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Whitestone REIT (WSR)
NYSE:WSR
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Whitestone REIT
(NYSE:WSR)
70Outperform
Positive Factors
Dividend and Stock Returns
Over the next four quarters, a dividend yield of 4.3% and stock price appreciation of 19.6% is expected, resulting in an estimated 12-month total return of about 24%.
Leasing and Occupancy
The company achieved leasing spreads of 21.9% during the quarter, comprised of 36.1% on new leases and 19.0% on renewal leases during the quarter.
Negative Factors
Debt and Financial Leverage
The company does have slightly higher than average level of debt and preferred totaling ~48% to total capitalization.
Guidance and Financial Outlook
WSR's guidance falls below estimates and consensus, impacting its financial outlook.
Whitestone REIT (WSR) vs. S&P 500 (SPY)
Market Cap
$1.29B
Dividend Yield3.98%
Average Volume (3M)285.52K
Price to Earnings (P/E)21.0
Beta (1Y)0.66
Revenue Growth4.39%
EPS Growth24.45%
CountryUS
Employees69
SectorReal Estate
Sector Strength67
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.07
Shares Outstanding50,895,584
10 Day Avg. Volume312,282
30 Day Avg. Volume285,519
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.46
Price to Sales (P/S)0.00
P/FCF Ratio12.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.20Price Target Upside19.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Whitestone REIT Business Overview & Revenue Model
Company DescriptionWhitestone 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 MoneyWhitestone REIT generates revenue primarily through leasing its real estate properties to various tenants in its shopping centers. The company collects rental income from long-term lease agreements with a diverse tenant base, including national and local retailers, service providers, and restaurants. Additional revenue streams include tenant reimbursements for property operating expenses, such as maintenance and utilities, as well as income from ancillary services and strategic partnerships. Whitestone REIT's focus on necessity-based retailers and properties in economically vibrant regions helps to maintain stable occupancy rates and consistent cash flow. The company also seeks to enhance property value and rental income through proactive property management and targeted capital improvements.
Whitestone REIT Financial Statement Overview
Summary
Whitestone REIT demonstrates strong revenue growth and operational efficiency, supported by healthy margins. While the company exhibits a stable financial position with a solid equity base, the high leverage could introduce financial risk. Cash flow generation remains robust, although recent declines in operating cash flow suggest the need for vigilant cash management. Continued focus on improving profitability and managing leverage will be key to sustaining financial health.Income Statement
Whitestone REIT shows a positive revenue growth trend with revenues increasing from 2020 to TTM, indicating strong market performance. The gross profit margin is robust, reflecting efficient cost management. However, net profit margin has fluctuated, with a decline in TTM compared to 2024, suggesting potential volatility in profitability. The EBIT and EBITDA margins remain healthy, supporting solid operational efficiency.75
Positive
Balance Sheet
The balance sheet of Whitestone REIT reveals a stable equity base, with stockholders' equity showing modest growth. The debt-to-equity ratio is relatively high, indicating significant leverage, which could pose a risk if interest rates rise or revenues decline. However, the equity ratio remains stable, reflecting prudent management of assets and liabilities. The return on equity is positive, but there is room for improvement in profitability.68
Positive
Cash Flow
Whitestone REIT's cash flow statements indicate a strong operating cash flow to net income ratio, suggesting effective cash conversion from earnings. Free cash flow has shown positive growth, which is favorable for reinvestment opportunities. However, the decline in operating cash flow in TTM compared to 2024 may warrant closer monitoring to ensure consistent cash generation.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 155.75M | 154.28M | 147.92M | 140.58M | 125.36M | 117.92M | Gross Profit |
| 100.51M | 73.41M | 101.96M | 97.28M | 86.04M | 79.34M | EBIT |
| 52.08M | 51.45M | 48.34M | 46.66M | 35.19M | 30.93M | EBITDA |
| 88.24M | 91.03M | 87.18M | 78.36M | 64.14M | 59.23M | Net Income Common Stockholders |
| 31.25M | 36.89M | 19.18M | 35.27M | 12.05M | 6.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.59M | 5.22M | 4.57M | 6.17M | 15.72M | 25.78M | Total Assets |
| 998.82M | 1.13B | 1.11B | 1.10B | 1.10B | 1.05B | Total Debt |
| 641.29M | 632.36M | 640.89M | 626.16M | 642.84M | 644.18M | Net Debt |
| 635.71M | 627.13M | 636.32M | 620.00M | 627.12M | 618.41M | Total Liabilities |
| 690.12M | 690.80M | 693.62M | 678.31M | 703.05M | 706.68M | Stockholders Equity |
| 431.02M | 438.15M | 413.74M | 418.45M | 392.78M | 332.08M |
| Cash Flow | Free Cash Flow | ||||
| 50.19M | 58.23M | 47.60M | 44.43M | 48.87M | 42.78M | Operating Cash Flow |
| 50.19M | 58.23M | 47.60M | 44.43M | 48.87M | 42.78M | Investing Cash Flow |
| -15.34M | -16.01M | -36.31M | -6.71M | -91.23M | -6.44M | Financing Cash Flow |
| -24.84M | -31.49M | -13.00M | -47.28M | 32.31M | -26.02M |
Whitestone REIT Technical Analysis
Negative
12.73
Price Trends
13.48
Negative
13.49
Negative
13.54
Negative
Market Momentum
-0.22
Negative
45.31
Neutral
52.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSR, the sentiment is Negative. The current price of 12.73 is below the 20-day moving average (MA) of 12.83, below the 50-day MA of 13.48, and below the 200-day MA of 13.54, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 52.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSR.
Whitestone REIT Risk Analysis
Whitestone REIT disclosed 50 risk factors in its most recent earnings report. Whitestone REIT reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Whitestone REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.61B | 24.02 | 7.23% | 6.34% | 7.80% | 4.15% | |
72 Outperform | $655.56M | 1.21 | 42.15% | 9.50% | -42.71% | 152.66% | |
70 Outperform | $1.29B | 21.05 | 7.33% | 3.98% | 4.39% | 24.45% | |
68 Neutral | $1.31B | ― | -0.88% | 5.24% | 21.91% | -257.05% | |
67 Neutral | $793.50M | 11.92 | 21.87% | 6.24% | 0.03% | 1997.67% | |
62 Neutral | $832.77M | 23.33 | 13.86% | 6.86% | 5.00% | -14.72% | |
60 Neutral | $2.82B | 10.29 | 0.39% | 8508.26% | 5.90% | -17.41% |
* Real Estate Sector Average
Performance Comparison
WSR
Whitestone REIT
12.73
0.71
5.91%
SITC
SITE Centers
12.50
1.65
15.21%
GTY
Getty Realty
29.02
2.29
8.57%
BFS
Saul Centers
34.39
-0.81
-2.30%
NTST
NETSTREIT
15.92
-1.03
-6.08%
CBL
CBL & Associates Properties
25.65
5.54
27.55%
Whitestone REIT Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -2.38%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in core financial metrics and successful leasing activities, supported by strategic redevelopment projects. However, concerns were noted regarding occupancy declines and potential consumer behavior shifts. Overall, the positive achievements in financial and operational performance slightly outweigh the challenges noted.Q1-2025 Updates
Positive Updates
Increase in Core FFO and Leasing Spreads
Core FFO per share increased by 4.2% to $0.25 compared to Q1 '24. Leasing spreads achieved were 20.3%, marking the 12th consecutive quarter with spreads over 17%.
Strong Same-Store NOI Growth
Whitestone reported a same-store net operating income growth of 4.8%, near the top of their forecasted range.
Record Lease Value Signed
The company signed $31 million in total lease value, the highest first quarter amount ever, with new lease spreads at 22.6% and renewals at 19.9%.
Redevelopment Efforts and Future Growth
Redevelopment projects like Lion Square are expected to contribute significantly to NOI, with anticipated growth of 30% to 50% in those centers.
Improved Debt Metrics
Debt-to-EBITDAre reduced to 7.2x from 7.8x a year ago, with expectations to lower it further to the low 6s by year-end.
Negative Updates
Occupancy Decline
Occupancy decreased slightly due to retenanting efforts at Terravita, impacting overall occupancy levels.
Higher Debt Ratio
Despite improvements, the current debt-to-EBITDAre ratio remains relatively high at 7.2x.
Potential Consumer Pullback
There are observations of changing consumer behavior, such as decreased alcohol sales, which may indicate a pullback.
Company Guidance
In the first quarter of 2025, Whitestone REIT reiterated its core FFO guidance, reporting a core FFO per share of $0.25, marking a 4.2% increase from Q1 2024. The company achieved a same-store net operating income (NOI) growth of 4.8%, near the top of its forecasted range. Leasing spreads were robust, with 20.3% for straight-line leasing, consistent with the company's performance over the last 12 quarters. Whitestone raised its annual net effective average base rent per square foot by 4% compared to Q1 2024. The company outlined plans for modest capital expenditures of $20 million to $30 million over the next few years, anticipating that these investments will drive strong results, including up to 100 basis points of same-store NOI growth lift between 2026 and 2028. Additionally, Whitestone's debt-to-EBITDAre improved to 7.2x from 7.8x a year ago, with projections to further decrease to the low 6s by year-end 2025. The company also highlighted a $50 million acquisition pipeline, to be financed through cash flow and dispositions, as part of its strategy to enhance the portfolio's quality and performance.Whitestone REIT Corporate Events
Executive/Board ChangesShareholder Meetings
Whitestone REIT Elects New Board of Trustees
Neutral
May 16, 2025
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.
Spark’s Take on WSR Stock
According to Spark, TipRanks’ AI Analyst, WSR is a Outperform.
Whitestone REIT’s overall score reflects its strong financial performance and positive earnings call outcomes, with robust revenue growth and operational efficiency. However, high leverage and recent declines in occupancy pose risks. Technical indicators suggest caution due to prevailing bearish trends. Valuation remains fair, with a strong dividend yield balancing a higher P/E ratio.
To see Spark’s full report on WSR stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.