Investment Thesis
Whitestone REIT (WSR) delivered a mixed quarter as the company saw its average base rent increased by mid-single digits but saw its adjusted funds from operations declined year over year. The company has a quality portfolio located in markets with strong population growth projections. In addition, its portfolio of properties is generally more resilient to the rise of e-commerce. Although Whitestone currently pays a nearly 9%-yielding dividend, it has a leveraged balance sheet and a high dividend payout ratio. Investors should remain cautious and perhaps seek opportunities elsewhere.
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