Core FFO per Share: Increased by 5.4% year over year to $0.26 for the quarter and $0.51 for the six months.

Occupancy Rate: Grew 100 basis points sequentially from Q1 to 93.9%.

Average Base Rent per Lease Square Foot: Increased by 5.3% year over year.

Same Store NOI Growth: 2.5% for the quarter and 3.9% for the six months.

Leasing Spreads: 17.9% for the quarter, with new leases at 41.4% and renewals at 15.2%.

Property Transactions: Acquisitions totaled $153 million and dispositions approximately $126 million since Q4 2022.

Debt to EBITDA: Improved to 7.2 times from 7.8 times year over year.

Cash and Credit Facility: $5.3 million in cash and $69 million available under the credit facility at the end of the quarter.

Dividend Payout: Approximately 50% of FFO, with plans to grow in conjunction with earnings growth.


Positive Points

Whitestone REIT (NYSE:WSR) reported a 5.4% year-over-year increase in core FFO per share, demonstrating strong financial performance.

The company achieved a 100 basis point sequential increase in occupancy from Q1, reaching 93.9%.

Whitestone REIT (NYSE:WSR) successfully executed two strategic acquisitions in high-growth markets, enhancing its portfolio.

The company is on track to meet its 2025 full-year guidance, reaffirming its core FFO per share and same-store NOI growth targets.

Whitestone REIT (NYSE:WSR) has a robust capital recycling program, with $153 million in acquisitions and $126 million in dispositions since Q4 2022, strengthening its portfolio.


Negative Points

Interest expenses have increased slightly due to acquisitions preceding dispositions, impacting financial performance.

The anticipated benefits from new tenants like Pickler are expected to be minimal in the current year due to early concession periods.

The company faces tough comparisons in the upcoming quarters, which may challenge its ability to meet forecasts.

Whitestone REIT (NYSE:WSR) has a relatively high debt to EBITDA ratio, although it has improved from the previous year.

The timing of acquisitions and dispositions may affect leverage and financial flexibility in the short term.


Q & A Highlights

Q: What gives you confidence in meeting your forecast for the back part of the year despite tough comps? A: David K. Holeman, CEO, explained that detailed forecasting and tenant activities, such as increasing occupancy by 100 basis points from Q1, contribute to future same-store NOI growth. Scott Hogan, CFO, added that large tenants under contract are in free rent periods, which will positively impact future quarters.

Q: Will the Pickler contribute to the second half of the year's performance? A: David K. Holeman, CEO, stated that Pickler is expected to commence in the back half of the year, but early concession periods mean minimal impact on same-store NOI this year. However, future quarters will see significant contributions from such activities.

Q: Can you provide more details on the $40 million of acquisitions and dispositions? A: David K. Holeman, CEO, mentioned that they are actively evaluating properties for value and opportunities. They have several activities underway and expect to achieve around $40 million in acquisitions and dispositions, continuing their strategy of upgrading the portfolio.

Q: What is the upside potential in the two acquisitions announced in the second quarter? A: David K. Holeman, CEO, highlighted the quality of neighborhoods and locations for both acquisitions in Fort Worth and Austin. These areas have strong household incomes and traffic growth, with opportunities to improve rents and tenant mix, leveraging their model to enhance property value.

Q: How are leasing spreads trending, and what are the expectations for the second half of the year? A: J. Scott Hogan, CFO, noted that new leases are coming in at higher rents, while renewal leasing spreads are slightly down but with lower tenant improvement and leasing commission costs. Overall, leasing spreads are expected to remain strong, with the second half typically being a stronger leasing season.

Whitestone REIT (WSR) Q2 2025 Earnings Call Highlights: Strong Financial Performance and ...

Whitestone REIT (NYSE:WSR) reported a 5.4% year-over-year increase in core FFO per share, driven by strong occupancy growth, strategic acquisitions, and disciplined capital management. The company achieved a 100 basis point sequential increase in occupancy to 93.9%, with $153 million in acquisitions and $126 million in dispositions since Q4 2022. While facing challenges like elevated interest expenses and high debt-to-EBITDA ratios, the REIT reaffirmed its 2025 guidance and highlighted opportunities in high-growth markets.