Whitestone REIT

NYSE:WSRUnited States

--------- -------- Core FFO $ 46,765 $ 40,705 --------- -------- Denominator: Weighted average number of total common shares - basic 49,501 45,486 Weighted average number of total noncontrolling OP units - basic 694 772 --------- -------- Weighted average number of total common shares and noncontrolling OP units - basic 50,195 46,258 Effect of dilutive securities: Unvested restricted shares 1,312 850 --------- -------- Weighted average number of total common shares and noncontrolling OP units - diluted 51,507 47,108 ========= ======== FFO per common share and OP unit - basic $ 0.90 $ 0.88 FFO per common share and OP unit - diluted $ 0.88 $ 0.86 Core FFO per common share and OP unit - basic $ 0.93 $ 0.88 Core FFO per common share and OP unit - diluted $ 0.91 $ 0.86 Whitestone REIT and Subsidiaries RECONCILIATION OF NON-GAAP MEASURES (continued) (in thousands) Year Ended December 31, 2023 2020 --------- -------- EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) Net income attributable to Whitestone REIT $ 19,180 $ 6,034 Depreciation and amortization 32,966 28,303 Interest expense 32,866 25,770 Provision for income taxes 450 379 Net income attributable to noncontrolling interests 270 117 (Equity) deficit in earnings of real estate partnership (1) 3,155 (921) EBITDAre adjustments for real estate partnership (1) 617 3,484 Loss (gain) loss on sale or disposal of assets, net (8,484) 364 Gain on loan forgiveness -- (1,734) --------- -------- EBITDAre 81,020 61,796 Year Ended December 31, ------------------------------- Debt/EBITDAre Ratio 2023 2020 --------- -------- Outstanding debt $ 640,549 $ 645,163 Less: Cash (4,572) (25,777) Deposit due to real estate partnership debt default (13,633) - Add: Proportional share of net debt of unconsolidated real estate partnership (1) 8,685 8,912 --------- -------- Total Net Debt $ 631,029 $ 628,298 EBITDAre $ 81,020 $ 61,796 Ratio of debt to pro forma EBITDAre 7.8 10.2 Whitestone REIT and Subsidiaries RECONCILIATION OF NON-GAAP MEASURES Initial Full Year Guidance for 2024 (in thousands) Projected Range Fourth Quarter 2024 Low High ---------------------- --------------------- EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) Net income attributable to Whitestone REIT $ 6,161 $ 5,311 Depreciation and amortization 8,746 8,746 Interest expense 8,013 8,013 Provision for income taxes 134 134 Net income attributable to noncontrolling interests 89 89 EBITDAre $ 23,143 $ 22,293 ============== ============== Annualized EBITDAre $ 92,572 $ 89,172 ============== ============== Outstanding debt, net of insurance financing 616,290 624,290 Less: Cash (3,000) (3,000) Add: Proportional share on net debt of unconsolidated real estate partnership -- -- Total net debt $ 613,290 $ 621,290 ============== ============== Ratio of Net Debt to EBITDAre 6.6 7.0 ============== ==============

Erez REIT Opportunities LP, Erez Asset Management LLC, Bruce Schanzer and Catherine Clark (collectively, the "Participants") are participants in the solicitation of proxies from the shareholders of the Company for the 2024 Annual Meeting of Shareholders (the "Annual Meeting"). On April 5, 2024, the Participants filed with the U.S. Securities and Exchange Commission (the "SEC") their definitive proxy statement and accompanying BLUE Proxy Card in connection with their solicitation of proxies from the shareholders of the Company for the Annual Meeting. ALL SHAREHOLDERS OF THE COMPANY ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT, THE ACCOMPANYING BLUE PROXY CARD AND OTHER DOCUMENTS RELATED TO THE SOLICITATION OF PROXIES BY THE PARTICIPANTS, AS THEY CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION RELATED TO THE PARTICIPANTS AND THEIR DIRECT OR INDIRECT INTERESTS IN THE COMPANY, BY SECURITY HOLDINGS OR OTHERWISE.