Whitestone REIT Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
Whitestone REIT (NYSE: WSR) reported Q4 2025 and full-year results: Q4 revenues $43.9M and full-year revenues $160.9M. Q4 net income per diluted share was $0.43; full-year was $0.95. Full-year Core FFO per diluted share was $1.05. Same-store NOI grew 4.0% for 2025 and occupancy reached a record 94.6%. The board moved from monthly to quarterly dividends, declaring $0.1425 per share for Q1 2026 (payable Mar 30, 2026), a 5.6% increase. Total debt was $649.4M with $220.4M availability on the revolver. 2026 guidance: Core FFO $1.10–$1.14 per share; GAAP net income $0.38–$0.43 per share.
Positive
- Record occupancy of 94.6%
- Board approved dividend schedule change and 5.6% dividend increase to $0.1425
- 2026 Core FFO guidance of $1.10–$1.14 per diluted share, above 2025 actual of $1.05
Negative
- 2026 GAAP net income guidance of $0.38–$0.43 per share, below 2025 actual of $0.95
- Total debt of $649.4M with limited revolver availability of $220.4M
- Q4 new-lease term revenue fell to $11.3M from $40.6M year-ago
News Market Reaction – WSR
On the day this news was published, WSR gained 0.99%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WSR fell 1.57% with slightly elevated volume while key retail REIT peers were mixed: SITC -0.61%, CBL -0.63%, BFS -2.6%, ALX +0.28%, ALEX -0.1%, suggesting a stock-specific reaction to earnings rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 29 | Q3 2025 earnings | Positive | +7.6% | Stronger revenues, higher net income, and raised 2025 net income guidance. |
| Apr 30 | Q1 2025 earnings | Positive | -3.8% | Same Store NOI growth and higher Core FFO with reaffirmed 2025 guidance. |
| Mar 03 | Q4 2024 earnings | Positive | +3.5% | Strong Q4 and 2024 results with 11% Core FFO per share growth. |
| Oct 30 | Q3 2024 earnings | Positive | -1.9% | Higher revenues, solid Same Store NOI growth, and robust leasing spreads. |
| Jul 31 | Q2 2024 earnings | Positive | -0.8% | Strong Same Store NOI growth and high GAAP leasing spreads with occupancy gains. |
Earnings releases have generally been framed positively, but price reactions have been mixed, with more instances of the stock declining on strong or improving results than rallying.
Recent earnings history for Whitestone REIT shows consistent operational strength: Q2 and Q3 2024 and Q4/full-year 2024 highlighted Same Store NOI growth, strong GAAP leasing spreads, and rising net income per share. In Q1 2025, the company maintained NOI growth and reaffirmed Core FFO guidance, while Q3 2025 delivered higher revenues and net income with updated, higher net income guidance. Against this backdrop, the current Q4 and full-year 2025 report continues the narrative of steady growth and portfolio stability across Texas and Arizona.
Historical Comparison
In the past five earnings releases, WSR’s average move was about 0.89%. Today’s -1.57% reaction to Q4 and full-year 2025 results is somewhat more negative than the typical earnings response.
Earnings releases from mid‑2024 through 2025 show progression in Same Store NOI, leasing spreads, and net income per share, alongside reaffirmed or raised guidance, indicating a steady operational build into the current Q4 and full‑year 2025 results.
Market Pulse Summary
This announcement reports Q4 and full-year 2025 growth, with revenues of $43.9M for the quarter and $160.9M for the year, record 94.6% occupancy, and 2025 Core FFO per share of $1.05. Management issued 2026 Core FFO guidance of $1.10–$1.14 and highlighted 4% Same Store NOI growth to $97.5M. Investors may track execution against this guidance, leasing spreads, and balance‑sheet metrics such as the $649.4M debt load and revolver availability.
Key Terms
ebitdare financial
funds from operations financial
core funds from operations financial
same-store net operating income financial
gaap financial
non-gaap financial
reit financial
nareit financial
AI-generated analysis. Not financial advice.
HOUSTON, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the fourth quarter and full year of 2025. Whitestone creates neighborhood center communities in its high-quality open-air shopping centers that it acquires, owns, manages, develops, and redevelops primarily in some of the largest, fastest-growing, high-household-income markets in the Sunbelt. For the three months ended December 31, 2025 and 2024, Net income attributable to common shareholders per diluted share was
“We are pleased to report strong fourth quarter and full year operating and financial results. We delivered full-year
| – Dave Holeman, Chief Executive Officer |
Fourth Quarter 2025 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, Core FFO, NOI and EBITDAre are included herein.
- Revenues of
$43.9 million versus$40.8 million for the fourth quarter of 2024. - Net Income attributable to common shareholders of
$22.8 million , or$0.43 per diluted share, inclusive of a$0.30 per diluted share gain on sale of properties, versus$17.3 million , or$0.33 per diluted share for the fourth quarter of 2024, inclusive of a$0.23 per diluted share gain on sale of properties. - Core Funds from Operations (“Core FFO”) of
$15.2 million versus$14.7 million for the fourth quarter of 2024. - Core FFO per diluted share was
$0.28 versus$0.28 for the fourth quarter of 2024. - Fund From Operations (“FFO”) of
$15.2 million versus$14.7 million for the fourth quarter of 2024. - FFO per diluted share of
$0.28 versus$0.28 for the fourth quarter of 2024. - EBITDAre of
$23.9 million versus$23.0 million for the fourth quarter of 2024. - Same-Store Net Operating Income (“NOI”) grew
3.8% to$26.3 million versus$25.3 million for the fourth quarter of 2024. - Net Effective Annual Base Rental Revenue per leased square foot was up
5% to$25.73 , compared to the prior year quarter.
Full Year 2025 Operating and Financial Results
All per share amounts are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.
- Revenues of
$160.9 million versus$154.3 million for 2024. - Net Income attributable to common shareholders of
$49.9 million , or$0.95 per diluted share, inclusive of a$0.57 per diluted share gain on sale of properties, versus$36.9 million , or$0.72 per diluted share, inclusive of a$0.43 per diluted share gain on sale of properties for 2024. - Core Funds from Operations (“Core FFO”) of
$55.4 million versus$52.5 million for 2024. - Core FFO per diluted share of
$1.05 versus$1.01 for 2024. - Funds from Operations (“FFO”) of
$54.6 million versus$50.7 million for 2024. - FFO per diluted share of
$1.03 versus$0.98 for 2024. - EBITDAre of
$89.6 million versus$85.3 million for 2024. - Same-Store Net Operating Income (“NOI”) grew
4% to$97.5 million versus$93.8 million for 2024.
Operating Results
For the three-month periods ending December 31, 2025 and 2024, the Company’s operating highlights were as follows:
| Fourth Quarter 2025 | Fourth Quarter 2024 | |
| Occupancy: | ||
| Wholly Owned Properties – All | ||
| >10,000 Sq Ft Occupancy | ||
| ≤ 10,000 Sq Ft Occupancy | ||
| Same Store Property Net Operating Income Change (1) | ||
| Rental Rate Growth - Total (GAAP Basis): | ||
| New Leases | ||
| Renewal Leases | ||
| Leasing Transactions: | ||
| Number of New Leases | 19 | 29 |
| New Leases - Lease Term Revenue (millions) | ||
| Number of Renewal Leases | 23 | 50 |
| Renewal Leases - Lease Term Revenue (millions) | ||
Balance Sheet and Debt Metrics
- As of December 31, 2025, Whitestone had total debt of
$649.4 million , along with capacity and availability of$323.2 million and$220.4 million , respectively, under its$375 million revolving credit facility. - As of December 31, 2025, the Company has undepreciated real estate assets of
$1.4 billion .
Dividend
On December 18, 2025, the Board of Trustees of Whitestone REIT approved a change to the Company’s dividend payment schedule from a monthly dividend to a quarterly dividend.
In connection with this change, the Board declared a quarterly cash dividend of
2026 Full Year Guidance
The Company currently estimates that U.S. generally accepted accounting principles (“GAAP”) net income available to common shareholders will be within the range of
| Initial 2026 Guidance | 2025 Actual | |
| (unaudited, amounts in thousands except per share and percentages) | ||
| Net income attributable to Whitestone REIT | ||
| Core FFO (1) | ||
| Net income attributable to Whitestone REIT per share | ||
| Core FFO per diluted share and OP Unit (1) | ||
| Key Drivers: | ||
| Same store net operating income growth (2) | ||
| Bad debt as a percentage of revenue | ||
| Interest expense | ||
| (1) | For the reconciliation of forward-looking non-GAAP financial measure to the comparable GAAP financial measure, see the “Core FFO per diluted share and OP unit” reconciliation table. Core Funds from Operations (“Core FFO”) is a non-GAAP measure. Guidance does not include the operational or capital impact of any future unannounced acquisition or disposition activity or the collection of any amounts due us from our claims in the Pillarstone bankruptcy. |
| (2) | Excludes straight-line rent, amortization of above/below market rates and lease termination fees for both periods. |
Portfolio Statistics
As of December 31, 2025, Whitestone wholly owned 56 Community-Centered Properties™ with 4.9 million square feet of gross leasable area (“GLA”). Five of the 56 Community-Centered Properties™ are land parcels held for future development. The portfolio is comprised of 31 properties in Texas and 25 in Arizona. Whitestone’s Community-Centered Properties are located in the MSA’s of Austin (7), Dallas (11), Houston (10), 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.
At the end of the fourth quarter, the Company’s diversified tenant base was comprised of 1,458 tenants, with the largest tenant accounting for only
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 Thursday, February 26, 2026, at 8:30 A.M Eastern Time / 7:30 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 Thursday, March 12, 2026. 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): | 13757652 |
Supplemental Financial Information
The fourth 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, 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; statements related to our expectations regarding the performance of our business; 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 reflect 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,” “hopes,” “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 and the real estate industry, both 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, Dallas, and Phoenix in particular, including the potential impact of public health emergencies, on our tenants’ ability to pay their rent, which could result in bad debt allowances or straight-line rent reserve adjustments; increases in interest rates, including as a result of inflation, which may increase our operating costs or general and administrative expenses; our current geographic concentration in the Houston, Dallas, and Phoenix metropolitan area markets makes us susceptible to potential local economic downturns; natural disasters, such as floods and hurricanes, which may increase as a result of climate change may adversely affect our returns and adversely impact our existing and prospective tenants; increasing focus by stakeholders on environmental, social, and governance matters; financial institution disruptions; 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; harm to our reputation, ability to do business and results of operations as a result of improper conduct by our employees, agents or business partners; 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; risks related to generative artificial intelligence tools and language models, along with the potential interpretations and conclusions they might make regarding our business and prospects, particularly concerning the spread of misinformation; 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 conflict in the Gaza Strip and unrest in the Middle East; the need to fund tenant improvements or other capital expenditures out of our 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: the timing and the ultimate amount we will collect in connection with the redemption of our equity investment in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP.”); 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, Core 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. We calculate 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: 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 costs.
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 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 and Core FFO should not be considered as alternatives 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.
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, deficit in earnings of real estate partnership, interest expense, interest, dividend and other investment income, provision for income taxes, gain on sale of properties, loss on disposal 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 properties, 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, 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) |
| December 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Real estate assets, at cost | ||||||||
| Property | $ | 1,354,112 | $ | 1,248,223 | ||||
| Accumulated depreciation | (264,940 | ) | (246,534 | ) | ||||
| Total real estate assets | 1,089,172 | 1,001,689 | ||||||
| Cash and cash equivalents | 4,888 | 5,224 | ||||||
| Restricted cash | 2,472 | 10,146 | ||||||
| Escrows and deposits | 5,170 | 4,006 | ||||||
| Accrued rents and accounts receivable, net of allowance for doubtful accounts(1) | 37,447 | 33,820 | ||||||
| Receivable from partnership redemption | — | 31,643 | ||||||
| Receivable due from related party | — | 15,186 | ||||||
| Unamortized lease commissions, legal fees and loan costs | 17,865 | 14,693 | ||||||
| Prepaid expenses and other assets(2) | 3,934 | 7,805 | ||||||
| Finance lease right-of-use assets | 10,315 | 10,427 | ||||||
| Total assets | $ | 1,171,263 | $ | 1,134,639 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Liabilities: | ||||||||
| Notes payable | $ | 643,925 | $ | 631,518 | ||||
| Accounts payable and accrued expenses(3) | 45,715 | 40,703 | ||||||
| Payable due to related party | — | 1,577 | ||||||
| Tenants' security deposits | 9,652 | 9,295 | ||||||
| Dividends and distributions payable | 7,370 | 6,931 | ||||||
| Finance lease liabilities | 741 | 781 | ||||||
| Total liabilities | 707,403 | 690,805 | ||||||
| Commitments and contingencies: | — | — | ||||||
| Equity: | ||||||||
| Preferred shares, | — | — | ||||||
| Common shares, | 51 | 51 | ||||||
| Additional paid-in capital | 641,234 | 637,946 | ||||||
| Accumulated deficit | (183,586 | ) | (205,557 | ) | ||||
| Accumulated other comprehensive income | 391 | 5,713 | ||||||
| Total Whitestone REIT shareholders' equity | 458,090 | 438,153 | ||||||
| Noncontrolling interest in subsidiary | 5,770 | 5,681 | ||||||
| Total equity | 463,860 | 443,834 | ||||||
| Total liabilities and equity | $ | 1,171,263 | $ | 1,134,639 | ||||
| Whitestone REIT and Subsidiaries |
| CONSOLIDATED BALANCE SHEETS |
| (in thousands) |
| December 31, 2025 | December 31, 2024 | |||||||
| (1)Accrued rents and accounts receivable, net of allowance for doubtful accounts | ||||||||
| Tenant receivables | $ | 17,025 | $ | 17,285 | ||||
| Accrued rents and other recoveries | 32,835 | 29,964 | ||||||
| Allowance for doubtful accounts | (13,674 | ) | (14,720 | ) | ||||
| Other receivables | 1,261 | 1,291 | ||||||
| Total accrued rents and accounts receivable, net of allowance for doubtful accounts | $ | 37,447 | $ | 33,820 | ||||
| (2)Operating lease right of use assets (net) | $ | 539 | $ | 59 | ||||
| (3)Operating lease liabilities | $ | 539 | $ | 58 | ||||
| Whitestone REIT and Subsidiaries |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
| (in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | ||||||||||||||||
| Rental(1) | $ | 43,371 | $ | 38,932 | $ | 159,275 | $ | 151,260 | ||||||||
| Management, transaction, and other fees | 545 | 1,906 | 1,584 | 3,022 | ||||||||||||
| Total revenues | 43,916 | 40,838 | 160,859 | 154,282 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Depreciation and amortization | 9,757 | 8,652 | 35,929 | 34,894 | ||||||||||||
| Operating and maintenance | 9,694 | 7,538 | 31,825 | 28,205 | ||||||||||||
| Real estate taxes | 4,762 | 4,785 | 18,310 | 17,773 | ||||||||||||
| General and administrative | 5,535 | 5,579 | 21,218 | 23,189 | ||||||||||||
| Total operating expenses | 29,748 | 26,554 | 107,282 | 104,061 | ||||||||||||
| Other expenses (income) | ||||||||||||||||
| Interest expense | 8,626 | 8,222 | 33,672 | 34,035 | ||||||||||||
| Extinguishment of debt cost | 1 | — | 798 | — | ||||||||||||
| Gain on sale of properties | (15,783 | ) | (11,913 | ) | (29,957 | ) | (22,125 | ) | ||||||||
| Loss on disposal of assets,net | 142 | 364 | 239 | 547 | ||||||||||||
| Gain on partnership redemption | (2,075 | ) | — | (2,075 | ) | — | ||||||||||
| Interest, dividend and other investment loss (income) | 2 | (72 | ) | (138 | ) | (87 | ) | |||||||||
| Total other expenses (income) | (9,087 | ) | (3,399 | ) | 2,539 | 12,370 | ||||||||||
| Income before equity investment in real estate partnership and income tax | 23,255 | 17,683 | 51,038 | 37,851 | ||||||||||||
| Deficit in earnings of real estate partnership | — | — | — | (28 | ) | |||||||||||
| Provision for income tax | (130 | ) | (123 | ) | (482 | ) | (450 | ) | ||||||||
| Net income | 23,125 | 17,560 | 50,556 | 37,373 | ||||||||||||
| Less: Net income attributable to noncontrolling interests | 287 | 223 | 630 | 480 | ||||||||||||
| Net income attributable to Whitestone REIT | $ | 22,838 | $ | 17,337 | $ | 49,926 | $ | 36,893 | ||||||||
| Whitestone REIT and Subsidiaries |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
| (in thousands, except per share data) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Basic Earnings Per Share: | ||||||||||||||||
| Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares | $ | 0.45 | $ | 0.34 | $ | 0.98 | $ | 0.73 | ||||||||
| Diluted Earnings Per Share: | ||||||||||||||||
| Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares | $ | 0.43 | $ | 0.33 | $ | 0.95 | $ | 0.72 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 51,028 | 50,650 | 50,959 | 50,214 | ||||||||||||
| Diluted | 52,616 | 51,859 | 52,316 | 51,347 | ||||||||||||
| Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||
| Net income | $ | 23,125 | $ | 17,560 | $ | 50,556 | $ | 37,373 | ||||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Unrealized gain (loss) on cash flow hedging activities | 922 | 6,474 | (5,390 | ) | 3,178 | |||||||||||
| Comprehensive income | 24,047 | 24,034 | 45,166 | 40,551 | ||||||||||||
| Less: Net income attributable to noncontrolling interests | 287 | 223 | 630 | 480 | ||||||||||||
| Less: Comprehensive income (loss) attributable to noncontrolling interests | 11 | 82 | (68 | ) | 41 | |||||||||||
| Comprehensive income attributable to Whitestone REIT | $ | 23,749 | $ | 23,729 | $ | 44,604 | $ | 40,030 | ||||||||
| Whitestone REIT and Subsidiaries |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
| (in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (1) Rental | ||||||||||||||||
| Rental revenues | $ | 29,894 | $ | 27,580 | $ | 113,428 | $ | 108,930 | ||||||||
| Recoveries | 13,575 | 11,549 | 46,724 | 43,558 | ||||||||||||
| Bad debt | (98 | ) | (197 | ) | (877 | ) | (1,228 | ) | ||||||||
| Total rental | $ | 43,371 | $ | 38,932 | $ | 159,275 | $ | 151,260 | ||||||||
| Whitestone REIT and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 50,556 | $ | 37,373 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 35,929 | 34,894 | ||||||
| Amortization of deferred loan costs | 1,345 | 1,106 | ||||||
| Gain on sale of properties | (29,957 | ) | (22,125 | ) | ||||
| Gain on partnership redemption | (2,075 | ) | — | |||||
| Loss on disposal of assets, net | 239 | 547 | ||||||
| Bad debt | 877 | 1,228 | ||||||
| Accretion of debt discount | 38 | — | ||||||
| Share-based compensation | 5,319 | 4,579 | ||||||
| Deficit in earnings of real estate partnership | — | 28 | ||||||
| Amortization of right-of-use assets - finance leases | 93 | 87 | ||||||
| Building improvements received due to lease termination | — | (749 | ) | |||||
| Extinguishment of debt cost | 798 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Escrows and deposits | (1,164 | ) | 6,509 | |||||
| Accrued rents and accounts receivable | (4,346 | ) | (4,415 | ) | ||||
| Receivable due from related party | 224 | (40 | ) | |||||
| Unamortized lease commissions, legal fees and loan costs | (3,634 | ) | (3,536 | ) | ||||
| Prepaid expenses and other assets | (1,013 | ) | 2,280 | |||||
| Accounts payable and accrued expenses | (2,771 | ) | (220 | ) | ||||
| Payable due to related party | (42 | ) | — | |||||
| Tenants' security deposits | 357 | 681 | ||||||
| Net cash provided by operating activities | 50,773 | 58,227 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisitions of real estate | (86,156 | ) | (55,751 | ) | ||||
| Additions to real estate | (24,362 | ) | (22,410 | ) | ||||
| Proceeds from sales of properties | 42,234 | 52,004 | ||||||
| Proceeds from sale of property held in restricted cash (1031 exchange) | — | 10,146 | ||||||
| Receipt of funds from real estate partnership for loan repayment | 13,633 | — | ||||||
| Proceeds from partnership redemption | 33,354 | — | ||||||
| Net cash used in investing activities | (21,297 | ) | (16,011 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Distributions paid to common shareholders | (27,406 | ) | (24,572 | ) | ||||
| Distributions paid to OP unit holders | (348 | ) | (321 | ) | ||||
| Proceeds from issuance of common shares, net of offering costs | — | 7,620 | ||||||
| Payments of exchange offer costs | — | (81 | ) | |||||
| Net payments of revolving credit facility | (73,209 | ) | (21,000 | ) | ||||
| Proceeds from notes payable | — | 76,340 | ||||||
| Repayments of notes payable | (17,572 | ) | (66,016 | ) | ||||
| Payment of loan origination costs | (6,643 | ) | (789 | ) | ||||
| Repurchase of common shares | (2,268 | ) | (2,641 | ) | ||||
| Proceeds from borrowings under unsecured term loan | 375,000 | — | ||||||
| Repayment of borrowings under unsecured term loan | (285,000 | ) | — | |||||
| Payment of finance lease liability | (40 | ) | (26 | ) | ||||
| Net cash used in financing activities | (37,486 | ) | (31,486 | ) | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (8,010 | ) | 10,730 | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 15,370 | 4,640 | ||||||
| Cash, cash equivalents and restricted cash at end of period(1) | $ | 7,360 | $ | 15,370 | ||||
| (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) |
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 33,581 | $ | 33,663 | ||||
| Cash paid for taxes | $ | 457 | $ | 432 | ||||
| Non cash investing and financing activities: | ||||||||
| Disposal of fully depreciated real estate | $ | 330 | $ | 58 | ||||
| Financed insurance premiums | $ | — | $ | 2,638 | ||||
| Value of shares issued under dividend reinvestment plan | $ | 112 | $ | 36 | ||||
| Value of common shares exchanged for OP units | $ | 125 | $ | 355 | ||||
| Change in fair value of cash flow hedge | $ | (5,390 | ) | $ | 3,178 | |||
| Recognition of finance lease liability | $ | — | $ | 86 | ||||
| Accrued capital expenditures | $ | 3,364 | $ | 2,062 | ||||
| Receivable from partnership redemption | $ | — | $ | 31,643 | ||||
| Building improvements received due to lease termination | $ | — | $ | 749 | ||||
| Recognition of operating lease liability | $ | 606 | $ | — | ||||
| Receivable recognized for partnership interest redemption | $ | 158 | $ | — | ||||
| Note payable assumed through property acquisition | $ | 17,650 | $ | — | ||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash, cash equivalents and restricted cash | ||||||||
| Cash and cash equivalents | $ | 4,888 | $ | 5,224 | ||||
| Restricted cash | 2,472 | 10,146 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 7,360 | $ | 15,370 | ||||
| Whitestone REIT and Subsidiaries |
| RECONCILIATION OF NON-GAAP MEASURES |
| (in thousands, except per share and per unit data) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| FFO (NAREIT) AND CORE FFO | ||||||||||||||||
| Net income attributable to Whitestone REIT | $ | 22,838 | $ | 17,337 | $ | 49,926 | $ | 36,893 | ||||||||
| Adjustments to reconcile to FFO:(1) | ||||||||||||||||
| Depreciation and amortization of real estate assets | 9,745 | 8,642 | 35,867 | 34,811 | ||||||||||||
| Depreciation and amortization of real estate assets of real estate partnership (pro rata)(2) | — | — | — | 111 | ||||||||||||
| Loss on disposal of assets, net | 142 | 364 | 239 | 547 | ||||||||||||
| Gain on sale of properties | (15,783 | ) | (11,913 | ) | (29,957 | ) | (22,125 | ) | ||||||||
| Gain on partnership redemption | (2,075 | ) | — | (2,075 | ) | — | ||||||||||
| Net income attributable to noncontrolling interests | 287 | 223 | 630 | 480 | ||||||||||||
| FFO (NAREIT) | $ | 15,154 | $ | 14,653 | $ | 54,630 | $ | 50,717 | ||||||||
| Adjustments to reconcile to Core FFO: | ||||||||||||||||
| Extinguishment of debt cost | 1 | — | 798 | — | ||||||||||||
| Proxy contest costs | — | — | — | 1,757 | ||||||||||||
| Core FFO | $ | 15,155 | $ | 14,653 | $ | 55,428 | $ | 52,474 | ||||||||
| FFO PER SHARE AND OP UNIT CALCULATION | ||||||||||||||||
| Numerator: | ||||||||||||||||
| FFO | $ | 15,154 | $ | 14,653 | $ | 54,630 | $ | 50,717 | ||||||||
| Core FFO | $ | 15,155 | $ | 14,653 | $ | 55,428 | $ | 52,474 | ||||||||
| Denominator: | ||||||||||||||||
| Weighted average number of total common shares - basic | 51,028 | 50,650 | 50,959 | 50,214 | ||||||||||||
| Weighted average number of total noncontrolling OP units - basic | 641 | 649 | 643 | 653 | ||||||||||||
| Weighted average number of total common shares and noncontrolling OP units - basic | 51,669 | 51,299 | 51,602 | 50,867 | ||||||||||||
| Effect of dilutive securities: | ||||||||||||||||
| Unvested restricted shares | 1,588 | 1,209 | 1,357 | 1,133 | ||||||||||||
| Weighted average number of total common shares and noncontrolling OP units - diluted | 53,257 | 52,508 | 52,959 | 52,000 | ||||||||||||
| FFO per common share and OP unit - basic | $ | 0.29 | $ | 0.29 | $ | 1.06 | $ | 1.00 | ||||||||
| FFO per common share and OP unit - diluted | $ | 0.28 | $ | 0.28 | $ | 1.03 | $ | 0.98 | ||||||||
| Core FFO per common share and OP unit - basic | $ | 0.29 | $ | 0.29 | $ | 1.07 | $ | 1.03 | ||||||||
| Core FFO per common share and OP unit - diluted | $ | 0.28 | $ | 0.28 | $ | 1.05 | $ | 1.01 | ||||||||
| (1) | Includes pro-rata share attributable to real estate partnership through January 25, 2024, the redemption date. |
| (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 and for the year ended December 31, 2024 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. On January 25, 2024, we exercised our redemption notice for substantially all of our investment in Pillarstone OP. As a result, our ownership no longer represents a majority interest. |
| Whitestone REIT and Subsidiaries |
| RECONCILIATION OF NON-GAAP MEASURES |
| (continued) |
| (in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| PROPERTY NET OPERATING INCOME | ||||||||||||||||
| Net income attributable to Whitestone REIT | $ | 22,838 | $ | 17,337 | $ | 49,926 | $ | 36,893 | ||||||||
| General and administrative expenses | 5,535 | 5,579 | 21,218 | 23,189 | ||||||||||||
| Depreciation and amortization | 9,757 | 8,652 | 35,929 | 34,894 | ||||||||||||
| Deficit in earnings of real estate partnership(1) | — | — | — | 28 | ||||||||||||
| Interest expense | 8,626 | 8,222 | 33,672 | 34,035 | ||||||||||||
| Extinguishment of debt cost | 1 | — | 798 | — | ||||||||||||
| Interest, dividend and other investment income | 2 | (72 | ) | (138 | ) | (87 | ) | |||||||||
| Provision for income taxes | 130 | 123 | 482 | 450 | ||||||||||||
| Gain on sale of properties | (15,783 | ) | (11,913 | ) | (29,957 | ) | (22,125 | ) | ||||||||
| Loss on disposal of assets, net | 142 | 364 | 239 | 547 | ||||||||||||
| Gain on partnership redemption | (2,075 | ) | — | (2,075 | ) | — | ||||||||||
| NOI of real estate partnership (pro rata)(1) | — | — | — | 183 | ||||||||||||
| Net income attributable to noncontrolling interests | 287 | 223 | 630 | 480 | ||||||||||||
| NOI | $ | 29,460 | $ | 28,515 | $ | 110,724 | $ | 108,487 | ||||||||
| Non-Same Store NOI(2) | (1,848 | ) | (779 | ) | (9,114 | ) | (8,640 | ) | ||||||||
| NOI of real estate partnership (pro rata)(1) | — | — | — | (183 | ) | |||||||||||
| NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata) | 27,612 | 27,736 | 101,610 | 99,664 | ||||||||||||
| Same Store straight-line rent adjustments | (760 | ) | (547 | ) | (2,682 | ) | (3,160 | ) | ||||||||
| Same Store amortization of above/below market rents | (215 | ) | (243 | ) | (490 | ) | (787 | ) | ||||||||
| Same Store lease termination fees | (386 | ) | (1,662 | ) | (892 | ) | (1,961 | ) | ||||||||
| Same Store NOI(3) | $ | 26,251 | $ | 25,284 | $ | 97,546 | $ | 93,756 | ||||||||
| (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 for the year ended December 31, 2024 have not been made available to us, we have estimated 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. On January 25, 2024, we exercised our redemption notice for substantially all of our investment in Pillarstone OP. As a result, our ownership no longer represents a majority interest |
| (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 purpose of comparing the three months ended December 31, 2025 to the three months ended December 31, 2024, Non-Same Store includes properties acquired between October 1, 2024 and December 31, 2025, and properties sold between October 1, 2024 and December 31, 2025, but not included in discontinued operations. For purposes of comparing the twelve months ended December 31, 2025 to the twelve months ended December 31, 2024, Non-Same Store includes properties acquired between January 1, 2024 and December 31, 2025 and properties sold between January 1, 2024 and December 31, 2025, but not included in discontinued operations. |
| (3) | We define “Same Store” as properties that have been owned during the entire period being compared. For purpose of comparing the three months ended December 31, 2025 to the three months ended December 31, 2024, Same Store includes properties owned before October 1, 2024 and not sold before December 31, 2025. For purposes of comparing the twelve months ended December 31, 2025 to the twelve months ended December 31, 2024, Same Store includes properties owned before January 1, 2024 and not sold before December 31, 2025. Straight line rent adjustments, above/below market rents, and lease termination fees are excluded. |
| Whitestone REIT and Subsidiaries |
| RECONCILIATION OF NON-GAAP MEASURES |
| (continued) |
| (in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) | ||||||||||||||||
| Net income attributable to Whitestone REIT | $ | 22,838 | $ | 17,337 | $ | 49,926 | $ | 36,893 | ||||||||
| Depreciation and amortization | 9,757 | 8,652 | 35,929 | 34,894 | ||||||||||||
| Interest expense | 8,626 | 8,222 | 33,672 | 34,035 | ||||||||||||
| Extinguishment of debt cost | 1 | — | 798 | — | ||||||||||||
| Provision for income taxes | 130 | 123 | 482 | 450 | ||||||||||||
| Net income attributable to noncontrolling interests | 287 | 223 | 630 | 480 | ||||||||||||
| Deficit in earnings of real estate partnership(1) | — | — | — | 28 | ||||||||||||
| EBITDAre adjustments for real estate partnership(1) | — | — | — | 136 | ||||||||||||
| Gain on sale of properties | (15,783 | ) | (11,913 | ) | (29,957 | ) | (22,125 | ) | ||||||||
| Gain on partnership redemption | (2,075 | ) | — | (2,075 | ) | — | ||||||||||
| Loss on disposal of assets, net | 142 | 364 | 239 | 547 | ||||||||||||
| EBITDAre | $ | 23,923 | $ | 23,008 | $ | 89,644 | $ | 85,338 | ||||||||
| (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 for the year ended December 31, 2024 have not been made available to us, we have estimated deficit in earnings and EBITDAre adjustments for real estate partnership based on the information available to us at the time of this Report. On January 25, 2024, we exercised our redemption notice for substantially all of our investment in Pillarstone OP. As a result, our ownership no longer represents a majority interest. |
| Whitestone REIT and Subsidiaries |
| RECONCILIATION OF NON-GAAP MEASURES |
| Initial Full Year Guidance for 2026 |
| (in thousands, except per share and per unit data) |
| Projected Range Full Year 2026 | ||||||||
| Low | High | |||||||
| FFO and Core FFO per diluted share and OP unit | ||||||||
| Net income attributable to Whitestone REIT | $ | 20,580 | $ | 22,730 | ||||
| Adjustments to reconcile to FFO | ||||||||
| Depreciation and amortization of real estate assets | 38,133 | 38,133 | ||||||
| Adjustments | — | — | ||||||
| Net income attributable to noncontrolling interest | 351 | 351 | ||||||
| FFO | $ | 59,064 | $ | 61,214 | ||||
| Adjustments to reconcile to Core FFO | ||||||||
| Adjustments | — | — | ||||||
| Core FFO(1) | $ | 59,064 | $ | 61,214 | ||||
| Denominator: | ||||||||
| Dilutive shares | 52,826 | 52,826 | ||||||
| OP Units | 649 | 649 | ||||||
| Dilutive share and OP Units | 53,475 | 53,475 | ||||||
| Net income attributable to Whitestone REIT per diluted share | $ | 0.38 | $ | 0.43 | ||||
| FFO per diluted share and OP Unit | $ | 1.10 | $ | 1.14 | ||||
| Core FFO per diluted share and OP Unit(1) | $ | 1.10 | $ | 1.14 | ||||
| (1) | Guidance does not include the operational or capital impact of any future unannounced acquisition or disposition activity or the collection of any amounts due us from our claims in the Pillarstone bankruptcy. |
FAQ
What were Whitestone REIT (WSR) Q4 2025 revenues and net income per share?
How did Whitestone REIT (WSR) perform for full year 2025 on Core FFO per share?
What dividend change did Whitestone REIT (WSR) announce and when is it payable?
What financial guidance did Whitestone REIT (WSR) provide for 2026 Core FFO and net income?
What occupancy and same-store performance did Whitestone REIT (WSR) report for 2025?
What is Whitestone REIT's (WSR) debt position and liquidity as of December 31, 2025?
