Whitestone REIT (NYSE:WSR) executives highlighted record occupancy, continued leasing momentum, and a strengthened balance sheet while outlining the company’s expectations for ongoing earnings growth during the REIT’s fourth-quarter 2025 earnings call held Feb. 26, 2026.
2025 results: Core FFO growth and balance sheet progress
Chief Executive Officer Dave Holeman said Whitestone delivered $1.05 in Core FFO per share for 2025, up from $0.86 in 2021, which he described as a 5% compound annual growth rate during the period following leadership changes. Holeman also pointed to improved leverage, with Debt-to-EBITDAre improving to 7.0x for full-year 2025 from 9.1x in 2021. He noted the company navigated interest rate headwinds, including what he described as an $0.11 per share step-up in interest expense between 2022 and 2023.
Hogan also provided quarterly Core FFO cadence for 2025 of $0.25, $0.26, $0.26, and $0.28, noting fourth-quarter results benefited from items such as percent rent clauses that “typically help accelerate things” in Q4. Management said investors should anticipate a similar quarterly distribution pattern in 2026.
Same-store NOI and 2026 outlook
Management said Whitestone posted 4% same-store NOI growth for 2025, driven by contractual rent escalators in excess of 2%, strong leasing spreads, and redevelopment. Hogan added the company delivered same-store NOI growth of 3.8% for Q4 and reiterated the full-year 4% figure.
For 2026, the company issued same-store NOI growth guidance of 3% to 4.75%. Hogan described the 2026 outlook as a “ground-up tenant by tenant forecast” that incorporates current macroeconomic conditions, while management also discussed a longer-term same-store NOI growth framework of 3% to 5% reflecting historical performance and the expected benefits of redevelopment.
Holeman said the company has “very good visibility into the next three years” and expressed confidence in a long-term objective of generating 5% to 7% Core FFO per share growth, citing a strong leasing environment, a largely fixed-rate debt structure, and minimal debt maturities until 2029.
Occupancy, leasing spreads, and demand trends
President and Chief Operating Officer Christine Mastandrea said Whitestone reached record occupancy of 94.6% at the end of 2025 and characterized 2025 as a year of “strong, consistent results.” She reported combined straight-line leasing spreads of 18.2% in Q4, including 25.9% on new leases and 16.6% on renewals. Mastandrea said this marked the company’s 15th consecutive quarter with leasing spreads above 17%.
Executives also emphasized tenant quality and credit performance. Mastandrea said the company reduced bad debt to 0.55% for 2025, which she said was less than half of pre-pandemic levels, attributing the improvement to tenant selection, underwriting, and expectations set with tenants.
On operating trends, Holeman said foot traffic to Whitestone’s centers increased 3.9% year-over-year and described the leasing pipeline as robust amid limited new supply of neighborhood centers within the REIT’s footprint.
During Q&A, management discussed occupancy by space type. Executives said at year-end 2025, larger-space occupancy was 97.7% (up from 97.4% a year earlier) and small-shop occupancy was 92.7% (up from 92.1% a year earlier). Management suggested there may be additional upside primarily in small-shop occupancy over time, while acknowledging larger spaces are already closer to full occupancy.
Acquisitions, dispositions, and a “gap” strategy
Holeman highlighted fourth-quarter acquisitions of World Cup Plaza in Plano and Ashford Village in Houston, along with the disposition of Kempwood Plaza in Houston. He said Whitestone’s acquisition/disposition strategy centers on identifying properties where there is a meaningful “gap” between neighborhood strength and tenant strength, then working to close that gap through leasing and repositioning. He added that once the gap narrows—particularly if neighborhood demand growth is slowing—a property may become a disposition candidate.
Holeman said Whitestone has increased its Green Street TAP Score over the past four years, which he described as a move toward higher-end neighborhoods with greater discretionary spending. He also said the company has acquired approximately $213 million in properties over the past three years, providing opportunities for the leasing team to drive earnings growth.
Asked about upside in the two Q4 acquisitions, management said:
- Ashford Village is in a “path of growth” area near Houston’s Energy Corridor, where management expects rent increases as leases turn.
- World Cup Plaza was described as more of a remerchandising opportunity, including repositioning efforts given its highway visibility and traffic counts.
Redevelopment plans, liquidity, and dividends
Mastandrea said Whitestone’s 2025 redevelopment CapEx was approximately $5 million, with projects completed at Williams Trace, La Mirada, and Lions Square. She said the company has added more projects, including Garden Oaks, and discussed a multi-year forecast of $20 million to $30 million in redevelopment spend, in addition to ongoing pad site additions. Executives said the company typically completes about two to three pad sites per year, and indicated it expects to do three in 2026, while larger development efforts may come later depending on permitting, approvals, and construction cost return thresholds.
Hogan said the company ended 2025 with $7.4 million in cash and $220 million available under its credit facility. He reported $50.8 million in cash flow from operations and $27.8 million in dividends during 2025. Hogan also noted the company has no debt maturities in 2026 and $80 million in maturities in 2027, which he said provides a clear runway before needing to access debt markets.
On capital allocation, management addressed a question about the year-end Pillarstone settlement, saying proceeds were used immediately to pay down the credit facility, improving leverage, and that the company will evaluate acquisitions and dispositions as opportunities arise.
Finally, Hogan said Whitestone increased its dividend by 5.6% for the first quarter of 2026 and stated management’s intent is to continue growing the dividend in line with Core FFO growth while maintaining its payout ratio.
About Whitestone REIT (NYSE:WSR)
Whitestone REIT is a real estate investment trust headquartered in San Antonio, Texas, that specializes in the acquisition, development and management of retail and mixed-use properties. The company’s portfolio is concentrated in high-growth Texas markets, including the Dallas–Fort Worth metroplex, Houston, Austin and San Antonio, where it primarily owns open-air neighborhood and community shopping centers. Whitestone REIT focuses on convenience- and necessity-based retail, partnering with grocers, fitness operators, service providers and other essential tenants to drive consistent foot traffic and stable occupancy.
In addition to property ownership, Whitestone REIT provides asset and property management services, leasing expertise and development capabilities.
