taxes, particularly in Texas, could pressure margins and reduce profitability, affecting Whitestone's long-term financial health.

Pending Joint Venture Settlement

Pending legal settlements can create uncertainty and potential financial liabilities, impacting Whitestone's strategic planning and resource allocation.

Whitestone REIT Business Overview & Revenue Model

Company Description

Whitestone is a community-centered shopping center REIT that acquires, owns, manages, develops and redevelops high-quality open-air neighborhood centers primarily in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through creating local connections between consumers in the surrounding communities and a well-crafted mix of national, regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone is a monthly dividend paying stock and has consistently paid dividends for over 15 years. Whitestone's strong, balanced and managed capital structure provides stability and flexibility for growth and positions Whitestone to perform well through economic cycles.

How the Company Makes Money

Whitestone REIT generates revenue primarily through leasing retail and mixed-use properties to tenants. The company earns rental income from long-term leases with a diverse mix of tenants, including national chains and local businesses. Additionally, WSR benefits from property management fees and ancillary income sources such as common area maintenance charges. The REIT also engages in property acquisitions and developments, which can lead to increased rental income over time. Strategic partnerships with local businesses and community organizations further enhance tenant relations and occupancy rates, contributing positively to the company's overall earnings.

Whitestone REIT Financial Statement Overview

Summary

Whitestone REIT presents a robust financial position with strong profitability and cash flow metrics. The income statement shows solid performance with consistent revenue growth, but the high leverage on the balance sheet poses risks. The cash flow is strong, with significant growth in free cash flow.

Income Statement

Whitestone REIT shows a solid performance in its income statement with strong gross and net profit margins. The company has demonstrated consistent revenue growth, with a notable increase in the TTM period. However, the EBIT margin has slightly decreased over the TTM, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which poses a risk if interest rates rise or if revenue growth slows. The return on equity is moderate, suggesting efficient use of equity capital. The equity ratio indicates a balanced asset structure, but the high leverage remains a concern.

Cash Flow

Whitestone REIT's cash flow statement is strong, with significant growth in free cash flow over the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to reported earnings. The free cash flow to net income ratio of 1.0 suggests all net income is effectively converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	158.70M	155.51M	147.92M	140.58M	125.28M	123.56M
Gross Profit	110.70M	109.53M	101.96M	97.28M	85.95M	84.99M
EBITDA	113.64M	106.84M	85.83M	95.12M	64.32M	60.60M
Net Income	44.42M	36.89M	19.18M	35.27M	12.05M	6.03M
Balance Sheet
Total Assets	1.15B	1.13B	1.11B	1.10B	1.10B	1.05B
Cash, Cash Equivalents and Short-Term Investments	6.85M	5.22M	7.18M	6.17M	15.72M	25.78M
Total Debt	642.38M	632.36M	640.89M	626.16M	649.93M	659.45M
Total Liabilities	701.23M	690.80M	693.62M	678.31M	703.05M	706.68M
Stockholders Equity	439.49M	438.15M	413.74M	418.45M	392.78M	332.08M
Cash Flow
Free Cash Flow	52.98M	58.23M	47.60M	44.43M	48.87M	42.78M
Operating Cash Flow	52.98M	58.23M	47.60M	44.43M	48.87M	42.78M
Investing Cash Flow	-23.76M	-16.01M	-36.31M	-6.71M	-91.23M	-6.44M
Financing Cash Flow	-24.91M	-31.49M	-13.00M	-47.28M	32.31M	-26.02M

Whitestone REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 13.6 is above the 20-day moving average (MA) of 13.29, above the 50-day MA of 12.74, and above the 200-day MA of 12.63, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 88.15 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	78 Outperform	$1.64B	22.25	7.54%	6.61%	8.17%	9.96%
WSR	73 Outperform	$1.39B	15.91	10.34%	3.97%	4.44%	107.23%
CBL	73 Outperform	$1.15B	9.50	37.88%	6.66%	5.74%	294.33%
BFS	68 Neutral	$772.89M	27.50	11.88%	7.89%	5.75%	-37.69%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NTST	63 Neutral	$1.45B	10,129.41	0.02%	4.94%	19.92%	―
ALX	55 Neutral	$1.11B	30.35	22.99%	8.30%	-7.52%	-22.75%

Whitestone REIT Corporate Events

Whitestone REIT Expands $750 Million Credit Facility

On September 19, 2025, Whitestone REIT announced the amendment, expansion, and extension of its $750 million credit facility, which includes a $375 million revolver and a $375 million term loan. The revolver matures in September 2029, with options to extend, while the term loan matures in January 2031. The new facility, which features lower interest rates and extended maturities, aims to strengthen Whitestone’s financial flexibility and support its growth targets. The company has improved its leverage metrics and expanded its bank group, reflecting a strengthened financial position and providing additional liquidity.

Whitestone REIT Launches $100 Million Share Offering

On September 16, 2025, Whitestone REIT entered into equity distribution agreements with several financial institutions to facilitate the sale of up to $100 million of its common shares through an ‘at the market’ offering program. This move allows the company to raise capital flexibly, potentially enhancing its financial position and operational capabilities, while also impacting its market presence and stakeholder interests.