EX-99.2 3 exhibit992supplementaloper.htm EXHIBIT 99.2

TABLE OF CONTENTS |
| Page
Corporate Profile | 1
First Quarter 2019 Earnings Release | 2
Financial Results |
Consolidated Balance Sheets | 8
Consolidated Statements of Operations and Comprehensive Income | 10
Consolidated Statements of Cash Flows | 13
Reconciliation of Non-GAAP Measures | 15
Same Store Property Analysis | 16
Other Financial Information | 18
Market Capitalization and Selected Ratios | 19
Summary of Outstanding Debt and Debt Maturities | 21
Summary of Occupancy and Top Tenants | 23
Summary of Leasing Activity | 26
Lease Expirations | 29
2019 Financial Guidance | 30
Property Details | 31

CORPORATE PROFILE
NYSE: WSR |  | Whitestone REIT (NYSE: WSR) is a self-managed fully integrated real estate investment trust that primarily
Common Shares |  | owns, manages and redevelops high quality retail properties which we refer to as Community Centered
|  | Properties®. As of March 31, 2019, we wholly owned 51 Community Centered Properties® with
51 Community Centers |  | approximately 4.8 million square feet of gross leasable area, located in six of the top markets in the United States in
4.8 Million Sq. Ft. of gross |  | terms of population growth: Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio.
leasable area |  | Headquarted in Houston, Texas, we were founded in 1998. We also owned an 81.4% interest in 11 properties with
1,344 tenants |  | approximately 1.3 million square feet of gross leasable area through our equity investment in Pillarstone
|  | Capital REIT Operating Partnership LP (“Pillarstone OP”).
6 Top Growth Markets |  | We focus on value creation in our properties, as we market, lease and manage our properties. We invest in
Austin |  | properties that are or can become Community Centered Properties® from which our tenants deliver needed services
Chicago |  | to the surrounding community. We focus on properties with smaller rental spaces that present opportunities for
Dallas-Fort Worth |  | attractive returns.
Houston |  |
Phoenix |  | Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide services to their
San Antonio |  | respective surrounding communities. Operations include an internal management structure providing cost-effective
|  | services to locally-oriented, smaller space tenants. Multi-cultural community focus sets us apart from traditional
Fiscal Year End |  | commercial real estate operators. We value diversity on our team and maintain in-house leasing, property
12/31 |  | management, marketing, construction and maintenance departments with culturally diverse and multi-lingual
|  | associates who understand the particular needs of our tenants and neighborhoods.
Common Shares & |  |
Units Outstanding*: |  | We have a diverse tenant base concentrated on service offerings such as specialty retail, grocery, restaurants,
Common Shares: 39.8 Million |  | medical, educational and financial services and entertainment. These tenants tend to occupy smaller spaces (less
Operating Partnership Units: |  | than 3,000 square feet) and, as of March 31, 2019, provided a 46% premium rental rate compared to our larger
0.9 Million |  | space tenants. The largest of our 1,344 tenants at our wholly owned properties comprised only 2.9% of our
|  | annualized base rental revenues for the three months ended March 31, 2019.
Distribution (per share / unit): |  |  |  |  |  |  |  |
Quarter: $ 0.2850 |  | Investor Relations: |  |  |  |
Annualized: $ 1.1400 |  | Whitestone REIT |  |  |  |  |  | ICR Inc.
Dividend Yield: 8.9%** |  | Kevin Reed, Director of Investor Relations |  |  |  | Brad Cohen
|  | 2600 South Gessner, Suite 500, Houston, Texas 77063 |  |  |  | 203.682.8211
Board of Trustees: |  | 713.435.2219 email: ir@whitestonereit.com |  |
Nandita V. Berry |  | website: www.whitestonereit.com |  |
Donald F. Keating |  |  |  |
Najeeb A. Khan |  | Analyst Coverage: |  |  |  |  |  |
Paul T. Lambert |  | B. Riley FBR |  | Boenning & Scattergood |  | JMP Securities |  | Ladenburg Thalmann
Jack L. Mahaffey |  | Craig Kucera |  | Merrill Ross |  | Mitch Germain |  | John J. Massocca
James C. Mastandrea |  | 540.277.3366 |  | 610.862.5328 |  | 212.906.3546 |  | 212.409.2543
David F. Taylor |  | ckucera@brileyfbr.com |  | mross@boenninginc.com |  | mgermain@jmpsecurities.com |  | jmassocca@ladenburg.com
Trustee Emeritus: |  |  |  |  |  |  |  |
Daniel G. DeVos |  | Maxim Group |  | SunTrust Robinson Humphrey |  |  |  |
|  | Michael Diana |  | Ki Bin Kim, CFA |  |  |  |
* As of April 30, 2019 |  | 212.895.3641 |  | 212.303.4124 |  |  |  |
** Based on common share price |  | mdiana@maximgrp.com |  | kibin.kim@suntrust.com |  |  |  |
of $12.83 as of close of market on |  |  |  |  |  |  |  |
April 30, 2019. |  |  |  |  |  |  |  |
|  | We are followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding our performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of our management. We do not by our reference above or distribution imply our endorsement of or concurrence with such information, conclusions or recommendations.

1

Whitestone REIT Reports First Quarter 2019 Results
-Upsized Credit Facility to $515 Million-
-Successful Inaugural Private Placement of $100 Million of Senior Unsecured Notes-
-Reaffirms 2019 Full Year Guidance-
HOUSTON, May 1, 2019 - Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced operating and financial results for the first quarter ended March 31, 2019. Whitestone is a pure-play community-centered retail REIT that acquires, owns, manages, develops and redevelops high quality “E-Commerce Resistant” neighborhood, community and lifestyle retail centers principally located in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone’s optimal mix of national, regional and local tenants provides daily necessities, needed services and entertainment to the communities in which they are located.
Highlights*
*All per share amounts presented in this news release are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.
First Quarter 2019 Compared to First Quarter 2018:

• | Net Income attributable to Whitestone REIT was $2.8 million, or $0.07 per share, compared to $3.2 million, or $0.08 per share

• | Annualized Base Rent (“ABR”) per Leased Squared Foot Grows 5.8% to $19.58

• | 2.4% same store NOI growth

• | Funds from Operations (“FFO”) reach $9.9 million or $0.24 per share versus $10.1 million or $0.24 per share

• | 8.4% increase in rental rates on new and renewal leases on a GAAP basis (trailing twelve months)

Jim Mastandrea, Chairman and Chief Executive Officer of Whitestone REIT commented, “Our team has delivered a positive start to 2019 producing growth in most of our key financial metrics. Our e-commerce resistant model generated a strong increase in same store NOI as we worked to reinvigorate occupancy growth. We also strengthened our capital structure and financial flexibility with the successful closing and upsizing of our credit facility to $515,000,000 and the placement of our first private bond issuance of $100,000,000. While our cycle-tested experience and business model, focusing on high growth markets, may hit some road bumps from time to time, it provides stability and predictability to achieve our long-term goals. We have confidence that our high quality properties in strong growth markets, management team, and business model will continue to produce improving financial results as we move forward to create additional value for all Whitestone shareholders.”
Financial Results
Reconciliations of Net Income to FFO and FFO Core are included herein.
Net Income attributable to Whitestone REIT was $2.8 million, or $0.07 per share, for the first quarter of 2019, compared to $3.2 million, or $0.08 per share, for the same period in 2018. FFO was $9.9 million, or $0.24 per share, for the first quarter of 2019, compared to $10.1 million, or $0.24 per share, for the same period in 2018. FFO Core was $11.8 million, or $0.28 per share, in the first quarter of 2019, compared to $12.7 million, or $0.31 per share, in the same period of 2018.
Operating Results
For the period ending March 31, 2019, the Company’s operating highlights were as follows:

| Q1-2019
Occupancy: |
Wholly Owned Properties | 90.1%
Same Store Property Net Operating Income Growth | 2.4%
Rental Rate Growth - Total (Comparable Leases, GAAP Basis): | 7.2%
New Leases | 9.3%
Renewal Leases | 7.0%
Leasing Transactions: |
Number of New Leases | 27
New Leases - Total Term Revenue (millions) | $3.5
Number of Renewal Leases | 54
Renewal Leases - Total Term Revenue (millions) | $12.3

2

Real Estate Portfolio Update
Community Centered Properties TM Portfolio Statistics:
As of March 31, 2019, Whitestone wholly owned 51 Community Centered Properties TM with 4.8 million square feet of gross leasable area (“GLA”). The portfolio is comprised of 29 properties in Texas, 27 in Arizona and one in Illinois. Whitestone’s Retail Community Centered Properties TM are located in Austin (4), San Antonio (3), Chicago (1), Dallas-Fort Worth (7), Houston (15) and the greater Phoenix metropolitan area (27). In addition to being business friendly, these are five of the top markets in the country in terms of size, economic strength and population growth. 2017 estimates showed the projected 5-year population growth rates for both Austin and Dallas-Fort Worth to be 9.7%, San Antonio to be 8.6%, Houston to be 8.0%, and Phoenix to be 6.6% (1). The Company’s retail properties in these markets are located on the best retail corners embedded in affluent communities. The Company also owns an equity interest in and manages 11 properties containing 1.3 million square feet of GLA through its investment in Pillarstone OP.
At the end of the first quarter, the Company’s diversified tenant base was comprised of approximately 1,344 tenants, with the largest tenant accounting for only 2.9% of annualized base rental revenues. Lease terms range from less than one year for smaller tenants to over 15 years for larger tenants. The Company’s leases generally include minimum monthly lease payments and tenant reimbursements for payment of taxes, insurance and maintenance, and typically exclude restrictive lease clauses.
Leasing Activity:
During the first quarter of 2019, the leasing team signed 81 leases totaling 199,643 square feet in new, expansion and renewal leases, compared to 93 leases totaling 230,983 square feet in the first quarter of 2018. The total lease value was $15.8 million compared to $24.5 million during the same period last year.
The Company’s total operating portfolio occupancy stood at 90.1% at quarter end compared to 90.9% at the end the first quarter 2018.
Balance Sheet and Liquidity
Balance Sheet:
Reflecting the Company’s acquisition and disposition activity during the year and selective development and redevelopment, undepreciated real estate assets increased $2.9 million to $1.055 billion at March 31, 2019 compared to $1.052 billion at March 31, 2018.
Liquidity, Debt and Credit Facility:
On January 31, 2019, the Company closed through its operating partnership, Whitestone REIT Operating Partnership, L.P. (the “Operating Partnership”), a new unsecured credit facility (the “2019 Facility”). The 2019 Facility increased the credit facility to $515 million from $500 million, improved the capitalization rate for the majority of its properties from 7.5% to 7% and reduced overall pricing at the current corporate leverage level by 28 basis points. The 2019 Facility is comprised of the following three tranches:

• | $250.0 million unsecured revolving credit facility with a maturity date of January 1, 2023;

• | $165.0 million unsecured term loan with a maturity date of January 31, 2024; and

• | $100.0 million unsecured term loan with a maturity date of October 30, 2022.

On March 22, 2019, the Company and its Operating Partnership, entered into a Note Purchase and Guarantee Agreement together with certain subsidiary guarantors and The Prudential Insurance Company of America providing for the issuance and sale of $100 million of senior unsecured notes of the Operating Partnership, of which (i) $50 million are designated as 5.09% Series A Senior Notes due March 22, 2029 and (ii) $50 million are designated as 5.17% Series B Senior Notes due March 22, 2029.
At March 31, 2019, 49 of the Company’s wholly-owned 57 properties were unencumbered by mortgage debt, with an undepreciated cost basis of $759.2 million. At March 31, 2019, the Company had total real estate debt of $623.3 million, of which approximately 86% was subject to fixed interest rates. The Company’s weighted average interest rate on all fixed rate debt as of the end of the first quarter was 4.08% and the weighted average remaining term was 6.0 years.
(1) Source: Claritas, as of April 2017.
3

At quarter end, Whitestone had $4.6 million of cash available on its balance sheet and $164.0 million of available capacity under its credit facility.
Dividend
On March 25, 2019, the Company declared a quarterly cash distribution of $0.285 per common share and OP unit for the second quarter of 2019, to be paid in three equal installments of $0.095 in April, May and June of 2019.
2019 Guidance
The Company reaffirms its previously released guidance for 2019 and expects Net income attributable to Whitestone REIT (per share) to be in the range of $0.21 - $0.25; FFO (per share) as defined by NAREIT to be in the range of $0.90 - $0.94; FFO Core as defined by the Company to be in the range of $1.06 - $1.10; and Same Store NOI growth to be in the range of 0.5% - 2%.
Conference Call Information
In conjunction with the issuance of its financial results, you are invited to listen to the Company’s earnings release conference call to be broadcast live on Thursday, May 2, 2019 at 10:00 A.M. Central Time. The call will be led by James C. Mastandrea, Chairman and Chief Executive Officer, and David K. Holeman, Chief Financial Officer. Conference call access information is as follows:
Dial-in number for domestic participants: (866) 548-4713
Dial-in number for international participants: (323) 794-2093
The conference call will be recorded and a telephone replay will be available through Thursday, May 16, 2019. Replay access information is as follows:
Replay number for domestic participants: (844) 512-2921
Replay number for international participants: (412) 317-6671
Passcode (for all participants): 2847697
To listen to a live webcast of the conference call, click on the Investor Relations tab of the Company’s website, www.whitestonereit.com, and then click on the webcast link. A replay of the call will be available on Whitestone’s website via the webcast link until the Company’s next earnings release. Additional information about Whitestone can be found on the Company’s website.
The first quarter earnings release and supplemental data package will be located in the Investor Relations section of the Company’s website. For those without internet access, the earnings release and supplemental data package will be available by mail upon request. To receive a copy, please call the Company’s Investor Relations line at (713) 435-2219.
Supplemental Financial Information
Supplemental materials and details regarding Whitestone’s results of operations, communities and tenants are available on the Company’s website at www.whitestonereit.com.
Financial Statement Presentation Change
On January 1, 2019, the Company adopted the accounting framework for leases, ASU No. 2016-02, Leases (“Topic 842”). The following is a summary of the presentation changes within the 2019 Consolidated Statement of Operations required by the modified retrospective adoption of the new standard:

• | All income related to tenant leases is reflected in a single “Rental” line item.

• | The impact of bad debt is now a component of the single Rental income line item and is no longer a component of Operating and Maintenance expenses. This change is reflected in 2019 reporting periods but has not been made to 2018 historical results.

• | Real estate taxes paid by certain major tenants directly to the taxing authority are no longer reflected in Rental Income and Real estate tax expense. This change is reflected in 2019 reporting periods but has not been made to 2018 historical results.

4

Supplemental footnote support has been provided herein for comparability purposes. The Company’s Net income, Net operating income and Operating FFO were not impacted by these presentation changes.
About Whitestone REIT
Whitestone is a community-centered retail REIT that acquires, owns, manages, develops and redevelops high quality “e-commerce resistant” neighborhood, community and lifestyle retail centers principally located in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone’s optimal mix of national, regional and local tenants provides daily necessities, needed services and entertainment to the communities in which they are located. Whitestone’s properties are primarily located in business-friendly Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio, which are among the fastest growing U.S. population centers with highly educated workforces, high household incomes and strong job growth. Whitestone’s forward-thinking business model has produced industry leading compound annual growth rates in excess of 15% in revenues, property net operating income, funds from operations and net income since its IPO in 2010. For additional information, visit www.whitestonereit.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology, such as “may,” “will,” “plan,” “expect,” “intend,” “anticipate,” “believe,” “continue,” “goals” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to meet its long-term goals, its assumptions regarding its earnings guidance, including its ability to execute effectively its acquisition and disposition strategy, to continue to execute its development pipeline on schedule and at the expected costs, and its ability to grow its NOI as expected, which could be impacted by a number of factors, including, among other things, its ability to continue to renew leases or re-let space on attractive terms and to otherwise address its leasing rollover; its ability to successfully identify, finance and consummate suitable acquisitions, and the impact of such acquisitions, including financing developments, capitalization rates and internal rates of return; the Company’s ability to reduce or otherwise effectively manage its general and administrative expenses; the Company’s ability to fund from cash flows or otherwise distributions to its shareholders at current rates or at all; current adverse market and economic conditions; lease terminations or lease defaults; the impact of competition on the Company’s efforts to renew existing leases; changes in the economies and other conditions of the specific markets in which the Company operates; economic, legislative and regulatory changes, the success of the Company’s real estate strategies and investment objectives; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended; risks relating to the restatement of our consolidated financial statements for the first three quarterly periods of 2018 and related legal proceedings; and other factors detailed in the Company’s most recent Annual Report on Form 10-K, and other documents the Company files with the Securities and Exchange Commission from time to time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This release contains supplemental financial measures that are not calculated pursuant to U.S. generally accepted accounting principles (“GAAP”) including FFO, FFO Core, and NOI. Following are explanations and reconciliations of these metrics to their most comparable GAAP metric.
5

FFO: Management believes that FFO is a useful measure of the Company’s operating performance. The Company computes FFO as defined by NAREIT, which states that FFO should represent net income 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 be the entity. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of the Company’s performance or to cash flow from operations as a measure of liquidity or ability to make distributions and service debt.
Management considers FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, management believes that FFO provides a more meaningful and accurate indication of the Company’s performance and useful information for the investment community to compare Whitestone to other REITs since FFO is generally recognized as the industry standard for reporting the operations of REITs.
Other REITs may use different methodologies for calculating FFO, and accordingly, the Company’s FFO may not be comparable to other REITs. The Company presents FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding OP units for the periods presented.
FFO Core: Management believes that the computation of FFO in accordance with NAREIT’s definition includes certain non-cash and non-comparable items that affect the Company’s period-over-period performance. These items include, but are not limited to, legal settlements, non-cash share-based compensation expense, rent support agreement payments received from sellers on acquired assets and acquisition costs. In addition, the Company believes that FFO Core is a useful supplemental measure for the investing community to use in comparing the Company to other REITs as many REITs provide some form of adjusted or modified FFO. However, other REITs may use different adjustments, and the Company’s FFO Core may not be comparable to the adjusted or modified FFO of other REITs.
NOI: Management believes that NOI is a useful measure of the Company’s property operating performance. The Company defines NOI as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets and capital expenditures and leasing costs, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company’s results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about the Company’s property and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of property performance in the real estate industry. However, NOI should not be viewed as a measure of the Company’s overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company’s NOI may not be comparable to that of other REITs.
Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”): Management believes that EBITDA is an appropriate supplemental measure of operating performance to net income attributable to the Company. The Company defines EBITDA as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes), adjustments for unconsolidated real estate partnership and general and administrative expenses. Management believes that EBITDA provides useful information to the investment community about the Company’s operating performance when compared to other REITs since EBITDA is generally recognized as a standard measure. However, EBITDA should not be viewed as a measure of the Company’s overall financial performance since it does not reflect depreciation and amortization, involuntary conversion, interest expense, provision for income taxes, gain or loss on sale or disposition of assets and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties. Other REITs may use different methodologies for calculating EBITDA and, accordingly, the Company’s EBITDA may not be comparable to other REITs.
Whitestone REIT Contacts:
Investors Contact:
6

Kevin Reed, Director of Investor Relations
Whitestone REIT
(713) 435-2219
ir@whitestonereit.com
7

Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
|  | March 31, 2019 |  | December 31, 2018
|  | (unaudited) |  |
ASSETS
Real estate assets, at cost |  |  |  |
Property |  | $ | 1,054,889 |  |  | $ | 1,052,238 |
Accumulated depreciation |  | (119,288 | ) |  | (113,300 | )
Total real estate assets |  | 935,601 |  |  | 938,938 |
Investment in real estate partnership |  | 26,138 |  |  | 26,236 |
Cash and cash equivalents |  | 4,580 |  |  | 13,658 |
Restricted cash |  | 100 |  |  | 128 |
Escrows and acquisition deposits |  | 6,386 |  |  | 8,211 |
Accrued rents and accounts receivable, net of allowance for doubtful accounts |  | 22,746 |  |  | 21,642 |
Receivable due from related party |  | 965 |  |  | 394 |
Financed receivable due from related party |  | 5,661 |  |  | 5,661 |
Unamortized lease commissions and loan costs |  | 9,228 |  |  | 6,698 |
Prepaid expenses and other assets(1) |  | 7,250 |  |  | 7,306 |
Total assets |  | $ | 1,018,655 |  |  | $ | 1,028,872 |
LIABILITIES AND EQUITY
Liabilities: |  |  |  |
Notes payable |  | $ | 622,918 |  |  | $ | 618,205 |
Accounts payable and accrued expenses(2) |  | 29,650 |  |  | 33,729 |
Payable due to related party |  | 204 |  |  | 58 |
Tenants' security deposits |  | 6,213 |  |  | 6,130 |
Dividends and distributions payable |  | 11,617 |  |  | 11,600 |
Total liabilities |  | 670,602 |  |  | 669,722 |
Commitments and contingencies: |  | — |  |  | — |
Equity: |  |  |  |
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of March 31, 2019 and December 31, 2018, respectively |  | — |  |  | — |
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 39,828,745 and 39,778,029 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively |  | 40 |  |  | 39 |
Additional paid-in capital |  | 528,815 |  |  | 527,662 |
Accumulated deficit |  | (189,938 | ) |  | (181,361 | )
Accumulated other comprehensive gain |  | 726 |  |  | 4,116 |
Total Whitestone REIT shareholders' equity |  | 339,643 |  |  | 350,456 |
Noncontrolling interest in subsidiary |  | 8,410 |  |  | 8,694 |
Total equity |  | 348,053 |  |  | 359,150 |
Total liabilities and equity |  | $ | 1,018,655 |  |  | $ | 1,028,872 |

8

Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands)

|  | March 31, 2019 |  | December 31, 2018
|  | (unaudited) |  |

(1) Operating lease right of use assets (net) (related to adoption of Topic 842) |  | $ | 914 |  |  | N/A

(2) Operating lease liabilities (related to adoption of Topic 842) |  | $ | 916 |  |  | N/A

9

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

|  | Three Months Ended March 31,
|  | 2019 |  | 2018
Revenues |  |  |  |
Rental(1) |  | $ | 29,033 |  |  | $ | 29,299 |
Management, transaction, and other fees |  | 661 |  |  | 486 |
Total revenues |  | 29,694 |  |  | 29,785 |
Property expenses |  |  |  |
Depreciation and amortization |  | 6,464 |  |  | 6,274 |
Operating and maintenance |  | 4,428 |  |  | 4,856 |
Real estate taxes |  | 4,045 |  |  | 3,976 |
General and administrative(2) |  | 6,002 |  |  | 6,327 |
Total operating expenses |  | 20,939 |  |  | 21,433 |
Other expenses (income) |  |  |  |
Interest expense |  | 6,533 |  |  | 5,973 |
Gain on sale of properties |  | — |  |  | (249 | )
Loss on sale or disposal of assets |  | 2 |  |  | 180 |
Interest, dividend and other investment income |  | (245 | ) |  | (257 | )
Total other expense |  | 6,290 |  |  | 5,647 |
Income from operations before equity investments in real estate partnerships and income tax |  | 2,465 |  |  | 2,705 |
Equity in earnings of real estate partnership |  | 492 |  |  | 674 |
Provision for income tax |  | (118 | ) |  | (110 | )
Net income |  | 2,839 |  |  | 3,269 |
Less: Net income attributable to noncontrolling interests |  | 65 |  |  | 88 |
Net income attributable to Whitestone REIT |  | $ | 2,774 |  |  | $ | 3,181 |

10

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(in thousands, except per share data)

|  | Three Months Ended March 31,
|  | 2019 |  | 2018
Basic Earnings Per Share: |  |  |  |
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares |  | $ | 0.07 |  |  | $ | 0.08 |
Diluted Earnings Per Share: |  |  |  |
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares |  | $ | 0.07 |  |  | $ | 0.08 |
Weighted average number of common shares outstanding: |  |  |  |
Basic |  | 39,649 |  |  | 39,066 |
Diluted |  | 40,626 |  |  | 40,088 |
Consolidated Statements of Comprehensive Income |  |  |  |
Net income |  | $ | 2,839 |  |  | $ | 3,269 |
Other comprehensive gain |  |  |  |
Unrealized gain (loss) on cash flow hedging activities |  | (3,470 | ) |  | 2,645 |
Unrealized gain on available-for-sale marketable securities |  | — |  |  | 18 |
Comprehensive income (loss) |  | (631 | ) |  | 5,932 |
Less: Net income attributable to noncontrolling interests |  | 65 |  |  | 88 |
Less: Comprehensive gain (loss) attributable to noncontrolling interests |  | (80 | ) |  | 71 |
Comprehensive income (loss) attributable to Whitestone REIT |  | $ | (616 | ) |  | $ | 5,773 |

11

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

|  | Three Months Ended March 31,
|  | 2019 |  | 2018

(1) Rental |  |  |  |
Rental revenues |  | $ | 21,751 |  |  | $ | 21,672 |
Recoveries |  | 7,554 |  |  | 7,627 |
Bad debt |  | (272 | ) |  | N/A |
Total rental |  | $ | 29,033 |  |  | $ | 29,299 |

(2) Bad debt (prior to adoption of Topic 842) |  | N/A |  | $ | 446 |

12

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

|  | Three Months Ended
|  | March 31,
|  | 2019 |  | 2018
Cash flows from operating activities: |  |  |  |
Net income |  | $ | 2,839 |  |  | $ | 3,269 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
Depreciation and amortization |  | 6,464 |  |  | 6,274 |
Amortization of deferred loan costs |  | 237 |  |  | 302 |
Loss on sale of marketable securities |  | — |  |  | 20 |
Loss (gain) on sale or disposal of assets and properties |  | 2 |  |  | (69 | )
Bad debt expense |  | 272 |  |  | 446 |
Share-based compensation |  | 1,883 |  |  | 1,845 |
Equity in earnings of real estate partnership |  | (492 | ) |  | (674 | )
Changes in operating assets and liabilities: |  |  |  |
Escrows and acquisition deposits |  | 1,825 |  |  | 2,359 |
Accrued rents and accounts receivable |  | (1,376 | ) |  | (1,115 | )
Receivable due from related party |  | (571 | ) |  | 110 |
Distributions from real estate partnership |  | 301 |  |  | 505 |
Unamortized lease commissions and loan costs |  | 775 |  |  | (403 | )
Prepaid expenses and other assets |  | (2,245 | ) |  | 437 |
Accounts payable and accrued expenses |  | (4,078 | ) |  | (7,297 | )
Payable due to related party |  | 146 |  |  | (980 | )
Tenants' security deposits |  | 83 |  |  | 72 |
Net cash provided by operating activities |  | 6,065 |  |  | 5,101 |
Cash flows from investing activities: |  |  |  |
Additions to real estate |  | (2,455 | ) |  | (4,043 | )
Proceeds from sales of properties |  | — |  |  | 4,433 |
Proceeds from sales of marketable securities |  | — |  |  | 30 |
Net cash provided by (used in) investing activities |  | (2,455 | ) |  | 420 |
Cash flows from financing activities: |  |  |  |
Distributions paid to common shareholders |  | (11,301 | ) |  | (11,145 | )
Distributions paid to OP unit holders |  | (264 | ) |  | (309 | )
Payments of exchange offer costs |  | (6 | ) |  | — |
Proceeds from bonds payable |  | 100,000 |  |  | — |
Net proceeds from (payments to) credit facility |  | (90,200 | ) |  | 9,000 |
Repayments of notes payable |  | (6,202 | ) |  | (578 | )
Payments of loan origination costs |  | (3,981 | ) |  | — |
Repurchase of common shares |  | (762 | ) |  | (466 | )
Net cash used in financing activities |  | (12,716 | ) |  | (3,498 | )
Net increase (decrease) in cash, cash equivalents and restricted cash |  | (9,106 | ) |  | 2,023 |
Cash, cash equivalents and restricted cash at beginning of period |  | 13,786 |  |  | 5,210 |
Cash, cash equivalents and restricted cash at end of period |  | $ | 4,680 |  |  | $ | 7,233 |

13

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

|  | Three Months Ended
|  | March 31,
|  | 2019 |  | 2018
Supplemental disclosure of cash flow information: |  |  |  |
Cash paid for interest |  | $ | 6,268 |  |  | $ | 5,806 |
Non cash investing and financing activities: |  |  |  |
Disposal of fully depreciated real estate |  | $ | 89 |  |  | $ | — |
Financed insurance premiums |  | $ | 1,238 |  |  | $ | 1,273 |
Value of shares issued under dividend reinvestment plan |  | $ | 34 |  |  | $ | 33 |
Value of common shares exchanged for OP units |  | $ | 5 |  |  | $ | 4 |
Change in fair value of available-for-sale securities |  | $ | — |  |  | $ | 18 |
Change in fair value of cash flow hedge |  | $ | (3,470 | ) |  | $ | 2,645 |

14

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)

|  | Three Months Ended
|  | March 31,
FFO (NAREIT) AND FFO CORE |  | 2019 |  | 2018
Net income attributable to Whitestone REIT |  | $ | 2,774 |  |  | $ | 3,181 |
Adjustments to reconcile to FFO: |  |  |  |
Depreciation and amortization of real estate |  | 6,395 |  |  | 6,207 |
Depreciation and amortization of real estate assets of real estate partnership (pro rata) |  | 621 |  |  | 695 |
(Gain) loss on sale or disposal of assets and properties |  | 2 |  |  | (69 | )
Gain on sale or disposal of properties or assets of real estate partnership (pro rata) |  | 3 |  |  | — |
Net income attributable to noncontrolling interests |  | 65 |  |  | 88 |
FFO (NAREIT) |  | 9,860 |  |  | 10,102 |
Adjustments to reconcile to FFO Core: |  |  |  |
Share-based compensation expense |  | 1,951 |  |  | 1,908 |
Proxy contest professional fees |  | — |  |  | 680 |
FFO Core |  | $ | 11,811 |  |  | $ | 12,690 |
FFO PER SHARE AND OP UNIT CALCULATION |  |  |  |
Numerator: |  |  |  |
FFO |  | $ | 9,860 |  |  | $ | 10,102 |
Distributions paid on unvested restricted common shares |  | (41 | ) |  | (41 | )
FFO excluding amounts attributable to unvested restricted common shares |  | $ | 9,819 |  |  | $ | 10,061 |
FFO Core excluding amounts attributable to unvested restricted common shares |  | $ | 11,770 |  |  | $ | 12,649 |
Denominator: |  |  |  |
Weighted average number of total common shares - basic |  | 39,649 |  |  | 39,066 |
Weighted average number of total noncontrolling OP units - basic |  | 928 |  |  | 1,083 |
Weighted average number of total common shares and noncontrolling OP units - basic |  | 40,577 |  |  | 40,149 |
Effect of dilutive securities: |  |  |  |
Unvested restricted shares |  | 977 |  |  | 1,022 |
Weighted average number of total common shares and noncontrolling OP units - diluted |  | 41,554 |  |  | 41,171 |
FFO per common share and OP unit - basic |  | $ | 0.24 |  |  | $ | 0.25 |
FFO per common share and OP unit - diluted |  | $ | 0.24 |  |  | $ | 0.24 |
FFO Core per common share and OP unit - basic |  | $ | 0.29 |  |  | $ | 0.32 |
FFO Core per common share and OP unit - diluted |  | $ | 0.28 |  |  | $ | 0.31 |

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)

|  | Three Months Ended
|  | March 31,
PROPERTY NET OPERATING INCOME |  | 2019 |  | 2018
Net income attributable to Whitestone REIT |  | $ | 2,774 |  |  | $ | 3,181 |
General and administrative expenses |  | 6,002 |  |  | 6,327 |
Depreciation and amortization |  | 6,464 |  |  | 6,274 |
Equity in earnings of real estate partnership |  | (492 | ) |  | (674 | )
Interest expense |  | 6,533 |  |  | 5,973 |
Interest, dividend and other investment income |  | (245 | ) |  | (257 | )
Provision for income taxes |  | 118 |  |  | 110 |
Gain on sale of properties |  | — |  |  | (249 | )
Management fee, net of related expenses |  | (8 | ) |  | (53 | )
Loss on disposal of assets |  | 2 |  |  | 180 |
NOI of real estate partnership (pro rata) |  | 1,759 |  |  | 2,032 |
Net income attributable to noncontrolling interests |  | 65 |  |  | 88 |
NOI |  | $ | 22,972 |  |  | $ | 22,932 |

|  | Three Months Ended
|  | March 31,
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION |  | 2019 |  | 2018
Net income attributable to Whitestone REIT |  | $ | 2,774 |  |  | $ | 3,181 |
Depreciation and amortization |  | 6,464 |  |  | 6,274 |
Equity in earnings of real estate partnership |  | (492 | ) |  | (674 | )
Interest expense |  | 6,533 |  |  | 5,973 |
Provision for income taxes |  | 118 |  |  | 110 |
Gain on sale of properties |  | — |  |  | (249 | )
Loss on disposal of assets |  | 2 |  |  | 180 |
Management fee, net of related expenses |  | (8 | ) |  | (53 | )
EBITDA adjustments for real estate partnership |  | 1,671 |  |  | 1,956 |
Net income attributable to noncontrolling interests |  | 65 |  |  | 88 |
EBITDA |  | $ | 17,127 |  |  | $ | 16,786 |

15

Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)

|  | Three Months Ended |  |  |  |
|  | March 31, |  | Increase |  | % Increase
|  | 2019 |  | 2018 |  | (Decrease) |  | (Decrease)
Same Store(1) (49 properties excluding development land) |  |  |  |  |  |  |  |
Property revenues |  |  |  |  |  |  |  |
Rental |  | $ | 29,033 |  |  | $ | 29,010 |  |  | $ | 23 |  |  | — | %
Management, transaction and other fees |  | 428 |  |  | 229 |  |  | 199 |  |  | 87 | %
Total property revenues |  | 29,461 |  |  | 29,239 |  |  | 222 |  |  | 1 | %
Property expenses |  |  |  |  |  |  |  |
Property operation and maintenance |  | 4,178 |  |  | 4,565 |  |  | (387 | ) |  | (8 | )%
Real estate taxes |  | 4,045 |  |  | 3,939 |  |  | 106 |  |  | 3 | %
Total property expenses |  | 8,223 |  |  | 8,504 |  |  | (281 | ) |  | (3 | )%
Total same store net operating income |  | 21,238 |  |  | 20,735 |  |  | 503 |  |  | 2 | %
Non-Same Store(2) (4 Properties excluding development land) |  |  |  |  |  |  |  |
Property revenues |  |  |  |  |  |  |  |
Lease revenues |  | — |  |  | 289 |  |  | (289 | ) |  | Not meaningful |
Management, transaction and other fees |  | — |  |  | 2 |  |  | (2 | ) |  | Not meaningful |
Total property revenues |  | — |  |  | 291 |  |  | (291 | ) |  | Not meaningful |
Property expenses |  |  |  |  |  |  |  |
Property operation and maintenance |  | 25 |  |  | 89 |  |  | (64 | ) |  | Not meaningful |
Real estate taxes |  | — |  |  | 37 |  |  | (37 | ) |  | Not meaningful |
Total property expenses |  | 25 |  |  | 126 |  |  | (101 | ) |  | Not meaningful |
Total Non-Same Store net operating income |  | (25 | ) |  | 165 |  |  | (190 | ) |  | Not meaningful |
Pro rata share of real estate partnership |  | 1,759 |  |  | 2,032 |  |  | (273 | ) |  | (13 | )%
Total property net operating income |  | 22,972 |  |  | 22,932 |  |  | 40 |  |  | — | %
Less total other expenses, excluding pro rata share of real estate partnership net operating income, provision for income taxes, gain on sale of properties and gain (loss) on disposal of assets |  | 20,133 |  |  | 19,663 |  |  | 470 |  |  | 2 | %
Net income |  | $ | 2,839 |  |  | $ | 3,269 |  |  | $ | (430 | ) |  | (13 | )%

16

(1) | We define “Same Stores” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended March 31, 2019 to the three months ended March 31, 2018, Same Stores include properties owned before January 1, 2018 and not sold before March 31, 2019.

(2) | We define “Non-Same Stores” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. For purposes of comparing the three months ended March 31, 2019 to the three months ended March 31, 2018, Non-Same Stores include properties acquired between January 1, 2018 and March 31, 2019 and properties sold between January 1, 2018 and March 31, 2019, but not included in discontinued operations.

17

Whitestone REIT and Subsidiaries OTHER FINANCIAL INFORMATION (in thousands, except number of properties and employees)
|  | Three Months Ended
|  | March 31,
|  | 2019 |  | 2018
Other Financial Information:(1) |  |  |  |
Tenant improvements (2) |  | $ | 562 |  |  | $ | 832 |
Leasing commissions (2) |  | $ | 458 |  |  | $ | 468 |
Maintenance capital |  | $ | 969 |  |  | $ | 1,037 |
Scheduled debt principal payments |  | $ | 521 |  |  | $ | 589 |
Straight line rent income |  | $ | 538 |  |  | $ | 434 |
Market rent amortization income from acquired leases |  | $ | 261 |  |  | $ | 246 |
Non-cash share-based compensation expense |  | $ | 1,951 |  |  | $ | 1,908 |
Non-real estate depreciation and amortization |  | $ | 69 |  |  | $ | 67 |
Amortization of loan fees |  | $ | 257 |  |  | $ | 322 |
Acquisition costs |  | $ | — |  |  | $ | — |
Undepreciated value of unencumbered properties |  | $ | 778,762 |  |  | $ | 753,683 |
Number of unencumbered properties |  | 49 |  |  | 48 |
Full time employees |  | 97 |  |  | 101 |

(1) | Includes pro-rata share attributable to real estate partnership.

(2) | Does not include first generation costs needed for new acquisitions, development or redevelopment of a property to bring the property to operating standards for its intended use.

18

Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(in thousands, except per share amounts and percentages)

|  | As of March 31, 2019
MARKET CAPITALIZATION: |  | Percent of Total Equity |  | Total Market Capitalization |  | Percent of Total Market Capitalization
Equity Capitalization: |  |  |  |  |  |
Common shares outstanding |  | 97.7 | % |  | 39,829 |  |  |
Operating partnership units outstanding |  | 2.3 | % |  | 928 |  |  |
Total |  | 100.0 | % |  | 40,757 |  |  |
Market price of common shares as of |  |  |  |  |  |
March 29, 2019 |  |  |  | $ | 12.02 |  |  |
Total equity capitalization |  |  |  | 489,899 |  |  | 44 | %
Debt Capitalization: |  |  |  |  |  |
Outstanding debt |  |  |  | $ | 624,290 |  |  |
Less: Cash and cash equivalents |  |  |  | (4,580 | ) |  |
Total debt capitalization |  |  |  | 619,710 |  |  | 56 | %
Total Market Capitalization as of |  |  |  |  |  |
March 31, 2019 |  |  |  | $ | 1,109,609 |  |  | 100 | %

SELECTED RATIOS: |  |  |  |
|  | Three Months Ended
|  | March 31,
INTEREST COVERAGE RATIO |  | 2019 |  | 2018
EBITDA/Interest Expense |  |  |  |
EBITDA |  | $ | 17,127 |  |  | $ | 16,786 |
Interest expense |  | 6,533 |  |  | 5,973 |
Pro rata share of interest expense from real estate partnership |  | 424 |  |  | 543 |
Less: amortization of loan fees |  | (257 | ) |  | (322 | )
Interest expense, excluding amortization of loan fees |  | 6,700 |  |  | 6,194 |
Ratio of EBITDA to interest expense |  | 2.6 |  |  | 2.7 |

19

Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(continued)
(in thousands, except per share amounts and percentages)

LEVERAGE RATIO |  | March 31,
|  | 2019 |  | 2018
Debt/Undepreciated Book Value |  |  |  |
Outstanding debt |  | $ | 624,290 |  |  | $ | 621,419 |
Less: Cash |  | (4,580 | ) |  | (6,976 | )
Add: Proportional share of net debt of real estate partnership |  | 33,705 |  |  | 39,812 |
Outstanding debt after cash |  | $ | 653,415 |  |  | $ | 654,255 |
Undepreciated real estate assets |  | $ | 1,054,889 |  |  | $ | 1,051,984 |
Add: Proportional share of real estate from unconsolidated partnership |  | 63,876 |  |  | 68,723 |
Undepreciated real estate assets |  | $ | 1,118,765 |  |  | $ | 1,120,707 |
Ratio of debt to real estate assets |  | 58 | % |  | 58 | %

|  | Three Months Ended
|  | March 31,
|  | 2019 |  | 2018
Debt/EBITDA Ratio |  |  |  |
Outstanding debt |  | $ | 624,290 |  |  | $ | 621,419 |
Less: Cash |  | (4,580 | ) |  | (6,976 | )
Add: Proportional share of net debt of unconsolidated real estate partnership |  | 33,705 |  |  | 39,812 |
Total Net Debt |  | $ | 653,415 |  |  | $ | 654,255 |
EBITDA |  | $ | 17,127 |  |  | $ | 16,786 |
Share based compensation |  | 1,951 |  |  | 1,908 |
Proxy contest costs |  | — |  |  | 680 |
EBITDA, adjusted |  | $ | 19,078 |  |  | $ | 19,374 |
Pro forma annualized EBITDA, adjusted (1) |  | $ | 76,312 |  |  | $ | 77,496 |
Ratio of debt to pro forma EBITDA, adjusted |  | 8.6 |  | 8.4

(1) | Pro forma annualized EBITDA, adjusted represents pro forma quarterly EBITDA, adjusted multiplied by four.

20

Whitestone REIT and Subsidiaries
SUMMARY OF OUTSTANDING DEBT AND DEBT MATURITIES
TOTAL OUTSTANDING DEBT
(in thousands)

Description |  | March 31, 2019 |  | December 31, 2018
Fixed rate notes |  |  |  |
$10.5 million, LIBOR plus 2.00% Note, due September 24, 2020 (1) |  | $ | 9,440 |  |  | $ | 9,500 |
$50.0 million, 1.75% plus 1.35% to 1.90% Note, due October 30, 2020 (2) |  | — |  |  | 50,000 |
$50.0 million, 1.50% plus 1.35% to 1.90% Note, due January 29, 2021 (3) |  | — |  |  | 50,000 |
$100.0 million, 3.33% Note, due October 30, 2022 (4) |  | 100,000 |  |  | 100,000 |
$165.0 million, 2.24% plus 1.35% to 1.90% Note, due January 31, 2024 (5) |  | 165,000 |  |  | — |
$80.0 million, 3.72% Note, due June 1, 2027 |  | 80,000 |  |  | 80,000 |
$6.5 million 3.80% Note, due January 1, 2019 |  | — |  |  | 5,657 |
$19.0 million 4.15% Note, due December 1, 2024 |  | 19,000 |  |  | 19,000 |
$20.2 million 4.28% Note, due June 6, 2023 |  | 18,900 |  |  | 18,996 |
$14.0 million 4.34% Note, due September 11, 2024 |  | 13,658 |  |  | 13,718 |
$14.3 million 4.34% Note, due September 11, 2024 |  | 14,300 |  |  | 14,300 |
$15.1 million 4.99% Note, due January 6, 2024 |  | 14,583 |  |  | 14,643 |
$2.6 million 5.46% Note, due October 1, 2023 |  | 2,419 |  |  | 2,430 |
$50.0 million, 5.09% Note, due March 22, 2029 |  | 50,000 |  |  | — |
$50.0 million, 5.17% Note, due March 22, 2029 |  | 50,000 |  |  | — |
$1.2 million 4.35% Note, due November 28, 2019 |  | 990 |  |  | — |
Floating rate notes |  |  |  |
Unsecured line of credit, LIBOR plus 1.40% to 1.90%, due January 1, 2023(6) |  | 86,000 |  |  | 241,200 |
Total notes payable principal |  | 624,290 |  |  | 619,444 |
Less deferred financing costs, net of accumulated amortization |  | (1,372 | ) |  | (1,239 | )
Total notes payable |  | $ | 622,918 |  |  | $ | 618,205 |

(1) | Promissory note includes an interest rate swap that fixed the interest rate at 3.55% for the duration of the term through September 24, 2018 and 4.85% beginning September 24, 2018 through September 24, 2020.

(2) | Promissory note includes an interest rate swap that fixed the LIBOR portion at 0.84% through February 3, 2017 and 1.75% beginning February 3, 2017 through October 30, 2020.

(3) | Promissory note includes an interest rate swap that fixed the LIBOR portion at 1.50%.

(4) | Promissory note includes an interest rate swap that fixed the interest rate at 1.73% for the duration of the term through January 31, 2019 and 3.33% beginning January 31, 2019 through October 30, 2022.

(5) | Promissory note includes an interest rate swap that fixed the LIBOR portion of the interest rate at an average rate of 2.24% for the duration of the term through January 31, 2024.

(6) | Unsecured line of credit includes certain Pillarstone Properties as of December 31, 2018.

21

SCHEDULE OF DEBT MATURITIES AS OF MARCH 31, 2019
(in thousands)

Year |  | Amount Due
2019 |  | $ | 2,044 |
2020 |  | 10,801 |
2021 |  | 1,611 |
2022 |  | 101,683 |
2023 |  | 113,863 |
Thereafter |  | 394,288 |
Total |  | $ | 624,290 |

22

Whitestone REIT and Subsidiaries SUMMARY OF OCCUPANCY AND TOP TENANTS
|  | Gross Leasable Area as of |  | Occupancy % as of
|  | March 31, |  | March 31, |  | December 31, |  | September 30, |  | June 30,
Community Centered Properties® |  | 2019 |  | 2019 |  | 2018 |  | 2018 |  | 2018
Whitestone |  | 4,841,660 |  |  | 90 | % |  | 90 | % |  | 92 | % |  | 91 | %
Unconsolidated real estate partnership |  | 1,307,930 |  |  | 79 | % |  | 80 | % |  | 80 | % |  | 77 | %

23

Whitestone REIT and Subsidiaries SUMMARY OF OCCUPANCY AND TOP TENANTS (continued)
Tenant Name(1) |  | Location |  | Annualized Rental Revenue (in thousands) |  | Percentage of Total Annualized Base Rental Revenues (2) |  | Initial Lease Date |  | Year Expiring
Safeway Stores Incorporated (3) |  | Austin, Houston and Phoenix |  | $ | 2,447 |  |  | 2.9 | % |  | 11/14/1982, 5/8/1991, 7/1/2000, 4/1/2014, 4/1/2014 and 10/19/16 |  | 2020, 2020, 2021, 2022, 2024 and 2034
Whole Foods Market |  | Houston |  | 2,042 |  |  | 2.4 | % |  | 9/3/2014 |  | 2035
Frost Bank |  | Houston |  | 1,872 |  |  | 2.2 | % |  | 7/1/2014 |  | 2024
Newmark Real Estate of Houston LLC |  | Houston |  | 1,188 |  |  | 1.4 | % |  | 10/1/2015 |  | 2026
Walgreens & Co. (4) |  | Houston and Phoenix |  | 946 |  |  | 1.1 | % |  | 11/14/1982, 11/2/1987, 8/24/1996 and 11/3/1996 |  | 2022, 2027, 2049 and 2056
Verizon Wireless (5) |  | Houston and Phoenix |  | 883 |  |  | 1.1 | % |  | 8/16/1994, 2/1/2004, 5/10/2004, 1/27/2006 and 5/1/2014 |  | 2019, 2019, 2022, 2023 and 2024
Bashas’ Inc. (6) |  | Phoenix |  | 823 |  |  | 1.0 | % |  | 10/9/2004 and 4/1/2009 |  | 2024 and 2029
Alamo Drafthouse Cinema |  | Austin |  | 690 |  |  | 0.8 | % |  | 2/1/2012 |  | 2027
Dollar Tree (7) |  | Houston and Phoenix |  | 604 |  |  | 0.7 | % |  | 8/10/1999, 6/29/2001, 11/8/2009, 12/17/2009, and 5/21/2013 |  | 2020, 2021, 2023, 2025 and 2027
Wells Fargo & Company (8) |  | Phoenix |  | 553 |  |  | 0.7 | % |  | 10/24/1996 and 4/16/1999 |  | 2022 and 2023
Kroger Co. |  | Dallas |  | 483 |  |  | 0.6 | % |  | 12/15/2000 |  | 2022
Ruth’s Chris Steak House Inc. |  | Phoenix |  | 466 |  |  | 0.6 | % |  | 1/1/1991 |  | 2030
Regus Corporation |  | Houston |  | 434 |  |  | 0.5 | % |  | 5/23/2014 |  | 2025
Paul’s Ace Hardware |  | Phoenix |  | 427 |  |  | 0.5 | % |  | 3/1/2008 |  | 2023
Original Ninfas LP |  | Houston |  | 395 |  |  | 0.5 | % |  | 8/29/2018 |  | 2029
|  |  |  | $ | 14,253 |  |  | 17.0 | % |  |  |  |

(1) | Excludes Pillarstone OP owned properties.

(2) | Annualized Base Rental Revenues represents the monthly base rent as of March 31, 2019 for each applicable tenant multiplied by 12.

24

(3) | As of March 31, 2019, we had six leases with the same tenant occupying space at properties located in Phoenix, Houston and Austin. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2034, was $997,000, which represents approximately 1.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2014, and is scheduled to expire in 2024, was $42,000, which represents less than 0.1% of our annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 8, 1991, and is scheduled to expire in 2021, was $344,000, which represents approximately 0.4% 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 2020, was $321,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in 2022, was $318,000, which represents approximately 0.4% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on October 19, 2016, and is scheduled to expire in 2020, was $425,000, which represents approximately 0.5% of our total annualized base rental revenue.

(4) | As of March 31, 2019, we had four leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on November 3, 1996, and is scheduled to expire in 2049, 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 2, 1987, and is scheduled to expire in 2027, was $189,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 14, 1982, and is scheduled to expire in 2022, was $181,000, which represents approximately 0.2% of our total annualized base rental revenue. 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 0.4% of our total annualized rental revenue.

(5) | As of March 31, 2019, we had five leases with the same tenant occupying space at properties located in Phoenix and Houston. The annualized rental revenue for the lease that commenced on August 16, 1994, and is scheduled to expire in 2019, was $21,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on January 27, 2006, and is scheduled to expire in 2023, was $132,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on February 1, 2004, and is scheduled to expire in 2019, was $43,000, which represents less than 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 1, 2014, and is scheduled to expire in 2024, was $681,000, which represents approximately 0.8% of our total annualized rental revenue. The annualized rental revenue for the lease that commenced on May 10, 2004, and is scheduled to expire in 2022, was $6,000, which represents less than 0.1% of our total annualized base rental revenue.

(6) | As of March 31, 2019, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 9, 2004, and is scheduled to expire in 2024, was $119,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 1, 2009, and is scheduled to expire in 2029, was $704,000, which represents approximately 0.8% of our total annualized base rental revenue.

(7) | As of March 31, 2019, 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 10, 1999, and is scheduled to expire in 2025, 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 December 17, 2009, and is scheduled to expire in 2020, was $110,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on June 29, 2001, and is scheduled to expire in 2021, was $145,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 21, 2013, and is scheduled to expire in 2023, was $110,000, which represents approximately 0.1% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 8, 2009, and is scheduled to expire in 2027, was $151,000, which represents approximately 0.2% of our total annualized base rental revenue.

(8) | As of March 31, 2019, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on October 24, 1996, and is scheduled to expire in 2022, was $131,000, which represents approximately 0.2% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on April 16, 1999, and is scheduled to expire in 2023, was $421,000, which represents approximately 0.5% of our total annualized base rental revenue.

25

Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY
|  | Three Months Ended
|  | March 31,
|  | 2019 |  | 2018
RENEWALS |  |  |  |
Number of Leases |  | 54 |  |  | 59 |
Total Square Feet (1) |  | 145,924 |  |  | 145,989 |
Average Square Feet |  | 2,702 |  |  | 2,474 |
Total Lease Value |  | $ | 12,314,000 |  |  | $ | 15,374,000 |
NEW LEASES |  |  |  |
Number of Leases |  | 27 |  |  | 34 |
Total Square Feet (1) |  | 53,719 |  |  | 84,994 |
Average Square Feet |  | 1,990 |  |  | 2,500 |
Total Lease Value |  | $ | 3,512,000 |  |  | $ | 9,168,000 |
TOTAL LEASES |  |  |  |
Number of Leases |  | 81 |  |  | 93 |
Total Square Feet (1) |  | 199,643 |  |  | 230,983 |
Average Square Feet |  | 2,465 |  |  | 2,484 |
Total Lease Value |  | $ | 15,826,000 |  |  | $ | 24,542,000 |

(1) | Represents the square footage as the result of new, renewal, expansion and contraction leases.

26

Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY
Type |  | Number of Leases Signed |  | Lease Value Signed |  | GLA Signed |  | Weighted Average Lease Term (2) |  | TI and Incentives (3) |  | TI and Incentives per Sq. Ft. |  | Contractual Rent Per Sq. Ft. (4) |  | Prior Contractual Rent Per Sq. Ft. (5) |  | Annual Increase (Decrease) in Contractual Rent |  | Cash Basis Increase (Decrease) Over Prior Rent |  | Annual Increase (Decrease) in Straight-lined Rent |  | Straight-lined Basis Increase (Decrease) Over Prior Rent
Comparable: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Comparable Total Leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1st Quarter 2019 |  | 63 |  |  | $ | 13,356,942 |  |  | 159,291 |  |  | 3.9 |  |  | $ | 249,511 |  |  | $ | 1.57 |  |  | $ | 19.74 |  |  | $ | 19.95 |  |  | $ | (32,649 | ) |  | (1.0 | )% |  | $ | 217,369 |  |  | 7.2 | %
4th Quarter 2018 |  | 61 |  |  | 15,206,873 |  |  | 121,337 |  |  | 4.3 |  |  | 627,521 |  |  | 5.17 |  |  | 24.51 |  |  | 25.10 |  |  | (70,929 | ) |  | (2.4 | )% |  | 136,272 |  |  | 4.5 | %
3rd Quarter 2018 |  | 48 |  |  | 12,293,596 |  |  | 106,582 |  |  | 4.8 |  |  | 730,548 |  |  | 6.85 |  |  | 22.48 |  |  | 21.86 |  |  | 66,514 |  |  | 2.8 | % |  | 337,129 |  |  | 15.5 | %
2nd Quarter 2018 |  | 44 |  |  | 6,742,884 |  |  | 101,947 |  |  | 3.5 |  |  | 160,900 |  |  | 1.58 |  |  | 16.18 |  |  | 15.86 |  |  | 32,477 |  |  | 2.0 | % |  | 130,890 |  |  | 8.3 | %
Total - 12 months |  | 216 |  |  | $ | 47,600,295 |  |  | 489,157 |  |  | 4.1 |  |  | $ | 1,768,480 |  |  | $ | 3.62 |  |  | $ | 20.78 |  |  | $ | 20.79 |  |  | $ | (4,587 | ) |  | — | % |  | $ | 821,660 |  |  | 8.4 | %
Comparable New Leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1st Quarter 2019 |  | 10 |  |  | $ | 1,075,361 |  |  | 18,798 |  |  | 2.7 |  |  | $ | 69,722 |  |  | $ | 3.71 |  |  | $ | 16.48 |  |  | $ | 16.24 |  |  | $ | 4,567 |  |  | 1.5 | % |  | $ | 25,723 |  |  | 9.3 | %
4th Quarter 2018 |  | 14 |  |  | 2,925,718 |  |  | 26,354 |  |  | 4.5 |  |  | 297,589 |  |  | 11.29 |  |  | 23.06 |  |  | 23.11 |  |  | (221 | ) |  | (0.2 | )% |  | 40,334 |  |  | 6.9 | %
3rd Quarter 2018 |  | 12 |  |  | 2,915,358 |  |  | 21,239 |  |  | 5.1 |  |  | 218,481 |  |  | 10.29 |  |  | 24.81 |  |  | 29.56 |  |  | (100,996 | ) |  | (16.1 | )% |  | 1,686 |  |  | 0.3 | %
2nd Quarter 2018 |  | 9 |  |  | 2,276,805 |  |  | 19,045 |  |  | 5.3 |  |  | 80,156 |  |  | 4.21 |  |  | 18.95 |  |  | 18.15 |  |  | 15,162 |  |  | 4.4 | % |  | 40,356 |  |  | 12.2 | %
Total - 12 months |  | 45 |  |  | $ | 9,193,242 |  |  | 85,436 |  |  | 4.4 |  |  | $ | 665,948 |  |  | $ | 7.79 |  |  | $ | 21.13 |  |  | $ | 22.10 |  |  | $ | (81,488 | ) |  | (4.4 | )% |  | $ | 108,099 |  |  | 6.3 | %
Comparable Renewal Leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1st Quarter 2019 |  | 53 |  |  | $ | 12,281,581 |  |  | 140,493 |  |  | 4.1 |  |  | $ | 179,789 |  |  | $ | 1.28 |  |  | $ | 20.18 |  |  | $ | 20.44 |  |  | $ | (37,217 | ) |  | (1.3 | )% |  | $ | 191,646 |  |  | 7.0 | %
4th Quarter 2018 |  | 47 |  |  | 12,281,155 |  |  | 94,983 |  |  | 4.2 |  |  | 329,932 |  |  | 3.47 |  |  | 24.91 |  |  | 25.66 |  |  | (70,708 | ) |  | (2.9 | )% |  | 95,938 |  |  | 4.0 | %
3rd Quarter 2018 |  | 36 |  |  | 9,378,238 |  |  | 85,343 |  |  | 4.7 |  |  | 512,067 |  |  | 6.00 |  |  | 21.91 |  |  | 19.94 |  |  | 167,510 |  |  | 9.9 | % |  | 335,443 |  |  | 20.3 | %
2nd Quarter 2018 |  | 35 |  |  | 4,466,079 |  |  | 82,902 |  |  | 3.1 |  |  | 80,744 |  |  | 0.97 |  |  | 15.54 |  |  | 15.33 |  |  | 17,315 |  |  | 1.4 | % |  | 90,534 |  |  | 7.3 | %
Total - 12 months |  | 171 |  |  | $ | 38,407,053 |  |  | 403,721 |  |  | 4.0 |  |  | $ | 1,102,532 |  |  | $ | 2.73 |  |  | $ | 20.70 |  |  | $ | 20.51 |  |  | $ | 76,900 |  |  | 0.9 | % |  | $ | 713,561 |  |  | 8.9 | %

27

Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY (continued)
Type |  | Number of Leases Signed |  | Lease Value Signed |  | GLA Signed |  | Weighted Average Lease Term (2) |  | TI and Incentives (3) |  | TI and Incentives per Sq. Ft. |  | Contractual Rent Per Sq. Ft. (4) |  |  |  |  |  |  |  |  |  |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New & Renewal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1st Quarter 2019 |  | 81 |  |  | $ | 15,825,899 |  |  | 199,643 |  |  | 3.9 |  |  | $ | 688,431 |  |  | $ | 3.45 |  |  | $ | 19.11 |  |  |  |  |  |  |  |  |  |  |
4th Quarter 2018 |  | 75 |  |  | 17,683,294 |  |  | 146,239 |  |  | 4.4 |  |  | 819,513 |  |  | 5.60 |  |  | 23.89 |  |  |  |  |  |  |  |  |  |  |
3rd Quarter 2018 |  | 75 |  |  | 23,780,866 |  |  | 170,944 |  |  | 5.2 |  |  | 2,520,155 |  |  | 14.74 |  |  | 22.66 |  |  |  |  |  |  |  |  |  |  |
2nd Quarter 2018 |  | 65 |  |  | 16,679,049 |  |  | 179,274 |  |  | 4.7 |  |  | 625,455 |  |  | 3.49 |  |  | 16.51 |  |  |  |  |  |  |  |  |  |  |
Total - 12 months |  | 296 |  |  | $ | 73,969,108 |  |  | 696,100 |  |  | 4.6 |  |  | $ | 4,653,554 |  |  | $ | 6.69 |  |  | $ | 20.26 |  |  |  |  |  |  |  |  |  |  |
New |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1st Quarter 2019 |  | 27 |  |  | $ | 3,511,673 |  |  | 53,719 |  |  | 3.8 |  |  | $ | 508,249 |  |  | $ | 9.46 |  |  | $ | 17.65 |  |  |  |  |  |  |  |  |  |  |
4th Quarter 2018 |  | 28 |  |  | 5,402,139 |  |  | 51,256 |  |  | 4.8 |  |  | 489,581 |  |  | 9.55 |  |  | 21.99 |  |  |  |  |  |  |  |  |  |  |
3rd Quarter 2018 |  | 39 |  |  | 14,402,628 |  |  | 85,601 |  |  | 5.7 |  |  | 2,008,088 |  |  | 23.46 |  |  | 23.41 |  |  |  |  |  |  |  |  |  |  |
2nd Quarter 2018 |  | 30 |  |  | 12,212,970 |  |  | 96,372 |  |  | 6.2 |  |  | 544,711 |  |  | 5.65 |  |  | 17.35 |  |  |  |  |  |  |  |  |  |  |
Total - 12 months |  | 124 |  |  | $ | 35,529,410 |  |  | 286,948 |  |  | 5.3 |  |  | $ | 3,550,629 |  |  | $ | 12.37 |  |  | $ | 20.04 |  |  |  |  |  |  |  |  |  |  |
Renewal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1st Quarter 2019 |  | 54 |  |  | $ | 12,314,226 |  |  | 145,924 |  |  | 4.0 |  |  | $ | 180,182 |  |  | $ | 1.23 |  |  | 19.64 |  |  |  |  |  |  |  |  |  |  |
4th Quarter 2018 |  | 47 |  |  | 12,281,155 |  |  | 94,983 |  |  | 4.2 |  |  | 329,932 |  |  | 3.47 |  |  | 24.91 |  |  |  |  |  |  |  |  |  |  |
3rd Quarter 2018 |  | 36 |  |  | 9,378,238 |  |  | 85,343 |  |  | 4.7 |  |  | 512,067 |  |  | 6.00 |  |  | 21.91 |  |  |  |  |  |  |  |  |  |  |
2nd Quarter 2018 |  | 35 |  |  | 4,466,079 |  |  | 82,902 |  |  | 3.1 |  |  | 80,744 |  |  | 0.97 |  |  | 15.54 |  |  |  |  |  |  |  |  |  |  |
Total - 12 months |  | 172 |  |  | $ | 38,439,698 |  |  | 409,152 |  |  | 4.0 |  |  | $ | 1,102,925 |  |  | $ | 2.70 |  |  | $ | 20.42 |  |  |  |  |  |  |  |  |  |  |

(1) | Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage.

(2) | Weighted average lease term is determined on the basis of square footage.

(3) | Estimated amount per signed lease. Actual cost of construction may vary.

(4) | Contractual rent represents contractual minimum rent under the new lease for the first month, excluding concessions.

(5) | Prior contractual rent represents contractual minimum rent under the prior lease for the final month.

28

Whitestone REIT and Subsidiaries LEASE EXPIRATIONS(1)
|  |  |  |  |  |  |  | Annualized Base Rent(2)
|  |  |  | Gross Leasable Area |  | as of March 31, 2019
Year |  | Number of Leases |  | Square Feet |  | Percent of Gross Leasable Area |  | Amount (in thousands) |  | Percent of Total |  | Per Square Foot
2019 |  | 301 |  |  | 452,793 |  |  | 9.4 | % |  | $ | 9,576 |  |  | 11.4 | % |  | $ | 21.15 |
2020 |  | 237 |  |  | 802,312 |  |  | 16.6 | % |  | 13,263 |  |  | 15.8 | % |  | 16.53 |
2021 |  | 202 |  |  | 518,918 |  |  | 10.7 | % |  | 10,148 |  |  | 12.1 | % |  | 19.56 |
2022 |  | 180 |  |  | 649,895 |  |  | 13.4 | % |  | 11,764 |  |  | 14.0 | % |  | 18.10 |
2023 |  | 156 |  |  | 478,345 |  |  | 9.9 | % |  | 9,775 |  |  | 11.7 | % |  | 20.44 |
2024 |  | 114 |  |  | 555,523 |  |  | 11.5 | % |  | 9,672 |  |  | 11.5 | % |  | 17.41 |
2025 |  | 44 |  |  | 167,796 |  |  | 3.5 | % |  | 3,746 |  |  | 4.5 | % |  | 22.32 |
2026 |  | 26 |  |  | 181,004 |  |  | 3.7 | % |  | 3,628 |  |  | 4.3 | % |  | 20.04 |
2027 |  | 26 |  |  | 173,391 |  |  | 3.6 | % |  | 3,467 |  |  | 4.1 | % |  | 20.00 |
2028 |  | 20 |  |  | 94,951 |  |  | 2.0 | % |  | 2,288 |  |  | 2.7 | % |  | 24.10 |
Total |  | 1,306 |  |  | 4,074,928 |  |  | 84.3 | % |  | $ | 77,327 |  |  | 92.1 | % |  | $ | 18.98 |

(1) | Lease expirations table reflects rents in place as of March 31, 2019, and does not include option periods.

(2) | Annualized Base Rent represents the monthly base rent as of March 31, 2019 for each tenant multiplied by 12.

29

Whitestone REIT and Subsidiaries 2019 FINANCIAL GUIDANCE
|  | Projected Range
|  | Full Year 2019
|  | Low |  | High
Net income attributable to Whitestone REIT |  | $ | 0.21 |  |  | $ | 0.25 |
Adjustments to reconcile net income to FFO(1): |  |  |  |
Depreciation expense, amortization, gain on disposal of assets |  | 0.69 |  |  | 0.69 |
(Gain) loss on sale or disposal of assets or properties |  | — |  |  | — |
Net income attributable to redeemable operating partnership |  | — |  |  | — |
FFO |  | $ | 0.90 |  |  | $ | 0.94 |
Adjustments to reconcile FFO to FFO Core: |  |  |  |
Share based compensation expense |  | 0.16 |  |  | 0.16 |
FFO Core |  | $ | 1.06 |  |  | $ | 1.10 |
Same Store NOI Growth |  | 0.50 | % |  | 2.00 | %
Occupancy |  | 90.0 | % |  | 92.0 | %
Average interest rate on all debt |  | 4.3 | % |  | 4.3 | %
Weighted average shares and OP units |  | 42,357 |  |  | 42,327 |

(1) Includes pro-rata share attributable to real estate in unconsolidated partnership.
Note: Guidance reflects management’s view of current and future market conditions, as well as the earnings impact of events referenced in our earnings release and supplemental data package. This guidance does not include the operational or capital impact of any future unannounced acquisition or disposition activity. Estimates involve numerous assumptions such as rental income, interest rates, tenant default, occupancy rates, expenses, the consolidation of the Company’s non-wholly owned portfolio of non-retail assets and numerous other factors, and excludes potential future acquisitions and dispositions, acquisition and disposition transaction income and expenses and professional service fees. Not all of the factors are determinable at this time and actual results may vary from the projected results, and may be above or below the range indicated. We will update our guidance, on a quarterly basis, or more often as needed, reflecting the impact of acquisition volume and other factors.
30

Whitestone REIT and Subsidiaries Property Details As of March 31, 2019
Community Name |  | Location |  | Year Built/ Renovated |  | Gross Leasable Square Feet |  | Percent Occupied at 3/31/2019 |  | Annualized Base Rental Revenue (in thousands) (1) |  | Average Base Rental Revenue Per Sq. Ft. (2) |  | Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3)
Whitestone Properties: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ahwatukee Plaza |  | Phoenix |  | 1979 |  | 72,650 |  |  | 86 | % |  | $ | 802 |  |  | $ | 12.84 |  |  | $ | 12.76 |
Anthem Marketplace |  | Phoenix |  | 2000 |  | 113,293 |  |  | 96 | % |  | 1,750 |  |  | 16.09 |  |  | 15.62 |
Bissonnet Beltway |  | Houston |  | 1978 |  | 29,205 |  |  | 85 | % |  | 347 |  |  | 13.98 |  |  | 13.65 |
BLVD Place |  | Houston |  | 2014 |  | 216,944 |  |  | 98 | % |  | 8,575 |  |  | 40.33 |  |  | 43.26 |
The Citadel |  | Phoenix |  | 2013 |  | 28,547 |  |  | 93 | % |  | 479 |  |  | 18.04 |  |  | 15.88 |
City View Village |  | San Antonio |  | 2005 |  | 17,870 |  |  | 100 | % |  | 507 |  |  | 28.37 |  |  | 28.82 |
Davenport Village |  | Austin |  | 1999 |  | 128,934 |  |  | 100 | % |  | 3,341 |  |  | 25.91 |  |  | 25.76 |
Desert Canyon |  | Phoenix |  | 2000 |  | 62,533 |  |  | 93 | % |  | 823 |  |  | 14.15 |  |  | 14.60 |
Eldorado Plaza |  | Dallas |  | 2004 |  | 221,577 |  |  | 98 | % |  | 3,204 |  |  | 14.76 |  |  | 15.43 |
Fountain Hills |  | Phoenix |  | 2009 |  | 111,289 |  |  | 83 | % |  | 1,563 |  |  | 16.92 |  |  | 17.04 |
Fountain Square |  | Phoenix |  | 1986 |  | 118,209 |  |  | 88 | % |  | 1,868 |  |  | 17.96 |  |  | 17.38 |
Fulton Ranch Towne Center |  | Phoenix |  | 2005 |  | 120,575 |  |  | 86 | % |  | 1,846 |  |  | 17.80 |  |  | 17.94 |
Gilbert Tuscany Village |  | Phoenix |  | 2009 |  | 49,415 |  |  | 100 | % |  | 967 |  |  | 19.57 |  |  | 18.81 |
Gilbert Tuscany Village Hard Corner |  | Phoenix |  | 2009 |  | 14,603 |  |  | 100 | % |  | 124 |  |  | 8.49 |  |  | 8.91 |
Heritage Trace Plaza |  | Dallas |  | 2006 |  | 70,431 |  |  | 93 | % |  | 1,451 |  |  | 22.15 |  |  | 22.23 |
Headquarters Village |  | Dallas |  | 2009 |  | 89,134 |  |  | 86 | % |  | 2,221 |  |  | 28.97 |  |  | 29.53 |
Keller Place |  | Dallas |  | 2001 |  | 93,541 |  |  | 95 | % |  | 895 |  |  | 10.07 |  |  | 11.10 |
Kempwood Plaza |  | Houston |  | 1974 |  | 91,302 |  |  | 95 | % |  | 1,039 |  |  | 11.98 |  |  | 12.37 |
La Mirada |  | Phoenix |  | 1997 |  | 147,209 |  |  | 85 | % |  | 2,643 |  |  | 21.12 |  |  | 22.31 |
Lion Square |  | Houston |  | 2014 |  | 117,592 |  |  | 90 | % |  | 1,442 |  |  | 13.63 |  |  | 13.25 |
The Marketplace at Central |  | Phoenix |  | 2012 |  | 111,130 |  |  | 99 | % |  | 1,012 |  |  | 9.20 |  |  | 8.86 |
Market Street at DC Ranch |  | Phoenix |  | 2003 |  | 242,459 |  |  | 92 | % |  | 4,381 |  |  | 19.64 |  |  | 19.73 |
Mercado at Scottsdale Ranch |  | Phoenix |  | 1987 |  | 118,730 |  |  | 86 | % |  | 1,622 |  |  | 15.89 |  |  | 16.18 |
Paradise Plaza |  | Phoenix |  | 1983 |  | 125,898 |  |  | 92 | % |  | 1,499 |  |  | 12.94 |  |  | 13.41 |
Parkside Village North |  | Austin |  | 2005 |  | 27,045 |  |  | 100 | % |  | 816 |  |  | 30.17 |  |  | 30.46 |
Parkside Village South |  | Austin |  | 2012 |  | 90,101 |  |  | 100 | % |  | 2,407 |  |  | 26.71 |  |  | 26.83 |
Pima Norte |  | Phoenix |  | 2007 |  | 35,110 |  |  | 68 | % |  | 428 |  |  | 17.93 |  |  | 18.62 |
Pinnacle of Scottsdale |  | Phoenix |  | 1991 |  | 113,108 |  |  | 100 | % |  | 2,435 |  |  | 21.53 |  |  | 21.84 |
Pinnacle Phase II |  | Phoenix |  | 2017 |  | 27,063 |  |  | 100 | % |  | 668 |  |  | 24.68 |  |  | 26.51 |
The Promenade at Fulton Ranch |  | Phoenix |  | 2007 |  | 98,792 |  |  | 83 | % |  | 1,310 |  |  | 15.98 |  |  | 17.34 |
Providence |  | Houston |  | 1980 |  | 90,327 |  |  | 77 | % |  | 806 |  |  | 11.59 |  |  | 11.62 |
Quinlan Crossing |  | Austin |  | 2012 |  | 109,892 |  |  | 95 | % |  | 2,353 |  |  | 22.54 |  |  | 23.80 |
Seville |  | Phoenix |  | 1990 |  | 90,042 |  |  | 73 | % |  | 2,211 |  |  | 33.64 |  |  | 34.37 |
Shaver |  | Houston |  | 1978 |  | 21,926 |  |  | 94 | % |  | 294 |  |  | 14.26 |  |  | 14.17 |
Shops at Pecos Ranch |  | Phoenix |  | 2009 |  | 78,767 |  |  | 80 | % |  | 1,688 |  |  | 26.79 |  |  | 26.17 |
Shops at Starwood |  | Dallas |  | 2006 |  | 55,385 |  |  | 92 | % |  | 1,528 |  |  | 29.99 |  |  | 29.69 |
The Shops at Williams Trace |  | Houston |  | 1985 |  | 132,991 |  |  | 98 | % |  | 2,010 |  |  | 15.42 |  |  | 15.98 |
South Richey |  | Houston |  | 1980 |  | 69,928 |  |  | 97 | % |  | 729 |  |  | 10.75 |  |  | 11.07 |
Spoerlein Commons |  | Chicago |  | 1987 |  | 41,455 |  |  | 83 | % |  | 649 |  |  | 18.86 |  |  | 20.74 |
Starwood Phase II |  | Dallas |  | 2016 |  | 35,351 |  |  | 78 | % |  | 969 |  |  | 35.14 |  |  | 38.40 |
The Strand at Huebner Oaks |  | San Antonio |  | 2000 |  | 73,920 |  |  | 98 | % |  | 1,596 |  |  | 22.03 |  |  | 22.78 |
SugarPark Plaza |  | Houston |  | 1974 |  | 95,032 |  |  | 100 | % |  | 1,186 |  |  | 12.48 |  |  | 16.70 |
Sunridge |  | Houston |  | 1979 |  | 49,359 |  |  | 79 | % |  | 424 |  |  | 10.87 |  |  | 10.59 |
Sunset at Pinnacle Peak |  | Phoenix |  | 2000 |  | 41,530 |  |  | 82 | % |  | 634 |  |  | 18.62 |  |  | 18.26 |
Terravita Marketplace |  | Phoenix |  | 1997 |  | 102,733 |  |  | 50 | % |  | 1,190 |  |  | 23.17 |  |  | 22.34 |
Town Park |  | Houston |  | 1978 |  | 43,526 |  |  | 97 | % |  | 958 |  |  | 22.69 |  |  | 21.22 |
Village Square at Dana Park |  | Phoenix |  | 2009 |  | 323,026 |  |  | 87 | % |  | 6,226 |  |  | 22.15 |  |  | 21.81 |
Westchase |  | Houston |  | 1978 |  | 50,332 |  |  | 86 | % |  | 652 |  |  | 15.06 |  |  | 14.74 |
Williams Trace Plaza |  | Houston |  | 1983 |  | 129,222 |  |  | 94 | % |  | 1,854 |  |  | 15.26 |  |  | 15.68 |
Windsor Park |  | San Antonio |  | 2012 |  | 196,458 |  |  | 97 | % |  | 1,906 |  |  | 10.00 |  |  | 9.78 |
Woodlake Plaza |  | Houston |  | 1974 |  | 106,169 |  |  | 71 | % |  | 1,229 |  |  | 16.30 |  |  | 16.09 |
Total/Weighted Average - Whitestone Properties |  |  |  |  |  | 4,841,660 |  |  | 90 | % |  | 83,557 |  |  | 19.18 |  |  | 19.58 |
Land Held for Development: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Anthem Marketplace |  | Phoenix |  | N/A |  | — |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
BLVD Phase II-B |  | Houston |  | N/A |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Dana Park Development |  | Phoenix |  | N/A |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Eldorado Plaza Development |  | Dallas |  | N/A |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fountain Hills |  | Phoenix |  | N/A |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Market Street at DC Ranch |  | Phoenix |  | N/A |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total/Weighted Average - Land Held For Development (4) |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Grand Total/Weighted Average - Whitestone Properties |  |  |  |  |  | 4,841,660 |  |  | 90 | % |  | $ | 83,557 |  |  | $ | 19.18 |  |  | $ | 19.58 |
Properties owned in Unconsolidated Real Estate Partnership (81.4% ownership): |  |  |  |  |  |  |  |  |  |  |  |
9101 LBJ Freeway |  | Dallas |  | 1985 |  | 125,874 |  |  | 62 | % |  | $ | 1,197 |  |  | $ | 15.34 |  |  | $ | 15.39 |
Corporate Park Northwest |  | Houston |  | 1981 |  | 174,359 |  |  | 80 | % |  | 1,771 |  |  | 12.70 |  |  | 13.26 |
Corporate Park West |  | Houston |  | 1999 |  | 175,665 |  |  | 77 | % |  | 1,578 |  |  | 11.67 |  |  | 11.86 |
Corporate Park Woodland |  | Houston |  | 2000 |  | 99,937 |  |  | 89 | % |  | 1,024 |  |  | 11.51 |  |  | 11.76 |
Corporate Park Woodland II |  | Houston |  | 2000 |  | 14,344 |  |  | 100 | % |  | 238 |  |  | 16.59 |  |  | 16.68 |
Holly Hall Industrial Park |  | Houston |  | 1980 |  | 90,000 |  |  | 67 | % |  | 561 |  |  | 9.30 |  |  | 9.70 |
Holly Knight |  | Houston |  | 1984 |  | 20,015 |  |  | 95 | % |  | 388 |  |  | 20.41 |  |  | 21.34 |
Interstate 10 Warehouse |  | Houston |  | 1980 |  | 151,000 |  |  | 80 | % |  | 677 |  |  | 5.60 |  |  | 5.53 |
Plaza Park |  | Houston |  | 1982 |  | 105,530 |  |  | 71 | % |  | 616 |  |  | 8.22 |  |  | 8.18 |
Uptown Tower |  | Dallas |  | 1982 |  | 253,981 |  |  | 78 | % |  | 3,815 |  |  | 19.26 |  |  | 20.16 |
Westgate Service Center |  | Houston |  | 1984 |  | 97,225 |  |  | 100 | % |  | 738 |  |  | 7.59 |  |  | 8.06 |
Total/Weighted Average - Unconsolidated Properties |  |  |  |  |  | 1,307,930 |  |  | 79 | % |  | $ | 12,603 |  |  | $ | 12.20 |  |  | $ | 12.57 |

(1) | Calculated as the tenant’s actual March 31, 2019 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of March 31, 2019. 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 March 31, 2019 equaled approximately $115,000 for the month ended March 31, 2019.

(2) | Calculated as annualized base rent divided by leased square feet as of March 31, 2019.

(3) | Represents (i) the contractual base rent for leases in place as of March 31, 2019, 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 March 31, 2019.

(4) | As of March 31, 2019, these parcels of land were held for development and, therefore, had no gross leasable area.

31