Alliance Global Partners has revised its price target for Whitestone REIT (WSR, Financial), reducing it from $17 to $16, while maintaining a Buy rating on the stock. Despite a slight drop in occupancy, Whitestone REIT has a strategic plan to fill the vacancies with tenants willing to pay higher rents. The firm's Q1 performance is consistent with its 2025 guidance and long-term objectives, indicating a stable outlook for the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Whitestone REIT (WSR, Financial) is $16.00 with a high estimate of $17.00 and a low estimate of $15.00. The average target implies an upside of 29.55% from the current price of $12.35. More detailed estimate data can be found on the Whitestone REIT (WSR) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Whitestone REIT's (WSR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Whitestone REIT (WSR, Financial) in one year is $12.38, suggesting a upside of 0.24% from the current price of $12.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Whitestone REIT (WSR) Summary page.
WSR Key Business Developments
Release Date: March 04, 2025
- Core FFO per Share: $1.01 in 2024, representing 11% growth from $0.91 in 2023.
- Same Store NOI Growth: 5.8% for Q4 2024 and 5.1% for the full year.
- Occupancy Rate: 94.1% at the end of 2024.
- Debt to EBITDAre Ratio: Improved from 9.2 times in Q4 2021 to 6.6 times in Q4 2024.
- Dividend Growth: Raised by over 9% in December, with a CAGR of 6.5% since 2021.
- Leasing Spreads: Renewal leasing spreads of 19% and new leasing spreads of 36.1% in Q4 2024.
- Cash Flow from Operations: $58.2 million in 2024.
- Dividends Paid: $24.9 million in 2024.
- Available Liquidity: $15 million in cash and $125 million available under the credit facility.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Whitestone REIT (WSR, Financial) achieved a compound annual growth rate of 5.5% for core FFO per share over the past three years, despite a challenging interest rate environment.
- The company reduced its leverage significantly, improving its debt to EBITDAre ratio from 9.2 times in Q4 2021 to 6.6 times in Q4 2024.
- Whitestone REIT (WSR) reported strong same store NOI growth of 5.1% for 2024, driven by proactive tenant upgrades and strategic redevelopment.
- The company raised its dividend by over 9% in December, maintaining a 6.5% CAGR since 2021, with a payout ratio of approximately 50% of core FFO.
- Whitestone REIT (WSR) has a strategic focus on high-value, high-return shop spaces, which provide flexibility and adaptability to changing market demands.
Negative Points
- Interest rate increases over the past three years have posed a significant challenge, causing a double-digit drag on earnings.
- The company's guidance does not include assumptions for non-same store NOI growth due to uncertainties in acquisition timing.
- Whitestone REIT (WSR) faces competition in the acquisition space, with increased interest from other capital sources.
- The company anticipates continued costs related to the Pillarstone liquidation process, impacting G&A expenses.
- Lease termination fees, which contributed to 2024 earnings, are not guaranteed to occur at the same level in 2025, adding uncertainty to future earnings projections.
