Whitestone REIT reported fourth‑quarter 2025 earnings that surpassed consensus expectations, delivering earnings per share of $0.43 versus the $0.28 forecast and revenue of $43.9 million against the $41.3 million estimate. The company also posted a record 94.6% occupancy rate and a 4.0% same‑store net operating income growth for the full year, underscoring the strength of its shop‑space‑focused portfolio.
The sharp earnings beat can be traced to a combination of disciplined cost management and a highly attractive leasing mix. Whitestone’s focus on 1,500‑3,000‑square‑foot shop spaces has generated high‑return leases, and the company reported straight‑line leasing spreads of 18.2% in Q4 2025. These factors, coupled with robust demand in its Sunbelt markets, allowed the REIT to maintain margins even as overall revenue rose.
Revenue growth was driven by strong leasing activity across the portfolio. The record occupancy and high leasing spreads indicate that the company is successfully filling its properties at premium rates, offsetting any potential headwinds from broader market volatility. The result is a revenue beat of $2.6 million over consensus, reflecting the effectiveness of Whitestone’s shop‑space strategy.
Looking ahead, Whitestone raised its 2026 Core FFO guidance to $1.10–$1.14 per share, up from the $1.05 per share achieved in 2025, signaling confidence in continued growth. The company’s GAAP net income guidance of $0.38–$0.43 per share is lower than the $0.95 per share earned in 2025, but the focus on Core FFO aligns with REIT valuation practices. Management also announced a 5.6% increase in its quarterly dividend, further supporting shareholder returns.
On the balance‑sheet front, Whitestone reported total debt of $649.4 million and a revolving credit facility of $220.4 million, resulting in a debt‑to‑EBITDA ratio of 7.0x. Market reaction to the results was modest, with a slight pre‑market uptick and no significant after‑hours movement, suggesting that investors viewed the earnings beat and guidance as largely expected but still positive for the company’s trajectory.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.