On July 31, 2024, Whitestone REIT (NYSE: WSR) released its 8-K filing detailing its financial performance for the second quarter of 2024. Whitestone REIT is a real estate investment trust (REIT) engaged in owning and operating commercial properties in culturally diverse markets in metropolitan areas. Its property portfolio includes retail and office/flex properties located in business-friendly locations in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix, and San Antonio.
Performance Overview
Whitestone REIT reported Core Funds from Operations (FFO) of $12.6 million for Q2 2024, up from $10.6 million in Q2 2023. The FFO per diluted share was $0.22, slightly higher than the $0.21 reported in the same quarter last year. However, the company faced challenges with its revenue, which did not meet analyst expectations.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Occupancy | 93.5% | 93.3% |
| Same Store NOI Change | 6.6% | 0.4% |
| Rental Rate Growth (GAAP Basis) | 17.5% | 18.7% |
| New Leases | 33.3% | 32.2% |
| Renewal Leases | 13.9% | 16.2% |
Operational Highlights
Whitestone REIT's occupancy rate for wholly owned properties stood at 93.5%, a slight increase from 93.3% in Q2 2023. The company also reported a 6.6% increase in Same Store Net Operating Income (NOI), a significant improvement from the 0.4% growth in the same period last year. Rental rate growth on a GAAP basis was 17.5%, with new leases showing a 33.3% increase and renewal leases a 13.9% increase.
Balance Sheet and Debt Metrics
On June 10, 2024, Whitestone REIT declared a quarterly cash distribution of $0.12375 per common share and OP unit for Q3 2024. The company has locked the majority of its debt maturities until 2027, providing clear visibility to achieve its leverage objectives.
2024 Full Year Guidance
Whitestone REIT has updated its 2024 full-year guidance. The revised net income attributable to Whitestone REIT is projected to be between $21.4 million and $24.4 million, up from the original guidance of $16.6 million to $19.6 million. The Core FFO per diluted share and OP Unit remains unchanged at $0.98 to $1.04.
Portfolio Statistics
As of June 30, 2024, Whitestone REIT wholly owned 57 Community-Centered Properties™ with 5.1 million square feet of gross leasable area (GLA). The portfolio is diversified across high-traffic locations in Texas and Arizona, with a tenant base of 1,465 tenants. The largest tenant accounts for only 2.1% of annualized base rental revenues, ensuring a diversified revenue stream.
Conference Call Information
Whitestone REIT will host a conference call on August 1, 2024, at 8:30 A.M. Eastern Time to discuss its Q2 2024 results. The call will be led by Dave Holeman, Chief Executive Officer. For more details, visit the Investor Relations section of the company’s website.
For a detailed look at Whitestone REIT's financial performance, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Whitestone REIT for further details.
