Sep 30, 2024

Whitestone Q3 2024 Earnings Report

Whitestone reported strong third quarter results driven by Same Store Net Operating Income growth, GAAP leasing spreads, and high occupancy.

Key Takeaways

Whitestone REIT announced strong Q3 2024 results, featuring a 4.6% increase in Same Store Net Operating Income, GAAP leasing spreads of 25.3%, and an occupancy rate of 94.1%. The company raised its SS NOI guidance and continued to strengthen its balance sheet, improving its Debt to EBITDAre ratio.

Same Store Net Operating Income grew by 4.6%.

GAAP leasing spreads reached 25.3%.

Occupancy rate stood at 94.1%.

Debt to EBITDAre ratio improved to 7.2 times.

Total Revenue
$39M
Previous year: $37.5M
+3.9%
EPS
$0.25
Previous year: $0.23
+8.7%
Same Store NOI Growth
4.6%
Previous year: 4.9%
-6.1%
Rental Rate Growth - Total
25.3%
Previous year: 23.6%
+7.2%
Gross Profit
$26.8M
Previous year: $25.6M
+4.9%
Cash and Equivalents
$6.2M
Previous year: $686K
+803.9%
Total Assets
$1.11B
Previous year: $1.3B
-14.4%

Whitestone

Whitestone

Forward Guidance

Whitestone REIT updated its 2024 full-year guidance, including net income attributable to Whitestone REIT, same store net operating income growth, general and administrative expense, gain on sale of properties, interest expense, and proxy contest costs.

Positive Outlook

  • Net income attributable to Whitestone REIT is projected to be between $24.602 million and $27.602 million.
  • Core FFO is expected to be between $50.985 million and $53.985 million.
  • Same store net operating income growth is guided to be between 3.75% and 4.75%.
  • Ending occupancy is projected to be between 93.8% and 94.8%.
  • Net Debt to EBITDAre Ratio is expected to be between 7.0x and 6.6x.

Challenges Ahead

  • Bad debt as a percentage of revenue is expected to be between 0.60% and 1.10%.
  • General and administrative expense is projected to be between $22.057 million and $23.557 million.
  • Interest expense is expected to be between $33.4 million and $34.9 million.
  • Revised guidance includes estimated proxy contest costs of $1.757 million.
  • Revised guidance includes a gain on sale of properties that occurred during the nine months ended September 30, 2024.