Enters into an Agreement with Prudential Capital
Group for $100 Million of Senior Unsecured Notes
Whitestone REIT (NYSE: WSR) (the “Company” or “Whitestone”) and its
operating partnership, Whitestone REIT Operating Partnership, L.P.,
today announced it has entered into a Note Purchase and Guarantee
Agreement (the “Note Agreement”) with Prudential Capital Group, the
private capital arm of PGIM, the $1 trillion global investment
management business of Prudential Financial, Inc. (NYSE: PRU). The
note agreement provides for the issuance and sale of $100 million
of senior unsecured notes of the Operating Partnership, of which:
- $50 million are designated as 5.09% Series A Senior Notes due
March 22, 2029
- $50 million are designated as 5.17% Series B Senior Notes due
March 22, 2029, (together with the Series A Senior Notes, the
“Notes”)
Obligations under the Notes are unconditionally guaranteed by
the Company and certain subsidiaries.
Whitestone Chairman and CEO Jim Mastandrea stated, "We are very
pleased to announce our inaugural issuance of senior unsecured
notes. This transaction represents another successful step in
Whitestone's long-term balance sheet strategy. The private
placement allows us to further ladder our debt maturities, lock in
fixed interest rates on an additional $100 million of our debt,
provides additional balance sheet flexibility and represents
further institutional validation of our e-commerce resistant
model.” Mr. Mastandrea added, “We are excited to partner up with
Prudential Capital Group, an elite global financial services
institution, and pleased that they recognized our commitment to
long term value creation.”
The principal of the Series A Notes will begin to amortize on
March 22, 2023 with annual principal payments of approximately $7.1
million. The principal of the Series B Notes will begin to amortize
on March 22, 2025 with annual principal payments of $10.0 million.
The Notes will pay interest quarterly on the 22nd day of March,
June, September and December in each year until maturity.
Net proceeds from the Private Placement were used to pay down
existing indebtedness. For additional details, please refer the
Form 8-K that was filed with the Securities and Exchange Commission
on March 28, 2019.
About Whitestone REIT
Whitestone is a community-centered retail REIT that acquires,
owns, manages, develops and redevelops high quality "e-commerce
resistant" neighborhood, community and lifestyle retail centers
principally located in the largest, fastest-growing and most
affluent markets in the Sunbelt. Whitestone’s optimal mix of
national, regional and local tenants provides daily necessities,
needed services and entertainment to the communities in which they
are located. Whitestone's properties are primarily located in
business-friendly Phoenix, Austin, Dallas-Fort Worth, Houston and
San Antonio, which are among the fastest growing U.S. population
centers with highly educated workforces, high household incomes and
strong job growth. Whitestone’s forward-thinking business model has
produced industry leading compound annual growth rates in excess of
15% in revenues, property net operating income, funds from
operations and net income since its IPO in 2010. As of March 31,
2019, Whitestone's total shareholder return ranks #3 of 17, #1 of
17, and #7 of 16, of the U.S. public shopping center REITs for the
one-year, three-year, and five-year periods, respectively.(1) For
additional information, visit www.whitestonereit.com.
About Prudential Capital Group
Prudential Capital Group has been a leading provider of private
placements, mezzanine debt and equity to companies for more than 75
years. Managing a portfolio of more than $83 billion as of December
31, 2018, Prudential Capital offers senior debt, mezzanine
financing, leveraged leases, project financing, credit tenant
leases as well as asset financing to companies, worldwide. The
global regional office network has locations in Atlanta, Chicago,
Dallas, Frankfurt, London, Los Angeles, Mexico City*, Milan,
Minneapolis, Newark, New York, Paris, San Francisco and Sydney**.
For more information, please visit prudentialcapitalgroup.com.
*Operates through PGIM Real Estate Mexico S.C.
**Operates through PGIM (Australia) Pty Ltd.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”) and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). The Company intends for all such forward-looking
statements to be covered by the safe-harbor provisions for
forward-looking statements contained in Section 27A of the
Securities Act and Section 21E of the Exchange Act, as applicable.
Such information is subject to certain risks and uncertainties, as
well as known and unknown risks, which could cause actual results
to differ materially from those projected or anticipated.
Therefore, such statements are not intended to be a guarantee of
our performance in future periods. Such forward-looking statements
can generally be identified by the Company's use of forward-looking
terminology, such as “may,” “will,” “plan,” “expect,” “intend,”
“anticipate,” “believe,” “continue,” “goals” or similar words or
phrases that are predictions of future events or trends and which
do not relate solely to historical matters.
The following are some of the factors that could cause the
Company's actual results and its expectations to differ materially
from those described in the Company's forward-looking statements:
the Company's ability to meet its long-term goals, its assumptions
regarding its earnings guidance, including its ability to execute
effectively its acquisition and disposition strategy, to continue
to execute its development pipeline on schedule and at the expected
costs, and its ability to grow its NOI as expected, which could be
impacted by a number of factors, including, among other things, its
ability to continue to renew leases or re-let space on attractive
terms and to otherwise address its leasing rollover; its ability to
successfully identify, finance and consummate suitable
acquisitions, and the impact of such acquisitions, including
financing developments, capitalization rates and internal rates of
return; the Company’s ability to reduce or otherwise effectively
manage its general and administrative expenses; the Company’s
ability to fund from cash flows or otherwise distributions to its
shareholders at current rates or at all; current adverse market and
economic conditions; lease terminations or lease defaults; the
impact of competition on the Company's efforts to renew existing
leases; changes in the economies and other conditions of the
specific markets in which the Company operates; economic,
legislative and regulatory changes; the success of the Company's
real estate strategies and investment objectives; the Company's
ability to continue to qualify as a REIT under the Internal Revenue
Code of 1986, as amended; and other factors detailed in the
Company's most recent Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and other documents the Company files with the
Securities and Exchange Commission from time to time.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company cannot guarantee the accuracy of any
such forward-looking statements contained in this press release,
and the Company does not intend to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact Whitestone REIT:Kevin ReedDirector of
Investor Relations(713) 435-2219ir@whitestonereit.com
Whitestone REIT (NYSE:WSR)
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