Whitestone REIT 8K Reports Second Quarter 2021 Results | WSR 3 Aug 21

CORPORATE PROFILE

NYSE: WSR

Whitestone REIT (NYSE: WSR) is a community-centered shopping center REIT that acquires, owns, manages,

Common Shares

develops and redevelops high quality open-air neighborhood centers primarily in the largest, fastest-growing and

most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through

58 Community Centers

creating local connections between consumers in the surrounding communities and a well-crafted mix of national,

5.0 million sq. ft. of gross

regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone

leasable area

has consistently paid a monthly dividend for over 15 years. The Company’s balanced and well-managed

1,440 tenants

capital structure provides stability and flexibility to support it through a multitude of economic cycles.

6 Top Growth Markets

We invest in properties that are or can become Community Centered Properties® from which our tenants deliver

Austin

needed services to the surrounding population. We focus on properties with smaller rental spaces that present

Chicago

opportunities for attractive returns.

Dallas-Fort Worth

Houston

Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide services to their

Phoenix

respective surrounding communities. Operations include an internal management structure providing cost-effective

San Antonio

services to locally-oriented, smaller space tenants. Multi-cultural community focus sets us apart from traditional

commercial real estate operators. We value diversity on our team and maintain in-house leasing, property

Fiscal Year End

management, marketing, construction and maintenance departments with culturally diverse and multi-lingual

12/31

associates who understand the particular needs of our tenants and neighborhoods.

Common Shares &

We have a diverse tenant base concentrated on service offerings such as specialty retail, grocery, restaurants,

Units Outstanding*:

medical, educational and financial services and entertainment. These tenants tend to occupy smaller spaces (less

Common Shares: 46.3 million

than 3,000 square feet) and, as of June 30, 2021, provided a 50% premium rental rate compared to our larger

Operating Partnership Units:

space tenants. The largest of our 1,440 tenants at our wholly owned properties comprised only 2.9% of our

0.8 million

annualized base rental revenues for the three months ended June 30, 2021.

Distribution (per share / unit)*:

Quarter: $ 0.1075

Investor Relations:

Annualized: $ 0.43

Whitestone REIT

ICR LLC.

Dividend Yield: 4.9%**

Rebecca Elliott, Vice President of Corporate Communications

Brad Cohen

2600 South Gessner, Suite 500, Houston, Texas 77063

203.682.8211

Board of Trustees:

713.435.2219 email: ir@whitestonereit.com

Nandita V. Berry

website: www.whitestonereit.com

Jeffrey A. Jones

Paul T. Lambert

Analyst Coverage:

Jack L. Mahaffey

B. Riley FBR

JMP Securities

Maxim Group

James C. Mastandrea

Craig Kucera

Aaron Hecht

Michael Diana

David F. Taylor

540.277.3366

415.835.3963

212.895.3641

Trustee Emeritus:

ckucera@brileyfbr.com

ahecht@jmpsecurities.com

mdiana@maximgrp.com

Daniel G. DeVos

* As of August 2, 2021

** Based on common share price

of $8.69 as of close of market on

August 2, 2021.

We are followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding our performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of our management. We do not by our reference above or distribution imply our endorsement of or concurrence with such information, conclusions or recommendations.


Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

	June 30, 2021		December 31, 2020

ASSETS
Real estate assets, at cost
Property	$	1,109,794	$	1,106,426
Accumulated depreciation	(176,879)		(163,712)
Total real estate assets	932,915		942,714
Investment in real estate partnership	34,257		33,979
Cash and cash equivalents	22,274		25,777
Restricted cash	211		179
Escrows and acquisition deposits	10,402		9,274
Accrued rents and accounts receivable, net of allowance for doubtful accounts (1)	21,346		23,009
Receivable due from related party	647		335
Unamortized lease commissions, legal fees and loan costs	8,321		7,686
Prepaid expenses and other assets(2)	3,737		2,049
Total assets	$	1,034,110	$	1,045,002

LIABILITIES AND EQUITY
Liabilities:
Notes payable	$	614,441	$	644,185
Accounts payable and accrued expenses(3)	40,608		50,918
Payable due to related party	514		125
Tenants' security deposits	7,280		6,916
Dividends and distributions payable	4,995		4,532
Total liabilities	667,838		706,676
Commitments and contingencies:	—		—
Equity:
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of June 30, 2021 and December 31, 2020	—		—
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 45,692,791 and 42,391,316 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	45		42
Additional paid-in capital	589,764		562,250
Accumulated deficit	(218,842)		(215,809)
Accumulated other comprehensive loss	(10,966)		(14,400)
Total Whitestone REIT shareholders' equity	360,001		332,083
Noncontrolling interest in subsidiary	6,271		6,243
Total equity	366,272		338,326
Total liabilities and equity	$	1,034,110	$	1,045,002


Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands)

	June 30, 2021		December 31, 2020
(1) Accrued rents and accounts receivable, net of allowance for doubtful accounts
Tenant receivables	$	21,026	$	22,956
Accrued rents and other recoveries	16,435		16,348
Allowance for doubtful accounts	(16,186)		(16,426)
Other receivables	71		131
Total accrued rents and accounts receivable, net of allowance for doubtful accounts	$	21,346	$	23,009

(2) Operating lease right of use assets (net)	$	432	$	592
(3) Operating lease liabilities	$	439	$	603


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)

	Three Months Ended						% Change From
	June 30, 2021		March 31, 2021		June 30, 2020		March 31, 2021		June 30, 2020
Revenues
Rental(1)	$	30,152	$	28,695	$	27,052	5	%	11	%
Management, transaction, and other fees	466		350		545		33	%	(14)	%
Total revenues	30,618		29,045		27,597		5	%	11	%

Operating expenses
Depreciation and amortization	7,105		7,013		6,970		1	%	2	%
Operating and maintenance	5,444		4,839		4,395		13	%	24	%
Real estate taxes	4,160		4,038		4,385		3	%	(5)	%
General and administrative	4,730		5,634		4,644		(16)	%	2	%
Total operating expenses	21,439		21,524		20,394		—	%	5	%

Other expenses (income)
Interest expense	6,143		6,132		6,468		—	%	(5)	%
(Gain) loss on sale or disposal of assets, net	(224)		(1)		657		N.M. (2)		N.M.
Interest, dividend and other investment income	(23)		(49)		(73)		(53)	%	(68)	%
Total other expense	5,896		6,082		7,052		(3)	%	(16)	%

Income before equity investment in real estate partnership and income tax	3,283		1,439		151		128	%	2074	%

Equity in earnings of real estate partnership	189		89		364		112	%	(48)	%
Provision for income tax	(87)		(87)		(96)		—	%	(9)	%
Income from continuing operations	3,385		1,441		419		135	%	708	%

Gain on sale of property from discontinued operations	1,833		—		—		N.M.		N.M.
Income from discontinued operations	1,833		—		—		N.M.		N.M.

Net income	5,218		1,441		419		262	%	1145	%

Less: Net income attributable to noncontrolling interests	92		26		9		254	%	922	%

Net income attributable to Whitestone REIT	$	5,126	$	1,415	$	410	262	%	1150	%


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)

	Three Months Ended						% Change From
	June 30, 2021		March 31, 2021		June 30, 2020		March 31, 2021		June 30, 2020
Basic Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.08	$	0.03	$	0.01	167	%	700	%
Income from discontinued operations attributable to Whitestone REIT	0.04		0.00		0.00		N.M.		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.12	$	0.03	$	0.01	300	%	1100	%
Diluted Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.08	$	0.03	$	0.01	167	%	700	%
Income from discontinued operations attributable to Whitestone REIT	0.04		0.00		0.00		N.M.		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.12	$	0.03	$	0.01	300	%	1100	%

Weighted average number of common shares outstanding:
Basic	43,378		42,495		42,212		2	%	3	%
Diluted	44,125		43,331		42,763		2	%	3	%

Consolidated Statements of Comprehensive Income (Loss)

Net income	$	5,218	$	1,441	$	419	262	%	1145	%

Other comprehensive income (loss)

Unrealized gain (loss) on cash flow hedging activities	1,289		2,221		(684)		N.M.		N.M.

Comprehensive income (loss)	6,507		3,662		(265)		N.M.		N.M.

Less: Net income attributable to noncontrolling interests	92		26		9		254	%	922	%
Less: Comprehensive income (loss) attributable to noncontrolling interests	21		41		(15)		N.M.		N.M.

Comprehensive income (loss) attributable to Whitestone REIT	$	6,394	$	3,595	$	(259)	N.M.		N.M.



Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)

	Three Months Ended						% Change From
	June 30, 2021		March 31, 2021		June 30, 2020		March 31, 2021		June 30, 2020
(1) Rental
Rental revenues	$	22,238	$	21,626	$	21,706	3	%	2	%
Recoveries	8,057		7,598		7,674		6	%	5	%
Bad debt	(143)		(529)		(2,328)		73	%	94	%
Total rental	$	30,152	$	28,695	$	27,052	5	%	11	%

(2) Not Meaningful


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)

	Six Months Ended June 30,				% Change From June 30,
	2021		2020		2020
Revenues
Rental(1)	$	58,847	$	57,248	3	%
Management, transaction, and other fees	816		933		(13)	%
Total revenues	59,663		58,181		3	%

Operating expenses
Depreciation and amortization	14,118		13,941		1	%
Operating and maintenance	10,283		9,992		3	%
Real estate taxes	8,198		8,921		(8)	%
General and administrative	10,364		9,744		6	%
Total operating expenses	42,963		42,598		1	%

Other expenses (income)
Interest expense	12,275		13,161		(7)	%
(Gain) loss on sale or disposal of assets, net	(225)		864		(126)	%
Interest, dividend and other investment income	(72)		(135)		(47)	%
Total other expense	11,978		13,890		(14)	%

Income before equity investment in real estate partnership and income tax	4,722		1,693		179	%

Equity in earnings of real estate partnership	278		556		(50)	%
Provision for income tax	(174)		(183)		(5)	%
Income from continuing operations	4,826		2,066		134	%

Gain on sale of property from discontinued operations	1,833		—		N.M.
Income from discontinued operations	1,833		—		N.M.

Net income	6,659		2,066		222	%

Less: Net income attributable to noncontrolling interests	118		44		168	%

Net income attributable to Whitestone REIT	$	6,541	$	2,022	223	%


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)

	Six Months Ended June 30,				% Change From June 30,
	2021		2020		2020
Basic Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.11	$	0.05	120	%
Income from discontinued operations attributable to Whitestone REIT	0.04		0.00		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.15	$	0.05	200	%
Diluted Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.11	$	0.05	120	%
Income from discontinued operations attributable to Whitestone REIT	0.04		0.00		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.15	$	0.05	200	%

Weighted average number of common shares outstanding:
Basic	42,939		42,130		2	%
Diluted	43,730		42,734		2	%

Consolidated Statements of Comprehensive Income (Loss)

Net income	$	6,659	$	2,066	222	%

Other comprehensive income (loss)

Unrealized gain (loss) on cash flow hedging activities	3,510		(11,636)		N.M.

Comprehensive income (loss)	10,169		(9,570)		N.M.

Less: Net income attributable to noncontrolling interests	118		44		168	%
Less: Comprehensive income (loss) attributable to noncontrolling interests	62		(246)		N.M.

Comprehensive income (loss) attributable to Whitestone REIT	$	9,989	$	(9,368)	N.M.



Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)

	Six Months Ended June 30,				% Change From June 30,
	2021		2020		2020
(1) Rental
Rental revenues	$	43,864	$	43,783	—	%
Recoveries	15,655		16,637		(6)	%
Bad debt	(672)		(3,172)		79	%
Total rental	$	58,847	$	57,248	3	%


Whitestone REIT and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

	Six Months Ended June 30,
	2021		2020
Cash flows from operating activities:
Net income from continuing operations	$	4,826	$	2,066
Net income from discontinued operations	1,833		—
Net income	6,659		2,066
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,118		13,941
Amortization of deferred loan costs	548		562
(Gain) loss on sale or disposal of assets and loan forgiveness, net	(225)		864
Bad debt	672		3,172
Share-based compensation	2,575		2,388
Equity in earnings of real estate partnership	(278)		(556)
Changes in operating assets and liabilities:
Escrows and acquisition deposits	(1,128)		1,448
Accrued rents and accounts receivable	991		(4,994)
Receivable due from related party	(312)		(592)
Unamortized lease commissions, legal fees and loan costs	(1,852)		(461)
Prepaid expenses and other assets	201		1,263
Accounts payable and accrued expenses	(6,800)		(5,843)
Payable due to related party	389		398
Tenants' security deposits	364		264
Net cash provided by operating activities	14,089		13,920
Cash flows from investing activities:
Additions to real estate	(3,499)		(3,053)
Net cash used in investing activities	(3,499)		(3,053)
Net cash provided by investing activities of discontinued operations	1,833		—
Cash flows from financing activities:
Distributions paid to common shareholders	(9,082)		(16,341)
Distributions paid to OP unit holders	(165)		(349)
Proceeds from issuance of common shares, net of offering costs	25,371		2,241
Payments of exchange offer costs	(31)		(43)
Proceeds from notes payable	—		1,734
Net proceeds from (payments of) credit facility	(30,000)		30,000
Repayments of notes payable	(1,559)		(1,603)
Repurchase of common shares	(428)		(2,070)
Net cash provided by (used in) financing activities	(15,894)		13,569
Net increase (decrease) in cash, cash equivalents and restricted cash	(3,471)		24,436
Cash, cash equivalents and restricted cash at beginning of period	25,956		15,643
Cash, cash equivalents and restricted cash at end of period (1)	$	22,485	$	40,079

(1) For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below.


Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Supplemental Disclosures
(in thousands)

	Six Months Ended June 30,
	2021		2020
Supplemental disclosure of cash flow information:
Cash paid for interest	$	11,829	$	12,626
Cash paid for taxes	$	364	$	—
Non cash investing and financing activities:
Disposal of fully depreciated real estate	$	3	$	24
Financed insurance premiums	$	1,712	$	1,431
Value of shares issued under dividend reinvestment plan	$	30	$	58
Value of common shares exchanged for OP units	$	—	$	1,127
Change in fair value of cash flow hedge	$	3,510	$	(11,636)


	June 30,
	2021		2020
Cash, cash equivalents and restricted cash
Cash and cash equivalents	$	22,274	$	39,924
Restricted cash	211		155
Total cash, cash equivalents and restricted cash	$	22,485	$	40,079


Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)

	Three Months Ended						Change From
	June 30, 2021		March 31, 2021		June 30, 2020		March 31, 2021		June 30, 2020
FFO (NAREIT) AND FFO CORE
Net income attributable to Whitestone REIT	$	5,126	$	1,415	$	410	262	%	1150	%
Adjustments to reconcile to FFO:
Depreciation and amortization of real estate assets	7,068		6,980		6,909		1	%	2	%
Depreciation and amortization of real estate assets of real estate partnership (pro rata)	409		405		427		1	%	(4)	%
(Gain) loss on sale or disposal of assets, net	(224)		(1)		657		(22300)	%	(134)	%
Gain on sale of property from discontinued operations	(1,833)		—		—		N.M.		N.M.
(Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata)	(20)		—		1		N.M.		N.M.
Net income attributable to noncontrolling interests	92		26		9		254	%	922	%
FFO (NAREIT)	10,618		8,825		8,413		20	%	26	%
Adjustments to reconcile to FFO Core:
Share-based compensation expense	1,244		1,468		1,196		(15)	%	4	%
FFO Core	$	11,862	$	10,293	$	9,609	15	%	23	%

FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO	$	10,618	$	8,825	$	8,413	20	%	26	%
Distributions paid on unvested restricted common shares	—		—		—		N.M.		N.M.
FFO excluding amounts attributable to unvested restricted common shares	$	10,618	$	8,825	$	8,413	20	%	26	%
FFO Core excluding amounts attributable to unvested restricted common shares	$	11,862	$	10,293	$	9,609	15	%	23	%
Denominator:
Weighted average number of total common shares - basic	43,378		42,495		42,212		2	%	3	%
Weighted average number of total noncontrolling OP units - basic	773		773		828		—	%	(7)	%
Weighted average number of total common shares and noncontrolling OP units - basic	44,151		43,268		43,040		2	%	3	%

Effect of dilutive securities:
Unvested restricted shares	747		836		551		(11)	%	36	%
Weighted average number of total common shares and noncontrolling OP units - diluted	44,898		44,104		43,591		2	%	3	%

FFO per common share and OP unit - basic	$	0.24	$	0.20	$	0.20	20	%	20	%
FFO per common share and OP unit - diluted	$	0.24	$	0.20	$	0.19	20	%	26	%

FFO Core per common share and OP unit - basic	$	0.27	$	0.24	$	0.22	13	%	23	%
FFO Core per common share and OP unit - diluted	$	0.26	$	0.23	$	0.22	13	%	18	%


Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)

					% Change
	Six Months Ended June 30,				From June 30,
	2021		2020		2020
FFO (NAREIT) AND FFO CORE
Net income attributable to Whitestone REIT	$	6,541	$	2,022	223	%
Adjustments to reconcile to FFO:
Depreciation and amortization of real estate assets	14,048		13,818		2	%
Depreciation and amortization of real estate assets of real estate partnership (pro rata)	814		876		(7)	%
(Gain) loss on sale or disposal of assets, net	(225)		864		(126)	%
Gain on sale of property from discontinued operations	(1,833)		—		N.M.
(Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata)	(20)		54		(137)	%
Net income attributable to noncontrolling interests	118		44		168	%
FFO (NAREIT)	19,443		17,678		10	%
Adjustments to reconcile to FFO Core:
Share-based compensation expense	2,712		2,522		8	%
FFO Core	$	22,155	$	20,200	10	%

FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO	$	19,443	$	17,678	10	%
Distributions paid on unvested restricted common shares	—		—		N.M.
FFO excluding amounts attributable to unvested restricted common shares	$	19,443	$	17,678	10	%
FFO Core excluding amounts attributable to unvested restricted common shares	$	22,155	$	20,200	10	%
Denominator:
Weighted average number of total common shares - basic	42,939		42,130		2	%
Weighted average number of total noncontrolling OP units - basic	773		866		(11)	%
Weighted average number of total common shares and noncontrolling OP units - basic	43,712		42,996		2	%

Effect of dilutive securities:
Unvested restricted shares	791		604		31	%
Weighted average number of total common shares and noncontrolling OP units - diluted	44,503		43,600		2	%

FFO per common share and OP unit - basic	$	0.44	$	0.41	7	%
FFO per common share and OP unit - diluted	$	0.44	$	0.41	7	%

FFO Core per common share and OP unit - basic	$	0.51	$	0.47	9	%
FFO Core per common share and OP unit - diluted	$	0.50	$	0.46	9	%


Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
PROPERTY NET OPERATING INCOME
Net income attributable to Whitestone REIT	$	5,126	$	410	$	6,541	$	2,022
General and administrative expenses	4,730		4,644		10,364		9,744
Depreciation and amortization	7,105		6,970		14,118		13,941
Equity in earnings of real estate partnership	(189)		(364)		(278)		(556)
Interest expense	6,143		6,468		12,275		13,161
Interest, dividend and other investment income	(23)		(73)		(72)		(135)
Provision for income taxes	87		96		174		183
Gain on sale of property from discontinued operations	(1,833)		—		(1,833)		—
Management fee, net of related expenses	83		56		163		165
(Gain) loss on sale or disposal of assets, net	(224)		657		(225)		864
NOI of real estate partnership (pro rata)	952		1,164		1,843		2,260
Net income attributable to noncontrolling interests	92		9		118		44
NOI	22,049		20,037		43,188		41,693
Non-Same Store NOI (1)	—		—		—		—
NOI of real estate partnership (pro rata)	(952)		(1,164)		(1,843)		(2,260)
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)	21,097		18,873		41,345		39,433
Same Store straight-line rent adjustments	(484)		285		(694)		619
Same Store amortization of above/below market rents	(240)		(226)		(441)		(434)
Same Store lease termination fees	(150)		(271)		(227)		(301)
Same Store NOI (2)	$	20,223	$	18,661	$	39,983	$	39,317

(1) We define “Non-Same Store” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. For purposes of comparing the three months ended June 30, 2021 to the three months ended June 30, 2020, Non-Same Store includes properties acquired between April 1, 2020 and June 30, 2021 and properties sold between April 1, 2020 and June 30, 2021, but not included in discontinued operations. For purposes of comparing the six months ended June 30, 2021 to the six months ended June 30, 2020, Non-Same Store includes properties acquired between January 1, 2020 and June 30, 2021 and properties sold between January 1, 2020 and June 30, 2021, but not included in discontinued operations.

(2) We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended June 30, 2021 to the three months ended June 30, 2020, Same Store includes properties owned before April 1, 2020 and not sold before June 30, 2021. For purposes of comparing the six months ended June 30, 2021 to the six months ended June 30, 2020, Same Store includes properties owned before January 1, 2020 and not sold before June 30, 2021.


Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)

	Three Months Ended						% Change From
	June 30, 2021		March 31, 2021		June 30, 2020		March 31, 2021		June 30, 2020
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)

Net income attributable to Whitestone REIT	$	5,126	$	1,415	$	410	262	%	1150	%
Depreciation and amortization	7,105		7,013		6,970		1	%	2	%
Interest expense	6,143		6,132		6,468		—	%	(5)	%
Provision for income taxes	87		87		96		—	%	(9)	%
Net income attributable to noncontrolling interests	92		26		9		254	%	922	%
Equity in earnings of real estate partnership	(189)		(89)		(364)		112	%	(48)	%
EBITDAre adjustments for real estate partnership	766		685		999		12	%	(23)	%
Gain on sale of property from discontinued operations	(1,833)		—		—		N.M.		N.M.
(Gain) loss on sale or disposal of assets, net	(224)		(1)		657		(22300)	%	(134)	%
EBITDAre	17,073		15,268		15,245		12	%	12	%
Management fee, net of related expenses	83		80		56		4	%	48	%
Share-based compensation expense	1,244		1,468		1,196		(15)	%	4	%
EBITDAre-Adjusted	$	18,400	$	16,816	$	16,497	9	%	12	%


	Six Months Ended June 30,				% Change From June 30,
	2021		2020		2020
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)

Net income attributable to Whitestone REIT	$	6,541	$	2,022	223	%
Depreciation and amortization	14,118		13,941		1	%
Interest expense	12,275		13,161		(7)	%
Provision for income taxes	174		183		(5)	%
Net income attributable to noncontrolling interests	118		44		168	%
Equity in earnings of real estate partnership	(278)		(556)		(50)	%
EBITDAre adjustments for real estate partnership	1,451		1,886		(23)	%
Gain on sale of property from discontinued operations	(1,833)		—
(Gain) loss on sale or disposal of assets, net	(225)		864		(126)	%
EBITDAre	32,341		31,545		3	%
Management fee, net of related expenses	163		165		(1)	%
Share-based compensation expense	2,712		2,522		8	%
EBITDAre-Adjusted	$	35,216	$	34,232	3	%


Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)

	Three Months Ended June 30,				Increase		% Increase
	2021		2020		(Decrease)		(Decrease)
Same Store (53 properties excluding development land)
Property revenues
Rental	$	30,152	$	27,052	$	3,100	11	%
Management, transaction and other fees	321		390		(69)		(18)	%
Total property revenues	30,473		27,442		3,031		11	%

Property expenses
Property operation and maintenance	5,216		4,184		1,032		25	%
Real estate taxes	4,160		4,385		(225)		(5)	%
Total property expenses	9,376		8,569		807		9	%

Total property revenues less total property expenses	21,097		18,873		2,224		12	%

Same Store straight-line rent adjustments	(484)		285		(769)		(270)	%
Same Store amortization of above/below market rents	(240)		(226)		(14)		6	%
Same Store lease termination fees	(150)		(271)		121		(45)	%

Same Store NOI (1)	$	20,223	$	18,661	$	1,562	8	%

(1) For a reconciliation of Same Store NOI, see previous section “Reconciliation of Non-GAAP Measures.”


Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)

	Six Months Ended June 30,				Increase		% Increase
	2021		2020		(Decrease)		(Decrease)
Same Store (53 properties, excluding development land)
Property revenues
Rental	$	58,847	$	57,248	$	1,599	3	%
Management, transaction and other fees	532		622		(90)		(14)	%
Total property revenues	59,379		57,870		1,509		3	%

Property expenses
Property operation and maintenance	9,836		9,516		320		3	%
Real estate taxes	8,198		8,921		(723)		(8)	%
Total property expenses	18,034		18,437		(403)		(2)	%

Total property revenues less total property expenses	41,345		39,433		1,912		5	%

Same Store straight-line rent adjustments	(694)		619		(1,313)		(212)	%
Same Store amortization of above/below market rents	(441)		(434)		(7)		2	%
Same Store lease termination fees	(227)		(301)		74		(25)	%

Same Store NOI(1)	$	39,983	$	39,317	$	666	2	%

(1) For a reconciliation of Same Store NOI, see previous section “Reconciliation of Non-GAAP Measures.”


Whitestone REIT and Subsidiaries
OTHER FINANCIAL INFORMATION
(in thousands, except number of properties and employees)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Other Financial Information:

Tenant improvements (1) (2)	$	488	$	491	$	968	$	985
Leasing commissions (1) (2)	$	969	$	366	$	1,735	$	736
Maintenance capital (1)	$	1,340	$	824	$	2,079	$	1,910
Scheduled debt principal payments (1)	$	436	$	477	$	890	$	960
Straight-line rent income (1)	$	472	$	(343)	$	686	$	(725)
Market rent amortization income from acquired leases (1)	$	228	$	232	$	426	$	439
Non-cash share-based compensation expense (1)	$	1,244	$	1,196	$	2,712	$	2,522
Non-real estate depreciation and amortization (1)	$	36	$	61	$	70	$	123
Amortization of loan fees (1)	$	279	$	286	$	559	$	569
Undepreciated value of unencumbered properties	$	828,298	$	804,714	$	828,298	$	804,714
Number of unencumbered properties	51		50		51		50
Full time employees	91		86		91		86

(1) Includes pro-rata share attributable to real estate partnership.

(2) Does not include first generation costs needed for new acquisitions, development or redevelopment of a property to bring the property to operating standards for its intended use.


Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(in thousands, except per share amounts and percentages)

	As of June 30, 2021
MARKET CAPITALIZATION:	Percent of Total Equity		Total Market Capitalization		Percent of Total Market Capitalization
Equity Capitalization:
Common shares outstanding	98.3	%	45,693
Operating partnership units outstanding	1.7	%	773
Total	100.0	%	46,466

Market price of common shares as of
June 30, 2021			$	8.25

Total equity capitalization			$	383,345	39	%

Debt Capitalization:
Outstanding debt			$	615,316
Less: Cash and cash equivalents			(22,274)
Total debt capitalization			593,042		61	%

Total Market Capitalization as of
June 30, 2021			$	976,387	100	%


SELECTED RATIOS:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
INTEREST COVERAGE RATIO	2021		2020		2021		2020
EBITDAre/Interest Expense
EBITDAre (1)	$	17,073	$	15,245	$	32,341	$	31,545

Interest expense	6,143		6,468		12,275		13,161
Pro rata share of interest expense from real estate partnership	163		167		324		323
Less: amortization of loan fees, including pro rata share from real estate partnership	(279)		(286)		(559)		(569)
Interest expense, excluding amortization of loan fees	6,027		6,349		12,040		12,915

Ratio of EBITDAre to interest expense	2.8		2.4		2.7		2.4

(1) For a reconciliation of EBITDAre, see previous section “Reconciliation of Non-GAAP Measures.”


Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(continued)
(in thousands, except per share amounts and percentages)

LEVERAGE RATIO	June 30,
	2021			2020
Debt/Undepreciated Book Value
Outstanding debt	$	614,392		$	676,781
Less: Cash	(22,274)			(39,924)
Add: Proportional share of net debt of real estate partnership	8,894			9,467
Outstanding debt after cash	$	601,012		$	646,324

Undepreciated real estate assets	$	1,109,794		$	1,102,379
Add: Proportional share of real estate from unconsolidated partnership	46,124			45,801
Undepreciated real estate assets	$	1,155,918		$	1,148,180
Ratio of debt to real estate assets	52		%	56		%


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Debt/EBITDAre Ratio
Outstanding debt	$	614,392	$	676,781	$	614,392	$	676,781
Less: Cash	(22,274)		(39,924)		(22,274)		(39,924)
Add: Proportional share of net debt of unconsolidated real estate partnership	8,894		9,467		8,894		9,467
Total Net Debt	$	601,012	$	646,324	$	601,012	$	646,324

EBITDAre	$	17,073	$	15,245	$	32,341	$	31,545
Management fee, net of related expenses	83		56		163		165
Share based compensation	1,244		1,196		2,712		2,522
EBITDAre-Adjusted	$	18,400	$	16,497	$	35,216	$	34,232

Effect of partial period acquisitions and dispositions	—		—		—		—

Pro forma EBITDAre-Adjusted	18,400		16,497		35,216		34,232

Pro forma annualized EBITDAre-Adjusted	$	73,600	$	65,988	$	70,432	$	68,464

Ratio of debt to pro forma EBITDAre-Adjusted	8.2		9.8		8.5		9.4


Whitestone REIT and Subsidiaries
SUMMARY OF OUTSTANDING DEBT AND DEBT MATURITIES
TOTAL OUTSTANDING DEBT
(in thousands)

Description	June 30, 2021		December 31, 2020
Fixed rate notes
$100.0 million, 1.73% plus 1.35% to 1.90% Note, due October 30, 2022 (1)	$	100,000	$	100,000
$165.0 million, 2.24% plus 1.35% to 1.90% Note, due January 31, 2024 (2)	165,000		165,000
$80.0 million, 3.72% Note, due June 1, 2027	80,000		80,000
$19.0 million 4.15% Note, due December 1, 2024	18,523		18,687
$20.2 million 4.28% Note, due June 6, 2023	18,016		18,222
$14.0 million 4.34% Note, due September 11, 2024	13,108		13,236
$14.3 million 4.34% Note, due September 11, 2024	13,894		14,014
$15.1 million 4.99% Note, due January 6, 2024	14,037		14,165
$2.6 million 5.46% Note, due October 1, 2023	2,314		2,339
$50.0 million, 5.09% Note, due March 22, 2029	50,000		50,000
$50.0 million, 5.17% Note, due March 22, 2029	50,000		50,000
$1.7 million 3.25% Note, due December 28, 2021	924		—
Floating rate notes
Unsecured line of credit, LIBOR plus 1.40% to 1.90%, due January 31, 2023	89,500		119,500
Total notes payable principal	615,316		645,163
Less deferred financing costs, net of accumulated amortization	(875)		(978)
Total notes payable	$	614,441	$	644,185

(1) Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 3 at 1.73%.

(2) Promissory note includes an interest rate swap that fixed the LIBOR portion of the interest rate at an average rate of 2.24% for the duration of the term through January 31, 2024.


SCHEDULE OF DEBT MATURITIES AS OF JUNE 30, 2021
(in thousands)

Year	Amount Due
2021 (remaining)	$	1,981
2022	101,684
2023	117,363
2024	228,574
2025	17,143

Thereafter	148,571
Total	$	615,316


Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS

	Gross Leasable Area as of	Occupancy % as of
	June 30,	June 30,		March 31		December 31,		September 30,
Community Centered Properties®	2021	2021		2021		2020		2020
Whitestone	4,953,571	90	%	89	%	88	%	89	%

Unconsolidated real estate partnership	926,798	61	%	59	%	61	%	62	%


Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS
(continued)

Tenant Name	Location	Annualized Rental Revenue (in thousands)		Percentage of Total Annualized Base Rental Revenues (1)		Initial Lease Date	Year Expiring

Safeway Stores Incorporated (2)	Austin, Houston and Phoenix	$	2,529	2.9	%	11/14/1982, 5/8/1991, 7/1/2000, 4/1/2014, 4/1/2014 and 10/19/16	2022, 2024, 2025, 2025, 2026 and 2034
Whole Foods Market	Houston	2,247		2.6	%	9/3/2014	2035
Frost Bank	Houston	1,948		2.2	%	7/1/2014	2024
Newmark Real Estate of Houston LLC	Houston	1,050		1.2	%	10/1/2015	2026
Bashas' Inc. (3)	Phoenix	1,010		1.2	%	10/9/2004 and 4/1/2009	2024 and 2029
Verizon Wireless (4)	Houston and Phoenix	946		1.1	%	8/16/1994, 2/1/2004, 5/10/2004, 1/27/2006 and 5/1/2014	2022, 2023, 2024, 2024 and 2038
Walgreens & Co. (5)	Houston and Phoenix	946		1.1	%	11/14/1982, 11/2/1987, 8/24/1996 and 11/3/1996	2022, 2027, 2049 and 2056
Alamo Drafthouse Cinema	Austin	690		0.8	%	2/1/2012	2031
Dollar Tree (6)	Houston and Phoenix	635		0.7	%	8/10/1999, 6/29/2001, 11/8/2009, 12/17/2009, and 5/21/2013	2023, 2025, 2025, 2026 and 2027
Wells Fargo & Company (7)	Phoenix	592		0.7	%	10/24/1996 and 4/16/1999	2022 and 2023
Kroger Co.	Dallas	483		0.6	%	12/15/2000	2022
Regus Corporation	Houston	460		0.5	%	5/23/2014	2025
Paul's Ace Hardware	Phoenix	427		0.5	%	3/1/2008	2023
Original Ninfas LP	Houston	411		0.5	%	8/29/2018	2029
Whataburger University	San Antonio	374		0.4	%	2/1/2018	2023
		$	14,748	17.0	%

(1) Annualized Base Rental Revenues represents the monthly base rent as of June 30, 2021 for each applicable tenant multiplied by 12.

(2) As of June 30, 2021, we had six leases with the same tenant occupying space at properties located in Phoenix, Houston and Austin. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2034, was $1,047,000, which represents approximately 1.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2024, was $42,000, which represents less than 0.1% of our annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 8, 1991, and is scheduled to expire in 2026, was $344,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on July 1, 2000, and is scheduled to expire in 2025, was $353,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized

rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in 2022, was $318,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on October 19, 2016, and is scheduled to expire in 2025, was $425,000, which represents approximately 0.5% of our total annualized base rental revenue.

(3) As of June 30, 2021, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 9, 2004, and is scheduled to expire in 2024, was $281,000, which represents approximately 0.3% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2009, and is scheduled to expire in 2029, was $729,000, which represents approximately 0.9% of our total annualized base rental revenue.

(4) As of June 30, 2021, we had five leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on August 16, 1994, and is scheduled to expire in 2038, was $22,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on January 27, 2006, and is scheduled to expire in 2023, was $136,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on February 1, 2004, and is scheduled to expire in 2024, was $38,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 1, 2014, and is scheduled to expire in 2024, was $749,000, which represents approximately 0.9% of our total annualized rental revenue. The annualized rental revenue for the lease that commenced on May 10, 2004, and is scheduled to expire in 2022, was $0, which represents less than 0.1% of our total annualized base rental revenue.

(5) As of June 30, 2021, we had four leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on November 3, 1996, and is scheduled to expire in 2049, was $279,000, which represents approximately 0.3% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 2, 1987, and is scheduled to expire in 2027, was $189,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in 2022, was $181,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on August 24, 1996, and is scheduled to expire in 2056, was $298,000, which represents approximately 0.3% of our total annualized rental revenue.

(6) As of June 30, 2021, we had five leases with the same tenant occupying space at properties in Houston and Phoenix. The annualized rental revenue for the lease that commenced on August 10, 1999, and is scheduled to expire in 2025, was $88,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on December 17, 2009, and is scheduled to expire in 2025, was $118,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on June 29, 2001, and is scheduled to expire in 2026, was $169,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 21, 2013, and is scheduled to expire in 2023, was $110,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 8, 2009, and is scheduled to expire in 2027, was $151,000, which represents approximately 0.2% of our total annualized base rental revenue.

(7) As of June 30, 2021, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 24, 1996, and is scheduled to expire in 2022, was $131,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 16, 1999, and is scheduled to expire in 2023, was $461,000, which represents approximately 0.5% of our total annualized base rental revenue.


Whitestone REIT and Subsidiaries
TENANT TYPE SUMMARY
As of June 30, 2021

	% of Leased SF	% of ABR
Restaurants & Food Service	18%	23%
Grocery	15%	9%
Financial Services	6%	9%
Salons	7%	8%
Medical & Dental	6%	8%
Non Retail	4%	6%
Home Décor And Improvement	7%	5%
General Retail	7%	5%
Apparel	4%	4%
Education	4%	4%
Fitness	5%	4%
Local Services	2%	3%
Off-Price	4%	2%
Pet Supply & Services	3%	2%
Wireless	1%	2%
Entertainment	2%	2%
Pharmacies & Nutritional Supplies	2%	2%
Sporting Goods	1%	1%
Postal Services	1%	1%
Automotive Supply & Services	1%	1%
Total	100%	100%


Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
RENEWALS
Number of Leases	57		43		105		99
Total Square Feet (1)	181,551		136,937		289,783		305,167
Average Square Feet	3,185		3,185		2,760		3,082
Total Lease Value	$	17,537,000	$	9,756,000	$	28,466,000	$	25,679,000
NEW LEASES
Number of Leases	35		21		81		45
Total Square Feet (1)	75,071		43,308		192,064		96,217
Average Square Feet	2,145		2,062		2,371		2,138
Total Lease Value	$	12,312,000	$	5,238,000	$	32,208,000	$	11,270,000
TOTAL LEASES
Number of Leases	92		64		186		144
Total Square Feet (1)	256,622		180,245		481,847		401,384
Average Square Feet	2,789		2,816		2,591		2,787
Total Lease Value	$	29,849,000	$	14,994,000	$	60,673,000	$	36,949,000

(1) Represents the square footage as the result of new, renewal, expansion and contraction leases.


Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY

Type	Number of Leases Signed	Lease Value Signed		GLA Signed	Weighted Average Lease Term (2)	TI and Incentives (3)		TI and Incentives Per Sq. Ft.		Contractual Rent Per Sq. Ft. (4)		Prior Contractual Rent Per Sq. Ft. (5)		Annual Increase (Decrease) in Contractual Rent		Cash Basis Increase (Decrease) Over Prior Rent		Annual Increase (Decrease) in Straight-lined Rent		Straight-lined Basis Increase (Decrease) Over Prior Rent

Comparable: (1)

Comparable Total Leases:
2nd Quarter 2021	71	$	22,322,346	207,913	5.1	$	2,069,587	$	9.95	$	20.91	$	21.12	$	(44,199)	(1.0)	%	$	282,582	6.8	%
1st Quarter 2021	72	21,870,651		160,509	5.4	1,201,947		7.49		22.12		23.14		(162,801)		(4.4)	%	273,174		7.8	%
4th Quarter 2020	73	16,880,587		297,812	4.1	388,146		1.30		13.20		13.19		4,030		0.1	%	254,859		6.8	%
3rd Quarter 2020	63	15,059,079		216,564	3.8	723,072		3.34		16.35		15.83		107,566		3.3	%	344,848		11.0	%
Total - 12 months	279	$	76,132,663	882,798	4.5	$	4,382,752	$	4.96	$	17.41	$	17.51	$	(95,404)	(0.6)	%	$	1,155,463	8.0	%

Comparable New Leases:
2nd Quarter 2021	19	$	5,852,882	39,326	5.6	$	892,966	$	22.71	$	25.01	$	25.52	$	(19,839)	(2.0)	%	$	29,940	3.1	%
1st Quarter 2021	26	11,296,796		56,578	6.7	1,002,823		17.72		23.87		26.52		(149,925)		(10.0)	%	75,001		5.3	%
4th Quarter 2020	20	4,653,817		30,371	5.5	291,222		9.59		23.58		26.73		(95,836)		(11.8)	%	(42,922)		(5.4)	%
3rd Quarter 2020	18	5,437,366		45,158	4.8	630,803		13.97		22.39		21.80		26,323		2.7	%	25,687		2.9	%
Total - 12 months	83	$	27,240,861	171,433	5.7	$	2,817,814	$	16.44	$	23.69	$	25.09	$	(239,277)	(5.6)	%	$	87,706	2.2	%

Comparable Renewal Leases:
2nd Quarter 2021	52	$	16,469,464	168,587	5.0	$	1,176,621	$	6.98	$	19.95	$	20.09	$	(24,360)	(0.7)	%	$	252,642	7.9	%
1st Quarter 2021	46	10,573,855		103,931	4.7	199,124		1.92		21.17		21.29		(12,876)		(0.6)	%	198,173		9.6	%
4th Quarter 2020	53	12,226,770		267,441	3.9	96,924		0.36		12.02		11.65		99,866		3.2	%	297,781		10.1	%
3rd Quarter 2020	45	9,621,713		171,406	3.5	92,269		0.54		14.76		14.28		81,243		3.4	%	319,161		13.9	%
Total - 12 months	196	$	48,891,802	711,365	4.2	$	1,564,938	$	2.20	$	15.89	$	15.69	$	143,873	1.3	%	$	1,067,757	10.2	%


Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY
(continued)

Type	Number of Leases Signed	Lease Value Signed		GLA Signed	Weighted Average Lease Term (2)	TI and Incentives (3)		TI and Incentives per Sq. Ft.		Contractual Rent Per Sq. Ft. (4)

Total:

New & Renewal
2nd Quarter 2021	92	$	29,849,313	256,622	5.2	$	2,870,379	$	11.19	$	21.38
1st Quarter 2021	94	30,824,156		225,225	5.7	2,034,341		9.03		21.44
4th Quarter 2020	84	19,013,353		322,875	4.0	502,216		1.56		13.69
3rd Quarter 2020	78	19,540,109		257,370	4.0	1,002,715		3.90		16.85
Total - 12 months	348	$	99,226,931	1,062,092	4.7	$	6,409,651	$	6.03	$	17.96

New
2nd Quarter 2021	35	$	12,312,470	75,071	5.9	$	1,652,986	$	22.02	$	24.44
1st Quarter 2021	46	19,895,385		116,993	6.7	1,832,500		15.66		21.62
4th Quarter 2020	28	6,477,724		49,664	4.9	401,475		8.08		22.27
3rd Quarter 2020	32	9,861,214		85,196	4.8	906,788		10.64		20.98
Total - 12 months	141	$	48,546,793	326,924	5.8	$	4,793,749	$	14.66	$	22.20

Renewal
2nd Quarter 2021	57	$	17,536,843	181,551	4.9	$	1,217,393	$	6.71	$	20.12
1st Quarter 2021	48	10,928,771		108,232	4.7	201,841		1.86		21.24
4th Quarter 2020	56	12,535,629		273,211	3.9	100,741		0.37		12.13
3rd Quarter 2020	46	9,678,895		172,174	3.5	95,927		0.56		14.81
Total - 12 months	207	$	50,680,138	735,168	4.2	$	1,615,902	$	2.20	$	16.07

(1) Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage.

(2) Weighted average lease term is determined on the basis of square footage.

(3) Estimated amount per signed lease. Actual cost of construction may vary.

(4) Contractual rent represents contractual minimum rent under the new lease for the first month, excluding concessions.

(5) Prior contractual rent represents contractual minimum rent under the prior lease for the final month.


Whitestone REIT and Subsidiaries
LEASE EXPIRATIONS(1)

					Annualized Base Rent(2)
		Gross Leasable Area			as of June 30, 2021
Year	Number of Leases	Square Feet	Percent of Gross Leasable Area		Amount (in thousands)		Percent of Total		Per Square Foot
2021	316	413,134	8.3	%	$	7,391	8.5	%	$	17.89
2022	248	639,283	12.9	%	12,166		13.9	%	19.03
2023	207	624,883	12.6	%	12,177		14.0	%	19.49
2024	205	734,443	14.8	%	15,382		17.6	%	20.94
2025	184	728,903	14.7	%	13,005		14.9	%	17.84
2026	118	472,979	9.5	%	8,422		9.7	%	17.81
2027	45	188,594	3.8	%	4,021		4.6	%	21.32
2028	33	160,416	3.2	%	3,478		4.0	%	21.68
2029	19	160,086	3.2	%	2,901		3.3	%	18.12
2030	23	68,143	1.4	%	2,123		2.4	%	31.16
Total	1,398	4,190,864	84.4	%	$	81,066	92.9	%	$	19.34

(1) Lease expirations table reflects rents in place as of June 30, 2021, and does not include option periods.

(2) Annualized Base Rent represents the monthly base rent as of June 30, 2021 for each tenant multiplied by 12.


Whitestone REIT and Subsidiaries
Property Details
As of June 30, 2021

Community Name	Location	Year Built/ Renovated	Gross Leasable Square Feet	Percent Occupied at 06/30/2021		Annualized Base Rental Revenue (in thousands) (1)		Average Base Rental Revenue Per Sq. Ft. (2)		Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3)
Whitestone Properties:
Ahwatukee Plaza	Phoenix	1979	72,650	83	%	$	744	$	12.33	$	13.28
Anthem Marketplace	Phoenix	2000	113,293	88	%	1,499		15.03		14.99
Anthem Marketplace Phase II	Phoenix	2019	6,853	100	%	235		34.23		33.94
Bissonnet/Beltway	Houston	1978	29,205	93	%	395		14.53		14.67
BLVD Place	Houston	2014	216,944	98	%	8,972		42.20		43.07
The Citadel	Phoenix	2013	28,547	93	%	459		17.31		17.42
City View Village	San Antonio	2005	17,870	100	%	554		30.99		30.26
Davenport Village	Austin	1999	128,934	95	%	3,052		24.92		24.76
Desert Canyon	Phoenix	2000	62,533	88	%	644		11.70		14.40
Eldorado Plaza	Dallas	2004	219,287	95	%	2,857		13.71		15.02
Fountain Hills	Phoenix	2009	111,289	87	%	1,572		16.23		16.24
Fountain Square	Phoenix	1986	118,209	88	%	1,815		17.45		16.76
Fulton Ranch Towne Center	Phoenix	2005	120,575	96	%	2,026		17.50		17.70
Gilbert Tuscany Village	Phoenix	2009	49,415	100	%	1,021		20.66		19.97
Gilbert Tuscany Village Hard Corner	Phoenix	2009	14,603	100	%	124		8.50		8.91
Heritage	Dallas	2006	70,431	100	%	1,649		23.41		23.83
HQ Village	Dallas	2009	89,134	84	%	2,282		30.48		32.14
Keller Place	Dallas	2001	93,541	93	%	919		10.57		11.15
Kempwood Plaza	Houston	1974	91,302	90	%	1,191		14.49		14.44
La Mirada	Phoenix	1997	147,209	90	%	3,105		23.44		23.45
Las Colinas	Dallas	2000	104,919	80	%	1,764		21.02		25.76
Lion Square	Houston	2014	117,592	92	%	1,679		15.52		14.97
The MarketPlace at Central	Phoenix	2012	111,130	98	%	1,093		10.04		9.71
Market Street at DC Ranch	Phoenix	2003	244,888	95	%	5,049		21.70		22.01
Mercado at Scottsdale Ranch	Phoenix	1987	118,730	87	%	1,666		16.13		16.05
Paradise Plaza	Phoenix	1983	125,898	93	%	1,594		13.62		12.91
Parkside Village North	Austin	2005	27,045	100	%	855		31.62		37.46
Parkside Village South	Austin	2012	90,101	100	%	2,206		24.48		25.17
Pima Norte	Phoenix	2007	35,110	62	%	371		17.04		18.64
Pinnacle of Scottsdale	Phoenix	1991	113,108	98	%	2,320		20.93		23.29
Pinnacle Phase II	Phoenix	2017	27,063	100	%	768		28.37		28.63
The Promenade at Fulton Ranch	Phoenix	2007	98,792	80	%	1,093		13.83		14.13
Providence	Houston	1980	90,327	98	%	1,064		12.02		11.80
Quinlan Crossing	Austin	2012	109,892	96	%	2,355		22.32		23.80
Seville	Phoenix	1990	90,042	86	%	2,356		30.42		30.79
Shaver	Houston	1978	21,926	100	%	356		16.23		16.18
Shops at Pecos Ranch	Phoenix	2009	78,767	88	%	1,736		25.04		27.38
Shops at Starwood	Dallas	2006	55,385	100	%	1,763		31.84		32.29
The Shops at Williams Trace	Houston	1985	132,991	83	%	1,871		16.95		16.88
South Richey	Houston	1980	69,928	96	%	704		10.49		10.55
Spoerlein Commons	Chicago	1987	41,455	90	%	711		19.06		19.38
Starwood Phase II	Dallas	2016	35,351	90	%	1,170		36.77		36.49
Strand	San Antonio	2000	73,920	100	%	1,684		22.78		23.33
SugarPark Plaza	Houston	1974	95,032	97	%	1,132		12.28		12.35
Sunridge	Houston	1979	49,359	83	%	597		14.56		14.17
Sunset at Pinnacle Peak	Phoenix	2000	41,530	95	%	705		17.87		18.71
Terravita Marketplace	Phoenix	1997	102,733	64	%	1,099		16.72		17.80
Town Park	Houston	1978	43,526	96	%	952		22.78		23.83
Dana Park	Phoenix	2009	323,026	78	%	5,675		22.52		21.76
Westchase	Houston	1978	50,332	77	%	584		15.06		17.12
Williams Trace Plaza	Houston	1983	129,222	90	%	1,759		15.12		15.01
Windsor Park	San Antonio	2012	196,458	97	%	1,960		10.28		10.09
Woodlake Plaza	Houston	1974	106,169	56	%	1,134		19.07		19.93
Total/Weighted Average - Whitestone Properties			4,953,571	90	%	86,937		19.50		19.95





Land Held for Development:
BLVD Phase II-B	Houston	N/A	—	—		—		—		—
Dana Park Development	Phoenix	N/A	—	—		—		—		—
Eldorado Plaza Development	Dallas	N/A	—	—		—		—		—
Fountain Hills	Phoenix	N/A	—	—		—		—		—
Market Street at DC Ranch	Phoenix	N/A	—	—		—		—		—
Total/Weighted Average - Land Held For Development (5)			—	—		—		—		—

Grand Total/Weighted Average - Whitestone Properties			4,953,571	90	%	$	86,937	$	19.50	$	19.95


Properties owned in Unconsolidated Real Estate Partnership (81.4% ownership):
9101 LBJ Freeway	Dallas	1985	125,874	49	%	$	1,125	$	18.24	$	18.36
Corporate Park Northwest	Houston	1981	174,359	73	%	1,780		13.98		13.97
Corporate Park Woodland II	Houston	2000	14,344	100	%	247		17.22		17.22
Holly Hall Industrial Park	Houston	1980	90,000	49	%	318		7.21		7.21
Holly Knight	Houston	1984	20,015	100	%	411		20.53		20.76
Interstate 10 Warehouse	Houston	1980	151,000	29	%	269		6.14		6.10
Uptown Tower	Dallas	1982	253,981	65	%	3,826		23.18		22.82
Westgate Service Center	Houston	1984	97,225	90	%	660		7.54		7.39
Total/Weighted Average - Unconsolidated Properties			926,798	61	%	$	8,636	$	15.28	$	15.16

(1) Calculated as the tenant’s actual June 30, 2021 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of June 30, 2021. Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with generally accepted accounting principles, historical results differ from the annualized amounts. Total abatements for leases in effect as of June 30, 2021 equaled approximately $227,822 for the month ended June 30, 2021.

(2) Calculated as annualized base rent divided by leased square feet as of June 30, 2021.

(3) Represents (i) the contractual base rent for leases in place as of June 30, 2021, adjusted to a straight-line basis to reflect changes in rental rates throughout the lease term and amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (ii) square footage under commenced leases of June 30, 2021.

(4) Includes (i) new acquisitions, through the earlier of attainment of 90% occupancy or 18 months of ownership, and (ii) properties that are undergoing significant development, redevelopment or re-tenanting.

(5) As of June 30, 2021, these parcels of land were held for development and, therefore, had no gross leasable area.

Whitestone REIT (WSR) 8-KReports Second Quarter 2021 Results