NYSE:WSR

Stock Analysis Report

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Executive Summary

Whitestone is a community-centered retail REIT that acquires, owns, manages, develops and redevelops high quality "e-commerce resistant" neighborhood, community and lifestyle retail centers principally located in the largest, fastest-growing and most affluent markets in the Sunbelt.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has Whitestone REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WSR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

WSR

4.6%

US REITs

2.8%

US Market


1 Year Return

-50.1%

WSR

-9.7%

US REITs

9.3%

US Market

Return vs Industry: WSR underperformed the US REITs industry which returned -9.7% over the past year.

Return vs Market: WSR underperformed the US Market which returned 9.3% over the past year.


Shareholder returns

WSRIndustryMarket
7 Day-1.7%4.6%2.8%
30 Day-6.4%5.6%8.9%
90 Day-52.4%-14.3%-0.5%
1 Year-45.8%-50.1%-5.9%-9.7%11.8%9.3%
3 Year-31.3%-47.0%11.3%-2.5%31.4%22.7%
5 Year-30.2%-54.9%42.0%12.7%58.7%40.9%

Price Volatility Vs. Market

How volatile is Whitestone REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Whitestone REIT undervalued compared to its fair value and its price relative to the market?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WSR ($6.26) is trading below our estimate of fair value ($9.29)

Significantly Below Fair Value: WSR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WSR is good value based on its PE Ratio (11.6x) compared to the REITs industry average (27.7x).

PE vs Market: WSR is good value based on its PE Ratio (11.6x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: WSR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WSR is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Whitestone REIT forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSR's earnings are forecast to decline over the next 3 years (-52.2% per year).

Earnings vs Market: WSR's earnings are forecast to decline over the next 3 years (-52.2% per year).

High Growth Earnings: WSR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WSR's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: WSR's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WSR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Whitestone REIT performed over the past 5 years?

32.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSR has a large one-off gain of $14.1M impacting its March 31 2020 financial results.

Growing Profit Margin: WSR's current net profit margins (18.1%) are higher than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: WSR's earnings have grown significantly by 32.6% per year over the past 5 years.

Accelerating Growth: WSR's earnings growth over the past year (5.8%) is below its 5-year average (32.6% per year).

Earnings vs Industry: WSR earnings growth over the past year (5.8%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: WSR's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Whitestone REIT's financial position?


Financial Position Analysis

Short Term Liabilities: WSR's short term assets ($67.0M) exceed its short term liabilities ($31.1M).

Long Term Liabilities: WSR's short term assets ($67.0M) do not cover its long term liabilities ($699.1M).


Debt to Equity History and Analysis

Debt Level: WSR's debt to equity ratio (202.9%) is considered high.

Reducing Debt: WSR's debt to equity ratio has increased from 192.2% to 202.9% over the past 5 years.

Debt Coverage: WSR's debt is not well covered by operating cash flow (6.9%).

Interest Coverage: WSR's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Whitestone REIT's current dividend yield, its reliability and sustainability?

6.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSR's dividend (6.71%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: WSR's dividend (6.71%) is in the top 25% of dividend payers in the US market (4.55%)


Stability and Growth of Payments

Stable Dividend: WSR's dividend payments have been volatile in the past 10 years.

Growing Dividend: WSR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123.6%), WSR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.8yrs

Average management tenure


CEO

Jim Mastandrea (76yo)

13.67yrs

Tenure

US$2,617,875

Compensation

Mr. James C. Mastandrea, also known as Jim, has been the Chief Executive Officer at Whitestone REIT since October 2006. Mr. Mastandrea has been the President and Chairman of the Board of Pillarstone Capita ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD2.62M) is above average for companies of similar size in the US market ($USD1.37M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Mastandrea
Chairman & CEO13.67yrsUS$2.62m2.59% $7.0m
David Holeman
Chief Financial Officer13.58yrsUS$1.34m0.92% $2.5m
John Dee
COO, Executive VP & Secretary13.67yrsUS$723.93k0.37% $1.0m
Christine C. Mastandrea
Executive Vice President of Corporate Strategy2.33yrsUS$769.69k0.47% $1.3m
Kevin Reed
Director of Investor Relationsno datano datano data
Peter Tropoli
General Counsel0.58yrno datano data
Michelle Siv
Director of Human Resourcesno datano datano data
Vince Mouer
Corporate Counselno datano datano data
J. Hogan
VP & Controller11.83yrsno datano data
Roger Moss
Director of Leasing - Southwest8.75yrsno datano data

11.8yrs

Average Tenure

58yo

Average Age

Experienced Management: WSR's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Mastandrea
Chairman & CEO13.67yrsUS$2.62m2.59% $7.0m
Paul Lambert
Independent Trustee7.25yrsUS$64.25k0.16% $418.0k
Jeffrey Jones
Independent Trustee0.33yrno data0.015% $40.0k
Daniel DeVos
Trustee Emeritus7.42yrsno datano data
Jack Mahaffey
Independent Trustee20.42yrsUS$63.75k0.13% $340.0k
Nandita Berry
Independent Trustee2.75yrsUS$64.25k0.026% $71.4k
David Taylor
Lead Independent Trusteeno dataUS$65.25k0.020% $53.6k

7.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: WSR's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WSR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

Whitestone REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Whitestone REIT
  • Ticker: WSR
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$269.434m
  • Market Cap: US$263.771m
  • Shares outstanding: 43.04m
  • Website: https://www.whitestonereit.com

Number of Employees


Location

  • Whitestone REIT
  • 2600 South Gessner Road
  • Suite 500
  • Houston
  • Texas
  • 77063
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSRNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 2010

Biography

Whitestone is a community-centered retail REIT that acquires, owns, manages, develops and redevelops high quality "e-commerce resistant" neighborhood, community and lifestyle retail centers principally located in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone’s optimal mix of national, regional and local tenants provide daily necessities, needed services and entertainment to the communities in which they are located. Whitestone's properties are primarily located in business-friendly Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio, which are among the fastest growing U.S. population centers with highly educated workforces, high household incomes and strong job growth. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 04:36
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.