JMP Maintains Market Outperform Rating on Whitestone REIT (WSR)

Whitestone REIT (NYSE:WSR) is one of the most undervalued stocks. On June 18, JMP Securities maintained a Market Outperform rating on WSR with a $16 price target, driven by the company’s latest Texas acquisition.

The firm sees Whitestone’s new asset purchase as a strategic move that bolsters its presence in a market with solid fundamentals. The deal aligns with its focus on high-traffic tenants, steady income streams, and mark-to-market opportunities.

Whitestone’s real estate portfolio currently includes 57 properties concentrated in the Texas and Arizona markets, which JMP mentioned for their robust demographic growth trajectories. The analysts highlight that the company has regularly shown better-than-average performance from these properties.

JMP praised Whitestone REIT (NYSE:WSR)’s focused expansion in primary markets and its efforts to upgrade asset quality. The firm noted that proceeds from selling underperforming assets at favorable margins are reinvested into higher-return opportunities, driving immediate earnings upside.

Analysts pointed out that Whitestone’s stock is priced below 12 times its expected 2025 FFO, around two times less than the average for similar REITs. JMP says this is unfair, since Whitestone is growing faster, has better market coverage, and is lowering its debt. Its current ratio of 2.65 shows it has more than enough liquid assets to cover short-term needs.

Whitestone REIT (NYSE:WSR) is a community-centric REIT specializing in the acquisition, development, and management of open-air retail centers across high growth US markets, including Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio.

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