Whitestone REIT (NYSE:WSR) (“Whitestone” or the “Company”) today
announced the acquisition of Scottsdale Commons in Scottsdale,
Arizona for $22.2 million. Scottsdale Commons sits on the second
most trafficked intersection in Scottsdale and acts as a gateway
linking North Scottsdale and Paradise Valley. The 69,000 square
foot center is 96.6% occupied with 20 tenants including Rosati’s
Chicago Pizza, specialty butcher Rusty Nail Meats, U.S. Egg, winner
of Phoenix Magazines 2023 Best Breakfast Award, pet care service
provider Companion Pet Partners and BevMo which serve a surrounding
community with a 3-mile average household income of $138k.
“Whitestone has the perfect opportunity to
leverage our leasing and operations skills in order to drive
performance at Scottsdale Commons,” said Whitestone REIT COO,
Christine Mastandrea. “We have a great team and a strong presence
in the Scottsdale market. This acquisition is accretive on day one
and we believe our team can add significant additional value.”
The acquisition is funded through Whitestone’s
capital recycling program, which is intended to improve the overall
quality of its portfolio through targeted dispositions and the
acquisition of greater long-term value properties. The program
began in 2022, is intended to match disposition proceeds with
acquisition funding amounts, and now totals over $100 million in
acquisitions with an annual base rent of approximately $27 per
square foot and combined capitalization rate of 7.1% based on
actual or projected year one NOI. The properties sold to date have
an annual base rent per square foot of approximately $18 and were
sold at an aggregate capitalization rate of 6.2%, based on trailing
twelve-month NOI.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a
community-centered real estate investment trust (REIT) that
acquires, owns, operates, and develops open-air, retail centers
located in some of the fastest growing markets in the country:
Phoenix, Austin, Dallas-Fort Worth, Houston and San
Antonio.
Our centers are convenience focused:
merchandised with a mix of service-oriented tenants providing food
(restaurants and grocers), self-care (health and fitness), services
(financial and logistics), education and entertainment to the
surrounding communities. The Company believes its strong community
connections and deep tenant relationships are key to the success of
its current centers and its acquisition strategy. For additional
information, please visit the Company's investor relations
website.
Forward-Looking Statements
This Report contains forward-looking statements
within the meaning of the federal securities laws, including
discussion and analysis of our financial condition and results of
operations, statements related to our expectations regarding the
performance of our business, and other matters. These
forward-looking statements are not historical facts but are the
intent, belief or current expectations of our management based on
its knowledge and understanding of our business and industry.
Forward-looking statements are typically identified by the use of
terms such as “may,” “will,” “should,” “potential,” “predicts,”
“anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,”
“estimates” or the negative of such terms and variations of these
words and similar expressions, although not all forward-looking
statements include these words. These statements are not guarantees
of future performance and are subject to risks, uncertainties and
other factors, some of which are beyond our control, are difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking
statements.
Factors that could cause actual results to
differ materially from any forward-looking statements made in this
Report include: the imposition of federal income taxes if we fail
to qualify as a real estate investment trust (“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 or conditions in Texas
or Arizona, Houston and Phoenix in particular, including the
potential impact of public health emergencies, such as COVID-19, on
our tenants’ ability to pay their rent, which could result in bad
debt allowances or straight-line rent reserve adjustments;
increases in interest rates, including as a result of
inflation operating costs or general and administrative
expenses; our current geographic concentration in the Houston and
Phoenix metropolitan area makes us susceptible to local economic
downturns and natural disasters, such as floods and hurricanes,
which may increase as a result of climate change, increasing focus
by stakeholders on environmental, social, and governance matters,
financial institution disruption; availability and terms of
capital and financing, both to fund our operations and to refinance
our indebtedness as it matures; decreases in rental rates or
increases in vacancy rates; harm to our reputation, ability to do
business and results of operations as a result of improper conduct
by our employees, agents or business partners; litigation risks;
lease-up risks, including leasing risks arising from exclusivity
and consent provisions in leases with significant tenants; our
inability to renew tenant leases or obtain new tenant leases upon
the expiration of existing leases; risks related to generative
artificial intelligence tools and language models, along with the
potential interpretations and conclusions they might make regarding
our business and prospects, particularly concerning the spread of
misinformation; our inability to generate sufficient cash flows due
to market conditions, competition, uninsured losses, changes in tax
or other applicable laws; geopolitical conflicts, such as the
ongoing conflict between Russia and Ukraine, the conflict in the
Gaza Strip and unrest in the Middle East; the need to fund tenant
improvements or other capital expenditures out of operating cash
flow; the extent to which our estimates regarding Pillarstone REIT
Operating Partnership LP's financial condition and results of
operations differ from actual results; and the risk that we
are unable to raise capital for working capital, acquisitions or
other uses on attractive terms or at all 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.
Non-GAAP Financial Measures
This release contains supplemental financial measures that
are not calculated pursuant to U.S. generally accepted accounting
principles (“GAAP”) including EBITDAre, FFO, NOI and net debt.
Following are explanations and reconciliations of these metrics to
their most comparable GAAP metric.
NOI: Net Operating Income: Management
believes that NOI is a useful measure of our property operating
performance. We define NOI as operating revenues (rental and other
revenues) less property and related expenses (property operation
and maintenance and real estate taxes). Other REITs may use
different methodologies for calculating NOI and, accordingly, our
NOI may not be comparable to other REITs. Because NOI excludes
general and administrative expenses, depreciation and amortization,
equity or deficit in earnings of real estate partnership, interest
expense, interest, dividend and other investment income, provision
for income taxes, gain on sale of property from discontinued
operations, management fee (net of related expenses)
and gain or loss on sale or disposition of assets, and
includes NOI of real estate partnership (pro rata) and net
income attributable to noncontrolling interest, it provides a
performance measure that, when compared year-over-year, reflects
the revenues and expenses directly associated with owning and
operating commercial real estate properties and the impact to
operations from trends in occupancy rates, rental rates and
operating costs, providing perspective not immediately apparent
from net income. We use NOI to evaluate our operating performance
since NOI allows us to evaluate the impact that factors such as
occupancy levels, lease structure, lease rates and tenant base have
on our results, margins and returns. In addition, management
believes that NOI provides useful information to the investment
community about our property and operating performance when
compared to other REITs since NOI is generally recognized as a
standard measure of property performance in the real estate
industry. However, NOI should not be viewed as a measure of our
overall financial performance since it does not reflect the level
of capital expenditure and leasing costs necessary to maintain the
operating performance of our properties, including general and
administrative expenses, depreciation and amortization, equity or
deficit in earnings of real estate partnership, interest expense,
interest, dividend and other investment income, provision for
income taxes, gain on sale of property from discontinued
operations, management fee (net of related expenses) and gain or
loss on sale or disposition of assets.
Investor and Media Contact:
David MordyDirector, Investor
RelationsWhitestone REIT(713) 435-2219ir@whitestonereit.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/508bd724-1bc3-48a6-8d77-b02d360212d3
Whitestone REIT (NYSE:WSR)
過去 株価チャート
から 4 2024 まで 5 2024
Whitestone REIT (NYSE:WSR)
過去 株価チャート
から 5 2023 まで 5 2024