Craig [Last Name Unknown]'s questions to Whitestone REIT (WSR) leadership • Q4 2024
Question
An analyst from Lucid Capital Markets asked if the 2025 guidance includes capital recycling, whether the current ~95% occupancy is optimal for pushing spreads, and about the cap rate on the recent Providence disposition.
Answer
CFO J. Scott Hogan confirmed that guidance does not include any capital recycling assumptions. COO Christine Mastandrea explained that while occupancy could go higher, the current high level provides opportunities to reclaim space and drive rental rate growth through remerchandising. CEO David Holeman stated that while individual cap rates aren't disclosed, the Providence sale was in line with the 'mid-6s' cap rate achieved on other recent dispositions as part of their portfolio upgrading strategy.