Truist analyst Anthony Hau has revised the price target for Whitestone REIT (WSR, Financial), bringing it down to $14 from the previous $16 while maintaining a Buy rating on the shares. This adjustment is part of a comprehensive update on real estate investment trusts (REITs). The changes in the firm's model incorporate the latest first-quarter earnings, recent developments, and revised projections for revenue growth and expenses, Hau explained to investors.
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 $15.07 with a high estimate of $16.00 and a low estimate of $14.00. The average target implies an upside of 19.71% from the current price of $12.59. 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 $12.03, suggesting a downside of 4.45% from the current price of $12.59. 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: May 01, 2025
- Core FFO per Share: $0.25 for the quarter, up 4.2% versus Q1 '24.
- Same-Store Net Operating Income Growth: 4.8%, near the top of the forecasted range.
- Leasing Spreads: 20.3% for the quarter, with new leases at 22.6% and renewals at 19.9%.
- Annual Net Effective ABR per Square Foot: Increased by 4% over Q1 '24.
- Total Lease Value Signed: $31 million, the highest first-quarter amount ever signed.
- Debt-to-EBITDA Ratio: 7.2 times, down from 7.8 times a year ago.
- Liquidity: $16 million in cash and $98 million available under the credit facility.
- Dividend Payout Ratio: Nearly 50%, with anticipated strong dividend growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Whitestone REIT (WSR, Financial) reported a 4.2% increase in core FFO per share for the quarter, reaching $0.25.
- Same-store net operating income (NOI) growth was 4.8%, near the top of their forecasted range.
- Leasing spreads were strong, with new leases at 22.6% and renewals at 19.9%, resulting in a combined leasing spread of 20.3%.
- The company is benefiting from the reshoring trend, with significant investments from companies like TSMC and Apple in their markets.
- Whitestone REIT (WSR) has a proactive approach to tenant management, ensuring tenants align with community needs, which provides better downside protection.
Negative Points
- Occupancy declined slightly due to retenanting efforts, particularly at the Terravita location.
- Debt-to-EBITDA ratio is relatively high at 7.2 times, though expected to decrease by year-end.
- There is some uncertainty in the macroeconomic environment, which could impact future performance.
- Alcohol sales in restaurants have decreased, potentially indicating a shift in consumer behavior.
- The company is exposed to potential risks from tariffs, although they have a lower percentage of tenants selling hard goods.
