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Whitestone Rewards Investors With 9% Dividend Hike: Is it Sustainable?

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Whitestone REIT’s (WSR - Free Report) board of trustees recently declared a monthly cash dividend on its common shares and operating partnership units of 4.5 cents per share for the first quarter of 2025, representing a 9% increase from the previous dividend payout.

The increased monthly dividend will be initially paid out on Jan. 14, to its shareholders of record as of Jan. 2, 2025.

The dividend increase is likely to uphold a solid payout ratio of approximately 50% of core funds from operations (FFO), as Whitestone continues to enhance its history of growing earnings, raising dividend distributions and improving its balance sheet by lowering debt leverage.

Whitestone is committed to increasing its quarterly dividends to align with the growth of the company’s earnings. Looking ahead to 2025, the company plans to utilize its expertise and leadership status in high-return retail spaces to bolster significant earnings growth.

Solid dividend payouts are the biggest enticements for real estate investment trust (REIT) investors and Whitestone remains committed in boosting its shareholder’s wealth. The dividend hike indicates its ability to generate decent cash flow through its operating portfolio.

In the past six months, shares of this Zacks Rank #4 (Sell) company have gained 7.2% compared with the industry’s growth of 13.3%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower (WELL - Free Report) and Alpine Income Property Trust (PINE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s 2024 FFO per share is pinned at $4.26, implying year-over-year growth of 17%.

The Zacks Consensus Estimate for Alpine Income’s 2024 FFO per share is $1.70, indicating an increase of 15.7% from the year-ago reported figure.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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