On this page of StockholderLetter.com we present the latest annual shareholder letter from Whitestone REIT — ticker symbol WSR. Reading current and past WSR letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT COMMUNITIES T H AT THRIVE
2024 FINANCIAL HIGHLIGHTS 5.1% 6.6x Same Store NOI (1) Growth 5.3% Avg Since 2021 Debt/EBITDAre (2) 2.6x Improvement Versus 2021 11% 9.1% Core FFO Share (3) Growth 5.5% CAGR Since 2021 Dividend Growth 6.5% CAGR Q1 2021 - Q1 2025 5.0% Revenue Growth Up 23% Since 2021 94.1% Occupancy Up 280 Basis Points Since 2021 (1) Same Store NOI Growth is a non-GAAP measure. Please refer to page 10 for a full reconciliation. (2) 4th quarter 2024 annualized Debt/EBITDAre and a comparison with 4th quarter 2021 annualized Debt/EBITDAre. Debt/EBITDAre is a non-GAAP measure. Please refer to page 9 for a full reconciliation. (3) Core FFO/Share is a non-GAAP measure. Please refer to page 8 for a full reconciliation. GROWTH DIFFERENTIATORS Disciplined, operationally focused management team 100% of portfolio growth within low regulation states: TX & AZ 1,400+ high-growth serviceoriented tenants, operating on shorter duration leases 92% centers configured with highdemand 1,500 to 3,000 sq ft spaces Experts in utilizing technology to match neighborhood demands with high-growth businesses Advantages of our Leading Position in High-Value Shop Space: Very strong leasing spreads and SS NOI growth Smaller tenants do not restrict real estate Shorter WALT (4.1 years) provides inflation protection More efficient capital: lower capital requirements translates into higher SS NOI growth Better risk dispersion Approximately 100% Triple Net Leases allow for recovery of over 90% of CAM, tax and insurance expenses Whitestone has shown its tremendous organic growth potential over the last several years and has bolstered earnings with a disciplined, opportunistic property acquisition strategy. Simultaneously growing earnings and meaningfully reducing leverage is an impressive accomplishment for any company and Whitestone continues to display strong momentum. DONALD A. MILLER, CFA Trustee 1
DEAR SHAREHOLDERS We delivered very strong results in 2024. Our north star is consistently growing Core FFO on a per share basis. This allows us to steadily increase our dividend while maintaining an approximate 50% payout ratio. Since 2021, we have grown Core FFO per share at a compound annual rate of 5.5%. That growth, plus the current yield on the stock is ultimately the return we re providing to shareholders. As we continue to execute, we are simultaneously proving the value of our differentiated strategy and broadening our investor base. The value of our assets is steadily climbing as we show what a portfolio of high-return shop space can deliver when properly anchored to the community. So, what do we mean when we say, properly anchored to the community? We identified early on that we had access to the technology and data that allow us to constantly pay attention to the demand drivers that translate into success for the businesses populating our centers. Specifically, we utilize strong local knowledge in conjunction with data from ESRI and Placer.ai to identify which high-growth businesses will best succeed in our centers. Our business model is designed to thrive as change occurs. We are geared to proactively identify change and deliver results as retailers adapt and evolve to changes in demand surrounding their physical locations. At a high level, our formula for success is as follows: ACQUIRE THE RIGHT CENTERS: Acquire centers that fit our criteria. ANCHOR CENTERS TO THE COMMUNITY: Whitestone team members are data centric in determining demand for a center s surrounding community and matching businesses to meet that demand. ALWAYS REMERCHANDISE: Team members constantly reassess the strength of all tenants, increasing a center s traffic and enhancing the Quality of Revenue coming from our tenants. DRIVE RESULTS VIA CAPITAL EFFICIENCY: Redevelopment is done to match changes in the surrounding community and the associated demand and is done while maintaining cash flow.This formula has been key to our delivering on a host of financial and operational metrics, including our 11th consecutive quarter with leasing spreads in excess of 17%. The team at Whitestone views our strategy, our ability to drive earnings growth and the external view of the value of our assets as inexorably linked. We believe we have all the right ingredients to drive the value of our assets higher, while appropriately aligning external views to reflect both our intrinsic value and forward-looking expectations. WHITESTONE REIT 2024 ANNUAL REPORT 2
Supporting our work is the feedback we have received from the investment community. 2024 was an invaluable year of shareholder engagement, and we have acted on many of the constructive perspectives provided by shareholders. In our recent discussions, we have heard support from many of you and appreciate your confidence in the results we re delivering and momentum we are gaining. Our financial and operational results underscore the meaningful advancement we are making against our strategic objectives. Since the beginning of 2022, when new management took over, Whitestone has been the best performing shopping center REIT, with a total return of more than 60%, significantly outpacing the peer average of 8%. The results of our approach are evident in our financial and operational metrics: IMPROVING OPERATIONS: We drove occupancy to 94.1% for the fourth quarter of 2024. We achieved a combined overall positive leasing spread of 20.3% and Same Store NOI growth of 5.1% for the year. Not only is this top quartile Same Store NOI growth, we utilized less capital to achieve this result, in part because the majority of our centers are already correctly configured with high-demand shop space. EARNINGS GROWTH: We delivered 11% Core FFO per share growth in 2024 and in our 4th quarter earnings presentation, we laid out the building blocks that we believe will allow us to continue to deliver 5 7% Core FFO growth in the years ahead. INCREASING RETURNS: Growing earnings allows Whitestone to significantly increase dividends while maintaining our payout ratio, which is among the healthiest in the shopping center sector. Whitestone recently declared dividends for the first quarter of 2025, growing the dividend by 9% and reflecting the Board s confidence in Whitestone s earnings growth trajectory. We are laser focused on growing Core FFO per share and accompanying that growth with an increasing dividend. EVER STRONGER TENANT QUALITY: Whitestone s performance during the pandemic was amongst the best within the peer set, as measured by collections or by the change in Core FFO per share from 2019 to 2020. Since that time, the leasing team has relentlessly refreshed the tenant mix, driving the Bad Debt / Revenue percentage down 40 basis points from the 2019 level. In evaluating businesses, we believe that strong underwriting and leasing team skills are vital to driving strong Same Store NOI growth, enhancing the credit quality of our portfolio and supporting our ability to deliver results in any environment. STRENGTHENING FINANCIAL PROFILE: We have improved our leverage (measured as Net Debt / Pro Forma EBITDAre) from 9.2x (4th quarter 2021) to 6.6x today (4th quarter 2024). We have also been proactive in renewing our corporate 3
77% OF WHITESTONE S TOTAL ABR DRIVEN BY HIGH-VALUE SHOP SPACE Grocery 2% Pets 3% Medical 3% Restaurants & Food Service 3% Other 9% General Retail 4% Non Retail 4% Other 8% Grocery 28% Off Price 5% Restaurants & Food Service 34% Home D cor 4% Pets 3% Pharmacies/ Nutritional 5% Education/ Entertainment 5% Home Improvement 5% Apparel 5% Beauty 12% Fitness 5% General Retail 11% Financial Services 6% Non Retail 7% Medical 10% Fitness 7% Education/ Entertainment 9% Financial Services 6% 70% Breakdown of Large Space ABR Breakdown of Small Space ABR Tenants Over 10,000 Sq FT 23% of Total ABR Tenants Under 10,000 Sq FT 77% of Total ABR TOTAL SHAREHOLDER RETURN 65.8% 60% January 1, 2022 to March 24, 2025 50% 40% 30% 20.8% 20.5% 20% 19.7% 19.0% 14.1% 12.3% 10% 9.8% .1% 0% -10% -20% -30% WSR BRX PECO WHITESTONE REIT 2024 ANNUAL REPORT KRG IVT UE AKR REG KIM -17.5% -18.0% FRT SITC 4
 • shareholder letter icon 4/7/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/31/2023 WSR Stockholder Letter
 • stockholder letter icon 4/4/2024 WSR Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon WSR Benford's Law Stock Score = 40


WSR Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
COMMUNITIES
T H AT
THRIVE

2024 FINANCIAL HIGHLIGHTS
5.1%
6.6x
Same Store NOI (1)
Growth
5.3% Avg Since 2021
Debt/EBITDAre (2)
2.6x Improvement
Versus 2021
11%
9.1%
Core FFO Share (3)
Growth
5.5% CAGR Since 2021
Dividend Growth
6.5% CAGR
Q1 2021 - Q1 2025
5.0%
Revenue Growth
Up 23% Since 2021
94.1%
Occupancy
Up 280 Basis Points
Since 2021
(1)
Same Store NOI Growth is a non-GAAP measure. Please refer to page 10 for a
full reconciliation.
(2)
4th quarter 2024 annualized Debt/EBITDAre and a comparison with 4th
quarter 2021 annualized Debt/EBITDAre. Debt/EBITDAre is a non-GAAP
measure. Please refer to page 9 for a full reconciliation.
(3)
Core FFO/Share is a non-GAAP measure. Please refer to page 8 for a full
reconciliation.
GROWTH DIFFERENTIATORS

Disciplined, operationally focused
management team
100% of portfolio growth within low
regulation states: TX & AZ

1,400+ high-growth serviceoriented tenants, operating on
shorter duration leases

92% centers configured with highdemand 1,500 to 3,000 sq ft spaces

Experts in utilizing technology to
match neighborhood demands with
high-growth businesses
Advantages of our Leading Position
in High-Value Shop Space:
    Very strong leasing spreads and SS NOI growth
    Smaller tenants do not restrict real estate
    Shorter WALT (4.1 years) provides inflation
protection
    More efficient capital: lower capital
requirements translates into higher SS NOI
growth
    Better risk dispersion
    Approximately 100% Triple Net Leases allow for
recovery of over 90% of CAM, tax and insurance
expenses
Whitestone has shown its tremendous organic growth
potential over the last several years and has bolstered
earnings with a disciplined, opportunistic property
acquisition strategy. Simultaneously growing earnings
and meaningfully reducing leverage is an impressive
accomplishment for any company and Whitestone
continues to display strong momentum.   
DONALD A. MILLER, CFA
Trustee
1

DEAR SHAREHOLDERS
We delivered very strong results in 2024. Our north star is consistently growing
Core FFO on a per share basis. This allows us to steadily increase our dividend while
maintaining an approximate 50% payout ratio. Since 2021, we have grown Core
FFO per share at a compound annual rate of 5.5%. That growth, plus the current
yield on the stock is ultimately the return we   re providing to shareholders.
As we continue to execute, we are simultaneously proving the value of our
differentiated strategy and broadening our investor base. The value of our assets
is steadily climbing as we show what a portfolio of high-return shop space can
deliver when properly anchored to the community.
So, what do we mean when we say, properly anchored to the community? We
identified early on that we had access to the technology and data that allow us to
constantly pay attention to the demand drivers that translate into success for the
businesses populating our centers. Specifically, we utilize strong local knowledge
in conjunction with data from ESRI and Placer.ai to identify which high-growth
businesses will best succeed in our centers.
Our business model is designed to thrive as change occurs. We are geared to
proactively identify change and deliver results as retailers adapt and evolve to
changes in demand surrounding their physical locations. At a high level, our
formula for success is as follows:
ACQUIRE THE RIGHT CENTERS: Acquire centers that fit our criteria.
ANCHOR CENTERS TO THE COMMUNITY: Whitestone team members are
data centric in determining demand for a center   s surrounding community and
matching businesses to meet that demand.
ALWAYS REMERCHANDISE: Team members constantly reassess the strength of all
tenants, increasing a center   s traffic and enhancing the Quality of Revenue coming
from our tenants.
DRIVE RESULTS VIA CAPITAL EFFICIENCY: Redevelopment is done to match
changes in the surrounding community and the associated demand     and is done
while maintaining cash flow.This formula has been key to our delivering on a host
of financial and operational metrics, including our 11th consecutive quarter with
leasing spreads in excess of 17%.
The team at Whitestone views our strategy, our ability to drive earnings growth
and the external view of the value of our assets as inexorably linked. We believe
we have all the right ingredients to drive the value of our assets higher, while
appropriately aligning external views to reflect both our intrinsic value and
forward-looking expectations.
WHITESTONE REIT 2024 ANNUAL REPORT
2

Supporting our work is the feedback we have received from the investment
community. 2024 was an invaluable year of shareholder engagement, and we have
acted on many of the constructive perspectives provided by shareholders. In our
recent discussions, we have heard support from many of you and appreciate your
confidence in the results we   re delivering and momentum we are gaining.
Our financial and operational results underscore the meaningful advancement we
are making against our strategic objectives. Since the beginning of 2022, when
new management took over, Whitestone has been the best performing shopping
center REIT, with a total return of more than 60%, significantly outpacing the peer
average of 8%.
The results of our approach are evident in our financial and
operational metrics:
IMPROVING OPERATIONS: We drove occupancy to 94.1% for the fourth quarter of
2024. We achieved a combined overall positive leasing spread of 20.3% and Same
Store NOI growth of 5.1% for the year. Not only is this top quartile Same Store NOI
growth, we utilized less capital to achieve this result, in part because the majority
of our centers are already correctly configured with high-demand shop space.
EARNINGS GROWTH: We delivered 11% Core FFO per share growth in 2024 and
in our 4th quarter earnings presentation, we laid out the building blocks that we
believe will allow us to continue to deliver 5     7% Core FFO growth in the years
ahead.
INCREASING RETURNS: Growing earnings allows Whitestone to significantly
increase dividends while maintaining our payout ratio, which is among the
healthiest in the shopping center sector. Whitestone recently declared dividends
for the first quarter of 2025, growing the dividend by 9% and reflecting the
Board   s confidence in Whitestone   s earnings growth trajectory. We are laser
focused on growing Core FFO per share and accompanying that growth with an
increasing dividend.
EVER STRONGER TENANT QUALITY: Whitestone   s performance during the
pandemic was amongst the best within the peer set, as measured by collections
or by the change in Core FFO per share from 2019 to 2020. Since that time, the
leasing team has relentlessly refreshed the tenant mix, driving the Bad Debt /
Revenue percentage down 40 basis points from the 2019 level.
In evaluating businesses, we believe that strong underwriting and leasing team
skills are vital to driving strong Same Store NOI growth, enhancing the credit
quality of our portfolio and supporting our ability to deliver results in any
environment.
STRENGTHENING FINANCIAL PROFILE: We have improved our leverage
(measured as Net Debt / Pro Forma EBITDAre) from 9.2x (4th quarter 2021) to 6.6x
today (4th quarter 2024). We have also been proactive in renewing our corporate
3

77% OF WHITESTONE   S TOTAL ABR DRIVEN BY HIGH-VALUE SHOP SPACE
Grocery 2%
Pets 3%
Medical
3%
Restaurants &
Food Service
3%
Other
9%
General Retail
4%
Non Retail
4%
Other
8%
Grocery
28%
Off Price
5%
Restaurants & Food Service
34%
Home D  cor
4%
Pets
3%
Pharmacies/
Nutritional
5%
Education/
Entertainment
5%
Home
Improvement
5%
Apparel
5%
Beauty 12%
Fitness
5%
General Retail
11%
Financial
Services
6%
Non Retail
7%
Medical 10%
Fitness
7%
Education/
Entertainment
9%
Financial Services
6%
70%
Breakdown of Large Space ABR
Breakdown of Small Space ABR
Tenants Over 10,000 Sq FT
23% of Total ABR
Tenants Under 10,000 Sq FT
77% of Total ABR
TOTAL SHAREHOLDER RETURN
65.8%
60%
January 1, 2022 to March 24, 2025
50%
40%
30%
20.8%
20.5%
20%
19.7%
19.0%
14.1%
12.3%
10%
9.8%
.1%
0%
-10%
-20%
-30%
WSR
BRX
PECO
WHITESTONE REIT 2024 ANNUAL REPORT
KRG
IVT
UE
AKR
REG
KIM
-17.5%
-18.0%
FRT
SITC
4



shareholder letter icon 4/7/2025 Letter Continued (Full PDF)
 

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