Whitestone REIT 8K Reports Third Quarter 2021 Results | WSR 26 Oct 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

high-household-income markets in the Sunbelt. Whitestone creates communities that thrive through

59 Community Centers

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

5.1 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 more than 15 years. The Company’s balanced and well-managed

1,509 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: 49.1 million

than 3,000 square feet) and, as of September 30, 2021, provided a 52% premium rental rate compared to our larger

Operating Partnership Units:

space tenants. The largest of our 1,509 tenants at our wholly owned properties comprised only 2.7% of our

0.8 million

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

Distribution (per share / unit)*:

Quarter: $ 0.1075

Investor Relations:

Annualized: $ 0.43

Whitestone REIT

ICR LLC.

Dividend Yield: 4.3%**

Rebecca Elliott

Brad Cohen

Vice President, Corporate Communications

203.682.8211

2600 South Gessner, Suite 500, Houston, Texas 77063

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 October 25, 2021

** Based on common share price

of $9.91 as of close of market on

October 25, 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)

	September 30, 2021		December 31, 2020

ASSETS
Real estate assets, at cost
Property	$	1,165,274	$	1,106,426
Accumulated depreciation	(183,383)		(163,712)
Total real estate assets	981,891		942,714
Investment in real estate partnership	34,408		33,979
Cash and cash equivalents	10,858		25,777
Restricted cash	106		179
Escrows and acquisition deposits	10,437		9,274
Accrued rents and accounts receivable, net of allowance for doubtful accounts (1)	21,991		23,009
Receivable due from related party	651		335
Unamortized lease commissions, legal fees and loan costs	8,356		7,686
Prepaid expenses and other assets(2)	2,371		2,049
Total assets	$	1,071,069	$	1,045,002

LIABILITIES AND EQUITY
Liabilities:
Notes payable	$	618,649	$	644,185
Accounts payable and accrued expenses(3)	44,563		50,918
Payable due to related party	530		125
Tenants' security deposits	7,718		6,916
Dividends and distributions payable	5,333		4,532
Total liabilities	676,793		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 September 30, 2021 and December 31, 2020	—		—
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 48,839,594 and 42,391,316 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	48		42
Additional paid-in capital	618,963		562,250
Accumulated deficit	(221,277)		(215,809)
Accumulated other comprehensive loss	(9,726)		(14,400)
Total Whitestone REIT shareholders' equity	388,008		332,083
Noncontrolling interest in subsidiary	6,268		6,243
Total equity	394,276		338,326
Total liabilities and equity	$	1,071,069	$	1,045,002


Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands)

	September 30, 2021		December 31, 2020
(1) Accrued rents and accounts receivable, net of allowance for doubtful accounts
Tenant receivables	$	19,898	$	22,956
Accrued rents and other recoveries	17,833		16,348
Allowance for doubtful accounts	(15,919)		(16,426)
Other receivables	179		131
Total accrued rents and accounts receivable, net of allowance for doubtful accounts	$	21,991	$	23,009

(2) Operating lease right of use assets (net)	$	316	$	592
(3) Operating lease liabilities	$	323	$	603


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

	Three Months Ended						% Change From
	September 30, 2021		June 30, 2021		September 30, 2020		June 30, 2021		September 30, 2020
Revenues
Rental(1)	$	32,069	$	30,152	$	28,868	6	%	11	%
Management, transaction, and other fees	375		466		1,032		(20)	%	(64)	%
Total revenues	32,444		30,618		29,900		6	%	9	%

Operating expenses
Depreciation and amortization	7,340		7,105		7,171		3	%	2	%
Operating and maintenance	5,789		5,444		5,029		6	%	15	%
Real estate taxes	4,589		4,160		4,670		10	%	(2)	%
General and administrative	5,672		4,730		5,860		20	%	(3)	%
Total operating expenses	23,390		21,439		22,730		9	%	3	%

Other expenses (income)
Interest expense	6,142		6,143		6,400		—	%	(4)	%
(Gain) loss on sale or disposal of assets, net	48		(224)		18		N.M. (2)		N.M.
Interest, dividend and other investment income	(31)		(23)		(71)		35	%	(56)	%
Total other expenses	6,159		5,896		6,347		4	%	(3)	%

Income before equity investment in real estate partnership and income tax	2,895		3,283		823		(12)	%	252	%

Equity in earnings of real estate partnership	151		189		196		(20)	%	(23)	%
Provision for income tax	(100)		(87)		(105)		15	%	(5)	%
Income from continuing operations	2,946		3,385		914		(13)	%	222	%

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	2,946		5,218		914		(44)	%	222	%

Less: Net income attributable to noncontrolling interests	47		92		14		(49)	%	236	%

Net income attributable to Whitestone REIT	$	2,899	$	5,126	$	900	(43)	%	222	%


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

	Three Months Ended						% Change From
	September 30, 2021		June 30, 2021		September 30, 2020		June 30, 2021		September 30, 2020
Basic Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.06	$	0.08	$	0.02	(25)	%	200	%
Income from discontinued operations attributable to Whitestone REIT	—		0.04		—		N.M.		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.06	$	0.12	$	0.02	(50)	%	200	%
Diluted Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.06	$	0.08	$	0.02	(25)	%	200	%
Income from discontinued operations attributable to Whitestone REIT	—		0.04		—		N.M.		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.06	$	0.12	$	0.02	(50)	%	200	%

Weighted average number of common shares outstanding:
Basic	46,883		43,378		42,346		8	%	11	%
Diluted	47,825		44,125		43,440		8	%	10	%

Consolidated Statements of Comprehensive Income (Loss)

Net income	$	2,946	$	5,218	$	914	(44)	%	222	%

Other comprehensive income (loss)

Unrealized gain (loss) on cash flow hedging activities	1,273		1,289		1,241		(1)	%	3	%

Comprehensive income (loss)	4,219		6,507		2,155		(35)	%	96	%

Less: Net income attributable to noncontrolling interests	47		92		14		(49)	%	236	%
Less: Comprehensive income (loss) attributable to noncontrolling interests	20		21		43		(5)	%	(53)	%

Comprehensive income (loss) attributable to Whitestone REIT	$	4,152	$	6,394	$	2,098	(35)	%	98	%



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

	Three Months Ended						% Change From
	September 30, 2021		June 30, 2021		September 30, 2020		June 30, 2021		September 30, 2020
(1) Rental
Rental revenues	$	23,177	$	22,238	$	21,808	4	%	6	%
Recoveries	8,720		8,057		8,339		8	%	5	%
Bad debt	172		(143)		(1,279)		220	%	113	%
Total rental	$	32,069	$	30,152	$	28,868	6	%	11	%

(2) Not Meaningful


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

	Nine Months Ended September 30,				% Change From September 30,
	2021		2020		2020
Revenues
Rental(1)	$	90,916	$	86,116	6	%
Management, transaction, and other fees	1,191		1,965		(39)	%
Total revenues	92,107		88,081		5	%

Operating expenses
Depreciation and amortization	21,458		21,112		2	%
Operating and maintenance	16,072		15,021		7	%
Real estate taxes	12,787		13,591		(6)	%
General and administrative	16,036		15,604		3	%
Total operating expenses	66,353		65,328		2	%

Other expenses (income)
Interest expense	18,417		19,561		(6)	%
(Gain) loss on sale or disposal of assets, net	(177)		882		N.M.
Interest, dividend and other investment income	(103)		(206)		(50)	%
Total other expenses	18,137		20,237		(10)	%

Income before equity investment in real estate partnership and income tax	7,617		2,516		203	%

Equity in earnings of real estate partnership	429		752		(43)	%
Provision for income tax	(274)		(288)		(5)	%
Income from continuing operations	7,772		2,980		161	%

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

Net income	9,605		2,980		222	%

Less: Net income attributable to noncontrolling interests	165		58		184	%

Net income attributable to Whitestone REIT	$	9,440	$	2,922	223	%


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

	Nine Months Ended September 30,				% Change From September 30,
	2021		2020		2020
Basic Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.17	$	0.07	143	%
Income from discontinued operations attributable to Whitestone REIT	0.04		—		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.21	$	0.07	200	%
Diluted Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares	$	0.17	$	0.07	143	%
Income from discontinued operations attributable to Whitestone REIT	0.04		—		N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares	$	0.21	$	0.07	200	%

Weighted average number of common shares outstanding:
Basic	44,268		42,202		5	%
Diluted	45,108		43,040		5	%

Consolidated Statements of Comprehensive Income (Loss)

Net income	$	9,605	$	2,980	222	%

Other comprehensive income (loss)

Unrealized gain (loss) on cash flow hedging activities	4,783		(10,395)		N.M.

Comprehensive income (loss)	14,388		(7,415)		N.M.

Less: Net income attributable to noncontrolling interests	165		58		184	%
Less: Comprehensive income (loss) attributable to noncontrolling interests	82		(203)		N.M.

Comprehensive income (loss) attributable to Whitestone REIT	$	14,141	$	(7,270)	N.M.



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

	Nine Months Ended September 30,				% Change From September 30,
	2021		2020		2020
(1) Rental
Rental revenues	$	67,041	$	65,591	2	%
Recoveries	24,375		24,976		(2)	%
Bad debt	(500)		(4,451)		89	%
Total rental	$	90,916	$	86,116	6	%


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

	Nine Months Ended September 30,
	2021		2020
Cash flows from operating activities:
Net income from continuing operations	$	7,772	$	2,980
Net income from discontinued operations	1,833		—
Net income	9,605		2,980
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	21,458		21,112
Amortization of deferred loan costs	822		839
(Gain) loss on sale or disposal of assets and loan forgiveness, net	(177)		882
Bad debt	500		4,451
Share-based compensation	4,066		3,980
Equity in earnings of real estate partnership	(429)		(752)
Changes in operating assets and liabilities:
Escrows and acquisition deposits	(1,163)		522
Accrued rents and accounts receivable	518		(6,123)
Receivable due from related party	(316)		(825)
Unamortized lease commissions, legal fees and loan costs	(2,531)		(958)
Prepaid expenses and other assets	1,548		2,145
Accounts payable and accrued expenses	(1,572)		131
Payable due to related party	405		538
Tenants' security deposits	802		298
Net cash provided by operating activities	31,703		29,220
Cash flows from investing activities:
Acquisitions of real estate	(53,364)		—
Additions to real estate	(6,058)		(5,808)
Proceeds from note receivable	—		922
Net cash used in investing activities	(59,422)		(4,886)
Net cash provided by investing activities of discontinued operations	1,833		—
Cash flows from financing activities:
Distributions paid to common shareholders	(14,063)		(20,771)
Distributions paid to OP unit holders	(248)		(430)
Proceeds from issuance of common shares, net of offering costs	53,335		2,241
Payments of exchange offer costs	(49)		(43)
Proceeds from notes payable	—		1,734
Net proceeds from (payments of) credit facility	(25,000)		30,000
Repayments of notes payable	(2,403)		(11,514)
Repurchase of common shares	(678)		(2,076)
Net cash provided by (used in) financing activities	10,894		(859)
Net increase (decrease) in cash, cash equivalents and restricted cash	(14,992)		23,475
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)	$	10,964	$	39,118

(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)

	Nine Months Ended September 30,
	2021		2020
Supplemental disclosure of cash flow information:
Cash paid for interest	$	17,732	$	18,790
Cash paid for taxes	$	364	$	353
Non cash investing and financing activities:
Disposal of fully depreciated real estate	$	284	$	34
Financed insurance premiums	$	1,712	$	1,431
Value of shares issued under dividend reinvestment plan	$	45	$	74
Value of common shares exchanged for OP units	$	—	$	1,138
Change in fair value of cash flow hedge	$	4,783	$	(10,395)


	September 30,
	2021		2020
Cash, cash equivalents and restricted cash
Cash and cash equivalents	$	10,858	$	38,990
Restricted cash	106		128
Total cash, cash equivalents and restricted cash	$	10,964	$	39,118


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

	Three Months Ended						Change From
	September 30, 2021		June 30, 2021		September 30, 2020		June 30, 2021		September 30, 2020
FFO (NAREIT) AND FFO CORE
Net income attributable to Whitestone REIT	$	2,899	$	5,126	$	900	(43)	%	222	%
Adjustments to reconcile to FFO:(1)
Depreciation and amortization of real estate assets	7,305		7,068		7,125		3	%	3	%
Depreciation and amortization of real estate assets of real estate partnership (pro rata)	440		409		386		8	%	14	%
(Gain) loss on sale or disposal of assets, net	48		(224)		18		121	%	167	%
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)(2)	1		(20)		24		N.M.		N.M.
Net income attributable to noncontrolling interests	47		92		14		(49)	%	236	%
FFO (NAREIT)	10,740		10,618		8,467		1	%	27	%
Adjustments to reconcile to FFO Core:
Share-based compensation expense	1,563		1,244		1,645		26	%	(5)	%
FFO Core	$	12,303	$	11,862	$	10,112	4	%	22	%

FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO	$	10,740	$	10,618	$	8,467	1	%	27	%


FFO Core	$	12,303	$	11,862	$	10,112	4	%	22	%
Denominator:
Weighted average number of total common shares - basic	46,883		43,378		42,346		8	%	11	%
Weighted average number of total noncontrolling OP units - basic	773		773		776		—	%	—	%
Weighted average number of total common shares and noncontrolling OP units - basic	47,656		44,151		43,122		8	%	11	%

Effect of dilutive securities:
Unvested restricted shares	942		747		1,094		26	%	(14)	%
Weighted average number of total common shares and noncontrolling OP units - diluted	48,598		44,898		44,216		8	%	10	%

FFO per common share and OP unit - basic	$	0.23	$	0.24	$	0.20	(4)	%	15	%
FFO per common share and OP unit - diluted	$	0.22	$	0.24	$	0.19	(8)	%	16	%

FFO Core per common share and OP unit - basic	$	0.26	$	0.27	$	0.23	(4)	%	13	%
FFO Core per common share and OP unit - diluted	$	0.25	$	0.26	$	0.23	(4)	%	9	%

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

(2) Included in equity in earnings of real estate partnership on the consolidated statements of operations and comprehensive income (loss).


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

					% Change
	Nine Months Ended September 30,				From September 30,
	2021		2020		2020
FFO (NAREIT) AND FFO CORE
Net income attributable to Whitestone REIT	$	9,440	$	2,922	223	%
Adjustments to reconcile to FFO:(1)
Depreciation and amortization of real estate assets	21,353		20,943		2	%
Depreciation and amortization of real estate assets of real estate partnership (pro rata)	1,254		1,262		(1)	%
(Gain) loss on sale or disposal of assets, net	(177)		882		N.M.
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)(2)	(19)		78		(124)	%
Net income attributable to noncontrolling interests	165		58		184	%
FFO (NAREIT)	30,183		26,145		15	%
Adjustments to reconcile to FFO Core:
Share-based compensation expense	4,275		4,167		3	%
FFO Core	$	34,458	$	30,312	14	%

FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO	$	30,183	$	26,145	15	%


FFO Core excluding amounts attributable to unvested restricted common shares	$	34,458	$	30,312	14	%
Denominator:
Weighted average number of total common shares - basic	44,268		42,202		5	%
Weighted average number of total noncontrolling OP units - basic	773		836		(8)	%
Weighted average number of total common shares and noncontrolling OP units - basic	45,041		43,038		5	%

Effect of dilutive securities:
Unvested restricted shares	840		838		—	%
Weighted average number of total common shares and noncontrolling OP units - diluted	45,881		43,876		5	%

FFO per common share and OP unit - basic	$	0.67	$	0.61	10	%
FFO per common share and OP unit - diluted	$	0.66	$	0.60	10	%

FFO Core per common share and OP unit - basic	$	0.77	$	0.70	10	%
FFO Core per common share and OP unit - diluted	$	0.75	$	0.69	9	%

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

(2) Included in equity in earnings of real estate partnership on the consolidated statements of operations and comprehensive income (loss).


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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
PROPERTY NET OPERATING INCOME
Net income attributable to Whitestone REIT	$	2,899	$	900	$	9,440	$	2,922
General and administrative expenses	5,672		5,860		16,036		15,604
Depreciation and amortization	7,340		7,171		21,458		21,112
Equity in earnings of real estate partnership	(151)		(196)		(429)		(752)
Interest expense	6,142		6,400		18,417		19,561
Interest, dividend and other investment income	(31)		(71)		(103)		(206)
Provision for income taxes	100		105		274		288
Gain on sale of property from discontinued operations	—		—		(1,833)		—
Management fee, net of related expenses	83		81		246		246
(Gain) loss on sale or disposal of assets, net	48		18		(177)		882
NOI of real estate partnership (pro rata)	1,003		990		2,846		3,250
Net income attributable to noncontrolling interests	47		14		165		58
NOI	23,152		21,272		66,340		62,965
Non-Same Store NOI (1)	(730)		—		(730)		—
NOI of real estate partnership (pro rata)	(1,003)		(990)		(2,846)		(3,250)
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)	21,419		20,282		62,764		59,715
Same Store straight-line rent adjustments	(507)		(61)		(1,201)		558
Same Store amortization of above/below market rents	(177)		(149)		(618)		(584)
Same Store lease termination fees	(79)		(727)		(306)		(1,028)
Same Store NOI (2)	$	20,656	$	19,345	$	60,639	$	58,661

(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 September 30, 2021 to the three months ended September 30, 2020, Non-Same Store includes properties acquired between July 1, 2020 and September 30, 2021 and properties sold between July 1, 2020 and September 30, 2021, but not included in discontinued operations. For purposes of comparing the nine months ended September 30, 2021 to the nine months ended September 30, 2020, Non-Same Store includes properties acquired between January 1, 2020 and September 30, 2021 and properties sold between January 1, 2020 and September 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 September 30, 2021 to the three months ended September 30, 2020, Same Store includes properties owned before July 1, 2020 and not sold before September 30, 2021. For purposes of comparing the nine months ended September 30, 2021 to the nine months ended September 30, 2020, Same Store includes properties owned before January 1, 2020 and not sold before September 30, 2021.


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

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

Net income attributable to Whitestone REIT	$	2,899	$	5,126	$	900	(43)	%	222	%
Depreciation and amortization	7,340		7,105		7,171		3	%	2	%
Interest expense	6,142		6,143		6,400		—	%	(4)	%
Provision for income taxes	100		87		105		15	%	(5)	%
Net income attributable to noncontrolling interests	47		92		14		(49)	%	236	%
Equity in earnings of real estate partnership	(151)		(189)		(196)		(20)	%	(23)	%
EBITDAre adjustments for real estate partnership	807		766		804		5	%	—	%
Gain on sale of property from discontinued operations	—		(1,833)		—		N.M.		N.M.
(Gain) loss on sale or disposal of assets, net	48		(224)		18		121	%	167	%
EBITDAre	17,232		17,073		15,216		1	%	13	%
Management fee, net of related expenses	83		83		81		—	%	2	%
Share-based compensation expense	1,563		1,244		1,645		26	%	(5)	%
EBITDAre-Adjusted	$	18,878	$	18,400	$	16,942	3	%	11	%


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

Net income attributable to Whitestone REIT	$	9,440	$	2,922	223	%
Depreciation and amortization	21,458		21,112		2	%
Interest expense	18,417		19,561		(6)	%
Provision for income taxes	274		288		(5)	%
Net income attributable to noncontrolling interests	165		58		184	%
Equity in earnings of real estate partnership	(429)		(752)		(43)	%
EBITDAre adjustments for real estate partnership	2,258		2,690		(16)	%
Gain on sale of property from discontinued operations	(1,833)		—		N.M.
(Gain) loss on sale or disposal of assets, net	(177)		882		N.M.
EBITDAre	49,573		46,761		6	%
Management fee, net of related expenses	246		246		—	%
Share-based compensation expense	4,275		4,167		3	%
EBITDAre-Adjusted	$	54,094	$	51,174	6	%


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

	Three Months Ended September 30,				Increase		% Increase
	2021		2020		(Decrease)		(Decrease)
Same Store (53 properties excluding development land)
Property revenues
Rental	$	31,056	$	28,868	$	2,188	8	%
Management, transaction and other fees	231		888		(657)		(74)	%
Total property revenues	31,287		29,756		1,531		5	%

Property expenses
Property operation and maintenance	5,460		4,804		656		14	%
Real estate taxes	4,408		4,670		(262)		(6)	%
Total property expenses	9,868		9,474		394		4	%

Total property revenues less total property expenses	21,419		20,282		1,137		6	%

Same Store straight-line rent adjustments	(507)		(61)		(446)		(731)	%
Same Store amortization of above/below market rents	(177)		(149)		(28)		(19)	%
Same Store lease termination fees	(79)		(727)		648		89	%

Same Store NOI (1)	$	20,656	$	19,345	$	1,311	7	%

(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)

	Nine Months Ended September 30,				Increase		% Increase
	2021		2020		(Decrease)		(Decrease)
Same Store (53 properties, excluding development land)
Property revenues
Rental	$	89,903	$	86,116	$	3,787	4	%
Management, transaction and other fees	764		1,510		(746)		(49)	%
Total property revenues	90,667		87,626		3,041		3	%

Property expenses
Property operation and maintenance	15,297		14,320		977		7	%
Real estate taxes	12,606		13,591		(985)		(7)	%
Total property expenses	27,903		27,911		(8)		—	%

Total property revenues less total property expenses	62,764		59,715		3,049		5	%

Same Store straight-line rent adjustments	(1,201)		558		(1,759)		(315)	%
Same Store amortization of above/below market rents	(618)		(584)		(34)		(6)	%
Same Store lease termination fees	(306)		(1,028)		722		70	%

Same Store NOI(1)	$	60,639	$	58,661	$	1,978	3	%

(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				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Other Financial Information:

Tenant improvements (1) (2)	$	476	$	1,279	$	1,444	$	2,264
Leasing commissions (1) (2)	$	610	$	221	$	2,345	$	957
Maintenance capital (1)	$	2,017	$	933	$	4,096	$	2,843
Scheduled debt principal payments (1)	$	441	$	481	$	1,331	$	1,441
Straight-line rent income (1)	$	541	$	51	$	1,235	$	(674)
Market rent amortization income from acquired leases (1)	$	161	$	147	$	603	$	586
Non-cash share-based compensation expense (1)	$	1,563	$	1,645	$	4,275	$	4,167
Non-real estate depreciation and amortization (1)	$	35	$	45	$	105	$	168
Amortization of loan fees (1)	$	291	$	282	$	839	$	851
Undepreciated value of unencumbered properties	$	883,260	$	824,628	$	883,260	$	824,628
Number of unencumbered properties	52		51		52		51
Full time employees	91		85		91		85

(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 September 30, 2021
MARKET CAPITALIZATION:	Percent of Total Equity		Total Market Capitalization		Percent of Total Market Capitalization
Equity Capitalization:
Common shares outstanding	98.4	%	48,840
Operating partnership units outstanding	1.6	%	773
Total	100.0	%	49,613

Market price of common shares as of
September 30, 2021			$	9.78

Total equity capitalization			$	485,215	44	%

Debt Capitalization:
Outstanding debt			$	619,472
Less: Cash and cash equivalents			(10,858)
Total debt capitalization			608,614		56	%

Total Market Capitalization as of
September 30, 2021			$	1,093,829	100	%


SELECTED RATIOS:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
INTEREST COVERAGE RATIO	2021		2020		2021		2020
EBITDAre/Interest Expense
EBITDAre (1)	$	17,232	$	15,216	$	49,573	$	46,761

Interest expense	6,142		6,400		18,417		19,561
Pro rata share of interest expense from real estate partnership	160		167		484		490
Less: amortization of loan fees, including pro rata share from real estate partnership	(280)		(282)		(839)		(851)
Interest expense, excluding amortization of loan fees	6,022		6,285		18,062		19,200

Ratio of EBITDAre to interest expense	2.9		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	September 30,
	2021			2020
Debt/Undepreciated Book Value
Outstanding debt	$	619,009		$	667,277
Less: Cash	(10,858)			(38,990)
Add: Proportional share of net debt of real estate partnership	8,479			8,766
Outstanding debt after cash	$	616,630		$	637,053

Undepreciated real estate assets	$	1,165,274		$	1,104,963
Add: Proportional share of real estate from unconsolidated partnership	46,124			45,787
Undepreciated real estate assets	$	1,211,398		$	1,150,750
Ratio of debt to real estate assets	51		%	55		%


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Debt/EBITDAre Ratio
Outstanding debt	$	619,009	$	667,277	$	619,009	$	667,277
Less: Cash	(10,858)		(38,990)		(10,858)		(38,990)
Add: Proportional share of net debt of unconsolidated real estate partnership	8,479		8,766		8,479		8,766
Total Net Debt	$	616,630	$	637,053	$	616,630	$	637,053

EBITDAre	$	17,232	$	15,216	$	49,573	$	46,761
Management fee, net of related expenses	83		81		246		246
Share based compensation	1,563		1,645		4,275		4,167
EBITDAre-Adjusted	$	18,878	$	16,942	$	54,094	$	51,174

Effect of partial period acquisitions and dispositions	60		—		1,614		—

Pro forma EBITDAre-Adjusted	18,938		16,942		55,708		51,174

Pro forma annualized EBITDAre-Adjusted	$	75,752	$	67,768	$	74,277	$	68,232

Ratio of debt to pro forma EBITDAre-Adjusted	8.1		9.4		8.3		9.3


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

Description	September 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	18,442		18,687
$20.2 million 4.28% Note, due June 6, 2023	17,914		18,222
$14.0 million 4.34% Note, due September 11, 2024	13,044		13,236
$14.3 million 4.34% Note, due September 11, 2024	13,834		14,014
$15.1 million 4.99% Note, due January 6, 2024	13,973		14,165
$2.6 million 5.46% Note, due October 1, 2023	2,302		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	463		—
Floating rate notes
Unsecured line of credit, LIBOR plus 1.40% to 1.90%, due January 31, 2023	94,500		119,500
Total notes payable principal	619,472		645,163
Less deferred financing costs, net of accumulated amortization	(823)		(978)
Total notes payable	$	618,649	$	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 SEPTEMBER 30, 2021
(in thousands)

Year	Amount Due
2021 (remaining)	$	1,138
2022	101,683
2023	122,363
2024	228,574
2025	17,143

Thereafter	148,571
Total	$	619,472


Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS

	Gross Leasable Area as of	Occupancy % as of
	September 30,	September 30,		March 31		December 31,		September 30,
Community Centered Properties®	2021	2021		2021		2020		2020
Whitestone	5,116,220	90	%	89	%	88	%	89	%

Unconsolidated real estate partnership	926,798	59	%	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	2.7	%	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		2.4	%	9/3/2014	2035
Frost Bank	Houston	1,988		2.1	%	7/1/2014	2024
Newmark Real Estate of Houston LLC	Houston	1,050		1.1	%	10/1/2015	2026
Bashas' Inc. (3)	Phoenix	1,010		1.1	%	10/9/2004 and 4/1/2009	2024 and 2029
Verizon Wireless (4)	Houston and Phoenix	946		1.0	%	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		1.0	%	11/14/1982, 11/2/1987, 8/24/1996 and 11/3/1996	2022, 2027, 2049 and 2056
Alamo Drafthouse Cinema	Austin	690		0.7	%	2/1/2012	2031
Dollar Tree (6)	Houston and Phoenix	641		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		0.6	%	10/24/1996 and 4/16/1999	2022 and 2023
Kroger Co.	Dallas	483		0.5	%	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		0.4	%	8/29/2018	2029
Whataburger University	San Antonio	374		0.4	%	2/1/2018	2023
		$	14,794	15.7	%

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

(2) As of September 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 1.1% 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 0.3% 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 September 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 0.8% of our total annualized base rental revenue.

(4) As of September 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 0.1% 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 0.8% 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 $6,000, which represents less than 0.1% of our total annualized base rental revenue.

(5) As of September 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 September 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 $175,000, 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 September 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 0.1% 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 September 30, 2021

	% of Leased SF	% of ABR
Restaurants & Food Service	18%	24%
Grocery	14%	9%
Financial Services	6%	9%
Salons	7%	8%
Medical & Dental	7%	7%
Non Retail	4%	6%
General Retail	7%	5%
Home Décor And Improvement	7%	5%
Apparel	4%	4%
Education	4%	4%
Fitness	5%	4%
Local Services	2%	2%
Off-Price	4%	2%
Entertainment	2%	2%
Pet Supply & Services	3%	2%
Wireless	1%	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				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
RENEWALS
Number of Leases	65		46		170		145
Total Square Feet (1)	148,574		172,174		438,357		477,341
Average Square Feet	2,286		3,743		2,579		3,292
Total Lease Value	$	20,310,000	$	9,679,000	$	48,776,000	$	35,358,000
NEW LEASES
Number of Leases	38		32		119		77
Total Square Feet (1)	90,143		85,196		282,207		181,413
Average Square Feet	2,372		2,662		2,371		2,356
Total Lease Value	$	12,735,000	$	9,861,000	$	44,943,000	$	21,131,000
TOTAL LEASES
Number of Leases	103		78		289		222
Total Square Feet (1)	238,717		257,370		720,564		658,754
Average Square Feet	2,318		3,300		2,493		2,967
Total Lease Value	$	33,045,000	$	19,540,000	$	93,719,000	$	56,489,000

(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:
3rd Quarter 2021	75	$	21,174,759	159,787	4.8	$	843,333	$	5.28	$	24.34	$	23.62	$	115,317	3.0	%	$	468,826	13.1	%
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	%
Total - 12 months	291	$	82,248,343	826,021	4.7	$	4,503,013	$	5.45	$	19.03	$	19.13	$	(87,653)	(0.5)	%	$	1,279,441	8.5	%

Comparable New Leases:
3rd Quarter 2021	13	$	2,201,043	18,848	4.2	$	101,472	$	5.38	$	23.72	$	25.49	$	(33,336)	(6.9)	%	$	23,927	5.4	%
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)	%
Total - 12 months	78	$	24,004,538	145,123	5.8	$	2,288,483	$	15.77	$	24.10	$	26.16	$	(298,936)	(7.9)	%	$	85,946	2.4	%

Comparable Renewal Leases:
3rd Quarter 2021	62	$	18,973,716	140,939	4.9	$	741,861	$	5.26	$	24.43	$	23.37	$	148,653	4.5	%	$	444,899	14.1	%
1st 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	%
4th Quarter 2020	46	10,573,855		103,931	4.7	199,124		1.92		21.17		21.29		(12,876)		(0.6)	%	198,173		9.6	%
3rd 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	%
Total - 12 months	213	$	58,243,805	680,898	4.5	$	2,214,530	$	3.25	$	17.95	$	17.64	$	211,283	1.8	%	$	1,193,495	10.5	%


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
3rd Quarter 2021	103	$	33,044,924	238,717	5.0	$	2,040,458	$	8.55	$	24.44
2nd Quarter 2021	92	29,849,313		256,622	5.7	2,870,379		11.19		21.44
1st Quarter 2021	94	30,824,156		225,225	4.0	2,034,341		9.03		13.69
4th Quarter 2020	84	19,013,353		322,875	4.0	502,216		1.56		16.85
Total - 12 months	373	$	112,731,746	1,043,439	4.9	$	7,447,394	$	7.14	$	19.72

New
3rd Quarter 2021	38	$	12,734,682	90,143	5.2	$	1,210,123	$	13.42	$	24.85
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
Total - 12 months	147	$	51,420,261	331,871	5.8	$	5,097,084	$	15.36	$	23.23

Renewal
3rd Quarter 2021	65	$	20,310,242	148,574	5.0	$	830,335	$	5.59	$	24.19
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
Total - 12 months	226	$	61,311,485	711,568	4.5	$	2,350,310	$	3.30	$	18.07

(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 September 30, 2021
Year	Number of Leases	Square Feet	Percent of Gross Leasable Area		Amount (in thousands)		Percent of Total		Per Square Foot
2021	260	320,883	6.3	%	$	5,106	5.5	%	$	15.91
2022	288	648,636	12.7	%	12,700		13.6	%	19.58
2023	218	660,372	12.9	%	12,763		13.7	%	19.33
2024	216	756,691	14.8	%	16,093		17.2	%	21.27
2025	194	760,836	14.9	%	14,120		15.1	%	18.56
2026	145	533,162	10.4	%	10,734		11.5	%	20.13
2027	56	222,024	4.3	%	4,961		5.3	%	22.34
2028	38	172,559	3.4	%	3,952		4.2	%	22.90
2029	21	160,906	3.1	%	3,042		3.3	%	18.91
2030	24	73,243	1.4	%	2,286		2.4	%	31.21
Total	1,460	4,309,312	84.2	%	$	85,757	91.8	%	$	19.90

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

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


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

Community Name	Location	Year Built/ Renovated	Gross Leasable Square Feet	Percent Occupied at 09/30/2021		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	81	%	$	648	$	11.01	$	13.42
Anthem Marketplace	Phoenix	2000	113,293	88	%	1,519		15.24		14.99
Anthem Marketplace Phase II	Phoenix	2019	6,853	100	%	235		34.23		34.00
Bissonnet/Beltway	Houston	1978	29,205	93	%	412		15.17		14.69
BLVD Place	Houston	2014	216,944	100	%	9,291		42.83		43.62
The Citadel	Phoenix	2013	28,547	99	%	508		17.97		17.97
City View Village	San Antonio	2005	17,870	100	%	556		31.11		30.37
Davenport Village	Austin	1999	128,934	95	%	3,130		25.55		25.91
Desert Canyon	Phoenix	2000	62,533	88	%	772		14.03		14.92
Eldorado Plaza	Dallas	2004	219,287	95	%	3,237		15.54		15.95
Fountain Hills	Phoenix	2009	111,289	88	%	1,602		16.36		16.41
Fountain Square	Phoenix	1986	118,209	90	%	1,859		17.47		17.62
Fulton Ranch Towne Center	Phoenix	2005	120,575	96	%	2,033		17.56		17.88
Gilbert Tuscany Village	Phoenix	2009	49,415	89	%	925		21.03		20.44
Gilbert Tuscany Village Hard Corner	Phoenix	2009	14,603	100	%	124		8.49		8.90
Heritage	Dallas	2006	70,431	100	%	1,657		23.53		23.08
HQ Village	Dallas	2009	89,134	83	%	2,409		32.56		34.79
Keller Place	Dallas	2001	93,541	93	%	970		11.15		11.36
Kempwood Plaza	Houston	1974	91,302	88	%	1,205		15.00		15.20
La Mirada	Phoenix	1997	147,209	89	%	3,170		24.20		23.57
Las Colinas	Dallas	2000	104,919	80	%	2,279		27.15		26.04
Lion Square	Houston	2014	117,592	88	%	1,618		15.64		15.60
The MarketPlace at Central	Phoenix	2012	111,130	98	%	1,096		10.06		9.63
Market Street at DC Ranch	Phoenix	2003	244,888	96	%	5,133		21.83		21.14
Mercado at Scottsdale Ranch	Phoenix	1987	118,730	86	%	1,677		16.42		16.06
Paradise Plaza	Phoenix	1983	125,898	90	%	1,578		13.93		13.04
Parkside Village North	Austin	2005	27,045	100	%	876		32.39		38.12
Parkside Village South	Austin	2012	90,101	100	%	2,210		24.53		26.99
Pima Norte	Phoenix	2007	35,110	62	%	356		16.35		17.92
Pinnacle of Scottsdale	Phoenix	1991	113,108	98	%	2,497		22.53		22.20
Pinnacle Phase II	Phoenix	2017	27,063	100	%	838		30.96		29.49
The Promenade at Fulton Ranch	Phoenix	2007	98,792	80	%	1,096		13.87		13.40
Providence	Houston	1980	90,327	92	%	1,062		12.78		13.22
Quinlan Crossing	Austin	2012	109,892	97	%	2,556		23.98		23.89
Seville	Phoenix	1990	90,042	88	%	2,581		32.57		32.41
Shaver	Houston	1978	21,926	94	%	337		16.35		16.35
Shops at Pecos Ranch	Phoenix	2009	78,767	88	%	1,782		25.71		27.19
Shops at Starwood	Dallas	2006	55,385	100	%	1,773		32.01		31.56
The Shops at Williams Trace	Houston	1985	132,991	84	%	1,938		17.35		18.42
South Richey	Houston	1980	69,928	96	%	704		10.49		10.55
Spoerlein Commons	Chicago	1987	41,455	88	%	700		19.19		20.42
Starwood Phase II	Dallas	2016	35,351	90	%	1,174		36.90		38.50
Strand	San Antonio	2000	73,920	100	%	1,753		23.71		26.27
SugarPark Plaza	Houston	1974	95,032	97	%	1,135		12.31		12.35
Sunridge	Houston	1979	49,359	90	%	668		15.04		15.26
Sunset at Pinnacle Peak	Phoenix	2000	41,530	97	%	768		19.06		19.76
Terravita Marketplace	Phoenix	1997	102,733	75	%	1,165		15.12		15.30
Town Park	Houston	1978	43,526	96	%	1,009		24.15		23.96
Dana Park	Phoenix	2009	323,026	79	%	5,730		22.45		22.23
Westchase	Houston	1978	50,332	77	%	631		16.28		16.26
Williams Trace Plaza	Houston	1983	129,222	90	%	1,812		15.58		14.60
Windsor Park	San Antonio	2012	196,458	97	%	1,960		10.29		10.10
Woodlake Plaza	Houston	1974	106,169	67	%	1,194		16.79		17.32
Total/Weighted Average - Whitestone Properties			4,953,571	90	%	89,948		20.18		20.35





Development Properties:
Lakeside Market	Dallas	2000	162,649	80	%	3,143		$	24.15	24.89
Total/Weighted Average - Development Properties

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			5,116,220	90	%	$	93,091	$	20.22	$	20.41


Properties owned in Unconsolidated Real Estate Partnership (81.4% ownership):
9101 LBJ Freeway	Dallas	1985	125,874	48	%	$	1,112	$	18.40	$	18.37
Corporate Park Northwest	Houston	1981	174,359	74	%	1,825		14.14		13.92
Corporate Park Woodland II	Houston	2000	14,344	100	%	248		17.29		17.34
Holly Hall Industrial Park	Houston	1980	90,000	57	%	373		7.27		7.27
Holly Knight	Houston	1984	20,015	100	%	431		21.53		21.53
Interstate 10 Warehouse	Houston	1980	151,000	12	%	120		6.62		6.51
Uptown Tower	Dallas	1982	253,981	64	%	4,176		25.69		25.25
Westgate Service Center	Houston	1984	97,225	90	%	731		8.35		8.16
Total/Weighted Average - Unconsolidated Properties			926,798	59	%	$	9,016	$	16.49	$	16.27

(1) Calculated as the tenant’s actual September 30, 2021 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of September 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 September 30, 2021 equaled approximately $297,326 for the month ended September 30, 2021.

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

(3) Represents (i) the contractual base rent for leases in place as of September 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 September 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 September 30, 2021, these parcels of land were held for development and, therefore, had no gross leasable area.

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