EX-99.2 3 ex_417893.htm EXHIBIT 99.2 ex_417893.htm

Exhibit 99.2

 

supplementalcoverfront2022-0.jpg

 

TABLE OF CONTENTS

 
   
 

Page

   

Corporate Profile

1

Third Quarter 2022 Earnings Release

2

Financial Results

7

Consolidated Balance Sheets

7

Consolidated Statements of Operations and Comprehensive Income

9

Consolidated Statements of Cash Flows

12

Reconciliation of Non-GAAP Measures

14

Same Store Property Analysis

17

Other Financial Information

19

Market Capitalization and Selected Ratios

20

Summary of Outstanding Debt and Debt Maturities

22

Summary of Occupancy and Top Tenants

23

Tenant Type Summary

26

Summary of Leasing Activity

27

Lease Expirations

30

Property Details

31

 

 

CORPORATE PROFILE

                 

NYSE: WSR

Common Shares

 

60 Community Centers

5.2 million sq. ft. of gross

leasable area

1,555 tenants

 

6 Top Growth Markets

Austin

Chicago

Dallas-Fort Worth

Houston

Phoenix

San Antonio

 

Fiscal Year End

12/31

 

Common Shares &

Units Outstanding*:

Common Shares: 49.4 million

Operating Partnership Units:

0.8 million

 

 

Whitestone REIT (NYSE: WSR) 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 high-household-income markets in the Sunbelt.  Whitestone creates 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 has consistently paid a monthly dividend for more than 15 years.  The Company’s balanced and well-managed capital structure provides stability and flexibility to support it through a multitude of economic cycles. 

 

We invest in properties that are or can become Community Centered Properties® from which our tenants deliver needed services to the surrounding population. We focus on properties with smaller rental spaces that present opportunities for attractive returns.

 

Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide services to their respective surrounding communities. Operations include an internal management structure providing cost-effective 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 management, marketing, construction, and maintenance departments with culturally diverse and multi-lingual associates who understand the particular needs of our tenants and neighborhoods.

 

We have a diverse tenant base concentrated on service offerings such as specialty retail, grocery, restaurants, medical, educational and financial services, and entertainment. These tenants tend to occupy smaller spaces (less than 10,000 square feet) and, as of September 30, 2022, provided a 86% premium rental rate compared to our larger space tenants. The largest of our 1,555 tenants at our wholly owned properties comprised only 2.5% of our revenues for the three months ended September 30, 2022.

Distribution (per share / unit)*:

               

Quarter: $ 0.12

 

Investor Relations:

       

Annualized: $ 0.48

 

Whitestone REIT

         

ICR LLC.

Dividend Yield: 5.10%**

 

David Mordy

         

Brad Cohen

   

Director, Investor Relations

     

203.682.8211

   

2600 South Gessner, Suite 500, Houston, Texas 77063

       

Board of Trustees:

 

713.435.2219 email: ir@whitestonereit.com

   

David F. Taylor

 

website: www.whitestonereit.com

   

Nandita V. Berry

       
Amy S. Feng  

Analyst Coverage:

           
David K. Holeman  

B. Riley FBR

 

Colliers

 

EF Hutton

  JMP Securities
Jeffrey A. Jones  

Craig Kucera

 

David Toti

 

Gaurav Mehta, CFA

  Mitchell Germain
Paul T. Lambert  

540.277.3366

 

917.903.9407

 

212.970.5261

  212.906.3537
   

ckucera@brileyfbr.com

 

david.toti@colliers.com

 

gmehta@efhuttongroup.com

  mgermain@jmpsecurities.com
                 
    Maxim Group   Truist Securities        
    Michael Diana   Anthony Hau        

* As of October 31, 2022

  212.895.3641   212.303.4176        

** Based on common share price

  mdiana@maximgrp.com   anthony.hau@truist.com        

of $9.41 as of close of market on

               

October 31, 2022.

               
   

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.

 

 

 

WHITESTONE REIT

REPORTS THIRD QUARTER 2022 RESULTS

 

Houston, Texas, November 1, 2022 - Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the third quarter of 2022. Whitestone creates 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, high-household-income markets in the Sunbelt.

 

“Driven by strong demand for space across our portfolio, we are pleased to deliver great results for the third quarter.  Our occupancy has reached an all-time high of 92.5%, with a 320 basis point increase in our small space occupancy and an 160 basis point increase in our large space occupancy since a year ago.  We are narrowing our 2022 guidance to the upper portion of the previous range and look forward to delivering full year FFO per share growth of over 17%.  As we close out the year and head to 2023, we expect to build upon our 2022 momentum and remain focused on maximizing shareholder value through disciplined organic growth, prudent capital allocation, balance sheet strengthening and judicious expense management.”

 

–    Dave Holeman, Chief Executive Officer

 

Third Quarter 2022 Operating and Financial Results

All per share amounts are on a diluted per common share and operating partnership (OP) unit basis unless stated otherwise.

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

 

 

Revenues of $35.4 million versus $32.4 million for the third quarter of 2021.

 

Net Income attributable to common shareholders of $3.9 million, or $0.08 per diluted share, versus $2.9 million, or $0.06 per diluted share for the third quarter of 2021.

 

Funds from Operations ("FFO") per diluted share of $0.24 versus $0.22 for the third quarter of 2021.

 

EBITDAre of $19.4 million versus $17.2 million for the third quarter of 2021.

 

Same-Store Net Operating Income ("NOI") grew 4.5% to $21.6 million versus $20.7 million for the third quarter of 2021.

 

Net Effective Annual Base Rental Revenue per leased square foot was up 6.5% to $21.73, compared to the prior year quarter.

 

Operating Results

For the three month periods ending September 30, 2022 and 2021 the Company’s operating highlights were as follows:

   

Third Quarter 2022

Third Quarter 2021

Occupancy:

     

Wholly Owned Properties – All

  92.5% 89.9%

>10,000 Sq Ft Occupancy

  96.5% 94.9%

≤ 10,000 Sq Ft Occupancy

  90.1% 86.9%

Same Store Property Net Operating Income Change (1)

  4.5% 6.8%

Rental Rate Growth - Total (GAAP Basis):

  19.2% 13.1%

New Leases

  16.5% 5.4%

Renewal Leases

  20.0% 14.1%

Leasing Transactions:

     

Number of New Leases

  35 38

New Leases - Lease Term Revenue (millions)

  $16.7 $12.7

Number of Renewal Leases

  51 65

Renewal Leases - Lease Term Revenue (millions)

  $12.3 $20.3

 

 

Balance Sheet and Debt Metrics

 

 

As of September 30, 2022, Whitestone had total debt of $637.1 million, along with capacity and availability of $135.0 million and $126.4 million, respectively, under its $250 million revolving credit facility.

 

As of September 30, 2022, the Company has undepreciated real estate assets of $1.2 billion.

 

Dividend

 

On July 27, 2022, the Company declared a quarterly cash distribution of $0.12 per common share and OP unit for the fourth quarter of 2022, to be paid in three equal installments of $0.04 in October, November and December of 2022. The fourth quarter dividend represents an 11.6% increase from the fourth quarter of 2021.

 

2022 Full Year Guidance

 

The Company narrows its previously released guidance for 2022 and estimates that U.S. generally accepted accounting principles (“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.

 

   

Initial 2022 Guidance

Updated 2022 Guidance

   

(unaudited, amounts in thousands except per share and percentages)

Net income attributable to Whitestone REIT

 

$17,500 - $19,700

$17,600 - $18,900

FFO (1)

 

$50,000 - $52,200

$51,000 - $52,300

       

Net income attributable to Whitestone REIT per share

 

$0.35 - $0.39

$0.35 - $0.38

FFO per diluted per share and OP Unit (1)

 

$0.98 - $1.02

$1.00 - $1.02

       

Key Drivers:

     

Same store net operating income growth (2)

 

3.0% – 5.0%

5.0% – 7.0%

Bad debt as a percentage of revenue

 

1.0% – 2.0%

0.75% – 1.25%

General and administrative expense

 

$19,200 - $19,700

$17,600 - $18,800

Ending occupancy

 

92% - 93%

92% - 93%

Net Debt to EBITDAre Ratio

 

7.8X - 8.1X

7.8X - 8.1X

 

(1) 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 Companys ongoing operations. Such items include, but are not limited to, net gain or loss on sale or disposal of assets, gain on sale of property from discontinued operations and pro rata net gain or loss on sale or disposal of properties or assets of real estate partnership. These items are uncertain, depend on various factors and could have a material impact on our GAAP results for the guidance period.

 

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

 

Portfolio Statistics

 

As of September 30, 2022, Whitestone wholly owned 60 Community-Centered Properties™ with 5.2 million square feet of gross leasable area ("GLA"). Five of the 60 Community-Centered Properties™ are land parcels held for future development. The portfolio is comprised of 32 properties in Texas, 27 in Arizona and 1 in Illinois. Whitestone’s Community-Centered PropertiesTM are located in the MSA's of Austin (5), Chicago (1), Dallas-Fort Worth (9), Houston (15), Phoenix (27), and San Antonio (3). The Company’s properties in these markets are generally in high-traffic locations, surrounded by high-household-income communities. The Company also owns an 81.4% equity interest in eight properties containing 0.9 million square feet of GLA through its investment in Pillarstone OP.

 

 

At the end of the third quarter, the Company’s diversified tenant base was comprised of 1,555 tenants, with the largest tenant accounting for only 2.5% of annualized base rental revenues. Lease terms range from less than one year for smaller tenants to more than 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.

 

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, November 2, 2022, at 8:00 A.M Eastern Time / 7:00 A.M. Central Time. The call will be led by Dave Holeman, Chief Executive Officer. Conference call access information is as follows:

 

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.

       

Dial-in number for domestic participants: 1-877-407-0784
Dial-in number for international participants: 1-201-689-8560

 

The conference call will be recorded, and a telephone replay will be available through Wednesday, November 16, 2022. Replay access information is as follows:

 

Replay number for domestic participants: 1-844-512-2921
Replay number for international participants: 1-412-317-6671
Passcode (for all participants): 13727920

 

 

Supplemental Financial Information

 

The third quarter earnings release and supplemental data package will be located in the “News and Events” and “Financial Reporting” tabs of the Investor Relations section of the Company’s website at www.whitestonereit.com. The earnings release and supplemental data package will also be available by mail upon request. To receive a copy, please call Investor Relations at (713) 435-2219.

 

About Whitestone REIT

 

Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio.

 

Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy. For additional information, please visit www.whitestonereit.com.

 

 

Forward-Looking Statements

 

This Report contains forward-looking statements within the meaning of the federal securities laws, including discussion and analysis of our financial condition, pending acquisitions and the impact of such acquisitions on our financial condition and results of operations, anticipated capital expenditures required to complete projects, amounts of anticipated cash distributions to our shareholders in the future and other matters. These forward-looking statements are not historical facts but are the intent, belief or current expectations of our management based on its knowledge and understanding of our business and industry. Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “potential,” “predicts,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” or the negative of such terms and variations of these words and similar expressions, although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

 

Factors that could cause actual results to differ materially from any forward-looking statements made in this Report include: 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; uncertainties related to the national economy, the real estate industry in general and in our specific markets; legislative or regulatory changes, including changes to laws governing REITs; adverse economic or real estate developments or conditions in Texas or Arizona, Houston and Phoenix in particular, including the potential impact of COVID-19 on our tenants’ ability to pay their rent, which could result in bad debt allowances or straight-line rent reserve adjustments; inflation and increases in interest rates, operating costs or general and administrative expenses; availability and terms of capital and financing, both to fund our operations and to refinance our indebtedness as it matures; decreases in rental rates or increases in vacancy rates; litigation risks; lease-up risks, including leasing risks arising from exclusivity and consent provisions in leases with significant tenants; our inability to renew tenant leases or obtain new tenant leases upon the expiration of existing leases; our inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws; geopolitical conflicts, such as the ongoing conflict between Russia and Ukraine; the need to fund tenant improvements or other capital expenditures out of operating cash flow; and the risk that we are unable to raise capital for working capital, acquisitions or other uses on attractive terms or at all 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.

 

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, FFO, NOI and net debt. 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 represents a supplemental non-GAAP performance measure that provides 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 be considered as 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 does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.

 

 

FFO: Funds From Operations: The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as 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. We calculate FFO in a manner consistent with the NAREIT definition and also include adjustments for our unconsolidated real estate partnership.

 

Normalized Funds from Operations (“Normalized FFO”) is a non-GAAP measure. We define Normalized FFO as FFO excluding extinguishment of debt costs.

 

Management uses FFO and Normalized FFO as a supplemental measure to conduct and evaluate our business because there are certain limitations associated with using GAAP net income (loss) alone as the primary measure of our operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Because real estate values instead have historically risen or fallen with market conditions, management believes that the presentation of operating results for real estate companies that use historical cost accounting is insufficient by itself. In addition, securities analysts, investors and other interested parties use FFO and Normalized FFO as the primary metric for comparing the relative performance of equity REITs. FFO and Normalized FFO should not be considered as an alternative to net income or other measurements under GAAP, as an indicator of our operating performance or to cash flows from operating, investing or financing activities as a measure of liquidity. FFO and Normalized FFO does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness. Although our calculation of FFO is consistent with that of NAREIT, there can be no assurance that FFO and Normalized FFO presented by us is comparable to similarly titled measures of other REITs.

 

NOI: Net Operating Income: Management believes that NOI is a useful measure of our property operating performance. We define NOI as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Other REITs may use different methodologies for calculating NOI and, accordingly, our NOI may not be comparable to other REITs. Because NOI excludes general and administrative expenses, depreciation and amortization, equity or deficit in earnings of real estate partnership, interest expense, interest, dividend and other investment income, provision for income taxes, gain on sale of property from discontinued operations, management fee (net of related expenses) and gain or loss on sale or disposition of assets, and includes NOI of real estate partnership (pro rata) and net income attributable to noncontrolling interest, 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. We use NOI to evaluate our operating performance since NOI allows us to evaluate the impact that factors such as occupancy levels, lease structure, lease rates and tenant base have on our results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about our 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 our overall financial performance since it does not reflect the level of capital expenditure and leasing costs necessary to maintain the operating performance of our properties, including general and administrative expenses, depreciation and amortization, equity or deficit in earnings of real estate partnership, interest expense, interest, dividend and other investment income, provision for income taxes, gain on sale of property from discontinued operations, management fee (net of related expenses) and gain or loss on sale or disposition of assets.

 

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.

 

Net debt: We present net debt, which we define as total debt net of insurance financing less cash plus our proportional share of net debt of real estate partnership, and net debt to pro forma EBITDAre, which we define as net debt divided by EBITDAre because we believe they are helpful as supplemental measures in assessing our ability to service our financing obligations and in evaluating balance sheet leverage against that of other REITs. However, net debt and net debt to pro forma EBITDAre should not be viewed as a stand-alone measure of our overall liquidity and leverage. In addition, our REITs may use different methodologies for calculating net debt and net debt to pro forma EBITDAre, and accordingly our net debt and net debt to pro forma EBITDAre may not be comparable to that of other REITs.

 

 

 

Investor and Media Relations:

David Mordy

Director, Investor Relations

Whitestone REIT

(713) 435-2219

ir@whitestonereit.com

 

 

Whitestone REIT and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

   

September 30, 2022

   

December 31, 2021

 
                 

ASSETS

 

Real estate assets, at cost

               

Property

  $ 1,206,605     $ 1,196,919  

Accumulated depreciation

    (212,084 )     (190,333 )

Total real estate assets

    994,521       1,006,586  

Investment in real estate partnership

    34,891       34,588  

Cash and cash equivalents

    9,504       15,721  

Restricted cash

    63       193  

Escrows and acquisition deposits

    12,329       11,323  

Accrued rents and accounts receivable, net of allowance for doubtful accounts (1)

    25,183       22,395  

Receivable due from related party

    1,333       847  

Unamortized lease commissions, legal fees and loan costs

    12,131       8,442  

Prepaid expenses and other assets(2)

    9,978       1,995  

Total assets

  $ 1,099,933     $ 1,102,090  
                 

LIABILITIES AND EQUITY

 

Liabilities:

               

Notes payable

  $ 637,138     $ 642,842  

Accounts payable and accrued expenses(3)

    35,797       45,777  

Payable due to related party

    1,560       997  

Tenants' security deposits

    8,443       8,070  

Dividends and distributions payable

    6,004       5,366  

Total liabilities

    688,942       703,052  

Commitments and contingencies:

           

Equity:

               

Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of September 30, 2022 and December 31, 2021

           

Common shares, $0.001 par value per share; 400,000,000 shares authorized; 49,382,809 and 49,144,153 issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

    49       48  

Additional paid-in capital

    623,838       623,462  

Accumulated deficit

    (226,374 )     (223,973 )

Accumulated other comprehensive income (loss)

    7,646       (6,754 )

Total Whitestone REIT shareholders' equity

    405,159       392,783  

Noncontrolling interest in subsidiary

    5,832       6,255  

Total equity

    410,991       399,038  

Total liabilities and equity

  $ 1,099,933     $ 1,102,090  

 

 

Whitestone REIT and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

   

September 30, 2022

   

December 31, 2021

 

(1) Accrued rents and accounts receivable, net of allowance for doubtful accounts

               

Tenant receivables

  $ 18,867     $ 18,410  

Accrued rents and other recoveries

    21,341       18,681  

Allowance for doubtful accounts

    (15,627 )     (14,896 )

Other receivables

    602       200  

Total accrued rents and accounts receivable, net of allowance for doubtful accounts

  $ 25,183     $ 22,395  
                 

(2) Operating lease right of use assets (net)

  $ 145     $ 222  

(3) Operating lease liabilities

  $ 150     $ 231  

 

 

Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in thousands)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Revenues

                               

Rental(1)

  $ 35,029     $ 32,069     $ 103,500     $ 90,916  

Management, transaction, and other fees

    354       375       1,003       1,191  

Total revenues

    35,383       32,444       104,503       92,107  
                                 

Operating expenses

                               

Depreciation and amortization

    7,889       7,340       23,661       21,458  

Operating and maintenance

    7,317       5,789       19,253       16,072  

Real estate taxes

    4,513       4,589       13,867       12,787  

General and administrative

    4,832       5,672       13,063       16,036  

Total operating expenses

    24,551       23,390       69,844       66,353  
                                 

Other expenses (income)

                               

Interest expense

    6,816       6,142       19,111       18,417  

(Gain) loss on sale or disposal of assets, net

    7       48       12       (177 )

Interest, dividend and other investment income

    (13 )     (31 )     (43 )     (103 )

Total other expenses

    6,810       6,159       19,080       18,137  
                                 

Income before equity investment in real estate partnership and income tax

    4,022       2,895       15,579       7,617  
                                 

Equity (deficit) in earnings of real estate partnership

    65       151       304       429  

Provision for income tax

    (112 )     (100 )     (313 )     (274 )

Income from continuing operations

    3,975       2,946       15,570       7,772  
                                 

Gain on sale of property from discontinued operations

                      1,833  

Income from discontinued operations

                      1,833  
                                 

Net Income

    3,975       2,946       15,570       9,605  
                                 

Less: Net income attributable to noncontrolling interests

    60       47       239       165  
                                 

Net income attributable to Whitestone REIT

  $ 3,915     $ 2,899     $ 15,331     $ 9,440  

 

 

Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in thousands, except per share data)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Basic Earnings Per Share:

                               

Income from continuing operations attributable to Whitestone REIT, excluding amounts attributable to unvested restricted shares

  $ 0.08     $ 0.06     $ 0.31     $ 0.17  

Income from discontinued operations attributable to Whitestone REIT

                      0.04  

Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares

  $ 0.08     $ 0.06     $ 0.31     $ 0.21  

Diluted Earnings Per Share:

                               

Income from continuing operations attributable to Whitestone REIT, excluding amounts attributable to unvested restricted shares

  $ 0.08     $ 0.06     $ 0.31     $ 0.17  

Income from discontinued operations attributable to Whitestone REIT

                      0.04  

Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares

  $ 0.08     $ 0.06     $ 0.31     $ 0.21  
                                 

Weighted average number of common shares outstanding:

                               

Basic

    49,274       46,883       49,211       44,268  

Diluted

    50,129       47,825       49,916       45,108  
                                 

Consolidated Statements of Comprehensive Income

                               
                                 

Net income

  $ 3,975     $ 2,946     $ 15,570     $ 9,605  
                                 

Other comprehensive income

                               
                                 

Unrealized gain on cash flow hedging activities

    5,962       1,273       14,623       4,783  
                                 

Comprehensive income

    9,937       4,219       30,193       14,388  
                                 

Less: Net income attributable to noncontrolling interests

    60       47       239       165  

Less: Comprehensive income attributable to noncontrolling interests

    90       20       223       82  
                                 

Comprehensive income attributable to Whitestone REIT

  $ 9,787     $ 4,152     $ 29,731     $ 14,141  

 

 

Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in thousands)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2021

   

2022

   

2021

 

(1) Rental

                               

Rental revenues

  $ 25,244     $ 23,177     $ 75,023     $ 67,041  

Recoveries

    10,152       8,720       29,092       24,375  

Bad debt

    (367 )     172       (615 )     (500 )

Total rental

  $ 35,029     $ 32,069     $ 103,500     $ 90,916  

 

 

Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Nine Months Ended September 30,

 
 

2022

 

2021

 

Cash flows from operating activities:

           

Net income from continuing operations

$ 15,570   $ 7,772  

Net income from discontinued operations

      1,833  

Net income

  15,570     9,605  

Adjustments to reconcile net income to net cash provided by operating activities:

           

Depreciation and amortization

  23,661     21,458  

Amortization of deferred loan costs

  824     822  

(Gain) loss on sale or disposal of assets, net

  12     (177 )

Bad debt

  615     500  

Share-based compensation

  239     4,066  

Equity in earnings of real estate partnership

  (303 )   (429 )

Changes in operating assets and liabilities:

           

Escrows and acquisition deposits

  (1,006 )   (1,163 )

Accrued rents and accounts receivable

  (3,403 )   518  

Receivable due from related party

  (486 )   (316 )

Unamortized lease commissions, legal fees and loan costs

  (1,575 )   (2,531 )

Prepaid expenses and other assets

  (6,266 )   1,548  

Accounts payable and accrued expenses

  4,641     (1,572 )

Payable due to related party

  563     405  

Tenants' security deposits

  373     802  

Net cash provided by operating activities

  33,459     31,703  

Cash flows from investing activities:

           

Acquisitions of real estate

      (53,364 )

Additions to real estate

  (10,118 )   (6,058 )

Net cash used in investing activities

  (10,118 )   (59,422 )

Net cash provided by investing activities of discontinued operations

      1,833  

Cash flows from financing activities:

           

Distributions paid to common shareholders

  (17,049 )   (14,063 )

Distributions paid to OP unit holders

  (263 )   (248 )

Proceeds from issuance of common shares, net of offering costs

      53,335  

Payments of exchange offer costs

      (49 )

Net payments of credit facility

  (5,000 )   (25,000 )

Repayments of notes payable

  (2,705 )   (2,403 )

Payment of loan origination costs

  (4,144 )    

Repurchase of common shares

  (527 )   (678 )

Net cash provided by (used in) financing activities

  (29,688 )   10,894  

Net decrease in cash, cash equivalents and restricted cash

  (6,347 )   (14,992 )

Cash, cash equivalents and restricted cash at beginning of period

  15,914     25,956  

Cash, cash equivalents and restricted cash at end of period (1)

$ 9,567   $ 10,964  

 

(1)

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

 

 

Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

Supplemental Disclosures

(in thousands)

 

   

Nine Months Ended September 30,

 
   

2022

   

2021

 

Supplemental disclosure of cash flow information:

               

Cash paid for interest

  $ 18,980     $ 17,732  

Cash paid for taxes

  $ 366     $ 364  

Non cash investing and financing activities:

               

Disposal of fully depreciated real estate

  $ 80     $ 284  

Financed insurance premiums

  $ 1,846     $ 1,712  

Value of shares issued under dividend reinvestment plan

  $ 49     $ 45  

Value of common shares exchanged for OP units

  $ 616     $  

Change in fair value of cash flow hedge

  $ 14,623     $ 4,783  

 

   

September 30, 2022

 
   

2022

   

2021

 

Cash, cash equivalents and restricted cash

               

Cash and cash equivalents

  $ 9,504     $ 10,858  

Restricted cash

    63       106  

Total cash, cash equivalents and restricted cash

  $ 9,567     $ 10,964  

 

 

Whitestone REIT and Subsidiaries

RECONCILIATION OF NON-GAAP MEASURES

(in thousands, except per share and per unit data)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2021

   

2022

   

2021

 

FFO (NAREIT) AND NORMALIZED FFO

                               

Net income attributable to Whitestone REIT

  $ 3,915     $ 2,899     $ 15,331     $ 9,440  

Adjustments to reconcile to FFO:(1)

                               

Depreciation and amortization of real estate assets

    7,846       7,305       23,534       21,353  

Depreciation and amortization of real estate assets of real estate partnership (pro rata)(2)

    403       440       1,209       1,254  

(Gain) loss on sale or disposal of assets, net

    7       48       12       (177 )

Gain on sale of property from discontinued operations

                      (1,833 )

(Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata)

          1             (19 )

Net income attributable to noncontrolling interests

    60       47       239       165  

FFO (NAREIT)

    12,231       10,740       40,325       30,183  

Adjustments to reconcile to Normalized FFO:

                               

Extinguishment of debt costs

    147             147        

Normalized FFO

  $ 12,378     $ 10,740     $ 40,472     $ 30,183  
                                 

FFO PER SHARE AND OP UNIT CALCULATION

                               

Numerator:

                               

FFO

  $ 12,231     $ 10,740     $ 40,325     $ 30,183  

Normalized FFO

  $ 12,378     $ 10,740     $ 40,472     $ 30,183  

Denominator:

                               

Weighted average number of total common shares - basic

    49,274       46,883       49,211       44,268  

Weighted average number of total noncontrolling OP units - basic

    752       773       753       773  

Weighted average number of total common shares and noncontrolling OP units - basic

    50,026       47,656       49,964       45,041  
                                 

Effect of dilutive securities:

                               

Unvested restricted shares

    855       942       705       840  

Weighted average number of total common shares and noncontrolling OP units - diluted

    50,881       48,598       50,669       45,881  
                                 

FFO per common share and OP unit - basic

  $ 0.24     $ 0.23     $ 0.81     $ 0.67  

FFO per common share and OP unit - diluted

  $ 0.24     $ 0.22     $ 0.80     $ 0.66  
                                 

Normalized FFO per common share and OP unit - basic

  $ 0.25     $ 0.23     $ 0.81     $ 0.67  

Normalized FFO per common share and OP unit - diluted

  $ 0.24     $ 0.22     $ 0.80     $ 0.66  

 

(1)

Includes pro-rata share attributable to real estate partnership.

 

(2)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated depreciation and amortization of real estate assets based on the information available to us at the time of this Report.

 

 

 

Whitestone REIT and Subsidiaries

RECONCILIATION OF NON-GAAP MEASURES

(continued)

(in thousands)

 

    Three Months Ended September 30,     Nine Months Ended September 30,  
   

2022

   

2021

   

2022

   

2021

 

PROPERTY NET OPERATING INCOME

                               

Net income attributable to Whitestone REIT

  $ 3,915     $ 2,899     $ 15,331     $ 9,440  

General and administrative expenses

    4,832       5,672       13,063       16,036  

Depreciation and amortization

    7,889       7,340       23,661       21,458  

Equity in earnings of real estate partnership(1)

    (65 )     (151 )     (304 )     (429 )

Interest expense

    6,816       6,142       19,111       18,417  

Interest, dividend and other investment income

    (13 )     (31 )     (43 )     (103 )

Provision for income taxes

    112       100       313       274  

Gain on sale of property from discontinued operations

    -       -       -       (1,833 )

Management fee, net of related expenses

    31       83       112       246  

(Gain) loss on sale or disposal of assets, net

    7       48       12       (177 )

NOI of real estate partnership (pro rata)(1) 

    723       1,003       2,429       2,846  

Net income attributable to noncontrolling interests

    60       47       239       165  

NOI

  $ 24,307     $ 23,152     $ 73,924     $ 66,340  

Non-Same Store NOI (2)

    (1,309 )     (730 )     (4,102 )     (730 )

NOI of real estate partnership (pro rata)(1)

    (723 )     (1,003 )     (2,429 )     (2,846 )

NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)

    22,275       21,419       67,393       62,764  

Same Store straight-line rent adjustments

    (366 )     (507 )     (845 )     (1,201 )

Same Store amortization of above/below market rents

    (224 )     (177 )     (686 )     (618 )

Same Store lease termination fees

    (96 )     (79 )     (118 )     (306 )

Same Store NOI (3)

  $ 21,589     $ 20,656     $ 65,744     $ 60,639  

 

(1)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated equity in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this Report.

 

(2)

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 September 30, 2022 to the three months ended September 30, 2021, Non-Same Store includes properties acquired between July 1, 2021 and September 30, 2022 and properties sold between July 1, 2021 and September 30, 2022, but not included in discontinued operations. For purposes of comparing the nine months ended September 30, 2022 to the nine months ended September 30, 2021, Non-Same Store includes properties acquired between January 1, 2021 and September 30, 2022 and properties sold between January 1, 2021 and September 30, 2022, but not included in discontinued operations.

 

(3)

We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended September 30, 2022 to the three months ended September 30, 2021, Same Store includes properties owned before July 1, 2021 and not sold before September 30, 2022.  For purposes of comparing the nine months ended September 30, 2022 to the nine months ended September 30, 2021, Same Store includes properties owned before January 1, 2021 and not sold before September 30, 2022.

 

 

Whitestone REIT and Subsidiaries

RECONCILIATION OF NON-GAAP MEASURES

(continued)

(in thousands)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2022

   

2021

   

2022

   

2021

 

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)

                 
                                 

Net income attributable to Whitestone REIT

  $ 3,915     $ 2,899     $ 15,331     $ 9,440  

Depreciation and amortization

    7,889       7,340       23,661       21,458  

Interest expense

    6,816       6,142       19,111       18,417  

Provision for income taxes

    112       100       313       274  

Net income attributable to noncontrolling interests

    60       47       239       165  

Equity in earnings of real estate partnership(1)

    (65 )     (151 )     (304 )     (429 )

EBITDAre adjustments for real estate partnership(1)

    662       807       2,093       2,258  

Gain on sale of property from discontinued operations

    -       -       -       (1,833 )

(Gain) loss on sale or disposal of assets, net

    7       48       12       (177 )

EBITDAre

  $ 19,396     $ 17,232     $ 60,456     $ 49,573  

 

(1)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated equity in earnings and EBITDAre adjustments for real estate partnership based on the information available to us at the time of this Report.

 

 

Whitestone REIT and Subsidiaries

SAME STORE PROPERTY ANALYSIS

(in thousands)

 

   

Three Months Ended September 30,

   

Increase

   

% Increase

 
   

2022

   

2021

   

(Decrease)

   

(Decrease)

 

Same Store (53 properties excluding development land)

                               

Property revenues

                               

Rental

  $ 33,059     $ 31,056     $ 2,003       6 %

Management, transaction and other fees

    278       231       47       20 %

Total property revenues

    33,337       31,287       2,050       7 %
                                 

Property expenses

                               

Property operation and maintenance

    6,951       5,460       1,491       27 %

Real estate taxes

    4,111       4,408       (297 )     (7 )%

Total property expenses

    11,062       9,868       1,194       12 %
                                 

Total property revenues less total property expenses

    22,275       21,419       856       4 %
                                 

Same Store straight-line rent adjustments

    (366 )     (507 )     141       (28 )%

Same Store amortization of above/below market rents

    (224 )     (177 )     (47 )     27 %

Same Store lease termination fees

    (96 )     (79 )     (17 )     22 %
                                 

Same Store NOI (1)

  $ 21,589     $ 20,656     $ 933       5 %

 

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

 

 

Whitestone REIT and Subsidiaries

SAME STORE PROPERTY ANALYSIS

(in thousands)

 

   

Nine Months Ended September 30,

   

Increase

   

% Increase

 
   

2022

   

2021

   

(Decrease)

   

(Decrease)

 

Same Store (53 properties excluding development land)

                               

Property revenues

                               

Rental

  $ 97,626     $ 89,903     $ 7,723       9 %

Management, transaction and other fees

    635       764       (129 )     (17 )%

Total property revenues

    98,261       90,667       7,594       8 %
                                 

Property expenses

                               

Property operation and maintenance

    18,031       15,297       2,734       18 %

Real estate taxes

    12,837       12,606       231       2 %

Total property expenses

    30,868       27,903       2,965       11 %
                                 

Total property revenues less total property expenses

    67,393       62,764       4,629       7 %
                                 

Same Store straight-line rent adjustments

    (845 )     (1,201 )     356       (30 )%

Same Store amortization of above/below market rents

    (686 )     (618 )     (68 )     11 %

Same Store lease termination fees

    (118 )     (306 )     188       (61 )%
                                 

Same Store NOI (1)

  $ 65,744     $ 60,639     $ 5,105       8 %

 

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

 

 

Whitestone REIT and Subsidiaries

OTHER FINANCIAL INFORMATION

(in thousands, except number of properties and employees)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Other Financial Information:

                               
                                 

Tenant improvements (1) (2)

  $ 518     $ 476     $ 3,111     $ 1,444  

Leasing commissions (1) (2)

  $ 837     $ 610     $ 2,106     $ 2,345  

Maintenance capital (1)

  $ 1,506     $ 2,017     $ 3,245     $ 4,096  

Scheduled debt principal payments (1)

  $ 460     $ 441     $ 1,391     $ 1,331  

Straight-line rent income (1)

  $ 354     $ 541     $ 1,473     $ 1,235  

Market rent amortization income from acquired leases (1)

  $ 224     $ 161     $ 687     $ 603  

Non-cash share-based compensation expense (1)

  $ 943     $ 1,563     $ 455     $ 4,275  

Non-real estate depreciation and amortization (1)

  $ 43     $ 35     $ 127     $ 105  

Amortization of loan fees (1)

  $ 282     $ 291     $ 841     $ 839  

Undepreciated value of unencumbered properties

  $ 923,329     $ 883,260     $ 923,329     $ 883,260  

Number of unencumbered properties

    53       52       53       52  

Full time employees

    81       91       81       91  

 

(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.

 

 

Whitestone REIT and Subsidiaries

MARKET CAPITALIZATION AND SELECTED RATIOS

(in thousands, except per share amounts and percentages)

 

   

As of September 30, 2022

 

MARKET CAPITALIZATION:

  Percent of Total Equity     Total Market Capitalization     Percent of Total Market Capitalization  

Equity Capitalization:

                       

Common shares outstanding

    98.6 %     49,383          

Operating partnership units outstanding

    1.4 %     695          

Total

    100.0 %     50,078          
                         

Market price of common shares as of September 30, 2022

          $ 8.46          
                         

Total equity capitalization

          $ 423,660       40 %
                         

Debt Capitalization:

                       

Outstanding debt

          $ 637,755          

Less: Cash and cash equivalents

            (9,504 )        

Total debt capitalization

            628,251       60 %
                         

Total Market Capitalization as of September 30, 2022

          $ 1,051,911       100 %

 

SELECTED RATIOS:

 

   

Three Months Ended

   

Nine Months Ended

 

INTEREST COVERAGE RATIO

 

September 30,

   

September 30,

 
    2022     2021     2022     2021  

EBITDAre/Interest Expense

                               

EBITDAre (1)

  $ 19,396     $ 17,232     $ 60,456     $ 49,573  
                                 

Interest expense

    6,816       6,142       19,111       18,417  

Pro rata share of interest expense from real estate partnership(2)

    159       160       476       484  

Less: amortization of loan fees, including pro rata share from real estate partnership(2)

    (281 )     (280 )     (841 )     (839 )

Interest expense, excluding amortization of loan fees

    6,694       6,022       18,746       18,062  
                                 

Ratio of EBITDAre to interest expense

    2.9       2.9       3.2       2.7  

 

(1)

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

 

(2)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated pro rata share of interest expense and amortization of loan fees based on the information available to us at the time of this Report.

 

 

Whitestone REIT and Subsidiaries

MARKET CAPITALIZATION AND SELECTED RATIOS

(continued)

(in thousands, except per share amounts and percentages)

 

LEVERAGE RATIO

 

As of September 30,

 
   

2022

   

2021

 

Debt/Undepreciated Book Value

               

Outstanding debt, net of insurance financing

  $ 637,406     $ 619,009  

Less: Cash

    (9,504 )     (10,858 )

Add: Proportional share of net debt of real estate partnership(1)

    8,174       8,479  

Total Net Debt

  $ 636,076     $ 616,630  
                 

Undepreciated real estate assets

  $ 1,206,605     $ 1,165,274  

Add: Proportional share of real estate from unconsolidated partnership(1)

    46,016       46,124  

Undepreciated real estate assets

  $ 1,252,621     $ 1,211,398  

Ratio of debt to real estate assets

    51 %     51 %

 

(1)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated proportional share of net debt and real estate based on the information available to us at the time of this Report.

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Debt/EBITDAre Ratio

                               

Outstanding debt, net of insurance financing

  $ 637,406     $ 619,009     $ 637,406     $ 619,009  

Less: Cash

    (9,504 )     (10,858 )     (9,504 )     (10,858 )

Add: Proportional share of net debt of unconsolidated real estate partnership(1)

    8,174       8,479       8,174       8,479  

Total Net Debt

  $ 636,076     $ 616,630     $ 636,076     $ 616,630  
                                 

EBITDAre

  $ 19,396     $ 17,232     $ 60,456     $ 49,573  
                                 

Effect of partial period acquisitions and dispositions

  $     $ 60     $     $ 1,614  
                                 

Pro forma EBITDAre

  $ 19,396     $ 17,292     $ 60,456     $ 51,187  
                                 

Pro forma annualized EBITDAre

  $ 77,584     $ 69,168     $ 80,608     $ 68,249  
                                 

Ratio of debt to pro forma EBITDAre

    8.2       8.9       7.9       9.0  

 

(1)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated proportional share of net debt based on the information available to us at the time of this Report.

 

 

 

Whitestone REIT and Subsidiaries

SUMMARY OF OUTSTANDING DEBT AND DEBT MATURITIES

TOTAL OUTSTANDING DEBT

(in thousands)

 

Description

 

September 30, 2022

   

December 31, 2021

 

Fixed rate notes

               

$100.0 million, 1.73% plus 1.35% to 1.90% Note (1)

  $     $ 100,000  

$165.0 million, 2.24% plus 1.35% to 1.90% Note (1)

          165,000  

$265.0 million, 3.18% plus 1.45% to 2.10% Note, due January 31, 2028 (2)

    265,000        

$80.0 million, 3.72% Note, due June 1, 2027

    80,000       80,000  

$19.0 million 4.15% Note, due December 1, 2024

    18,103       18,358  

$20.2 million 4.28% Note, due June 6, 2023

    17,485       17,808  

$14.0 million 4.34% Note, due September 11, 2024

    12,778       12,978  

$14.3 million 4.34% Note, due September 11, 2024

    13,585       13,773  

$15.1 million 4.99% Note, due January 6, 2024

    13,705       13,907  

$2.6 million 5.46% Note, due October 1, 2023

    2,250       2,289  

$50.0 million, 5.09% Note, due March 22, 2029

    50,000       50,000  

$50.0 million, 5.17% Note, due March 22, 2029

    50,000       50,000  

$1.8 million 3.15% Note, due November 28, 2022

    349        

Floating rate notes

               

Unsecured line of credit, SOFR plus 1.50% to 2.10%, due September 16, 2026

    114,500       119,500  

Total notes payable principal

    637,755       643,613  

Less deferred financing costs, net of accumulated amortization

    (617 )     (771 )

Total notes payable

  $ 637,138     $ 642,842  

 

(1)

Loan was fully paid off on September 16, 2022.

 

(2)

Promissory note that includes an interest rate swap that fixes the SOFR portion of the term loan at an interest rate of 2.16% through October 28, 2022, and 2.76% from October 29, 2022 through January 31, 2024, and 3.32% from February 1, 2024 though January 31, 2028.

 

SCHEDULE OF DEBT MATURITIES AS OF SEPTEMBER 30, 2022

(in thousands)

 

Year

 

Amount Due

 

2022 (remaining)

  $ 1,104  

2023

    27,863  

2024

    63,573  

2025

    17,143  

2026

    131,643  

Thereafter

    396,429  

Total

  $ 637,755  

 

 

Whitestone REIT and Subsidiaries

SUMMARY OF OCCUPANCY AND TOP TENANTS

 

    Gross Leasable Area as of    

Occupancy % as of

 

Community Centered Properties®

  September 30, 2022     September 30, 2022     June 30, 2022     March 31, 2022     December 31, 2021  

Whitestone

    5,205,242       92 %     91 %     91 %     90 %
                                         

Unconsolidated real estate partnership (1)

    926,798       56 %     56 %     58 %     59 %

 

(1)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated gross leasable area based on the information available to us at the time of this Report.

 

Whitestone REIT and Subsidiaries

SUMMARY OF OCCUPANCY AND TOP TENANTS

(continued)

 

Tenant Name

 

Location

  Annualized Rental Revenue (in thousands)     Percentage of Total Annualized Base Rental Revenues (1)  

Initial Lease Date

   

Year Expiring

 
                                 

Safeway Stores Incorporated (2)

 

Austin, Houston and Phoenix

  $ 2,531       2.5 %

11/14/1982, 5/8/1991, 7/1/2000, 4/1/2014, 4/1/2014 and 10/19/16

     

2022, 2024, 2025, 2025, 2026 and 2034

 

Whole Foods Market

 

Houston

    2,247       2.2 %

9/3/2014

      2035  

Frost Bank

 

Houston

    2,027       2.0 %

7/1/2014

      2024  

Newmark Real Estate of Houston LLC

 

Houston

    1,260       1.2 %

10/1/2015

      2026  

Bashas' Inc. (3)

 

Phoenix

    1,010       1.0 %

10/9/2004 and 4/1/2009

     

2024 and 2029

 

Verizon Wireless (4)

 

Houston and Phoenix

    960       1.0 %

8/16/1994, 2/1/2004, 5/10/2004, 1/27/2006 and 5/1/2014

     

2023, 2024, 2024, 2027 and 2038

 

Walgreens & Co. (5)

 

Houston and Phoenix

    946       0.9 %

11/14/1982, 11/2/1987, 8/24/1996 and 11/3/1996

     

2027, 2027, 2049 and 2056

 

Alamo Drafthouse Cinema

 

Austin

    740       0.7 %

2/1/2012

      2031  

Dollar Tree (6)

 

Houston and Phoenix

    647       0.6 %

8/10/1999, 6/29/2001, 11/8/2009, 12/17/2009, and 5/21/2013

     

2023, 2025, 2025, 2026 and 2027

 

Wells Fargo & Company (7)

 

Phoenix

    605       0.6 %

10/24/1996 and 4/16/1999

     

2023 and 2027

 

Kroger Co.

 

Dallas

    483       0.5 %

12/15/2000

      2027  

Regus Corporation

 

Houston

    469       0.5 %

5/23/2014

      2025  

Paul's Ace Hardware

 

Phoenix

    490       0.5 %

3/1/2008

      2033  

Capital Area Multispecialty Providers

 

Austin

    444       0.4 %

12/12/2011

      2026  

Original Ninfas LP

 

Houston

    420       0.4 %

8/29/2018

      2029  
        $ 15,279       15.0 %            

 

(1)

Annualized Base Rental Revenues represents the monthly base rent as of September 30, 2022 for each applicable tenant multiplied by 12.

 

 

(2)

As of September 30, 2022, 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 1.0% 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 $44,000, 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 0.3% 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 0.3% 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 $318,000, which represents approximately 0.3% 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 $425,000, which represents approximately 0.4% of our total annualized base rental revenue.

 

(3)

As of September 30, 2022, 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 0.7% of our total annualized base rental revenue.

 

(4)

As of September 30, 2022, 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 $23,000, 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 $138,000, which represents approximately 0.1% 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 0.7% 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 2027, was $12,000, which represents less than 0.1% of our total annualized base rental revenue.

 

(5)

As of September 30, 2022, 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 2027, 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 September 30, 2022, 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 $175,000, 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 $156,000, which represents approximately 0.2% of our total annualized base rental revenue.

 

(7)

As of September 30, 2022, 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 2027, was $131,000, which represents approximately 0.1% 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 $474,000, which represents approximately 0.5% of our total annualized base rental revenue.

 

 

Whitestone REIT and Subsidiaries

TENANT TYPE SUMMARY

As of September 30, 2022

 

   

% of Leased SF

   

% of ABR

 

Restaurants & Food Service

    18 %     24 %

Financial Services

    6 %     8 %

Grocery

    13 %     8 %

Salons

    7 %     8 %

Medical & Dental

    7 %     8 %

Home Décor And Improvement

    7 %     5 %

General Retail

    8 %     5 %

Non Retail

    4 %     5 %

Education

    4 %     4 %

Fitness

    5 %     4 %

Apparel

    4 %     4 %

Pet Supply & Services

    2 %     3 %

Local Services

    3 %     3 %

Off-Price

    4 %     2 %

Wireless

    1 %     2 %

Pharmacies & Nutritional Supplies

    2 %     2 %

Entertainment

    2 %     2 %

Sporting Goods

    1 %     1 %

Postal Services

    1 %     1 %

Automotive Supply & Services

    1 %     1 %

Total

    100 %     100 %

 

 

Whitestone REIT and Subsidiaries

SUMMARY OF LEASING ACTIVITY

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

RENEWALS

                               

Number of Leases

    51       65       228       170  

Total Square Feet (1)

    125,283       148,574       685,346       438,357  

Average Square Feet

    2,457       2,286       3,006       2,579  

Total Lease Value

  $ 12,278,515     $ 20,310,000     $ 62,805,313     $ 48,776,000  

NEW LEASES

                               

Number of Leases

    35       38       144       119  

Total Square Feet (1)

    93,989       90,143       344,539       282,207  

Average Square Feet

    2,685       2,372       2,393       2,371  

Total Lease Value

  $ 16,708,083     $ 12,735,000     $ 56,438,999     $ 44,943,000  

TOTAL LEASES

                               

Number of Leases

    86       103       372       289  

Total Square Feet (1)

    219,272       238,717       1,029,885       720,564  

Average Square Feet

    2,550       2,318       2,769       2,493  

Total Lease Value

  $ 28,986,598     $ 33,045,000     $ 119,244,312     $ 93,719,000  

 

(1)

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

 

 

Whitestone REIT and Subsidiaries

SUMMARY OF LEASING ACTIVITY

 

Type

 

Number of Leases Signed

   

Lease Value Signed

   

GLA 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 Rent

   

Cash Basis Increase (Decrease) Over Prior Rent

   

Annual Increase (Decrease) in Straight-lined Rent

   

Straight-lined Basis Increase (Decrease) Over Prior Rent

 
                                                                                                 

Comparable: (1)

                                                                                               
                                                                                                 

Comparable Total Leases:

                                                                                               

3rd Quarter 2022

    54     $ 11,342,359       124,407       3.4     $ 385,718     $ 3.10     $ 23.80     $ 21.87     $ 240,427       8.8 %   $ 495,095       19.2 %

2nd Quarter 2022

    63       17,593,088       191,368       4.4       596,616       3.12       20.72       19.03       324,270       8.9 %     596,073       17.4 %

1st Quarter 2022

    66       17,848,053       190,078       4.6       653,527       3.44       19.08       18.57       96,350       2.7 %     345,345       10.1 %

4th Quarter 2021

    84       26,114,148       241,803       4.7       1,135,500       4.70       20.36       20.05       74,996       1.5 %     670,356       14.9 %

Total - 12 months

    267     $ 72,897,648       747,656       4.4     $ 2,771,361     $ 3.71     $ 20.70     $ 19.72     $ 736,043       5.0 %   $ 2,106,869       15.1 %
                                                                                                 

Comparable New Leases:

                                                                                               

3rd Quarter 2022

    13     $ 3,496,947       24,745       5.4     $ 139,204     $ 5.63     $ 25.87     $ 25.09     $ 19,221       3.1 %   $ 95,179       16.5 %

2nd Quarter 2022

    10       2,075,522       17,848       4.4       163,749       9.17       25.55       24.38       21,009       4.8 %     62,963       15.6 %

1st Quarter 2022

    14       4,936,115       26,663       7.5       479,932       18.00       24.72       23.10       43,268       7.0 %     77,077       12.7 %

4th Quarter 2021

    23       5,795,662       41,700       6.1       530,358       12.72       21.61       22.52       (38,073 )     (4.1 )%     97,992       11.2 %

Total - 12 months

    60     $ 16,304,246       110,956       6.0     $ 1,313,243     $ 11.84     $ 23.94     $ 23.53     $ 45,425       1.7 %   $ 333,211       13.6 %
                                                                                                 

Comparable Renewal Leases:

                                                                                               

3rd Quarter 2022

    41     $ 7,845,412       99,662       2.9     $ 246,514     $ 2.47     $ 23.29     $ 21.07     $ 221,206       10.5 %   $ 399,916       20.0 %

2nd Quarter 2022

    53       15,517,566       173,520       4.4       432,867       2.49       20.22       18.48       303,261       9.5 %     533,110       17.6 %

1st Quarter 2022

    52       12,911,938       163,415       4.2       173,595       1.06       18.16       17.84       53,082       1.8 %     268,268       9.6 %

4th Quarter 2021

    61       20,318,486       200,103       4.4       605,142       3.02       20.10       19.54       113,069       2.9 %     572,364       15.7 %

Total - 12 months

    207     $ 56,593,402       636,700       4.1     $ 1,458,118     $ 2.29     $ 20.14     $ 19.05     $ 690,618       5.7 %   $ 1,773,658       15.5 %

 

 

Whitestone REIT and Subsidiaries

SUMMARY OF LEASING ACTIVITY

(continued)

 

Type

 

Number of Leases Signed

   

Lease Value Signed

   

GLA 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

                                                       

3rd Quarter 2022

    86     $ 28,986,598       219,272       6.4     $ 2,147,231     $ 9.79     $ 22.22  

2nd Quarter 2022

    90       29,101,085       268,394       5.1       1,683,308       6.27       20.67  

1st Quarter 2022

    85       22,973,692       216,083       4.6       934,795       4.33       20.33  

4th Quarter 2021

    111       38,182,937       326,136       5.4       2,928,167       8.98       19.80  

Total - 12 months

    372     $ 119,244,312       1,029,885       5.4     $ 7,693,501     $ 7.47     $ 20.65  
                                                         

New

                                                       

3rd Quarter 2022

    35     $ 16,708,083       93,989       9.4     $ 1,605,992     $ 17.09     $ 20.34  

2nd Quarter 2022

    34       12,996,051       90,581       6.6       1,209,828       13.36       21.43  

1st Quarter 2022

    29       9,249,355       43,703       6.3       750,901       17.18       27.75  

4th Quarter 2021

    46       17,485,510       116,266       7.6       2,240,044       19.27       19.45  

Total - 12 months

    144     $ 56,438,999       344,539       7.7     $ 5,806,765     $ 16.85     $ 21.27  
                                                         

Renewal

                                                       

3rd Quarter 2022

    51     $ 12,278,515       125,283       4.0     $ 541,239     $ 4.32     $ 23.63  

2nd Quarter 2022

    56       16,105,034       177,813       4.4       473,480       2.66       20.28  

1st Quarter 2022

    56       13,724,337       172,380       4.1       183,894       1.07       18.45  

4th Quarter 2021

    65       20,697,427       209,870       4.3       688,123       3.28       19.99  

Total - 12 months

    228     $ 62,805,313       685,346       4.2     $ 1,886,736     $ 2.75     $ 20.35  

 

(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.

 

 

Whitestone REIT and Subsidiaries

LEASE EXPIRATIONS(1)

 

                           

Annualized Base Rent(2)

 
           

Gross Leasable Area

   

as of September 30, 2022

 

Year

  Number of Leases    

Square Feet

    Percent of Gross Leasable Area     Amount (in thousands)     Percent of Total     Per Square Foot  

2022

    249       325,969       6.3 %   $ 4,966       4.9 %   $ 15.23  

2023

    281       604,538       11.6 %     12,566       12.5 %     20.79  

2024

    232       790,581       15.2 %     16,949       16.8 %     21.44  

2025

    237       851,765       16.4 %     16,676       16.5 %     19.58  

2026

    158       575,738       11.1 %     12,068       12.0 %     20.96  

2027

    177       571,385       11.0 %     12,365       12.3 %     21.64  

2028

    71       325,708       6.3 %     6,828       6.8 %     20.96  

2029

    41       205,385       3.9 %     4,115       4.1 %     20.03  

2030

    27       81,133       1.6 %     2,664       2.6 %     32.84  

2031

    26       127,698       2.5 %     3,622       3.6 %     28.36  

Total

    1,499       4,459,900       85.7 %   $ 92,818       92.0 %   $ 20.81  

 

(1)

Lease expirations table reflects rents in place as of September 30, 2022, and does not include option periods.

 

(2)

Annualized Base Rent represents the monthly base rent as of September 30, 2022 for each tenant multiplied by 12.

 

 

Whitestone REIT and Subsidiaries

Property Details

As of September 30, 2022

 

       

Year Built/

 

Gross Leasable

   

Percent Occupied at

   

Annualized Base Rental Revenue

   

Average Base Rental Revenue Per

   

Average Net Effective Annual Base Rent Per Leased

 

Community Name

 

Location

 

Renovated

 

Square Feet

   

9/30/2022

   

(in thousands) (1)

   

Sq. Ft. (2)

   

Sq. Ft.(3)

 

Whitestone Properties:

                                               

Ahwatukee Plaza

 

Phoenix

 

1979

    72,650       44 %   $ 528     $ 16.52     $ 17.68  

Anderson Arbor

 

Austin

 

2001

    89,746       94 %     1,875       22.23       24.64  

Anthem Marketplace

 

Phoenix

 

2000

    113,293       85 %     1,479       15.36       15.48  

Anthem Marketplace Phase II

 

Phoenix

 

2019

    6,853       100 %     241       35.17       33.85  

Bissonnet/Beltway

 

Houston

 

1978

    29,205       100 %     434       14.86       14.48  

BLVD Place

 

Houston

 

2014

    216,944       99 %     9,312       43.36       44.06  

The Citadel

 

Phoenix

 

2013

    28,547       94 %     511       19.04       18.89  

City View Village

 

San Antonio

 

2005

    17,870       100 %     562       31.45       31.28  

Davenport Village

 

Austin

 

1999

    128,934       99 %     3,530       27.65       27.96  

Desert Canyon

 

Phoenix

 

2000

    62,533       82 %     728       14.20       15.25  

Eldorado Plaza

 

Dallas

 

2004

    219,287       100 %     3,508       16.00       16.82  

Fountain Hills

 

Phoenix

 

2009

    111,289       94 %     1,704       16.29       16.24  

Fountain Square

 

Phoenix

 

1986

    118,209       91 %     1,889       17.56       17.32  

Fulton Ranch Towne Center

 

Phoenix

 

2005

    120,575       98 %     2,229       18.86       19.71  

Gilbert Tuscany Village

 

Phoenix

 

2009

    49,415       91 %     923       20.53       20.39  

Gilbert Tuscany Village Hard Corner

 

Phoenix

 

2009

    14,603       100 %     128       8.77       8.90  

Heritage

 

Dallas

 

2006

    70,431       98 %     1,630       23.62       24.01  

HQ Village

 

Dallas

 

2009

    89,134       97 %     2,673       30.92       34.71  

Keller Place

 

Dallas

 

2001

    93,541       97 %     1,046       11.53       11.53  

Kempwood Plaza

 

Houston

 

1974

    91,302       88 %     1,226       15.26       14.71  

La Mirada

 

Phoenix

 

1997

    147,209       91 %     3,318       24.77       24.58  

Lakeside Market

 

Dallas

 

2000

    162,649       91 %     3,680       24.86       27.53  

Las Colinas

 

Dallas

 

2000

    104,919       96 %     2,856       28.36       31.34  

Lion Square

 

Houston

 

2014

    117,592       98 %     1,859       16.13       17.99  

The MarketPlace at Central

 

Phoenix

 

2012

    111,130       99 %     1,153       10.48       10.00  

Market Street at DC Ranch

 

Phoenix

 

2003

    244,888       97 %     5,419       22.81       22.85  

Mercado at Scottsdale Ranch

 

Phoenix

 

1987

    118,730       91 %     1,768       16.36       16.84  

Paradise Plaza

 

Phoenix

 

1983

    125,898       92 %     1,554       13.42       13.76  

Parkside Village North

 

Austin

 

2005

    27,045       100 %     891       32.95       38.60  

Parkside Village South

 

Austin

 

2012

    90,101       100 %     2,558       28.39       28.56  

Pima Norte

 

Phoenix

 

2007

    35,110       73 %     447       17.44       18.84  

Pinnacle of Scottsdale

 

Phoenix

 

1991

    113,108       100 %     2,673       23.63       23.13  

Pinnacle Phase II

 

Phoenix

 

2017

    27,063       100 %     859       31.74       30.41  

The Promenade at Fulton Ranch

 

Phoenix

 

2007

    98,792       64 %     1,059       16.75       15.63  

Providence

 

Houston

 

1980

    90,327       96 %     1,137       13.11       13.55  

Quinlan Crossing

 

Austin

 

2012

    109,892       93 %     2,545       24.90       27.18  

Seville

 

Phoenix

 

1990

    90,042       93 %     2,795       33.38       33.76  

Shaver

 

Houston

 

1978

    21,926       94 %     347       16.84       16.79  

Shops at Pecos Ranch

 

Phoenix

 

2009

    78,767       100 %     1,931       24.52       27.51  

Shops at Starwood

 

Dallas

 

2006

    55,385       100 %     1,812       32.72       32.97  

The Shops at Williams Trace

 

Houston

 

1985

    132,991       95 %     2,220       17.57       18.21  

South Richey

 

Houston

 

1980

    72,738       100 %     862       11.85       12.57  

Spoerlein Commons

 

Chicago

 

1987

    43,855       98 %     850       19.78       20.99  

Starwood Phase II

 

Dallas

 

2016

    35,351       90 %     1,195       37.56       35.83  

Strand

 

San Antonio

 

2000

    73,920       100 %     1,800       24.35       26.24  

SugarPark Plaza

 

Houston

 

1974

    95,032       97 %     1,292       14.02       14.55  

Sunridge

 

Houston

 

1979

    49,359       74 %     604       16.54       17.06  

Sunset at Pinnacle Peak

 

Phoenix

 

2000

    41,530       100 %     804       19.36       19.29  

 

 

Whitestone REIT and Subsidiaries
Property Details
As of September 30, 2022

 

       

Year Built/

   

Gross Leasable

    Percent Occupied at    

Annualized Base Rental Revenue

   

Average Base Rental Revenue Per

   

Average Net Effective Annual Base Rent Per Leased

 

Community Name

 

Location

 

Renovated

   

Square Feet

   

9/30/2022

   

(in thousands) (1)

   

Sq. Ft. (2)

   

Sq. Ft.(3)

 

Terravita Marketplace

 

Phoenix

 

1997

    102,733       99 %     1,367       13.44       14.03  

Town Park

 

Houston

 

1978

    43,526       92 %     997       24.90       24.75  

Dana Park

 

Phoenix

 

2009

    323,026       86 %     6,403       23.05       23.98  

Westchase

 

Houston

 

1978

    44,398       85 %     622       16.48       16.14  

Williams Trace Plaza

 

Houston

 

1983

    129,222       91 %     1,876       15.95       16.06  

Windsor Park

 

San Antonio

 

2012

    196,458       97 %     2,005       10.52       10.82  

Woodlake Plaza

 

Houston

 

1974

    106,169       60 %     1,121       17.60       17.13  

Total/Weighted Average - Whitestone Properties

        5,205,242       92 %     100,835       21.06       21.73  
                                                 

Land Held for Development:

                                               

BLVD Phase II-B

 

Houston

  N/A           %                  

Dana Park Development

 

Phoenix

  N/A           %                  

Eldorado Plaza Development

 

Dallas

  N/A           %                  

Fountain Hills

 

Phoenix

  N/A           %                  

Market Street at DC Ranch

 

Phoenix

  N/A           %                  

Total/Weighted Average - Land Held For Development (4)

              %                  
                                                 

Grand Total/Weighted Average - Whitestone Properties

        5,205,242       92 %   $ 100,835     $ 21.06     $ 21.73  
                                                 
                                                 

Properties owned in Unconsolidated Real Estate Partnership (81.4% ownership)(5):

                                               

9101 LBJ Freeway

 

Dallas

 

1985

    125,874       50 %   $ 1,194     $ 18.97     $ 18.43  

Corporate Park Northwest

 

Houston

 

1981

    174,359       73 %     1,805       14.18       14.02  

Corporate Park Woodland II

 

Houston

 

2000

    14,344       83 %     201       16.88       17.22  

Holly Hall Industrial Park

 

Houston

 

1980

    90,000       57 %     394       7.68       7.56  

Holly Knight

 

Houston

 

1984

    20,015       86 %     384       22.31       21.84  

Interstate 10 Warehouse

 

Houston

 

1980

    151,000       6 %     68       7.51       7.51  

Uptown Tower

 

Dallas

 

1982

    253,981       62 %     3,854       24.47       23.97  

Westgate Service Center

 

Houston

 

1984

    97,225       83 %     700       8.67       8.19  

Total/Weighted Average - Unconsolidated Properties

        926,798       56 %   $ 8,600     $ 16.57     $ 16.22  

 

(1)

Calculated as the tenant’s actual September 30, 2022base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of September 30, 2022. Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with generally accepted accounting principles, historical results differ from the annualized amounts. Total abatements for leases in effect as of September 30, 2022 equaled approximately $200,083 for the month ended September 30, 2022.

 

(2)

Calculated as annualized base rent divided by leased square feet as of September 30, 2022.

 

(3)

Represents (i) the contractual base rent for leases in place as of September 30, 2022, adjusted to a straight-line basis to reflect changes in rental rates throughout the lease term and amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (ii) square footage under commenced leases of September 30, 2022.

 

(4)

As of September 30, 2022, these parcels of land were held for development and, therefore, had no gross leasable area.

 

(5)

We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of September 30, 2022 have not been made available to us, we have estimated information above based on the information available to us at the time of this Report.

 

 

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