WSR - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Whitestone REIT Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce David Mordy, Director of Investor Relations. sir. you, Thank

proceed. You may

David Mordy

and Quarter thank Whitestone morning, for you Earnings Conference Fourth XXXX REIT's Call. Good joining

Joining me Hogan, on Officer; today's call are Dave Chief Officer; Officer. Christine Holeman, Operating and Financial Scott Chief Mastandrea. Chief Executive

note a and be differ number historical materially of some are results forward-looking those statements. may made most this risks, deemed during Please the recent call that statements these not from company's Actual forward-looking may other XX-Q statements earnings to due news SEC, factors. including filings and factors. and for Whitestone's uncertainties XX-K the with Form of and a Please release discussion to refer detailed

the Acknowledging this only information. today's no date, that [indiscernible] note this update period a call The obligation March includes to X, as of of XXXX. that for company accurate time, fact time-sensitive undertakes also be to that it's important information webcast may

on filed Investor our afternoon, quarter have earnings on yesterday SEC which and Whitestone's over data I financial fourth our discussed will to call XXXX and highlight Executive Holeman, available today. package Officer. website to and quarter turn supplemental Chief published now be with website fourth the section. operating We the our news Dave in been slides release topics are Relations the

David Holeman

you, Earnings Whitestone's and Conference Thank David. thank XXXX morning, joining Fourth Call. Quarter Good you for

terms helping future we're in us Yesterday, and blocks of what we understand results, and a that what terms growth of to the going released achieve our this investors are provide growth results, to wrapping earnings spend morning, up of a importantly, in very strong our trajectory. enabled confidence of year more those lot us time

the high-return a space, us to we our That earnings XX% shop of in deliver is capitalize investors. our who concentration consistent group growth with allowing peer start fact and strategy, change on are. for in of ABR. We element overall critical lead Let's high-value,

the deliver we cover with past I'll years delivering how in X the then growth. to start what off the plan years. ahead terms our in we've what and earnings of over delivered peer-leading

delivered growth X.X%. In any have share we strong years, X compound past achievement. core FFO per is for the annual believe a environment, this we Over of

particulars important. are overcame the However, we

XX-day Over rates XXX drag the causing increased by points, basis on the past years, double-digit curve a earnings. as SOFR represented interest X

In by in addition, leverage we 'XX our QX X.Xx X.Xx represented debt-to-EBITDAre XXXX. improved for QX a to

So we leverage. simultaneously grew while earnings reducing

quality does fully which to the the largely The organically we've improving not initiative driving is X.X% our is one both also in debt metric growth, portfolio, percent earnings organic and company's as degree X.X% of a strengthened in evidence of growth reveal and bad inorganically. to revenue, XXXX. our revenue The and XXXX from

to investors our recycling X of much increasing that drivers outperformance. to growth calls, encouraging past turnaround but which on measure we and not program years us points continued rather strategic success has are our focus is about elements, TAP our focus the fueled X.X a component inorganic so our on key that for on we've up on set talked great over Today, and there. score been last the The our

growth X income believe to deliver by growth. can X% next FFO we years, to X% organic operating the net core Over X% we same-store driven of consistent X%

acquisitions. targeting uplift we core growth adding basis points FFO XXX are growth, organic of from Beyond

percentage to investor the model, Tangential the earnings our base. of the lowering delivering our investors scaling and the broadening benefits benefit cost for growth are fixed

growth. terms share of in earnings per this phase I However,

share fashion, delivering years grown in per a a over the earnings fashion, to We we disciplined have last continue disciplined growth. in will and grow X

spend. capital renewal leases that return and has we redevelopment Our basic new same-store NOI two, growth the on components: one, achieved on we contractual spreads X escalators; the three, and

rate greater to and for under shop XX,XXX While escalators have spaces in our just X% older X% is our the just our down This annual larger range, space for shop X% X.X%. to blended broken and than the for the of foot majority under square contracts recent to contracts X% bring spaces.

to per the of looked we terms renewal X have to our in and If So this in leases growth. at we've for the we same-store is base of NOI last conservatively XX% what new Adding achieved this, our we take achieved on over years. terms X.X% what that the XXX% is over we'll year. of we've to X.X% top of and the on NOI last cash [ multiply years, X.X% ] X coming what contractual leasing to spreads years add X up over the next times same-store got growth escalators. This

a in the very is markets, solid our believe looking this And assumption. fundamentals we at

be growth, there imbalance retail This growing is and population as reshoring. neighborhood is trend are We are the states have XXX% not continue. to have with centers business-friendly that and starts new and business manufacturing a is been supply-demand combined indicating generally in from in that chosen growth as fact benefiting built high costs tremendously this a job new decade construction over will

true front. Contracts up even up the with occurred our increases but is on years, this leading coming of all this is markets. Phoenix haven't in X phenomenon market over that caught last

is The anticipate higher block to spend. a to redevelopment. up with third basis XXX of be redevelopment able add slightly same-store We we'll points NOI growth

the redevelopment, Christine into have I'll income starting range operating capital same-store portion will more We growth terms have our heavily the the lift redevelopment which begun on into already upper plans increased there. in XXXX. of of dive in spend net

of see from Shifting acquisitions continue opportunities to centers. growth terms of we to accretive of in organic plenty growth, inorganic

Arbor and at been redevelopment accretive XXXX, of development and in pad since Commons, rates leasing X our Garden to a terms Our acquisitions Scottsdale Anderson X non-owned potential. Oaks, Dana continue provide at upside all and Woodlands, Arcadia, have pads non-owned multi-tenant and property Lake site Park

terms very the be million in $XXX selective done months. over approximately acquisitions We our acquisitions. can of last XX We've in

cash continue sources. use equity to dispositions, operations will terms from we in disciplined a and of forward, property debt Going mix flow of

occupancy X% our gains. average approximately X.X% XXXX, of has from by Since been same-store growth boosted

line achieve. projection X% we to X% with in our can we've So is perfectly demonstrated long-term what

engine in XX% we delivered the Our growth earnings the organic behind is XXXX. growth

Now our stronger replacing and XXXX of of in was guidance from higher tenants the tenants walk than producing I'll greater incorporates about with termination the our fees have NOI. higher in revenue detail. guidance $X.XX focus about growth 'XX average talk Scott quality those

All in performance combined XXXX assessing and our growth. recommend our FFO at would looking longer-term XXXX I all, X% core in X% to of target sustainable

you in dividend maintaining year growth As payout December recent release, FFO X.X% an raised press the X% while may approximately to bringing dividend XX% by have per since seen over XXXX our the CAGR core ratio. we

growth believe to growth translate targeted the Whitestone on investors, The the [indiscernible] This as right core team for into right we is stock current is the X% to Christine? value core dividend X% and which well. have long-term intend dividend and FFO value strategy do we evaluating plus model those approximately for the to we proposition it. focused proposition X%

Christine C. Mastandrea

everyone. morning, Good

NOI strong for and same-store in X.X% we've in by quarter quarter X, quarter Sequentially, X.X% same-store growth. Dave As growth headlined delivered NOI then was X.X% X.X% in X X.X% XXXX, X. results our indicated, our quarter X, in

strong in spoken a of that several of quality I've NOI our last the initiative. result quarters same-store the revenue is growth on and

the demographic proactively relatively key driver upgrading at was for the to changing slightly the was XX%, spend. our and tenants Our growth of the NOI year occupancy strength of over the stable

to fits to [indiscernible] and of company earnings and how larger was of within, I occurs designed identify result Today, as take deliver change this proactively time some put the covering together a change. picture wanted change, revenue consistent that quality

wider businesses. to We with demand a the more high and have of and centers works provided flexibility surrounding percentage on shop to identified more flexibility multichannel uses well also early range sophisticated adapt a space small with to of

the anchor less In smaller tenants. capital versus addition, spaces a big box require or

strong Complementing the us and demand to the matching businesses from the data knowledge, with ESRI the centers. our the focus demand constantly what was to when ] would that translate allow data connecting mean AI success of advantage centers the utilizing physical space we for Placer pay high-value is This say [ attention design to use that community. drivers would and supplemented local to technology into populating our the shop we drivers, to

business. the isn't community of connecting business. a Slide acquire very opportunity have center. the we X local competitive we knowledge acquisitions. on represented And for to shown one advantage our our the the and our by is and to acquisitions utilizes a And It to of before as The data so the the understand foundation specific community profile element team center

Our new understanding as in leasing in gaps future that team specializes community determining demand and process part the tenants. the of identifying

understand utilizing Our have the business' advantage elements surrounding additional underwriting take to to capability of demand. data the the processes in

staying with a revenue our the changing traffic capability evaluate constantly to business demand tenants needs not demographic far center that's ahead is our of community. aspirations quality that be Our of rather to the of surrounding tenants replacing than willingness and driving meet enough of the initiative and so meeting a the

our evolves primarily bent dollars are fully redevelopment Our and the there believe dispositions and as are demand proactive done has if limitations community community or are evolved. we grows

Whitestone as The next leases shorter of service-oriented curate shorter in connection leases demography. allow and and the on capital less community are a we and putting service-oriented through X that all new in center processes to the advantage focused threading puzzle flexibility properly take businesses setting intensive configuration pieces much the are meeting more together change components The of center after businesses. intentionally up our are us much

the ability of of to rather use to confidence knowledge adaptability we in in changes the data change of occurs demography our than All assess demand that flexibility reverse. provides our in our all, local our strengthen plus to can centers, the us model business and

then, of to paid the our communities the termination up for our upgrade pleased X.X% quarter who to and moving to traffic continue quarter XXXX. the versus fourth base, tenants nonperforming we XXXX, new and turn, moving in fees in That's center result fourth shareholders. proactive designed tenants out deliver In and tenant our we've driving in

a fitness With connecting on So income are seeing food. the now focused drive is wealth younger with put spending and right and around a group's and demographic experiences in specific to others, with changing demographic we're patterns. continuing changes younger to demographic self-care most is growing higher into trends notably

is to providing because ahead of selective with it years. higher redevelopment as of shift we We're we've the spend are The of acquired Whitestone a those kept opportunity consumer of same-store with able of with certain to pace to change evolution communities those needs. communities sophisticated accelerating, properties we're get serving past and growth change direction and to over NOI the the owners seeing is business several capital. or increase marketing This this our the number

capital without several group over us helped We've the us of last boosted occupancy growth peer continuing the top at the ahead. XXXX redevelopment and the our already and NOI same-store This have even in that years will boost this beyond, gains see keeping years.

the through Trade process. redevelopments more is these of Houston. One good our in portion is of Williams That way exciting the a of already the Center

Our businesses on the EOS improvements activity, replacement for mobile center an center traffic from that center. the grocer of new traffic by underperforming XX%. forward driving leasing the now new an we and returns target as focus to we're within boosted has fitness and active demographic an community well, and upwardly to that increased with And

Another in thriving Houston. This of the Square is the our around no is near anywhere center is the almost community the heart community center center. change is has Lion community which where of and occupancy evolution available at driving Asian

do But have with a the going hours development importantly, the on at XX center. and efficiently do the flow. can of it around the day. modernize a We additional cash to traffic We'll center's we is the transform without time, interrupting opportunity same this it center strong

the provided Slides in detail redevelopments XX. on the XX through on horizon We

do in foundational very and Whitestone's deliver returns. approach square to can per I high with change of our this $XX $XX for we most redevelopment efforts. Importantly, foot to redevelopment started

talk quarter, But fourth remiss In spreads I our delivered a This we've renewal and XX%. spreads about if XXXX. combined with I'd leasing consecutive spreads of XX.X% excess XXth in leasing achieved quarter XX.X%. of leasing we in spread of be XX% of positive didn't is for what leasing new the overall

real our increased X% in to a demonstrating year-over increase rent a foot, net marked the average value effective square estate. base of $XX.XX The

including construction second EOS this at in first Windsor [ our EOS have success. Park ] after great [ Antonio earlier new major deal to at the year We under Williams San opening Fitness ] now deals, Trace with

perfect up-and-coming fit we're homes professionals. deal Family to The Quinlan around Phoenix ] center. Picklr restaurants a vacation The to Arizona. causing change our Alverit market the Street and traffic younger, is ad community Market Farm ] Terravita Austin evolving Terravita We is have Picklr to Center the also [ at booming in as and exciting Phoenix. We've job is change [ once what just by and high-end this portfolio, occupied in new ] opening [ across and capitalize homes the Crossing signed the second on including to Kitchen in drive

increases as our continued This type center success and our results we can not value of of the exactly leasing in prove only do the drives what real right estate hands.

Our growth. of covering assessment their portfolio we our increase NAV continue to analysts deliver as

congratulating to the team and year strong. finishing like I'd the operations on leasing

We the Scott? reason growth team, big a have that have they're runway a in dedicated up robust part ahead. lined very of and the we

J. Scott Hogan

Christine. Thanks, both very quarter for We fourth delivered results, and year. the strong for the

start me the with Let XXXX highlights.

the $X.XX quarter, $X.XX the in $X.XX in help growth. core for accelerate clauses first fourth a in and the some distribution in quarter. what $X.XX The fourth FFO in the breakdown in $X.XX things the delivered XXXX's XX% in versus XXXX, anticipate we by We We third the from $X.XX representing per year in during was FFO in share in fourth XXXX. quarter. quarter typically That's second quarter, the core with percent quarter growth terms sales of revenues seeing additional that quarter about similar anticipated

same-store Trace, the for NOI boost at growth. their opening year. X.X% growth full delivered opening same-store we fourth XXXX NOI helped Park Williams NOI anticipate quarter same-store and growth X.X% Windsor We boost for will and of the DOS

of other year several the XXXX we at end the expect so also this large far We to signed tenants do same. or

our at not one of our view we heavier tenants our a contract our XX.X%. include and shop the quite in signed. use only came mix the occupied as we as Occupancy space And Both they and reminder, competitive take process advantages. is not tenants when possession turnaround quicker when list, in of

in the what for Slide we Turning of to from XXXX to on walk items anticipate a X. I'll discuss few XXXX. terms growth

is finished of from anticipate to As to $X.XX. add the the same-store anticipated mentioned, come to majority [indiscernible] which Similar core FFO growth XXXX, I will we our share. $X.XX I NOI, per

guidance to in as makes growth of know pace our non-same-store our terms acquisitions, plan While yet continue not NOI do we of timing. no assumptions we the

reduce levels to to rates. interest by share, G&A earnings share are lower per a anticipated expense and projecting in per is interest due $X.XX and $X.XX improvement we leverage

under had long-term goal to On ratio and anticipate getting front, the will a this sheet balance our we of reduce continue our We leverage Xx. we improve debt-to-EBITDA metric.

quarter-to-quarter variability. so is the metric some has The our fourth quarter, quarter strongest predictable

available fund and In million $XX.X flow have $XX.X liquidity, cash we have operations facility. under years In terms were we strong in in fuel credit earnings of the flow $XX was ahead. from dividends the XXXX, Whitestone's million cash in dividends XXXX and to cash $XXX to growth million growth and million, leaving after

We no in maturities remaining have XXXX.

we're a further. However, position to rates drop, ladder able opportunistic we're be and if out maturities to in

we'll continue group, of the believe that, one plan dividends remains dividend With and line have open the the we we the most highest peer place secure, right in to Our growing questions. growth within for trajectory. the

Operator

[Operator Instructions].

Markets. Germain question comes Capital with Mitch first Citizens from The

Mitch Germain

shopping couple the your expansion a some some to When to pad wanted that opportunities potential but the foresee of about. have talked redevelopment or some of centers, sites, redevelopment be materialize? Obviously, of are some that you you know back to there of those to I center other bigger opportunities it on the year. you on begin were whether attached circle use. the sort opportunities do of I Congrats existing some for

Christine C. Mastandrea

Mitch. question, the for Thanks

break me of a Let it on out different couple parts. really

sites, placed but are would little there that older. of yes, I we've So bit pad had number consider a a also centers well

to be We've relatively remerchandise. doing in actively have also reinvest is practical a a that. basis able locations those been been at We that them to basis and

I those we stack that where delivery cash to team of have right, over sure for to flow. timing and bread the centers of execution consider make butter and I them, your So and for the and match time, sort also

been tenants that, move So and into. that I'd talking we've be ones. the forward. And centers say bigger of there's changes actively a those of some We've that to other larger positioning the group make working been about, to we'll then

some longer have yes, But to little they frame. So those bit upside definitely a it. time opportunity have

well on larger we're our actively moving centers. as of X direction that in So

Mitch Germain

circling materialize reduction about it anticipate talked spoke then Maybe helpful. you leverage. That's to Great. that acquisition Scott appears to Dave redevelopment. begin in in greater the his would the plan. in got how to And a expense? about capital We've activity over comments further

this picture So able how leverage where does entire fit you together are or reduction increasing to deliver while efforts? to also continue external deployment your

David Holeman

question. good is This Dave. Mitch,

of business. starts me, engine for core it I this think with the

at and what of a that's position. and think free in doing have producing, I good balance momentum the think flow cash Scott cash look we If amount we very the you that mentioned have, the we're sheet we're I

opportunities. have We

leasing a We we're very growing attractive in spreads, and with have that, space.

a opportunities. going So of to we've number be We're got disciplined.

we've focus think growth as defined I on and value earnings by growth growth. to going said always we're

So we've areas development Scott that got redev some continuing to the mentioned in larger leverage. opportunities are Christine mentioned, improve area. working of the

And I begun business. grow and looking at we've to this scale opportunities think also

be but I we now some on fashion. do of there's -- at are focus in going to some accretive -- opportunities that going we've of versus where over the opportunities position there's that what always an we're seen there. We've to done for couple think some in last is recycling sold. you've think We positive we've done we've probably still that what a bought spread years our

team focused those earnings But firing and on is of business, you've all very our to just sure and making add that on all a cylinders this of got number opportunities a is in growth.

visibility I longer-term for we are think gave targets FFO think growth. the what some we into

execute we some All on of look of calls to we those forward strategy. that that's And part things. as future of more reporting

see as ahead. today, So of bit give a we the to opportunity to, we vision a what want

Mitch Germain

about capital the I'm though your of enthusiasm. or now is changing the the talked that more indications environment seem some active, about to on acquisitions. appear that a sidelines Dave, And I competitive we was sitting curious bit becoming mean, be doesn't

just you perspective seeing out there. if some what can maybe provide you're So as to

David Holeman

Sure.

think dampen with our capital enthusiasm we're I today is there of as team. space a the more number operating in doesn't clearly in sources that a interest

believe little very markets. we're and of sauce that deep I these think the in bit we're the We're a in. we that markets we have in secret

the deep have number folks with a We in of relationships market.

while looking So always been little different. see opportunities competition, Whitestone that has are we a more for

some grocery of deck, bit we on I got being part. anchored think in the acquisitions for our slide our drivers talk agnostic a we've about

bit. separates think a us I that

our being We the component about smaller talk on differentiates focus us. larger shop spaces a that

there is to there's while as So be being to find model. there a the dynamic apply supply, and limited on as our more remain I But -- I ability that means supply competition, in our markets. think we positive far our think assets very continues good

Mitch Germain

obviously, to those let me that income if be smaller in really I sorry, called out? or smaller transaction bit need that. percentage referenced includes tenants can we to like be don't you mean, know in need and to markets operating Last management other for is any one not a aware high. our buy You'd I of? a say, be seem that one that good quarter -- and be this there that platform is timers anything to to and should me model to attest everyone have assets, rent, needs but Scott,

J. Scott Hogan

fourth hitting tenants than breakpoints. have other quarter in because percent We rents quarters in Yes. the do their Sure. we of higher always

they're in to We that also have a little move than normal. tenant maximize we're year, higher out, time the in event. we fees looking quarter Any and had always the a some termination

good. The spaces are very

to excited X. we're termination walk back. the Page those were some them reflected on higher, that are But fees did have and have we think I on

Mitch Germain

the Is that recorded quarter? fourth was -- in that

J. Scott Hogan

fourth in the were recorded There a couple year. was throughout It quarter. the

Mitch Germain

there in forward I my XQ to guess worry I run asking, is what rate? with need I'm anything about that to regards

Christine C. Mastandrea

that. I of part been said take activity mean, we year, year, at and do. the termination That's the Mitch, the throughout and we'd I No. remerchandise That's of active that remember that fees. beginning that the includes we'd doing last remerchandising that

year next So now going I this to see you're don't year. see much or than different

J. Scott Hogan

We'll plan fees termination have year, to every Mitch.

the at trajectory a look a had in the quarterly similar in earnings trajectory we and take expect I'd that think 'XX. I in 'XX

Operator

comes from question with next The Securities. Anthony Hau Truist

Anthony Hau

year. is that So [ ] I lease the this Regis expiring noticed

mark-to-market guys Just you curious, this where And And opportunity for plan? the what's negotiation what's the in are space? the process?

Christine C. Mastandrea

of rest business mixed this not about So that couple I of is of that important as a our it one talk but think the it things is as really portion to big are office, that's it, but relates use. to

in and Galleria, area, have and end And change especially seen, adjust starting we've especially for downtown. Houston of is it's it's pricing in the upper opportunities areas, certain so to where that what boutique you this where Uptown not office in the market. in particular,

and of area out moving moving a out number the have Galleria. moving You City is. the they're where also Center, downtown. a tenants from to country that and That's are demand in They're town to

we're because also talent, if a want towards those you So location And we people the office want of it. use. in space are appropriately to attract where workforce, upside that mixed for change make because there the the that neighborhood this is to managing need sure also come in they the a is specific this have is type opportunities good really to as a demand specifically, have, of looking you for

I say positive dynamic that we see talking this careful of things, to upward towards these be about in a market But just So you in space. I that type have know. real as

David Holeman

Yes.

feel echo Just is this and great property, to Christine, it. good great very about we location,

top of they're list, our tenant at look you if think I revenue. X.X%

And we so at have. the role like welcoming a we're this spaces

Anthony Hau

update on question process? not you. the is [ the color of second part guidance, Got is the And the any understand I ] you -- can but liquidation on then provide or proceeds Pillarstone any from my

David Holeman

and more may I'll start to detail. provide some want Scott out

So sold, we're -- all offers. a have this I feel under place. of contract the collection or is There's mode. I reported long previously are think that Currently, are part it's end, either a like properties process, feel of that of in but Anthony, a the Pillarstone plan we've we liquidation nearing

moving feel receiving very those proceeds. forward, about about so And good we

the of I or today elements core on to we as talk much concentrate turnaround wanted think not some business and the about frankly, Pillarstone.

And collecting good so about we that. feel very

report can balance we about what think I feel I And believe. just sheet well north roughly proceeds got $XX I being on at we've of very Scott million, comfortable our given that. described, the

J. Scott Hogan

we liquidation receive revise to a those court reflect our It's quarter-by-quarter. timing very guidance situation in predict to proceeds, start Yes. we'll that. hard just bankruptcy to as Anthony, the

Operator

[ ] Global Rob Mette with Partners. Alliance

Unknown Analyst

to wanted XXXX? are I around redevelopment. your And back spend to any to capital go expecting clarify, you just comments in associated with redevelopment

David Holeman

Yes, arb, it's Yes. Dave.

I deck bread I Pages development. think Christine we mentioned, XX, think, of our kind butter and on XX in slide show and our

gave we years. $XX think I couple a probably to of a that's million number over million of $XX

amount traditionally, have normal kind our in statement cash of you'll that for But the done see development, flow we of year-end.

activity level up. to anticipate and same slightly we that starting So ramp of

projects then bit And are takes process, in the as mentioned, but larger Christine a it longer.

pass yes, So to we're we just see activity. probably we'll redevelopment time results. a have historical report bit than have on the get we'll more those We're But to spend. our going some going some start as where sites, to closer to little

Unknown Analyst

these Okay. kind underwriting yields us And you what you're guys can of on remind redevelopments?

David Holeman

Okay.

cash things. the upside also, market, in a for portfolio a like an it's flow. and what in-place those And we for the process the go the opportunities. This what So pretty couple of I'd is we set And of comp existing opportunities rents. evaluation are look through keep is the to that intensive

can X an little we months this to XX we give of structure they that over over place months work. might and this, make can just go it So these sure you an you idea some or of appropriately. of how bit of example a give take I'll

into had where underperforming evaluated an a which Trace, the process, process. at Williams we design we started when So is opportunity we grocer, the

significantly takes consider underperforming that going optimal a tenant to I fallen working the we has fit It tinker In towards that, grocer. time we what traffic thought center would drive through your we an targeting result. what an way traffic with you're and bit little center would and of to off started already saw well a certain the in type that because do

them also targeted EOS that into being in mix type around that to that user. So way when strength saw tenant crafting start said, there we market, also brought a we was and a the of

rights, And and so in the improved we space. We we existing the look TI overall some then and adding turning one remerchandising consider adding along center, towards tenants. way, what the walkability applied case, I would started patio some the center of at started the the of

that, a we've performance lot of well, also in keeping existing while had place. in a just with improvement And not real performance, flow as cash but traffic, the

So look to push for the this, for look returns we and for also we increase we target to -- double-digit XX% ability rents. XX% in

Unknown Analyst

expect Okay. Last question XQ, in we 'XX? overall on rate like 'XX? Should maintenance guys run reported CapEx expect for that reported what CapEx million of you your maintenance you should CapEx the forward, we $X.X going for kind similar numbers that

J. Scott Hogan

run or X X or in X years. a expect similar look have of last may years I'd and think the a last 'XX. X been rate I average to at I the little higher the It

Operator

Capital Lucid Markets. with [indiscernible]

Unknown Analyst

guidance the does include assumptions? First, any capital recycling

J. Scott Hogan

not. does It

Unknown Analyst

was you gears, in think coming Changing the range. go XX% occupancy you. the I pandemic, Got the of your out back high years Okay. to

pushing than think Is you natural leasing you for range? take XX%. that you're can pushing in spreads that of XX%? towards Now Or optimal just a the sort ceiling? do Or occupancy XX% further is

Christine C. Mastandrea

a market, to rental we quite upward. strong when can. quite think, rates think get such turn the so I you I I'm frankly, I can trying have frankly, But vacancy, again,

our than you opportunities would will say to I in we're acquisitions. where tell I going for higher is that? Yes. XX% But looking get be and that I also Could there's good. merchandising opportunities So lease-up opportunities

we're looking acquisitions upgrading that well about. with we've is addition to redevelopment we in to you that was think stay that talked see value want so we how think adding demonstrated keep consistent through we and that, for value to looking where for say, the remerchandising where add the do like [indiscernible] opportunities we is remerchandising, in I'd And So right? looking can at we which additional of new -- our good this, I business, part I do do what

So on where is. opportunity going yes, space mentioned turn think we years, to that's I it growth X again, but we're for back last be can taking where the and this the I because

Unknown Analyst

me. Great. one talk this you for on cap just Can And Houston dispositions? rate quarter. the Can -- more you about you sold talk Okay. I Providence think in

David Holeman

did was Whitestone. in we the was assets one for of a Craig, the was years, sell the which original bunch of assets of portfolio Providence, of one Yes. that

part So portfolio assets the of quality discontinuing our upgrade out recycling of of that. our like to was

an the we in that just asset as rate area do Solid evolving other town of don't see areas. that we

Our the reporting perspective. rates of think on you sale individual cap from total if that Providence a group, -- and mid-Xs I we're at sales. think, kind with cap line sold, was everything we've not in it's in I But look

So just than portfolio. little historical a ABRs bit our good center, lower

of as quality the And our part the of portfolio. upgrade revenue, continuing

of continue scores I think the the measures things to one tax you saw our improve. third-party and

if I progress continue look the recycling, you think at we to only So through we've organically, portfolio. but not the made, really upgrade

Operator

with from question next The John Massocca B. Riley. comes

John Massocca

the XXXX missed range a at looking I year-end by or or XXXX? call, in if is leverage earlier either there Sorry this you're in expecting

J. Scott Hogan

proceeds. bit to of to Xs, be I depend predict John, that, the The it to maybe is just going in a think liquidation of be is ultimately, we'd low because going high on timing difficult like to Xs.

So -- range like Xs. but Xs, low I eventually end think to where the would that's high we up

John Massocca

City ] you impact just the retailer exposure? And any had any recent because impact that [ then of think, Joanne I from specifically, bankruptcies if XQ smaller and Okay. some numbers, Party would

Christine C. Mastandrea

disbursement risk. That's different we into lot we've And don't. saw We others. smaller talked went the focused we favored of format, why model is -- the We spaces. And about, that. from as stayed large than away we've those of always spaces. smaller No, a we our

it's at -- of look not away stayed from right? We -- it's demographic, business on you model I making look tenant retail business where what's focused the that out really They're type changing These not tired it, models. if models. somewhat it's is older are really there, that restaurants,

demography demand of spend. it's the that of able is unfortunate It's on leasing we're change. mostly it's new they said, a That and rather weren't what a quite seeing adapt because focusing bit being in right now, to to

that very So exposure, we that design beginning. have don't was by from and the

J. Scott Hogan

concentration X.X% we we just in the really concentration have highest any high I'd one add John, don't is that And revenue tenant a have.

few have we a in bankruptcies. cases, So

we're back happy the rents. have space get think can we usually I and to higher

John Massocca

guidance. isn't on Okay. on much stuff in this any, related to And impact G&A if a some Pillarstone that clarifying starting maybe ones of couple year, XXXX? then rate How run

J. Scott Hogan

expect Well, a see And we bankruptcy in cost, to XXXX. off start hard we will say in 'XX. million -- about we tapering in that to then had in think -- but similar and XXXX, where we be, think I I expect level to 'XX have $X we'll had

John Massocca

given me, on to that just seems you termination just And about last not 'XX, want it something mean reshaping. of different don't lease year? occurs? actually it to I the portfolio reason then the Or refreshing, and in -- lease to it until expirations portfolio put guidance like Okay. of 'XX just is and is for kind kind it this be similar one fees, any that's continued going there

J. Scott Hogan

it forecasting level in for at 'XX certainly go radar but think lower certainly few you out, -- we now it could a a many at it have be 'XX. don't higher but right if could tenants have we're that level, our I on a

John Massocca

of with in at the just or I guess And time guidance? Okay. XQ anticipated earnings the of in XQ kind earnings terminations

Christine C. Mastandrea

of of throughout most we the deals year. that work No, -- those kind

will a -- bit. just let when So how to it's as timing little this, me so a always about help go and maybe we explain that

know where a the where market those tenant through sales a determine in markets, we should neighborhoods. we performing. sales high We from most where our HHIs especially be. be should be, identified performance can that performance where with should know our in have of We in that where quite we And see we

see of And overnight. that little we're take where a discussion at is At in performance replacement they're the place we lack take a those or there they a the discussions see don't already be. They time will time, struggling, it's of where you that have looking to to need bit same time. the happen point

lease So there's execution. very termination the between the new even of to timing the downtime little lease

we negotiating And hand the tenant. to several X next fee a matter sometimes and take of they anywhere, so involves our we And was, that timing. It investment. position look a then on then return can negotiate over estate. so. an it a termination we as and it's of fee the what gap that just back the expect on that take do to because And from months We then a could investment just to to termination don't months or real

David Holeman

now. there So spend in a because too, change mention, brought you earlier, really is -- demographic important to want and right this just I that it's up

space. spend now, is be into place important right for it's of leaning so for going, to this that And and where an the demand type especially new

John Massocca

I Page lease your as No, you more there's could was back I getting how in current timing of on termination kind like when walk sense at to was right investment I'm trying in that X get thinking income sense. XXXX to -- a that of guidance. don't if hit just slightly guidance. received slide detailed you're the terms of a of like And that look anticipated I XQ of makes results. know just of this

going it is where? so into Or just happens? something layered get And guidance kind something it as that's to it is of

J. Scott Hogan

There's a John, those base into and occur, we'll guidance. we that factor level larger as the then ones anticipate,

Operator

closing comments. At to turn to management I like this call back the would time, for

David Holeman

have given, about we a ahead today's Holeman into we've you blocks excited lies Dave everyone and we've joining view investors of progress on Thank what make. the Everyone, of great We're forward us. again. call. trajectory. a the we We updating future for building our to the guidance Thank We're hope excited you. look day. given about

Operator

Thank you. today's This does teleconference. conclude

your this great disconnect you may You day. a Thank and for participation, time. at have lines your

Whitestone REIT (WSR) 4 Mar 252024 Q4 Earnings call transcript