Mar 31, 2023

Whitestone Q1 2023 Earnings Report

Reported strong results driven by high-quality open-air shopping centers in Texas and Arizona.

Key Takeaways

Whitestone REIT announced strong first quarter 2023 results, with revenues of $35.9 million and same-store NOI growth of 2.8%. The company is reiterating its 2023 guidance targets.

Revenues reached $35.9 million, compared to $34.1 million in Q1 2022.

Same-Store Net Operating Income (NOI) increased by 2.8% to $23.7 million.

Net Effective Annual Base Rental Revenue per leased square foot rose by 4.7% to $22.22.

The company reaffirms its previously released guidance for 2023.

Total Revenue
$35.9M
Previous year: $34.1M
+5.1%
EPS
$0.24
Previous year: $0.26
-7.7%
Same Store NOI Growth
2.8%
Previous year: 12.9%
-78.3%
Gross Profit
$25.4M
Previous year: $24.4M
+4.0%
Cash and Equivalents
$989K
Previous year: $11.1M
-91.1%
Total Assets
$1.35B
Previous year: $1.1B
+23.2%

Whitestone

Whitestone

Forward Guidance

The Company reaffirms its previously released guidance for 2023 and estimates that GAAP net income available to common shareholders will be within the range of $0.29 to $0.33 per diluted share, and FFO will be within the range of $0.95 to $0.99 per diluted share and OP Unit.

Positive Outlook

  • GAAP net income available to common shareholders will be within the range of $0.29 to $0.33 per diluted share
  • FFO will be within the range of $0.95 to $0.99 per diluted share and OP Unit.
  • Same store net operating income growth of 2.5% – 4.5%
  • Bad debt as a percentage of revenue 0.75% – 1.50%
  • Ending occupancy 93.5% - 94.5%

Challenges Ahead

  • General and administrative expense $19,200,000 - $19,700,000
  • Interest expense $31,700,000 - $33,200,000
  • Net Debt to EBITDAre Ratio 7.3X - 6.9X
  • Uncertainties related to the national economy
  • Inflation and increases in interest rates, operating costs or general and administrative expenses