Exhibit 99.1

WHITESTONE REIT

REPORTS FIRST QUARTER 2023 RESULTS

Houston, Texas, May 2, 2023 - Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the first quarter of 2023. 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.

“We were pleased with our start to 2023, delivering strong results on multiple fronts. Our high-quality, open-air shopping centers located in Texas and Arizona continue to see strong consumer demand and performed very well in the quarter, highlighted by 2.8% same store NOI growth and 20%+ leasing spreads.  Looking forward, we are well positioned to produce consistent cash flow growth, to continue balance sheet strengthening and to drive long-term shareholder value.   We remain confident in our 2023 outlook and are reiterating all of our 2023 guidance targets.”

–    Dave Holeman, Chief Executive Officer

First Quarter 2023 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 $35.9 million versus $34.1 million for the first quarter of 2022.

• Net Income attributable to common shareholders of $3.8 million, or $0.08 per diluted share, versus $7.1 million, or $0.14 per diluted share for the first quarter of 2022, which included a compensation benefit of $2.2 million.

• Funds from Operations (“FFO”) per diluted share of $0.24 versus $0.30 for the first quarter of 2022, which included a compensation benefit of $0.04.

• EBITDAre of $20.4 million versus $21.9 million for the first quarter of 2022, which included a compensation benefit of $2.2 million.

• Same-Store Net Operating Income (“NOI”) grew 2.8% to $23.7 million versus $23.0 million for the first quarter of 2022.

• Net Effective Annual Base Rental Revenue per leased square foot was up 4.7% to $22.22, compared to the prior year quarter.

Operating Results

For the three-month periods ending March 31, 2023 and 2022 the Company’s operating highlights were as follows:

	First Quarter 2023	First Quarter 2022
Occupancy:
Wholly Owned Properties – All	92.7%	91.0%
>10,000 Sq Ft Occupancy	96.7%	94.6%
≤ 10,000 Sq Ft Occupancy	90.5%	89.0%
Same Store Property Net Operating Income Change (1)	2.8%	12.9%
Rental Rate Growth - Total (GAAP Basis):	20.8%	10.1%
New Leases	9.5%	12.7%
Renewal Leases	23.0%	9.6%
Leasing Transactions:
Number of New Leases	19	29
New Leases - Lease Term Revenue (millions)	$6.2	$9.2
Number of Renewal Leases	32	56
Renewal Leases - Lease Term Revenue (millions)	$9.0	$13.7

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Balance Sheet and Debt Metrics

• As of March 31, 2023, Whitestone had total debt of $630.9 million, along with capacity and availability of $136.9 million each under its $250 million revolving credit facility.

• As of March 31, 2023, the Company has undepreciated real estate assets of $1.2 billion.

Dividend

On March 9, 2023, the Company declared a quarterly cash distribution of $0.12 per common share and OP unit for the second quarter of 2023, to be paid in three equal installments of $0.04 in April, May and June of 2023. 

2023 Full Year Guidance

The Company reaffirms its previously released guidance for 2023 and estimates that U.S. generally accepted accounting principles (“GAAP”) net income available to common shareholders will be within the range of $0.29 to $0.33 per diluted share, and FFO will be within the range of $0.95 to $0.99 per diluted share and OP Unit.

	2023 Guidance
	(unaudited, amounts in thousands except per share and percentages)
Net income attributable to Whitestone REIT	$14,400 - $16,500
FFO (1)	$48,300 - $50,400
Net income attributable to Whitestone REIT per share	$0.29 - $0.33
FFO per diluted share and OP Unit (1)	$0.95 - $0.99
Key Drivers:
Same store net operating income growth (2)	2.5% – 4.5%
Bad debt as a percentage of revenue	0.75% – 1.50%
General and administrative expense	$19,200 - $19,700
Interest expense	$31,700 - $33,200
Ending occupancy	93.5% - 94.5%
Net Debt to EBITDAre Ratio (3)	7.3X - 6.9X

⁽¹⁾ For the reconciliation of forward-looking non-GAAP financial measure to the comparable GAAP financial measure, see the "FFO per diluted share and OP unit" reconciliation table.

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

⁽³⁾ Fourth quarter annualized EBITDAre.

Portfolio Statistics

As of March 31, 2023, Whitestone wholly owned 57 Community-Centered Properties™ with 5.1 million square feet of gross leasable area ("GLA"). Five of the 57 Community-Centered Properties™ are land parcels held for future development. The portfolio is comprised of 31 properties in Texas, 25 in Arizona and 1 in Illinois. Whitestone’s Community-Centered Properties™ are located in the MSA's of Austin (5), Chicago (1), Dallas-Fort Worth (9), Houston (14), Phoenix (25), 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.

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At the end of the first quarter, the Company’s diversified tenant base was comprised of 1,467 tenants, with the largest tenant accounting for only 2.2% 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, May 3, 2023, 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, May 17, 2023. 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):	13734724

Supplemental Financial Information

The first 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.

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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; the extent to which our estimates regarding Pillarstone REIT Operating Partnership LP's financial condition and results of operations differ from our estimates; 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.

Management uses 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 as the primary metric for comparing the relative performance of equity REITs. 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 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 presented by us is comparable to similarly titled measures of other REITs.

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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

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Whitestone REIT and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	March 31, 2023			December 31, 2022
ASSETS
Real estate assets, at cost
Property	$	1,201,650		$	1,199,041
Accumulated depreciation		(214,684	)		(208,286	)
Total real estate assets		986,966			990,755
Investment in real estate partnership		34,608			34,826
Cash and cash equivalents		3,479			6,166
Restricted cash		193			189
Escrows and acquisition deposits		10,031			12,827
Accrued rents and accounts receivable, net of allowance for doubtful accounts (1)		26,892			25,570
Receivable due from related party		1,403			1,377
Unamortized lease commissions, legal fees and loan costs		12,412			12,697
Prepaid expenses and other assets(2)		7,416			7,838
Finance lease right-of-use assets		10,493			10,522
Total assets	$	1,093,893		$	1,102,767
LIABILITIES AND EQUITY
Liabilities:
Notes payable	$	630,409		$	625,427
Accounts payable and accrued expenses(3)		28,311			36,154
Payable due to related party		1,562			1,561
Tenants' security deposits		8,343			8,428
Dividends and distributions payable		6,009			6,008
Finance lease liabilities		733			735
Total liabilities		675,367			678,313
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, 2023 and December 31, 2022		—			—
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 49,424,573 and 49,422,713 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		49			49
Additional paid-in capital		625,557			624,785
Accumulated deficit		(214,450	)		(212,366	)
Accumulated other comprehensive income		1,457			5,980
Total Whitestone REIT shareholders' equity		412,613			418,448
Noncontrolling interest in subsidiary		5,913			6,006
Total equity		418,526			424,454
Total liabilities and equity	$	1,093,893		$	1,102,767

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Whitestone REIT and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands)

	March 31, 2023			December 31, 2022
(1) Accrued rents and accounts receivable, net of allowance for doubtful accounts
Tenant receivables	$	17,163		$	16,828
Accrued rents and other recoveries		23,149			22,103
Allowance for doubtful accounts		(14,005	)		(13,822	)
Other receivables		585			461
Total accrued rents and accounts receivable, net of allowance for doubtful accounts	$	26,892		$	25,570
(2) Operating lease right of use assets (net)	$	107		$	124
(3) Operating lease liabilities	$	111		$	129

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended March 31,
	2023			2022
Revenues
Rental(1)	$	35,497		$	33,808
Management, transaction, and other fees		354			315
Total revenues		35,851			34,123
Operating expenses
Depreciation and amortization		7,846			7,910
Operating and maintenance		6,086			5,725
Real estate taxes		4,708			4,367
General and administrative		5,084			3,049
Total operating expenses		23,724			21,051
Other expenses (income)
Interest expense		7,903			6,061
Loss on disposal of assets, net		6			15
Interest, dividend and other investment income		(20	)		(14	)
Total other expenses		7,889			6,062
Income before equity investment in real estate partnership and income tax		4,238			7,010
Equity (deficit) in earnings of real estate partnership		(218	)		280
Provision for income tax		(119	)		(101	)
Net Income		3,901			7,189
Less: Net income attributable to noncontrolling interests		54			111
Net income attributable to Whitestone REIT	$	3,847		$	7,078

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

	Three Months Ended March 31,
	2023			2022
Basic Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.08		$	0.14
Diluted Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.08		$	0.14
Weighted average number of common shares outstanding:
Basic		49,424			49,145
Diluted		50,160			50,306
Consolidated Statements of Comprehensive Income (Loss)
Net income	$	3,901		$	7,189
Other comprehensive income (Loss)
Unrealized gain (loss) on cash flow hedging activities		(4,587	)		5,986
Comprehensive income (Loss)		(686	)		13,175
Less: Net income attributable to noncontrolling interests		54			111
Less: Comprehensive income (loss) attributable to noncontrolling interests		(64	)		92
Comprehensive income (Loss) attributable to Whitestone REIT	$	(676	)	$	12,972

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended March 31,
	2023			2022
(1) Rental
Rental revenues	$	25,740		$	24,844
Recoveries		10,081			9,337
Bad debt		(324	)		(373	)
Total rental	$	35,497		$	33,808

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended March 31,
	2023			2022
Cash flows from operating activities:
Net income	$	3,901		$	7,189
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,846			7,911
Amortization of deferred loan costs		277			274
Loss on disposal of assets		6			15
Bad debt		324			372
Share-based compensation		755			(1,413	)
(Equity) deficit in earnings of real estate partnership		218			(280	)
Amortization of right-of-use assets - finance leases		29			—
Changes in operating assets and liabilities:
Escrows and acquisition deposits		2,796			1,874
Accrued rents and accounts receivable		(1,646	)		(1,913	)
Receivable due from related party		(26	)		(164	)
Unamortized lease commissions, legal fees and loan costs		(521	)		(697	)
Prepaid expenses and other assets		(1,117	)		295
Accounts payable and accrued expenses		(7,843	)		(8,781	)
Payable due to related party		1			210
Tenants' security deposits		(85	)		23
Net cash provided by operating activities		4,915			4,915
Cash flows from investing activities:
Additions to real estate		(3,529	)		(3,359	)
Net cash used in investing activities		(3,529	)		(3,359	)
Cash flows from financing activities:
Distributions paid to common shareholders		(5,913	)		(5,268	)
Distributions paid to OP unit holders		(83	)		(83	)
Net proceeds from credit facility		9,500			—
Repayments of notes payable		(7,571	)		(863	)
Payment of finance lease liability		(2	)
Net cash used in financing activities		(4,069	)		(6,214	)
Net decrease in cash, cash equivalents and restricted cash		(2,683	)		(4,658	)
Cash, cash equivalents and restricted cash at beginning of period		6,355			15,914
Cash, cash equivalents and restricted cash at end of period (1)	$	3,672		$	11,256

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

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

Supplemental Disclosures

(in thousands)

	Three Months Ended March 31,
	2023			2022
Supplemental disclosure of cash flow information:
Cash paid for interest	$	7,610		$	5,772
Non cash investing and financing activities:
Disposal of fully depreciated real estate	$	864		$	20
Financed insurance premiums	$	3,002		$	1,846
Value of shares issued under dividend reinvestment plan	$	17		$	15
Change in fair value of cash flow hedge	$	(4,587	)	$	5,986

	March 31,
	2023		2022
Cash, cash equivalents and restricted cash
Cash and cash equivalents	$	3,479	$	11,136
Restricted cash		193		120
Total cash, cash equivalents and restricted cash	$	3,672	$	11,256

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Whitestone REIT and Subsidiaries

RECONCILIATION OF NON-GAAP MEASURES

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

	Three Months Ended March 31,
	2023		2022
FFO (NAREIT)
Net income attributable to Whitestone REIT	$	3,847	$	7,078
Adjustments to reconcile to FFO:(1)
Depreciation and amortization of real estate assets		7,805		7,868
Depreciation and amortization of real estate assets of real estate partnership (pro rata) (2)		403		394
Loss on disposal of assets, net		6		15
Net income attributable to noncontrolling interests		54		111
FFO (NAREIT)	$	12,115	$	15,466
FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO	$	12,115	$	15,466
Denominator:
Weighted average number of total common shares - basic		49,424		49,145
Weighted average number of total noncontrolling OP units - basic		694		770
Weighted average number of total common shares and noncontrolling OP units - basic		50,118		49,915
Effect of dilutive securities:
Unvested restricted shares		736		1,161
Weighted average number of total common shares and noncontrolling OP units - diluted		50,854		51,076
FFO per common share and OP unit - basic	$	0.24	$	0.31
FFO per common share and OP unit - diluted	$	0.24	$	0.30

⁽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 March 31, 2023 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.

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Whitestone REIT and Subsidiaries

RECONCILIATION OF NON-GAAP MEASURES

(continued)

(in thousands)

	Three Months Ended March 31,
	2023			2022
PROPERTY NET OPERATING INCOME
Net income attributable to Whitestone REIT	$	3,847		$	7,078
General and administrative expenses		5,084			3,049
Depreciation and amortization		7,846			7,910
(Equity) deficit in earnings of real estate partnership (1)		218			(280	)
Interest expense		7,903			6,061
Interest, dividend and other investment income		(20	)		(14	)
Provision for income taxes		119			101
Management fee, net of related expenses		—			52
Loss on disposal of assets, net		6			15
NOI of real estate partnership (pro rata) (1)		548			997
Net income attributable to noncontrolling interests		54			111
NOI	$	25,605		$	25,080
Non-Same Store NOI (2)		(533	)		(534	)
NOI of real estate partnership (pro rata) (1)		(548	)		(997	)
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)		24,524			23,549
Same Store straight-line rent adjustments		(439	)		(321	)
Same Store amortization of above/below market rents		(218	)		(218	)
Same Store lease termination fees		(214	)		(9	)
Same Store NOI (3)	$	23,653		$	23,001

⁽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 March 31, 2023 have not been made available to us, we have estimated (equity) deficit 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 March 31, 2023 to the three months ended March 31, 2022, Non-Same Store includes properties acquired between January 1, 2022 and March 31, 2023 and properties sold between January 1, 2022 and March 31, 2023, 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 March 31, 2023 to the three months ended March 31, 2022, Same Store includes properties owned before January 1, 2022 and not sold before March 31, 2023. Straight line rent adjustments, above/below market rents, and lease termination fees are excluded.

14

Whitestone REIT and Subsidiaries

RECONCILIATION OF NON-GAAP MEASURES

(continued)

(in thousands)

	Three Months Ended March 31,
	2023		2022
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)
Net income attributable to Whitestone REIT	$	3,847	$	7,078
Depreciation and amortization		7,846		7,910
Interest expense		7,903		6,061
Provision for income taxes		119		101
Net income attributable to noncontrolling interests		54		111
(Equity) deficit in earnings of real estate partnership (1)		218		(280	)
EBITDAre adjustments for real estate partnership (1)		381		867
Loss on disposal of assets, net		6		15
EBITDAre	$	20,374	$	21,863

(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 March 31, 2023 have not been made available to us, we have estimated (equity) deficit 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

RECONCILIATION OF NON-GAAP MEASURES

Initial Full Year Guidance for 2023

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

	Projected Range Full Year 2023
	Low		High
FFO per diluted share and OP unit
Net income attributable to Whitestone REIT	$	14,400	$	16,500
Depreciation and amortization of real estate assets		32,228		32,228
Depreciation and amortization of real estate assets of real estate partnership (pro rata)		1,672		1,672
FFO	$	48,300	$	50,400
Dilutive shares		50,327		50,327
OP Units		738		738
Dilutive share and OP Units		51,065		51,065
Net income attributable to Whitestone REIT per diluted share	$	0.29	$	0.33
FFO per diluted share and OP Unit	$	0.95	$	0.99

15