Occupancy Up 1% Q3 2012 Versus Q3 2011
HOUSTON--(BUSINESS WIRE)--
Whitestone REIT (NYSE:WSR – “Whitestone”), a real estate
investment trust that acquires, owns and operates Community Centered
PropertiesTM, today reported occupancy and leasing highlights
for the third quarter ended September 30, 2012. The physical occupancy
of its Operating Portfolio1 was 87% as of September 30, 2012,
reflecting a 1% increase over the year-ago third quarter ended September
30, 2011 and unchanged from the prior quarter ended June 30, 2012. The
Company’s total occupancy was 85% as of the end of the current quarter,
a 1% increase over the year-ago quarter ended September 30, 2011.
Whitestone’s leasing team signed 63 leases totaling 143,922 square feet
(“sf”) in new and renewal leases during the third quarter, and added 39
new tenants to its roster of primarily small entrepreneurial retail
service business tenants. Whitestone currently has over 1,050 total
tenants, an increase of 26% since June 30, 2011, of which 71% lease
space that is less than 3,000 sf, provide retail services as opposed to
goods to the surrounding community, and are located in multi-cultural
neighborhoods.
“We are pleased with our progress with the addition of new small space
service oriented tenants, as we continue to build on our business plan
and add value for our shareholders through acquiring, owning and
operating Community Centered Properties. Our value-add approach to
increase net asset value (NAV) per share includes lease-up and
repositioning of our Centers to increase revenues, and expanding our
lease capacity by increasing new lease space in existing facilities,
reducing our expenses, realigning economies of scale from our vertical
infrastructure, and initiating development projects on land acquired
along with new acquisitions and existing land owned,” said James C.
Mastandrea, Whitestone’s Chairman and Chief Executive Officer. “During
the third quarter we achieved a milestone in diversifying our portfolio
beyond Texas and Illinois: we now own over one million square feet of
lease space in the Greater Phoenix market, including the two most recent
value-add acquisitions completed during the third quarter, both of which
were purchased at a significant discount to replacement value in
off-market transactions.”
Leasing Highlights
Whitestone’s Community Centered Property business model is focused on
leasing smaller spaces (less than 3,000 sf) to entrepreneurial small
business owners who provide retail services to their surrounding
neighborhood. The following leases completed during the quarter are
provided as examples to illustrate the types of tenants and the tenant
mix that Drives Traffic, Driving ValueTM to
Whitestone’s Community Centers:
Arizona Region:
The Citadel – Scottsdale: Healthy Smiles
Dentistry signed a new 2,486 sf lease in this zen-like boutique
Community Center in the North Scottsdale market, where two new
restaurants plan to celebrate grand openings during the fourth quarter
2012: BiCE Ristaurante and Emily’s Café.
Desert Canyon – Scottsdale: Five new and
renewal small office space leases totaling 1,302 sf were signed in this
Community Center targeting the surrounding young family demographic. The
spaces range from 176 sf to 380 sf, and include new leases for a wealth
management firm and a photographer.
Gilbert Tuscany – Gilbert: Four new and
expansion leases were signed totaling 9,564 sf in this family-themed
Community Center in the growing Phoenix East Valley market. Three new
tenants signed during the quarter include Actors Youth Theater, State
Farm Insurance and C’ZON’s Gift Shop.
Texas/Illinois Region:
Kempwood Plaza – Houston: Three new and
renewal leases were signed in this Hispanic-themed Center, totaling
8,396 sf, including a new 2,000 sf lease for a sporting goods retailer.
Westbelt Plaza – Houston: Three new leases
totaling 5,408 sf were signed in this West Houston business Center,
ranging from 1,436 sf to 2,002 sf. New tenants include an oilfield
services firm and an educational services provider.
Corporate Park Northwest – Houston: Seven
new and expansion leases totaling 11,274 sf were signed in this
entrepreneurial small business incubator themed Community Center,
including over 9,000 sf of new leases. All were for small spaces ranging
from 720 sf to 2,796 sf for service-oriented tenants.
Torrey Square – Houston: Two new leases
were signed in this Hispanic-themed Center, including a new 25,632 sf
lease for a national credit family apparel and home goods retailer that
is replacing a dollar store retailer, and a new 960 sf lease for an
HerbaLife distributor.
About Whitestone REIT
Whitestone REIT (NYSE:WSR) is a fully integrated real estate company
that owns, operates and re-develops Community Centered PropertiesTM,
which are visibly located properties in established or developing
culturally diverse neighborhoods. Whitestone focuses on value-creation
in its Centers as it markets, leases and manages its Centers to match
tenants with the shared needs of surrounding neighborhoods. Operations
are structured for providing cost-effective service to local
service-oriented smaller space tenants (less than 3,000 sf). Whitestone
has a diverse tenant base concentrated on service offerings such as
medical, education, and casual dining. The largest of its over 1,050
tenants comprises less than 2% of its rental revenues. Headquartered in
Houston, Texas and founded in 1998, the Company is internally managed
with a portfolio of commercial Centers in Texas, Arizona and Illinois.
Whitestone’s portfolio at the time it completed its Initial Public
Offering (“IPO”) in August 2010 was comprised of 36 Community Centers
including one in Arizona, one in Illinois, and 34 in Texas. One
property, Greens Road in Houston, has been sold since the IPO (April
2012). Whitestone currently owns 51 Community Centers, including three
development sites: 14 in Arizona, one in Illinois, and 36 in Texas. For
additional information about the Company, please visit www.whitestonereit.com.
The investor section of the Company’s website has links to SEC filings,
news releases, financial reports and investor newsletters.
1Operating Portfolio – excludes new acquisitions
through the earlier of (1) attainment of 90% occupancy or 18 months of
ownership and (2) properties which are undergoing significant
redevelopment or re-tenanting.
Forward-Looking Statements
Statements included herein that state the Company’s or management’s
intentions, hopes, beliefs, expectations or predictions of the future
are “forward-looking” statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which by their nature, involve
known and unknown risks and uncertainties. The Company’s actual results,
performance or achievements could differ materially from those expressed
or implied by these statements. Reference is made to the Company’s
regulatory filings with the Securities and Exchange Commission for
information or factors that may impact the Company’s performance.
Whitestone REIT
Anne Gregory, (713) 435 2221
Vice
President Marketing & Investor Relations
ir@whitestonereit.com
Source: Whitestone REIT