HOUSTON--(BUSINESS WIRE)--
Whitestone REIT (NYSE: WSR – “Whitestone” or the “Company”), a real
estate investment trust which operates Community Centered PropertiesTM,
today announced that it launched four property redevelopment and
repositioning programs in its Houston, Texas, region.
Whitestone intends to reposition existing properties and capitalize on
market demand resulting in increased rental rates from new tenants and
adding value for existing tenants. At a $60 per square foot cost basis
(undepreciated), and a strong local economy our Houston portfolio is
well-positioned for significant redevelopment opportunities. The
Company’s value-add business model and its rebranding strategies
primarily target tenants which provide needed services to the
surrounding communities. We believe these efforts will result in
strengthened overall property revenues, increasing net operating income,
return on investment, and funds from operations per share.
The Houston properties being repositioned, redeveloped, and rebranded
are:
- Woodlake Plaza, a 106,000 square foot community office building
located near the Westchase District;
- Main Park, a 113,000 square foot community center located near Reliant
Stadium and the Texas Medical Center, targeting medical labs,
- Lion Square, a 118,000 square foot retail community center located in
the Asian district in southwest Houston; and,
- Torrey Square, a 106,000 square foot retail center located in one of
the predominately Latino districts in north Houston.
"The four properties selected for redevelopment have the potential to
produce exceptional returns on our modest capital investment in the near
term,” said James C. Mastandrea, Whitestone’s Chairman and CEO.
Mastandrea continued: “Considering their low cost basis and advantageous
locations, these properties have significant intrinsic value, and should
benefit from Houston’s vibrant economy.” Mastandrea added: “We intend to
grow our enterprise value and leverage our team’s unique skills by
timing our value-add activities with the opportunities resulting from
the real estate cycles in our markets.” Mastandrea concluded, “To
further drive value, over the coming quarters, we expect to balance
additional redevelopment efforts to extract intrinsic value in our
properties with acquisitions of off-market properties to enhance returns
to our shareholders.”
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a fully integrated real estate investment
trust ("REIT") that owns, operates and redevelops Community Centered
PropertiesTM. Whitestone focuses on value creation in its
community centers, concentrating on local service-oriented, smaller
space tenants (less than 3,000 square feet). Whitestone has a
diversified tenant base concentrated on service offerings including
medical, education, casual dining, and convenience services. The largest
of its approximately 1,200 tenants comprised less than 1.6% of its
annualized base rental revenues as of June 30, 2013. Founded in 1998,
the Company is internally managed with a portfolio of commercial
properties in Texas, Arizona, and Illinois. For additional information
about the Company, please visit www.whitestonereit.com
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:
Suzy Taylor, 713-435-2219
Director of
Investor Relations
STaylor@WhitestoneREIT.com
Source: Whitestone REIT