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Jun 30, 2024
Whitestone Q2 2024 Earnings Report
Reported strong second quarter results driven by restaurant and fitness offerings, with significant Same Store Net Operating Income growth and leasing spreads.
Key Takeaways
Whitestone REIT announced strong Q2 2024 results, featuring a 6.6% increase in Same Store Net Operating Income, GAAP leasing spreads of 33% on new leases and 14% on renewal leases. The portfolio's annualized base rent per square foot increased by 5%, and occupancy reached 93.5%. The company reiterated its 2024 Core FFO per share guidance, projecting an 11% year-over-year growth at the midpoint.
Same Store Net Operating Income increased by 6.6%.
GAAP leasing spreads were 33% on new leases and 14% on renewal leases.
Portfolio annualized base rent per square foot increased by 5%.
Occupancy stood at 93.5%.
Whitestone
Whitestone
Forward Guidance
Whitestone REIT updated its 2024 full-year guidance for net income attributable to Whitestone REIT, same store net operating income growth, general and administrative expense, the gain on sale of property to include the impact of the gain recognized on the sale of Mercado at Scottsdale Ranch, interest expense expectations partially related to timing differences of property sales and acquisitions, and the impact of proxy contest costs.
Positive Outlook
- Net income attributable to Whitestone REIT is projected between $21.368 million and $24.368 million.
- Core FFO is expected to be between $50.985 million and $53.985 million.
- Net income attributable to Whitestone REIT per share is forecasted to be between $0.41 and $0.47.
- Core FFO per diluted share and OP Unit is guided to be between $0.98 and $1.04.
- Ending occupancy is expected to be between 93.8% and 94.8%.
Challenges Ahead
- Same store net operating income growth is projected between 3.0% and 4.5%.
- Bad debt as a percentage of revenue is expected to be between 0.60% and 1.10%.
- General and administrative expense is guided to be between $22.057 million and $23.557 million.
- Interest expense is projected to be between $33.4 million and $34.9 million.
- Net Debt to EBITDAre Ratio is expected to be between 7.0X and 6.6X.