Whitestone REIT: Red Light, Green Light, Or Sit Tight (Yellow)?
- After reading this article, you will know where I stand, with regard to Whitestone REIT: Red Light, Green Light, Or Just Sit Tight?
- WSR has not increased its dividend since going public (maintains $1.14 per year dividend payout).
- Given the substantial value that WSR could unlock, it seems that the company could generate cheap capital by tapping into the Net Lease piggy-bank.
It’s been almost a year since I provided readers with an update on Whitestone REIT (WSR), and a more recent downgrade from a Buy to a Hold. It seems that I am not the only analyst that has hit the brakes with this small-cap shopping center REIT. Here is what a few of my peers had to say,
Beyond Saving said, “Those looking for a long term buy and hold stock should look elsewhere. WSR is being used as a cash cow and there is not going to be any long-term price growth. Any growth is going straight to the pockets of management, not the shareholders.
Colorado Wealth Management said, “There are many better options in the sector that continually raise the dividend and have ample coverage.”
Achilles Research said, “An investment in WSR is only suitable for investors with a very high-risk tolerance.”
While I respect the work of these writers, I will take a closer look at the fundamentals to determine whether I side with them, or whether to upgrade shares. Notably, I have already downgraded WSR to a Hold, and there is also the option for a downgrade to a Sell.
After reading this article, you will know where I stand, with regard to Whitestone REIT: Red Light, Green Light, Or Just Sit Tight?