Whitestone REIT (NYSE:WSR) has delivered a strong performance in the first quarter of 2024, demonstrating the strength of its high-quality portfolio and the effectiveness of its strategic execution. The company reported annual net income of $19,180,000, annual revenue of $147,920,000, annual operating cash flow of $45,288,000, and annual free cash flow of $45,288,000.

In the first quarter of 2024, Whitestone reported core FFO per share of $0.24, in line with the prior year period. The company's same-store NOI grew 3.1% in the quarter, driven by a 17% increase in blended leasing spreads on a straight-line basis and a 9.3% increase on a cash basis. Occupancy at the end of the quarter stood at 93.6%, up 90 basis points from a year ago.

Whitestone's CEO, David Holeman, highlighted the team's strong execution, stating, "Our occupancy levels and average base rent aren't just up significantly over the last year, our occupancy has increased 90 basis points, and our ABR is over 13% higher since I became the CEO at the beginning of 2022. This growth shows the value of our strategy and as a result of our new team's execution focus, the quality of our assets and the demand for these types of spaces we specialize in."

The company's capital recycling efforts have also been a key driver of value creation. Since late 2022, Whitestone has completed $84 million in dispositions at an average cap rate of 6.2% and $104 million in acquisitions at an aggregate cap rate of 7.1%. The company's recent acquisitions, Garden Oaks in Houston and Scottsdale Commons in Arizona, fit well with its Community Centered Properties® strategy and are expected to benefit from the company's in-place leasing and property management teams.

Looking ahead, Whitestone is reaffirming its previously issued guidance for 2024, which calls for core FFO per share growth of 11% and robust same-store NOI growth. The company's balance sheet continues to strengthen, with debt to EBITDAre expected to reach sub-7x by the fourth quarter of 2024, excluding any potential collections from the Pillarstone judgment.

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