Whitestone Reit · NYSE:WSR
Whitestone Reit — Q2 2025 Earnings Presentation
29 slides from Whitestone Reit's earnings presentation, Jul 31, 2025
Slide 1: Q2 2025 Earnings Presentation
Whitestone REIT Q2 2025 Earnings Presentation Industry Leaders in High- Value Shop Space
Slide 2: The Value of Shop Space
The Value of Shop Space “Shop Spaces” are the smaller spaces within centers, often in the high-demand 1,500 – 3,000 square foot range that suit regional or local service-based tenants Higher Growth More Durable Cash Flows ➢ Whitestone’s underwriting assesses the full strength ➢ Shop Spaces command h
Slide 3: Whitestone's Success Formula
Whitestone’s Success Formula Acquire High Total Return Potential Centers: Whitestone acquires centers with the team’s core capabilities in mind (see slides 9 & 10 for details) Anchor Centers To The Community: Whitestone team members are data centric, utilizing ESRI and Placer.ai to determine demand
Slide 4: Single Slide Whitestone Summary
Single Slide Whitestone Summary 5.1% 94.1% 7.1x 11% 9.1% 2024 Highlights Same Store NOI (1) Occupancy Debt / EBITDAre (2) Core FFO/Share (3) Dividend Growth Growth Up 280 Basis Points 2.0x Improvement Growth 6.5% CAGR 5.3% Avg Since 2021 Since 2021 Versus 2021 5.5% CAGR Since 2021 Q1 2021 – Q1 2025
Slide 5: Driving Long-Term Shareholder Value
Driving Long-Term Shareholder Value Anchoring centers with a high percentage of shop space to the community provides enhanced growth and more durable cash flows ➢ Leverage Whitestone’s Leadership position in high-value shop space to (1) deliver consistent Core FFO growth of 4 – 6%, matched by sustai
Slide 6: Sustainable Same Store NOI Drivers
Sustainable Same Store NOI Drivers Forecasting 3 – 5% Sustainable Same Store NOI Growth Contractual escalators 2.3% ≤10k sq ft: 2.8%, >10k sq ft: 1.7%, blended: 2.3% Leasing: New and Renewal + 0.8% to 1.8% Redevelopment Up to + 1.0% 6
Slide 7: Leasing Activity – Driving SS NOI Growth
Leasing Activity – Driving SS NOI Growth Whitestone’s SS NOI Growth Projection Using Historical Performance Cash Leasing Spreads 2022 - 2024 16% 14% 12% 10% 9.2% Average 8% 6% 4% 2% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 x $77.5 MM Expiring Ba
Slide 8: Redevelopment: Efficiently Driving SS NOI Higher
Redevelopment: Efficiently Driving SS NOI Higher ➢ Redevelopment capital is spent when it complements Lion Square Rendering changes in the surrounding neighborhood (demographic or development) and with an identified NOI benefit ➢ Whitestone focuses heavily on ensuring redevelopment efforts do not in
Slide 9: Driving Returns via Accretive Acquisitions
Driving Returns via Accretive Acquisitions Whitestone’s Markets Business Friendly States (Sunbelt) High Shop Space Centers: Grocery agnostic (limiting competitors), not agnostic on configuration Whitestone’s Data Driven Acquisition Filter High Total Return Potential Upwardly Mobile Demographic Stron
Slide 10: Driving Returns: Acquisitions / Dispositions
Driving Returns: Acquisitions / Dispositions Acquisition Purchase ABR Per Gross Acquisitions Location Date Cap Rate (1) Leased Leasable SF TAP Score Notes S Hulen Ft Worth Q2 2025 6.7% $31.00 86,907 80 Major Area Development Anticipated San Clemente Austin Q2 2025 6.4% $29.04 31,832 85 Protected Ret
Slide 11: What Are The Key Components To High Return Shop Space?
What Are The Key Components To High Return Shop Space? Spaces that deliver for the tenants: Spaces that allow tenants to maximize their revenue by allowing them to take advantage of online branding and by exposing them to a center’s other high-traffic tenants Spaces that deliver for the community: W
Slide 12: 2nd Highest Shop Space Percentage Within Peer Group
2nd Highest Shop Space Percentage Within the Peer Group 77% of Whitestone’s Total ABR Driven By Small Shop Space Breakdown of Large Space ABR Breakdown of Small Space ABR Tenants 10,000+ Sq FT Tenants Under 10,000 Sq FT 23% of Total ABR 77% of Total ABR Other 8% Other 9% Pets 3% Grocery 2% Pets 3% M
Slide 13: Delivering Results With Less Capex
Delivering Results With Less Capex Whitestone has used less capital v peers while outperforming on SS NOI growth Capital Expenditures (incl. Redev.) by REIT (1) 40% 37% (% of NOI ‘20 – ’24) 2% 34% 35% 1% 2% 30% 8% 28% 25% 10% 3% 25% 23% 6% 4% 22% 2% 19% 19% 19% 19% 20% 2% 18% 10% 1% 5% 2% 2% 3% 15%
Slide 14: Driving The Value of Our Real Estate Higher
Driving The Value of Our Real Estate Higher Green Street Trade Area Power Scores 100% 90% 84.0 82.8 80% 80.8 79.6 77.1 Center Type Percentage (% of NOI) 75.5 75.2 72.2 70% 70.3 68.3 60% 58.7 57.8 50% 40% 30% 20% 10% 0% FRT AKR WSR REG SITC IVT CURB UE KIM KRG BRX PECO Neighborhood / Community Strip
Slide 15: Risk: Robust Underwriting Proven In Pandemic
Risk: Robust Underwriting Proven In Pandemic ➢ Whitestone engages in an extremely robust underwriting process ▪ Beyond credit, Whitestone assesses the strength of the business, the demand trajectory and the ability of the business to meet that demand ▪ Whitestone often requires a higher percentage o
Slide 16: Reiterating 2025 Guidance: Sustainable Earnings Growth
Reiterating 2025 Guidance: Sustainable Earnings Growth 2023 > 2025 Core FFO / Share $0.02 Core $1.10 FFO/Share $0.07 Target $0.01 $1.03 - $1.07 $0.03 $0.03 $1.05 $0.01 $0.02 $0.02 $0.01 $1.01 $0.09 $0.02 $1.00 $0.01 $0.95 $0.91 $0.90 $0.85 $0.80 2023 Core SS NOI Non SS Term Fees G&A Interest Other 2
Slide 17: Debt / EBITDAre Driven Down Since 2020
Debt / EBITDAre Driven Down 3 Turns Since 2020 ➢ $515 MM Credit Facility Amended and Extended in Debt Maturities $300 September 2022 $250 ▪ $250 MM Revolver Expiring 9/16/2026(1) (1) $200 ▪ $69 MM Currently Undrawn In Millions $150 ▪ $265 MM Term Loan due 2028 Unsecured $100 ➢ Weighted Average Inter
Slide 18: Supply/Demand Fundamentals Support Whitestone Markets
Supply/Demand Fundamentals Support Whitestone Markets 5-Year Forward Job Growth(3) ➢ WSR markets show an estimated 5yr job growth CAGR of 1.8% 1.1%, compared to the U.S. average of 0.7% 1.5% ➢ Strip centers’ foot traffic, when compared to ‘19 levels, 1.2% leads the pack among other retail formats(1)
Slide 19: Appendix
WO WHITESTONE REIT WSR NYSE Appendix
Slide 20: Redevelopment: Boosting 2026+ SS NOI Growth
Redevelopment: Boosting 2026+ SS NOI Growth • Capitalize on recent 60% traffic boost with EoS Fitness opening in 2024 Williams Trace • Ability to leverage Sugarland’s growth as a hub for advanced manufacturing, biotech, financial services and energy technology • Redevelopment will improve walkways,
Slide 21: Redevelopment: Boosting 2026+ SS NOI Growth
Redevelopment: Boosting 2026+ SS NOI Growth • Capitalize on Austin’s thriving high-tech community growth and surrounding luxury master-planned communities Davenport • Recently signed Starbucks Reserve and fitness leader Pvolve • Major opportunity to add high-return restaurants that will plug into gr
Slide 22: 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 23: Q2 FFO And Core FFO Reconciliation
Q2 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
Slide 24: Multi-Year Core FFO / Share Reconciliation
Multi-Year Core FFO / Share Reconciliation RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share and unit data) Year Ended December 31, 2024 2023 2022 2021 FFO (NAREIT) AND CORE FFO Net income attributable to Whitestone REIT $ 36,893 $ 19,180 $ 35,270 $ 12,048 Adjustments to reconcile
Slide 25: 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 deprecia
Slide 26: Multi-Year EBITDAre and Debt / EBITDAre Reconciliation
Multi-Year EBITDAre and Debt / EBITDAre Reconciliation Whitestone REIT and Subsidiaries RECONCILIATION OF NON-GAAP MEASURES (continued) (in thousands) Three Months Ended: Dec 31 LTM SeptQ2 30 31-Dec Jun 30 31-Dec Mar 31 31-Dec 31-Dec Dec 31 31-Dec Sept 30 31-Dec Jun 30 Dec 31 Mar 31 2022 2025 2022 2
Slide 27: 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 28: Multi-Year SS NOI Reconciliation
Multi-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, Year Ended December 31, 2024 2023 2023 2022 2022 20
Slide 29: 2025 Core FFO/Share Guidance Reconciliation
2025 Core FFO/Share Guidance Reconciliation Please refer to slide 23 for details on FFO/Share and Core FFO/Share. 29