Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”), a
leading owner and operator of open-air community-focused lifestyle
properties primarily in the Sun Belt states, highlighted several
positive trends in the high growth markets where Whitestone has
prioritized its investments. Over the past several years,
metropolitan areas in Arizona and Texas have experienced some of
the highest economic activity and population growth in the United
States. Whitestone’s properties continue to attract outstanding
tenants that offer essential services and goods needed by local
communities in these areas, driving strong growth and value for
shareholders. The Company’s long-term strategy of acquiring and
developing premier properties in these rapidly expanding regions
continues to deliver value for all stakeholders, including the many
communities in which Whitestone operates.
Whitestone Capitalizing from Positive
TrendsMigration tailwinds have driven increased
quarter-over-quarter foot traffic — a 17.9% increase in foot
traffic at its centers from 4Q2020 to 2Q2021 — for Whitestone’s
tenants and new leases across Whitestone’s properties. This is best
evidenced by the Company’s first and second quarter 2021 leasing
activity, occupancy levels, leasing spreads and average base rent
on leased square foot. Whitestone’s new tenant square foot leasing
activity for the first six months of 2021 has been 100% higher than
the first six months of 2020 and 40% higher than the first six
months of 2019.
“Since the IPO of Whitestone in 2010, we have
had conviction in the Sun Belt markets, and most specifically
Arizona and Texas,” said Jim Mastandrea, Chairman and Chief
Executive Officer of Whitestone REIT. “Guided by our local
expertise and consumer-driven data, our portfolio and investment
strategy ensure we own properties in high-growth markets where
people increasingly want to live. As a result of the pandemic,
these years-long migration trends have accelerated and the
prescient work of our team in thoughtfully positioning each of our
properties has delivered outsized value for all of our
stakeholders.”
Positive Macro Trends in Arizona and
TexasOver the past decade, Arizona’s population has
increased by approximately 700,000 people while Texas’ population
grew by nearly four million people, representing growth of 11.9%
and 15.9%, respectively. As Whitestone correctly anticipated, the
highest population growth has occurred in the urban Sun Belt
cities. Indeed, almost half of all population growth in the nation
between 2010 and 2016 happened in the 22 metro areas in the Sun
Belt.1 As depicted on the following map, both Arizona and Texas,
where Whitestone’s properties are strategically located, were among
the top states for inbound migration in 2020.
A map image accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9d34fe1b-5c7c-4f58-88dc-e9a43d35f083
Whitestone was built by acquiring strategically
targeted properties located in high-income communities within
fast-growing and highly populated cities in business-friendly
states. Its internet-resistant business model is focused on
entrepreneurial tenants providing the services and essential needs
of the local community’s consumers. The Company has historically
grown its portfolio through single, off-market, value-add
acquisitions in four specific markets: Phoenix/Scottsdale,
Austin/San Antonio, Dallas/Fort Worth, and Houston, all of which
have seen tremendous population growth — a trend that is predicted
to continue as more companies relocate.
Economists say Texas may be the best state in
the union in which to start a business, with economic growth that
is outpacing the national average, according to Business News
Daily. More than 45 percent of Texas' private sector work force is
employed by small businesses, which amounts to 4.7 million
employees. The other cities of the urban Sun Belt have also proved
to be attractive geographies for business relocations. Not only are
droves of people relocating to Arizona and Texas, those who are
doing so tend to be relatively wealthy, with high levels of
disposable income.
Mr. Mastandrea continued, “Our strategically
chosen markets are resilient, our tenants serve their local
neighbors’ essential lifestyle needs, and our business model
generates consistent and attractive cash flow and returns. Change
creates opportunity. In retail and real estate, we are excited by
the many opportunities created by both population and corporate
migrations and the increased demand for consumer-oriented centers
and services, which Whitestone provides.”
________________________1 Large, young and
fast-growing Sun Belt metros need urban policy innovation (Rice
Kinder Institute for Urban Research, June 11, 2020)
About Whitestone REITWhitestone
is a community-centered shopping center REIT that acquires, owns,
manages, develops, and redevelops high-quality neighborhood centers
primarily in the largest, fastest-growing and most affluent markets
in the Sun Belt.
Whitestone seeks to Create Communities in Our
Properties™ by Creating Local Connections between consumers in the
surrounding communities and a well-crafted mix of local, regional
and national tenants that provide daily necessities, needed
services, entertainment, and experiences.
Whitestone (NYSE: WSR) pays monthly dividends to
its shareholders and it has consistently done so for more than 15
years. Whitestone’s strong balanced and managed capital structure
provides stability and flexibility for growth and positions
Whitestone to perform well through economic cycles. For additional
information, please visit www.whitestonereit.com.
Safe Harbor StatementThis press
release includes "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. Forward-looking statements generally can be identified
by the use of forward-looking terminology such as "may," "should,"
"could," "would," "predicts," "potential," "continue," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" or similar expressions or their negatives, as well as
statements in future tense. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, beliefs and expectations, such
forward-looking statements are not predictions of future events or
guarantees of future performance and our actual results could
differ materially from those set forth in the forward-looking
statements. For a description of certain of such factors, see the
section entitled "Risk Factors" in the Company's Annual Report on
Form 10-K for the year ended December 31, 2020, and the Company's
other filings with the Securities and Exchange Commission.
Any forward-looking information presented herein is made only as of
the date of this press release, and the Company does not undertake
any obligation to update or revise any forward-looking information
to reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise.
Investor and Media
Contact:Rebecca ElliottVice President, Corporate
CommunicationsWhitestone REIT(713)
435-2219ir@whitestonereit.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/15292938-de3c-4a89-abf4-5e753a781e7a
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