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 fourth quarter ended December 31, 2012. The physical occupancy
of its Operating Portfolio1 which excludes new acquisitions,
and properties which are undergoing significant redevelopment or
re-tenanting, was 87% as of December 31, 2012, unchanged from the prior
quarter and previous year. The Company’s total occupancy was 85% as of
the end of the current quarter, a 1% increase over the year-ago quarter
ended December 31, 2011.
Whitestone’s acquisition and leasing strategies are interdependent to
its growth. The acquisition team closed $108 million in new acquisitions
in 2012, approximately 500,000 square feet with an average occupancy of
70%. The leasing team signed 78 leases totaling 192,376 square feet
(“sf”) in new, expansion, and renewal leases during the fourth quarter,
adding 41 new tenants to its roster of primarily small entrepreneurial
retail service business tenants. Whitestone currently has about 1,065
total tenants, an increase of 17% since December 31, 2011, of which 70%
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 continue to make progress as our small space business model sets us
apart in the retail REIT space and delivers positive results. Small
business has an impact on the economy and is enhancing efficiencies by
localizing in communities. The number of our tenants is increasing, the
size of our tenants leased space is becoming relatively smaller, and the
rental rate for smaller spaces is relatively higher, and our base
revenue is growing. The average lease size in 2012 was 2,121 square feet
compared to 2,555 square feet in 2011. The total lease value of new and
renewal leases in 2012 was $35.2 million, versus $32.3 million in 2011,
an increase of 9%,” said James C. Mastandrea, Whitestone’s Chairman and
Chief Executive Officer. “Our tenants are entrepreneurs in
service-oriented businesses that target the immediate neighborhood
surrounding our Community Centers. New acquisitions provide
inventory—properties with lower occupancies—to lease and grow our
overall occupancies, thus increasing revenue, net operating income and
net asset value. Our leasing results and continued strong occupancy for
the quarter are consistent with recent national survey data that
indicates small business owners are extremely optimistic about the
growth of their businesses in 2013, and expect their sales and finances
to improve.3”
Leasing Highlights
Whitestone’s Community Centered Property business model is focused on
leasing smaller spaces (less than 3,000 square feet “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:
Pima Norte Garden Office – Carefree: Three
leases were signed in this garden office Community Center, ranging from
295 sf to 768 sf.
Dana Park – Mesa: Two leases were signed in
this new urban lifestyle community center, ranging from 3,384 sf to
4,893 sf.
The Pinnacle of Scottsdale – Scottsdale:
Five leases were signed in this North Scottsdale Community Center,
including two expansion leases, ranging from 2,604 sf to 6,045 sf.
Texas/Illinois Region:
Corporate Park Northwest – Houston:
Fourteen leases totaling 15,990 sf were signed in this entrepreneurial
small business incubator themed Community Center, for service-oriented
tenants in small spaces ranging from 623 sf to 2,796 sf.
Corporate Park West – Houston: Nine new
leases totaling 33,058 sf were signed in this Katy-area service Center,
including an 11,010 sf expansion for a technology services firm.
Main Park – Houston: Two new leases
totaling 17,760 sf were signed in this Community Center, located in the
Texas Medical Center area ranging from 6,873 sf to 10,887 sf.
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 (sold in
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.
2Development Portfolio – includes new acquisitions
and 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.
3 SOURCE: Bank of America Small
Business Owner ReportNovember 2012
Whitestone REIT
Anne Gregory, 713-435-2213
Vice
President Marketing & Investor Relations
agregory@whitestonereit.com
Source: Whitestone REIT