NYSE:WSR

Stock Analysis Report

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

Fundamentals

Solid track record second-rate dividend payer.


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


Market Performance


7 Day Return

-2.6%

WSR

1.8%

US REITs

-0.6%

US Market


1 Year Return

-1.8%

WSR

12.7%

US REITs

0.6%

US Market

WSR underperformed the REITs industry which returned 12.8% over the past year.

WSR underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

WSRIndustryMarket
7 Day-2.6%1.8%-0.6%
30 Day6.3%1.5%2.2%
90 Day4.5%2.9%1.1%
1 Year7.3%-1.8%17.8%12.7%2.9%0.6%
3 Year22.0%-6.3%26.8%10.4%44.6%35.2%
5 Year46.5%-5.0%70.6%35.0%61.9%44.2%

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

2 weeks ago | Simply Wall St

Does Whitestone REIT (NYSE:WSR) Create Value For Shareholders?

Valuation

Is Whitestone REIT undervalued based on future cash flows and its price relative to the stock market?

24.77x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Whitestone REIT's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Whitestone REIT's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Whitestone REIT is good value based on earnings compared to the US REITs industry average.

Whitestone REIT is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Whitestone REIT earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Whitestone REIT is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Whitestone REIT expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Whitestone REIT's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Whitestone REIT's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Whitestone REIT's revenue growth is positive but not above the United States of America market average.

Whitestone REIT's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Whitestone REIT's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Whitestone REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Whitestone REIT performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Whitestone REIT has delivered over 20% year on year earnings growth in the past 5 years.

Whitestone REIT's 1-year earnings growth exceeds its 5-year average (121.7% vs 31.1%)

Whitestone REIT's earnings growth has exceeded the US REITs industry average in the past year (121.7% vs 17%).


Return on Equity

Whitestone REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Whitestone REIT used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Whitestone REIT has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Whitestone REIT's financial position?


Financial Position Analysis

Whitestone REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Whitestone REIT's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Whitestone REIT's level of debt (185.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (121.9% vs 185.5% today).

Debt is not well covered by operating cash flow (6.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

8.49%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Whitestone REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Whitestone REIT's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Whitestone REIT has been paying a dividend for less than 10 years.

Whitestone REIT has only been paying a dividend for 9 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (43.7x coverage).


Next Steps

Management

What is the CEO of Whitestone REIT's salary, the management and board of directors tenure and is there insider trading?

12.0yrs

Average management tenure


CEO

Jim Mastandrea (76yo)

12.9yrs

Tenure

US$2,619,245

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

Jim's remuneration is higher than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

12.0yrs

Average Tenure

60yo

Average Age

The average tenure for the Whitestone REIT management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.7yrs

Average Tenure

66yo

Average Age

The tenure for the Whitestone REIT board of directors is about average.


Insider Trading

More shares have been bought than sold by Whitestone REIT individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$126,40010 Sep 19
James Mastandrea
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceUS$12.64
SellUS$7,186,31806 Dec 18
KBS Strategic Opportunity REIT, Inc.
EntityCompany
Shares511,043
Max PriceUS$14.18
SellUS$7,488,72615 Nov 18
KBS Strategic Opportunity REIT, Inc.
EntityCompany
Shares531,980
Max PriceUS$14.30
SellUS$10,215,78306 Nov 18
KBS Strategic Opportunity REIT, Inc.
EntityCompany
Shares739,022
Max PriceUS$14.10

Ownership Breakdown


Management Team

  • Jim Mastandrea (76yo)

    Chairman & CEO

    • Tenure: 12.9yrs
    • Compensation: US$2.62m
  • John Dee (67yo)

    COO, Executive VP & Secretary

    • Tenure: 12.9yrs
    • Compensation: US$704.83k
  • Vince Mouer (60yo)

    Corporate Counsel

    • Tenure: 0yrs
  • Dave Holeman (56yo)

    Chief Financial Officer

    • Tenure: 12.8yrs
    • Compensation: US$1.34m
  • Scott Hogan

    VP & Controller

    • Tenure: 11.1yrs
  • Bradford Johnson (60yo)

    Executive Vice President of Acquisition & Asset Management

    • Tenure: 0yrs
    • Compensation: US$769.63k
  • Roger Moss

    Director of Leasing - Southwest

    • Tenure: 8yrs
  • Christine C. Mastandrea (53yo)

    Executive Vice President of Corporate Strategy

    • Tenure: 1.6yrs
    • Compensation: US$769.63k
  • Kevin Reed

    Director of Investor Relations

    • Tenure: 0yrs
  • Michelle Siv

    Director of Human Resources

    • Tenure: 0yrs

Board Members

  • Paul Lambert (66yo)

    • Tenure: 6.5yrs
    • Compensation: US$37.26k
  • Dan DeVos (61yo)

    Trustee Emeritus

    • Tenure: 6.7yrs
  • Jim Mastandrea (76yo)

    Chairman & CEO

    • Tenure: 12.9yrs
    • Compensation: US$2.62m
  • Jack Mahaffey (87yo)

    • Tenure: 19.7yrs
    • Compensation: US$66.26k
  • Don Keating (87yo)

    • Tenure: 11.6yrs
    • Compensation: US$37.26k
  • Nandita Berry (51yo)

    • Tenure: 2yrs
    • Compensation: US$65.26k
  • David Taylor (55yo)

    • Tenure: 2.5yrs
    • Compensation: US$65.26k

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$554.454m
  • Market Cap: US$540.348m
  • Shares outstanding: 41.16m
  • 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 loc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 00:26
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.