Whitestone REIT Files 2023 Annual Report on Form 10-K

TL;DR

<b>Whitestone REIT filed its 2023 10-K, reporting $145.7 million in rental revenues and $49.6 million in net income, while managing a $96.0 million floating-rate loan.</b>

AI Summary

Whitestone REIT (WSR) filed a Annual Report (10-K) with the SEC on March 13, 2024. Whitestone REIT reported total rental revenues of $145.7 million for the year ended December 31, 2023. The company's net income for the year ended December 31, 2023, was $49.6 million. As of December 31, 2023, Whitestone REIT had one loan totaling $96.0 million with a floating interest rate based on SOFR plus 1.60%. The company has a $14.0 million mortgage note secured by one property and an $80.0 million mortgage note secured by another property. Whitestone REIT adopted a new rights agreement on December 26, 2021, granting holders purchase rights for series D preferred shares.

Why It Matters

For investors and stakeholders tracking Whitestone REIT, this filing contains several important signals. The filing details the company's financial performance and debt structure, providing investors with key metrics for evaluating its stability and growth prospects. Information on interest rate swaps and floating-rate debt highlights the company's strategies for managing interest rate risk in the current economic environment.

Risk Assessment

Risk Level: medium — Whitestone REIT shows moderate risk based on this filing. The company has a significant amount of debt, including a $96.0 million floating-rate loan, which exposes it to interest rate fluctuations and potential increases in financing costs.

Analyst Insight

Investors should monitor Whitestone REIT's debt levels and interest rate exposure, particularly in light of the floating-rate loan and the company's use of interest rate swaps.

Revenue Breakdown

Key Numbers

• 145,652,000 — Total Rental Revenues (For the year ended December 31, 2023)
• 49,610,831 — Net Income (For the year ended December 31, 2023)
• 96,000,000 — Floating Rate Loan Amount (As of December 31, 2023)
• 14,000,000 — Mortgage Note (Securing one property)
• 80,000,000 — Mortgage Note (Securing another property)
• 5.40% — SOFR Rate (As of December 31, 2023, used for floating rate loan calculation)
• 2.16% — Interest Rate Swap (fixed SOFR) (Through October 28, 2022)
• 3.32% — Interest Rate Swap (fixed SOFR) (Beginning February 1, 2024, through January 31, 2028)

Key Players & Entities

• Whitestone REIT (company) — Filer of the 10-K report
• Pillarstone REIT (company) — Mentioned in relation to a rights agreement
• Hartman Commercial Properties REIT (company) — Former name of Whitestone REIT
• $145.7 million (dollar_amount) — Total rental revenues for the year ended December 31, 2023
• $49.6 million (dollar_amount) — Net income for the year ended December 31, 2023
• $96.0 million (dollar_amount) — Total of one loan with a floating interest rate as of December 31, 2023
• $14.0 million (dollar_amount) — Amount of a mortgage note secured by a property
• $80.0 million (dollar_amount) — Amount of a mortgage note secured by a property

FAQ

Key Financial Figures

• $0.001 — hares of Beneficial Interest, par value $0.001 per share WSR New York Stock Exchan
• $1.2 billion — has a gross book value of approximately $1.2 billion and book equity, including noncontrolli
• $420 million — controlling interests, of approximately $420 million as of December 31, 2023. Further, as o
• $147 million — , our total revenues were approximately $147 million. Additionally, we, through our equity

Filing Documents

• wstr20231231c_10k.htm (10-K) — 3976KB
• ex_626514.htm (EX-21.1) — 26KB
• ex_626574.htm (EX-23.1) — 2KB
• ex_626575.htm (EX-31.1) — 11KB
• ex_626576.htm (EX-31.2) — 11KB
• ex_626577.htm (EX-32.1) — 5KB
• ex_626578.htm (EX-32.2) — 5KB
• ex_626579.htm (EX-97.1) — 48KB
• yrreturnchart6.jpg (GRAPHIC) — 30KB
• 0001437749-24-007627.txt (&nbsp;) — 16621KB
• wstr-20231231.xsd (EX-101.SCH) — 116KB
• wstr-20231231_cal.xml (EX-101.CAL) — 89KB
• wstr-20231231_def.xml (EX-101.DEF) — 799KB
• wstr-20231231_lab.xml (EX-101.LAB) — 654KB
• wstr-20231231_pre.xml (EX-101.PRE) — 840KB
• wstr20231231c_10k_htm.xml (XML) — 3366KB

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 50 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 51 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 51 Item 9A.

Controls and Procedures

Controls and Procedures. 51 Item 9B. Other Information. 52 Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections. 52 PART III Item 10. Trustees, Executive Officers and Corporate Governance. 53 Item 11.

Executive Compensation

Executive Compensation. 53 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters. 53 Item 13. Certain Relationships and Related Transactions, and Director Independence. 53 Item 14. Principal Accountant Fees and Services. 53 PART IV Item 15. Exhibits and Financial Statement Schedules. 54 Item 16. Form 10-K Summary 54 Index to Exhibits 55 SIGNATURES. 58 Table of Contents Unless the context otherwise requires, all references in this Annual Report on Form 10-K to the " Company, " " we, " " us " or " our " are to Whitestone REIT and its consolidated subsidiaries.

Forward-Looking Statements

Forward-Looking Statements The following discussion should be read in conjunction with our audited consolidated financial statements and the notes thereto in this Annual Report on Form 10-K. This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws, including discussion and analysis of our financial condition, anticipated capital expenditures required to complete projects, amounts of anticipated cash distributions to our shareholders in the future and other matters. These forward-looking statements are not historical facts but reflect the intent, belief or current expectations of our management based on its knowledge and understanding of our business and industry. Forward-looking statements are typically identified by the use of terms such as "may," "will," "should," "potential," "predicts," "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" or the negative of such terms and variations of these words and similar expressions, although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. You are cautioned not to place undue reliance on forward-looking statements, which reflect our management's view only as of the date of this Annual Report on Form 10-K. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Factors that could cause actual results to differ materially from any forward-looking statements made in this Annual Report on Form 10-K incl

Business

Item 1. Business. General We are a Maryland REIT engaged in owning and operating commercial properties in culturally diverse markets in major metropolitan areas. We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). We are internally managed and, as of December 31, 2023, we wholly-owned a real estate portfolio of 55 properties that meet our Community Centered Property strategy containing approximately 5.0 million square feet of gross leasable area ("GLA"), located in Texas and Arizona. Our consolidated property portfolio has a gross book value of approximately $1.2 billion and book equity, including noncontrolling interests, of approximately $420 million as of December 31, 2023. Further, as of December 31, 2023, we, through our equity-method investment in Pillarstone Capital REIT Operating Partnership LP ("Pillarstone" or "Pillarstone OP"), owned a majority interest in eight properties that do not meet our Community Centered Property strategy containing approximately 0.9 million square feet of GLA (the "Pillarstone Properties"). We own 81.4% of the total outstanding units of Pillarstone OP, which we account for using the equity method. We also managed the day-to-day operations of Pillarstone OP pursuant to a management agreement, which was terminated on August 18, 2022. In this Annual Report on Form 10-K, unless otherwise indicated, we do not include the Pillarstone Properties when we refer to our properties. Our common shares of beneficial interest, par value $0.001 per share, are traded on the New York Stock Exchange (the "NYSE") under the ticker symbol "WSR." Our offices are located at 2600 South Gessner Road, Suite 500, Houston, Texas 77063. Our telephone number is (713) 827-9595 and we maintain a website at www.whitestonereit.com. The contents of our website are not incorporated into this filing. Our Strategy In October 2006, we adopted a strategic plan to acquire, redevelop, own and operate Community

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View this 10-K filing on SEC EDGAR