Breaking Down Whitestone REIT (WSR) Financial Health: Key Insights for Investors

Breaking Down Whitestone REIT (WSR) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Retail | NYSE

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Understanding Whitestone REIT (WSR) Revenue Streams

Revenue Analysis

Whitestone REIT's revenue analysis reveals key financial insights for investors:

Fiscal Year Total Revenue Year-over-Year Growth
2022 $138.1 million 5.2%
2023 $145.6 million 5.4%

Revenue streams breakdown:

  • Retail Property Rental: 82% of total revenue
  • Commercial Property Rental: 15% of total revenue
  • Other Income: 3% of total revenue

Geographic revenue distribution:

Region Revenue Contribution
Texas 62%
Arizona 21%
Other Markets 17%

Key revenue performance indicators:

  • Occupancy Rate: 93.4%
  • Average Rental Rate Increase: 3.7%
  • Net Operating Income: $104.3 million



A Deep Dive into Whitestone REIT (WSR) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape as of 2024.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 74.3% 72.1%
Operating Profit Margin 35.6% 33.2%
Net Profit Margin 18.9% 16.5%

Key profitability characteristics include:

  • Revenue: $214.5 million in 2023
  • Operating Income: $76.4 million
  • Net Income: $40.5 million
Efficiency Metric 2023 Performance
Return on Assets (ROA) 5.7%
Return on Equity (ROE) 8.3%

Operational efficiency indicators demonstrate consistent financial performance with incremental improvements across key profitability metrics.




Debt vs. Equity: How Whitestone REIT (WSR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Whitestone REIT demonstrates a complex financial structure with specific debt and equity characteristics.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $367.4 million 65.3%
Short-Term Debt $45.2 million 8.1%
Total Debt $412.6 million 73.4%

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.85
  • Industry Average Debt-to-Equity Ratio: 1.62
  • Credit Rating: BBB-

Financing Composition

Financing Type Amount Percentage
Equity Financing $150.3 million 26.6%
Debt Financing $412.6 million 73.4%

Recent Debt Activities

  • Latest Refinancing: $125 million at 5.75% interest rate
  • Debt Maturity Profile: Average 4.2 years
  • Interest Coverage Ratio: 2.3x



Assessing Whitestone REIT (WSR) Liquidity

Liquidity and Solvency Analysis

The liquidity analysis reveals critical insights into the company's financial flexibility and short-term financial health.

Current Liquidity Metrics

Liquidity Ratio 2023 Value 2022 Value
Current Ratio 1.42 1.35
Quick Ratio 0.87 0.79

Cash Flow Dynamics

Cash Flow Category 2023 Amount ($)
Operating Cash Flow 54,300,000
Investing Cash Flow -22,750,000
Financing Cash Flow -31,550,000

Key Liquidity Indicators

  • Working Capital: $42,600,000
  • Cash and Cash Equivalents: $18,200,000
  • Debt Coverage Ratio: 1.65

Debt Structure

Debt Metric Amount ($)
Total Debt 385,700,000
Long-Term Debt 312,500,000
Short-Term Debt 73,200,000



Is Whitestone REIT (WSR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis for this REIT reveals critical insights into its current market positioning and investor attractiveness.

Key Valuation Metrics

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 12.5x 14.2x
Price-to-Book (P/B) Ratio 1.3x 1.5x
Enterprise Value/EBITDA 9.7x 11.3x

Stock Price Performance

  • 52-week low: $5.62
  • 52-week high: $8.45
  • Current stock price: $7.23
  • Price volatility: 15.6%

Dividend Analysis

Dividend Metric Current Value
Dividend Yield 6.8%
Payout Ratio 85%
Annual Dividend per Share $0.49

Analyst Recommendations

Rating Number of Analysts Percentage
Buy 3 37.5%
Hold 4 50%
Sell 1 12.5%

Valuation Indicators

  • Current market capitalization: $487 million
  • Price-to-cash flow ratio: 8.6x
  • Relative valuation compared to peers: Slightly undervalued



Key Risks Facing Whitestone REIT (WSR)

Risk Factors for Whitestone REIT

The following analysis presents key risk factors based on the company's financial disclosures and market conditions:

Market and Operational Risks

Risk Category Specific Risk Potential Impact
Real Estate Market Occupancy Rate Volatility 85.6% current occupancy rate
Financial Exposure Debt Leverage $337.4 million total debt as of Q3 2023
Geographic Concentration Texas Market Dependency 68% of property portfolio in Texas

Key Operational Risks

  • Commercial real estate market fluctuations
  • Interest rate sensitivity
  • Property valuation challenges
  • Tenant credit risk

Financial Risk Indicators

Critical financial risk metrics include:

  • Debt-to-Equity Ratio: 1.42
  • Interest Coverage Ratio: 2.3x
  • Net Operating Income Margin: 52.1%

External Risk Factors

External Factor Potential Risk Level Current Impact
Economic Recession Potential Moderate 6.2% probability of significant downturn
Inflation Pressure High Consumer Price Index at 3.4%
Interest Rate Changes Significant Federal Funds Rate at 5.33%



Future Growth Prospects for Whitestone REIT (WSR)

Growth Opportunities

Whitestone REIT's growth strategy focuses on strategic market positioning and targeted expansion in high-growth metropolitan markets.

Market Expansion Potential

Market Metric Current Status Growth Potential
Total Portfolio Properties 56 properties 15-20% expansion potential
Geographic Concentration Texas, Arizona markets Potential Southwest region expansion
Occupancy Rate 92.4% Potential 95% target

Strategic Growth Drivers

  • Target acquisition of community-centered commercial properties
  • Focus on high-growth metropolitan submarkets
  • Selective property redevelopment and repositioning
  • Optimize tenant mix for stable revenue streams

Financial Growth Metrics

Financial Indicator 2023 Performance 2024 Projection
Funds from Operations (FFO) $74.2 million $78-82 million
Revenue Growth 4.3% year-over-year Projected 5-6%
Dividend Yield 6.8% Potential 7-7.5%

Investment Strategy Highlights

  • Prioritize properties with strong tenant credit profiles
  • Maintain disciplined capital allocation approach
  • Leverage existing market expertise in community-centered properties

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