Whitestone REIT (WSR, Financial) released its Q3 2023 earnings report on October 31, 2023. The company reported strong operational performance with a 4.9% increase in revenue and a significant increase in GAAP leasing spreads. The occupancy rate for the quarter was reported at 92.7%.
Operational Highlights
Whitestone REIT (WSR, Financial) reported a strong operational quarter with GAAP leasing spreads of 23.6% on new leases and 24.6% on renewal leases. The company's revenue increased by 4.9%, and the occupancy rate was reported at 92.7%. This marks the sixth consecutive quarter with over 17% increases in combined GAAP leasing spreads. The company is reiterating the guidance from the Q2 2023 earnings call and anticipates finishing the year with a strong Q4.
Financial Performance
For the three-month periods ending September 30, 2023, and 2022, the company's operating highlights showed an increase in occupancy for wholly-owned properties from 92.5% to 92.7%. The same store property net operating income change increased from 4.5% to 4.9%. Rental rate growth on a GAAP basis increased from 19.2% to 24.4%, with new leases showing an increase from 16.5% to 23.6% and renewal leases from 20.0% to 24.6%.
Balance Sheet and Dividend
On September 6, 2023, the company declared a quarterly cash distribution of $0.12 per common share and OP unit for the fourth quarter of 2023, to be paid in three equal installments of $0.04 in October, November, and December of 2023.
2023 Full Year Guidance
The company is reiterating the guidance last updated on August 1, 2023, when it updated its 2023 full-year guidance. The net income attributable to Whitestone REIT is expected to be between $21,500 - $23,600, and FFO (1) is expected to be between $45,750 - $47,850.
Portfolio Statistics
As of September 30, 2023, Whitestone wholly owned 56 Community-Centered Properties™ with 5.0 million square feet of gross leasable area ("GLA"). The portfolio is comprised of 29 properties in Texas, 26 in Arizona, and 1 in Illinois. The company's properties in these markets are generally in high-traffic locations, surrounded by high-household-income communities.
For more details, please refer to the official earnings report.
Explore the complete 8-K earnings release (here) from Whitestone REIT for further details.
