Whitestone Reit · NYSE:WSR
Whitestone Reit — Q3 2023 Earnings Presentation
19 slides from Whitestone Reit's earnings presentation, Nov 1, 2023
Slide 1: Connecting Community and Convenience
CONNECTING COMMUNITY AND CONVENIENCE E ARNI N G S PRE SE NT ATI O N Q3 2023
Slide 2: Improving Metrics Across the Board
IMPROVING METRICS ACROSS THE BOARD Strong Results Driven By A Consistent Strategy (1) Annual Net FFO Ratio of Debt Same Store Leasing Revenue Effective to Pro Forma NOI (2) Occupancy Spreads ($’s in millions) Per Share (2) Average Base EBITDAre (2) ($’s in millions) (Straight Line) Rent (“ABR”) Impr
Slide 3: Leading SS NOI Growth
LEADING SS NOI GROWTH (1) 2022 SS NOI Growth 7.9% 7.7% 8% 6.6% 6% 5.1% 4.5% 4.4% 4% 2.9% 2.9% 2% 0.8% 0% WSR FRT BRX KRG PECO KIM UE REG SITC (1) 2023 Guidance SS NOI Growth Midpoint 5% 4.1% 4% 3.5% 3.5% 3.0% 3.0% 3% 2.0% 2% 1.5% 1.5% 1.3% 1% 0% PECO WSR KRG FRT BRX UE KIM SITC REG WSR Success Facto
Slide 4: Operational Performance Drivers
OPERATIONAL PERFORMANCE DRIVERS Occupancy Leasing Spreads 96% 30% 23.5% 24.4% 93.7% 25% 94% 93.3% 20.8% 92.5% 92.7% 92.7% 19.2% 18.7% 20% 17.4% 92% 91.3% 91.0% 91.5% 14.9% 15% 13.1% 89.9% 89.9% 90% 10.1% 88.7% 10% 7.8% 6.8% 88% 5% 0.0% 86% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 5: Sun-Belt Properties in Major MSAs
SUN-BELT PROPERTIES IN MAJOR MSAs Phoenix: 42%(1) Houston: 25%(1) Austin/San Antonio: 15%(1) Dallas/Fort Worth: 18%(1) Top 10 U.S. MSAs - Ranked by Number of New Residents(2) MSA 2019 Population 2022 Population Delta % Change Dallas-Fort Worth-Arlington 7,637,361 7,943,685 306,324 +4.0% Houston-The
Slide 6: Best Neighborhoods in Target Markets
BEST NEIGHBORHOODS IN TARGET MARKETS Phoenix: 17% Above MSA ABR PSF (1) Dallas: 30% Above MSA ABR PSF (1) ➢ Great locations equate to Whitestone properties delivering higher rents in each Metropolitan Statistical Area ➢ High-growth, high-income Austin: 11% Above MSA ABR PSF (1) Houston: 21% Above MS
Slide 7: Portfolio Designed for High Quality Revenue
PORTFOLIO DESIGNED FOR HIGH QUALITY REVENUE Strong Tenants Well Designed Leases ➢ Tenants with proven business models ➢ In-house, regional leasing teams handle and poised for growth all leasing ➢ Heavy neighborhood research ➢ Shorter duration: 3-to-5-year terms conducted for both acquisitions and ➢
Slide 8: Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS Lake Woodlands (Dec 2022) Arcadia (Jun 2023) Acquisitions Square Feet 60,246 Square Feet 69,503 Occupancy 94% (1) Occupancy 100% ABR PSF $35.40 ABR PSF $26.29 Avg One Mile HHI $189k Avg One Mile HHI $136k Major Traffic Driver Across from H.E.B. Major Traffic Driver Acro
Slide 9: Litigation Update
LITIGATION UPDATE Pillarstone Poison Pill Termination for Cause: Compensation Status Trial Completed July 18th Preparation Ongoing Venue Delaware Texas Judge Ruling Anticipated Late 2023 Trial Scheduled Dec 2023 Timeline Monetization later in 2024 (Ruling to be provided by Jury) WSR Position Plainti
Slide 10: Reiterating 2023 FFO / Share Guidance Initiated Last Quarter
REITERATING 2023 FFO / SHARE GUIDANCE INITIATED LAST QUARTER 2022 > 2023 FFO / Share Original Guidance Walk FFO/Share $1.10 $0.02 $0.01 $0.00 Target $0.06 $0.04 Comp Benefit (1) $0.95 - $0.99 $1.00 $0.11 $0.90 $0.80 $0.99 $0.97 $0.70 $0.60 (2) (3) (4) 2022 FFO / Share SS NOI Growth G&A Other Equity
Slide 11: Current Debt Profile
CURRENT DEBT PROFILE Debt Maturities ➢ $515 MM Credit Facility Amended and Extended in $300 September 2022 $250 ▪ $250 MM Revolver Expiring 9/16/2026(1) $200 (1) In Millions ▪ $112.5 MM Currently Undrawn $150 ▪ $265 MM Term Loan due 2028 $100 Unsecured ➢ Weighted- Average Debt Credit Interest Rate:
Slide 12: Key Takeaways
KEY TAKEAWAYS ➢ Whitestone’s differentiated approach: ▪ All in-house leasing team specialized in service-oriented tenants and capable of achieving peer-leading occupancy in the ≤10k sq ft category ▪ Sun-belt located centers in growing, high-income neighborhoods ▪ 93% triple-net leases with a weighte
Slide 13: Appendix
APPENDIX THI RD QUAR TE R 2021
Slide 14: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward looking statements within the meaning of Section 27 A of the Securities Act of 1933 as amended, and Section 21 E of the Securities Exchange Act of 1934 as amended. Forward looking statements provide our current expectations or forecasts o
Slide 15: FFO Reconciliation
FFO RECONCILIATION FFO: Funds From Operations: The National Association of Real Estate Investment Trusts (“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 est
Slide 16: EBITDAre and Debt/EBITDAre Reconciliation
EBITDAre AND DEBT/EBITDAre RECONCILIATION 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
Slide 17: EBITDAre and Debt/EBITDAre Reconciliation
EBITDAre AND DEBT/EBITDAre RECONCILIATION Whitestone REIT and Subsidiaries RECONCILIATION OF NON-GAAP MEASURES (continued) (in thousands) Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Three Jun Months 30 Ended: Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 2023Dec 31 2023 Sept 30 2023 Jun 30 2022 2022 Mar 31 2022 Dec
Slide 18: NOI and SS NOI Reconciliation
NOI AND SS NOI RECONCILIATION 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 taxe
Slide 19: 2023 FFO/Share Guidance Reconciliation
2023 FFO/SHARE GUIDANCE RECONCILIATION 19