Attached files
| file | filename |
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| EX-99.1 - EX-99.1 - Whitestone REIT | exhibit991pressreleaseofwh.htm |
| 8-K - 8-K - Whitestone REIT | wsr-20210224.htm |
| TABLE OF CONTENTS | |||||
| Page | |||||
| COVID-19 - Status of Tenants | |||||
| CORPORATE PROFILE | ||||||||||||||||||||||||||
| NYSE: WSR | Whitestone REIT (NYSE: WSR) is a community-centered shopping center REIT that aquires, owns, manages, | |||||||||||||||||||||||||
| Common Shares | develops and redevelops high quality open-air neighborhood centers primarily in the largest, fastest-growing and | |||||||||||||||||||||||||
| most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through | ||||||||||||||||||||||||||
58 Community Centers | creating local connections between consumers in the surrounding communities and a well-crafted mix of national, | |||||||||||||||||||||||||
5.0 million sq. ft. of gross | regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone | |||||||||||||||||||||||||
| leasable area | has consistently paid a monthly dividend for over 15 years. The Company’s balanced and well-managed | |||||||||||||||||||||||||
1,391 tenants | capital structure provides stability and flexibility to support it through a multitude of economic cycles. | |||||||||||||||||||||||||
| 6 Top Growth Markets | We invest in properties that are or can become Community Centered Properties® from which our tenants deliver | |||||||||||||||||||||||||
| Austin | needed services to the surrounding population. We focus on properties with smaller rental spaces that present | |||||||||||||||||||||||||
| Chicago | opportunities for attractive returns. | |||||||||||||||||||||||||
| Dallas-Fort Worth | ||||||||||||||||||||||||||
| Houston | Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide services to their | |||||||||||||||||||||||||
| Phoenix | respective surrounding communities. Operations include an internal management structure providing cost-effective | |||||||||||||||||||||||||
| San Antonio | services to locally-oriented, smaller space tenants. Multi-cultural community focus sets us apart from traditional | |||||||||||||||||||||||||
commercial real estate operators. We value diversity on our team and maintain in-house leasing, property | ||||||||||||||||||||||||||
| Fiscal Year End | management, marketing, construction and maintenance departments with culturally diverse and multi-lingual | |||||||||||||||||||||||||
| 12/31 | associates who understand the particular needs of our tenants and neighborhoods. | |||||||||||||||||||||||||
| Common Shares & | We have a diverse tenant base concentrated on service offerings such as specialty retail, grocery, restaurants, | |||||||||||||||||||||||||
| Units Outstanding*: | medical, educational and financial services and entertainment. These tenants tend to occupy smaller spaces (less | |||||||||||||||||||||||||
Common Shares: 42.4 million | than 3,000 square feet) and, as of December 31, 2020, provided a 48% premium rental rate compared to our larger | |||||||||||||||||||||||||
| Operating Partnership Units: | space tenants. The largest of our 1,391 tenants at our wholly owned properties comprised only 2.8% of our | |||||||||||||||||||||||||
0.8 million | annualized base rental revenues for the three months ended December 31, 2020. | |||||||||||||||||||||||||
| Distribution (per share / unit)*: | ||||||||||||||||||||||||||
| Quarter: $ 0.1075 | Investor Relations: | |||||||||||||||||||||||||
| Annualized: $ 0.43 | Whitestone REIT | ICR Inc. | ||||||||||||||||||||||||
| Dividend Yield: 4.5%** | Kevin Reed, Director of Investor Relations | Brad Cohen | ||||||||||||||||||||||||
| 2600 South Gessner, Suite 500, Houston, Texas 77063 | 203.682.8211 | |||||||||||||||||||||||||
| Board of Trustees: | 713.435.2219 email: ir@whitestonereit.com | |||||||||||||||||||||||||
| Nandita V. Berry | website: www.whitestonereit.com | |||||||||||||||||||||||||
| Jeffrey A. Jones | ||||||||||||||||||||||||||
| Paul T. Lambert | Analyst Coverage: | |||||||||||||||||||||||||
| Jack L. Mahaffey | B. Riley FBR | JMP Securities | Maxim Group | Ladenburg Thalmann | ||||||||||||||||||||||
| James C. Mastandrea | Craig Kucera | Aaron Hecht | Michael Diana | John J. Massocca | ||||||||||||||||||||||
| David F. Taylor | 540.277.3366 | 415.835.3963 | 212.895.3641 | 212.409.2543 | ||||||||||||||||||||||
| Trustee Emeritus: | ckucera@brileyfbr.com | ahecht@jmpsecurities.com | mdiana@maximgrp.com | jmassocca@ladenburg.com | ||||||||||||||||||||||
| Daniel G. DeVos | ||||||||||||||||||||||||||
| * As of February 23, 2021 | ||||||||||||||||||||||||||
| ** Based on common share price | ||||||||||||||||||||||||||
| of $9.59 as of close of market on | ||||||||||||||||||||||||||
| February 23 2021. | ||||||||||||||||||||||||||
We are followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding our performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of our management. We do not by our reference above or distribution imply our endorsement of or concurrence with such information, conclusions or recommendations. | ||||||||||||||||||||||||||
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WHITESTONE REIT
REPORTS FOURTH QUARTER AND FULL YEAR 2020 RESULTS & PROVIDES COVID-19 UPDATE
-Net Income Per Diluted Share Attributable to Whitestone REIT of $0.07 for the Fourth Quarter and $0.14 for the Full Year-
-Leading the Shopping Center Industry in Foot Traffic Recovery at its Properties(1)-
Houston, Texas, February 24, 2021 - Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the fourth quarter and full year of 2020 with an update on its business activities in light of the ongoing COVID-19 pandemic. Whitestone is a community-centered shopping center REIT that acquires, owns, manages, develops and redevelops high-quality open-air neighborhood centers primarily in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through creating local connections between consumers in the surrounding communities. This is accomplished by providing a well-crafted mix of national, regional and local tenants that provide daily necessities, needed services, entertainment and experiences at each of our centers. Whitestone has consistently paid a monthly dividend since its public commencement. Whitestone’s strong balanced and well-managed capital structure provides stability and flexibility to support it through a multitude of economic cycles.
Fourth Quarter Operating and Full Year Operating and Financial Highlights:
All per share amounts are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.
Included in fourth quarter and full year net income attributable to common shareholders and funds from operations is a $1.7 million gain from PPP Loan forgiveness.
•Full Year Net Income attributable to common shareholders of $0.14 per diluted share
•Full Year 2020 Funds from Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), was $0.83 per share
•Full Year FFO Core was $0.93 per share
•Fourth Quarter Net Income attributable to common shareholders of $0.07 per diluted share
•Fourth Quarter FFO of $0.23 per share
•Fourth Quarter FFO Core of $0.24 per share
•Comparable GAAP-based leasing spreads of 6.8% for the quarter and 8.9% for the year
•Same-store Net Operating Income (“NOI”) decreased 4.2% and 4.4% for the three and twelve month periods, respectively
•Bad debt/uncollectable revenue for the quarter was $1.3 million, or $0.03 per share, primarily due to COVID-19 pandemic and included $151,000 of non-cash straight-line rent
•Total Net Debt, defined as outstanding debt plus pro rata share of outstanding debt of real estate partnership less cash and pro rata share of cash of real estate partnership, reduced $12.0 Million, or 2% from prior year
COVID-19 Update Summary (as of February 23, 2021)
•All 53 community centers are open and have remained open throughout the pandemic
•99% of tenants are open and operating (based on ABR)
•95% of fourth quarter 2020 contractual rents have been collected
•96% of total January contractual rents have been collected to date
•Entered into rent deferral agreements representing 3% of fourth quarter 2020 revenue
•Grew cash and cash equivalents by $10.2 million from prior year
Jim Mastandrea, Chairman and Chief Executive Officer of Whitestone REIT, commented, “Whitestone’s strong performance and operating trends throughout the pandemic, achieving near-or-top-of-the-industry’s quarterly cash rental collections, and leading the shopping center industry in foot traffic recovery at our properties, sets it apart. Our focus since the pandemic started was to protect our employees, tenants, and the value of our properties so we can continue to produce stable cash flows. Through the sheer dedication and unyielding efforts of our associates, we were able to stabilize our properties and produce stellar rental collection results, while also continuing to lease space. As exemplified by our recent dividend increase, our cash flow remains strong and we remain firmly committed to serving all of our stakeholders by continuing to outperform.”
(1) Source: S&P Global Market Intelligence (S&P), December 7,2020. Whitestone REIT (NYSE: WSR) ranked first in year-over-year recovery in Black Friday foot traffic. The analysis by S&P, which sourced data from AirSage, reveals that the foot traffic in Whitestone centers has recovered to 80.4% of the previous year’s foot traffic levels as compared to the overall public shopping center industry average of a 48% recovery.
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Includes properties owned by Acadia Realty Trust, Brixmor Property Group Inc., Cedar Realty Trust, Inc., SITE Center Corp, Federal Realty Investment Trust, Kimco Realty Corporation, Kite Realty Group Trust, RPT Realty, Regency Centers Corporation, Retail Opportunity Investments Corp., Retail Properties of America, Inc., Retail Value Inc., Saul Centers, Inc., Urban Edge Properties, Urstadt Biddle Properties Inc., Weingarten Realty Investors, Wheeler Real Estate Investment Trust Inc. and Whitestone REIT.
Financial Results
Reconciliations of Net Income Attributable to Whitestone REIT to FFO, FFO Core and NOI are included herein.
Net income attributable to common shareholders for the quarter ended December 31, 2020 was $3.1 million, or $0.07 per diluted share, inclusive of $1.3 million or $0.03 per share, related to credit loss and straight-line rent reserve, primarily due to the impact of the COVID-19 pandemic. Net income attributable to common shareholders for the quarter ended December 31, 2019 was $15.8 million, or $0.37 per share.
FFO for the quarter ended December 31, 2020 was $10.2 million, or $0.23 per share, as compared to $8.9 million, or $0.21 per share for the quarter ended December 31, 2019. FFO Core for the quarter ended December 31, 2020 was $10.4 million or $0.24 per share, compared to $11.1 million, or $0.26 per share for the quarter ended December 31, 2019. The change in FFO is primarily the result of a $1.7 million gain from PPP loan forgiveness offset by $1.3 million of bad debt/uncollectable revenue primarily related to the impact of the COVID-19 pandemic. FFO Core excludes the $1.7 million PPP loan forgiveness and the change is primarily the result of $1.3 million of bad debt/uncollectable revenue primarily related to the impact of the COVID-19 pandemic.
Operating Results
For the periods ending December 31, 2020, the Company’s operating highlights were as follows:
| Q4-2020 | YTD 2020 | |||||||
| Occupancy: | ||||||||
| Wholly Owned Properties | 88.2% | 88.2% | ||||||
Same Store Property Net Operating Income Change(1) | (4.2)% | (4.4)% | ||||||
| Rental Rate Growth - Total (GAAP Basis): | 6.8% | 8.9% | ||||||
| New Leases | (5.4)% | (0.4)% | ||||||
| Renewal Leases | 10.1% | 11.1% | ||||||
| Leasing Transactions: | ||||||||
| Number of New Leases | 28 | 105 | ||||||
| New Leases - Annualized Revenue (millions) | $6.5 | $27.6 | ||||||
| Number of Renewal Leases | 56 | 201 | ||||||
| Renewal Leases - Annualized Revenue (millions) | $12.5 | $47.9 | ||||||
(1) Excludes straight-line rent, amortization of above/below market rates and lease termination fees in both periods.
Real Estate Portfolio Update
Community Centered PropertiesTM Portfolio Statistics:
As of December 31, 2020, Whitestone wholly owned 58 Community Centered PropertiesTM with 5.0 million square feet of gross leasable area ("GLA"). Five of the 58 Community Centered PropertiesTM are land parcels held for future development. The portfolio is comprised of 30 properties in Texas, 27 in Arizona and one in Illinois. Whitestone’s Community Centered PropertiesTM are located in Austin (4), San Antonio (3), Chicago (1), Dallas-Fort Worth (8), Houston (15) and the greater Phoenix metropolitan area (27). In addition to being business friendly, these are six of the top markets in the country in terms of size, economic strength and population growth. 2017 estimates show the projected 5-year population growth rates for both Austin and Dallas-Fort Worth to be 9.7%, San Antonio to be 8.6%, Houston to be 8.0%, and Phoenix to be 6.6% (2). The Company’s properties in these markets are generally located on the best retail corners embedded in affluent communities. The Company also owns an 81.4% equity interest in and manages eight properties containing 0.9 million square feet of GLA through its investment in Pillarstone OP.
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At the end of the fourth quarter, the Company’s diversified tenant base was comprised of 1,391 tenants, with the largest tenant accounting for only 2.8% of annualized base rental revenues. Lease terms range from less than one year for smaller tenants to over 15 years for larger tenants. Whitestone’s leases generally include minimum monthly lease payments and tenant reimbursements for payment of taxes, insurance and maintenance, and typically exclude restrictive lease clauses.
(2) Source: Claritas, as of April 2017.
COVID-19 Update Summary
During the fourth quarter of 2020, the COVID-19 pandemic continued to impact the Company’s operations. As February 23, 2021, approximately 99% (% of ABR) of the Company’s tenants were open for business. Cash collections for the quarter totaled 95% of contractual rents, up from 90% in the prior quarter. These strong collections are a result of the Company’s strategic locations, well-crafted tenant mix and the efforts of its team members in proactively working with tenants to assist them through these difficult times. Cash collections in January 2021 are 96% collected to date.
Balance Sheet and Liquidity
At December 31, 2020, Whitestone had $25.8 million in cash and cash equivalents, $18.4 million of availability and $130.5 million of capacity under its credit facility.
On March 24, 2020, to enhance its liquidity, Whitestone drew $30.0 million on its credit facility. During 2020, Whitestone repaid $12.2 million in mortgage debt and repaid $20 million of borrowings under its credit facility, fully repaying all liquidity borrowings by year-end. Whitestone has no real estate debt maturing until 2022.
The Company has undepreciated real estate assets of $1.1 billion at December 31, 2020.
At December 31, 2020, 51 of the Company’s wholly owned 58 properties were unencumbered by mortgage debt, with an undepreciated cost basis of $825.6 million. At December 31, 2020, the Company had total real estate debt, net of cash, of $619.4 million, of which approximately 85% was subject to fixed interest rates. The Company’s weighted average interest rate on all fixed rate debt as of the end of the fourth quarter was 4.1% and the weighted average remaining term was 4.4 years.
Dividend
On December 10, 2020, the Company declared a quarterly cash distribution of $0.105 per common share and OP unit for the first quarter of 2021, to be paid in three equal installments of $0.035 in January, February, and March of 2021. On February 10, 2021, the Company raised its quarterly distribution to $0.1075 per common share and OP units, equal to a monthly distribution of $0.035833, beginning with the March 2021 distribution.
Conference Call Information
In conjunction with the issuance of its financial results, the Company invites you to listen to the its earnings release conference call to be broadcast live on Thursday, February 25, 2021 at 8:00 A.M. Central Time. The call will be led by James C. Mastandrea, Chairman and Chief Executive Officer, and David K. Holeman, Chief Financial Officer. Conference call access information is as follows:
Dial-in number for domestic participants: (877) 407-4018
Dial-in number for international participants: (201) 689-8471
The conference call will be recorded, and a telephone replay will be available through Thursday, March 11, 2021. Replay access information is as follows:
Replay number for domestic participants: | (844) 512-2921 | ||||
Replay number for international participants: | (412) 317-6671 | ||||
Passcode (for all participants): | 13715688 | ||||
To listen to a webcast of the conference call, click on the Investor Relations tab of the Company’s website, www.whitestonereit.com, and then click on the webcast link. A replay of the call will be available on Whitestone’s website via
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the webcast link until the Company’s next earnings release. Additional information about Whitestone can be found on the Company’s website.
The fourth quarter and full year earnings release and supplemental data package will be located in the Investor Relations section of the Company’s website. For those without internet access, the earnings release and supplemental data package will be available by mail upon request. To receive a copy, please call the Company’s Investor Relations line at (713) 435-2219.
Supplemental Financial Information
Supplemental materials and details regarding Whitestone's results of operations, communities and tenants are available on the Company's website at www.whitestonereit.com.
About Whitestone REIT
Whitestone is a community-centered shopping center REIT that acquires, owns, manages, develops and redevelops high-quality open-air neighborhood centers primarily in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through creating local connections between consumers in the surrounding communities and a well-crafted mix of national, regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone is a monthly dividend paying stock and has consistently paid dividends for over 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.
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 the lack of further availability 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 premature easing of 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 a surge 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
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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 and potential volatility as a result of the U.S. presidential election; 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.
Non-GAAP Financial Measures
This release contains supplemental financial measures that are not calculated pursuant to U.S. generally accepted accounting principles (“GAAP”) including EBITDAre, EBITDAre-Adjusted, FFO, FFO Core, and NOI. Following are explanations and reconciliations of these metrics to their most comparable GAAP metric.
EBITDAre: NAREIT defines EBITDAre as net income computed in accordance with GAAP, plus interest expense, income tax expense, depreciation and amortization and impairment write-downs of depreciable property and of investments in unconsolidated affiliates caused by a decrease in value of depreciable property in the affiliate, plus, or minus losses and gains on the disposition of depreciable property, including losses/gains on change in control and adjustments to reflect the entity’s share of EBITDAre of the unconsolidated affiliates and consolidated affiliates with non-controlling interests. The Company calculates EBITDAre in a manner consistent with the NAREIT definition. Management believes that EBITDAre will represent a supplemental non-GAAP performance measure that will provide investors with a relevant basis for comparing REITs. There can be no assurance the EBITDAre as presented by the Company is comparable to similarly titled measures of other REITs. EBITDAre should not should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.
EBITDAre-Adjusted: The Company also presents EBITDAre-Adjusted as an additional supplemental measure as we believe it is reflective of the core operating performance of our portfolio of properties. EBITDAre-Adjusted is defined as NAREIT EBITDAre excluding charges and gains related to non-cash and non-operating transactions and other events that could affect the comparability of operating results. Specific examples of items excluded from EBITDAre-Adjusted include, but are not limited to, share-based compensation, proxy contest costs and management fees, net of related costs. There can be no assurance that EBITDAre-Adjusted as presented by the Company is comparable to similarly titled measures of other REITs. EBITDAre-Adjusted should not be considered an alternative to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre-Adjusted does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.
FFO: Funds From Operations: Management believes that FFO is a useful measure of the Company's operating performance. The Company computes FFO as defined by NAREIT, which states that FFO should represent net income (loss) (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of the Company's performance or to cash flow from operations as a measure of liquidity or ability to make distributions and service debt.
Management considers FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, management believes that FFO provides a more meaningful and accurate indication of the Company's performance and useful information for the investment community to compare Whitestone to other REITs since FFO is generally recognized as the industry standard for reporting the operations of REITs.
Other REITs may use different methodologies for calculating FFO, and accordingly, the Company's FFO may not be comparable to other REITs. The Company presents FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding OP units for the periods presented.
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FFO Core: Funds From Operations Core: Management believes that the computation of FFO in accordance with NAREIT's definition includes certain non-cash and non-comparable items that affect the Company's period-over-period performance. These items include, but are not limited to, legal settlements, proxy contest fees, debt extension costs, non-cash share-based compensation expense and rent support agreement payments received from sellers on acquired assets. In addition, the Company believes that FFO Core is a useful supplemental measure for the investing community to use in comparing the Company to other REITs as many REITs provide some form of adjusted or modified FFO. However, other REITs may use different adjustments, and the Company's FFO Core may not be comparable to the adjusted or modified FFO of other REITs.
NOI: Net Operating Income: Management believes that NOI is a useful measure of the Company's property operating performance. The Company defines NOI as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, pro rata share of NOI of unconsolidated entities and capital expenditures and leasing costs, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company's results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about the Company's property and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of property performance in the real estate industry. However, NOI should not be viewed as a measure of the Company's overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company's NOI may not be comparable to that of other REITs.
Same Store NOI: Management believes that Same Store NOI is a useful measure of the Company’s property operating performance because it includes only the properties that have been owned for the entire period being compared, and that it is frequently used by the investment community. Same Store NOI assists in eliminating differences in NOI due to the acquisition or disposition of properties during the period being presented, providing a more consistent measure of the Company’s performance. The Company defines Same Store NOI as operating revenues (rental and other revenues, excluding straight-line rent adjustments, amortization of above/below market rents, and lease termination fees) less property and related expenses (property operation and maintenance and real estate taxes), Non-Same Store NOI, and NOI of our investment in Pillarstone OP (pro rata). We define “Non-Same Stores” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. Other REITs may use different methodologies for calculating Same Store NOI, and accordingly, the Company's Same Store NOI may not be comparable to that of other REITs.
Investors Contact:
Kevin Reed, Director of Investor Relations
Whitestone REIT
(713) 435-2219
ir@whitestonereit.com
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| Whitestone REIT and Subsidiaries | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||
| ASSETS | ||||||||||||||
| Real estate assets, at cost | ||||||||||||||
| Property | $ | 1,106,426 | $ | 1,099,955 | ||||||||||
| Accumulated depreciation | (163,712) | (137,933) | ||||||||||||
| Total real estate assets | 942,714 | 962,022 | ||||||||||||
| Investment in real estate partnership | 33,979 | 34,097 | ||||||||||||
| Cash and cash equivalents | 25,777 | 15,530 | ||||||||||||
| Restricted cash | 179 | 113 | ||||||||||||
| Escrows and acquisition deposits | 9,274 | 8,388 | ||||||||||||
Accrued rents and accounts receivable, net of allowance for doubtful accounts (1) | 23,009 | 22,854 | ||||||||||||
| Receivable due from related party | 335 | 477 | ||||||||||||
| Unamortized lease commissions, legal fees and loan costs | 7,686 | 8,960 | ||||||||||||
Prepaid expenses and other assets(2) | 2,049 | 3,819 | ||||||||||||
| Total assets | $ | 1,045,002 | $ | 1,056,260 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Liabilities: | ||||||||||||||
| Notes payable | $ | 644,185 | $ | 644,699 | ||||||||||
Accounts payable and accrued expenses(3) | 50,918 | 39,336 | ||||||||||||
| Payable due to related party | 125 | 307 | ||||||||||||
| Tenants' security deposits | 6,916 | 6,617 | ||||||||||||
| Dividends and distributions payable | 4,532 | 12,203 | ||||||||||||
| Total liabilities | 706,676 | 703,162 | ||||||||||||
| Commitments and contingencies: | — | — | ||||||||||||
| Equity: | ||||||||||||||
| Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of December 31, 2020 and December 31, 2019 | — | — | ||||||||||||
| Common shares, $0.001 par value per share; 400,000,000 shares authorized; 42,391,316 and 41,492,117 issued and outstanding as of December 31, 2020 and December 31, 2019, respectively | 42 | 41 | ||||||||||||
| Additional paid-in capital | 562,250 | 554,816 | ||||||||||||
| Accumulated deficit | (215,809) | (204,049) | ||||||||||||
| Accumulated other comprehensive loss | (14,400) | (5,491) | ||||||||||||
| Total Whitestone REIT shareholders' equity | 332,083 | 345,317 | ||||||||||||
| Noncontrolling interest in subsidiary | 6,243 | 7,781 | ||||||||||||
| Total equity | 338,326 | 353,098 | ||||||||||||
| Total liabilities and equity | $ | 1,045,002 | $ | 1,056,260 | ||||||||||
8
Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands)
| December 31, 2020 | December 31, 2019 | |||||||||||||
(1) Accrued rents and accounts receivable, net of allowance for doubtful accounts | ||||||||||||||
| Tenant receivables | $ | 22,956 | $ | 16,741 | ||||||||||
| Accrued rents and other recoveries | 16,348 | 16,983 | ||||||||||||
| Allowance for doubtful accounts | (16,426) | (11,173) | ||||||||||||
| Other receivables | 131 | 303 | ||||||||||||
| Total accrued rents and accounts receivable, net of allowance for doubtful accounts | $ | 23,009 | $ | 22,854 | ||||||||||
(2) Operating lease right of use assets (net) | $ | 592 | $ | 1,328 | ||||||||||
(3) Operating lease liabilities | $ | 603 | $ | 1,331 | ||||||||||
9
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
Rental(1) | $ | 28,968 | $ | 29,487 | $ | 115,084 | $ | 117,014 | ||||||||||||||||||
| Management, transaction, and other fees | 866 | 613 | 2,831 | 2,237 | ||||||||||||||||||||||
| Total revenues | 29,834 | 30,100 | 117,915 | 119,251 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Depreciation and amortization | 7,191 | 6,875 | 28,303 | 26,740 | ||||||||||||||||||||||
| Operating and maintenance | 5,542 | 5,851 | 20,563 | 20,611 | ||||||||||||||||||||||
| Real estate taxes | 4,424 | 3,819 | 18,015 | 16,293 | ||||||||||||||||||||||
General and administrative | 5,699 | 5,147 | 21,303 | 21,661 | ||||||||||||||||||||||
| Total operating expenses | 22,856 | 21,692 | 88,184 | 85,305 | ||||||||||||||||||||||
| Other expenses (income) | ||||||||||||||||||||||||||
| Interest expense | 6,209 | 6,547 | 25,770 | 26,285 | ||||||||||||||||||||||
| Loss (gain) on sale or disposal of assets, net | (518) | (753) | 364 | (638) | ||||||||||||||||||||||
| Gain on loan forgiveness | (1,734) | — | (1,734) | — | ||||||||||||||||||||||
| Interest, dividend and other investment income | (72) | (109) | (278) | (659) | ||||||||||||||||||||||
| Total other expense | 3,885 | 5,685 | 24,122 | 24,988 | ||||||||||||||||||||||
| Income before equity investment in real estate partnership and income tax | 3,093 | 2,723 | 5,609 | 8,958 | ||||||||||||||||||||||
| Equity in earnings of real estate partnership | 169 | 13,596 | 921 | 15,076 | ||||||||||||||||||||||
| Provision for income tax | (91) | (76) | (379) | (400) | ||||||||||||||||||||||
| Income from continuing operations | 3,171 | 16,243 | 6,151 | 23,634 | ||||||||||||||||||||||
| Loss (gain) on sale of property from discontinued operations | — | (107) | — | 594 | ||||||||||||||||||||||
| Income from discontinued operations | — | (107) | — | 594 | ||||||||||||||||||||||
| Net income | 3,171 | 16,136 | 6,151 | 24,228 | ||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 59 | 360 | 117 | 545 | ||||||||||||||||||||||
| Net income attributable to Whitestone REIT | $ | 3,112 | $ | 15,776 | $ | 6,034 | $ | 23,683 | ||||||||||||||||||
10
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Basic Earnings Per Share: | ||||||||||||||||||||||||||
Income from continuing operations attributable to Whitestone REIT, excluding amounts attributable to unvested restricted shares | $ | 0.07 | $ | 0.39 | $ | 0.14 | $ | 0.57 | ||||||||||||||||||
Income from discontinued operations attributable to Whitestone REIT | 0.00 | 0.00 | 0.00 | 0.02 | ||||||||||||||||||||||
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares | $ | 0.07 | $ | 0.39 | $ | 0.14 | $ | 0.59 | ||||||||||||||||||
| Diluted Earnings Per Share: | ||||||||||||||||||||||||||
Income from continuing operations attributable to Whitestone REIT, excluding amounts attributable to unvested restricted shares | $ | 0.07 | $ | 0.38 | $ | 0.14 | $ | 0.56 | ||||||||||||||||||
Income from discontinued operations attributable to Whitestone REIT | 0.00 | (0.01) | 0.00 | 0.01 | ||||||||||||||||||||||
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares | $ | 0.07 | $ | 0.37 | $ | 0.14 | $ | 0.57 | ||||||||||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 42,368 | 40,614 | 42,244 | 40,184 | ||||||||||||||||||||||
| Diluted | 43,337 | 42,090 | 42,990 | 41,462 | ||||||||||||||||||||||
| Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||||
| Net income | $ | 3,171 | $ | 16,136 | $ | 6,151 | $ | 24,228 | ||||||||||||||||||
| Other comprehensive income (loss) | ||||||||||||||||||||||||||
| Unrealized gain (loss) on cash flow hedging activities | 1,333 | 1,912 | (9,062) | (9,828) | ||||||||||||||||||||||
| Comprehensive income (loss) | 4,504 | 18,048 | (2,911) | 14,400 | ||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 59 | 360 | 117 | 545 | ||||||||||||||||||||||
| Less: Comprehensive income (loss) attributable to noncontrolling interests | 30 | 43 | (173) | (221) | ||||||||||||||||||||||
| Comprehensive income (loss) attributable to Whitestone REIT | $ | 4,415 | $ | 17,645 | $ | (2,855) | $ | 14,076 | ||||||||||||||||||
11
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(1) Rental | ||||||||||||||||||||||||||
| Rental revenues | $ | 21,700 | $ | 21,998 | $ | 87,291 | $ | 86,750 | ||||||||||||||||||
| Recoveries | 8,466 | 8,047 | 33,442 | 31,748 | ||||||||||||||||||||||
| Bad debt | (1,198) | (558) | (5,649) | (1,484) | ||||||||||||||||||||||
| Total rental | $ | 28,968 | $ | 29,487 | $ | 115,084 | $ | 117,014 | ||||||||||||||||||
12
| Whitestone REIT and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | ||||||||||||||
| Year Ended December 31, | ||||||||||||||
| 2020 | 2019 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income from continuing operations | $ | 6,151 | $ | 23,634 | ||||||||||
| Net income from discontinued operations | — | 594 | ||||||||||||
| Net income | 6,151 | 24,228 | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 28,303 | 26,740 | ||||||||||||
| Amortization of deferred loan costs | 1,113 | 1,095 | ||||||||||||
| Gain on sale or disposal of assets and loan forgiveness, net | (1,370) | (638) | ||||||||||||
| Bad debt | 5,649 | 1,484 | ||||||||||||
| Share-based compensation | 6,063 | 6,483 | ||||||||||||
| Equity in earnings of real estate partnership | (921) | (15,076) | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Escrows and acquisition deposits | (885) | (177) | ||||||||||||
| Accrued rents and accounts receivable | (6,055) | (2,998) | ||||||||||||
| Receivable due from related party | 142 | (83) | ||||||||||||
| Distributions from real estate partnership | 1,039 | 6,926 | ||||||||||||
| Unamortized lease commissions, legal fees and loan costs | (1,343) | (1,824) | ||||||||||||
| Prepaid expenses and other assets | 2,255 | (4,163) | ||||||||||||
| Accounts payable and accrued expenses | 2,518 | 5,609 | ||||||||||||
| Payable due to related party | (182) | 249 | ||||||||||||
| Tenants' security deposits | 299 | 487 | ||||||||||||
| Net cash provided by operating activities | 42,776 | 47,748 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Acquisitions of real estate | — | (34,804) | ||||||||||||
| Additions to real estate | (7,362) | (13,243) | ||||||||||||
| Proceeds from note receivable | 922 | — | ||||||||||||
| Proceeds from financed receivable due from related party | — | 5,661 | ||||||||||||
| Net cash used in investing activities | (6,440) | (42,386) | ||||||||||||
| Net cash provided by investing activities of discontinued operations | — | 594 | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Distributions paid to common shareholders | (25,203) | (45,627) | ||||||||||||
| Distributions paid to OP unit holders | (511) | (1,055) | ||||||||||||
| Proceeds from issuance of common shares, net of offering costs | 2,241 | 21,244 | ||||||||||||
| Payments of exchange offer costs | (43) | (120) | ||||||||||||
| Proceeds from bonds and notes payable | 1,734 | 100,000 | ||||||||||||
| Net proceeds from (payments of) credit facility | 10,000 | (66,700) | ||||||||||||
| Repayments of notes payable | (12,164) | (8,095) | ||||||||||||
| Payments of loan origination costs | — | (2,970) | ||||||||||||
| Repurchase of common shares | (2,077) | (776) | ||||||||||||
| Net cash used in financing activities | (26,023) | (4,099) | ||||||||||||
| Net increase in cash, cash equivalents and restricted cash | 10,313 | 1,857 | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 15,643 | 13,786 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period (1) | $ | 25,956 | $ | 15,643 | ||||||||||
(1) For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below.
13
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Supplemental Disclosures
(in thousands)
| Year Ended December 31, | ||||||||||||||
| 2020 | 2019 | |||||||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||||
| Cash paid for interest | $ | 24,741 | $ | 25,360 | ||||||||||
| Cash paid for taxes | $ | 353 | $ | 396 | ||||||||||
| Non cash investing and financing activities: | ||||||||||||||
| Disposal of fully depreciated real estate | $ | 88 | $ | 234 | ||||||||||
| Financed insurance premiums | $ | 1,431 | $ | 1,238 | ||||||||||
| Value of shares issued under dividend reinvestment plan | $ | 89 | $ | 137 | ||||||||||
| Value of common shares exchanged for OP units | $ | 1,162 | $ | 186 | ||||||||||
| Change in fair value of cash flow hedge | $ | (9,062) | $ | (9,828) | ||||||||||
| Reallocation of ownership percentage between parent and subsidiary | $ | (20) | $ | — | ||||||||||
| Property received as termination fee | $ | 251 | $ | — | ||||||||||
| December 31, | ||||||||||||||
| 2020 | 2019 | |||||||||||||
| Cash, cash equivalents and restricted cash | ||||||||||||||
| Cash and cash equivalents | $ | 25,777 | $ | 15,530 | ||||||||||
| Restricted cash | 179 | 113 | ||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 25,956 | $ | 15,643 | ||||||||||
14
Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| FFO (NAREIT) AND FFO CORE | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
| Net income attributable to Whitestone REIT | $ | 3,112 | $ | 15,776 | $ | 6,034 | $ | 23,683 | ||||||||||||||||||
| Adjustments to reconcile to FFO: | ||||||||||||||||||||||||||
| Depreciation and amortization of real estate assets | 7,153 | 6,811 | 28,096 | 26,468 | ||||||||||||||||||||||
Depreciation and amortization of real estate assets of real estate partnership (pro rata) | 411 | 441 | 1,673 | 2,362 | ||||||||||||||||||||||
| Loss (gain) on sale or disposal of assets | (518) | (753) | 364 | (638) | ||||||||||||||||||||||
| Loss (gain) on sale of property from discontinued operations | — | 107 | — | (594) | ||||||||||||||||||||||
| Loss (gain) on sale or disposal of properties or assets of real estate partnership (pro rata) | 13 | (13,820) | 91 | (13,800) | ||||||||||||||||||||||
Net income attributable to noncontrolling interests | 59 | 360 | 117 | 545 | ||||||||||||||||||||||
| FFO (NAREIT) | 10,230 | 8,922 | 36,375 | 38,026 | ||||||||||||||||||||||
| Adjustments to reconcile to FFO Core: | ||||||||||||||||||||||||||
| Share-based compensation expense | 1,896 | 1,713 | 6,063 | 6,483 | ||||||||||||||||||||||
| Early debt extinguishment costs of real estate partnership | — | 426 | — | 426 | ||||||||||||||||||||||
| Gain on loan forgiveness | (1,734) | — | (1,734) | — | ||||||||||||||||||||||
| FFO Core | $ | 10,392 | $ | 11,061 | $ | 40,704 | $ | 44,935 | ||||||||||||||||||
| FFO PER SHARE AND OP UNIT CALCULATION | ||||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||
| FFO | $ | 10,230 | $ | 8,922 | $ | 36,375 | $ | 38,026 | ||||||||||||||||||
Distributions paid on unvested restricted common shares | — | — | — | (41) | ||||||||||||||||||||||
FFO excluding amounts attributable to unvested restricted common shares | $ | 10,230 | $ | 8,922 | $ | 36,375 | $ | 37,985 | ||||||||||||||||||
FFO Core excluding amounts attributable to unvested restricted common shares | $ | 10,392 | $ | 11,061 | $ | 40,704 | $ | 44,894 | ||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||
Weighted average number of total common shares - basic | 42,368 | 40,614 | 42,244 | 40,184 | ||||||||||||||||||||||
Weighted average number of total noncontrolling OP units - basic | 773 | 922 | 821 | 924 | ||||||||||||||||||||||
Weighted average number of total common shares and noncontrolling OP units - basic | 43,141 | 41,536 | 43,065 | 41,108 | ||||||||||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||||||||
| Unvested restricted shares | 969 | 1,476 | 746 | 1,278 | ||||||||||||||||||||||
Weighted average number of total common shares and noncontrolling OP units - diluted | 44,110 | 43,012 | 43,811 | 42,386 | ||||||||||||||||||||||
| FFO per common share and OP unit - basic | $ | 0.24 | $ | 0.21 | $ | 0.84 | $ | 0.92 | ||||||||||||||||||
| FFO per common share and OP unit - diluted | $ | 0.23 | $ | 0.21 | $ | 0.83 | $ | 0.90 | ||||||||||||||||||
| FFO Core per common share and OP unit - basic | $ | 0.24 | $ | 0.27 | $ | 0.95 | $ | 1.09 | ||||||||||||||||||
FFO Core per common share and OP unit - diluted | $ | 0.24 | $ | 0.26 | $ | 0.93 | $ | 1.06 | ||||||||||||||||||
Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| PROPERTY NET OPERATING INCOME | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
| Net income attributable to Whitestone REIT | $ | 3,112 | $ | 15,776 | $ | 6,034 | $ | 23,683 | ||||||||||||||||||
| General and administrative expenses | 5,699 | 5,147 | 21,303 | 21,661 | ||||||||||||||||||||||
| Depreciation and amortization | 7,191 | 6,875 | 28,303 | 26,740 | ||||||||||||||||||||||
| Equity in earnings of real estate partnership | (169) | (13,596) | (921) | (15,076) | ||||||||||||||||||||||
| Interest expense | 6,209 | 6,547 | 25,770 | 26,285 | ||||||||||||||||||||||
| Interest, dividend and other investment income | (72) | (109) | (278) | (659) | ||||||||||||||||||||||
| Provision for income taxes | 91 | 76 | 379 | 400 | ||||||||||||||||||||||
| Loss (gain) on sale of property from discontinued operations | — | 107 | — | (594) | ||||||||||||||||||||||
| Management fee, net of related expenses | 88 | 22 | 334 | (42) | ||||||||||||||||||||||
| Loss (gain) on sale or disposal of assets, net | (518) | (753) | 364 | (638) | ||||||||||||||||||||||
| Gain on loan forgiveness | (1,734) | — | (1,734) | — | ||||||||||||||||||||||
| NOI of real estate partnership (pro rata) | 982 | 1,121 | 4,232 | 6,273 | ||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 59 | 360 | 117 | 545 | ||||||||||||||||||||||
| NOI | 20,938 | 21,573 | 83,903 | 88,578 | ||||||||||||||||||||||
Non-Same Store NOI (1) | (257) | (267) | (1,691) | (155) | ||||||||||||||||||||||
| NOI of real estate partnership (pro rata) | (982) | (1,121) | (4,232) | (6,273) | ||||||||||||||||||||||
| NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata) | 19,699 | 20,185 | 77,980 | 82,150 | ||||||||||||||||||||||
| Same Store straight-line rent adjustments | (8) | (192) | 632 | (1,110) | ||||||||||||||||||||||
| Same Store amortization of above/below market rents | (198) | (72) | (787) | (761) | ||||||||||||||||||||||
| Same Store lease termination fees | (585) | (176) | (1,613) | (576) | ||||||||||||||||||||||
Same Store NOI (2) | $ | 18,908 | $ | 19,745 | $ | 76,212 | $ | 79,703 | ||||||||||||||||||
(1) We define “Non-Same Store” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. For purposes of comparing the three months ended December 31, 2020 to the three months ended December 31, 2019, Non-Same Store includes properties acquired between October 1, 2019 and December 31, 2020 and properties sold between October 1, 2019 and December 31, 2020, but not included in discontinued operations. For purposes of comparing the twelve months ended December 31, 2020 to the twelve months ended December 31, 2019, Non-Same Store includes properties acquired between January 1, 2019 and December 31, 2020 and properties sold between January 1, 2019 and December 31, 2020, but not included in discontinued operations.
(2) We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended December 31, 2020 to the three months ended December 31, 2019, Same Store includes properties owned before October 1, 2019 and not sold before December 31, 2020. For purposes of comparing the twelve months ended December 31, 2020 to the twelve months ended December 31, 2019, Same Store includes properties owned before January 1, 2019 and not sold before December 31, 2020.
Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
| Net income attributable to Whitestone REIT | $ | 3,112 | $ | 15,776 | $ | 6,034 | $ | 23,683 | ||||||||||||||||||
| Depreciation and amortization | 7,191 | 6,875 | 28,303 | 26,740 | ||||||||||||||||||||||
| Interest expense | 6,209 | 6,547 | 25,770 | 26,285 | ||||||||||||||||||||||
| Provision for income taxes | 91 | 76 | 379 | 400 | ||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 59 | 360 | 117 | 545 | ||||||||||||||||||||||
| Equity in earnings of real estate partnership | (169) | (13,596) | (921) | (15,076) | ||||||||||||||||||||||
| EBITDAre adjustments for real estate partnership | 794 | 1,039 | 3,484 | 5,939 | ||||||||||||||||||||||
| Loss (gain) on sale of property from discontinued operations | — | 107 | — | (594) | ||||||||||||||||||||||
| Loss (gain) on sale or disposal of assets, net | (518) | (753) | 364 | (638) | ||||||||||||||||||||||
| Gain on loan forgiveness | (1,734) | — | (1,734) | — | ||||||||||||||||||||||
| EBITDAre | 15,035 | 16,431 | 61,796 | 67,284 | ||||||||||||||||||||||
| Management fee, net of related expenses | 88 | 22 | 334 | (42) | ||||||||||||||||||||||
| Share-based compensation expense | 1,896 | 1,713 | 6,063 | 6,483 | ||||||||||||||||||||||
| EBITDAre-Adjusted | $ | 17,019 | $ | 18,166 | $ | 68,193 | $ | 73,725 | ||||||||||||||||||
15
Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)
| Three Months Ended December 31, | ||||||||||||||||||||||||||
| 2020 | 2019 | Change | Percent Change | |||||||||||||||||||||||
Same Store (51 properties, excluding development land) | ||||||||||||||||||||||||||
| Property revenues | ||||||||||||||||||||||||||
| Rental | $ | 28,384 | $ | 29,237 | $ | (853) | (3) | % | ||||||||||||||||||
| Management, transaction and other fees | 724 | 355 | 369 | 104 | % | |||||||||||||||||||||
| Total property revenues | 29,108 | 29,592 | (484) | (2) | % | |||||||||||||||||||||
| Property expenses | ||||||||||||||||||||||||||
| Property operation and maintenance | 5,186 | 5,641 | (455) | (8) | % | |||||||||||||||||||||
| Real estate taxes | 4,223 | 3,766 | 457 | 12 | % | |||||||||||||||||||||
| Total property expenses | 9,409 | 9,407 | 2 | 0 | % | |||||||||||||||||||||
| Total property revenues less total property expenses | 19,699 | 20,185 | (486) | (2) | % | |||||||||||||||||||||
| Same Store straight-line rent adjustments | (8) | (192) | 184 | (96) | % | |||||||||||||||||||||
| Same Store amortization of above/below market rents | (198) | (72) | (126) | 175 | % | |||||||||||||||||||||
| Same Store lease termination fees | (585) | (176) | (409) | 232 | % | |||||||||||||||||||||
Same Store NOI (1) | $ | 18,908 | $ | 19,745 | $ | (837) | (4) | % | ||||||||||||||||||
(1) For a reconciliation of Same Store NOI, see previous section “Reconciliation of Non-GAAP Measures.”
16
Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)
| Year Ended December 31, | ||||||||||||||||||||||||||
| 2020 | 2019 | Change | Percent Change | |||||||||||||||||||||||
Same Store (51 properties, excluding development land) | ||||||||||||||||||||||||||
| Property revenues | ||||||||||||||||||||||||||
| Rental | $ | 112,057 | $ | 116,764 | $ | (4,707) | (4) | % | ||||||||||||||||||
| Management, transaction and other fees | 2,199 | 1,286 | 913 | 71 | % | |||||||||||||||||||||
| Total property revenues | 114,256 | 118,050 | (3,794) | (3) | % | |||||||||||||||||||||
| Property expenses | ||||||||||||||||||||||||||
| Property operation and maintenance | 19,081 | 19,655 | (574) | (3) | % | |||||||||||||||||||||
| Real estate taxes | 17,195 | 16,245 | 950 | 6 | % | |||||||||||||||||||||
| Total property expenses | 36,276 | 35,900 | 376 | 1 | % | |||||||||||||||||||||
| Total property revenues less total property expenses | 77,980 | 82,150 | (4,170) | (5) | % | |||||||||||||||||||||
| Same Store straight-line rent adjustments | 632 | (1,110) | 1,742 | (157) | % | |||||||||||||||||||||
| Same Store amortization of above/below market rents | (787) | (761) | (26) | 3 | % | |||||||||||||||||||||
| Same Store lease termination fees | (1,613) | (576) | (1,037) | 180 | % | |||||||||||||||||||||
Same Store NOI (1) | $ | 76,212 | $ | 79,703 | $ | (3,491) | (4) | % | ||||||||||||||||||
(1) For a reconciliation of Same Store NOI, see previous section “Reconciliation of Non-GAAP Measures.”
17
Whitestone REIT and Subsidiaries
OTHER FINANCIAL INFORMATION
(in thousands, except number of properties and employees)
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Other Financial Information: | ||||||||||||||||||||||||||
Tenant improvements (1) (2) | $ | 549 | $ | 1,432 | $ | 2,813 | $ | 4,122 | ||||||||||||||||||
Leasing commissions (1) (2) | $ | 313 | $ | 473 | $ | 1,270 | $ | 2,664 | ||||||||||||||||||
Maintenance capital (1) | $ | 972 | $ | 1,215 | $ | 3,815 | $ | 5,048 | ||||||||||||||||||
Scheduled debt principal payments (1) | $ | 438 | $ | 460 | $ | 1,879 | $ | 2,005 | ||||||||||||||||||
Straight-line rent income (1) | $ | 7 | $ | 217 | $ | (667) | $ | 1,372 | ||||||||||||||||||
Market rent amortization income from acquired leases (1) | $ | 237 | $ | 68 | $ | 823 | $ | 724 | ||||||||||||||||||
Non-cash share-based compensation expense (1) | $ | 1,896 | $ | 1,713 | $ | 6,063 | $ | 6,483 | ||||||||||||||||||
Non-real estate depreciation and amortization (1) | $ | 39 | $ | 64 | $ | 207 | $ | 272 | ||||||||||||||||||
Amortization of loan fees (1) | $ | 280 | $ | 354 | $ | 1,131 | $ | 1,229 | ||||||||||||||||||
| Undepreciated value of unencumbered properties | $ | 825,637 | $ | 802,545 | $ | 825,637 | $ | 802,545 | ||||||||||||||||||
| Number of unencumbered properties | 51 | 50 | 51 | 50 | ||||||||||||||||||||||
| Full time employees | 88 | 108 | 88 | 108 | ||||||||||||||||||||||
(1) Includes pro-rata share attributable to real estate partnership.
(2) Does not include first generation costs needed for new acquisitions, development or redevelopment of a property to bring the property to operating standards for its intended use.
18
Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(in thousands, except per share amounts and percentages)
| As of December 31, 2020 | ||||||||||||||||||||
| MARKET CAPITALIZATION: | Percent of Total Equity | Total Market Capitalization | Percent of Total Market Capitalization | |||||||||||||||||
| Equity Capitalization: | ||||||||||||||||||||
| Common shares outstanding | 98.2 | % | 42,391 | |||||||||||||||||
| Operating partnership units outstanding | 1.8 | % | 773 | |||||||||||||||||
| Total | 100.0 | % | 43,164 | |||||||||||||||||
| Market price of common shares as of | ||||||||||||||||||||
| December 31, 2020 | $ | 7.97 | ||||||||||||||||||
| Total equity capitalization | 344,017 | 36 | % | |||||||||||||||||
| Debt Capitalization: | ||||||||||||||||||||
| Outstanding debt | $ | 645,163 | ||||||||||||||||||
| Less: Cash and cash equivalents | (25,777) | |||||||||||||||||||
| Total debt capitalization | 619,386 | 64 | % | |||||||||||||||||
| Total Market Capitalization as of | ||||||||||||||||||||
| December 31, 2020 | $ | 963,403 | 100 | % | ||||||||||||||||
| SELECTED RATIOS: | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| INTEREST COVERAGE RATIO | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
| EBITDAre/Interest Expense | ||||||||||||||||||||||||||
EBITDAre (1) | $ | 15,035 | $ | 16,431 | $ | 61,796 | $ | 67,284 | ||||||||||||||||||
Interest expense | 6,209 | 6,547 | 25,770 | 26,285 | ||||||||||||||||||||||
Pro rata share of interest expense from real estate partnership | 160 | 684 | 650 | 1,947 | ||||||||||||||||||||||
Less: amortization of loan fees, including pro rata share from real estate partnership | (280) | (354) | (1,131) | (1,229) | ||||||||||||||||||||||
Interest expense, excluding amortization of loan fees | 6,089 | 6,877 | 25,289 | 27,003 | ||||||||||||||||||||||
| Ratio of EBITDAre to interest expense | 2.5 | 2.4 | 2.4 | 2.5 | ||||||||||||||||||||||
(1) For a reconciliation of EBITDAre, see previous section “Reconciliation of Non-GAAP Measures.”
19
Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(continued)
(in thousands, except per share amounts and percentages)
| LEVERAGE RATIO | December 31, | |||||||||||||
| 2020 | 2019 | |||||||||||||
| Debt/Undepreciated Book Value | ||||||||||||||
| Outstanding debt | $ | 645,163 | $ | 645,896 | ||||||||||
| Less: Cash | (25,777) | (15,530) | ||||||||||||
Add: Proportional share of net debt of real estate partnership | 8,912 | 9,944 | ||||||||||||
| Outstanding debt after cash | $ | 628,298 | $ | 640,310 | ||||||||||
| Undepreciated real estate assets | $ | 1,106,426 | $ | 1,099,955 | ||||||||||
Add: Proportional share of real estate from unconsolidated partnership | 45,848 | 45,496 | ||||||||||||
| Undepreciated real estate assets | $ | 1,152,274 | $ | 1,145,451 | ||||||||||
| Ratio of debt to real estate assets | 55 | % | 56 | % | ||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Debt/EBITDAre Ratio | ||||||||||||||||||||||||||
| Outstanding debt | $ | 645,163 | $ | 645,896 | $ | 645,163 | $ | 645,896 | ||||||||||||||||||
| Less: Cash | (25,777) | (15,530) | (25,777) | (15,530) | ||||||||||||||||||||||
Add: Proportional share of net debt of unconsolidated real estate partnership | 8,912 | 9,944 | 8,912 | 9,944 | ||||||||||||||||||||||
| Total Net Debt | $ | 628,298 | $ | 640,310 | $ | 628,298 | $ | 640,310 | ||||||||||||||||||
| EBITDAre | $ | 15,035 | $ | 16,431 | $ | 61,796 | $ | 67,284 | ||||||||||||||||||
| Management fee, net of related expenses | 88 | 22 | 334 | (42) | ||||||||||||||||||||||
| Share based compensation | 1,896 | 1,713 | 6,063 | 6,483 | ||||||||||||||||||||||
| EBITDAre-Adjusted | $ | 17,019 | $ | 18,166 | $ | 68,193 | $ | 73,725 | ||||||||||||||||||
| Effect of partial period acquisitions and dispositions | — | 428 | — | 711 | ||||||||||||||||||||||
| Pro forma EBITDAre-Adjusted | 17,019 | 18,594 | 68,193 | 74,436 | ||||||||||||||||||||||
| Pro forma annualized EBITDAre-Adjusted | $ | 68,076 | $ | 74,376 | $ | 68,193 | $ | 74,436 | ||||||||||||||||||
| Ratio of debt to pro forma EBITDAre-Adjusted | 9.2 | 8.6 | 9.2 | 8.6 | ||||||||||||||||||||||
20
Whitestone REIT and Subsidiaries
SUMMARY OF OUTSTANDING DEBT AND DEBT MATURITIES
TOTAL OUTSTANDING DEBT
(in thousands)
| Description | December 31, 2020 | December 31, 2019 | ||||||||||||
| Fixed rate notes | ||||||||||||||
$10.5 million, 4.85% Note, paid off on September 24, 2020 (1) | $ | — | $ | 9,260 | ||||||||||
$100.0 million, 1.73% plus 1.35% to 1.90% Note, due October 30, 2022 (2) | 100,000 | 100,000 | ||||||||||||
$165.0 million, 2.24% plus 1.35% to 1.90% Note, due January 31, 2024 (3) | 165,000 | 165,000 | ||||||||||||
| $80.0 million, 3.72% Note, due June 1, 2027 | 80,000 | 80,000 | ||||||||||||
| $19.0 million 4.15% Note, due December 1, 2024 | 18,687 | 19,000 | ||||||||||||
| $20.2 million 4.28% Note, due June 6, 2023 | 18,222 | 18,616 | ||||||||||||
| $14.0 million 4.34% Note, due September 11, 2024 | 13,236 | 13,482 | ||||||||||||
| $14.3 million 4.34% Note, due September 11, 2024 | 14,014 | 14,243 | ||||||||||||
| $15.1 million 4.99% Note, due January 6, 2024 | 14,165 | 14,409 | ||||||||||||
| $2.6 million 5.46% Note, due October 1, 2023 | 2,339 | 2,386 | ||||||||||||
| $50.0 million, 5.09% Note, due March 22, 2029 | 50,000 | 50,000 | ||||||||||||
| $50.0 million, 5.17% Note, due March 22, 2029 | 50,000 | 50,000 | ||||||||||||
| Floating rate notes | ||||||||||||||
Unsecured line of credit, LIBOR plus 1.40% to 1.90%, due January 31, 2023 (4) | 119,500 | 109,500 | ||||||||||||
| Total notes payable principal | 645,163 | 645,896 | ||||||||||||
| Less deferred financing costs, net of accumulated amortization | (978) | (1,197) | ||||||||||||
| Total notes payable | $ | 644,185 | $ | 644,699 | ||||||||||
(1) Promissory note includes an interest rate swap that fixed the interest rate at 3.55% for the duration of the term through September 24, 2018 and 4.85% beginning September 25, 2018 through September 24, 2020. The promissory note was paid off in September 2020.
(2) Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 3 at 1.73%.
(3) Promissory note includes an interest rate swap that fixed the LIBOR portion of the interest rate at an average rate of 2.24% for the duration of the term through January 31, 2024.
(4) Unsecured line of credit includes certain Pillarstone Properties as of December 31, 2018, in determining the amount of credit available under the 2018 Facility which were released from collateral during 2019.
SCHEDULE OF DEBT MATURITIES AS OF DECEMBER 31, 2020
(in thousands)
| Year | Amount Due | |||||||
| 2021 | $ | 1,829 | ||||||
| 2022 | 101,683 | |||||||
| 2023 | 147,363 | |||||||
| 2024 | 228,573 | |||||||
| 2025 | 17,143 | |||||||
| Thereafter | 148,572 | |||||||
| Total | $ | 645,163 | ||||||
21
Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS
| Gross Leasable Area as of | Occupancy % as of | |||||||||||||||||||||||||||||||
| December 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
Community Centered Properties® | 2020 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||||||||||
| Whitestone | 4,953,571 | 88 | % | 89 | % | 89 | % | 90 | % | |||||||||||||||||||||||
Unconsolidated real estate partnership | 926,798 | 61 | % | 62 | % | 67 | % | 69 | % | |||||||||||||||||||||||
22
Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS
(continued)
| Tenant Name | Location | Annualized Rental Revenue (in thousands) | Percentage of Total Annualized Base Rental Revenues (1) | Initial Lease Date | Year Expiring | |||||||||||||||||||||||||||
Safeway Stores Incorporated (2) | Austin, Houston and Phoenix | $ | 2,419 | 2.8 | % | 11/14/1982, 5/8/1991, 7/1/2000, 4/1/2014, 4/1/2014 and 10/19/16 | 2021, 2021, 2022, 2024, 2025 and 2034 | |||||||||||||||||||||||||
| Whole Foods Market | Houston | 2,247 | 2.6 | % | 9/3/2014 | 2035 | ||||||||||||||||||||||||||
| Frost Bank | Houston | 1,948 | 2.3 | % | 7/1/2014 | 2024 | ||||||||||||||||||||||||||
| Newmark Real Estate of Houston LLC | Houston | 1,050 | 1.2 | % | 10/1/2015 | 2026 | ||||||||||||||||||||||||||
Verizon Wireless (3) | Houston and Phoenix | 950 | 1.1 | % | 8/16/1994, 2/1/2004, 5/10/2004, 1/27/2006 and 5/1/2014 | 2022, 2023, 2024, 2024 and 2038 | ||||||||||||||||||||||||||
Walgreens & Co. (4) | Houston and Phoenix | 946 | 1.1 | % | 11/14/1982, 11/2/1987, 8/24/1996 and 11/3/1996 | 2022, 2027, 2049 and 2056 | ||||||||||||||||||||||||||
Bashas' Inc. (5) | Phoenix | 848 | 1.0 | % | 10/9/2004 and 4/1/2009 | 2024 and 2029 | ||||||||||||||||||||||||||
| Alamo Drafthouse Cinema | Austin | 690 | 0.8 | % | 2/1/2012 | 2031 | ||||||||||||||||||||||||||
Dollar Tree (6) | Houston and Phoenix | 635 | 0.7 | % | 8/10/1999, 6/29/2001, 11/8/2009, 12/17/2009, and 5/21/2013 | 2021, 2023, 2025, 2025 and 2027 | ||||||||||||||||||||||||||
Wells Fargo & Company (7) | Phoenix | 578 | 0.7 | % | 10/24/1996 and 4/16/1999 | 2022 and 2023 | ||||||||||||||||||||||||||
| Kroger Co. | Dallas | 483 | 0.6 | % | 12/15/2000 | 2022 | ||||||||||||||||||||||||||
| Ruth's Chris Steak House Inc. | Phoenix | 466 | 0.5 | % | 1/1/1991 | 2030 | ||||||||||||||||||||||||||
| Regus Corporation | Houston | 451 | 0.5 | % | 5/23/14 | 2025 | ||||||||||||||||||||||||||
| Paul's Ace Hardware | Phoenix | 427 | 0.5 | % | 3/1/2008 | 2023 | ||||||||||||||||||||||||||
| Original Ninfas LP | Houston | 403 | 0.5 | % | 8/29/2018 | 2029 | ||||||||||||||||||||||||||
| $ | 14,541 | 16.9 | % | |||||||||||||||||||||||||||||
(1) Annualized Base Rental Revenues represents the monthly base rent as of December 31, 2020 for each applicable tenant multiplied by 12.
(2) As of December 31, 2020, we had six leases with the same tenant occupying space at properties located in Phoenix, Houston and Austin. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2034, was $1,047,000, which represents approximately 1.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2024, was $42,000, which represents less than 0.1% of our annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 8, 1991, and is scheduled to expire in 2021, was $344,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on July 1, 2000, and is scheduled to expire in 2025, was $353,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in
23
2022, was $318,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on October 19, 2016, and is scheduled to expire in 2021, was $315,000, which represents approximately 0.4% of our total annualized base rental revenue.
(3) As of December 31, 2020, we had five leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on August 16, 1994, and is scheduled to expire in 2038, was $22,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on January 27, 2006, and is scheduled to expire in 2023, was $134,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on February 1, 2004, and is scheduled to expire in 2024, was $38,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 1, 2014, and is scheduled to expire in 2024, was $749,000, which represents approximately 0.9% of our total annualized rental revenue. The annualized rental revenue for the lease that commenced on May 10, 2004, and is scheduled to expire in 2022, was $6,000, which represents less than 0.1% of our total annualized base rental revenue.
(4) As of December 31, 2020, we had four leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on November 3, 1996, and is scheduled to expire in 2049, was $279,000, which represents approximately 0.3% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 2, 1987, and is scheduled to expire in 2027, was $189,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in 2022, was $181,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on August 24, 1996, and is scheduled to expire in 2056, was $298,000, which represents approximately 0.4% of our total annualized rental revenue.
(5) As of December 31, 2020, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 9, 2004, and is scheduled to expire in 2024, was $119,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2009, and is scheduled to expire in 2029, was $729,000, which represents approximately 0.9% of our total annualized base rental revenue.
(6) As of December 31, 2020, we had five leases with the same tenant occupying space at properties in Houston and Phoenix. The annualized rental revenue for the lease that commenced on August 10, 1999, and is scheduled to expire in 2025, was $88,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on December 17, 2009, and is scheduled to expire in 2025, was $118,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on June 29, 2001, and is scheduled to expire in 2021, was $169,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 21, 2013, and is scheduled to expire in 2023, was $110,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 8, 2009, and is scheduled to expire in 2027, was $151,000, which represents approximately 0.2% of our total annualized base rental revenue.
(7) As of December 31, 2020, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 24, 1996, and is scheduled to expire in 2022, was $131,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 16, 1999, and is scheduled to expire in 2023, was $447,000, which represents approximately 0.5% of our total annualized base rental revenue.
24
Whitestone REIT and Subsidiaries
COVID-19 - STATUS OF TENANTS
| % of Leased SF | % of ABR | Q4 2020 Cash Payments Received %(1) | January Cash Payments Received %(1) | |||||||||||||||||||||||
| Restaurants & Food Service | 18% | 23% | 96% | 96% | ||||||||||||||||||||||
| Grocery | 14% | 9% | 99% | 99% | ||||||||||||||||||||||
| Financial Services | 6% | 9% | 99% | 99% | ||||||||||||||||||||||
| Salons | 7% | 8% | 92% | 96% | ||||||||||||||||||||||
| Medical & Dental | 7% | 8% | 94% | 95% | ||||||||||||||||||||||
| Non Retail | 4% | 6% | 94% | 94% | ||||||||||||||||||||||
| Home Décor And Improvement | 7% | 5% | 100% | 97% | ||||||||||||||||||||||
| General Retail | 7% | 5% | 96% | 99% | ||||||||||||||||||||||
| Apparel | 4% | 4% | 94% | 96% | ||||||||||||||||||||||
| Education | 5% | 4% | 94% | 92% | ||||||||||||||||||||||
| Fitness | 5% | 4% | 82% | 94% | ||||||||||||||||||||||
| Local Services | 2% | 3% | 91% | 95% | ||||||||||||||||||||||
| Off-Price | 4% | 2% | 100% | 100% | ||||||||||||||||||||||
| Pet Supply & Services | 2% | 2% | 99% | 78% | ||||||||||||||||||||||
| Wireless | 1% | 2% | 95% | 95% | ||||||||||||||||||||||
| Entertainment | 2% | 2% | 48% | 100% | ||||||||||||||||||||||
| Pharmacies & Nutritional Supplies | 2% | 2% | 100% | 100% | ||||||||||||||||||||||
| Sporting Goods | 1% | 1% | 90% | 100% | ||||||||||||||||||||||
| Postal Services | 1% | 1% | 99% | 100% | ||||||||||||||||||||||
| Automotive Supply & Services | 1% | 0% | 100% | 100% | ||||||||||||||||||||||
| Electronics | 0% | 0% | 77% | 100% | ||||||||||||||||||||||
| Total | 100% | 100% | 95% | 96% | ||||||||||||||||||||||
(1) Collections received through February 23, 2021 that are for contractual rent (base rent and expense reimbursement) in the respective period
25
Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| RENEWALS | ||||||||||||||||||||||||||
| Number of Leases | 56 | 55 | 201 | 208 | ||||||||||||||||||||||
Total Square Feet (1) | 273,211 | 257,440 | 750,552 | 726,246 | ||||||||||||||||||||||
| Average Square Feet | 4,879 | 4,681 | 3,734 | 3,492 | ||||||||||||||||||||||
| Total Lease Value | $ | 12,536,000 | $ | 22,701,000 | $ | 47,893,000 | $ | 59,815,000 | ||||||||||||||||||
| NEW LEASES | ||||||||||||||||||||||||||
| Number of Leases | 28 | 21 | 105 | 109 | ||||||||||||||||||||||
Total Square Feet (1) | 49,664 | 36,206 | 231,077 | 226,534 | ||||||||||||||||||||||
| Average Square Feet | 1,774 | 1,724 | 2,201 | 2,078 | ||||||||||||||||||||||
| Total Lease Value | $ | 6,478,000 | $ | 4,745,000 | $ | 27,609,000 | $ | 28,228,000 | ||||||||||||||||||
| TOTAL LEASES | ||||||||||||||||||||||||||
| Number of Leases | 84 | 76 | 306 | 317 | ||||||||||||||||||||||
Total Square Feet (1) | 322,875 | 293,646 | 981,629 | 952,780 | ||||||||||||||||||||||
| Average Square Feet | 3,844 | 3,864 | 3,208 | 3,006 | ||||||||||||||||||||||
| Total Lease Value | $ | 19,014,000 | $ | 27,446,000 | $ | 75,502,000 | $ | 88,043,000 | ||||||||||||||||||
(1) Represents the square footage as the result of new, renewal, expansion and contraction leases.
26
Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY
| Type | Number of Leases Signed | Lease Value Signed | GLA Signed | Weighted Average Lease Term (2) | TI and Incentives (3) | TI and Incentives Per Sq. Ft. | Contractual Rent Per Sq. Ft. (4) | Prior Contractual Rent Per Sq. Ft. (5) | Annual Increase (Decrease) in Contractual Rent | Cash Basis Increase (Decrease) Over Prior Rent | Annual Increase (Decrease) in Straight-lined Rent | Straight-lined Basis Increase (Decrease) Over Prior Rent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable: (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comparable Total Leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 73 | $ | 16,880,587 | 297,812 | 4.1 | $ | 388,146 | $ | 1.30 | $ | 13.20 | $ | 13.19 | $ | 4,030 | 0.1 | % | $ | 254,859 | 6.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2020 | 63 | 15,059,079 | 216,564 | 3.8 | 723,072 | 3.34 | 16.35 | 15.83 | 107,566 | 3.3 | % | 344,848 | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2020 | 54 | 13,620,242 | 162,729 | 4.2 | 418,007 | 2.57 | 18.66 | 18.30 | 59,644 | 2.0 | % | 315,893 | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2020 | 63 | 16,883,447 | 179,014 | 4.4 | 447,816 | 2.50 | 20.67 | 20.26 | 73,787 | 2.0 | % | 256,566 | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 253 | $ | 62,443,355 | 856,119 | 4.1 | $ | 1,977,041 | $ | 2.31 | $ | 16.60 | $ | 16.31 | $ | 245,027 | 1.8 | % | $ | 1,172,166 | 8.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comparable New Leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 20 | $ | 4,653,817 | 30,371 | 5.5 | $ | 291,222 | $ | 9.59 | $ | 23.58 | $ | 26.73 | $ | (95,836) | (11.8) | % | $ | (42,922) | (5.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2020 | 18 | 5,437,366 | 45,158 | 4.8 | 630,803 | 13.97 | 22.39 | 21.80 | 26,323 | 2.7 | % | 25,687 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2020 | 11 | 3,864,386 | 25,792 | 5.9 | 227,075 | 8.80 | 22.65 | 24.05 | (35,900) | (5.8) | % | 19,331 | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2020 | 8 | 1,279,066 | 12,579 | 4.6 | 107,093 | 8.51 | 22.10 | 24.99 | (36,405) | (11.6) | % | (11,095) | (3.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 57 | $ | 15,234,635 | 113,900 | 5.2 | $ | 1,256,193 | $ | 11.03 | $ | 22.73 | $ | 23.98 | $ | (141,818) | (5.2) | % | $ | (8,999) | (0.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comparable Renewal Leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 53 | $ | 12,226,770 | 267,441 | 3.9 | $ | 96,924 | $ | 0.36 | $ | 12.02 | $ | 11.65 | $ | 99,866 | 3.2 | % | $ | 297,781 | 10.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2020 | 45 | 9,621,713 | 171,406 | 3.5 | 92,269 | 0.54 | 14.76 | 14.28 | 81,243 | 3.4 | % | 319,161 | 13.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2020 | 43 | 9,755,856 | 136,937 | 3.9 | 190,932 | 1.39 | 17.91 | 17.21 | 95,544 | 4.1 | % | 296,562 | 13.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2020 | 55 | 15,604,381 | 166,435 | 4.3 | 340,723 | 2.05 | 20.57 | 19.90 | 110,192 | 3.4 | % | 267,661 | 8.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 196 | $ | 47,208,720 | 742,219 | 3.9 | $ | 720,848 | $ | 0.97 | $ | 15.66 | 1.00 | $ | 15.13 | $ | 386,845 | 3.5 | % | $ | 1,181,165 | 11.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
27
Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY
(continued)
| Type | Number of Leases Signed | Lease Value Signed | GLA Signed | Weighted Average Lease Term (2) | TI and Incentives (3) | TI and Incentives per Sq. Ft. | Contractual Rent Per Sq. Ft. (4) | |||||||||||||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||||||||||||||
| New & Renewal | ||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 84 | $ | 19,013,353 | 322,875 | 4.0 | $ | 502,216 | $ | 1.56 | $ | 13.69 | |||||||||||||||||||||||||||||||||
| 3rd Quarter 2020 | 78 | 19,540,109 | 257,370 | 4.0 | 1,002,715 | 3.90 | 16.85 | |||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2020 | 64 | 14,993,431 | 180,245 | 4.4 | 528,868 | 2.93 | 18.49 | |||||||||||||||||||||||||||||||||||||
| 1st Quarter 2020 | 80 | 21,955,258 | 221,139 | 5.2 | 999,160 | 4.52 | 20.85 | |||||||||||||||||||||||||||||||||||||
| Total - 12 months | 306 | $ | 75,502,151 | 981,629 | 4.1 | $ | 3,032,959 | $ | 3.09 | $ | 17.01 | |||||||||||||||||||||||||||||||||
| New | ||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 28 | $ | 6,477,724 | 49,664 | 4.9 | $ | 401,475 | $ | 8.08 | $ | 22.27 | |||||||||||||||||||||||||||||||||
| 3rd Quarter 2020 | 32 | 9,861,214 | 85,196 | 4.8 | 906,788 | 10.64 | 20.98 | |||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2020 | 21 | 5,237,575 | 43,308 | 5.4 | 337,936 | 7.80 | 20.33 | |||||||||||||||||||||||||||||||||||||
| 1st Quarter 2020 | 24 | 6,032,328 | 52,909 | 4.4 | 583,553 | 11.03 | 20.58 | |||||||||||||||||||||||||||||||||||||
| Total - 12 months | 105 | $ | 27,608,841 | 231,077 | 4.9 | $ | 2,229,752 | $ | 9.65 | $ | 21.04 | |||||||||||||||||||||||||||||||||
| Renewal | ||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 56 | $ | 12,535,629 | 273,211 | 3.9 | $ | 100,741 | $ | 0.37 | $ | 12.13 | |||||||||||||||||||||||||||||||||
| 3rd Quarter 2020 | 46 | 9,678,895 | 172,174 | 3.5 | 95,927 | 0.56 | 14.81 | |||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2020 | 43 | 9,755,856 | 136,937 | 3.9 | 190,932 | 1.39 | 17.91 | |||||||||||||||||||||||||||||||||||||
| 1st Quarter 2020 | 56 | 15,922,930 | 168,230 | 4.3 | 415,607 | 2.47 | 20.93 | |||||||||||||||||||||||||||||||||||||
| Total - 12 months | 201 | $ | 47,893,310 | 750,552 | 3.9 | $ | 803,207 | $ | 1.07 | $ | 15.77 | |||||||||||||||||||||||||||||||||
(1) Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage.
(2) Weighted average lease term is determined on the basis of square footage.
(3) Estimated amount per signed lease. Actual cost of construction may vary.
(4) Contractual rent represents contractual minimum rent under the new lease for the first month, excluding concessions.
(5) Prior contractual rent represents contractual minimum rent under the prior lease for the final month.
28
Whitestone REIT and Subsidiaries
LEASE EXPIRATIONS(1)
Annualized Base Rent(2) | ||||||||||||||||||||||||||||||||||||||
| Gross Leasable Area | as of December 31, 2020 | |||||||||||||||||||||||||||||||||||||
| Year | Number of Leases | Square Feet | Percent of Gross Leasable Area | Amount (in thousands) | Percent of Total | Per Square Foot | ||||||||||||||||||||||||||||||||
| 2021 | 453 | 783,293 | 15.8 | % | $ | 13,636 | 16.0 | % | $ | 17.41 | ||||||||||||||||||||||||||||
| 2022 | 203 | 653,956 | 13.2 | % | 12,223 | 14.4 | % | 18.69 | ||||||||||||||||||||||||||||||
| 2023 | 189 | 593,308 | 12.0 | % | 11,523 | 13.6 | % | 19.42 | ||||||||||||||||||||||||||||||
| 2024 | 182 | 688,576 | 13.9 | % | 14,448 | 17.0 | % | 20.98 | ||||||||||||||||||||||||||||||
| 2025 | 173 | 653,587 | 13.2 | % | 11,811 | 13.9 | % | 18.07 | ||||||||||||||||||||||||||||||
| 2026 | 59 | 264,983 | 5.3 | % | 4,996 | 5.9 | % | 18.85 | ||||||||||||||||||||||||||||||
| 2027 | 39 | 162,333 | 3.3 | % | 3,564 | 4.2 | % | 21.95 | ||||||||||||||||||||||||||||||
| 2028 | 26 | 146,212 | 3.0 | % | 2,792 | 3.3 | % | 19.10 | ||||||||||||||||||||||||||||||
| 2029 | 20 | 160,087 | 3.2 | % | 2,875 | 3.4 | % | 17.96 | ||||||||||||||||||||||||||||||
| 2030 | 21 | 64,541 | 1.3 | % | 2,193 | 2.6 | % | 33.98 | ||||||||||||||||||||||||||||||
| Total | 1,365 | 4,170,876 | 84.2 | % | $ | 80,061 | 94.3 | % | $ | 19.20 | ||||||||||||||||||||||||||||
(1) Lease expirations table reflects rents in place as of December 31, 2020, and does not include option periods.
(2) Annualized Base Rent represents the monthly base rent as of December 31, 2020 for each tenant multiplied by 12.
29
Whitestone REIT and Subsidiaries
Property Details
As of December 31, 2020
| Community Name | Location | Year Built/ Renovated | Gross Leasable Square Feet | Percent Occupied at 12/31/2020 | Annualized Base Rental Revenue (in thousands) (1) | Average Base Rental Revenue Per Sq. Ft. (2) | Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3) | |||||||||||||||||||||||||||||||||||||
| Whitestone Properties: | ||||||||||||||||||||||||||||||||||||||||||||
| Ahwatukee Plaza | Phoenix | 1979 | 72,650 | 82 | % | $ | 796 | $ | 13.36 | $ | 12.94 | |||||||||||||||||||||||||||||||||
| Anthem Marketplace | Phoenix | 2000 | 113,293 | 88 | % | 1,317 | 13.21 | 16.37 | ||||||||||||||||||||||||||||||||||||
| Anthem Marketplace Phase II | Phoenix | 2019 | 6,853 | 100 | % | 228 | 33.27 | 33.85 | ||||||||||||||||||||||||||||||||||||
| Bissonnet Beltway | Houston | 1978 | 29,205 | 88 | % | 366 | 14.24 | 13.85 | ||||||||||||||||||||||||||||||||||||
| BLVD Place | Houston | 2014 | 216,944 | 97 | % | 8,834 | 41.98 | 42.96 | ||||||||||||||||||||||||||||||||||||
| The Citadel | Phoenix | 2013 | 28,547 | 95 | % | 463 | 17.07 | 17.15 | ||||||||||||||||||||||||||||||||||||
| City View Village | San Antonio | 2005 | 17,870 | 100 | % | 550 | 30.78 | 30.33 | ||||||||||||||||||||||||||||||||||||
| Davenport Village | Austin | 1999 | 128,934 | 92 | % | 2,963 | 24.98 | 24.86 | ||||||||||||||||||||||||||||||||||||
| Desert Canyon | Phoenix | 2000 | 62,533 | 81 | % | 705 | 13.92 | 13.50 | ||||||||||||||||||||||||||||||||||||
| Eldorado Plaza | Dallas | 2004 | 219,287 | 90 | % | 2,908 | 14.73 | 15.05 | ||||||||||||||||||||||||||||||||||||
| Fountain Hills | Phoenix | 2009 | 111,289 | 85 | % | 1,488 | 15.73 | 15.61 | ||||||||||||||||||||||||||||||||||||
| Fountain Square | Phoenix | 1986 | 118,209 | 84 | % | 1,805 | 18.18 | 17.12 | ||||||||||||||||||||||||||||||||||||
| Fulton Ranch Towne Center | Phoenix | 2005 | 120,575 | 95 | % | 1,924 | 16.80 | 17.50 | ||||||||||||||||||||||||||||||||||||
| Gilbert Tuscany Village | Phoenix | 2009 | 49,415 | 100 | % | 952 | 19.27 | 19.95 | ||||||||||||||||||||||||||||||||||||
| Gilbert Tuscany Village Hard Corner | Phoenix | 2009 | 14,603 | 100 | % | 124 | 8.49 | 8.90 | ||||||||||||||||||||||||||||||||||||
| Heritage Trace Plaza | Dallas | 2006 | 70,431 | 100 | % | 1,579 | 22.42 | 23.82 | ||||||||||||||||||||||||||||||||||||
| Headquarters Village | Dallas | 2009 | 89,134 | 80 | % | 2,231 | 31.29 | 34.37 | ||||||||||||||||||||||||||||||||||||
| Keller Place | Dallas | 2001 | 93,541 | 96 | % | 991 | 11.04 | 10.90 | ||||||||||||||||||||||||||||||||||||
| Kempwood Plaza | Houston | 1974 | 91,302 | 92 | % | 1,136 | 13.52 | 14.06 | ||||||||||||||||||||||||||||||||||||
| La Mirada | Phoenix | 1997 | 147,209 | 90 | % | 3,112 | 23.49 | 23.42 | ||||||||||||||||||||||||||||||||||||
| Lion Square | Houston | 2014 | 117,592 | 92 | % | 1,644 | 15.20 | 14.22 | ||||||||||||||||||||||||||||||||||||
| The Marketplace at Central | Phoenix | 2012 | 111,130 | 99 | % | 1,051 | 9.55 | 9.68 | ||||||||||||||||||||||||||||||||||||
| Market Street at DC Ranch | Phoenix | 2003 | 244,888 | 94 | % | 4,667 | 20.27 | 19.93 | ||||||||||||||||||||||||||||||||||||
| Mercado at Scottsdale Ranch | Phoenix | 1987 | 118,730 | 84 | % | 1,552 | 15.56 | 16.09 | ||||||||||||||||||||||||||||||||||||
| Paradise Plaza | Phoenix | 1983 | 125,898 | 93 | % | 1,588 | 13.56 | 13.22 | ||||||||||||||||||||||||||||||||||||
| Parkside Village North | Austin | 2005 | 27,045 | 96 | % | 812 | 31.28 | 31.74 | ||||||||||||||||||||||||||||||||||||
| Parkside Village South | Austin | 2012 | 90,101 | 88 | % | 2,028 | 25.58 | 26.20 | ||||||||||||||||||||||||||||||||||||
| Pima Norte | Phoenix | 2007 | 35,110 | 65 | % | 401 | 17.57 | 18.89 | ||||||||||||||||||||||||||||||||||||
| Pinnacle of Scottsdale | Phoenix | 1991 | 113,108 | 96 | % | 2,307 | 21.25 | 21.99 | ||||||||||||||||||||||||||||||||||||
| Pinnacle Phase II | Phoenix | 2017 | 27,063 | 100 | % | 755 | 27.90 | 27.16 | ||||||||||||||||||||||||||||||||||||
| The Promenade at Fulton Ranch | Phoenix | 2007 | 98,792 | 80 | % | 1,106 | 13.99 | 11.22 | ||||||||||||||||||||||||||||||||||||
| Providence | Houston | 1980 | 90,327 | 96 | % | 1,019 | 11.75 | 12.69 | ||||||||||||||||||||||||||||||||||||
| Quinlan Crossing | Austin | 2012 | 109,892 | 95 | % | 2,345 | 22.46 | 23.51 | ||||||||||||||||||||||||||||||||||||
| Seville | Phoenix | 1990 | 90,042 | 85 | % | 2,302 | 30.08 | 33.28 | ||||||||||||||||||||||||||||||||||||
| Shaver | Houston | 1978 | 21,926 | 100 | % | 326 | 14.87 | 17.38 | ||||||||||||||||||||||||||||||||||||
| Shops at Pecos Ranch | Phoenix | 2009 | 78,767 | 74 | % | 1,624 | 27.86 | 27.16 | ||||||||||||||||||||||||||||||||||||
| Shops at Starwood | Dallas | 2006 | 55,385 | 100 | % | 1,304 | 23.54 | 22.48 | ||||||||||||||||||||||||||||||||||||
| The Shops at Williams Trace | Houston | 1985 | 132,991 | 82 | % | 1,839 | 16.86 | 16.43 | ||||||||||||||||||||||||||||||||||||
| South Richey | Houston | 1980 | 69,928 | 96 | % | 695 | 10.35 | 10.56 | ||||||||||||||||||||||||||||||||||||
| Spoerlein Commons | Chicago | 1987 | 41,455 | 81 | % | 665 | 19.80 | 20.97 | ||||||||||||||||||||||||||||||||||||
| Starwood Phase II | Dallas | 2016 | 35,351 | 81 | % | 1,006 | 35.13 | 22.84 | ||||||||||||||||||||||||||||||||||||
| The Strand at Huebner Oaks | San Antonio | 2000 | 73,920 | 96 | % | 1,631 | 22.98 | 23.29 | ||||||||||||||||||||||||||||||||||||
| SugarPark Plaza | Houston | 1974 | 95,032 | 97 | % | 1,149 | 12.46 | 12.89 | ||||||||||||||||||||||||||||||||||||
| Sunridge | Houston | 1979 | 49,359 | 84 | % | 577 | 13.92 | 12.90 | ||||||||||||||||||||||||||||||||||||
| Sunset at Pinnacle Peak | Phoenix | 2000 | 41,530 | 91 | % | 686 | 18.15 | 17.41 | ||||||||||||||||||||||||||||||||||||
| Terravita Marketplace | Phoenix | 1997 | 102,733 | 56 | % | 1,191 | 20.70 | 20.15 | ||||||||||||||||||||||||||||||||||||
| Town Park | Houston | 1978 | 43,526 | 90 | % | 1,046 | 26.70 | 25.78 | ||||||||||||||||||||||||||||||||||||
| Village Square at Dana Park | Phoenix | 2009 | 323,026 | 80 | % | 5,592 | 21.64 | 21.27 | ||||||||||||||||||||||||||||||||||||
| Westchase | Houston | 1978 | 50,332 | 75 | % | 600 | 15.89 | 15.44 | ||||||||||||||||||||||||||||||||||||
| Williams Trace Plaza | Houston | 1983 | 129,222 | 89 | % | 1,805 | 15.69 | 15.52 | ||||||||||||||||||||||||||||||||||||
| Windsor Park | San Antonio | 2012 | 196,458 | 97 | % | 1,920 | 10.08 | 11.18 | ||||||||||||||||||||||||||||||||||||
| Woodlake Plaza | Houston | 1974 | 106,169 | 70 | % | 1,047 | 14.09 | 13.55 | ||||||||||||||||||||||||||||||||||||
Total/Weighted Average - Whitestone Properties | 4,848,652 | 89 | % | 82,752 | 19.18 | 19.32 | ||||||||||||||||||||||||||||||||||||||
| Development Properties: | ||||||||||||||||||||||||||||||||||||||||||||
| Las Colinas Village | Dallas | 2000 | 104,919 | 67 | % | 1,952 | 27.77 | 28.07 | ||||||||||||||||||||||||||||||||||||
Total/Weighted Average - Development Properties(4) | 104,919 | 67 | % | 1,952 | 27.77 | 28.07 | ||||||||||||||||||||||||||||||||||||||
| Land Held for Development: | ||||||||||||||||||||||||||||||||||||||||||||
| BLVD Phase II-B | Houston | N/A | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Dana Park Development | Phoenix | N/A | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Eldorado Plaza Development | Dallas | N/A | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Fountain Hills | Phoenix | N/A | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Market Street at DC Ranch | Phoenix | N/A | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total/Weighted Average - Land Held For Development (5) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Grand Total/Weighted Average - Whitestone Properties | 4,953,571 | 88 | % | $ | 84,704 | $ | 19.43 | $ | 19.58 | |||||||||||||||||||||||||||||||||||
| Properties owned in Unconsolidated Real Estate Partnership (81.4% ownership): | ||||||||||||||||||||||||||||||||||||||||||||
| 9101 LBJ Freeway | Dallas | 1985 | 125,874 | 47 | % | $ | 1,038 | $ | 17.55 | $ | 18.56 | |||||||||||||||||||||||||||||||||
| Corporate Park Northwest | Houston | 1981 | 174,359 | 76 | % | 1,834 | 13.84 | 13.59 | ||||||||||||||||||||||||||||||||||||
| Corporate Park Woodland II | Houston | 2000 | 14,344 | 100 | % | 244 | 17.01 | 16.94 | ||||||||||||||||||||||||||||||||||||
| Holly Hall Industrial Park | Houston | 1980 | 90,000 | 49 | % | 308 | 6.98 | 6.89 | ||||||||||||||||||||||||||||||||||||
| Holly Knight | Houston | 1984 | 20,015 | 100 | % | 432 | 21.58 | 21.23 | ||||||||||||||||||||||||||||||||||||
| Interstate 10 Warehouse | Houston | 1980 | 151,000 | 31 | % | 287 | 6.13 | 6.09 | ||||||||||||||||||||||||||||||||||||
| Uptown Tower | Dallas | 1982 | 253,981 | 66 | % | 3,952 | 23.58 | 23.25 | ||||||||||||||||||||||||||||||||||||
| Westgate Service Center | Houston | 1984 | 97,225 | 81 | % | 656 | 8.33 | 8.00 | ||||||||||||||||||||||||||||||||||||
| Total/Weighted Average - Unconsolidated Properties | 926,798 | 61 | % | $ | 8,751 | $ | 15.48 | $ | 15.36 | |||||||||||||||||||||||||||||||||||
(1) Calculated as the tenant’s actual December 31, 2020 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of December 31, 2020. Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with generally accepted accounting principles, historical results differ from the annualized amounts. Total abatements for leases in effect as of December 31, 2020 equaled approximately $72,000 for the month ended December 31, 2020.
(2) Calculated as annualized base rent divided by leased square feet as of December 31, 2020.
(3) Represents (i) the contractual base rent for leases in place as of December 31, 2020, adjusted to a straight-line basis to reflect changes in rental rates throughout the lease term and amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (ii) square footage under commenced leases of December 31, 2020.
(4) Includes (i) new acquisitions, through the earlier of attainment of 90% occupancy or 18 months of ownership, and (ii) properties that are undergoing significant development, redevelopment or re-tenanting.
(5) As of December 31, 2020, these parcels of land were held for development and, therefore, had no gross leasable area.
30
