Small Tenant Leases Drive Occupancy Increase of 1% to 87% versus
Fourth Quarter 2010
HOUSTON--(BUSINESS WIRE)--
Whitestone REIT (NYSE-Amex: WSR) (“Whitestone”), a real estate
investment trust that acquires, owns and operates Community Centered
PropertiesTM, today reported occupancy and leasing highlights
for the fourth quarter, ended December 31, 2011. The physical occupancy
of its Operating Portfolio1 was 87% as of December 31, 2011,
a one percent increase over the prior year ended December 31, 2010 and
prior quarter ended September 30, 2011. The Company’s total occupancy
including all centers was 84% as of the end of the current quarter,
unchanged from September 30, 2011.
Whitestone’s leasing team signed 88 leases totaling 161,000 square feet
in new and renewal leases during the fourth quarter, and currently has
over 900 total tenants, of which 72% lease less than 3,000 square feet
in multi-cultural neighborhoods.
“We continue to increase the quality of our tenant base, which is
primarily comprised of entrepreneurs and small business owners that
provide service to residents in the neighboring community within a five
mile radius from each of our 43 Community Centers,” said James C.
Mastandrea, Whitestone’s Chairman and CEO. Mastandrea added: “Our
business model is specifically directed toward small tenants because we
are able to achieve rental premiums, maintain flexibility and lower
tenant improvement costs within our lease space, and minimize our
downside risk as no single tenant can impact our revenues by more than
2%.” Mastandrea concluded, “Our small tenant business model has been
very successful in our Texas/Illinois Region and we recently have
successfully transitioned and expanded it to our Arizona Region. Most
important to the success of our operating model are our Whitestone
Associates, who comprise our internal leasing and management services
teams.”
Leasing Highlights
Arizona Region:
Terravita – Scottsdale:Bedmart signed an expansion and renewal
lease for 4,000 square feet; UPS signed a renewal for 1,430 square feet
in this seniors-at-home focused Community Center.
Gilbert Tuscany – Gilbert: In this family-themed Community
Center, Crossfit signed a new lease for 3,131 square feet.
Citadel – Scottsdale: Three new small tenant leases were signed
at this boutique-themed Community Center totaling 1,839 square feet:
Rebecca by Design for 470 square feet, Headquarters West for 707 square
feet and Manzano Construction for 662 square feet.
Desert Canyon – Scottsdale: Four new small tenant leases totaling
2,790 square feet were signed in this Community Center targeting the
surrounding young family demographic: Reese Industries for 398 square
feet, Red Brick Mortgage for 298 square feet, Greg Kar for 294 square
feet and Unity Chess Club for 1,800 square foot. Three renewals were
signed totaling 3,580 square feet: Star Cleaners for 2,100 square feet,
Mother Goose Adoption for 1,200 square feet, Richard O’Shaugnessy for
280 square feet.
Texas/Illinois Region:
Corporate Park Northwest – Houston: In this small business
incubator themed Community Centre business park, six new leases were
signed totaling 7,032 square feet. Tenants include Durham Publication
and Axistrade.
Corporate Park West – Houston: Three new leases for a total of
14,715 square feet were signed, including Bozenna Nyk, an art and
framing studio and The Luu Group, an engineering firm.
Windsor Park Centre—San Antonio:University of Phoenix signed a
new expansion lease, adding 3,581 square feet adjacent to its existing
Windsor Park Learning Center; SKECHERS USA signed a 10,000 square feet
lease for a new outlet store, scheduled to open for business in the
spring of 2012.
South Richey – Houston: Bravo Ranch Supermercado signed a lease
for 42,130 square feet of space for a new Hispanic themed grocery store,
which plans to open for business in spring 2012 in the space formerly
occupied by Kroger, which left the Center at the end of its lease in
February 2011. Whitestone REIT announced a major renovation project at
South Richey to transform it into a Hispanic-themed Community Center.
Lion Square – Houston: Teletron, a Vietnamese electronics store
based in Los Angeles, celebrated its Grand Opening and market entry in
Houston in December with a series of events including Lion Dances,
giveaways, and a free live concert. Whitestone REIT commenced the
redevelopment and transformation plan for Lion Square Center that
includes a new façade for the entire Center, as well as new
architectural and landscaping features to enhance the
internationally-themed culture within the Center.
About Whitestone REIT
Whitestone REIT 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 square feet).
Whitestone has a diversified tenant base concentrated on service
offerings such as medical, education, and casual dining. The largest of
its over 900 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. 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, 713-435-2219
Vice
President Marketing & Investor Relations
agregory@whitestonereit.com
Source: Whitestone REIT