WSR - Earnings call transcript Q3 2020

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Operator

Good day, and welcome to the Whitestone REIT's Third Quarter 2020 Earnings Conference Call. Today's conference is being recorded and at this time, I would like to turn the conference over to Kevin Reed, Director of Investor Relations. Please go ahead.

Kevin Reed

Thank you, operator. Good morning, and thank you for joining Whitestone REIT's third quarter 2020 earnings conference call.

call and Mastandrea, Financial Dave today's Chief Chairman Officer. on Officer; Executive Holeman, me are our Jim and Joining our Chief not Please this deemed statements some statements. historical are forward-looking note be and made may that call during

refer that recent accurate earnings not Form webcast financial of with and Some deemed that and in update third and to other risks, The time-sensitive for differ release factors. from a uncertainties as earnings our forward-looking call most of only company it website, Relations due SEC, statements period supplemental release including a October Please filings this for may maybe note call may the those filed and results and Acknowledging historical undertakes this been forward-looking statements information press that Actual to this this these the time, XX, and have be is made materially today's the call to with www.whitestonereit.com, during XX-Q of Investor and are quarter detailed date, section. may includes company's statements. a press fact factors. of XX-K Form be Whitestone's discussion the obligation operating the available XXXX. package on no important Whitestone's information. are to SEC also data number

call financial of Mastandrea. that, position release are performance measures measures me believe press GAAP measures. allow we data and package which company. investors the we Jim the financial understand let of presentation, the non-GAAP this better the certain With non-GAAP supplemental pass During financial reference may Included to to and to reconciliations earnings the in

James Mastandrea

and call. for third quarter Kevin, our on joining you, us you investor thank Thank

to doing economic sustained financial and pandemic. strong continue pleased the as downturn your all times. well with healthy that COVID-XX pray we are and families have you the and results We by I operating you, these am navigate and your share unusual our businesses remain most hope of caused to that

sector areas of leading Officer a financial our in Our recovered drivers to business-friendly with and growing design that a while consumer results has Financial in business operating Holeman, business located more neighborhoods, to these Dave quickly at model mix provide the and results. produced attribute centers consumer psychographics detailed the owning in fastest look household operating customer MSAs high demographics income and drives our shopping We performance. Chief experiences. doing so, states, properties driven will visits based on in and tenant a

from and retailers. real lead real Our management and capital adds to in our income and in shareholder today, to color from some With Whitestone's we as background, progress go our soft -- drive developing that which to coming quarters funds estate physically grow to are we a blocks like to XXXX. and through and February values, this success intrinsic footprint provide expand we the to hard to our redeveloping focus balancing drive other rents strategic estate building Whitestone to we goals operating revenues, and owners plan value differentiates as operations. traditional net goods to and of customer structure where key We're value long-term I where enhancing values long-term months announced towards the would

greater in XXXX. and our dividend trending recently first and leasing the of our announcing Since the the the quarter, in upward rooted results in on deeply team Whitestone's quarter third business had solid collections, our end cash increasing rental us leading estate payout prepared of are debt and expectations considerable we of improving execution for and is of the paying hand, next uncertainty, the have are Rental economic with shopping our where injected sector provided year. on culture. center strengthening collections industry level for First, flexibility. ratio, line the balance the growth first throughout of These These which our our particular, today? spreads, we to have we actions Since in financial are and COVID-XX, model real pandemic collections down cash most XX% half relative sheet. focused onset the of

these way caused while on that I results us our mentioned net Overall, XX% of in refocus from and of years. extracting of $X.XX our Dave quarter. judicious XX% from up acquisitions X% I approached funds resulted that quarter. pleased second from and strong with the quarter prior a further his second occupancy revenue second X% in produced leasing Our the solid $XX.X targeting quarter, quarter, team are XX.X% to collections navigating operation the million at that core scaling were quarter, on increase that and management the the operating up and crisis to the in detail business Cash embedded per allocation comparisons am of stabilizing share, the disciplined Coronavirus, the the greater follow that achieved X% positive the $X.XX quarter the the up capital for in third second mine, at economic quickly $XX enabling spreads quarter our properties, to were into has million, XX% results, for for including platform. earlier operating our quarter, property which accretive in or very income up is value and go end by from positive intrinsic or remarks and the

over the plan we will intend the allocation months. maintain capital doing past. we forward, as Second, on coming going disciplined our We in to have philosophy

from growth of record track plan. XXXX our to speaks to XXXX Our

and by at markets plan our our to within markets through redevelopment and development Dallas-Fort and grow existing grow in opportunities targeted Worth, Antonio Houston, Phoenix strategically and beyond. long-term chosen Austin, portfolio externally is acquisitions San our Our making

well those do past. worked We a us Whitestone professionals of the blocks properties manage has success differentiated, and of who trained that provided in tenants the a cannot e-commerce that continue somewhat leads to So, of services specialty resistant as neighborhood specializing the acquired meet needs mix central tenants building for team highly the easily all. and at diversified right choice ultimately to online, in markets of view a in tenants by be is of Whitestone need for portfolio crafting entrepreneurial mix key REIT a building who if great consumers’ we with what the

As a their open provide centers experiences cater community of an result, extension adjacent neighborhood all our as air to lifestyle. that

retail our us business industry overall years, to While, over real base are that in despite we an has grow significant contrarian approach the the allowed business, model asset differentiated recognize and estate we challenges. profitably

intend steady approach. And in this we XXXX disciplined and disciplined. to been continue Our growth since our IPO has

to leverage our continue and we progress our that set of Finally, G&A goals make long-term towards improving we scaling in XXXX. debt cost

off our book million of cash, our estate to ratio paid debt net we debt-to-gross quarter, third year year lowering assets the ago real estate of from debt real and a from from $X.X estate value million improving ago. by During XX% $XX a real XX%

making processes to are Each improvements on reduced beginning headcount further our has and the of also since scaling or year to working been of G&A. and smarter automation, cost our in teams to XX, all XX% the We progress of from harder. XXX reduction

are same Holeman, our that to Dave? year. approximately XXXX like time G&A turn Financial would now or the call I With Chief Officer. in background, Dave $XXX,XXX last total to costs Our X% for lower the over

David Holeman

Jim. Thanks,

this associates to continue given of difficult like take First, best produce results opportunity to who times. to very the I thank our all possible, would

the to We to that withstand feel we dedicated we team day thrive and the highly positioned strongly connections that have every that are a and future. into communities current works local create thrive. And headwinds

quarter. Coronavirus a during has our tenant Given portfolio the performed the such at from the a of and having represents the associated accrued accounting cash tenants The on a line the on related X.X% the a XX,XXX severe basis. at just conversion rent feet amount ending and a of that on good, from the to had portfolio cash square $XX.XX is only point the straight quarter by significant up X.X% businesses rate for straight we held our decrease Also, increase quarter, leased caused decrease a straight well. by basis the X.X% occupancy line base XX.X% handful square annualized down economic or Despite quite rents. second impacted, a closed pressures line basis our cash of quarter straight $XX.XX per of end foot largely of and to basis line was tenants year This well, a and write-off the ago. basis XX

XX% of and and spreads the activity quarter Our XXXX from we quarter XXXX. with GAAP and are third the X.X% blended a quarter. leasing and for square pleased XX% from of foot of up leases on renewal on the leasing was new positive XX% cash basis second And

includes rents. This for mentioned, monthly. X% deferral of entered collected We've agreements triple Jim base charges and rent we rents. the billed net also our of quarter, rent our third quarter into XX% on As

deferral negotiated allow of exclusives our the further As and agreements, loosening have into restrictions sales, such as co-tenancy of online that portal, development guarantees. or suspension tenant reporting further part of of payment stronger entry beneficial we requirements, items

for for by per charge prior and by While or same in Funds in billion quarter the line debt decreased to are operations per recorded share $X.XX progressing, charge X.X%. year, $X.X line our the of incremental $XX.X write-off These impact the which $XXX,XXX, the financial quarter. per or the share. the income receivables $X.XX quarter of the operating revenue was of bad million decreases how and has to impact resulted by debt to we results. quarter to continued compared net the $X.XX $XXX,XXX This for our in to core our in and things the due are encouraged in primarily from bad straight of are year of the $XX.X million expense terms third a or straight the pandemic, expense pandemic store business third share, was same prior

quarter, deferred beginning the XX%. this Let million accrued our the debt the reserve in consists receivables reserve and for $XX.X total XXXX of me the have related related At Since receivables, the $X.X we year, and $X.X million. increase pandemic add accrued of deferred a rents increased receivable. receivable rents $X.X balance some accounts balance or $XX.X Against $X.X build end collectability million of in billed and our we bad million, to million the of and million. balances. of of other $XX.X and have uncollectible million $X.X receivable recorded receivables, an a This and $XX.X receivables of receivable deferred color $X.X of million million have our of increase increased analysis build had million on

cash a from light pressures tenants those to that has determines write-off decreased been company accrual that and in the accounting, square X.X% of basis tenants reevaluated portfolio million. cash represent we accordance rent and line that cash Our basis. accrued collection second the tenant’s $X.X third rents other tenant has In by result of accounting. the basis our is the tenants for and as probable, of the bad in largely financial annualized converted recognition receivables of accounting In X.X% our our XX the of accepted change by principles, receivables tenants, $X.X our the not result XX reserve generally leasable payments and to COVID-XX must tenants to have rent, placing million, quarters company straight all increased accrued have lease of These on on of many footage. with a if our switched the basis future revenue base debt

written-off cash to the $X.X from rents all extent possible. conversion this accounting, the to basis the to of have company million collect of intends but result line for its accrued rents we unpaid tenants a year, straight As

quarter, basis up of paid in on XX% cash the the from accounting third contractual rents tenants second Our XX% quarter. in

that XX have found of our We Page of the the additional provided details on supplemental. collection can be

including balance have increase March headcount. have March, in implemented in $XX approximately since cash, measures million Turning various Since to cash, to representing Today, our we XX. sheet. reductions conserve X% we a further

XXXX. and no paid we off debt have debt maturities in the quarter, in third of $X.X Additionally, billion real estate

million Currently, XXXX. reduced the real estate have borrowing net our have since $XXX by We facility. of million availability million $XX third of quarter undrawn total debt capacity, and we credit of our under $XX

We debt our are future. in covenants, full in compliance expect to and remain with so the

we coming of markets. of net trend persists COVID-XX particular gateway Whitestone's that heavy in businesses from regulation one as class geography benefiting ahead, is seeing best is out migration Looking the are

move attract of thriving. to like businesses, as to recent to this California, give is high small business continue that environment our Dallas Arizona. Whitestone's of restaurant large proved added properties who these property tax, Examples Recently, its announcement Schwab's markets needed in further and and to are migration high Charles by headquarters seeing escape Our also. model Francisco. San our markets, a our the regulation of evidenced successful Mercato both of its we the assurance us from resilience

demand consumers Parking in in active. lots markets We homes up have to and Whitestone demand are pent up force. quickly and capture is their so. stores as becoming our intends more positioned and returning well are filling, seen pent are and do and leaving to this restaurants

worked infrastructure. feature scale collaboration, reap shareholders economic markets improved a growth and deliver markets significant data us with our to provide communication, now has through providing please We allow in we actionable And strategic that and and Operator, population efficiently our for the ideas, is better from in and perform states our will team the to more forward together the to effective Our operate highly expect lead further exchange as these high greater growth desirable we ongoing of continuing And questions. country plan. this will new more processes and on benefits We robust take open of recovery updates more systems and progress. pandemic. the look Whitestone and crisis. many lines. that, most to

Operator

ahead. take Thank first from go Diana our Instructions] We Maxim Group. you. with Michael will [Operator Please

Michael Diana

Dave, Jim, can hear you me?

James Mastandrea

Hey, you hear Michael. Can me?

Michael Diana

Yep.

Okay.

James Mastandrea

you. Thank Okay.

Michael Diana

more new to us looked leases. leases, your you noticed I what strategy. about more little on know from little which tracking leasing, Could tenants very a I your I a So, I’d mean, -- give general strong. your you're leases? sort details new had like new Where be coming to XX of those you were me? ask first

James Mastandrea

Sure. Yeah.

David Holeman

Hey Michael, rebound your question. the Dave, we're Yeah, this for is pleased activity. kind our with thanks of very leasing in

an from coming there in perspective, the seen in we've first activity pre had levels. to pandemic at kind of third activity quarter seen spreads mentioned, as we quarter we've goods As well. We've the back

We've our doing you, look of of the Dallas to think continue we seen see And level, seen a in markets, equally is markets, our to see base continue get activity kind operators for perspective, from pretty demand tenets. tenant opportunities. I I we've tenant think market among resilience continue we well. then exponential service on a from will the tell restaurants lot I very to

recovering they nicely. So, mix. across think our our unique to appear I I and seeing tenant in all we're differentiated markets, And be demand think very

Michael Diana

Texas, was came in you they Right. to? that mentioned one And restaurant from California, in Arizona or that

David Holeman

places California, over in see my remarks that's seeing actually they businesses their are of from seen with was that. seen Yeah, of And looking I coastal years we're the for amount then significant to Arizona. where our the migration Obviously, mentioned as some proximity Texas people the one and the little we've Phoenix well the continue market we've into a where run a just cities easier. can fair to

Michael Diana

Right.

your the is, debt then second is And bad about to uncollectible Okay. area talk or revenue. want I

on that What's optimistic mean, very their I is things going how Or for up. go you bottoms talk going through be when tenants As process? tenants, challenging? you did I outlook? they’re What they all pretty your you the are are what's you they to reviewed to remain said, on? mean about think long that

David Holeman

and start as give Jim will I’ll some to try well. comments

I think now. fluid process and it's a granular right obviously

levels. as think markets by are restaurants of to we we're And kind as are tenants. optimism our of I in districts in from their our think school demand our a virtual. people of activity tenants in in of with seeing seeing lot that pent and open school in kind are and seeing in-force But are bit coming back of we're little Most that Schools I some surprised offering areas. person our markets well We're seeing those a up all some other markets. demand.

think forms We this have their And had have take a to have they'll forward. portfolio in I done Restaurant that. have lot not revenue, pandemic. through historically of operators tenants that develop going curbside new that created this continue out been created restaurants and we've that have that as of or

James Mastandrea

that Yeah up both the have But leasing them that being to the and we the quickly, to and and based are things Michael, lock ready in equipment there is reopen very of with quickly. able Texas, tables second very seeing some again good and Arizona and restaurants people out. add all we're I’ll get apparently fortune restaurants generation all to

seeing we're So, that in space quickly. happen real that

The second retail all different thing a these we're closed is XXX called small have sections in those is we And offices. of be to offices finding we're seeing This is product that, XXX that we Cubexec, square our might feet. leasing a have up. which are offices,

studio lease features. and And a in with XX% new [ph] took person in a equity a it's did we position teaches pilatean that. also who We a

franchise So Pilates, Texas strong and that maybe we and with the areas. that the demand rights what is in Arizona particularly to have even seeing multiple who a properties. resurgent open we're a have for called And on exercise

Michael Diana

Okay.

pent demand see debt to optimism away quarter? So given or? some that and fading there, your wouldn't Do you constitution this that there's reserve there's share fairly quickly up bad

David Holeman

think into end I we're making. the very collections we predicting there's Obviously, it, don't were we're are from But ultimate Yeah, debt, that I the pleased this mean, when trends very in with the but the our making. seeing think third of we're our positive the quarter we pleased difficult. improvement. quarter. bad want I get for And, the are XX%, a XX% we second is in we to up to call progress

XXth October were collections, through which XX% We reported of our the also the month.

being amount so third our quarter that bodes that I above think as well. So well,

to flexibility go expect that think percent down. related go collection to time I So our over reserve the we with up,

Michael Diana

good. great. Thank have, Okay, sounds That's you. I all

David Holeman

Michael. Thanks,

Operator

Riley from will Craig Please Securities. next Kucera go And our ahead. with B. come question

Craig Kucera

additional on bucket me theaters entertainment specifically the in Page color guys. or mostly is what other the movie morning, categories on Can within the Is XX Good you. you on Thank table -- some that table? give there? any

David Holeman

Craig. hey Yeah,

up theater large So, one theaters. about got I X% space we rents. one leased I The child of X% tenants think, got there in about movie square venue. our of of some footage, got, entertainment We've kind think got makes local we've we've annualized or our entertainment can of a

theater like movie community of a have we probably, So play largest then facility. a of one. And kind like a couple is theaters we entertainment and area children have a the

Craig Kucera

check your double to want of from quarter. just last I capacity And it. on of expansion the credit Got line

Was improvement and about $X good, else? or sequentially paid I $XX the million something because analyzed million. it's think an it that that you increased down mortgage is or

David Holeman

pay was loan, so credit And property a you did million. One $XX mentioned. included our unencumbered then this represented result million, of and Yeah, $XX with greater in improve That mortgage availability off better, to properties. allowed loan is, which about NOI that one that is about by collections. million. things did the facility our quarter obviously of availability creditability up went the -- little two be mortgage we $X a our therefore the about That's

from off rest So from was in improvement was that debt, million $X and the NOI. of it paying

Craig Kucera

XX% Jim, it. sense PPP, working out. late if And as the like And tenant got in tenants them? about many government I I you support. you base in have feel how garnering reached tenants actually said Okay, that with were you successful of will programs in worked those such had into assisting first getting do of a of early your in quarter, on your you've hard think

James Mastandrea

Yeah.

business they are of how worked they to for banks, $X really that just including really million the off, well say And people. in small, square do upwards to we've because very they to these able PPP, process. got them But very, it's expedite were and XX% $X are work least. usually terms and say excess at And good is banks really set size, paid network success, I up going small them. In for it not I'd their these with when we just -- footage And in of of different million. get truly, out

Craig Kucera

it. Got

quarter you've so And of quarters think your collecting over collections, XX%. hear I do got you couple what was process is your need that past to second in the

quarter, for X%, us I anything. deferred kind their on that or doesn't based paying the term this got this viability? just give XX%. term those are You longer folks aren't with bucket, on longer fact you the by tenants appear those kind thinking you that the some past of quarter are Can abating of you example, and of, guess thoughts of sort are

David Holeman

Yeah.

So, I very think I fluid said it is earlier, a as process.

shown our has In of out the the those hands very we're we on not more I specific tenants. focus we spread about others, on some little one think our have on business like model depth, where And markets, probably things focus business model markets. we a is of well.

those many of going, operate. lot a have the they've tenants, go businesses in those us. revenues got and their that we relationships worked we their So, depth have on, and paid of markets We've with

this we over some relief Some of some, just months. those back will with. And at them we've we're for where back, reached and they pay frankly, allowed us agreements working time, of are us XX paid to a period point then XX

pay think don't operate that them, had them, least XX% business help us. working quarter, the in try we with kind them to -- help their and and we're X% I had to deferred So, continuing have of we X% collections, X% at that

So, I we're think pleased.

also that And receivable, will good us doing sales with in also rent future would we're the there portal. collecting favorable and in payment to in balance stats at accounts in up online we not things also, the cleaned that some greater have think seeing very our better. little a some reporting We've were the benefit entry got We've of I our diligent leases you exclusives in like tenants, of greater some we've accounts that look agreements. where If the in our relief collecting I of up. and balloon letting recorded receivable been progress measures,

James Mastandrea

process really replicated city I’ll very, is add Yeah well. that. good. from The them properties are as city and are lot And overall the of and to replicated very to a

the very really to we that going of just XX% looks And like of them get the move tenant in space. they're traffic then opened make we've collect in a event. with doors certain that we some to That's to our have We've quickly were got what also And very it, contract to that else. for made with have venues from them to not properties. replaced out they anywhere drive able well. us we found we someone XX% when So, helped what the

example, these Arizona, For X a high called which number first & of XX am folks of -- until And is to get end the in group Coffee like cars. there's Saturday from there's exotic Cars, a am. together usually on the month,

so some that properties let And to we've the capture during within able have COVID. been from other that continue areas that not

during were COVID. to able we So, open

to Now anywhere there XX the image XXX $XX we of to $XX from capture they'll million the from first range of probably about every Saturday that million cars. month cars and on anywhere

back So, in who'd process that's that in They and tenants. then break things, come we serve folks where the or properties continue certain of our really lunch that stimulated and restaurants And breakfast. the how they for tacos serve open we early morning. can

Craig Kucera

Okay, it me. for thanks. That

Operator

[Operator Instructions] from Aaron will from Securities. Hecht next Our JMP come question

Aaron Hecht

guys. Hey

there. Arizona about could to top talked and metrics this perspective those had pre-COVID be if that anything of performance communities, traffic revenue, of the properties or levels, and the You wondering you get it whether Texas strength any markets versus you

David Holeman

think I good a Yeah, Aaron. question that's

demand demand the ultimately just driven -- from a obviously see drive activity, consumers metrics. I the then to tenants. think consumers the One metric is leasing of we the couple is a follow

kind leasing of pre COVID to levels seen activity quarter. our back in we've So, the

very the But positive. to level. consumer are seeing centers, but back So, pre-COVID seeing We of do work We you I markets, levels and have the traffic our software anecdotally looking anecdotally, those in with but are use lot I'll our kind coming numbers that, tell do we don't we think to a traffic different of have levels. our I in that numbers that's don't in centers, counts here. visits I the at

As open air all all we -- you know, open centers. operate we

to also so that tend be in geographies. are warmer markets And we're

where the able to activity few themselves pleased great very look our forward and to with months next centers, outside. our the markets are enjoy we're times, So we are sit in where actually people

big positioned for a is more tenant of experiential mix Our lot really boxes, with not tenants. long-term the

And think about very our we so estate activity that our in we're the early real is class good geography mix, seeing. investing tenant we feel level

Aaron Hecht

your I is… understand go -- Sorry generally Jim, and ahead.

James Mastandrea

and And earlier, of she with person had around that had I that statement. we all watched actually of came We've We Houston, TV, the office. person going back COVID to back March, two people. San she one locations back thought we events the was those add some that have in And to states. mentioned Antonio. it the came of No. back. it's a trip offices, interesting made But experience with came then Phoenix, we events, before and office, had these was back in four back Seattle, on thought Dallas that, a started few a have during new four was going all one she And she to to office members in kind COVID. our one I only down as those come XXX in person COVID in roughly because

So the One thing our in slim that. we people interaction experience very, noticed was very California. was from

shutdowns, are a the which have more Arizona. were And and in COVID little We following bit dramatic the the than that priors.

when a places [Indiscernible] is, most ours know lot and was Francisco San part are as that there. probably like in and being but places so out one COVID that you like of just [Indiscernible] California And reopened, and

more. up of But lot are got back, going to some with some come people a trying And we've are not. so

starting see activity. So we're to some

we've I like think from had have eight here interested moved who folks leaving California.

Aaron Hecht

you're it Are stable there strong, your through therapeutic significantly XX% structural and side harder you will ultimately that get obviously that, getting? a base leasing as goes insights soon state guess to that of there, to I impediments maybe had that make difficult October. movie theater the if very XX% anytime tenant more type used and something any because to as side given or structural -- maybe the without it's a community to collection the to or last difficulties On XX% be that collecting file any is start XXX% like kind well, of there

David Holeman

-- question. Great we're we're made progress we've making. Yeah. Yeah, with the pleased

we've any quarter the XX%. up is in now really in from the said, to XXs. normal, you There As high structural Obviously, to up the XX% goal that third back impediments. aren't get

that very tenant I revenue. base entrepreneurial. X% of with that's our have tenants, tenant more positioned largely don't We up any think well than smaller a we're space one makes

So I be continued just think to it's hard work. going

month like us. we mentioned the I months, think operate I as in climate markets warmer in our for next be great few will

structural, no that big service providing no XX% smaller are which and there's our tenants. tenants, there XXX%. It's base, normal entrepreneurial tenants, like lease So is tenant just between that's

James Mastandrea

Yeah. And business other period have will tenants New not that nine out. them we lock in Midwest a permit seven important Texas tenants we to just tenants where and But to West there their and Coast something particularly can a us punching are that business to a cases, to in thereXX listeners hours are you'll day, our from entrepreneurial remind see five. those small most in in -- And state very favorable laws important, them type it's clock that is and on that tenant paid York, up exercise they states, out them. usually to the be lock a that's XX-day days rent. In if the know haven't Arizona, in

go to to to you have hire lawyer. have You court, and

at Arizona. expanding, Colorado, Tennessee, laws beyond friendly that when rights business for example, the why look look are That's we in we Texas in and very well. as have Florida we different and for So

that how it's a we that lot. I it's And the and judicious we So, it. know we're Because about there, that very there. use think tenants helps know

Aaron Hecht

you there would performance? the then looks that think occupancy drops, about comments Pillarstone around portfolio how And like any

David Holeman

so it's about that of has think, for that ownership Whitestone think properties, it to for non-retail Yeah, quarter, a in interest was properties impact amount earnings. represents, are still eight an $XXX,XXX I kind us, it's couple small the a I

So, the Pillarstone develop assets. plans ultimately, I portfolio those some use think of and that change to has

a large down we wipe. occupancy just So, to seeing bit. a the little are impact trend not It's

FFO quarter. So, the couple about hundred of this at a impact it's this point thousand

Aaron Hecht

very you Thank much.

David Holeman

Thanks Aaron.

Operator

closing any the Mr. no And Instructions] to like I'd call back remarks. [Operator turn with questions, for further Mastandrea to

James Mastandrea

proof find all like close reiterating the thank by just thank you is And us. to operator. that that Well, we pudding. what in for joining I you would is the

and and shoulder-to-shoulder we shareholders. significant our shareholders team our management are Our Board, our with

story. we make is shareholders of to aware our our view Our and new existing strive our

And gains attractive our When we a the to this, by continue We adjust industry. really as strength economy decision our will meantime, to our to great operating and dividends continued and future. ratio expect has break track payout. improve it. in accomplish that have will retail as and sharing the down the also dividend We believe to away we're love viciously is to real estate record payout have we the be from evidenced able pay in our while we Board's story traction guide stigma that we dragged the

test. the experience with reflect superiority our and our roll pandemic. impacted Our price shareholders business pleased management stood model The have our of the will really does our that share over strength I'm not business dramatically been of by And that. COVID team's operations and really the

is six During as to and financial exceptional the it results. produce past continues months

of choice. that story. responsibility and see the a to work as doing, to our aware to knowledgeable here. that's believe market we're the have as that it's what think We really investment perform We Whitestone market link, team Our the an as more becomes with continue they we make on will is

if recognize, still performances during driven I of our we long-term that with be we're that will shared any we're And there returns. leading the really, see very and in is providing to near-term, we will and team results results plan. industry really But volatility the these one, numbers provide expectations you. more there us. experienced have really work there as are we we we shareholders to dynamic and in to for of our included amplified a true price some reflect our have and macro future our we've in in you our are by up dynamic stewardship. share continue move get a us to expect excited. We reminders any We the our and for And bright remain confidence towards thank catch strong and deep serve in in the the optimistic accurately value. ahead tremendously future, our they experiences of placed intersect, the is tailwind With what in

we us. that sustainable close. you and thank business stakeholders for your value. true to shareholders intend that, accountable. God's we and values, ahead, move know hold ourselves we as focus our to We shoulders on will all our we operator long-term we to core significant confidence intend hand As intend our on is execute With our strategic to to serving in model. shareholders on continue to And stay we And deliver we our

Operator

now concludes today's you for And disconnect. participation may conference. that you your and Thank

Whitestone REIT (WSR) 27 Oct 202020 Q3 Earnings call transcript