Whitestone REIT Reports First Quarter 2025 Results

HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the first quarter 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 March 31, 2025 and 2024, Net income attributable to common shareholders per diluted share was $0.07 and $0.18, respectively. “Whitestone delivered a very strong quarter, delivering 4.8% Same Store Net Operating Income growth, GAAP leasing spreads of 20.3% and occupancy of 92.9%. Our portfolio of primarily service-based tenants is designed to adapt more readily to change and deliver results in a variety of economic environments. We reiterated our 2025 Core FFO per share guidance, which provides for 4% year-over-year growth at the midpoint, driven by continued strong Same Store Net Operating Income growth. We look forward to providing more detail on Whitestone’s financial results on tomorrow morning’s first quarter earnings conference call.” – Dave Holeman, Chief Executive Officer First Quarter 2025 Operating and Financial ResultsAll 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 $38.0 million versus $37.2 million for the first quarter of 2024. •Net Income attributable to common shareholders of $3.7 million, or $0.07 per diluted share, versus $9.3 million, or $0.18 per diluted share for the first quarter of 2024. •Core Funds from Operations (“FFO”) of $13.1 million versus $12.3 million for the first quarter of 2024. •FFO per diluted share of $0.25 versus $0.23 for the first quarter of 2024. •Core FFO per diluted share was $0.25 versus $0.24 for the first quarter of 2024. •EBITDAre of $21.4 million versus $20.5 million for the first quarter of 2024. •Same-Store Net Operating Income (“NOI”) grew 4.8% to $24.7 million versus $23.5 million for the first quarter of 2024. •Net Effective Annual Base Rental Revenue per leased square foot was up 4% to $24.79, compared to the prior year quarter. Operating ResultsFor the three-month periods ending March 31, 2025 and 2024, the Company’s operating highlights were as follows: First Quarter 2025First Quarter 2024Occupancy: Wholly Owned Properties – All92.9%93.6%>10,000 Sq Ft Occupancy95.4%96.9%≤ 10,000 Sq Ft Occupancy91.4%91.6%Same Store Property Net Operating Income Change (1)4.8%3.1%Rental Rate Growth - Total (GAAP Basis):20.3%17.0%New Leases22.6%25.9%Renewal Leases19.9%15.0%Leasing Transactions: Number of New Leases2224New Leases – Lease Term Revenue (millions)$10.0$7.8Number of Renewal Leases6246Renewal Leases – Lease Term Revenue (millions)$21.3$10.7 Balance Sheet and Debt Metrics •As of March 31, 2025, Whitestone had total debt of $642.2 million, along with capacity and availability of $97.7 million each under its $250 million revolving credit facility. •As of March 31, 2025, the Company has undepreciated real estate assets of $1.3 billion. Dividend On March 6, 2025, the Company declared a quarterly cash distribution of $0.135 per common share and OP unit for the second quarter of 2025, to be paid in three equal installments of $0.045 in April, May, and June of 2025. 2025 Full Year Guidance The Company reaffirms its previously released full-year guidance for 2025 and estimates that U.S. Generally Accepted Accounting Principles (“GAAP”) net income attributable to Whitestone REIT will be within the range of $0.33-$0.37 per diluted share, and Core FFO will be within the range of $1.03 to $1.07 per diluted share and OP Unit. 2025 Guidance (unaudited, amounts in thousands except per share and percentages)Net income attributable to Whitestone REIT$17,135 – $19,219Core FFO (1)$54,158 – $56,268 Net income attributable to Whitestone REIT per share$0.33 – $0.37Core FFO per diluted share and OP Unit (1)$1.03 – $1.07 Key Drivers: Same store net operating income growth (2)3.0% – 4.5%Bad debt as a percentage of revenue0.75% – 1.00%General and administrative expense$20,800 – $22,800Interest expense$32,000 – $33,000Ending occupancy94.0% – 95.0% (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 March 31, 2025, Whitestone wholly owned 55 Community-Centered Properties™ with 4.9 million square feet of gross leasable area (“GLA”). Five of the 55 Community-Centered Properties™ are land parcels held for future development. The portfolio is comprised of 31 properties in Texas and 24 in Arizona. Whitestone’s Community-Centered PropertiesTM are located in the MSA's of Austin (6), Dallas-Fort Worth (9), Houston (13), Phoenix (24), 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 first quarter, the Company’s diversified tenant base was comprised of 1,456 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 Thursday, May 1, 2025, 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:1-877-407-0784Dial-in number for international participants:1-201-689-8560 The conference call will be recorded, and a telephone replay will be available through Thursday, May 15, 2025. Replay access information is as follows: Replay number for domestic participants:1-844-512-2921Replay number for international participants:1-412-317-6671Passcode (for all participants):13747765 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. 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 and results of operations, statements related to our expectations regarding the performance of our business, 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 national, international, regional and local economic conditions, including impacts and uncertainty from trade disputes and tariffs on goods imported to the United States and goods exported to other countries; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets;; legislative or regulatory changes, including changes to laws governing REITs; adverse economic or real estate developments or conditions in Texas or Arizona, Austin, Houston, Dallas, San Antonio, Scottsdale 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 Austin, Houston, Dallas, San Antonio, Scottsdale 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 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 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 MordyDirector, Investor RelationsWhitestone REIT(713) 435-2219ir@whitestonereit.com Whitestone REIT and SubsidiariesCONSOLIDATED BALANCE SHEETS(in thousands, except share and per share data) March 31, 2025 December 31, 2024 ASSETS Real estate assets, at cost Property $1,253,641 $1,248,223 Accumulated depreciation (254,819) (246,534)Total real estate assets 998,822 1,001,689 Cash and cash equivalents 5,586 5,224 Restricted cash 10,228 10,146 Escrows and deposits 894 4,006 Accrued rents and accounts receivable, net of allowance for doubtful accounts (1) 33,865 33,820 Receivable from partnership redemption 31,643 31,643 Receivable due from related party 14,958 15,186 Unamortized lease commissions, legal fees and loan costs 14,268 14,693 Prepaid expenses and other assets (2) 6,034 7,805 Finance lease right-of-use assets 10,393 10,427 Total assets $1,126,691 $1,134,639 LIABILITIES AND EQUITY Liabilities: Notes payable $641,295 $631,518 Accounts payable and accrued expenses (3) 30,376 40,703 Payable due to related party 1,535 1,577 Tenants' security deposits 9,188 9,295 Dividends and distributions payable 6,958 6,931 Finance lease liabilities 772 781 Total liabilities 690,124 690,805 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, 2025 and December 31, 2024 — — Common shares, $0.001 par value per share; 400,000,000 shares authorized; 50,894,945 and 50,690,163 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 51 51 Additional paid-in capital 637,497 637,946 Accumulated deficit (208,754) (205,557)Accumulated other comprehensive income 2,231 5,713 Total Whitestone REIT shareholders' equity 431,025 438,153 Noncontrolling interest in subsidiary 5,542 5,681 Total equity 436,567 443,834 Total liabilities and equity $1,126,691 $1,134,639 Whitestone REIT and SubsidiariesCONSOLIDATED BALANCE SHEETS(in thousands) March 31, 2025 December 31, 2024 (1) Accrued rents and accounts receivable, net of allowance for doubtful accounts Tenant receivables $15,814 $17,285 Accrued rents and other recoveries 29,887 29,964 Allowance for doubtful accounts (13,167) (14,720)Other receivables 1,331 1,291 Total accrued rents and accounts receivable, net of allowance for doubtful accounts $33,865 $33,820 (2) Operating lease right of use assets (net) $52 $59 (3) Operating lease liabilities $51 $58 Whitestone REIT and SubsidiariesCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(in thousands) Three Months Ended March 31, 2025 2024 Revenues Rental (1) $37,395 $36,741 Management, transaction, and other fees 608 423 Total revenues 38,003 37,164 Operating expenses Depreciation and amortization 9,324 8,800 Operating and maintenance 7,012 6,349 Real estate taxes 4,252 4,238 General and administrative 5,443 6,180 Total operating expenses 26,031 25,567 Other expenses (income) Interest expense 8,097 8,519 Gain on sale of properties — (6,525)Loss on disposal of assets 100 — Interest, dividend and other investment income (100) (8)Total other expenses 8,097 1,986 Income before equity investment in real estate partnership and income tax 3,875 9,611 Deficit in earnings of real estate partnership — (28)Provision for income tax (127) (119)Net Income 3,748 9,464 Less: Net income attributable to noncontrolling interests 47 124 Net income attributable to Whitestone REIT $3,701 $9,340 Whitestone REIT and SubsidiariesCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(in thousands, except per share data) Three Months Ended March 31, 2025 2024 Basic Earnings Per Share: Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares $0.07 $0.19 Diluted Earnings Per Share: Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares $0.07 $0.18 Weighted average number of common shares outstanding: Basic 50,890 49,940 Diluted 52,010 51,112 Consolidated Statements of Comprehensive Income (Loss) Net income $3,748 $9,464 Other comprehensive income (loss) Unrealized gain (loss) on cash flow hedging activities (3,526) 5,007 Comprehensive income 222 14,471 Less: Net income attributable to noncontrolling interests 47 124 Less: Comprehensive income (loss) attributable to noncontrolling interests (44) 66 Comprehensive income attributable to Whitestone REIT $219 $14,281 Whitestone REIT and SubsidiariesCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(in thousands) Three Months Ended March 31, 2025 2024 (1) Rental Rental revenues $27,205 $26,864 Recoveries 10,509 10,477 Bad debt (319) (600)Total rental $37,395 $36,741 Whitestone REIT and SubsidiariesCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income $3,748 $9,464 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,324 8,800 Amortization of deferred loan costs 280 265 Gain on sale of properties — (6,525)Loss on disposal of assets 100 — Bad debt 319 600 Share-based compensation 981 861 Deficit in earnings of real estate partnership — 28 Amortization of right-of-use assets - finance leases 34 22 Changes in operating assets and liabilities: Escrows and deposits 3,112 6,876 Accrued rents and accounts receivable (364) (1,063)Receivable due from related party 228 (9)Unamortized lease commissions, legal fees and loan costs (728) (817)Prepaid expenses and other assets (1,766) 997 Accounts payable and accrued expenses (12,038) (8,160)Payable due to related party (42) — Tenants' security deposits (107) 185 Net cash provided by operating activities 3,081 11,524 Cash flows from investing activities: Acquisitions of real estate — (27,204)Additions to real estate (3,914) (3,041)Proceeds from sales of properties — 25,661 Net cash used in investing activities (3,914) (4,584)Cash flows from financing activities: Distributions paid to common shareholders (6,845) (5,969)Distributions paid to OP unit holders (87) (80)Proceeds from credit facility 27,300 23,000 Repayments of notes payable (17,572) (20,869)Repurchase of common shares (1,510) (1,442)Payment of finance lease liability (9) (5)Net cash provided by (used in) financing activities 1,277 (5,365)Net increase in cash, cash equivalents and restricted cash 444 1,575 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) $15,814 $6,215 (1) For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below. Whitestone REIT and SubsidiariesCONSOLIDATED STATEMENTS OF CASH FLOWSSupplemental Disclosures(in thousands) Three Months Ended March 31, 2025 2024 Supplemental disclosure of cash flow information: Cash paid for interest $8,041 $8,160 Non cash investing and financing activities: Disposal of fully depreciated real estate $— $29 Financed insurance premiums $— $2,638 Value of shares issued under dividend reinvestment plan $25 $23 Value of common shares exchanged for OP units $55 $354 Change in fair value of cash flow hedge $(3,526) $5,007 Accrued capital expenditures $1,710 $1,962 Receivable from partnership redemption $— $31,643 March 31, 2025 2024 Cash, cash equivalents and restricted cash Cash and cash equivalents $5,586 $6,215 Restricted cash 10,228 — Total cash, cash equivalents and restricted cash $15,814 $6,215 Whitestone REIT and Subsidiaries RECONCILIATION OF NON-GAAP MEASURES(in thousands, except per share and per unit data) Three Months Ended March 31, 2025 2024 FFO (NAREIT) AND CORE FFO Net income attributable to Whitestone REIT $3,701 $9,340 Adjustments to reconcile to FFO: (1) Depreciation and amortization of real estate assets 9,300 8,768 Depreciation and amortization of real estate assets of real estate partnership (pro rata) (2) — 111 Loss on disposal of assets 100 — Gain on sale of properties — (6,525)Net income attributable to noncontrolling interests 47 124 FFO (NAREIT) $13,148 $11,818 Adjustments to reconcile to Core FFO: Proxy contest costs — 438 Core FFO $13,148 $12,256 FFO PER SHARE AND OP UNIT CALCULATION Numerator: FFO $13,148 $11,818 Core FFO $13,148 $12,256 Denominator: Weighted average number of total common shares – basic 50,890 49,940 Weighted average number of total noncontrolling OP units – basic 645 664 Weighted average number of total common shares and noncontrolling OP units – basic 51,535 50,604 Effect of dilutive securities: Unvested restricted shares 1,120 1,172 Weighted average number of total common shares and noncontrolling OP units – diluted 52,655 51,776 FFO per common share and OP unit – basic $0.26 $0.23 FFO per common share and OP unit – diluted $0.25 $0.23 Core FFO per common share and OP unit – basic $0.26 $0.24 Core FFO per common share and OP unit – diluted $0.25 $0.24 (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 period ended March 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 SubsidiariesRECONCILIATION OF NON-GAAP MEASURES (continued)(in thousands) Three Months Ended March 31, 2025 2024 PROPERTY NET OPERATING INCOME Net income attributable to Whitestone REIT $3,701 $9,340 General and administrative expenses 5,443 6,180 Depreciation and amortization 9,324 8,800 Deficit in earnings of real estate partnership (1) — 28 Interest expense 8,097 8,519 Interest, dividend and other investment income (100) (8)Provision for income taxes 127 119 Gain on sale of properties — (6,525)Loss on disposal of assets 100 — NOI of real estate partnership (pro rata) (1) — 183 Net income attributable to noncontrolling interests 47 124 NOI $26,739 $26,760 Non-Same Store NOI (2) (1,041) (1,459)NOI of real estate partnership (pro rata) (1) — (183)NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata) 25,698 25,118 Same Store straight-line rent adjustments (490) (1,114)Same Store amortization of above/below market rents (121) (214)Same Store lease termination fees (426) (268)Same Store NOI (3) $24,661 $23,522 (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 three months ended March 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 March 31, 2025 to the three months ended March 31, 2024, Non-Same Store includes properties acquired between January 1, 2024 and March 31, 2025 and properties sold between January 1, 2024 and March 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 March 31, 2025 to the three months ended March 31, 2024, Same Store includes properties owned before January 1, 2024 and not sold before March 31, 2025. Straight line rent adjustments, above/below market rents, and lease termination fees are excluded. Whitestone REIT and SubsidiariesRECONCILIATION OF NON-GAAP MEASURES (continued)(in thousands) Three Months Ended March 31, 2025 2024 EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) Net income attributable to Whitestone REIT $3,701 $9,340 Depreciation and amortization 9,324 8,800 Interest expense 8,097 8,519 Provision for income taxes 127 119 Net income attributable to noncontrolling interests 47 124 Deficit in earnings of real estate partnership (1) — 28 EBITDAre adjustments for real estate partnership (1) — 136 Gain on sale of properties — (6,525)Loss on disposal of assets 100 — EBITDAre $21,396 $20,541 (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 three months ended March 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 SubsidiariesRECONCILIATION OF NON-GAAP MEASURESInitial Full Year Guidance for 2025(in thousands, except per share and per unit data) Projected Range Full Year 2025 Low High FFO and Core FFO per diluted share and OP unit Net income attributable to Whitestone REIT $17,135 $19,219 Adjustments to reconcile to FFO Depreciation and amortization of real estate assets 36,781 36,781 Net income attributable to noncontrolling interests 242 268 FFO $54,158 $56,268 Adjustments to reconcile to Core FFO Adjustments — — Core FFO(1) $54,158 $56,268 Denominator: Diluted shares 52,084 52,084 OP Units 649 649 Diluted share and OP Units 52,733 52,733 Net income attributable to Whitestone REIT per diluted share $0.33 $0.37 FFO per diluted share and OP Unit $1.03 $1.07 Core FFO per diluted share and OP Unit (1) $1.03 $1.07 (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.

Whitestone REIT Reports First Quarter 2025 Results

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