Whitestone REIT (WSR) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 4.24%
• Average Volume (3M): 247.79K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.65
• Revenue Growth: 4.04%
• EPS Growth: 107.96%
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 51
• Industry: REIT - Retail
• EPS (TTM): 0.10
• Shares Outstanding: 50,895,584
• 10 Day Avg. Volume: 221,968
• 30 Day Avg. Volume: 247,795
• PEG Ratio: -0.93
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.08
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 11.79
• Enterprise Value/Ebitda: 3.52
• 1Y Price Target: $15.00
• Price Target Upside: 23.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $13.50 ▲(10.75%Upside)

Whitestone REIT's overall stock score reflects a strong financial performance and positive outcomes from the recent earnings call, particularly in FFO growth and occupancy improvements. While technical analysis indicates a bearish trend, the company's solid financial base and strategic acquisitions support its potential for future growth.

Positive Factors

Debt Management

Management has diligently chipped away at its leverage ratio, measured by debt/EBITDA, as the year ended at the lower end of guidance, while the ratio has declined significantly since management took the helm.

Dividend Increase

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

Leasing Performance

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 Levels

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

Financial Guidance

WSR's guidance falls below estimates and consensus, impacting its financial outlook.

Guidance Exclusion

Guidance does not assume any cash collection from the Pillarstone bankruptcy, which affects FFO.

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 the leasing of its commercial real estate properties. The company leases retail spaces to a diverse range of tenants, including grocery stores, restaurants, and service providers, who pay rent based on long-term lease agreements. These lease agreements typically include base rent and may also involve additional charges for common area maintenance, property taxes, and insurance. Whitestone REIT's revenue is further supported by the strategic selection of properties in high-growth markets with favorable demographics, which helps maintain high occupancy rates and potentially increases rental rates over time. The company's earnings are also influenced by its ability to effectively manage its portfolio, including proactive leasing strategies and cost management.

Whitestone REIT Financial Statement Overview

Summary

Whitestone REIT demonstrates strong revenue growth and operational efficiency, supported by healthy margins. However, high leverage poses a financial risk, and there is a need for vigilant cash management due to recent declines in operating cash flow.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.91M	154.28M	147.92M	140.58M	125.36M	117.92M
Gross Profit	109.04M	73.41M	101.96M	97.28M	86.04M	79.34M
EBITDA	90.30M	91.03M	87.18M	78.36M	64.14M	59.23M
Net Income	33.72M	36.89M	19.18M	35.27M	12.05M	6.03M
Balance Sheet
Total Assets	1.04B	1.13B	1.11B	1.10B	1.10B	1.05B
Cash, Cash Equivalents and Short-Term Investments	5.32M	5.22M	4.57M	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: Negative
• Last Price: 12.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 12.19 is below the 20-day moving average (MA) of 12.55, below the 50-day MA of 12.41, and below the 200-day MA of 13.28, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 37.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSR.

Whitestone REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTY	77 Outperform	$1.57B	24.19	6.87%	6.69%	6.62%	-3.87%
CBL	72 Outperform	$837.12M	12.58	21.87%	10.25%	0.03%	1997.67%
WSR	71 Outperform	$1.29B	20.97	7.97%	4.24%	4.04%	107.96%
NTST	71 Outperform	$1.76B	―	-0.43%	4.61%	21.31%	-199.59%
SITC	67 Neutral	$564.83M	1.04	42.15%	4.13%	-42.71%	152.66%
BFS	64 Neutral	$780.23M	21.86	13.86%	7.32%	5.00%	-14.72%
Sector *	63 Neutral	$6.78B	14.59	-1.87%	7.22%	3.95%	-36.33%

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.