Latest news with #ChristineMastandrea
Yahoo
13-05-2025
- Business
- Yahoo
Whitestone Bolsters Its Austin Portfolio, Buys San Clemente
Shares of Whitestone REIT WSR closed 5.2% higher on May 8, 2025, at market close, after the retail REIT announced the acquisition of San Clemente, a restaurant-anchored retail center, spanning 31,832 square feet, in Davenport, Austin, TX, as investors cheered this purchase. The move comes as part of the company's growth strategy to bolster its portfolio with the center's strong dynamics and its retailer relationships in the upscale neighborhoods it serves — Davenport Ranch, Westlake, Rob Roy and Barton Creek. Located at the intersection along Loop 360, in the vicinity of the Apple and Tesla campuses and many other technology companies, San Clemente is the fifth addition to Whitestone's portfolio of neighborhood shopping centers in Texas's capital city, benefiting from strong inbound migration and a booming tech sector. The tenant roster includes names like Fresa's, a local Mexican specialty, which anchors the property, Iron Fitness, a training and fitness facility and Greenlake Energy, an energy technology company. The center offers unique advantages, serving an affluent population with an average household income exceeding $280,000, strict development restrictions curbing oversupply and efficient connectivity, with more than 55,000 vehicles per day in support traffic. According to Whitestone REIT COO, Christine Mastandrea, 'This center has all of the dynamics we look for, including strong surrounding schools, a community with a robust job market and upwardly mobile families and the potential to actively remerchandise the center.' Whitestone REIT is a fully integrated real estate investment trust that acquires, owns, manages, develops and redevelops high-quality, internet-resistant neighborhood, community and lifestyle retail centers. Whitestone's properties are principally located in Austin, Dallas-Fort Worth, Houston, San Antonio, TX, and Phoenix, AZ. The acquisition of San Clemente will boost its portfolio in line with its strategy of enhancing its asset base with properties enjoying a solid trade area. Strategically located within a three-mile radius of Pennybacker Bridge and Red Bud Trail, the center will benefit from the two main river crossings in the Austin area, which bound all the vehicles across the Colorado River to the Westlake Drive and Loop 360 thoroughfares. The upcoming Four Seasons development, with around 200 high-end residences, is also likely to drive strong footfall. However, the market is witnessing a shift in retail shopping from brick-and-mortar stores to Internet sales. This is expected to adversely impact the market share for brick-and-mortar stores like WSR. Moreover, market uncertainties arising from policy shifts, economic volatility and anticipations of high inflation remain major concerns. Over the past three months, shares of this Zacks Rank #4 (Sell) company have declined 7.6%, underperforming the industry's fall of 0.3%. Image Source: Zacks Investment Research Some better-ranked stocks from the broader REIT sector are Digital Realty Trust DLR and Cousins Properties CUZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for Digital Realty Trust's 2025 FFO per share stands at $7.09, which indicates an increase of 5.7% from the year-ago quarter. The Zacks Consensus Estimate for Cousins Properties' 2025 FFO per share is pegged at $2.79, which suggests year-over-year growth of 3.7%. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report Whitestone REIT (WSR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-03-2025
- Business
- Yahoo
Whitestone REIT (WSR) Q4 2024 Earnings Call Highlights: Strong Growth Amidst Market Challenges
Core FFO per Share: $1.01 in 2024, representing 11% growth from $0.91 in 2023. Same Store NOI Growth: 5.8% for Q4 2024 and 5.1% for the full year. Occupancy Rate: 94.1% at the end of 2024. Debt to EBITDAre Ratio: Improved from 9.2 times in Q4 2021 to 6.6 times in Q4 2024. Dividend Growth: Raised by over 9% in December, with a CAGR of 6.5% since 2021. Leasing Spreads: Renewal leasing spreads of 19% and new leasing spreads of 36.1% in Q4 2024. Cash Flow from Operations: $58.2 million in 2024. Dividends Paid: $24.9 million in 2024. Available Liquidity: $15 million in cash and $125 million available under the credit facility. Warning! GuruFocus has detected 8 Warning Signs with WSR. Release Date: March 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Whitestone REIT (NYSE:WSR) achieved a compound annual growth rate of 5.5% for core FFO per share over the past three years, despite a challenging interest rate environment. The company reduced its leverage significantly, improving its debt to EBITDAre ratio from 9.2 times in Q4 2021 to 6.6 times in Q4 2024. Whitestone REIT (NYSE:WSR) reported strong same store NOI growth of 5.1% for 2024, driven by proactive tenant upgrades and strategic redevelopment. The company raised its dividend by over 9% in December, maintaining a 6.5% CAGR since 2021, with a payout ratio of approximately 50% of core FFO. Whitestone REIT (NYSE:WSR) has a strategic focus on high-value, high-return shop spaces, which provide flexibility and adaptability to changing market demands. Interest rate increases over the past three years have posed a significant challenge, causing a double-digit drag on earnings. The company's guidance does not include assumptions for non-same store NOI growth due to uncertainties in acquisition timing. Whitestone REIT (NYSE:WSR) faces competition in the acquisition space, with increased interest from other capital sources. The company anticipates continued costs related to the Pillarstone liquidation process, impacting G&A expenses. Lease termination fees, which contributed to 2024 earnings, are not guaranteed to occur at the same level in 2025, adding uncertainty to future earnings projections. Q: Can you provide details on the redevelopment opportunities and their timelines? A: Christine Mastandrea, Chief Operating Officer, explained that there are pad sites and larger centers that are well-placed but older, which are being actively repositioned. The redevelopment of larger centers is ongoing, with some having longer timelines. The focus is on aligning delivery timing with execution and cash flow. Q: How does Whitestone plan to balance leverage reduction with increased external deployment efforts? A: David Holeman, Chief Executive Officer, stated that the core business's momentum and strong cash flow position the company well. They will focus on disciplined growth through redevelopment, leverage improvement, and potential acquisitions, ensuring all efforts contribute to earnings growth. Q: What is the competitive environment for acquisitions, and how does it affect Whitestone's strategy? A: David Holeman noted increased interest in their market space but emphasized Whitestone's unique approach, focusing on smaller shop spaces and being agnostic about grocery anchors. Their deep market relationships and differentiated strategy position them well despite competition. Q: What is the status of the Regis lease expiration and the mark-to-market opportunity? A: Christine Mastandrea highlighted the demand for boutique office spaces in mixed-use areas like Uptown Galleria, Houston. The location is attractive for tenants moving from downtown, and there is a positive dynamic for office space in this area. Q: Can you provide an update on the Pillarstone liquidation process? A: David Holeman mentioned that the liquidation process is nearing completion, with all properties either sold, under contract, or with offers. The expected proceeds are well above the $45 million recorded on the balance sheet, and guidance will be updated as proceeds are received. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
