Whitestone REIT (WSR) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 4.24%
• Average Volume (3M): 234.93K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.65
• Revenue Growth: 4.39%
• EPS Growth: 24.45%
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Retail
• EPS (TTM): 0.07
• Shares Outstanding: 50,895,584
• 10 Day Avg. Volume: 327,547
• 30 Day Avg. Volume: 234,927
• PEG Ratio: 0.06
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.69
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 10.89
• Enterprise Value/Ebitda: 3.02
• 1Y Price Target: $15.20
• Price Target Upside: 19.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: $13.50 ▲(5.97%Upside)

Whitestone REIT's overall score of 69 reflects strong earnings performance and strategic growth initiatives offset by high leverage and mixed technical signals. The positive earnings call and attractive dividend yield support the stock's potential, but careful attention to financial leverage and market conditions is crucial.

Positive Factors

Dividends

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 continues to construct a track record of solid performance, which should further narrow the valuation discount, as the company has consistently produced operating performance ahead of shopping center REIT peers, while leverage continues to trend down.

Negative Factors

Debt Levels

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

Guidance

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

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. 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.

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	155.75M	154.28M	147.92M	140.58M	125.36M	117.92M
Gross Profit	100.51M	73.41M	101.96M	97.28M	86.04M	79.34M
EBITDA	88.24M	91.03M	87.18M	78.36M	64.14M	59.23M
Net Income	31.25M	36.89M	19.18M	35.27M	12.05M	6.03M
Balance Sheet
Total Assets	998.82M	1.13B	1.11B	1.10B	1.10B	1.05B
Cash, Cash Equivalents and Short-Term Investments	5.59M	5.22M	4.57M	6.17M	15.72M	25.78M
Total Debt	641.29M	632.36M	640.89M	626.16M	642.84M	644.18M
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

• Technical Analysis Sentiment: Neutral
• Last Price: 12.74
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 12.74 is above the 20-day moving average (MA) of 12.41, above the 50-day MA of 12.47, and below the 200-day MA of 13.32, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WSR.

Whitestone REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SITC	72 Outperform	$615.70M	1.14	42.15%	3.89%	-42.71%	152.66%
GTY	70 Outperform	$1.55B	23.13	7.23%	6.73%	7.80%	4.15%
WSR	64 Neutral	$1.30B	21.06	7.33%	4.24%	4.39%	24.45%
NTST	64 Neutral	$1.40B	―	-0.88%	4.92%	21.91%	-257.05%
Sector *	64 Neutral	$7.01B	18.92	-1.36%	6.84%	4.67%	-25.39%
CBL	63 Neutral	$790.41M	11.88	21.87%	6.11%	0.03%	1997.67%
BFS	61 Neutral	$840.04M	23.54	13.86%	6.68%	5.00%	-14.72%

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.