10q10k10q10k.net

What changed in Whitestone REIT's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of Whitestone REIT's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+271 added−248 removedSource: 10-K (2026-03-06) vs 10-K (2025-03-17)

Top changes in Whitestone REIT's 2025 10-K

271 paragraphs added · 248 removed · 203 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

26 edited+4 added−1 removed42 unchanged
Biggest changeWe believe that currently and during the next several years there will continue to be excellent opportunities in our target markets to acquire quality properties at historically attractive prices.
Biggest changeWe believe that currently and during the next several years there will continue to be opportunities in our target markets to acquire quality properties at historically attractive prices. We intend to acquire assets in off-market transactions negotiated directly with owners or financial institutions holding foreclosed real estate and debt instruments that are either in default or on bank watch lists.
It is also possible that subsequent investigations will identify material contamination or other adverse conditions, that adverse environmental conditions have arisen subsequent to the performance of the environmental assessments, or that there are material environmental liabilities of which management is unaware. 3 Table of Contents Under the Americans with Disabilities Act (“ADA”), all places of public accommodation are required to meet certain federal requirements related to access and use by disabled persons.
It is also possible that subsequent investigations will identify material contamination or other adverse conditions, that adverse environmental conditions have arisen subsequent to the performance of the environmental assessments, or that there are material environmental liabilities of which management is unaware. 3 Table of Contents Under the Americans with Disabilities Act (the “ADA”), all places of public accommodation are required to meet certain federal requirements related to access and use by disabled persons.
Though we have no formal policy, any individual who does not satisfy the qualifications above is not eligible for nomination or election as a trustee. This commitment to inclusion applies across our Company. Employee Retention and Training: We conduct individual annual employee reviews that focus on goal setting as well as informal sessions with associates and executive team members.
Though we have no formal policy, any individual who does not satisfy the qualifications above is not eligible for nomination or election as a trustee. This commitment to inclusion applies across the Company. Employee Retention and Training: We conduct individual annual employee reviews that focus on goal setting as well as informal sessions with associates and executive team members.
Generally, there are other neighborhood and community retail centers within relatively close proximity to each of our properties. There is, however, no dominant competitor in the Austin, Dallas-Fort Worth, Houston, Phoenix and San Antonio metropolitan areas. Our retail tenants also face increasing competition from outlet malls, internet retailers, catalog companies, direct mail and telemarketing.
Generally, there are other neighborhood and community retail centers within relatively close proximity to each of our properties. There is, however, no dominant competitor in the Austin, Dallas, Houston, Phoenix and San Antonio metropolitan areas. Our retail tenants also face increasing competition from outlet malls, internet retailers, catalog companies, direct mail and telemarketing.
We believe that continued geographic diversification in markets where we have substantial knowledge and experience will help offset the economic risk from a single market concentration. We intend to continue to focus our expansion efforts on the Austin, Dallas-Fort Worth, Houston, Phoenix and San Antonio markets. We believe our management infrastructure and capacity can accommodate substantial growth in those markets.
We believe that continued geographic diversification in markets where we have substantial knowledge and experience will help offset the economic risk from a single market concentration. We intend to continue to focus our expansion efforts on the Austin, Dallas, Houston, Phoenix and San Antonio markets. We believe our management infrastructure and capacity can accommodate substantial growth in those markets.
The amount of competition in a particular area could impact our ability to acquire additional real estate, sell current real estate, lease space and the amount of rent we are able to charge. We may be competing with owners, developers and operators, including, but not limited to, real estate investors, other REITs, insurance companies and pension funds.
The amount of competition in a particular area could impact our ability to acquire additional real estate, sell current real estate, lease space and could also affect the amount of rent we are able to charge. We may be competing with owners, developers and operators, including, but not limited to, real estate investors, other REITs, insurance companies and pension funds.
Environmental, Sustainability and Governance We believe that managing our environmental, sustainability and governance (“ESG”) responsibilities is critical to creating and sustaining long-term value for our stakeholders. As part of our ESG initiatives, we have established an ESG Steering Committee, adopted a Sustainability Statement along with certain Environmental Policies, and prepared our 2023 Corporate Sustainability Report.
Environmental, Sustainability and Governance We believe that managing our environmental, sustainability and governance (“ESG”) responsibilities is critical to creating and sustaining long-term value for our stakeholders. As part of our ESG initiatives, we have established an ESG Steering Committee, adopted a Sustainability Statement along with certain Environmental Policies, and prepared our 2024 Corporate Sustainability Report.
Employee engagement is critical to our long term success, so employees’ performances are reviewed annually. Key employees are provided with equity incentives to align their interests with those of our shareholders. Every Whitestone associate is encouraged to be an owner. As of December 31, 2024, we had 72 employees.
Employee engagement is critical to our long term success, so employees’ performances are reviewed annually. Key employees are provided with equity incentives to align their interests with those of our shareholders. Every Whitestone associate is encouraged to be an owner. As of December 31, 2025, we had 72 employees.
We seek to strategically acquire commercial properties in high-growth markets. Our acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Dallas-Fort Worth, Houston, Phoenix and San Antonio. ◦ Diversifying Geographically. Our current portfolio is concentrated in Houston and Phoenix.
We seek to strategically acquire commercial properties in high-growth markets. Our acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Dallas, Houston, Phoenix and San Antonio. ◦ Diversifying Geographically. Our current portfolio is concentrated in Houston, Dallas and Phoenix.
Some of our properties that we own (the “non-core properties”) may not fit our Community Centered Property® strategy, and we may look for opportunities to dispose of these properties as we continue to execute our strategy. • Prudent Management of Capital Structure. Of our 55 properties, we currently have 51 properties that are unencumbered.
Some of our properties that we own (“non-core properties”) may not fit our Community Centered Property® strategy, and we may look for opportunities to dispose of these properties as we continue to execute our strategy. • Prudent Management of Capital Structure. Of our 56 properties, we currently have 51 properties that are unencumbered.
As a general policy, we intend to maintain a ratio of debt, net of cash, to undepreciated book value of real estate assets, including our proportional share of real estate from our unconsolidated real estate partnership, that is at or less than 60%.
As a general policy, we intend to maintain a ratio of debt, net of cash, to undepreciated book value of real estate assets, including our proportional share of real estate from our unconsolidated real estate partnership, that is at or less th an 60%.
Substantially all of our revenues consist of base rents received under varying term leases. For the year ended December 31, 2024, our total revenues were approximately $154 million. As of December 31, 2024, our ownership in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”) no longer represents a majority interest.
Substantially all of our revenues consist of base rents received under varying term leases. For the year ended December 31, 2025, our total revenues were approximately $161 million. As of December 31, 2025, our ownership in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”) no longer represents a majority interest.
We also conduct a variety of trainings on an annual basis from OSHA and Safety Regulations to Anti-Harassment Training to ensure we are up-to-date on the most recent standards and regulations. Compensation and Benefits: We are committed to rewarding, supporting, and developing the associates who make it possible to deliver on our strategy.
We also conduct a variety of trainings on an annual basis from the Occupational Safety and Health Administration and Safety Regulations to Anti-Harassment Training to ensure we are up-to-date on the most recent standards and regulations. Compensation and Benefits: We are committed to rewarding, supporting, and developing the associates who make it possible to deliver on our strategy.
Our consolidated property portfolio has a gross book value of approximately $1.2 billion and book equity, including noncontrolling interests, of approximately $444 million as of December 31, 2024. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”).
Our consolidated property portfolio has a gross book value of approximately $1.4 billion and book equity, including noncontrolling interests, of approximately $464 million as of December 31, 2025. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”).
Our Structure Substantially all of our business is conducted through Whitestone REIT Operating Partnership, L.P., a Delaware limited partnership organized in 1998 (the “Operating Partnership”). We are the sole general partner of the Operating Partnership. As of December 31, 2024, we owned a 98.7% interest in the Operating Partnership.
Our Structure Substantially all of our business is conducted through Whitestone REIT Operating Partnership, L.P., a Delaware limited partnership organized in 1998 (the “Operating Partnership”). We are the sole general partner of the Operating Partnership. As of December 31, 2025, we owned a 98.8% interest in the Operating Partnership.
As of December 31, 2024, our ratio of debt, net of cash, to undepreciated book value of real estate assets was 48%. • Investing in People. We believe that our people are the heart of our culture, philosophy and strategy.
As of December 31, 2025, our ratio of debt, net of cash, to undepreciated book value of real estate assets was 47% . • Investing in People. We believe that our people are the heart of our culture, philosophy and strategy.
Our largest property, BLVD Place (“BLVD”), a retail community purchased on May 26, 2017 and located in Houston, Texas, accounted for 9.6% of our total revenues for the year ended December 31, 2024.
Our largest property, BLVD Place (“BLVD”), a retail community purchased on May 26, 2017 and located in Houston, Texas, accounted for 9.7% of our total revenues for the year ended December 31, 2025.
As of December 31, 2024, we wholly-owned a real estate portfolio consisting of 55 properties located in two states. The aggregate occupancy rate of our portfolio was 94% based on GLA as of December 31, 2024. We are hands-on owners who directly manage the operations and leasing of our properties.
As of December 31, 2025, we wholly-owned a real estate portfolio consisting of 56 properties located in two states. The aggregate occupancy rate of our portfolio was 95% based on GLA as of December 31, 2025. We are hands-on owners who directly manage the operations and leasing of our properties.
BLVD also accounted for 15.8% of our consolidated real estate assets, net of accumulated depreciation, as of the year ended December 31, 2024. 2 Table of Contents Competition All of our properties are located in areas that include competing properties.
BLVD also accounted for 14.6% of our consolidated real estate assets, net of accumulated depreciation, as of the year ended December 31, 2025. 2 Table of Contents Competition All of our properties are located in areas that include competing properties.
We are internally managed and, as of December 31, 2024, we wholly-owned a real estate portfolio of 55 properties that meet our Community Centered Property® strategy containing approximately 4.9 million square feet of gross leasable area (“GLA”), located in Texas and Arizona.
We are internally managed and, as of December 31, 2025, we wholly-owned a real estate portfolio of 56 properties that meet our Community Centered Property® strategy containing approximat ely 4.9 m illion square feet of gross leasable area (“GLA”), located in Texas and Arizona.
As of December 31, 2024, we wholly-owned 12 properties in Houston, nine properties in Dallas-Fort Worth, three properties in San Antonio, six properties in Austin and 25 properties in the Scottsdale and Phoenix, Arizona metropolitan areas.
As of December 31, 2025, we wholly-owned 10 properties in Houston, 11 properties in Dallas, three properties in San Antonio, seven properties in Austin and 25 properties in the Scottsdale and Phoenix, Arizona metropolitan areas.
In this Annual Report on Form 10-K, unless otherwise indicated, we do not include the Pillarstone Properties (defined below) when we refer to our properties as we no longer hold a majority interest in Pillarstone OP.
In this Annual Report on Form 10-K, unless otherwise indicated, we do not include the group of the real estate properties Whitestone REIT contributed to Pillarstone OP and Pillarstone Capital REIT under a Contribution Agreement (the "Pillarstone Properties", please refer to Note 4 for the full definition.) when we refer to our properties as we no longer hold a majority interest in Pillarstone OP.
On January 25, 2024, we exercised a notice of redemption for substantially all of our investment in Pillarstone OP. As of the date of this filing, we have not received consideration for the redemption of our equity investment in Pillarstone OP as required by the partnership agreement.
On January 25, 2024, we exercised a notice of redemption for substantially all of our investment in Pillarstone OP.
Please refer to Note 4 (Investment in Real Estate Partnership) to the accompanying consolidated financial statements for more information on our accounting treatment of our former investment in Pillarstone OP.
After the $4.05 million payment is made to Pillarstone REIT, we expect to receive approximately $4.0 million in cash and any excess from the $2.5 million in reserves in 2026. Please refer to Note 4 (Investment in Real Estate Partnership) to the accompanying consolidated financial statements for more information on our accounting treatment of our former investment in Pillarstone OP.
We have filed a claim in the “Pillarstone Bankruptcies” for the value of our redemption claim along with interest and other costs.
On March 4, 2024, Pillarstone Capital REIT (“Pillarstone REIT”) filed Chapter 11 bankruptcy for itself and Pillarstone OP. We subsequently filed a claim for the value of our redemption claim along with interest and other costs.
We intend to acquire assets in off-market transactions negotiated directly with owners or financial institutions holding foreclosed real estate and debt instruments that are either in default or on bank watch lists. Many of these assets may benefit from our Community Centered Property® strategy and our management team’s experience in turning around distressed properties, portfolios and companies.
We believe many of these assets may benefit from our Community Centered Property® strategy and our management team’s experience in turning around distressed properties, portfolios and companies.
Removed
We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our receivable, formerly our equity investment in Pillarstone OP.
Added
On December 12, 2025, we received $33.4 million dollars from Pillarstone OP pursuant to a settlement agreement approved by the Bankruptcy court under Bankruptcy Rule 9019.
Added
After Pillarstone REIT has paid its portion of funds, the settlement agreement directs Pillarstone OP to distribute to us any remaining funds and any excess amounts in Pillarstone OP’s $2.5 million dollar in reserves for claims, taxes and administrative expenses. We expect to receive approximately $4.0 million in cash and any excess from the $2.5 million in reserves in 2026.
Added
We filed a claim in the “Pillarstone Bankruptcies” for the value of our redemption claim along with interest and other costs. On December 12, 2025, we received $33.4 million dollars from Pillarstone OP pursuant to a settlement agreement approved by the Bankruptcy court under Bankruptcy Rule 9019.
Added
The settlement agreement directs Pillarstone OP to distribute to us all funds remaining after a payment of $4.05 million to Pillarstone REIT and a reserve of $2.5 million for claims, taxes and administrative expenses.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

13 edited+3 added−10 removed228 unchanged
Biggest changeRisk of Litigation We assess the likelihood of any adverse judgments or outcomes to our cases, as well as potential ranges of probable losses, in a manner consistent with FASB ASC 450, Contingencies.
Biggest changeAlthough we believe qualified replacement could be found for any departures of key executives, the loss of their services could adversely affect our performance and the value of our common shares. 10 Table of Contents Risk of Litigation We assess the likelihood of any adverse judgments or outcomes to our cases, as well as potential ranges of probable losses, in a manner consistent with FASB ASC 450, Contingencies.
We are currently subject to the control share acquisition statute, although our board of trustees may amend our Amended and Restated Bylaws, or our bylaws, without shareholder approval, to exempt any acquisition of our shares from the statute. Our board of trustees has adopted a resolution exempting any business combination with any person from the business combination statute.
We are currently subject to the control share acquisition statute, although our board of trustees may amend our Amended and Restated Bylaws (our "Bylaws"), without shareholder approval, to exempt any acquisition of our shares from the statute. Our board of trustees has adopted a resolution exempting any business combination with any person from the business combination statute.
Our Community Centered Property® business model produces shorter term leases to smaller, non-national tenants, and substantially all of our revenues consist of base rents received under these leases. As of December 31, 2024, approximately 29% of the aggregate GLA of our properties is subject to leases that expire prior to December 31, 2026.
Our Community Centered Property® business model produces shorter term leases to smaller, non-national tenants, and substantially all of our revenues consist of base rents received under these leases. As of December 31, 2025, approximately 29% of the aggregate GLA of our properties is subject to leases that expire prior to December 31, 2027.
The extent to which a resurgence of COVID-19 pandemic, or a future pandemic, impacts our operations and those of our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence. We lease our properties to approximately 1,400 tenants and leases for approximately 10% to 20% of our GLA expire annually.
The extent to which a future pandemic, or epidemic impacts our operations and those of our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence. We lease our properties to approximately 1,500 tenants and leases for approximately 10% to 20% of our GLA expire annually.
As of December 31, 2024, we had fixed rate hedges on $335 million of our variable rate unsecured credit facility. We may enter into additional interest rate swap agreements for our variable rate debt not currently subject to hedges, which totaled $75 million as of December 31, 2024. Hedging may reduce the overall returns on our investments.
As of December 31, 2025, we had fixed rate hedges on $375 million of our variable rate unsecured credit facility. We may enter into additional interest rate swap agreements for our variable rate debt not currently subject to hedges, which totaled $51.8 million as of December 31, 2025. Hedging may reduce the overall returns on our investments.
The majority of our assets and revenues are currently derived from properties located in the Houston, Dallas, and Phoenix metropolitan areas. As of December 31, 2024, 23%, 17%, and 45% of our GLA was located in Houston, Dallas, and Phoenix, respectively. Our results of operations are directly affected by our ability to attract financially sound commercial tenants.
The majority of our assets and revenues are currently derived from properties located in the Houston, Dallas, and Phoenix metropolitan areas. As of December 31, 2025, 19%, 21%, and 45% o f our GLA was located in Houston, Dallas, and Phoenix, respectively. Our results of operations are directly affected by our ability to attract financially sound commercial tenants.
As of December 31, 2024, we had approximately $136.3 million of mortgage debt secured by four of our properties. If there is a shortfall in cash flow, however, the amount available for distributions to shareholders may be affected.
As of December 31, 2025, we had approximately $154 million of mortgage debt secured by five of our properties. If there is a shortfall in cash flow, however, the amount available for distributions to shareholders may be affected.
Accordingly, if financial and macroeconomic conditions deteriorate, or if financial markets experience significant disruption, it could have a significant adverse effect on our cash flows, profitability, results of operations and the trading price of our common shares. The 2024 U.S. presidential elections may introduce significant uncertainties.
Accordingly, if financial and macroeconomic conditions deteriorate, or if financial markets experience significant disruption, it could have a significant adverse effect on our cash flows, profitability, results of operations and the trading price of our common shares.
The potential resurgence of COVID-19, emergence of new variants, or future pandemics or health crises may intensify other risks outlined herein, potentially leading to adverse effects on our business, financial position, operational results, cash flows, and market value.
Future pandemics, epidemics or health crises may intensify other risks outlined herein, potentially leading to adverse effects on our business, financial position, operational results, cash flows, and market value.
Obligations under the Notes and the 2022 Facility are guaranteed by the Company and certain subsidiary guarantors. Our current debt agreements, including the agreements governing the Notes and the 2022 Facility, contain, and any future debt agreements may contain, a number of restrictive and financial covenants that impose significant operating and financial constraints on us.
Our current debt agreements, including the agreements governing the Notes and the 2025 Facility , contain, and any future debt agreements may contain, a number of restrictive and financial covenants that impose significant operating and financial constraints on us.
Any widespread imposition of new or increased tariffs could increase the cost of our development and redevelopment activities, as well as result in inflationary pressure, any of which could have a material adverse effect on our business, prospects, financial condition, results of operations or cash flows.
The new tariffs, along with any additional tariffs or trade restrictions that may be implemented by the U.S. or retaliatory trade measures or tariffs implemented by other countries, could increase the cost of our development and redevelopment activities, as well as result in inflationary pressure, any of which could have a material adverse effect on our business, prospects, financial condition, results of operations or cash flows.
U.S. relations with the rest of the world remain uncertain with respect to taxes, trade policies and tariffs, especially as the political landscape changes due to the recent U.S. presidential and congressional elections.
Additionally, U.S. relations with the rest of the world remain uncertain with respect to taxes, international trade policies and tariffs, especially as the political landscape changes due to the recent U.S. administrative policies. For example, in early 2025, the current U.S presidential administration ("the administration") imposed and threatened additional tariffs on imports from various countries.
As of December 31, 2024, we had outstanding indebtedness, net of cash, of $627.3 million, including, through our Operating Partnership, $85.7 million aggregate principal amount of the Notes (as defined below) and $410.0 million drawn on the 2022 Facility (as defined below). As of December 31, 2024, our unused borrowing capacity under our 2022 Facility was $125.0 million.
As of December 31, 2025, we had outstanding indebtedness, net of cash, of $644.5 million, including, through our Operating Partnership, $68.6 million aggregate principal amount of the Notes (as defined below) a nd $426.8 million drawn on the 2025 Facility (as defined below).
Removed
Although we believe qualified replacement could be found for any departures of key executives, the loss of their services could adversely affect our performance and the value of our common shares. 10 Table of Contents Risk related to the redemption of our partnership units in Pillarstone Capital REIT Operating Partnership.
Added
Inflationary pricing may also increase costs associated with real estate acquisitions and construction necessary to complete our development and redevelopment projects. These higher acquisition and construction costs could adversely impact our net investments in real estate and expected yields on our development and redevelopment projects, adversely affecting our financial condition, results of operations, and cash flows over time.
Removed
As set forth in the Amended and Restated Limited Partnership Agreement of Pillarstone OP, dated as of December 8, 2016 (the “Pillarstone Partnership Agreement”), we have the contractual right to have our limited partnership interests in Pillarstone redeemed at our discretion.
Added
As of December 31, 2025, our unused borrowing capacity under our 2025 Facility wa s $323.2 millio n. Obligations under the Notes and the 2025 Facility are guaranteed by the Company and certain subsidiary guarantors.
Removed
However, upon receipt of a redemption notice, Pillarstone OP has the option to pay the applicable redemption price in cash, based on the market value of Pillarstone REIT common shares, or in Pillarstone REIT common shares. On December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”).
Added
In response, some of these countries imposed and threatened additional tariffs on imports from the U.S. How long current tariffs will remain in place, and whether the administration will enact the threatened tariffs or impose entirely new ones is uncertain.
Removed
Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent Whitestone OP from exercising its contractual Redemption Right, on July 12, 2022, Whitestone OP filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement.
Removed
On January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted Whitestone OP from exercising the unfettered contractual redemption right it obtained in connection with its investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed Whitestone OP to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, later enter a monetary judgment against Pillarstone for the difference between the amount Whitestone would have received in or around December 2021 and the current value.
Removed
On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. On March 4, 2024, Pillarstone REIT authorized and filed Pillarstone Bankruptcies. As of the date of this filing, we have not received consideration for the redemption of our equity investment in Pillarstone OP as required by the Pillarstone Partnership Agreement.
Removed
We have filed a claim in the Pillarstone Bankruptcies for the value of our redemption claim along with interest and other costs.
Removed
We intend to pursue collection of amounts due from Pillarstone OP through all means necessary, and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our receivable, formerly our equity investment in Pillarstone OP.
Removed
There can be no assurance as to if or when we will be able to collect the amounts due from Pillarstone OP, and the failure to collect such amounts could harm our business, operating results and financial condition.
Removed
Changes in U.S. administrative policy may lead to significant increases in tariffs for imported goods among other possible changes, which could strain international trade relations and increase the risk that foreign governments implement retaliatory tariffs on goods imported from the United States.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+0 added−0 removed7 unchanged
Biggest changeAs of December 31, 2024, we have not detected any cybersecurity threats, including prior incidents, that have materially impacted the Company, our business strategy, our financial results, or our financial health.
Biggest changeAs of December 31, 2025, we have not detected any cybersecurity threats, including prior incidents, that have materially impacted the Company, our business strategy, our financial results, or our financial health.

Item 2. Properties

Properties — owned and leased real estate

43 edited+8 added−0 removed11 unchanged
Biggest change(3) Whitestone Properties: Ahwatukee Plaza Phoenix 1979 72,650 87 % $ 863 $ 13.65 $ 15.71 Anderson Arbor Austin 2001 89,746 93 % 2,026 24.27 24.68 Anthem Marketplace Phoenix 2000 113,293 97 % 1,773 16.13 16.08 Anthem Marketplace Phase II Phoenix 2019 6,853 100 % 255 37.21 33.85 Arcadia Towne Center Phoenix 1966 69,503 100 % 1,782 25.64 26.88 BLVD Place Houston 2014 216,944 100 % 9,993 46.06 46.41 The Citadel Phoenix 2013 28,547 95 % 628 23.16 21.31 City View Village San Antonio 2005 17,870 90 % 550 34.20 33.95 Dana Park Pad Phoenix 2002 12,000 100 % 335 27.92 29.00 Davenport Village Austin 1999 128,934 96 % 3,702 29.91 29.42 Eldorado Plaza Dallas 2004 219,287 99 % 3,745 17.25 17.48 Fountain Square Phoenix 1986 118,209 88 % 1,999 19.22 19.08 Fulton Ranch Towne Center Phoenix 2005 120,575 94 % 2,373 20.94 21.50 Garden Oaks Shopping Center Houston 1956 106,858 96 % 1,806 17.61 18.13 Gilbert Tuscany Village Phoenix 2009 49,415 100 % 1,076 21.77 22.10 Heritage Dallas 2006 70,431 86 % 1,657 27.36 26.56 HQ Village Dallas 2009 89,134 93 % 2,684 32.38 31.04 Keller Place Dallas 2001 93,541 95 % 1,139 12.82 12.69 Kempwood Plaza Houston 1974 91,302 95 % 1,397 16.11 15.58 La Mirada Phoenix 1997 147,209 99 % 3,858 26.47 27.53 Lake Woodlands Crossing Houston 2018 60,246 94 % 1,900 33.55 33.96 Lakeside Market Dallas 2000 164,899 95 % 4,582 29.25 30.62 Las Colinas Dallas 2000 104,919 98 % 3,137 30.51 30.67 Lion Square Houston 1980 117,592 93 % 2,086 19.07 19.60 The MarketPlace at Central Phoenix 2012 111,130 99 % 1,201 10.92 11.13 Market Street at DC Ranch Phoenix 2003 244,888 96 % 6,400 27.22 28.34 Paradise Plaza Phoenix 1983 125,898 90 % 1,867 16.48 17.00 Parkside Village North Austin 2005 27,045 100 % 940 34.76 35.27 Parkside Village South Austin 2012 90,101 100 % 2,703 30.00 31.92 Pinnacle of Scottsdale Phoenix 1991 113,108 98 % 2,772 25.01 25.58 Pinnacle Phase II Phoenix 2017 27,063 100 % 857 31.67 32.63 The Promenade at Fulton Ranch Phoenix 2007 98,792 93 % 1,473 16.03 17.97 Quinlan Crossing Austin 2012 109,892 97 % 2,831 26.56 27.06 Scottsdale Commons Phoenix 1980 69,482 93 % 1,733 26.82 28.57 Seville Phoenix 1990 90,042 90 % 2,935 36.22 37.11 Shaver Houston 1978 21,926 100 % 395 18.02 17.83 Shops at Pecos Ranch Phoenix 2009 78,767 97 % 2,087 27.32 26.69 Shops at Starwood Dallas 2006 55,385 100 % 1,961 35.41 34.96 The Shops at Williams Trace Houston 1985 132,991 98 % 2,418 18.55 18.61 Starwood Phase II Dallas 2016 35,351 97 % 1,360 39.66 39.78 The Strand at Huebner Oaks San Antonio 2000 73,920 100 % 2,004 27.11 29.00 SugarPark Plaza Houston 1974 95,032 100 % 1,525 16.05 15.26 Sunset at Pinnacle Peak Phoenix 2000 41,530 100 % 1,143 27.52 25.23 Terravita Marketplace Phoenix 1997 102,733 99 % 1,615 15.88 15.64 Town Park Houston 1978 43,526 93 % 1,060 26.19 26.19 Village Shops at Dana Park Phoenix 2002 10,128 100 % 354 34.95 21.43 21 Table of Contents Whitestone REIT and Subsidiaries Property Details As of December 31, 2024 Village Square at Dana Park Phoenix 2009 323,026 87 % 6,816 24.25 25.96 Williams Trace Plaza Houston 1983 129,222 97 % 2,775 22.14 24.68 Windsor Park San Antonio 2012 196,458 85 % 2,188 13.10 13.13 Woodlake Plaza Houston 1974 106,169 57 % 1,110 18.34 18.09 Total/Weighted Average - Whitestone Properties 4,863,562 94 % 109,869 24.03 24.51 Land Held for Development: Anderson Arbor PAD Austin N/A — — — — — BLVD Phase II-B Houston N/A — — — — — Dana Park Development Phoenix N/A — — — — — Eldorado Plaza Development Dallas N/A — — — — — Market Street at DC Ranch Phoenix N/A — — — — — Total/Weighted Average - Land Held For Development (4) — — — — — Grand Total/Weighted Average - Whitestone Properties 4,863,562 94 % $ 109,869 $ 24.03 $ 24.51 (1) Calculated as the tenant’s actual December 31, 2024 base rent (defined as cash base rents including abatements) multiplied by 12.
Biggest changeFt.(3) Whitestone Properties: Ahwatukee Plaza Phoenix 1979 72,650 87 % 898 $ 14.21 $ 13.73 Anderson Arbor Austin 2001 89,746 91 % 2,146 26.28 26.89 Anthem Marketplace Phoenix 2000 113,293 99 % 1,981 17.66 18.09 Anthem Marketplace Phase II Phoenix 2019 6,853 100 % 244 35.60 33.85 Arcadia Towne Center Phoenix 1966 69,503 100 % 1,796 25.84 26.89 Ashford Village Houston 1979 81,519 100 % 1,416 17.37 18.51 BLVD Place Houston 2014 216,944 99 % 9,561 44.52 44.17 The Citadel Phoenix 2013 28,547 57 % 391 24.03 26.06 City View Village San Antonio 2005 17,870 90 % 581 36.13 35.94 Dana Park Pad Phoenix 2002 12,000 100 % 342 28.50 29.25 Davenport Village Austin 1999 128,934 97 % 3,870 30.94 36.00 Eldorado Plaza Dallas 2004 219,287 97 % 3,357 15.78 15.62 Fountain Square Phoenix 1986 118,209 92 % 2,097 19.28 19.02 Fulton Ranch Towne Center Phoenix 2005 120,575 93 % 2,335 20.82 20.86 Garden Oaks Shopping Center Houston 1954 106,858 96 % 1,815 17.69 18.20 Gilbert Tuscany Village Phoenix 2009 49,415 90 % 1,044 23.47 22.87 Heritage Dallas 2006 70,431 96 % 1,965 29.06 32.11 HQ Village Dallas 2009 89,134 95 % 2,876 33.96 33.37 Keller Place Dallas 2001 93,541 97 % 1,200 13.23 13.47 La Mirada Phoenix 1997 147,209 100 % 4,133 28.08 29.89 Lake Woodlands Crossing Houston 2018 60,246 100 % 2,147 35.64 35.85 Lakeside Market Dallas 2000 164,899 93 % 4,724 30.80 31.61 Las Colinas Dallas 2000 104,919 96 % 3,232 32.09 31.46 Lion Square Houston 1980 117,592 96 % 2,198 19.47 19.05 The MarketPlace at Central Phoenix 2012 111,130 99 % 1,281 11.64 11.56 Market Street at DC Ranch Phoenix 2003 244,888 95 % 7,114 30.58 31.92 Paradise Plaza Phoenix 1983 125,898 94 % 2,017 17.04 17.21 Parkside Village North Austin 2005 27,045 100 % 981 36.27 36.01 Parkside Village South Austin 2012 90,101 100 % 2,793 31.00 30.60 Pinnacle of Scottsdale Phoenix 1991 113,108 100 % 2,969 26.25 26.40 Pinnacle Phase II Phoenix 2017 27,063 100 % 929 34.33 31.33 The Promenade at Fulton Ranch Phoenix 2007 98,792 99 % 1,713 17.51 18.89 Quinlan Crossing Austin 2012 109,892 97 % 2,870 26.92 26.40 Scottsdale Commons Phoenix 1980 65,282 100 % 1,792 27.45 27.99 Seville Phoenix 1990 90,042 93 % 3,320 39.65 39.31 Shaver Houston 1978 21,926 100 % 404 18.43 18.15 Shops at Pecos Ranch Phoenix 2009 78,767 98 % 2,184 28.29 27.62 Shops at Starwood Dallas 2006 55,385 94 % 1,918 36.84 36.80 The Shops at Williams Trace Houston 1985 132,991 95 % 2,409 19.07 18.76 Starwood Phase II Dallas 2016 35,351 100 % 1,422 40.23 37.82 The Strand at Huebner Oaks San Antonio 2000 73,920 100 % 2,125 28.75 29.82 San Clemente Austin 2003 31,832 67 % 661 30.99 32.68 South Hulen Shopping Center Dallas 2004 86,907 99 % 2,418 28.10 27.16 Sunset at Pinnacle Peak Phoenix 2000 41,530 98 % 1,074 26.39 28.65 Terravita Marketplace Phoenix 1997 102,733 100 % 2,048 19.94 20.56 Town Park Houston 1978 43,526 93 % 1,092 26.98 26.80 Village Shops at Dana Park Phoenix 2002 10,128 100 % 362 35.74 36.83 Village Square at Dana Park (5) Phoenix 2009 323,026 84 % 7,322 26.98 28.11 21 Table of Contents Whitestone REIT and Subsidiaries Property Details As of December 31, 2025 Year Built/ Gross Leasable Percent Occupied at Annualized Base Rental Revenue Average Base Rental Revenue Per Average Net Effective Annual Base Rent Per Leased Community Name Location Renovated Square Feet 12/31/2025 (in thousands) (1) Sq.
Annualized Rental Percentage of Total Revenue Annualized Base Rental Tenant Name Location (in thousands) Revenues (1) Initial Lease Date Year Expiring Whole Foods Market Houston $ 2,471 2.2 % 9/3/2014 2035 Albertsons Companies, Inc.
Annualized Rental Percentage of Total Revenue Annualized Base Rental Tenant Name Location (in thousands) Revenues (1) Initial Lease Date Year Expiring Whole Foods Market Houston $ 2,471 2.1 % 9/3/2014 2035 Albertsons Companies, Inc.
The annualized rental revenue for the lease that commenced on November 3, 1996, and is scheduled to expire in 2056, was $279,000, which represents approximately 0.3% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on November 3, 1996, and is scheduled to expire in 2056, was $279,000, which represents approximately 0.2% of our total annualized base rental revenue.
(3) Represents (i) the contractual base rent for leases in place as of December 31, 2024, adjusted to a straight-line basis to reflect changes in rental rates throughout the lease term and amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (ii) square footage under commenced leases of December 31, 2024.
(3) Represents (i) the contractual base rent for leases in place as of December 31, 2025, adjusted to a straight-line basis to reflect changes in rental rates throughout the lease term and amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (ii) square footage under commenced leases of December 31, 2025.
Whitestone REIT and Subsidiaries Property Details As of December 31, 2024 Average Percent Annualized Base Base Rental Average Net Effective Year Built/ Gross Leasable Occupied at Rental Revenue Revenue Per Annual Base Rent Per Community Name Location Renovated Square Feet 12/31/2024 (in thousands) (1) Sq. Ft. (2) Leased Sq. Ft.
Whitestone REIT and Subsidiaries Property Details As of December 31, 2025 Year Built/ Gross Leasable Percent Occupied at Annualized Base Rental Revenue Average Base Rental Revenue Per Average Net Effective Annual Base Rent Per Leased Community Name Location Renovated Square Feet 12/31/2025 (in thousands) (1) Sq. Ft. (2) Sq.
(2) As of December 31, 2024, we had five leases with the same tenant occupying space at properties located in Phoenix and Austin. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2034, was $1,099,000, which represents approximately 1.0% of our total annualized base rental revenue.
(2) As of December 31, 2025, we had five leases with the same tenant occupying space at properties located in Phoenix and Austin. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2034, was $1,099,000, which represents approximately 0.9% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on April 8, 2022, and is scheduled to expire in 2029, was $28,000, which represents approximately less than 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on April 8, 2022, and is scheduled to expire in 2029, was $29,000, which represents approximately less than 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on May 8, 1991, and is scheduled to expire in 2026, was $344,000, which represents approximately 0.3% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on May 8, 1991, and is scheduled to expire in 2031, was $344,000, which represents approximately 0.3% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 1, 2000, and is scheduled to expire in 2030, was $353,000, which represents approximately 0.3% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 1, 2000, and is scheduled to expire in 2030, was $388,000, which represents approximately 0.3% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on October 15, 2018, and is scheduled to expire in 2030, was $151,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on October 15, 2018, and is scheduled to expire in 2030, was $135,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 13, 2020, and is scheduled to expire in 2026, was $152,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 13, 2020, and is scheduled to expire in 2026, was $156,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on August 10, 1999, and is scheduled to expire in 2030, was $88,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on August 10, 1999, and is scheduled to expire in 2030, was $94,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 14, 2004, and is scheduled to expire in 2029, was $59,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 14, 2004, and is scheduled to expire in 2029, was $61,000, which represents approximately 0.1% of our total annualized base rental revenue.
The following table summarizes certain information relating to our properties as of December 31, 2024: Average Average Annualized Base Annualized Base Occupancy as of Rental Revenue Rental Revenue Commercial Properties GLA 12/31/2024 (in thousands) (1) Per Sq. Ft.
The following table summarizes certain information relating to our properties as of December 31, 2025: Average Average Annualized Base Annualized Base Occupancy as of Rental Revenue Rental Revenue Commercial Properties GLA 12/31/2025 (in thousands) (1) Per Sq. Ft.
The annualized rental revenue for the lease that commenced on October 19, 2016, and is scheduled to expire in 2030, was $425,000, which represents approximately 0.4% of our total annualized base rental revenue. 23 Table of Contents (3) As of December 31, 2024, we had two leases with the same tenant occupying space at properties located in Houston and San Antonio.
The annualized rental revenue for the lease that commenced on October 19, 2016, and is scheduled to expire in 2030, was $469,000, which represents approximately 0.4% of our total annualized base rental revenue. 23 Table of Contents (3) As of December 31, 2025, we had two leases with the same tenant occupying space at properties located in Houston and San Antonio.
We also believe daily sales of basic items are less sensitive to fluctuations in the business cycle than higher priced retail items. Our largest tenant represented only 2.2% of our total revenues for the year ended December 31, 2024.
We also believe daily sales of basic items are less sensitive to fluctuations in the business cycle than higher priced retail items. Our largest tenant represented only 2.1% of our total revenues for the year ended December 31, 2025.
(2) Calculated as annualized base rent divided by GLA leased as of December 31, 2024. Excludes vacant space as of December 31, 2024. Our largest property, BLVD Place, a retail community purchased on May 26, 2017 and located in Houston, Texas, accounted for 9.6% of our total revenues for the year ended December 31, 2024.
(2) Calculated as annualized base rent divided by GLA leased as of December 31, 2025. Excludes vacant space as of December 31, 2025. Our largest property, BLVD Place, a retail community purchased on May 26, 2017 and located in Houston, Texas, accounted for 9.7% of our total revenues for the year ended December 31, 2025.
Excludes vacant space as of December 31, 2024. Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with generally accepted accounting principles, historical results differ from the annualized amounts. Total abatements for leases in effect as of December 31, 2024 equaled approximately $420,000 for the month ended December 31, 2024.
Excludes vacant space as of December 31, 2025. Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with generally accepted accounting principles, historical results differ from the annualized amounts. Total abatements for leases in effect as of December 31, 2025 equaled approximately $438,000 for the month ended December 31, 2025.
Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with Generally Accepted Accounting Principles (“GAAP”), historical results differ from the annualized amounts. Total abatements for leases in effect as of December 31, 2024 equaled approximately $420,000 for the month ended December 31, 2024.
Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with Generally Accepted Accounting Principles (“GAAP”), historical results differ from the annualized amounts. Total abatements for leases in effect as of December 31, 2025 equaled approximately $438,000 for the month ended December 31, 2025.
The annualized rental revenue for the lease that commenced on July 1, 1997, and is scheduled to expire in 2028, was $59,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 1, 1997, and is scheduled to expir e in 2028, was $59,000, which represents approximately 0.1% of our total annualized base rental revenue.
(2) Calculated as annualized base rent divided by gross leasable area leased as of December 31, 2024. Excludes vacant space as of December 31, 2024.
(2) Calculated as annualized base rent divided by gross leasable area leased as of December 31, 2025. Excludes vacant space as of December 31, 2025.
The annualized rental revenue for the lease that commenced on August 24, 1996, and is scheduled to expire in 2056, was $298,000, which represents approximately 0.3% of our total annualized rental revenue. (6) As of December 31, 2024, we had five leases with the same tenant occupying space at properties in Houston and Phoenix.
The annualized rental revenue for the lease that commenced on August 24, 1996, and is scheduled to expire in 2056, was $298,000, which represents approximately 0.3% of our total annualized rental revenue. (5) As of December 31, 2025, we had six leases with the same tenant occupying space at properties in Houston and Phoenix.
The annualized rental revenue for the lease that commenced on October 25, 2011, and is scheduled to expire in 2030, was $269,000, which represents approximately 0.2% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on October 25, 2011, and is scheduled to expire in 2030, was $170,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 8, 1999, and is scheduled to expire in 2025, was $96,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on July 8, 1999, and is scheduled to expire in 2030, was $115,000, which represents approximately 0.1% of our total annualized base rental revenue.
According to the preliminary report from the United States Census Bureau, Houston and Phoenix ranked fifth and eleventh, respectively, in the largest United States metropolitan statistical areas as of December 31, 2024. The following table sets forth information about the unemployment rate in Houston, Phoenix and nationally during the last six months of 2024. July Aug. Sept. Oct. Nov. Dec.
According to the preliminary report from the United States Census Bureau, Dallas, Houston and Phoenix ranked forth, fifth and eleventh, respectively, in the largest United States metropolitan statistical areas as of December 31, 2025. The following table sets forth information about the unemployment rate in Dallas, Houston, Phoenix and nationally during the last six months of 2025. July Aug. Sept.
The annualized rental revenue for the lease that commenced on November 29, 2022, and is scheduled to expire in 2039, was $971,000, which represents approximately 0.9% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on November 29, 2022, and is scheduled to expire in 2039, was $971,000, which represents approximatel y 0.8% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on October 13, 2021, and is scheduled to expire in 2028, was $136,000, which represents approximately 0.1% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on October 13, 2021, and is scheduled to expire in 2035, was $329,000, which represents approximately 0.3% of our total annualized base rental revenue.
The annualized rental revenue for the lease that commenced on December 4, 2024, and is scheduled to expire in 2040, was $828,000, which represents approximately 0.8% of our total annualized base rental revenue (4) As of December 31, 2024, we had six leases with the same tenant occupying space at properties located in Phoenix.
The annualized rental revenue for the lease that commenced on December 4, 2024, and is scheduled to expire in 2041, was $828,000, which represents approximately 0.7% of our total annualized base rental revenue (4) As of December 31, 2025, we had three leases with the same tenant o ccupying space at properties located in Phoenix and Houston.
The annualized rental revenue for the lease that commenced on June 23, 2023, and is scheduled to expire in 2026, was $42,000, which represents less than 0.1% of our total annualized base rental revenue. (5) As of December 31, 2024, we had three leases with the same tenant occupying space at properties located in Phoenix and Houston.
The annualized rental revenue for the lease that commenced on June 23, 2023, and is scheduled to expire in 2026, was $43,000, which represents less than 0.1% of our total annualized base rental revenue. (7) As of December 31, 2025, we had seven leases with the same tenant occupying space at properties in Austin, Dallas and Phoenix.
The annualized rental revenue for the lease that commenced on August 8, 2016, and is scheduled to expire in 2027, was $84,000, which represents approximately 0.1% of our total annualized base rental revenue. 24 Table of Contents Lease Expirations The following table lists, on an aggregate basis, all of our consolidated scheduled lease expirations over the next 10 years.
The annualized rental revenue for the lease that commenced on May 13, 2002, and is scheduled to expire in 2030, was $373,000, which represents approximately 0.3% of our total annualized base rental revenue. 24 Table of Contents Lease Expirations The following table lists, on an aggregate basis, all of our consolidated scheduled lease expirations over the next 10 years.
Source: Bureau of Labor Statistics 20 Table of Contents General Physical and Economic Attributes The following table sets forth certain information relating to each of our properties owned as of December 31, 2024.
(2) Not seasonally adjusted. (P) Represents preliminary estimates. Source: Bureau of Labor Statistics 20 Table of Contents General Physical and Economic Attributes The following table sets forth certain information relating to each of our properties owned as of December 31, 2025.
The annualized rental revenue for the lease that commenced on April 5, 2024, and is scheduled to expire in 2035, was $139,000, which represents approximately 0.1% of our total annualized base rental revenue. (7) As of December 31, 2024, we had six leases with the same tenant occupying space at properties in Dallas and Phoenix.
The annualized rental revenue for the lease that commenced on January 14, 2024, and is scheduled to expire in 2036, was $144,000, which represents approximately 0.1% of our total annualized base rental revenue. (8) As of December, 2025, we had two leases with the same tenant occupying space at properties located in Phoenix and Dallas.
An additional 25 of our wholly-owned properties are located in the greater Phoenix metropolitan statistical area and represent 42% of our revenue for the year ended December 31, 2024.
An additional 25 of o ur wholly-owned properties are located in the greater Phoenix metropolitan statistical area and repre sent 43% o f our revenue for the year ended December 31, 2025.
Dallas 483 0.4 % 12/15/2000 2027 Capital Area Multispecialty Providers Austin 458 0.4 % 5/23/2014 2026 Original Ninfas LP Houston 437 0.4 % 8/29/2018 2029 $ 15,722 14.2 % (1) Annualized Base Rental Revenues represents the monthly base rent as of December 31, 2024 for each applicable tenant multiplied by 12.
Dallas 483 0.4 % 12/15/2000 2027 Capital Area Multispecialty Providers Austin 465 0.4 % 5/23/2014 2026 $ 16,663 14.2 % (1) Annualized Base Rental Revenues represents the monthly base rent as of December 31, 2025 for each applicable tenant multiplied by 12.
BLVD also accounted for 15.8% of our real estate assets, net of accumulated depreciation, for the year ended December 31, 2024. As of December 31, 2024, approximately $136.3 million of our total debt of $632.5 million was secured by four of our properties with a combined net book value of $221.6 million.
BLVD also accounted for 14.6% of our real estate assets, net of accumulated depreciation, for the year ended December 31, 2025. As of December 31, 2025, approximately $154.0 million of our total debt of $649.4 million was secured by five of our properties with a combined net book value of $254.4 million.
(2) Austin and Phoenix 2,268 2.1 % 5/8/1991, 4/1/2014, 7/1/2000, 10/19/2016 and 4/1/2014 2026, 2029, 2030, 2030 and 2034 Frost Bank Houston 1,961 1.8 % 7/1/2014 2029 Fitness Alliance, LLC (3) Houston and San Antonio 1,800 1.6 % 11/29/2022 and 12/04/2024 2039 and 2040 Newmark Real Estate of Houston LLC Houston 1,337 1.2 % 10/1/2015 2026 Soul Concepts, LLC (4) Phoenix 778 0.8 % 10/25/2011, 10/15/2018, 07/13/2020, 10/13/2021, 04/08/2022 and 06/23/2023 2030, 2030, 2026, 2028, 2029 and 2026 Walgreens & Co.
(2) Austin and Phoenix 2,347 2.0 % 5/8/1991, 4/1/2014, 4/1/2014, 7/1/2000 and 10/19/2016 2029, 2030, 2030, 2031, 2034 and 2037 Frost Bank Houston 1,977 1.7 % 7/1/2014 2029 Fitness Alliance, LLC (3) Houston and San Antonio 1,800 1.5 % 11/29/2022 and 12/04/2024 2039 and 2041 Newmark Real Estate of Houston LLC Houston 1,364 1.2 % 10/1/2015 2026 Walgreens & Co.
(2) Whitestone 4,863,562 94 % $ 109,869 $ 24.51 (1) Calculated as the tenant’s actual December 31, 2024 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of December 31, 2024.
(2) Whitestone 4,857,508 95 % $ 116,640 $ 25.28 (1) Calculated as the tenant’s actual December 31, 2025 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of December 31, 2025.
Item 2. Properties. General As of December 31, 2024, we wholly-owned 55 commercial properties, including 12 properties in Houston, nine properties in Dallas-Fort Worth, three properties in San Antonio, six properties in Austin, and 25 properties in the Scottsdale and Phoenix, Arizona metropolitan areas. Our tenants consist of national, regional and local businesses.
Item 2. Properties. General As of December 31, 2025, we wholly-o wned 56 com mercial proper ties, including 10 properties in Houston, 11 properties in Dallas, three properties in San Antonio, seven properties in Austin, and 25 pro perties in the Scottsdale and Phoenix, Arizona metropolitan areas. Our tenants consist of national, regional and local businesses.
Location of Properties Of our 55 wholly-owned properties, 12 are located in the greater Houston metropolitan statistical area. These properties represent 26% of our revenue for the year ended December 31, 2024.
Location of Properties Of our 56 wholly-owned propertie s, 11 are located in the greater Dallas metropolitan statistical area. These properties repre sent 19% of our r evenue for the year ended December 31, 2025. 10 are located in the greater Houston metropolitan statistical area. These properties represent 24% of our revenue for the year ended December 31, 2025.
National (1) 4.2 % 4.2 % 4.1 % 4.1 % 4.2 % 4.1 % Houston (2) 4.9 % 4.7 % 4.4 % 4.5 % 4.5 % 4.1 % (P) Phoenix (2) 3.9 % 3.5 % 3.4 % 3.3 % 3.5 % 3.1 % (P) (1) Seasonally adjusted. (2) Not seasonally adjusted. (P) Represents preliminary estimates.
National (1) 4.3 % 4.3 % N/A 4.4 % 4.5 % 4.4 % Dallas (2) 4.0 % 4.4 % 4.2 % N/A 4.0 % 3.7 % (P) Houston (2) 4.5 % 5.0 % 4.8 % N/A 4.5 % 4.2 % (P) Phoenix (2) 4.1 % 4.2 % 4.1 % N/A 3.8 % 3.5 % (P) (1) Seasonally adjusted.
(4) As of December 31, 2024, these parcels of land were held for development and, therefore, had no gross leasable area. 22 Table of Contents Significant Tenants The following table sets forth information about our 15 largest tenants as of December 31, 2024, based upon consolidated annualized rental revenues at December 31, 2024.
(5) Includes land parcel subject to ground lease. 22 Table of Contents Significant Tenants The following table sets forth information about our 15 largest tenants as of December 31, 2025, based upon consolidated annualized rental revenues at December 31, 2025.
(5) Houston and Phoenix 767 0.7 % 11/14/1982, 8/24/1996 and 11/3/1996 2027, 2056 and 2056 Alamo Drafthouse Cinema Austin 740 0.7 % 2/1/2012 2031 Dollar Tree (6) Houston and Phoenix 679 0.6 % 6/29/2001, 11/8/2009, 8/8/2018, 8/10/1999, and 04/05/2024 2026, 2027, 2028, 2030 and 2035 Total Wine Houston 564 0.5 % 11/27/2018 2029 Starbucks Corporation (7) Dallas and Phoenix 491 0.4 % 8/8/2016, 5/29/2003, 7/1/1997, 7/14/2004, 7/8/1999 and 10/15/2001 2027, 2028, 2028, 2029, 2025, 2034 Regus Corporation Houston 488 0.4 % 5/23/2014 2025 Kroger Co.
Houston 758 0.6 % 12/31/2024 2036 Alamo Drafthouse Cinema Austin 740 0.6 % 2/1/2012 2031 Starbucks Corporation (7) Austin, Dallas and Phoenix 656 0.6 % 8/8/2016, 5/29/2003, 7/1/1997, 7/14/2004, 7/8/1999, 10/15/2001 and 1/14/2024 2027, 2028, 2028, 2029, 2030, 2034, 2036 Barnes & Noble Booksellers, Inc.
Annualized Base Rent GLA as of December 31, 2024 Number of Approximate Percent of Amount Percent of Year Leases Square Feet Total (in thousands) Total 2025 463 750,523 15.4 % $ 17,715,094 16.1 % 2026 194 653,031 13.4 % 14,321,063 13.0 % 2027 202 649,649 13.4 % 16,031,485 14.6 % 2028 169 566,053 11.6 % 14,133,294 12.9 % 2029 160 628,572 12.9 % 15,261,505 13.9 % 2030 92 390,087 8.0 % 8,664,199 7.9 % 2031 34 150,952 3.1 % 4,333,676 3.9 % 2032 36 179,518 3.7 % 4,537,987 4.1 % 2033 20 103,729 2.1 % 2,521,401 2.3 % 2034 32 208,084 4.3 % 4,578,776 4.2 % Total 1,402 4,280,198 87.9 % $ 102,098,480 92.9 % Insurance We believe that we have property and liability insurance with reputable, commercially rated companies.
Annualized Base Rent GLA as of December 31, 2025 Number of Approximate Percent of Amount Percent of Year Leases Square Feet Total (in thousands) Total 2026 436 666,008 13.7 % $ 17,138 14.7 % 2027 215 730,223 15.0 % 17,619 15.1 % 2028 195 558,389 11.5 % 14,847 12.7 % 2029 167 666,202 13.7 % 16,739 14.4 % 2030 190 656,877 13.5 % 16,663 14.3 % 2031 82 329,593 6.8 % 8,329 7.1 % 2032 38 185,245 3.8 % 4,911 4.2 % 2033 27 127,947 2.6 % 3,296 2.8 % 2034 32 200,559 4.1 % 4,898 4.2 % 2035 32 200,889 4.1 % 6,152 5.3 % Total 1,414 4,321,932 89 % $ 110,592 94.8 % Insurance We believe that we have property and liability insurance with reputable, commercially rated companies.
Added
Ft.(3) Williams Trace Plaza Houston 1983 129,222 96 % 2,769 22.32 22.20 Windsor Park San Antonio 2012 196,458 85 % 2,188 13.10 13.49 World Cup Plaza Dallas 2007 90,391 87 % 2,116 26.91 28.83 Total/Weighted Average - Whitestone Properties 4,857,508 95 % 116,640 25.28 25.73 Land Held for Development: Anderson Arbor PAD Austin N/A — — % — — — BLVD Phase II-B Houston N/A — — % — — — Dana Park Development Phoenix N/A — — % — — — Eldorado Plaza Development Dallas N/A — — % — — — Market Street at DC Ranch Phoenix N/A — — % — — — Total/Weighted Average - Land Held For Development (4) — — % — — — Grand Total/Weighted Average - Whitestone Properties 4,857,508 95 % $ 116,640 $ 25.28 $ 25.73 (1) Calculated as the tenant’s actual December 31, 2025 base rent (defined as cash base rents including abatements) multiplied by 12.
Added
(4) As of December 31, 2025, these parcels of land were held for development and, therefore, had no gross leasable area.
Added
(4) Houston and Phoenix 767 0.7 % 11/14/1982, 8/24/1996 and 11/3/1996 2027, 2056 and 2056 Dollar Tree (5) Houston and Phoenix 775 0.7 % 6/29/2001, 11/8/2009, 8/8/2018, 8/10/1999, 04/05/2024, and 10/31/2025 2026, 2027, 2027, 2028, 2030 and 2035 Soul Concepts, LLC (6) Phoenix 862 0.7 % 10/25/2011, 10/15/2018, 07/13/2020, 10/13/2021, 04/08/2022 and 06/23/2023 2026, 2026, 2029, 2030, 2030 and 2035 Cactus Café Uptown Houston, Inc.
Added
(8) Phoenix and Dallas 634 0.5 % 3/3/2004 and 5/13/2002 2035 and 2030 Total Wine Houston 564 0.5 % 11/27/2018 2029 Kroger Co.
Added
The annualized rental revenue for the lease that commenced on April 5, 2024, and is scheduled to expire in 2035, was $139,000, which represents approximately 0.1% of our total annualized base rental revenue.
Added
The annualized rental revenue for the lease that commenced on October 31, 2025, and is scheduled to expire in 2027, was $91,000, which represents approximately 0.1% of our total annualized base rental revenue. (6) As of December 31, 2025, we had six leases with the same tenant occupying space at properties located in P hoenix.
Added
The annualized rental revenue for the lease that commenced on August 8, 2016, and is scheduled to expire in 2027, was $84,000, which represents approximately 0.1% of our total annualized base rental revenue.
Added
The annualized rental revenue for the lease that commenced on March 3, 2004, and is scheduled to expire in 2035, was $261,000, which represents approximately 0.2% of our total annualized base rental revenue.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+4 added−1 removed3 unchanged
Biggest changeItem 5. Market for Registrant ’ s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities. Market Information Common Shares Our common shares are traded on the NYSE under the ticker symbol “WSR.” As of March 11, 2025, we had 50,894,945 common shares of beneficial interest outstanding held by a total of 709 shareholders of record.
Biggest changeMarket Information Common Shares Our common shares are traded on the NYSE under the ticker symbol “WSR.” As of March 3, 2026, we ha d 51,391,734 co mmon shares of beneficial interest outstanding held by a total of 662 s hareholders of record.
The graph assumes that the value of the investment in our common shares and in the S&P 500 Index, the FTSE NAREIT Equity REITs Index and the FTSE NAREIT Equity Shopping Centers Index was $100 at December 31, 2019, and all dividends were reinvested.
The graph assumes that the value of the investment in our common shares and in the S&P 500 Index, the FTSE NAREIT Equity REITs Index and the FTSE NAREIT Equity Shopping Centers Index was $100 at December 31, 2020, and all dividends were reinvested.
Performance Graph The following graph compares the total shareholder returns of the Company's common shares to the Standard & Poor's 500 Index (“S&P 500 Index”), the Financial Times Stock Exchange (“FTSE”) National Association of Real Estate Investment Trusts (“NAREIT”) Equity REITs Index (“FTSE NAREIT Equity REITs Index”), and to the FTSE NAREIT Equity Shopping Centers Index from December 31, 2019 to December 31, 2024.
Performance Graph The following graph compares the total shareholder returns of the Company's common shares to the Standard & Poor's 500 Index (“S&P 500 Index”), the Financial Times Stock Exchange (“FTSE”) National Association of Real Estate Investment Trusts (“NAREIT”) Equity REITs Index (“FTSE NAREIT Equity REITs Index”), and to the FTSE NAREIT Equity Shopping Centers Index from December 31, 2020 to December 31, 2025.
The closing price of our common shares on December 31, 2019 (on which the graph is based) was $13.62. The past shareholder return shown on the following graph is not necessarily indicative of future performance.
The closing price of our common shares on December 31, 2020 (on which the graph is based) was $7.97. T he past shareholder return shown on the following graph is not necessarily indicative of future performance.
Removed
On March 11, 2025, the closing price of our common shares reported on the NYSE was $14.09 per share. Our current quarterly distribution is $0.12375 per share. On December 4, 2024, we announced an increase of our quarterly distribution to $0.135 per common share and OP unit, equal to a monthly distribution of $0.045, beginning with the January 2025 distribution.
Added
Item 5. Market for Registrant ’ s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.
Added
On March 3, 2026, the closing price of our common shares reported on the NYSE was $15.13 per share. On December 18, 2025, the Board of Trustees of Whitestone REIT approved a change to the Company’s dividend payment schedule from a monthly dividend to a quarterly dividend.
Added
In connection with this change, the Board declared a quarterly cash dividend of $0.1425 per share on the Company’s common shares and $0.1425 per unit on the Company’s operating partnership units for the first quarter of 2026. The declared quarterly dividend represents a 5.6% increase over the Company’s previous quarterly dividend amount.
Added
The dividend will be payable on March 30, 2026 to shareholders and unitholders of record as of the close of business on March 16, 2026.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

111 edited+49 added−33 removed102 unchanged
Biggest changeUses of Cash • Payments of notes payable of $66,016,000 compared to $30,945,000; • Acquisition of real estate of $55,751,000 compared to $25,474,000; • Payment of dividends and distributions to common shareholders and OP unit holders of $24,893,000 compared to $24,016,000; • Additions to real estate of $22,410,000 compared to $17,055,000; • Repurchase of common shares of $2,641,000 compared to $525,000; • Net (proceeds from) payment of credit facility of $21,000,000 compared to ($42,500,000); • Payment of loan originations cost of $789,000 compared to $0; • Payment of exchange offering cost of $81,000 compared to $0; and • Payment of finance lease liability of $26,000 compared to $14,000.
Biggest changeThe decrease of $8,010,000 was primarily the result of the following: Sources of Cash • Proceeds from borrowings under unsecured term loan of $375,000,000 for the year ended December 31, 2025, compared to $0 for the year ended December 31, 2024; • Cash flow from operations of $50,773,000 for the year ended December 31, 2025, compared to cash flow from operations of $58,227,000 for the year ended December 31, 2024; • Net proceeds from sale of properties of $42,234,000 for the year ended December 31, 2025, compared to $52,004,000 for the year ended December 31, 2024; • Receipt of funds from real estate partnership for interest redemption of $33,354,000 for the year ended December 31, 2025, compared to $0 for the year ended December 31, 2024; and • Recei pt of funds from real estate partnership for loan repa yment of $13,633,000 f or the year ended December 31, 2025, compared to $0 for the year ended December 31, 2024 Uses of Cash • Re payment of borrowings under unsecured term lo an of $285,000,000 fo r the year ended December 31, 2025, compared to $0 for the year ended December 31, 2024; • Acquisition of real estate of $86,156,000 for the year ended December 31, 2025, compared to $55,751,000 for the year ended December 31, 2024; • Net proceeds payments of revolving credit facilit y of $73,209,000 f or the year ended December 31, 2025, compare d to $21,000,000 f or the year ended December 31, 2024; • Payment of dividends and distributions to common shareholders and OP unit holders of $27,754,000 for the year ended December 31, 2025, compared to $24,893,000 for the year ended December 31, 2024; • Additions to real estate of $24,362,000 for the year ended December 31, 2025, compared to $22,410,000 for the year ended December 31, 2024; • Payments of notes payable of $17,572,000 for the year ended December 31, 2025, compared to $66,016,000 for the year ended December 31, 2024; • Payment of loan originations cost of $6,643,000 for the year ended December 31, 2025, compared to $789,000 for the year ended December 31, 2024; • Repurchase of common shares from employees to satisfy tax withholding obligations upon vesting of equity awards of $2,268,000 for the year ended December 31, 2025, compared to $2,641,000 for the year ended December 31, 2024; and • Payment of finance lease liability of $40,000 for the year ended December 31, 2025, compared to $26,000 for the year ended December 31, 2024.
Our financial instruments consist primarily of cash, cash equivalents, accounts receivable and accounts and notes payable. The carrying value of cash, cash equivalents, accounts receivable and accounts payable are representative of their respective fair values due to their short-term nature.
Our financial instruments consist primarily of cash, cash equivalents, accounts receivable and accounts payable and notes payable. The carrying value of cash, cash equivalents, accounts receivable and accounts payable are representative of their respective fair values due to their short-term nature.
Because Pillarstone OP financial statements as of and for the years ended December 31, 2024, 2023 and 2022 have not been made available to us, we have estimated depreciation and amortization, loss (gain) on sale or disposal of properties or assets of real estate partnership, and default interest on debt of real estate partnership based on the information available to us at the time of this report.
Because Pillarstone OP financial statements as of and for the years ended December 31, 2024 and 2023 have not been made available to us, we have estimated depreciation and amortization, loss (gain) on sale or disposal of properties or assets of real estate partnership, and default interest on debt of real estate partnership based on the information available to us at the time of this report.
Because Pillarstone OP financial statements as of and for the years ended December 31, 2024, 2023 and 2022 have not been made available to us, we have estimated deficit in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this report.
Because Pillarstone OP financial statements as of and for the years ended December 31, 2024 and 2023 have not been made available to us, we have estimated deficit in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this report.
(2) On November 6, 2024, we completed the sale of Providence, located in Houston, Texas, for $16.3 million. We recorded a gain on sale of $11.9 million. On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million.
On November 6, 2024, we completed the sale of Providence, located in Houston, Texas, for $16.3 million. We recorded a gain on sale of $11.9 million. On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million.
We recorded a gain on sale of $11.9 million. On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million. We recorded a gain on sale of $3.6 million.
We recorded a gain on sale of $6.6 million. On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million. We recorded a gain on sale of $3.6 million.
We seek to continually upgrade our portfolio by opportunistically selling properties that do not have the potential to meet our Community Centered Property® strategy and redeploying the sale proceeds into properties that better fit our strategy.
Property Dispositions. We seek to continually upgrade our portfolio by opportunistically selling properties that do not have the potential to meet our Community Centered Property® strategy and redeploying the sale proceeds into properties that better fit our strategy.
Liquidity and Capital Resources Our short-term liquidity requirements consist primarily of distributions to holders of our common shares and OP units, including those required to maintain our REIT status and satisfy our current quarterly distribution target of $0.135 per share and OP unit, recurring expenditures, such as repairs and maintenance of our properties, non-recurring expenditures, such as capital improvements and tenant improvements, debt service requirements, and, potentially, acquisitions of additional properties.
Liquidity and Capital Resources Our short-term liquidity requirements consist primarily of distributions to holders of our common shares and OP units, including those required to maintain our REIT status and satisfy our current quarterly distribution target of $0.1425 per share and OP unit, recurring expenditures, such as repairs and maintenance of our properties, non-recurring expenditures, such as capital improvements and tenant improvements, debt service requirements, and, potentially, acquisitions of additional properties.
Our cash flow hedges are determined using Level 2 inputs under ASC 820. Level 2 inputs represent quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations whose inputs are observable. As of December 31, 2024, we consider our cash flow hedges to be highly effective. Recent Accounting Pronouncements.
Our cash flow hedges are determined using Level 2 inputs under ASC 820. Level 2 inputs represent quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations whose inputs are observable. As of December 31, 2025, we consider our cash flow hedges to be highly effective. Recent Accounting Pronouncements.
The impact of a 1% increase or decrease in interest rates on our non-hedged variable rate debt would result in a decrease or increase of annual net income of approximately $0.8 million, respectively. Refer to “ Item 1A - Risk Factors ” in this Annual Report on Form 10-K for additional information.
The impact of a 1% increase or decrease in interest rates on our non-hedged variable rate debt would result in a decrease or increase of annual net income of approximately $0.5 million, respectively. Refer to “ Item 1A - Risk Factors ” in this Annual Report on Form 10-K for additional information.
Our loans contain restrictions that would require the payment of prepayment penalties for the acceleration of outstanding debt and are secured by deeds of trust on certain of our properties and by assignment of the rents and leases associated with those properties. As of December 31, 2024, we were in compliance with all loan covenants.
Our loans contain restrictions that would require the payment of prepayment penalties for the acceleration of outstanding debt and are secured by deeds of trust on certain of our properties and by assignment of the rents and leases associated with those properties. As of December 31, 2025, we were in compliance with all loan covenants.
If impairment is indicated, a loss will be recorded for the amount by which the carrying value of the property exceeds its fair value. Management has determined that there has been no impairment in the carrying value of our real estate assets as of December 31, 2024. Accrued Rents and Accounts Receivable.
If impairment is indicated, a loss will be recorded for the amount by which the carrying value of the property exceeds its fair value. Management has determined that there has been no impairment in the carrying value of our real estate assets as of December 31, 2025. Accrued Rents and Accounts Receivable.
(3) We define “Same Stores” as properties that have been owned during the entire period being compared. For purposes of comparing the twelve months ended December 31, 2024 to the twelve months ended December 31, 2023, Same Stores include properties owned before January 1, 2023 and not sold before December 31, 2024.
(3) We define “Same Stores” as properties that have been owned during the entire period being compared. For purposes of comparing the twelve months ended December 31, 2025 to the twelve months ended December 31, 2024, Same Stores include properties owned before January 1, 2024 and not sold before December 31, 2025.
We recorded a gain on sale of $3.6 million. On March 27, 2024, we completed the sale of Mercado at Scottsdale Ranch, located in Phoenix, Arizona, for an aggregate $26.5 million. We recorded a gain on sale of $6.6 million. On December 20, 2023 we completed the sale of Spoerlein Commons, located in Buffalo Grove, Illinois, for $7.4 million.
We recorded a gain on sale of $3.6 million. On March 27, 2024, we completed the sale of Mercado at Scottsdale Ranch, located in Phoenix, Arizona, for $26.5 million. We recorded a gain on sale of $6.6 million. On December 20, 2023 we completed the sale of Spoerlein Commons, located in Buffalo Grove, Illinois, for $7.4 million.
On March 4, 2024, Pillarstone Capital REIT (“Pillarstone REIT”) authorized and filed a Chapter 11 bankruptcy of itself, Pillarstone OP, and all of its remaining special purpose entities in the United States Bankruptcy Court for the Northern District of Texas (the “Pillarstone Bankruptcies”).
On March 4, 2024, Pillarstone Capital REIT (“Pillarstone REIT”) authorized and filed a Chapter 11 bankruptcy (the “Pillarstone Bankruptcies”) of itself, Pillarstone OP, and all of its remaining special purpose entities in the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”).
The following is a summary of the Company’s leasing activity for the year ended December 31, 2024: Number of Leases Signed GLA Signed Weighted Average Lease Term (2) TI and Incentives per Sq. Ft. (3) Contractual Rent Per Sq. Ft. (4) Prior Contractual Rent Per Sq. Ft.
The following is a summary of the Company’s leasing activity for the year ended December 31, 2025: Number of Leases Signed GLA Signed Weighted Average Lease Term (2) TI and Incentives per Sq. Ft. (3) Contractual Rent Per Sq. Ft. (4) Prior Contractual Rent Per Sq. Ft.
Our acquisition targets are properties that fit our Community Centered Properties® strategy, primarily in and around Phoenix, Dallas-Fort Worth, San Antonio and Houston. We may acquire properties in other high growth metropolitan areas in the future.
Our acquisition targets are properties that fit our Community Centered Properties® strategy, primarily in and around Phoenix, Dallas, San Antonio and Houston. We may acquire properties in other high growth metropolitan areas in the future.
The Company, each direct and indirect material subsidiary of the Operating Partnership and any other subsidiary of the Operating Partnership that is a guarantor under any unsecured ratable debt will serve as a guarantor for funds borrowed by the Operating Partnership under the 2022 Facility.
The Company, each direct and indirect material subsidiary of the Operating Partnership and any other subsidiary of the Operating Partnership that is a guarantor under any unsecured ratable debt will serve as a guarantor for funds borrowed by the Operating Partnership under the 2025 Facility.
For purposes of comparing the twelve months ended December 31, 2024 to the twelve months ended December 31, 2023, Non-Same Stores include properties acquired between January 1, 2023 and December 31, 2024 and properties sold between January 1, 2023 and December 31, 2024, but not included in discontinued operations.
For purposes of comparing the twelve months ended December 31, 2025 to the twelve months ended December 31, 2024, Non-Same Stores include properties acquired between January 1, 2024 and December 31, 2025 and properties sold between January 1, 2024 and December 31, 2025, but not included in discontinued operations.
Although the Texas Margin Tax is not an income tax, Financial Accounting Standards Board (“FASB”) ASC 740, “ Income Taxes ” (“ASC 740”) applies to the Texas Margin Tax. As of December 31, 2024, 2023 and 2022, we recorded a margin tax provision of $0.5 million, $0.5 million and $0.4 million, respectively. Fair Value of Financial Instruments.
Although the Texas Margin Tax is not an income tax, Financial Accounting Standards Board (“FASB”) ASC 740, “ Income Taxes ” (“ASC 740”) applies to the Texas Margin Tax. As of December 31, 2025, 2024 and 2023, we recorded a margin tax provision of $0.5 million, $0.5 million and $0.5 million, respectively. Fair Value of Financial Instruments.
On June 30, 2023, we completed the sale of Westchase, located in Houston, Texas, for $7.8 million. We recorded a gain on sale of $4.6 million. On June 30, 2023, we completed the sale of Sunridge, located in Houston, Texas, for $6.7 million. We recorded a gain on sale of $5.0 million.
We recorded a loss on sale of $0.7 million. On June 30, 2023, we completed the sale of Westchase, located in Houston, Texas, for $7.8 million. We recorded a gain on sale of $4.6 million. On June 30, 2023, we completed the sale of Sunridge, located in Houston, Texas, for $6.7 million.
The capitalization of such costs ceases when the property, or any completed portion, becomes available for occupancy. For the year ended December 31, 2024, approximately $ 564,000 and $ 182,000 in interest expense and real estate taxes, respectively, were capitalized.
The capitalization of such costs ceases when the property, or any completed portion, becomes available for occupancy. For the year ended December 31, 2025, approximately $562,000 and $186,000 in interest expense and real estate taxes, respectively, were capitalized. For the year ended December 31, 2024, approximately $564,000 and $182,000 in interest expense and real estate taxes, respectively, were capitalized.
For purposes of comparing the year ended December 31, 2024 to the year ended December 31, 2023, Same Stores include properties owned during the entire period from January 1, 2023 to December 31, 2024.
For purposes of comparing the year ended December 31, 2025 to the year ended December 31, 2024, Same Stores include properties owned during the entire period from January 1, 2024 to December 31, 2025.
For the year ended December 31, 2023, approximately $552,000 and $262,000 in interest expense and real estate taxes, respectively, were capitalized. For the year ended December 31, 2022, approximately $455,000 and $281,000 in interest expense and real estate taxes, respectively, were capitalized. 39 Table of Contents Acquired Properties and Acquired Lease Intangibles.
For the year ended December 31, 2023, approximately $552,000 and $262,000 in interest expense and real estate taxes, respectively, were capitalized. 39 Table of Contents Acquired Properties and Acquired Lease Intangibles.
“Base Rate” means, for any day, the higher of: (a) the Administrative Agent’s prime commercial rate, (b) the sum of (i) the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York for such day, plus (ii) 0.50%, or (c) the sum of (i) Adjusted Term SOFR for a one-month tenor in effect on such day plus (ii) 1.10%.
Base Rate means, for any day, the highest of: (a) the Administrative Agent’s prime commercial rate, (b) the sum of (i) the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York for such day, plus (ii) 0.50%, or (c) the sum of (i) Term SOFR for a one-month tenor in effect on such day plus (ii) 1.10%.
We anticipate that cash flows from operating activities and our borrowing capacity under the 2022 Facility will provide adequate capital for our distributions, working capital requirements, anticipated capital expenditures and scheduled debt payments in the short term.
We anticipate that cash flows from operating activities and our borrowing capacity under our 2025 Facility will provide adequate capital for our working capital requirements, anticipated capital expenditures, acquisitions and scheduled debt payments in the short term.
(2) A portion of the unsecured line of credit includes an interest rate swap to fix the SOFR portion of the loan at 3.71%. (3) Series One Incremental Term Loan includes an interest rate swap that fixed the term loan rate at 5.165% through January 31, 2028.
(3) Series One Incremental Term Loan included an interest rate swap that fixed the term loan rate at 5.165% through January 31, 2028. (4) A portion of the unsecured line of credit included an interest rate swap to fix the SOFR portion of the loan at 3.71%.
Bank National Association, as co-lead arrangers and joint book runners. 33 Table of Contents The principal of the Series A Notes began to amortize on March 22, 2023 with annual principal payments of approximately $7.1 million. The principal of the Series B Notes will begin to amortize on March 22, 2025 with annual principal payments of $10.0 million.
Bank National Association, as co-lead arrangers and joint book runners. The principal of the Series A Notes began to amortize on March 22, 2023 with annual principal payments of approximately $7.1 million. The principal of the Series B Notes began to amortize on March 22, 2025 with annual principal payments of $10.0 million.
(2) The Same Store recoveries revenue increase of $2,730,000 is primarily due to a higher recovery rate and from the increased average occupancy at our properties. (3) During the year ended December 31, 2024 and 2023, Same Store bad debt includes an adjustment of $201,000 and $340,000, respectively, from cash basis accounting.
(2) The Same Store recoveries revenue increase of $2,959,000 is primarily due to a higher recovery rate and from the increased average occupancy at our properties. (3) During the year ended December 31, 2025 and 2024, Same Store bad debt includes an adjustment of $28,000 and $201,000, respectively, from cash basis accounting.
Because Pillarstone OP financial statements as of and for the years ended December 31, 2024 and 2023 have not been made available to us, we have estimated equity in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this report.
Because Pillarstone OP financial statements for the year ended December 31, 2024 have not been made available to us, we have estimated deficit in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this report.
On September 9, 2022, we entered into eleven equity distribution agreements with certain sales agents names therein for an at-the-market equity distribution program (the “2022 equity distribution agreements”) providing for the issuance and sale of up to an aggregate of $100 million of the Company’s common shares pursuant to our Registration Statement.
On September 9, 2022, we entered into eleven equity distribution agreements with certain sales agents names therein for an at-the-market equity distribution program (the “2022 Equity Distribution Agreements”) providing for the issuance and sale of up to an aggregate of $100 million of the Company’s common shares pursuant to the 2022 Registration Statement in “at the market” offerings” (the “2022 ATM Program”).
As of December 31, 2024, subject to any potential future paydowns or increases in the borrowing base, we have $125.0 million remaining availability under the revolving credit facility. 30 Table of Contents Our ability to access the capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about our Company.
As of December 31, 2025, subject to any potential future paydowns or increases in the borrowing base, we have $220.4 mil lion remaining availability under the revolving credit facility. 30 Table of Contents Our ability to access the capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about our Company.
(4) During the year ended December 31, 2024 and 2023, Same Store other revenues includes $1,961,000 and $687,000 in termination fee income, respectively.
(4) During the year ended December 31, 2025 and 2024, Same Store other revenues includes $892,000 and $1,961,000 in termination fee income, respectively.
The 2022 Facility contains customary terms and conditions, including, without limitation, customary representations and warranties and affirmative and negative covenants including, without limitation, information reporting requirements, limitations on investments, acquisitions, loans and advances, mergers, consolidations and sales, incurrence of liens, dividends and restricted payments.
The A&R Credit Agreement contains customary terms and conditions, including, without limitation, customary representations and warranties and affirmative and negative covenants including, without limitation, information reporting requirements, limitations on investments, acquisitions, loans and advances, mergers, consolidations and sales, incurrence of liens, dividends and restricted payments.
(the “Operating Partnership”), amended its Note Purchase and Guarantee Agreement originally executed on March 22, 2019 (the “Existing Note Agreement”), pursuant to the terms and conditions of an Amendment No. 1 to Note Purchase and Guaranty Agreement, dated as of December 16, 2022 (the Existing Note Purchase Agreement, as so amended, the “Amended Note Agreement”), by and among the Company and the Operating Partnership, together with certain subsidiary guarantors as initial guarantor parties thereto and The Prudential Insurance Company of America and the various other purchasers named therein.
(the “Operating Partnership”), amended its Note Purchase and Guarantee Agreement originally executed on March 22, 2019 (the “Existing Note Agreement”), pursuant to the terms and conditions of an Amendment No. 1 to Note Purchase and Guaranty Agreement, dated as of December 16, 2022 (the Existing Note Purchase Agreement, as so amended, the “Amended Note Agreement”), by and among the Company and the Operating Partnership, together with certain subsidiary guarantors as initial guarantor parties thereto and The Prudential Insurance Company of America and the various other purchasers named therein. 33 Table of Contents Neither the term of the Existing Note Agreement, the interest rate, nor the principal amounts, were amended.
The debt matured on October 4, 2023, and was in default, as Pillarstone OP failed to refinance the loan. On October 24, 2023, the Lender provided notice of a planned foreclosure sale on December 5, 2023.
The loan was also secured by the Uptown Tower property. The debt matured on October 4, 2023, and was in default, as Pillarstone OP failed to refinance the loan. On October 24, 2023, the Lender provided notice of a planned foreclosure sale on December 5, 2023.
Although our calculation of FFO is consistent with that of NAREIT, there can be no assurance that FFO and Core FFO presented by us is comparable to similarly titled measures of other REITs. 49 Table of Contents Below are the calculations of FFO and Core FFO and the reconciliations to net income, which we believe is the most comparable GAAP financial measure (in thousands): Year Ended December 31, FFO (NAREIT) AND CORE FFO 2024 2023 2022 Net income attributable to Whitestone REIT $ 36,893 $ 19,180 $ 35,270 Adjustments to reconcile to FFO: (1) Depreciation and amortization of real estate assets 34,811 32,811 31,538 Depreciation and amortization of real estate assets of real estate partnership (pro rata) (2) 111 1,613 1,613 Loss on disposal of assets, net 547 522 192 Gain on sale of properties, net (22,125 ) (9,006 ) (16,950 ) Net income attributable to noncontrolling interests 480 270 530 FFO (NAREIT) $ 50,717 $ 45,390 $ 52,193 Early debt extinguishment costs — — 147 Default interest on debt of real estate partnership (pro rata) (1)(2) — 1,375 — Proxy contest costs 1,757 — — Core FFO $ 52,474 $ 46,765 $ 52,340 (1) Includes pro-rata share attributable to real estate partnership.
Although our calculation of FFO is consistent with that of NAREIT, there can be no assurance that FFO and Core FFO presented by us is comparable to similarly titled measures of other REITs. 49 Table of Contents Below are the calculations of FFO and Core FFO and the reconciliations to net income, which we believe is the most comparable GAAP financial measure (in thousands): Year Ended December 31, FFO (NAREIT) AND CORE FFO 2025 2024 2023 Net income attributable to Whitestone REIT $ 49,926 $ 36,893 $ 19,180 Adjustments to reconcile to FFO: (1) Depreciation and amortization of real estate assets 35,867 34,811 32,811 Depreciation and amortization of real estate assets of real estate partnership (pro rata) (2) — 111 1,613 Loss on disposal of assets, net 239 547 522 Gain on sale of properties (29,957 ) (22,125 ) (9,006 ) Gain on partnership redemption (3) (2,075 ) — — Net income attributable to noncontrolling interests 630 480 270 FFO (NAREIT) $ 54,630 $ 50,717 $ 45,390 Proxy contest costs — 1,757 — Extinguishment of debt cost 798 — — Default interest on debt of real estate partnership (pro rata) (1)(2) — — 1,375 Core FFO $ 55,428 $ 52,474 $ 46,765 (1) Includes pro-rata share attributable to real estate partnership.
The fair value of our long-term debt, consisting of fixed rate secured notes, variable rate secured notes and an unsecured revolving credit facility aggregate to approximately $614.3 million and $612.4 million as compared to the book value of approximately $632.5 million and $640.5 million as of December 31, 2024 and 2023, respectively.
The fair value of our long-term debt, consisting of fixed rate secured notes, variable rate secured notes and an unsecured revolving credit facility aggregate to approximately $637.6 million and $614.3 million as compared to the book value of approximately $649.4 m illion and $632.5 million as of December 31, 2025 and 2024, respectively.
If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate rates.
As a REIT, we generally are not subject to federal income tax on income that we distribute to our shareholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate rates.
As of December 31, 2024, we had an aggregate of 1,445 tenants. We have a diversified tenant base with our largest tenant comprising only 2.2% of our total revenues for the year ended December 31, 2024. Lease terms for our properties range from less than one year for smaller tenants to more than 15 years for larger tenants.
As of December 31, 2025, we had an aggregate of 1,458 tenants. We have a diversified tenant base with our largest tenant comprising o nly 2.1% of our t otal revenues for the year ended December 31, 2025. Lease terms for our properties range from less than one year for smaller tenants to more than 15 years for larger tenants.
We exclude these costs paid directly by the tenant to third parties on our behalf from revenue recognized and the associated property operating expense. 38 Table of Contents Other property income primarily includes amounts recorded in connection with management fees and lease termination fees. Pillarstone OP paid us management fees for property management, leasing and day-to-day advisory and administrative services.
We exclude these costs paid directly by the tenant to third parties on our behalf from revenue recognized and the associated property operating expense. 38 Table of Contents Other property income primarily includes amounts recorded in connection with lease termination fees.
However, NOI should not be viewed as a measure of our overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, interest expense, interest income, provision for income taxes and gain or loss on sale or disposition of assets, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties. 50 Table of Contents Below is the calculation of NOI and the reconciliation to net income, which we believe is the most comparable GAAP financial measure (in thousands): Year Ended December 31, PROPERTY NET OPERATING INCOME (“NOI”) 2024 2023 2022 Net income attributable to Whitestone REIT $ 36,893 $ 19,180 $ 35,270 General and administrative expenses 23,189 20,653 18,066 Depreciation and amortization 34,894 32,966 31,707 Deficit (equity) in earnings of real estate partnership (1) 28 3,155 (239 ) Interest expense 34,035 32,866 27,193 Interest, dividend and other investment income (87 ) (51 ) (65 ) Provision for income taxes 450 450 422 Gain on sale of properties, net (22,125 ) (9,006 ) (16,950 ) Management fee, net of related expenses — 16 112 Loss on disposal of assets, net 547 522 192 NOI of real estate partnership (pro rata) (1) 183 2,553 3,023 Net income attributable to noncontrolling interests 480 270 530 NOI $ 108,487 $ 103,574 $ 99,261 (1) We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP.
However, NOI should not be viewed as a measure of our overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, interest expense, interest income, provision for income taxes and gain or loss on sale or disposition of assets, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties. 50 Table of Contents Below is the calculation of NOI and the reconciliation to net income, which we believe is the most comparable GAAP financial measure (in thousands): Year Ended December 31, PROPERTY NET OPERATING INCOME (“NOI”) 2025 2024 2023 Net income attributable to Whitestone REIT $ 49,926 $ 36,893 $ 19,180 General and administrative expenses 21,218 23,189 20,653 Depreciation and amortization 35,929 34,894 32,966 Deficit in earnings of real estate partnership (1) — 28 3,155 Interest expense 33,672 34,035 32,866 Extinguishment of debt cost 798 — — Interest, dividend and other investment income (138 ) (87 ) (51 ) Provision for income taxes 482 450 450 Gain on sale of properties (29,957 ) (22,125 ) (9,006 ) Management fee, net of related expenses — — 16 Loss on disposal of assets, net 239 547 522 Gain on partnership redemption (2) (2,075 ) — — NOI of real estate partnership (pro rata) (1) — 183 2,553 Net income attributable to noncontrolling interests 630 480 270 NOI $ 110,724 $ 108,487 $ 103,574 (1) We rely on reporting provided to us by our third-party partners for financial information regarding the Company's investment in Pillarstone OP.
Any distributions we make will be at the discretion of our board of trustees and we cannot provide assurance that our distributions will be made or sustained in the future. 37 Table of Contents On February 22, 2022, the Company announced an increase to its quarterly distribution to $0.12 per commons share and OP unit, equal to a monthly distribution of $0.04, beginning with the April 2022 distribution.
Any distributions we make will be at the discretion of our board of trustees and we cannot provide assurance that our distributions will be made or sustained in the future. 37 Table of Contents On March 5, 2024, the Company announced an increase to its quarterly distribution to $0.12375 per common share and OP unit, equal to a monthly distribution of $0.04125, beginning with the April 2024 distribution.
Included in our adjustments to rental revenue for the years ending December 31, 2024 and 2023, were bad debt adjustments of $0.2 million and $0.3 million, respectively, and a straight-line rent reserve adjustments of $0.05 million and $(0.002) million, respectively, related to credit loss for the conversion of 11 and 20 tenants, respectively, to cash basis revenue as a result of collectability analysis.
Included in our adjustments to rental revenue for the years ending December 31, 2025 and 2024, were bad debt adjustments o f $0.03 m illion and $0.2 million, respectively, and a straight-line rent reserve adjustments of $0.1 million and $0.05 million, respectively, related to credit loss for the conversion of seven and 11 tenants, respectively, to cash basis revenue as a result of collectability analysis.
The fair value of our long-term debt is estimated on a Level 2 basis (as provided by ASC 820, “ Fair Value Measurements and Disclosures ”), using a discounted cash flow analysis based on the borrowing rates currently available to us for loans with similar terms and maturities, discounting the future contractual interest and principal payments.
The fair value of our long-term debt is estimated on a Level 2 basis (as provided by ASC 820, “ Fair Value Measurements and Disclosures ”), using a discounted cash flow analysis based on the borrowing rates currently available to us for loans with similar terms and maturities, discounting the future contractual interest and principal payme nts Disclosure about fair value of financial instruments is based on pertinent information available to management as of December 31, 2025 and 2024.
The information in the table above reflects our projected obligations for our unsecured credit facility based on our December 31, 2024 balance of $410.0 million.
The information in the table above reflects our projected obligations for our unsecured credit facility based on our December 31, 2025 balance of $426.8 million.
As of December 31, 2024, $410.0 million was drawn on the 2022 Facility and our unused borrowing capacity was $125.0 million, assuming that we use the proceeds of the 2022 Facility to acquire properties, or to repay debt on properties, that are eligible to be included in the unsecured borrowing base.
As of December 31, 2025, $426.8 million was drawn on the 2025 Facility and our unused borrowing capacity was $323.2 million, assuming that we use the proceeds of the 2025 Facility to acquire properties, or to repay debt on properties, that are eligible to be included in the unsecured borrowing base.
As of December 31, 2024, we wholly-owned 55 commercial properties consisting of: Consolidated Operating Portfolio • 50 properties that meet our Community Centered Properties® strategy; and containing approximately 4.9 million square feet of GLA and having a total carrying amount (net of accumulated depreciation) of $978.9 million; and Redevelopment, New Acquisitions Portfolio • five parcels of land held for future development that meet our Community Centered Properties® strategy having a total carrying amount of $22.8 million.
As of December 31, 2025, we wholly-owned 56 commercial properties consisting of: Consolidated Operating Portfolio • 51 properties that meet our Community Centered Properties® strategy; and containing approximately 4.9 million square feet of GLA and having a total carrying amount (net of accumulated depreciation) of $1.07 Billion; and Redevelopment, New Acquisitions Portfolio • five parcels of land held for future development that meet our Community Centered Properties® strategy having a total carrying amount of $23.6 million.
Included in the adjustment to rental revenue for the years ending December 31, 2024, 2023 and 2022, was a bad debt adjustment of $0.2 million, $0.3 million, and $0.6 million, respectively, and a straight-line rent reserve adjustment of $0.05 million, $(0.002) million, and $0.3 million, respectively, related to credit loss for the conversion of 11, 20, and 80 tenants, respectively, to cash basis revenue. 40 Table of Contents Unamortized Lease Commissions and Loan Costs.
In cluded in the adjustment to rental revenue for the years ending December 31, 2025, 2024 and 2023, was a bad debt adjustment of $0.03 m illion, $0.2 million, and $0.3 million, respectively, and a straight-line rent reserve adjustment o f $0.1 million, $0.05 million, and $(0.002) million, respectively, related to credit loss for the conversion o f seven, 1 1, and 20 tenants, respectively, to cash basis revenue. 40 Table of Contents Unamortized Lease Commissions and Loan Costs.
Scheduled Lease Expirations We tend to lease space to smaller businesses that desire shorter term leases. As of December 31, 2024, approximately 29% of our GLA was subject to leases that expire prior to December 31, 2026. Over the last three years, we have renewed expiring leases with respect to approximately 69% of our GLA.
Scheduled Lease Expirations We tend to lease space to smaller businesses that desire shorter term leases. As of December 31, 2025, approximate ly 29% of our GLA was subject to leases that expire prior to December 31, 2027. Over the last three years, we have renewed expiring leases with respect to approxima tely 75% of our GLA.
For new disclosures related to the adoption of ASU 2023-07, refer to Note 17, “Segment Reporting.” 41 Table of Contents Results of Operations Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 The following table provides a general comparison of our results of operations for the years ended December 31, 2024 and 2023 (dollars in thousands, except per share data): Year Ended December 31, 2024 2023 Number of properties owned and operated 55 55 Aggregate GLA (sq. ft.) 4,863,562 4,995,190 Ending occupancy rate 94 % 94 % Total revenues $ 154,282 $ 146,969 Total operating expenses 104,061 99,583 Total other expense 12,370 24,331 Income before equity investment in real estate partnership and income tax 37,851 23,055 Deficit in earnings of real estate partnership (28 ) (3,155 ) Provision for income tax (450 ) (450 ) Net income 37,373 19,450 Less: Net income attributable to noncontrolling interests 480 270 Net income attributable to Whitestone REIT $ 36,893 $ 19,180 Funds from operations (1) $ 50,717 $ 45,390 Property net operating income (2) 108,487 103,574 Distributions paid on common shares and OP units 24,893 24,016 Distributions per common share and OP unit $ 0.4914 $ 0.4800 Distributions paid as a percentage of funds from operations 49 % 53 % (1) For an explanation and reconciliation of funds from operations, a non-GAAP metric, to net income, see “Funds From Operations” below.
For new disclosures related to the adoption of ASU 2023-07, refer to Note 17, “Segment Reporting.” 41 Table of Contents Results of Operations Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 The following table provides a general comparison of our results of operations for the years ended December 31, 2025 and 2024 (dollars in thousands, except per share data): Year Ended December 31, 2025 2024 Number of properties owned and operated 56 55 Aggregate GLA (sq. ft.) (1) 4,857,508 4,863,562 Ending occupancy rate 95 % 94 % Total revenues $ 160,859 $ 154,282 Total operating expenses 107,282 104,061 Total other expense 2,539 12,370 Income before equity investment in real estate partnership and income tax 51,038 37,851 Deficit in earnings of real estate partnership — (28 ) Provision for income tax (482 ) (450 ) Net income 50,556 37,373 Less: Net income attributable to noncontrolling interests 630 480 Net income attributable to Whitestone REIT $ 49,926 $ 36,893 Funds from operations (1) $ 54,630 $ 50,717 Property net operating income (2) 110,724 108,487 Distributions paid on common shares and OP units 27,754 24,893 Distributions per common share and OP unit $ 0.5400 $ 0.4914 Distributions paid as a percentage of funds from operations 51 % 49 % (1) For an explanation and reconciliation of funds from operations, a non-GAAP metric, to net income, see “Funds From Operations” below.
The distributions paid to common shareholders and OP unit holders were as follows (in thousands, except per share data) for the years ended December 31, 2024 and 2023: Common Shares Noncontrolling OP Unit Holders Total Quarter Paid Distributions Per Common Share Amount Paid Distributions Per OP Unit Amount Paid Amount Paid 2024 Fourth Quarter $ 0.1238 $ 6,247 $ 0.1238 $ 81 $ 6,328 Third Quarter 0.1238 6,194 0.1238 80 6,274 Second Quarter 0.1238 6,162 0.1238 80 6,242 First Quarter 0.1200 5,969 0.1200 80 6,049 Total $ 0.4914 $ 24,572 $ 0.4914 $ 321 $ 24,893 2023 Fourth Quarter $ 0.1200 $ 5,930 $ 0.1200 $ 83 $ 6,013 Third Quarter 0.1200 5,928 0.1200 83 6,011 Second Quarter 0.1200 5,913 0.1200 83 5,996 First Quarter 0.1200 5,913 0.1200 83 5,996 Total $ 0.4800 $ 23,684 $ 0.4800 $ 332 $ 24,016 Summary of Critical Accounting Policies and Estimates Our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements.
The distributions paid to common shareholders and OP unit holders were as follows (in thousands, except per share data) for the years ended December 31, 2025 and 2024: Common Shares Noncontrolling OP Unit Holders Total Quarter Paid Distributions Per Common Share Amount Paid Distributions Per OP Unit Amount Paid Amount Paid 2025 Fourth Quarter $ 0.1350 $ 6,858 $ 0.1350 $ 87 $ 6,945 Third Quarter 0.1350 6,858 0.1350 87 6,945 Second Quarter 0.1350 6,845 0.1350 87 6,932 First Quarter 0.1350 6,845 0.1350 87 6,932 Total $ 0.5400 $ 27,406 $ 0.5400 $ 348 $ 27,754 2024 Fourth Quarter $ 0.1238 $ 6,247 $ 0.1238 $ 81 $ 6,328 Third Quarter 0.1238 6,194 0.1238 80 6,274 Second Quarter 0.1238 6,162 0.1238 80 6,242 First Quarter 0.1200 5,969 0.1200 80 6,049 Total $ 0.4914 $ 24,572 $ 0.4914 $ 321 $ 24,893 Summary of Critical Accounting Policies and Estimates Our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements.
We place all cash in short-term, highly liquid investments that we believe provide appropriate safety of principal. 32 Table of Contents Debt Debt consisted of the following as of the dates indicated (in thousands): Description December 31, 2024 December 31, 2023 Fixed rate notes $265.0 million, 3.18% plus 1.45% to 2.10% Note, due January 31, 2028 (1) $ 265,000 $ 265,000 $20.0 million, 3.67% plus 1.50% Note, due January 31, 2028 (3) 20,000 — $80.0 million, 3.72% Note, due June 1, 2027 80,000 80,000 $19.0 million, 4.15% Note, due December 1, 2024 — 17,658 $14.0 million, 4.34% Note, due September 11, 2024 — 12,427 $14.3 million, 4.34% Note, due September 11, 2024 — 13,257 $15.1 million, 4.99% Note, due January 6, 2024 — 13,350 $50.0 million, 5.09% Note, due March 22, 2029 (Series A) 35,714 42,857 $50.0 million, 5.17% Note, due March 22, 2029 (Series B) 50,000 50,000 $2.5 million, 7.79% Note, due February 28, 2025 429 — $50.0 million, 3.71% plus 1.50% to 2.10% Note, due September 16, 2026 (2) 50,000 50,000 $56.3 million, 6.23% Note, due July 31, 2031 56,340 — Floating rate notes Unsecured line of credit, SOFR plus 1.50% to 2.10%, due September 16, 2026 75,000 96,000 Total notes payable principal 632,483 640,549 Less deferred financing costs, net of accumulated amortization (965 ) (377 ) Total notes payable $ 631,518 $ 640,172 (1) Promissory note includes an interest rate swap that fixed the SOFR portion of the term loan at an interest rate of 2.16% through October 28, 2022, 2.76% from October 29, 2022 through January 31, 2024, and 3.32% beginning February 1, 2024 through January 31, 2028.
We place all cash in short-term, highly liquid investments that we believe provide appropriate safety of principal. 32 Table of Contents Debt Debt consisted of the following as of the dates indicated (in thousands): Description December 31, 2025 December 31, 2024 Fixed rate notes $375.0 million, 3.40% plus 1.25% to 1.85% Note, due January 31, 2031 (1) $ 375,000 $ — $265.0 million, 3.18% plus 1.45% to 2.10% Note, due January 31, 2028 (2) — 265,000 $20.0 million, 3.67% plus 1.50% note, due January 31, 2028 (3) — 20,000 $80.0 million, 3.72% Note, due June 1, 2027 80,000 80,000 $50.0 million, 5.09% Note, due March 22, 2029 (Series A) 28,571 35,714 $50.0 million, 5.17% Note, due March 22, 2029 (Series B) 40,000 50,000 $2.5 million, 7.79% Note, due February 28, 2025 — 429 $50.0 million, 3.71% plus 1.50% to 2.10% Note, due September 16, 2026 (4) — 50,000 $56.3 million, 6.23% Note, due July 31, 2031 56,340 56,340 $17.7 million, 3.81% Note, due November 6, 2029 17,650 — Floating rate notes Unsecured line of credit, SOFR plus 1.30% to 1.90%, due September 19, 2029 51,791 — Unsecured line of credit, SOFR plus 1.50% to 2.10%, due September 16, 2026 — 75,000 Total notes payable principal 649,352 632,483 Less unamortized debt discount (997 ) — Less deferred financing costs, net of accumulated amortization (4,430 ) (965 ) Total notes payable $ 643,925 $ 631,518 (1) Promissory note that includes an interest rate swap that fixes the SOFR portion of the term loan at an interest rate of 3.40% through September 30, 2026, 3.36% from October 1, 2026 through January 31, 2028, and 3.42% from February 1, 2028 though January 31, 2031.
In addition, the 2022 Facility contains certain financial covenants including the following: • maximum total indebtedness to total asset value ratio of 0.60 to 1.00; • maximum secured debt to total asset value ratio of 0.40 to 1.00; • minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00; • maximum other recourse debt to total asset value ratio of 0.15 to 1.00; • maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortization) of $449 million plus 75% of the net proceeds from additional equity offerings (as defined therein); • minimum adjusted property net operating income to implied unencumbered debt service of 1.50 to 1.00; and • maximum unsecured indebtedness to unencumbered asset pool value ratio of 0.60 to 1.00.
In addition, the A&R Credit Agreement contains certain financial covenants including the following: • maximum total indebtedness to total asset value ratio of 0.60 to 1.00; • maximum secured debt to total asset value ratio of 0.40 to 1.00; • minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00; • maximum other recourse debt to total asset value ratio of 0.15 to 1.00; • maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortizati on) of $527 million plus 75% of the net proceeds from additional equity offerings (as defined therein); • minimum adjusted property net operating income to implied unencumbered debt service of 1.50 to 1.00; and • maximum unsecured indebtedness to unencumbered asset pool value ratio of 0.60 to 1.00. 35 Table of Contents As of December 31, 2025, our $154.0 million in secured debt was collateralized by five properties with a carrying value of $254.4 million.
We relied on the reports furnished by our third-party partners for financial information regarding the Company’s investment in Pillarstone OP. As of December 31, 2023, and 2022, Pillarstone OP’s financial statements were not made accessible to us. Consequently, we estimated its financial condition and results of operations based on the information available to us.
Estimates regarding Pillarstone OP ’ s financial condition and results of operations and guarantee. We relied on the reports furnished by our third-party partners for financial information regarding the Company’s investment in Pillarstone OP in prior years reporting. As of December 31, 2024, and 2023, Pillarstone OP’s financial statements were not made accessible to us.
As of December 31, 2024 and 2023, we had an allowance for uncollectible accounts of $14.7 million and $13.6 million, respectively. For the years ending December 31, 2024, 2023 and 2022, we recorded an adjustment to rental revenue in the amount of $1.0 million, $1.0 million and $1.2 million, respectively.
As of December 31, 2025 and 2024, we had an allowance for uncollectible accounts of $13.7 m illion and $14.7 million, respectively. For the years endin g December 31, 2025, 2024 and 2023 , we recorded a bad debt adjustment to rental revenue in the amount of $0.9 million, $1.2 million and $1.0 million, respectively.
We calculate FFO in a manner consistent with the NAREIT definition and also include adjustments for our unconsolidated real estate partnership. Core Funds from Operations (“Core FFO”) is a non-GAAP measure.
We calculate FFO in a manner consistent with the NAREIT definition. We included adjustments for our unconsolidated real estate partnership in prior years, which are no longer applicable. Core Funds from Operations (“Core FFO”) is a non-GAAP measure.
Straight line rent adjustments, above/below market rents, and lease termination fees are excluded. 47 Table of Contents Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 For a discussion and comparison of the results of our operations for the year ended December 31, 2023 with the year ended December 31, 2022, refer to “Management's Discussion and Analysis of Financial Conditions and Results of Operations” in our Form 10-K for the year ended December 31, 2023 filed with the SEC on March 13, 2024. 48 Table of Contents Reconciliation of Non-GAAP Financial Measures Funds From Operations (NAREIT) ( “ FFO ” ) and Core FFO The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) available to common shareholders computed in accordance with GAAP, excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.
After the $4.05 million payment is made to Pillarstone REIT, we expect to receive approximately $4.0 million in cash and any excess from the $2.5 million in reserves in 2026. 47 Table of Contents Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 For a discussion and comparison of the results of our operations for the year ended December 31, 2024 with the year ended December 31, 2023, refer to “Management's Discussion and Analysis of Financial Conditions and Results of Operations” in our Form 10-K for the year ended December 31, 2024 filed with the SEC on March 17, 2025. 48 Table of Contents Reconciliation of Non-GAAP Financial Measures Funds From Operations (NAREIT) ( “ FFO ” ) and Core FFO The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) available to common shareholders computed in accordance with GAAP, excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.
How We Derive Our Revenue Substantially all of our revenue is derived from rents received from leases at our properties. We had total revenues of approximately $ 154,282,000 for the year ended December 31, 2024 as compared to $ 146,969,000 for the year ended December 31, 2023, an increase of $ 7,313,000, or 5%.
How We Derive Our Revenue Substantially all of our revenue is derived from rents received from leases at our properties. We had total revenues o f approximately $161 million for the year ended December 31, 2025 as compared to $154.3 million for the year ended December 31, 2024 , an increase of $7 million.
Please refer to Note 4 (Investment in Real Estate Partnership) to the accompanying consolidated financial statements for more information regarding our former investment in Pillarstone OP. 45 Table of Contents Same Store net operating income.
For the year ended December 31, 2024 our estimated deficit in earnings from the real estate partnership was $28,000. Please refer to Note 4 (Investment in Real Estate Partnership) to the accompanying consolidated financial statements for more information regarding our investment in Pillarstone OP. 45 Table of Contents Same Store net operating income.
On December 4, 2024, the Company announced an increase to its quarterly distribution to $0.135 per common share and OP unit, equal to a monthly distribution of $0.045, beginning with the January 2025 distribution. During 2024, we paid distributions to our common shareholders and OP unit holders of $24.9 million, compared to $24.0 million in 2023.
On December 4, 2024, the Company announced an increase to its quarterly distribution to $0.135 per common share and OP unit, equal to a monthly distribution of $0.045, beginning with the January 2025 distribution.
The variable interest rate payments are based on SOFR plus 1.45% and a 10 basis point spread adjustment which reflects our new interest rates under our 2022 Facility. The information in the table above reflects our projected interest rate obligations for the floating rate payments based on one-month SOFR as of December 31, 2024, of 4.49%.
The variable interest rate payments are based on SOFR plus 1.30% spread adjustment which reflects our new interest rates under our 2025 Facility. The information in the table above reflects our projected interest rate obligations for the floating rate payments based on one-month SOFR as of December 31, 2025, o f 5.22%.
Our leases generally include minimum monthly lease payments and tenant reimbursements for taxes, insurance and maintenance. We completed 298 new and renewal leases during 2024, totaling 1,026,389 square feet and $134.8 million in total lease value. We had 72 employees as of December 31, 2024.
Our leases generally include minimum monthly lease payments and tenant reimbursements for taxes, insurance and maintenance. We completed 272 new and renewal leases during 2025, totaling 786,636 square feet and $112.5 million in total lease value. We had 72 em ployees as of December 31, 2025.
We have not included 2024, 2023, and 2022 sold properties in discontinued operations as they did not meet the definition of discontinued operations. 29 Table of Contents Leasing Activity As of December 31, 2024, we wholly-owned 55 properties with 4,863,562 square feet of GLA, which were approximately 94% occupied.
We recorded a gain on sale of $5.0 million. We have not included 2025, 2024, and 2023 sold properties in discontinued operations as they did not meet the definition of discontinued operations. 29 Table of Contents Leasing Activity As of December 31, 2025, we wholly-owned 56 properties with 4,857,508 square feet of GLA, which were approximately 95% occupied.
Scheduled maturities of our outstanding debt as of December 31, 2024 were as follows (in thousands): Year Amount Due 2025 $ 17,572 2026 142,143 2027 97,414 2028 302,823 2029 17,867 Thereafter 54,664 Total $ 632,483 Capital Expenditures We continually evaluate our properties’ performance and value.
Scheduled maturities of our outstanding debt as of December 31, 2025 were as follows (in thousands): Year Amount Due 2026 $ 17,143 2027 97,414 2028 17,823 2029 35,517 2030 52,561 Thereafter 428,894 Total $ 649,352 Capital Expenditures We continually evaluate our properties’ performance and value.
The Company, through its subsidiary Whitestone REIT Operating Partnership, L.P., guaranteed Pillarstone OP’s loan for its Uptown Tower property located in Dallas, Texas, with an aggregate principal amount of $14.4 million as of September 30, 2023. The loan was also secured by the Uptown Tower property.
Consequently, we estimated its financial condition and results of operations based on the information available to us. The Company, through its subsidiary Whitestone REIT Operating Partnership, L.P., guaranteed Pillarstone OP’s loan for its Uptown Tower property located in Dallas, Texas, with an aggregate principal amount of $14.4 million as of September 30, 2023.
Some of our properties that we own (the “non-core properties”) may not fit our Community Centered Property® strategy, and we may look for opportunities to dispose of these properties as we continue to execute our strategy. On November 6, 2024, we completed the sale of Providence, located in Houston, Texas, for $16.3 million.
Some of our properties that we own may not fit our Community Centered Property® strategy, and we may look for opportunities to dispose of these properties as we continue to execute our strategy. On December 4, 2025, we completed the sale of Kempwood Plaza, located in Houston, Texas, for $18.6 million. We recorded a gain on sale of $15.8 million.
As an internally managed REIT, we bear our own expenses of operations, including the salaries, benefits and other compensation of our employees, office expenses, legal, accounting and investor relations expenses and other overhead costs. Real Estate Partnership As of December 31, 2024, our ownership in Pillarstone OP no longer represents a majority interest.
As an internally managed REIT, we bear our own expenses of operations, including the salaries, benefits and other compensation of our employees, office expenses, legal, accounting and investor relations expenses and other overhead costs.
As of December 31, 2024, subject to any potential future paydowns or increases in the borrowing base, we have $125.0 million remaining availability under the 2022 Revolver.
As of December 31, 2025, subject to any potential future paydowns or increases in the borrowing base, we ha ve $220.4 m illion remaining availability under the Revolver.
On May 20, 2022, our universal shelf registration statement on Form S-3 (File No. 333-264881) was declared effective by the SEC (the “Registration Statement”), which registers the issuance and sale by us of up to $500 million in securities from time to time, including common shares, preferred shares, debt securities, depositary shares and subscription rights.
We previously filed a Form S-3 (File No. 333-264881), which was subsequently declared effective by the SEC on May 20, 2022 (the “2022 Registration Statement”), pursuant to which we could issue and sell up to $500 million in securities, including common shares, preferred shares, debt securities, depositary shares and subscription rights.
Rising Interest Rates As of December 31, 2024, $75.0 million, or approximately 12% of our outstanding debt, was subject to floating interest rates of Secured Overnight Financing Rate (“SOFR”) plus 1.50% to 2.10% and a 10 basis point credit spread adjustment and not currently subject to a hedge.
Rising Interest Rates As of December 31, 2025, $51.8 million, or approximately 8% of our outstanding debt, was subject to floating interest rates of Secured Overnight Financing Rate (“SOFR”) plus 1.30% to 1.90% not currently subject to a hedge.
We paid the DPO amount and will be entitled to assert a subrogation claim against Pillarstone OP. As of December 31, 2024, the DPO amount was recorded as an asset in our financial statement line receivable due from related party. Accounting treatment of the redemption of our OP units in Pillarstone OP.
We paid the DPO amount and asserted subrogation claim against Pillarstone OP. As of December 31, 2024, the DPO amount was recorded as an asset in our financial statement line receivable due from related party. On September 8, 2025, Pillarstone paid $13.6 million to Whitestone OP for its subrogation claim as guarantor.
On January 25, 2024, we executed an irrevocable redemption of substantially all our investment in Pillarstone OP, converting our equity investment into a receivable. Pillarstone OP conveyed their intention to forego issuing equity, opting instead to liquidate the properties to satisfy creditors, with Whitestone being significantly the largest creditor.
Pillarstone OP conveyed their intention to forego issuing equity, opting instead to liquidate the properties to satisfy creditors, with Whitestone being significantly the largest creditor. The carrying value of our investment in Pillarstone OP was approximately $31.6 million as of January 25, 2024.
We recorded a gain on sale of $4.6 million. Deficit in earnings of real estate partnership. As of December 31, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP.
Real Estate Partnership As of December 31, 2025, our ownership in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”) no longer represents a majority interest. On January 25, 2024, w e exercised a notice of redemption for substantially all of our investment in Pillarstone OP.
ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. We adopted this guidance as of January 1, 2024, and it did not have a material impact on our consolidated financial statements.
We adopted this guidance as of January 1, 2024, and it did not have a material impact on our consolidated financial statements.
(5) Non-Same Store rental revenue includes Village Shops at Dana Park (acquired on December 12, 2024), Providence (sold on November 6, 2024), Fountain Hills Plaza (sold on August 9, 2024), Scottsdale Commons (acquired on April 5, 2024), Mercado at Scottsdale Ranch (sold on March 27, 2024), Garden Oaks (acquired on February 20, 2024), Sporlein Commons (sold on December 20, 2023), Westchase (sold on June 30, 2023), Sunridge (sold on June 30, 2023), and Arcadia Towne Center (acquired on June 12, 2023). 43 Table of Contents Operating expenses.
(5) Non-Same Store rental revenue includes Garden Oaks (acquired on February 20, 2024), Mercado (sold on March 27, 2024), Scottsdale Commons (acquired on April 5, 2024), Fountain Hills (sold on August 9, 2024), Providence (sold on November 6, 2024), Village Shops at Dana Park (acquired on December 12, 2024), San Clemente (acquired on May 5, 2025), South Hulen (acquired on June 16, 2025), Woodlake Plaza (sold on June 27, 2025), 1730 S Val Vista (acquired on July 11, 2025), Sugar Park Plaza (sold on September 25, 2025), Kempwood Plaza (sold on December 4, 2025), Ashford Village (acquired on October 31, 2025), and World Cup Plaza (acquired on November 6, 2025). 43 Table of Contents Operating expenses.
Amounts recorded within other property income are accounted for at the point in time when control of the goods or services transfers to the customer and our performance obligation is satisfied. Estimates regarding Pillarstone OP ’ s financial condition and results of operations and guarantee.
We recognize lease termination fees in the year that the lease is terminated, and collection of the fee is probable. Amounts recorded within other property income are accounted for at the point in time when control of the goods or services transfers to the customer and our performance obligation is satisfied.
We have no obligation to sell any of our common shares and can at any time suspend offers under the 2022 equity distribution agreements or terminate the 2022 equity distribution agreements. During the year ended December 31, 2024, we sold 579,964 common shares under the 2022 equity distribution agreement, with net proceeds to us of approximately $7.6 million.
We have no obligation to sell any of our common shares and can at any time suspend offers under the Equity Distribution Agreements or terminate Equity Distribution Agreements.
As of December 31, 2024, the interest rate on the 2022 Revolver was 6.12%. Based on our current leverage ratio, the revolver has initial interest rate of SOFR plus 1.45% and a 10 basis point credit spread adjustment. In addition, we entered into interest rate swaps to fix the interest rates on the Term Loan.
Based on our current leverage ratio, the Revolver has initial interest rate of Term SOFR pl us 1.30%. In a ddition, the Company entered into interest rate swaps to fix the Term SOFR rates on the Term Loan. As of December 31, 2025, the interest rate on the Revolver was 5.22%.
On December 21, 2022, we acquired Lake Woodlands Crossing, a property that meets our Community Centered Property® strategy, for $22.5 million in cash and net prorations. Lake Woodlands Crossing, a 60,246 square foot property, was 89.3% leased at the time of purchase and is located in The Woodlands, Texas.
On November 6, 2025, we acquired World Cup Plaza, a property that meets our Community Centered Property® strategy, for $34.1 million in cash and net prorations. World Cup Plaza, a 90,391 square foot property, was 87% leased at the time of purchase and is located in Frisco, Texas.

… 113 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−0 removed5 unchanged
Biggest changeVariable Interest Rate Debt As of December 31, 2024, $75.0 million, or approximately 12%, of our outstanding debt was subject to floating interest rates of SOFR plus 1.50% to 2.10% and not currently subject to a hedge.
Biggest changeVariable Interest Rate Debt As of December 31, 2025, $51.8 million, or approximately 8% of our outstanding debt was subject to floating interest rates of SOFR plus 1.30% and not currently subject to a hedge.
The impact of a 1% increase or decrease in interest rates on our floating rate debt would result in a decrease or increase, respectively, of annual net income of approximately $0.8 million.
The impact of a 1% increase or decrease in interest rates on our floating rate debt would result in a decrease or increase, respectively, of annual net income of approximately $0.5 million.
Our total outstanding fixed interest rate debt has an average effective interest rate as of December 31, 2024 of approximately 4.89% per annum with expirations ranging from 2025 to 2031 (see Note 8 to our accompanying consolidated financial statements for further detail).
Our total outstanding fixed interest rate debt has an average effective interest rate as of December 31, 2025 of approximately 4.71% per annum with expirations ranging from 2027 to 2031 (see Note 8 to our accompanying consolidated financial statements for further detail).
Holding other variables constant, a 1% increase or decrease in interest rates would cause an $13.6 million decline or increase in the fair value for our fixed rate debt.
Holding other variables constant, a 1% increase or decrease in interest rates would cause an $17.3 million decline or increase in the fair value for our fixed rate debt.
All of our financial instruments were entered into for other than trading purposes. 51 Table of Contents Fixed Interest Rate Debt As of December 31, 2024, $557.5 million, or approximately 88%, of our outstanding debt was subject to fixed interest rates, which limit the risk of fluctuating interest rates.
All of our financial instruments were entered into for other than trading purposes. 51 Table of Contents Fixed Interest Rate Debt As of December 31, 2025, $597.6 million, or approximately 93% of our outstanding debt was subject to fixed interest rates, which limit the risk of fluctuating interest rates.

Other WSR 10-K year-over-year comparisons