Core FFO per Share: Increased by 5.4% year over year to $0.26 for the quarter and $0.51 for the six months.

Occupancy Rate: Grew 100 basis points sequentially from Q1 to 93.9%.

Average Base Rent per Lease Square Foot: Increased by 5.3% year over year.

Same Store NOI Growth: 2.5% for the quarter and 3.9% for the six months.

Leasing Spreads: 17.9% for the quarter, with new leases at 41.4% and renewals at 15.2%.

Property Transactions: Acquisitions totaled $153 million and dispositions approximately $126 million since Q4 2022.

Debt to EBITDA: Improved to 7.2 times from 7.8 times year over year.

Cash and Credit Facility: $5.3 million in cash and $69 million available under the credit facility at the end of the quarter.

Dividend Payout: Approximately 50% of FFO, with plans to grow in conjunction with earnings growth.

Release Date: July 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Whitestone REIT (NYSE:WSR) reported a 5.4% year-over-year increase in core FFO per share, demonstrating strong financial performance.

The company achieved a 100 basis point sequential increase in occupancy from Q1, reaching 93.9%.

Whitestone REIT (NYSE:WSR) successfully executed two strategic acquisitions in high-growth markets, enhancing its portfolio.

The company is on track to meet its 2025 full-year guidance, reaffirming its core FFO per share and same-store NOI growth targets.

Whitestone REIT (NYSE:WSR) has a robust capital recycling program, with $153 million in acquisitions and $126 million in dispositions since Q4 2022, strengthening its portfolio.

Negative Points

Interest expenses have increased slightly due to acquisitions preceding dispositions, impacting financial performance.

The anticipated benefits from new tenants like Pickler are expected to be minimal in the current year due to early concession periods.

The company faces tough comparisons in the upcoming quarters, which may challenge its ability to meet forecasts.

Whitestone REIT (NYSE:WSR) has a relatively high debt to EBITDA ratio, although it has improved from the previous year.

The timing of acquisitions and dispositions may affect leverage and financial flexibility in the short term.

Q & A Highlights

Q: What gives you confidence in meeting your forecast for the back part of the year despite tough comps? A: David K. Holeman, CEO, explained that detailed forecasting and tenant activities, such as increasing occupancy by 100 basis points from Q1, contribute to future same-store NOI growth. Scott Hogan, CFO, added that large tenants under contract are in free rent periods, which will positively impact future quarters.