Whitestone REIT’s (NYSE:WSR) (“Whitestone” or the “Company”) Board
of Trustees has declared a monthly cash dividend of $0.035833 per
share on the Company’s common shares and operating partnership
units. The dividend amount represents a quarterly amount of
$0.1075, and an annualized amount of $0.43 per share. The fourth
quarter dividend distribution for 2021 will be as detailed below:
Month |
|
Record Date |
Payment Date |
Distribution per Share/Unit |
|
October |
|
10/4/2021 |
10/14/2021 |
$0.035833 |
|
November |
|
11/2/2021 |
11/12/2021 |
$0.035833 |
|
December |
|
12/2/2021 |
12/13/2021 |
$0.035833 |
|
“We are pleased to announce Whitestone’s 134th,
135th and 136th consecutive monthly dividend distributions. As the
market continues to closely monitor inflation indicators, we are
proud of the fact that we have an inflation hedge built into our
leases with a 2% to 3% annual rent increase, and pass on to our
tenants Taxes, Insurance, and Common Area Maintenance costs. This
has enabled us to consistently provide our shareholders with
uninterrupted monthly dividends throughout the history of our
company. Currently, our annual dividend equates to a 4.4% yield(2),
versus the shopping center industry average of 3.5%(3), and our
pay-out ratio to FFO Core is 41%(1), versus the shopping center
industry average 50%(4). We believe the financial strength of REITS
is their ability to pay a predictable dividend, appreciate, and
hedge against inflation. We believe that our business model
consistently meets this criteria and provides our shareholders with
a predictable dividend, as well as a growth opportunity,” commented
Chairman and Chief Executive Officer, Jim Mastandrea.
“As the economy continues to re-open, our
long-term plan is on track with our first off-market acquisition of
Lakeside Market in Plano, Texas this year, increased occupancy in
Q2-2021 of 0.7% over Q2-2020, and continued improvement in debt
leverage, reducing debt by $62 million from the second quarter of
2020. With our current portfolio of approximately $230 million of
development and redevelopment opportunities on entitled land that
we currently own at little to no cost, we believe this will produce
an incremental $24 million in NOI, or a 10.6% cash on cash yield on
cost, and create a 460 basis point spread or $175 million in value
above our development cost. We expect our development program to
produce long-term value for our shareholders over the next several
years providing both a growth and income opportunity for
shareholders.”
About Whitestone REIT
Whitestone 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 Sunbelt.
Whitestone seeks to Create Communities in Our Properties through
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 and
www.linkedin.com/company/whitestone-reit.
(1) for the Quarter ended June 30,
2021(2) based on our September 10, 2021 closing
price(3) Based on the September 10, 2021 closing
price. Includes AKR, BFS, BRX, CDR, FRT, KIM, KRG, REG, ROIC, RPAI,
RPT, RVI, SITC, UBA, and UE.(4) For the Quarter
ended June 30, 2021. Includes AKR, BFS, BRX, CDR, FRT, KIM, KRG,
REG, ROIC, RPAI, RPT, RVI, SITC, UBA, and UE.
Forward-Looking
StatementsCertain 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:
uncertainties related to the COVID-19 pandemic, including the
unknown duration and economic, operational and financial impacts of
the COVID-19 pandemic, and the actions taken or contemplated by
U.S. and local governmental authorities or others in response to
the pandemic on the Company’s business, employees and tenants,
including, among others, (a) changes in tenant demand for the
Company’s properties, (b) financial challenges confronting major
tenants, including as a result of decreased customers’ willingness
to frequent, and mandated stay in place orders that have prevented
customers from frequenting, some of Company’s tenants’ businesses
and the impact of these issues on the Company’s ability to collect
rent from its tenants; (c) operational changes implemented by the
Company, including remote working arrangements, which may put
increased strain on IT systems and create increased vulnerability
to cybersecurity incidents, (d) significant reduction in the
Company’s liquidity due to a reduced borrowing base under its
revolving credit facility and limited ability to access the capital
markets and other sources of financing on attractive terms or at
all, and (e) prolonged measures to contain the spread of COVID-19
or the fluctuating government-imposed restrictions implemented to
contain the spread of COVID-19; adverse economic or real estate
developments or conditions in Texas or Arizona, Houston and Phoenix
in particular, including as a result of any resurgences in COVID-19
cases in such areas and the impact on our tenants’ ability to pay
their rent, which could result in bad debt allowances or
straight-line rent reserve adjustments; the imposition of federal
income taxes if we fail to qualify as a real estate investment
trust (“REIT”) in any taxable year or forego an opportunity to
ensure REIT status; the Company's ability to meet its long-term
goals, 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 including, but
not limited to, the significant volatility and disruption in the
global financial markets caused by the COVID-19 pandemic; 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 changes to laws governing REITs and the impact of the
legislation commonly known as the Tax Cuts and Jobs Act; 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.
Whitestone
REIT and Subsidiaries |
RECONCILIATION OF NON-GAAP MEASURES |
(in
thousands, except per share and per unit data) |
|
|
|
Three Months Ended |
|
June 30, 2021 |
FFO (NAREIT) AND FFO CORE |
|
Net income attributable to Whitestone REIT |
$ |
5,126 |
|
Adjustments
to reconcile to FFO: |
|
Depreciation and amortization of real estate assets |
|
7,068 |
|
Depreciation and amortization of real estate assets of real estate
partnership (pro rata) |
|
409 |
|
(Gain) loss on sale or disposal of assets, net |
|
(224 |
) |
Loss (gain) on sale of property from discontinued operations |
|
(1,833 |
) |
(Gain) loss on sale or disposal of properties or assets of real
estate partnership (pro rata) |
|
(20 |
) |
Net income attributable to noncontrolling interests |
|
92 |
|
FFO
(NAREIT) |
|
10,618 |
|
Adjustments
to reconcile to FFO Core: |
|
Share-based compensation expense |
|
1,244 |
|
FFO
Core |
$ |
11,862 |
|
|
|
FFO PER SHARE AND OP UNIT CALCULATION |
|
Numerator: |
|
FFO |
$ |
10,618 |
|
Distributions paid on unvested restricted common shares |
|
- |
|
FFO excluding amounts attributable to unvested restricted common
shares |
$ |
10,618 |
|
FFO Core excluding amounts attributable to unvested restricted
common shares |
$ |
11,862 |
|
Denominator: |
|
Weighted average number of total common shares - basic |
|
43,378 |
|
Weighted average number of total noncontrolling OP units -
basic |
|
773 |
|
Weighted average number of total common shares and noncontrolling
OP units - basic |
|
44,151 |
|
|
|
Effect of dilutive securities: |
|
Unvested restricted shares |
|
747 |
|
Weighted average number of total common shares and noncontrolling
OP units - diluted |
|
44,898 |
|
|
|
FFO per
common share and OP unit - basic |
$ |
0.24 |
|
FFO per
common share and OP unit - diluted |
$ |
0.24 |
|
|
|
FFO Core per
common share and OP unit - basic |
$ |
0.27 |
|
FFO Core per
common share and OP unit - diluted |
$ |
0.26 |
|
|
|
Quarterly
Dividend |
$ |
0.1075 |
|
|
|
Dividend to FFO Core Payout Ratio |
|
41 |
% |
Contact Whitestone REIT:Rebecca
ElliottVice President, Corporate Communications(713)
435-2219relliott@whitestonereit.com
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