Form 10-Q - Quarterly report [Sections 13 or 15(d)]

 

 

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

	(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2024

OR

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____________ to ____________

 

Commission File Number 001-34855

WHITESTONE REIT

(Exact Name of Registrant as Specified in Its Charter)

 

 

Maryland		76-0594970
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

 

2600 South Gessner, Suite 500		77063
Houston, Texas
(Address of Principal Executive Offices)		(Zip Code)

 

[phone]

(Registrant’s Telephone Number, Including Area Code)

 

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares of Beneficial Interest, par value $0.001 per share	WSR	New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒Yes     ☐No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☒Yes    ☐No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer	☐		Accelerated filer	☒
Non-accelerated filer	☐		Small reporting company	☐
Emerging growth company	☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐Yes   ☒ No

 

As of October 28, 2024, there were 50,646,473 common shares of beneficial interest, $0.001 par value per share, outstanding.

 

 

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PART I - FINANCIAL INFORMATION

 

Item 1.	Financial Statements.	1
	Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023	1
	Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023	3
	Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023	6
	Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2024 and 2023	8
	Notes to Consolidated Financial Statements (Unaudited)	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	58
Item 4.	Controls and Procedures.	58

 

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings.	59
Item 1A.	Risk Factors.	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	60
Item 3.	Defaults Upon Senior Securities.	60
Item 4.	Mine Safety Disclosures.	60
Item 5.	Other Information.	60
Item 6.	Exhibits.	60
	Exhibit Index	61
	Signatures	62

 

 

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Whitestone REIT and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

		September 30, 2024				December 31, 2023
			(unaudited)
ASSETS
Real estate assets, at cost
Property		$	1,243,067			$	1,221,466
Accumulated depreciation			(243,500	)			(229,767	)
Total real estate assets			999,567				991,699
Investment in real estate partnership			—				31,671
Cash and cash equivalents			2,534				4,572
Restricted cash			—				68
Escrows and deposits			3,667				24,148
Accrued rents and accounts receivable, net of allowance for doubtful accounts			32,541				30,592
Receivable from partnership redemption			31,643				—
Receivable due from related party			15,186				1,513
Unamortized lease commissions, legal fees and loan costs			14,148				13,783
Prepaid expenses and other assets(1)			2,826				4,765
Finance lease right-of-use assets			10,449				10,428
Total assets		$	1,112,561			$	1,113,239
LIABILITIES AND EQUITY
Liabilities:
Notes payable		$	633,552			$	640,172
Accounts payable and accrued expenses(2)			36,185				36,513
Payable due to related party			1,577				1,577
Tenants' security deposits			9,175				8,614
Dividends and distributions payable			6,279				6,025
Finance lease liabilities			789				721
Total liabilities			687,557				693,622
Commitments and contingencies:			—				—
Equity:
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of September 30, 2024 and December 31, 2023			—				—
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 50,645,877 and 49,610,831 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively			51				50
Additional paid-in capital			636,192				628,079
Accumulated deficit			(216,044	)			(216,963	)
Accumulated other comprehensive income (loss)			(679	)			2,576
Total Whitestone REIT shareholders' equity			419,520				413,742
Noncontrolling interest in subsidiary			5,484				5,875
Total equity			425,004				419,617
Total liabilities and equity		$	1,112,561			$	1,113,239

 

See accompanying notes to Consolidated Financial Statements.

 

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

		September 30, 2024				December 31, 2023
			(unaudited)
(1) Operating lease right of use assets (net)		$	67			$	109
(2) Operating lease liabilities		$	67			$	112

 

See accompanying notes to Consolidated Financial Statements.

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Revenues
Rental(1)		$	38,107			$	36,667			$	112,328			$	108,405
Management, transaction, and other fees			526				467				1,116				1,040
Total revenues			38,633				37,134				113,444				109,445
Operating expenses
Depreciation and amortization			8,921				8,332				26,242				24,538
Operating and maintenance			7,303				6,862				20,667				19,847
Real estate taxes			4,838				4,693				12,988				14,168
General and administrative			4,878				5,392				17,610				15,651
Total operating expenses			25,940				25,279				77,507				74,204
Other expenses (income)
Interest expense			8,506				8,400				25,813				24,563
Gain on sale of properties			(3,762	)			(5	)			(10,212	)			(9,626	)
Loss on disposal of assets			111				480				183				500
Interest, dividend and other investment income			(3	)			(11	)			(15	)			(49	)
Total other expenses			4,852				8,864				15,769				15,388
Income before equity investment in real estate partnership and income tax			7,841				2,991				20,168				19,853
Deficit in earnings of real estate partnership			—				(375	)			(28	)			(1,627	)
Provision for income tax			(118	)			(95	)			(327	)			(339	)
Net income			7,723				2,521				19,813				17,887
Less: Net income attributable to noncontrolling interests			99				35				257				248
Net income attributable to Whitestone REIT		$	7,624			$	2,486			$	19,556			$	17,639

 

See accompanying notes to Consolidated Financial Statements.

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands, except per share data)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Basic Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares		$	0.15			$	0.05			$	0.39			$	0.36
Diluted Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares		$	0.15			$	0.05			$	0.38			$	0.35
Weighted average number of common shares outstanding:
Basic			50,297				49,534				50,067				49,472
Diluted			51,305				50,637				51,106				50,399
Consolidated Statements of Comprehensive Income (Loss)
Net income		$	7,723			$	2,521			$	19,813			$	17,887
Other comprehensive income (loss)
Unrealized gain (loss) on cash flow hedging activities			(8,946	)			4,094				(3,296	)			6,602
Comprehensive income (loss)			(1,223	)			6,615				16,517				24,489
Less: Net income attributable to noncontrolling interests			99				35				257				248
Less: Comprehensive income (loss) attributable to noncontrolling interests			(115	)			56				(41	)			91
Comprehensive income (loss) attributable to Whitestone REIT		$	(1,207	)		$	6,524			$	16,301			$	24,150

 

See accompanying notes to Consolidated Financial Statements.

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
(1) Rental
Rental revenues		$	27,114			$	26,521			$	81,350			$	78,780
Recoveries			11,338				10,535				32,009				30,571
Bad debt			(345	)			(389	)			(1,031	)			(946	)
Total rental		$	38,107			$	36,667			$	112,328			$	108,405

 

See accompanying notes to Consolidated Financial Statements.

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

(in thousands)

 

																		Accumulated
										Additional								Other				Total				Noncontrolling
		Common Shares								Paid-In				Accumulated				Comprehensive				Shareholders’				Interests								Total
		Shares				Amount				Capital				Deficit				Income (Loss)				Equity				Units				Dollars				Equity
Balance, December 31, 2023			49,611			$	50			$	628,079			$	(216,963	)		$	2,576			$	413,742				694			$	5,875			$	419,617
Exchange of noncontrolling interest OP units for common shares			44				—				355				—				—				355				(44	)			(355	)			—
Issuance of shares under dividend reinvestment plan			2				—				23				—				—				23				—				—				23
Repurchase of common shares (1)			(118	)			—				(1,442	)			—				—				(1,442	)			—				—				(1,442	)
Share-based compensation			420				—				861				—				—				861				—				—				861
Distributions - $0.1200 per common share / OP unit			—				—				—				(6,175	)			—				(6,175	)			—				(92	)			(6,267	)
Unrealized gain on change in value of cash flow hedge			—				—				—				—				4,941				4,941				—				66				5,007
Net income			—				—				—				9,340				—				9,340				—				124				9,464
Balance, March 31, 2024			49,959			$	50			$	627,876			$	(213,798	)		$	7,517			$	421,645				650			$	5,618			$	427,263
Issuance of shares under dividend reinvestment plan			1				—				19				—				—				19				—				—				19
Repurchase of common shares (1)			(90	)			—				(1,199	)			—				—				(1,199	)			—				—				(1,199	)
Share-based compensation			194				—				763				—				—				763				—				—				763
Distributions - $0.1238 per common share / OP unit			—				—				—				(6,195	)			—				(6,195	)			—				(80	)			(6,275	)
Unrealized gain on change in value of cash flow hedge			—				—				—				—				635				635				—				8				643
Net income			—				—				—				2,592				—				2,592				—				34				2,626
Balance, June 30, 2024			50,064			$	50			$	627,459			$	(217,401	)		$	8,152			$	418,260				650			$	5,580			$	423,840
Issuance of common shares - ATM Program, net of offering costs			580				1				7,619				—				—				7,620				—				—				7,620
Exchange offer costs			—				—				(81	)			—				—				(81	)			—				—				(81	)
Issuance of shares under dividend reinvestment plan			2				—				14				—				—				14				—				—				14
Share-based compensation			—				—				1,181				—				—				1,181				—				—				1,181
Distributions - $0.1238 per common share / OP unit			—				—				—				(6,267	)			—				(6,267	)			—				(80	)			(6,347	)
Unrealized loss on change in value of cash flow hedge			—				—				—				—				(8,831	)			(8,831	)			—				(115	)			(8,946	)
Net income			—				—				—				7,624				—				7,624				—				99				7,723
Balance, September 30, 2024			50,646			$	51			$	636,192			$	(216,044	)		$	(679	)		$	419,520				650			$	5,484			$	425,004

 

See accompanying notes to Consolidated Financial Statements

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

(in thousands)

 

																		Accumulated
										Additional								Other				Total				Noncontrolling
		Common Shares								Paid-In				Accumulated				Comprehensive				Shareholders’				Interests								Total
		Shares				Amount				Capital				Deficit				Income (Loss)				Equity				Units				Dollars				Equity
Balance, December 31, 2022			49,423			$	49			$	624,785			$	(212,366	)		$	5,980			$	418,448				695			$	6,006			$	424,454
Issuance of shares under dividend reinvestment plan			2				—				17				—				—				17				—				—				17
Share-based compensation			—				—				755				—				—				755				—				—				755
Distributions - $0.1200 per common share / OP unit			—				—				—				(5,931	)			—				(5,931	)			—				(83	)			(6,014	)
Unrealized loss on change in value of cash flow hedge			—				—				—				—				(4,523	)			(4,523	)			—				(64	)			(4,587	)
Net income			—				—				—				3,847				—				3,847				—				54				3,901
Balance, March 31, 2023			49,425			$	49			$	625,557			$	(214,450	)		$	1,457			$	412,613				695			$	5,913			$	418,526
Exchange of noncontrolling interest OP units for common shares			1				1				10				—				—				11				(1	)			(11	)			—
Issuance of shares under dividend reinvestment plan			2				—				19				—				—				19				—				—				19
Repurchase of common shares (1)			(30	)			—				(289	)			—				—				(289	)			—				—				(289	)
Share-based compensation			122				—				725				—				—				725				—				—				725
Distributions - $0.1200 per common share / OP unit			—				—				—				(5,943	)			—				(5,943	)			—				(86	)			(6,029	)
Unrealized gain on change in value of cash flow hedge			—				—				—				—				6,996				6,996				—				99				7,095
Net income			—				—				—				11,306				—				11,306				—				159				11,465
Balance, June 30, 2023			49,520			$	50			$	626,022			$	(209,087	)		$	8,453			$	425,438				694			$	6,074			$	431,512
Exchange of noncontrolling interest OP units for common shares			1				—				5				—				—				5				(1	)			(5	)			—
Issuance of shares under dividend reinvestment plan			2				—				19				—				—				19				—				—				19
Repurchase of common shares (1)			(23	)			—				(236	)			—				—				(236	)			—				—				(236	)
Share-based compensation			85				—				1,005				—				—				1,005				—				—				1,005
Distributions - $0.1200 per common share / OP unit			—				—				—				(5,950	)			—				(5,950	)			—				(83	)			(6,033	)
Unrealized gain on change in value of cash flow hedge			—				—				—				—				4,038				4,038				—				56				4,094
Net income			—				—				—				2,486				—				2,486				—				35				2,521
Balance, September 30, 2023			49,585			$	50			$	626,815			$	(212,551	)		$	12,491			$	426,805				693			$	6,077			$	432,882

 

⁽¹⁾    The Company acquired common shares held by employees who tendered owned common shares to satisfy the tax withholding on the lapse of certain restrictions on restricted common shares.

 

See accompanying notes to Consolidated Financial Statements.

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

 

		Nine Months Ended September 30,
		2024				2023
Cash flows from operating activities:
Net income		$	19,813			$	17,887
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			26,242				24,538
Amortization of deferred loan costs			823				820
Gain on sale of properties			(10,212	)			(9,626	)
Loss on disposal of assets			183				500
Bad debt			1,031				946
Share-based compensation			2,805				2,485
Deficit in earnings of real estate partnership			28				1,627
Amortization of right-of-use assets - finance leases			65				72
Changes in operating assets and liabilities:
Escrows and deposits			6,238				2,282
Accrued rents and accounts receivable			(2,980	)			(4,359	)
Receivable due from related party			(40	)			(128	)
Unamortized lease commissions, legal fees and loan costs			(1,992	)			(2,644	)
Prepaid expenses and other assets			1,705				2,432
Accounts payable and accrued expenses			(4,114	)			(1,011	)
Payable due to related party			—				16
Tenants' security deposits			561				17
Net cash provided by operating activities			40,156				35,854
Cash flows from investing activities:
Acquisitions of real estate			(50,137	)			(25,474	)
Additions to real estate			(15,485	)			(12,748	)
Proceeds from sales of properties			46,444				13,447
Net cash used in investing activities			(19,178	)			(24,775	)
Cash flows from financing activities:
Distributions paid to common shareholders			(18,325	)			(17,754	)
Distributions paid to OP unit holders			(240	)			(249	)
Proceeds from issuance of common shares, net of offering costs			7,620				—
Payments of exchange offer costs			(81	)			—
Net (payments of) proceeds from credit facility			(17,000	)			34,000
Repayments of notes payable			(47,950	)			(29,823	)
Proceeds from notes payable			56,340				—
Payments of loan origination costs			(789	)			—
Repurchase of common shares			(2,641	)			(525	)
Payment of finance lease liability			(18	)			(10	)
Net cash used in financing activities			(23,084	)			(14,361	)
Net decrease in cash, cash equivalents and restricted cash			(2,106	)			(3,282	)
Cash, cash equivalents and restricted cash at beginning of period			4,640				6,355
Cash, cash equivalents and restricted cash at end of period (1)		$	2,534			$	3,073

 

(1)	For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below.

 

See accompanying notes to Consolidated Financial Statements.

 

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Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

 

		Nine Months Ended September 30,
		2024				2023
Supplemental disclosure of cash flow information:
Cash paid for interest		$	25,384			$	23,223
Cash paid for taxes		$	432			$	435
Non cash investing and financing activities:
Disposal of fully depreciated real estate		$	29			$	864
Financed insurance premiums		$	2,638			$	3,002
Value of shares issued under dividend reinvestment plan		$	56			$	55
Value of common shares exchanged for OP units		$	355			$	16
Change in fair value of cash flow hedge		$	(3,296	)		$	6,602
Accrued capital expenditures		$	1,439			$	—
Receivable from partnership redemption		$	31,643			$	—
Recognition of finance lease liability		$	86			$	—

 

		September 30,
		2024				2023
Cash, cash equivalents and restricted cash
Cash and cash equivalents		$	2,534			$	2,976
Restricted cash			—				97
Total cash, cash equivalents and restricted cash		$	2,534			$	3,073

 

 

 

See accompanying notes to Consolidated Financial Statements.

 

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

The use of the words “we,” “us,” “our,” “Company” or “Whitestone” refers to Whitestone REIT and our consolidated subsidiaries, except where the context otherwise requires.

 

1.  INTERIM FINANCIAL STATEMENTS

 

The consolidated financial statements included in this report are unaudited; however, amounts presented in the consolidated balance sheet as of December 31, 2023 are derived from our audited consolidated financial statements as of that date.  The unaudited consolidated financial statements as of and for the period ended September 30, 2024 have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information on a basis consistent with the annual audited consolidated financial statements and with the instructions to Form 10-Q.

 

The consolidated financial statements presented herein reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position of Whitestone and our subsidiaries as of September 30, 2024 and December 31, 2023, and the results of operations for the three and nine month periods ended September 30, 2024 and 2023, the consolidated statements of changes in equity for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 2024 and 2023.  All of these adjustments are of a normal recurring nature.  The results of operations for the interim periods are not necessarily indicative of the results expected for a full year.  The statements should be read in conjunction with the audited consolidated financial statements and the notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2023.

 

Business.  Whitestone was formed as a real estate investment trust (“REIT”) pursuant to the Texas Real Estate Investment Trust Act on August 20, 1998.  In July 2004, we changed our state of organization from Texas to Maryland pursuant to a merger where we merged directly with and into a Maryland REIT formed for the sole purpose of the reorganization and the conversion of each of the outstanding common shares of beneficial interest of the Texas entity into 1.42857 common shares of beneficial interest of the Maryland entity.  We serve as the general partner of Whitestone REIT Operating Partnership, L.P. (the “Operating Partnership”), which was formed on December 31, 1998 as a Delaware limited partnership.  We currently conduct substantially all of our operations and activities through the Operating Partnership.  As the general partner of the Operating Partnership, we have the exclusive power to manage and conduct the business of the Operating Partnership, subject to certain customary exceptions.  For both periods ended  September 30, 2024 and December 31, 2023, Whitestone wholly owned 55 commercial properties in and around Austin, Dallas-Fort Worth, Houston, Phoenix and San Antonio.

 

As of September 30, 2024, these properties consist of:

 

Consolidated Operating Portfolio

 

•

50 wholly owned properties that meet our Community Centered Properties® strategy; and

 

Redevelopment, New Acquisitions Portfolio

 

•

five parcels of land held for future development.

 

Acquired properties are categorized in the new acquisitions portfolio until the earlier of 90% occupancy or 18 months of ownership.

 

As of September 30, 2024, our ownership in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”) no longer represents a majority interest. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. On March 4, 2024, Pillarstone Capital REIT (“Pillarstone REIT”) authorized and filed a Chapter 11 bankruptcy (the “Pillarstone Bankruptcies”) of itself, Pillarstone OP, and all of its remaining special purpose entities in the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”). The Company has filed a claim in the “Pillarstone Bankruptcies” for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our receivable, formerly our equity investment in Pillarstone OP. Please refer to Note 6 in this Quarterly Report on form 10-Q for more information regarding the accounting treatment of the redemption of our OP units in Pillarstone OP. 

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

 

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

 

Basis of Consolidation.  We are the sole general partner of the Operating Partnership and possess full legal control and authority over the operations of the Operating Partnership. As of September 30, 2024 and December 31, 2023, we owned a majority of the partnership interests in the Operating Partnership. Consequently, the accompanying consolidated financial statements include the accounts of the Operating Partnership.

 

Noncontrolling interest in the accompanying consolidated financial statements represents the share of equity and earnings of the Operating Partnership allocable to holders of partnership interests other than us. Net income or loss is allocated to noncontrolling interests based on the weighted-average percentage ownership of the Operating Partnership during the period. Issuance of additional common shares of beneficial interest in Whitestone (the “common shares”) and units of limited partnership interest in the Operating Partnership that are convertible into cash or, at our option, common shares on a one-for-one basis (the “OP units”) changes the percentage of ownership interests of both the noncontrolling interests and Whitestone.

 

Estimates regarding Pillarstone OP’s financial condition and results of operations. We rely on the reports furnished by our third-party partners for financial information regarding the Company’s investment in Pillarstone OP. As of September 30, 2024 and December 31, 2023, Pillarstone OP’s financial statements have not been made accessible to us. Consequently, we have estimated the financial status and operational outcomes of Pillarstone OP based on the information accessible to us at the time of this report.

 

Equity Method. In compliance with Accounting Standards Update (“ASU”) 2014-09 (“Topic 606”) and Accounting Standards Codification (“ASC”) 610, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets,” the Company previously accounted for its investment in Pillarstone OP using the equity method. However, subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for substantially all of its investment in Pillarstone OP. Please refer to Note 6 to the accompanying consolidated financial statements for the full disclosure.

 

Basis of Accounting.  Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred.

 

Use of Estimates.   The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that we use include the estimated fair values of properties acquired, the estimated useful lives for depreciable and amortizable assets and costs, the grant date fair value of common share units included in share-based compensation expense, the estimated allowance for doubtful accounts, the estimated fair value of interest rate swaps, the estimates supporting our impairment analysis for the carrying values of our real estate assets, the estimates made regarding Pillarstone REIT Operating Partnership LP’s financial condition and results of operations, and the estimated allowance for credit loss.  Actual results could differ from those estimates. 

 

Reclassifications.  We have reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net income, total assets, total liabilities or equity.

 

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September 30, 2024

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Restricted Cash. We classify all cash pledged as collateral to secure certain obligations and all cash whose use is limited as restricted cash. During 2015, pursuant to the terms of our $15.1 million 4.99% Note, due January 6, 2024 (see Note 7 (Debt)), which was collateralized by our Anthem Marketplace property, we were required by the lenders thereunder to establish a cash management account controlled by the lenders to collect all amounts generated by our Anthem Marketplace property in order to collateralize such promissory note. The note was paid off in January 2024. As of September 30, 2024, we had no restricted cash.

 

Derivative Instruments and Hedging Activities. We utilize derivative financial instruments, principally interest rate swaps, to manage our exposure to fluctuations in interest rates. We have established policies and procedures for risk assessment, and the approval, reporting and monitoring of derivative financial instruments. We recognize our interest rate swaps as cash flow hedges with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Any ineffective portion of a cash flow hedges’ change in fair value is recorded immediately into earnings. Our cash flow hedges are determined using Level 2 inputs under ASC 820, “Fair Value Measurements and Disclosures.” Level 2 inputs represent quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable. As of September 30, 2024, we consider our cash flow hedges to be highly effective.

 

Development Properties. Land, buildings and improvements are recorded at cost. Expenditures related to the development of real estate are carried at cost which includes capitalized carrying charges and development costs. Carrying charges (interest, real estate taxes, loan fees, and direct and indirect development costs related to buildings under construction) are capitalized as part of construction in progress. The capitalization of such costs ceases when the property, or any completed portion, becomes available for occupancy. For the three months ended September 30, 2024, approximately $ 150,000 and $ 15,000 in interest expense and real estate taxes, respectively, were capitalized, and for the nine months ended  September 30, 2024, approximately $ 434,000 and $ 137,000 in interest expense and real estate taxes, respectively, were capitalized. For the three months ended September 30, 2023, approximately $ 142,000 and $ 85,000 in interest expense and real estate taxes, respectively, were capitalized and for the nine months ended September 30, 2023, approximately $ 413,000 and $ 230,000 in interest expense and real estate taxes, respectively, were capitalized.  

 

Share-Based Compensation.  From time to time, we award nonvested restricted common share awards or restricted common share unit awards, which may be converted into common shares, to executive officers and employees under our 2018 Long-Term Equity Incentive Ownership Plan (the “2018 Plan”).  Awarded shares and units vest when certain performance conditions are met.  We recognize compensation expense when achievement of the performance conditions is probable based on management’s most recent estimates using the fair value of the shares as of the grant date.  We recognized $ 1,281,000 and $ 1,083,000 in share-based compensation net of forfeitures for the three months ended September 30, 2024 and 2023, respectively, and we recognized $ 3,105,000 and $ 2,712,000 in share-based compensation net of forfeitures for the nine months ended September 30, 2024 and 2023, respectively.

 

Noncontrolling Interests.  Noncontrolling interests are the portion of equity in a subsidiary not attributable to a parent. Accordingly, we have reported noncontrolling interests in equity on the consolidated balance sheets but separate from Whitestone’s equity.  On the consolidated statements of operations and comprehensive income (loss), subsidiaries are reported at the consolidated amount, including both the amount attributable to Whitestone and noncontrolling interests.  The consolidated statements of changes in equity is included for quarterly financial statements, including beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

Accrued Rents and Accounts Receivable. Included in accrued rents and accounts receivable are base rents, tenant reimbursements and receivables attributable to recording rents on a straight-line basis. We review the collectability of charges under our tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. We recognize an adjustment to rental revenue if we deem it probable that the receivable will not be collected. Our review of collectability under our operating leases includes any accrued rental revenues related to the straight-line method of reporting rental revenue. As of September 30, 2024 and December 31, 2023, we had an allowance for uncollectible accounts of  $14.5 million and $13.6 million, respectively. During the three months ended  September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustments, resulting in a $0.3 million and $0.4 million decrease in revenue, respectively, and during the nine months ended September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustment, resulting in a $1.0 million decrease in revenue during both periods. The three months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The three months ended  September 30, 2023 included 17 cash basis tenants, resulting in an increase to rental revenue for straight-line rent adjustment of $0.03 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The nine months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.2 million and a decrease to rental revenue for bad debt adjustments of $0.5 million, and the nine months ended  September 30, 2023 included 17 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.5 million.

 

Revenue Recognition. All leases on our properties are classified as operating leases, and the related rental income is recognized on a straight-line basis over the terms of the related leases. Differences between rental income earned and amounts due per the respective lease agreements are capitalized or charged, as applicable, to accrued rents and accounts receivable. Percentage rents are recognized as rental income when the thresholds upon which they are based have been met.  Recoveries from tenants for taxes, insurance, and other operating expenses are recognized as revenues in the period the corresponding costs are incurred. We combine lease and nonlease components in lease contracts, which includes combining base rent, recoveries, and percentage rents into a single line item, Rental, within the consolidated statements of operations and comprehensive income (loss). Additionally, we have tenants who pay real estate taxes directly to the taxing authority. We exclude these costs paid directly by the tenant to third parties on our behalf from revenue recognized and the associated property operating expense.

 

Other property income primarily includes amounts recorded in connection with lease termination fees. We recognize lease termination fees in the year that the lease is terminated and collection of the fee is probable. Amounts recorded within other property income are accounted for at the point in time when control of the goods or services transfers to the customer and our performance obligation is satisfied.

 

See our Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion on significant accounting policies.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

 

3.  LEASES 

 

As a Lessor. All leases on our properties are classified as noncancelable operating leases, and the related rental income is recognized on a straight-line basis over the terms of the related leases. Differences between rental income earned and amounts due per the respective lease agreements are capitalized or charged, as applicable, to accrued rents and accounts receivable. Percentage rents are recognized as rental income when the thresholds upon which they are based have been met.  Recoveries from tenants for taxes, insurance, and other operating expenses are recognized as revenues in the period the corresponding costs are incurred. We combine lease and nonlease components in lease contracts, which includes combining base rent, recoveries, and percentage rents into a single line item, Rental, within the consolidated statements of operations and comprehensive income (loss).

 

A summary of minimum future rents to be received (exclusive of renewals, tenant reimbursements, contingent rents, and collectability adjustments under Topic 842) under noncancelable operating leases in existence as of September 30, 2024 is as follows (in thousands):

 

Years Ended December 31,		Minimum Future Rents
2024 (remaining)		$	25,841
2025			97,335
2026			82,891
2027			69,491
2028			55,006
Thereafter			155,061
Total		$	485,625

 

As a Lessee. We have office space, automobile, and office machine leases, which qualify as operating leases, with remaining lease terms of one to five years.  As of September 30, 2024, the Company had one ground lease and one office machine lease that were classified as finance leases. The ground lease provides for variable rental payments based on CPI adjustment. 

 

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by our weighted average incremental borrowing rates to calculate the lease liabilities for our operating leases in which we are the lessee (in thousands):

 

Years Ended December 31,		Operating Leases				Finance Leases
2024 (remaining)		$	9			$	21
2025			30				82
2026			24				83
2027			7				85
2028			1				86
Thereafter			—				2,723
Total undiscounted rental payments			71				3,080
Less imputed interest			4				2,291
Total lease liabilities		$	67			$	789

 

For the three months ended September 30, 2024 and 2023, the total lease costs for operating leases were $ 6,000 and $ 23,000, respectively, and for the finance leases were $ 27,000 and $ 21,000, respectively. For the nine months ended September 30, 2024 and 2023, the total lease costs for operating leases were $ 35,000 and $ 64,000 respectively, and for the finance leases were $ 70,000 and $ 72,000, respectively.

 

The weighted average remaining lease term for our operating leases and our finance leases was two and 94 years, respectively, at September 30, 2024. We do not include renewal options in the lease term for calculating the lease liability unless we are reasonably certain we will exercise the option or the lessor has the sole ability to exercise the option. The weighted average incremental borrowing rate was 4.5% for our operating leases and 6.1% for our finance leases at September 30, 2024.

 

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September 30, 2024

(Unaudited)

 

 

4. ACCRUED RENTS AND ACCOUNTS RECEIVABLE, NET

 

Accrued rents and accounts receivable, net consists of amounts accrued, billed and due from tenants, allowance for doubtful accounts and other receivables as follows (in thousands):

 

		September 30, 2024				December 31, 2023
Tenant receivables		$	17,064			$	16,287
Accrued rents and other recoveries			28,312				26,751
Allowance for doubtful accounts			(14,451	)			(13,570	)
Other receivables			1,616				1,124
Total		$	32,541			$	30,592

 

 

5. UNAMORTIZED LEASE COMMISSIONS, LEGAL FEES AND LOAN COSTS

 

Costs which have been deferred consist of the following (in thousands):

 

		September 30, 2024				December 31, 2023
Leasing commissions		$	20,737			$	19,462
Deferred legal cost			293				356
Deferred financing cost			4,149				4,149
Total cost			25,179				23,967
Less: leasing commissions accumulated amortization			(8,930	)			(8,744	)
Less: deferred legal cost accumulated amortization			(258	)			(272	)
Less: deferred financing cost accumulated amortization			(1,843	)			(1,168	)
Total cost, net of accumulated amortization		$	14,148			$	13,783

 

 

6. INVESTMENT IN REAL ESTATE PARTNERSHIP

 

On December 8, 2016, we, through our Operating Partnership, entered into a Contribution Agreement (the “Contribution Agreement”) with Pillarstone OP and Pillarstone Capital REIT (“Pillarstone REIT”) pursuant to which we contributed all of the equity interests in four of our wholly-owned subsidiaries that, at the time, owned 14 non-core properties that did not fit our Community Centered Property® strategy (the “Pillarstone Properties”), to Pillarstone OP for aggregate consideration of approximately $84 million, consisting of (1) approximately $18.1 million of Class A units representing limited partnership interests in Pillarstone OP (“Pillarstone OP Units”) and (2) the assumption of approximately $65.9 million of liabilities (collectively, the “Contribution”). As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. As of the date of this filing, we have not received consideration for our redemption of our equity investment in Pillarstone OP as required by the partnership agreement. The Company has filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP. 

 

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September 30, 2024

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In connection with the Contribution, Whitestone TRS, Inc., a subsidiary of the Company (“Whitestone TRS”), entered into a management agreement with the entities that own the contributed Pillarstone Properties (collectively, the “Management Agreements”). Pursuant to the Management Agreements, Whitestone TRS agreed to provide certain property management, leasing and day-to-day advisory and administrative services. The Management Agreements were terminated on August 18, 2022.  Prior to the termination of the Management Agreement, we reported approximately $144,000 in property management fee income on a quarterly basis. 

 

The table below presents the real estate partnership investment in which we hold an ownership interest (in thousands):

 

						Company’s Investment as of
						September 30, 2024				December 31, 2023
Real estate partnership		Ownership Interest
Pillarstone OP			81.4%			$	—			$	31,671
Total real estate partnership(1)(2)(3)						$	—			$	31,671

 

(1)

Representing eight property interests and 926,798 square feet of GLA, as of December 31, 2023. Subsequent to January 25, 2024, we ceased utilizing the equity method following the exercise of our notice of redemption for the majority of our investment in Pillarstone OP. We reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income.

 

(2)

On December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent us from exercising our contractual Redemption Right, on July 12, 2022, we filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement. On September 8, 2022, our Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that our right of redemption is not impaired while the underlying dispute is being considered by the Court. On January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted us from exercising the unfettered contractual redemption right we obtained in connection with our investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed us to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, later enter a monetary judgment against Pillarstone for the difference between the amount we would have received in or around December 2021 and the current value. On January 25, 2024, we exercised our notice of redemption for substantially all of its investment in Pillarstone OP. On March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies. As of the date of this filing, we have not received consideration for its redemption of our equity investment in Pillarstone OP as required by the partnership agreement. We have filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP.

 

(3)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

The table below presents our share of net loss from our investment in the real estate partnership which is included in deficit in earnings of real estate partnership, net on our consolidated statements of operations and comprehensive income (loss) (in thousands):

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Pillarstone OP		$	—			$	(375	)		$	(28	)		$	(1,627	)

 

Summarized financial information for our investment in real estate partnership is as follows (in thousands):

 

		September 30, 2024				December 31, 2023
Assets:
Real estate, net		$	—			$	47,115
Other assets			—				6,680
Total assets(1)			—				53,795
Liabilities and equity:
Notes payable			—				14,292
Other liabilities			—				4,040
Equity			—				35,463
Total liabilities and equity(2)			—				53,795
Company’s share of equity			—				28,885
Cost of investment in excess of the Company’s share of underlying net book value			—				2,786
Carrying value of investment in real estate partnership(3)		$	—			$	31,671

 

(1)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated total assets and its components based on the information available to us at the time of this report.

 

(2)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated total liabilities and equity and its components based on the information available to us at the time of this report.

 

(3)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				01/01/2024-01/25/2024 (2)				2023
Revenues		$	—			$	2,152			$	591			$	6,307
Operating expenses			—				(2,372	)			(559	)			(7,584	)
Other expenses			—				(207	)			(56	)			(621	)
Net loss		$	—			$	(427	)		$	(24	)		$	(1,898	)

 

(1)

We rely on reporting provided to us by Pillarstone OP's general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements for the three and nine months ended September 30, 2024 and 2023 have not been made available to us, we have estimated net loss and its components based on the information available to us at the time of this report.

 

(2)	The estimated net loss and its components are calculated through January 25, 2024, the redemption date.

 

The amortization of the basis difference between the cost of investment and our share of underlying net book value for the three months ended  September 30, 2024 and 2023 is $0 and $27,000 respectively, and for the nine months ended September 30, 2024 and 2023 is $7,000 and $81,000. We fully amortized the difference into deficit in earnings of real estate partnership on the consolidated statements of operations and comprehensive income (loss).

 

The Company has evaluated its guarantee to Pillarstone OP pursuant to ASC 460, “Guarantees,” and has determined the guarantee to be a performance guarantee, for which ASC 460 contains initial recognition and measurement requirements, and related disclosure requirements. The Company is obligated in two respects: (i) a noncontingent liability, which represents the Company’s obligation to stand ready to perform under the terms of the guarantee in the event that the specified triggering event(s) occur; and (ii) the contingent liability, which represents the Company’s obligation to make future payments if those triggering events occur. The fair value of our loan guarantee to Pillarstone OP is estimated on a Level 3 basis (as provided by ASC 820), using a probability-weighted discounted cash flow analysis based on a discount rate, discounting the loan balance. The Company recognized a noncontingent liability of $462,000 at the inception of the guarantee at fair value which is recorded on the Company’s consolidated balance sheets, net of accumulated amortization. The Company amortized the guarantee liability into income over seven years. For both three months ended  September 30, 2024 and 2023, the amortization of the guarantee liability was $ 0. For the nine months ended September 30, 2024 and 2023, the amortization of the guarantee liability was $ 0 and $ 18,000, respectively. 

 

Estimates regarding Pillarstone OP's guarantee.  The Company, through its subsidiary Whitestone REIT Operating Partnership, L.P., guaranteed Pillarstone OP’s loan for its Uptown Tower property located in Dallas, Texas, with an aggregate principal amount of $14.4 million as of September 30, 2023.  The loan was also secured by the Uptown Tower property.  The debt matured on October 4, 2023, and was in default, as Pillarstone OP failed to refinance the loan.  On October 24, 2023, the Lender provided notice of a planned foreclosure sale on December 5, 2023.  The Lender also claimed that an additional sum of $4.6 million was due which included default interest of approximately $6.3 million and net credits from escrowed funds and other charges of approximately $1.7 million. 

 

On December 1, 2023, the Company reached an agreement with the Lender that would avoid foreclosure and secure the release of the lien and discharge of the guarantee, and the Company negotiated and satisfied a payoff as of December 4, 2023, in the amount of $13,632,764 (the “DPO Amount”). We paid the DPO amount and will be entitled to assert a subrogation claim against Pillarstone OP. As of September 30, 2024, the DPO amount was recorded as an asset in our financial statement line receivable due from related party.  

 

The DPO Amount included a compromise settlement of approximately $1,688,000 for the disputed default interest and other fees.

 

On December 1, 2023, Pillarstone OP authorized and filed the Chapter 11 bankruptcy of its special purpose entity borrower that owns Uptown Tower (Whitestone Uptown Tower LLC) in the United States Bankruptcy Court for the Northern District of Texas.

 

On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP.

 

On February 9, 2024, the Lender filed suit in New York County, New York against the guarantor Whitestone OP and the Company for alleged amounts due under the guarantee. The compromise settlement is our best estimate of the amount due.

 

On March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies. As of the date of this filing, Whitestone has not received consideration for our redemption of our equity investment in Pillarstone OP as required by the partnership agreement. The Company has filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs. 

 

On April 24, 2024, the Lender and Pillarstone OP filed a motion with the Bankruptcy Court seeking approval to settle the dispute and dismiss their mutual lawsuits including the lawsuit by the Lender against the Company as Guarantor of the loan. On or before June 10, 2024, Pillarstone OP agreed to pay to the Lender the sum of $1,123,950.24 plus all attorneys’ fees and costs (not to exceed $20,000.00) incurred by the Lender from April 10, 2024 through the date of receipt of such payment. Upon timely receipt of the cash payment from Pillarstone OP, the Lender applied the $13,632,764 tendered to it by Whitestone REIT Operating Partnership, L.P., and the guaranty was subsequently released. On October 2, 2024, the Bankruptcy Court affirmed the Company’s right of subrogation and allowed the Company’s secured claim for the DPO amount.

 

The Company does not believe a probable loss will be incurred, nor does it anticipate a material adverse effect on its financial position, results of operations, cash flows or liquidity. Therefore, the Company has not recorded a charge as a result of the Pillarstone Bankruptcies.

 

Accounting treatment of the redemption of our OP units in Pillarstone OP.  On January 25, 2024, we executed an irrevocable redemption of substantially all our investment in Pillarstone OP, converting our equity investment into a receivable. Pillarstone OP conveyed their intention to forego issuing equity, opting instead to liquidate the properties to satisfy creditors, with Whitestone being significantly the largest creditor. Based on insights from our legal team and advisors, we anticipate that the most probable outcome will involve the liquidation of all Pillarstone properties. 

 

The carrying value of our investment in Pillarstone OP was approximately $31.6 million as of January 25, 2024. We assert a claim of $70 million, inclusive of the $13 million default interest payment and accrued interest. It is anticipated that the claim and proceeds from liquidation will surpass the carrying value of our receivable for the redemption of our former equity investment in Pillarstone OP.

 

Subsequently, we reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income. We will assess the credit losses of the receivable on a quarterly basis.

 

Any gains will be recognized once the proceeds received exceed our receivable.

 

This is within the scope of ASC 326, “Financial Instruments - Credit Losses.” The value of the unencumbered assets of Pillarstone OP is significantly in excess of Whitestone’s basis in the account receivable, but the precise value cannot be determined at this time. When applying the estimated loss rate method with a zero loss rate, the Current Expected Credit Losses (“CECL”) are zero according to ASC 326.  We will continue to monitor our legal team's assessment of the bankruptcy case and the value of the assets of Pillarstone OP to evaluate the credit risk of the receivable.

 

 

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

 

7. DEBT

 

Certain subsidiaries of Whitestone are the borrowers under various financing arrangements. These subsidiaries are separate legal entities, and their respective assets and credit are not available to satisfy the debt of Whitestone or any of its other subsidiaries.

 

Debt consisted of the following as of the dates indicated (in thousands):

 

Description		September 30, 2024				December 31, 2023
Fixed rate notes
$265.0 million, 3.18% plus 1.45% to 2.10% Note, due January 31, 2028 (1)		$	265,000			$	265,000
$80.0 million, 3.72% Note, due June 1, 2027			80,000				80,000
$19.0 million 4.15% Note, due December 1, 2024			17,383				17,658
$14.0 million 4.34% Note, due September 11, 2024			—				12,427
$14.3 million 4.34% Note, due September 11, 2024			—				13,257
$15.1 million 4.99% Note, due January 6, 2024			—				13,350
$50.0 million, 5.09% Note, due March 22, 2029 (Series A)			35,714				42,857
$50.0 million, 5.17% Note, due March 22, 2029 (Series B)			50,000				50,000
$2.5 million 7.79% Note, due February 28, 2025			1,133				—
$50.0 million, 3.71% plus 1.50% to 2.10% Note, due September 16, 2026 (2)			50,000				50,000
$56.3 million, 6.23% Note, due July 31, 2031			56,340				—
Floating rate notes
Unsecured line of credit, SOFR plus 1.50% to 2.10%, due September 16, 2026			79,000				96,000
Total notes payable principal			634,570				640,549
Less deferred financing costs, net of accumulated amortization			(1,018	)			(377	)
Total notes payable		$	633,552			$	640,172

 

(1)

Promissory note includes an interest rate swap that fixes the Secured Overnight Financing Rate (“SOFR”) portion of the term loan at an interest rate of 2.16% through October 28, 2022, 2.76% from October 29, 2022 through January 31, 2024, and 3.32% beginning February 1, 2024 through January 31, 2028.

 

(2)	A portion of the unsecured line of credit includes an interest rate swap to fix the SOFR portion of the loan at 3.71%.

 

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

On June 21, 2024, Whitestone REIT, operating through its subsidiaries Whitestone Strand LLC, Whitestone Las Colinas Village LLC, and Whitestone Seville, LLC (collectively, the “Borrower”), entered into a loan agreement (the “Loan Agreement”) with Nationwide Life Insurance Company (the “Lender”) for a mortgage loan in the principal amount of $56,340,000 (the “Loan”).

 

The Loan provides for a fixed interest rate of 6.23% per annum. Payments commence on August 1, 2024, and are due on the first day of each calendar month thereafter through July 1, 2031, with interest-only payments for the first 36 months. Monthly payments consist of principal and interest based on a 30-year amortization schedule beginning on August 1, 2027. The Loan may be prepaid in full but not in part, provided that, as conditions precedent, Borrower: (i) gives Lender not less than fifteen (15) days prior notice of Borrower’s intention to prepay the Loan; (ii) pays to Lender the prepayment premium as set forth in the Loan Agreement, if any, then due and payable to Lender; and (iii) pays to Lender all other amounts then due under the loan documents. No prepayment premium is required for prepayments in full made on or after six months prior to the maturity date.

 

The Loan is a non-recourse loan secured by three of the Company’s properties including their related equipment, fixtures, personal property, and other assets, and a limited carve-out guarantee by the Company’s operating partnership.

 

The loan documents contain customary terms and conditions, including without limitation affirmative and negative covenants such as information reporting and insurance requirements. The loan documents also contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants, and bankruptcy or other insolvency events. Upon the occurrence of an event of default, the Lender is entitled to accelerate all obligations of the Borrower. The Lender will also be entitled to receive the entire unpaid principal balance at a default rate.

 

The Loan proceeds will be used to pay down the Borrower’s existing floating rate indebtedness.

 

On March 22, 2019, we, through our Operating Partnership, entered into a Note Purchase and Guarantee Agreement (as amended from time to time, the “Note Agreement”) together with certain subsidiary guarantors as initial guarantor parties thereto (the “Subsidiary Guarantors”) and The Prudential Insurance Company of America and the various other purchasers named therein (collectively, the “Purchasers”) providing for the issuance and sale of $100 million of senior unsecured notes of the Operating Partnership, of which (i) $50 million are designated as 5.09% Series A Senior Notes due March 22, 2029 (the “Series A Notes”) and (ii) $50 million are designated as 5.17% Series B Senior Notes due March 22, 2029 (the “Series B Notes” and, together with the Series A Notes, the “Notes”) pursuant to a private placement that closed on March 22, 2019 (the “Private Placement”). Obligations under the Notes are unconditionally guaranteed by the Company and by the Subsidiary Guarantors.

 

On December 16, 2022, we through our Operating Partnership, amended the Note Agreement, pursuant to the terms and conditions of that certain Amendment No. 1 to Note Purchase and Guaranty Agreement, by and among the Company and the Operating Partnership, together with certain subsidiary guarantors as initial guarantor parties thereto and The Prudential Insurance Company of America and the various other purchasers named therein, for the purpose of conforming certain covenants and defined terms contained in the Note Agreement with the 2022 Facility (defined below).

 

The principal of the Series A Notes began to amortize on March 22, 2023 with annual principal payments of approximately $7.1 million. The principal of the Series B Notes will begin to amortize on March 22, 2025 with annual principal payments of $10.0 million. The Notes will pay interest quarterly on the 22nd day of March, June, September and December in each year until maturity.

 

The Operating Partnership may prepay at any time all, or from time to time part of, the Notes, in an amount not less than $1,000,000 in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus a make-whole amount. The make-whole amount is equal to the excess, if any, of the discounted value of the remaining scheduled payments with respect to the Notes being prepaid over the aggregate principal amount of such Notes (as described in the Note Agreement). In addition, in connection with a Change of Control (as defined in the Note Agreement), the Operating Partnership is required to offer to prepay the Notes at 100% of the principal amount plus accrued and unpaid interest thereon.

 

The Note Agreement contains representations, warranties, covenants, terms and conditions customary for transactions of this type and substantially similar to the Operating Partnership’s existing senior revolving credit facility, including limitations on liens, incurrence of investments, acquisitions, loans and advances and restrictions on dividends and certain other restricted payments. In addition, the Note Agreement contains certain financial covenants substantially similar to the Operating Partnership’s existing senior revolving credit facility, including the following:

 

•

maximum total indebtedness to total asset value ratio of 0.60 to 1.00;

 

•

maximum secured debt to total asset value ratio of 0.40 to 1.00;

 

•

minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00;

 

•

maximum secured recourse debt to total asset value ratio of 0.15 to 1.00;

 

•

maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortization) of 75% of the Company's total net worth as of December 31, 2021 plus 75% of the net proceeds from additional equity offerings (as defined therein); and

 

•

minimum adjusted property NOI to implied unencumbered debt service ratio of 1.50 to 1.00.

 

In addition, the Note Agreement contains a financial covenant requiring that maximum unsecured indebtedness not exceed the ratio of unsecured indebtedness to unencumbered asset pool of 0.60 to 1.00. That covenant is substantially similar to the borrowing base concept contained in the Operating Partnership’s existing senior revolving credit facility.

 

The Note Agreement also contains default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-performance of covenants, cross-defaults with other indebtedness and guarantor defaults. The occurrence of an event of default under the Note Agreement could result in the Purchasers accelerating the payment of all obligations under the Notes. The financial and restrictive covenants and default provisions in the Note Agreement are substantially similar to those contained in the Operating Partnership’s existing credit facility.

 

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

Net proceeds from the Private Placement were used to refinance existing indebtedness. The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Notes were sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.

 

On September 16, 2022, we, through our Operating Partnership, entered into an unsecured credit facility (the “2022 Facility”) pursuant to that certain Third Amended and Restated Credit Agreement, by and among the Operating Partnership, the Company and certain subsidiaries of the Company, as guarantors signatory thereto, the lenders party thereto, Bank of Montreal, as administrative agent (the “Administrative Agent”), Truist Bank, as syndication agent, and BMO Capital Markets Corp., Truist Bank, Capital One, National Association, and U.S. Bank National Association, as co-lead arrangers and joint book runners (as amended from time to time, the “Credit Agreement”). The 2022 Facility replaced the Company’s previous unsecured revolving credit facility, dated January 31, 2019 (the “2019 Facility”). 

 

On October 7, 2024, we, through our Operating Partnership, entered into the First Amendment to Third Amended and Restated Credit Agreement and Incremental Term Loan Joinder (the “Amendment”) among the Operating Partnership, the Company and certain subsidiaries of the Company, as guarantors signatory thereto, the Administrative Agent, and L/C Issuer and Associated Bank, National Association, which amends the Credit Agreement.

 

The Amendment, among other things, establishes the Series One Incremental Term Loan (defined below) consistent with the existing Term Loan (defined below). The Series One Incremental Term Loan accrues interest (at the Operating Partnership’s option) at a Base Rate (defined below) or Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin based upon the Operating Partnership’s then existing total leverage and is subject to adjustment as set forth in the Credit Agreement. In addition, the Operating Partnership entered into an interest rate swap to fix the interest rate on the Series One Incremental Term Loan at 3.665% plus bank credit spreads (that are currently 1.5%, through January 31, 2028), or an all-in rate of 5.165%.

 

The 2022 Facility is comprised of the following three tranches of indebtedness:

 

•

$250.0 million unsecured revolving credit facility with a maturity date of September 16, 2026 (the “2022 Revolver”);

 

•

$265.0 million unsecured term loan with a maturity date of January 31, 2028 (the “Term Loan”);

 

•

$20 million unsecured term loan with a maturity date of January 31, 2028 (the “Series One Incremental Term Loan”), effective October 7, 2024.

 

Borrowings under the 2022 Facility accrue interest (at the Operating Partnership’s option) at a Base Rate or an Adjusted Term SOFR plus an applicable margin based upon our then existing total leverage. “Base Rate” means, for any day, the higher of: (a) the Administrative Agent’s prime commercial rate, (b) the sum of (i) the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York for such day, plus (ii) 0.50%, or (c) the sum of (i) Adjusted Term SOFR for a one-month tenor in effect on such day plus (ii) 1.10%.

 

As of September 30, 2024, the interest rate on the 2022 Revolver was 6.80%. Based on our current leverage ratio, the revolver has an interest rate of Adjusted Term SOFR plus 1.45%. In addition, we entered into interest rate swaps to fix the interest rates on the Term Loan. The Term Loan with the swaps has the following interest rates:

 

•

2.16% plus spreads ranging from 1.35% to 2%, through October 28, 2022

 

•

2.80% plus spreads ranging from 1.35% to 2%, from October 29, 2022 through January 31, 2024

 

•

3.42% plus spreads ranging from 1.35% to 2%, from February 1, 2024 through January 31, 2028

 

As of September 30, 2024, the Term Loan with the swaps had a spread of 1.40%.

 

The Credit Agreement also has a pricing provision where the applicable margin can be adjusted by an aggregate 0.02% per annum based on the Company’s performance on certain sustainability performance targets. 

 

The 2022 Facility includes an accordion feature that allows the Operating Partnership to increase the borrowing capacity by an aggregate amount equal to $200.0 million, upon the satisfaction of certain conditions. As of September 30, 2024, subject to any potential future paydowns or increases in the borrowing base, we have $121.0 million remaining availability under the 2022 Revolver. As of September 30, 2024, $394.0 million was drawn on the 2022 Facility and our unused borrowing capacity was $121.0 million, assuming that we use the proceeds of the 2022 Facility to acquire properties, or to repay debt on properties, that are eligible to be included in the unsecured borrowing base. 

 

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

The Company, each direct and indirect material subsidiary of the Operating Partnership and any other subsidiary of the Operating Partnership that is a guarantor under any unsecured ratable debt will serve as a guarantor for funds borrowed by the Operating Partnership under the 2022 Facility. The Credit Agreement contains customary terms and conditions, including, without limitation, customary representations and warranties and affirmative and negative covenants including, without limitation, information reporting requirements, limitations on investments, acquisitions, loans and advances, mergers, consolidations and sales, incurrence of liens, dividends and restricted payments. In addition, the Credit Agreement contains certain financial covenants including the following:

 

•

maximum total indebtedness to total asset value ratio of 0.60 to 1.00;

 

•

maximum secured debt to total asset value ratio of 0.40 to 1.00;

 

•

minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00;

 

•

maximum secured recourse debt to total asset value ratio of 0.15 to 1.00;

 

•

maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortization) of $449 million plus 75% of the net proceeds from additional equity offerings (as defined therein);

 

•

minimum adjusted property net operating income to implied unencumbered debt service of 1.50 to 1.00; and

 

•

maximum unsecured indebtedness to unencumbered asset pool value ratio of 0.60 to 1.00.

 

 

As of September 30, 2024, our $153.72 million in secured debt was collateralized by five properties with a carrying value of $242.7 million.  Our loans contain restrictions that would require the payment of prepayment penalties for the acceleration of outstanding debt and are secured by deeds of trust on certain of our properties and by assignment of the rents and leases associated with those properties. As of September 30, 2024, we were in compliance with all loan covenants.

 

Scheduled maturities of our outstanding debt as of September 30, 2024 were as follows (in thousands): 

 

Year		Amount Due
2024 (remaining)		$	18,062
2025			17,596
2026			146,143
2027			97,414
2028			282,823
Thereafter			72,532
Total		$	634,570

 

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

 

8.  DERIVATIVES AND HEDGING ACTIVITIES

 

The fair value of our interest rate swaps is as follows (in thousands):

 

		September 30, 2024
Balance Sheet Location		Estimated Fair Value
Accounts payable and accrued expenses		$	(682	)

 

 

		December 31, 2023
Balance Sheet Location		Estimated Fair Value
Prepaid expenses and other assets		$	2,613

 

On March 31, 2023, we, through our Operating Partnership, entered into an interest rate swap of $50 million (“Revolver Swap”) with Bank of Montreal that fixed the unhedged SOFR portion of the variable rate debt at 3.71%. Pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned $10.0 million of the swap to U.S. Bank, $10.0 million of the swap to Capital One, $12.5 million of the swap to SunTrust Bank, and $2.5 million of the swap to Associated Bank. The swap began on March 31, 2023 and will mature on September 16, 2026. We designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The Company does not expect any amount of the existing gains or losses to be reclassified into earnings within the next 12 months.

 

On  September 16, 2022, we, through our Operating Partnership, entered an interest rate swap with Bank of Montreal that fixed the unhedged SOFR portion of Term Loan under the 2022 Facility at 3.32%. The notional amount of the swap begins at $100 million on  October 29, 2022, and increases to $265 million on  February 1, 2024, maturing on  January 31, 2028. Pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned beginning and ending notionals of $20.7 million and $54.8 million of the swap, respectively, to U.S. Bank, National Association, beginning and ending notionals of $25.4 million and $67.2 million of the swap, respectively, to Truist Bank, beginning and ending notionals of $20.7 million and $54.8 million of the swap, respectively, to Capital One, National Association, and beginning and ending notionals of $5.9 million and $15.7 million of the swap, respectively, to Associated Bank. See Note 7 (Debt) for additional information regarding the 2022 Facility. We designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The Company does not expect any amount of the existing gains or losses to be reclassified into earnings within the next 12 months.

 

On  January 31, 2019, we, through our Operating Partnership, entered into an interest rate swap of $165 million with Bank of Montreal that fixed the LIBOR portion of our $165 million term loan under the 2019 Facility at 2.43%. Pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned $32.6 million of the swap to U.S. Bank, National Association, $29.4 million of the swap to Regions Bank, $40.0 million of the swap to SunTrust Bank, and $15.0 million of the swap to Associated Bank. Effective September 7, 2022, Regions Bank novated $29.4 million of the swap to Bank of Montreal.  See Note 7 (Debt) for additional information regarding the 2019 Facility. The swap began on  February 8, 2021 and matured on  January 31, 2024. Effective September 16, 2022, our contracts indexed to LIBOR were converted to SOFR. We designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value to be recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. 

  

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

A summary of our interest rate swap activity is as follows (in thousands):

 

		Amount Recognized as Comprehensive Income (Loss)			Location of Income Recognized in Earnings		Amount of Income Recognized in Earnings (1)
Three Months Ended September 30, 2024		$	(8,946	)	Interest expense		$	1,556
Three Months Ended September 30, 2023		$	4,094		Interest expense		$	1,929
Nine Months Ended September 30, 2024		$	(3,296	)	Interest expense		$	4,804
Nine Months Ended September 30, 2023		$	6,602		Interest expense		$	4,833

 

(1)	There was no ineffective portion of our interest rate swaps to recognize in earnings for the three and nine months ended September 30, 2024 and 2023.

 

 

9.  EARNINGS PER SHARE

 

Basic earnings per share for our common shareholders is calculated by dividing net income excluding the net income attributable to unvested restricted common shares and the net income attributable to noncontrolling interests, by our weighted average common shares outstanding during the period.  Diluted earnings per share is computed by dividing the net income attributable to common shareholders, excluding the net income attributable to unvested restricted common shares and the net income attributable to noncontrolling interests, by the weighted average number of common shares including any dilutive unvested restricted common shares.

 

Certain of our performance-based restricted common shares are considered participating securities that require the use of the two-class method for the computation of basic and diluted earnings per share.  During the three months ended September 30, 2024 and 2023, 649,200 and 693,595 OP units, respectively, were excluded from the calculation of diluted earnings per share because their effect would be anti-dilutive, and during the nine months ended September 30, 2024 and 2023, 653,990 and 694,054 OP units, respectively, were excluded from the calculation of diluted earnings per share because their effect would be anti-dilutive

 

 

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per share data)		2024				2023				2024				2023
Numerator:
Net income		$	7,723			$	2,521			$	19,813			$	17,887
Less: Net income attributable to noncontrolling interests			(99	)			(35	)			(257	)			(248	)
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares		$	7,624			$	2,486			$	19,556			$	17,639
Denominator:
Weighted average number of common shares - basic			50,297				49,534				50,067				49,472
Effect of dilutive securities:
Unvested restricted shares			1,008				1,103				1,039				927
Weighted average number of common shares - dilutive			51,305				50,637				51,106				50,399
Earnings Per Share:
Basic:
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares		$	0.15			$	0.05			$	0.39			$	0.36
Diluted:
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares		$	0.15			$	0.05			$	0.38			$	0.35

 

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WHITESTONE REIT AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

 

10. INCOME TAXES 

 

With the exception of our taxable REIT subsidiaries, federal income taxes are generally not provided because we intend to and believe we continue to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), and because we have distributed and intend to continue to distribute all of our taxable income to our shareholders.  As a REIT, we must distribute at least 90% of our REIT taxable income to our shareholders and meet certain income sources and investment restriction requirements.  In addition, REITs are subject to a number of organizational and operational requirements.  If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate tax rates.

 

We are subject to the Texas Margin Tax, which is computed by applying the applicable tax rate (0.75% for us) to the profit margin, which generally will be determined for us as total revenue less a 30% standard deduction.  Although the Texas Margin Tax is not an income tax, FASB ASC 740, “Income Taxes” applies to the Texas Margin Tax.  For the three months ended September 30, 2024 and 2023, we recognized approximately $ 117,000 and $ 95,000, respectively, in margin tax provision, and for the nine months ended September 30, 2024 and 2023, we recognized approximately $ 348,000 and $ 339,000, respectively.  

 

 

11.  EQUITY 

 

Common Shares         

 

Under our declaration of trust, as amended, we have authority to issue up to 400,000,000 common shares of beneficial interest, $0.001 par value per share, and up to 50,000,000 preferred shares of beneficial interest, $0.001 par value per share.

 

Equity Offerings 

 

On May 20, 2022, our universal shelf registration statement on Form S-3 (File No. 333-264881) was declared effective by the SEC (the “Registration Statement”), which registers the issuance and sale by us of up to $500 million in securities from time to time, including common shares, preferred shares, debt securities, depositary shares and subscription rights.

 

On September 9, 2022, we entered into eleven equity distribution agreements with certain sales agents names therein for an at-the-market equity distribution program (the “2022 equity distribution agreements”) providing for the issuance and sale of up to an aggregate of $100 million of the Company’s common shares pursuant to our Registration Statement. Actual sales will depend on a variety of factors determined by us from time to time, including (among others) market conditions, the trading price of our common shares, capital needs and our determinations of the appropriate sources of funding for us, and will be made in transactions that will be deemed to be “at-the-market” offerings as defined in Rule 415 under the Securities Act. We have no obligation to sell any of our common shares and can at any time suspend offers under the 2022 equity distribution agreements or terminate the 2022 equity distribution agreements.

 

For both three and nine months ended September 30, 2024, we sold 579,964 common shares under the 2022 equity distribution agreement, with net proceeds to us of approximately $7.6 million. In connection with such sales, we paid compensation of approximately $116,000 to the sales agents. For both three and nine months ended September 2023, we did not sell shares under the 2022 equity distribution agreements. 

 

Operating Partnership Units 

 

Substantially all of our business is conducted through our Operating Partnership.  We are the sole general partner of the Operating Partnership.  As of September 30, 2024, we owned a 98.7% interest in the Operating Partnership.

 

Limited partners in the Operating Partnership holding OP units have the right to redeem their OP units for cash or, at our option, common shares at a ratio of one OP unit for one common share.  Distributions to OP unit holders are paid at the same rate per unit as distributions per share to holders of Whitestone common shares.  As of September 30, 2024 and December 31, 2023, there were 51,174,240 and 50,182,938 OP units outstanding, respectively.  We owned 50,525,040 and 49,489,991 OP units as of September 30, 2024 and December 31, 2023, respectively. The balance of the OP units is owned by third parties, including certain members of our Board of Trustees.  Our weighted average share ownership in the Operating Partnership was approximately 98.7% and 98.6% for the three months ended September 30, 2024 and 2023, respectively, and approximately 98.7% and 98.6% for the nine months ended September 30, 2024 and 2023, respectively. During the three months ended  September 30, 2024 and 2023, 0 and 548 OP units, respectively, were redeemed for an equal number of common shares, and during the nine months ended September 30, 2024 and 2023, 43,747 and 1,423 OP units, respectively, were redeemed for an equal number of common shares.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

Distributions 

 

The following table summarizes the cash distributions paid or payable to holders of common shares and to holders of noncontrolling OP units during each quarter of 2023 and the nine months ended September 30, 2024 (in thousands, except per share/per OP unit data):

 

		Common Shares								Noncontrolling OP Unit Holders								Total
Quarter Paid		Distributions Per Common Share				Amount Paid				Distributions Per OP Unit				Amount Paid				Amount Paid
2024
Third Quarter		$	0.1238			$	6,194			$	0.1238			$	80			$	6,274
Second Quarter			0.1238				6,162				0.1238				80				6,242
First Quarter			0.1200				5,969				0.1200				80				6,049
Total		$	0.3676			$	18,325			$	0.3676			$	240			$	18,565
2023
Fourth Quarter		$	0.1200			$	5,930			$	0.1200			$	83			$	6,013
Third Quarter			0.1200				5,928				0.1200				83				6,011
Second Quarter			0.1200				5,913				0.1200				83				5,996
First Quarter			0.1200				5,913				0.1200				83				5,996
Total		$	0.4800			$	23,684			$	0.4800			$	332			$	24,016

  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

 

12.  INCENTIVE SHARE PLAN

 

 The Company’s 2008 Long-Term Equity Incentive Plan (as amended, the “2008 Plan”) expired in July 2018. At the Company’s annual meeting of shareholders on May 11, 2017, our shareholders voted to approve the 2018 Long-Term Equity Incentive Ownership Plan (the “2018 Plan”). The 2018 Plan provides for the issuance of up to 3,433,831 common shares and OP units pursuant to awards under the 2018 Plan. The 2018 Plan became effective on July 30, 2018, which is the day after the 2008 Plan expired.

 

The Compensation Committee administered the 2008 Plan and administers the 2018 Plan except, in each case, with respect to awards to non-employee trustees, for which the 2008 Plan was and the 2018 Plan is administered by the Board of Trustees. The Compensation Committee is authorized to grant share options, including both incentive share options and non-qualified share options, as well as share appreciation rights, either with or without a related option. The Compensation Committee is also authorized to grant restricted common shares, restricted common share units, performance awards and other share-based awards. On September 6, 2017, the Compensation Committee approved the grant of an aggregate of 965,000 performance-based restricted common share units under the 2008 Plan. These units, which only vest immediately prior to the consummation of a Change in Control (as defined in the 2008 Plan) occurring on or before September 30, 2024 (the “CIC Units”), were granted to certain of our employees. Since the Change in Control did not occur on or before September 30, 2024, all 455,000 CIC Units have been forfeited.           

 

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September 30, 2024

(Unaudited)

   

On June 30, 2021, the Compensation Committee approved the grant of an aggregate of 433,200 TSR Units and 433,200 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $4.17 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2021 grant date to the end of the performance period, December 31, 2023. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $7.51 and vest annually in three equal installments. The 433,200 TSR Units granted on June 30, 2021 include 111,465 TSR Units that will be converted into the right to receive cash in the amount of the fair market value of the common shares to the extent that common shares are not available for issuance under the 2018 Plan. On  January 1, 2024, the remaining unvested 210,400 TSR units that were granted on  June 30, 2021 vested at 200% achievement into 420,800 common shares. 

 

On September 30, 2021, the Compensation Committee approved the grant of an aggregate of 5,500 time-based restricted common share units under the 2018 Plan to certain of our employees. The time-based common share units had a grant date fair value of $9.06 each and vest annually in three equal installments.

 

On March 28, 2022, the Compensation Committee approved the grant of an aggregate of 162,556 TSR Units and 162,556 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $13.74 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2022 grant date to the end of the performance period, December 31, 2024. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $9.94 and vest annually in three equal installments.

 

On March 7, 2023, the Compensation Committee approved the grant of an aggregate of 228,025 TSR Units and 228,025 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $9.55 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2023 grant date to the end of the performance period, December 31, 2025. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $8.72 and vest annually in three equal installments.

 

On March 4, 2024, the Compensation Committee approved the grant of an aggregate of 203,518 TSR Units and 169,065 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $15.12 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2024 grant date to the end of the performance period, December 31, 2026. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $12.29 and vest annually in three equal installments.

 

 

A summary of the share-based incentive plan activity as of and for the nine months ended September 30, 2024 is as follows: 

 

						Weighted Average
						Grant Date
		Shares				Fair Value
Non-vested at January 1, 2023			1,452,433			$	10.12
Granted			372,583				13.84
Vested			(404,171	)			6.30
Forfeited			(475,604	)			12.94
Non-vested at September 30, 2024			945,241				11.80
Available for grant at September 30, 2024			772,581

 

A summary of our non-vested and vested shares activity for the nine months ended September 30, 2024 and years ended December 31, 2023 and 2022 is presented below:

 

		Shares Granted								Shares Vested
		Non-Vested Shares Issued				Weighted Average Grant-Date Fair Value				Vested Shares				Total Vest-Date Fair Value
														(in thousands)
Nine Months Ended September 30, 2024			372,583			$	13.84				(404,171	)		$	2,546
Year Ended December 31, 2023			480,184			$	9.30				(231,600	)		$	1,841
Year Ended December 31, 2022			360,334			$	11.61				(519,003	)		$	3,442

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(Unaudited)

 

Total compensation recognized in earnings for share-based payments was $ 1,281,000 and $ 1,083,000 for the three months ended September 30, 2024 and 2023, respectively, and $ 3,105,000 and $ 2,712,000 for the nine months ended September 30, 2024 and 2023, respectively.

 

Based on our current financial projections, we expect approximately 100% of the unvested awards to vest over the next 33 months. As of September 30, 2024, there was approximately $4.0 million in unrecognized compensation cost related to outstanding non-vested TSR Units, which are expected to vest over a period of 27 months, and approximately $3.4 million in unrecognized compensation cost related to outstanding non-vested time-based shares, which are expected to be recognized over a period of approximately 33 months beginning on October 1, 2024.

 

We expect to record approximately $4.5 million in non-cash share-based compensation expense in 2024 and $6.3 million subsequent to 2024. The unrecognized share-based compensation cost is expected to vest over a weighted average period of 25 months. The dilutive impact of the performance-based shares will be included in the denominator of the earnings per share calculation beginning in the period that the performance conditions are expected to be met. The dilutive impact of the TSR Units is based on the Company’s TSR Peer Group Ranking as of the reporting date and weighted according to the number of days outstanding in the period. As of September 30, 2024, the TSR Peer Group Ranking called for attainment of 200%, 150%, and 0% for the shares issued in 2022, 2023, and 2024, respectively.

 

 

13. GRANTS TO TRUSTEES

 

On  December 20, 2023, five independent trustees and one trustee emeritus were granted a total of 24,134 common shares, which vest immediately and are prorated based on date appointed. The 24,134 common shares granted to our trustees had a grant fair value of $12.44 per share. The fair value of the shares granted during the year ended  December 31, 2023 was determined using quoted prices available on the date of grant.

 

 

14. SEGMENT INFORMATION

 

Historically, our management has not differentiated results of operations by property type or location and, therefore, does not present segment information.

 

 

15. REAL ESTATE

 

Property Acquisitions. 

 

On   April 5, 2024, we acquired Scottsdale Commons, a property that meets our Community Centered Property® strategy, for $22.2 million in cash and net prorations. Scottsdale Commons, a 69,482 square foot property, was 96.6% leased at the time of purchase and is located in Scottsdale, Arizona. The funding for this acquisition was provided by the Company’s credit facility.

 

On   April 1, 2024, we acquired Anderson Arbor Pad, a development parcel that meets our Community Centered Property® strategy, for $0.9 million in cash and net prorations. Anderson Arbor Pad is located in Austin, Texas. The funding for this acquisition was provided by the Company’s credit facility.

 

On February 20, 2024, we acquired Garden Oaks Shopping Center, a property that meets our Community Centered Property® strategy, for $27.2 million in cash and net prorations. Garden Oaks Shopping Center, a 106,858 square foot property, was 95.8% leased at the time of purchase and is located in Houston, Texas. The funding for this acquisition was provided by the Company’s credit facility.

 

On June 12, 2023, we acquired Arcadia Towne Center, a property that meets our Community Centered Property® strategy, for $25.5 million in cash and net prorations. Arcadia Towne Center, a 69,503 square foot property, was 100% leased at the time of purchase and is located in Phoenix, Arizona. The funding for this acquisition was provided by the Company’s credit facility.

 

Property dispositions. 

 

On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million. We recorded a gain on sale of $3.6 million. We have not included Fountain Hills Plaza in discontinued operations as it did not meet the definition of discontinued operations.

 

On March 27, 2024, we completed the sale of Mercado at Scottsdale Ranch, located in Phoenix, Arizona, for $26.5 million. We recorded a gain on sale of $6.6 million. We have not included Mercado at Scottsdale Ranch in discontinued operations as it did not meet the definition of discontinued operations. 

 

On December 20, 2023, we completed the sale of Spoerlein Commons, located in Buffalo Grove, Illinois, for $7.4 million. We recorded a loss on sale of $0.7 million. We have not included Spoerlein in discontinued operations as it did not meet the definition of discontinued operations. 

 

On June 30, 2023, we completed the sale of Westchase, located in Houston, Texas, for $7.8 million. We recorded a gain on sale of $4.6 million. We have not included Westchase in discontinued operations as it did not meet the definition of discontinued operations. 

 

On June 30, 2023, we completed the sale of Sunridge, located in Houston, Texas, for $6.7 million. We recorded a gain on sale of $5.0 million. We have not included Sunridge in discontinued operations as it did not meet the definition of discontinued operations. 

 

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September 30, 2024

(Unaudited)

 

 

16.  RELATED PARTY TRANSACTIONS

 

Former Executives, Trustee, and Their Ownership Interests in Pillarstone REIT. Prior to his employment termination on January 18, 2022, Mr. James C. Mastandrea, the former Chairman and Chief Executive Officer of Whitestone REIT, also served as the Chairman and Chief Executive Officer of Pillarstone REIT and beneficially owns approximately 66.7% of the outstanding equity in Pillarstone REIT (when calculated in accordance with Rule 13d-3(d)(1) under the Exchange Act of 1934, as amended (the “Exchange Act”)). He resigned as a member of the Board of Whitestone REIT on April 18, 2022. Prior to his employment termination on February 9, 2022, Mr. John J. Dee, the Company’s former Chief Operating Officer and Corporate Secretary, also served as the Senior Vice President and Chief Financial Officer of Pillarstone REIT and beneficially owns approximately 20.0% of the outstanding equity in Pillarstone REIT (when calculated in accordance with Rule 13d-3(d)(1) under the Exchange Act). In addition, Mr. Paul T. Lambert, a Trustee of the Company, until expiration of his term on May 12, 2023, also served as a Trustee of Pillarstone REIT.

 

Pillarstone OP. In connection with the Contribution, Whitestone TRS, Inc., a subsidiary of the Company (“Whitestone TRS”), entered into a management agreement with the entities that own the contributed Pillarstone Properties (collectively, the “Management Agreements”). Pursuant to the Management Agreements, Whitestone TRS agreed to provide certain property management, leasing and day-to-day advisory and administrative services. The Management Agreements were terminated on August 18, 2022. 

 

The Company previously accounted for its investment in Pillarstone OP using the equity method. However, subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for the majority of its investment in Pillarstone OP.

 

The following table presents the revenue and expenses with Pillarstone OP included in our consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2024 and 2023 (in thousands):

 

			Three Months Ended September 30,								Nine Months Ended September 30,
	Location of Revenue (Expense)		2024				2023				2024				2023
Rent	Operating and maintenance		$	—			$	—			$	—			$	(15	)
Property management fee income	Management, transaction, and other fees		$	—			$	—			$	—			$	—

 

 

17.  COMMITMENTS AND CONTINGENCIES 

 

Guarantor for Pillarstone OP’s Loan

 

The Company, through its subsidiary Whitestone REIT Operating Partnership, L.P., guaranteed Pillarstone OP’s loan for its Uptown Tower property located in Dallas, Texas, with an aggregate principal amount of $14.4 million as of September 30, 2023. The loan was also secured by the Uptown Tower property. The debt matured on October 4, 2023, and was in default, as Pillarstone OP failed to refinance the loan. On October 24, 2023, the Lender provided notice of a planned foreclosure sale on December 5, 2023.  The Lender also claimed that an additional sum of $4.6 million was due which included default interest of approximately $6.3 million and net credits from escrowed funds and other charges of approximately $1.7 million. 

 

On December 1, 2023, the Company reached an agreement with the Lender that would avoid foreclosure and secure the release of the lien and discharge of the guarantee, and the Company negotiated and satisfied a payoff as of December 4, 2023, in the amount of $13,632,764 (the “DPO Amount”). The DPO Amount included a compromise settlement of approximately $1,688,000 for the disputed default interest and other fees. The Company's share of it was recorded in the 4th quarter of fiscal year 2023 in the financial statement line equity (deficit) in earnings of real estate partnership. Per the agreement, this payment would satisfy the loan. The Company wired the DPO Amount to Lender on December 4, 2023, with accompanying releases as required by Lender, fully satisfying the agreement.

 

On December 1, 2023, Pillarstone OP authorized and filed the Chapter 11 bankruptcy of its special purpose entity borrower that owns Uptown Tower, in the Bankruptcy Court. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. On February 9, 2024, the Lender filed suit in New York County against the guarantor Whitestone OP and the Company for alleged amounts due under the guarantee.  On March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies. 

 

On April 24, 2024, the Lender and Pillarstone OP filed a motion with the Bankruptcy Court seeking approval to settle the dispute and dismiss their mutual lawsuits including the lawsuit by the Lender against the Company as Guarantor of the loan. On or before June 10, 2024, Pillarstone OP agreed to pay to the Lender the sum of $1,123,950.24 plus all attorneys’ fees and costs (not to exceed $20,000.00) incurred by the Lender from April 10, 2024 through the date of receipt of such payment. Upon timely receipt of the cash payment from Pillarstone OP, the Lender applied the $13,632,764 tendered to it by Whitestone REIT Operating Partnership, L.P., and the guaranty was subsequently released. The Company is pursuing collection of the DPO amount from Pillarstone in the Pillarstone Bankruptcies through a subrogation claim against Pillarstone OP. On October 2, 2024, the Bankruptcy Court affirmed the Company’s right of subrogation and allowed the Company’s secured claim for the guaranty payment in the amount of $13,632,764 million.

 

Litigation between the Company and Pillarstone REIT

 

On September 16, 2022, Pillarstone Capital REIT and Pillarstone Capital REIT Operating Partnership, L.P. filed suit against the Company and certain of its subsidiaries (Whitestone TRS, Inc. and Whitestone REIT Operating Partnership, L.P.) along with certain of its executives (Peter Tropoli, Christine Mastandrea,  and David Holeman) in the District Court of Harris County, Texas, alleging claims relating to the limited partnership agreement between Pillarstone Capital REIT and Whitestone REIT Operating Partnership, as well as the termination of Management Agreements between Pillarstone Capital REIT Operating Partnership, L.P. and Whitestone TRS, Inc. On  November 25, 2022, the claims against Peter Tropoli, Christine Mastandrea and David Holeman were dismissed. The claimants seek monetary relief in excess of $1,000,000 in damages and equitable relief. However, the Company denies the claims, has substantial legal and factual defenses against the claims, and intends to vigorously defend against the claims. The Company does not believe a probable loss will be incurred, nor does it anticipate a material adverse effect on its financial position, results of operations, cash flows or liquidity. Therefore, the Company has not recorded a charge as a result of this action.

 

Former COO Litigation

 

On May 9, 2023, the Company’s former COO, John Dee, filed suit against the Company in the District Court of Harris County, Texas, purporting to assert claims for breach of his change-in-control agreement arising from the Company’s termination of its former CEO James Mastandrea for cause, and is seeking monetary relief in excess of $1,000,000 in damages and equitable relief. The Company denies the claims, has substantial legal and factual defenses against the claims, and intends to vigorously defend against the claims. The Company does not believe a probable loss will be incurred, nor does it anticipate a material adverse effect on its financial position, results of operations, cash flows or liquidity. Therefore, the Company has not recorded a charge as a result of this action.

 

Former CEO Litigation

 

On February 23, 2022, the Company’s former CEO, James Mastandrea, filed suit against the Company and certain of its trustees (Nandita Berry, Jeff Jones, Jack Mahaffey, and David Taylor) and officers (David Holeman, Christine Mastandrea, Peter Tropoli) in the District Court of Harris County, Texas, alleging $25 million in damages and equitable relief claims relating to the termination of his employment, including breach of his employment contract, negligence, tortious interference with contract, civil conspiracy, and declaratory judgment. On September 12, 2022, the claim for breach of fiduciary duty was dismissed and a claim for negligence was added (as to the trustee defendants). 

 

On December 6, 2023, the District Court of Harris County, Texas granted summary judgement and dismissed all claims against the Company related to the termination of Mr. Mastandrea.  The court also dismissed all claims against certain of the Company’s trustees and officers. The dismissal is subject to appeal. The Company’s counter-claims against Mr. Mastandrea for breach of fiduciary duty, theft, and conversion of company property remain.

 

 

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September 30, 2024

(Unaudited)

 

Pillarstone Rights Plan

 

On  December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent Whitestone OP from exercising its contractual Redemption Right, on  July 12, 2022, Whitestone OP filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement.

 

On  September 8, 2022, Whitestone OP’s Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that Whitestone’s right of redemption is not impaired while the underlying dispute is being considered by the Court. 

 

On  January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted Whitestone OP from exercising the unfettered contractual redemption right it obtained in connection with its investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed Whitestone OP to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, would later enter a monetary judgment against Pillarstone for the difference between the amount Whitestone would have received in or around  December 2021 and the current value.

 

On  January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP.

 

On  March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies.

 

As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. The Company has filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP.

 

We are subject to various legal proceedings and claims that arise in the ordinary course of business.  These matters are generally covered by insurance.  While the resolution of these matters cannot be predicted with certainty, management believes the final outcome of such matters will not have a material adverse effect on our financial position, results of operations, cash flows or liquidity.

  

 

 

 

18.  SUBSEQUENT EVENTS

 

On October 7, 2024, we, through our Operating Partnership, entered into the Amendment, which among other things, establishes the Series One Incremental Term Loan consistent with the existing Term Loan. The Series One Incremental Term Loan accrues interest (at the Operating Partnership’s option) at a Base Rate or Adjusted Term SOFR plus an applicable margin based upon the Operating Partnership’s then existing leverage and is subject to adjustment as set forth in the Credit Agreement. In addition, the Operating Partnership entered into an interest rate swap to fix the interest rate on the Series One Incremental Term Loan at 3.665% plus bank credit spreads (that are currently 1.5%, through January 31, 2028), or an all-in rate of 5.165%. See Note 7 (Debt) for additional information regarding the Amendment and the 2022 Facility.

 

The proceeds of the Series One Incremental Term Loan were used to pay down a portion of the Operating Partnership’s outstanding Revolving Loan (as defined in the Credit Agreement) borrowings.

 

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations. 

 

You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited consolidated financial statements and the notes thereto included in this Quarterly Report on Form 10-Q (this “Report”), and the consolidated financial statements and the notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2023.  For more detailed information regarding the basis of presentation for the following information, you should read the notes to the unaudited consolidated financial statements included in this Report.

 

Forward-Looking Statements

 

This Report contains forward-looking statements within the meaning of the federal securities laws, including discussion and analysis of our financial condition, pending acquisitions and the impact of such acquisitions on our financial condition and results of operations, anticipated capital expenditures required to complete projects, amounts of anticipated cash distributions to our shareholders in the future and other matters.  These forward-looking statements are not historical facts but are the intent, belief or current expectations of our management based on its knowledge and understanding of our business and industry.  Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “potential,” “predicts,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” or the negative of such terms and variations of these words and similar expressions, although not all forward-looking statements include these words.  These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

 

Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false.  You are cautioned not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date of this Report.  We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

 

Factors that could cause actual results to differ materially from any forward-looking statements made in this Report include:

 

•

the imposition of federal income taxes if we fail to qualify as a real estate investment trust (“REIT”) in any taxable year or forego an opportunity to ensure REIT status;

•

uncertainties related to the national economy and the real estate industry, both in general and in our specific markets;

•

legislative or regulatory changes, including changes to laws governing REITs;

•

adverse economic or real estate developments or conditions in Texas or Arizona, Houston, Dallas, and Phoenix in particular, including the potential impact of public health emergencies on our tenants’ ability to pay their rent, which could result in bad debt allowances or straight-line rent reserve adjustments;

•

our current geographic concentration in the Houston, Dallas, and Phoenix metropolitan area markets makes us susceptible to potential local economic downturns;

•

increases in interest rates, including as a result of inflation, which may increase our operating costs or general and administrative expenses;

•

natural disasters, such as floods and hurricanes, which may increase as a result of climate change may adversely affect our returns and adversely impact our existing and prospective tenants;

•

increasing focus by stakeholders on environmental, social and governance matters;

•

financial institution disruptions;

•

availability and terms of capital and financing, both to fund our operations and to refinance our indebtedness as it matures;

•

decreases in rental rates or increases in vacancy rates;

•

harm to our reputation, ability to do business and results of operations as a result of improper conduct by our employees, agents or business partners;

•

litigation risks;

•

lease-up risks, including leasing risks arising from exclusivity and consent provisions in leases with significant tenants;

•

our inability to renew tenant leases or obtain new tenant leases upon the expiration of existing leases;

•

risks related to generative artificial intelligence tools and language models, along with the potential interpretations and conclusions they might make regarding our business and prospects, particularly concerning the spread of misinformation;

•

our inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws;

•

geopolitical conflicts, such as the ongoing conflict between Russia and Ukraine, the conflict in the Gaza Strip and unrest in the Middle East;

•

the need to fund tenant improvements or other capital expenditures out of our operating cash flow;

•

the risk that we are unable to raise capital for working capital, acquisitions or other uses on attractive terms or at all; and

•

the ultimate amount we will collect in connection with the redemption of our equity investment in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP.”)

 

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The forward-looking statements should be read in light of these factors and the factors identified in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023, as previously filed with the Securities and Exchange Commission (“SEC”).

 

Overview 

 

We are a fully-integrated real estate company that owns and operates commercial properties in culturally diverse markets in major metropolitan areas. Founded in 1998, we are internally managed with a portfolio of commercial properties in Texas and Arizona.

 

In October 2006, we adopted a strategic plan to acquire, redevelop, own and operate Community Centered Properties®.  We define Community Centered Properties® as visibly located properties in established or developing culturally diverse neighborhoods in our target markets. We market, lease and manage our centers to match tenants with the shared needs of the surrounding neighborhood.  Those needs may include specialty retail, grocery, restaurants and medical, educational and financial services.  Our goal is for each property to become a Whitestone-branded retail community that serves a neighboring five-mile radius around our property.  We employ and develop a diverse group of associates who understand the needs of our multi-cultural communities and tenants.

 

We serve as the general partner of Whitestone REIT Operating Partnership, L.P. (the “Operating Partnership”), which was formed on December 31, 1998 as a Delaware limited partnership. We currently conduct substantially all of our operations and activities through the Operating Partnership. As the general partner of the Operating Partnership, we have the exclusive power to manage and conduct the business of the Operating Partnership, subject to certain customary exceptions.

 

As of September 30, 2024, we wholly owned 55 commercial properties consisting of:

 

Consolidated Operating Portfolio

 

•

50 wholly owned properties that meet our Community Centered Properties® strategy containing approximately 4.9 million square feet of gross leasable area (“GLA”) and having a total carrying amount (net of accumulated depreciation) of $977.0 million; and

 

Redevelopment, New Acquisitions Portfolio

 

•

five parcels of land held for future development that meet our Community Centered Properties® strategy having a total carrying value of $22.6 million.

 

Acquired properties are categorized in the new acquisitions portfolio until the earlier of 90% occupancy or 18 months of ownership.

 

As of September 30, 2024, we had an aggregate of 1,466 tenants.  We have a diversified tenant base with our largest tenant comprising only 2.1% of our annualized rental revenues for the nine months ended September 30, 2024.  Lease terms for our properties range from less than one year for smaller tenants to over 15 years for larger tenants.  Our leases include minimum monthly lease payments and generally provide for tenant reimbursements for payment of taxes, insurance and maintenance. We completed 219 new and renewal leases during the nine months ended September 30, 2024, totaling 735,695 square feet and approximately $78.2 million in total lease value.  This compares to 223 new and renewal leases totaling 717,777 square feet and approximately $68.6 million in total lease value during the same period in 2023.

 

We employed 73 full-time employees as of September 30, 2024. As an internally managed REIT, we bear our own expenses of operations, including the salaries, benefits and other compensation of our employees, office expenses, legal, accounting, and investor relations expenses and other overhead costs.

 

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Real Estate Partnership

 

As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest.  On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. As of the date of this filing, we have not received consideration for our redemption of our equity investment in Pillarstone OP as required by the partnership agreement. On March 4, 2024, Pillarstone Capital REIT (“Pillarstone REIT”) authorized and filed a Chapter 11 bankruptcy of itself, Pillarstone OP, and all of its remaining special purpose entities in the United States Bankruptcy Court for the Northern District of Texas (the “Pillarstone Bankruptcies”). We have filed a claim in the Pillarstone Bankruptcies for the value of our redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary, and, while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP.

 

Inflation

 

We anticipate that the majority of our leases will continue to be triple-net leases or otherwise provide that tenants pay for increases in operating expenses and will contain provisions that we believe will mitigate the effect of inflation. In addition, many of our leases are for terms of less than five years, which allows us to adjust rental rates to reflect inflation and other changing market conditions when the leases expire. Consequently, increases due to inflation, as well as ad valorem tax rate increases, generally do not currently have a significant adverse effect upon our operating results.

 

Rising Interest Rates

 

As of September 30, 2024, $79.0 million, or approximately 12% of our outstanding debt, was subject to floating interest rates of Secured Overnight Financing Rate (“SOFR”) plus 1.60% and a 10 basis point credit spread adjustment and not currently subject to a hedge. The impact of a 1% increase or decrease in interest rates on our non-hedged variable rate debt would result in a decrease or increase of annual net income of approximately $0.8 million, respectively.

 

How We Derive Our Revenue

 

Substantially all of our revenue is derived from rents received from leases at our properties. We had total revenues of approximately $38.6 million and $37.1 million for the three months ended September 30, 2024 and 2023, respectively, and $113.4 million and $109.4 million for the nine months ended September 30, 2024 and 2023, respectively.

 

Rental Income 

 

We expect our rental income to increase year-over-year due to the addition of properties and rent increases on renewal leases. The amount of net rental income generated by our properties depends principally on our ability to maintain the occupancy rates of currently leased space and to lease currently available space, newly acquired properties with vacant space, and space available from unscheduled lease terminations. The amount of rental income we generate also depends on our ability to maintain or increase rental rates in our submarkets. During the three months ended September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustments, resulting in a $0.3 million and $0.4 million decrease in revenue, respectively, and during the nine months ended September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustment, resulting in a $1.0 million decrease in revenue during both periods. The three months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The three months ended September 30, 2023 included 17 cash basis tenants, resulting in an increase to rental revenue for straight-line rent adjustment of $0.03 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The nine months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.2 million and a decrease to rental revenue for bad debt adjustments of $0.5 million, and the nine months ended September 30, 2023 included 17 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.5 million.

 

 

 

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Scheduled Lease Expirations

 

We tend to lease space to smaller businesses that desire shorter term leases. As of September 30, 2024, approximately 20% of our GLA was subject to leases that expire prior to December 31, 2025.  Over the last three calendar years, we have renewed expiring leases with respect to approximately 68% of our GLA. We routinely seek to renew leases with our existing tenants prior to their expiration and typically begin discussions with a tenant as early as 24 months prior to the expiration date of the existing lease. Inasmuch as our early renewal program and other leasing and marketing efforts target these expiring leases, we work to re-lease most of that space prior to expiration of the leases. In the markets in which we operate, we obtain and analyze market rental rates through review of third-party publications, which provide market and submarket rental rate data and through inquiry of property owners and property management companies as to rental rates being quoted at properties that are located in close proximity to our properties and we believe display similar physical attributes as our nearby properties. We use this data to negotiate leases with new tenants and renew leases with our existing tenants at rates we believe to be competitive in the markets for our individual properties. Due to the short term nature of our leases, and based upon our analysis of market rental rates, we believe that, in the aggregate, our current leases are at market rates. Market conditions, including new supply of properties and competition, and macroeconomic conditions in our markets and nationally affecting tenant income, such as employment levels, business conditions, interest rates, tax rates, fuel and energy costs and other matters, could adversely impact our renewal rate and/or the rental rates we are able to negotiate. We continue to monitor our tenants’ operating performances as well as overall economic trends to evaluate any future negative impact on our renewal rates and rental rates, which could adversely affect our cash flow and ability to make distributions to our shareholders.

 

Acquisitions

 

We seek to grow our GLA through the acquisition of additional properties, and we are carefully evaluating development and redevelopment activities on a case-by-case basis. We have extensive relationships with community banks, attorneys, title companies, and others in the real estate industry, which we believe enables us to take advantage of these market opportunities and maintain an active acquisition pipeline.

 

Property Acquisitions, Dispositions and Development

 

We seek to acquire commercial properties in high-growth markets. Our acquisition targets are properties that fit our Community Centered Properties® strategy.  We may acquire properties in other high-growth cities in the future. As part of our ongoing commitment to our Community Centered Properties® strategy and in pursuit of expanding our commercial property portfolio in high-growth markets, we have carefully evaluated and identified certain non-core properties for divestment, allowing us to reallocate resources towards acquiring properties that align more closely with our long-term growth objectives.

 

On  April 5, 2024, we acquired Scottsdale Commons, a property that meets our Community Centered Property® strategy, for $22.2 million in cash and net prorations. Scottsdale Commons, a 69,482 square foot property, was 96.6% leased at the time of purchase and is located in Scottsdale, Arizona. The funding for this acquisition was provided by the Company's credit facility. The funding for this acquisition was provided by the Company’s credit facility.

 

On  April 1, 2024, we acquired Anderson Arbor Pad, a development parcel that meets our Community Centered Property® strategy, for $0.9 million in cash and net prorations. Anderson Arbor Pad is located in Austin, Texas. The funding for this acquisition was provided by the Company’s credit facility.

 

On February 20, 2024, we acquired Garden Oaks Shopping Center, a property that meets our Community Centered Property® strategy, for $27.2 million in cash and net prorations. Garden Oaks Shopping Center, a 106,858 square foot property, was 95.8% leased at the time of purchase and is located in Houston, Texas. The funding for this acquisition was provided by the Company’s credit facility.

 

On June 12, 2023, we acquired Arcadia Towne Center, a property that meets our Community Centered Property® strategy, for $25.5 million in cash and net prorations. Arcadia Towne Center, a 69,503 square foot property, was 100% leased at the time of purchase and is located in Phoenix, Arizona. The funding for this acquisition was provided by the Company’s credit facility.

 

On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million. We recorded a gain on sale of $3.6 million. We have not included Fountain Hills Plaza in discontinued operations as it did not meet the definition of discontinued operations.

 

On March 27, 2024, we completed the sale of Mercado at Scottsdale Ranch, located in Phoenix, Arizona, for $26.5 million. We recorded a gain on sale of $6.6 million. We have not included Mercado at Scottsdale Ranch in discontinued operations as it did not meet the definition of discontinued operations. 

 

On December 20, 2023, we completed the sale of Spoerlein Commons, located in Buffalo Grove, Illinois, for $7.4 million. We recorded a loss on sale of $0.7 million. We have not included Spoerlein in discontinued operations as it did not meet the definition of discontinued operations. 

 

On June 30, 2023, we completed the sale of Westchase, located in Houston, Texas, for $7.8 million. We recorded a gain on sale of $4.6 million. We have not included Westchase in discontinued operations as it did not meet the definition of discontinued operations. 

 

On June 30, 2023, we completed the sale of Sunridge, located in Houston, Texas, for $6.7 million. We recorded a gain on sale of $5.0 million. We have not included Sunridge in discontinued operations as it did not meet the definition of discontinued operations. 

 

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Leasing Activity

 

As of September 30, 2024, we owned 55 properties with 4,943,761 square feet of GLA and, as of September 30, 2024 and September 30, 2023, our occupancy rate for all properties was approximately 94% and 93%, respectively. The following is a summary of our leasing activity for the nine months ended September 30, 2024:

 

		Number of Leases Signed				GLA Signed				Weighted Average Lease Term (2)				TI and Incentives per Sq. Ft. (3)				Contractual Rent Per Sq. Ft. (4)				Prior Contractual Rent Per Sq. Ft. (5)				Straight-lined Basis Increase (Decrease) Over Prior Rent
Comparable (1)
Renewal Leases			133				535,240				4.1			$	0.88			$	20.33			$	18.74				18.0	%
New Leases			35				74,119				5.3				18.28				32.32				28.27				28.1	%
Total			168				609,359				4.2			$	2.99			$	21.78			$	19.90				19.8	%

 

		Number of Leases Signed				GLA Signed				Weighted Average Lease Term (2)				TI and Incentives per Sq. Ft. (3)				Contractual Rent Per Sq. Ft. (4)
Total
Renewal Leases			139				554,951				4.0			$	0.87			$	20.46
New Leases			80				180,744				6.4				20.36				25.33
Total			219				735,695				4.6			$	5.66			$	21.65

 

(1)	Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage.

 

(2)	Weighted average lease term is determined on the basis of square footage.

 

(3)	Estimated amount per signed leases. Actual cost of construction may vary. Does not include first generation costs for tenant improvements (“TI”) and leasing commission costs needed for new acquisitions or redevelopment of a property to bring to operating standards for its intended use.

 

(4)	Contractual minimum rent under the new lease for the first month, excluding concessions.

 

(5)	Contractual minimum rent under the prior lease for the final month.

 

Critical Accounting Policies and Estimates

 

In preparing the consolidated financial statements, we have made estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results may differ from these estimates.  A summary of our critical accounting policies is included in our Annual Report on Form 10-K for the year ended December 31, 2023, under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  Except for the new accounting policies associated with the Pillarstone OP redemption, there have been no significant changes to policies during the nine months ended September 30, 2024. For disclosure regarding recent accounting pronouncements and the anticipated impact they will have on our operations, please refer to Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

 

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Results of Operations

 

 

Comparison of the Three Months Ended September 30, 2024 and 2023

 

The following table provides a general comparison of our results of operations and other metrics for the three months ended September 30, 2024 and 2023 (dollars in thousands, except per share and per OP unit amounts):

 

		Three Months Ended September 30,
		2024				2023
Number of properties owned and operated			55				56
Aggregate GLA (sq. ft.)(1)			4,943,761				5,036,645
Ending occupancy rate - operating portfolio (1)			94	%			93	%
Ending occupancy rate			94	%			93	%
Total revenues		$	38,633			$	37,134
Total operating expenses			25,940				25,279
Total other expense (income)			4,852				8,864
Income before equity investment in real estate partnership and income tax			7,841				2,991
Deficit in earnings of real estate partnership			—				(375	)
Provision for income tax			(118	)			(95	)
Net income			7,723				2,521
Less: Net income attributable to noncontrolling interests			99				35
Net income attributable to Whitestone REIT		$	7,624			$	2,486
Funds from operations(2)		$	12,976			$	11,693
Property net operating income(3)			26,492				26,246
Distributions paid on common shares and OP units			6,274				6,011
Distributions per common share and OP unit		$	0.1238			$	0.1200
Distributions paid as a percentage of funds from operations			48	%			51	%

 

(1)	Excludes (i) new acquisitions, through the earlier of attainment of 90% occupancy or 18 months of ownership, and (ii) properties that are undergoing significant redevelopment or re-tenanting.

 

(2)	For an explanation and reconciliation of funds from operations, a Non-GAAP metric, to net income, see “—Reconciliation of Non-GAAP Financial Measures—Funds From Operations (“FFO”)” below.

 

(3)	For an explanation and reconciliation of property net operating income, a Non-GAAP metric, to net income, see “—Reconciliation of Non-GAAP Financial Measures—Property Net Operating Income (“NOI”)” below.

 

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We define “Same Store” as properties that have been owned for the entire period being compared. For purposes of comparing the three months ended September 30, 2024 to the three months ended September 30, 2023, Same Store includes properties owned during the entire period from July 1, 2023 to September 30, 2024. We define “Non-Same Store” as properties acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations.

 

Revenues. The primary components of revenue are detailed in the table below (in thousands, except percentages):

 

		Three Months Ended September 30,
Revenue		2024				2023				Change				% Change
Same Store
Rental revenues (1)		$	25,920			$	25,431			$	489				2	%
Recoveries (2)			11,025				10,203				822				8	%
Bad debt			(359	)			(399	)			40				(10	)%
Total rental			36,586				35,235				1,351				4	%
Other revenues			267				460				(193	)			(42	)%
Same Store Total			36,853				35,695				1,158				3	%
Non-Same Store
Rental revenues (3)			1,194				1,090				104				10	%
Recoveries (3)			313				332				(19	)			(6	)%
Bad debt (3)			14				10				4				40	%
Total rental			1,521				1,432				89				6	%
Other revenues (3)			259				7				252				3600	%
Non-Same Store Total			1,780				1,439				341				24	%
Total revenue		$	38,633			$	37,134			$	1,499				4	%

 

(1)

The Same Store rental revenues increase of $489,000 resulted from an increase of $224,000 from higher average leased square feet from 4,431,758 to 4,470,741, and an increase of $265,000 from higher average rent per leased square foot from $22.95 to $23.19. Same Store rental revenues include straight-line rent write offs for tenants converted to cash basis accounting of a decrease of $130,000 and an increase of $33,000 for the three months ended September 30, 2024 and 2023, respectively.

(2)	The Same Store recoveries revenue increase of $822,000 is primarily attributable to increases in operating expenses and increases in recoverability of expenses from the increased occupancy at our properties.

 

(3)	Non-Same Store rental revenue includes Fountain Hills Plaza (sold on August 9, 2024), Scottsdale Commons (acquired on April 5, 2024), Mercado at Scottsdale Ranch (sold on March 27, 2024), Garden Oaks (acquired on February 20, 2024), and Spoerlein Commons (sold on December 20, 2023).

 

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Operating expenses. The primary components of operating expenses for the three months ended September 30, 2024 and 2023 are detailed in the table below (in thousands, except percentages):

 

		Three Months Ended September 30,
Operating Expenses		2024				2023				Change				% Change
Same Store
Operating and maintenance		$	7,050			$	6,586			$	464				7	%
Real estate taxes			4,641				4,604				37				1	%
Same Store total			11,691				11,190				501				4	%
Non-Same Store
Operating and maintenance (1)			253				276				(23	)			(8	)%
Real estate taxes (1)			197				89				108				121	%
Non-Same Store total			450				365				85				23	%
Depreciation and amortization			8,921				8,332				589				7	%
General and administrative (2)			4,878				5,392				(514	)			(10	)%
Total operating expenses		$	25,940			$	25,279			$	661				3	%

(1)	Non-Same Store rental expenses includes Fountain Hills Plaza (sold on August 9, 2024), Scottsdale Commons (acquired on April 5, 2024), Mercado at Scottsdale Ranch (sold on March 27, 2024), Garden Oaks (acquired on February 20, 2024), and Spoerlein Commons (sold on December 20, 2023).

  

(2)	The general and administrative expense decrease is attributable to increased payroll cost of $282,000, increased share based compensation of $176,000, increased professional fees of $131,000, and increased other costs of $37,000, offset by decreased legal fees of $1,140,000.

  

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Other expenses (income). The primary components of other expenses (income) for the three months ended September 30, 2024 and 2023 are detailed in the table below (in thousands, except percentages):

 

		Three Months Ended September 30,
Other Expenses (Income)		2024				2023				Change				% Change
Interest expense (1)		$	8,506			$	8,400			$	106				1	%
Gain on sale of properties (2)			(3,762	)			(5	)			(3,757	)			N/A
Loss on disposal of assets			111				480				(369	)			(77	)%
Interest, dividend and other investment income			(3	)			(11	)			8				(73	)%
Total other expenses		$	4,852			$	8,864			$	(4,012	)			(45	)%

 

(1)	The $106,000 increase in interest expense is primarily attributable to an increase in our average outstanding notes payable balance of $8,226,000.

 

(2)	On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million. We recorded a gain on sale of $3.6 million.

 

Deficit in earnings of real estate partnership. As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. For the three months ended September 30, 2023 our estimated deficit in earnings from the real estate partnership was $375,000. Please refer to Note 6 (Investment in Real Estate Partnership) to the accompanying consolidated financial statements for more information regarding our investment in Pillarstone OP. 

 

Same Store net operating income. The components of Same Store net operating income is detailed in the table below (in thousands):

 

		Three Months Ended September 30,								Increase				% Increase
		2024				2023				(Decrease)				(Decrease)
Same Store (48 properties, excluding development land)
Property revenues
Rental		$	36,586			$	35,235			$	1,351				4	%
Management, transaction and other fees			267				460				(193	)			(42	)%
Total property revenues			36,853				35,695				1,158				3	%
Property expenses
Property operation and maintenance			7,050				6,586				464				7	%
Real estate taxes			4,641				4,604				37				1	%
Total property expenses			11,691				11,190				501				4	%
Total property revenues less total property expenses			25,162				24,505				657				3	%
Same Store straight-line rent adjustments			(695	)			(833	)			138				(17	)%
Same Store amortization of above/below market rents			(221	)			(214	)			(7	)			3	%
Same Store lease termination fees			(30	)			(300	)			270				(90	)%
Same Store NOI(1)		$	24,216			$	23,158			$	1,058				5	%

 

(1)	For an explanation and reconciliation of property net operating income, a non-GAAP metric, to net income, see “Reconciliation of Non-GAAP Financial Measures—Property Net Income (“NOI”)” below.

 

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		Three Months Ended September 30,
PROPERTY NET OPERATING INCOME (“NOI”)		2024				2023
Net income attributable to Whitestone REIT		$	7,624			$	2,486
General and administrative expenses			4,878				5,392
Depreciation and amortization			8,921				8,332
Deficit in earnings of real estate partnership(1)			—				375
Interest expense			8,506				8,400
Interest, dividend and other investment income			(3	)			(11	)
Provision for income taxes			118				95
Gain on sale of properties			(3,762	)			(5	)
Loss on disposal of assets			111				480
NOI of real estate partnership (pro rata)(1)			—				667
Net income attributable to noncontrolling interests			99				35
NOI		$	26,492			$	26,246
Non-Same Store NOI (2)			(1,330	)			(1,074	)
NOI of real estate partnership (pro rata)(1)			—				(667	)
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)			25,162				24,505
Same Store straight-line rent adjustments			(695	)			(833	)
Same Store amortization of above/below market rents			(221	)			(214	)
Same Store lease termination fees			(30	)			(300	)
Same Store NOI (3)		$	24,216			$	23,158

 

(1)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements for the three months ended September 30, 2023 have not been made available to us, we have estimated deficit in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this report. As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. Please refer to Note 6 to the accompanying consolidated financial statements for the full disclosure.

 

(2)

We define “Non-Same Store” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. For purposes of comparing the three months ended September 30, 2024 to the three months ended September 30, 2023, Non-Same Store includes properties acquired between July 1, 2023 and September 30, 2024 and properties sold between July 1, 2023 and September 30, 2024, but not included in discontinued operations.

 

(3)

We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended September 30, 2024 to the three months ended September 30, 2023, Same Store includes properties owned before July 1, 2023 and not sold before September 30, 2024. Straight-line rent adjustments, above/below market rents, and lease termination fees are excluded.

 

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Results of Operations 

 

Comparison of the Nine Months Ended September 30, 2024 and 2023

 

The following table provides a general comparison of our results of operations and other metrics for the nine months ended September 30, 2024 and 2023 (dollars in thousands, except per share and per OP unit amounts):

 

		Nine Months Ended September 30,
		2024				2023
Number of properties owned and operated			55				56
Aggregate GLA (sq. ft.)(1)			4,943,761				5,036,645
Ending occupancy rate - operating portfolio (1)			94	%			93	%
Ending occupancy rate			94	%			93	%
Total revenues		$	113,444			$	109,445
Total operating expenses			77,507				74,204
Total other expense			15,769				15,388
Income before equity investment in real estate partnership and income tax			20,168				19,853
Deficit in earnings of real estate partnership			(28	)			(1,627	)
Provision for income tax			(327	)			(339	)
Net income			19,813				17,887
Less: Net income attributable to noncontrolling interests			257				248
Net income attributable to Whitestone REIT		$	19,556			$	17,639
Funds from operations (2)		$	36,064			$	34,387
Property net operating income (3)			79,972				77,329
Distributions paid on common shares and OP units			18,565				18,003
Distributions per common share and OP unit		$	0.3676			$	0.3600
Distributions paid as a percentage of funds from operations			51	%			52	%

 

(1)	Excludes (i) new acquisitions, through the earlier of attainment of 90% occupancy or 18 months of ownership, and (ii) properties that are undergoing significant redevelopment or re-tenanting.

 

(2)	For an explanation and reconciliation of funds from operations, a Non-GAAP metric, to net income, see “—Reconciliation of Non-GAAP Financial Measures—Funds From Operations (“FFO”)” below.

 

(3)	For an explanation and reconciliation of property net operating income, a non-GAAP metric, to net income, see “—Reconciliation of Non-GAAP Financial Measures—Property Net Operating Income (“NOI”)” below.

 

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We define “Same Store” as properties that have been owned for the entire period being compared. For purposes of comparing the nine months ended September 30, 2024 to the nine months ended September 30, 2023, Same Store includes properties owned during the entire period from January 1, 2023 to September 30, 2024. We define “Non-Same Store” as properties acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations.

 

Revenues. The primary components of revenue are detailed in the table below (in thousands, except percentages):

 

		Nine Months Ended September 30,
Revenue		2024				2023				Change				% Change
Same Store
Rental revenues (1)		$	76,179			$	74,324			$	1,855				2	%
Recoveries (2)			30,455				29,029				1,426				5	%
Bad debt			(1,007	)			(859	)			(148	)			17	%
Total rental			105,627				102,494				3,133				3	%
Other revenues			856				1,025				(169	)			(16	)%
Same Store Total			106,483				103,519				2,964				3	%
Non-Same Store
Rental revenues (3)			5,171				4,456				715				16	%
Recoveries (3)			1,554				1,542				12				1	%
Bad debt (3)			(24	)			(87	)			63				(72	)%
Total rental			6,701				5,911				790				13	%
Other revenues (3)			260				15				245				1633	%
Non-Same Store Total			6,961				5,926				1,035				17	%
Total revenue		$	113,444			$	109,445			$	3,999				4	%

 

(1)

The Same Store rental revenues increase of $1,855,000 resulted from an increase of $662,000 from higher average leased square feet from 4,378,624 to 4,417,687, and an increase of $1,193,000 from higher average rent per leased square foot from $22.63 to $22.99. Same Store rental revenues include straight-line rent write offs for tenants converted to cash basis accounting of a decrease of $171,000 and $86,000 for the nine months ended September 30, 2024 and 2023, respectively.

 

(2)	The Same Store recoveries revenue increase of $1,426,000 is primarily attributable to increases in operating expenses and increases in recoverability of expenses from the increased occupancy at our properties.

 

(3)

Non-Same Store rental revenue includes Fountain Hills Plaza (sold on August 9, 2024), Scottsdale Commons (acquired on April 5, 2024), Mercado at Scottsdale Ranch (sold on March 27, 2024), Garden Oaks (acquired on February 20, 2024), Sporlein Commons (sold on December 20, 2023, Westchase (sold on June 30, 2023), Sunridge (sold on June 30, 2023), and Arcadia Towne Center (acquired on June 12, 2023).

 

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Operating expenses. The primary components of operating expenses for the nine months ended September 30, 2024 and 2023 are detailed in the table below (in thousands, except percentages):

 

		Nine Months Ended September 30,
Operating Expenses		2024				2023				Change				% Change
Same Store
Operating and maintenance (1)		$	19,633			$	18,665			$	968				5	%
Real estate taxes (2)			12,450				13,636				(1,186	)			(9	)%
Same Store total			32,083				32,301				(218	)			(1	)%
Non-Same Store and affiliated company rents
Operating and maintenance (3)			1,034				1,167				(133	)			(11	)%
Real estate taxes (3)			538				532				6				1	%
Affiliated company rents (4)			—				15				(15	)			(100	)%
Non-Same Store and affiliated company rents total			1,572				1,714				(142	)			(8	)%
Depreciation and amortization (3)			26,242				24,538				1,704				7	%
General and administrative (5)			17,610				15,651				1,959				13	%
Total operating expenses		$	77,507			$	74,204			$	3,303				4	%

 

(1)	The $968,000 Same Store operating and maintenance cost increase includes $466,000 in increased insurance cost, $403,000 in increased contract services costs, and $231,000 in increased utilities costs, offset by $132,000 in decreased repair costs and other costs.

 

(2)	Same Store real estate taxes decrease is primarily from $1,186,000 of real estate property tax reduction from successful property tax protests.

 

(3)

Non-Same Store rental expenses includes Fountain Hills Plaza (sold on August 9, 2024), Scottsdale Commons (acquired on April 5, 2024), Mercado at Scottsdale Ranch (sold on March 27, 2024), Garden Oaks (acquired on February 20, 2024), Sporlein Commons (sold on December 20, 2023, Westchase (sold on June 30, 2023), Sunridge (sold on June 30, 2023), and Arcadia Towne Center (acquired on June 12, 2023).

 

(4)	Affiliated company rents are spaces that we leased from Pillarstone OP.

  

(5)	The general and administrative expense increase is attributable to proxy solicitation fees of $1,757,000, increased payroll costs of $1,103,000, increased share-based compensation of $318,000, and increased other costs of $112,000, offset by decreased legal fees of $1,331,000.

  

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Other expenses. The primary components of other expenses for the nine months ended September 30, 2024 and 2023 are detailed in the table below (in thousands, except percentages):

 

		Nine Months Ended September 30,
Other Expenses		2024				2023				Change				% Change
Interest expense (1)		$	25,813			$	24,563			$	1,250				5	%
Gain on sale of properties (2)			(10,212	)		$	(9,626	)			(586	)			N/A
Loss on disposal of assets			183			$	500				(317	)			(63	)%
Interest, dividend and other investment income			(15	)			(49	)			34				(69	)%
Total other expenses		$	15,769			$	15,388			$	381				2	%

 

(1)

The $1,250,000 increase in interest expense is attributable to higher interest rates, which led to an increase in our effective interest rate to 5.16% for the nine months ended September 30, 2024 as compared to 4.99% for the nine months ended September 30, 2023, resulting in a $816,000 increase in interest expense and an increase in our average outstanding notes payable balance of $11,442,000, resulting in a $434,000 increase in interest expense.

 

(2)

On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million. We recorded a gain on sale of $3.6 million.  On March 27, 2024, we completed the sale of Mercado at Scottsdale Ranch, located in Phoenix, Arizona, for an aggregate $26.5 million. We recorded a gain on sale of $6.6 million. On June 30, 2023, we completed the sale of Sunridge, located in Houston, Texas, for $6.7 million. We recorded a gain on sale of $5.0 million.  On June 30, 2023, we completed the sale of Westchase, located in Houston, Texas, for $7.8 million. We recorded a gain on sale of $4.6 million.

 

Deficit in earnings of real estate partnership. As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. For the nine months ended September 30, 2024, our estimated deficit in earnings from the real estate partnership, which was generated through our 81.4% ownership of Pillarstone OP up to the redemption date, amounted to $28,000. For the nine months ended September 30, 2023 our estimated deficit in earnings from the real estate partnership was $1,627,000. Please refer to Note 6 (Investment in Real Estate Partnership) to the accompanying consolidated financial statements for more information regarding our investment in Pillarstone OP. 

 

Same Store net operating income. The components of Same Store net operating income is detailed in the table below (in thousands):

 

		Nine Months Ended September 30,								Increase				% Increase
		2024				2023				(Decrease)				(Decrease)
Same Store (47 properties, excluding development land)
Property revenues
Rental		$	105,627			$	102,494			$	3,133				3	%
Management, transaction and other fees			856				1,025				(169	)			(16	)%
Total property revenues			106,483				103,519				2,964				3	%
Property expenses
Property operation and maintenance			19,633				18,665				968				5	%
Real estate taxes			12,450				13,636				(1,186	)			(9	)%
Total property expenses			32,083				32,301				(218	)			(1	)%
Total property revenues less total property expenses			74,400				71,218				3,182				4	%
Same Store straight-line rent adjustments			(2,581	)			(2,390	)			(191	)			8	%
Same Store amortization of above/below market rents			(600	)			(607	)			7				(1	)%
Same Store lease termination fees			(298	)			(600	)			302				(50	)%
Same Store NOI(1)		$	70,921			$	67,621			$	3,300				5	%

 

(1)	For an explanation and reconciliation of property net operating income, a non-GAAP metric, to net income, see “—Reconciliation of Non-GAAP Measures—Property Net Income (“NOI”)” below.

 

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		Nine Months Ended September 30,
PROPERTY NET OPERATING INCOME (“NOI”)		2024				2023
Net income attributable to Whitestone REIT		$	19,556			$	17,639
General and administrative expenses			17,610				15,651
Depreciation and amortization			26,242				24,538
Deficit in earnings of real estate partnership (1)			28				1,627
Interest expense			25,813				24,563
Interest, dividend and other investment income			(15	)			(49	)
Provision for income taxes			327				339
Gain on sale of properties, net			(10,212	)			(9,626	)
Management fee, net of related expenses			—				16
Loss on disposal of assets			183				500
NOI of real estate partnership (pro rata) (1)			183				1,883
Net income attributable to noncontrolling interests			257				248
NOI		$	79,972			$	77,329
Non-Same Store NOI (2)			(5,389	)			(4,228	)
NOI of real estate partnership (pro rata)(1)			(183	)			(1,883	)
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)			74,400				71,218
Same Store straight-line rent adjustments			(2,581	)			(2,390	)
Same Store amortization of above/below market rents			(600	)			(607	)
Same Store lease termination fees			(298	)			(600	)
Same Store NOI (3)		$	70,921			$	67,621

 

(1)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements for the nine months ended September 30, 2024 and 2023 have not been made available to us, we have estimated deficit in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this report. As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. Please refer to Note 6 to the accompanying consolidated financial statements for the full disclosure.

 

(2)

We define “Non-Same Store” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. For purposes of comparing the three months ended September 30, 2024 to the three months ended September 30, 2023, Non-Same Store includes properties acquired between January 1, 2023 and September 30, 2024 and properties sold between January 1, 2023 and September 30, 2024, but not included in discontinued operations.

 

(3)

We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended September 30, 2024 to the three months ended September 30, 2023, Same Store includes properties owned before January 1, 2023 and not sold before September 30, 2024. Straight-line rent adjustments, above/below market rents, and lease termination fees are excluded.

 

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Reconciliation of Non-GAAP Financial Measures

 

Funds From Operations (“FFO”) and Core FFO

 

The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income available to Whitestone REIT (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. We calculate FFO in a manner consistent with the NAREIT definition and also include adjustments for our unconsolidated real estate partnership.

 

Core Funds from Operations (“Core FFO”) is a non-GAAP measure. We define Core FFO as FFO excluding proxy contest costs.

 

Management uses FFO and Core FFO as a supplemental measure to conduct and evaluate our business because there are certain limitations associated with using GAAP net income alone as the primary measure of our operating performance.

 

Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time.  Because real estate values instead have historically risen or fallen with market conditions, management believes that the presentation of operating results for real estate companies that use historical cost accounting is insufficient by itself.  In addition, securities analysts, investors and other interested parties use FFO as the primary metric for comparing the relative performance of equity REITs.  

 

FFO and Core FFO should not be considered as alternatives to net income or other measurements under GAAP, as an indicator of our operating performance or to cash flows from operating, investing or financing activities as a measure of liquidity.  FFO and Core FFO do not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness. Although our calculation of FFO is consistent with that of NAREIT, there can be no assurance that FFO and Core FFO presented by us is comparable to similarly titled measures of other REITs.

 

Below are the calculations of FFO and Core FFO, along with the reconciliations to net income, which we believe is the most directly comparable U.S. GAAP financial measure (in thousands):

 

		Three Months Ended September 30,								Nine Months Ended September 30,
FFO (NAREIT) AND CORE FFO		2024				2023				2024				2023
Net income attributable to Whitestone REIT		$	7,624			$	2,486			$	19,556			$	17,639
Adjustments to reconcile to FFO:(1)
Depreciation and amortization of real estate assets			8,904				8,294				26,169				24,417
Depreciation and amortization of real estate assets of real estate partnership (pro rata) (2)			—				403				111				1,209
Loss on disposal of assets			111				480				183				500
Gain on sale of properties			(3,762	)			(5	)			(10,212	)			(9,626	)
Net income attributable to noncontrolling interests			99				35				257				248
FFO (NAREIT)		$	12,976			$	11,693			$	36,064			$	34,387
Adjustments to reconcile to Core FFO:
Proxy contest costs			—				—				1,757				—
Core FFO		$	12,976			$	11,693			$	37,821			$	34,387

 

(1)	Includes pro-rata share attributable to real estate partnership for the three and nine months ended months ended September 30, 2023 and for the nine months ended September 30, 2024, through January 25, 2024, the redemption date.

 

(2)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements for the three and nine months ended September 30, 2024 and 2023 have not been made available to us, we have estimated depreciation and amortization of real estate assets based on the information available to us at the time of this report. As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. Please refer to Note 6 to the accompanying consolidated financial statements for the full disclosure.

 

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Property Net Operating Income (“NOI”)

 

Management believes that NOI is a useful measure of our property operating performance. We define NOI as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Other REITs may use different methodologies for calculating NOI and, accordingly, our NOI may not be comparable to other REITs. Because NOI excludes general and administrative expenses, depreciation and amortization, deficit in earnings of real estate partnership, interest expense, interest, dividend and other investment income, provision for income taxes, (gain) loss on sale of properties, management fee, net of related expenses, loss on disposal of assets, and includes NOI of real estate partnership (pro rata) and net income attributable to noncontrolling interest, it provides a performance measure that, when compared year-over-year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. We use NOI to evaluate our operating performance since NOI allows us to evaluate the impact that factors such as occupancy levels, lease structure, lease rates and tenant base have on our results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about our property and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of property performance in the real estate industry. However, NOI should not be viewed as a measure of our overall financial performance since it does not reflect the level of capital expenditure and leasing costs necessary to maintain the operating performance of our properties, including general and administrative expenses, depreciation and amortization, equity or deficit in earnings of real estate partnership, interest expense, interest, dividend and other investment income, provision for income taxes, (gain) loss on sale of properties, management fee, net of related expenses, and loss on disposal of assets.

 

Below is the calculation of NOI and the reconciliations to net income, which we believe is the most directly comparable U.S. GAAP financial measure (in thousands):

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
PROPERTY NET OPERATING INCOME		2024				2023				2024				2023
Net income attributable to Whitestone REIT		$	7,624			$	2,486			$	19,556			$	17,639
General and administrative expenses			4,878				5,392				17,610				15,651
Depreciation and amortization			8,921				8,332				26,242				24,538
Deficit in earnings of real estate partnership			—				375				28				1,627
Interest expense			8,506				8,400				25,813				24,563
Interest, dividend and other investment income			(3	)			(11	)			(15	)			(49	)
Provision for income taxes			118				95				327				339
Gain on sale of properties			(3,762	)			(5	)			(10,212	)			(9,626	)
Management fee, net of related expenses			—				—				—				16
Loss on disposal of assets			111				480				183				500
NOI of real estate partnership (pro rata) (1)			—				667				183				1,883
Net income attributable to noncontrolling interests			99				35				257				248
NOI		$	26,492			$	26,246			$	79,972			$	77,329

 

(1)

We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements for the three and nine months ended September 30, 2024 and 2023 have not been made available to us, we have estimated equity in earnings and pro rata share of NOI of real estate partnership based on the information available to us at the time of this report. As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, we exercised our notice of redemption for substantially all of our investment in Pillarstone OP. Please refer to Note 6 for the full disclosure.

 

Liquidity and Capital Resources

 

Our short-term liquidity requirements consist primarily of distributions to holders of our common shares and OP units, including those required to maintain our REIT status and satisfy our current quarterly distribution target of $0.12375 per common share and OP unit, recurring expenditures, such as repairs and maintenance of our properties, non-recurring expenditures, such as capital improvements and tenant improvements, debt service requirements, and, potentially, acquisitions of additional properties.

 

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During the nine months ended September 30, 2024, our cash provided by operating activities was $40,156,000 and our total distributions were $18,565,000.  Therefore, we had cash flow from operations in excess of distributions of approximately $21,591,000. We anticipate that cash flows from operating activities and our borrowing capacity under our 2022 Facility will provide adequate capital for our working capital requirements, anticipated capital expenditures, acquisitions and scheduled debt payments in the short term. We also believe that cash flows from operating activities and our borrowing capacity will allow us to make all distributions required for us to continue to qualify to be taxed as a REIT for federal income tax purposes. The funding for the Scottsdale Commons acquisition was provided by the 2022 Facility.

 

Our long-term capital requirements consist primarily of maturities under our longer-term debt agreements, development and redevelopment costs, and potential acquisitions. We expect to meet our long-term liquidity requirements with net cash from operations, long-term indebtedness, sales of common shares, issuance of OP units, sales of underperforming properties and non-core properties and other financing opportunities, including debt financing. We believe we have access to multiple sources of capital to fund our long-term liquidity requirements, including the incurrence of additional debt and the issuance of additional equity. On March 5, 2024, the Company announced an increase to its quarterly distribution to $0.12375 per common share and OP unit, equal to a monthly distribution of $0.04125, beginning with the April 2024 distribution. The Board will regularly reassess the dividend in light of economic conditions. As of September 30, 2024, subject to any potential future paydowns in the borrowing base, we have $121.0 million remaining availability under the 2022 Revolver.

 

Our ability to access the capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about our Company. In light of the dynamics in the capital markets impacted by macro economic factors and economic uncertainty, our access to capital may be diminished. Despite these potential challenges, we believe we have sufficient access to capital for the foreseeable future, but we can provide no assurance that such capital will be available to us in the future on attractive terms or at all.

 

On May 20, 2022, our universal shelf registration statement on Form S-3 (File No. 333-264881) was declared effective by the SEC (the “Registration Statement”), which registers the issuance and sale by us of up to $500 million in securities from time to time, including common shares, preferred shares, debt securities, depositary shares and subscription rights.

 

On September 9, 2022, we entered into eleven equity distribution agreements with certain sales agents’ names therein for an at-the-market equity distribution program (the “2022 equity distribution agreements”) providing for the issuance and sale of up to an aggregate of $100 million of the Company’s common shares pursuant to our Registration Statement. Actual sales will depend on a variety of factors determined by us from time to time, including (among others) market conditions, the trading price of our common shares, capital needs and our determinations of the appropriate sources of funding for us, and will be made in transactions that will be deemed to be “at-the-market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). We have no obligation to sell any of our common shares and can at any time suspend offers under the 2022 equity distribution agreements or terminate the 2022 equity distribution agreements. For both the three and nine months ended September 30, 2024, we sold 579,964 common shares under the 2022 equity distribution agreements, with net proceeds to us of approximately $7.6 million. In connection with such sales, we paid compensation of approximately $116,000 to the sales agents. For both the three and nine months ended September 2023, we did not sell shares under the 2022 equity distribution agreements. 

 

To the extent we sell shares in the future under the 2022 equity distribution agreements, we anticipate using net proceeds for general corporate purposes, which may include acquisitions of additional properties, the repayment of outstanding indebtedness, capital expenditures, the expansion, redevelopment and/or re-tenanting of properties in our portfolio, working capital and other general purposes.

 

We expect that our rental income will increase as we continue to acquire additional properties, subsequently increasing our cash flows generated from operating activities. We intend to finance the continued acquisition of such additional properties through equity issuances and through debt financing.

 

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Our capital structure includes non-recourse mortgage debt that we have assumed or originated on certain properties. We may hedge the future cash flows of certain variable rate debt transactions principally through interest rate swaps with major financial institutions. See Note 8 (Derivatives and Hedging Activities) to the accompanying consolidated financial statements for a description of our current cash flow hedges.

 

As discussed in Note 2 (Summary of Significant Accounting Policies) to the accompanying consolidated financial statements, pursuant to the terms of our $15.1 million 4.99% Note, due January 6, 2024 (see Note 7 (Debt)) to the accompanying consolidated financial statements), which is collateralized by our Anthem Marketplace property, we were required by the lenders thereunder to establish a cash management account controlled by the lenders to collect all amounts generated by our Anthem Marketplace property in order to collateralize such promissory note. The note was paid off in January 2024. As of September 30, 2024, we had no restricted cash.

 

Cash, Cash Equivalents and Restricted Cash

 

We had cash, cash equivalents and restricted cash of approximately $2,534,000 as of September 30, 2024, as compared to $4,640,000 on December 31, 2023.  Sources and uses of cash during the nine months ended September 30, 2024 and 2023 were as follows: 

 

Sources of Cash

 

•

Proceeds from notes payable of $56,340,000 for the nine months ended September 30, 2024, compared to $0 for the nine months ended September 30, 2023;

 

•

Proceeds from sale of properties of $46,444,000 for the nine months ended September 30, 2024, compared to $13,447,000 for the nine months ended September 30, 2023;

 

•

Cash flow from operations of $40,156,000 for the nine months ended September 30, 2024, compared to $35,854,000 for the nine months ended September 30, 2023;

 

•

Proceeds from issuance of common shares, net of offering costs of $7,620,000 for the nine months ended September 30, 2024, compared to $0 for the nine months ended September 30, 2023;

 

Uses of Cash

 

•

Acquisition of real estate of $50,137,000 for the nine months ended September 30, 2024, compared to $25,474,000 for the nine months ended September 30, 2023;

 

•

Payments of notes payable of $47,950,000 for the nine months ended September 30, 2024, compared to $29,823,000 for the nine months ended September 30, 2023;

 

•

Payment of distributions to common shareholders and OP unit holders of $18,565,000 for the nine months ended September 30, 2024, compared to $18,003,000 for the nine months ended September 30, 2023;

 

•

Net payment of credit facility of $17,000,000 for the nine months ended September 30, 2024, compared to net proceeds from the credit facility of $34,000,000 for the nine months ended September 30, 2023;

 

•

Additions to real estate of $15,485,000 for the nine months ended September 30, 2024, compared to $12,748,000 for the nine months ended September 30, 2023;

 

•

Repurchase of common shares from employees to satisfy tax withholding obligations upon vesting of equity awards of $2,641,000 for the nine months ended September 30, 2024, compared to $525,000 for the nine months ended September 30, 2023;

 

•

Payment of loan origination costs of $789,000 for the nine months ended September 30, 2024, compared to $0 for the nine months ended September 30, 2023;

 

•

Payment of finance lease liability of $18,000 for the nine months ended September 30, 2024, compared to $10,000 for the nine months ended September 30, 2023 and;

 

•

Payment of exchange offering costs of $81,000 for the nine months ended September 30, 2024, compared to $0 for the nine months ended September 30, 2023.

 

 

We place all cash in short-term, highly liquid investments that we believe provide appropriate safety of principal.

 

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Debt  

 

Debt consisted of the following as of the dates indicated (in thousands):

 

Description		September 30, 2024				December 31, 2023
Fixed rate notes
$265.0 million, 3.18% plus 1.45% to 2.10% Note, due January 31, 2028 (1)		$	265,000			$	265,000
$80.0 million, 3.72% Note, due June 1, 2027			80,000				80,000
$19.0 million 4.15% Note, due December 1, 2024			17,383				17,658
$14.0 million 4.34% Note, due September 11, 2024			—				12,427
$14.3 million 4.34% Note, due September 11, 2024			—				13,257
$15.1 million 4.99% Note, due January 6, 2024			—				13,350
$50.0 million, 5.09% Note, due March 22, 2029 (Series A)			35,714				42,857
$50.0 million, 5.17% Note, due March 22, 2029 (Series B)			50,000				50,000
$2.5 million 7.79% Note, due February 28, 2025			1,133				—
$50.0 million, 3.71% plus 1.50% to 2.10% Note, due September 16, 2026 (2)			50,000				50,000
$56.3 million, 6.23% Note, due July 31, 2031			56,340				—
Floating rate notes
Unsecured line of credit, SOFR plus 1.50% to 2.10%, due September 16, 2026			79,000				96,000
Total notes payable principal			634,570				640,549
Less deferred financing costs, net of accumulated amortization			(1,018	)			(377	)
Total notes payable		$	633,552			$	640,172

 

(1)	Promissory note includes an interest rate swap that fixes the SOFR portion of the term loan at an interest rate of 2.16% through October 28, 2022, 2.76% from October 29, 2022 through January 31, 2024, and 3.32% beginning February 1, 2024 through January 31, 2028.

 

(2)	A portion of the unsecured line of credit includes an interest rate swap to fix the SOFR portion of the loan at 3.71%.

 

Scheduled maturities of our outstanding debt as of September 30, 2024 were as follows (in thousands):

 

Year		Amount Due
2024 (remaining)		$	18,062
2025			17,596
2026			146,143
2027			97,414
2028			282,823
Thereafter			72,532
Total		$	634,570

 

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On June 21, 2024, Whitestone REIT, operating through its subsidiaries Whitestone Strand LLC, Whitestone Las Colinas Village LLC, and Whitestone Seville, LLC (collectively, the “Borrower”), entered into a loan agreement (the “Loan Agreement”) with Nationwide Life Insurance Company (the “Lender”) for a mortgage loan in the principal amount of $56,340,000 (the “Loan”).

 

The Loan provides for a fixed interest rate of 6.23% per annum. Payments commence on August 1, 2024, and are due on the first day of each calendar month thereafter through July 1, 2031, with interest-only payments for the first 36 months. Monthly payments consist of principal and interest based on a 30-year amortization schedule beginning on August 1, 2027. The Loan may be prepaid in full but not in part, provided that, as conditions precedent, Borrower: (i) gives Lender not less than fifteen (15) days prior notice of Borrower’s intention to prepay the Loan; (ii) pays to Lender the prepayment premium as set forth in the Loan Agreement, if any, then due and payable to Lender; and (iii) pays to Lender all other amounts then due under the loan documents. No prepayment premium is required for prepayments in full made on or after six months prior to the maturity date.

 

The Loan is a non-recourse loan secured by three of the Company’s properties including their related equipment, fixtures, personal property, and other assets, and a limited carve-out guarantee by the Company’s operating partnership.

 

The loan documents contain customary terms and conditions, including without limitation affirmative and negative covenants such as information reporting and insurance requirements. The loan documents also contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants, and bankruptcy or other insolvency events. Upon the occurrence of an event of default, the Lender is entitled to accelerate all obligations of the Borrower. The Lender will also be entitled to receive the entire unpaid principal balance at a default rate.

 

The Loan proceeds will be used to pay down the Borrower’s existing floating rate indebtedness.

 

On September 16, 2022 we, through our Operating Partnership, entered into an unsecured credit facility (the “2022 Facility”) pursuant to that certain Third Amended and Restated Credit Agreement, by and among the Operating Partnership, the Company and certain subsidiaries of the Company, as guarantors signatory thereto, the lenders party thereto, Bank of Montreal, as administrative agent (the “Administrative Agent”), Truist Bank, as syndication agent, and BMO Capital Markets Corp., Truist Bank, Capital One, National Association, and U.S. Bank National Association, as co-lead arrangers and joint book runners (as amended from time to time, the “Credit Agreement”). The 2022 Facility replaced the Company’s previous unsecured revolving credit facility, dated January 31, 2019.

 

On October 7, 2024, we, through our Operating Partnership, entered into the First Amendment to Third Amended and Restated Credit Agreement and Incremental Term Loan Joinder (the “Amendment”) among the Operating Partnership, the Company and certain subsidiaries of the Company, as guarantors signatory thereto, the Administrative Agent, and L/C Issuer and Associated Bank, National Association, which amends the Credit Agreement.

 

The Amendment, among other things, establishes the Series One Incremental Term Loan (defined below) consistent with the existing Term Loan (defined below). The Series One Incremental Term Loan accrues interest (at the Operating Partnership’s option) at a Base Rate (defined below) or Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin based upon the Operating Partnership’s then existing total leverage and is subject to adjustment as set forth in the Credit Agreement. In addition, the Operating Partnership entered into an interest rate swap to fix the interest rate on the Series One Incremental Term Loan at 3.665% plus bank credit spreads (that are currently 1.5%, through January 31, 2028), or an all-in rate of 5.165%.

 

The 2022 Facility is comprised of the following three tranches:

 

•

$250.0 million unsecured revolving credit facility with a maturity date of September 16, 2026 (the “2022 Revolver”);

 

•

$265.0 million unsecured term loan with a maturity date of January 31, 2028 (the “Term Loan”);

 

•

$20.0 million unsecured term loan with a maturity date of January 31, 2028 (the “Series One Incremental Term Loan”), effective October 7, 2024.

 

Borrowings under the 2022 Facility accrue interest (at the Operating Partnership’s option) at a Base Rate or Adjusted Term SOFR plus an applicable margin based upon our then existing total leverage as set forth in the Credit Agreement. “Base Rate” means, for any day, the higher of: (a) the Administrative Agent’s prime commercial rate, (b) the sum of (i) the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York for such day, plus (ii) 0.50%, or (c) the sum of (i) Adjusted Term SOFR for a one-month tenor in effect on such day plus (ii) 1.10%.

 

As of September 30, 2024, the interest rate on the 2022 Revolver was 6.80%. In addition, we entered into interest rate swaps to fix the interest rates on the Term Loan. The Term Loan with the swaps has the following interest rates:

 

•

2.16% plus spreads ranging from 1.35% to 2%, through October 28, 2022

 

•

2.80% plus spreads ranging from 1.35% to 2%, from October 29, 2022 through January 31, 2024

 

•

3.42% plus spreads ranging from 1.35% to 2%, from February 1, 2024 through January 31, 2028

 

As of September 30, 2024, the Term Loan with the swaps had a spread of 1.40%.

 

The 2022 Facility also has a pricing provision where the applicable margin can be adjusted by an aggregate 0.02% per annum based on the Company’s performance on certain sustainability performance targets.

 

The 2022 Facility includes an accordion feature that allows the Operating Partnership to increase the borrowing capacity by an aggregate principal amount not to exceed $200.0 million, upon the satisfaction of certain conditions. As of September 30, 2024, subject to any potential future paydowns or increases in the borrowing base, we have $121.0 million remaining availability under the 2022 Revolver. As of September 30, 2024, $394.0 million was drawn on the 2022 Facility and our unused borrowing capacity was $121.0 million, assuming that we use the proceeds of the 2022 Facility to acquire properties, or to repay debt on properties, that are eligible to be included in the unsecured borrowing base. 

 

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The Company, each direct and indirect material subsidiary of the Operating Partnership and any other subsidiary of the Operating Partnership that is a guarantor under any unsecured ratable debt will serve as a guarantor for funds borrowed by the Operating Partnership under the 2022 Facility. The 2022 Facility contains customary terms and conditions, including, without limitation, customary representations and warranties and affirmative and negative covenants including, without limitation, information reporting requirements, limitations on investments, acquisitions, loans and advances, mergers, consolidations and sales, incurrence of liens, dividends and restricted payments. In addition, the 2022 Facility contains certain financial covenants including the following:

 

•

maximum total indebtedness to total asset value ratio of 0.60 to 1.00;

 

•

maximum secured debt to total asset value ratio of 0.40 to 1.00;

 

•

minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00;

 

•

maximum secured recourse debt to total asset value ratio of 0.15 to 1.00;

 

•

maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortization) of $449 million plus 75% of the net proceeds from additional equity offerings (as defined therein);

 

•

minimum adjusted property net operating income to implied unencumbered debt service of 1.50 to 1.00; and

 

•

maximum unsecured indebtedness to unencumbered asset pool value of 0.60 to 1.00.

 

On March 22, 2019, we, through our Operating Partnership, entered into a Note Purchase and Guarantee Agreement (as amended from time to time, the “Note Agreement”) together with certain subsidiary guarantors as initial guarantor parties thereto (the “Subsidiary Guarantors”) and The Prudential Insurance Company of America and the various other purchasers named therein (collectively, the “Purchasers”) providing for the issuance and sale of $100 million of senior unsecured notes of the Operating Partnership, of which (i) $50 million are designated as 5.09% Series A Senior Notes due March 22, 2029 (the “Series A Notes”) and (ii) $50 million are designated as 5.17% Series B Senior Notes due March 22, 2029 (the “Series B Notes” and, together with the Series A Notes, the “Notes”) pursuant to a private placement that closed on March 22, 2019 (the “Private Placement”). Obligations under the Notes are unconditionally guaranteed by the Company and by the Subsidiary Guarantors.

 

On December 16, 2022, we, through our Operating Partnership, amended the Note Agreement, pursuant to the terms and conditions of that certain Amendment No. 1 to Note Purchase and Guaranty Agreement, by and among the Company and the Operating Partnership, together with certain subsidiary guarantors as initial guarantor parties thereto and The Prudential Insurance Company of America and the various other purchasers named therein, for the purposes of conforming certain covenants and defined terms contained in the Note Agreement with the 2022 Facility.

 

The principal of the Series A Notes began to amortize on March 22, 2023, with annual principal payments of approximately $7.1 million. The principal of the Series B Notes will begin to amortize on March 22, 2025 with annual principal payments of $10.0 million. The Notes will pay interest quarterly on the 22nd day of March, June, September and December in each year until maturity.

 

The Operating Partnership may prepay at any time all, or from time to time part of, the Notes, in an amount not less than $1,000,000 in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus a make-whole amount. The make-whole amount is equal to the excess, if any, of the discounted value of the remaining scheduled payments with respect to the Notes being prepaid over the aggregate principal amount of such Notes (as described in the Note Agreement). In addition, in connection with a Change of Control (as defined in the Note Agreement), the Operating Partnership is required to offer to prepay the Notes at 100% of the principal amount plus accrued and unpaid interest thereon.

 

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The Note Agreement contains representations, warranties, covenants, terms and conditions customary for transactions of this type and substantially similar to the Operating Partnership’s existing senior revolving credit facility, including limitations on liens, incurrence of investments, acquisitions, loans and advances and restrictions on dividends and certain other restricted payments. In addition, the Note Agreement contains certain financial covenants substantially similar to the Operating Partnership’s existing senior revolving credit facility, including the following:

 

•

maximum total indebtedness to total asset value ratio of 0.60 to 1.00;

 

•

maximum secured debt to total asset value ratio of 0.40 to 1.00;

 

•

minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00;

 

•

maximum secured recourse debt to total asset value ratio of 0.15 to 1.00;

 

•

maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortization) of 75% of the Company's total net worth as of December 31, 2021 plus 75% of the net proceeds from additional equity offerings (as defined therein); and

 

•

minimum adjusted property NOI to implied unencumbered debt service ratio of 1.50 to 1.00.

 

In addition, the Note Agreement contains a financial covenant requiring that maximum unsecured indebtedness not exceed the ratio of unsecured indebtedness to unencumbered asset pool of 0.60 to 1.00. That covenant is substantially similar to the borrowing base concept contained in the Operating Partnership’s existing senior revolving credit facility.

 

The Note Agreement also contains default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-performance of covenants, cross-defaults with other indebtedness and guarantor defaults. The occurrence of an event of default under the Note Agreement could result in the Purchasers accelerating the payment of all obligations under the Notes. The financial and restrictive covenants and default provisions in the Note Agreement are substantially similar to those contained in the Operating Partnership’s existing credit facility.

 

Net proceeds from the Private Placement were used to refinance existing indebtedness. The Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Notes were sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.

 

As of September 30, 2024, our $153.72 million in secured debt was collateralized by five properties with a carrying value of $242.7 million.  Our loans contain restrictions that would require the payment of prepayment penalties for the acceleration of outstanding debt and are secured by deeds of trust on certain of our properties and by assignment of the rents and leases associated with those properties. As of September 30, 2024, we were in compliance with all loan covenants.

 

Refer to Note 7 (Debt) to the accompanying consolidated financial statements for additional information regarding debt.

 

Capital Expenditures

 

We continually evaluate our properties’ performance and value. We may determine it is in our shareholders’ best interest to invest capital in properties that we believe have potential for increasing value. We also may have unexpected capital expenditures or improvements for our existing assets. Additionally, we intend to continue investing in similar properties outside of the markets on which we focus in cities with exceptional demographics to diversify market risk, and we may incur significant capital expenditures or make improvements in connection with any properties we may acquire.

 

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The following is a summary of the Company's capital expenditures for the three and nine month periods ended September 30, 2024 and 2023 (in thousands): 

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Capital expenditures:
Tenant improvements and allowances		$	2,838			$	997			$	9,112			$	4,452
Developments / redevelopments			641				932				2,850				2,817
Leasing commissions and costs			662				617				2,142				1,682
Maintenance capital expenditures			3,268				1,711				4,962				5,142
Total capital expenditures (1)		$	7,409			$	4,257			$	19,066			$	14,093

 

(1)	Total capital expenditures include the non cash accrued capital expenditures line item as reported in the consolidated statements of cash flows.

 

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Distributions 

 

U.S. federal income tax law generally requires that a REIT distribute annually to its shareholders at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that it pay tax at regular corporate rates on any taxable income that it does not distribute. We currently, and intend to continue to, accrue distributions quarterly and make distributions in three monthly installments following the end of each quarter. For a discussion of our cash flow as compared to dividends, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.”

 

The timing and frequency of our distributions are authorized and declared by our Board of Trustees in exercise of its business judgment based upon a number of factors, including:

 

•

our funds from operations;

 

•

our debt service requirements;

 

•

our capital expenditure requirements for our properties;

 

•

our taxable income, combined with the annual distribution requirements necessary to maintain REIT qualification;

 

•

requirements of Maryland law;

 

•

our overall financial condition; and

 

•

other factors deemed relevant by our Board of Trustees.

 

Any distributions we make will be at the discretion of our Board of Trustees and we cannot provide assurance that our distributions will be made or sustained in the future.

 

On March 5, 2024, the Company announced an increase to its quarterly distribution to $0.12375 per common share and OP unit, equal to a monthly distribution of $0.04125, beginning with the April 2024 distribution. The Board will continue to regularly reassess the dividend level.

 

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During the nine months ended September 30, 2024, we paid distributions to our common shareholders and OP unit holders of $18.6 million, compared to $18.0 million in the nine months ended September 30, 2023.  Common shareholders and OP unit holders receive monthly distributions.  Payments of distributions are declared quarterly and paid monthly. The following table summarizes the cash distributions paid or payable to holders of our common shares and noncontrolling OP units during each quarter of 2023 and the nine months ended September 30, 2024 (in thousands, except per share data):

 

		Common Shares								Noncontrolling OP Unit Holders								Total
Quarter Paid		Distributions Per Common Share				Amount Paid				Distributions Per OP Unit				Amount Paid				Amount Paid
2024
Third Quarter		$	0.1238			$	6,194			$	0.1238			$	80			$	6,274
Second Quarter			0.1238				6,162				0.1238				80				6,242
First Quarter			0.1200				5,969				0.1200				80				6,049
Total		$	0.3676			$	18,325			$	0.3676			$	240			$	18,565
2023
Fourth Quarter		$	0.1200			$	5,930			$	0.1200			$	83			$	6,013
Third Quarter			0.1200				5,928				0.1200				83				6,011
Second Quarter			0.1200				5,913				0.1200				83				5,996
First Quarter			0.1200				5,913				0.1200				83				5,996
Total		$	0.4800			$	23,684			$	0.4800			$	332			$	24,016

 

Taxes

 

We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, beginning with our taxable year ended December 31, 1999.  As a REIT, we generally are not subject to federal income tax on income that we distribute to our shareholders.  If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate rates.  We believe that we are organized and operate in a manner to qualify and be taxed as a REIT, and we intend to operate so as to remain qualified as a REIT for federal income tax purposes.

 

Environmental Matters

 

Our properties are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which our operations are conducted. From our inception, we have incurred no significant environmental costs, accrued liabilities or expenditures to mitigate or eliminate future environmental contamination.

 

Off-Balance Sheet Arrangements

 

Guarantees. We may guarantee the debt of a real estate partnership primarily because it allows the real estate partnership to obtain funding at a lower cost than could be obtained otherwise. This results in a higher return for the real estate partnership on its investment, and a higher return on our investment in the real estate partnership. We may receive a fee from the real estate partnership for providing the guarantee. Additionally, when we issue a guarantee, the terms of the real estate partnership’s partnership agreement typically provide that we may receive indemnification from the real estate partnership or have the ability to increase our ownership interest. See Note 6 (Investment in Real Estate Partnership) to the accompanying consolidated financial statements for information related to our former guarantee of the real estate partnership’s debt, which is no longer in effect.

 

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

 

Our future income, cash flows and fair value relevant to our financial instruments depend upon prevailing market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. Based upon the nature of our operations, we are not subject to foreign exchange rate or commodity price risk. The principal market risk to which we are exposed is the risk related to interest rate fluctuations. Many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control contribute to interest rate risk. Our interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve this objective, we manage our exposure to fluctuations in market interest rates for our borrowings through the use of fixed rate debt instruments to the extent that reasonably favorable rates are obtainable.

 

All of our financial instruments were entered into for other than trading purposes.

 

Fixed Interest Rate

 

As of September 30, 2024, $555.6 million, or approximately 88% of our total outstanding debt, was subject to fixed interest rates, which limit the risk of fluctuating interest rates. Although a change in the market interest rates affects the fair market value of our fixed interest rate debt, it does not impact net income to shareholders or cash flows. Our total outstanding fixed interest rate debt had an average effective interest rate as of September 30, 2024 of approximately 4.87% per annum with scheduled maturities ranging from 2024 to 2031. See Note 7 (Debt) to the accompanying consolidated financial statements for further detail. Holding other variables constant, a 1% increase or decrease in interest rates would cause a $14.3 million decline or increase, respectively, in the fair value for our fixed rate debt.

 

Variable Interest Rate Debt

 

As of September 30, 2024, $79.0 million, or approximately 12% of our outstanding debt, was subject to floating interest rates of SOFR plus 1.50% to 2.10% and not currently subject to a hedge. The impact of a 1% increase or decrease in interest rates on our non-hedged variable rate debt would result in a decrease or increase of annual net income of approximately $0.8 million, respectively. 

 

Credit Risk

 

Credit risk may be increased as a result of macroeconomic factors such as inflation, rising interest rates, and financial institution disruptions. Actions taken by the U.S. and international governments to decrease the impact of inflation, including rising interest rates, may result in a continued decline in global economic activity generally, and may adversely affect the financial condition of our tenants in particular. Although the full extent of the adverse impacts on our tenants cannot be predicted, in future periods we may experience reductions in on-time payments or closures of tenants’ businesses, which could have a material adverse effect on our results of operations, cash flows and financial condition.

 

Item 4.  Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

The Company’s management is responsible for establishing and maintaining adequate disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Disclosure controls and procedures means controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act, is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Based on the evaluation of our disclosure controls and procedures as of September 30, 2024, our principal executive and financial officers have concluded that such disclosure controls and procedures were effective.

 

Changes in Internal Control Over Financial Reporting

 

There have been no changes in our internal control over financial reporting during the nine months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We are subject to various legal proceedings and claims that arise in the ordinary course of business.  These matters are generally covered by insurance.  While the resolution of these matters cannot be predicted with certainty, management believes the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or liquidity.

 

As disclosed in Note 17 to the Notes to Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, we are engaged in certain legal proceedings, and the disclosure set forth in Note 17 is incorporated herein by reference.

 

Item 1A. Risk Factors.

 

There has been no material change in our risk factors from those previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 other than the following.

 

Risk associated with the Kroger acquisition of Albertsons.

 

On October 14, 2022, Kroger Co. (“Kroger”) announced its intention to acquire Albertsons Companies, Inc. (“Albertsons”). In connection with obtaining the regulatory clearance necessary to close the transaction, C&S Wholesale Grocers has entered into a definitive agreement to purchase 579 stores. As of September 30, 2024, the Company had 3 grocery stores owned by Albertsons as the Company's tenants, and 2 grocery stores in shadow space adjacent to Company properties. If the acquisition is approved by regulating authorities, any of the Albertsons' stores currently leasing from Whitestone REIT could be purchased by C&S Wholesale Grocers, and such assignment could potentially result in adverse changes to the traffic and profitability of the shopping center in which it is located. 

 

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 

 

(a)

During the period covered by this Quarterly Report on Form 10-Q, we did not sell any equity securities that were not registered under the Securities Act of 1933, as amended.

 

(b)

Not applicable.

 

(c)

During the three months ended September 30, 2024, certain of our employees tendered owned common shares to satisfy the tax withholding on the lapse of certain restrictions on restricted common shares issued under the 2018 Plan. The following table summarizes all of these repurchases during the three months ended September 30, 2024.

 

Period

Total Number of Shares Purchased (1)

Average Price Paid Per Share

Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs

Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs

July 1, 2024 - July 31, 2024

—

$

—

N/A

N/A

August 1, 2024 - August 31, 2024

—

—

N/A

N/A

September 1, 2024 - September 30, 2024

—

N/A

N/A

Total

—

 

(1)

The number of shares purchased represents common shares held by employees who tendered owned common shares to satisfy the tax withholding on the lapse of certain restrictions on restricted common shares issued under the 2018 Plan. With respect to these shares, the price paid per share is based on the fair market value at the time of tender.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

 

Item 5. Other Information.

 

During the nine months ended  September 30, 2024, no trustee or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. 

 

 

Item 6. Exhibits.

 

The exhibits listed on the accompanying Exhibit Index are filed, furnished and incorporated by reference (as stated therein) as part of this Report.

 

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EXHIBIT INDEX

 

Exhibit No.

Description

 

3.1.1

Articles of Amendment and Restatement of Whitestone REIT (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on July 31, 2008)

 

3.1.2

Articles Supplementary (previously filed as and incorporated by reference to Exhibit 3(i).1 to the Registrant's Current Report on Form 8-K, filed on December 6, 2006)

 

3.1.3

Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on August 24, 2010)

 

3.1.4

Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K, filed on August 24, 2010)

 

3.1.5

Articles Supplementary (previously filed as and incorporated by reference to Exhibit 3.3 to the Registrant's Current Report on Form 8-K, filed on August 24, 2010)

 

3.1.6

Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.1.1 to the Registrant's Current Report on Form 8-K, filed on June 27, 2012)

 

3.1.7

Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.1.2 to the Registrant's Current Report on Form 8-K, filed on June 27, 2012)

 

3.1.8

Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.1.8 to the Registrant’s Annual Report on Form 10-K, filed on March 2, 2020)

 

3.1.9

Articles Supplementary for Series A Preferred Shares (previously filed and incorporated by reference to Exhibit 3.1. to the Registrant’s Current Report on Form 8-K filed on May 15, 2020)

 

3.2.1

Amended and Restated Bylaws of Whitestone REIT (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed on March 24,2020)

 

3.2.2

Amendment No. 1 to Amended and Restated Bylaws of Whitestone REIT (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed January 19, 2022

 

3.2.3

Amendment No. 2 to Amended and Restated Bylaws of Whitestone REIT (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed March 30, 2022)

 

10.1

First Amendment to Third Amended and Restated Credit Agreement and Incremental Term Loan Agreement dated October 7, 2024, by and among Whitestone REIT Operating Partnership, L.P., as a borrower, the Guarantors signatories thereto, Bank of Montreal, as Administrative Agent and Associated Bank National Association, as the Series One Incremental Term Loan Lender (incorporated by reference to Exhibit 10.1 on Form 8-K, filed October 11, 2024).

 

31.1*

Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

31.2*

Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

32.1**

Certificate of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

32.2**

Certificate of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

101

The following financial information of the Registrant for the quarter ended September 30, 2024, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023, (ii) the Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine month periods ended September 30, 2024 and 2023 (unaudited), (iii) the Consolidated Statements of Changes in Equity for the three and nine month periods ended September 30, 2024 and 2023 (unaudited), (iv) the Consolidated Statement of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited) and (v) the Notes to the Consolidated Financial Statements (unaudited).

 

104	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document and in Exhibit 101.

________________________

 

*	Filed herewith.

**	Furnished herewith.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

				WHITESTONE REIT
Date:	October 31, 2024			/s/ David K. Holeman
				David K. Holeman
				Chief Executive Officer
				(Principal Executive Officer)

 

Date:	October 31, 2024			/s/ John S. Hogan
				John S. Hogan
				Chief Financial Officer
				(Principal Financial and Principal Accounting Officer)

 

62

Exhibit 31.1

 

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

 

 

I, David K. Holeman, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q, for the period ended September 30, 2024, of Whitestone REIT;

 

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date: October 31, 2024
		/s/ David K. Holeman
		David K. Holeman Chief Executive Officer

 

 

Exhibit 31.2

 

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

 

 

I, John S. Hogan, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q, for the period ended September 30, 2024, of Whitestone REIT;

 

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date: October 31, 2024
		/s/ John S. Hogan
		John S. Hogan Chief Financial Officer

 

 

Exhibit 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the quarterly report of Whitestone REIT, a Maryland real estate investment trust (the “Company”) on Form 10-Q for the period ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David K. Holeman, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

/s/ David K. Holeman

David K. Holeman

Chief Executive Officer

 

 

Date: October 31, 2024

 

 

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the quarterly report of Whitestone REIT, a Maryland real estate investment trust (the “Company”) on Form 10-Q for the period ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John S. Hogan, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

/s/ John S. Hogan

John S. Hogan

Chief Financial Officer

 

 

Date: October 31, 2024

 

 

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Oct. 28, 2024
Document Information [Line Items]
Entity Central Index Key	0001175535
Entity Registrant Name	Whitestone REIT
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-34855
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	76-0594970
Entity Address, Address Line One	2600 South Gessner, Suite 500
Entity Address, Postal Zip Code	77063
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
City Area Code	713
Local Phone Number	827-9595
Title of 12(b) Security	Common Shares of Beneficial Interest, par value $0.001 per share
Trading Symbol	WSR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		50,646,473

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands		Sep. 30, 2024	Dec. 31, 2023
Property		$ 1,243,067	$ 1,221,466
Accumulated depreciation		(243,500)	(229,767)
Total real estate assets		999,567	991,699
Investment in real estate partnership	[1],[2],[3]	0	31,671
Cash and cash equivalents		2,534	4,572
Restricted cash		0	68
Escrows and deposits		3,667	24,148
Accrued rents and accounts receivable, net of allowance for doubtful accounts		32,541	30,592
Unamortized lease commissions, legal fees and loan costs		14,148	13,783
Prepaid expenses and other assets(1)	[4]	2,826	4,765
Finance lease right-of-use assets		10,449	10,428
Total assets(1)		1,112,561	1,113,239
Liabilities:
Notes payable		633,552	640,172
Accounts payable and accrued expenses(2)	[5]	36,185	36,513
Tenants' security deposits		9,175	8,614
Dividends and distributions payable		6,279	6,025
Finance lease liabilities		789	721
Total liabilities		687,557	693,622
Commitments and contingencies:
Equity:
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of September 30, 2024 and December 31, 2023		0	0
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 50,645,877 and 49,610,831 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		51	50
Additional paid-in capital		636,192	628,079
Accumulated deficit		(216,044)	(216,963)
Accumulated other comprehensive income (loss)		(679)	2,576
Total Whitestone REIT shareholders' equity		419,520	413,742
Noncontrolling interest in subsidiary		5,484	5,875
Total equity		425,004	419,617
Total liabilities and equity(2)		1,112,561	1,113,239
(1) Operating lease right of use assets (net)		67	109
(2) Operating lease liabilities		67	112
Related Party [Member]
Receivable from partnership redemption		15,186	1,513
Other receivables		15,186	1,513
Related Parties [Member]
Liabilities:
Other liabilities		1,577	1,577
Partnership Redemption [Member ]
Receivable from partnership redemption		31,643	0
Other receivables		$ 31,643	$ 0
[1] On December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent Whitestone OP from exercising its contractual Redemption Right, on July 12, 2022, Whitestone OP filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement. On September 8, 2022, Whitestone OP’s Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that Whitestone’s right of redemption is not impaired while the underlying dispute is being considered by the Court. On January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted Whitestone OP from exercising the unfettered contractual redemption right it obtained in connection with its investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed Whitestone OP to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, later enter a monetary judgment against Pillarstone for the difference between the amount Whitestone would have received in or around December 2021 and the current value. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. On March 4, 2024, Pillarstone REIT authorized and filed the Chapter 11 bankruptcy of itself, Pillarstone OP, and the remainder of its special purpose entities in the United States Bankruptcy Court for the Northern District of Texas. As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. We intend to pursue collection of amounts due from Pillarstone OP through all means, including further litigation if necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP. [2] Representing eight property interests and 926,798 square feet of GLA, as of December 31, 2023. Subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for the majority of its investment in Pillarstone OP. We reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income. [3] We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report. [4] Operating lease right of use assets (net) $ 129 $ 124 [5] Operating lease liabilities $ 132 $ 129

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	400,000,000	400,000,000
Common stock, issued (in shares)	50,645,877	49,610,831
Common stock, outstanding (in shares)	50,645,877	49,610,831

Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Rental(1)	$ 38,107	$ 36,667	$ 112,328	$ 108,405
Management, transaction, and other fees	526	467	1,116	1,040
Total revenues	38,633	37,134	113,444	109,445
Depreciation and amortization	8,921	8,332	26,242	24,538
Operating and maintenance	7,303	6,862	20,667	19,847
Real estate taxes	4,838	4,693	12,988	14,168
General and administrative	4,878	5,392	17,610	15,651
Total operating expenses	25,940	25,279	77,507	74,204
Other expenses (income)
Interest Expense, Nonoperating	8,506	8,400	25,813	24,563
Gain on sale of properties	(3,762)	(5)	(10,212)	(9,626)
Loss on disposal of assets	111	480	183	500
Interest, dividend and other investment income	(3)	(11)	(15)	(49)
Total other expenses	4,852	8,864	15,769	15,388
Income before equity investment in real estate partnership and income tax	7,841	2,991	20,168	19,853
Deficit in earnings of real estate partnership	0	(375)	(28)	(1,627)
Provision for income tax	(118)	(95)	(327)	(339)
Net income	7,723	2,521	19,813	17,887
Less: Net income attributable to noncontrolling interests	99	35	257	248
Net income attributable to Whitestone REIT	$ 7,624	$ 2,486	$ 19,556	$ 17,639
Basic Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares (in dollars per share)	$ 0.15	$ 0.05	$ 0.39	$ 0.36
Diluted Earnings Per Share:
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares (in dollars per share)	$ 0.15	$ 0.05	$ 0.38	$ 0.35
Weighted average number of common shares outstanding:
Basic (in shares)	50,297	49,534	50,067	49,472
Diluted (in shares)	51,305	50,637	51,106	50,399
Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 7,723	$ 2,521	$ 19,813	$ 17,887
Other comprehensive income (loss)
Amount Recognized as Comprehensive income	(8,946)	4,094	(3,296)	6,602
Comprehensive income (loss)	(1,223)	6,615	16,517	24,489
Less: Net income attributable to noncontrolling interests	99	35	257	248
Less: Comprehensive income (loss) attributable to noncontrolling interests	(115)	56	(41)	91
Comprehensive income (loss) attributable to Whitestone REIT	(1,207)	6,524	16,301	24,150
Rental revenues	27,114	26,521	81,350	78,780
Recoveries	11,338	10,535	32,009	30,571
Bad debt	(345)	(389)	(1,031)	(946)
Total rental	$ 38,107	$ 36,667	$ 112,328	$ 108,405

Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands		Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Parent [Member]	OP Units [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Dec. 31, 2022		49,423					695
Balance at Dec. 31, 2022		$ 49	$ 624,785	$ (212,366)	$ 5,980	$ 418,448		$ 6,006	$ 424,454
Issuance of shares under dividend reinvestment plan (in shares)		2					0
Issuance of shares under dividend reinvestment plan		$ 0	17	0	0	17		0	17
Share-based compensation			755			755			755
Distributions - per common share / OP unit		0	0	(5,931)	0	(5,931)			(6,014)
Distributions - per common share / OP unit								(83)
Amount Recognized as Comprehensive income		0	0	0	(4,523)	(4,523)		(64)	(4,587)
Net income		$ 0	0	3,847	0	3,847		54	3,901
Distributions - $0.1238 per common share / OP unit								(83)
Balance (in shares) at Mar. 31, 2023		49,425					695
Balance at Mar. 31, 2023		$ 49	625,557	(214,450)	1,457	412,613		5,913	418,526
Balance (in shares) at Dec. 31, 2022		49,423					695
Balance at Dec. 31, 2022		$ 49	624,785	(212,366)	5,980	418,448		6,006	424,454
Amount Recognized as Comprehensive income									6,602
Net income									17,887
Balance (in shares) at Sep. 30, 2023		49,585					693
Balance at Sep. 30, 2023		$ 50	626,815	(212,551)	12,491	426,805		6,077	432,882
Balance (in shares) at Mar. 31, 2023		49,425					695
Balance at Mar. 31, 2023		$ 49	625,557	(214,450)	1,457	412,613		5,913	418,526
Exchange of noncontrolling interest OP units for common shares (in shares)		1					(1)
Exchange of noncontrolling interest OP units for common shares		$ 1	10	0	0	11			0
Exchange of noncontrolling interest OP units for common shares								(11)
Issuance of shares under dividend reinvestment plan (in shares)		2					0
Issuance of shares under dividend reinvestment plan		$ 0	19	0	0	19		0	19
Repurchase of common shares (1) (in shares)		(30)					0
Repurchase of common shares (1)		$ 0	(289)	0	0	(289)		0	(289)
Share-based compensation (in shares)		122
Share-based compensation			725			725			725
Distributions - per common share / OP unit		$ 0	0	(5,943)	0	(5,943)			(6,029)
Distributions - per common share / OP unit								(86)
Amount Recognized as Comprehensive income		0	0	0	6,996	6,996		99	7,095
Net income		$ 0	0	11,306	0	11,306		159	11,465
Distributions - $0.1238 per common share / OP unit								(86)
Balance (in shares) at Jun. 30, 2023		49,520					694
Balance at Jun. 30, 2023		$ 50	626,022	(209,087)	8,453	425,438		6,074	431,512
Exchange of noncontrolling interest OP units for common shares (in shares)		1					(1)
Exchange of noncontrolling interest OP units for common shares		$ 0	5	0	0	5			0
Exchange of noncontrolling interest OP units for common shares								(5)
Issuance of shares under dividend reinvestment plan (in shares)		2					0
Issuance of shares under dividend reinvestment plan		$ 0	19	0	0	19		0	19
Repurchase of common shares (1) (in shares)		(23)					0
Repurchase of common shares (1)		$ 0	(236)	0	0	(236)		0	(236)
Share-based compensation (in shares)		85
Share-based compensation			1,005			1,005			1,005
Distributions - per common share / OP unit		$ 0	0	(5,950)	0	(5,950)			(6,033)
Distributions - per common share / OP unit								(83)
Amount Recognized as Comprehensive income		0	0	0	4,038	4,038		56	4,094
Net income		$ 0	0	2,486	0	2,486		35	2,521
Distributions - $0.1238 per common share / OP unit								(83)
Balance (in shares) at Sep. 30, 2023		49,585					693
Balance at Sep. 30, 2023		$ 50	626,815	(212,551)	12,491	426,805		6,077	432,882
Balance (in shares) at Dec. 31, 2023		49,611					694
Balance at Dec. 31, 2023		$ 50	628,079	(216,963)	2,576	413,742		5,875	419,617
Exchange of noncontrolling interest OP units for common shares (in shares)		44					(44)
Exchange of noncontrolling interest OP units for common shares		$ 0	355	0	0	355			0
Exchange of noncontrolling interest OP units for common shares								(355)
Issuance of shares under dividend reinvestment plan (in shares)		2					0
Issuance of shares under dividend reinvestment plan		$ 0	23	0	0	23		0	23
Repurchase of common shares (1) (in shares)	[1]	(118)					0
Repurchase of common shares (1)	[1]	$ 0	(1,442)	0	0	(1,442)		0	(1,442)
Share-based compensation (in shares)		420
Share-based compensation			861			861			861
Distributions - per common share / OP unit		$ 0	0	(6,175)	0	(6,175)			(6,267)
Distributions - per common share / OP unit								(92)
Amount Recognized as Comprehensive income		0	0	0	4,941	4,941		66	5,007
Net income		$ 0	0	9,340	0	9,340		124	9,464
Distributions - $0.1238 per common share / OP unit								(92)
Balance (in shares) at Mar. 31, 2024		49,959					650
Balance at Mar. 31, 2024		$ 50	627,876	(213,798)	7,517	421,645		5,618	427,263
Balance (in shares) at Dec. 31, 2023		49,611					694
Balance at Dec. 31, 2023		$ 50	628,079	(216,963)	2,576	413,742		5,875	419,617
Amount Recognized as Comprehensive income									(3,296)
Net income									19,813
Balance (in shares) at Sep. 30, 2024		50,646					650
Balance at Sep. 30, 2024		$ 51	636,192	(216,044)	(679)	419,520		5,484	425,004
Balance (in shares) at Mar. 31, 2024		49,959					650
Balance at Mar. 31, 2024		$ 50	627,876	(213,798)	7,517	421,645		5,618	427,263
Issuance of shares under dividend reinvestment plan (in shares)		1					0
Issuance of shares under dividend reinvestment plan		$ 0	19	0	0	19		0	19
Repurchase of common shares (1) (in shares)		(90)					0
Repurchase of common shares (1)		$ 0	(1,199)	0	0	(1,199)		0	(1,199)
Share-based compensation (in shares)		194
Share-based compensation			763			763			763
Distributions - per common share / OP unit		$ 0	0	(6,195)	0	(6,195)			(6,275)
Distributions - per common share / OP unit								(80)
Amount Recognized as Comprehensive income		0	0	0	635	635		8	643
Net income		$ 0	0	2,592	0	2,592		34	2,626
Distributions - $0.1238 per common share / OP unit								(80)
Balance (in shares) at Jun. 30, 2024		50,064					650
Balance at Jun. 30, 2024		$ 50	627,459	(217,401)	8,152	418,260		5,580	423,840
Issuance of shares under dividend reinvestment plan (in shares)		2					0
Issuance of shares under dividend reinvestment plan		$ 0	14	0	0	14		0	14
Share-based compensation			1,181			1,181			1,181
Distributions - per common share / OP unit		0	0	(6,267)	0	(6,267)			(6,347)
Distributions - per common share / OP unit								(80)
Amount Recognized as Comprehensive income		0	0	0	(8,831)	(8,831)		(115)	(8,946)
Net income		$ 0	0	7,624	0	7,624		99	7,723
Issuance of common shares - ATM Program, net of offering costs (in shares)		580					0
Issuance of common shares - ATM Program, net of offering costs		$ 1	7,619	0	0	7,620		0	7,620
Exchange offer costs		$ 0	(81)	0	0	(81)		0	(81)
Distributions - $0.1238 per common share / OP unit								(80)
Balance (in shares) at Sep. 30, 2024		50,646					650
Balance at Sep. 30, 2024		$ 51	$ 636,192	$ (216,044)	$ (679)	$ 419,520		$ 5,484	$ 425,004
[1] The Company acquired common shares held by employees who tendered owned common shares to satisfy the tax withholding on the lapse of certain restrictions on restricted common shares.

Consolidated Statements of Changes in Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Distributions per common share (in dollars per share)	$ 0.1238	$ 0.1238	$ 0.12	$ 0.12	$ 0.12	$ 0.12

Consolidated Statements of Cash Flows (Unaudited) - USD ($)		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income		$ 19,813,000	$ 17,887,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		26,242,000	24,538,000
Amortization of deferred loan costs		823,000	820,000
Gain on sale of properties		(10,212,000)	(9,626,000)
Loss on disposal of assets		183,000	500,000
Bad debt		1,031,000	946,000
Share-based compensation		2,805,000	2,485,000
Deficit in earnings of real estate partnership		28,000	1,627,000
Amortization of right-of-use assets - finance leases		65,000	72,000
Changes in operating assets and liabilities:
Escrows and deposits		6,238,000	2,282,000
Accrued rents and accounts receivable		(2,980,000)	(4,359,000)
Receivable due from related party		(40,000)	(128,000)
Unamortized lease commissions, legal fees and loan costs		(1,992,000)	(2,644,000)
Prepaid expenses and other assets		1,705,000	2,432,000
Accounts payable and accrued expenses		(4,114,000)	(1,011,000)
Payable due to related party		0	16,000
Tenants' security deposits		561,000	17,000
Net cash provided by operating activities		40,156,000	35,854,000
Cash flows from investing activities:
Acquisitions of real estate		(50,137,000)	(25,474,000)
Additions to real estate		(15,485,000)	(12,748,000)
Proceeds from sales of properties		46,444,000	13,447,000
Net cash used in investing activities		(19,178,000)	(24,775,000)
Cash flows from financing activities:
Distributions paid to common shareholders		(18,325,000)	(17,754,000)
Distributions paid to OP unit holders		(240,000)	(249,000)
Proceeds from issuance of common shares, net of offering costs		7,620,000	0
Payments of exchange offer costs		(81,000)	0
Net (payments of) proceeds from credit facility		(17,000,000)	34,000,000
Repayments of notes payable		(47,950,000)	(29,823,000)
Proceeds from notes payable		56,340,000	0
Payments of loan origination costs		(789,000)	0
Repurchase of common shares		(2,641,000)	(525,000)
Payment of finance lease liability		(18,000)	(10,000)
Net cash used in financing activities		(23,084,000)	(14,361,000)
Net decrease in cash, cash equivalents and restricted cash		(2,106,000)	(3,282,000)
Cash, cash equivalents and restricted cash at beginning of period		4,640,000	6,355,000
Cash, cash equivalents and restricted cash at end of period (1)	[1]	2,534,000	3,073,000
Supplemental disclosure of cash flow information:
Cash paid for interest		25,384,000	23,223,000
Cash paid for taxes		432,000	435,000
Non cash investing and financing activities:
Disposal of fully depreciated real estate		29,000	864,000
Financed insurance premiums		2,638,000	3,002,000
Value of shares issued under dividend reinvestment plan		56,000	55,000
Change in fair value of cash flow hedge		(3,296,000)	6,602,000
Accrued capital expenditures		1,439,000	0
Receivable from partnership redemption		31,643,000	0
Recognition of finance lease liability		86,000	0
Cash, cash equivalents and restricted cash
Cash and cash equivalents		2,534,000	2,976,000
Restricted cash		0	97,000
Total cash, cash equivalents and restricted cash		2,534,000	3,073,000
Conversion of OP Units to Common Stock [Member]
Non cash investing and financing activities:
Value of common shares exchanged for OP units		$ 355,000	$ 16,000
[1] For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below.

Note 1 - Interim Financial Statements	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1.  INTERIM FINANCIAL STATEMENTS   The consolidated financial statements included in this report are unaudited; however, amounts presented in the consolidated balance sheet as of December 31, 2023 are derived from our audited consolidated financial statements as of that date.  The unaudited consolidated financial statements as of and for the period ended September 30, 2024 have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information on a basis consistent with the annual audited consolidated financial statements and with the instructions to Form 10-Q.   The consolidated financial statements presented herein reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position of Whitestone and our subsidiaries as of September 30, 2024 and December 31, 2023, and the results of operations for the three and nine month periods ended September 30, 2024 and 2023, the consolidated statements of changes in equity for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 2024 and 2023.  All of these adjustments are of a normal recurring nature.  The results of operations for the interim periods are not necessarily indicative of the results expected for a full year.  The statements should be read in conjunction with the audited consolidated financial statements and the notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2023.   Business.  Whitestone was formed as a real estate investment trust (“REIT”) pursuant to the Texas Real Estate Investment Trust Act on August 20, 1998.  In July 2004, we changed our state of organization from Texas to Maryland pursuant to a merger where we merged directly with and into a Maryland REIT formed for the sole purpose of the reorganization and the conversion of each of the outstanding common shares of beneficial interest of the Texas entity into 1.42857 common shares of beneficial interest of the Maryland entity.  We serve as the general partner of Whitestone REIT Operating Partnership, L.P. (the “Operating Partnership”), which was formed on December 31, 1998 as a Delaware limited partnership.  We currently conduct substantially all of our operations and activities through the Operating Partnership.  As the general partner of the Operating Partnership, we have the exclusive power to manage and conduct the business of the Operating Partnership, subject to certain customary exceptions.  For both periods ended  September 30, 2024 and December 31, 2023, Whitestone wholly owned 55 commercial properties in and around Austin, Dallas-Fort Worth, Houston, Phoenix and San Antonio.   As of September 30, 2024, these properties consist of:   Consolidated Operating Portfolio     • 50 wholly owned properties that meet our Community Centered Properties® strategy; and   Redevelopment, New Acquisitions Portfolio     • five parcels of land held for future development.   Acquired properties are categorized in the new acquisitions portfolio until the earlier of 90% occupancy or 18 months of ownership.   As of September 30, 2024, our ownership in Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or “Pillarstone OP”) no longer represents a majority interest. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. On March 4, 2024, Pillarstone Capital REIT (“Pillarstone REIT”) authorized and filed a Chapter 11 bankruptcy (the “Pillarstone Bankruptcies”) of itself, Pillarstone OP, and all of its remaining special purpose entities in the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”). The Company has filed a claim in the “Pillarstone Bankruptcies” for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our receivable, formerly our equity investment in Pillarstone OP. Please refer to Note 6 in this Quarterly Report on form 10-Q for more information regarding the accounting treatment of the redemption of our OP units in Pillarstone OP.

Note 2 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Significant Accounting Policies [Text Block]	2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES    Basis of Consolidation.  We are the sole general partner of the Operating Partnership and possess full legal control and authority over the operations of the Operating Partnership. As of September 30, 2024 and December 31, 2023, we owned a majority of the partnership interests in the Operating Partnership. Consequently, the accompanying consolidated financial statements include the accounts of the Operating Partnership.   Noncontrolling interest in the accompanying consolidated financial statements represents the share of equity and earnings of the Operating Partnership allocable to holders of partnership interests other than us. Net income or loss is allocated to noncontrolling interests based on the weighted-average percentage ownership of the Operating Partnership during the period. Issuance of additional common shares of beneficial interest in Whitestone (the “common shares”) and units of limited partnership interest in the Operating Partnership that are convertible into cash or, at our option, common shares on a one-for-one basis (the “OP units”) changes the percentage of ownership interests of both the noncontrolling interests and Whitestone.   Estimates regarding Pillarstone OP’s financial condition and results of operations. We rely on the reports furnished by our third-party partners for financial information regarding the Company’s investment in Pillarstone OP. As of September 30, 2024 and December 31, 2023, Pillarstone OP’s financial statements have not been made accessible to us. Consequently, we have estimated the financial status and operational outcomes of Pillarstone OP based on the information accessible to us at the time of this report.   Equity Method. In compliance with Accounting Standards Update (“ASU”) 2014-09 (“Topic 606”) and Accounting Standards Codification (“ASC”) 610, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets,” the Company previously accounted for its investment in Pillarstone OP using the equity method. However, subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for substantially all of its investment in Pillarstone OP. Please refer to Note 6 to the accompanying consolidated financial statements for the full disclosure.   Basis of Accounting.  Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred.   Use of Estimates.   The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that we use include the estimated fair values of properties acquired, the estimated useful lives for depreciable and amortizable assets and costs, the grant date fair value of common share units included in share-based compensation expense, the estimated allowance for doubtful accounts, the estimated fair value of interest rate swaps, the estimates supporting our impairment analysis for the carrying values of our real estate assets, the estimates made regarding Pillarstone REIT Operating Partnership LP’s financial condition and results of operations, and the estimated allowance for credit loss.  Actual results could differ from those estimates.    Reclassifications.  We have reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net income, total assets, total liabilities or equity.   Restricted Cash. We classify all cash pledged as collateral to secure certain obligations and all cash whose use is limited as restricted cash. During 2015, pursuant to the terms of our $15.1 million 4.99% Note, due January 6, 2024 (see Note 7 (Debt)), which was collateralized by our Anthem Marketplace property, we were required by the lenders thereunder to establish a cash management account controlled by the lenders to collect all amounts generated by our Anthem Marketplace property in order to collateralize such promissory note. The note was paid off in January 2024. As of September 30, 2024, we had no restricted cash.   Derivative Instruments and Hedging Activities. We utilize derivative financial instruments, principally interest rate swaps, to manage our exposure to fluctuations in interest rates. We have established policies and procedures for risk assessment, and the approval, reporting and monitoring of derivative financial instruments. We recognize our interest rate swaps as cash flow hedges with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Any ineffective portion of a cash flow hedges’ change in fair value is recorded immediately into earnings. Our cash flow hedges are determined using Level 2 inputs under ASC 820, “Fair Value Measurements and Disclosures.” Level 2 inputs represent quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable. As of September 30, 2024, we consider our cash flow hedges to be highly effective.   Development Properties. Land, buildings and improvements are recorded at cost. Expenditures related to the development of real estate are carried at cost which includes capitalized carrying charges and development costs. Carrying charges (interest, real estate taxes, loan fees, and direct and indirect development costs related to buildings under construction) are capitalized as part of construction in progress. The capitalization of such costs ceases when the property, or any completed portion, becomes available for occupancy. For the three months ended September 30, 2024, approximately $ 150,000 and $ 15,000 in interest expense and real estate taxes, respectively, were capitalized, and for the nine months ended  September 30, 2024, approximately $ 434,000 and $ 137,000 in interest expense and real estate taxes, respectively, were capitalized. For the three months ended September 30, 2023, approximately $ 142,000 and $ 85,000 in interest expense and real estate taxes, respectively, were capitalized and for the nine months ended September 30, 2023, approximately $ 413,000 and $ 230,000 in interest expense and real estate taxes, respectively, were capitalized.     Share-Based Compensation.  From time to time, we award nonvested restricted common share awards or restricted common share unit awards, which may be converted into common shares, to executive officers and employees under our 2018 Long-Term Equity Incentive Ownership Plan (the “2018 Plan”).  Awarded shares and units vest when certain performance conditions are met.  We recognize compensation expense when achievement of the performance conditions is probable based on management’s most recent estimates using the fair value of the shares as of the grant date.  We recognized $ 1,281,000 and $ 1,083,000 in share-based compensation net of forfeitures for the three months ended September 30, 2024 and 2023, respectively, and we recognized $ 3,105,000 and $ 2,712,000 in share-based compensation net of forfeitures for the nine months ended September 30, 2024 and 2023, respectively.   Noncontrolling Interests.  Noncontrolling interests are the portion of equity in a subsidiary not attributable to a parent. Accordingly, we have reported noncontrolling interests in equity on the consolidated balance sheets but separate from Whitestone’s equity.  On the consolidated statements of operations and comprehensive income (loss), subsidiaries are reported at the consolidated amount, including both the amount attributable to Whitestone and noncontrolling interests.  The consolidated statements of changes in equity is included for quarterly financial statements, including beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity.   Accrued Rents and Accounts Receivable. Included in accrued rents and accounts receivable are base rents, tenant reimbursements and receivables attributable to recording rents on a straight-line basis. We review the collectability of charges under our tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. We recognize an adjustment to rental revenue if we deem it probable that the receivable will not be collected. Our review of collectability under our operating leases includes any accrued rental revenues related to the straight-line method of reporting rental revenue. As of September 30, 2024 and December 31, 2023, we had an allowance for uncollectible accounts of  $14.5 million and $13.6 million, respectively. During the three months ended  September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustments, resulting in a $0.3 million and $0.4 million decrease in revenue, respectively, and during the nine months ended September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustment, resulting in a $1.0 million decrease in revenue during both periods. The three months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The three months ended  September 30, 2023 included 17 cash basis tenants, resulting in an increase to rental revenue for straight-line rent adjustment of $0.03 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The nine months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.2 million and a decrease to rental revenue for bad debt adjustments of $0.5 million, and the nine months ended  September 30, 2023 included 17 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.5 million.   Revenue Recognition. All leases on our properties are classified as operating leases, and the related rental income is recognized on a straight-line basis over the terms of the related leases. Differences between rental income earned and amounts due per the respective lease agreements are capitalized or charged, as applicable, to accrued rents and accounts receivable. Percentage rents are recognized as rental income when the thresholds upon which they are based have been met.  Recoveries from tenants for taxes, insurance, and other operating expenses are recognized as revenues in the period the corresponding costs are incurred. We combine lease and nonlease components in lease contracts, which includes combining base rent, recoveries, and percentage rents into a single line item, Rental, within the consolidated statements of operations and comprehensive income (loss). Additionally, we have tenants who pay real estate taxes directly to the taxing authority. We exclude these costs paid directly by the tenant to third parties on our behalf from revenue recognized and the associated property operating expense.   Other property income primarily includes amounts recorded in connection with lease termination fees. We recognize lease termination fees in the year that the lease is terminated and collection of the fee is probable. Amounts recorded within other property income are accounted for at the point in time when control of the goods or services transfers to the customer and our performance obligation is satisfied.   See our Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion on significant accounting policies.

Note 3 - Leases	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Lessee and Lessor, Operating Leases [Text Block]	3.  LEASES    As a Lessor. All leases on our properties are classified as noncancelable operating leases, and the related rental income is recognized on a straight-line basis over the terms of the related leases. Differences between rental income earned and amounts due per the respective lease agreements are capitalized or charged, as applicable, to accrued rents and accounts receivable. Percentage rents are recognized as rental income when the thresholds upon which they are based have been met.  Recoveries from tenants for taxes, insurance, and other operating expenses are recognized as revenues in the period the corresponding costs are incurred. We combine lease and nonlease components in lease contracts, which includes combining base rent, recoveries, and percentage rents into a single line item, Rental, within the consolidated statements of operations and comprehensive income (loss).   A summary of minimum future rents to be received (exclusive of renewals, tenant reimbursements, contingent rents, and collectability adjustments under Topic 842) under noncancelable operating leases in existence as of September 30, 2024 is as follows (in thousands):   Years Ended December 31,   Minimum Future Rents   2024 (remaining)   $ 25,841   2025     97,335   2026     82,891   2027     69,491   2028     55,006   Thereafter     155,061   Total   $ 485,625     As a Lessee. We have office space, automobile, and office machine leases, which qualify as operating leases, with remaining lease terms of one to five years.  As of September 30, 2024, the Company had one ground lease and one office machine lease that were classified as finance leases. The ground lease provides for variable rental payments based on CPI adjustment.    The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by our weighted average incremental borrowing rates to calculate the lease liabilities for our operating leases in which we are the lessee (in thousands):   Years Ended December 31,   Operating Leases     Finance Leases   2024 (remaining)   $ 9     $ 21   2025     30       82   2026     24       83   2027     7       85   2028     1       86   Thereafter     —       2,723   Total undiscounted rental payments     71       3,080   Less imputed interest     4       2,291   Total lease liabilities   $ 67     $ 789     For the three months ended September 30, 2024 and 2023, the total lease costs for operating leases were $ 6,000 and $ 23,000, respectively, and for the finance leases were $ 27,000 and $ 21,000, respectively. For the nine months ended September 30, 2024 and 2023, the total lease costs for operating leases were $ 35,000 and $ 64,000 respectively, and for the finance leases were $ 70,000 and $ 72,000, respectively.   The weighted average remaining lease term for our operating leases and our finance leases was two and 94 years, respectively, at September 30, 2024. We do not include renewal options in the lease term for calculating the lease liability unless we are reasonably certain we will exercise the option or the lessor has the sole ability to exercise the option. The weighted average incremental borrowing rate was 4.5% for our operating leases and 6.1% for our finance leases at September 30, 2024.

Note 4 - Accrued Rents and Accounts Receivable, Net	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	4. ACCRUED RENTS AND ACCOUNTS RECEIVABLE, NET   Accrued rents and accounts receivable, net consists of amounts accrued, billed and due from tenants, allowance for doubtful accounts and other receivables as follows (in thousands):       September 30, 2024     December 31, 2023   Tenant receivables   $ 17,064     $ 16,287   Accrued rents and other recoveries     28,312       26,751   Allowance for doubtful accounts     (14,451 )     (13,570 ) Other receivables     1,616       1,124   Total   $ 32,541     $ 30,592

Note 5 - Unamortized Lease Commissions, Legal Fees and Loan Costs	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Unamortized Lease Commissions and Loan Costs [Text Block]	5. UNAMORTIZED LEASE COMMISSIONS, LEGAL FEES AND LOAN COSTS   Costs which have been deferred consist of the following (in thousands):       September 30, 2024     December 31, 2023   Leasing commissions   $ 20,737     $ 19,462   Deferred legal cost     293       356   Deferred financing cost     4,149       4,149   Total cost     25,179       23,967   Less: leasing commissions accumulated amortization     (8,930 )     (8,744 ) Less: deferred legal cost accumulated amortization     (258 )     (272 ) Less: deferred financing cost accumulated amortization     (1,843 )     (1,168 ) Total cost, net of accumulated amortization   $ 14,148     $ 13,783

Note 6 - Investment in Real Estate Partnership	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	6. INVESTMENT IN REAL ESTATE PARTNERSHIP   On December 8, 2016, we, through our Operating Partnership, entered into a Contribution Agreement (the “Contribution Agreement”) with Pillarstone OP and Pillarstone Capital REIT (“Pillarstone REIT”) pursuant to which we contributed all of the equity interests in four of our wholly-owned subsidiaries that, at the time, owned 14 non-core properties that did not fit our Community Centered Property® strategy (the “Pillarstone Properties”), to Pillarstone OP for aggregate consideration of approximately $84 million, consisting of (1) approximately $18.1 million of Class A units representing limited partnership interests in Pillarstone OP (“Pillarstone OP Units”) and (2) the assumption of approximately $65.9 million of liabilities (collectively, the “Contribution”). As of September 30, 2024, our ownership in Pillarstone OP no longer represents a majority interest. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. As of the date of this filing, we have not received consideration for our redemption of our equity investment in Pillarstone OP as required by the partnership agreement. The Company has filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP.    In connection with the Contribution, Whitestone TRS, Inc., a subsidiary of the Company (“Whitestone TRS”), entered into a management agreement with the entities that own the contributed Pillarstone Properties (collectively, the “Management Agreements”). Pursuant to the Management Agreements, Whitestone TRS agreed to provide certain property management, leasing and day-to-day advisory and administrative services. The Management Agreements were terminated on August 18, 2022.  Prior to the termination of the Management Agreement, we reported approximately $144,000 in property management fee income on a quarterly basis.    The table below presents the real estate partnership investment in which we hold an ownership interest (in thousands):               Company’s Investment as of               September 30, 2024     December 31, 2023   Real estate partnership   Ownership Interest                   Pillarstone OP     81.4%     $ —     $ 31,671   Total real estate partnership(1)(2)(3)           $ —     $ 31,671     (1) Representing eight property interests and 926,798 square feet of GLA, as of December 31, 2023. Subsequent to January 25, 2024, we ceased utilizing the equity method following the exercise of our notice of redemption for the majority of our investment in Pillarstone OP. We reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income.   (2) On December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent us from exercising our contractual Redemption Right, on July 12, 2022, we filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement. On September 8, 2022, our Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that our right of redemption is not impaired while the underlying dispute is being considered by the Court. On January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted us from exercising the unfettered contractual redemption right we obtained in connection with our investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed us to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, later enter a monetary judgment against Pillarstone for the difference between the amount we would have received in or around December 2021 and the current value. On January 25, 2024, we exercised our notice of redemption for substantially all of its investment in Pillarstone OP. On March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies. As of the date of this filing, we have not received consideration for its redemption of our equity investment in Pillarstone OP as required by the partnership agreement. We have filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP.   (3) We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report.   The table below presents our share of net loss from our investment in the real estate partnership which is included in deficit in earnings of real estate partnership, net on our consolidated statements of operations and comprehensive income (loss) (in thousands):       Three Months Ended September 30,     Nine Months Ended September 30,       2024     2023     2024     2023                                     Pillarstone OP   $ —     $ (375 )   $ (28 )   $ (1,627 )   Summarized financial information for our investment in real estate partnership is as follows (in thousands):       September 30, 2024     December 31, 2023   Assets:                 Real estate, net   $ —     $ 47,115   Other assets     —       6,680   Total assets(1)     —       53,795   Liabilities and equity:                 Notes payable     —       14,292   Other liabilities     —       4,040   Equity     —       35,463   Total liabilities and equity(2)     —       53,795   Company’s share of equity     —       28,885   Cost of investment in excess of the Company’s share of underlying net book value     —       2,786   Carrying value of investment in real estate partnership(3)   $ —     $ 31,671     (1) We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated total assets and its components based on the information available to us at the time of this report.   (2) We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated total liabilities and equity and its components based on the information available to us at the time of this report.    (3) We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements as of December 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report.        Three Months Ended September 30,     Nine Months Ended September 30,       2024     2023     01/01/2024-01/25/2024 (2)     2023                                     Revenues   $ —     $ 2,152     $ 591     $ 6,307   Operating expenses     —       (2,372 )     (559 )     (7,584 ) Other expenses     —       (207 )     (56 )     (621 ) Net loss   $ —     $ (427 )   $ (24 )   $ (1,898 )   (1) We rely on reporting provided to us by Pillarstone OP's general partner for financial information regarding our investment in Pillarstone OP. Because Pillarstone OP financial statements for the three and nine months ended September 30, 2024 and 2023 have not been made available to us, we have estimated net loss and its components based on the information available to us at the time of this report.   (2) The estimated net loss and its components are calculated through January 25, 2024, the redemption date.    The amortization of the basis difference between the cost of investment and our share of underlying net book value for the three months ended  September 30, 2024 and 2023 is $0 and $27,000 respectively, and for the nine months ended September 30, 2024 and 2023 is $7,000 and $81,000. We fully amortized the difference into deficit in earnings of real estate partnership on the consolidated statements of operations and comprehensive income (loss).   The Company has evaluated its guarantee to Pillarstone OP pursuant to ASC 460, “Guarantees,” and has determined the guarantee to be a performance guarantee, for which ASC 460 contains initial recognition and measurement requirements, and related disclosure requirements. The Company is obligated in two respects: (i) a noncontingent liability, which represents the Company’s obligation to stand ready to perform under the terms of the guarantee in the event that the specified triggering event(s) occur; and (ii) the contingent liability, which represents the Company’s obligation to make future payments if those triggering events occur. The fair value of our loan guarantee to Pillarstone OP is estimated on a Level 3 basis (as provided by ASC 820), using a probability-weighted discounted cash flow analysis based on a discount rate, discounting the loan balance. The Company recognized a noncontingent liability of $462,000 at the inception of the guarantee at fair value which is recorded on the Company’s consolidated balance sheets, net of accumulated amortization. The Company amortized the guarantee liability into income over seven years. For both three months ended  September 30, 2024 and 2023, the amortization of the guarantee liability was $ 0. For the nine months ended September 30, 2024 and 2023, the amortization of the guarantee liability was $ 0 and $ 18,000, respectively.    Estimates regarding Pillarstone OP's guarantee.  The Company, through its subsidiary Whitestone REIT Operating Partnership, L.P., guaranteed Pillarstone OP’s loan for its Uptown Tower property located in Dallas, Texas, with an aggregate principal amount of $14.4 million as of September 30, 2023.  The loan was also secured by the Uptown Tower property.  The debt matured on October 4, 2023, and was in default, as Pillarstone OP failed to refinance the loan.  On October 24, 2023, the Lender provided notice of a planned foreclosure sale on December 5, 2023.  The Lender also claimed that an additional sum of $4.6 million was due which included default interest of approximately $6.3 million and net credits from escrowed funds and other charges of approximately $1.7 million.    On December 1, 2023, the Company reached an agreement with the Lender that would avoid foreclosure and secure the release of the lien and discharge of the guarantee, and the Company negotiated and satisfied a payoff as of December 4, 2023, in the amount of $13,632,764 (the “DPO Amount”). We paid the DPO amount and will be entitled to assert a subrogation claim against Pillarstone OP. As of September 30, 2024, the DPO amount was recorded as an asset in our financial statement line receivable due from related party.     The DPO Amount included a compromise settlement of approximately $1,688,000 for the disputed default interest and other fees.   On December 1, 2023, Pillarstone OP authorized and filed the Chapter 11 bankruptcy of its special purpose entity borrower that owns Uptown Tower (Whitestone Uptown Tower LLC) in the United States Bankruptcy Court for the Northern District of Texas.   On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP.   On February 9, 2024, the Lender filed suit in New York County, New York against the guarantor Whitestone OP and the Company for alleged amounts due under the guarantee. The compromise settlement is our best estimate of the amount due.   On March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies. As of the date of this filing, Whitestone has not received consideration for our redemption of our equity investment in Pillarstone OP as required by the partnership agreement. The Company has filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs.    On April 24, 2024, the Lender and Pillarstone OP filed a motion with the Bankruptcy Court seeking approval to settle the dispute and dismiss their mutual lawsuits including the lawsuit by the Lender against the Company as Guarantor of the loan. On or before June 10, 2024, Pillarstone OP agreed to pay to the Lender the sum of $1,123,950.24 plus all attorneys’ fees and costs (not to exceed $20,000.00) incurred by the Lender from April 10, 2024 through the date of receipt of such payment. Upon timely receipt of the cash payment from Pillarstone OP, the Lender applied the $13,632,764 tendered to it by Whitestone REIT Operating Partnership, L.P., and the guaranty was subsequently released. On October 2, 2024, the Bankruptcy Court affirmed the Company’s right of subrogation and allowed the Company’s secured claim for the DPO amount.   The Company does not believe a probable loss will be incurred, nor does it anticipate a material adverse effect on its financial position, results of operations, cash flows or liquidity. Therefore, the Company has not recorded a charge as a result of the Pillarstone Bankruptcies.   Accounting treatment of the redemption of our OP units in Pillarstone OP.  On January 25, 2024, we executed an irrevocable redemption of substantially all our investment in Pillarstone OP, converting our equity investment into a receivable. Pillarstone OP conveyed their intention to forego issuing equity, opting instead to liquidate the properties to satisfy creditors, with Whitestone being significantly the largest creditor. Based on insights from our legal team and advisors, we anticipate that the most probable outcome will involve the liquidation of all Pillarstone properties.    The carrying value of our investment in Pillarstone OP was approximately $31.6 million as of January 25, 2024. We assert a claim of $70 million, inclusive of the $13 million default interest payment and accrued interest. It is anticipated that the claim and proceeds from liquidation will surpass the carrying value of our receivable for the redemption of our former equity investment in Pillarstone OP.   Subsequently, we reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income. We will assess the credit losses of the receivable on a quarterly basis.   Any gains will be recognized once the proceeds received exceed our receivable.   This is within the scope of ASC 326, “Financial Instruments - Credit Losses.” The value of the unencumbered assets of Pillarstone OP is significantly in excess of Whitestone’s basis in the account receivable, but the precise value cannot be determined at this time. When applying the estimated loss rate method with a zero loss rate, the Current Expected Credit Losses (“CECL”) are zero according to ASC 326.  We will continue to monitor our legal team's assessment of the bankruptcy case and the value of the assets of Pillarstone OP to evaluate the credit risk of the receivable.

Note 7 - Debt	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Debt Disclosure [Text Block]	7. DEBT   Certain subsidiaries of Whitestone are the borrowers under various financing arrangements. These subsidiaries are separate legal entities, and their respective assets and credit are not available to satisfy the debt of Whitestone or any of its other subsidiaries.   Debt consisted of the following as of the dates indicated (in thousands):   Description   September 30, 2024     December 31, 2023   Fixed rate notes                 $265.0 million, 3.18% plus 1.45% to 2.10% Note, due January 31, 2028 (1)   $ 265,000     $ 265,000   $80.0 million, 3.72% Note, due June 1, 2027     80,000       80,000   $19.0 million 4.15% Note, due December 1, 2024     17,383       17,658   $14.0 million 4.34% Note, due September 11, 2024     —       12,427   $14.3 million 4.34% Note, due September 11, 2024     —       13,257   $15.1 million 4.99% Note, due January 6, 2024     —       13,350   $50.0 million, 5.09% Note, due March 22, 2029 (Series A)     35,714       42,857   $50.0 million, 5.17% Note, due March 22, 2029 (Series B)     50,000       50,000   $2.5 million 7.79% Note, due February 28, 2025     1,133       —   $50.0 million, 3.71% plus 1.50% to 2.10% Note, due September 16, 2026 (2)     50,000       50,000   $56.3 million, 6.23% Note, due July 31, 2031     56,340       —   Floating rate notes                 Unsecured line of credit, SOFR plus 1.50% to 2.10%, due September 16, 2026     79,000       96,000   Total notes payable principal     634,570       640,549   Less deferred financing costs, net of accumulated amortization     (1,018 )     (377 ) Total notes payable   $ 633,552     $ 640,172     (1) Promissory note includes an interest rate swap that fixes the Secured Overnight Financing Rate (“SOFR”) portion of the term loan at an interest rate of 2.16% through October 28, 2022, 2.76% from October 29, 2022 through January 31, 2024, and 3.32% beginning February 1, 2024 through January 31, 2028.   (2) A portion of the unsecured line of credit includes an interest rate swap to fix the SOFR portion of the loan at 3.71%.   On June 21, 2024, Whitestone REIT, operating through its subsidiaries Whitestone Strand LLC, Whitestone Las Colinas Village LLC, and Whitestone Seville, LLC (collectively, the “Borrower”), entered into a loan agreement (the “Loan Agreement”) with Nationwide Life Insurance Company (the “Lender”) for a mortgage loan in the principal amount of $56,340,000 (the “Loan”).   The Loan provides for a fixed interest rate of 6.23% per annum. Payments commence on August 1, 2024, and are due on the first day of each calendar month thereafter through July 1, 2031, with interest-only payments for the first 36 months. Monthly payments consist of principal and interest based on a 30-year amortization schedule beginning on August 1, 2027. The Loan may be prepaid in full but not in part, provided that, as conditions precedent, Borrower: (i) gives Lender not less than fifteen (15) days prior notice of Borrower’s intention to prepay the Loan; (ii) pays to Lender the prepayment premium as set forth in the Loan Agreement, if any, then due and payable to Lender; and (iii) pays to Lender all other amounts then due under the loan documents. No prepayment premium is required for prepayments in full made on or after six months prior to the maturity date.   The Loan is a non-recourse loan secured by three of the Company’s properties including their related equipment, fixtures, personal property, and other assets, and a limited carve-out guarantee by the Company’s operating partnership.   The loan documents contain customary terms and conditions, including without limitation affirmative and negative covenants such as information reporting and insurance requirements. The loan documents also contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants, and bankruptcy or other insolvency events. Upon the occurrence of an event of default, the Lender is entitled to accelerate all obligations of the Borrower. The Lender will also be entitled to receive the entire unpaid principal balance at a default rate.   The Loan proceeds will be used to pay down the Borrower’s existing floating rate indebtedness.   On March 22, 2019, we, through our Operating Partnership, entered into a Note Purchase and Guarantee Agreement (as amended from time to time, the “Note Agreement”) together with certain subsidiary guarantors as initial guarantor parties thereto (the “Subsidiary Guarantors”) and The Prudential Insurance Company of America and the various other purchasers named therein (collectively, the “Purchasers”) providing for the issuance and sale of $100 million of senior unsecured notes of the Operating Partnership, of which (i) $50 million are designated as 5.09% Series A Senior Notes due March 22, 2029 (the “Series A Notes”) and (ii) $50 million are designated as 5.17% Series B Senior Notes due March 22, 2029 (the “Series B Notes” and, together with the Series A Notes, the “Notes”) pursuant to a private placement that closed on March 22, 2019 (the “Private Placement”). Obligations under the Notes are unconditionally guaranteed by the Company and by the Subsidiary Guarantors.   On December 16, 2022, we through our Operating Partnership, amended the Note Agreement, pursuant to the terms and conditions of that certain Amendment No. 1 to Note Purchase and Guaranty Agreement, by and among the Company and the Operating Partnership, together with certain subsidiary guarantors as initial guarantor parties thereto and The Prudential Insurance Company of America and the various other purchasers named therein, for the purpose of conforming certain covenants and defined terms contained in the Note Agreement with the 2022 Facility (defined below).   The principal of the Series A Notes began to amortize on March 22, 2023 with annual principal payments of approximately $7.1 million. The principal of the Series B Notes will begin to amortize on March 22, 2025 with annual principal payments of $10.0 million. The Notes will pay interest quarterly on the 22nd day of March, June, September and December in each year until maturity.   The Operating Partnership may prepay at any time all, or from time to time part of, the Notes, in an amount not less than $1,000,000 in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus a make-whole amount. The make-whole amount is equal to the excess, if any, of the discounted value of the remaining scheduled payments with respect to the Notes being prepaid over the aggregate principal amount of such Notes (as described in the Note Agreement). In addition, in connection with a Change of Control (as defined in the Note Agreement), the Operating Partnership is required to offer to prepay the Notes at 100% of the principal amount plus accrued and unpaid interest thereon.   The Note Agreement contains representations, warranties, covenants, terms and conditions customary for transactions of this type and substantially similar to the Operating Partnership’s existing senior revolving credit facility, including limitations on liens, incurrence of investments, acquisitions, loans and advances and restrictions on dividends and certain other restricted payments. In addition, the Note Agreement contains certain financial covenants substantially similar to the Operating Partnership’s existing senior revolving credit facility, including the following:     • maximum total indebtedness to total asset value ratio of 0.60 to 1.00;     • maximum secured debt to total asset value ratio of 0.40 to 1.00;     • minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00;     • maximum secured recourse debt to total asset value ratio of 0.15 to 1.00;      • maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortization) of 75% of the Company's total net worth as of December 31, 2021 plus 75% of the net proceeds from additional equity offerings (as defined therein); and     • minimum adjusted property NOI to implied unencumbered debt service ratio of 1.50 to 1.00.   In addition, the Note Agreement contains a financial covenant requiring that maximum unsecured indebtedness not exceed the ratio of unsecured indebtedness to unencumbered asset pool of 0.60 to 1.00. That covenant is substantially similar to the borrowing base concept contained in the Operating Partnership’s existing senior revolving credit facility.   The Note Agreement also contains default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-performance of covenants, cross-defaults with other indebtedness and guarantor defaults. The occurrence of an event of default under the Note Agreement could result in the Purchasers accelerating the payment of all obligations under the Notes. The financial and restrictive covenants and default provisions in the Note Agreement are substantially similar to those contained in the Operating Partnership’s existing credit facility.   Net proceeds from the Private Placement were used to refinance existing indebtedness. The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Notes were sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.   On September 16, 2022, we, through our Operating Partnership, entered into an unsecured credit facility (the “2022 Facility”) pursuant to that certain Third Amended and Restated Credit Agreement, by and among the Operating Partnership, the Company and certain subsidiaries of the Company, as guarantors signatory thereto, the lenders party thereto, Bank of Montreal, as administrative agent (the “Administrative Agent”), Truist Bank, as syndication agent, and BMO Capital Markets Corp., Truist Bank, Capital One, National Association, and U.S. Bank National Association, as co-lead arrangers and joint book runners (as amended from time to time, the “Credit Agreement”). The 2022 Facility replaced the Company’s previous unsecured revolving credit facility, dated January 31, 2019 (the “2019 Facility”).    On October 7, 2024, we, through our Operating Partnership, entered into the First Amendment to Third Amended and Restated Credit Agreement and Incremental Term Loan Joinder (the “Amendment”) among the Operating Partnership, the Company and certain subsidiaries of the Company, as guarantors signatory thereto, the Administrative Agent, and L/C Issuer and Associated Bank, National Association, which amends the Credit Agreement.   The Amendment, among other things, establishes the Series One Incremental Term Loan (defined below) consistent with the existing Term Loan (defined below). The Series One Incremental Term Loan accrues interest (at the Operating Partnership’s option) at a Base Rate (defined below) or Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin based upon the Operating Partnership’s then existing total leverage and is subject to adjustment as set forth in the Credit Agreement. In addition, the Operating Partnership entered into an interest rate swap to fix the interest rate on the Series One Incremental Term Loan at 3.665% plus bank credit spreads (that are currently 1.5%, through January 31, 2028), or an all-in rate of 5.165%.   The 2022 Facility is comprised of the following three tranches of indebtedness:     • $250.0 million unsecured revolving credit facility with a maturity date of September 16, 2026 (the “2022 Revolver”);     • $265.0 million unsecured term loan with a maturity date of January 31, 2028 (the “Term Loan”);     • $20 million unsecured term loan with a maturity date of January 31, 2028 (the “Series One Incremental Term Loan”), effective October 7, 2024.   Borrowings under the 2022 Facility accrue interest (at the Operating Partnership’s option) at a Base Rate or an Adjusted Term SOFR plus an applicable margin based upon our then existing total leverage. “Base Rate” means, for any day, the higher of: (a) the Administrative Agent’s prime commercial rate, (b) the sum of (i) the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York for such day, plus (ii) 0.50%, or (c) the sum of (i) Adjusted Term SOFR for a one-month tenor in effect on such day plus (ii) 1.10%.   As of September 30, 2024, the interest rate on the 2022 Revolver was 6.80%. Based on our current leverage ratio, the revolver has an interest rate of Adjusted Term SOFR plus 1.45%. In addition, we entered into interest rate swaps to fix the interest rates on the Term Loan. The Term Loan with the swaps has the following interest rates:     • 2.16% plus spreads ranging from 1.35% to 2%, through October 28, 2022     • 2.80% plus spreads ranging from 1.35% to 2%, from October 29, 2022 through January 31, 2024     • 3.42% plus spreads ranging from 1.35% to 2%, from February 1, 2024 through January 31, 2028     As of September 30, 2024, the Term Loan with the swaps had a spread of 1.40%.   The Credit Agreement also has a pricing provision where the applicable margin can be adjusted by an aggregate 0.02% per annum based on the Company’s performance on certain sustainability performance targets.    The 2022 Facility includes an accordion feature that allows the Operating Partnership to increase the borrowing capacity by an aggregate amount equal to $200.0 million, upon the satisfaction of certain conditions. As of September 30, 2024, subject to any potential future paydowns or increases in the borrowing base, we have $121.0 million remaining availability under the 2022 Revolver. As of September 30, 2024, $394.0 million was drawn on the 2022 Facility and our unused borrowing capacity was $121.0 million, assuming that we use the proceeds of the 2022 Facility to acquire properties, or to repay debt on properties, that are eligible to be included in the unsecured borrowing base.    The Company, each direct and indirect material subsidiary of the Operating Partnership and any other subsidiary of the Operating Partnership that is a guarantor under any unsecured ratable debt will serve as a guarantor for funds borrowed by the Operating Partnership under the 2022 Facility. The Credit Agreement contains customary terms and conditions, including, without limitation, customary representations and warranties and affirmative and negative covenants including, without limitation, information reporting requirements, limitations on investments, acquisitions, loans and advances, mergers, consolidations and sales, incurrence of liens, dividends and restricted payments. In addition, the Credit Agreement contains certain financial covenants including the following:     • maximum total indebtedness to total asset value ratio of 0.60 to 1.00;     • maximum secured debt to total asset value ratio of 0.40 to 1.00;     • minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges ratio of 1.50 to 1.00;     • maximum secured recourse debt to total asset value ratio of 0.15 to 1.00;      • maintenance of a minimum tangible net worth (adjusted for accumulated depreciation and amortization) of $449 million plus 75% of the net proceeds from additional equity offerings (as defined therein);     • minimum adjusted property net operating income to implied unencumbered debt service of 1.50 to 1.00; and     • maximum unsecured indebtedness to unencumbered asset pool value ratio of 0.60 to 1.00.     As of September 30, 2024, our $153.72 million in secured debt was collateralized by five properties with a carrying value of $242.7 million.  Our loans contain restrictions that would require the payment of prepayment penalties for the acceleration of outstanding debt and are secured by deeds of trust on certain of our properties and by assignment of the rents and leases associated with those properties. As of September 30, 2024, we were in compliance with all loan covenants.   Scheduled maturities of our outstanding debt as of September 30, 2024 were as follows (in thousands):    Year   Amount Due   2024 (remaining)   $ 18,062   2025     17,596   2026     146,143   2027     97,414   2028     282,823   Thereafter     72,532   Total   $ 634,570

Note 8 - Derivatives and Hedging Activities	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	8.  DERIVATIVES AND HEDGING ACTIVITIES   The fair value of our interest rate swaps is as follows (in thousands):       September 30, 2024   Balance Sheet Location   Estimated Fair Value   Accounts payable and accrued expenses   $ (682 )         December 31, 2023   Balance Sheet Location   Estimated Fair Value   Prepaid expenses and other assets   $ 2,613     On March 31, 2023, we, through our Operating Partnership, entered into an interest rate swap of $50 million (“Revolver Swap”) with Bank of Montreal that fixed the unhedged SOFR portion of the variable rate debt at 3.71%. Pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned $10.0 million of the swap to U.S. Bank, $10.0 million of the swap to Capital One, $12.5 million of the swap to SunTrust Bank, and $2.5 million of the swap to Associated Bank. The swap began on March 31, 2023 and will mature on September 16, 2026. We designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The Company does not expect any amount of the existing gains or losses to be reclassified into earnings within the next 12 months.   On  September 16, 2022, we, through our Operating Partnership, entered an interest rate swap with Bank of Montreal that fixed the unhedged SOFR portion of Term Loan under the 2022 Facility at 3.32%. The notional amount of the swap begins at $100 million on  October 29, 2022, and increases to $265 million on  February 1, 2024, maturing on  January 31, 2028. Pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned beginning and ending notionals of $20.7 million and $54.8 million of the swap, respectively, to U.S. Bank, National Association, beginning and ending notionals of $25.4 million and $67.2 million of the swap, respectively, to Truist Bank, beginning and ending notionals of $20.7 million and $54.8 million of the swap, respectively, to Capital One, National Association, and beginning and ending notionals of $5.9 million and $15.7 million of the swap, respectively, to Associated Bank. See Note 7 (Debt) for additional information regarding the 2022 Facility. We designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The Company does not expect any amount of the existing gains or losses to be reclassified into earnings within the next 12 months.   On  January 31, 2019, we, through our Operating Partnership, entered into an interest rate swap of $165 million with Bank of Montreal that fixed the LIBOR portion of our $165 million term loan under the 2019 Facility at 2.43%. Pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned $32.6 million of the swap to U.S. Bank, National Association, $29.4 million of the swap to Regions Bank, $40.0 million of the swap to SunTrust Bank, and $15.0 million of the swap to Associated Bank. Effective September 7, 2022, Regions Bank novated $29.4 million of the swap to Bank of Montreal.  See Note 7 (Debt) for additional information regarding the 2019 Facility. The swap began on  February 8, 2021 and matured on  January 31, 2024. Effective September 16, 2022, our contracts indexed to LIBOR were converted to SOFR. We designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value to be recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings.     A summary of our interest rate swap activity is as follows (in thousands):       Amount Recognized as Comprehensive Income (Loss)   Location of Income Recognized in Earnings   Amount of Income Recognized in Earnings (1)   Three Months Ended September 30, 2024   $ (8,946 ) Interest expense   $ 1,556   Three Months Ended September 30, 2023   $ 4,094   Interest expense   $ 1,929                       Nine Months Ended September 30, 2024   $ (3,296 ) Interest expense   $ 4,804   Nine Months Ended September 30, 2023   $ 6,602   Interest expense   $ 4,833     (1) There was no ineffective portion of our interest rate swaps to recognize in earnings for the three and nine months ended September 30, 2024 and 2023.

Note 9 - Earnings Per Share	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	9.  EARNINGS PER SHARE   Basic earnings per share for our common shareholders is calculated by dividing net income excluding the net income attributable to unvested restricted common shares and the net income attributable to noncontrolling interests, by our weighted average common shares outstanding during the period.  Diluted earnings per share is computed by dividing the net income attributable to common shareholders, excluding the net income attributable to unvested restricted common shares and the net income attributable to noncontrolling interests, by the weighted average number of common shares including any dilutive unvested restricted common shares.   Certain of our performance-based restricted common shares are considered participating securities that require the use of the two-class method for the computation of basic and diluted earnings per share.  During the three months ended September 30, 2024 and 2023, 649,200 and 693,595 OP units, respectively, were excluded from the calculation of diluted earnings per share because their effect would be anti-dilutive, and during the nine months ended September 30, 2024 and 2023, 653,990 and 694,054 OP units, respectively, were excluded from the calculation of diluted earnings per share because their effect would be anti-dilutive         Three Months Ended September 30,     Nine Months Ended September 30,   (in thousands, except per share data)   2024     2023     2024     2023   Numerator:                                 Net income   $ 7,723     $ 2,521     $ 19,813     $ 17,887   Less: Net income attributable to noncontrolling interests     (99 )     (35 )     (257 )     (248 ) Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares   $ 7,624     $ 2,486     $ 19,556     $ 17,639                                     Denominator:                                 Weighted average number of common shares - basic     50,297       49,534       50,067       49,472   Effect of dilutive securities:                                 Unvested restricted shares     1,008       1,103       1,039       927   Weighted average number of common shares - dilutive     51,305       50,637       51,106       50,399                                     Earnings Per Share:                                 Basic:                                 Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares   $ 0.15     $ 0.05     $ 0.39     $ 0.36   Diluted:                                 Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares   $ 0.15     $ 0.05     $ 0.38     $ 0.35

Note 10 - Income Taxes	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	10. INCOME TAXES    With the exception of our taxable REIT subsidiaries, federal income taxes are generally not provided because we intend to and believe we continue to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), and because we have distributed and intend to continue to distribute all of our taxable income to our shareholders.  As a REIT, we must distribute at least 90% of our REIT taxable income to our shareholders and meet certain income sources and investment restriction requirements.  In addition, REITs are subject to a number of organizational and operational requirements.  If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate tax rates.   We are subject to the Texas Margin Tax, which is computed by applying the applicable tax rate (0.75% for us) to the profit margin, which generally will be determined for us as total revenue less a 30% standard deduction.  Although the Texas Margin Tax is not an income tax, FASB ASC 740, “Income Taxes” applies to the Texas Margin Tax.  For the three months ended September 30, 2024 and 2023, we recognized approximately $ 117,000 and $ 95,000, respectively, in margin tax provision, and for the nine months ended September 30, 2024 and 2023, we recognized approximately $ 348,000 and $ 339,000, respectively.

Note 11 - Equity	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Equity [Text Block]	11.  EQUITY    Common Shares            Under our declaration of trust, as amended, we have authority to issue up to 400,000,000 common shares of beneficial interest, $0.001 par value per share, and up to 50,000,000 preferred shares of beneficial interest, $0.001 par value per share.   Equity Offerings    On May 20, 2022, our universal shelf registration statement on Form S-3 (File No. 333-264881) was declared effective by the SEC (the “Registration Statement”), which registers the issuance and sale by us of up to $500 million in securities from time to time, including common shares, preferred shares, debt securities, depositary shares and subscription rights.   On September 9, 2022, we entered into eleven equity distribution agreements with certain sales agents names therein for an at-the-market equity distribution program (the “2022 equity distribution agreements”) providing for the issuance and sale of up to an aggregate of $100 million of the Company’s common shares pursuant to our Registration Statement. Actual sales will depend on a variety of factors determined by us from time to time, including (among others) market conditions, the trading price of our common shares, capital needs and our determinations of the appropriate sources of funding for us, and will be made in transactions that will be deemed to be “at-the-market” offerings as defined in Rule 415 under the Securities Act. We have no obligation to sell any of our common shares and can at any time suspend offers under the 2022 equity distribution agreements or terminate the 2022 equity distribution agreements.   For both three and nine months ended September 30, 2024, we sold 579,964 common shares under the 2022 equity distribution agreement, with net proceeds to us of approximately $7.6 million. In connection with such sales, we paid compensation of approximately $116,000 to the sales agents. For both three and nine months ended September 2023, we did not sell shares under the 2022 equity distribution agreements.    Operating Partnership Units    Substantially all of our business is conducted through our Operating Partnership.  We are the sole general partner of the Operating Partnership.  As of September 30, 2024, we owned a 98.7% interest in the Operating Partnership.   Limited partners in the Operating Partnership holding OP units have the right to redeem their OP units for cash or, at our option, common shares at a ratio of one OP unit for one common share.  Distributions to OP unit holders are paid at the same rate per unit as distributions per share to holders of Whitestone common shares.  As of September 30, 2024 and December 31, 2023, there were 51,174,240 and 50,182,938 OP units outstanding, respectively.  We owned 50,525,040 and 49,489,991 OP units as of September 30, 2024 and December 31, 2023, respectively. The balance of the OP units is owned by third parties, including certain members of our Board of Trustees.  Our weighted average share ownership in the Operating Partnership was approximately 98.7% and 98.6% for the three months ended September 30, 2024 and 2023, respectively, and approximately 98.7% and 98.6% for the nine months ended September 30, 2024 and 2023, respectively. During the three months ended  September 30, 2024 and 2023, 0 and 548 OP units, respectively, were redeemed for an equal number of common shares, and during the nine months ended September 30, 2024 and 2023, 43,747 and 1,423 OP units, respectively, were redeemed for an equal number of common shares.   Distributions    The following table summarizes the cash distributions paid or payable to holders of common shares and to holders of noncontrolling OP units during each quarter of 2023 and the nine months ended September 30, 2024 (in thousands, except per share/per OP unit data):       Common Shares     Noncontrolling OP Unit Holders     Total   Quarter Paid   Distributions Per Common Share     Amount Paid     Distributions Per OP Unit     Amount Paid     Amount Paid   2024                                         Third Quarter   $ 0.1238     $ 6,194     $ 0.1238     $ 80     $ 6,274   Second Quarter     0.1238       6,162       0.1238       80       6,242   First Quarter     0.1200       5,969       0.1200       80       6,049   Total   $ 0.3676     $ 18,325     $ 0.3676     $ 240     $ 18,565                                             2023                                         Fourth Quarter   $ 0.1200     $ 5,930     $ 0.1200     $ 83     $ 6,013   Third Quarter     0.1200       5,928       0.1200       83       6,011   Second Quarter     0.1200       5,913       0.1200       83       5,996   First Quarter     0.1200       5,913       0.1200       83       5,996   Total   $ 0.4800     $ 23,684     $ 0.4800     $ 332     $ 24,016

Note 12 - Incentive Share Plan	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	12.  INCENTIVE SHARE PLAN    The Company’s 2008 Long-Term Equity Incentive Plan (as amended, the “2008 Plan”) expired in July 2018. At the Company’s annual meeting of shareholders on May 11, 2017, our shareholders voted to approve the 2018 Long-Term Equity Incentive Ownership Plan (the “2018 Plan”). The 2018 Plan provides for the issuance of up to 3,433,831 common shares and OP units pursuant to awards under the 2018 Plan. The 2018 Plan became effective on July 30, 2018, which is the day after the 2008 Plan expired.   The Compensation Committee administered the 2008 Plan and administers the 2018 Plan except, in each case, with respect to awards to non-employee trustees, for which the 2008 Plan was and the 2018 Plan is administered by the Board of Trustees. The Compensation Committee is authorized to grant share options, including both incentive share options and non-qualified share options, as well as share appreciation rights, either with or without a related option. The Compensation Committee is also authorized to grant restricted common shares, restricted common share units, performance awards and other share-based awards. On September 6, 2017, the Compensation Committee approved the grant of an aggregate of 965,000 performance-based restricted common share units under the 2008 Plan. These units, which only vest immediately prior to the consummation of a Change in Control (as defined in the 2008 Plan) occurring on or before September 30, 2024 (the “CIC Units”), were granted to certain of our employees. Since the Change in Control did not occur on or before September 30, 2024, all 455,000 CIC Units have been forfeited.              On June 30, 2021, the Compensation Committee approved the grant of an aggregate of 433,200 TSR Units and 433,200 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $4.17 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2021 grant date to the end of the performance period, December 31, 2023. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $7.51 and vest annually in three equal installments. The 433,200 TSR Units granted on June 30, 2021 include 111,465 TSR Units that will be converted into the right to receive cash in the amount of the fair market value of the common shares to the extent that common shares are not available for issuance under the 2018 Plan. On  January 1, 2024, the remaining unvested 210,400 TSR units that were granted on  June 30, 2021 vested at 200% achievement into 420,800 common shares.    On September 30, 2021, the Compensation Committee approved the grant of an aggregate of 5,500 time-based restricted common share units under the 2018 Plan to certain of our employees. The time-based common share units had a grant date fair value of $9.06 each and vest annually in three equal installments.   On March 28, 2022, the Compensation Committee approved the grant of an aggregate of 162,556 TSR Units and 162,556 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $13.74 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2022 grant date to the end of the performance period, December 31, 2024. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $9.94 and vest annually in three equal installments.   On March 7, 2023, the Compensation Committee approved the grant of an aggregate of 228,025 TSR Units and 228,025 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $9.55 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2023 grant date to the end of the performance period, December 31, 2025. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $8.72 and vest annually in three equal installments.   On March 4, 2024, the Compensation Committee approved the grant of an aggregate of 203,518 TSR Units and 169,065 time-based restricted common share units under the 2018 Plan to certain of our employees. Vesting of the TSR Units is contingent upon achieving Total Shareholder Return relative to the peer group defined in the TSR Unit award agreements over a three-year performance period. At the end of the performance period, the number of common shares awarded for each vested TSR Unit will vary from 0% to 200% depending on the Company’s TSR Peer Group Ranking. Continued employment is required through the vesting date. The grant date fair value for each TSR Unit of $15.12 was determined using the Monte Carlo simulation method and is being recognized as share-based compensation expense ratably from the June 30, 2024 grant date to the end of the performance period, December 31, 2026. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. The time-based restricted common share units have a grant date fair value of $12.29 and vest annually in three equal installments.     A summary of the share-based incentive plan activity as of and for the nine months ended September 30, 2024 is as follows:                Weighted Average               Grant Date       Shares     Fair Value   Non-vested at January 1, 2023     1,452,433     $ 10.12   Granted     372,583       13.84   Vested     (404,171 )     6.30   Forfeited     (475,604 )     12.94   Non-vested at September 30, 2024     945,241       11.80   Available for grant at September 30, 2024     772,581             A summary of our non-vested and vested shares activity for the nine months ended September 30, 2024 and years ended December 31, 2023 and 2022 is presented below:       Shares Granted     Shares Vested       Non-Vested Shares Issued     Weighted Average Grant-Date Fair Value     Vested Shares     Total Vest-Date Fair Value                               (in thousands)   Nine Months Ended September 30, 2024     372,583     $ 13.84       (404,171 )   $ 2,546   Year Ended December 31, 2023     480,184     $ 9.30       (231,600 )   $ 1,841   Year Ended December 31, 2022     360,334     $ 11.61       (519,003 )   $ 3,442     Total compensation recognized in earnings for share-based payments was $ 1,281,000 and $ 1,083,000 for the three months ended September 30, 2024 and 2023, respectively, and $ 3,105,000 and $ 2,712,000 for the nine months ended September 30, 2024 and 2023, respectively.   Based on our current financial projections, we expect approximately 100% of the unvested awards to vest over the next 33 months. As of September 30, 2024, there was approximately $4.0 million in unrecognized compensation cost related to outstanding non-vested TSR Units, which are expected to vest over a period of 27 months, and approximately $3.4 million in unrecognized compensation cost related to outstanding non-vested time-based shares, which are expected to be recognized over a period of approximately 33 months beginning on October 1, 2024.   We expect to record approximately $4.5 million in non-cash share-based compensation expense in 2024 and $6.3 million subsequent to 2024. The unrecognized share-based compensation cost is expected to vest over a weighted average period of 25 months. The dilutive impact of the performance-based shares will be included in the denominator of the earnings per share calculation beginning in the period that the performance conditions are expected to be met. The dilutive impact of the TSR Units is based on the Company’s TSR Peer Group Ranking as of the reporting date and weighted according to the number of days outstanding in the period. As of September 30, 2024, the TSR Peer Group Ranking called for attainment of 200%, 150%, and 0% for the shares issued in 2022, 2023, and 2024, respectively.

Note 13 - Grants to Trustees	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Trustee Incentive Shares [Text Block]	13. GRANTS TO TRUSTEES   On  December 20, 2023, five independent trustees and one trustee emeritus were granted a total of 24,134 common shares, which vest immediately and are prorated based on date appointed. The 24,134 common shares granted to our trustees had a grant fair value of $12.44 per share. The fair value of the shares granted during the year ended  December 31, 2023 was determined using quoted prices available on the date of grant.

Note 14 - Segment Information	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	14. SEGMENT INFORMATION   Historically, our management has not differentiated results of operations by property type or location and, therefore, does not present segment information.

Note 15 - Real Estate	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Real Estate Disclosure [Text Block]	15. REAL ESTATE   Property Acquisitions.    On   April 5, 2024, we acquired Scottsdale Commons, a property that meets our Community Centered Property® strategy, for $22.2 million in cash and net prorations. Scottsdale Commons, a 69,482 square foot property, was 96.6% leased at the time of purchase and is located in Scottsdale, Arizona. The funding for this acquisition was provided by the Company’s credit facility.   On   April 1, 2024, we acquired Anderson Arbor Pad, a development parcel that meets our Community Centered Property® strategy, for $0.9 million in cash and net prorations. Anderson Arbor Pad is located in Austin, Texas. The funding for this acquisition was provided by the Company’s credit facility.   On February 20, 2024, we acquired Garden Oaks Shopping Center, a property that meets our Community Centered Property® strategy, for $27.2 million in cash and net prorations. Garden Oaks Shopping Center, a 106,858 square foot property, was 95.8% leased at the time of purchase and is located in Houston, Texas. The funding for this acquisition was provided by the Company’s credit facility.   On June 12, 2023, we acquired Arcadia Towne Center, a property that meets our Community Centered Property® strategy, for $25.5 million in cash and net prorations. Arcadia Towne Center, a 69,503 square foot property, was 100% leased at the time of purchase and is located in Phoenix, Arizona. The funding for this acquisition was provided by the Company’s credit facility.   Property dispositions.    On August 9, 2024, we completed the sale of Fountain Hills Plaza along with the adjacent parcel of development land, located in Phoenix, Arizona, for $21.3 million. We recorded a gain on sale of $3.6 million. We have not included Fountain Hills Plaza in discontinued operations as it did not meet the definition of discontinued operations.   On March 27, 2024, we completed the sale of Mercado at Scottsdale Ranch, located in Phoenix, Arizona, for $26.5 million. We recorded a gain on sale of $6.6 million. We have not included Mercado at Scottsdale Ranch in discontinued operations as it did not meet the definition of discontinued operations.    On December 20, 2023, we completed the sale of Spoerlein Commons, located in Buffalo Grove, Illinois, for $7.4 million. We recorded a loss on sale of $0.7 million. We have not included Spoerlein in discontinued operations as it did not meet the definition of discontinued operations.    On June 30, 2023, we completed the sale of Westchase, located in Houston, Texas, for $7.8 million. We recorded a gain on sale of $4.6 million. We have not included Westchase in discontinued operations as it did not meet the definition of discontinued operations.    On June 30, 2023, we completed the sale of Sunridge, located in Houston, Texas, for $6.7 million. We recorded a gain on sale of $5.0 million. We have not included Sunridge in discontinued operations as it did not meet the definition of discontinued operations.

Note 16 - Related Party Transactions	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	16.  RELATED PARTY TRANSACTIONS   Former Executives, Trustee, and Their Ownership Interests in Pillarstone REIT. Prior to his employment termination on January 18, 2022, Mr. James C. Mastandrea, the former Chairman and Chief Executive Officer of Whitestone REIT, also served as the Chairman and Chief Executive Officer of Pillarstone REIT and beneficially owns approximately 66.7% of the outstanding equity in Pillarstone REIT (when calculated in accordance with Rule 13d-3(d)(1) under the Exchange Act of 1934, as amended (the “Exchange Act”)). He resigned as a member of the Board of Whitestone REIT on April 18, 2022. Prior to his employment termination on February 9, 2022, Mr. John J. Dee, the Company’s former Chief Operating Officer and Corporate Secretary, also served as the Senior Vice President and Chief Financial Officer of Pillarstone REIT and beneficially owns approximately 20.0% of the outstanding equity in Pillarstone REIT (when calculated in accordance with Rule 13d-3(d)(1) under the Exchange Act). In addition, Mr. Paul T. Lambert, a Trustee of the Company, until expiration of his term on May 12, 2023, also served as a Trustee of Pillarstone REIT.   Pillarstone OP. In connection with the Contribution, Whitestone TRS, Inc., a subsidiary of the Company (“Whitestone TRS”), entered into a management agreement with the entities that own the contributed Pillarstone Properties (collectively, the “Management Agreements”). Pursuant to the Management Agreements, Whitestone TRS agreed to provide certain property management, leasing and day-to-day advisory and administrative services. The Management Agreements were terminated on August 18, 2022.    The Company previously accounted for its investment in Pillarstone OP using the equity method. However, subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for the majority of its investment in Pillarstone OP.   The following table presents the revenue and expenses with Pillarstone OP included in our consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2024 and 2023 (in thousands):         Three Months Ended September 30,     Nine Months Ended September 30,     Location of Revenue (Expense)   2024     2023     2024     2023   Rent Operating and maintenance   $ —     $ —     $ —     $ (15 ) Property management fee income Management, transaction, and other fees   $ —     $ —     $ —     $ —

Note 17 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	17.  COMMITMENTS AND CONTINGENCIES    Guarantor for Pillarstone OP’s Loan   The Company, through its subsidiary Whitestone REIT Operating Partnership, L.P., guaranteed Pillarstone OP’s loan for its Uptown Tower property located in Dallas, Texas, with an aggregate principal amount of $14.4 million as of September 30, 2023. The loan was also secured by the Uptown Tower property. The debt matured on October 4, 2023, and was in default, as Pillarstone OP failed to refinance the loan. On October 24, 2023, the Lender provided notice of a planned foreclosure sale on December 5, 2023.  The Lender also claimed that an additional sum of $4.6 million was due which included default interest of approximately $6.3 million and net credits from escrowed funds and other charges of approximately $1.7 million.    On December 1, 2023, the Company reached an agreement with the Lender that would avoid foreclosure and secure the release of the lien and discharge of the guarantee, and the Company negotiated and satisfied a payoff as of December 4, 2023, in the amount of $13,632,764 (the “DPO Amount”). The DPO Amount included a compromise settlement of approximately $1,688,000 for the disputed default interest and other fees. The Company's share of it was recorded in the 4th quarter of fiscal year 2023 in the financial statement line equity (deficit) in earnings of real estate partnership. Per the agreement, this payment would satisfy the loan. The Company wired the DPO Amount to Lender on December 4, 2023, with accompanying releases as required by Lender, fully satisfying the agreement.   On December 1, 2023, Pillarstone OP authorized and filed the Chapter 11 bankruptcy of its special purpose entity borrower that owns Uptown Tower, in the Bankruptcy Court. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. On February 9, 2024, the Lender filed suit in New York County against the guarantor Whitestone OP and the Company for alleged amounts due under the guarantee.  On March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies.    On April 24, 2024, the Lender and Pillarstone OP filed a motion with the Bankruptcy Court seeking approval to settle the dispute and dismiss their mutual lawsuits including the lawsuit by the Lender against the Company as Guarantor of the loan. On or before June 10, 2024, Pillarstone OP agreed to pay to the Lender the sum of $1,123,950.24 plus all attorneys’ fees and costs (not to exceed $20,000.00) incurred by the Lender from April 10, 2024 through the date of receipt of such payment. Upon timely receipt of the cash payment from Pillarstone OP, the Lender applied the $13,632,764 tendered to it by Whitestone REIT Operating Partnership, L.P., and the guaranty was subsequently released. The Company is pursuing collection of the DPO amount from Pillarstone in the Pillarstone Bankruptcies through a subrogation claim against Pillarstone OP. On October 2, 2024, the Bankruptcy Court affirmed the Company’s right of subrogation and allowed the Company’s secured claim for the guaranty payment in the amount of $13,632,764 million.   Litigation between the Company and Pillarstone REIT   On September 16, 2022, Pillarstone Capital REIT and Pillarstone Capital REIT Operating Partnership, L.P. filed suit against the Company and certain of its subsidiaries (Whitestone TRS, Inc. and Whitestone REIT Operating Partnership, L.P.) along with certain of its executives (Peter Tropoli, Christine Mastandrea,  and David Holeman) in the District Court of Harris County, Texas, alleging claims relating to the limited partnership agreement between Pillarstone Capital REIT and Whitestone REIT Operating Partnership, as well as the termination of Management Agreements between Pillarstone Capital REIT Operating Partnership, L.P. and Whitestone TRS, Inc. On  November 25, 2022, the claims against Peter Tropoli, Christine Mastandrea and David Holeman were dismissed. The claimants seek monetary relief in excess of $1,000,000 in damages and equitable relief. However, the Company denies the claims, has substantial legal and factual defenses against the claims, and intends to vigorously defend against the claims. The Company does not believe a probable loss will be incurred, nor does it anticipate a material adverse effect on its financial position, results of operations, cash flows or liquidity. Therefore, the Company has not recorded a charge as a result of this action.   Former COO Litigation   On May 9, 2023, the Company’s former COO, John Dee, filed suit against the Company in the District Court of Harris County, Texas, purporting to assert claims for breach of his change-in-control agreement arising from the Company’s termination of its former CEO James Mastandrea for cause, and is seeking monetary relief in excess of $1,000,000 in damages and equitable relief. The Company denies the claims, has substantial legal and factual defenses against the claims, and intends to vigorously defend against the claims. The Company does not believe a probable loss will be incurred, nor does it anticipate a material adverse effect on its financial position, results of operations, cash flows or liquidity. Therefore, the Company has not recorded a charge as a result of this action.   Former CEO Litigation   On February 23, 2022, the Company’s former CEO, James Mastandrea, filed suit against the Company and certain of its trustees (Nandita Berry, Jeff Jones, Jack Mahaffey, and David Taylor) and officers (David Holeman, Christine Mastandrea, Peter Tropoli) in the District Court of Harris County, Texas, alleging $25 million in damages and equitable relief claims relating to the termination of his employment, including breach of his employment contract, negligence, tortious interference with contract, civil conspiracy, and declaratory judgment. On September 12, 2022, the claim for breach of fiduciary duty was dismissed and a claim for negligence was added (as to the trustee defendants).    On December 6, 2023, the District Court of Harris County, Texas granted summary judgement and dismissed all claims against the Company related to the termination of Mr. Mastandrea.  The court also dismissed all claims against certain of the Company’s trustees and officers. The dismissal is subject to appeal. The Company’s counter-claims against Mr. Mastandrea for breach of fiduciary duty, theft, and conversion of company property remain.     Pillarstone Rights Plan   On  December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent Whitestone OP from exercising its contractual Redemption Right, on  July 12, 2022, Whitestone OP filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement.   On  September 8, 2022, Whitestone OP’s Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that Whitestone’s right of redemption is not impaired while the underlying dispute is being considered by the Court.    On  January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted Whitestone OP from exercising the unfettered contractual redemption right it obtained in connection with its investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed Whitestone OP to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, would later enter a monetary judgment against Pillarstone for the difference between the amount Whitestone would have received in or around  December 2021 and the current value.   On  January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP.   On  March 4, 2024, Pillarstone REIT authorized and filed the Pillarstone Bankruptcies.   As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. The Company has filed a claim in the Pillarstone Bankruptcies for the value of its redemption claim along with interest and other costs. We intend to pursue collection of amounts due from Pillarstone OP through all means necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP.   We are subject to various legal proceedings and claims that arise in the ordinary course of business.  These matters are generally covered by insurance.  While the resolution of these matters cannot be predicted with certainty, management believes the final outcome of such matters will not have a material adverse effect on our financial position, results of operations, cash flows or liquidity.

Note 18 - Subsequent Events	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Subsequent Events [Text Block]	18.  SUBSEQUENT EVENTS   On October 7, 2024, we, through our Operating Partnership, entered into the Amendment, which among other things, establishes the Series One Incremental Term Loan consistent with the existing Term Loan. The Series One Incremental Term Loan accrues interest (at the Operating Partnership’s option) at a Base Rate or Adjusted Term SOFR plus an applicable margin based upon the Operating Partnership’s then existing leverage and is subject to adjustment as set forth in the Credit Agreement. In addition, the Operating Partnership entered into an interest rate swap to fix the interest rate on the Series One Incremental Term Loan at 3.665% plus bank credit spreads (that are currently 1.5%, through January 31, 2028), or an all-in rate of 5.165%. See Note 7 (Debt) for additional information regarding the Amendment and the 2022 Facility.   The proceeds of the Series One Incremental Term Loan were used to pay down a portion of the Operating Partnership’s outstanding Revolving Loan (as defined in the Credit Agreement) borrowings.

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]		Item 5. Other Information.   During the nine months ended  September 30, 2024, no trustee or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Basis of Consolidation.  We are the sole general partner of the Operating Partnership and possess full legal control and authority over the operations of the Operating Partnership. As of September 30, 2024 and December 31, 2023, we owned a majority of the partnership interests in the Operating Partnership. Consequently, the accompanying consolidated financial statements include the accounts of the Operating Partnership.   Noncontrolling interest in the accompanying consolidated financial statements represents the share of equity and earnings of the Operating Partnership allocable to holders of partnership interests other than us. Net income or loss is allocated to noncontrolling interests based on the weighted-average percentage ownership of the Operating Partnership during the period. Issuance of additional common shares of beneficial interest in Whitestone (the “common shares”) and units of limited partnership interest in the Operating Partnership that are convertible into cash or, at our option, common shares on a one-for-one basis (the “OP units”) changes the percentage of ownership interests of both the noncontrolling interests and Whitestone.   Estimates regarding Pillarstone OP’s financial condition and results of operations. We rely on the reports furnished by our third-party partners for financial information regarding the Company’s investment in Pillarstone OP. As of September 30, 2024 and December 31, 2023, Pillarstone OP’s financial statements have not been made accessible to us. Consequently, we have estimated the financial status and operational outcomes of Pillarstone OP based on the information accessible to us at the time of this report.
Equity Method Investments [Policy Text Block]	Equity Method. In compliance with Accounting Standards Update (“ASU”) 2014-09 (“Topic 606”) and Accounting Standards Codification (“ASC”) 610, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets,” the Company previously accounted for its investment in Pillarstone OP using the equity method. However, subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for substantially all of its investment in Pillarstone OP. Please refer to Note 6 to the accompanying consolidated financial statements for the full disclosure.
Basis of Accounting, Policy [Policy Text Block]	Basis of Accounting.  Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates.   The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that we use include the estimated fair values of properties acquired, the estimated useful lives for depreciable and amortizable assets and costs, the grant date fair value of common share units included in share-based compensation expense, the estimated allowance for doubtful accounts, the estimated fair value of interest rate swaps, the estimates supporting our impairment analysis for the carrying values of our real estate assets, the estimates made regarding Pillarstone REIT Operating Partnership LP’s financial condition and results of operations, and the estimated allowance for credit loss.  Actual results could differ from those estimates.
Reclassification, Comparability Adjustment [Policy Text Block]	Reclassifications.  We have reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net income, total assets, total liabilities or equity.
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]	Restricted Cash. We classify all cash pledged as collateral to secure certain obligations and all cash whose use is limited as restricted cash. During 2015, pursuant to the terms of our $15.1 million 4.99% Note, due January 6, 2024 (see Note 7 (Debt)), which was collateralized by our Anthem Marketplace property, we were required by the lenders thereunder to establish a cash management account controlled by the lenders to collect all amounts generated by our Anthem Marketplace property in order to collateralize such promissory note. The note was paid off in January 2024. As of September 30, 2024, we had no restricted cash.
Derivatives, Policy [Policy Text Block]	Derivative Instruments and Hedging Activities. We utilize derivative financial instruments, principally interest rate swaps, to manage our exposure to fluctuations in interest rates. We have established policies and procedures for risk assessment, and the approval, reporting and monitoring of derivative financial instruments. We recognize our interest rate swaps as cash flow hedges with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Any ineffective portion of a cash flow hedges’ change in fair value is recorded immediately into earnings. Our cash flow hedges are determined using Level 2 inputs under ASC 820, “Fair Value Measurements and Disclosures.” Level 2 inputs represent quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable. As of September 30, 2024, we consider our cash flow hedges to be highly effective.
Real Estate Held for Development and Sale, Policy [Policy Text Block]	Development Properties. Land, buildings and improvements are recorded at cost. Expenditures related to the development of real estate are carried at cost which includes capitalized carrying charges and development costs. Carrying charges (interest, real estate taxes, loan fees, and direct and indirect development costs related to buildings under construction) are capitalized as part of construction in progress. The capitalization of such costs ceases when the property, or any completed portion, becomes available for occupancy. For the three months ended September 30, 2024, approximately $ 150,000 and $ 15,000 in interest expense and real estate taxes, respectively, were capitalized, and for the nine months ended  September 30, 2024, approximately $ 434,000 and $ 137,000 in interest expense and real estate taxes, respectively, were capitalized. For the three months ended September 30, 2023, approximately $ 142,000 and $ 85,000 in interest expense and real estate taxes, respectively, were capitalized and for the nine months ended September 30, 2023, approximately $ 413,000 and $ 230,000 in interest expense and real estate taxes, respectively, were capitalized.
Share-Based Payment Arrangement [Policy Text Block]	Share-Based Compensation.  From time to time, we award nonvested restricted common share awards or restricted common share unit awards, which may be converted into common shares, to executive officers and employees under our 2018 Long-Term Equity Incentive Ownership Plan (the “2018 Plan”).  Awarded shares and units vest when certain performance conditions are met.  We recognize compensation expense when achievement of the performance conditions is probable based on management’s most recent estimates using the fair value of the shares as of the grant date.  We recognized $ 1,281,000 and $ 1,083,000 in share-based compensation net of forfeitures for the three months ended September 30, 2024 and 2023, respectively, and we recognized $ 3,105,000 and $ 2,712,000 in share-based compensation net of forfeitures for the nine months ended September 30, 2024 and 2023, respectively.
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	Noncontrolling Interests.  Noncontrolling interests are the portion of equity in a subsidiary not attributable to a parent. Accordingly, we have reported noncontrolling interests in equity on the consolidated balance sheets but separate from Whitestone’s equity.  On the consolidated statements of operations and comprehensive income (loss), subsidiaries are reported at the consolidated amount, including both the amount attributable to Whitestone and noncontrolling interests.  The consolidated statements of changes in equity is included for quarterly financial statements, including beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity.
Receivable [Policy Text Block]	Accrued Rents and Accounts Receivable. Included in accrued rents and accounts receivable are base rents, tenant reimbursements and receivables attributable to recording rents on a straight-line basis. We review the collectability of charges under our tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. We recognize an adjustment to rental revenue if we deem it probable that the receivable will not be collected. Our review of collectability under our operating leases includes any accrued rental revenues related to the straight-line method of reporting rental revenue. As of September 30, 2024 and December 31, 2023, we had an allowance for uncollectible accounts of  $14.5 million and $13.6 million, respectively. During the three months ended  September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustments, resulting in a $0.3 million and $0.4 million decrease in revenue, respectively, and during the nine months ended September 30, 2024 and 2023, we recorded an adjustment to rental revenue for bad debt, exclusive of straight-line rent reserve adjustment, resulting in a $1.0 million decrease in revenue during both periods. The three months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The three months ended  September 30, 2023 included 17 cash basis tenants, resulting in an increase to rental revenue for straight-line rent adjustment of $0.03 million and a decrease to rental revenue for bad debt adjustments of $0.2 million. The nine months ended September 30, 2024 included 20 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.2 million and a decrease to rental revenue for bad debt adjustments of $0.5 million, and the nine months ended  September 30, 2023 included 17 cash basis tenants, resulting in a decrease to rental revenue for straight-line rent adjustments of $0.1 million and a decrease to rental revenue for bad debt adjustments of $0.5 million.
Revenue from Contract with Customer [Policy Text Block]	Revenue Recognition. All leases on our properties are classified as operating leases, and the related rental income is recognized on a straight-line basis over the terms of the related leases. Differences between rental income earned and amounts due per the respective lease agreements are capitalized or charged, as applicable, to accrued rents and accounts receivable. Percentage rents are recognized as rental income when the thresholds upon which they are based have been met.  Recoveries from tenants for taxes, insurance, and other operating expenses are recognized as revenues in the period the corresponding costs are incurred. We combine lease and nonlease components in lease contracts, which includes combining base rent, recoveries, and percentage rents into a single line item, Rental, within the consolidated statements of operations and comprehensive income (loss). Additionally, we have tenants who pay real estate taxes directly to the taxing authority. We exclude these costs paid directly by the tenant to third parties on our behalf from revenue recognized and the associated property operating expense.   Other property income primarily includes amounts recorded in connection with lease termination fees. We recognize lease termination fees in the year that the lease is terminated and collection of the fee is probable. Amounts recorded within other property income are accounted for at the point in time when control of the goods or services transfers to the customer and our performance obligation is satisfied.   See our Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion on significant accounting policies.

Note 3 - Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Lessor, Operating Lease, Payment to be Received, Maturity [Table Text Block]	Years Ended December 31,   Minimum Future Rents   2024 (remaining)   $ 25,841   2025     97,335   2026     82,891   2027     69,491   2028     55,006   Thereafter     155,061   Total   $ 485,625
Lessee, Lease, Liability, Maturity [Table Text Block]	Years Ended December 31,   Operating Leases     Finance Leases   2024 (remaining)   $ 9     $ 21   2025     30       82   2026     24       83   2027     7       85   2028     1       86   Thereafter     —       2,723   Total undiscounted rental payments     71       3,080   Less imputed interest     4       2,291   Total lease liabilities   $ 67     $ 789

Note 4 - Accrued Rents and Accounts Receivable, Net (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	September 30, 2024     December 31, 2023   Tenant receivables   $ 17,064     $ 16,287   Accrued rents and other recoveries     28,312       26,751   Allowance for doubtful accounts     (14,451 )     (13,570 ) Other receivables     1,616       1,124   Total   $ 32,541     $ 30,592

Note 5 - Unamortized Lease Commissions, Legal Fees and Loan Costs (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]	September 30, 2024     December 31, 2023   Leasing commissions   $ 20,737     $ 19,462   Deferred legal cost     293       356   Deferred financing cost     4,149       4,149   Total cost     25,179       23,967   Less: leasing commissions accumulated amortization     (8,930 )     (8,744 ) Less: deferred legal cost accumulated amortization     (258 )     (272 ) Less: deferred financing cost accumulated amortization     (1,843 )     (1,168 ) Total cost, net of accumulated amortization   $ 14,148     $ 13,783

Note 6 - Investment in Real Estate Partnership (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Equity Method Investments [Table Text Block]	Company’s Investment as of               September 30, 2024     December 31, 2023   Real estate partnership   Ownership Interest                   Pillarstone OP     81.4%     $ —     $ 31,671   Total real estate partnership(1)(2)(3)           $ —     $ 31,671
Real Estate Investment Financial Statements, Disclosure [Table Text Block]	Three Months Ended September 30,     Nine Months Ended September 30,       2024     2023     2024     2023                                     Pillarstone OP   $ —     $ (375 )   $ (28 )   $ (1,627 )     September 30, 2024     December 31, 2023   Assets:                 Real estate, net   $ —     $ 47,115   Other assets     —       6,680   Total assets(1)     —       53,795   Liabilities and equity:                 Notes payable     —       14,292   Other liabilities     —       4,040   Equity     —       35,463   Total liabilities and equity(2)     —       53,795   Company’s share of equity     —       28,885   Cost of investment in excess of the Company’s share of underlying net book value     —       2,786   Carrying value of investment in real estate partnership(3)   $ —     $ 31,671       Three Months Ended September 30,     Nine Months Ended September 30,       2024     2023     01/01/2024-01/25/2024 (2)     2023                                     Revenues   $ —     $ 2,152     $ 591     $ 6,307   Operating expenses     —       (2,372 )     (559 )     (7,584 ) Other expenses     —       (207 )     (56 )     (621 ) Net loss   $ —     $ (427 )   $ (24 )   $ (1,898 )

Note 7 - Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Debt [Table Text Block]	Description   September 30, 2024     December 31, 2023   Fixed rate notes                 $265.0 million, 3.18% plus 1.45% to 2.10% Note, due January 31, 2028 (1)   $ 265,000     $ 265,000   $80.0 million, 3.72% Note, due June 1, 2027     80,000       80,000   $19.0 million 4.15% Note, due December 1, 2024     17,383       17,658   $14.0 million 4.34% Note, due September 11, 2024     —       12,427   $14.3 million 4.34% Note, due September 11, 2024     —       13,257   $15.1 million 4.99% Note, due January 6, 2024     —       13,350   $50.0 million, 5.09% Note, due March 22, 2029 (Series A)     35,714       42,857   $50.0 million, 5.17% Note, due March 22, 2029 (Series B)     50,000       50,000   $2.5 million 7.79% Note, due February 28, 2025     1,133       —   $50.0 million, 3.71% plus 1.50% to 2.10% Note, due September 16, 2026 (2)     50,000       50,000   $56.3 million, 6.23% Note, due July 31, 2031     56,340       —   Floating rate notes                 Unsecured line of credit, SOFR plus 1.50% to 2.10%, due September 16, 2026     79,000       96,000   Total notes payable principal     634,570       640,549   Less deferred financing costs, net of accumulated amortization     (1,018 )     (377 ) Total notes payable   $ 633,552     $ 640,172
Schedule of Maturities of Long-Term Debt [Table Text Block]	Year   Amount Due   2024 (remaining)   $ 18,062   2025     17,596   2026     146,143   2027     97,414   2028     282,823   Thereafter     72,532   Total   $ 634,570

Note 8 - Derivatives and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Interest Rate Derivatives [Table Text Block]	September 30, 2024   Balance Sheet Location   Estimated Fair Value   Accounts payable and accrued expenses   $ (682 )     December 31, 2023   Balance Sheet Location   Estimated Fair Value   Prepaid expenses and other assets   $ 2,613
Derivative Instruments, Gain (Loss) [Table Text Block]	Amount Recognized as Comprehensive Income (Loss)   Location of Income Recognized in Earnings   Amount of Income Recognized in Earnings (1)   Three Months Ended September 30, 2024   $ (8,946 ) Interest expense   $ 1,556   Three Months Ended September 30, 2023   $ 4,094   Interest expense   $ 1,929                       Nine Months Ended September 30, 2024   $ (3,296 ) Interest expense   $ 4,804   Nine Months Ended September 30, 2023   $ 6,602   Interest expense   $ 4,833

Note 9 - Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30,     Nine Months Ended September 30,   (in thousands, except per share data)   2024     2023     2024     2023   Numerator:                                 Net income   $ 7,723     $ 2,521     $ 19,813     $ 17,887   Less: Net income attributable to noncontrolling interests     (99 )     (35 )     (257 )     (248 ) Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares   $ 7,624     $ 2,486     $ 19,556     $ 17,639                                     Denominator:                                 Weighted average number of common shares - basic     50,297       49,534       50,067       49,472   Effect of dilutive securities:                                 Unvested restricted shares     1,008       1,103       1,039       927   Weighted average number of common shares - dilutive     51,305       50,637       51,106       50,399                                     Earnings Per Share:                                 Basic:                                 Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares   $ 0.15     $ 0.05     $ 0.39     $ 0.36   Diluted:                                 Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares   $ 0.15     $ 0.05     $ 0.38     $ 0.35

Note 11 - Equity (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Distributions Made to Limited Partner, by Distribution [Table Text Block]	Common Shares     Noncontrolling OP Unit Holders     Total   Quarter Paid   Distributions Per Common Share     Amount Paid     Distributions Per OP Unit     Amount Paid     Amount Paid   2024                                         Third Quarter   $ 0.1238     $ 6,194     $ 0.1238     $ 80     $ 6,274   Second Quarter     0.1238       6,162       0.1238       80       6,242   First Quarter     0.1200       5,969       0.1200       80       6,049   Total   $ 0.3676     $ 18,325     $ 0.3676     $ 240     $ 18,565                                             2023                                         Fourth Quarter   $ 0.1200     $ 5,930     $ 0.1200     $ 83     $ 6,013   Third Quarter     0.1200       5,928       0.1200       83       6,011   Second Quarter     0.1200       5,913       0.1200       83       5,996   First Quarter     0.1200       5,913       0.1200       83       5,996   Total   $ 0.4800     $ 23,684     $ 0.4800     $ 332     $ 24,016

Note 12 - Incentive Share Plan (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Nonvested Share Activity [Table Text Block]	Weighted Average               Grant Date       Shares     Fair Value   Non-vested at January 1, 2023     1,452,433     $ 10.12   Granted     372,583       13.84   Vested     (404,171 )     6.30   Forfeited     (475,604 )     12.94   Non-vested at September 30, 2024     945,241       11.80   Available for grant at September 30, 2024     772,581
Share-Based Payment Arrangement, Outstanding Award, Activity, Excluding Option [Table Text Block]	Shares Granted     Shares Vested       Non-Vested Shares Issued     Weighted Average Grant-Date Fair Value     Vested Shares     Total Vest-Date Fair Value                               (in thousands)   Nine Months Ended September 30, 2024     372,583     $ 13.84       (404,171 )   $ 2,546   Year Ended December 31, 2023     480,184     $ 9.30       (231,600 )   $ 1,841   Year Ended December 31, 2022     360,334     $ 11.61       (519,003 )   $ 3,442

Note 16 - Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Related Party Transactions [Table Text Block]	Three Months Ended September 30,     Nine Months Ended September 30,     Location of Revenue (Expense)   2024     2023     2024     2023   Rent Operating and maintenance   $ —     $ —     $ —     $ (15 ) Property management fee income Management, transaction, and other fees   $ —     $ —     $ —     $ —

Note 1 - Interim Financial Statements (Details Textual)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Jul. 31, 2004
Reorganization and Conversion, Number of Common Shares			1.42857
Wholly Owned Properties [Member]
Number of Real Estate Properties	55	55
Wholly Owned Properties [Member] | Community Centered Properties [Member]
Number of Real Estate Properties	50
Wholly Owned Properties [Member] | Parcels Held for Future Development [Member]
Asset Acquisition, Number of Properties Acquired During Period	5

Note 2 - Summary of Significant Accounting Policies (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Mar. 31, 2024 $ / shares	Dec. 31, 2023 USD ($)	Dec. 31, 2015 USD ($)
Conversion Ratio for Class Common Stock to OP Unit (in dollars per share) | $ / shares	$ 1		$ 1		$ 1
Real Estate Inventory, Capitalized Interest Costs Incurred	$ 150,000	$ 142,000	$ 434,000	$ 413,000
Real Estate Taxes, Capitalized	15,000	85,000	137,000	230,000
Share-Based Payment Arrangement, Expense	1,281,000	1,083,000	3,105,000	2,712,000
Accounts Receivable, Allowance for Credit Loss	14,451,000		14,451,000			$ 13,570,000
Net Investment in Lease, Credit Loss Expense (Reversal)	$ 345,000	$ 389,000	$ 1,031,000	$ 946,000
Accounts Receivable, Credit Loss Expense (Reversal), Number of Tenants, COVID-19	20	17	20	17
Straight Line Rent Adjustments, COVID-19	$ 100,000	$ 30,000.00	$ 200,000	$ 100,000
Accounts Receivable, Credit Loss Expense (Reversal), COVID-19	$ 200,000	$ 200,000	$ 500,000	$ 500,000
Anthem Marketplace Note [Member]
Debt Instrument, Face Amount							$ 15,100,000
Debt Instrument, Interest Rate, Stated Percentage							4.99%

Note 3 - Leases (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Operating Lease, Cost	$ 6,000	$ 23,000	$ 35,000	$ 64,000
Finance Lease, Right-of-Use Asset, Amortization	$ 27,000	$ 21,000	$ 65,000	$ 72,000
Operating Lease, Weighted Average Remaining Lease Term (Year)	2 years		2 years
Finance Lease, Weighted Average Remaining Lease Term (Year)	94 years		94 years
Operating Lease, Weighted Average Discount Rate, Percent	4.50%		4.50%
Finance Lease, Weighted Average Discount Rate, Percent	6.10%		6.10%
Ground Lease [Member]
Number of Ground Leases	1		1
Office Machine Lease [Member]
Number of Office Machine Leases	1		1
Minimum [Member] | Office Space, Automobile, and Office Machine [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)	1 year		1 year
Maximum [Member] | Office Space, Automobile, and Office Machine [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)	5 years		5 years

Note 3 - Leases - Summary of Minimum Future Rents to be Received (Details) $ in Thousands	Sep. 30, 2024 USD ($)
2024 (remaining)	$ 25,841
2025	97,335
2026	82,891
2027	69,491
2028	55,006
Thereafter	155,061
Total	$ 485,625

Note 3 - Leases - Summary of Future Minimum Rental Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
2024 (remaining), operating leases	$ 9
2024 (remaining), finance lease	21
2025, operating leases	30
2025, finance lease	82
2026, operating leases	24
2026, finance lease	83
2027, operating leases	7
2027, finance lease	85
2028, operating leases	1
2028, finance lease	86
Thereafter, operating leases	0
Thereafter, finance lease	2,723
Total undiscounted rental payments, operating leases	71
Total undiscounted rental payments, finance lease	3,080
Less imputed interest, operating leases	4
Less imputed interest, finance lease	2,291
Total lease liabilities, operating leases	67	$ 112
Total lease liabilities, finance lease	$ 789	$ 721

Note 4 - Accrued Rents and Accounts Receivable, Net - Schedule of Accrued Rents and Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Tenant receivables	$ 17,064	$ 16,287
Accrued rents and other recoveries	28,312	26,751
Allowance for doubtful accounts	(14,451)	(13,570)
Total	32,541	30,592
Trade Accounts Receivable [Member]
Other receivables	$ 1,616	$ 1,124

Note 5 - Unamortized Lease Commissions, Legal Fees and Loan Costs - Deferred Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leasing commissions	$ 20,737	$ 19,462
Deferred legal cost	293	356
Deferred financing cost	4,149	4,149
Total cost	25,179	23,967
Less: leasing commissions accumulated amortization	(8,930)	(8,744)
Less: deferred legal cost accumulated amortization	(258)	(272)
Less: deferred financing cost accumulated amortization	(1,843)	(1,168)
Total cost, net of accumulated amortization	$ 14,148	$ 13,783

Note 6 - Investment in Real Estate Partnership (Details Textual)					3 Months Ended			8 Months Ended	9 Months Ended		24 Months Ended
		Apr. 24, 2024 USD ($)	Jan. 25, 2024 USD ($)	Dec. 01, 2023 USD ($)	Sep. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Aug. 18, 2022 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 08, 2018 USD ($)	Dec. 31, 2023 USD ($) ft²	Oct. 24, 2023 USD ($)	Dec. 08, 2016
Equity Method Investment, Difference Between Carrying Amount And Underlying Equity, Amortization					$ 0		$ 27,000		$ 7,000	$ 81,000
Equity Method Investments	[1],[2],[3]				0				0			$ 31,671,000
Bankruptcy of Whitestone Uptown Tower LLC [Member] | Settled Litigation [Member]
Litigation Settlement, Amount Awarded to Other Party				$ 13,632,764
Litigation Settlement Interest				$ 1,688,000
Bankruptcy of Whitestone Uptown Tower LLC [Member] | Settled Litigation [Member] | Pillarstone OP [Member]
Litigation Settlement, Amount Awarded to Other Party		$ 1,123,950.24
Bankruptcy of Whitestone Uptown Tower LLC [Member] | Settled Litigation [Member] | Pillarstone OP [Member] | Maximum [Member]
Legal Fees		$ 20,000
Irrevocable Redemption of Investment in Pillarstone OP [Member] | Pending Litigation [Member]
Litigation Settlement Interest			$ 13,000,000
Equity Method Investments			31,600,000
Gain Contingency, Unrecorded Amount			$ 70,000,000
Performance Guarantee [Member]
Guarantees, Fair Value Disclosure						$ 462,000
Guarantee Liability, Amortization Period (Year)						7 years
Amortization of Guarantee Liability					$ 0		0		$ 0	18,000
Uptown Tower [Member]
Property Management Fee Revenue								$ 144,000
Uptown Tower [Member] | Performance Guarantee [Member] | Guarantee Obligations [Member]
Guarantee Obligation, Additional Amount Due													$ 4,600,000
Interest Payable													6,300,000
Escrow Deposit													$ 1,700,000
Uptown Tower [Member] | Performance Guarantee [Member] | Pillarstone OP Uptown Loan [Member]
Debt Instrument, Face Amount							$ 14,400,000			$ 14,400,000
Pillarstone Capital REIT and Pillarstone Capital REIT Operating Partnership, L.P. vs Company and Certain Subsidiaries and Certain Executives [Member] | Unconsolidated Properties [Member]
Number of Real Estate Properties												8
Area of Real Estate Property (Square Foot) | ft²												926,798
Variable Interest Entity, Primary Beneficiary [Member]
Number of Non-core Properties Contributed to Variable Interest Entity														14
Variable Interest Entity, Consideration, Amount											$ 84,000,000
Variable Interest Entity, Consideration, Limited Partnership Interest											18,100,000
Variable Interest Entity, Consideration, Liabilities Assumed											$ 65,900,000
[1] On December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent Whitestone OP from exercising its contractual Redemption Right, on July 12, 2022, Whitestone OP filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement. On September 8, 2022, Whitestone OP’s Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that Whitestone’s right of redemption is not impaired while the underlying dispute is being considered by the Court. On January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted Whitestone OP from exercising the unfettered contractual redemption right it obtained in connection with its investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed Whitestone OP to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, later enter a monetary judgment against Pillarstone for the difference between the amount Whitestone would have received in or around December 2021 and the current value. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. On March 4, 2024, Pillarstone REIT authorized and filed the Chapter 11 bankruptcy of itself, Pillarstone OP, and the remainder of its special purpose entities in the United States Bankruptcy Court for the Northern District of Texas. As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. We intend to pursue collection of amounts due from Pillarstone OP through all means, including further litigation if necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP. [2] Representing eight property interests and 926,798 square feet of GLA, as of December 31, 2023. Subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for the majority of its investment in Pillarstone OP. We reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income. [3] We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report.

Note 6 - Investment in Real Estate Partnership - Real Estate Partnership Investment (Details) - USD ($) $ in Thousands		Sep. 30, 2024	Dec. 31, 2023
Equity Method Investments	[1],[2],[3]	$ 0	$ 31,671
Pillarstone OP [Member]
Ownership interest		81.40%
Equity Method Investments	[4]	$ 0	$ 31,671
[1] On December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent Whitestone OP from exercising its contractual Redemption Right, on July 12, 2022, Whitestone OP filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement. On September 8, 2022, Whitestone OP’s Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that Whitestone’s right of redemption is not impaired while the underlying dispute is being considered by the Court. On January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted Whitestone OP from exercising the unfettered contractual redemption right it obtained in connection with its investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed Whitestone OP to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, later enter a monetary judgment against Pillarstone for the difference between the amount Whitestone would have received in or around December 2021 and the current value. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. On March 4, 2024, Pillarstone REIT authorized and filed the Chapter 11 bankruptcy of itself, Pillarstone OP, and the remainder of its special purpose entities in the United States Bankruptcy Court for the Northern District of Texas. As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. We intend to pursue collection of amounts due from Pillarstone OP through all means, including further litigation if necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP. [2] Representing eight property interests and 926,798 square feet of GLA, as of December 31, 2023. Subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for the majority of its investment in Pillarstone OP. We reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income. [3] We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report. [4] We rely on reporting provided to us by Pillarstone OP's general partner for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report.

Note 6 - Investment in Real Estate Partnership - Net Income from Investment (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Real estate, net		$ 999,567		$ 999,567		$ 991,699
Total assets(1)		1,112,561		1,112,561		1,113,239
Notes payable		633,552		633,552		640,172
Equity		419,520		419,520		413,742
Total liabilities and equity(2)		1,112,561		1,112,561		1,113,239
Carrying value of investment in real estate partnership(3)	[1],[2],[3]	0		0		31,671
Revenues		38,633	$ 37,134	113,444	$ 109,445
Operating expenses		25,940	25,279	77,507	74,204
Other expenses		(4,852)	(8,864)	(15,769)	(15,388)
Net loss		7,624	2,486	19,556	17,639
Pillarstone OP [Member]
Pillarstone OP		0	(375)	(28)	(1,627)
Company’s share of equity		0		0		28,885
Cost of investment in excess of the Company’s share of underlying net book value		0		0		2,786
Carrying value of investment in real estate partnership(3)	[4]	0		0		31,671
Pillarstone OP [Member]
Real estate, net		0		0		47,115
Other assets		0		0		6,680
Total assets(1)	[5]	0		0		53,795
Notes payable		0		0		14,292
Other liabilities		0		0		4,040
Equity		0		0		35,463
Total liabilities and equity(2)	[6]	0		0		$ 53,795
Revenues		0	2,152	591	6,307
Operating expenses		0	(2,372)	(559)	(7,584)
Other expenses		0	(207)	(56)	(621)
Net loss		$ 0	$ (427)	$ (24)	$ (1,898)
[1] On December 26, 2021, the Board of Trustees of Pillarstone REIT adopted a new shareholder rights agreement (the “Pillarstone Rights Agreement”). Because Pillarstone REIT sought to use the Pillarstone Rights Agreement to prevent Whitestone OP from exercising its contractual Redemption Right, on July 12, 2022, Whitestone OP filed suit against Pillarstone REIT in the Court of Chancery of the State of Delaware challenging the Pillarstone Rights Agreement. On September 8, 2022, Whitestone OP’s Motion to Preserve the Status Quo was granted by the Court, limiting Pillarstone OP from engaging in any acts outside the ordinary course of business and otherwise imposing restrictions on Pillarstone OP to ensure that Whitestone’s right of redemption is not impaired while the underlying dispute is being considered by the Court. On January 25, 2024, the Delaware Court of Chancery: held that Pillarstone breached the implied covenant of good faith and fair dealing when it adopted the Pillarstone Rights Agreement that thwarted Whitestone OP from exercising the unfettered contractual redemption right it obtained in connection with its investment in the partnership; and the Court held that the Rights Plan was unenforceable as to the limited partner and allowed Whitestone OP to exercise its redemption right; allowed Pillarstone to determine the current value of the Partnership’s assets; and, as necessary, later enter a monetary judgment against Pillarstone for the difference between the amount Whitestone would have received in or around December 2021 and the current value. On January 25, 2024, the Company exercised its notice of redemption for substantially all of its investment in Pillarstone OP. On March 4, 2024, Pillarstone REIT authorized and filed the Chapter 11 bankruptcy of itself, Pillarstone OP, and the remainder of its special purpose entities in the United States Bankruptcy Court for the Northern District of Texas. As of the date of this filing, Whitestone has not received consideration for its redemption of its equity investment in Pillarstone OP as required by the partnership agreement. We intend to pursue collection of amounts due from Pillarstone OP through all means, including further litigation if necessary and while we do not know the ultimate amount to be collected, we believe the amount will be in excess of the current carrying value of our equity investment in Pillarstone OP. [2] Representing eight property interests and 926,798 square feet of GLA, as of December 31, 2023. Subsequent to January 25, 2024, the Company ceased utilizing the equity method following the exercise of its notice of redemption for the majority of its investment in Pillarstone OP. We reclassified our investment in Pillarstone OP to a receivable on our balance sheet after estimating 25 days of our share of the equity investment income. [3] We rely on reporting provided to us by Pillarstone OP’s general partner for financial information regarding the Company’s investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report. [4] We rely on reporting provided to us by Pillarstone OP's general partner for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated the value of the investment based on the information available to us at the time of this report. [5] We rely on reporting provided to us by Pillarstone OP's general partner for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated total assets and its components based on the information available to us at the time of this report. [6] We rely on reporting provided to us by Pillarstone OP's general partner for financial information regarding the Company's investment in Pillarstone OP. Because Pillarstone OP financial statements as of March 31, 2023 have not been made available to us, we have estimated total liabilities and equity and its components based on the information available to us at the time of this report.

Note 7 - Debt (Details Textual)					9 Months Ended	12 Months Ended	15 Months Ended	48 Months Ended
	Oct. 07, 2024 USD ($)	Oct. 28, 2022	Sep. 16, 2022 USD ($)	Mar. 22, 2019 USD ($)	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jan. 31, 2024	Jan. 31, 2028	Jun. 21, 2024 USD ($)	Mar. 31, 2024
Secured Debt					$ 153,720,000
Asset Pledged as Collateral [Member] | Secured Debt [Member]
Number of Real Estate Properties					5
Real Estate Investments, Net					$ 242,700,000
The 265 Million Note Due January 31, 2028 [Member]
Debt Instrument, Interest Rate, Stated Percentage		2.16%			3.18%	3.18%	2.76%
Debt Instrument, Face Amount					$ 265,000,000	$ 265,000,000
The 265 Million Note Due January 31, 2028 [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate					2.10%	2.10%
The 265 Million Note Due January 31, 2028 [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate					1.45%	1.45%
The 265 Million Note Due January 31, 2028 [Member] | Forecast [Member]
Debt Instrument, Interest Rate, Stated Percentage								3.32%
The $50 Million Debt Facility Maturing September 16, 2026 [Member]
Debt Instrument, Interest Rate, Stated Percentage										3.71%
Loan Agreement [Member]
Debt Instrument, Interest Rate, Stated Percentage									6.23%
Debt Instrument, Face Amount									$ 56,340,000
Number of Real Estate Properties									3
The Series A and Series B Notes [Member]
Debt Instrument, Face Amount				$ 100,000,000
Debt Instrument, Minimum Partial Prepayment				$ 1,000,000
Debt Instrument, Redemption Price, Percentage				100.00%
Debt Instrument, Covenant, Maximum Total Indebtedness to Total Asset Value Ratio				0.6
Debt Instrument, Covenant, Maximum Secured Debt to Total Asset Value Ratio				0.4
Debt Instrument, Covenant, Minimum EBITDA to Fixed Charges Ratio				1.5
Debt Instrument, Covenant, Maximum Secured Recourse Debt to Total Asset Value				0.15
Debt Instrument, Covenant, Tangible Net Worth Threshold Before Percentage of Aggregate Net Proceeds, Percent				75.00%
Debt Instrument, Covenant, Tangible Net Worth, Percentage of Aggregate Net Proceeds, Minimum				75.00%
Debt Instrument, Covenant, Minimum Adjusted Property NOI To Implied Unencumbered Debt Service Ratio				1.5
Debt Instrument, Covenant, Maximum Unsecured Debt to Unencumbered Assets				0.6
The Series A Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage				5.09%
Debt Instrument, Face Amount				$ 50,000,000
Debt Instrument, Annual Principal Payment				$ 7,100,000
The Series B Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage				5.17%
Debt Instrument, Face Amount				$ 50,000,000
Debt Instrument, Annual Principal Payment				$ 10,000,000
Series One Incremental Term Loan [Member] | Subsequent Event [Member]
Debt Instrument, Interest Rate, Stated Percentage	3.665%
Debt Instrument, Face Amount	$ 20,000,000
Debt Instrument, Basis Spread on Variable Rate	1.50%
Series One Incremental Term Loan [Member] | Subsequent Event [Member] | Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.165%
Series One Incremental Term Loan [Member] | Subsequent Event [Member] | Bank Credit Spreads [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	5.165%
The 2022 Facility [Member]
Debt Instrument, Covenant, Maximum Total Indebtedness to Total Asset Value Ratio			0.6
Debt Instrument, Covenant, Maximum Secured Debt to Total Asset Value Ratio			0.4
Debt Instrument, Covenant, Minimum EBITDA to Fixed Charges Ratio			1.5
Debt Instrument, Covenant, Tangible Net Worth, Percentage of Aggregate Net Proceeds, Minimum			75.00%
Debt Instrument, Covenant, Minimum Adjusted Property NOI To Implied Unencumbered Debt Service Ratio			1.5
Debt Instrument, Covenant, Maximum Unsecured Debt to Unencumbered Assets			0.6
Debt Instrument, Basis Spread on Variable Rate					1.50%	1.50%
Debt Instrument, Applicable Margin Adjustment per Annum			0.02%
Debt Instrument, Covenant, Maximum Other Recourse Debt to Total Asset Value Ratio			0.15
Debt Instrument, Covenant, Tangible Net Worth Threshold Before Percentage of Aggregate Net Proceeds, Amount			$ 449,000,000
The 2022 Facility [Member] | Term Loans [Member]
Debt Instrument, Interest Rate, Stated Percentage		2.16%			6.80%		2.80%
Debt Instrument, Face Amount			265,000,000
The 2022 Facility [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity			250,000,000
Line of Credit Facility, Accordion Feature, Increase Limit			$ 200,000,000
Line of Credit Facility, Remaining Borrowing Capacity					$ 121,000,000
Long-Term Line of Credit					394,000,000
Debt Instrument, Unused Borrowing Capacity, Amount					$ 121,000,000
The 2022 Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			0.50%
The 2022 Facility [Member] | Adjusted Term SOFR for One Month Tenor in Effect [Member]
Debt Instrument, Basis Spread on Variable Rate			1.10%
The 2022 Facility [Member] | Adjusted Term SOFR for 2 Business Days Prior [Member]
Debt Instrument, Basis Spread on Variable Rate					1.45%
The 2022 Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Term Loans [Member]
Debt Instrument, Basis Spread on Variable Rate					1.40%
The 2022 Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | Term Loans [Member]
Debt Instrument, Basis Spread on Variable Rate		2.00%					2.00%
The 2022 Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | Term Loans [Member]
Debt Instrument, Basis Spread on Variable Rate		1.35%					1.35%
The 2022 Facility [Member] | Forecast [Member] | Term Loans [Member]
Debt Instrument, Interest Rate, Stated Percentage								3.42%
The 2022 Facility [Member] | Forecast [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | Term Loans [Member]
Debt Instrument, Basis Spread on Variable Rate								2.00%
The 2022 Facility [Member] | Forecast [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | Term Loans [Member]
Debt Instrument, Basis Spread on Variable Rate								1.35%

Note 7 - Debt - Schedule of Debt (Details) - USD ($) $ in Thousands		Sep. 30, 2024	Dec. 31, 2023
Notes payable principal		$ 634,570	$ 640,549
Less deferred financing costs, net of accumulated amortization		(1,018)	(377)
Notes Payable [Member]
Total notes payable		633,552	640,172
The 265 Million Note Due January 31, 2028 [Member]
Notes payable principal	[1]	265,000	265,000
The 80 Million Note Due June 1, 2027 [Member]
Notes payable principal		80,000	80,000
The 19 Million Note Due December 1, 2024 [Member]
Notes payable principal		17,383	17,658
The 14 Million Note Due September 11, 2024 [Member]
Notes payable principal		0	12,427
The 14.3 Million Note Due September 11, 2024 [Member]
Notes payable principal		0	13,257
The 15.1 Million Note Due January 6, 2024 [Member]
Notes payable principal		0	13,350
The 50.0 Million Series A Note Due March 22, 2029 [Member]
Notes payable principal		35,714	42,857
The 50.0 Million Series B Note Due March 22, 2029 [Member]
Notes payable principal		50,000	50,000
The 2.5 Million Note Due February 28, 2025 [Member]
Notes payable principal		1,133	0
The $50 Million Note Due September 16, 2026 [Member]
Notes payable principal	[2]	50,000	50,000
The $56.3 Million Note Due July 31, 2031 [Member]
Notes payable principal		56,340	0
The 2022 Facility [Member]
Notes payable principal		$ 79,000	$ 96,000
[1] Promissory note includes an interest rate swap that fixes the SOFR portion of the term loan at an interest rate of 2.16% through October 28, 2022, 2.76% from October 29, 2022 through January 31, 2024, and 3.32% beginning February 1, 2024 through January 31, 2028. [2] A portion of the unsecured line of credit includes an interest rate swap to fix the SOFR portion of the loan at 3.71%.

Note 7 - Debt - Schedule of Debt (Details) (Parentheticals) - USD ($) $ in Millions		9 Months Ended	12 Months Ended
	Oct. 07, 2024	Sep. 30, 2024	Dec. 31, 2023	Jan. 31, 2024	Oct. 28, 2022
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	Bank Credit Spreads [Member]	Secured Overnight Financing Rate (SOFR) [Member]	Secured Overnight Financing Rate (SOFR) [Member]
The 265 Million Note Due January 31, 2028 [Member]
Face amount		$ 265.0	$ 265.0
Interest rate, stated		3.18%	3.18%	2.76%	2.16%
Maturity date		Jan. 31, 2028	Jan. 31, 2028
The 265 Million Note Due January 31, 2028 [Member] | Minimum [Member]
Interest rate, variable		1.45%	1.45%
The 265 Million Note Due January 31, 2028 [Member] | Maximum [Member]
Interest rate, variable		2.10%	2.10%
The 80 Million Note Due June 1, 2027 [Member]
Face amount		$ 80.0	$ 80.0
Interest rate, stated		3.72%	3.72%
Maturity date		Jun. 01, 2027	Jun. 01, 2027
The 19 Million Note Due December 1, 2024 [Member]
Face amount		$ 19.0	$ 19.0
Interest rate, stated		4.15%	4.15%
Maturity date		Dec. 01, 2024	Dec. 01, 2024
The 14 Million Note Due September 11, 2024 [Member]
Face amount		$ 14.0	$ 14.0
Interest rate, stated		4.34%	4.34%
Maturity date		Sep. 11, 2024	Sep. 11, 2024
The 14.3 Million Note Due September 11, 2024 [Member]
Face amount		$ 14.3	$ 14.3
Interest rate, stated		4.34%	4.34%
Maturity date		Sep. 11, 2024	Sep. 11, 2024
The 15.1 Million Note Due January 6, 2024 [Member]
Face amount		$ 15.1	$ 15.1
Interest rate, stated		4.99%	4.99%
Maturity date		Jan. 06, 2024	Jan. 06, 2024
The 50.0 Million Series A Note Due March 22, 2029 [Member]
Face amount		$ 50.0	$ 50.0
Interest rate, stated		5.09%	5.09%
Maturity date		Mar. 22, 2029	Mar. 22, 2029
The 50.0 Million Series B Note Due March 22, 2029 [Member]
Face amount		$ 50.0	$ 50.0
Interest rate, stated		5.17%	5.17%
Maturity date		Mar. 22, 2029	Mar. 22, 2029
The 2.5 Million Note Due February 28, 2025 [Member]
Face amount		$ 2.5
Interest rate, stated		7.79%
Maturity date		Feb. 28, 2025
The $50 Million Note Due September 16, 2026 [Member]
Face amount		$ 50.0	$ 50.0
Interest rate, stated		3.71%	3.71%
Maturity date		Sep. 16, 2026	Sep. 16, 2026
The $50 Million Note Due September 16, 2026 [Member] | Minimum [Member]
Interest rate, variable		1.50%	1.50%
The $50 Million Note Due September 16, 2026 [Member] | Maximum [Member]
Interest rate, variable		2.10%	2.10%
The $56.3 Million Note Due July 31, 2031 [Member]
Face amount		$ 56.3
Interest rate, stated		6.23%
Maturity date		Jul. 31, 2031
The 2022 Facility [Member]
Interest rate, variable		1.50%	1.50%
Maturity date		Sep. 16, 2026	Sep. 16, 2026
Basis Point Credit Spread Adjustment		2.10%	2.10%

Note 7 - Debt - Scheduled Maturities of Outstanding Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
2024 (remaining)	$ 18,062
2025	17,596
2026	146,143
2027	97,414
2028	282,823
Thereafter	72,532
Total	$ 634,570	$ 640,549

Note 8 - Derivatives and Hedging Activities (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jan. 31, 2028	Mar. 31, 2023	Sep. 16, 2022	Sep. 07, 2022	Jan. 31, 2019
Investment, Variable Interest Rate, Type [Extensible Enumeration]						Secured Overnight Financing Rate (SOFR) [Member]
Interest Rate Swap [Member]
Derivative, Notional Amount						$ 50,000
Derivative, Variable Interest Rate						3.71%
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net, Total	$ 0	$ 0	$ 0	$ 0
Interest Rate Swap [Member] | U.S. Bank, Capital One [Member]
Derivative, Notional Amount						$ 10,000
Interest Rate Swap [Member] | Capital One, National Association [Member]
Derivative, Notional Amount						10,000
Interest Rate Swap [Member] | SunTrust Bank [Member]
Derivative, Notional Amount						12,500
Interest Rate Swap [Member] | Associated Bank [Member]
Derivative, Notional Amount						$ 2,500
Interest Rate Swap Three [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount							$ 100,000
Derivative, Fixed Interest Rate							3.32%
Interest Rate Swap Three [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Forecast [Member]
Derivative, Notional Amount					$ 265,000
Interest Rate Swap Three [Member] | Capital One, National Association [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount							$ 20,700
Interest Rate Swap Three [Member] | Capital One, National Association [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Forecast [Member]
Derivative, Notional Amount					54,800
Interest Rate Swap Three [Member] | Associated Bank [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount							5,900
Interest Rate Swap Three [Member] | Associated Bank [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Forecast [Member]
Derivative, Notional Amount					15,700
Interest Rate Swap Three [Member] | U.S. Bank, National Association [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount							20,700
Interest Rate Swap Three [Member] | U.S. Bank, National Association [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Forecast [Member]
Derivative, Notional Amount					54,800
Interest Rate Swap Three [Member] | Truist Bank [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount							$ 25,400
Interest Rate Swap Three [Member] | Truist Bank [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Forecast [Member]
Derivative, Notional Amount					$ 67,200
Interest Rate Swap Two [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount									$ 165,000
Derivative, Fixed Interest Rate									2.43%
Interest Rate Swap Two [Member] | SunTrust Bank [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount									$ 40,000
Interest Rate Swap Two [Member] | Associated Bank [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount									15,000
Interest Rate Swap Two [Member] | U.S. Bank, National Association [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount									32,600
Interest Rate Swap Two [Member] | Regions Bank [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount									$ 29,400
Interest Rate Swap Two [Member] | Bank of Montreal [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount								$ 29,400

Note 8 - Derivatives and Hedging Activities - Fair Value of Interest Rate Swaps (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts Payable and Accrued Liabilities [Member]
Interest rate swaps, liabilities	$ (682)
Prepaid Expenses and Other Current Assets [Member]
Interest rate swaps, assets		$ 2,613

Note 8 - Derivatives and Hedging Activities - Summary of Interest Rate Swap Activity (Details) - USD ($) $ in Thousands		3 Months Ended						9 Months Ended
		Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest		$ 7,723			$ 2,521			$ 19,813	$ 17,887
Interest Expense, Nonoperating		8,506			8,400			25,813	24,563
Amount Recognized as Comprehensive income		$ (8,946)	$ 643	$ 5,007	$ 4,094	$ 7,095	$ (4,587)	$ (3,296)	$ 6,602
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Expense, Nonoperating			Interest Expense, Nonoperating			Interest Expense, Nonoperating	Interest Expense, Nonoperating
Interest Rate Swap [Member]
Amount Recognized as Comprehensive income		$ (8,946)			$ 4,094			$ (3,296)	$ 6,602
Amount of Income (Loss) Recognized in Earnings	[1]	$ 1,556			$ 1,929			$ 4,804	$ 4,833
[1] There was no ineffective portion of our interest rate swaps to recognize in earnings for the three and nine months ended September 30, 2024 and 2023.

Note 9 - Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
OP Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	649,200	693,595	653,990	694,054

Note 9 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net income	$ 7,723	$ 2,521	$ 19,813	$ 17,887
Less: Net income attributable to noncontrolling interests	(99)	(35)	(257)	(248)
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares	$ 7,624	$ 2,486	$ 19,556	$ 17,639
Basic (in shares)	50,297	49,534	50,067	49,472
Unvested restricted shares (in shares)	1,008	1,103	1,039	927
Weighted average number of common shares - dilutive (in shares)	51,305	50,637	51,106	50,399
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares (in dollars per share)	$ 0.15	$ 0.05	$ 0.39	$ 0.36
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares (in dollars per share)	$ 0.15	$ 0.05	$ 0.38	$ 0.35

Note 10 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Applicable Tax Rate Used to Determine State Margin Tax	0.75%		0.75%
Margin Tax Provision Recognized	$ 117,000	$ 95,000	$ 348,000	$ 339,000

Note 11 - Equity (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	May 20, 2022	May 31, 2019
Common Stock, Shares Authorized (in shares)	400,000,000		400,000,000			400,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001		$ 0.001			$ 0.001
Preferred Stock, Shares Authorized (in shares)	50,000,000		50,000,000			50,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001		$ 0.001			$ 0.001
Issuance and Sale of Securities, Maximum							$ 500,000,000
Proceeds from Issuance of Common Stock			$ 7,620,000	$ 0
Payments of Stock Issuance Costs			$ 81,000	$ (0)
Conversion Ratio for Class Common Stock to OP Unit (in dollars per share)	$ 1		$ 1		$ 1
Conversion of OP Units to Common Stock [Member]
Conversion of Stock, Shares Converted (in shares)	0	548	43,747	1,423
OP Units [Member]
Units of Partnership Interest, Amount (in shares)	51,174,240		51,174,240			50,182,938
General Partners' Capital Account, Units Outstanding (in shares)	50,525,040		50,525,040			49,489,991
Operating Partnership [Member]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest			98.70%
Weighted-Average Share Ownership	98.70%	98.60%	98.70%	98.60%
The 2019 Equity Distribution Agreements [Member]
Equity Distribution Agreements, Authorized Amount								$ 100,000,000
The 2022 Equity Distribution Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)	579,964	0	579,964	0
Proceeds from Issuance of Common Stock	$ 7,600,000		$ 7,600,000
Payments of Stock Issuance Costs	$ 116,000		$ 116,000

Note 11 - Equity - Cash Distributions Paid or Payable (Details) - Cash Distribution [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended							9 Months Ended	12 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Dec. 31, 2023
Amount Paid	$ 6,274	$ 6,242	$ 6,049	$ 6,013	$ 6,011	$ 5,996	$ 5,996	$ 18,565	$ 24,016
Common Stock [Member]
Distributions Per Common Share (in dollars per share)	$ 0.1238	$ 0.1238	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.3676	$ 0.48
Amount Paid	$ 6,194	$ 6,162	$ 5,969	$ 5,930	$ 5,928	$ 5,913	$ 5,913	$ 18,325	$ 23,684
OP Units [Member]
Distributions Per Common Share (in dollars per share)	$ 0.1238	$ 0.1238	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.3676	$ 0.48
Amount Paid	$ 80	$ 80	$ 80	$ 83	$ 83	$ 83	$ 83	$ 240	$ 332

Note 12 - Incentive Share Plan (Details Textual) - USD ($)										3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 07, 2024	Mar. 04, 2024	Jan. 01, 2024	Mar. 07, 2023	Dec. 19, 2022	Mar. 28, 2022	Sep. 30, 2021	Jun. 30, 2021	Sep. 06, 2017	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	May 11, 2017
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)					24,134							372,583				480,184	360,334
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)												33 months
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)					$ 12.44							$ 13.84				$ 9.3	$ 11.61
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)												404,171				231,600	519,003
Share-Based Payment Arrangement, Expense										$ 1,281,000	$ 1,083,000	$ 3,105,000	$ 2,712,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage												100.00%
Forecast [Member]
Share-Based Payment Arrangement, Expense														$ 6,300,000	$ 4,500,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Month)															25 months
Market Based Vesting TSR Units [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount										$ 4,000,000		$ 4,000,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Month)												27 months
Market Based Vesting TSR Units [Member] | Issued 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Awarded Based on Ranking										200.00%		200.00%
Market Based Vesting TSR Units [Member] | Issued 2023 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Awarded Based on Ranking										150.00%		150.00%
Market Based Vesting TSR Units [Member] | Issued 2024 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Awarded Based on Ranking										0.00%		0.00%
Time-based Restricted Common Share Units [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount										$ 3,400,000		$ 3,400,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Month)												33 months
The 2018 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)																		3,433,831
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)										945,241		945,241				1,452,433
The 2018 Plan [Member] | Market Based Vesting TSR Units [Member] | Share-Based Payment Arrangement, Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)		203,518		228,025		162,556		433,200
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)						3 years		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Awarded Based on Ranking			200.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)		$ 15.12		$ 9.55		$ 13.74		$ 4.17
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Options to be Converted to Cash (in shares)								111,465
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)			210,400
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares)			420,800
The 2018 Plan [Member] | Market Based Vesting TSR Units [Member] | Share-Based Payment Arrangement, Employee [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Awarded Based on Ranking		0.00%		0.00%		0.00%		0.00%
The 2018 Plan [Member] | Market Based Vesting TSR Units [Member] | Share-Based Payment Arrangement, Employee [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Awarded Based on Ranking		200.00%		200.00%		200.00%		200.00%
The 2018 Plan [Member] | Time-based Restricted Common Share Units [Member] | Share-Based Payment Arrangement, Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)		169,065		228,025		162,556	5,500	433,200
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)				3 years			3 years	3 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 8.72	$ 12.29				$ 9.94	$ 9.06	$ 7.51
The 2008 Plan [Member] | Performance-based Restricted Common Share Units [Member] | Immediate Vesting Upon Change in Control [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)									965,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)										455,000		455,000

Note 12 - Incentive Share Plan - Summary of Share-based Incentive Plan Activity (Details) - The 2018 Plan [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Non-vested at January 1, 2023 (in shares)	1,452,433
Non-vested at January 1, 2023 (in dollars per share) | $ / shares	$ 10.12
Granted, shares (in shares)	372,583
Granted, weighted average grant date fair value (in dollars per share) | $ / shares	$ 13.84
Vested, shares (in shares)	(404,171)
Vested, weighted average grant date fair value (in dollars per share) | $ / shares	$ 6.3
Forfeited, shares (in shares)	(475,604)
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares	$ 12.94
Non-vested, shares (in shares)	945,241
Non-vested, weighted average grant date fair value (in dollars per share) | $ / shares	$ 11.8
Available for grant, shares (in shares)	772,581

Note 12 - Incentive Share Plan - Summary of Non-vested and Vested Shares Activity (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended	12 Months Ended
	Dec. 19, 2022	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Non-Vested Shares Issued (in shares)	24,134	372,583	480,184	360,334
Weighted Average Grant- Date Fair Value (in dollars per share)	$ 12.44	$ 13.84	$ 9.3	$ 11.61
Vested Shares (in shares)		(404,171)	(231,600)	(519,003)
Total Vest-Date Fair Value		$ 2,546	$ 1,841	$ 3,442

Note 13 - Grants to Trustees (Details Textual)		9 Months Ended	12 Months Ended
	Dec. 19, 2022 $ / shares shares	Sep. 30, 2024 $ / shares shares	Dec. 31, 2023 $ / shares shares	Dec. 31, 2022 $ / shares shares
Number of Independent Trustees	5
Number of Trustee Emeritus	1
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | shares	24,134	372,583	480,184	360,334
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 12.44	$ 13.84	$ 9.3	$ 11.61

Note 15 - Real Estate (Details Textual) $ in Thousands									3 Months Ended		9 Months Ended
	Aug. 09, 2024 USD ($)	Apr. 05, 2024 USD ($) ft²	Apr. 01, 2024 USD ($)	Mar. 27, 2024 USD ($)	Feb. 20, 2024 USD ($) ft²	Dec. 20, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 12, 2023 USD ($) ft²	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property									$ 3,762	$ 5	$ 10,212	$ 9,626
Fountain Hills Plaza in Phoenix Arizona [Member]
Proceeds from Sale of Productive Assets	$ 21,300
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	$ 3,600
Mercado at Scottsdale Ranch [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Proceeds from Sale of Productive Assets				$ 26,500
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property				$ 6,600
Spoerlein Commons [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Proceeds from Sale of Productive Assets						$ 7,400
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property						$ 700
Westchase [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Proceeds from Sale of Productive Assets							$ 7,800
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property							4,600
Sunridge [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Proceeds from Sale of Productive Assets							6,700
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property							$ 5,000
Scottsdale Commons [Member]
Payments to Acquire Productive Assets		$ 22,200
Area of Real Estate Property (Square Foot) | ft²		69,482
Asset Acquisition Percent of Property Leased		96.60%
Anderson Arbor Pad [Member]
Payments to Acquire Productive Assets			$ 900
Garden Oaks Shopping Center [Member]
Payments to Acquire Productive Assets					$ 27,200
Area of Real Estate Property (Square Foot) | ft²					106,858
Asset Acquisition Percent of Property Leased					95.80%
Arcadia Towne Center [Member]
Payments to Acquire Productive Assets								$ 25,500
Area of Real Estate Property (Square Foot) | ft²								69,503
Asset Acquisition Percent of Property Leased								100.00%

Note 16 - Related Party Transactions (Details Textual) - Beneficial Owner [Member] - Pillarstone REIT [Member]	9 Months Ended
	Sep. 30, 2024
Chief Executive Officer [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	66.70%
Chief Operating Officer [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	20.00%

Note 16 - Related Party Transactions - Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Rent	$ (7,303)	$ (6,862)	$ (20,667)	$ (19,847)
Pillarstone OP [Member] | Rent [Member]
Rent	0	0	0	(15)
Pillarstone OP [Member] | Property Management Fee Income [Member] | Management, Transaction, and Other Fees [Member]
Property Management Fee Revenue	$ 0	$ 0	$ 0	$ 0

Note 17 - Commitments and Contingencies (Details Textual) - USD ($)	Apr. 24, 2024	Dec. 01, 2023	May 09, 2023	Sep. 16, 2022	Feb. 23, 2022	Oct. 24, 2023	Sep. 01, 2023
Bankruptcy of Whitestone Uptown Tower LLC [Member] | Settled Litigation [Member]
Litigation Settlement, Amount Awarded to Other Party		$ 13,632,764
Litigation Settlement Interest		$ 1,688,000
Bankruptcy of Whitestone Uptown Tower LLC [Member] | Settled Litigation [Member] | Pillarstone OP [Member]
Litigation Settlement, Amount Awarded to Other Party	$ 1,123,950.24
Bankruptcy of Whitestone Uptown Tower LLC [Member] | Settled Litigation [Member] | Pillarstone OP [Member] | Maximum [Member]
Legal Fees	$ 20,000
Litigation Between Company and Former COO [Member] | Pending Litigation [Member]
Loss Contingency, Damages Sought, Value			$ 1,000,000
Litigation between the Company and Pillarstone REIT [Member] | Pending Litigation [Member]
Loss Contingency, Damages Sought, Value				$ 1,000,000
Mastandrea V Whitestone R E I T And Certain Company Trustees [Member] | Pending Litigation [Member]
Loss Contingency, Damages Sought, Value					$ 25,000,000
Property Located at 4144 North Central Expressway in Dallas [Member]
Guarantor Obligations, Maximum Exposure, Undiscounted							$ 14,400,000
Uptown Tower [Member] | Performance Guarantee [Member] | Guarantee Obligations [Member]
Guarantee Obligation, Additional Amount Due						$ 4,600,000
Interest Payable						6,300,000
Escrow Deposit						$ 1,700,000

Note 18 - Subsequent Events (Details Textual)		9 Months Ended	12 Months Ended
	Oct. 07, 2024	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	Bank Credit Spreads [Member]	Secured Overnight Financing Rate (SOFR) [Member]	Secured Overnight Financing Rate (SOFR) [Member]
Subsequent Event [Member] | Series One Incremental Term Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	3.665%
Debt Instrument, Basis Spread on Variable Rate	1.50%
Subsequent Event [Member] | Series One Incremental Term Loan [Member] | Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.165%

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