Whitestone Reit · NYSE:WSR
Whitestone Reit — Q3 2024 Earnings Presentation
21 slides from Whitestone Reit's earnings presentation, Oct 31, 2024
Slide 1: Connecting Community and Convenience: Earnings Presentation Q3 2024
CONNECTING COMMUNITY AND CONVENIENCE E ARNI N G S PRE SE NT ATI O N Q3 2024
Slide 2: WSR at a Glance
WSR AT A GLANCE 55 4.9 M SF 94.1% WSR Competitive Strengths Properties Total GLA Occupancy ➢ High Quality Portfolio 1,466 +4.9% $23.65 ➢ Exposure to High Growth Sun Belt Markets 2024 YTD PSF Annual ➢ Diversified and Granular Tenant Base Total Tenants SS NOI Growth Base Rent ➢ Strong SS NOI Growth Tr
Slide 3: Improving Metrics Across the Board
IMPROVING METRICS ACROSS THE BOARD Strong Results Driven By A Consistent Strategy Annual Net Core FFO Ratio of Debt Same Store Leasing Revenue Effective to Pro Forma NOI (1) Occupancy Spreads ($’s in millions) Per Share (1) Average Base EBITDAre (1) ($’s in millions) (Straight Line) Rent (“ABR”) +14
Slide 4: Whitestone's Growth Differentiators
WHITESTONE’S GROWTH DIFFERENTIATORS ➢ Disciplined, operationally focused management team ➢ 92% community / neighborhood / strip centers configured with high-demand 1,500 – 3,000 sq ft spaces ➢ Portfolio 100% in growing, low regulation states: TX & AZ ➢ Veteran leasing team, trained in utilizing tech
Slide 5: Highest Concentration of Strip / Community / Neighborhood Centers Within the Peer Group
HIGHEST CONCENTRATION OF STRIP / COMMUNITY / NEIGHBORHOOD (1) CENTERS WITHIN THE PEER GROUP PECO ROIC REG IVT BRX 8% 8% 17% 13% 24% 14% 28% 34% 40% 36% 39% 35% 56% 31% 56% 29% 41% 40% 37% UE KRG KIM FRT AKR SITC 7% 11% 9% 11% 17% 15% 20% 9% 10% 18% 32% 23% 44% 17% 45% 36% 29% 46% 35% 28% 59% 30% 22%
Slide 6: Higher SS NOI Growth with Lower Capex
HIGHER SS NOI GROWTH WITH LOWER CAPEX Over the last 5 years, Whitestone used less capital v peers while outperforming on SS NOI growth (1) Capital Expenditures (incl. Redev.) by REIT (% of NOI ‘19 – ’23) 45% 40% 38% 2% 35% 33% 8% 1% 30% 2% 29% 3% 26% 25% 7% 9% 2% 23% 10% 1% 20% 20% 20% 20% 2% 1% 19%
Slide 7: TAP Scores – Reflecting the Strength of Our Portfolio
TAP SCORES – REFLECTING THE STRENGTH OF OUR PORTFOLIO Green Street Trade Area Power Scores 100% 90% 85.4 82.2 81.7 80% 80.2 75.7 74.4 74.3 73.7 73.2 Center Type Percentage (% of NOI) 70% 70.8 65.9 60% 59.3 56.0 50% 40% 30% 20% 10% 0% FRT AKR WSR REG SITC ROIC UE IVT CURB KIM KRG BRX PECO Neighborhoo
Slide 8: Consistent Performance Drivers
CONSISTENT PERFORMANCE DRIVERS Occupancy Leasing Spreads 96% 30% 94.2% 25.3% 94.1% 24.4% 94% 93.7% 93.3% 93.6% 93.5% 25% 23.5% 21.8% 92.7% 92.7% 20.8% 92.5% 19.2% 18.7% 20% 17.4% 17.0% 17.5% 92% 91.3% 91.0% 91.5% 14.9% 89.9% 89.9% 15% 13.1% 90% 10.1% 88.7% 10% 7.8% 6.8% 88% 5% 86% 0% Q1 Q2 Q3 Q4 Q1
Slide 9: Positive Dynamics in WSR Markets
POSITIVE DYNAMICS IN WSR MARKETS (1) Q2 2024 Vacancy Rates National Strip Center Supply Growth (2) (as a % of existing stock) 3.0% 2.5% 2.0% LT Average 1.5% = 1.4% 1.0% 0.5% 0.0% Whitestone Markets 3 Mile Radius Avg Household Income (3) $160 $150 $140 $131k Peer Avg $130 $120 $110 $100 $90 $80 FRT R
Slide 10: Specializing in High Demand Smaller Spaces
SPECIALIZING IN HIGH DEMAND SMALLER SPACES Breakdown of Large Space ABR Breakdown of Small Space ABR Tenants 10,000+ Sq FT Tenants Under 10,000 Sq FT 25% of Total ABR 75% of Total ABR Other Other 12% 11% Pet Services 3% Pet Services Non Retail Wireless 3% 3% Grocery 3% 28% Restaurants & Food Educati
Slide 11: Asset Recycling: Enhancing Growth
ASSET RECYCLING: ENHANCING GROWTH Scottsdale Commons (Apr 2024) Garden Oaks (Feb 2024) Arcadia (Jun 2023) Acquisitions Square Feet 69,482 Square Feet 106,828 Square Feet 69,503 Occupancy 96.6% Occupancy 95.8% Occupancy 100% ABR PSF $24.55 ABR PSF $17.56 ABR PSF $26.29 (1) Avg One Mile HHI $132k Avg
Slide 12: Reiterating 2024 Core FFO / Share Guidance
REITERATING 2024 CORE FFO / SHARE GUIDANCE Targeting 11% Core FFO / Share Growth (at the midpoint) 2023 > 2024 Core FFO / Share Guidance Walk $0.06 $1.05 Core FFO/Share $0.01 Target $0.98 - $1.04 $1.00 $0.08 $0.03 $0.95 $1.01 $0.90 $0.91 $0.85 $0.80 2023 Core FFO/Share (1) SS NOI Growth Other (2) G&
Slide 13: Current Debt Profile
CURRENT DEBT PROFILE Debt Maturities ➢ $515 MM Credit Facility Amended and Extended in $300 September 2022 $250 (2) ▪ $250 MM Revolver Expiring 9/16/2026(1) $200 (1) In Millions ▪ $121 MM Currently Undrawn(2) $150 ▪ $265 MM Term Loan due 2028(2) $100 Unsecured ➢ Weighted- Average Debt Credit Interes
Slide 14: Appendix
APPENDIX THI RD QUAR TE R 2021
Slide 15: 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 16: FFO and Core FFO Reconciliation
FFO AND CORE 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 cer
Slide 17: 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 18: EBITDAre and Debt/EBITDAre Reconciliation
EBITDAre AND DEBT/EBITDAre RECONCILIATION Whitestone REIT and Subsidiaries RECONCILIATION OF NON-GAAP MEASURES (continued) (in thousands) Three Months Ended: Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Jun 202330 2024 2024 Dec 312024 S
Slide 19: 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 20: 5-Year SS NOI Reconciliation
5-YEAR SS NOI RECONCILIATION Whitestone REIT and Subsidiaries RECONCILIATION OF NON-GAAP MEASURES (continued) (in thousands) Year Ended December 31, Year Ended December 31, Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 2022 2021 2021 2020 2020 2019 2019 2018 PROPE
Slide 21: 2024 Core FFO/Share Guidance Reconciliation
2024 CORE FFO/SHARE GUIDANCE RECONCILIATION Please refer to slide 16 for details on FFO/Share and Core FFO/Share. Grapes & Grains Opening: Lakeside Market Bank of the Orient Opening: Williams Trace Monkee’s Opening: Lake Woodlands Sun Wing Opening: Lion Square 21