Sep 30, 2022

Whitestone Q3 2022 Earnings Report

Announced operating and financial results, driven by strong demand for space and all-time high occupancy.

Key Takeaways

Whitestone REIT reported strong third-quarter results, driven by high demand and record occupancy. The company's occupancy reached an all-time high of 92.5%. Whitestone is narrowing its 2022 guidance to the upper portion of the previous range and look forward to delivering full year FFO per share growth of over 17%.

Revenues reached $35.4 million, compared to $32.4 million in Q3 2021.

FFO per diluted share was $0.24, up from $0.22 in Q3 2021.

EBITDAre totaled $19.4 million, versus $17.2 million in Q3 2021.

Same-Store Net Operating Income (NOI) grew 4.5% to $21.6 million, compared to $20.7 million in Q3 2021.

Total Revenue
$35.4M
Previous year: $32.4M
+9.1%
EPS
$0.24
Previous year: $0.25
-4.0%
Same Store NOI Growth
21,600,000%
Previous year: 20,656,000%
+4.6%
Rental Rate Growth - Total
6.5%
Previous year: 13.1%
-50.4%
Gross Profit
$23.6M
Previous year: $22.1M
+6.7%
Cash and Equivalents
$9.5M
Previous year: $10.9M
-12.5%
Total Assets
$1.1B
Previous year: $1.07B
+2.7%

Whitestone

Whitestone

Forward Guidance

The Company narrows its previously released guidance for 2022 and estimates that GAAP net income available to common shareholders will be within the range of $0.35 to $0.38 per diluted share, and FFO will be within the range of $1.00 to $1.02 per diluted share and OP Unit.

Positive Outlook

  • Net income attributable to Whitestone REIT $17,600 - $18,900 (in thousands)
  • FFO $51,000 - $52,300 (in thousands)
  • Net income attributable to Whitestone REIT per share $0.35 - $0.38
  • FFO per diluted per share and OP Unit $1.00 - $1.02
  • Ending occupancy

Challenges Ahead

  • Same store net operating income growth
  • Bad debt as a percentage of revenue
  • General and administrative expense $17,600 - $18,800 (in thousands)
  • Net Debt to EBITDAre Ratio 7.8X - 8.1X
  • The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the comparable GAAP financial measures because we are unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company’s ongoing operations.