Whitestone REIT (WSR) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 4.02%
• Average Volume (3M): 262.41K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.70
• Revenue Growth: 4.39%
• EPS Growth: 24.45%
• Country: US
• Employees: 72
• Sector: Real Estate
• Sector Strength: 79
• Industry: REIT - Retail
• EPS (TTM): 0.07
• Shares Outstanding: 50,894,943
• 10 Day Avg. Volume: 229,704
• 30 Day Avg. Volume: 262,409
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 18.93
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.50
• Price Target Upside: 21.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Whitestone REIT's overall score reflects its strong financial performance and positive earnings call outcomes, with robust revenue growth and operational efficiency. However, high leverage and recent declines in occupancy pose risks. Technical indicators suggest caution due to prevailing bearish trends. Valuation remains fair, with a strong dividend yield balancing a higher P/E ratio.

Positive Factors

Dividend and Returns

Over the next four quarters, a dividend yield of 4.3% and stock price appreciation of 19.6% is expected, resulting in an estimated 12-month total return of about 24%.

Financial Performance

WSR reported 4Q24 results with core funds from operations beating consensus, demonstrating strong financial performance.

Leverage and Debt Management

Management has diligently chipped away at its leverage ratio, measured by debt/EBITDA, as the year ended at the lower end of guidance, while the ratio has declined significantly since management took the helm.

Negative Factors

Debt Levels

The company does have slightly higher than average level of debt and preferred totaling ~48.5% to total capitalization.

Guidance and Projections

WSR's guidance falls below estimates and consensus, impacting its financial outlook.

Whitestone REIT Business Overview & Revenue Model

Company Description

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 and most affluent markets in the Sunbelt. Whitestone seeks to create 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 over 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.

How the Company Makes Money

Whitestone REIT generates revenue primarily through leasing its real estate properties to various tenants in its shopping centers. The company collects rental income from long-term lease agreements with a diverse tenant base, including national and local retailers, service providers, and restaurants. Additional revenue streams include tenant reimbursements for property operating expenses, such as maintenance and utilities, as well as income from ancillary services and strategic partnerships. Whitestone REIT's focus on necessity-based retailers and properties in economically vibrant regions helps to maintain stable occupancy rates and consistent cash flow. The company also seeks to enhance property value and rental income through proactive property management and targeted capital improvements.

Whitestone REIT Financial Statement Overview

Summary

Whitestone REIT exhibits strong revenue and profit growth, with efficient cost management. The balance sheet shows a high but manageable debt level with solid equity returns. Cash flow generation is robust, supporting operations and future investments. Overall, financial performance is commendable, though leverage requires attention.

Income Statement

Whitestone REIT has demonstrated strong revenue growth over the past few years, with a Revenue Growth Rate of 4.30% from 2023 to 2024. The Gross Profit Margin stands at 70.21%, indicating efficient cost management. Net Profit Margin improved to 23.92%, reflecting enhanced profitability. The EBIT and EBITDA margins are robust at 32.56% and 68.32%, respectively, showcasing strong operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio is 1.44, which is relatively high, suggesting a significant reliance on debt financing. However, the Return on Equity (ROE) is strong at 8.42%, indicating effective use of equity financing. The Equity Ratio stands at 43.74%, revealing a healthy proportion of equity in the capital structure, although there is room for improvement in reducing leverage.

Cash Flow

Whitestone REIT's Free Cash Flow Growth Rate is 22.30%, demonstrating improved cash generation. The Operating Cash Flow to Net Income Ratio is 1.58, indicating strong cash flow relative to net income. The Free Cash Flow to Net Income Ratio is also favorable at 1.58, reflecting efficient cash conversion. Overall, the cash flow position is solid, supporting ongoing operations and potential investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
154.28M	147.92M	140.58M	125.36M	117.92M
	Gross Profit
73.41M	101.96M	97.28M	86.04M	79.34M
	EBIT
51.45M	48.34M	46.66M	35.19M	30.93M
	EBITDA
91.03M	87.18M	78.36M	64.14M	59.23M
	Net Income Common Stockholders
36.89M	19.18M	35.27M	12.05M	6.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.22M	4.57M	6.17M	15.72M	25.78M
	Total Assets
1.13B	1.11B	1.10B	1.10B	1.05B
	Total Debt
632.36M	640.89M	626.16M	642.84M	644.18M
	Net Debt
627.13M	636.32M	620.00M	627.12M	618.41M
	Total Liabilities
690.80M	693.62M	678.31M	703.05M	706.68M
	Stockholders Equity
438.15M	413.74M	418.45M	392.78M	332.08M
Cash Flow		Free Cash Flow
58.23M	47.60M	44.43M	48.87M	42.78M
	Operating Cash Flow
58.23M	47.60M	44.43M	48.87M	42.78M
	Investing Cash Flow
-16.01M	-36.31M	-6.71M	-91.23M	-6.44M
	Financing Cash Flow
-31.49M	-13.00M	-47.28M	32.31M	-26.02M

Whitestone REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSR, the sentiment is Negative. The current price of 12.76 is below the 20-day moving average (MA) of 12.98, below the 50-day MA of 13.63, and below the 200-day MA of 13.58, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSR.

Whitestone REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTY	74 Outperform	$1.56B	23.24	7.23%	6.55%	7.80%	4.15%
SITC	72 Outperform	$623.57M	1.22	39.40%	9.99%	-29.17%	102.41%
NTST	71 Outperform	$1.32B	―	-0.88%	5.19%	21.91%	-257.05%
WSR	70 Outperform	$1.29B	21.03	7.33%	4.02%	4.39%	24.45%
BFS	63 Neutral	$797.90M	20.20	14.81%	7.15%	4.64%	-5.26%
CBL	60 Neutral	$744.31M	11.24	21.87%	6.62%	0.03%	1997.67%
Sector *	60 Neutral	$2.82B	11.31	0.21%	8508.30%	6.32%	-13.73%

Whitestone REIT Corporate Events

Whitestone REIT Strengthens Board with New Appointments

Whitestone REIT has appointed Kristian M. Gathright and Donald A. Miller to its Board of Trustees, reflecting shareholder feedback and enhancing the board with their vast real estate expertise. Gathright, with a strong background in operations and strategic decision-making at Apple Hospitality REIT, and Miller, known for his leadership at Piedmont Office Realty Trust, bring valuable insights and experience to Whitestone’s growth strategy. These changes aim to drive shareholder value and support the company’s continued success in the competitive real estate market.