Whitestone REIT Announces Tax Characteristics of 2025 Distributions
Rhea-AI Summary
Whitestone REIT (NYSE: WSR) disclosed the federal tax character of its 2025 cash distributions, which will be reported on Form 1099-DIV. Total distributions for 2025 equal $0.540000 per share. Of that, $0.445560 per share is classified as ordinary dividends and $0.094440 per share is classified as nontaxable return of capital (unrecaptured Sec 1250 gain is included in capital gain distributions as noted). Section 199A-eligible dividends are included in the ordinary dividend amount.
Shareholders should review these classifications for tax reporting and consult personal tax advisors with questions.
Positive
- Total 2025 distribution of $0.540000 per share
- Majority classified as ordinary dividends $0.445560 per share
- Return of capital of $0.094440 per share reduces immediate taxable income
Negative
- Most distributions (~82.6%) are ordinary dividends, increasing taxable income for shareholders
News Market Reaction – WSR
On the day this news was published, WSR declined 2.32%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WSR slipped 0.35% while key REIT retail peers were mixed: SITC (-1.46%), BFS (-1.01%), ALX (-1.60%), ALEX (-0.34%), and CBL (+0.11%). With no peers in the momentum scanner and no same‑day peer headlines, the move appears stock-specific rather than a broad sector reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 07 | Acquisition proposal | Positive | +1.4% | All-cash offer at $15.20 per share with stated premium. |
| Dec 19 | Dividend increase | Positive | -0.4% | Q1 2026 dividend raised 5.6% plus $50M buyback. |
| Dec 15 | Settlement payment | Positive | +0.6% | Receipt of $33.4M Pillarstone payment used to pay down revolver. |
| Nov 20 | Occupancy milestone | Positive | +0.6% | Promenade at Fulton Ranch reached 99% occupancy after remerchandising. |
| Nov 07 | Property acquisition | Positive | +0.7% | Acquisition of World Cup Plaza in Frisco, Texas near major venue. |
Recent company-specific news has generally seen modestly positive price alignment, with one divergence on a dividend and buyback announcement.
Over the past few months, Whitestone REIT has reported several constructive developments. An all-cash acquisition proposal at $15.20 per share and a dividend increase with a $50,000,000 repurchase authorization highlighted capital markets interest and shareholder return focus. Operationally, Whitestone received a $33.4 million settlement payment used to reduce revolver borrowings, reached 99% occupancy at a key Arizona center, and acquired World Cup Plaza in Texas. Against this backdrop, the 2025 tax characterization announcement functions as a neutral, compliance-focused update rather than a new strategic catalyst.
Market Pulse Summary
This announcement outlines the federal income tax characterization of Whitestone REIT’s 2025 cash distributions, including ordinary dividends, unrecaptured Section 1250 gain, return-of-capital components, and amounts qualifying as Section 199A dividends. It follows a period of strategic and capital actions, such as an acquisition proposal, dividend growth, and settlement proceeds. Investors monitoring this name may focus on how future distribution policy, governance developments, and property performance interact with these tax attributes over time.
Key Terms
cusip financial
form 1099-div regulatory
unrecaptured sec 1250 gain regulatory
section 199a dividends regulatory
qualified business income deduction regulatory
AI-generated analysis. Not financial advice.
HOUSTON, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) released the federal income tax treatment of 2025 cash distributions to holders of common shares (CUSIP 966084204). The final classifications of the distributions for 2025, which will be reported on Form 1099-DIV, are as follows:
| Ex-Dividend Date | Record Date | Payable Date | Total Distribution Per Share | Ordinary Dividends | Total Capital Gain Distribution | Unrecaptured Sec 1250 Gain (1) | Return of Capital (Nontaxable Distribution) | Section 199A Dividends (2) | ||||||||||
| 1/1/25 | 1/2/2025 | 1/14/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 2/2/2025 | 2/3/2025 | 2/11/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 3/1/2024 | 3/3/2025 | 3/11/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 3/31/2025 | 4/1/2025 | 4/10/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 4/30/2025 | 5/1/2025 | 5/13/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 6/2/2025 | 6/2/2025 | 6/12/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 7/1/2025 | 7/1/2025 | 7/10/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 8/1/2025 | 8/1/2025 | 8/12/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 9/2/2025 | 9/2/2025 | 9/11/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 10/1/2025 | 10/1/2025 | 10/9/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 11/3/2025 | 11/3/2025 | 11/13/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 12/1/2025 | 12/1/2025 | 12/11/2025 | $ | 0.045000 | $ | 0.037130 | $ | 0.007870 | $ | - | $ | - | $ | 0.037130 | ||||
| 2025 Total | $ | 0.540000 | $ | 0.445560 | $ | 0.094440 | $ | - | $ | - | $ | 0.445560 | ||||||
| (1) | Represents additional characterization of, and is included in, “Total Capital Gain Distribution.” | |||||||||||||||||
| (2) | Represents dividends eligible for the | |||||||||||||||||
Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Whitestone REIT cash distributions. For additional information, contact Whitestone REIT’s Investor Relations Department.
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 the Company's investor relations website.
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.
Investor and Media Contact:
David Mordy
Director of Investor Relations
Whitestone REIT
(713) 435-2219
ir@whitestonereit.com
FAQ
What is Whitestone REIT's total cash distribution per share for 2025 (WSR)?
How much of WSR's 2025 distribution is taxable ordinary dividend?
How much of WSR's 2025 distribution is return of capital (nontaxable)?
Will any portion of WSR's 2025 dividends be eligible for the Section 199A deduction?
How will Whitestone REIT report the 2025 distribution tax classifications?
Who should WSR shareholders contact with questions about tax treatment of 2025 distributions?
