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

Second-rate dividend payer and slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

WSR

2.4%

US REITs

0.9%

US Market


1 Year Return

0.7%

WSR

15.7%

US REITs

16.8%

US Market

Return vs Industry: WSR underperformed the US REITs industry which returned 15.7% over the past year.

Return vs Market: WSR underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

WSRIndustryMarket
7 Day1.9%2.4%0.9%
30 Day0.7%-2.0%4.5%
90 Day10.9%1.7%6.2%
1 Year9.9%0.7%20.6%15.7%19.4%16.8%
3 Year33.4%2.4%40.0%22.5%47.5%38.0%
5 Year43.7%-6.3%57.1%24.4%62.0%44.1%

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?

36.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WSR ($14.01) is trading above our estimate of fair value ($12.41)

Significantly Below Fair Value: WSR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WSR is good value based on its PE Ratio (36.3x) compared to the REITs industry average (38.7x).

PE vs Market: WSR is poor value based on its PE Ratio (36.3x) compared to the US market (18.2x).


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 (1.7x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

-18.3%

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 (-18.3% per year).

Earnings vs Market: WSR's earnings are forecast to decline over the next 3 years (-18.3% per year).

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

Revenue vs Market: WSR's revenue (6.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WSR's revenue (6.9% per year) is forecast to grow slower than 20% 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?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSR has large one-off items impacting its financial results.

Growing Profit Margin: WSR's current net profit margins (12.7%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: WSR's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: WSR's earnings growth over the past year (7%) is below its 5-year average (30.4% per year).

Earnings vs Industry: WSR earnings growth over the past year (7%) underperformed the REITs industry 8.7%.


Return on Equity

High ROE: WSR's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Whitestone REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: WSR has a high level of physical assets or inventory.

Debt Coverage by Assets: WSR's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: WSR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if WSR has a sufficient allowance for bad loans.

Low Risk Liabilities: WSR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if WSR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WSR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if WSR has an appropriate level of bad loans.


Next Steps

Dividend

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

8.14%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Whitestone REIT before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years8.1%

Current dividend yield vs market & industry

Notable Dividend: WSR's dividend (8.14%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: WSR's dividend (8.14%) is in the top 25% of dividend payers in the US market (3.68%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WSR has been paying a dividend for less than 10 years.

Growing Dividend: WSR has only been paying a dividend for 9 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.5%), WSR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WSR's dividends in 3 years are forecast to be thoroughly covered by earnings (2.3% payout ratio).


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

Jim Mastandrea (76yo)

13.1yrs

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

Compensation vs Market: Jim's total compensation ($USD2.62M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Management Age and Tenure

13.0yrs

Average Tenure

60yo

Average Age

Experienced Management: WSR's management team is seasoned and experienced (13 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

66yo

Average Age

Experienced Board: WSR's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: WSR insiders have bought more shares than they have sold 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
Pacific Oak Strategic Opportunity REIT, Inc
EntityCompany
Shares511,043
Max PriceUS$14.18

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Management Team

  • Peter Tropoli (47yo)

    General Counsel

    • Tenure: 0yrs
  • Jim Mastandrea (76yo)

    Chairman & CEO

    • Tenure: 13.1yrs
    • Compensation: US$2.62m
  • John Dee (67yo)

    COO, Executive VP & Secretary

    • Tenure: 13.1yrs
    • Compensation: US$704.83k
  • Vince Mouer (60yo)

    Corporate Counsel

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

    Chief Financial Officer

    • Tenure: 13yrs
    • Compensation: US$1.34m
  • Scott Hogan

    VP & Controller

    • Tenure: 11.3yrs
  • Bradford Johnson (60yo)

    Executive Vice President of Acquisition & Asset Management

    • Tenure: 0yrs
    • Compensation: US$769.63k
  • Christine C. Mastandrea (53yo)

    Executive Vice President of Corporate Strategy

    • Tenure: 1.8yrs
    • 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: 6.7yrs
    • Compensation: US$37.26k
  • Dan DeVos (61yo)

    Trustee Emeritus

    • Tenure: 6.8yrs
  • Jim Mastandrea (76yo)

    Chairman & CEO

    • Tenure: 13.1yrs
    • Compensation: US$2.62m
  • Jack Mahaffey (87yo)

    • Tenure: 19.8yrs
    • Compensation: US$66.26k
  • Don Keating (87yo)

    • Tenure: 11.8yrs
    • Compensation: US$37.26k
  • Nandita Berry (51yo)

    • Tenure: 2.2yrs
    • Compensation: US$65.26k
  • David Taylor (55yo)

    • Tenure: 2.7yrs
    • 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$581.407m
  • Market Cap: US$569.278m
  • Shares outstanding: 41.56m
  • 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 Analysis2019/11/20 00:28
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.