Whitestone Announces Non-Core Asset Sales of $39.7 Million
October 14 2019 - 7:00AM
Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”)
continues to execute its strategic plan with the closing on the
sale of three Houston non-core properties owned in a joint venture
for a total sale price of $39.7 million. The sale represents a
capitalization rate of 6.8% on trailing twelve month net operating
income and the company expects to record a gain on sale of
approximately $14 million in the fourth quarter, and net proceeds
received were $12.3 million, after closing costs and repayment of
debt. Whitestone expects to receive an $11 million cash
distribution from its stake in the joint venture as a result of the
sale, and will recycle the capital to invest in existing assets
including developments and redevelopments.
Jim Mastandrea, Chairman and Chief Executive Officer, commented,
“We are pleased to announce the profitable sale of these non-core
assets at a significant premium to our acquisition price.”
Mr. Mastandrea added, “Our experienced team continues to focus
on market cycles to timely invest in our existing assets to extract
embedded value and create meaningful long-term value for our
shareholders.”
The sale of these non-core properties is consistent with
Whitestone’s publicly stated long-term goals to strategically focus
on retail “e-commerce resistant” tenants, reduce leverage, and
scale to reduce general and administrative expenses.
About Whitestone REITWhitestone is a
community-centered retail REIT that acquires, owns, manages,
develops and redevelops high quality "e-commerce resistant"
neighborhood, community and lifestyle retail centers principally
located in the largest, fastest-growing and most affluent markets
in the Sunbelt. Whitestone’s optimal mix of national, regional and
local tenants provides daily necessities, needed services and
entertainment to the communities in which they are located.
Whitestone's properties are primarily located in business-friendly
Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio, which
are among the fastest growing U.S. population centers with highly
educated workforces, high household incomes and strong job growth.
For additional information, please visit
www.whitestonereit.com.
Forward-Looking StatementsCertain statements
contained in this press release constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended (the “Securities Act”) and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The Company intends for all such forward-looking statements to be
covered by the safe-harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act and
Section 21E of the Exchange Act, as applicable. Such information is
subject to certain risks and uncertainties, as well as known and
unknown risks, which could cause actual results to differ
materially from those projected or anticipated. Therefore, such
statements are not intended to be a guarantee of our performance in
future periods. Such forward-looking statements can generally be
identified by the Company's use of forward-looking terminology,
such as “may,” “will,” “plan,” “expect,” “intend,” “anticipate,”
“believe,” “continue,” “goals” or similar words or phrases that are
predictions of future events or trends and which do not relate
solely to historical matters.
The following are some of the factors that could cause the
Company's actual results and its expectations to differ materially
from those described in the Company's forward-looking statements:
the Company's ability to meet its long-term goals, its assumptions
regarding its earnings guidance, including its ability to execute
effectively its acquisition and disposition strategy, to continue
to execute its development pipeline on schedule and at the expected
costs, and its ability to grow its NOI as expected, which could be
impacted by a number of factors, including, among other things, its
ability to continue to renew leases or re-let space on attractive
terms and to otherwise address its leasing rollover; its ability to
successfully identify, finance and consummate suitable
acquisitions, and the impact of such acquisitions, including
financing developments, capitalization rates and internal rates of
return; the Company’s ability to reduce or otherwise effectively
manage its general and administrative expenses; the Company’s
ability to fund from cash flows or otherwise distributions to its
shareholders at current rates or at all; current adverse market and
economic conditions; lease terminations or lease defaults; the
impact of competition on the Company's efforts to renew existing
leases; changes in the economies and other conditions of the
specific markets in which the Company operates; economic,
legislative and regulatory changes, the success of the Company's
real estate strategies and investment objectives; litigation risks;
the Company's ability to continue to qualify as a REIT under the
Internal Revenue Code of 1986, as amended; and other factors
detailed in the Company's most recent Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other documents the Company
files with the Securities and Exchange Commission from time to
time.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company cannot guarantee the accuracy of any
such forward-looking statements contained in this press release,
and the Company does not intend to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact Whitestone REIT:Kevin ReedDirector of
Investor Relations(713) 435-2219ir@whitestonereit.com
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