Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”), a
leading owner and operator of e-commerce resistant,
community-centered retail properties producing industry leading,
long-term Total Shareholder Returns, provides a business update
regarding operations and May and April rent collections.
- All 58 properties remain open and operating.
- Approximately 83.6% of total April 2020 billed recurring rents
have been collected to date, up from 64% reported as of May 5,
2020.
- Approximately 67.4% of total May 2020 billed recurring rents
have been collected through May month-end, 7% ahead of April 2020
collections at April month-end.
- 91.0% of our tenants are open and operating based on annualized
base rent. Openings are expected to continue to increase over the
next few weeks as Texas and Arizona have begun and phased
re-openings in June. Annualized base rent reflects the aggregate,
annualized in-place contractual (defined as cash-basis excluding
rent abatements) minimum rent for all occupied spaces as of June 1,
2020.
“Our e-commerce resistant business model, with quality
properties in high household income neighborhoods, focuses on
tenants who serve the needs (and essentials) of the consumer and
continues to demonstrate its financial strength, durability,
stability, and predictability.”
“Whitestone’s well-mixed tenant base of national, regional and
local tenants provide daily necessities, needed services and
entertainment to their respective communities and have been nimble
and quick to adjust to the rapidly changing environment. The
prudent and swift decisions we made in late March to preserve cash,
reduce cash outflows, and focus on helping our tenants has produced
impressive results relative to our peers. We have been
pleased with the performance of our dedicated employees during the
handling of the pandemic thus far, evidenced by our industry
leading collection rates, which are significantly higher than the
reported industry averages, and continue to increase,” said Jim
Mastandrea, Chairman and Chief Executive Officer.
Mr. Mastandrea added, “We are fully committed to the long-term
success of our tenants. We often say ‘local knows local best.’ That
couldn’t be more true today, in Whitestone’s Community Centered
Properties that are strategically located in the fastest growing
cities in Texas and Arizona, including Houston, Dallas, Ft. Worth,
Austin, and San Antonio, Phoenix, Scottsdale, Mesa, Gilbert,
Chandler, Ahwatukee, Fountain Hills, and Anthem.” Mr. Mastandrea
concluded, “Our e-commerce business model, which was born out of
the Financial Crisis in 2008-2009, targets fast growing markets in
business friendly states and has proven its earning potential and
ability to endure economic downturns and uncertainty over time and
continues to prove itself.”
“We really appreciate Whitestone’s resilience in helping us
during these uncertain times,” stated Derek and Sheree Simm,
co-owners of Rare Books Bar, at The Shops at Starwood property in
Frisco, Texas. “They’ve been in constant contact with us since the
onset of the pandemic and are helping us develop a plan for a
speedy recovery.”
About Whitestone REITWhitestone
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.
For additional information, visit www.whitestonereit.com.
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 include statements
about our earnings guidance, future liquidity, performance growth
and expectations and other matters and 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 additional 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, including the impact of the Tax
Cuts and Jobs Act of 2017; 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.
(1) Source: U.S. Publicly Traded
Shopping Center peer company filings as of close of market, June 3,
2020. Peers are based on SNL data and include Acadia Realty Trust,
Brixmor Property Group Inc., Cedar Realty Trust Inc., Federal
Realty Investment Trust, Kimco Realty Corp., Kite Realty Group
Trust, RPT Realty, Regency Centers Corp., Retail Opportunity
Investments Corp., Retail Properties of America, Inc., Saul Centers
Inc., Site Centers Corp., Urban Edge Properties, Urstadt Biddle
Properties Inc., Weingarten Realty Investors, and Wheeler REIT
Inc.
Contact Whitestone REIT:Kevin ReedDirector of
Investor Relations(713) 435-2219ir@whitestonereit.com
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