Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today
announced its operating and financial results for the third quarter
of 2021. Whitestone creates neighborhood center communities in its
high-quality open-air shopping centers that it acquires, owns,
manages, develops, and redevelops primarily in the largest,
fastest-growing, high-household-income markets in the Sunbelt.
“Our third quarter results mark another
successive quarter of improving performance for Whitestone’s
operations, which were driven by our expansion in occupancy and
strong leasing and the progress that we are making on our long-term
targets of reducing debt and scaling
G&A. Our strategic choice to be in
business-friendly, high-growth markets continues to yield positive
performance, evidenced by growth in NOI, ABR and leasing spreads.
With the reactivation of our growth plan through our recent
acquisition in Texas, we are actively vetting our pipeline of
potential future acquisitions to strategically expand our portfolio
with high-quality properties that meet our robust
criteria. Bottom line, we are pleased to
demonstrate continued improvement in our quarterly and long-term
results, and we remain laser focused on continuing to strengthen
these key performance pillars to continue building long-term value
for all of our stakeholders.”
— Jim Mastandrea, Chairman and Chief
Executive Officer
Financial Summary:All per share
amounts are on a diluted per common share and operating partnership
(“OP”) unit basis unless stated otherwise.
- Net Revenues of $32.4 million and
$92.1 million in the three and nine months ended September 30,
2021, respectively.
- Net Income attributable to common
shareholders of $0.06 and $0.21 per share in the three and nine
months ended September 30, 2021, respectively.
- Funds from Operations ("FFO") Core
of $0.25 and $0.75 per share in the three and nine months ended
September 30, 2021, respectively.
- General and Administrative
Expenses, as a percentage of revenue, of 16.4% for the nine months
ended September 30, 2021. This compares to 16.9% for the year ended
December 31, 2020 (1).
- Net debt to EBITDAre-Adjusted
improved to 8.1X for the quarter ended September 30, 2021. This
compares to 9.4X for the quarter ended September 30, 2020.
- Same-Store Net Operating Income
("NOI") of $20.7 million for the three months ended September 30,
2021, representing an increase of 7% from the three months ended
September 30, 2020.
Third Quarter Operating and Financial
Highlights:All per share amounts are on a diluted per
common share and operating partnership (“OP”) unit basis unless
stated otherwise.
- Revenues of $32.4 million versus
$30.6 million in prior quarter and $29.9 million in same period
2020.
- Net Income attributable to common
shareholders per share of $0.06 versus $0.12 in prior quarter and
$0.02 in third quarter 2020.
- FFO Core per share of $0.25
compared to $0.26 in the prior quarter and $0.23 in third quarter
3Q 2020.
- Same-store NOI increased 7% from
third quarter 2020.
- Comparable GAAP-based leasing
spreads of 13.1% for the quarter.
- Debt to undepreciated real estate
assets improved to 51% vs 55% from a year ago.
- Annualized Base Rent per leased
square foot grew to $20.41 from $19.95 from the prior quarter.
Financial
ResultsReconciliations of Net Income Attributable to
Whitestone REIT to FFO, FFO Core and NOI are included herein.
Net income attributable to common shareholders
for the quarter ended September 30, 2021 was $2.9 million, or $0.06
per diluted share. Net income attributable to common shareholders
for the quarter ended September 30, 2020 was $0.9 million, or $0.02
per diluted share.
FFO for the quarter ended September 30, 2021 was
$10.7 million, or $0.22 per diluted share, as compared to $8.5
million, or $0.19 per diluted share for the quarter ended September
30, 2020. FFO Core for the quarter ended September 30, 2021 was
$12.3 million, or $0.25 per diluted share, compared to $10.1
million, or $0.23 per diluted share for the quarter ended September
30, 2020.
Operating Results
For the periods ending September 30, 2021, 2020
and 2019 the Company’s operating highlights were as follows:
|
Third Quarter 2021 |
Third Quarter 2020 |
Third Quarter 2019 |
Occupancy: |
|
|
|
Wholly Owned Properties – Same Store |
90.2% |
88.9% |
|
Wholly Owned Properties – Same Store |
90.4% |
89.1% |
90.4% |
Wholly Owned Properties – All |
89.9% |
88.9% |
90.4% |
Same Store Property Net Operating Income Change (2) |
6.8% |
(4.5)% |
2.7% |
|
|
|
|
Rental Rate Growth - Total (GAAP Basis): |
13.1% |
11.0% |
14.4% |
New Leases |
5.4% |
2.9% |
6.6% |
Renewal Leases |
14.1% |
13.9% |
16.4% |
|
|
|
|
Leasing Transactions: |
|
|
|
Number of New Leases |
38 |
32 |
26 |
New Leases - Lease Term Revenue (millions) |
$12.7 |
$9.9 |
$9.3 |
Number of Renewal Leases |
65 |
46 |
42 |
Renewal Leases - Lease Term Revenue (millions) |
$20.3 |
$9.7 |
$9.4 |
Real Estate Portfolio
Update
Community-Centered
PropertiesTM Portfolio
Statistics:
As of September 30, 2021, Whitestone wholly
owned 59 Community-Centered PropertiesTM with 5.1 million square
feet of gross leasable area ("GLA"). Five of the 59
Community-Centered PropertiesTM are land parcels held for future
development. The portfolio is comprised of 31 properties in Texas,
27 in Arizona and 1 in Illinois. Whitestone’s Community-Centered
PropertiesTM are located in the MSA's of Austin (4), Chicago (1),
Dallas-Fort Worth (9), Houston (15), Phoenix (27), and San Antonio
(3). In addition to being business friendly, these are six of the
top markets in the country in terms of size, economic strength and
population growth. 2017 estimates show the projected 5-year
population growth rates for Austin and Dallas-Fort Worth to be
9.7%, San Antonio to be 8.6%, Houston to be 8.0%, and Phoenix to be
6.6%(3). The Company’s properties in these markets are generally
located on the best retail corners embedded in
high-household-income communities. The Company also owns an 81.4%
equity interest in and manages eight properties containing 0.9
million square feet of GLA through its investment in Pillarstone
OP.
At the end of the third quarter, the Company’s
diversified tenant base was comprised of 1,509 tenants, with the
largest tenant accounting for only 2.7% of annualized base rental
revenues. Lease terms range from less than one year for smaller
tenants to more than 15 years for larger tenants. Whitestone’s
leases generally include minimum monthly lease payments and tenant
reimbursements for payment of taxes, insurance and maintenance, and
typically exclude restrictive lease clauses.
Balance Sheet and Liquidity
At September 30, 2021, Whitestone had $10.9
million in cash and cash equivalents, $81.8 million of availability
and $155.5 million of capacity under its credit facility.
The Company has undepreciated real estate assets
of $1.2 billion at September 30, 2021.
At September 30, 2021, 52 of the Company’s
wholly owned 59 properties were unencumbered by mortgage debt, with
an undepreciated cost basis of $883.3 million. At September 30,
2021, the Company had total real estate debt, net of cash, of
$608.2 million, of which approximately 86% was subject to fixed
interest rates. The Company’s weighted average interest rate on all
fixed rate debt as of the end of the third quarter was 4.1% and the
weighted average remaining term was 3.6 years.
Dividend
On September 13, 2021, the Company declared a
quarterly cash distribution of $0.1075 per common share and OP unit
for the fourth quarter of 2021, to be paid in three equal
installments of $0.035833 in October, November and December of
2021.
Conference Call Information
In conjunction with the issuance of its
financial results, the Company invites you to listen to its
earnings release conference call to be broadcast live on Wednesday,
October 27, 2021 at 10:00 A.M. Central Time. The call will be led
by Jim Mastandrea, Chairman and Chief Executive Officer, and Dave
Holeman, Chief Financial Officer. Conference call access
information is as follows:
To listen to a webcast of the conference call,
click on the Investor Relations tab of the Company’s website,
www.whitestonereit.com, and then click on the webcast link. A
replay of the call will be available on Whitestone’s website via
the webcast link until the Company’s next earnings release.
Additional information about Whitestone can be found on the
Company’s website.
Dial-in number
for domestic participants: |
|
1-877-705-6003 |
Dial-in number for international participants: |
|
1-201-493-6725 |
The conference call will be recorded, and a telephone replay
will be available through Wednesday, November 10, 2021. Replay
access information is as follows:
Replay number
for domestic participants: |
|
1-844-512-2921 |
Replay number for international participants: |
|
1-412-317-6671 |
Passcode (for all participants): |
|
13721235 |
Supplemental Financial Information
The third quarter earnings release and
supplemental data package will be located in the “News and Events”
and “Financial Reporting” tabs of the Investor Relations section of
the Company’s website at www.whitestonereit.com. For those without
internet access, the earnings release and supplemental data package
will be available by mail upon request. To receive a copy, please
call the Company’s Investor Relations line at (713) 435-2219.
About Whitestone REIT
Whitestone is a community-centered shopping
center REIT that acquires, owns, manages, develops, and redevelops
high-quality open-air neighborhood centers primarily in the
largest, fastest-growing, high-household income markets in the
Sunbelt. Whitestone creates communities that thrive through
creating local connections between consumers in the surrounding
communities and a well-crafted mix of national, regional and local
tenants that provide daily necessities, needed services,
entertainment and experiences. Whitestone is a monthly
dividend-paying stock and has consistently paid dividends for more
than 15 years. Whitestone’s strong, balanced and managed capital
structure provides stability and flexibility for growth, and
positions Whitestone to perform well through economic cycles. For
additional information, please visit www.whitestonereit.com.
Footnotes:
(1) Inclusive of pro rata share of revenue of
unconsolidated investment in real estate partnership.(2) Excludes
straight-line rent, amortization of above/below market rates and
lease termination fees for both periods(3) Source: Claritas, as of
April 2017.
Forward-Looking Statements
This Report contains forward-looking statements
within the meaning of the federal securities laws, including
discussion and analysis of our financial condition, pending
acquisitions and the impact of such acquisitions on our financial
condition and results of operations, anticipated capital
expenditures required to complete projects, amounts of anticipated
cash distributions to our shareholders in the future and other
matters. These forward-looking statements are not
historical facts but are the intent, belief or current expectations
of our management based on its knowledge and understanding of our
business and industry. Forward-looking statements are
typically identified by the use of terms such as “may,” “will,”
“should,” “potential,” “predicts,” “anticipates,” “expects,”
“intends,” “plans,” “believes,” “seeks,” “estimates” or the
negative of such terms and variations of these words and similar
expressions, although not all forward-looking statements include
these words. These statements are not guarantees of
future performance and are subject to risks, uncertainties and
other factors, some of which are beyond our control, are difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking
statements.
Factors that could cause actual results to
differ materially from any forward-looking statements made in this
Report include: uncertainties related to the COVID-19 pandemic,
including the unknown duration and economic, operational and
financial impacts of the COVID-19 pandemic and the actions taken or
contemplated by U.S. and local governmental authorities or others
in response to the pandemic on our business, employees and tenants,
including, among others, (a) changes in tenant demand for our
properties, (b) financial challenges confronting major tenants,
including as a result of decreased customers’ willingness to
frequent, and mandated stay in place orders that have prevented
customers from frequenting, some of our tenants’ businesses and the
impact of these issues on our ability to collect rent from our
tenants; (c) operational changes implemented by us, including
remote working arrangements, which may put increased strain on our
IT systems and create increased vulnerability to cybersecurity
incidents, (d) significant reduction in our liquidity due to a
reduced borrowing base under our 2019 Facility and limited ability
to access the capital markets and other sources of financing on
attractive terms or at all, and (e) prolonged measures to contain
the spread of COVID-19 or the premature easing of
government-imposed restrictions implemented to contain the spread
of COVID-19; adverse economic or real estate developments or
conditions in Texas or Arizona, Houston and Phoenix in particular,
including as a result of a surge in COVID-19 cases in such areas
and the impact on our tenants’ ability to pay their rent, which
could result in bad debt allowances or straight-line rent reserve
adjustments; the imposition of federal income taxes if we fail to
qualify as a real estate investment trust (“REIT”) in any taxable
year or forego an opportunity to ensure REIT status; uncertainties
related to the national economy, the real estate industry in
general and in our specific markets, including, but not limited to,
the significant volatility and disruption in the global financial
markets caused by the COVID-19 pandemic; legislative or regulatory
changes, including changes to laws governing REITs and the impact
of the legislation commonly known as the Tax Cuts and Jobs Act;
increases in interest rates, operating costs or general and
administrative expenses; availability and terms of capital and
financing, both to fund our operations and to refinance our
indebtedness as it matures; decreases in rental rates or increases
in vacancy rates; litigation risks; lease-up risks, including
leasing risks arising from exclusivity and consent provisions in
leases with significant tenants; our inability to renew tenant
leases or obtain new tenant leases upon the expiration of existing
leases; our inability to generate sufficient cash flows due to
market conditions, competition, uninsured losses, changes in tax or
other applicable laws; the need to fund tenant improvements or
other capital expenditures out of operating cash flow; the risk
that we are unable to raise capital for working capital,
acquisitions or other uses on attractive terms or at all, and other
factors detailed in the Company's most recent Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other documents the
Company files with the Securities and Exchange Commission from time
to time.
Non-GAAP Financial Measures
This release contains supplemental financial
measures that are not calculated pursuant to U.S. generally
accepted accounting principles (“GAAP”) including EBITDAre,
EBITDAre-Adjusted, FFO, FFO Core, and NOI. Following are
explanations and reconciliations of these metrics to their most
comparable GAAP metric.
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 property and of investments in unconsolidated
affiliates caused by a decrease in value of depreciable property in
the affiliate, plus, or minus losses and gains on the disposition
of depreciable property, including losses/gains on change in
control and adjustments to reflect the entity’s share of EBITDAre
of the unconsolidated affiliates and consolidated affiliates with
non-controlling interests. The Company calculates EBITDAre in a
manner consistent with the NAREIT definition. Management believes
that EBITDAre represents a supplemental non-GAAP performance
measure that provides investors with a relevant basis for comparing
REITs. There can be no assurance the EBITDAre as presented by the
Company is comparable to similarly titled measures of other REITs.
EBITDAre should not be considered as alternatives to net income or
other measurements under GAAP as indicators of operating
performance or to cash flows from operating, investing or financing
activities as measures of liquidity. EBITDAre does not reflect
working capital changes, cash expenditures for capital improvements
or principal payments on indebtedness.
EBITDAre-Adjusted: The Company also presents
EBITDAre-Adjusted as an additional supplemental measure as we
believe it is reflective of the core operating performance of our
portfolio of properties. EBITDAre-Adjusted is defined as NAREIT
EBITDAre excluding charges and gains related to non-cash and
non-operating transactions and other events that could affect the
comparability of operating results. Specific examples of items
excluded from EBITDAre-Adjusted include, but are not limited to,
share-based compensation and management fees, net of related costs.
There can be no assurance that EBITDAre-Adjusted as presented by
the Company is comparable to similarly titled measures of other
REITs. EBITDAre-Adjusted should not be considered an alternative to
net income or other measurements under GAAP as indicators of
operating performance or to cash flows from operating, investing or
financing activities as measures of liquidity. EBITDAre-Adjusted
does not reflect working capital changes, cash expenditures for
capital improvements or principal payments on indebtedness.
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 estate assets, gains
and losses from change in control, and impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity. We calculate FFO in a
manner consistent with the NAREIT definition and also include
adjustments for our unconsolidated real estate partnership.
Management uses FFO as a supplemental measure to conduct and
evaluate our business because there are certain limitations
associated with using GAAP net income (loss) alone as the primary
measure of our operating performance. Historical cost accounting
for real estate assets in accordance with GAAP implicitly assumes
that the value of real estate assets diminishes predictably over
time. Because real estate values instead have
historically risen or fallen with market conditions, management
believes that the presentation of operating results for real estate
companies that use historical cost accounting is insufficient by
itself. In addition, securities analysts, investors and
other interested parties use FFO as the primary metric for
comparing the relative performance of equity REITs. FFO should not
be considered as an alternative to net income or other measurements
under GAAP, as an indicator of our operating performance or to cash
flows from operating, investing or financing activities as a
measure of liquidity. FFO does not reflect working
capital changes, cash expenditures for capital improvements or
principal payments on indebtedness. Although our calculation of FFO
is consistent with that of NAREIT, there can be no assurance that
FFO presented by us is comparable to similarly titled measures of
other REITs.
FFO Core: Funds From Operations Core: Management
believes that the computation of FFO in accordance with NAREIT’s
definition includes certain items that are not indicative of the
results provided by our operating portfolio and affect the
comparability of our period-over-period performance. These items
include, but are not limited to, legal settlements, proxy contest
fees, debt extension costs, non-cash share-based compensation
expense, rent support agreement payments received from sellers on
acquired assets, management fees and acquisition costs. Therefore,
in addition to FFO, management uses FFO Core, which we define to
exclude such items. Management believes that these adjustments are
appropriate in determining FFO Core as they are not indicative of
the operating performance of our assets. In addition, we believe
that FFO Core is a useful supplemental measure for the investing
community to use in comparing us to other REITs as many REITs
provide some form of adjusted or modified FFO. However, there can
be no assurance that FFO Core presented by us is comparable to the
adjusted or modified FFO of other REITs.
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 taxes). Other REITs may use different
methodologies for calculating NOI and, accordingly, our NOI may not
be comparable to other REITs. Because NOI excludes general and
administrative expenses, depreciation and amortization, involuntary
conversion, interest expense, interest income, provision for income
taxes, gain or loss on sale or disposition of assets, and our pro
rata share of NOI of equity method investments, it provides a
performance measure that, when compared year-over-year, reflects
the revenues and expenses directly associated with owning and
operating commercial real estate properties and the impact to
operations from trends in occupancy rates, rental rates and
operating costs, providing perspective not immediately apparent
from net income. We use NOI to evaluate our operating performance
since NOI allows us to evaluate the impact that factors such as
occupancy levels, lease structure, lease rates and tenant base have
on our results, margins and returns. In addition, management
believes that NOI provides useful information to the investment
community about our property and operating performance when
compared to other REITs since NOI is generally recognized as a
standard measure of property performance in the real estate
industry. However, NOI should not be viewed as a measure of our
overall financial performance since it does not reflect general and
administrative expenses, depreciation and amortization, involuntary
conversion, interest expense, interest income, provision for income
taxes and gain or loss on sale or disposition of assets, the level
of capital expenditures and leasing costs necessary to maintain the
operating performance of our properties.
Same Store NOI: Management believes that Same
Store NOI is a useful measure of the Company’s property operating
performance because it includes only the properties that have been
owned for the entire period being compared, and that it is
frequently used by the investment community. Same Store NOI assists
in eliminating differences in NOI due to the acquisition or
disposition of properties during the period being presented,
providing a more consistent measure of the Company’s performance.
The Company defines Same Store NOI as operating revenues (rental
and other revenues, excluding straight-line rent adjustments,
amortization of above/below market rents, and lease termination
fees) less property and related expenses (property operation and
maintenance and real estate taxes), Non-Same Store NOI, and NOI of
our investment in Pillarstone OP (pro rata). We define “Non-Same
Stores” as properties that have been acquired since the beginning
of the period being compared and properties that have been sold,
but not classified as discontinued operations. Other REITs may use
different methodologies for calculating Same Store NOI, and
accordingly, the Company's Same Store NOI may not be comparable to
that of other REITs.
Investor and Media Relations:Rebecca
ElliottVice President, Corporate CommunicationsWhitestone REIT(713)
435-2219ir@whitestonereit.com
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except share and per share
data) |
|
|
|
|
|
September 30, 2021 |
|
December 31, 2020 |
|
|
|
|
|
ASSETS |
Real estate assets, at
cost |
|
|
|
|
Property |
|
$ |
1,165,274 |
|
|
$ |
1,106,426 |
|
Accumulated depreciation |
|
(183,383 |
) |
|
(163,712 |
) |
Total real estate assets |
|
981,891 |
|
|
942,714 |
|
Investment in real estate
partnership |
|
34,408 |
|
|
33,979 |
|
Cash and cash equivalents |
|
10,858 |
|
|
25,777 |
|
Restricted cash |
|
106 |
|
|
179 |
|
Escrows and acquisition
deposits |
|
10,437 |
|
|
9,274 |
|
Accrued rents and accounts
receivable, net of allowance for doubtful accounts (1) |
|
21,991 |
|
|
23,009 |
|
Receivable due from related
party |
|
651 |
|
|
335 |
|
Unamortized lease commissions,
legal fees and loan costs |
|
8,356 |
|
|
7,686 |
|
Prepaid expenses and other
assets(2) |
|
2,371 |
|
|
2,049 |
|
Total assets |
|
$ |
1,071,069 |
|
|
$ |
1,045,002 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
Liabilities: |
|
|
|
|
Notes payable |
|
$ |
618,649 |
|
|
$ |
644,185 |
|
Accounts payable and accrued expenses(3) |
|
44,563 |
|
|
50,918 |
|
Payable due to related party |
|
530 |
|
|
125 |
|
Tenants' security deposits |
|
7,718 |
|
|
6,916 |
|
Dividends and distributions payable |
|
5,333 |
|
|
4,532 |
|
Total liabilities |
|
676,793 |
|
|
706,676 |
|
Commitments and
contingencies: |
|
— |
|
|
— |
|
Equity: |
|
|
|
|
Preferred shares, $0.001 par value per share; 50,000,000 shares
authorized; none issued and outstanding as of September 30, 2021
and December 31, 2020 |
|
— |
|
|
— |
|
Common shares, $0.001 par value per share; 400,000,000 shares
authorized; 48,839,594 and 42,391,316 issued and outstanding as of
September 30, 2021 and December 31, 2020, respectively |
|
48 |
|
|
42 |
|
Additional paid-in capital |
|
618,963 |
|
|
562,250 |
|
Accumulated deficit |
|
(221,277 |
) |
|
(215,809 |
) |
Accumulated other comprehensive loss |
|
(9,726 |
) |
|
(14,400 |
) |
Total Whitestone REIT shareholders' equity |
|
388,008 |
|
|
332,083 |
|
Noncontrolling interest in subsidiary |
|
6,268 |
|
|
6,243 |
|
Total equity |
|
394,276 |
|
|
338,326 |
|
Total liabilities and equity |
|
$ |
1,071,069 |
|
|
$ |
1,045,002 |
|
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
|
|
September 30, 2021 |
|
December 31, 2020 |
(1) Accrued rents and
accounts receivable, net of allowance for doubtful
accounts |
|
|
|
|
Tenant receivables |
|
$ |
19,898 |
|
|
$ |
22,956 |
|
Accrued rents and other recoveries |
|
17,833 |
|
|
16,348 |
|
Allowance for doubtful accounts |
|
(15,919 |
) |
|
(16,426 |
) |
Other receivables |
|
179 |
|
|
131 |
|
Total accrued rents and accounts receivable, net of allowance for
doubtful accounts |
|
$ |
21,991 |
|
|
$ |
23,009 |
|
|
|
|
|
|
(2) Operating lease right of
use assets (net) |
|
$ |
316 |
|
|
$ |
592 |
|
(3) Operating lease
liabilities |
|
$ |
323 |
|
|
$ |
603 |
|
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
% Change From |
|
|
September 30,2021 |
|
June 30,2021 |
|
September 30,2020 |
|
June 30,2021 |
|
September 30,2020 |
Revenues |
|
|
|
|
|
|
|
|
|
|
Rental(1) |
|
$ |
32,069 |
|
|
$ |
30,152 |
|
|
$ |
28,868 |
|
|
6 |
% |
|
11 |
% |
Management, transaction, and other fees |
|
375 |
|
|
466 |
|
|
1,032 |
|
|
(20 |
)% |
|
(64 |
)% |
Total revenues |
|
32,444 |
|
|
30,618 |
|
|
29,900 |
|
|
6 |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
7,340 |
|
|
7,105 |
|
|
7,171 |
|
|
3 |
% |
|
2 |
% |
Operating and maintenance |
|
5,789 |
|
|
5,444 |
|
|
5,029 |
|
|
6 |
% |
|
15 |
% |
Real estate taxes |
|
4,589 |
|
|
4,160 |
|
|
4,670 |
|
|
10 |
% |
|
(2 |
)% |
General and administrative |
|
5,672 |
|
|
4,730 |
|
|
5,860 |
|
|
20 |
% |
|
(3 |
)% |
Total operating expenses |
|
23,390 |
|
|
21,439 |
|
|
22,730 |
|
|
9 |
% |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Other expenses
(income) |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
6,142 |
|
|
6,143 |
|
|
6,400 |
|
|
— |
% |
|
(4 |
)% |
(Gain) loss on sale or disposal of assets, net |
|
48 |
|
|
(224 |
) |
|
18 |
|
|
N.M. (2) |
|
|
N.M. |
|
Interest, dividend and other investment income |
|
(31 |
) |
|
(23 |
) |
|
(71 |
) |
|
35 |
% |
|
(56 |
)% |
Total other expenses |
|
6,159 |
|
|
5,896 |
|
|
6,347 |
|
|
4 |
% |
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Income before equity
investment in real estate partnership and income tax |
|
2,895 |
|
|
3,283 |
|
|
823 |
|
|
(12 |
)% |
|
252 |
% |
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of real estate partnership |
|
151 |
|
|
189 |
|
|
196 |
|
|
(20 |
)% |
|
(23 |
)% |
Provision for income tax |
|
(100 |
) |
|
(87 |
) |
|
(105 |
) |
|
15 |
% |
|
(5 |
)% |
Income from continuing
operations |
|
2,946 |
|
|
3,385 |
|
|
914 |
|
|
(13 |
)% |
|
222 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of property from discontinued operations |
|
— |
|
|
1,833 |
|
|
— |
|
|
N.M. |
|
|
N.M. |
|
Income from
discontinued operations |
|
— |
|
|
1,833 |
|
|
— |
|
|
N.M. |
|
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
2,946 |
|
|
5,218 |
|
|
914 |
|
|
(44 |
)% |
|
222 |
% |
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests |
|
47 |
|
|
92 |
|
|
14 |
|
|
(49 |
)% |
|
236 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Whitestone REIT |
|
$ |
2,899 |
|
|
$ |
5,126 |
|
|
$ |
900 |
|
|
(43 |
)% |
|
222 |
% |
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) |
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
% Change From |
|
|
September 30,2021 |
|
June 30,2021 |
|
September 30,2020 |
|
June 30,2021 |
|
September 30,2020 |
Basic Earnings Per
Share: |
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to Whitestone
REIT excluding amounts attributable to unvested restricted
shares |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
|
$ |
0.02 |
|
|
(25 |
)% |
|
200 |
% |
Income from discontinued operations attributable to Whitestone
REIT |
|
— |
|
|
0.04 |
|
|
— |
|
|
N.M. |
|
|
N.M. |
|
Net income attributable to common shareholders, excluding amounts
attributable to unvested restricted shares |
|
$ |
0.06 |
|
|
$ |
0.12 |
|
|
$ |
0.02 |
|
|
(50 |
)% |
|
200 |
% |
Diluted Earnings Per
Share: |
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to Whitestone
REIT excluding amounts attributable to unvested restricted
shares |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
|
$ |
0.02 |
|
|
(25 |
)% |
|
200 |
% |
Income from discontinued operations attributable to Whitestone
REIT |
|
— |
|
|
0.04 |
|
|
— |
|
|
N.M. |
|
|
N.M. |
|
Net income attributable to common shareholders, excluding amounts
attributable to unvested restricted shares |
|
$ |
0.06 |
|
|
$ |
0.12 |
|
|
$ |
0.02 |
|
|
(50 |
)% |
|
200 |
% |
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
46,883 |
|
|
43,378 |
|
|
42,346 |
|
|
8 |
% |
|
11 |
% |
Diluted |
|
47,825 |
|
|
44,125 |
|
|
43,440 |
|
|
8 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Comprehensive Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
2,946 |
|
|
$ |
5,218 |
|
|
$ |
914 |
|
|
(44 |
)% |
|
222 |
% |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on cash flow hedging activities |
|
1,273 |
|
|
1,289 |
|
|
1,241 |
|
|
(1 |
)% |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
|
4,219 |
|
|
6,507 |
|
|
2,155 |
|
|
(35 |
)% |
|
96 |
% |
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests |
|
47 |
|
|
92 |
|
|
14 |
|
|
(49 |
)% |
|
236 |
% |
Less: Comprehensive income (loss) attributable to noncontrolling
interests |
|
20 |
|
|
21 |
|
|
43 |
|
|
(5 |
)% |
|
(53 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to Whitestone REIT |
|
$ |
4,152 |
|
|
$ |
6,394 |
|
|
$ |
2,098 |
|
|
(35 |
)% |
|
98 |
% |
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
% Change From |
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30,2020 |
|
June 30,2021 |
|
September 30,2020 |
(1)
Rental |
|
|
|
|
|
|
|
|
|
|
Rental revenues |
|
$ |
23,177 |
|
|
$ |
22,238 |
|
|
|
$ |
21,808 |
|
|
4 |
% |
|
6 |
% |
Recoveries |
|
8,720 |
|
|
8,057 |
|
|
|
8,339 |
|
|
8 |
% |
|
5 |
% |
Bad debt |
|
172 |
|
|
(143 |
) |
|
|
(1,279 |
) |
|
220 |
% |
|
113 |
% |
Total rental |
|
$ |
32,069 |
|
|
$ |
30,152 |
|
|
|
$ |
28,868 |
|
|
6 |
% |
|
11 |
% |
(2) Not Meaningful
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) |
(in thousands) |
|
|
|
|
|
|
|
|
|
Nine Months EndedSeptember 30, |
|
% ChangeFrom September 30, |
|
|
2021 |
|
2020 |
|
2020 |
Revenues |
|
|
|
|
|
|
Rental(1) |
|
$ |
90,916 |
|
|
$ |
86,116 |
|
|
6 |
% |
Management, transaction, and other fees |
|
1,191 |
|
|
1,965 |
|
|
(39 |
)% |
Total revenues |
|
92,107 |
|
|
88,081 |
|
|
5 |
% |
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
Depreciation and amortization |
|
21,458 |
|
|
21,112 |
|
|
2 |
% |
Operating and maintenance |
|
16,072 |
|
|
15,021 |
|
|
7 |
% |
Real estate taxes |
|
12,787 |
|
|
13,591 |
|
|
(6 |
)% |
General and administrative |
|
16,036 |
|
|
15,604 |
|
|
3 |
% |
Total operating expenses |
|
66,353 |
|
|
65,328 |
|
|
2 |
% |
|
|
|
|
|
|
|
Other expenses
(income) |
|
|
|
|
|
|
Interest expense |
|
18,417 |
|
|
19,561 |
|
|
(6 |
)% |
(Gain) loss on sale or disposal of assets, net |
|
(177 |
) |
|
882 |
|
|
N.M. |
|
Interest, dividend and other investment income |
|
(103 |
) |
|
(206 |
) |
|
(50 |
)% |
Total other expenses |
|
18,137 |
|
|
20,237 |
|
|
(10 |
)% |
|
|
|
|
|
|
|
Income before equity investment in real estate partnership
and income tax |
|
7,617 |
|
|
2,516 |
|
|
203 |
% |
|
|
|
|
|
|
|
Equity in earnings of real estate partnership |
|
429 |
|
|
752 |
|
|
(43 |
)% |
Provision for income tax |
|
(274 |
) |
|
(288 |
) |
|
(5 |
)% |
Income from continuing
operations |
|
7,772 |
|
|
2,980 |
|
|
161 |
% |
|
|
|
|
|
|
|
|
Gain on sale of
property from discontinued operations |
|
1,833 |
|
|
— |
|
|
N.M. |
|
Income from
discontinued operations |
|
1,833 |
|
|
— |
|
|
N.M. |
|
|
|
|
|
|
|
|
|
Net
income |
|
9,605 |
|
|
2,980 |
|
|
222 |
% |
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests |
|
165 |
|
|
58 |
|
|
184 |
% |
|
|
|
|
|
|
|
Net income
attributable to Whitestone REIT |
|
$ |
9,440 |
|
|
$ |
2,922 |
|
|
223 |
% |
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) |
(in thousands, except per share data) |
|
|
|
|
|
|
|
Nine Months EndedSeptember 30, |
|
% ChangeFromSeptember 30, |
|
|
2021 |
|
2020 |
|
2020 |
Basic Earnings Per
Share: |
|
|
|
|
|
|
Net income from continuing operations attributable to Whitestone
REIT excluding amounts attributable to unvested restricted
shares |
|
$ |
0.17 |
|
|
$ |
0.07 |
|
|
|
143 |
% |
Income from discontinued operations attributable to Whitestone
REIT |
|
0.04 |
|
|
— |
|
|
|
N.M. |
|
Net income attributable to common shareholders, excluding amounts
attributable to unvested restricted shares |
|
$ |
0.21 |
|
|
$ |
0.07 |
|
|
|
200 |
% |
Diluted Earnings Per
Share: |
|
|
|
|
|
|
|
Net income from continuing operations attributable to Whitestone
REIT excluding amounts attributable to unvested restricted
shares |
|
$ |
0.17 |
|
|
$ |
0.07 |
|
|
|
143 |
% |
Income from discontinued operations attributable to Whitestone
REIT |
|
0.04 |
|
|
— |
|
|
|
N.M. |
|
Net income attributable to common shareholders, excluding amounts
attributable to unvested restricted shares |
|
$ |
0.21 |
|
|
$ |
0.07 |
|
|
|
200 |
% |
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
44,268 |
|
|
42,202 |
|
|
|
5 |
% |
Diluted |
|
45,108 |
|
|
43,040 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
Consolidated
Statements of Comprehensive Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
9,605 |
|
|
$ |
2,980 |
|
|
|
222 |
% |
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on cash flow hedging activities |
|
4,783 |
|
|
(10,395 |
) |
|
|
N.M. |
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
|
14,388 |
|
|
(7,415 |
) |
|
|
N.M. |
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests |
|
165 |
|
|
58 |
|
|
|
184 |
% |
Less: Comprehensive income (loss) attributable to noncontrolling
interests |
|
82 |
|
|
(203 |
) |
|
|
N.M. |
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to Whitestone REIT |
|
$ |
14,141 |
|
|
$ |
(7,270 |
) |
|
|
N.M. |
|
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) |
(in thousands) |
|
|
|
|
|
|
|
|
|
Nine Months EndedSeptember 30, |
|
% Change FromSeptember 30, |
|
|
2021 |
|
2020 |
|
2020 |
(1)
Rental |
|
|
|
|
|
|
Rental revenues |
|
$ |
67,041 |
|
|
$ |
65,591 |
|
|
2 |
% |
Recoveries |
|
24,375 |
|
|
24,976 |
|
|
(2 |
)% |
Bad debt |
|
(500 |
) |
|
(4,451 |
) |
|
89 |
% |
Total rental |
|
$ |
90,916 |
|
|
$ |
86,116 |
|
|
6 |
% |
|
Whitestone REIT and
SubsidiariesCONSOLIDATED STATEMENTS OF CASH
FLOWS(in thousands) |
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
|
Net income from continuing operations |
|
$ |
7,772 |
|
|
$ |
2,980 |
|
Net income from discontinued operations |
|
1,833 |
|
|
— |
|
Net income |
|
9,605 |
|
|
2,980 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
21,458 |
|
|
21,112 |
|
Amortization of deferred loan costs |
|
822 |
|
|
839 |
|
(Gain) loss on sale or disposal of assets and loan forgiveness,
net |
|
(177 |
) |
|
882 |
|
Bad debt |
|
500 |
|
|
4,451 |
|
Share-based compensation |
|
4,066 |
|
|
3,980 |
|
Equity in earnings of real estate partnership |
|
(429 |
) |
|
(752 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Escrows and acquisition deposits |
|
(1,163 |
) |
|
522 |
|
Accrued rents and accounts receivable |
|
518 |
|
|
(6,123 |
) |
Receivable due from related party |
|
(316 |
) |
|
(825 |
) |
Unamortized lease commissions, legal fees and loan costs |
|
(2,531 |
) |
|
(958 |
) |
Prepaid expenses and other assets |
|
1,548 |
|
|
2,145 |
|
Accounts payable and accrued expenses |
|
(1,572 |
) |
|
131 |
|
Payable due to related party |
|
405 |
|
|
538 |
|
Tenants' security deposits |
|
802 |
|
|
298 |
|
Net cash provided by operating activities |
|
31,703 |
|
|
29,220 |
|
Cash flows from
investing activities: |
|
|
|
|
Acquisitions of real estate |
|
(53,364 |
) |
|
— |
|
Additions to real estate |
|
(6,058 |
) |
|
(5,808 |
) |
Proceeds from note receivable |
|
— |
|
|
922 |
|
Net cash used in investing activities |
|
(59,422 |
) |
|
(4,886 |
) |
Net cash provided by investing activities of discontinued
operations |
|
1,833 |
|
|
— |
|
Cash flows from
financing activities: |
|
|
|
|
Distributions paid to common shareholders |
|
(14,063 |
) |
|
(20,771 |
) |
Distributions paid to OP unit holders |
|
(248 |
) |
|
(430 |
) |
Proceeds from issuance of common shares, net of offering costs |
|
53,335 |
|
|
2,241 |
|
Payments of exchange offer costs |
|
(49 |
) |
|
(43 |
) |
Proceeds from notes payable |
|
— |
|
|
1,734 |
|
Net proceeds from (payments of) credit facility |
|
(25,000 |
) |
|
30,000 |
|
Repayments of notes payable |
|
(2,403 |
) |
|
(11,514 |
) |
Repurchase of common shares |
|
(678 |
) |
|
(2,076 |
) |
Net cash provided by (used in) financing activities |
|
10,894 |
|
|
(859 |
) |
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
(14,992 |
) |
|
23,475 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
25,956 |
|
|
15,643 |
|
Cash, cash equivalents and
restricted cash at end of period (1) |
|
$ |
10,964 |
|
|
$ |
39,118 |
|
(1) For a
reconciliation of cash, cash equivalents and restricted cash, see
supplemental disclosures below.
|
Whitestone REIT and Subsidiaries |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Supplemental Disclosures |
(in thousands) |
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
Supplemental
disclosure of cash flow information: |
|
|
|
|
Cash paid for interest |
|
$ |
17,732 |
|
|
$ |
18,790 |
|
Cash paid for taxes |
|
$ |
364 |
|
|
$ |
353 |
|
Non cash investing and
financing activities: |
|
|
|
|
Disposal of fully depreciated real estate |
|
$ |
284 |
|
|
$ |
34 |
|
Financed insurance premiums |
|
$ |
1,712 |
|
|
$ |
1,431 |
|
Value of shares issued under dividend reinvestment plan |
|
$ |
45 |
|
|
$ |
74 |
|
Value of common shares exchanged for OP units |
|
$ |
— |
|
|
$ |
1,138 |
|
Change in fair value of cash flow hedge |
|
$ |
4,783 |
|
|
$ |
(10,395 |
) |
|
|
September 30, |
|
|
2021 |
|
2020 |
Cash, cash equivalents
and restricted cash |
|
|
|
|
Cash and cash equivalents |
|
$ |
10,858 |
|
|
$ |
38,990 |
|
Restricted cash |
|
106 |
|
|
128 |
|
Total cash, cash equivalents
and restricted cash |
|
$ |
10,964 |
|
|
$ |
39,118 |
|
|
Whitestone REIT and Subsidiaries |
RECONCILIATION OF NON-GAAP MEASURES |
(in thousands, except per share and per unit
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Change From |
|
|
September 30,2021 |
|
June 30,2021 |
|
September 30,2020 |
|
June 30,2021 |
|
September 30,2020 |
FFO (NAREIT) AND FFO CORE |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
2,899 |
|
|
$ |
5,126 |
|
|
$ |
900 |
|
|
(43 |
)% |
|
222 |
% |
Adjustments to reconcile to FFO:(1) |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real estate assets |
|
7,305 |
|
|
7,068 |
|
|
7,125 |
|
|
3 |
% |
|
3 |
% |
Depreciation and amortization of real estate assets of real estate
partnership (pro rata) |
|
440 |
|
|
409 |
|
|
386 |
|
|
8 |
% |
|
14 |
% |
(Gain) loss on sale or disposal of assets, net |
|
48 |
|
|
(224 |
) |
|
18 |
|
|
121 |
% |
|
167 |
% |
Gain on sale of property from discontinued operations |
|
— |
|
|
(1,833 |
) |
|
— |
|
|
N.M. |
|
|
N.M. |
|
(Gain) loss on sale or disposal of properties or assets of real
estate partnership (pro rata)(2) |
|
1 |
|
|
(20 |
) |
|
24 |
|
|
N.M. |
|
|
N.M. |
|
Net income attributable to noncontrolling interests |
|
47 |
|
|
92 |
|
|
14 |
|
|
(49 |
)% |
|
236 |
% |
FFO (NAREIT) |
|
10,740 |
|
|
10,618 |
|
|
8,467 |
|
|
1 |
% |
|
27 |
% |
Adjustments to reconcile to FFO Core: |
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
1,563 |
|
|
1,244 |
|
|
1,645 |
|
|
26 |
% |
|
(5 |
)% |
FFO Core |
|
$ |
12,303 |
|
|
$ |
11,862 |
|
|
$ |
10,112 |
|
|
4 |
% |
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
FFO PER SHARE AND OP UNIT CALCULATION |
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
FFO |
|
$ |
10,740 |
|
|
$ |
10,618 |
|
|
$ |
8,467 |
|
|
1 |
% |
|
27 |
% |
FFO Core |
|
$ |
12,303 |
|
|
$ |
11,862 |
|
|
$ |
10,112 |
|
|
4 |
% |
|
22 |
% |
Denominator: |
|
|
|
|
|
|
|
|
|
|
Weighted average number of total common shares - basic |
|
46,883 |
|
|
43,378 |
|
|
42,346 |
|
|
8 |
% |
|
11 |
% |
Weighted average number of total noncontrolling OP units -
basic |
|
773 |
|
|
773 |
|
|
776 |
|
|
— |
% |
|
— |
% |
Weighted average number of total common shares and noncontrolling
OP units - basic |
|
47,656 |
|
|
44,151 |
|
|
43,122 |
|
|
8 |
% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
Unvested restricted shares |
|
942 |
|
|
747 |
|
|
1,094 |
|
|
26 |
% |
|
(14 |
)% |
Weighted average number of total common shares and noncontrolling
OP units - diluted |
|
48,598 |
|
|
44,898 |
|
|
44,216 |
|
|
8 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
FFO per common share and OP
unit - basic |
|
$ |
0.23 |
|
|
$ |
0.24 |
|
|
$ |
0.20 |
|
|
(4 |
)% |
|
15 |
% |
FFO per common share and OP
unit - diluted |
|
$ |
0.22 |
|
|
$ |
0.24 |
|
|
$ |
0.19 |
|
|
(8 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
FFO Core per common share and
OP unit - basic |
|
$ |
0.26 |
|
|
$ |
0.27 |
|
|
$ |
0.23 |
|
|
(4 |
)% |
|
13 |
% |
FFO Core per common share and
OP unit - diluted |
|
$ |
0.25 |
|
|
$ |
0.26 |
|
|
$ |
0.23 |
|
|
(4 |
)% |
|
9 |
% |
(1) Includes pro-rata share attributable to
real estate partnership.(2) Included in equity in
earnings of real estate partnership on the consolidated statements
of operations and comprehensive income (loss).
|
Whitestone REIT and Subsidiaries |
RECONCILIATION OF NON-GAAP MEASURES |
(in thousands, except per share and per unit
data) |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
Nine Months EndedSeptember 30, |
|
FromSeptember 30, |
|
|
2021 |
|
2020 |
|
2020 |
FFO (NAREIT) AND FFO CORE |
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
9,440 |
|
|
$ |
2,922 |
|
|
223 |
% |
Adjustments to reconcile to FFO:(1) |
|
|
|
|
|
|
Depreciation and amortization of real estate assets |
|
21,353 |
|
|
20,943 |
|
|
2 |
% |
Depreciation and amortization of real estate assets of real estate
partnership (pro rata) |
|
1,254 |
|
|
1,262 |
|
|
(1 |
)% |
(Gain) loss on sale or disposal of assets, net |
|
(177 |
) |
|
882 |
|
|
N.M. |
|
Gain on sale of property from discontinued operations |
|
(1,833 |
) |
|
— |
|
|
N.M. |
|
(Gain) loss on sale or disposal of properties or assets of real
estate partnership (pro rata)(2) |
|
(19 |
) |
|
78 |
|
|
(124 |
)% |
Net income attributable to noncontrolling interests |
|
165 |
|
|
58 |
|
|
184 |
% |
FFO (NAREIT) |
|
30,183 |
|
|
26,145 |
|
|
15 |
% |
Adjustments to reconcile to FFO Core: |
|
|
|
|
|
|
Share-based compensation expense |
|
4,275 |
|
|
4,167 |
|
|
3 |
% |
FFO Core |
|
$ |
34,458 |
|
|
$ |
30,312 |
|
|
14 |
% |
|
|
|
|
|
|
|
FFO PER SHARE AND OP UNIT CALCULATION |
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
FFO |
|
$ |
30,183 |
|
|
$ |
26,145 |
|
|
15 |
% |
FFO Core excluding amounts attributable to unvested restricted
common shares |
|
$ |
34,458 |
|
|
$ |
30,312 |
|
|
14 |
% |
Denominator: |
|
|
|
|
|
|
Weighted average number of total common shares - basic |
|
44,268 |
|
|
42,202 |
|
|
5 |
% |
Weighted average number of total noncontrolling OP units -
basic |
|
773 |
|
|
836 |
|
|
(8 |
)% |
Weighted average number of total common shares and noncontrolling
OP units - basic |
|
45,041 |
|
|
43,038 |
|
|
5 |
% |
|
|
|
|
|
|
|
Effect of dilutive securities: |
|
|
|
|
|
|
Unvested restricted shares |
|
840 |
|
|
838 |
|
|
— |
% |
Weighted average number of total common shares and noncontrolling
OP units - diluted |
|
45,881 |
|
|
43,876 |
|
|
5 |
% |
|
|
|
|
|
|
|
FFO per common share and OP
unit - basic |
|
$ |
0.67 |
|
|
$ |
0.61 |
|
|
10 |
% |
FFO per common share and OP
unit - diluted |
|
$ |
0.66 |
|
|
$ |
0.60 |
|
|
10 |
% |
|
|
|
|
|
|
|
FFO Core per common share and
OP unit - basic |
|
$ |
0.77 |
|
|
$ |
0.70 |
|
|
10 |
% |
FFO Core per common share and
OP unit - diluted |
|
$ |
0.75 |
|
|
$ |
0.69 |
|
|
9 |
% |
(1) Includes pro-rata share attributable to
real estate partnership.(2) Included in equity in
earnings of real estate partnership on the consolidated statements
of operations and comprehensive income (loss).
|
Whitestone REIT and Subsidiaries |
RECONCILIATION OF NON-GAAP MEASURES |
(continued) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
PROPERTY NET OPERATING INCOME |
|
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
2,899 |
|
|
$ |
900 |
|
|
$ |
9,440 |
|
|
$ |
2,922 |
|
General and administrative expenses |
|
5,672 |
|
|
5,860 |
|
|
16,036 |
|
|
15,604 |
|
Depreciation and amortization |
|
7,340 |
|
|
7,171 |
|
|
21,458 |
|
|
21,112 |
|
Equity in earnings of real estate partnership |
|
(151 |
) |
|
(196 |
) |
|
(429 |
) |
|
(752 |
) |
Interest expense |
|
6,142 |
|
|
6,400 |
|
|
18,417 |
|
|
19,561 |
|
Interest, dividend and other investment income |
|
(31 |
) |
|
(71 |
) |
|
(103 |
) |
|
(206 |
) |
Provision for income taxes |
|
100 |
|
|
105 |
|
|
274 |
|
|
288 |
|
Gain on sale of property from discontinued operations |
|
— |
|
|
— |
|
|
(1,833 |
) |
|
— |
|
Management fee, net of related expenses |
|
83 |
|
|
81 |
|
|
246 |
|
|
246 |
|
(Gain) loss on sale or disposal of assets, net |
|
48 |
|
|
18 |
|
|
(177 |
) |
|
882 |
|
NOI of real estate partnership (pro rata) |
|
1,003 |
|
|
990 |
|
|
2,846 |
|
|
3,250 |
|
Net income attributable to noncontrolling interests |
|
47 |
|
|
14 |
|
|
165 |
|
|
58 |
|
NOI |
|
23,152 |
|
|
21,272 |
|
|
66,340 |
|
|
62,965 |
|
Non-Same Store NOI (1) |
|
(730 |
) |
|
— |
|
|
(730 |
) |
|
— |
|
NOI of real estate partnership (pro rata) |
|
(1,003 |
) |
|
(990 |
) |
|
(2,846 |
) |
|
(3,250 |
) |
NOI less Non-Same
Store NOI and NOI of real estate partnership (pro
rata) |
|
21,419 |
|
|
20,282 |
|
|
62,764 |
|
|
59,715 |
|
Same Store straight-line rent adjustments |
|
(507 |
) |
|
(61 |
) |
|
(1,201 |
) |
|
558 |
|
Same Store amortization of above/below market rents |
|
(177 |
) |
|
(149 |
) |
|
(618 |
) |
|
(584 |
) |
Same Store lease termination fees |
|
(79 |
) |
|
(727 |
) |
|
(306 |
) |
|
(1,028 |
) |
Same Store
NOI (2) |
|
$ |
20,656 |
|
|
$ |
19,345 |
|
|
$ |
60,639 |
|
|
$ |
58,661 |
|
(1) |
|
We define “Non-Same Store” as
properties that have been acquired since the beginning of the
period being compared and properties that have been sold, but not
classified as discontinued operations. For purposes of comparing
the three months ended September 30, 2021 to the three months
ended September 30, 2020, Non-Same Store includes properties
acquired between July 1, 2020 and September 30, 2021 and
properties sold between July 1, 2020 and September 30,
2021, but not included in discontinued operations. For purposes of
comparing the nine months ended September 30, 2021 to the nine
months ended September 30, 2020, Non-Same Store includes
properties acquired between January 1, 2020 and September 30,
2021 and properties sold between January 1, 2020 and
September 30, 2021, but not included in discontinued
operations. |
|
|
|
(2) |
|
We define “Same Store” as
properties that have been owned during the entire period being
compared. For purposes of comparing the three months ended
September 30, 2021 to the three months ended
September 30, 2020, Same Store includes properties owned
before July 1, 2020 and not sold before September 30,
2021. For purposes of comparing the nine months ended
September 30, 2021 to the nine months ended September 30,
2020, Same Store includes properties owned before January 1, 2020
and not sold before September 30, 2021. |
|
Whitestone REIT and Subsidiaries |
RECONCILIATION OF NON-GAAP MEASURES |
(continued) |
(in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
% Change From |
|
|
September 30,2021 |
|
June 30,2021 |
|
September 30,2020 |
|
June 30,2021 |
|
September 30,2020 |
EARNINGS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE
(EBITDAre) |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
2,899 |
|
|
$ |
5,126 |
|
|
$ |
900 |
|
|
(43 |
)% |
|
222 |
% |
Depreciation and amortization |
|
7,340 |
|
|
7,105 |
|
|
7,171 |
|
|
3 |
% |
|
2 |
% |
Interest expense |
|
6,142 |
|
|
6,143 |
|
|
6,400 |
|
|
— |
% |
|
(4 |
)% |
Provision for income taxes |
|
100 |
|
|
87 |
|
|
105 |
|
|
15 |
% |
|
(5 |
)% |
Net income attributable to noncontrolling interests |
|
47 |
|
|
92 |
|
|
14 |
|
|
(49 |
)% |
|
236 |
% |
Equity in earnings of real estate partnership |
|
(151 |
) |
|
(189 |
) |
|
(196 |
) |
|
(20 |
)% |
|
(23 |
)% |
EBITDAre adjustments for real estate partnership |
|
807 |
|
|
766 |
|
|
804 |
|
|
5 |
% |
|
— |
% |
Gain on sale of property from discontinued operations |
|
— |
|
|
(1,833 |
) |
|
— |
|
|
N.M. |
|
|
N.M. |
|
(Gain) loss on sale or disposal of assets, net |
|
48 |
|
|
(224 |
) |
|
18 |
|
|
121 |
% |
|
167 |
% |
EBITDAre |
|
17,232 |
|
|
17,073 |
|
|
15,216 |
|
|
1 |
% |
|
13 |
% |
Management fee, net of related expenses |
|
83 |
|
|
83 |
|
|
81 |
|
|
— |
% |
|
2 |
% |
Share-based compensation expense |
|
1,563 |
|
|
1,244 |
|
|
1,645 |
|
|
26 |
% |
|
(5 |
)% |
EBITDAre-Adjusted |
|
$ |
18,878 |
|
|
$ |
18,400 |
|
|
$ |
16,942 |
|
|
3 |
% |
|
11 |
% |
|
|
Nine Months Ended September 30, |
|
% Change From September 30, |
|
|
2021 |
|
2020 |
|
2020 |
EARNINGS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE
(EBITDAre) |
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
9,440 |
|
|
$ |
2,922 |
|
|
223 |
% |
Depreciation and amortization |
|
21,458 |
|
|
21,112 |
|
|
2 |
% |
Interest expense |
|
18,417 |
|
|
19,561 |
|
|
(6 |
)% |
Provision for income taxes |
|
274 |
|
|
288 |
|
|
(5 |
)% |
Net income attributable to noncontrolling interests |
|
165 |
|
|
58 |
|
|
184 |
% |
Equity in earnings of real estate partnership |
|
(429 |
) |
|
(752 |
) |
|
(43 |
)% |
EBITDAre adjustments for real estate partnership |
|
2,258 |
|
|
2,690 |
|
|
(16 |
)% |
Gain on sale of property from discontinued operations |
|
(1,833 |
) |
|
— |
|
|
N.M. |
|
(Gain) loss on sale or disposal of assets, net |
|
(177 |
) |
|
882 |
|
|
N.M. |
|
EBITDAre |
|
49,573 |
|
|
46,761 |
|
|
6 |
% |
Management fee, net of related expenses |
|
246 |
|
|
246 |
|
|
— |
% |
Share-based compensation expense |
|
4,275 |
|
|
4,167 |
|
|
3 |
% |
EBITDAre-Adjusted |
|
$ |
54,094 |
|
|
$ |
51,174 |
|
|
6 |
% |
Whitestone REIT (NYSE:WSR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Whitestone REIT (NYSE:WSR)
Historical Stock Chart
From Apr 2023 to Apr 2024