# Whitestone REIT (WSR) Informational only - not investment advice. CIK: 0001175535 SIC: 6798 Real Estate Investment Trusts SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/) Latest 10-K filed: 2026-03-06 SEC page: https://www.sec.gov/edgar/browse/?CIK=1175535 Filing source: https://www.sec.gov/Archives/edgar/data/1175535/000143774926007232/wstr20251231_10k.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-06 · accession 0001437749-26-007232 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001175535.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 160,859,000 USD | 2025 | verified | | Net income | 49,926,000 USD | 2025 | verified | | Assets | 1,171,263,000 USD | 2025 | verified | | Free cash flow | 50,473,000 USD | 2025 | computed | | Net margin | 31.04% | 2025 | computed | | Revenue YoY | +4.26% | 2025 | computed | | ROE | 10.90% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | WSR | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 31.0% | 16.8% | 72 | 149 | | Revenue growth | 4.3% | 3.7% | 54 | 149 | | FCF margin | 31.4% | 21.8% | 64 | 70 | | ROE | 10.9% | 5.7% | 77 | 151 | | ROA | 4.3% | 1.5% | 82 | 155 | | Liabilities / equity | 1.54 | 1.48 | 53 | 151 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 160859000 | USD | 2025 | 2026-03-06 | | Net income | 49926000 | USD | 2025 | 2026-03-06 | | Assets | 1171263000 | USD | 2025 | 2026-03-06 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001175535.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 104,437,000 | 125,959,000 | 119,863,000 | 119,251,000 | 117,915,000 | 125,365,000 | 139,421,000 | 146,969,000 | 154,282,000 | 160,859,000 | | Net income | 7,931,000 | 8,334,000 | 21,431,000 | 23,683,000 | 6,034,000 | 12,048,000 | 35,270,000 | 19,180,000 | 36,893,000 | 49,926,000 | | Diluted EPS | 0.26 | 0.22 | 0.52 | 0.57 | 0.14 | 0.26 | 0.71 | 0.38 | 0.72 | 0.95 | | Operating cash flow | 40,648,000 | 41,398,000 | 39,557,000 | 47,748,000 | 42,776,000 | 47,040,000 | 44,431,000 | 47,600,000 | 58,227,000 | 50,773,000 | | Capital expenditures | | | | | 0.00 | 300,000 | 100,000 | 100,000 | 200,000 | 300,000 | | Dividends paid | 31,911,000 | 40,472,000 | 44,944,000 | 45,627,000 | 25,203,000 | 19,320,000 | 22,958,000 | 23,684,000 | 24,572,000 | 27,406,000 | | Share buybacks | 3,948,000 | 4,339,000 | 1,961,000 | 776,000 | 2,077,000 | 691,000 | 537,000 | 525,000 | 2,641,000 | 2,268,000 | | Assets | 855,209,000 | 1,070,168,000 | 1,028,872,000 | 1,056,260,000 | 1,045,002,000 | 1,102,090,000 | 1,102,767,000 | 1,113,239,000 | 1,134,639,000 | 1,171,263,000 | | Liabilities | 587,566,000 | 711,764,000 | 669,722,000 | 703,162,000 | 706,676,000 | 703,052,000 | 678,313,000 | 693,622,000 | 690,805,000 | 707,403,000 | | Stockholders' equity | 255,687,000 | 347,604,000 | 350,456,000 | 345,317,000 | 332,083,000 | 392,783,000 | 418,448,000 | 413,742,000 | 438,153,000 | 458,090,000 | | Cash and cash equivalents | 4,168,000 | 5,005,000 | 13,658,000 | 15,530,000 | 25,777,000 | 15,721,000 | 6,166,000 | 4,572,000 | 5,224,000 | 4,888,000 | | Free cash flow | | | | | 42,776,000 | 46,740,000 | 44,331,000 | 47,500,000 | 58,027,000 | 50,473,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 7.59% | 6.62% | 17.88% | 19.86% | 5.12% | 9.61% | 25.30% | 13.05% | 23.91% | 31.04% | | Return on equity | 3.10% | 2.40% | 6.12% | 6.86% | 1.82% | 3.07% | 8.43% | 4.64% | 8.42% | 10.90% | | Return on assets | 0.93% | 0.78% | 2.08% | 2.24% | 0.58% | 1.09% | 3.20% | 1.72% | 3.25% | 4.26% | | Liabilities / equity | 2.30 | 2.05 | 1.91 | 2.04 | 2.13 | 1.79 | 1.62 | 1.68 | 1.58 | 1.54 | ## As-reported value updates 1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/WSR/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001175535.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 0.09 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 0.08 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.08 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 36,460,000 | 11,306,000 | 0.22 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 37,134,000 | 2,486,000 | 0.05 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 37,524,000 | 1,541,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 37,164,000 | 9,340,000 | 0.18 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 37,647,000 | 2,592,000 | 0.05 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 38,633,000 | 7,624,000 | 0.15 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 40,838,000 | 17,337,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 38,003,000 | 3,701,000 | 0.07 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 37,892,000 | 5,054,000 | 0.10 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 41,048,000 | 18,333,000 | 0.35 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 43,916,000 | 22,838,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 41,386,000 | 4,142,000 | 0.08 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from WSR's latest 10-K: [/company/WSR/business/](/company/WSR/business/). ## Risk Factors Verbatim Item 1A Risk Factors from WSR's latest 10-K: [/company/WSR/risk-factors/](/company/WSR/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1175535/000143774926015260/wstr20260331_10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-06 Report date: 2026-03-31 Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.  You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited consolidated financial statements and the notes thereto included in this Quarterly Report on Form 10-Q (this “Report”), and the consolidated financial statements and the notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2025.  For more detailed information regarding the basis of presentation for the following information, you should read the notes to the unaudited consolidated financial statements included in this Report. Forward-Looking Statements This Report contains forward-looking statements within the meaning of the federal securities laws, including discussion and analysis of our financial condition, pending acquisitions and the impact of such acquisitions on our financial condition and results of operations, anticipated capital expenditures required to complete projects, amounts of anticipated cash distributions to our shareholders in the future and other matters.  These forward-looking statements are not historical facts but are the intent, belief or current expectations of our management based on its knowledge and understanding of our business and industry.  Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “potential,” “predicts,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” or the negative of such terms and variations of these words and similar expressions, although not all forward-looking statements include these words.  These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false.  You are cautioned not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date of this Report.  We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Factors that could cause actual results to differ materially from any forward-looking statements made in this Report include: [[GREPCENT_TABLE]] [["","\u2022","the imposition of federal income taxes if we fail to qualify as a real estate investment trust (\u201cREIT\u201d) in any taxable year or forego an opportunity to ensure REIT status;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","uncertainties related to the national economy and the real estate industry, both in general and in our specific markets;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","legislative or regulatory changes, including changes to laws governing REITs;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","adverse economic or real estate developments or conditions in Texas or Arizona, Houston, Dallas, and Phoenix in particular, including the potential impact of inflation or public health emergencies on our tenants\u2019 ability to pay their rent, which could result in bad debt allowances or straight-line rent reserve adjustments;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","our current geographic concentration in the Houston, Dallas, and Phoenix metropolitan area markets makes us susceptible to potential local economic downturns;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","increases in interest rates, including as a result of inflation, which may increase our operating costs or general and administrative expenses;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","natural disasters, such as floods and hurricanes, which may increase as a result of climate change may adversely affect our returns and adversely impact our existing and prospective tenants;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","increasing focus by stakeholders on environmental, social and governance matters;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","financial institution disruptions;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","availability and terms of capital and financing, both to fund our operations and to refinance our indebtedness as it matures;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","decreases in rental rates or increases in vacancy rates;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","harm to our reputation, ability to do business and results of operations as a result of improper conduct by our employees, agents or business partners;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","litigation risks;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","lease-up risks, including leasing risks arising from exclusivity and consent provisions in leases with significant tenants;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","our inability to renew tenant leases or obtain new tenant leases upon the expiration of existing leases;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","risks related to generative artificial intelligence tools and language models, along with the potential interpretations and conclusions they might make regarding our business and prospects, particularly concerning the spread of misinformation;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","our inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","geopolitical instability, such as the ongoing conflict between Russia and Ukraine, the conflict in the Gaza Strip and unrest in the Middle East;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","the need to fund tenant improvements or other capital expenditures out of our operating cash flow;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","the risk that we are unable to raise capital for working capital, acquisitions or other uses on attractive terms or at all;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","disruptions to our business and financial results as a result of shareholder activism efforts or unsolicited offers from third-parties;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","delays in or failure to complete the Mergers (as defined herein), whether due to an inability by either party to satisfy one or more conditions to closing, the occurrence of events or changes in circumstances that give rise to the termination of the Merger Agreement (as defined herein) by either party, or otherwise;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","the failure to satisfy any of the conditions to the consummation of the Mergers, including the approval of the Company Merger by the Company\u2019s shareholders;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, including in circumstances requiring the Company to pay a termination fee;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","the effect of the announcement or pendency of the proposed Mergers on the Company\u2019s business relationships, including relationships with tenants and suppliers, operating results and business generally;"]] [[/GREPCENT_TABLE]] 36 Table of Contents [[GREPCENT_TABLE]] [["","\u2022","risks that the proposed transaction disrupts the Company\u2019s current plans and operations;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","the Company\u2019s ability to retain and hire key personnel in light of the proposed Mergers or otherwise;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","risks related to diverting management\u2019s attention from the Company\u2019s ongoing business operations, unexpected costs, charges or expenses resulting from the proposed transaction;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","potential litigation or other proceedings relating to the Mergers that could be instituted against the parties to the Merger Agreement, including the Company the Operating Partnership, or their affiliates, respective directors, managers or officers, including the costs of such proceedings and the effects of any outcomes related thereto;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","continued availability of capital and financing and rating agency actions;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","certain restrictions during the pendency of the transaction that may impact the Company\u2019s ability to pursue certain business opportunities or strategic transactions;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, war, hostilities, epidemics or pandemics, as well as management\u2019s response to any of the aforementioned factors, and their potential to disrupt or delay the closing of the transactions; and"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u2022","the possible failure of the Company to maintain its qualification as a REIT and the risk of changes in laws affecting REITs."]] [[/GREPCENT_TABLE]] The forward-looking statements should be read in light of these factors and the factors identified in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2025, as previously filed with the Securities and Exchange Commission (“SEC”). Overview  We are a fully-integrated real estate company that owns and operates commercial properties in culturally diverse markets in major metropolitan areas. Founded in 1998, we are internally managed with a portfolio of commercial properties in Texas and Arizona. In October 2006, we adopted a strategic plan to acquire, redevelop, own and operate Community Centered Properties®.  We define Community Centered Properties® as visibly located properties in established or developing culturally diverse neighborhoods in our target markets. We market, lease and manage our centers to match tenants with the shared needs of the surrounding neighborhood.  Those needs may include specialty retail, grocery, restaurants and medical, educational and financial services.  Our goal is for each property to become a Whitestone-branded retail community that serves a neighboring five-mile radius around our property.  We employ and develop a diverse group of associates who understand the needs of our multi-cultural communities and tenants. We serve as the general partner of the Operating Partnership, which was formed on December 31, 1998 as a Delaware limited partnership. We currently conduct substantially all of our operations and activities through the Operating Partnership. As the general partner of the Operating Partnership, we have the exclusive power to manage and conduct the business of the Operating Partnership, subject to certain customary exceptions. Entry into Merger Agreement On April 8, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Operating Partnership, AREG Wizard Parent LP (“Parent”), AREG Wizard Intermediate LP (“Merger Sub”), and AREG Wizard Operating Partnership LP (“Merger OP” and, collectively with Parent and Merger Sub, the “Parent Parties”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein and in accordance with Maryland REIT Law and the Delaware Revised Uniform Limited Par [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1175535/000143774926007232/wstr20251231_10k.htm Complete FY 2025 MD&A: /company/WSR/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-06 Report date: 2025-12-31 Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations. You should read the following discussion of our financial condition and results of operations in conjunction with our audited consolidated financial statements and the notes thereto included in this Annual Report on Form 10-K.  For more detailed information regarding the basis of presentation for the following information, you should read the notes to our audited consolidated financial statements included in this Annual Report on Form 10-K. Overview of Our Company We are a fully integrated real estate company that owns and operates commercial properties in culturally diverse markets in major metropolitan areas.  Founded in 1998, we are internally managed with a portfolio of commercial properties in Texas and Arizona. In October 2006, we adopted a strategic plan to acquire, redevelop, own and operate Community Centered Properties®.  We define Community Centered Properties® as visibly located properties in established or developing culturally diverse neighborhoods in our target markets.  We market, lease, and manage our centers to match tenants with the shared needs of the surrounding neighborhood.  Those needs may include specialty retail, grocery, restaurants and medical, educational and financial services.  Our goal is for each property to become a Whitestone-branded retail community that serves a neighboring five-mile radius around our property.  We employ and develop a diverse group of associates who understand the needs of our multicultural communities and tenants. As of December 31, 2025, we wholly-owned 56 commercial properties consisting of: Consolidated Operating Portfolio [[GREPCENT_TABLE]] [["","\u2022","51 properties that meet our Community Centered Properties\u00ae 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"]] [[/GREPCENT_TABLE]] Redevelopment, New Acquisitions Portfolio [[GREPCENT_TABLE]] [["","\u2022","five parcels of land held for future development that meet our Community Centered Properties\u00ae strategy having a total carrying amount of $23.6 million."]] [[/GREPCENT_TABLE]] As of December 31, 2025, we had an aggregate of 1,458 tenants.  We have a diversified tenant base with our largest tenant comprising only 2.1% of our total 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.  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 employees as of December 31, 2025.  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, 2025, our ownership in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”) no longer represents a majority interest. On January 25, 2024, we exercised a notice of redemption for substantially all of our investment in Pillarstone OP. 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”). 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. 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. 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. 27 Table of Contents Market Conditions  Inflation We anticipate that the majority of our leases will continue to be triple-net leases or otherwise provide that tenants pay for increases in operating expenses and will contain provisions that we believe will mitigate the effect of inflation. In addition, many of our leases are for terms of less than five years, which allows us to adjust rental rates to reflect inflation and other changing market conditions when the leases expire. Consequently, increases due to inflation, as well as ad valorem tax rate increases, generally do not currently have a significant adverse effect upon our operating results. 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. 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. 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 $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.  Known Trends in Our Operations; Outlook for Future Results Rental Income  We expect our rental income to increase year-over-year due to the addition of properties and rent increases on renewal leases. The amount of net rental income generated by our properties depends principally on our ability to maintain the occupancy rates of currently leased space and to lease currently available space, newly acquired properties with vacant space, and space available from unscheduled lease terminations. The amount of rental income we generate also depends on our ability to maintain or increase rental rates in our submarkets. Included in our adjustments to rental revenue for the years ending December 31, 2025 and 2024, were bad debt adjustments of $0.03 million 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.  Scheduled Lease Expirations We tend to lease space to smaller businesses that desire shorter term leases. As of December 31, 2025, approximately 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 approximately 75% of our GLA. We routinely seek to renew leases with our existing tenants prior to their expiration and typically begin discussions with tenants as early as 18 months prior to the expiration date of the existing lease. Inasmuch as our early renewal program and other leasing and marketing efforts target these expiring leases, we hope to re-lease most of that space prior to expiration of the leases. In the markets in which we operate, we obtain and analyze market rental rates through review of third-party publications, which provide market and submarket rental rate data and through inquiry of property owners and property management companies as to rental rates being quoted at properties that are located in close proximity to our properties and we believe display similar physical attributes as our nearby properties. We use this data to negotiate leases with new tenants and renew leases with our existing tenants at rates we believe to be competitive in the markets for our individual properties. Due to the short term nature of our leases, and based upon our analysis of market rental rates, we believe that, in the aggregate, our current leases are at market rates. Market conditions, including new supply of properties and competition, and macroeconomic conditions in our markets and nationally affecting tenant income, such as employment levels, business conditions, interest rates, tax rates, fuel and energy costs and other matters, could adversely impact our renewal rate and/or the rental rates we are able to negotiate. We continue to monitor our tenants’ operating performances as well as overall economic trends to evaluate any future negative impact on our renewal rates and rental rates, which could adversely affect our cash flow and ability to make distributions to our shareholders. 28 Table of Contents Property Acquisitions and Dispositions  We seek to acquire commercial properties in high-growth markets. 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. We have extensive relationships with community banks, attorneys, title companies and others in the real estate industry, which we believe enables us to take advantage of these market opportunities and maintain an active acquisition pipeline. We market, lease and manage our centers to match tenants with the shared needs of the surrounding neighborhood.  Those needs may include specialty retail, grocery and restaurants as well as medical, educational and financial services.  Our goal is for each property to become a Whitestone-branded business center or retail community that serves a neighboring five-mile radius around each property. Property Acquisitions. 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. The acquisition was funded with a combination of borrowings under the Company’s revolving credit facility and the assumption of mortgage indebtedness secured by the property. On October 31, 2025, we acquired Ashford Village, a property that meets our Community Centered Property® strategy, for $21.7 million in cash and net prorations. Ashford Village, a 81,519 square foot property, was 99.6% leased at the time of purchase and is located in Houston, Texas. The funding for this acquisition was provided by our credit facility. On July 11, 2025, we acquired 1730 S Val Vista, a pad that meets our Community Centered Property® strategy, for $3.5 million in cash and net prorations. 1730 S Val Vista is located in Mesa, Arizona. The funding for this acquisition was provided by our credit facility.               On June 16, 2025, we acquired South Hulen Shopping Center, a property that meets our Community Centered Property® strategy, for $32.4 million in cash and net prorations. South Hulen Shopping Center, a 86,907 square foot property, was 96.4% leased at the time of purchase and is located in Fort Worth, Texas. The funding for this acquisition was provided by our credit facility. On May 5, 2025, we acquired San Clemente, a property that meets our Community Centered Property® strategy, for $12 million in cash and net prorations. San Clemente, a 31,832 square foot property, was 85.8% leased at the time of purchase and is located in Austin, Texas. The funding for this acquisition was partially obtained through a 1031 exchange transaction, utilizing the proceeds [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/WSR/mda/fy2025/ All MD&A years: /company/WSR/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/WSR/mda/fy2024/): filed 2025-03-17; accession 0001437749-25-007990 (https://www.sec.gov/Archives/edgar/data/1175535/000143774925007990/wstr20241231_10k.htm) - [FY 2023 MD&A](/company/WSR/mda/fy2023/): filed 2024-03-13; accession 0001437749-24-007627 (https://www.sec.gov/Archives/edgar/data/1175535/000143774924007627/wstr20231231c_10k.htm) - [FY 2022 MD&A](/company/WSR/mda/fy2022/): filed 2023-03-08; accession 0001437749-23-005812 (https://www.sec.gov/Archives/edgar/data/1175535/000143774923005812/wstr20211231_10k.htm) - [FY 2021 MD&A](/company/WSR/mda/fy2021/): filed 2022-03-11; accession 0001175535-22-000046 (https://www.sec.gov/Archives/edgar/data/1175535/000117553522000046/wsr-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/WSR.md · JSON record: /company/WSR.json · verified financials: /company/WSR/financials.json / /company/WSR/financials.csv · machine TOC for the whole site: /llms.txt