HOUSTON, Dec. 01, 2016 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR ) (“Whitestone” or the “Company”) announced the continuation of its strategy to divest non-core legacy assets with the sale of Centre South and Webster Point, two legacy properties located Southeast of the greater Houston area. James C. Mastandrea, Chairman of the Board of Trustees and Chief Executive Officer of Whitestone said, “Today’s transaction brings us one step closer to making Whitestone a leading pure play retail REIT with a focused Ecommerce resistant business model.” The Company sold the properties for $4.9 million, resulting in net proceeds of $2.9 million after seller financing and transaction costs, which equates to a 7% capitalization rate on trailing twelve-month net operating income for the two properties. Mr. Mastandrea added, “The attractive return on the sold properties provides Whitestone with further opportunities to reinvest our shareholders’ capital into higher growth, high quality Ecommerce resistant retail properties in our core markets.”
As part of the transaction, Whitestone provided $1.7 million in short term seller financing secured by the properties and a third-party guarantee. The Company expects to record a $2.1 million gain on the sale, with $0.4 million recognized in 4Q’2016 and the balance at maturity upon receipt of principal payments on the 3-year seller financing loan.
Mastandrea added, “Superior valuation and shareholder returns are earned with focus, consistent execution, clarity of vision and determination to lead and deliver value for all of our stakeholders. This operating ethos underpins today’s transaction and our steadfast transformation of Whitestone to a significantly more valuable pure play retail REIT.” The two properties were part of the legacy portfolio when the current management team assumed control in late 2006. The properties were identified for sale as they did not fit Whitestone’s unique Ecommerce-resistant business model nor do they have cost-effective redevelopment potential to fit Whitestone’s business model. Including today’s sale, Whitestone has sold seven non-core properties and expects to complete the sale of its remaining non-core assets by year-end 2016.
About Whitestone REIT Whitestone REIT (NYSE: WSR ) is a fully integrated real estate investment trust (“REIT”) that acquires, owns, manages, develops and redevelops high quality Ecommerce-resistant neighborhood, community and lifestyle retail centers. Whitestone’s 69 properties, covering approximately 6.0 million square feet are located in business-friendly Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio, which are among the fastest-growing US population centers with highly educated workforces, high household incomes and strong job growth. Since the IPO in May 2011, Whitestone’s strategy to target shifting consumer behavior and purchasing patterns by partnering with national, regional and local tenants to provide daily necessities, needed services and convenience that is not readily available online has delivered 25 consecutive quarters of year-over-year FFO growth, 24 consecutive quarters of revenue and NOI growth and, uninterrupted dividends, paid every month since August 2010. Visit www.whitestonereit.com for additional information.
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 Contact: Marek Ciszewski, J.D. Director of Investor Relations M: (713) 203-1757 mciszewski@whitestonereit.com
