REPORTS SECOND QUARTER 2020 RESULTS & PROVIDES COVID-19 UPDATE
Houston, Texas, August 5, 2020 - Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the second quarter of 2020 along with an update on its business activities due to the ongoing COVID-19 pandemic. Whitestone is a community-centered retail REIT that 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 optimal mix of national, regional and local tenants provide daily necessities, needed services and entertainment to their respective communities which are not readily available online.
All per share amounts are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.
Second Quarter Operating and Financial Highlights:
•Net Income attributable to common shareholders for the quarter ended June 30, 2020 was $0.4 million, or $0.01 per diluted share
•Funds from Operations (“FFO”) was $8.4 million, or $0.19 per share
•FFO Core was $9.6 million or $0.22 per share
•Rental rates on comparable new and renewal leases signed for the twelve months ended June 30, 2020 increased 6.7% and 12.4%, respectively, on a GAAP basis
•Same-store Net Operating Income decreased 7.9% and 4.4% for the three and six month periods, respectively
•Paid quarterly dividend of $0.105 per share
COVID-19 Update Summary (as of August 3, 2020)
•All 53 community centers are open and have remained open throughout the pandemic
•94% of total tenants are open and operating (based on ABR)
•81% of total Q2 2020 contractual rents have been collected
•86% of total July contractual rents have been collected to date
•Entered into rent deferral agreements representing 5% of Q2 2020 revenue
•Entered into rent deferral agreements representing 2% of July revenue
•Grew cash and cash equivalents to $45.0 million, a $8.2 million, or 22.3% increase since Q1-2020
•Bad debt/uncollectable revenue for the quarter was $2.8 million, or $0.07 per share, primarily due to COVID-19 pandemic and included $500,000 or $0.01 per share non-cash straight line receivables
Jim Mastandrea, Chairman and Chief Executive Officer of Whitestone REIT commented, “Our properties continue to perform well as our service-focused, community-centered tenants pursue creative ways to serve their local neighborhoods. We continue to support our entrepreneurial tenants as they persevere through these uncertain times. We also continue to demonstrate the resiliency of our portfolio as demonstrated by our strong rental collections. Our results underscore our entrepreneurial tenants’ sustainability through tough times and Whitestone’s ability to craft the right mix of tenants to serve the needs of our high household income neighborhoods in the high growth markets of Texas and Arizona. To date, we have seen minimal store closings in our diverse tenant mix and believe that Whitestone, our tenants and our communities will emerge stronger than ever as the pandemic subsides.”
Mr Mastandrea added, “Our focus continues to be on protecting the health of our employees, tenants and the communities that we serve. As local economies recover, we plan to build on the progress we demonstrated in the beginning of the year in our continuing efforts to position the Company to drive long term shareholder value.”
Reconciliations of Net Income Attributable to Whitestone REIT to FFO and FFO Core are included herein.
Net Income attributable to common shareholders for the quarter ended June 30, 2020 of $0.4 million, or $0.01 per diluted share, inclusive of $2.8 million, or $0.07 per share, related to credit loss and straight-line rent reserve, primarily due to the impact of the COVID-19 pandemic. Net income attributable to common shareholders for the quarter ended June 30, 2019 was $3.3 million, or $0.08 per share.
The following information was filed by Whitestone Reit (WSR) on Wednesday, August 5, 2020 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.