Whitestone REIT Grows Dividend 9%

Rhea-AI Summary

Whitestone REIT (NYSE: WSR) has announced a 9% increase in its quarterly dividend, raising it to $0.135 per share for the first quarter of 2025. The dividend will be paid in three monthly installments of $0.045 per share. CEO Dave Holeman confirmed the company's 2024 Core FFO per share guidance, targeting 11% year-over-year growth at the midpoint.

The company expects to maintain a healthy payout ratio of approximately 50% of Core FFO while continuing its strategy of growing earnings, increasing dividend levels, and strengthening its balance sheet through lower debt leverage. Monthly distributions for Q1 2025 are scheduled for January 14, February 11, and March 11, 2025.

Positive

• 9% increase in quarterly dividend to $0.135 per share
• Projected 11% year-over-year growth in 2024 Core FFO per share
• Healthy payout ratio of approximately 50% of Core FFO
• Strategy includes simultaneous earnings growth and debt reduction

Negative

• None.

HOUSTON, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced that its Board of Trustees has declared a monthly cash dividend of $0.045 per share on the Company's common shares and operating partnership units for the first quarter of 2025. The quarterly dividend amount of $0.135 per share represents a 9% increase from the previous quarterly dividend amount.

Dave Holeman, Whitestone CEO, stated, “Ensuring our quarterly dividends increase in line with our earnings growth remains a priority for Whitestone. We reiterated our 2024 Core FFO per share guidance forecast, which targets 11% year-over-year growth at the midpoint. As we look to 2025, we intend to leverage our leadership position and expertise in high-return shop space to continue driving strong earnings growth. This increase is anticipated to maintain a very healthy payout ratio of approximately 50% of Core FFO as Whitestone extends its track record of simultaneously growing earnings, increasing dividends levels and strengthening our balance sheet through lower debt leverage.”

The first quarter dividend distribution for 2025 will be as detailed below:

Month	Record Date	Payment Date	Distribution per Share/Unit
January	1/2/2025	1/14/2025	$0.045
February	2/3/2025	2/11/2025	$0.045
March	3/3/2025	3/11/2025	$0.045

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.

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.

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.

Core Funds from Operations (“Core FFO”) is a non-GAAP measure. From time to time, we report or provide guidance with respect to “Core FFO” which removes the impact of certain non-recurring and non-operating transactions or other items we do not consider to be representative of our core operating results including, without limitation, default interest on debt of real estate partnership, extinguishment of debt cost, gains or losses associated with litigation involving the Company that is not in the normal course of business, and proxy contest professional fees.

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

Investor and Media Contact:

David Mordy
Director of Investor Relations
Whitestone REIT
(713) 435-2219
ir@whitestonereit.com

FAQ

What is Whitestone REIT's new quarterly dividend amount for 2025?

Whitestone REIT's (WSR) new quarterly dividend amount for 2025 is $0.135 per share, paid in three monthly installments of $0.045 per share.

When will Whitestone REIT (WSR) pay its Q1 2025 dividends?

Whitestone REIT will pay its Q1 2025 dividends on January 14, February 11, and March 11, 2025.

What is Whitestone REIT's (WSR) projected Core FFO growth for 2024?

Whitestone REIT is targeting 11% year-over-year growth in Core FFO per share for 2024 at the midpoint of guidance.

What is Whitestone REIT's (WSR) dividend payout ratio?

Whitestone REIT maintains a payout ratio of approximately 50% of Core FFO.