Whitestone REIT Reports Second Quarter 2017 Results
- Annualized Base Rent Per Leased Square Foot in Wholly Owned Properties Grows 23% -
- Undepreciated Cost Basis Real Estate Assets Now Exceed $1.1 Billion -
- Net Income of $0.05 per Share -
- Funds from Operations ("FFO") of $0.22 per Share, FFO Core of $0.31 per Share -
- Updates 2017 Full Year Guidance -
HOUSTON, August 3, 2017 - Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced operating and financial results for the second quarter ended June 30, 2017. Whitestone acquires, owns, manages, develops and redevelops high quality “e-commerce resistant” neighborhood, community and lifestyle retail centers principally located in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone’s national, regional and local tenants provide daily necessities, needed services and entertainment not readily available online to the communities they serve.
All per share amounts presented in this news release are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.
Second Quarter 2017 Compared to Second Quarter 2016:
20.2% growth in revenues to $30.2 million
Net income attributable to Whitestone REIT of $2.0 million
18.7% growth in net operating income (“NOI”) to $20.3 million
4.5% same store NOI growth in wholly owned properties. 2.8% same store growth in all properties, including consolidated partnership properties ("non-core" legacy assets)
FFO was $8.5 million versus $7.0 million or $0.22 per diluted share versus $0.24
FFO Core was $11.6 million versus $9.2 million or $0.31 per diluted share versus $0.32
23% increase in annualized base rent in wholly owned properties to $18.93 per leased square foot
6.4% rental rate increase on new and renewal leases executed in wholly owned properties. (GAAP basis, Trailing twelve months)
89.8% occupancy in Whitestone wholly owned operating properties, 89.3% including development portfolio
“Our neighborhood centers, located on the best retail corners within our targeted high growth communities, continue to produce strong results as evidenced by our 4.5% same store NOI growth,” commented Jim Mastandrea, Chairman and Chief Executive Officer. “Our more than $275 million of accretive acquisitions that have closed over the last twelve months have enabled us to continue to gain efficiencies in our operating platform and overall cost structure; bring total undepreciated cost basis real estate assets to over $1.1 billion in book value; and increase year over year revenues by 20.2%. Our focus on e-commerce resistant retailers and daily essential services at our community centers speaks to the power and resilience of our business strategy. Our differentiated model and highly targeted accretive acquisitions position Whitestone to perform well through consumer spending cycles and maximize long-term shareholder value.”
Real Estate Portfolio Update
Community Centered PropertiesTM Portfolio Statistics:
As of June 30, 2017, Whitestone wholly owned 58 Community Centered PropertiesTM with 5.0 million square feet of gross leasable area ("GLA"). The portfolio comprises 30 properties in Texas, 27 in Arizona and one in Illinois. Whitestone’s retail Community Centered PropertiesTM are located in Austin (4), San Antonio (3), Dallas-Fort Worth (6), Houston (17) and the greater Phoenix metropolitan area (27). In addition to being business friendly, these are five of the top markets in the country in terms of size, economic strength and population growth. Between 2000 and 2014, all of these cities experienced double-digit growth in population, with Austin at +35.8%, San Antonio at +23.4%, Dallas-Fort Worth at +20.5%, Phoenix at +15.8% and Houston at +13.2%.
The Company’s retail properties in these markets are located on the best retail corners embedded in affluent communities. The Company also owns a majority interest in and manages 14 properties containing 1.5 million square feet of GLA through its investment in Pillarstone Capital REIT Operating Partnership L.P.
The following information was filed by Whitestone Reit (WSR) on Wednesday, August 2, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.