Rob Mette's questions to Whitestone REIT (WSR) leadership • Q4 2024
Question
Rob Mette from Alliance Global Partners asked for clarification on the expected capital spend for redevelopment in 2025, the underwriting yields on these projects, and the expected run rate for maintenance CapEx.
Answer
CEO David Holeman confirmed that redevelopment activity will occur in 2025 at a level slightly higher than historical spend. He detailed an intensive underwriting process, targeting double-digit returns and 20-30% rent increases, using the Williams Trace project as an example. For maintenance CapEx, CFO J. Scott Hogan advised using the average of the last 2-3 years as a guide for the future run rate.