|                                                   |        |                     |
|---------------------------------------------------|--------|---------------------|
| Maryland                                          |   | 76-0594970          |
| (State or Other Jurisdiction of  incorporation or |   | (I.R.S. Employer    |
| Organization)                                     |   | Identification No.) |
|                                              |   |                |
| 2600 South Gessner, Suite 500 Houston, Texas      |   | 77063               |
| (Address of Principal Executive Offices)          |   | (Zip Code)          |

|                                                                          |        |                                           |  |  |
|--------------------------------------------------------------------------|--------|-------------------------------------------|--|--|
| Title of each class                                                      |   | Name of each exchange on which registered |
| Class B Common Shares of Beneficial Interest, par value $0.001 per share |   | NYSE Amex                                 |

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|              |                                                   |                            |        |
|--------------|---------------------------------------------------|----------------------------|--------|
| Page         |
|         |                                              |                       |   |
| PART I  |                                              | 1                          |
|         | Item 1.                                           | Business.             | 1      |
|         | Item 1A.                                          | Risk Factors.         | 5      |
|         | Item 1B.                                     | Unresolved Staff Comments. | 17     |
|         | Item 2.                            | Properties.                | 17     |
|         | Item 3.                       | Legal Proceedings.         | 21     |
|         | Item 4.        | Reserved.                  | 21     |

|         |                                                   |                                                                                                                           |    |
|---------|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|----|
| PART II |                                              | 22                                                                                                                        |
|    | Item 5.                                 | Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.  | 22 |
|    | Item 6.                                           | Selected Financial Data.                                                                                                  | 24 |
|    | Item 7.                                      | Management’s Discussion and Analysis of Financial Condition and Results of Operations.                         | 26 |
|    | Item 7A.                           | Quantitative and Qualitative Disclosures About Market Risk.                                                          | 42 |
|    | Item 8.                       | Consolidated Financial Statements and Supplementary Data.                                                                 | 42 |
|    | Item 9.        | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.                                     | 42 |
|    | Item 9A(T).                             | Controls and Procedures.                                                                                                  | 42 |
|    | Item 9B.                                     | Other Information.                                                                                                        | 43 |

|                      |                                  |                                                                                                       |    |
|----------------------|----------------------------------|-------------------------------------------------------------------------------------------------------|----|
| PART  III  |                             | 44                                                                                                    |
|                 | Item 10.               | Trustees, Executive Officers and Corporate Governance.                                                | 44 |
|                 | Item 11.                         | Executive Compensation.                                                                          | 44 |
|                 | Item 12.                    | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.  | 44 |
|                 | Item 13.          | Certain Relationships and Related Transactions, and Director Independence.                       | 44 |
|                 | Item 14.     | Principal Accountant Fees and Services.                                                               | 44 |

|               |                      |                                             |        |
|---------------|----------------------|---------------------------------------------|--------|
| PART  IV |                 | 45                                          |
|          | Item 15.   | Exhibits and Financial Statement Schedules. | 45     |
|          |                 |                                        |   |
|          |                 | SIGNATURES.                                 | 46     |

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|                                |                                                                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| •     | the imposition of federal taxes if we fail to qualify as a REIT in any taxable year or forego an opportunity to ensure REIT status; |

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

|                                |                                                                               |
|--------------------------------|-------------------------------------------------------------------------------|
| •     | legislative or regulatory changes, including changes to laws governing REITs; |

|                                |                                                                             |
|--------------------------------|-----------------------------------------------------------------------------|
| •     | adverse economic or real estate developments in Texas, Arizona or Illinois; |

|                                |                                                  |
|--------------------------------|--------------------------------------------------|
| •     | increases in interest rates and operating costs; |

|                                |                                                  |
|--------------------------------|--------------------------------------------------|
| •     | inability to obtain necessary outside financing; |

|                                |                   |
|--------------------------------|-------------------|
| •     | litigation risks; |

|                                |                 |
|--------------------------------|-----------------|
| •     | lease-up risks; |

|                                |                                                                         |
|--------------------------------|-------------------------------------------------------------------------|
| •     | inability to obtain new tenants upon the expiration of existing leases; |

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

|                                |                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------|
| •     | the need to fund tenant improvements or other capital expenditures out of operating cash flow. |

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|                                |                                     |
|--------------------------------|-------------------------------------|
| •     | Strategically Acquiring Properties. |

|                                 |                                                                                                                                                                                                                                                                                                                                                                    |
|---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦     | Seeking High Growth Markets.  We seek to strategically acquire commercial properties in high-growth markets. Our acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Phoenix, Chicago, Dallas, San Antonio and Houston, five of the top 20 markets in the United States in terms of population growth. |

|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦     | Diversifying Geographically.  Our current portfolio is concentrated in Houston. We believe that continued geographic diversification in markets where we have substantial knowledge and experience will help offset the economic risk from a single market concentration. We intend to continue to focus our expansion efforts on the Phoenix, Chicago, Dallas and San Antonio markets. We believe our management infrastructure and capacity can accommodate substantial growth in those markets. We may also pursue opportunities in other Southwestern and Western regions that are consistent with our Community Centered Property strategy. |

|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦     | Capitalizing on Availability of Distressed Assets.  We believe that during the next several years there will be excellent opportunities in our target markets to acquire quality properties at historically attractive prices. We intend to acquire distressed assets directly from owners or financial institutions holding foreclosed real estate and debt instruments that are either in default or on bank watch lists. Many of these assets may benefit from our corporate strategy and our management team’s experience in turning around distressed properties, portfolios and companies. We have extensive relationships with community banks, attorneys, title companies, and others in the real estate industry with whom we regularly work to identify properties for potential acquisition. |

|                                |                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Redeveloping and Re-tenanting Existing Properties.  We “turn around” properties and seek to add value through renovating and re-tenanting our properties to create Whitestone-branded Community Centered Properties. We seek to accomplish this by (1) stabilizing occupancy, with per property occupancy goals of 90% or higher; (2) adding leasable |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Recycling Capital for Greater Returns.  We seek to continually upgrade our portfolio by opportunistically selling properties that do not have the potential to meet our Community Centered Property strategy and redeploying the sale proceeds into properties that better fit our strategy. Some of our properties which were acquired prior to the tenure of our current management team may not fit our Community Centered Property strategy, and we may look for opportunities to dispose of these properties as we continue to execute our strategy. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Prudent Management of Capital Structure.  We currently have 15 properties that are not mortgaged. We may seek to add mortgage indebtedness to existing and newly acquired unencumbered properties to provide additional capital for acquisitions.  As a general policy, we intend to maintain a ratio of total indebtedness to undepreciated book value of real estate assets that is less than 60%. As of December 31, 2010, our ratio of total mortgage indebtedness to undepreciated book value of real estate assets was 49%. |

|                                |                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Investing in People.  We believe that our people are the heart of our culture, philosophy and strategy. We continually focus on developing associates who are self-disciplined and motivated and display at all times a high degree of character and competence.  We provide them with equity incentives to align their interests with those of our shareholders. |

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|                                |                                  |
|--------------------------------|----------------------------------|
| •     | conditions in financial markets; |

|                                |                               |
|--------------------------------|-------------------------------|
| •     | over-building in our markets; |

|                                |                                                                                           |
|--------------------------------|-------------------------------------------------------------------------------------------|
| •     | a reduction in rental income as the result of the inability to maintain occupancy levels; |

|                                |                                                                               |
|--------------------------------|-------------------------------------------------------------------------------|
| •     | adverse changes in applicable tax, real estate, environmental or zoning laws; |

|                                |                                         |
|--------------------------------|-----------------------------------------|
| •     | changes in general economic conditions; |

|                                |                                                      |
|--------------------------------|------------------------------------------------------|
| •     | a taking of any of our properties by eminent domain; |

|                                |                                                                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
| •     | adverse local conditions (such as changes in real estate zoning laws that may reduce the desirability of real estate in the area); |

|                                |                                                                        |
|--------------------------------|------------------------------------------------------------------------|
| •     | acts of God, such as earthquakes or floods and other uninsured losses; |

|                                |                                                                                |
|--------------------------------|--------------------------------------------------------------------------------|
| •     | changes in supply of or demand for similar or competing properties in an area; |

|                                |                                                                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | changes in interest rates and availability of permanent mortgage funds, which may render the sale of a property difficult or unattractive; and |

|                                |                                                        |
|--------------------------------|--------------------------------------------------------|
| •     | periods of high interest rates and tight money supply. |

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|                                |                                                                                            |
|--------------------------------|--------------------------------------------------------------------------------------------|
| •     | tenants may choose not to, or may not have the financial resources to, renew these leases; |

|                                |                                                                                                             |
|--------------------------------|-------------------------------------------------------------------------------------------------------------|
| •     | we may experience significant costs associated with re-leasing a significant amount of our available space; |

|                                |                                                                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | we may not be able to easily re-lease the space subject to these leases, which may cause us to fail to meet our leasing targets or control the costs of re-leasing; and |

|                                |                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------|
| •     | the terms of any renewal or re-lease may be less favorable than the terms of the current leases. |

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|                                |                                                                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | competition from other real estate investors with significant capital, including other publicly-traded REITs and institutional investment funds; |

|                                |                                                                                                                                                                    |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | competition from other potential acquirers which may significantly increase the purchase price for a property we acquire, which could reduce our growth prospects; |

|                                |                                                                                                                       |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------|
| •     | unsatisfactory results of our due diligence investigations or failure to meet other customary closing conditions; and |

|                                |                                                                 |
|--------------------------------|-----------------------------------------------------------------|
| •     | failure to finance an acquisition on favorable terms or at all. |

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|                                |                                          |
|--------------------------------|------------------------------------------|
| •     | a merger, tender offer or proxy contest; |

|                                |                                                                      |
|--------------------------------|----------------------------------------------------------------------|
| •     | assumption of control by a holder of a large block of our shares; or |

|                                |                                  |
|--------------------------------|----------------------------------|
| •     | removal of incumbent management. |

|                                |                                                                                                        |
|--------------------------------|--------------------------------------------------------------------------------------------------------|
| •     | we would not be allowed to deduct our distributions to shareholders when computing our taxable income; |

|                                |                                                                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | we would be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates; |

|                                |                                                                                                                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | we would be disqualified from being taxed as a REIT for the four taxable years following the year during which qualification was lost, unless entitled to relief under certain statutory provisions; |

|                                |                                                                        |
|--------------------------------|------------------------------------------------------------------------|
| •     | our cash available for dividends to shareholders would be reduced; and |

|                                |                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | we may be required to borrow additional funds or sell some of our assets in order to pay corporate tax obligations that we may incur as a result of our disqualification. |

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|                                |                                                    |
|--------------------------------|----------------------------------------------------|
| •     | the amount of the cash available for distribution; |

|                                |                                                        |
|--------------------------------|--------------------------------------------------------|
| •     | our Operating Partnership’s financial condition; |

|                                |                                                                         |
|--------------------------------|-------------------------------------------------------------------------|
| •     | our Operating Partnership’s capital expenditure requirements; and |

|                                |                                                                                         |
|--------------------------------|-----------------------------------------------------------------------------------------|
| •     | our annual distribution requirements necessary to maintain our qualification as a REIT. |

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|                                     |        |                     |        |                                      |        |                                                       |        |                                                     |        |        |        |        |      |        |
|-------------------------------------|--------|---------------------|--------|--------------------------------------|--------|-------------------------------------------------------|--------|-----------------------------------------------------|--------|--------|--------|--------|------|--------|
| Commercial Properties               |   | Leasable SquareFeet |   | AverageOccupancy as of 12/31/10 |   | Annualized BaseRental Revenue (in thousands) (1) |   | AverageAnnualized BaseRental RevenuePer Sq. Ft. (2) |
| Retail                              |   | 1,188,830           |   |                                 | 88     | %                                                     |   | $                                                   | 9,843  |   |   | $      | 9.41 |   |
| Office/Flex                         |   | 1,201,672           |   |                                 | 88     | %                                                     |   | 7,670                                               |   |   | 7.25   |   |
| Office                              |   | 631,841             |   |                                 | 79     | %                                                     |   | 8,084                                               |   |   | 16.20  |   |
| Total - Operating Portfolio         |   | 3,022,343           |   |                                 | 86     | %                                                     |   | 25,597                                              |   |   | 9.85   |   |
| Redevelopment, New Acquisitions (3) |   | 139,677             |   |                                 | 40     | %                                                     |   | 612                                                 |   |   | 10.95  |   |
| Total                               |   | 3,162,020           |   |                                 | 84     | %                                                     |   | $                                                   | 26,209 |   |   | $      | 9.87 |   |

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|              |        |      |        |        |        |        |        |      |        |        |        |        |        |     |        |        |     |        |
|--------------|--------|------|--------|--------|--------|--------|--------|------|--------|--------|--------|--------|--------|-----|--------|--------|-----|--------|
|         |   | July |   | Aug.   |   | Sept.  |   | Oct. |   | Nov.   |   | Dec.   |
| National (1) |   | 9.5  | %      |   | 9.6    | %      |   | 9.6  | %      |   | 9.7    | %      |   | 9.8 | %      |   | 9.4 | %      |
| Houston (2)  |   | 8.8  |   |   | 8.7    |   |   | 8.2  |   |   | 8.2    |   |   | 8.6 |   |   | 8.3 |   |

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|                             |        |                      |        |                            |        |                     |        |                            |        |                                                       |        |                                          |        |        |        |        |       |        |
|-----------------------------|--------|----------------------|--------|----------------------------|--------|---------------------|--------|----------------------------|--------|-------------------------------------------------------|--------|------------------------------------------|--------|--------|--------|--------|-------|--------|
|   Property Name   |   |   Location |   |  Year Built/Renovated |   | LeasableSquare Feet |   | PercentOccupied at12/31/10 |   | Annualized BaseRental Revenue (in thousands) (1) |   | AverageBase RentalRevenue PerSq. Ft. (2) |
| Retail Properties:          |   |                 |   |                       |   |                |   |                       |   |                                                  |   |                                     |
| Bellnott Square             |   | Houston              |   | 1982                       |   | 73,930              |   |                       | 35     | %                                                     |   | $                                        | 266    |   |   | $      | 10.28 |   |
| Bissonnet/Beltway           |   | Houston              |   | 1978                       |   | 29,205              |   |                       | 95     | %                                                     |   | 256                                      |   |   | 9.23   |   |
| Centre South                |   | Houston              |   | 1974                       |   | 39,134              |   |                       | 82     | %                                                     |   | 312                                      |   |   | 9.72   |   |
| Greens Road                 |   | Houston              |   | 1979                       |   | 20,507              |   |                       | 85     | %                                                     |   | 145                                      |   |   | 8.32   |   |
| Holly Knight                |   | Houston              |   | 1984                       |   | 20,015              |   |                       | 100    | %                                                     |   | 326                                      |   |   | 16.29  |   |
| Kempwood Plaza              |   | Houston              |   | 1974                       |   | 101,008             |   |                       | 100    | %                                                     |   | 876                                      |   |   | 8.67   |   |
| Lion Square                 |   | Houston              |   | 1980                       |   | 119,621             |   |                       | 99     | %                                                     |   | 801                                      |   |   | 6.76   |   |
| Providence                  |   | Houston              |   | 1980                       |   | 90,327              |   |                       | 99     | %                                                     |   | 786                                      |   |   | 8.79   |   |
| Shaver                      |   | Houston              |   | 1978                       |   | 21,926              |   |                       | 98     | %                                                     |   | 239                                      |   |   | 11.12  |   |
| South Richey                |   | Houston              |   | 1980                       |   | 69,928              |   |                       | 94     | %                                                     |   | 548                                      |   |   | 8.34   |   |
| Spoerlein Commons           |   | Chicago              |   | 1987                       |   | 41,455              |   |                       | 90     | %                                                     |   | 733                                      |   |   | 19.65  |   |
| SugarPark Plaza             |   | Houston              |   | 1974                       |   | 95,032              |   |                       | 100    | %                                                     |   | 935                                      |   |   | 9.84   |   |
| Sunridge                    |   | Houston              |   | 1979                       |   | 49,359              |   |                       | 89     | %                                                     |   | 429                                      |   |   | 9.77   |   |
| Torrey Square               |   | Houston              |   | 1983                       |   | 105,766             |   |                       | 88     | %                                                     |   | 694                                      |   |   | 7.46   |   |
| Town Park                   |   | Houston              |   | 1978                       |   | 43,526              |   |                       | 100    | %                                                     |   | 758                                      |   |   | 17.41  |   |
| Webster Point               |   | Houston              |   | 1984                       |   | 26,060              |   |                       | 92     | %                                                     |   | 269                                      |   |   | 11.22  |   |
| Westchase                   |   | Houston              |   | 1978                       |   | 49,573              |   |                       | 86     | %                                                     |   | 398                                      |   |   | 9.34   |   |
| Windsor Park                |   | San Antonio          |   | 1992                       |   | 192,458             |   |                       | 76     | %                                                     |   | 1,072                                    |   |   | 7.33   |   |
|                        |   |                 |   |                       |   | 1,188,830           |   |                       | 88     | %                                                     |   | $                                        | 9,843  |   |   | $      | 9.41  |   |
| Office/Flex Properties:     |   |                 |   |                       |   |                |   |                       |   |                                                  |   |                                     |   |   |   |   |
| Brookhill                   |   | Houston              |   | 1979                       |   | 74,757              |   |                       | 89     | %                                                     |   | $                                        | 257    |   |   | $      | 3.86  |   |
| Corporate Park Northwest    |   | Houston              |   | 1981                       |   | 185,627             |   |                       | 70     | %                                                     |   | 1,373                                    |   |   | 10.57  |   |
| Corporate Park West         |   | Houston              |   | 1999                       |   | 175,665             |   |                       | 92     | %                                                     |   | 1,471                                    |   |   | 9.10   |   |
| Corporate Park Woodland     |   | Houston              |   | 2000                       |   | 99,937              |   |                       | 92     | %                                                     |   | 792                                      |   |   | 8.61   |   |
| Dairy Ashford               |   | Houston              |   | 1981                       |   | 42,902              |   |                       | 95     | %                                                     |   | 210                                      |   |   | 5.15   |   |
| Holly Hall                  |   | Houston              |   | 1980                       |   | 90,000              |   |                       | 100    | %                                                     |   | 689                                      |   |   | 7.66   |   |
| Interstate 10               |   | Houston              |   | 1980                       |   | 151,000             |   |                       | 95     | %                                                     |   | 693                                      |   |   | 4.83   |   |
| Main Park                   |   | Houston              |   | 1982                       |   | 113,410             |   |                       | 100    | %                                                     |   | 660                                      |   |   | 5.82   |   |
| Plaza Park                  |   | Houston              |   | 1982                       |   | 105,530             |   |                       | 74     | %                                                     |   | 650                                      |   |   | 8.32   |   |
| Westbelt Plaza              |   | Houston              |   | 1978                       |   | 65,619              |   |                       | 63     | %                                                     |   | 347                                      |   |   | 8.39   |   |
| Westgate                    |   | Houston              |   | 1984                       |   | 97,225              |   |                       | 100    | %                                                     |   | 528                                      |   |   | 5.43   |   |
|                        |   |                 |   |                       |   | 1,201,672           |   |                       | 88     | %                                                     |   | $                                        | 7,670  |   |   | $      | 7.25  |   |
| Office Properties:          |   |                 |   |                       |   |                |   |                       |   |                                                  |   |                                     |   |   |   |   |
| 9101 LBJ Freeway            |   | Dallas               |   | 1985                       |   | 125,874             |   |                       | 71     | %                                                     |   | $                                        | 1,462  |   |   | $      | 16.36 |   |
| Featherwood                 |   | Houston              |   | 1983                       |   | 49,760              |   |                       | 87     | %                                                     |   | 755                                      |   |   | 17.44  |   |
| Pima Norte                  |   | Phoenix              |   | 2007                       |   | 33,417              |   |                       | 17     | %                                                     |   | 85                                       |   |   | 14.96  |   |
| Royal Crest                 |   | Houston              |   | 1984                       |   | 24,900              |   |                       | 70     | %                                                     |   | 218                                      |   |   | 12.51  |   |
| Uptown Tower                |   | Dallas               |   | 1982                       |   | 253,981             |   |                       | 88     | %                                                     |   | 3,918                                    |   |   | 17.53  |   |
| Woodlake Plaza              |   | Houston              |   | 1974                       |   | 106,169             |   |                       | 89     | %                                                     |   | 1,215                                    |   |   | 12.86  |   |
| Zeta Building               |   | Houston              |   | 1982                       |   | 37,740              |   |                       | 77     | %                                                     |   | 431                                      |   |   | 14.83  |   |
|                        |   |                 |   |                       |   | 631,841             |   |                       | 79     | %                                                     |   | $                                        | 8,084  |   |   | $      | 16.20 |   |
| Total - Operating Portfolio |   |                 |   |                       |   | 3,022,343           |   |                       | 86     | %                                                     |   | $                                        | 25,597 |   |   | $      | 9.85  |   |
|                        |   |                 |   |                       |   |                |   |                       |   |                                                  |   |                                     |
| The Citadel                 |   | Phoenix              |   | 1985                       |   | 28,547              |   |                       | 16     | %                                                     |   | $                                        | 85     |   |   | $      | 18.61 |   |
| Sunnyslope Village          |   | Phoenix              |   | 2000                       |   | 111,130             |   |                       | 47     | %                                                     |   | 527                                      |   |   | 10.09  |   |
|                        |   |                 |   |                       |   | 139,677             |   |                       | 40     | %                                                     |   | 612                                      |   |   | 10.95  |   |
| Grand Totals                |   |                 |   |                       |   | 3,162,020           |   |                       | 84     | %                                                     |   | $                                        | 26,209 |   |   | $      | 9.87  |   |

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|                                               |        |             |        |                                              |        |                                                     |        |                    |        |               |          |        |        |
|-----------------------------------------------|--------|-------------|--------|----------------------------------------------|--------|-----------------------------------------------------|--------|--------------------|--------|---------------|----------|--------|--------|
| Tenant Name                                   |   | Location    |   | Annualized Rental Revenue     (in thousands) |   | Percentage of Total Annualized Base Rental Revenues |   | Initial Lease Date |   | Year Expiring |
|                                          |   |        |   |                                         |   |                                                |   |               |   |          |
| Sports Authority                              |   | San Antonio |   | $                                            | 495    |                                                |   | 1.9                | %      |          | 1/1/2004 |   | 2015   |
| Compass Insurance                             |   | Dallas      |   | 367                                          |   |                                                | 1.4    | %                  |   | 9/1/2005      |     | 2013   |
| Brockett Davis Drake Inc.                     |   | Dallas      |   | 365                                          |   |                                                | 1.4    | %                  |   | 3/14/1994     |     | 2011   |
| Air Liquide America, L.P.                     |   | Dallas      |   | 363                                          |   |                                                | 1.4    | %                  |   | 8/1/2001      |     | 2013   |
| Kroger                                        |   | Houston     |   | 265                                          |   |                                                | 1.0    | %                  |   | 9/1/1999      |     | 2011   |
| X-Ray X-Press Corporation                     |   | Houston     |   | 262                                          |   |                                                | 1.0    | %                  |   | 7/1/1998      |     | 2019   |
| Petsmart, Inc                                 |   | San Antonio |   | 255                                          |   |                                                | 1.0    | %                  |   | 1/1/2004      |     | 2013   |
| Marshall's                                    |   | Houston     |   | 248                                          |   |                                                | 0.9    | %                  |   | 5/12/1983     |     | 2013   |
| Rock Solid Images                             |   | Houston     |   | 243                                          |   |                                                | 0.9    | %                  |   | 4/1/2004      |     | 2012   |
| Merrill Corporation                           |   | Dallas      |   | 234                                          |   |                                                | 0.9    | %                  |   | 12/10/2001    |     | 2014   |
| Eligibility Services                          |   | Dallas      |   | 224                                          |   |                                                | 0.9    | %                  |   | 6/6/2000      |     | 2012   |
| River Oaks L-M, Inc.                          |   | Houston     |   | 199                                          |   |                                                | 0.8    | %                  |   | 10/15/1993    |     | 2011   |
| New Lifestyles, Inc.                          |   | Dallas      |   | 192                                          |   |                                                | 0.7    | %                  |   | 5/5/1998      |     | 2013   |
| Landworks, Inc.                               |   | Houston     |   | 178                                          |   |                                                | 0.7    | %                  |   | 6/1/2004      |     | 2013   |
| The University of Texas Health Science Center |   | Houston     |   | 177                                          |   |                                                | 0.7    | %                  |   | 7/1/2007      |     | 2017   |
|                                          |   |        |   | $                                            | 4,067  |                                                |   | 15.6               | %      |          |     |   |   |

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|        |        |                 |        |                        |           |                         |        |                      |        |                 |       |        |        |        |      |   |
|--------|--------|-----------------|--------|------------------------|-----------|-------------------------|--------|----------------------|--------|-----------------|-------|--------|--------|--------|------|---|
|   |   |            |   |                   |      |                    |   | Annualized Base Rent |
|   |   |            |   | Gross Leasable Area    |      | as of December 31, 2010 |
| Year   |   | Number ofLeases |   | ApproximateSquare Feet |      | Percentof Total         |   | Amount(in thousands) |   | Percent ofTotal |
| 2011   |   | 251             |   |                   | 670,660   |                    |   | 21                   | %      |            | $     | 6,641  |   |   | 25.3 | % |
| 2012   |   | 159             |   |                   | 460,412   |                    |   | 15                   | %      |            | 4,898 |   |   | 18.7   | %    |
| 2013   |   | 144             |   |                   | 504,510   |                    |   | 16                   | %      |            | 5,394 |   |   | 20.6   | %    |
| 2014   |   | 94              |   |                   | 327,413   |                    |   | 10                   | %      |            | 3,492 |   |   | 13.3   | %    |
| 2015   |   | 71              |   |                   | 311,924   |                    |   | 10                   | %      |            | 3,026 |   |   | 11.5   | %    |
| 2016   |   | 39              |   |                   | 127,213   |                    |   | 4                    | %      |            | 983   |   |   | 3.8    | %    |
| 2017   |   | 8               |   |                   | 43,725    |                    |   | 1                    | %      |            | 407   |   |   | 1.6    | %    |
| 2018   |   | 9               |   |                   | 55,581    |                    |   | 2                    | %      |            | 365   |   |   | 1.4    | %    |
| 2019   |   | 6               |   |                   | 50,333    |                    |   | 2                    | %      |            | 569   |   |   | 2.2    | %    |
| 2020   |   | 3               |   |                   | 37,907    |                    |   | 1                    | %      |            | 237   |   |   | 0.9    | %    |
| Total  |   | 784             |   |                   | 2,589,678 |                    |   | 82                   | %      |            | $     | 26,012 |   |   | 99.3 | % |

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|                |        |        |        |        |        |        |        |        |        |   |       |        |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|           |   | High   |   | Low    |   | Close  |
|           |   |   |   |   |   |   |
| First Quarter  |   | N/A    |   |   | N/A    |   |   | N/A    |   |
| Second Quarter |   | N/A    |   |   | N/A    |   |   | N/A    |   |
| Third Quarter  |   | $      | 12.03  |   |   | $      | 11.32  |   |   | $ | 11.74 |   |
| Fourth Quarter |   | $      | 14.94  |   |   | $      | 11.79  |   |   | $ | 14.80 |   |

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|                                 |        |              |            |                |        |        |       |        |
|---------------------------------|--------|--------------|------------|----------------|--------|--------|-------|--------|
| Total Dividends Paid or Payable |
| Amount Per                      |   |         |       | Total Amount   |
| Common Share / OP Unit          |   | Quarter Paid |       | (in thousands) |
| $                               | 0.3375 |         |       | 03/31/2009     |   | $      | 1,156 |   |
| 0.3375                          |   |         | 06/30/2009 |           | 1,163  |   |
| 0.3375                          |   |         | 09/30/2009 |           | 1,163  |   |
| 0.3375                          |   |         | 12/31/2009 |           | 1,163  |   |
|                            |   |         |       |           |
| 0.3375                          |   |         | 03/31/2010 |           | 1,163  |   |
| 0.3375                          |   |         | 06/30/2010 |           | 1,176  |   |
| 0.2850                          |   |         | 09/30/2010 |           | 1,203  |   |
| 0.2850                          |   |         | 12/31/2010 |           | 1,616  |   |
|                            |   |         |       |           |
| 0.2850                          |   |         | Payable    |           | 1,615  |   |

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|                                                                     |        |                                       |        |        |         |        |        |         |        |        |         |        |        |         |        |        |        |   |        |        |
|---------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|---|--------|--------|
|                                                                |   | Year Ended December 31,               |
|                                                                |   | (in thousands, except per share data) |
|                                                                |   | 2010                                  |   | 2009   |    | 2008   |   | 2007    |   | 2006   |
| Operating Data:                                                     |   |                                  |   |   |    |   |   |    |   |   |
| Revenues                                                            |   | $                                     | 31,533 |   |    | $      | 32,685 |    |   | $      | 31,201  |   |   | $       | 29,374 |   |   | $ | 28,378 |   |
| Property expenses                                                   |   | 12,283                                |   |   | 12,991  |   |   | 12,835  |   |   | 12,236  |   |   | 11,438  |   |
| General and administrative                                          |   | 4,992                                 |   |   | 6,072   |   |   | 6,708   |   |   | 6,721   |   |   | 2,299   |   |
| Property and other asset management fees to an affiliate            |   | —                               |   |   | — |   |   | — |   |   | — |   |   | 1,482   |   |
| Depreciation and amortization                                       |   | 7,225                                 |   |   | 6,958   |   |   | 6,859   |   |   | 6,048   |   |   | 6,181   |   |
| Involuntary conversion                                              |   | (558                                  | )      |   | (1,542  | )      |   | 358     |   |   | — |   |   | — |   |
| Interest expense, net                                               |   | 5,592                                 |   |   | 5,713   |   |   | 5,675   |   |   | 4,825   |   |   | 4,910   |   |
| Other expense (income), net                                         |   | —                               |   |   | — |   |   | — |   |   | 30      |   |   | (30     | )      |
| Income (loss) from continuing operations before loss on disposal of |   |                                  |   |   |    |   |   |    |   |   |    |   |
| assets and income taxes                                             |   | 1,999                                 |   |   | 2,493   |   |   | (1,234  | )      |   | (486    | )      |   | 2,098   |   |
| Provision for income taxes                                          |   | (264                                  | )      |   | (222    | )      |   | (219    | )      |   | (217    | )      |   | — |   |
| Loss on disposal of assets                                          |   | (160                                  | )      |   | (196    | )      |   | (223    | )      |   | (9      | )      |   | 197     |   |
| Income (loss) from continuing operations                            |   | 1,575                                 |   |   | 2,075   |   |   | (1,676  | )      |   | (712    | )      |   | 2,295   |   |
| Income (loss) from discontinued operations                          |   | —                               |   |   | — |   |   | (188    | )      |   | 589     |   |   | 554     |   |
| Gain on sale of properties from discontinued operations             |   | —                               |   |   | — |   |   | 3,619   |   |   | — |   |   | — |   |
| Net income (loss)                                                   |   | 1,575                                 |   |   | 2,075   |   |   | 1,755   |   |   | (123    | )      |   | 2,849   |   |
| Less: net income (loss) attributable to noncontrolling interests    |   | 470                                   |   |   | 733     |   |   | 621     |   |   | (46     | )      |   | 1,068   |   |
| Net income (loss) attributable to Whitestone REIT                   |   | $                                     | 1,105  |   |    | $      | 1,342  |    |   | $      | 1,134   |   |   | $       | (77    | )      |   | $ | 1,781  |   |

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|                                                                     |        |                                       |         |        |           |        |         |           |        |        |           |        |        |           |         |        |        |   |         |        |
|---------------------------------------------------------------------|--------|---------------------------------------|---------|--------|-----------|--------|---------|-----------|--------|--------|-----------|--------|--------|-----------|---------|--------|--------|---|---------|--------|
|                                                                |   | Year Ended December 31,               |
|                                                                |   | (in thousands, except per share data) |
|                                                                |   | 2010                                  |    | 2009   |      | 2008   |    | 2007      |   | 2006   |
| Earnings per share - basic                                          |   |                                  |    |   |      |   |    |      |   |   |
| Income (loss) from continuing operations attributable to Whitestone |   |                                  |    |   |      |   |    |      |   |   |
| REIT excluding amounts attributable to unvested restricted shares   |   | $                                     | 0.27    |   |      | $      | 0.41    |      |   | $      | (0.32     | )      |   | $         | (0.13   | )      |   | $ | 0.45    |   |
| Income from discontinued operations attributable to Whitestone REIT |   | —                               |    |   | —   |   |    | 0.67      |   |   | 0.11      |   |   | 0.10      |    |
| Net income (loss) attributable to common shareholders excluding     |   |                                  |    |   |      |   |    |      |   |   |      |   |   |      |
| amounts attributable to unvested restricted shares                  |   | $                                     | 0.27    |   |      | $      | 0.41    |      |   | $      | 0.35      |   |   | $         | (0.02   | )      |   | $ | 0.55    |   |
| Earnings per share - diluted                                        |   |                                  |    |   |      |   |    |      |   |   |      |   |   |      |    |
| Income (loss) from continuing operations attributable to Whitestone |   |                                  |    |   |      |   |    |      |   |   |      |   |   |      |
| REIT excluding amounts attributable to unvested restricted shares   |   | $                                     | 0.27    |   |      | $      | 0.40    |      |   | $      | (0.32     | )      |   | $         | (0.04   | )      |   | $ | 0.45    |   |
| Income from discontinued operations attributable to Whitestone REIT |   | —                               |    |   | —   |   |    | 0.67      |   |   | 0.03      |   |   | 0.10      |    |
| Net income (loss) attributable to common shareholders excluding     |   |                                  |    |   |      |   |    |      |   |   |      |   |   |
| amounts attributable to unvested restricted shares                  |   | $                                     | 0.27    |   |      | $      | 0.40    |      |   | $      | 0.35      |   |   | $         | (0.01   | )      |   | $ | 0.55    |   |
| Balance Sheet Data:                                                 |   |                                  |    |   |      |   |    |      |   |   |      |   |   |      |    |
| Real estate (net)                                                   |   | $                                     | 165,398 |   |      | $      | 158,398 |      |   | $      | 150,847   |   |   | $         | 146,460 |   |   | $ | 141,236 |   |
| Real estate (net), discontinued operations                          |   | —                               |    |   | —   |   |    | —   |   |   | 7,932     |   |   | 8,252     |    |
| Other assets                                                        |   | 31,047                                |    |   | 23,602    |   |    | 27,098    |   |   | 20,752    |   |   | 17,599    |    |
| Total assets                                                        |   | $                                     | 196,445 |   |      | $      | 182,000 |      |   | $      | 177,945   |   |   | $         | 175,144 |   |   | $ | 167,087 |   |
| Liabilities                                                         |   | $                                     | 112,162 |   |      | $      | 115,141 |      |   | $      | 110,773   |   |   | $         | 94,262  |   |   | $ | 76,464  |   |
| Whitestone REIT shareholders' equity                                |   | 62,708                                |    |   | 43,590    |   |    | 45,891    |   |   | 52,843    |   |   | 58,914    |    |
| Noncontrolling interest in subsidiary                               |   | 21,575                                |    |   | 23,269    |   |    | 21,281    |   |   | 28,039    |   |   | 31,709    |    |
|                                                                |   | $                                     | 196,445 |   |      | $      | 182,000 |      |   | $      | 177,945   |   |   | $         | 175,144 |   |   | $ | 167,087 |   |
| Other Data:                                                         |   |                                  |    |   |      |   |    |      |   |   |      |   |   |      |    |
| Proceeds from issuance of common shares                             |   | $                                     | 22,970  |   |      | $      | — |      |   | $      | —   |   |   | $         | 261     |   |   | $ | 9,453   |   |
| Additions to real estate                                            |   | 12,768                                |    |   | 12,855    |   |    | 5,153     |   |   | 10,205    |   |   | 1,833     |    |
| Dividends per share (1)                                             |   | 1.17                                  |    |   | 1.35      |   |    | 1.59      |   |   | 1.80      |   |   | 1.89      |    |
| Funds from operations (2)                                           |   | 8,432                                 |    |   | 8,618     |   |    | 4,236     |   |   | 6,001     |   |   | 8,993     |    |
| Operating Potfolio Occupancy at year end                            |   | 86                                    | %       |   | 82        | %      |    | 84        | %      |   | 86        | %      |   | 83        | %       |
| Average aggregate gross leasable area                               |   | 3,058,340                             |    |   | 3,039,044 |   |    | 3,008,085 |   |   | 3,093,063 |   |   | 3,121,039 |    |
| Average rent per square foot                                        |   | $                                     | 10.31   |   |      | $      | 10.76   |      |   | $      | 10.37     |   |   | $         | 9.50    |   |   | $ | 9.09    |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |        |        |        |        |        |        |        |        |        |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (1)  The dividends per share represent total cash payments divided by weighted average common shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| (2)  We believe that Funds From Operations (“FFO”) is an appropriate supplemental measure of operating performance because it helps our investors compare our operating performance relative to other REITs.  The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) available to common shareholders computed in accordance with GAAP, excluding gains or losses from sales of operating properties and extraordinary items, plus depreciation and amortization of real estate assets, including our share of unconsolidated partnerships and joint ventures.  We calculate FFO in a manner consistent with the NAREIT definition. |

|                                                            |        |                                       |        |        |        |        |        |        |        |        |       |        |        |       |        |        |        |   |       |        |
|------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-------|--------|--------|-------|--------|--------|--------|---|-------|--------|
|                                                       |   | Year Ended December 31,               |
|                                                       |   | (in thousands, except per share data) |
|                                                       |   | 2010                                  |   | 2009   |   | 2008   |   | 2007   |   | 2006   |
| Net income (loss) attributable to Whitestone REIT          |   | $                                     | 1,105  |   |   | $      | 1,342  |   |   | $      | 1,134 |   |   | $     | (77    | )      |   | $ | 1,781 |   |
| Depreciation and amortization of real estate assets (1)    |   | 6,697                                 |   |   | 6,347  |   |   | 5,877  |   |   | 6,108 |   |   | 6,341 |   |
| (Gain) loss on sale or disposal of assets (1)              |   | 160                                   |   |   | 196    |   |   | (3,396 | )      |   | 16    |   |   | (197  | )      |
| Net income (loss) attributable to noncontrolling interests |   | 470                                   |   |   | 733    |   |   | 621    |   |   | (46   | )      |   | 1,068 |   |
| FFO                                                        |   | $                                     | 8,432  |   |   | $      | 8,618  |   |   | $      | 4,236 |   |   | $     | 6,001  |   |   | $ | 8,993 |   |

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|                                |                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| •     | the right to vote together with Class A common shareholders on all matters submitted to the Company’s shareholders; |

|                                |                                                                         |
|--------------------------------|-------------------------------------------------------------------------|
| •     | one vote on all matters voted upon by the Company’s shareholders; |

|                                |                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------|
| •     | the right to receive dividends equal to any dividends declared on the Class A common shares; and |

|                                |                                                                                  |
|--------------------------------|----------------------------------------------------------------------------------|
| •     | liquidation rights equal to the liquidation rights of each Class A common share. |

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|                                |                                                                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | eighteen retail properties containing approximately 1.2 million square feet of leasable space and having a total carrying amount (net of accumulated depreciation) of $70.0 million; |

|                                |                                                                                                                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | seven office properties containing approximately 0.6 million square feet of leasable space and having a total carrying amount (net of accumulated depreciation) of $44.9 million; and |

|                                |                                                                                                                                                                                         |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | eleven office/flex properties containing approximately 1.2 million square feet of leasable space and having a total carrying amount (net of accumulated depreciation) of $41.6 million. |

|                                |                                                                                                                                                                                |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | two retail properties containing approximately 0.1 million square feet of leasable space and having a total carrying amount (net of accumulated depreciation) of $8.9 million. |

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|                                |                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------|
| •     | Cash flow from operations of $10.4 million for the year ended December 31, 2010; |

|                                |                                                                   |
|--------------------------------|-------------------------------------------------------------------|
| •     | Proceeds of $23.0 million from issuance of Class B common shares; |

|                                |                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------|
| •     | Net proceeds of $1.3 million from issuance of notes payable net of origination costs; |

|                                |                                                                                                    |
|--------------------------------|----------------------------------------------------------------------------------------------------|
| •     | Payment of dividends and distributions to common shareholders and OP Unit holders of $7.4 million; |

|                                |                                    |
|--------------------------------|------------------------------------|
| •     | Payments of loans of $3.0 million; |

|                                |                                            |
|--------------------------------|--------------------------------------------|
| •     | Additions to real estate of $12.8 million; |

|                                |                                                       |
|--------------------------------|-------------------------------------------------------|
| •     | Repurchases of Class A common shares of $0.2 million. |

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|                                             |        |              |         |        |         |        |         |        |
|---------------------------------------------|--------|--------------|---------|--------|---------|--------|---------|--------|
|                                        |   | Year Ended   |
|                                        |   | December 31, |
| Description                                 |   | 2010         |    | 2009   |
| Fixed rate notes                            |   |         |    |   |
| $10.0 million 6.04% Note, due 2014          |   | $            | 9,498   |   |    | $      | 9,646   |   |
| $1.5 million 6.50% Note, due 2014           |   | 1,496        |    |   | — |   |
| $11.2 million 6.52% Note, due 2015          |   | 10,908       |    |   | 11,043  |   |
| $21.4 million 6.53% Notes, due 2013         |   | 20,142       |    |   | 20,721  |   |
| $24.5 million 6.56% Note, due 2013          |   | 24,030       |    |   | 24,435  |   |
| $9.9 million 6.63% Notes, due 2014          |   | 9,498        |    |   | 9,757   |   |
| $0.5 million 5.05% Notes, due 2011 and 2010 |   | 13           |    |   | 52      |   |
| Floating rate note                          |   |         |    |   |    |   |
| $26.9 million LIBOR + 2.60% Note, due 2013  |   | 25,356       |    |   | 26,128  |   |
|                                        |   | $            | 100,941 |   |    | $      | 101,782 |   |

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|                     |                |         |        |
|---------------------|----------------|---------|--------|
|                | Amount Due     |
| Year                | (in thousands) |
|                |           |
| 2011                | $              | 2,459   |   |
| 2012                | 2,579          |    |
| 2013                | 66,424         |    |
| 2014                | 19,209         |    |
| 2015                | 10,270         |    |
| 2016 and thereafter | —        |    |
| Total               | $              | 100,941 |   |

|                                        |        |             |         |                                      |         |                          |        |                          |        |                              |         |        |        |         |        |        |        |   |         |        |
|----------------------------------------|--------|-------------|---------|--------------------------------------|---------|--------------------------|--------|--------------------------|--------|------------------------------|---------|--------|--------|---------|--------|--------|--------|---|---------|--------|
|                                   |   |        |    | Payment due by period (in thousands) |
|   Contractual Obligations    |   |  Total |    | Less than 1year (2011)               |    | 1 - 3 years(2012 - 2013) |   | 3 - 5 years(2014 - 2015) |   | More than5 years(after 2015) |
| Long-Term Debt - Principal             |   | $           | 100,941 |                                 |    | $                        | 2,459  |                     |   | $                            | 69,003  |   |   | $       | 29,479 |   |   | $ | — |   |
| Long-Term Debt - Fixed Interest        |   | 13,306      |    |                                 | 4,233   |                     |   | 7,739                    |   |                         | 1,334   |   |   | — |   |
| Long-Term Debt - Variable Interest (1) |   | 2,017       |    |                                 | 714     |                     |   | 1,303                    |   |                         | — |   |   | — |   |
| Capital Lease Obligations              |   | —     |    |                                 | — |                     |   | —                  |   |                         | — |   |   | — |   |
| Operating Lease Obligations            |   | 93          |    |                                 | 47      |                     |   | 41                       |   |                         | 5       |   |   | — |   |
| Purchase Obligations                   |   | —     |    |                                 | — |                     |   | —                  |   |                         | — |   |   | — |   |
| Other Long-Term Liabilities            |   |        |    |                                 |    |                     |   |                     |   |                         |    |   |   |    |   |
| Reflected on the Registrant’s    |   |        |    |                                 |    |                     |   |                     |   |                         |    |   |   |    |   |
| Balance Sheet under GAAP               |   | —     |    |                                 | — |                     |   | —                  |   |                         | — |   |   | — |   |
| Total                                  |   | $           | 116,357 |                                 |    | $                        | 7,453  |                     |   | $                            | 78,086  |   |   | $       | 30,818 |   |   | $ | — |   |

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|                |        |              |        |                |        |        |        |        |        |   |       |        |
|----------------|--------|--------------|--------|----------------|--------|--------|--------|--------|--------|---|-------|--------|
|           |   |         |   | Noncontrolling |   |   |
|           |   | Common       |   | OP Unit        |   |   |
|           |   | Shareholders |   | Holders        |   | Total  |
| 2010           |   |         |   |           |   |   |
| Fourth Quarter |   | $            | 1,616  |           |   | $      | 514    |   |   | $ | 2,130 |   |
| Third Quarter  |   | 1,203        |   |           | 515    |   |   | 1,718  |   |
| Second Quarter |   | 1,176        |   |           | 610    |   |   | 1,786  |   |
| First Quarter  |   | 1,163        |   |           | 610    |   |   | 1,773  |   |
| Total          |   | $            | 5,158  |           |   | $      | 2,249  |   |   | $ | 7,407 |   |
|           |   |         |   |           |   |   |
| 2009           |   |         |   |           |   |   |   |   |
| Fourth Quarter |   | $            | 1,163  |           |   | $      | 610    |   |   | $ | 1,773 |   |
| Third Quarter  |   | 1,163        |   |           | 610    |   |   | 1,773  |   |
| Second Quarter |   | 1,163        |   |           | 530    |   |   | 1,693  |   |
| First Quarter  |   | 1,156        |   |           | 531    |   |   | 1,687  |   |
| Total          |   | $            | 4,645  |           |   | $      | 2,281  |   |   | $ | 6,926 |   |

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|                                                                      |        |                         |        |        |           |        |        |        |
|----------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                 |   | Year Ended December 31, |
|                                                                 |   | 2010                    |   | 2009   |
| Number of properties owned and operated                              |   | 38                      |   |   | 36        |   |
| Aggregate gross leasable area (sq. ft.)(1)                           |   | 3,162,020               |   |   | 3,039,044 |   |
| Ending occupancy rate - operating portfolio(2)                       |   | 86                      | %      |   | 82        | %      |
| Ending occupancy rate - all properties                               |   | 84                      | %      |   | 82        | %      |
|                                                                 |   |                    |   |   |
| Total property revenues                                              |   | $                       | 31,533 |   |      | $      | 32,685 |   |
| Total property expenses                                              |   | 12,283                  |   |   | 12,991    |   |
| Total other expenses                                                 |   | 17,251                  |   |   | 17,201    |   |
| Provision for income taxes                                           |   | 264                     |   |   | 222       |   |
| Loss on disposal of assets                                           |   | 160                     |   |   | 196       |   |
| Net income                                                           |   | 1,575                   |   |   | 2,075     |   |
| Less:  Net income attributable to noncontrolling interests |   | 470                     |   |   | 733       |   |
| Net income attributable to Whitestone REIT                           |   | $                       | 1,105  |   |      | $      | 1,342  |   |
|                                                                 |   |                    |   |   |
| Funds from operations (3)                                            |   | $                       | 8,432  |   |      | $      | 8,618  |   |
| Dividends and distributions paid on common shares and OP Units       |   | 7,407                   |   |   | 6,926     |   |
| Per Class A common share and OP Unit                                 |   | 1.25                    |   |   | 1.35      |   |
| Per Class B common share (4)                                         |   | 0.38                    |   |   | —   |   |
| Dividends paid as a % of funds from operations                       |   | 88                      | %      |   | 80        | %      |

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|                         |        |                         |        |            |        |              |        |            |        |        |      |         |        |     |    |
|-------------------------|--------|-------------------------|--------|------------|--------|--------------|--------|------------|--------|--------|------|---------|--------|-----|----|
|                    |   | Year Ended December 31, |   | Increase / |   | % Increase / |
|                    |   | 2010                    |   | 2009       |   | (Decrease)   |   | (Decrease) |
| Real estate taxes       |   | $                       | 3,925  |       |   | $            | 4,472  |       |   | $      | (547 | )       |   | (12 | )% |
| Utilities               |   | 2,277                   |   |       | 2,387  |         |   | (110       | )      |   | (5   | )%      |
| Contract services       |   | 2,140                   |   |       | 2,108  |         |   | 32         |   |   | 2    |  % |
| Repairs and maintenance |   | 1,403                   |   |       | 1,408  |         |   | (5         | )      |   | 0    |  % |
| Bad debt                |   | 536                     |   |       | 877    |         |   | (341       | )      |   | (39  | )%      |
| Labor and other         |   | 2,002                   |   |       | 1,739  |         |   | 263        |   |   | 15   |  % |
| Total property expenses |   | $                       | 12,283 |       |   | $            | 12,991 |       |   | $      | (708 | )       |   | (5  | )% |

|                               |        |                         |        |            |        |              |        |            |        |        |        |         |        |     |         |
|-------------------------------|--------|-------------------------|--------|------------|--------|--------------|--------|------------|--------|--------|--------|---------|--------|-----|---------|
|                          |   | Year Ended December 31, |   | Increase / |   | % Increase / |
|                          |   | 2010                    |   | 2009       |   | (Decrease)   |   | (Decrease) |
| General and administrative    |   | $                       | 4,992  |       |   | $            | 6,072  |       |   | $      | (1,080 | )       |   | (18 | )%      |
| Depreciation and amortization |   | 7,225                   |   |       | 6,958  |         |   | 267        |   |   | 4      |  % |
| Involuntary conversion        |   | (558                    | )      |       | (1,542 | )            |   | 984        |   |   | (64    | )%      |
| Interest expense              |   | 5,620                   |   |       | 5,749  |         |   | (129       | )      |   | (2     | )%      |
| Interest income               |   | (28                     | )      |       | (36    | )            |   | 8          |   |   | (22    | )%      |
| Total other expenses          |   | $                       | 17,251 |       |   | $            | 17,201 |       |   | $      | 50     |    |   | 0   |  % |

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|                                                                      |        |                         |        |        |           |        |        |        |
|----------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                 |   | Year Ended December 31, |
|                                                                 |   | 2009                    |   | 2008   |
| Number of properties owned and operated                              |   | 36                      |   |   | 35        |   |
| Aggregate gross leasable area (sq. ft.)                              |   | 3,039,044               |   |   | 2,990,892 |   |
| Ending occupancy rate - operating portfolio(1)                       |   | 82                      | %      |   | 84        | %      |
| Ending occupancy rate - all properties                               |   | 82                      | %      |   | 84        | %      |
|                                                                 |   |                    |   |   |
| Total property revenues                                              |   | $                       | 32,685 |   |      | $      | 31,201 |   |
| Total property expenses                                              |   | 12,991                  |   |   | 12,835    |   |
| Total other expenses                                                 |   | 17,201                  |   |   | 19,600    |   |
| Provision for income taxes                                           |   | 222                     |   |   | 219       |   |
| Loss on disposal of assets                                           |   | 196                     |   |   | 223       |   |
| Income (loss) from continuing operations                             |   | 2,075                   |   |   | (1,676    | )      |
| Loss from discontinued operations                                    |   | —                 |   |   | (188      | )      |
| Gain from sale of properties from discontinued operations            |   | —                 |   |   | 3,619     |   |
| Net income                                                           |   | 2,075                   |   |   | 1,755     |   |
| Less:  Net income attributable to noncontrolling interests |   | 733                     |   |   | 621       |   |
| Net income attributable to Whitestone REIT                           |   | $                       | 1,342  |   |      | $      | 1,134  |   |
|                                                                 |   |                    |   |   |
| Funds from operations (2)                                            |   | $                       | 8,618  |   |      | $      | 4,236  |   |
| Dividends and distributions paid on common shares and OP Units       |   | 6,926                   |   |   | 8,672     |   |
| Per Class A common share and OP Unit                                 |   | 1.35                    |   |   | 1.74      |   |
| Dividends paid as a % of funds from operations                       |   | 80                      | %      |   | 205       | %      |

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|                         |        |                         |        |            |        |              |        |            |        |        |     |         |        |    |         |
|-------------------------|--------|-------------------------|--------|------------|--------|--------------|--------|------------|--------|--------|-----|---------|--------|----|---------|
|                    |   | Year Ended December 31, |   | Increase / |   | % Increase / |
|                    |   | 2009                    |   | 2008       |   | (Decrease)   |   | (Decrease) |
| Real estate taxes       |   | $                       | 4,472  |       |   | $            | 3,973  |       |   | $      | 499 |    |   | 13 |  % |
| Utilities               |   | 2,387                   |   |       | 2,679  |         |   | (292       | )      |   | (11 | )%      |
| Contract services       |   | 2,108                   |   |       | 2,138  |         |   | (30        | )      |   | (1  | )%      |
| Repairs and maintenance |   | 1,408                   |   |       | 1,633  |         |   | (225       | )      |   | (14 | )%      |
| Bad debt                |   | 877                     |   |       | 731    |         |   | 146        |   |   | 20  |  % |
| Labor and other         |   | 1,739                   |   |       | 1,681  |         |   | 58         |   |   | 3   |  % |
| Total property expenses |   | $                       | 12,991 |       |   | $            | 12,835 |       |   | $      | 156 |    |   | 1  |  % |

|                               |        |                         |        |            |        |              |        |            |        |        |        |         |        |     |    |
|-------------------------------|--------|-------------------------|--------|------------|--------|--------------|--------|------------|--------|--------|--------|---------|--------|-----|----|
|                          |   | Year Ended December 31, |   | Increase / |   | % Increase / |
|                          |   | 2009                    |   | 2008       |   | (Decrease)   |   | (Decrease) |
| General and administrative    |   | $                       | 6,072  |       |   | $            | 6,708  |       |   | $      | (636   | )       |   | (9  | )% |
| Depreciation and amortization |   | 6,958                   |   |       | 6,859  |         |   | 99         |   |   | 1      |  % |
| Involuntary conversion        |   | (1,542                  | )      |       | 358    |         |   | (1,900     | )      |   | (531   | )%      |
| Interest expense              |   | 5,749                   |   |       | 5,857  |         |   | (108       | )      |   | (2     | )%      |
| Interest income               |   | (36                     | )      |       | (182   | )            |   | 146        |   |   | (80    | )%      |
| Total other expenses          |   | $                       | 17,201 |       |   | $            | 19,600 |       |   | $      | (2,399 | )       |   | (12 | )% |

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|                                                                         |        |                         |         |        |         |        |       |        |
|-------------------------------------------------------------------------|--------|-------------------------|---------|--------|---------|--------|-------|--------|
|                                                                    |   | Year Ended December 31, |
|                                                                    |   | 2009                    |    | 2008   |
| Property Revenues                                                       |   |                    |    |   |
| Rental revenues                                                         |   | $                       | — |   |    | $      | 333   |   |
| Other revenues                                                          |   | —                 |    |   | 225     |   |
| Total  property revenues                                      |   | —                 |    |   | 558     |   |
| Property Expenses                                                       |   |                    |    |   |    |   |
| Properties operation and maintenance                                    |   | —                 |    |   | 391     |   |
| Real estate taxes                                                       |   | —                 |    |   | 133     |   |
| Total  property expenses                                      |   | —                 |    |   | 524     |   |
| Other expense                                                           |   |                    |    |   |    |   |
| General and administrative                                              |   | —                 |    |   | — |   |
| Depreciation and amortization                                           |   | —                 |    |   | 218     |   |
| Total other expense                                                     |   | —                 |    |   | 218     |   |
| Income (loss) before gain (loss) on disposal of assets and income taxes |   | —                 |    |   | (184    | )      |
| Gain on sale of properties                                              |   | —                 |    |   | 3,619   |   |
| Provision for income taxes                                              |   | —                 |    |   | (4      | )      |
| Income from discontinued operations                                     |   | $                       | — |   |    | $      | 3,431 |   |

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|                                                              |        |                         |        |        |         |        |        |         |        |   |       |        |
|--------------------------------------------------------------|--------|-------------------------|--------|--------|---------|--------|--------|---------|--------|---|-------|--------|
|                                                         |   | Year Ended December 31, |
|                                                         |   | 2010                    |   | 2009   |    | 2008   |
| Net income attributable to Whitestone REIT                   |   | $                       | 1,105  |   |    | $      | 1,342  |    |   | $ | 1,134 |   |
| Depreciation and amortization of real estate assets (1) |   | 6,697                   |   |   | 6,347   |   |   | 5,877   |   |
| (Gain) loss on sale or disposal of assets (1)                |   | 160                     |   |   | 196     |   |   | (3,396  | )      |
| Net income attributable to noncontrolling interests          |   | 470                     |   |   | 733     |   |   | 621     |   |
| FFO                                                          |   | 8,432                   |   |   | 8,618   |   |   | 4,236   |   |
| Acquisition costs                                            |   | 46                      |   |   | 75      |   |   | — |   |
| (Gain) loss on insurance settlement (2)                      |   | (558                    | )      |   | (1,934  | )      |   | 358     |   |
| Litigation costs with our former external manager            |   | —                 |   |   | — |   |   | 1,491   |   |
| FFO-Core                                                     |   | $                       | 7,920  |   |    | $      | 6,759  |    |   | $ | 6,085 |   |

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|                                                            |        |                                                                                             |        |                                                                             |         |                                                                                              |         |         |         |           |        |           |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------|---------|---------|---------|-----------|--------|-----------|
| Plan Category                                              |   | Number of securities to be issued upon exercise of outstanding options, warrants and rights |   | Weighted-average exercise price of outstanding options, warrants and rights |    | Number of securities remaining available for future issuance under equity compensation plans |    |
|                                                       |   |                                                                                        |   |                                                                        |    |                                                                                         |    |
| Equity compensation plans approved by security holders     |   | —                                                                                     |   | (1                                                                     | )  | $                                                                                            | — |    |    | 473,814   |   | (2)  |
|                                                       |   |                                                                                        |   |                                                                        |    |                                                                                         |    |
| Equity compensation plans not approved by security holders |   | —                                                                                     |   |                                                                        | — |                                                                                         |    | — |    | (3)  |
|                                                       |   |                                                                                        |   |                                                                        |    |                                                                                         |    |
| Total                                                      |   | —                                                                                     |   |                                                                        | $       | —                                                                                      |    |    | 473,814 |      |   |

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|                            |                                                                                                                                               |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| 1.     | Financial Statements.  The list of our financial statements filed as part of this Annual Report on Form 10-K is set forth on page F-1 herein. |

|                            |                                |
|----------------------------|--------------------------------|
| 2.     | Financial Statement Schedules. |

|                            |                                                |
|----------------------------|------------------------------------------------|
| a.     | Schedule II - Valuation and Qualifying Amounts |

|                            |                                                         |
|----------------------------|---------------------------------------------------------|
| b.     | Schedule III - Real Estate and Accumulated Depreciation |

|                            |                                                                                                                                                                                                                    |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.     | Exhibits.  The list of exhibits filed as part of this Annual Report on Form 10-K in response to Item 601 of Regulation S-K is submitted on the Exhibit Index attached hereto and incorporated herein by reference. |

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|        |                    |        |           |                                       |
|--------|--------------------|--------|-----------|---------------------------------------|
|   |               |   |      | WHITESTONE REIT        |
| Date:  | March 1, 2011 |   | By:  | /s/ James C. Mastandrea          |
|   |               |   |      | James C. Mastandrea, Chairman and CEO |

|                    |                                                        |        |
|--------------------|--------------------------------------------------------|--------|
| March 1, 2011 | /s/ James C. Mastandrea                           |   |
|               | James C. Mastandrea, Chairman and CEO                  |   |
|               | (Principal Executive Officer)                          |   |
|               |                                                   |   |
| March 1, 2011 | /s/ David K. Holeman                              |   |
|               | David K. Holeman, Chief Financial Officer              |   |
|               | (Principal Financial and Principal Accounting Officer) |   |
|               |                                                   |   |
| March 1, 2011 | /s/ Daryl J. Carter                               |   |
|               | Daryl J. Carter, Trustee                               |   |
|               |                                                   |   |
| March 1, 2011 | /s/ Daniel G. DeVos                               |   |
|               | Daniel G. DeVos, Trustee                               |   |
|               |                                                   |   |
| March 1, 2011 | /s/ Donald F. Keating                        |   |
|               | Donald F. Keating, Trustee                             |   |
|               |                                                   |   |
| March 1, 2011 | /s/ Jack L. Mahaffey                              |   |
|               | Jack L. Mahaffey, Trustee                              |   |
|               |                                                   |   |

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|        |                                                                                                                    |        |
|--------|--------------------------------------------------------------------------------------------------------------------|--------|
|   | Report of Independent Registered Public Accounting Firm                                                            | F- 2   |
|   |                                                                                                               |   |
|   | Consolidated Balance Sheets as of December 31, 2010 and 2009                                                       | F- 3   |
|   |                                                                                                               |   |
|   | Consolidated Statements of Operations and Comprehensive Income for theYears Ended December 31, 2010, 2009 and 2008 | F- 4   |
|   |                                                                                                               |   |
|   | Consolidated Statements of Changes in Equity for the Years EndedDecember 31, 2010, 2009 and 2008                   | F- 6   |
|   |                                                                                                               |   |
|   | Consolidated Statements of Cash Flows for the Years Ended December 31, 2010,2009 and 2008                          | F- 7   |
|   |                                                                                                               |   |
|   | Notes to Consolidated Financial Statements                                                                         | F- 8   |
|   |                                                                                                               |   |
|   | Schedule II – Valuation and Qualifying Accounts                                                              | F- 22  |
|   |                                                                                                               |   |
|   | Schedule III – Real Estate and Accumulated Depreciation                                                      | F- 23  |

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|                                                                                             |        |              |         |        |         |        |         |        |
|---------------------------------------------------------------------------------------------|--------|--------------|---------|--------|---------|--------|---------|--------|
|                                                                                        |   | December 31, |
|                                                                                        |   | 2010         |    | 2009   |
| ASSETS                                                                                      |
| Real estate assets, at cost:                                                                |   |         |    |   |
| Property                                                                                    |   | $            | 204,954 |   |    | $      | 192,832 |   |
| Accumulated depreciation                                                                    |   | (39,556      | )       |   | (34,434 | )      |
| Total real estate assets                                                                    |   | 165,398      |    |   | 158,398 |   |
| Cash and cash equivalents                                                                   |   | 17,591       |    |   | 6,275   |   |
| Escrows and acquisition deposits                                                            |   | 4,385        |    |   | 8,155   |   |
| Accrued rent and accounts receivable, net of allowance for doubtful accounts                |   | 4,726        |    |   | 4,514   |   |
| Unamortized lease commissions and loan costs                                                |   | 3,598        |    |   | 3,973   |   |
| Prepaid expenses and other assets                                                           |   | 747          |    |   | 685     |   |
| Total assets                                                                                |   | $            | 196,445 |   |    | $      | 182,000 |   |
| LIABILITIES AND EQUITY                                                                      |
| Liabilities:                                                                                |   |         |    |   |    |   |
| Notes payable                                                                               |   | $            | 100,941 |   |    | $      | 101,782 |   |
| Accounts payable and accrued expenses                                                       |   | 7,292        |    |   | 9,954   |   |
| Tenants' security deposits                                                                  |   | 1,796        |    |   | 1,630   |   |
| Dividends and distributions payable                                                         |   | 2,133        |    |   | 1,775   |   |
| Total liabilities                                                                           |   | 112,162      |    |   | 115,141 |   |
| Commitments and Contingencies:                                                              |   |         |    |   |    |   |
| Equity:                                                                                     |   |         |    |   |    |   |
| Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and |   |         |    |   |
| outstanding at December 31, 2010 and December 31, 2009, respectively                        |   | —      |    |   | — |   |
| Class A common shares, $0.001 par value per share; 50,000,000 shares authorized; 3,471,187  |   |         |    |   |
| and 3,445,769 issued and outstanding as of December 31, 2010 and December 31, 2009,         |   |         |    |   |
| respectively                                                                                |   | 3            |    |   | 10      |   |
| Class B common shares, $0.001 par value per share; 350,000,000 shares authorized;           |   |         |    |   |
| 2,200,000 and 0 issued and outstanding as of December 31, 2010 and December 31, 2009,       |   |         |    |   |
| respectively                                                                                |   | 2            |    |   | — |   |
|    Additional paid-in capital                                                |   | 93,357       |    |   | 69,952  |   |
|    Accumulated deficit                                                       |   | (30,654      | )       |   | (26,372 | )      |
|       Total Whitestone REIT shareholders' equity              |   | 62,708       |    |   | 43,590  |   |
|    Noncontrolling interest in subsidiary                                     |   | 21,575       |    |   | 23,269  |   |
|    Total equity                                                              |   | 84,283       |    |   | 66,859  |   |
|       Total liabilities and equity                            |   | $            | 196,445 |   |    | $      | 182,000 |   |

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|                                                                                       |        |                         |        |        |         |        |        |        |        |   |        |        |
|---------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|---------|--------|--------|--------|--------|---|--------|--------|
|                                                                                  |   | Year Ended December 31, |
|                                                                                  |   | 2010                    |   | 2009   |    | 2008   |
|                                                                                  |   |                    |   |   |    |   |
| Property revenues                                                                     |   |                    |   |   |    |   |
| Rental revenues                                                                       |   | $                       | 25,901 |   |    | $      | 26,449 |   |   | $ | 24,999 |   |
| Other revenues                                                                        |   | 5,632                   |   |   | 6,236   |   |   | 6,202  |   |
| Total property revenues                                                          |   | 31,533                  |   |   | 32,685  |   |   | 31,201 |   |
|                                                                                  |   |                    |   |   |    |   |
| Property expenses                                                                     |   |                    |   |   |    |   |   |   |   |
| Property operation and maintenance                                                    |   | 8,358                   |   |   | 8,519   |   |   | 8,862  |   |
| Real estate taxes                                                                     |   | 3,925                   |   |   | 4,472   |   |   | 3,973  |   |
| Total property expenses                                                               |   | 12,283                  |   |   | 12,991  |   |   | 12,835 |   |
|                                                                                  |   |                    |   |   |    |   |
| Other expenses (income)                                                               |   |                    |   |   |    |   |   |   |   |
| General and administrative                                                            |   | 4,992                   |   |   | 6,072   |   |   | 6,708  |   |
| Depreciation & amortization                                                       |   | 7,225                   |   |   | 6,958   |   |   | 6,859  |   |
| Involuntary conversion                                                                |   | (558                    | )      |   | (1,542  | )      |   | 358    |   |
| Interest expense                                                                      |   | 5,620                   |   |   | 5,749   |   |   | 5,857  |   |
| Interest income                                                                       |   | (28                     | )      |   | (36     | )      |   | (182   | )      |
| Total other expense                                                                   |   | 17,251                  |   |   | 17,201  |   |   | 19,600 |   |
|                                                                                  |   |                    |   |   |    |   |
| Income (loss) from continuing operations before loss on disposal  of assets |   |                    |   |   |    |   |   |   |   |
| and income taxes                                                                      |   | 1,999                   |   |   | 2,493   |   |   | (1,234 | )      |
|                                                                                  |   |                    |   |   |    |   |
| Provision for income taxes                                                            |   | (264                    | )      |   | (222    | )      |   | (219   | )      |
| Loss on sale or disposal of assets                                                    |   | (160                    | )      |   | (196    | )      |   | (223   | )      |
| Income (loss) from continuing operations                                              |   | 1,575                   |   |   | 2,075   |   |   | (1,676 | )      |
|                                                                                  |   |                    |   |   |    |   |
| Loss from discontinued operations                                                     |   | —                 |   |   | — |   |   | (188   | )      |
| Gain on sale of properties from discontinued operations                               |   | —                 |   |   | — |   |   | 3,619  |   |
| Net income                                                                            |   | 1,575                   |   |   | 2,075   |   |   | 1,755  |   |
|                                                                                  |   |                    |   |   |    |   |
| Less: Net income attributable to noncontrolling interests                             |   | 470                     |   |   | 733     |   |   | 621    |   |
|                                                                                  |   |                    |   |   |    |   |
| Net income attributable to Whitestone REIT                                            |   | $                       | 1,105  |   |    | $      | 1,342  |   |   | $ | 1,134  |   |

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|                                                                               |        |                         |        |        |         |        |        |         |        |   |       |        |
|-------------------------------------------------------------------------------|--------|-------------------------|--------|--------|---------|--------|--------|---------|--------|---|-------|--------|
|                                                                          |   | Year Ended December 31, |
|                                                                          |   | 2010                    |   | 2009   |    | 2008   |
|                                                                          |   |                    |   |   |    |   |
| Earnings per share - basic                                                    |   |                    |   |   |    |   |
| Income (loss) from continuing operations attributable to Whitestone REIT      |   |                    |   |   |    |   |
| excluding amounts attributable to unvested restricted shares                  |   | $                       | 0.27   |   |    | $      | 0.41   |    |   | $ | (0.32 | )      |
| Income from discontinued operations attributable to Whitestone REIT           |   | —                 |   |   | — |   |   | 0.67    |   |
| Net income attributable to common shareholders excluding amounts              |   |                    |   |   |    |   |   |    |   |
| attributable to unvested restricted shares                                    |   | $                       | 0.27   |   |    | $      | 0.41   |    |   | $ | 0.35  |   |
|                                                                          |   |                    |   |   |    |   |
| Earnings per share - diluted                                                  |   |                    |   |   |    |   |   |    |   |
| Income (loss) from continuing operations attributable to Whitestone REIT      |   |                    |   |   |    |   |   |    |   |
| excluding amounts attributable to unvested restricted shares                  |   | $                       | 0.27   |   |    | $      | 0.40   |    |   | $ | (0.32 | )      |
| Income from discontinued operations attributable to Whitestone REIT           |   | —                 |   |   | — |   |   | 0.67    |   |
| Net income attributable to common shareholders excluding amounts attributable |   |                    |   |   |    |   |
| to unvested restricted shares                                                 |   | $                       | 0.27   |   |    | $      | 0.40   |    |   | $ | 0.35  |   |
|                                                                          |   |                    |   |   |    |   |
| Weighted average number of common shares outstanding:                         |   |                    |   |   |    |   |   |    |   |
| Basic                                                                         |   | 4,012                   |   |   | 3,236   |   |   | 3,277   |   |
| Diluted                                                                       |   | 4,041                   |   |   | 3,302   |   |   | 3,277   |   |
|                                                                          |   |                    |   |   |    |   |
| Dividends declared per Class A common share                                   |   | $                       | 1.19   |   |    | $      | 1.35   |    |   | $ | 1.59  |   |
| Dividends declared per Class B common share (1)                          |   | 0.57                    |   |   | — |   |   | — |   |
|                                                                          |   |                    |   |   |    |   |
| Condensed Consolidated Statements of Comprehensive Income                     |   |                    |   |   |    |   |   |    |   |
|                                                                          |   |                    |   |   |    |   |
| Net income                                                                    |   | $                       | 1,575  |   |    | $      | 2,075  |    |   | $ | 1,755 |   |
| Other comprehensive gain                                                      |   |                    |   |   |    |   |   |    |   |
| Unrealized gain on cash flow hedging activities                               |   | —                 |   |   | — |   |   | 368     |   |
| Comprehensive income                                                          |   | 1,575                   |   |   | 2,075   |   |   | 2,123   |   |
|                                                                          |   |                    |   |   |    |   |
| Less: Comprehensive income attributable to noncontrolling interests           |   | 470                     |   |   | 733     |   |   | 759     |   |
|                                                                          |   |                    |   |   |    |   |
| Comprehensive income attributable to Whitestone REIT                          |   | $                       | 1,105  |   |    | $      | 1,342  |    |   | $ | 1,364 |   |

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|                                 |        |               |        |               |         |            |        |             |         |               |         |               |         |                |        |        |         |        |        |         |         |        |         |        |         |         |        |        |         |        |        |         |        |        |   |        |        |        |   |        |        |
|---------------------------------|--------|---------------|--------|---------------|---------|------------|--------|-------------|---------|---------------|---------|---------------|---------|----------------|--------|--------|---------|--------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|--------|--------|--------|---|--------|--------|
|                            |   |          |   |          |    |       |   |        |    | Accumulated   |    |          |    |           |   |   |    |   |
|                            |   | Class A       |   | Class B       |    | Additional |   |        |    | Other         |    | Total         |    | Noncontrolling |   |   |
|                            |   | Common Shares |   | Common Shares |    | Paid-in    |   | Accumulated |    | Comprehensive |    | Shareholders' |    | Interests      |   | Total  |
|                            |   | Shares        |   | Amount        |    | Shares     |   | Amount      |    | Capital       |    | Deficit       |    | Losss          |   | Equity |    | Units  |   | Dollars |    | Equity |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Balance, December 31, 2007      |   | 3,334         |   |          | $       | 10         |   |        | — |          |    | $             | — |           |   | $      | 72,273  |   |   | $       | (19,210 | )      |    | $      | (230    | )       |   | $      | 52,843  |   |   | 1,936   |   |   | $ | 28,039 |   |   | $ | 80,882 |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Repurchase of common            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| stock and units                 |   | (98           | )      |          | — |       |   | —     |    |          | — |          |    | (2,479         | )      |   | — |   |   | — |    |   | (2,479  | )      |    | (356    | )      |   | (4,762  | )      |   | (7,241  | )      |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Reclassification of dividend    |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| reinvestment plan shares        |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| with rescission rights to       |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| liabilities at $28.50 per       |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| share                           |   | —       |   |          | — |       |   | —     |    |          | — |          |    | (606           | )      |   | — |   |   | — |    |   | (606    | )      |    | — |   |   | — |   |   | (606    | )      |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Dividends and distributions     |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | (5,231  | )      |   | — |    |   | (5,231  | )      |    | — |   |   | (2,755  | )      |   | (7,986  | )      |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Unrealized loss on change in    |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| fair value of cash flow         |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| hedges                          |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | — |   |   | 230     |    |   | 230     |   |    | — |   |   | 138     |   |   | 368     |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Net income                      |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | 1,134   |   |   | — |    |   | 1,134   |   |    | — |   |   | 621     |   |   | 1,755   |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Balance, December 31, 2008      |   | 3,236         |   |          | 10      |       |   | —     |    |          | — |          |    | 69,188         |   |   | (23,307 | )      |   | — |    |   | 45,891  |   |    | 1,580   |   |   | 21,281  |   |   | 67,172  |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| OP units issued at $15.45 per   |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| per unit in connection with     |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| property acquistion             |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | — |   |   | — |    |   | — |   |    | 235     |   |   | 3,625   |   |   | 3,625   |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Share-based compensation        |   | 210           |   |          | — |       |   | —     |    |          | — |          |    | 764            |   |   | — |   |   | — |    |   | 764     |   |    | — |   |   | — |   |   | 764     |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Dividends and distributions     |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | (4,407  | )      |   | — |    |   | (4,407  | )      |    | — |   |   | (2,370  | )      |   | (6,777  | )      |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Net income                      |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | 1,342   |   |   | — |    |   | 1,342   |   |    | — |   |   | 733     |   |   | 2,075   |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Balance, December 31, 2009      |   | 3,446         |   |          | 10      |       |   | —     |    |          | — |          |    | 69,952         |   |   | (26,372 | )      |   | — |    |   | 43,590  |   |    | 1,815   |   |   | 23,269  |   |   | 66,859  |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Change in par value of          |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| common shares                   |   | —       |   |          | (7      | )          |   | —     |    |          | — |          |    | 7              |   |   | — |   |   | — |    |   | — |   |    | — |   |   | — |   |   | — |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Issuance of common shares       |   | —       |   |          | — |       |   | 2,200       |    |          | 2       |          |    | 22,968         |   |   | — |   |   | — |    |   | 22,970  |   |    | — |   |   | — |   |   | 22,970  |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Share-based compensation        |   | 41            |   |          | — |       |   | —     |    |          | — |          |    | 73             |   |   | — |   |   | — |    |   | 73      |   |    | — |   |   | — |   |   | 73      |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Dividends and distributions     |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | (5,387  | )      |   | — |    |   | (5,387  | )      |    | — |   |   | (2,164  | )      |   | (7,551  | )      |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Repurchase of common            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| shares (1)                      |   | (16           | )      |          | — |       |   | —     |    |          | — |          |    | (249           | )      |   | — |   |   | — |    |   | (249    | )      |    | — |   |   | — |   |   | (249    | )      |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Reclassification of dividend    |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| reinvestment plan shares        |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| with expired rescission         |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| rights to equity from           |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| liabilities at $28.50 per share |   | —       |   |          | — |       |   | —     |    |          | — |          |    | 606            |   |   | — |   |   | — |    |   | 606     |   |    | — |   |   | — |   |   | 606     |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Net income                      |   | —       |   |          | — |       |   | —     |    |          | — |          |    | —        |   |   | 1,105   |   |   | — |    |   | 1,105   |   |    | — |   |   | 470     |   |   | 1,575   |   |
|                            |   |          |   |          |    |       |   |        |    |          |    |          |    |           |   |   |    |   |   |    |    |   |
| Balance, December 31, 2010      |   | 3,471         |   |          | $       | 3          |   |        | 2,200   |          |    | $             | 2       |           |   | $      | 93,357  |   |   | $       | (30,654 | )      |    | $      | — |    |   | $      | 62,708  |   |   | 1,815   |   |   | $ | 21,575 |   |   | $ | 84,283 |   |

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|                                                                                          |        |                         |        |        |         |        |        |         |        |   |        |        |
|------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|---------|--------|--------|---------|--------|---|--------|--------|
|                                                                                     |   | Year Ended December 31, |
|                                                                                     |   | 2010                    |   | 2009   |    | 2008   |
| Cash flows from operating activities:                                                    |   |                    |   |   |    |   |
| Net income (loss)                                                                        |   | $                       | 1,575  |   |    | $      | 2,075  |    |   | $ | (1,676 | )      |
| Net income from discontinued operations                                                  |   | —                 |   |   | — |   |   | 3,431   |   |
|                                                                                     |   | 1,575                   |   |   | 2,075   |   |   | 1,755   |   |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |                    |   |   |    |   |   |    |   |
| Depreciation and amortization                                                            |   | 7,225                   |   |   | 6,958   |   |   | 6,859   |   |
| Loss on sale or disposal of assets                                                       |   | 160                     |   |   | 196     |   |   | 223     |   |
| Bad debt expense                                                                         |   | 536                     |   |   | 877     |   |   | 731     |   |
| Share-based compensation                                                                 |   | 297                     |   |   | 1,013   |   |   | — |   |
| Changes in operating assets and liabilities:                                             |   |                    |   |   |    |   |   |    |
| Escrows and acquisition deposits                                                         |   | 3,840                   |   |   | (3,700  | )      |   | (3,590  | )      |
| Accrued rent and accounts receivable                                                     |   | (748                    | )      |   | (511    | )      |   | (225    | )      |
| Unamortized lease commissions and loan costs                                             |   | (783                    | )      |   | (634    | )      |   | (813    | )      |
| Prepaid expenses and other assets                                                        |   | 446                     |   |   | 527     |   |   | 417     |   |
| Accounts payable and accrued expenses                                                    |   | (2,319                  | )      |   | 2,096   |   |   | 655     |   |
| Tenants' security deposits                                                               |   | 166                     |   |   | 1       |   |   | 31      |   |
| Net cash provided by operating activities                                                |   | 10,395                  |   |   | 8,898   |   |   | 2,612   |   |
| Net cash provided by operating activities of discontinued operations                     |   | —                 |   |   | — |   |   | 8       |   |
| Cash flows from investing activities:                                                    |   |                    |   |   |    |   |   |    |   |
| Acquisitions of real estate                                                              |   | (8,625                  | )      |   | (5,619  | )      |   | — |   |
| Additions to real estate                                                                 |   | (4,143                  | )      |   | (3,611  | )      |   | (5,153  | )      |
| Net cash used in investing activities                                                    |   | (12,768                 | )      |   | (9,230  | )      |   | (5,153  | )      |
| Net cash used in investing activities of discontinued operations                         |   | —                 |   |   | — |   |   | (8      | )      |
| Cash flows from financing activities:                                                    |   |                    |   |   |    |   |   |    |   |
| Dividends paid                                                                           |   | (5,158                  | )      |   | (4,645  | )      |   | (5,578  | )      |
| Distributions paid to OP unit holders                                                    |   | (2,249                  | )      |   | (2,281  | )      |   | (3,094  | )      |
| Proceeds from issuance of common shares                                                  |   | 22,970                  |   |   | — |   |   | — |   |
| Proceeds from notes payable                                                              |   | 1,430                   |   |   | 9,557   |   |   | 95,053  |   |
| Repayments of notes payable                                                              |   | (2,957                  | )      |   | (8,725  | )      |   | (78,990 | )      |
| Payments of loan origination costs                                                       |   | (98                     | )      |   | (288    | )      |   | (2,672  | )      |
| Repurchase of common stock                                                               |   | (249                    | )      |   | — |   |   | — |   |
| Net cash provided by (used in) financing activities                                      |   | 13,689                  |   |   | (6,382  | )      |   | 4,719   |   |
| Net increase (decrease) in cash and cash equivalents                                     |   | 11,316                  |   |   | (6,714  | )      |   | 2,178   |   |
| Cash and cash equivalents at beginning of period                                         |   | 6,275                   |   |   | 12,989  |   |   | 10,811  |   |
| Cash and cash equivalents at end of period                                               |   | $                       | 17,591 |   |    | $      | 6,275  |    |   | $ | 12,989 |   |
| Supplemental disclosure of cash flow information:                                        |   |                    |   |   |    |   |   |    |   |
| Cash paid for interest                                                                   |   | $                       | 5,621  |   |    | $      | 5,535  |    |   | $ | 5,189  |   |
| Cash paid for taxes                                                                      |   | 262                     |   |   | 223     |   |   | 224     |   |
| Non cash Investing and financing activities:                                             |   |                    |   |   |    |   |   |    |   |
| Disposal of fully depreciated real estate                                                |   | $                       | 598    |   |    | $      | 564    |    |   | $ | 698    |   |
| Financed insurance premiums                                                              |   | 616                     |   |   | 568     |   |   | 476     |   |
| Acquistion of real estate in exchange for OP units                                       |   | —                 |   |   | 3,625   |   |   | — |   |
| Change in par value of Class A common shares                                             |   | 7                       |   |   | — |   |   | — |   |
| Disposal of real estate in settlement of  lawsuit                              |   | —                 |   |   | — |   |   | 7,844   |   |
| Reclassification of dividend reinvestment shares with rescission rights                  |   | 606                     |   |   | — |   |   | (606    | )      |

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|                                 |        |              |        |        |        |        |       |        |
|---------------------------------|--------|--------------|--------|--------|--------|--------|-------|--------|
|                            |   | December 31, |
|                            |   | 2010         |   | 2009   |
| Tenant receivables              |   | $            | 1,742  |   |   | $      | 1,770 |   |
| Accrued rent                    |   | 4,288        |   |   | 3,636  |   |
| Allowance for doubtful accounts |   | (1,304       | )      |   | (894   | )      |
| Other receivables               |   | —      |   |   | 2      |   |
| Totals                          |   | $            | 4,726  |   |   | $      | 4,514 |   |

|                                                        |        |              |        |        |        |        |       |        |
|--------------------------------------------------------|--------|--------------|--------|--------|--------|--------|-------|--------|
|                                                   |   | December 31, |
|                                                   |   | 2010         |   | 2009   |
| Leasing commissions                                    |   | $            | 4,971  |   |   | $      | 4,601 |   |
| Deferred financing costs                               |   | 2,307        |   |   | 2,208  |   |
| Total cost                                             |   | 7,278        |   |   | 6,809  |   |
| Less: leasing commissions accumulated amortization     |   | (2,669       | )      |   | (2,246 | )      |
| Less: deferred financing cost accumulated amortization |   | (1,011       | )      |   | (590   | )      |
| Total cost, net of accumulated amortization            |   | $            | 3,598  |   |   | $      | 3,973 |   |

|                          |        |             |        |                    |         |        |        |        |        |   |       |        |
|--------------------------|--------|-------------|--------|--------------------|---------|--------|--------|--------|--------|---|-------|--------|
|                     |   | Leasing     |   | Deferred Financing |    |   |
| Years Ended December 31, |   | Commissions |   | Costs              |    | Total  |
| 2011                     |   | $           | 731    |               |    | $      | 440    |   |   | $ | 1,171 |   |
| 2012                     |   | 568         |   |               | 440     |   |   | 1,008  |   |
| 2013                     |   | 388         |   |               | 364     |   |   | 752    |   |
| 2014                     |   | 251         |   |               | 39      |   |   | 290    |   |
| 2015                     |   | 157         |   |               | 13      |   |   | 170    |   |
| Thereafter               |   | 207         |   |               | — |   |   | 207    |   |
| Total                    |   | $           | 2,302  |               |    | $      | 1,296  |   |   | $ | 3,598 |   |

----

|                          |        |                      |        |        |
|--------------------------|--------|----------------------|--------|--------|
| Years Ended December 31, |   | Minimum Future Rents |
| 2011                     |   | $                    | 24,186 |   |
| 2012                     |   | 20,036               |   |
| 2013                     |   | 14,448               |   |
| 2014                     |   | 9,972                |   |
| 2015                     |   | 6,415                |   |
| Thereafter               |   | 14,536               |   |
| Total                    |   | $                    | 89,593 |   |

|                                             |        |              |         |        |         |        |         |        |
|---------------------------------------------|--------|--------------|---------|--------|---------|--------|---------|--------|
|                                        |   | Year Ended   |
|                                        |   | December 31, |
| Description                                 |   | 2010         |    | 2009   |
| Fixed rate notes                            |   |         |    |   |
| $10.0 million 6.04% Note, due 2014          |   | $            | 9,498   |   |    | $      | 9,646   |   |
| $1.5 million 6.50% Note, due 2014           |   | 1,496        |    |   | — |   |
| $11.2 million 6.52% Note, due 2015          |   | 10,908       |    |   | 11,043  |   |
| $21.4 million 6.53% Notes, due 2013         |   | 20,142       |    |   | 20,721  |   |
| $24.5 million 6.56% Note, due 2013          |   | 24,030       |    |   | 24,435  |   |
| $9.9 million 6.63% Notes, due 2014          |   | 9,498        |    |   | 9,757   |   |
| $0.5 million 5.05% Notes, due 2011 and 2010 |   | 13           |    |   | 52      |   |
| Floating rate note                          |   |         |    |   |    |   |
| $26.9 million LIBOR + 2.86% Note, due 2013  |   | 25,356       |    |   | 26,128  |   |
|                                        |   | $            | 100,941 |   |    | $      | 101,782 |   |

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|                     |                |         |        |
|---------------------|----------------|---------|--------|
|                | Amount Due     |
| Year                | (in thousands) |
|                |           |
| 2011                | $              | 2,459   |   |
| 2012                | 2,579          |    |
| 2013                | 66,424         |    |
| 2014                | 19,209         |    |
| 2015                | 10,270         |    |
| 2016 and thereafter | —        |    |
| Total               | $              | 100,941 |   |

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|                                                                             |        |                         |        |        |         |        |        |         |        |   |        |        |
|-----------------------------------------------------------------------------|--------|-------------------------|--------|--------|---------|--------|--------|---------|--------|---|--------|--------|
|                                                                        |   | Year Ended December 31, |
| (in thousands, except per share data)                                       |   | 2010                    |   | 2009   |    | 2008   |
| Numerator:                                                                  |   |                    |   |   |    |   |
| Income (loss) from continuing operations                                    |   | $                       | 1,575  |   |    | $      | 2,075  |    |   | $ | (1,676 | )      |
| Less:  Net loss (income) attributable to noncontrolling interests |   | (470                    | )      |   | (733    | )      |   | 627     |   |
| Dividends paid on unvested restricted shares                                |   | (27                     | )      |   | (27     | )      |   | — |   |
| Undistributed earnings attributable to unvested restricted shares           |   | —                 |   |   | — |   |   | — |   |
| Income (loss) from continuing operations attributable to Whitestone REIT    |   |                    |   |   |    |   |
| excluding amounts attributable to unvested restricted shares                |   | 1,078                   |   |   | 1,315   |   |   | (1,049  | )      |
| Income from discontinued operations                                         |   | —                 |   |   | — |   |   | 3,431   |   |
| Less:  Net income attributable to noncontrolling interests        |   | —                 |   |   | — |   |   | (1,248  | )      |
| Income from discontinued operations attributable to Whitestone REIT         |   | —                 |   |   | — |   |   | 2,183   |   |
| Net income attributable to common shareholders excluding amounts            |   |                    |   |   |    |   |
| attributable to unvested restricted shares                                  |   | $                       | 1,078  |   |    | $      | 1,315  |    |   | $ | 1,134  |   |
| Denominator                                                                 |   |                    |   |   |    |   |   |    |   |
| Weighted average number of common shares - basic                            |   | 4,012                   |   |   | 3,236   |   |   | 3,277   |   |
| Effect of dilutive securities:                                              |   |                    |   |   |    |   |   |    |   |
| Unvested restricted shares                                                  |   | 29                      |   |   | 66      |   |   | — |   |
| Weighted average number of common shares - dilutive                         |   | 4,041                   |   |   | 3,302   |   |   | 3,277   |   |
| Basic earnings per common share:                                            |   |                    |   |   |    |   |   |    |   |
| Income (loss) from continuing operations attributable to Whitestone REIT    |   |                    |   |   |    |   |
| excluding amounts attributable to unvested restricted shares                |   | $                       | 0.27   |   |    | $      | 0.41   |    |   | $ | (0.32  | )      |
| Income from discontinued operations attributable to Whitestone REIT         |   | —                 |   |   | — |   |   | 0.67    |   |
| Net income attributable to common shareholders excluding amounts            |   |                    |   |   |    |   |
| attributable to unvested restricted shares                                  |   | $                       | 0.27   |   |    | $      | 0.41   |    |   | $ | 0.35   |   |
| Diluted earnings per common share:                                          |   |                    |   |   |    |   |   |    |   |
| Income (loss) from continuing operations attributable to Whitestone REIT    |   |                    |   |   |    |   |
| excluding amounts attributable to unvested restricted shares                |   | $                       | 0.27   |   |    | $      | 0.40   |    |   | $ | (0.32  | )      |
| Income from discontinued operations attributable to Whitestone REIT         |   | —                 |   |   | — |   |   | 0.67    |   |
| Net income attributable to common shareholders excluding amounts            |   |                    |   |   |    |   |
| attributable to unvested restricted shares                                  |   | $                       | 0.27   |   |    | $      | 0.40   |    |   | $ | 0.35   |   |

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Table of Contents

|                                        |        |         |        |        |         |      |        |       |   |
|----------------------------------------|--------|---------|--------|--------|---------|------|--------|-------|---|
|                                   |   | 2010    |   | 2009   |    | 2008 |
| Ordinary income (unaudited)            |   | 37.8    | %      |   | 40.5    | %    |   | 3.8   | % |
| Return of capital (unaudited)          |   | 62.2    | %      |   | 59.5    | %    |   | 67.6  | % |
| Capital gain distributions (unaudited) |   | — | %      |   | — | %    |   | 28.6  | % |
| Total                                  |   | 100.0   | %      |   | 100.0   | %    |   | 100.0 | % |

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|                                |                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| •     | the right to vote together with Class A common shareholders on all matters submitted to the Company’s shareholders; |

|                                |                                                                         |
|--------------------------------|-------------------------------------------------------------------------|
| •     | one vote on all matters voted upon by the Company’s shareholders; |

|                                |                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------|
| •     | the right to receive dividends equal to any dividends declared on the Class A common shares; and |

|                                |                                                                                  |
|--------------------------------|----------------------------------------------------------------------------------|
| •     | liquidation rights equal to the liquidation rights of each Class A common share. |

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Table of Contents

|                |        |                             |        |                             |        |                                |        |                   |        |                          |         |                   |        |                   |         |        |        |        |        |        |        |   |       |        |        |   |       |        |
|----------------|--------|-----------------------------|--------|-----------------------------|--------|--------------------------------|--------|-------------------|--------|--------------------------|---------|-------------------|--------|-------------------|---------|--------|--------|--------|--------|--------|--------|---|-------|--------|--------|---|-------|--------|
|           |   | Class A Common Shareholders |   | Class B Common Shareholders |   | Noncontrolling OP Unit Holders |   | Total             |
| Quarter Paid   |   | Dividend Per Common Share   |   | Total Amount Paid           |   | Dividend Per Common Share      |   | Total Amount Paid |   | Distribution Per OP Unit |    | Total Amount Paid |   | Total Amount Paid |
| 2010           |   |                        |   |                        |   |                           |   |              |   |                     |    |              |   |              |
| Fourth Quarter |   | $                           | 0.2850 |                        |   | $                              | 989    |              |   | $                        | 0.2850  |              |   | $                 | 627     |   |   | $      | 0.2850 |   |   | $ | 514   |   |   | $ | 2,130 |   |
| Third Quarter  |   | 0.2850                      |   |                        | 992    |                           |   | 0.0960            |   |                     | 211     |              |   | 0.2850            |    |   | 515    |   |   | 1,718  |   |
| Second Quarter |   | 0.3375                      |   |                        | 1,176  |                           |   | —           |   |                     | — |              |   | 0.3375            |    |   | 610    |   |   | 1,786  |   |
| First Quarter  |   | 0.3375                      |   |                        | 1,163  |                           |   | —           |   |                     | — |              |   | 0.3375            |    |   | 610    |   |   | 1,773  |   |
| Total          |   | $                           | 1.2450 |                        |   | $                              | 4,320  |              |   | $                        | 0.3810  |              |   | $                 | 838     |   |   | $      | 1.2450 |   |   | $ | 2,249 |   |   | $ | 7,407 |   |
|           |   |                        |   |                        |   |                           |   |              |   |                     |    |              |   |              |
| 2009           |   |                        |   |                        |   |                           |   |              |   |                     |    |              |   |              |
| Fourth Quarter |   | $                           | 0.3375 |                        |   | $                              | 1,163  |              |   | $                        | — |              |   | $                 | — |   |   | $      | 0.3375 |   |   | $ | 610   |   |   | $ | 1,773 |   |
| Third Quarter  |   | 0.3375                      |   |                        | 1,163  |                           |   | —           |   |                     | — |              |   | 0.3375            |    |   | 610    |   |   | 1,773  |   |
| Second Quarter |   | 0.3375                      |   |                        | 1,163  |                           |   | —           |   |                     | — |              |   | 0.3375            |    |   | 530    |   |   | 1,693  |   |
| First Quarter  |   | 0.3375                      |   |                        | 1,156  |                           |   | —           |   |                     | — |              |   | 0.3375            |    |   | 531    |   |   | 1,687  |   |
| Total          |   | $                           | 1.3500 |                        |   | $                              | 4,645  |              |   | $                        | — |              |   | $                 | — |   |   | $      | 1.3500 |   |   | $ | 2,281 |   |   | $ | 6,926 |   |

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Table of Contents

|                                          |        |         |        |                                          |        |        |        |
|------------------------------------------|--------|---------|--------|------------------------------------------|--------|--------|--------|
|                                     |   | Shares  |   | Weighted-AverageGrant DateFair Value (1) |
| Non-vested at January 1, 2010            |   | 588,564 |   |                                     | $      | 12.39  |   |
| Granted                                  |   | 31,858  |   |                                     | 14.09  |   |
| Vested                                   |   | (55,699 | )      |                                     | 12.48  |   |
| Forfeited                                |   | (42,282 | )      |                                     | 12.52  |   |
| Non-vested at December 31, 2010          |   | 522,441 |   |                                     | $      | 12.48  |   |
| Available for grant at December 31, 2010 |   | 473,814 |   |                                     |   |

|            |        |                          |        |                                        |         |               |        |                            |         |        |         |        |     |        |
|------------|--------|--------------------------|--------|----------------------------------------|---------|---------------|--------|----------------------------|---------|--------|---------|--------|-----|--------|
|       |   | Shares Granted           |   | Shares Vested                          |
| Year Ended |   | Non-Vested Shares Issued |   | Weighted-Average Grant-Date Fair Value |    | Vested Shares |   | Total Vest-Date Fair Value |
|       |   |                     |   |                                   |    |          |   | (in thousands)             |
| 2010       |   | 31,858                   |   |                                   | $       | 14.09         |   |                       | (55,699 | )      |    | $      | 695 |   |
| 2009       |   | 600,731                  |   |                                   | 12.37   |          |   | —                    |    |   | — |   |
| 2008       |   | —                  |   |                                   | — |          |   | —                    |    |   | — |   |

----

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|                                                                 |        |         |        |         |        |         |        |         |        |        |        |        |        |   |       |        |
|-----------------------------------------------------------------|--------|---------|--------|---------|--------|---------|--------|---------|--------|--------|--------|--------|--------|---|-------|--------|
|                                                            |   | First   |   | Second  |   | Third   |   | Fourth  |
|                                                            |   | Quarter |   | Quarter |   | Quarter |   | Quarter |
| 2010                                                            |   |    |   |    |   |    |   |    |
| Revenues from continuing operations                             |   | $       | 7,709  |    |   | $       | 7,832  |    |   | $      | 7,933  |   |   | $ | 8,059 |   |
| Net income attributable to Whitestone REIT                      |   | 217     |   |    | 166    |    |   | 177     |   |   | 545    |   |
| Earnings per share:                                             |   |    |   |    |   |    |   |    |   |   |   |   |
| Basic - Net income attributable to Whitestone REIT (1)          |   | $       | 0.06   |    |   | $       | 0.05   |    |   | $      | 0.04   |   |   | $ | 0.10  |   |
| Diluted - Net income attributable to Whitestone REIT (1)        |   | $       | 0.06   |    |   | $       | 0.05   |    |   | $      | 0.04   |   |   | $ | 0.10  |   |
| 2009                                                            |   |    |   |    |   |    |   |    |
| Revenues from continuing operations                             |   | $       | 8,044  |    |   | $       | 8,203  |    |   | $      | 8,484  |   |   | $ | 7,954 |   |
| Net income (loss) attributable to Whitestone REIT               |   | (21     | )      |    | 47     |    |   | 601     |   |   | 715    |   |
| Earnings per share:                                             |   |    |   |    |   |    |   |    |
| Basic - Net income (loss) attributable to Whitestone REIT (1)   |   | $       | (0.01  | )       |   | $       | 0.01   |    |   | $      | 0.18   |   |   | $ | 0.22  |   |
| Diluted - Net income (loss) attributable to Whitestone REIT (1) |   | (0.01   | )      |    | 0.01   |    |   | 0.18    |   |   | 0.21   |   |

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Table of Contents

|                                  |        |                |        |            |        |            |        |            |        |        |       |        |   |       |        |
|----------------------------------|--------|----------------|--------|------------|--------|------------|--------|------------|--------|--------|-------|--------|---|-------|--------|
|                             |   | (in thousands) |
|                             |   | Balance at     |   | Charged to |   | Deductions |   | Balance at |
|                             |   | Beginning      |   | Costs and  |   | from       |   | End of     |
| Description                      |   | of Period      |   | Expense    |   | Reserves   |   | Period     |
| Allowance for doubtful accounts: |   |           |   |       |   |       |   |       |
| Year ended December 31, 2010     |   | $              | 894    |       |   | $          | 536    |       |   | (126   | )     |   | $ | 1,304 |   |
| Year ended December 31, 2009     |   | 1,497          |   |       | 877    |       |   | (1,480     | )      |   | 894   |   |
| Year ended December 31, 2008     |   | 865            |   |       | 731    |       |   | (99        | )      |   | 1,497 |   |

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Table of Contents

|                           |        |                             |        |                               |        |                                          |         |                                  |        |        |         |              |        |        |         |        |        |        |        |        |        |   |         |        |        |   |         |        |
|---------------------------|--------|-----------------------------|--------|-------------------------------|--------|------------------------------------------|---------|----------------------------------|--------|--------|---------|--------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---|---------|--------|--------|---|---------|--------|
|                      |   |                        |   |                          |   | Costs Capitalized Subsequent             |    | Gross Amount at which Carried at |
|                      |   | Initial Cost (in thousands) |   | to Acquisition (in thousands) |   | End of Period (in thousands)(1) (2) |
|                      |   |                        |   | Building and                  |   | Improvements                             |    | Carrying                         |   |   |    | Building and |   |   |
| Property Name             |   | Land                        |   | Improvements                  |   | (net)                                    |    | Costs                            |   | Land   |    | Improvements |   | Total  |
| Retail Properties:        |   |                        |   |                          |   |                                     |    |                             |   |   |    |         |   |   |
| Bellnot Square            |   | $                           | 1,154  |                          |   | $                                        | 4,638   |                             |   | $      | 382     |         |   | $      | — |   |   | $      | 1,154  |   |   | $ | 5,020   |   |   | $ | 6,174   |   |
| Bissonnet Beltway         |   | 415                         |   |                          | 1,947  |                                     |    | 417                              |   |   | — |         |   | 415    |    |   | 2,364  |   |   | 2,779  |   |
| Centre South              |   | 481                         |   |                          | 1,596  |                                     |    | 453                              |   |   | — |         |   | 481    |    |   | 2,049  |   |   | 2,530  |   |
| Greens Road               |   | 354                         |   |                          | 1,284  |                                     |    | 137                              |   |   | — |         |   | 354    |    |   | 1,421  |   |   | 1,775  |   |
| Holly Knight              |   | 320                         |   |                          | 1,293  |                                     |    | 188                              |   |   | — |         |   | 320    |    |   | 1,481  |   |   | 1,801  |   |
| Kempwood Plaza            |   | 733                         |   |                          | 1,798  |                                     |    | 1,103                            |   |   | — |         |   | 733    |    |   | 2,901  |   |   | 3,634  |   |
| Lion Square               |   | 1,546                       |   |                          | 4,289  |                                     |    | 976                              |   |   | — |         |   | 1,546  |    |   | 5,265  |   |   | 6,811  |   |
| Providence                |   | 918                         |   |                          | 3,675  |                                     |    | 802                              |   |   | — |         |   | 918    |    |   | 4,477  |   |   | 5,395  |   |
| Shaver                    |   | 184                         |   |                          | 633    |                                     |    | —                          |   |   | — |         |   | 184    |    |   | 633    |   |   | 817    |   |
| South Richey              |   | 778                         |   |                          | 2,584  |                                     |    | 352                              |   |   | — |         |   | 778    |    |   | 2,936  |   |   | 3,714  |   |
| Spoerlein Commons         |   | 2,340                       |   |                          | 7,296  |                                     |    | 154                              |   |   | — |         |   | 2,340  |    |   | 7,450  |   |   | 9,790  |   |
| SugarPark Plaza           |   | 1,781                       |   |                          | 7,125  |                                     |    | 269                              |   |   | — |         |   | 1,781  |    |   | 7,394  |   |   | 9,175  |   |
| Sunridge                  |   | 276                         |   |                          | 1,186  |                                     |    | 212                              |   |   | — |         |   | 276    |    |   | 1,398  |   |   | 1,674  |   |
| Torrey Square             |   | 1,981                       |   |                          | 2,971  |                                     |    | 876                              |   |   | — |         |   | 1,981  |    |   | 3,847  |   |   | 5,828  |   |
| Town Park                 |   | 850                         |   |                          | 2,911  |                                     |    | 250                              |   |   | — |         |   | 850    |    |   | 3,161  |   |   | 4,011  |   |
| Webster Point             |   | 720                         |   |                          | 1,150  |                                     |    | 307                              |   |   | — |         |   | 720    |    |   | 1,457  |   |   | 2,177  |   |
| Westchase                 |   | 423                         |   |                          | 1,751  |                                     |    | 2,734                            |   |   | — |         |   | 423    |    |   | 4,485  |   |   | 4,908  |   |
| Windsor Park              |   | 2,621                       |   |                          | 10,482 |                                     |    | 1,152                            |   |   | — |         |   | 2,621  |    |   | 11,634 |   |   | 14,255 |   |
|                      |   | $                           | 17,875 |                          |   | $                                        | 58,609  |                             |   | $      | 10,764  |         |   | $      | — |   |   | $      | 17,875 |   |   | $ | 69,373  |   |   | $ | 87,248  |   |
| Office/Flex Properties:   |   |                        |   |                          |   |                                     |    |                             |   |   |    |         |   |   |    |   |   |   |   |   |   |
| Brookhill                 |   | $                           | 186    |                          |   | $                                        | 788     |                             |   | $      | 282     |         |   | $      | — |   |   | $      | 186    |   |   | $ | 1,070   |   |   | $ | 1,256   |   |
| Corporate Park Northwest  |   | 1,534                       |   |                          | 6,306  |                                     |    | 912                              |   |   | — |         |   | 1,534  |    |   | 7,218  |   |   | 8,752  |   |
| Corporate Park West       |   | 2,555                       |   |                          | 10,267 |                                     |    | 786                              |   |   | — |         |   | 2,555  |    |   | 11,053 |   |   | 13,608 |   |
| Corporate Park Woodland   |   | 652                         |   |                          | 5,330  |                                     |    | 484                              |   |   | — |         |   | 652    |    |   | 5,814  |   |   | 6,466  |   |
| Dairy Ashford             |   | 226                         |   |                          | 1,211  |                                     |    | 98                               |   |   | — |         |   | 226    |    |   | 1,309  |   |   | 1,535  |   |
| Holly Hall                |   | 608                         |   |                          | 2,516  |                                     |    | 172                              |   |   | — |         |   | 608    |    |   | 2,688  |   |   | 3,296  |   |
| Interstate 10             |   | 208                         |   |                          | 3,700  |                                     |    | 417                              |   |   | — |         |   | 208    |    |   | 4,117  |   |   | 4,325  |   |
| Main Park                 |   | 1,328                       |   |                          | 2,721  |                                     |    | 485                              |   |   | — |         |   | 1,328  |    |   | 3,206  |   |   | 4,534  |   |
| Plaza Park                |   | 902                         |   |                          | 3,294  |                                     |    | 876                              |   |   | — |         |   | 902    |    |   | 4,170  |   |   | 5,072  |   |
| West Belt Plaza           |   | 568                         |   |                          | 2,165  |                                     |    | 529                              |   |   | — |         |   | 568    |    |   | 2,694  |   |   | 3,262  |   |
| Westgate                  |   | 672                         |   |                          | 2,776  |                                     |    | 418                              |   |   | — |         |   | 672    |    |   | 3,194  |   |   | 3,866  |   |
|                      |   | $                           | 9,439  |                          |   | $                                        | 41,074  |                             |   | $      | 5,459   |         |   | $      | — |   |   | $      | 9,439  |   |   | $ | 46,533  |   |   | $ | 55,972  |   |
| Office Properties:        |   |                        |   |                          |   |                                     |    |                             |   |   |    |         |   |   |    |   |   |   |   |   |   |
| 9101 LBJ Freeway          |   | $                           | 1,597  |                          |   | $                                        | 6,078   |                             |   | $      | 1,107   |         |   | $      | — |   |   | $      | 1,597  |   |   | $ | 7,185   |   |   | $ | 8,782   |   |
| Featherwood               |   | 368                         |   |                          | 2,591  |                                     |    | 482                              |   |   | — |         |   | 368    |    |   | 3,073  |   |   | 3,441  |   |
| Pima Norte                |   | 1,086                       |   |                          | 7,162  |                                     |    | 800                              |   |   | 517     |         |   | 1,086  |    |   | 8,479  |   |   | 9,565  |   |
| Royal Crest               |   | 509                         |   |                          | 1,355  |                                     |    | 172                              |   |   | — |         |   | 509    |    |   | 1,527  |   |   | 2,036  |   |
| Uptown Tower              |   | 1,621                       |   |                          | 15,551 |                                     |    | 2,560                            |   |   | — |         |   | 1,621  |    |   | 18,111 |   |   | 19,732 |   |
| Woodlake Plaza            |   | 1,107                       |   |                          | 4,426  |                                     |    | 983                              |   |   | — |         |   | 1,107  |    |   | 5,409  |   |   | 6,516  |   |
| Zeta Building             |   | 636                         |   |                          | 1,819  |                                     |    | 297                              |   |   | — |         |   | 636    |    |   | 2,116  |   |   | 2,752  |   |
|                      |   | $                           | 6,924  |                          |   | $                                        | 38,982  |                             |   | $      | 6,401   |         |   | $      | 517     |   |   | $      | 6,924  |   |   | $ | 45,900  |   |   | $ | 52,824  |   |
| Total Operating Portfolio |   | $                           | 34,238 |                          |   | $                                        | 138,665 |                             |   | $      | 22,624  |         |   | $      | 517     |   |   | $      | 34,238 |   |   | $ | 161,806 |   |   | $ | 196,044 |   |
|                      |   |                        |   |                          |   |                                     |    |                             |   |   |    |         |   |   |
| The Citadel               |   | $                           | 472    |                          |   | $                                        | 1,777   |                             |   | $      | 32      |         |   | $      | — |   |   | $      | 472    |   |   | $ | 1,809   |   |   | $ | 2,281   |   |
| Sunnyslope Village        |   | 1,305                       |   |                          | 5,324  |                                     |    | —                          |   |   | — |         |   | 1,305  |    |   | 5,324  |   |   | 6,629  |   |
|                      |   | $                           | 1,777  |                          |   | $                                        | 7,101   |                             |   | $      | 32      |         |   | $      | — |   |   | $      | 1,777  |   |   | $ | 7,133   |   |   | $ | 8,910   |   |
| Grand Totals              |   | $                           | 36,015 |                          |   | $                                        | 145,766 |                             |   | $      | 22,656  |         |   | $      | 517     |   |   | $      | 36,015 |   |   | $ | 168,939 |   |   | $ | 204,954 |   |

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Table of Contents

|                          |        |              |        |                          |        |              |           |          |            |              |            |            |
|--------------------------|--------|--------------|--------|--------------------------|--------|--------------|-----------|----------|------------|--------------|------------|------------|
|                     |   |         |   | Accumulated Depreciation |   | Date of      |      | Date     |       | Depreciation |
| Property Name            |   | Encumbrances |   | (in thousands)           |   | Construction |      | Acquired |       | Life         |
| Retail Properties:       |   |         |   |                     |   |         |      |     |       |         |
| Bellnot Square           |   |         |   | $                        | 1,161  |         |      |     |       | 1/1/2002     |       | 5-39 years |
| Bissonnet Beltway        |   |         |   | 1,029                    |   |         |      |     | 1/1/1999   |         | 5-39 years |
| Centre South             |   |         |   | 784                      |   |         |      |     | 1/1/2000   |         | 5-39 years |
| Greens Road              |   |         |   | 612                      |   |         |      |     | 1/1/1999   |         | 5-39 years |
| Holly Knight             |   | (3)          |   | 655                      |   |         |      |     | 8/1/2000   |         | 5-39 years |
| Kempwood Plaza           |   | (3)          |   | 1,187                    |   |         |      |     | 2/2/1999   |         | 5-39 years |
| Lion Square              |   | (3)          |   | 1,623                    |   |         |      |     | 1/1/2000   |         | 5-39 years |
| Providence               |   | (3)          |   | 1,258                    |   |         |      |     | 3/30/2001  |         | 5-39 years |
| Shaver                   |   |         |   | 239                      |   |         |      |     | 12/17/1999 |         | 5-39 years |
| South Richey             |   | (3)          |   | 896                      |   |         |      |     | 8/25/1999  |         | 5-39 years |
| Spoerlein Commons        |   |         |   | 379                      |   |         |      |     | 1/16/2009  |         | 5-39 years |
| SugarPark Plaza          |   | (3)          |   | 1,190                    |   |         |      |     | 9/8/2004   |         | 5-39 years |
| Sunridge                 |   | (3)          |   | 383                      |   |         |      |     | 1/1/2002   |         | 5-39 years |
| Torrey Square            |   | (3)          |   | 1,398                    |   |         |      |     | 1/1/2000   |         | 5-39 years |
| Town Park                |   | (3)          |   | 1,296                    |   |         |      |     | 1/1/1999   |         | 5-39 years |
| Webster Point            |   |         |   | 516                      |   |         |      |     | 1/1/2000   |         | 5-39 years |
| Westchase                |   |         |   | 719                      |   |         |      |     | 1/1/2002   |         | 5-39 years |
| Windsor Park             |   | (4)          |   | 1,906                    |   |         |      |     | 12/16/2003 |         | 5-39 years |
|                     |   |         |   | $                        | 17,231 |         |      |     |       |         |       |       |
| Office/Flex Properties:  |   |         |   |                     |   |         |      |     |       |         |
| Brookhill                |   | (5)          |   | $                        | 238    |         |      |     |       | 1/1/2002     |       | 5-39 years |
| Corporate Park Northwest |   |         |   | 1,950                    |   |         |      |     | 1/1/2002   |         | 5-39 years |
| Corporate Park West      |   | (6)          |   | 2,895                    |   |         |      |     | 1/1/2002   |         | 5-39 years |
| Corporate Park Woodland  |   | (7)          |   | 2,024                    |   |         | 11/1/2000 |     |       |         | 5-39 years |
| Dairy Ashford            |   |         |   | 471                      |   |         |      |     | 1/1/1999   |         | 5-39 years |
| Holly Hall               |   | (7)          |   | 664                      |   |         |      |     | 1/1/2002   |         | 5-39 years |
| Interstate 10            |   | (7)          |   | 1,839                    |   |         |      |     | 1/1/1999   |         | 5-39 years |
| Main Park                |   | (7)          |   | 1,071                    |   |         |      |     | 1/1/1999   |         | 5-39 years |
| Plaza Park               |   | (7)          |   | 1,350                    |   |         |      |     | 1/1/2000   |         | 5-39 years |
| West Belt Plaza          |   | (7)          |   | 1,125                    |   |         |      |     | 1/1/1999   |         | 5-39 years |
| Westgate                 |   | (7)          |   | 792                      |   |         |      |     | 1/1/2002   |         | 5-39 years |
|                     |   |         |   | $                        | 14,419 |         |      |     |       |         |       |       |
| Office Properties:       |   |         |   |                     |   |         |      |     |       |         |
| 9101 LBJ Freeway         |   | (8)          |   | $                        | 1,301  |         |      |     |       | 8/10/2005    |       | 5-39 years |
| Featherwood              |   |         |   | 481                      |   |         |      |     | 1/1/2000   |         | 5-39 years |
| Pima Norte               |   |         |   | 529                      |   |         |      |     | 10/4/2007  |         | 5-39 years |
| Royal Crest              |   |         |   | 1,008                    |   |         |      |     | 1/1/2000   |         | 5-39 years |
| Uptown Tower             |   | (8)          |   | 2,798                    |   |         |      |     | 11/22/2005 |         | 5-39 years |
| Woodlake Plaza           |   | (8)          |   | 1,048                    |   |         |      |     | 3/14/2005  |         | 5-39 years |
| Zeta Building            |   | (5)          |   | 707                      |   |         |      |     | 1/1/2000   |         | 5-39 years |
|                     |   |         |   | $                        | 7,872  |         |      |     |       |         |       |       |
| Total Operating Portflio |   |         |   | $                        | 39,522 |         |      |     |       |         |       |       |
|                     |   |         |   |                     |   |         |      |     |       |         |
| The Citadel              |   |         |   | $                        | 11     |         |      |     |       | 9/28/2010    |       | 5-39 years |
| Sunnyslope Village       |   |         |   | 23                       |   |         |      |     | 11/1/2010  |         | 5-39 years |
|                     |   |         |   | $                        | 34     |         |      |     |       |         |       |       |
| Grand Total              |   |         |   | $                        | 39,556 |         |      |     |       |         |       |       |

----

Table of Contents

|                                                  |        |                 |         |        |        |        |         |         |        |   |         |        |
|--------------------------------------------------|--------|-----------------|---------|--------|--------|--------|---------|---------|--------|---|---------|--------|
|                                             |   | ( in thousands) |
|                                             |   | 2010            |    | 2009   |   | 2008   |
| Balance at beginning of period                   |   | $               | 192,832 |   |   | $      | 180,397 |    |   | $ | 172,315 |   |
| Additions during the period:                     |   |            |    |   |   |   |    |    |   |
| Acquisitions                                     |   | 8,878           |    |   | 9,636  |   |    | — |   |
| Improvements                                     |   | 4,142           |    |   | 3,770  |   |    | 9,402   |   |
|                                             |   | 13,020          |    |   | 13,406 |   |    | 9,402   |   |
| Deductions - cost of real estate sold or retired |   | (898            | )       |   | (971   | )      |    | (1,320  | )      |
| Balance at close of period                       |   | $               | 204,954 |   |   | $      | 192,832 |    |   | $ | 180,397 |   |

----

Table of Contents

|             |             |
|-------------|-------------|
| Exhibit No. | Description |

|       |                                                                                                                                                                                                              |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1.1 | Amended and Restated Declaration of Trust 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 December 6, 2006) |

|       |                                                                                                                                                                |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1.3 | Articles of Amendment (previously filed 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 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 and incorporated by reference to Exhibit 3.3 to the Registrant’s Current Report on Form 8-K, filed on August 24, 2010) |

|     |                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2 | 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 October 9, 2008) |

|      |                                                                                                                                                                                                                                                               |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1 | Agreement of Limited Partnership of Whitestone REIT Operating Partnership, L.P. (previously filed as and incorporated by reference to Exhibit 10.1 to the Registrant’s General Form for Registration of Securities on Form 10, filed on April 30, 2003) |

|      |                                                                                                                                                                                                                                                            |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2 | Certificate of Formation of Whitestone REIT Operating Partnership II GP, LLC (previously filed as and incorporated by reference to Exhibit 10.3 to the Registrant’s General Form for Registration of Securities on Form 10, filed on April 30, 2003) |

|      |                                                                                                                                                                                                                                                                       |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.3 | Limited Liability Company Agreement of Whitestone REIT Operating Partnership II GP, LLC (previously filed as and incorporated by reference to Exhibit 10.4 to the Registrant’s General Form for Registration of Securities on Form 10, filed on April 30, 2003) |

|      |                                                                                                                                                                                                                                                                  |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.4 | Agreement of Limited Partnership of Whitestone REIT Operating Partnership II, L.P. (previously filed as and incorporated by reference to Exhibit 10.6 to the Registrant’s General Form for Registration of Securities on Form 10, filed on April 30, 2003) |

|      |                                                                                                                                                                                                                                                                                                        |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.5 | Form of Amendment to the Agreement of Limited Partnership of Whitestone REIT Operating Partnership, L.P. (previously filed in and incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-11, Commission File No. 333-111674, filed on December 31, 2003) |

|      |                                                                                                                                                                                                                                                                                       |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.6 | Promissory Note between HCP REIT Operating Company IV LLC and MidFirst Bank, dated March 1, 2007 (previously filed and incorporated by reference to Exhibit 10.25 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2006, filed on March 30, 2007) |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.7 | Term Loan Agreement among Whitestone REIT Operating Partnership, L.P., Whitestone Pima Norte LLC, Whitestone REIT Operating Partnership III LP, Hartman REIT Operating Partnership III LP LTD, Whitestone REIT Operating Partnership III GP LLC and KeyBank National Association, dated January 25, 2008 (previously filed as and incorporated by reference to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007, filed on March 31, 2008) |

|       |                                                                                                                                                                                                           |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.8+ | Whitestone REIT 2008 Long-Term Equity Incentive Ownership Plan (previously filed and incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed July 31, 2008) |

|      |                                                                                                                                                                                                                                              |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.9 | Promissory Note among Whitestone Corporate Park West, LLC and MidFirst Bank dated August 5, 2008 (previously filed and incorporated by reference to Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed August 8, 2008) |

----

Table of Contents

|             |             |
|-------------|-------------|
| Exhibit No. | Description |

|       |                                                                                                                                                                                                                                                          |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.10 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated October 1, 2008 (previously filed and incorporated by reference to Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed October 7, 2008) |

|       |                                                                                                                                                                                                                                                          |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.11 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated October 1, 2008 (previously filed and incorporated by reference to Exhibit 99.2 to the Registrant’s Current Report on Form 8-K, filed October 7, 2008) |

|       |                                                                                                                                                                                                                                                          |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.12 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated October 1, 2008 (previously filed and incorporated by reference to Exhibit 99.3 to the Registrant’s Current Report on Form 8-K, filed October 7, 2008) |

|       |                                                                                                                                                                                                                                                          |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.13 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated October 1, 2008 (previously filed and incorporated by reference to Exhibit 99.4 to the Registrant’s Current Report on Form 8-K, filed October 7, 2008) |

|       |                                                                                                                                                                                                                                                          |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.14 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated October 1, 2008 (previously filed and incorporated by reference to Exhibit 99.5 to the Registrant’s Current Report on Form 8-K, filed October 7, 2008) |

|       |                                                                                                                                                                                                                                                       |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15 | Promissory Note among Whitestone Offices LLC and Nationwide Life Insurance Company dated October 1, 2008 (previously filed and incorporated by reference to Exhibit 99.6 to the Registrant’s Current Report on Form 8-K, filed October 7, 2008) |

|       |                                                                                                                                                                                                                                                              |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.16 | Promissory Note among Whitestone Industrial-Office LLC and Jackson Life Insurance Company dated October 3, 2008 (previously filed and incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed October 9, 2008) |

|        |                                                                                                                                                                                                                   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.17+ | Form of Restricted Common Share Award Agreement (Performance Vested) (previously filed and incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed January 7, 2009) |

|        |                                                                                                                                                                                                            |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.18+ | Form of Restricted Common Share Award Agreement (Time Vested) (previously filed and incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K, filed January 7, 2009) |

|        |                                                                                                                                                                                      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.19+ | Form of Restricted Unit Award Agreement (previously filed and incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K, filed January 7, 2009) |

|       |                                                                                                                                                                                                                                                             |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.20 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated February 3, 2009 (previously filed and incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed February 10, 2009) |

|       |                                                                                                                                                                                                                                                             |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.21 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated February 3, 2009 (previously filed and incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K, filed February 10, 2009) |

|       |                                                                                                                                                                                                                                                             |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.22 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated February 3, 2009 (previously filed and incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K, filed February 10, 2009) |

|       |                                                                                                                                                                                                                                                             |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.23 | Promissory Note among Whitestone Centers LLC and Sun Life Assurance Company of Canada dated February 3, 2009 (previously filed and incorporated by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K, filed February 10, 2009) |

----

Table of Contents

|             |             |
|-------------|-------------|
| Exhibit No. | Description |

|       |                                                                                                                                                                                                                                                                                                                                            |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.24 | Purchase, Sale and Contribution Agreement between Whitestone REIT Operating Partnership, L.P. and Bank One, Chicago, NA, as trustee for Midwest Development Venture IV dated December 18, 2008 (previously filed and incorporated by reference to Exhibit 10.8 to Registrant’s Quarterly Report on Form 10-Q, filed on May 15, 2009) |

|        |                                                                                                                                                                                                                               |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.25+ | Grant Agreement for Restricted Shares between Whitestone REIT and Daryl J. Carter (previously filed and incorporated by reference to Exhibit 10.9 to Registrant’s Quarterly Report on Form 10-Q, filed on May 15, 2009) |

|        |                                                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.26+ | Grant Agreement for Restricted Shares between Whitestone REIT and Daniel G. DeVos (previously filed and incorporated by reference to Exhibit 10.10 to Registrant’s Quarterly Report on Form 10-Q, filed on May 15, 2009) |

|        |                                                                                                                                                                                                                                  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.27+ | Grant Agreement for Restricted Shares between Whitestone REIT and Donald F. Keating (previously filed and incorporated by reference to Exhibit 10.11 to Registrant’s Quarterly Report on Form 10-Q, filed on May 15, 2009) |

|              |                                                                                                                                                                                                                               |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.28+  | Grant Agreement for Restricted Shares between Whitestone REIT and Jack L.Mahaffey (previously filed and incorporated by reference to Exhibit 10.12 toRegistrant’s Quarterly Report on Form 10-Q, filed on May 15, 2009) |

|              |                                                                                                                                                                                                                              |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.29+  | Grant Agreement for Restricted Shares between Whitestone REIT and Chris A.Minton (previously filed and incorporated by reference to Exhibit 10.13 toRegistrant’s Quarterly Report on Form 10-Q, filed on May 15, 2009) |

|       |                                                                                                                                                                                                                                                             |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.30 | Promissory Note dated September 10, 2010 between Whitestone REIT Operating Company IV LLC and MidFirst Bank (previously filed and incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed September 16, 2010)  |

|       |                                                                                                                                                                                                                                                                             |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.31 | Modification of Promissory Note dated September 10, 2010 between Whitestone REIT Operating Company IV LLC and MidFirst Bank (previously filed and incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K, filed September 16, 2010)  |

|       |                                                                                                                                                                                                                                                               |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.32 | Limited Guarantee dated September 10, 2010 between Whitestone REIT Operating Company IV LLC and MidFirst Bank (previously filed and incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K, filed September 16, 2010)  |

|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| 10.33+* | First Amendment to the Whitestone REIT 2008 Long-Term Equity Incentive Ownership Plan |

|       |                                         |
|-------|-----------------------------------------|
| 21.1* | List of subsidiaries of Whitestone REIT |

|       |                                                |
|-------|------------------------------------------------|
| 23.1* | Consent of Pannell Kerr Forster of Texas, P.C. |

|      |                                                            |
|------|------------------------------------------------------------|
| 24.1 | Power of Attorney (included on the Signatures page hereto) |

|       |                                                                                                        |
|-------|--------------------------------------------------------------------------------------------------------|
| 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 |

----

Table of Contents

|             |             |
|-------------|-------------|
| Exhibit No. | Description |

|       |                                                                                                  |
|-------|--------------------------------------------------------------------------------------------------|
| 32.2* | Certificate of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |