Whitestone REIT Declares First Quarter 2022 Dividends

Rhea-AI Summary

Whitestone REIT (NYSE: WSR) has declared a monthly cash dividend of $0.035833 per share for the first quarter of 2022, totaling $0.1075 quarterly or $0.43 annually. This marks the company's 137th, 138th, and 139th consecutive monthly dividend distributions. With a current annual yield of 4.5% that exceeds the shopping center industry average of 3.3%, the dividend payout ratio to FFO Core stands at 43%, lower than the industry average of 53%. Notably, Whitestone continues to achieve increased occupancy rates and improve its debt leverage ratio.

Positive

• Monthly cash dividend of $0.035833, equating to an annual dividend of $0.43.
• Dividend yield of 4.5% surpasses the industry average of 3.3%.
• Payout ratio of 43% to FFO Core is lower than the industry average of 53%.
• Increased occupancy by 1% in Q3-2021 compared to Q3-2020.
• Improved debt leverage, reducing debt to EBITDAre ratio from 9.4x to 8.1x.

Negative

• None.

First Quarter 2022 Dividend is Paid Monthly at an Annual Amount of $0.43, representing 43% of Whitestone’s FFO Core⁽¹⁾

HOUSTON, Dec. 16, 2021 (GLOBE NEWSWIRE) -- Whitestone REIT’s (NYSE:WSR) (“Whitestone” or the “Company”) Board of Trustees has declared a monthly cash dividend of $0.035833 per share on the Company’s common shares and operating partnership units. The dividend amount represents a quarterly amount of $0.1075, and an annualized amount of $0.43 per share. The first quarter dividend distribution for 2022 will be as detailed below:

	Month		Record Date	Payment Date	Distribution per Share/Unit
	January		1/4/2022	1/13/2022	$0.035833
	February		2/2/2022	2/11/2022	$0.035833
	March		3/2/2022	3/11/2022	$0.035833

“We are pleased to announce Whitestone’s 137th, 138th and 139th consecutive monthly dividend distributions. Currently, our annual dividend equates to a 4.5% yield⁽²⁾, versus the shopping center industry average yield of 3.3%⁽³⁾, and our pay-out ratio to FFO Core is 43%⁽¹⁾, versus the shopping center industry average pay-out ratio of 53%⁽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 our properties continue to increase in value, our long-term plan is on track with our second off-market acquisition — Anderson Arbor in Austin, TX — for this year, increased occupancy in Q3-2021 of 1% over Q3-2020, and continued improvement in debt leverage, improving our ratio of debt to EBITDAre to 8.1x from 9.4x a year ago.”

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. It creates communities that thrive 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 REIT (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 economic cycles. For additional information, please visit www.whitestonereit.com and www.linkedin.com/company/whitestone-reit.

(1)   For the Quarter ended September 30, 2021
(2)   Based on our December 15, 2021 closing price
(3)   Based on the December 15, 2021 closing price. Includes AKR, BFS, BRX, CDR, FRT, KIM, KRG, REG, ROIC, RPT, SITC, UBA, and UE.
(4)   For the Quarter ended September 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										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).

Media and Investor Contact:
Rebecca Elliott
Vice President, Corporate Communications
(713) 435-2219
relliott@whitestonereit.com

FAQ

What is the dividend amount for WSR in the first quarter of 2022?

Whitestone REIT (WSR) has declared a monthly dividend of $0.035833 per share, totaling $0.43 annually.

When are the payment dates for WSR's first quarter dividends?

The payment dates for WSR's first quarter dividends are January 13, February 11, and March 11, 2022.

How does WSR's dividend yield compare to the shopping center industry?

WSR's current annual dividend yield is 4.5%, which is higher than the shopping center industry average of 3.3%.

What is the payout ratio of WSR compared to the industry average?

WSR's payout ratio to FFO Core is 43%, which is lower than the industry average payout ratio of 53%.

What is the significance of WSR's increased occupancy rates?

Increased occupancy rates indicate stronger demand for Whitestone's properties, positively impacting revenue.