EX-99.2 3 exhibit992supplementaloper.htm EX-99.2

Document

TABLE OF CONTENTS
			Page
Corporate Profile			1
Third Quarter 2021 Earnings Release			2
Financial Results
Consolidated Balance Sheets			10
Consolidated Statements of Operations and Comprehensive Income (Loss)			12
Consolidated Statements of Cash Flows			18
Reconciliation of Non-GAAP Measures			20
Same Store Property Analysis			21
Other Financial Information			23
Market Capitalization and Selected Ratios			24
Summary of Outstanding Debt and Debt Maturities			26
Summary of Occupancy and Top Tenants			27
Tenant Type Summary			30
Summary of Leasing Activity			31
Lease Expirations			34
Property Details			35

CORPORATE PROFILE

NYSE: WSR

Whitestone REIT (NYSE: WSR) is a community-centered shopping center REIT that acquires, owns, manages,

Common Shares

develops and redevelops high-quality open-air neighborhood centers primarily in the largest, fastest-growing and

high-household-income markets in the Sunbelt. Whitestone creates communities that thrive through

59 Community Centers

creating local connections between consumers in the surrounding communities and a well-crafted mix of national,

5.1 million sq. ft. of gross

regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone

leasable area

has consistently paid a monthly dividend for more than 15 years. The Company’s balanced and well-managed

1,509 tenants

capital structure provides stability and flexibility to support it through a multitude of economic cycles.

6 Top Growth Markets

We invest in properties that are or can become Community Centered Properties® from which our tenants deliver

Austin

needed services to the surrounding population. We focus on properties with smaller rental spaces that present

Chicago

opportunities for attractive returns.

Dallas-Fort Worth

Houston

Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide services to their

Phoenix

respective surrounding communities. Operations include an internal management structure providing cost-effective

San Antonio

services to locally-oriented, smaller space tenants. Multi-cultural community focus sets us apart from traditional

commercial real estate operators. We value diversity on our team and maintain in-house leasing, property

Fiscal Year End

management, marketing, construction, and maintenance departments with culturally diverse and multi-lingual

12/31

associates who understand the particular needs of our tenants and neighborhoods.

Common Shares &

We have a diverse tenant base concentrated on service offerings such as specialty retail, grocery, restaurants,

Units Outstanding*:

medical, educational and financial services, and entertainment. These tenants tend to occupy smaller spaces (less

Common Shares: 49.1 million

than 3,000 square feet) and, as of September 30, 2021, provided a 52% premium rental rate compared to our larger

Operating Partnership Units:

space tenants. The largest of our 1,509 tenants at our wholly owned properties comprised only 2.7% of our

0.8 million

annualized base rental revenues for the three months ended September 30, 2021.

Distribution (per share / unit)*:

Quarter: $ 0.1075

Investor Relations:

Annualized: $ 0.43

Whitestone REIT

ICR LLC.

Dividend Yield: 4.3%**

Rebecca Elliott

Brad Cohen

Vice President, Corporate Communications

203.682.8211

2600 South Gessner, Suite 500, Houston, Texas 77063

Board of Trustees:

713.435.2219 email: ir@whitestonereit.com

Nandita V. Berry

website: www.whitestonereit.com

Jeffrey A. Jones

Paul T. Lambert

Analyst Coverage:

Jack L. Mahaffey

B. Riley FBR

JMP Securities

Maxim Group

James C. Mastandrea

Craig Kucera

Aaron Hecht

Michael Diana

David F. Taylor

540.277.3366

415.835.3963

212.895.3641

Trustee Emeritus:

ckucera@brileyfbr.com

ahecht@jmpsecurities.com

mdiana@maximgrp.com

Daniel G. DeVos

* As of October 25, 2021

** Based on common share price

of $9.91 as of close of market on

October 25, 2021.

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.

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9

Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
						September 30, 2021						December 31, 2020
ASSETS
Real estate assets, at cost
Property						$	1,165,274					$	1,106,426
Accumulated depreciation						(183,383)						(163,712)
Total real estate assets						981,891						942,714
Investment in real estate partnership						34,408						33,979
Cash and cash equivalents						10,858						25,777
Restricted cash						106						179
Escrows and acquisition deposits						10,437						9,274
Accrued rents and accounts receivable, net of allowance for doubtful accounts (1)						21,991						23,009
Receivable due from related party						651						335
Unamortized lease commissions, legal fees and loan costs						8,356						7,686
Prepaid expenses and other assets(2)						2,371						2,049
Total assets						$	1,071,069					$	1,045,002
LIABILITIES AND EQUITY
Liabilities:
Notes payable						$	618,649					$	644,185
Accounts payable and accrued expenses(3)						44,563						50,918
Payable due to related party						530						125
Tenants' security deposits						7,718						6,916
Dividends and distributions payable						5,333						4,532
Total liabilities						676,793						706,676
Commitments and contingencies:						—						—
Equity:
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of September 30, 2021 and December 31, 2020						—						—
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 48,839,594 and 42,391,316 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively						48						42
Additional paid-in capital						618,963						562,250
Accumulated deficit						(221,277)						(215,809)
Accumulated other comprehensive loss						(9,726)						(14,400)
Total Whitestone REIT shareholders' equity						388,008						332,083
Noncontrolling interest in subsidiary						6,268						6,243
Total equity						394,276						338,326
Total liabilities and equity						$	1,071,069					$	1,045,002

10

Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands)
						September 30, 2021						December 31, 2020
(1) Accrued rents and accounts receivable, net of allowance for doubtful accounts
Tenant receivables						$	19,898					$	22,956
Accrued rents and other recoveries						17,833						16,348
Allowance for doubtful accounts						(15,919)						(16,426)
Other receivables						179						131
Total accrued rents and accounts receivable, net of allowance for doubtful accounts						$	21,991					$	23,009
(2) Operating lease right of use assets (net)						$	316					$	592
(3) Operating lease liabilities						$	323					$	603

11

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
						Three Months Ended																		% Change From
						September 30, 2021						June 30, 2021						September 30, 2020						June 30, 2021						September 30, 2020
Revenues
Rental(1)						$	32,069					$	30,152					$	28,868					6		%				11		%
Management, transaction, and other fees						375						466						1,032						(20)		%				(64)		%
Total revenues						32,444						30,618						29,900						6		%				9		%
Operating expenses
Depreciation and amortization						7,340						7,105						7,171						3		%				2		%
Operating and maintenance						5,789						5,444						5,029						6		%				15		%
Real estate taxes						4,589						4,160						4,670						10		%				(2)		%
General and administrative						5,672						4,730						5,860						20		%				(3)		%
Total operating expenses						23,390						21,439						22,730						9		%				3		%
Other expenses (income)
Interest expense						6,142						6,143						6,400						—		%				(4)		%
(Gain) loss on sale or disposal of assets, net						48						(224)						18						N.M. (2)						N.M.
Interest, dividend and other investment income						(31)						(23)						(71)						35		%				(56)		%
Total other expenses						6,159						5,896						6,347						4		%				(3)		%
Income before equity investment in real estate partnership and income tax						2,895						3,283						823						(12)		%				252		%
Equity in earnings of real estate partnership						151						189						196						(20)		%				(23)		%
Provision for income tax						(100)						(87)						(105)						15		%				(5)		%
Income from continuing operations						2,946						3,385						914						(13)		%				222		%
Gain on sale of property from discontinued operations						—						1,833						—						N.M.						N.M.
Income from discontinued operations						—						1,833						—						N.M.						N.M.
Net income						2,946						5,218						914						(44)		%				222		%
Less: Net income attributable to noncontrolling interests						47						92						14						(49)		%				236		%
Net income attributable to Whitestone REIT						$	2,899					$	5,126					$	900					(43)		%				222		%

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Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
						Three Months Ended																		% Change From
						September 30, 2021						June 30, 2021						September 30, 2020						June 30, 2021						September 30, 2020
Basic Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares						$	0.06					$	0.08					$	0.02					(25)		%				200		%
Income from discontinued operations attributable to Whitestone REIT						—						0.04						—						N.M.						N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares						$	0.06					$	0.12					$	0.02					(50)		%				200		%
Diluted Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares						$	0.06					$	0.08					$	0.02					(25)		%				200		%
Income from discontinued operations attributable to Whitestone REIT						—						0.04						—						N.M.						N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares						$	0.06					$	0.12					$	0.02					(50)		%				200		%
Weighted average number of common shares outstanding:
Basic						46,883						43,378						42,346						8		%				11		%
Diluted						47,825						44,125						43,440						8		%				10		%
Consolidated Statements of Comprehensive Income (Loss)
Net income						$	2,946					$	5,218					$	914					(44)		%				222		%
Other comprehensive income (loss)
Unrealized gain (loss) on cash flow hedging activities						1,273						1,289						1,241						(1)		%				3		%
Comprehensive income (loss)						4,219						6,507						2,155						(35)		%				96		%
Less: Net income attributable to noncontrolling interests						47						92						14						(49)		%				236		%
Less: Comprehensive income (loss) attributable to noncontrolling interests						20						21						43						(5)		%				(53)		%
Comprehensive income (loss) attributable to Whitestone REIT						$	4,152					$	6,394					$	2,098					(35)		%				98		%

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Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
						Three Months Ended																		% Change From
						September 30, 2021						June 30, 2021						September 30, 2020						June 30, 2021						September 30, 2020
(1) Rental
Rental revenues						$	23,177					$	22,238					$	21,808					4		%				6		%
Recoveries						8,720						8,057						8,339						8		%				5		%
Bad debt						172						(143)						(1,279)						220		%				113		%
Total rental						$	32,069					$	30,152					$	28,868					6		%				11		%

(2) Not Meaningful

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Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
						Nine Months Ended September 30,												% Change From September 30,
						2021						2020						2020
Revenues
Rental(1)						$	90,916					$	86,116					6		%
Management, transaction, and other fees						1,191						1,965						(39)		%
Total revenues						92,107						88,081						5		%
Operating expenses
Depreciation and amortization						21,458						21,112						2		%
Operating and maintenance						16,072						15,021						7		%
Real estate taxes						12,787						13,591						(6)		%
General and administrative						16,036						15,604						3		%
Total operating expenses						66,353						65,328						2		%
Other expenses (income)
Interest expense						18,417						19,561						(6)		%
(Gain) loss on sale or disposal of assets, net						(177)						882						N.M.
Interest, dividend and other investment income						(103)						(206)						(50)		%
Total other expenses						18,137						20,237						(10)		%
Income before equity investment in real estate partnership and income tax						7,617						2,516						203		%
Equity in earnings of real estate partnership						429						752						(43)		%
Provision for income tax						(274)						(288)						(5)		%
Income from continuing operations						7,772						2,980						161		%
Gain on sale of property from discontinued operations						1,833						—						N.M.
Income from discontinued operations						1,833						—						N.M.
Net income						9,605						2,980						222		%
Less: Net income attributable to noncontrolling interests						165						58						184		%
Net income attributable to Whitestone REIT						$	9,440					$	2,922					223		%

15

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
						Nine Months Ended September 30,												% Change From September 30,
						2021						2020						2020
Basic Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares						$	0.17					$	0.07					143		%
Income from discontinued operations attributable to Whitestone REIT						0.04						—						N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares						$	0.21					$	0.07					200		%
Diluted Earnings Per Share:
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares						$	0.17					$	0.07					143		%
Income from discontinued operations attributable to Whitestone REIT						0.04						—						N.M.
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares						$	0.21					$	0.07					200		%
Weighted average number of common shares outstanding:
Basic						44,268						42,202						5		%
Diluted						45,108						43,040						5		%
Consolidated Statements of Comprehensive Income (Loss)
Net income						$	9,605					$	2,980					222		%
Other comprehensive income (loss)
Unrealized gain (loss) on cash flow hedging activities						4,783						(10,395)						N.M.
Comprehensive income (loss)						14,388						(7,415)						N.M.
Less: Net income attributable to noncontrolling interests						165						58						184		%
Less: Comprehensive income (loss) attributable to noncontrolling interests						82						(203)						N.M.
Comprehensive income (loss) attributable to Whitestone REIT						$	14,141					$	(7,270)					N.M.

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Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
						Nine Months Ended September 30,												% Change From September 30,
						2021						2020						2020
(1) Rental
Rental revenues						$	67,041					$	65,591					2		%
Recoveries						24,375						24,976						(2)		%
Bad debt						(500)						(4,451)						89		%
Total rental						$	90,916					$	86,116					6		%

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Whitestone REIT and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
						Nine Months Ended September 30,
						2021						2020
Cash flows from operating activities:
Net income from continuing operations						$	7,772					$	2,980
Net income from discontinued operations						1,833						—
Net income						9,605						2,980
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization						21,458						21,112
Amortization of deferred loan costs						822						839
(Gain) loss on sale or disposal of assets and loan forgiveness, net						(177)						882
Bad debt						500						4,451
Share-based compensation						4,066						3,980
Equity in earnings of real estate partnership						(429)						(752)
Changes in operating assets and liabilities:
Escrows and acquisition deposits						(1,163)						522
Accrued rents and accounts receivable						518						(6,123)
Receivable due from related party						(316)						(825)
Unamortized lease commissions, legal fees and loan costs						(2,531)						(958)
Prepaid expenses and other assets						1,548						2,145
Accounts payable and accrued expenses						(1,572)						131
Payable due to related party						405						538
Tenants' security deposits						802						298
Net cash provided by operating activities						31,703						29,220
Cash flows from investing activities:
Acquisitions of real estate						(53,364)						—
Additions to real estate						(6,058)						(5,808)
Proceeds from note receivable						—						922
Net cash used in investing activities						(59,422)						(4,886)
Net cash provided by investing activities of discontinued operations						1,833						—
Cash flows from financing activities:
Distributions paid to common shareholders						(14,063)						(20,771)
Distributions paid to OP unit holders						(248)						(430)
Proceeds from issuance of common shares, net of offering costs						53,335						2,241
Payments of exchange offer costs						(49)						(43)
Proceeds from notes payable						—						1,734
Net proceeds from (payments of) credit facility						(25,000)						30,000
Repayments of notes payable						(2,403)						(11,514)
Repurchase of common shares						(678)						(2,076)
Net cash provided by (used in) financing activities						10,894						(859)
Net increase (decrease) in cash, cash equivalents and restricted cash						(14,992)						23,475
Cash, cash equivalents and restricted cash at beginning of period						25,956						15,643
Cash, cash equivalents and restricted cash at end of period (1)						$	10,964					$	39,118

(1)     For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below.

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Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Supplemental Disclosures
(in thousands)
						Nine Months Ended September 30,
						2021						2020
Supplemental disclosure of cash flow information:
Cash paid for interest						$	17,732					$	18,790
Cash paid for taxes						$	364					$	353
Non cash investing and financing activities:
Disposal of fully depreciated real estate						$	284					$	34
Financed insurance premiums						$	1,712					$	1,431
Value of shares issued under dividend reinvestment plan						$	45					$	74
Value of common shares exchanged for OP units						$	—					$	1,138
Change in fair value of cash flow hedge						$	4,783					$	(10,395)

						September 30,
						2021						2020
Cash, cash equivalents and restricted cash
Cash and cash equivalents						$	10,858					$	38,990
Restricted cash						106						128
Total cash, cash equivalents and restricted cash						$	10,964					$	39,118

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Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
						Three Months Ended																		Change From
						September 30, 2021						June 30, 2021						September 30, 2020						June 30, 2021						September 30, 2020
FFO (NAREIT) AND FFO CORE
Net income attributable to Whitestone REIT						$	2,899					$	5,126					$	900					(43)		%				222		%
Adjustments to reconcile to FFO:(1)
Depreciation and amortization of real estate assets						7,305						7,068						7,125						3		%				3		%
Depreciation and amortization of real estate assets of real estate partnership (pro rata)						440						409						386						8		%				14		%
(Gain) loss on sale or disposal of assets, net						48						(224)						18						121		%				167		%
Gain on sale of property from discontinued operations						—						(1,833)						—						N.M.						N.M.
(Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata)(2)						1						(20)						24						N.M.						N.M.
Net income attributable to noncontrolling interests						47						92						14						(49)		%				236		%
FFO (NAREIT)						10,740						10,618						8,467						1		%				27		%
Adjustments to reconcile to FFO Core:
Share-based compensation expense						1,563						1,244						1,645						26		%				(5)		%
FFO Core						$	12,303					$	11,862					$	10,112					4		%				22		%
FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO						$	10,740					$	10,618					$	8,467					1		%				27		%
FFO Core						$	12,303					$	11,862					$	10,112					4		%				22		%
Denominator:
Weighted average number of total common shares - basic						46,883						43,378						42,346						8		%				11		%
Weighted average number of total noncontrolling OP units - basic						773						773						776						—		%				—		%
Weighted average number of total common shares and noncontrolling OP units - basic						47,656						44,151						43,122						8		%				11		%
Effect of dilutive securities:
Unvested restricted shares						942						747						1,094						26		%				(14)		%
Weighted average number of total common shares and noncontrolling OP units - diluted						48,598						44,898						44,216						8		%				10		%
FFO per common share and OP unit - basic						$	0.23					$	0.24					$	0.20					(4)		%				15		%
FFO per common share and OP unit - diluted						$	0.22					$	0.24					$	0.19					(8)		%				16		%
FFO Core per common share and OP unit - basic						$	0.26					$	0.27					$	0.23					(4)		%				13		%
FFO Core per common share and OP unit - diluted						$	0.25					$	0.26					$	0.23					(4)		%				9		%

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

(2)    Included in equity in earnings of real estate partnership on the consolidated statements of operations and comprehensive income (loss).

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
																		% Change
						Nine Months Ended September 30,												From September 30,
						2021						2020						2020
FFO (NAREIT) AND FFO CORE
Net income attributable to Whitestone REIT						$	9,440					$	2,922					223		%
Adjustments to reconcile to FFO:(1)
Depreciation and amortization of real estate assets						21,353						20,943						2		%
Depreciation and amortization of real estate assets of real estate partnership (pro rata)						1,254						1,262						(1)		%
(Gain) loss on sale or disposal of assets, net						(177)						882						N.M.
Gain on sale of property from discontinued operations						(1,833)						—						N.M.
(Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata)(2)						(19)						78						(124)		%
Net income attributable to noncontrolling interests						165						58						184		%
FFO (NAREIT)						30,183						26,145						15		%
Adjustments to reconcile to FFO Core:
Share-based compensation expense						4,275						4,167						3		%
FFO Core						$	34,458					$	30,312					14		%
FFO PER SHARE AND OP UNIT CALCULATION
Numerator:
FFO						$	30,183					$	26,145					15		%
FFO Core excluding amounts attributable to unvested restricted common shares						$	34,458					$	30,312					14		%
Denominator:
Weighted average number of total common shares - basic						44,268						42,202						5		%
Weighted average number of total noncontrolling OP units - basic						773						836						(8)		%
Weighted average number of total common shares and noncontrolling OP units - basic						45,041						43,038						5		%
Effect of dilutive securities:
Unvested restricted shares						840						838						—		%
Weighted average number of total common shares and noncontrolling OP units - diluted						45,881						43,876						5		%
FFO per common share and OP unit - basic						$	0.67					$	0.61					10		%
FFO per common share and OP unit - diluted						$	0.66					$	0.60					10		%
FFO Core per common share and OP unit - basic						$	0.77					$	0.70					10		%
FFO Core per common share and OP unit - diluted						$	0.75					$	0.69					9		%

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

(2)    Included in equity in earnings of real estate partnership on the consolidated statements of operations and comprehensive income (loss).

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
						Three Months Ended												Nine Months Ended
						September 30,												September 30,
						2021						2020						2021						2020
PROPERTY NET OPERATING INCOME
Net income attributable to Whitestone REIT						$	2,899					$	900					$	9,440					$	2,922
General and administrative expenses						5,672						5,860						16,036						15,604
Depreciation and amortization						7,340						7,171						21,458						21,112
Equity in earnings of real estate partnership						(151)						(196)						(429)						(752)
Interest expense						6,142						6,400						18,417						19,561
Interest, dividend and other investment income						(31)						(71)						(103)						(206)
Provision for income taxes						100						105						274						288
Gain on sale of property from discontinued operations						—						—						(1,833)						—
Management fee, net of related expenses						83						81						246						246
(Gain) loss on sale or disposal of assets, net						48						18						(177)						882
NOI of real estate partnership (pro rata)						1,003						990						2,846						3,250
Net income attributable to noncontrolling interests						47						14						165						58
NOI						23,152						21,272						66,340						62,965
Non-Same Store NOI (1)						(730)						—						(730)						—
NOI of real estate partnership (pro rata)						(1,003)						(990)						(2,846)						(3,250)
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)						21,419						20,282						62,764						59,715
Same Store straight-line rent adjustments						(507)						(61)						(1,201)						558
Same Store amortization of above/below market rents						(177)						(149)						(618)						(584)
Same Store lease termination fees						(79)						(727)						(306)						(1,028)
Same Store NOI (2)						$	20,656					$	19,345					$	60,639					$	58,661

(1)    We define “Non-Same Store” 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 September 30, 2021 to the three months ended September 30, 2020, Non-Same Store includes properties acquired between July 1, 2020 and September 30, 2021 and properties sold between July 1, 2020 and September 30, 2021, but not included in discontinued operations. For purposes of comparing the nine months ended September 30, 2021 to the nine months ended September 30, 2020, Non-Same Store includes properties acquired between January 1, 2020 and September 30, 2021 and properties sold between January 1, 2020 and September 30, 2021, but not included in discontinued operations.

(2)    We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended September 30, 2021 to the three months ended September 30, 2020, Same Store includes properties owned before July 1, 2020 and not sold before September 30, 2021. For purposes of comparing the nine months ended September 30, 2021 to the nine months ended September 30, 2020, Same Store includes properties owned before January 1, 2020 and not sold before September 30, 2021.

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
						Three Months Ended																		% Change From
						September 30, 2021						June 30, 2021						September 30, 2020						June 30, 2021						September 30, 2020
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)
Net income attributable to Whitestone REIT						$	2,899					$	5,126					$	900					(43)		%				222		%
Depreciation and amortization						7,340						7,105						7,171						3		%				2		%
Interest expense						6,142						6,143						6,400						—		%				(4)		%
Provision for income taxes						100						87						105						15		%				(5)		%
Net income attributable to noncontrolling interests						47						92						14						(49)		%				236		%
Equity in earnings of real estate partnership						(151)						(189)						(196)						(20)		%				(23)		%
EBITDAre adjustments for real estate partnership						807						766						804						5		%				—		%
Gain on sale of property from discontinued operations						—						(1,833)						—						N.M.						N.M.
(Gain) loss on sale or disposal of assets, net						48						(224)						18						121		%				167		%
EBITDAre						17,232						17,073						15,216						1		%				13		%
Management fee, net of related expenses						83						83						81						—		%				2		%
Share-based compensation expense						1,563						1,244						1,645						26		%				(5)		%
EBITDAre-Adjusted						$	18,878					$	18,400					$	16,942					3		%				11		%

						Nine Months Ended September 30,												% Change From September 30,
						2021						2020						2020
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)
Net income attributable to Whitestone REIT						$	9,440					$	2,922					223		%
Depreciation and amortization						21,458						21,112						2		%
Interest expense						18,417						19,561						(6)		%
Provision for income taxes						274						288						(5)		%
Net income attributable to noncontrolling interests						165						58						184		%
Equity in earnings of real estate partnership						(429)						(752)						(43)		%
EBITDAre adjustments for real estate partnership						2,258						2,690						(16)		%
Gain on sale of property from discontinued operations						(1,833)						—						N.M.
(Gain) loss on sale or disposal of assets, net						(177)						882						N.M.
EBITDAre						49,573						46,761						6		%
Management fee, net of related expenses						246						246						—		%
Share-based compensation expense						4,275						4,167						3		%
EBITDAre-Adjusted						$	54,094					$	51,174					6		%

20

Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)
						Three Months Ended September 30,												Increase						% Increase
						2021						2020						(Decrease)						(Decrease)
Same Store (53 properties excluding development land)
Property revenues
Rental						$	31,056					$	28,868					$	2,188					8		%
Management, transaction and other fees						231						888						(657)						(74)		%
Total property revenues						31,287						29,756						1,531						5		%
Property expenses
Property operation and maintenance						5,460						4,804						656						14		%
Real estate taxes						4,408						4,670						(262)						(6)		%
Total property expenses						9,868						9,474						394						4		%
Total property revenues less total property expenses						21,419						20,282						1,137						6		%
Same Store straight-line rent adjustments						(507)						(61)						(446)						(731)		%
Same Store amortization of above/below market rents						(177)						(149)						(28)						(19)		%
Same Store lease termination fees						(79)						(727)						648						89		%
Same Store NOI (1)						$	20,656					$	19,345					$	1,311					7		%

(1)     For a reconciliation of Same Store NOI, see previous section “Reconciliation of Non-GAAP Measures.”

21

Whitestone REIT and Subsidiaries
SAME STORE PROPERTY ANALYSIS
(in thousands)
						Nine Months Ended September 30,												Increase						% Increase
						2021						2020						(Decrease)						(Decrease)
Same Store (53 properties, excluding development land)
Property revenues
Rental						$	89,903					$	86,116					$	3,787					4		%
Management, transaction and other fees						764						1,510						(746)						(49)		%
Total property revenues						90,667						87,626						3,041						3		%
Property expenses
Property operation and maintenance						15,297						14,320						977						7		%
Real estate taxes						12,606						13,591						(985)						(7)		%
Total property expenses						27,903						27,911						(8)						—		%
Total property revenues less total property expenses						62,764						59,715						3,049						5		%
Same Store straight-line rent adjustments						(1,201)						558						(1,759)						(315)		%
Same Store amortization of above/below market rents						(618)						(584)						(34)						(6)		%
Same Store lease termination fees						(306)						(1,028)						722						70		%
Same Store NOI(1)						$	60,639					$	58,661					$	1,978					3		%

(1)     For a reconciliation of Same Store NOI, see previous section “Reconciliation of Non-GAAP Measures.”

22

Whitestone REIT and Subsidiaries
OTHER FINANCIAL INFORMATION
(in thousands, except number of properties and employees)
						Three Months Ended												Nine Months Ended
						September 30,												September 30,
						2021						2020						2021						2020
Other Financial Information:
Tenant improvements (1) (2)						$	476					$	1,279					$	1,444					$	2,264
Leasing commissions (1) (2)						$	610					$	221					$	2,345					$	957
Maintenance capital (1)						$	2,017					$	933					$	4,096					$	2,843
Scheduled debt principal payments (1)						$	441					$	481					$	1,331					$	1,441
Straight-line rent income (1)						$	541					$	51					$	1,235					$	(674)
Market rent amortization income from acquired leases (1)						$	161					$	147					$	603					$	586
Non-cash share-based compensation expense (1)						$	1,563					$	1,645					$	4,275					$	4,167
Non-real estate depreciation and amortization (1)						$	35					$	45					$	105					$	168
Amortization of loan fees (1)						$	291					$	282					$	839					$	851
Undepreciated value of unencumbered properties						$	883,260					$	824,628					$	883,260					$	824,628
Number of unencumbered properties						52						51						52						51
Full time employees						91						85						91						85

(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.

23

Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(in thousands, except per share amounts and percentages)
						As of September 30, 2021
MARKET CAPITALIZATION:						Percent of Total Equity						Total Market Capitalization						Percent of Total Market Capitalization
Equity Capitalization:
Common shares outstanding						98.4		%				48,840
Operating partnership units outstanding						1.6		%				773
Total						100.0		%				49,613
Market price of common shares as of
September 30, 2021												$	9.78
Total equity capitalization												$	485,215					44		%
Debt Capitalization:
Outstanding debt												$	619,472
Less: Cash and cash equivalents												(10,858)
Total debt capitalization												608,614						56		%
Total Market Capitalization as of
September 30, 2021												$	1,093,829					100		%

SELECTED RATIOS:
						Three Months Ended												Nine Months Ended
						September 30,												September 30,
INTEREST COVERAGE RATIO						2021						2020						2021						2020
EBITDAre/Interest Expense
EBITDAre (1)						$	17,232					$	15,216					$	49,573					$	46,761
Interest expense						6,142						6,400						18,417						19,561
Pro rata share of interest expense from real estate partnership						160						167						484						490
Less: amortization of loan fees, including pro rata share from real estate partnership						(280)						(282)						(839)						(851)
Interest expense, excluding amortization of loan fees						6,022						6,285						18,062						19,200
Ratio of EBITDAre to interest expense						2.9						2.4						2.7						2.4

(1)    For a reconciliation of EBITDAre, see previous section “Reconciliation of Non-GAAP Measures.”

24

Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(continued)
(in thousands, except per share amounts and percentages)
LEVERAGE RATIO						September 30,
						2021						2020
Debt/Undepreciated Book Value
Outstanding debt						$	619,009					$	667,277
Less: Cash						(10,858)						(38,990)
Add: Proportional share of net debt of real estate partnership						8,479						8,766
Outstanding debt after cash						$	616,630					$	637,053
Undepreciated real estate assets						$	1,165,274					$	1,104,963
Add: Proportional share of real estate from unconsolidated partnership						46,124						45,787
Undepreciated real estate assets						$	1,211,398					$	1,150,750
Ratio of debt to real estate assets						51		%				55		%

						Three Months Ended												Nine Months Ended
						September 30,												September 30,
						2021						2020						2021						2020
Debt/EBITDAre Ratio
Outstanding debt						$	619,009					$	667,277					$	619,009					$	667,277
Less: Cash						(10,858)						(38,990)						(10,858)						(38,990)
Add: Proportional share of net debt of unconsolidated real estate partnership						8,479						8,766						8,479						8,766
Total Net Debt						$	616,630					$	637,053					$	616,630					$	637,053
EBITDAre						$	17,232					$	15,216					$	49,573					$	46,761
Management fee, net of related expenses						83						81						246						246
Share based compensation						1,563						1,645						4,275						4,167
EBITDAre-Adjusted						$	18,878					$	16,942					$	54,094					$	51,174
Effect of partial period acquisitions and dispositions						60						—						1,614						—
Pro forma EBITDAre-Adjusted						18,938						16,942						55,708						51,174
Pro forma annualized EBITDAre-Adjusted						$	75,752					$	67,768					$	74,277					$	68,232
Ratio of debt to pro forma EBITDAre-Adjusted						8.1						9.4						8.3						9.3

25

Whitestone REIT and Subsidiaries
SUMMARY OF OUTSTANDING DEBT AND DEBT MATURITIES
TOTAL OUTSTANDING DEBT
(in thousands)
Description						September 30, 2021						December 31, 2020
Fixed rate notes
$100.0 million, 1.73% plus 1.35% to 1.90% Note, due October 30, 2022 (1)						$	100,000					$	100,000
$165.0 million, 2.24% plus 1.35% to 1.90% Note, due January 31, 2024 (2)						165,000						165,000
$80.0 million, 3.72% Note, due June 1, 2027						80,000						80,000
$19.0 million 4.15% Note, due December 1, 2024						18,442						18,687
$20.2 million 4.28% Note, due June 6, 2023						17,914						18,222
$14.0 million 4.34% Note, due September 11, 2024						13,044						13,236
$14.3 million 4.34% Note, due September 11, 2024						13,834						14,014
$15.1 million 4.99% Note, due January 6, 2024						13,973						14,165
$2.6 million 5.46% Note, due October 1, 2023						2,302						2,339
$50.0 million, 5.09% Note, due March 22, 2029						50,000						50,000
$50.0 million, 5.17% Note, due March 22, 2029						50,000						50,000
$1.7 million 3.25% Note, due December 28, 2021						463						—
Floating rate notes
Unsecured line of credit, LIBOR plus 1.40% to 1.90%, due January 31, 2023						94,500						119,500
Total notes payable principal						619,472						645,163
Less deferred financing costs, net of accumulated amortization						(823)						(978)
Total notes payable						$	618,649					$	644,185

(1)    Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 3 at 1.73%.

(2)     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.

SCHEDULE OF DEBT MATURITIES AS OF SEPTEMBER 30, 2021
(in thousands)
Year						Amount Due
2021 (remaining)						$	1,138
2022						101,683
2023						122,363
2024						228,574
2025						17,143
Thereafter						148,571
Total						$	619,472

26

Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS
						Gross Leasable Area as of						Occupancy % as of
						September 30,						September 30,						March 31						December 31,						September 30,
Community Centered Properties®						2021						2021						2021						2020						2020
Whitestone						5,116,220						90		%				89		%				88		%				89		%
Unconsolidated real estate partnership						926,798						59		%				59		%				61		%				62		%

27

Whitestone REIT and Subsidiaries
SUMMARY OF OCCUPANCY AND TOP TENANTS
(continued)
Tenant Name						Location						Annualized Rental Revenue (in thousands)						Percentage of Total Annualized Base Rental Revenues (1)						Initial Lease Date						Year Expiring
Safeway Stores Incorporated (2)						Austin, Houston and Phoenix						$	2,529					2.7		%				11/14/1982, 5/8/1991, 7/1/2000, 4/1/2014, 4/1/2014 and 10/19/16						2022, 2024, 2025, 2025, 2026 and 2034
Whole Foods Market						Houston						2,247						2.4		%				9/3/2014						2035
Frost Bank						Houston						1,988						2.1		%				7/1/2014						2024
Newmark Real Estate of Houston LLC						Houston						1,050						1.1		%				10/1/2015						2026
Bashas' Inc. (3)						Phoenix						1,010						1.1		%				10/9/2004 and 4/1/2009						2024 and 2029
Verizon Wireless (4)						Houston and Phoenix						946						1.0		%				8/16/1994, 2/1/2004, 5/10/2004, 1/27/2006 and 5/1/2014						2022, 2023, 2024, 2024 and 2038
Walgreens & Co. (5)						Houston and Phoenix						946						1.0		%				11/14/1982, 11/2/1987, 8/24/1996 and 11/3/1996						2022, 2027, 2049 and 2056
Alamo Drafthouse Cinema						Austin						690						0.7		%				2/1/2012						2031
Dollar Tree (6)						Houston and Phoenix						641						0.7		%				8/10/1999, 6/29/2001, 11/8/2009, 12/17/2009, and 5/21/2013						2023, 2025, 2025, 2026 and 2027
Wells Fargo & Company (7)						Phoenix						592						0.6		%				10/24/1996 and 4/16/1999						2022 and 2023
Kroger Co.						Dallas						483						0.5		%				12/15/2000						2022
Regus Corporation						Houston						460						0.5		%				5/23/2014						2025
Paul's Ace Hardware						Phoenix						427						0.5		%				3/1/2008						2023
Original Ninfas LP						Houston						411						0.4		%				8/29/2018						2029
Whataburger University						San Antonio						374						0.4		%				2/1/2018						2023
												$	14,794					15.7		%

(1)    Annualized Base Rental Revenues represents the monthly base rent as of September 30, 2021 for each applicable tenant multiplied by 12.

(2)    As of September 30, 2021, 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 $1,047,000, which represents approximately 1.1% 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 2026, 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 2025, was $353,000, which represents approximately 0.4% of our total annualized base rental

28

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 0.3% 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 2025, was $425,000, which represents approximately 0.5% of our total annualized base rental revenue.

(3)    As of September 30, 2021, 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 $281,000, which represents approximately 0.3% 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 $729,000, which represents approximately 0.8% of our total annualized base rental revenue.

(4)    As of September 30, 2021, 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 2038, was $22,000, 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 $136,000, which represents approximately 0.1% 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 2024, was $38,000, 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 $749,000, 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.

(5)    As of September 30, 2021, 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 0.3% of our total annualized rental revenue.

(6)    As of September 30, 2021, 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 2025, was $118,000, 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 2026, was $175,000, 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.

(7)    As of September 30, 2021, 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 0.1% 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 $461,000, which represents approximately 0.5% of our total annualized base rental revenue.

29

Whitestone REIT and Subsidiaries
TENANT TYPE SUMMARY
As of September 30, 2021
						% of Leased SF						% of ABR
Restaurants & Food Service						18%						24%
Grocery						14%						9%
Financial Services						6%						9%
Salons						7%						8%
Medical & Dental						7%						7%
Non Retail						4%						6%
General Retail						7%						5%
Home Décor And Improvement						7%						5%
Apparel						4%						4%
Education						4%						4%
Fitness						5%						4%
Local Services						2%						2%
Off-Price						4%						2%
Entertainment						2%						2%
Pet Supply & Services						3%						2%
Wireless						1%						2%
Pharmacies & Nutritional Supplies						2%						2%
Sporting Goods						1%						1%
Postal Services						1%						1%
Automotive Supply & Services						1%						1%
Total						100%						100%

30

Whitestone REIT and Subsidiaries
SUMMARY OF LEASING ACTIVITY
						Three Months Ended												Nine Months Ended
						September 30,												September 30,
						2021						2020						2021						2020
RENEWALS
Number of Leases						65						46						170						145
Total Square Feet (1)						148,574						172,174						438,357						477,341
Average Square Feet						2,286						3,743						2,579						3,292
Total Lease Value						$	20,310,000					$	9,679,000					$	48,776,000					$	35,358,000
NEW LEASES
Number of Leases						38						32						119						77
Total Square Feet (1)						90,143						85,196						282,207						181,413
Average Square Feet						2,372						2,662						2,371						2,356
Total Lease Value						$	12,735,000					$	9,861,000					$	44,943,000					$	21,131,000
TOTAL LEASES
Number of Leases						103						78						289						222
Total Square Feet (1)						238,717						257,370						720,564						658,754
Average Square Feet						2,318						3,300						2,493						2,967
Total Lease Value						$	33,045,000					$	19,540,000					$	93,719,000					$	56,489,000

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

31

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:
3rd Quarter 2021						75						$	21,174,759					159,787						4.8						$	843,333					$	5.28					$	24.34					$	23.62					$	115,317					3.0		%				$	468,826					13.1		%
2nd Quarter 2021						71						22,322,346						207,913						5.1						2,069,587						9.95						20.91						21.12						(44,199)						(1.0)		%				282,582						6.8		%
1st Quarter 2021						72						21,870,651						160,509						5.4						1,201,947						7.49						22.12						23.14						(162,801)						(4.4)		%				273,174						7.8		%
4th Quarter 2020						73						16,880,587						297,812						4.1						388,146						1.30						13.20						13.19						4,030						0.1		%				254,859						6.8		%
Total - 12 months						291						$	82,248,343					826,021						4.7						$	4,503,013					$	5.45					$	19.03					$	19.13					$	(87,653)					(0.5)		%				$	1,279,441					8.5		%
Comparable New Leases:
3rd Quarter 2021						13						$	2,201,043					18,848						4.2						$	101,472					$	5.38					$	23.72					$	25.49					$	(33,336)					(6.9)		%				$	23,927					5.4		%
2nd Quarter 2021						19						5,852,882						39,326						5.6						892,966						22.71						25.01						25.52						(19,839)						(2.0)		%				29,940						3.1		%
1st Quarter 2021						26						11,296,796						56,578						6.7						1,002,823						17.72						23.87						26.52						(149,925)						(10.0)		%				75,001						5.3		%
4th Quarter 2020						20						4,653,817						30,371						5.5						291,222						9.59						23.58						26.73						(95,836)						(11.8)		%				(42,922)						(5.4)		%
Total - 12 months						78						$	24,004,538					145,123						5.8						$	2,288,483					$	15.77					$	24.10					$	26.16					$	(298,936)					(7.9)		%				$	85,946					2.4		%
Comparable Renewal Leases:
3rd Quarter 2021						62						$	18,973,716					140,939						4.9						$	741,861					$	5.26					$	24.43					$	23.37					$	148,653					4.5		%				$	444,899					14.1		%
1st Quarter 2021						52						16,469,464						168,587						5.0						1,176,621						6.98						19.95						20.09						(24,360)						(0.7)		%				252,642						7.9		%
4th Quarter 2020						46						10,573,855						103,931						4.7						199,124						1.92						21.17						21.29						(12,876)						(0.6)		%				198,173						9.6		%
3rd Quarter 2020						53						12,226,770						267,441						3.9						96,924						0.36						12.02						11.65						99,866						3.2		%				297,781						10.1		%
Total - 12 months						213						$	58,243,805					680,898						4.5						$	2,214,530					$	3.25					$	17.95					$	17.64					$	211,283					1.8		%				$	1,193,495					10.5		%

32

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
3rd Quarter 2021						103						$	33,044,924					238,717						5.0						$	2,040,458					$	8.55					$	24.44
2nd Quarter 2021						92						29,849,313						256,622						5.7						2,870,379						11.19						21.44
1st Quarter 2021						94						30,824,156						225,225						4.0						2,034,341						9.03						13.69
4th Quarter 2020						84						19,013,353						322,875						4.0						502,216						1.56						16.85
Total - 12 months						373						$	112,731,746					1,043,439						4.9						$	7,447,394					$	7.14					$	19.72
New
3rd Quarter 2021						38						$	12,734,682					90,143						5.2						$	1,210,123					$	13.42					$	24.85
2nd Quarter 2021						35						12,312,470						75,071						5.9						1,652,986						22.02						24.44
1st Quarter 2021						46						19,895,385						116,993						6.7						1,832,500						15.66						21.62
4th Quarter 2020						28						6,477,724						49,664						4.9						401,475						8.08						22.27
Total - 12 months						147						$	51,420,261					331,871						5.8						$	5,097,084					$	15.36					$	23.23
Renewal
3rd Quarter 2021						65						$	20,310,242					148,574						5.0						$	830,335					$	5.59					$	24.19
2nd Quarter 2021						57						17,536,843						181,551						4.9						1,217,393						6.71						20.12
1st Quarter 2021						48						10,928,771						108,232						4.7						201,841						1.86						21.24
4th Quarter 2020						56						12,535,629						273,211						3.9						100,741						0.37						12.13
Total - 12 months						226						$	61,311,485					711,568						4.5						$	2,350,310					$	3.30					$	18.07

(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.

33

Whitestone REIT and Subsidiaries
LEASE EXPIRATIONS(1)
																								Annualized Base Rent(2)
												Gross Leasable Area												as of September 30, 2021
Year						Number of Leases						Square Feet						Percent of Gross Leasable Area						Amount (in thousands)						Percent of Total						Per Square Foot
2021						260						320,883						6.3		%				$	5,106					5.5		%				$	15.91
2022						288						648,636						12.7		%				12,700						13.6		%				19.58
2023						218						660,372						12.9		%				12,763						13.7		%				19.33
2024						216						756,691						14.8		%				16,093						17.2		%				21.27
2025						194						760,836						14.9		%				14,120						15.1		%				18.56
2026						145						533,162						10.4		%				10,734						11.5		%				20.13
2027						56						222,024						4.3		%				4,961						5.3		%				22.34
2028						38						172,559						3.4		%				3,952						4.2		%				22.90
2029						21						160,906						3.1		%				3,042						3.3		%				18.91
2030						24						73,243						1.4		%				2,286						2.4		%				31.21
Total						1,460						4,309,312						84.2		%				$	85,757					91.8		%				$	19.90

(1)    Lease expirations table reflects rents in place as of September 30, 2021, and does not include option periods.

(2)    Annualized Base Rent represents the monthly base rent as of September 30, 2021 for each tenant multiplied by 12.

34

Whitestone REIT and Subsidiaries
Property Details
As of September 30, 2021
Community Name						Location						Year Built/ Renovated						Gross Leasable Square Feet						Percent Occupied at 09/30/2021						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						81		%				$	648					$	11.01					$	13.42
Anthem Marketplace						Phoenix						2000						113,293						88		%				1,519						15.24						14.99
Anthem Marketplace Phase II						Phoenix						2019						6,853						100		%				235						34.23						34.00
Bissonnet/Beltway						Houston						1978						29,205						93		%				412						15.17						14.69
BLVD Place						Houston						2014						216,944						100		%				9,291						42.83						43.62
The Citadel						Phoenix						2013						28,547						99		%				508						17.97						17.97
City View Village						San Antonio						2005						17,870						100		%				556						31.11						30.37
Davenport Village						Austin						1999						128,934						95		%				3,130						25.55						25.91
Desert Canyon						Phoenix						2000						62,533						88		%				772						14.03						14.92
Eldorado Plaza						Dallas						2004						219,287						95		%				3,237						15.54						15.95
Fountain Hills						Phoenix						2009						111,289						88		%				1,602						16.36						16.41
Fountain Square						Phoenix						1986						118,209						90		%				1,859						17.47						17.62
Fulton Ranch Towne Center						Phoenix						2005						120,575						96		%				2,033						17.56						17.88
Gilbert Tuscany Village						Phoenix						2009						49,415						89		%				925						21.03						20.44
Gilbert Tuscany Village Hard Corner						Phoenix						2009						14,603						100		%				124						8.49						8.90
Heritage						Dallas						2006						70,431						100		%				1,657						23.53						23.08
HQ Village						Dallas						2009						89,134						83		%				2,409						32.56						34.79
Keller Place						Dallas						2001						93,541						93		%				970						11.15						11.36
Kempwood Plaza						Houston						1974						91,302						88		%				1,205						15.00						15.20
La Mirada						Phoenix						1997						147,209						89		%				3,170						24.20						23.57
Las Colinas						Dallas						2000						104,919						80		%				2,279						27.15						26.04
Lion Square						Houston						2014						117,592						88		%				1,618						15.64						15.60
The MarketPlace at Central						Phoenix						2012						111,130						98		%				1,096						10.06						9.63
Market Street at DC Ranch						Phoenix						2003						244,888						96		%				5,133						21.83						21.14
Mercado at Scottsdale Ranch						Phoenix						1987						118,730						86		%				1,677						16.42						16.06
Paradise Plaza						Phoenix						1983						125,898						90		%				1,578						13.93						13.04
Parkside Village North						Austin						2005						27,045						100		%				876						32.39						38.12
Parkside Village South						Austin						2012						90,101						100		%				2,210						24.53						26.99
Pima Norte						Phoenix						2007						35,110						62		%				356						16.35						17.92
Pinnacle of Scottsdale						Phoenix						1991						113,108						98		%				2,497						22.53						22.20
Pinnacle Phase II						Phoenix						2017						27,063						100		%				838						30.96						29.49
The Promenade at Fulton Ranch						Phoenix						2007						98,792						80		%				1,096						13.87						13.40
Providence						Houston						1980						90,327						92		%				1,062						12.78						13.22
Quinlan Crossing						Austin						2012						109,892						97		%				2,556						23.98						23.89
Seville						Phoenix						1990						90,042						88		%				2,581						32.57						32.41
Shaver						Houston						1978						21,926						94		%				337						16.35						16.35
Shops at Pecos Ranch						Phoenix						2009						78,767						88		%				1,782						25.71						27.19
Shops at Starwood						Dallas						2006						55,385						100		%				1,773						32.01						31.56
The Shops at Williams Trace						Houston						1985						132,991						84		%				1,938						17.35						18.42
South Richey						Houston						1980						69,928						96		%				704						10.49						10.55
Spoerlein Commons						Chicago						1987						41,455						88		%				700						19.19						20.42
Starwood Phase II						Dallas						2016						35,351						90		%				1,174						36.90						38.50
Strand						San Antonio						2000						73,920						100		%				1,753						23.71						26.27
SugarPark Plaza						Houston						1974						95,032						97		%				1,135						12.31						12.35
Sunridge						Houston						1979						49,359						90		%				668						15.04						15.26
Sunset at Pinnacle Peak						Phoenix						2000						41,530						97		%				768						19.06						19.76
Terravita Marketplace						Phoenix						1997						102,733						75		%				1,165						15.12						15.30
Town Park						Houston						1978						43,526						96		%				1,009						24.15						23.96
Dana Park						Phoenix						2009						323,026						79		%				5,730						22.45						22.23
Westchase						Houston						1978						50,332						77		%				631						16.28						16.26
Williams Trace Plaza						Houston						1983						129,222						90		%				1,812						15.58						14.60
Windsor Park						San Antonio						2012						196,458						97		%				1,960						10.29						10.10
Woodlake Plaza						Houston						1974						106,169						67		%				1,194						16.79						17.32
Total/Weighted Average - Whitestone Properties																		4,953,571						90		%				89,948						20.18						20.35
Development Properties:
Lakeside Market						Dallas						2000						162,649						80		%				3,143						$	24.15					24.89
Total/Weighted Average - Development Properties
Land Held for Development:
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 (5)																		—						—						—						—						—
Grand Total/Weighted Average - Whitestone Properties																		5,116,220						90		%				$	93,091					$	20.22					$	20.41
Properties owned in Unconsolidated Real Estate Partnership (81.4% ownership):
9101 LBJ Freeway						Dallas						1985						125,874						48		%				$	1,112					$	18.40					$	18.37
Corporate Park Northwest						Houston						1981						174,359						74		%				1,825						14.14						13.92
Corporate Park Woodland II						Houston						2000						14,344						100		%				248						17.29						17.34
Holly Hall Industrial Park						Houston						1980						90,000						57		%				373						7.27						7.27
Holly Knight						Houston						1984						20,015						100		%				431						21.53						21.53
Interstate 10 Warehouse						Houston						1980						151,000						12		%				120						6.62						6.51
Uptown Tower						Dallas						1982						253,981						64		%				4,176						25.69						25.25
Westgate Service Center						Houston						1984						97,225						90		%				731						8.35						8.16
Total/Weighted Average - Unconsolidated Properties																		926,798						59		%				$	9,016					$	16.49					$	16.27

(1)      Calculated as the tenant’s actual September 30, 2021 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of September 30, 2021. 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 September 30, 2021 equaled approximately $297,326 for the month ended September 30, 2021.

(2)      Calculated as annualized base rent divided by leased square feet as of September 30, 2021.  

(3)    Represents (i) the contractual base rent for leases in place as of September 30, 2021, 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 September 30, 2021.

(4)    Includes (i) new acquisitions, through the earlier of attainment of 90% occupancy or 18 months of ownership, and (ii) properties that are undergoing significant development, redevelopment or re-tenanting.

(5)    As of September 30, 2021, these parcels of land were held for development and, therefore, had no gross leasable area.

35