Whitestone REIT

Greetings and welcome to Whitestone Reads fourth quarter and year-end 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, David Morty, Whitestone Reads Director of Investor Relations. Thank you. You may begin.

Good morning and thank you for joining Whitestone REIT's fourth quarter 2021 earnings conference call. Joining me today on today's call are Dave Holman, Chief Executive Officer, Christine Mastendrea, Chief Operating Officer, and Scott Hogan, Chief Financial Officer. Please note that some statements made during this call are not historical and may be deemed forward-looking statements. Actual results may differ materially from those forward-looking statements due to a number of risks, uncertainties, and other factors. Please refer to the company's earning news release and filings with the SEC, including Whitestone's most recent Form 10-K, for a detailed discussion of these factors. Acknowledging the fact that this call may be webcast for a period of time, it is also important to note that this call includes time-sensitive information that may be accurate only as of today's date, March 2, 2022. The company undertakes no obligation to update this information. Whitestone's fourth quarter earnings news release and supplemental operating and financial data package have been filed with the SEC and are available on our website, whitestonereit.com, in the investor relations section. I will now turn the call over to Dave Holman, our chief executive officer.

Thank you, David. Good morning, and thank you for joining Whitestone's fourth quarter 2021 earnings conference call. We had strong 2021 results. as we derived the benefits from our ongoing focus on leasing in some of the fastest growing markets in the country in Arizona and Texas. To that point, our financial performance for the quarter was highlighted by revenue growth of 11.5% for 2021 Q4 versus 2020 Q4. Same store net operating income rose 12.8% over the same period. The improvement was driven by increases in occupancy, positive leasing spreads, and annual base rent per square foot growth. We also delivered a full year per share FFO growth of 8.9%, adjusting for 2020 loan forgiveness as our centers profited from the ongoing migration of corporations and individuals to our markets. I am thrilled to have several new members of our senior management team on the call with me today. David Morty, who began the call, recently joined Whitestone, and Christine Massandrea, our recently promoted COO, has been with us since 2006, focusing on operations and strategic initiatives, and today will provide some insight on our operating metrics, leasing focus, and our plans to drive growth. Scott Hogan, our recently promoted CFO, has been with us since 2008 as our controller and will take us through the numbers today and provide insight into our 2022 outlook. While I've been at the helm of Whitestone for less than 60 days, I have been with the business since near inception. As part of the seriousness related to our commitment to be good stewards of invested capital, we believe that the recent and decisive actions taken by the Board of Directors these past two months affirm theirs and management's focus to unlock and build shareholder value. With the new leadership in place, we expect to build on our 2021 progress as we move through 2022 to maximize returns from our existing portfolio. We also know that that begins and ends with leasing. This is our number one priority. Today, I will touch upon some of the many steps that have been taken to ensure that as we execute on our leasing objectives, the company is aligned to drive incremental value and cash flow. I will also provide a high-level view of our motivation for change and begin to lay out the strategy going forward. To these points, we've had a number of announcements related to management and governance. Our motivation for change is quite simple. We are laser focused on maximizing value for shareholders with a renewed commitment to listen to shareholders and to execute. We are energized by many of the initiatives that are being implemented, including, first, our commitment to reduce general and administrative costs. As part of the culture and strategy shift that is well underway at Whitestone, there will be an immediate reduction in G&A costs, particularly associated with management compensation. Second, we are committed to the alignment of corporate governance best practices. The Whitestone Board regularly reviews and aligns with best practices as they relate to corporate governance, and the termination of the shareholder rights plan, or commonly known as a poison pill, in February advances that objective. In reaching its decision to terminate the plan, the Board took into careful consideration shareholder feedback received as part of our ongoing outreach and engagement process. Third, we are committed to minimize share dilution and maximize value. We intend to focus on increasing FFO per share from organic initiatives. We do not expect to close on any acquisitions in the first half of 2022 with our near-term and long-term focus on leasing our existing properties and reducing overhead expenses. Fourth, our geographic focus remains on the nation's highest growth markets in the Sunbelt. And we believe our mix of entrepreneurial tenants further optimizes our growth potential. It is important to call out the strength of our markets. We have a portfolio that is located in the right markets and in many high demand and high traffic locations. Our strategy remains straightforward. We have a very simple and easy to understand business plan. Our intention is to enhance our approach and execute on our strategy to drive revenue and occupancy. Fifth, we understand that we need to grow. but we must do it in a disciplined and thoughtful manner. We will not grow for growth's sake, but our growth will be guided by disciplined capital stewardship. Our new team is in place, and with our best in class geography and strategically designed tenant mix, we are positioned to drive leasing and to scale the business. In 2022, we will also evaluate the entire portfolio and determine if there are properties we should monetize and redeploy the proceeds into acquisitions, development, or balance sheet improvement. As we move into 2022, we will look to build on our 2021 record leasing activity, increasing occupancy, and strong annualized base rent growth. Together with our focus on cost reductions, we expect to drive best in class earnings per share growth in 2022 that will position Whitestone to prosper for years to come. With that, I will now turn the call over to Christine.