- Whitestone REIT (WSR, Financial) achieved a 4.8% increase in Same Store Net Operating Income, reaching $24.7 million in Q1 2025.
- The company reported a strong GAAP leasing spread of 20.3% for the quarter.
- Core FFO increased to $13.1 million, with FFO per share rising to $0.25.
Whitestone REIT (WSR) has announced its financial results for the first quarter of 2025, highlighting robust growth in key operational metrics. The company achieved a 4.8% increase in Same Store Net Operating Income (NOI), totaling $24.7 million compared to $23.5 million in Q1 2024. This growth reflects strong execution at the property level and a strategic focus on enhancing property performance.
Leasing spreads on a GAAP basis were impressive at 20.3%, indicating significant pricing power and demand for Whitestone's retail spaces. New leases recorded a remarkable 22.6% spread, while renewal leases achieved a 19.9% increase. Occupancy stood at 92.9%, a slight decline from 93.6% year-over-year, as the company prioritized rent optimization over maximum occupancy.
Financially, Whitestone REIT reported revenues of $38.0 million, a modest rise from $37.2 million in the previous year. However, net income per diluted share fell to $0.07 from $0.18 in Q1 2024. Despite this, Core Funds From Operations (FFO) rose to $13.1 million, with FFO per share improving to $0.25 from $0.23 year-over-year.
The company continues to maintain a diverse portfolio of 55 community-centered properties across Texas and Arizona, totaling 4.9 million square feet. Looking ahead, Whitestone reaffirmed its 2025 guidance, expecting Core FFO of $1.03 to $1.07 per share, implying a 4% growth at the midpoint. The anticipated Same Store NOI growth of 3.0-4.5% and a year-end occupancy target of 94.0-95.0% indicate sustained leasing momentum.
In terms of shareholder returns, Whitestone declared a quarterly cash distribution of $0.135 per share for Q2 2025, to be paid in three monthly installments of $0.045 each in April, May, and June 2025.
