Yahoo Finance Whitestone REIT Q1 2024 Earnings: Strong Performance with Revenue and FFO Growth
Core Funds from Operations (FFO): Reported at $12.3 million, slightly above the $12.1 million estimate.
FFO per diluted share: Decreased to $0.23 from $0.24 in the same quarter the previous year.
Occupancy rates: Increased to 93.6% from 92.7% year-over-year.
Annualized base rent per square foot: Rose by 7% year-over-year to $23.83.
Leasing activity: New leases signed increased by 31% compared to Q1 2023, with new lease term revenue rising to $7.8 million from $6.2 million.
Dividend: Quarterly cash distribution increased by 3.13% from the previous quarter to $0.12375 per common share and OP unit.
2024 Full Year Guidance: Net income attributable to Whitestone REIT expected to be between $21.56 million and $24.56 million, up from the previous guidance of $16.6 million to $19.6 million.
On May 1, 2024, Whitestone REIT (NYSE:WSR) disclosed its first quarter results for 2024, emphasizing its robust operational performance and strategic financial positioning. The detailed earnings report can be accessed through Whitestone's 8-K filing. Whitestone, a real estate investment trust known for its community-centered retail centers in high-growth markets, reported a strong quarter with significant improvements in leasing spreads and occupancy rates.
Company Overview
Whitestone REIT specializes in acquiring, managing, and redeveloping open-air shopping centers primarily located in the Sunbelt regions of the United States. These properties are strategically positioned in metropolitan areas with high household income, contributing to the REIT's stable rental revenue streams. The company's portfolio includes a mix of retail and office/flex properties spread across Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix, and San Antonio.
Q1 2024 Performance Highlights
For the first quarter of 2024, Whitestone reported a Core Funds from Operations (FFO) of $12.3 million, slightly up from $12.1 million in the same quarter the previous year. However, FFO per diluted share saw a slight decrease to $0.23 from $0.24 year-over-year. Notably, the company's portfolio occupancy improved to 93.6% from 92.7% in Q1 2023, reflecting effective property management and tenant retention strategies.
Leasing activity was particularly strong, with GAAP leasing spreads increasing by 26% on new leases and 15% on renewals. The annualized base rent per square foot rose by 7% year-over-year to $23.83, indicating healthy demand and pricing power in its markets. Whitestone also signed 31% more leasing square footage compared to the first quarter of 2023, underscoring the company's robust operational execution.
Financial Position and Future Outlook
Whitestone's balance sheet remains solid, with a strategic focus on maintaining financial flexibility. The REIT declared a quarterly cash distribution of $0.12375 per share, marking a 3.13% increase from the previous quarter. Looking ahead, Whitestone updated its full-year 2024 guidance, projecting a net income attributable to common shareholders in the range of $21.56 million to $24.56 million, and maintaining its Core FFO guidance at $50.985 million to $53.985 million.
The company's proactive management and strategic market positioning are expected to continue driving growth and shareholder value. With the majority of its debt maturities not due until 2027, Whitestone is well-positioned to navigate economic fluctuations and capitalize on growth opportunities in its key markets.
Investor and Analyst Perspectives
Analysts' expectations for the quarter were closely aligned with the reported results, with estimated earnings per share of $0.07 and net income of $3.50 million. The actual performance reflects a well-managed REIT capable of sustaining growth and maximizing shareholder value through strategic asset management and market positioning.
As Whitestone continues to execute its business strategy effectively, the REIT is poised for continued success in 2024, supported by strong fundamentals in the commercial real estate markets of the Sunbelt region. Investors and stakeholders can look forward to Whitestone's sustained performance as it leverages its market expertise and strategic initiatives to navigate the evolving real estate landscape.
For further details on Whitestone REIT's financial performance and strategic initiatives, interested parties are encouraged to review the full earnings release and participate in the upcoming earnings call scheduled for May 2, 2024.
Explore the complete 8-K earnings release (here) from Whitestone REIT for further details.
This article first appeared on GuruFocus.
