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JMP Securities reiterated its Market Outperform rating for Whitestone REIT (NYSE:WSR) on Monday, maintaining its $16.00 price target based on the company’s recent Texas acquisition. According to InvestingPro data, the stock currently trades at $12.32, suggesting significant upside potential to the analyst target of $16.00. The company maintains a "GOOD" overall financial health score.
The research firm views Whitestone’s latest property purchase positively, noting it strengthens the company’s market position in a region with favorable operating fundamentals. The acquisition aligns with Whitestone’s strategy of targeting properties with prominent retailers, stable rent rolls, and mark-to-market opportunities.
Whitestone’s portfolio now encompasses 57 properties across Texas and Arizona markets, regions JMP highlights for their superior demographic trends. The company has consistently produced above-average operating growth from these properties, according to the research note.
JMP analysts expressed approval of Whitestone’s deployment strategy, which focuses on scaling in target markets and upgrading portfolio quality. The firm noted that Whitestone funds these acquisitions by recycling lower-growth assets at favorable spreads, creating immediate bottom-line benefits.
The research firm pointed out that Whitestone shares currently trade below 12 times estimated 2025 FFO per share, representing approximately a two-turn discount to the broader shopping center REIT sector. JMP considers this discount unwarranted given the company’s portfolio growth outpacing peers, superior market exposure, and improving leverage profile. The company’s strong financial position is evidenced by its current ratio of 2.65, indicating liquid assets well exceed short-term obligations. InvestingPro analysis reveals 8 additional key insights about WSR’s valuation and growth prospects in its comprehensive Pro Research Report.
In other recent news, Whitestone REIT reported its first-quarter 2025 earnings, revealing a notable shortfall in both earnings per share (EPS) and revenue compared to analyst expectations. The company’s EPS was reported at $0.07, significantly below the forecasted $0.315, while revenue came in at $37.4 million, missing the expected $38.7 million. Despite these misses, Whitestone reaffirmed its full-year core funds from operations (FFO) guidance, with several redevelopment projects underway that are expected to contribute to future growth. In corporate governance news, Whitestone REIT held its annual shareholder meeting, where shareholders approved the election of trustees and ratified several key proposals, including an amendment to the 2018 Long-Term Equity Incentive Plan. Additionally, the appointment of Pannell Kerr Forster of Texas, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. Analyst feedback was not mentioned in detail, but the company’s strategic positioning and ongoing redevelopment efforts were highlighted as positive factors for future performance. These developments reflect Whitestone REIT’s ongoing focus on enhancing its property portfolio and tenant mix.
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