| Month | Record Date | Payment Date | Distribution per Share/Unit | |||
| October | 10/4/2021 | 10/14/2021 | $0.035833 | |||
| November | 11/2/2021 | 11/12/2021 | $0.035833 | |||
| December | 12/2/2021 | 12/13/2021 | $0.035833 | |||
“We are pleased to announce Whitestone’s 134th, 135th and 136th consecutive monthly dividend distributions. As the market continues to closely monitor inflation indicators, we are proud of the fact that we have an inflation hedge built into our leases with a 2% to 3% annual rent increase, and pass on to our tenants Taxes, Insurance, and Common Area Maintenance costs. This has enabled us to consistently provide our shareholders with uninterrupted monthly dividends throughout the history of our company. Currently, our annual dividend equates to a 4.4% yield(2), versus the shopping center industry average of 3.5%(3), and our pay-out ratio to FFO Core is 41%(1), versus the shopping center industry average 50%(4). We believe the financial strength of REITS is their ability to pay a predictable dividend, appreciate, and hedge against inflation. We believe that our business model consistently meets this criteria and provides our shareholders with a predictable dividend, as well as a growth opportunity,” commented Chairman and Chief Executive Officer, Jim Mastandrea.
“As the economy continues to re-open, our long-term plan is on track with our first off-market acquisition of Lakeside Market in Plano, Texas this year, increased occupancy in Q2-2021 of 0.7% over Q2-2020, and continued improvement in debt leverage, reducing debt by $62 million from the second quarter of 2020. With our current portfolio of approximately $230 million of development and redevelopment opportunities on entitled land that we currently own at little to no cost, we believe this will produce an incremental $24 million in NOI, or a 10.6% cash on cash yield on cost, and create a 460 basis point spread or $175 million in value above our development cost. We expect our development program to produce long-term value for our shareholders over the next several years providing both a growth and income opportunity for shareholders.”
About Whitestone REIT
Whitestone is a community-centered shopping center REIT that acquires, owns, manages, develops, and redevelops high-quality neighborhood centers primarily in the largest, fastest-growing and most affluent markets in the Sunbelt.
Whitestone seeks to Create Communities in Our Properties through Creating Local Connections between consumers in the surrounding communities and a well-crafted mix of local, regional and national tenants that provide daily necessities, needed services, entertainment, and experiences.
Whitestone (NYSE: WSR) pays monthly dividends to its shareholders and it has consistently done so 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 and www.linkedin.com/company/whitestone-reit.
(1)for the Quarter ended June 30, 2021
(2)based on our September 10, 2021 closing price
(3)Based on the September 10, 2021 closing price. Includes AKR, BFS, BRX, CDR, FRT, KIM, KRG, REG, ROIC, RPAI, RPT, RVI, SITC, UBA, and UE.
(4)For the Quarter ended June 30, 2021. Includes AKR, BFS, BRX, CDR, FRT, KIM, KRG, REG, ROIC, RPAI, RPT, RVI, SITC, UBA, and UE.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements include statements about our earnings guidance, future liquidity, performance growth and expectations and other matters and can generally be identified by the Company’s use of forward-looking terminology, such as “may,” “will,” “plan,” “expect,” “intend,” “anticipate,” “believe,” “continue,” “goals” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. The following are additional factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: 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 the Company’s business, employees and tenants, including, among others, (a) changes in tenant demand for the Company’s 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 Company’s tenants’ businesses and the impact of these issues on the Company’s ability to collect rent from its tenants; (c) operational changes implemented by the Company, including remote working arrangements, which may put increased strain on IT systems and create increased vulnerability to cybersecurity incidents, (d) significant reduction in the Company’s liquidity due to a reduced borrowing base under its revolving credit 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 fluctuating 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 any resurgences 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; the Company’s ability to meet its long-term goals, including its ability to execute effectively its acquisition and disposition strategy, to continue to execute its development pipeline on schedule and at the expected costs, and its ability to grow its NOI as expected, which could be impacted by a number of factors, including, among other things, its ability to continue to renew leases or re-let space on attractive terms and to otherwise address its leasing rollover; its ability to successfully identify, finance and consummate suitable acquisitions, and the impact of such acquisitions, including financing developments, capitalization rates and internal rates of return; the Company’s ability to reduce or otherwise effectively manage its general and administrative expenses; the Company’s ability to fund from cash flows or otherwise distributions to its shareholders at current rates or at all; current adverse market and economic conditions including, but not limited to, the significant volatility and disruption in the global financial markets caused by the COVID-19 pandemic; lease terminations or lease defaults; the impact of competition on the Company’s efforts to renew existing leases; changes in the economies and other conditions of the specific markets in which the Company operates; economic, legislative and regulatory changes, including changes to laws governing REITs and the impact of the legislation commonly known as the Tax Cuts and Jobs Act; the success of the Company’s real estate strategies and investment objectives; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended; 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.
| Whitestone REIT and Subsidiaries | |||
| RECONCILIATION OF NON-GAAP MEASURES | |||
| (in thousands, except per share and per unit data) | |||
| Three Months Ended | |||
| June 30, 2021 | |||
| FFO (NAREIT) AND FFO CORE | |||
| Net income attributable to Whitestone REIT | $ | 5,126 | |
| Adjustments to reconcile to FFO: | |||
| Depreciation and amortization of real estate assets | 7,068 | ||
| Depreciation and amortization of real estate assets of real estate partnership (pro rata) | 409 | ||
| (Gain) loss on sale or disposal of assets, net | (224 | ) | |
| Loss (gain) on sale of property from discontinued operations | (1,833 | ) | |
| (Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata) | (20 | ) | |
| Net income attributable to noncontrolling interests | 92 | ||
| FFO (NAREIT) | 10,618 | ||
| Adjustments to reconcile to FFO Core: | |||
| Share-based compensation expense | 1,244 | ||
| FFO Core | $ | 11,862 | |
| FFO PER SHARE AND OP UNIT CALCULATION | |||
| Numerator: | |||
| FFO | $ | 10,618 | |
| Distributions paid on unvested restricted common shares | – | ||
| FFO excluding amounts attributable to unvested restricted common shares | $ | 10,618 | |
| FFO Core excluding amounts attributable to unvested restricted common shares | $ | 11,862 | |
| Denominator: | |||
| Weighted average number of total common shares – basic | 43,378 | ||
| Weighted average number of total noncontrolling OP units – basic | 773 | ||
| Weighted average number of total common shares and noncontrolling OP units – basic | 44,151 | ||
| Effect of dilutive securities: | |||
| Unvested restricted shares | 747 | ||
| Weighted average number of total common shares and noncontrolling OP units – diluted | 44,898 | ||
| FFO per common share and OP unit – basic | $ | 0.24 | |
| FFO per common share and OP unit – diluted | $ | 0.24 | |
| FFO Core per common share and OP unit – basic | $ | 0.27 | |
| FFO Core per common share and OP unit – diluted | $ | 0.26 | |
| Quarterly Dividend | $ | 0.1075 | |
| Dividend to FFO Core Payout Ratio | 41 | % | |
Contact Whitestone REIT:
Rebecca Elliott
Vice President, Corporate Communications
(713) 435-2219
relliott@whitestonereit.com
