EX-99.2 3 exhibit992supplementaloper.htm EX-99.2 Document

frontcoverq11a.jpg








CORPORATE PROFILE
NYSE: WSR
Whitestone REIT (NYSE: WSR) is a community-centered shopping center REIT that aquires, owns, manages,
Common Sharesdevelops and redevelops high quality open-air neighborhood centers primarily in the largest, fastest-growing and
most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through
58 Community Centers
creating local connections between consumers in the surrounding communities and a well-crafted mix of national,
5.0 million sq. ft. of gross
regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone
leasable area
has consistently paid a monthly dividend for over 15 years. The Company’s balanced and well-managed
1,403 tenants
capital structure provides stability and flexibility to support it through a multitude of economic cycles.
6 Top Growth Markets
We invest in properties that are or can become Community Centered Properties® from which our tenants deliver
Austinneeded services to the surrounding population. We focus on properties with smaller rental spaces that present
Chicagoopportunities for attractive returns.
Dallas-Fort Worth
Houston
Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide services to their
Phoenix
respective surrounding communities. Operations include an internal management structure providing cost-effective
San Antonio
services to locally-oriented, smaller space tenants. Multi-cultural community focus sets us apart from traditional
commercial real estate operators. We value diversity on our team and maintain in-house leasing, property
Fiscal Year End
management, marketing, construction and maintenance departments with culturally diverse and multi-lingual
12/31
associates who understand the particular needs of our tenants and neighborhoods.
Common Shares &
We have a diverse tenant base concentrated on service offerings such as specialty retail, grocery, restaurants,
Units Outstanding*:
medical, educational and financial services and entertainment. These tenants tend to occupy smaller spaces (less
Common Shares: 42.8 million
than 3,000 square feet) and, as of March 31, 2021, provided a 50% premium rental rate compared to our larger
Operating Partnership Units:
space tenants. The largest of our 1,403 tenants at our wholly owned properties comprised only 2.8% of our
     0.8 million
annualized base rental revenues for the three months ended March 31, 2021.
Distribution (per share / unit)*:
Quarter: $ 0.1075
Investor Relations:
Annualized: $ 0.43Whitestone REITICR Inc.
Dividend Yield: 4.3%**Kevin Reed, Director of Investor RelationsBrad Cohen
2600 South Gessner, Suite 500, Houston, Texas 77063203.682.8211
Board of Trustees:713.435.2219 email: ir@whitestonereit.com
Nandita V. Berry
website: www.whitestonereit.com
Jeffrey A. Jones
Paul T. Lambert
Analyst Coverage:
Jack L. Mahaffey
B. Riley FBR
JMP Securities
Maxim Group
Ladenburg Thalmann
James C. Mastandrea
Craig Kucera
Aaron Hecht
Michael Diana
John J. Massocca
David F. Taylor
540.277.3366
415.835.3963
212.895.3641
212.409.2543
Trustee Emeritus:
ckucera@brileyfbr.com
ahecht@jmpsecurities.com
mdiana@maximgrp.com
jmassocca@ladenburg.com
Daniel G. DeVos
* As of May 3, 2021
** Based on common share price
of $9.96 as of close of market on
May 3, 2021.
We are followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding our performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of our management. We do not by our reference above or distribution imply our endorsement of or concurrence with such information, conclusions or recommendations.
1



WHITESTONE REIT
REPORTS FIRST QUARTER 2021 RESULTS

-Net Income Per Diluted Share Attributable to Whitestone REIT of $0.03 for the First Quarter-
-Strong New Tenant Leasing Volume of 116,993 SF and $19.9 Million in Total Lease Value-


Houston, Texas, May 4, 2021 - Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the first quarter of 2021 with an update on its business activities in light of the ongoing COVID-19 pandemic. Whitestone seeks to create neighborhood center communities in its high quality open-air shopping centers that it acquires, owns, manages, develops, and redevelops primarily in the largest, fastest-growing and most affluent markets in the Sunbelt.

First Quarter Operating and Financial Highlights:
All per share amounts are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.

Net Income attributable to common shareholders of $0.03 per diluted share
Funds from Operations (“FFO”) of $0.20 per share
FFO Core of $0.23 per share
Comparable GAAP-based leasing spreads of 7.8% for the quarter
Same-store Net Operating Income (“NOI”) decreased 4.3% from the same period last year
Annualized Base Rent per leased square foot grew to $19.71 from $19.58 from the prior quarter
Bad debt/uncollectable revenue for the quarter was $0.7 million, or $0.02 per share, primarily due to the COVID-19 pandemic and included $0.1 million of non-cash straight-line rent write offs
Total Net Debt(1) reduced $17.2 million, or 2.6% from prior year

COVID-19 Update Summary (as of May 4, 2021)

All 53 community centers are open and have remained open throughout the pandemic
95% of first quarter 2021 contractual rents have been collected
95% of total April contractual rents have been collected to date
Entered into rent deferral agreements representing 0.5% of first quarter 2021 revenue


Jim Mastandrea, Chairman and Chief Executive Officer of Whitestone REIT, commented, “With a significant portion of the Sunbelt, and specifically our markets, leading the nation’s reopening, Whitestone’s resiliency continues to be demonstrated, evidenced by the strong leasing volumes we recorded in first quarter of 2021. Our leasing volume is underscored by the continued strength we have achieved in cash rental collections throughout the pandemic, where we have consistently performed near the top of the U.S. shopping center industry peers for the past four quarters.” Mr. Mastandrea continued, “Given our sustained performance, the Board of Trustees increased our dividend by 2.4% during the first quarter. We now are re-energized, and as the economy recovers, we expect to re-activate our strategic growth plan, reduce leverage, and scale G&A in our efforts to create long-term value for our shareholders.”











(1) Total Net Debt is defined as outstanding debt plus pro rata share of outstanding debt of real estate partnership less cash and pro rata share of cash of real estate partnership,





2



Financial Results

Reconciliations of Net Income Attributable to Whitestone REIT to FFO, FFO Core and NOI are included herein.

Net income attributable to common shareholders for the quarter ended March 31, 2021 was $1.4 million, or $0.03 per diluted share, inclusive of $0.7 million or $0.02 per share, related to credit loss and straight-line rent reserve, primarily due to the impact of the COVID-19 pandemic. Net income attributable to common shareholders for the quarter ended March 31, 2020 was $1.6 million, or $0.04 per share.

FFO for the quarter ended March 31, 2021 was $8.8 million, or $0.20 per share, as compared to $9.3 million, or $0.21 per share for the quarter ended March 31, 2020. FFO Core for the quarter ended March 31, 2021 was $10.3 million or $0.23 per share, compared to $10.6 million, or $0.24 per share for the quarter ended March 31, 2020.

Operating Results

For the periods ending March 31, 2021 and 2020, the Company’s operating highlights were as follows:
First Quarter 2021First Quarter 2020
Occupancy:
Wholly Owned Properties
88.7%
89.7%
Same Store Property Net Operating Income Change(2)
(4.3)%
(0.9)%
Rental Rate Growth - Total (GAAP Basis):
7.8%
7.3%
New Leases
5.3%
(3.8)%
Renewal Leases
9.6%
8.4%
Leasing Transactions:
Number of New Leases
46
24
New Leases - Annualized Revenue (millions)$19.9$6.0
Number of Renewal Leases
48
56
Renewal Leases - Annualized Revenue (millions)$10.9$15.9

(2) Excludes straight-line rent, amortization of above/below market rates and lease termination fees in both periods.

Real Estate Portfolio Update

Community Centered PropertiesTM Portfolio Statistics:

As of March 31, 2021, Whitestone wholly owned 58 Community Centered PropertiesTM with 5.0 million square feet of gross leasable area ("GLA"). Five of the 58 Community Centered PropertiesTM are land parcels held for future development. The portfolio is comprised of 30 properties in Texas, 27 in Arizona and one in Illinois. Whitestone’s Community Centered PropertiesTM are located in Austin (4), San Antonio (3), Chicago (1), Dallas-Fort Worth (8), Houston (15) and the greater Phoenix metropolitan area (27). In addition to being business friendly, these are six of the top markets in the country in terms of size, economic strength and population growth. 2017 estimates show the projected 5-year population growth rates for both Austin and Dallas-Fort Worth to be 9.7%, San Antonio to be 8.6%, Houston to be 8.0%, and Phoenix to be 6.6%(3). The Company’s properties in these markets are generally located on the best retail corners embedded in affluent communities. The Company also owns an 81.4% equity interest in and manages eight properties containing 0.9 million square feet of GLA through its investment in Pillarstone OP.

At the end of the first quarter, the Company’s diversified tenant base was comprised of 1,403 tenants, with the largest tenant accounting for only 2.8% of annualized base rental revenues. Lease terms range from less than one year for smaller tenants to over 15 years for larger tenants. Whitestone’s leases generally include minimum monthly lease payments and tenant reimbursements for payment of taxes, insurance and maintenance, and typically exclude restrictive lease clauses.

(3) Source: Claritas, as of April 2017.
3



COVID-19 Update Summary

During the first quarter of 2021, the COVID-19 pandemic continued to impact the Company’s operations. Cash collections for the quarter totaled 95% of contractual rents, in line with the 95% in the prior quarter. These strong collections are a result of the Company’s strategic locations, well-crafted tenant mix and the efforts of its team members in proactively working with tenants to assist them through these difficult times. Cash collections in April 2021 are 95% collected to date.

Balance Sheet and Liquidity

At March 31, 2021, Whitestone had $22.8 million in cash and cash equivalents, $15.9 million of availability and $130.5 million of capacity under its credit facility.

The Company has undepreciated real estate assets of $1.1 billion at March 31, 2021.

At March 31, 2021, 51 of the Company’s wholly owned 58 properties were unencumbered by mortgage debt, with an undepreciated cost basis of $826.7 million. At March 31, 2021, the Company had total real estate debt, net of cash, of $622.0 million, of which approximately 85% was subject to fixed interest rates. The Company’s weighted average interest rate on all fixed rate debt as of the end of the first quarter was 4.1% and the weighted average remaining term was 4.1 years.

Dividend

On February 10, 2021, the Company raised its quarterly distribution to $0.1075 per common share and OP units, equal to a monthly distribution of $0.035833, beginning with the March 2021 distribution. On March 26, 2021, the Company declared a quarterly cash distribution of $0.1075 per common share and OP unit for the second quarter of 2021, to be paid in three equal installments of $0.035833 in April, May, and June of 2021.

Conference Call Information

In conjunction with the issuance of its financial results, the Company invites you to listen to its earnings release conference call to be broadcast live on Wednesday, May 5, 2021 at 10:00 A.M. Central Time. The call will be led by James C. Mastandrea, Chairman and Chief Executive Officer, and David K. Holeman, Chief Financial Officer. Conference call access information is as follows:

Dial-in number for domestic participants: (877) 407-4018
Dial-in number for international participants: (201) 689-8471

The conference call will be recorded, and a telephone replay will be available through Wednesday, May 19, 2021. Replay access information is as follows:

Replay number for domestic participants:
         (844) 512-2921
Replay number for international participants:
(412) 317-6671
Passcode (for all participants):
13715688


To listen to a webcast of the conference call, click on the Investor Relations tab of the Company’s website, www.whitestonereit.com, and then click on the webcast link. A replay of the call will be available on Whitestone’s website via the webcast link until the Company’s next earnings release. Additional information about Whitestone can be found on the Company’s website.

The first quarter earnings release and supplemental data package will be located in the Investor Relations section of the Company’s website. For those without internet access, the earnings release and supplemental data package will be available by mail upon request. To receive a copy, please call the Company’s Investor Relations line at (713) 435-2219.

Supplemental Financial Information

Supplemental materials and details regarding Whitestone's results of operations, communities and tenants are available on the Company's website at www.whitestonereit.com.

4


About Whitestone REIT

Whitestone is a community-centered shopping center REIT that acquires, owns, manages, develops and redevelops high-quality open-air neighborhood centers primarily in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through creating local connections between consumers in the surrounding communities and a well-crafted mix of national, regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone is a monthly dividend paying stock and has consistently paid dividends for over 15 years. Whitestone’s strong, balanced and managed capital structure provides stability and flexibility for growth and positions Whitestone to perform well through economic cycles. For additional information, please visit www.whitestonereit.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements include statements about our earnings guidance, future liquidity, performance growth and expectations and other matters and can generally be identified by the Company’s use of forward-looking terminology, such as “may,” “will,” “plan,” “expect,” “intend,” “anticipate,” “believe,” “continue,” “goals” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.

The following are additional factors that could cause the Company's actual results and its expectations to differ materially from those described in the Company's forward-looking statements: uncertainties related to the COVID-19 pandemic, including the unknown duration and economic, operational and financial impacts of the COVID-19 pandemic, and the actions taken or contemplated by U.S. and local governmental authorities or others in response to the pandemic on the Company’s business, employees and tenants, including, among others, (a) changes in tenant demand for the Company’s properties, (b) financial challenges confronting major tenants, including as a result of decreased customers’ willingness to frequent, and mandated stay in place orders that have prevented customers from frequenting, some of Company’s tenants’ businesses and the impact of these issues on the Company’s ability to collect rent from its tenants; (c) operational changes implemented by the Company, including remote working arrangements, which may put increased strain on IT systems and create increased vulnerability to cybersecurity incidents, (d) significant reduction in the Company’s liquidity due to the lack of further availability under its revolving credit facility and limited ability to access the capital markets and other sources of financing on attractive terms or at all, and (e) prolonged measures to contain the spread of COVID-19 or the fluctuating government-imposed restrictions implemented to contain the spread of COVID-19; adverse economic or real estate developments or conditions in Texas or Arizona, Houston and Phoenix in particular, including as a result of any resurgencies in COVID-19 cases in such areas and the impact on our tenants’ ability to pay their rent, which could result in bad debt allowances or straight-line rent reserve adjustments; the imposition of federal income taxes if we fail to qualify as a real estate investment trust (“REIT”) in any taxable year or forego an opportunity to ensure REIT status; the Company's ability to meet its long-term goals, including its ability to execute effectively its acquisition and disposition strategy, to continue to execute its development pipeline on schedule and at the expected costs, and its ability to grow its NOI as expected, which could be impacted by a number of factors, including, among other things, its ability to continue to renew leases or re-let space on attractive terms and to otherwise address its leasing rollover; its ability to successfully identify, finance and consummate suitable acquisitions, and the impact of such acquisitions, including financing developments, capitalization rates and internal rates of return; the Company’s ability to reduce or otherwise effectively manage its general and administrative expenses; the Company’s ability to fund from cash flows or otherwise distributions to its shareholders at current rates or at all; current adverse market and economic conditions including, but not limited to, the significant volatility and disruption in the global financial markets caused by the COVID-19 pandemic; lease terminations or lease defaults; the impact of competition on the Company's efforts to renew existing leases; changes in the economies and other conditions of the specific markets in which the Company operates; economic, legislative and regulatory changes, including changes to laws governing REITs and the impact of the legislation commonly known as the Tax Cuts and Jobs Act; the success of the Company's real estate strategies and investment objectives; the Company's ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended; and other factors detailed in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents the Company files with the Securities and Exchange Commission from time to time.



5


Non-GAAP Financial Measures

This release contains supplemental financial measures that are not calculated pursuant to U.S. generally accepted accounting principles (“GAAP”) including EBITDAre, EBITDAre-Adjusted, FFO, FFO Core, and NOI. Following are explanations and reconciliations of these metrics to their most comparable GAAP metric.

EBITDAre: The National Association of Real Estate Investment Trusts (“NAREIT”) defines EBITDAre as net income computed in accordance with GAAP, plus interest expense, income tax expense, depreciation and amortization and impairment write-downs of depreciable property and of investments in unconsolidated affiliates caused by a decrease in value of depreciable property in the affiliate, plus, or minus losses and gains on the disposition of depreciable property, including losses/gains on change in control and adjustments to reflect the entity’s share of EBITDAre of the unconsolidated affiliates and consolidated affiliates with non-controlling interests. The Company calculates EBITDAre in a manner consistent with the NAREIT definition. Management believes that EBITDAre will represent a supplemental non-GAAP performance measure that will provide investors with a relevant basis for comparing REITs. There can be no assurance the EBITDAre as presented by the Company is comparable to similarly titled measures of other REITs. EBITDAre should not should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.

EBITDAre-Adjusted: The Company also presents EBITDAre-Adjusted as an additional supplemental measure as we believe it is reflective of the core operating performance of our portfolio of properties. EBITDAre-Adjusted is defined as NAREIT EBITDAre excluding charges and gains related to non-cash and non-operating transactions and other events that could affect the comparability of operating results. Specific examples of items excluded from EBITDAre-Adjusted include, but are not limited to, share-based compensation and management fees, net of related costs. There can be no assurance that EBITDAre-Adjusted as presented by the Company is comparable to similarly titled measures of other REITs. EBITDAre-Adjusted should not be considered an alternative to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre-Adjusted does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.

FFO: Funds From Operations: Management believes that FFO is a useful measure of the Company's operating performance. The Company computes FFO as defined by NAREIT, which states that FFO should represent net income (loss) (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of the Company's performance or to cash flow from operations as a measure of liquidity or ability to make distributions and service debt.

Management considers FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, management believes that FFO provides a more meaningful and accurate indication of the Company's performance and useful information for the investment community to compare Whitestone to other REITs since FFO is generally recognized as the industry standard for reporting the operations of REITs.

Other REITs may use different methodologies for calculating FFO, and accordingly, the Company's FFO may not be comparable to other REITs. The Company presents FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding OP units for the periods presented.

FFO Core: Funds From Operations Core: Management believes that the computation of FFO in accordance with NAREIT's definition includes certain non-cash and non-comparable items that affect the Company's period-over-period performance. These items include, but are not limited to, legal settlements, debt extension costs, non-cash share-based compensation expense and rent support agreement payments received from sellers on acquired assets. In addition, the Company believes that FFO Core is a useful supplemental measure for the investing community to use in comparing the Company to other REITs as many REITs provide some form of adjusted or modified FFO. However, other REITs may use different adjustments, and the Company's FFO Core may not be comparable to the adjusted or modified FFO of other REITs.

NOI: Net Operating Income: Management believes that NOI is a useful measure of the Company's property operating performance. The Company defines NOI as operating revenues (rental and other revenues) less property and related expenses
6


(property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, pro rata share of NOI of unconsolidated entities and capital expenditures and leasing costs, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company's results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about the Company's property and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of property performance in the real estate industry. However, NOI should not be viewed as a measure of the Company's overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company's NOI may not be comparable to that of other REITs.

Same Store NOI: Management believes that Same Store NOI is a useful measure of the Company’s property operating performance because it includes only the properties that have been owned for the entire period being compared, and that it is frequently used by the investment community. Same Store NOI assists in eliminating differences in NOI due to the acquisition or disposition of properties during the period being presented, providing a more consistent measure of the Company’s performance. The Company defines Same Store NOI as operating revenues (rental and other revenues, excluding straight-line rent adjustments, amortization of above/below market rents, and lease termination fees) less property and related expenses (property operation and maintenance and real estate taxes), Non-Same Store NOI, and NOI of our investment in Pillarstone OP (pro rata). We define “Non-Same Stores” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. Other REITs may use different methodologies for calculating Same Store NOI, and accordingly, the Company's Same Store NOI may not be comparable to that of other REITs.

Media Contact:                                Investor Contact:
Rebecca Elliott, VP of Corporate Communications                Kevin Reed, Director of Investor Relations
Whitestone REIT                                Whitestone REIT
(713) 435-2228                                (713) 435-2219
Relliott@whitestonereit.com                        Kreed@whitestonereit.com



7



Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, 2021December 31, 2020
ASSETS
Real estate assets, at cost
Property$1,107,895 $1,106,426 
Accumulated depreciation(170,286)(163,712)
Total real estate assets937,609 942,714 
Investment in real estate partnership34,068 33,979 
Cash and cash equivalents22,820 25,777 
Restricted cash106 179 
Escrows and acquisition deposits6,923 9,274 
Accrued rents and accounts receivable, net of allowance for doubtful accounts (1)
23,309 23,009 
Receivable due from related party731 335 
Unamortized lease commissions, legal fees and loan costs7,951 7,686 
Prepaid expenses and other assets(2)
3,127 2,049 
Total assets$1,036,644 $1,045,002 
LIABILITIES AND EQUITY
Liabilities:
Notes payable$645,230 $644,185 
Accounts payable and accrued expenses(3)
41,163 50,918 
Payable due to related party160 125 
Tenants' security deposits7,059 6,916 
Dividends and distributions payable4,660 4,532 
Total liabilities698,272 706,676 
Commitments and contingencies:— — 
Equity:
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of March 31, 2021 and December 31, 2020— — 
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 42,579,059 and 42,391,316 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively43 42 
Additional paid-in capital563,338 562,250 
Accumulated deficit(219,016)(215,809)
Accumulated other comprehensive loss(12,220)(14,400)
Total Whitestone REIT shareholders' equity332,145 332,083 
Noncontrolling interest in subsidiary6,227 6,243 
Total equity338,372 338,326 
Total liabilities and equity$1,036,644 $1,045,002 



8


Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands)

March 31, 2021December 31, 2020
(1) Accrued rents and accounts receivable, net of allowance for doubtful accounts
Tenant receivables$22,900 $22,956 
Accrued rents and other recoveries16,944 16,348 
Allowance for doubtful accounts(16,792)(16,426)
Other receivables257 131 
Total accrued rents and accounts receivable, net of allowance for doubtful accounts$23,309 $23,009 
(2) Operating lease right of use assets (net)
$548 $592 
(3) Operating lease liabilities
$558 $603 

9


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
Three Months Ended March 31,
20212020
Revenues
Rental(1)
$28,695 $30,196 
Management, transaction, and other fees350 388 
Total revenues29,045 30,584 
Operating expenses
Depreciation and amortization7,013 6,971 
Operating and maintenance4,839 5,597 
Real estate taxes4,038 4,536 
General and administrative
5,634 5,100 
Total operating expenses21,524 22,204 
Other expenses (income)
Interest expense6,132 6,693 
(Gain) loss on sale or disposal of assets, net(1)207 
Interest, dividend and other investment income(49)(62)
Total other expense6,082 6,838 
Income before equity investment in real estate partnership and income tax1,439 1,542 
Equity in earnings of real estate partnership89 192 
Provision for income tax(87)(87)
Net income1,441 1,647 
Less: Net income attributable to noncontrolling interests26 35 
Net income attributable to Whitestone REIT$1,415 $1,612 


10


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
Three Months Ended March 31,
20212020
Basic Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares
$0.03 $0.04 
Diluted Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares
$0.03 $0.04 
Weighted average number of common shares outstanding:
Basic42,495 42,048 
Diluted43,331 43,009 
Consolidated Statements of Comprehensive Income (Loss)
Net income$1,441 $1,647 
Other comprehensive income (loss)
Unrealized gain (loss) on cash flow hedging activities2,221 (10,952)
Comprehensive income (loss)3,662 (9,305)
Less: Net income attributable to noncontrolling interests26 35 
Less: Comprehensive income (loss) attributable to noncontrolling interests41 (231)
Comprehensive income (loss) attributable to Whitestone REIT$3,595 $(9,109)
11


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)

Three Months Ended March 31,
20212020
    (1) Rental
Rental revenues$21,626 $22,077 
Recoveries7,598 8,963 
Bad debt(529)(844)
Total rental$28,695 $30,196 





12


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended March 31,
 20212020
Cash flows from operating activities:  
  Net income$1,441 $1,647 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization7,013 6,971 
Amortization of deferred loan costs274 282 
(Gain) loss on sale or disposal of assets and loan forgiveness, net(1)207 
Bad debt529 844 
Share-based compensation1,398 1,248 
Equity in earnings of real estate partnership(89)(192)
Changes in operating assets and liabilities:
Escrows and acquisition deposits2,352 2,068 
Accrued rents and accounts receivable(829)(886)
Receivable due from related party(396)(419)
Unamortized lease commissions, legal fees and loan costs(844)(423)
Prepaid expenses and other assets611 (10,154)
Accounts payable and accrued expenses(7,534)3,737 
Payable due to related party35 144 
Tenants' security deposits143 139 
Net cash provided by operating activities4,103 5,213 
Cash flows from investing activities:  
Additions to real estate(1,528)(1,593)
Net cash used in investing activities(1,528)(1,593)
Cash flows from financing activities:  
Distributions paid to common shareholders(4,480)(11,928)
Distributions paid to OP unit holders(82)(258)
Proceeds from issuance of common shares, net of offering costs— 2,241 
Payments of exchange offer costs— (32)
Net proceeds from credit facility— 30,000 
Repayments of notes payable(719)(777)
Repurchase of common shares(324)(1,630)
Net cash provided by (used in) financing activities(5,605)17,616 
Net increase (decrease) in cash, cash equivalents and restricted cash(3,030)21,236 
Cash, cash equivalents and restricted cash at beginning of period25,956 15,643 
Cash, cash equivalents and restricted cash at end of period (1)
$22,926 $36,879 

(1)     For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below.


13


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Supplemental Disclosures
(in thousands)
Three Months Ended March 31,
20212020
Supplemental disclosure of cash flow information:  
Cash paid for interest$5,936 $6,461 
Non cash investing and financing activities:  
Disposal of fully depreciated real estate$$24 
Financed insurance premiums$1,712 $1,431 
Value of shares issued under dividend reinvestment plan$15 $42 
Value of common shares exchanged for OP units$— $44 
Change in fair value of cash flow hedge$2,221 $(10,952)

March 31,
20212020
Cash, cash equivalents and restricted cash
Cash and cash equivalents$22,820 $36,774 
Restricted cash106 105 
Total cash, cash equivalents and restricted cash$22,926 $36,879 


14


Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
Three Months Ended
 March 31,
FFO (NAREIT) AND FFO CORE20212020
Net income attributable to Whitestone REIT$1,415 $1,612 
  Adjustments to reconcile to FFO:
Depreciation and amortization of real estate assets6,980 6,909 
Depreciation and amortization of real estate assets of real estate partnership (pro rata)
405 449 
(Gain) loss on sale or disposal of assets, net(1)207 
Loss on sale or disposal of properties or assets of real estate partnership (pro rata)— 53 
Net income attributable to noncontrolling interests
26 35 
FFO (NAREIT)8,825 9,265 
  Adjustments to reconcile to FFO Core:
Share-based compensation expense1,468 1,326 
FFO Core$10,293 $10,591 
FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO$8,825 $9,265 
Distributions paid on unvested restricted common shares
— — 
FFO excluding amounts attributable to unvested restricted common shares
$8,825 $9,265 
FFO Core excluding amounts attributable to unvested restricted common shares
$10,293 $10,591 
Denominator:
Weighted average number of total common shares - basic
42,495 42,048 
Weighted average number of total noncontrolling OP units - basic
773 904 
Weighted average number of total common shares and noncontrolling OP units - basic
43,268 42,952 
Effect of dilutive securities:
Unvested restricted shares836 961 
Weighted average number of total common shares and noncontrolling OP units - diluted
44,104 43,913 
FFO per common share and OP unit - basic$0.20 $0.22 
FFO per common share and OP unit - diluted$0.20 $0.21 
FFO Core per common share and OP unit - basic$0.24 $0.25 
FFO Core per common share and OP unit - diluted
$0.23 $0.24 

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
Three Months Ended
 March 31,
PROPERTY NET OPERATING INCOME20212020
Net income attributable to Whitestone REIT$1,415 $1,612 
General and administrative expenses5,634 5,100 
Depreciation and amortization7,013 6,971 
Equity in earnings of real estate partnership(89)(192)
Interest expense6,132 6,693 
Interest, dividend and other investment income(49)(62)
Provision for income taxes87 87 
Management fee, net of related expenses80 108 
(Gain) loss on sale or disposal of assets, net(1)207 
NOI of real estate partnership (pro rata)891 1,096 
Net income attributable to noncontrolling interests26 35 
NOI21,139 21,655 
Non-Same Store NOI (1)
— — 
NOI of real estate partnership (pro rata)(891)(1,096)
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)20,248 20,559 
Same Store straight-line rent adjustments(210)334 
Same Store amortization of above/below market rents(201)(209)
Same Store lease termination fees(76)(30)
Same Store NOI (2)
$19,761 $20,654 

(1)    We define “Non-Same Store” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. For purposes of comparing the three months ended March 31, 2021 to the three months ended March 31, 2020, Non-Same Store includes properties acquired between January 1, 2020 and March 31, 2021 and properties sold between January 1, 2020 and March 31, 2021, but not included in discontinued operations.

(2)    We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended March 31, 2021 to the three months ended March 31, 2020, Same Store includes properties owned before January 1, 2020 and not sold before March 31, 2021.
Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
Three Months Ended
March 31,
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)20212020
Net income attributable to Whitestone REIT$1,415 $1,612 
Depreciation and amortization7,013 6,971 
Interest expense6,132 6,693 
Provision for income taxes87 87 
Net income attributable to noncontrolling interests26 35 
Equity in earnings of real estate partnership(89)(192)
EBITDAre adjustments for real estate partnership685 887 
(Gain) loss on sale or disposal of assets, net(1)207 
EBITDAre15,268 16,300 
Management fee, net of related expenses80 108 
Share-based compensation expense1,468 1,326 
EBITDAre-Adjusted$16,816 $17,734 
15


Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)

Three Months Ended March 31,
20212020ChangePercent Change
Same Store (53 properties, excluding development land)
Property revenues
Rental$28,695 $30,196 $(1,501)(5)%
Management, transaction and other fees210 232 (22)(9)%
Total property revenues28,905 30,428 (1,523)(5)%
Property expenses
Property operation and maintenance4,619 5,333 (714)(13)%
Real estate taxes4,038 4,536 (498)(11)%
Total property expenses8,657 9,869 (1,212)(12)%
Total property revenues less total property expenses20,248 20,559 (311)(2)%
Same Store straight-line rent adjustments(210)334 (544)(163)%
Same Store amortization of above/below market rents(201)(209)(4)%
Same Store lease termination fees(76)(30)(46)153 %
Same Store NOI (1)
$19,761 $20,654 $(893)(4)%

(1)     For a reconciliation of Same Store NOI, see previous section “Reconciliation of Non-GAAP Measures.”
16



Whitestone REIT and Subsidiaries
OTHER FINANCIAL INFORMATION
(in thousands, except number of properties and employees)

Three Months Ended
March 31,
 20212020
Other Financial Information:
Tenant improvements (1) (2)
$480 $494 
Leasing commissions (1) (2)
$766 $370 
Maintenance capital (1)
$739 $1,086 
Scheduled debt principal payments (1)
$454 $483 
Straight-line rent income (1)
$214 $(382)
Market rent amortization income from acquired leases (1)
$198 $207 
Non-cash share-based compensation expense (1)
$1,468 $1,326 
Non-real estate depreciation and amortization (1)
$34 $62 
Amortization of loan fees (1)
$280 $283 
Undepreciated value of unencumbered properties$826,732 $803,952 
Number of unencumbered properties51 50 
Full time employees90 92 

(1)     Includes pro-rata share attributable to real estate partnership.

(2)    Does not include first generation costs needed for new acquisitions, development or redevelopment of a property to bring the property to operating standards for its intended use.


17


Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(in thousands, except per share amounts and percentages)
As of March 31, 2021
MARKET CAPITALIZATION:Percent of Total EquityTotal Market CapitalizationPercent of Total Market Capitalization
Equity Capitalization:
Common shares outstanding98.2 %42,579 
Operating partnership units outstanding1.8 %773 
Total100.0 %43,352 
Market price of common shares as of
March 31, 2021
$9.70 
Total equity capitalization420,514 40 %
Debt Capitalization:
Outstanding debt$646,157 
Less: Cash and cash equivalents(22,820)
Total debt capitalization623,337 60 %
Total Market Capitalization as of
March 31, 2021$1,043,851 100 %

SELECTED RATIOS:
Three Months Ended
March 31,
INTEREST COVERAGE RATIO20212020
EBITDAre/Interest Expense
EBITDAre (1)
$15,268 $16,300 
Interest expense
6,132 6,693 
Pro rata share of interest expense from real estate partnership
161 156 
Less: amortization of loan fees, including pro rata share from real estate partnership
(280)(283)
Interest expense, excluding amortization of loan fees
6,013 6,566 
Ratio of EBITDAre to interest expense2.5 2.5 

(1)    For a reconciliation of EBITDAre, see previous section “Reconciliation of Non-GAAP Measures.”


18


Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(continued)
(in thousands, except per share amounts and percentages)
LEVERAGE RATIOMarch 31,
20212020
Debt/Undepreciated Book Value
Outstanding debt$644,771 $675,469 
Less: Cash(22,820)(36,774)
Add: Proportional share of net debt of real estate partnership
9,185 10,162 
Outstanding debt after cash$631,136 $648,857 
Undepreciated real estate assets$1,107,895 $1,101,118 
Add: Proportional share of real estate from unconsolidated partnership
45,886 45,630 
Undepreciated real estate assets$1,153,781 $1,146,748 
Ratio of debt to real estate assets55 %57 %

Three Months Ended
March 31,
20212020
Debt/EBITDAre Ratio
Outstanding debt$644,771 $675,469 
Less: Cash(22,820)(36,774)
Add: Proportional share of net debt of unconsolidated real estate partnership
9,185 10,162 
Total Net Debt$631,136 $648,857 
EBITDAre$15,268 $16,300 
Management fee, net of related expenses80 108 
Share based compensation1,468 1,326 
EBITDAre-Adjusted$16,816 $17,734 
Effect of partial period acquisitions and dispositions— — 
Pro forma EBITDAre-Adjusted16,816 17,734 
Pro forma annualized EBITDAre-Adjusted$67,264 $70,936 
Ratio of debt to pro forma EBITDAre-Adjusted 9.49.1






19


 Whitestone REIT and Subsidiaries
SUMMARY OF OUTSTANDING DEBT AND DEBT MATURITIES
TOTAL OUTSTANDING DEBT
(in thousands)
DescriptionMarch 31, 2021December 31, 2020
Fixed rate notes
$100.0 million, 1.73% plus 1.35% to 1.90% Note, due October 30, 2022 (1)
$100,000 $100,000 
$165.0 million, 2.24% plus 1.35% to 1.90% Note, due January 31, 2024 (2)
165,000 165,000 
$80.0 million, 3.72% Note, due June 1, 202780,000 80,000 
$19.0 million 4.15% Note, due December 1, 202418,604 18,687 
$20.2 million 4.28% Note, due June 6, 202318,117 18,222 
$14.0 million 4.34% Note, due September 11, 202413,171 13,236 
$14.3 million 4.34% Note, due September 11, 202413,953 14,014 
$15.1 million 4.99% Note, due January 6, 202414,100 14,165 
$2.6 million 5.46% Note, due October 1, 20232,326 2,339 
$1.7 million 3.25% Note, due December 28, 20211,386 — 
$50.0 million, 5.09% Note, due March 22, 202950,000 50,000 
$50.0 million, 5.17% Note, due March 22, 202950,000 50,000 
Floating rate notes
Unsecured line of credit, LIBOR plus 1.40% to 1.90%, due January 31, 2023 119,500 119,500 
Total notes payable principal646,157 645,163 
Less deferred financing costs, net of accumulated amortization(927)(978)
Total notes payable$645,230 $644,185 

(1)    Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 3 at 1.73%.

(2)     Promissory note includes an interest rate swap that fixed the LIBOR portion of the interest rate at an average rate of 2.24% for the duration of the term through January 31, 2024.


SCHEDULE OF DEBT MATURITIES AS OF MARCH 31, 2021
(in thousands)
YearAmount Due
2021 (remaining)$2,822 
2022101,684 
2023147,363 
2024228,574 
202517,143 
Thereafter148,571 
Total$646,157 

20



Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS
Gross Leasable Area as ofOccupancy % as of
March 31,March 31,December 31,September 30,June 30,
Community Centered Properties®
20212021202020202020
Whitestone4,953,571 89 %88 %89 %89 %
Unconsolidated real estate partnership
926,79859 %61 %62 %67 %
 

21


Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS
(continued)
Tenant NameLocationAnnualized Rental Revenue
(in thousands)
Percentage of Total Annualized Base Rental Revenues (1)
Initial Lease DateYear Expiring
Safeway Stores Incorporated (2)
Austin, Houston and Phoenix$2,419 2.8 %11/14/1982, 5/8/1991, 7/1/2000, 4/1/2014, 4/1/2014 and 10/19/162022, 2024, 2025, 2025, 2026 and 2034
Whole Foods MarketHouston2,247 2.6 %9/3/20142035
Frost BankHouston1,948 2.3 %7/1/20142024
Newmark Real Estate of Houston LLCHouston1,050 1.2 %10/1/20152026
Bashas' Inc. (3)
Phoenix1,010 1.2 %10/9/2004 and 4/1/20092024 and 2029
Verizon Wireless (4)
Houston and Phoenix952 1.1 %8/16/1994, 2/1/2004, 5/10/2004, 1/27/2006 and 5/1/20142022, 2023, 2024, 2024 and 2038
Walgreens & Co. (5)
Houston and Phoenix946 1.1 %11/14/1982, 11/2/1987, 8/24/1996 and 11/3/19962022, 2027, 2049 and 2056
Alamo Drafthouse CinemaAustin690 0.8 %2/1/20122031
Dollar Tree (6)
Houston and Phoenix635 0.7 %8/10/1999, 6/29/2001, 11/8/2009, 12/17/2009, and 5/21/20132023, 2025, 2025, 2026 and 2027
Wells Fargo & Company (7)
Phoenix578 0.7 %10/24/1996 and 4/16/19992022 and 2023
Kroger Co.Dallas483 0.6 %12/15/20002022
Regus CorporationHouston451 0.5 %5/23/142025
New 1960 Enterprises CompanyHouston439 0.5 %6/3/20142025
Paul's Ace HardwarePhoenix427 0.5 %3/1/20082023
Original Ninfas LPHouston403 0.5 %8/29/20182029
$14,678 17.1 %

(1)    Annualized Base Rental Revenues represents the monthly base rent as of March 31, 2021 for each applicable tenant multiplied by 12.

(2)    As of March 31, 2021, we had six leases with the same tenant occupying space at properties located in Phoenix, Houston and Austin. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2034, was $1,047,000, which represents approximately 1.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2024, was $42,000, which represents less than 0.1% of our annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 8, 1991, and is scheduled to expire in 2026, was $344,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on July 1, 2000, and is scheduled to expire in 2025, was $353,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in
22


2022, was $318,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on October 19, 2016, and is scheduled to expire in 2025, was $315,000, which represents approximately 0.4% of our total annualized base rental revenue.

(3)    As of March 31, 2021, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 9, 2004, and is scheduled to expire in 2024, was $281,000, which represents approximately 0.3% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2009, and is scheduled to expire in 2029, was $729,000, which represents approximately 0.9% of our total annualized base rental revenue.

(4)    As of March 31, 2021, we had five leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on August 16, 1994, and is scheduled to expire in 2038, was $22,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on January 27, 2006, and is scheduled to expire in 2023, was $136,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on February 1, 2004, and is scheduled to expire in 2024, was $38,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 1, 2014, and is scheduled to expire in 2024, was $749,000, which represents approximately 0.9% of our total annualized rental revenue. The annualized rental revenue for the lease that commenced on May 10, 2004, and is scheduled to expire in 2022, was $6,000, which represents less than 0.1% of our total annualized base rental revenue.

(5)    As of March 31, 2021, we had four leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on November 3, 1996, and is scheduled to expire in 2049, was $279,000, which represents approximately 0.3% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 2, 1987, and is scheduled to expire in 2027, was $189,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in 2022, was $181,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on August 24, 1996, and is scheduled to expire in 2056, was $298,000, which represents approximately 0.3% of our total annualized rental revenue.

(6)    As of March 31, 2021, we had five leases with the same tenant occupying space at properties in Houston and Phoenix. The annualized rental revenue for the lease that commenced on August 10, 1999, and is scheduled to expire in 2025, was $88,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on December 17, 2009, and is scheduled to expire in 2025, was $118,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on June 29, 2001, and is scheduled to expire in 2026, was $169,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 21, 2013, and is scheduled to expire in 2023, was $110,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 8, 2009, and is scheduled to expire in 2027, was $151,000, which represents approximately 0.2% of our total annualized base rental revenue.

(7)    As of March 31, 2021, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 24, 1996, and is scheduled to expire in 2022, was $131,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 16, 1999, and is scheduled to expire in 2023, was $447,000, which represents approximately 0.5% of our total annualized base rental revenue.

23



Whitestone REIT and Subsidiaries
COVID-19 - STATUS OF TENANTS
% of Leased SF% of ABR
Q1 2021 Cash Payments Received %(1)
April Cash Payments Received %(1)
Restaurants & Food Service17%23%95%96%
Grocery15%9%100%97%
Financial Services6%9%99%100%
Salons6%8%93%95%
Medical & Dental7%8%94%92%
Non Retail5%6%91%94%
Home Décor And Improvement7%5%98%98%
General Retail7%5%93%95%
Apparel4%4%89%97%
Education4%4%99%95%
Fitness5%4%92%93%
Local Services2%3%95%96%
Off-Price4%2%99%100%
Pet Supply & Services3%2%95%96%
Wireless1%2%93%98%
Entertainment2%2%73%52%
Pharmacies & Nutritional Supplies2%2%100%99%
Sporting Goods1%1%100%100%
Postal Services1%1%97%94%
Automotive Supply & Services1%0%97%100%
Electronics0%0%100%100%
Total100%100%95%95%


(1) Collections received through May 3, 2021 that are for contractual rent (base rent and expense reimbursement) in the respective period
24



Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY

Three Months Ended
March 31,
20212020
RENEWALS
Number of Leases48 56 
Total Square Feet (1)
108,232 168,230 
Average Square Feet2,255 3,004 
Total Lease Value$10,929,000 $15,923,000 
NEW LEASES
Number of Leases46 24 
Total Square Feet (1)
116,993 52,909 
Average Square Feet2,543 2,205 
Total Lease Value$19,895,000 $6,032,000 
TOTAL LEASES
Number of Leases94 80 
Total Square Feet (1)
225,225 221,139 
Average Square Feet2,396 2,764 
Total Lease Value$30,824,000 $21,955,000 

(1)    Represents the square footage as the result of new, renewal, expansion and contraction leases.

25



Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY


TypeNumber of Leases SignedLease Value SignedGLA Signed
Weighted Average Lease Term (2)
TI and Incentives (3)
TI and Incentives Per Sq. Ft.
Contractual Rent Per Sq. Ft. (4)
Prior Contractual Rent Per Sq. Ft. (5)
Annual Increase (Decrease) in Contractual RentCash Basis Increase (Decrease) Over Prior RentAnnual Increase (Decrease) in Straight-lined RentStraight-lined Basis Increase (Decrease) Over Prior Rent
Comparable: (1)
Comparable Total Leases:
1st Quarter 202172 $21,870,651 160,509 5.4 $1,201,947 $7.49 $22.12 $23.14 $(162,801)(4.4)%$273,174 7.8 %
4th Quarter 202073 16,880,587 297,812 4.1 388,146 1.30 13.20 13.19 4,030 0.1 %254,859 6.8 %
3rd Quarter 202063 15,059,079 216,564 3.8 723,072 3.34 16.35 15.83 107,566 3.3 %344,848 11.0 %
2nd Quarter 202054 13,620,242 162,729 4.2 418,007 2.57 18.66 18.30 59,644 2.0 %315,893 11.3 %
Total - 12 months262 $67,430,559 837,614 4.3 $2,731,172 $3.26 $16.78 $16.77 $8,439 0.1 %$1,188,774 9.0 %
Comparable New Leases:
1st Quarter 202126 $11,296,796 56,578 6.7 $1,002,823 $17.72 $23.87 $26.52 $(149,925)(10.0)%$75,001 5.3 %
4th Quarter 202020 4,653,817 30,371 5.5 291,222 9.59 23.58 26.73 (95,836)(11.8)%(42,922)(5.4)%
3rd Quarter 202018 5,437,366 45,158 4.8 630,803 13.97 22.39 21.80 26,323 2.7 %25,687 2.9 %
2nd Quarter 202011 3,864,386 25,792 5.9 227,075 8.80 22.65 24.05 (35,900)(5.8)%19,331 3.4 %
Total - 12 months75 $25,252,365 157,899 5.8 $2,151,923 $13.63 $23.19 $24.81 $(255,338)(6.5)%$77,097 2.1 %
Comparable Renewal Leases:
1st Quarter 202146 $10,573,855 103,931 4.7 $199,124 $1.92 $21.17 $21.29 $(12,876)(0.6)%$198,173 9.6 %
4th Quarter 202053 12,226,770 267,441 3.9 96,924 0.36 12.02 11.65 99,866 3.2 %297,781 10.1 %
3rd Quarter 202045 9,621,713 171,406 3.5 92,269 0.54 14.76 14.28 81,243 3.4 %319,161 13.9 %
2nd Quarter 202043 9,755,856 136,937 3.9 190,932 1.39 17.91 17.21 95,544 4.1 %296,562 13.5 %
Total - 12 months187 $42,178,194 679,715 3.9 $579,249 $0.85 $15.30 $14.91 $263,777 2.6 %$1,111,677 11.6 %
26



Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY
(continued)
TypeNumber of Leases SignedLease Value SignedGLA Signed
Weighted Average Lease Term (2)
TI and Incentives (3)
TI and Incentives per Sq. Ft.
Contractual Rent Per Sq. Ft. (4)
Total:
New & Renewal
1st Quarter 202194 $30,824,156 225,225 5.7 $2,034,341 $9.03 $21.44 
4th Quarter 202084 19,013,353 322,875 4.0 502,216 1.56 13.69 
3rd Quarter 202078 19,540,109 257,370 4.0 1,002,715 3.90 16.85 
2nd Quarter 202064 14,993,431 180,245 4.4 528,868 2.93 18.49 
Total - 12 months320 $84,371,049 985,715 4.4 $4,068,140 $4.13 $17.17 
New
1st Quarter 202146 $19,895,385 116,993 6.7 $1,832,500 $15.66 $21.62 
4th Quarter 202028 6,477,724 49,664 4.9 401,475 8.08 22.27 
3rd Quarter 202032 9,861,214 85,196 4.8 906,788 10.64 20.98 
2nd Quarter 202021 5,237,575 43,308 5.4 337,936 7.80 20.33 
Total - 12 months127 $41,471,898 295,161 5.7 $3,478,699 $11.79 $21.36 
Renewal
1st Quarter 202148 $10,928,771 108,232 4.7 $201,841 $1.86 $21.24 
4th Quarter 202056 12,535,629 273,211 3.9 100,741 0.37 12.13 
3rd Quarter 202046 9,678,895 172,174 3.5 95,927 0.56 14.81 
2nd Quarter 202043 9,755,856 136,937 3.9 190,932 1.39 17.91 
Total - 12 months193 $42,899,151 690,554 3.9 $589,441 $0.85 $15.37 

(1)    Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage.
(2)    Weighted average lease term is determined on the basis of square footage.
(3)    Estimated amount per signed lease. Actual cost of construction may vary.
(4)    Contractual rent represents contractual minimum rent under the new lease for the first month, excluding concessions.
(5)    Prior contractual rent represents contractual minimum rent under the prior lease for the final month.

27



Whitestone REIT and Subsidiaries
LEASE EXPIRATIONS(1)
    
Annualized Base Rent(2)
  Gross Leasable Areaas of March 31, 2021
YearNumber of
Leases
Square FeetPercent
of Gross Leasable Area
Amount
(in thousands)
Percent of
Total
Per Square Foot
2021381 540,452 10.9 %$9,999 11.7 %$18.50 
2022225 662,443 13.4 %12,416 14.5 %18.74 
2023194 595,659 12.0 %11,800 13.8 %19.81 
2024192 707,418 14.3 %14,535 16.9 %20.55 
2025182 722,293 14.6 %12,979 15.1 %17.97 
202682 370,967 7.5 %6,933 8.1 %18.69 
202740 171,289 3.5 %3,828 4.4 %22.35 
202828 151,175 3.0 %2,841 3.3 %18.79 
202919 160,086 3.2 %2,884 3.4 %18.02 
203023 68,143 1.4 %2,122 2.5 %31.14 
Total1,366 4,149,925 83.8 %$80,337 93.7 %$19.36 

(1)    Lease expirations table reflects rents in place as of March 31, 2021, and does not include option periods.

(2)    Annualized Base Rent represents the monthly base rent as of March 31, 2021 for each tenant multiplied by 12.

28

Whitestone REIT and Subsidiaries
Property Details
As of March 31, 2021
 
 
 
Community Name
 
 
Location
 
Year Built/
Renovated
Gross Leasable
Square Feet
Percent
Occupied at
03/31/2021
Annualized Base
Rental Revenue 
(in thousands) (1)
Average
Base Rental
Revenue Per
Sq. Ft. (2)
Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3)
Whitestone Properties:     
Ahwatukee PlazaPhoenix197972,650 82 %$759 $12.74 $12.57 
Anthem MarketplacePhoenix2000113,293 88 %1,348 13.52 14.02 
Anthem Marketplace Phase IIPhoenix20196,853 100 %235 34.23 33.94 
Bissonnet/BeltwayHouston197829,205 88 %369 14.38 14.53 
BLVD PlaceHouston2014216,944 97 %9,136 43.41 43.18 
The CitadelPhoenix201328,547 92 %449 17.10 17.22 
City View VillageSan Antonio200517,870 100 %553 30.92 30.31 
Davenport VillageAustin1999128,934 92 %2,993 25.23 25.45 
Desert CanyonPhoenix200062,533 81 %708 13.98 13.52 
Eldorado PlazaDallas2004219,287 89 %2,823 14.47 15.45 
Fountain HillsPhoenix2009111,289 87 %1,445 14.93 16.17 
Fountain SquarePhoenix1986118,209 89 %1,843 17.51 17.11 
Fulton Ranch Towne CenterPhoenix2005120,575 94 %1,923 16.96 17.56 
Gilbert Tuscany VillagePhoenix200949,415 100 %992 20.08 19.98 
Gilbert Tuscany Village Hard CornerPhoenix200914,603 100 %124 8.50 8.91 
HeritageDallas200670,431 100 %1,604 22.78 23.84 
HQ VillageDallas200989,134 84 %2,276 30.40 31.35 
Keller PlaceDallas200193,541 92 %893 10.38 10.82 
Kempwood PlazaHouston197491,302 92 %1,191 14.18 14.11 
La MiradaPhoenix1997147,209 90 %3,162 23.87 23.80 
Lion SquareHouston2014117,592 92 %1,668 15.41 14.45 
The MarketPlace at CentralPhoenix2012111,130 98 %1,070 9.82 9.71 
Market Street at DC RanchPhoenix2003244,888 96 %5,054 21.50 22.30 
Mercado at Scottsdale RanchPhoenix1987118,730 84 %1,649 16.54 16.25 
Paradise PlazaPhoenix1983125,898 93 %1,592 13.60 12.91 
Parkside Village NorthAustin200527,045 96 %836 32.20 32.54 
Parkside Village SouthAustin201290,101 100 %2,141 23.76 23.69 
Pima NortePhoenix200735,110 63 %389 17.57 18.92 
Pinnacle of ScottsdalePhoenix1991113,108 96 %2,292