|
| | | | | | | | |
| CORPORATE PROFILE |
| | | | | | | | | |
| NYSE: WSR | | Whitestone REIT (NYSE: WSR) is a fully integrated real estate investment trust that owns, |
| Common Shares | | operates and redevelops Community Centered Properties TM, which are visibly located properties in |
| | | established or developing, culturally diverse neighborhoods. As of September 30, 2013, we owned |
| | | 55 Community Centered Properties TM with approximately 4.6 million square feet of gross leasable |
| 55 Community Centers | | area, located in five of the top markets in the United States in terms of population growth: Houston, |
| 4.6 Million Sq. Ft. of gross | | Dallas, San Antonio, Phoenix and Chicago. Headquartered in Houston, Texas, we were founded |
| leasable area | | in 1998. |
| 1,168 Tenants | | |
| | | We focus on value creation in our properties, as we market, lease and manage our properties. We |
| 5 Top Growth Markets | | invest in properties that are or can become Community Centered Properties TM from which our |
| Houston | | tenants deliver needed services to the surrounding community. We focus on niche properties with |
| Dallas | | smaller rental spaces that present opportunities for attractive returns. |
| San Antonio | | |
| Phoenix | | Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide |
| Chicago | | services to their respective surrounding communities. Operations include an internal management |
| | | structure providing cost-effective services to locally-oriented, smaller space tenants. Multi-cultural |
| Fiscal Year End | | community focus sets us apart from traditional commercial real estate operators. We value diversity |
| 12/31 | | on our team and maintain in-house leasing, property management, marketing, construction and |
| | | maintenance departments with culturally diverse and multi-lingual associates who understand the |
| Common Shares & | | particular needs of our tenants and neighborhoods. |
| Units Outstanding*: | | |
| Common Shares: 21.9 Million | | We have a diverse tenant base concentrated on service offerings such as medical, educational, casual |
| Operating Partnership Units: | | dining and convenience services. These tenants tend to occupy smaller spaces (less than 3,000 square |
| 0.6 Million | | feet) and, as of September 30, 2013, provided a 53% premium rental rate compared to our larger |
| | | space tenants. The largest of our 1,168 tenants comprised less than 1.6% of our annualized base |
| | | rental revenues for the three months ended September 30, 2013. |
| | | | | | | | | |
| Distribution (per share / unit): | | Investor Relations: | | | | | | |
| Quarter: $ 0.2850 | | Whitestone REIT | | | | | | |
| Annualized: $ 1.1400 | | Suzy Taylor, Director of Investor Relations |
| Dividend Yield: 8.2%** | | 2600 South Gessner Suite 500, Houston, Texas 77063 | | |
| | | 713.435.2219 email: ir@whitestonereit.com | | website: www.whitestonereit.com |
| Board of Trustees: | | | | | | |
| James C. Mastandrea | | ICR Inc. - Brad Cohen 203.682.8211 | | |
| Daryl J. Carter | | Analyst Coverage: | | | | | | |
| Daniel G. DeVos | | BMO Capital Markets Corp. | | J.J.B. Hilliard, W.L. Lyons, LLC | | JMP Securities | | Robert W. Baird & Co. |
| Donald F. Keating | | Paul Adornato, CFA | | Carol L. Kemple | | Mitch Germain | | Jonathon Pong |
| Paul T. Lambert | | 212.885.4170 | | 502.588.1839 | | 212.906.3546 | | 203.425.2740 |
| Jack L. Mahaffey | | Paul.Adornato@bmo.com | | ckemple@hilliard.com | | mgermain@jmpsecurities.com | | jpong@rwbaird.com |
| | | | | | | | | |
| * As of November 1, 2013 | | Wunderlich Securities, Inc. | | | | | | |
| ** Based on common share price | | Merril Ross | | | | | | |
| of $13.91 as of close of market on | | 703.669.9255 | | | | | | |
| November 1, 2013 | | mross@wundernet.com | | | | | | |
PRESS RELEASE
Contact Whitestone REIT:
Suzy Taylor, Director of Investor Relations
(713) 435-2219 STaylor@WhitestoneREIT.com
WHITESTONE REIT ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 2013
- Funds From Operations Core Increased 26%, to $0.29 per share -
- Revenue Grew 40% over Prior Year Quarter, to $16.3 Million -
- 35% Improvement in Quarterly Property Net Operating Income, to $9.5 Million -
- Leased 260,371 square feet Primarily to Tenants That Required Less Than 3,000 square feet -
- Refinanced $27 Million in Mortgage Debt for a Blended 4.4% Rate -
Houston, Texas, November 4, 2013 - Whitestone REIT (NYSE: WSR - “Whitestone” or the “Company”), a fully integrated real estate company that owns, re-develops, leases, manages, and operates Community Centered PropertiesTM, announced its financial results for the third quarter of 2013.
Highlights: Third Quarter 2013 Compared to Third Quarter of 2012
| |
• | Funds From Operations (“FFO”) increased 15%, to $4.1 million or $0.23 per share. |
| |
• | FFO Core increased 52%, or approximately $1.8 million, to $5.1 million. |
| |
• | FFO Core per diluted common share and unit of limited partnership interest in the Company's operating partnership ("OP unit") grew 26%, to $0.29 per share, as compared to $0.23 per share. FFO Core excludes non-cash share-based compensation expense of $834,000 and acquisition expenses of $130,000, and includes rent support agreement payments received from sellers on acquired assets of $91,000. |
| |
• | Property NOI increased 35%, or $2.5 million, to $9.5 million. |
| |
• | Net income attributable to Whitestone REIT more than doubled, to $614,000. |
"Whitestone’s third quarter results represent strong year-over-year increases in revenue, NOI and FFO. This progress validates the success of our operating model - accretive acquisitions, lease-up of vacancies, rental rate growth, capital structure optimization and future ground up property development," said James C. Mastandrea, Chairman and Chief Executive Officer.
Mastandrea continued, "On an operational basis, during the quarter we commenced initiatives to reposition, redevelop and expand four of our existing Community Centers. These initiatives, in the short run, may cause some volatility in quarterly occupancy rates as we vacate certain spaces, refurbish them, and then re-lease them at higher rents. Our third quarter leasing results saw increases in both new and renewal leasing volumes, providing us with additional confidence that our target tenants are returning to the market to lease space."
Mastandrea concluded, "We expect continued improvement in our tenant mix and increased occupancies as highly sought-after services and dining options replace providers of hard-goods which are increasingly purchased on line."
Third Quarter 2013 Leasing Highlights
The Company's total occupancy was 85.0% as of the end of the third quarter of 2013, up 40 basis points from third quarter of 2012 and down 60 basis points from the second quarter of 2013, reflecting some property repositioning.
The occupancy of Whitestone's Operating Portfolio was 85.9% as of September 30, 2013, compared to 86.9% in the third quarter of 2012. The Company defines Operating Portfolio Occupancy Rate as physical occupancy in all properties, excluding new acquisitions through the earlier of attainment of 90% occupancy or 18 months of ownership, and properties that are undergoing significant redevelopment or re-tenanting.
During the third quarter, the leasing team signed 98 leases totaling 260,371 square feet in new, expansion, and renewal leases. The average lease size was 2,657 square feet, consistent with Whitestone’s business model focused on small, service based tenants. For the third quarter of 2013, total lease value added was $13.0 million, up 69% from $7.7 million from the third quarter of 2012. For the nine months ended September 30, 3013, total lease value added was $33.4 million, up 40% when compared to the same period for 2012.
Subsequent to the end of the third quarter of 2013, Whitestone reached an agreement with an existing tenant that occupies an aggregate of 54,000 square feet in Whitestone’s Phoenix and Houston markets. The agreement will result in the tenant returning to market rental rates and enable Whitestone to add two high-quality tenants, who will occupy approximately 65,000 square feet in its centers. The two new tenants expect to take occupancy by year end. The impact of this agreement is expected to result in incremental annual revenue of approximately $850,000 and $1.1 million in 2014 and 2015, respectively. Approximately $75,000 from this agreement is expected to be realized in the fourth quarter of 2013.
Community Centered PropertiesTM Portfolio Statistics
As of September 30, 2013, Whitestone owned 55 Community Centered PropertiesTM with approximately 4.6 million square feet of gross leasable area, including four development land parcels, located in five of the top markets in the United States in terms of population growth: Houston, Dallas, San Antonio, Phoenix and Chicago.
The Company's strategic efforts target entrepreneurial tenants that provide services to the surrounding neighborhood at each Community Centered PropertyTM. These tenants tend to occupy smaller spaces (less than 3,000 square feet) and, as of September 30, 2013, provided a 53% premium rental rate compared to Whitestone's larger space tenants. As of September 30, 2013, the Company serviced approximately 1,200 tenants throughout its portfolio. No single tenant accounted for more than 1.6% of the Company's annualized base rental revenues as of September 30, 2013.
Balance Sheet
Undepreciated real estate assets as of September 30, 2013 of $483.4 million increased 24%, or $94.1 million, as compared to September 30, 2012.
Whitestone had 33 properties unencumbered by mortgage debt as of September 30, 2013, with an undepreciated cost basis of $284.8 million. The total undepreciated value of the Company's real estate assets was $483.4 million and $389.3 million as of September 30, 2013 and 2012, respectively. As of September 30, 2013, $140.3 million, or approximately 53%, of the Company's debt was subject to fixed interest rates. The Company's weighted average interest rate on all debt as of the end of the third quarter of 2013 was 3.5% per annum compared to the weighted average of 4.7% for the same period last year. Real estate debt as a percentage of total market capitalization was 49% as of September 30, 2013 as compared to 41% as of September 30, 2012.
On September 26, 2013, the Company operating through a subsidiary, Whitestone Uptown Tower, LLC, entered into a $16.5 million mortgage loan with a fixed interest rate of 4.97% and a maturity of September 26, 2023. Proceeds from the loan were used to repay a portion of the Company's unsecured revolving credit facility.
On September 24, 2013, the Company, operating through a subsidiary, Whitestone Terravita Marketplace, LLC, entered into a $10.5 million mortgage loan, with an applicable interest rate of LIBOR plus 2.00%, and a maturity of September 24, 2018. On October 30, 2013, we entered into an interest rate swap which fixed the rate at 3.5475% for the term of the loan. Proceeds from the loan were used to repay a portion of the Company's unsecured revolving credit facility. The loan is a non-recourse loan secured by Whitestone's Terravita Marketplace property, located in Scottsdale, Arizona.
For the third quarter ended September 30, 2013, under the Company's on-going at-the-market equity distribution program, the Company sold 282,239 common shares, generating net proceeds of approximately $4.2 million.
Subsequent Events
In October 2013, the Company received total net proceeds of approximately $60 million, through the sale of 4.6 million common shares, at a price to the public of $13.54 per share, including the fully exercised underwriters’ over-allotment option to purchase an additional 600,000 common shares. The Operating Partnership intends to use the net proceeds from this offering for general corporate purposes, which may include acquisitions of additional properties, the repayment of outstanding indebtedness, capital expenditures (including tenant improvements), the expansion, redevelopment and/or re-tenanting of properties in the portfolio, working capital and other general purposes.
On October 7, 2013, the Company acquired Fountain Hills Plaza, a Community Centered Property, for approximately $20.6 million in cash and net prorations. The 111,289 square foot property was 87% leased at the time of purchase and is located in Fountain Hills, Arizona, a suburb of Phoenix.
On October 17, 2013, the Company acquired a 2.5 acre parcel for $2.8 million in cash and net prorations. The parcel has frontage on I-45 in Spring, Texas, a suburb north of Houston, and is contiguous to our Corporate Park Woodland property, which is currently 100% leased.
Dividend
The Company declared a quarterly cash distribution of $0.285 per common share and OP unit for the fourth quarter of 2013, paid or to be paid in three equal installments of $0.095 in October, November, and December 2013. The dividend amount per share has remained the same since the distribution paid on July 8, 2010.
Supplemental Financial Information
Further details regarding Whitestone REIT's results of operations, communities and tenants can be accessed at the Company's website at www.whitestonereit.com.
Webcast and Conference Call
Whitestone will host a webcast and conference call for investors and other interested parties on Tuesday, November 5, 2013 at 12:00 P.M. (Eastern Time). The call will be hosted by James Mastandrea, Chairman and Chief Executive Officer, and David Holeman, Chief Financial Officer.
Listen via Webcast
Interested parties can listen to the call live on the internet through the Investor Relations section of the Company's website, www.whitestonereit.com, using the News & Market Data - Press Releases tab. The call is also accessible via telephone by dialing 1-(888) 740-6142 for domestic participants or 1-(913) 312-1503 for international participants.
Listeners should go to the website at least 15 minutes prior to the call to download and install any necessary audio software. Those dialing in should call in at least five to ten minutes prior to the start.
The conference call will be recorded and a telephone replay will be available through November 19, 2013, by dialing 1-(877) 870-5176 for domestic participants or 1-(858) 384-5517 for international participants and entering the pass code 3667196. Additionally, a replay of the call will be available on the Company's website until its next earnings release.
The earnings release and supplemental data package will be located in the Investor Relations section of the website on the News & Market Data - Press Releases tab. For those without internet access, the third quarter earnings release and supplemental data package will be available by mail upon request. To receive a copy, please call the Company's Investor Relations line at (713) 435-2219.
About Whitestone REIT
Whitestone REIT(NYSE:WSR) is a fully integrated real estate investment trust that owns, operates and redevelops Community Centered PropertiesTM. Whitestone focuses on value creation in its community centers, concentrating on local service-oriented, smaller space tenants (less than 3,000 square feet). Whitestone has a diversified tenant base concentrated on service offerings including medical, education, casual dining, and convenience services. The largest of its approximately 1,200 tenants comprised less than 1.6% of its annualized base rental revenues as of September 30, 2013. Founded in 1998, the Company is internally managed with a portfolio of 55 commercial properties in Texas, Arizona, and Illinois. For additional information about the Company, please visit www.whitestonereit.com . The Investor Relations section of the Company's website contains filings made with the Securities and Exchange Commission, news releases, financial reports and investor newsletters.
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"). We intend 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 our use of forward-looking terminology, such as "may," "will," "plan," "expect," "intend," "anticipate," "believe," "continue" or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include, but are not limited to, the strength of the Company's leasing portfolio and lease renewal activities.
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 successfully identify and consummate suitable acquisitions; 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 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; 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.
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.
Non-GAAP Financial Measures
This release contains the supplemental financial measures that are not calculated pursuant to U.S. generally accepted accounting principles ("GAAP") including FFO, FFO Core, and NOI. Following are explanations and reconciliations of these metrics to their most comparable GAAP metric.
FFO: Management believes that FFO is a useful measure of the Company's operating performance. The Company computes FFO as defined by the National Association of Real Estate Investment Trusts, or ("NAREIT"), which states that FFO should represent net income available to common shareholders (computed in accordance with GAAP) excluding gains or losses from sales of operating assets, impairment charges and extraordinary items, plus depreciation and amortization of operating properties, including the Company's share of unconsolidated real estate joint ventures
and partnerships. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of the Company's performance or to cash flow from operations as a measure of liquidity or ability to make distributions and service debt.
Management considers FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, management believes that FFO provides a more meaningful and accurate indication of the Company's performance and useful information for the investment community to compare Whitestone to other REITs since FFO is generally recognized as the industry standard for reporting the operations of REITs.
Other REITs may use different methodologies for calculating FFO, and accordingly, the Company's FFO may not be comparable to other REITs. The Company presents FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding OP units for the periods presented.
FFO Core: Management believes that the computation of FFO in accordance with NAREIT's definition includes certain non-cash and non-comparable items that effect the Company's period-over-period performance. These items include, but are not limited to, legal settlements, non-cash share-based compensation expense, rent support agreement payments received from sellers on acquired assets and acquisition costs. In addition, the Company believes that FFO Core is a useful supplemental measure for the investing community to use in comparing the Company to other REITs as many REITs provide some form of adjusted or modified FFO. However, other REITs may use different adjustments, and the Company's FFO Core may not be comparable to the adjusted or modified FFO of other REITs.
NOI: Management believes that NOI is a useful measure of the Company's property operating performance. The Company defines NOI as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets and capital expenditures and leasing costs, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company's results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about the Company's property and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of property performance in the real estate industry. However, NOI should not be viewed as a measure of the Company's overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company's NOI may not be comparable to that of other REITs.
Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
|
| | | | | | | | |
| | | September 30, 2013 | | December 31, 2012 |
| | | (unaudited) | | |
| ASSETS |
| Real estate assets, at cost | | | | |
| Property | | $ | 483,379 |
| | $ | 409,669 |
|
| Accumulated depreciation | | (62,737 | ) | | (53,920 | ) |
| Total real estate assets | | 420,642 |
| | 355,749 |
|
| Cash and cash equivalents | | 9,506 |
| | 6,544 |
|
| Marketable securities | | 873 |
| | 1,403 |
|
| Escrows and acquisition deposits | | 6,129 |
| | 6,672 |
|
| Accrued rents and accounts receivable, net of allowance for doubtful accounts | | 9,169 |
| | 7,947 |
|
| Related party receivable | | — |
| | 652 |
|
| Unamortized lease commissions and loan costs | | 5,564 |
| | 4,160 |
|
| Prepaid expenses and other assets | | 2,749 |
| | 2,244 |
|
| Total assets | | $ | 454,632 |
| | $ | 385,371 |
|
| | | | | |
| LIABILITIES AND EQUITY |
| Liabilities: | | | | |
| Notes payable | | $ | 266,260 |
| | $ | 190,608 |
|
| Accounts payable and accrued expenses | | 13,505 |
| | 13,824 |
|
| Tenants' security deposits | | 3,360 |
| | 3,024 |
|
| Dividends and distributions payable | | 5,109 |
| | 5,028 |
|
| Total liabilities | | 288,234 |
| | 212,484 |
|
| Commitments and contingencies: | | — |
| | — |
|
| Equity: | | | | |
| Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of September 30, 2013 and December 31, 2012 | | — |
| | — |
|
| Common shares, $0.001 par value per share; 400,000,000 shares authorized; 17,341,947 and 16,943,098 issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | | 17 |
| | 16 |
|
| Additional paid-in capital | | 231,001 |
| | 224,237 |
|
| Accumulated deficit | | (69,879 | ) | | (57,830 | ) |
| Accumulated other comprehensive loss | | (68 | ) | | (392 | ) |
| Total Whitestone REIT shareholders' equity | | 161,071 |
| | 166,031 |
|
| Noncontrolling interest in subsidiary | | 5,327 |
| | 6,856 |
|
| Total equity | | 166,398 |
| | 172,887 |
|
| Total liabilities and equity | | $ | 454,632 |
| | $ | 385,371 |
|
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited)
(in thousands, except per share data)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| Property revenues | | | | | | | | |
| Rental revenues | | $ | 12,594 |
| | $ | 8,992 |
| | $ | 35,407 |
| | $ | 25,643 |
|
| Other revenues | | 3,697 |
| | 2,626 |
| | 9,548 |
| | 7,388 |
|
| Total property revenues | | 16,291 |
| | 11,618 |
| | 44,955 |
| | 33,031 |
|
| | | | | | | | | |
| Property expenses | | | | | | | | |
| Property operation and maintenance | | 4,145 |
| | 2,969 |
| | 10,558 |
| | 8,080 |
|
| Real estate taxes | | 2,673 |
| | 1,629 |
| | 6,483 |
| | 4,442 |
|
| Total property expenses | | 6,818 |
| | 4,598 |
| | 17,041 |
| | 12,522 |
|
| | | | | | | | | |
| Other expenses (income) | | | | | | | | |
| General and administrative | | 2,722 |
| | 1,888 |
| | 7,682 |
| | 5,392 |
|
| Depreciation and amortization | | 3,450 |
| | 2,683 |
| | 9,783 |
| | 7,256 |
|
| Interest expense | | 2,602 |
| | 2,244 |
| | 7,664 |
| | 6,324 |
|
| Interest, dividend and other investment income | | (26 | ) | | (121 | ) | | (114 | ) | | (274 | ) |
| Total other expenses | | 8,748 |
| | 6,694 |
| | 25,015 |
| | 18,698 |
|
| | | | | | | | | |
| Income before loss on sale or disposal of assets and income taxes | | 725 |
| | 326 |
| | 2,899 |
| | 1,811 |
|
| | | | | | | | | |
| Provision for income taxes | | (90 | ) | | (77 | ) | | (227 | ) | | (212 | ) |
| Loss on sale or disposal of assets | | — |
| | (77 | ) | | (48 | ) | | (105 | ) |
| | | | | | | | | |
| Net income | | 635 |
| | 172 |
| | 2,624 |
| | 1,494 |
|
| | | | | | | | | |
| Less: Net income attributable to noncontrolling interests | | 21 |
| | 9 |
| | 91 |
| | 99 |
|
| | | | | | | | | |
| Net income attributable to Whitestone REIT | | $ | 614 |
| | $ | 163 |
| | $ | 2,533 |
| | $ | 1,395 |
|
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited)
(in thousands, except per share data)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| Basic Earnings Per Share: | | | | | | | | |
| Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | | $ | 0.04 |
| | $ | 0.01 |
| | $ | 0.15 |
| | $ | 0.11 |
|
| Diluted Earnings Per Share: | | | | | | | | |
| Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | | $ | 0.03 |
| | $ | 0.01 |
| | $ | 0.15 |
| | $ | 0.11 |
|
| | | | | | | | | |
| Weighted average number of common shares outstanding: | | | | | | | | |
| Basic | | 17,036 |
| | 13,842 |
| | 16,916 |
| | 12,409 |
|
| Diluted | | 17,331 |
| | 13,961 |
| | 17,156 |
| | 12,526 |
|
| | | | | | | | | |
| Distributions declared per common share / OP unit | | $ | 0.2850 |
| | $ | 0.2850 |
| | $ | 0.8550 |
| | $ | 0.8550 |
|
| | | | | | | | | |
| Consolidated Statements of Comprehensive Income | | | | | | | | |
| | | | | | | | | |
| Net income | | $ | 635 |
| | $ | 172 |
| | $ | 2,624 |
| | $ | 1,494 |
|
| | | | | | | | | |
| Other comprehensive gain (loss) | | | | | | | | |
| | | | | | | | | |
| Unrealized gain (loss) on cash flow hedging activities | | (331 | ) | | (9 | ) | | 162 |
| | (9 | ) |
| Unrealized gain (loss) on available-for-sale marketable securities | | (39 | ) | | 92 |
| | 176 |
| | 891 |
|
| | | | | | | | | |
| Comprehensive income | | 265 |
| | 255 |
| | 2,962 |
| | 2,376 |
|
| | | | | | | | | |
| Less: Comprehensive income attributable to noncontrolling interests | | 8 |
| | 14 |
| | 103 |
| | 158 |
|
| | | | | | | | | |
| Comprehensive income attributable to Whitestone REIT | | $ | 257 |
| | $ | 241 |
| | $ | 2,859 |
| | $ | 2,218 |
|
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
|
| | | | | | | | |
| | | Nine Months Ended September 30, |
| | | 2013 | | 2012 |
| | | | | |
| Cash flows from operating activities: | | | | |
| Net income | | $ | 2,624 |
| | $ | 1,494 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
| Depreciation and amortization | | 9,783 |
| | 7,255 |
|
| Amortization of deferred loan costs | | 823 |
| | 1,064 |
|
| Amortization of notes payable discount | | 387 |
| | 86 |
|
| Gain on sale of marketable securities | | (41 | ) | | (110 | ) |
| Loss on sale or disposal of assets | | 48 |
| | 105 |
|
| Bad debt expense | | 1,431 |
| | 720 |
|
| Share-based compensation | | 1,501 |
| | 384 |
|
| Changes in operating assets and liabilities: | | | | |
| Escrows and acquisition deposits | | 886 |
| | 29 |
|
| Accrued rent and accounts receivable | | (2,653 | ) | | (1,876 | ) |
| Related party receivable | | 652 |
| | — |
|
| Unamortized lease commissions | | (993 | ) | | (674 | ) |
| Prepaid expenses and other assets | | 336 |
| | 630 |
|
| Accounts payable and accrued expenses | | (393 | ) | | 200 |
|
| Tenants' security deposits | | 336 |
| | 614 |
|
| Net cash provided by operating activities | | 14,727 |
| | 9,921 |
|
| | | | | |
| Cash flows from investing activities: | | | | |
| Acquisitions of real estate | | (58,403 | ) | | (79,400 | ) |
| Additions to real estate | | (3,925 | ) | | (9,297 | ) |
| Investments in marketable securities | | — |
| | (750 | ) |
| Proceeds from sales of marketable securities | | 747 |
| | 5,509 |
|
| Net cash used in investing activities | | (61,581 | ) | | (83,938 | ) |
| | | | | |
| Cash flows from financing activities: | | | | |
| Distributions paid to common shareholders | | (14,504 | ) | | (10,543 | ) |
| Distributions paid to OP unit holders | | (528 | ) | | (783 | ) |
| Proceeds from issuance of common shares, net of offering costs | | 4,184 |
| | 58,679 |
|
| Payments of exchange offer costs | | (23 | ) | | (249 | ) |
| Proceeds from notes payable | | 47,150 |
| | — |
|
| Proceeds from revolving credit facility, net | | 73,400 |
| | 33,956 |
|
| Repayments of notes payable | | (57,936 | ) | | (2,853 | ) |
| Payments of loan origination costs | | (1,927 | ) | | (1,546 | ) |
| Net cash provided by financing activities | | 49,816 |
| | 76,661 |
|
| | | | | |
| Net increase in cash and cash equivalents | | 2,962 |
| | 2,644 |
|
| Cash and cash equivalents at beginning of period | | 6,544 |
| | 5,695 |
|
| Cash and cash equivalents at end of period | | $ | 9,506 |
| | $ | 8,339 |
|
Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
|
| | | | | | | | |
| | | Nine Months Ended September 30, |
| | | 2013 | | 2012 |
| Supplemental disclosure of cash flow information: | | | | |
| Cash paid for interest | | $ | 6,950 |
| | $ | 5,250 |
|
| Cash paid for taxes | | $ | 237 |
| | $ | 225 |
|
| Non cash investing and financing activities: | | | | |
| Disposal of fully depreciated real estate | | $ | 194 |
| | $ | 523 |
|
| Financed insurance premiums | | $ | 883 |
| | $ | 856 |
|
| Value of shares issued under dividend reinvestment plan | | $ | 72 |
| | $ | 68 |
|
| Debt assumed with acquisitions of real estate | | $ | 11,100 |
| | $ | 9,166 |
|
| Interest supplement assumed with acquisition of real estate | | $ | 932 |
| | $ | — |
|
| Acquired interest rate swap | | $ | — |
| | $ | 1,901 |
|
| Debt discount on acquired note payable | | $ | — |
| | $ | (1,329 | ) |
| Accrued offering costs | | $ | 15 |
| | $ | 85 |
|
| Value of common shares exchanged for OP units | | $ | 1,132 |
| | $ | 6,224 |
|
| Change in fair value of available-for-sale securities | | $ | 176 |
| | $ | 891 |
|
| Change in fair value of cash flow hedge | | $ | 162 |
| | $ | (9 | ) |
Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| FFO AND FFO CORE | | | | | | | | |
| Net income attributable to Whitestone REIT | | $ | 614 |
| | $ | 163 |
| | $ | 2,533 |
| | $ | 1,395 |
|
| Depreciation and amortization of real estate assets | | 3,427 |
| | 2,657 |
| | 9,716 |
| | 7,160 |
|
| Loss on disposal of assets | | — |
| | 77 |
| | 48 |
| | 105 |
|
| Net income attributable to noncontrolling interests | | 21 |
| | 9 |
| | 91 |
| | 99 |
|
| FFO | | 4,062 |
| | 2,906 |
| | 12,388 |
| | 8,759 |
|
| | | | | | | | | |
| Non cash share-based compensation expense | | 834 |
| | 118 |
| | 1,501 |
| | 384 |
|
| Acquisition costs | | 130 |
| | 338 |
| | 612 |
| | 532 |
|
| Rent support agreement payments received | | 91 |
| | — |
| | 91 |
| | — |
|
| Legal settlement | | — |
| | — |
| | — |
| | (131 | ) |
| FFO Core | | $ | 5,117 |
| | $ | 3,362 |
| | $ | 14,592 |
| | $ | 9,544 |
|
| | | | | | | | | |
| FFO PER SHARE AND OP UNIT CALCULATION: | | | | | | | | |
| Numerator: | | | | | | | | |
| FFO | | $ | 4,062 |
| | $ | 2,906 |
| | $ | 12,388 |
| | $ | 8,759 |
|
| Distributions paid on unvested restricted common shares | | (10 | ) | | (5 | ) | | (32 | ) | | (11 | ) |
| FFO excluding amounts attributable to unvested restricted common shares | | $ | 4,052 |
| | $ | 2,901 |
| | $ | 12,356 |
| | $ | 8,748 |
|
| FFO Core excluding amounts attributable to unvested restricted common shares | | $ | 5,107 |
| | $ | 3,357 |
| | $ | 14,560 |
| | $ | 9,533 |
|
| | | | | | | | | |
| Denominator: | | | | | | | | |
| Weighted average number of total common shares - basic | | 17,036 |
| | 13,842 |
| | 16,916 |
| | 12,409 |
|
| Weighted average number of total noncontrolling OP units - basic | | 577 |
| | 786 |
| | 605 |
| | 886 |
|
| Weighted average number of total commons shares and noncontrolling OP units - basic | | 17,613 |
| | 14,628 |
| | 17,521 |
| | 13,295 |
|
| | | | | | | | | |
| Effect of dilutive securities: | | | | | | | | |
| Unvested restricted shares | | 295 |
| | 119 |
| | 240 |
| | 117 |
|
| Weighted average number of total common shares and noncontrolling OP units - dilutive | | 17,908 |
| | 14,747 |
| | 17,761 |
| | 13,412 |
|
| | | | | | | | | |
| FFO per common share and OP unit - basic | | $ | 0.23 |
| | $ | 0.20 |
| | $ | 0.71 |
| | $ | 0.66 |
|
| FFO per common share and OP unit - diluted | | $ | 0.23 |
| | $ | 0.20 |
| | $ | 0.70 |
| | $ | 0.65 |
|
| | | | | | | | | |
| FFO Core per common share and OP unit - basic | | $ | 0.29 |
| | $ | 0.23 |
| | $ | 0.83 |
| | $ | 0.72 |
|
| FFO Core per common share and OP unit - diluted | | $ | 0.29 |
| | $ | 0.23 |
| | $ | 0.82 |
| | $ | 0.71 |
|
Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| PROPERTY NET OPERATING INCOME | | | | | | | | |
| | | | | | | | | |
| Net income attributable to Whitestone REIT | | $ | 614 |
| | $ | 163 |
| | $ | 2,533 |
| | $ | 1,395 |
|
| General and administrative expenses | | 2,722 |
| | 1,888 |
| | 7,682 |
| | 5,392 |
|
| Depreciation and amortization | | 3,450 |
| | 2,683 |
| | 9,783 |
| | 7,256 |
|
| Interest expense | | 2,602 |
| | 2,244 |
| | 7,664 |
| | 6,324 |
|
| Interest, dividend and other investment income | | (26 | ) | | (121 | ) | | (114 | ) | | (274 | ) |
| Provision for income taxes | | 90 |
| | 77 |
| | 227 |
| | 212 |
|
| Loss on disposal of assets | | — |
| | 77 |
| | 48 |
| | 105 |
|
| Net income attributable to noncontrolling interests | | 21 |
| | 9 |
| | 91 |
| | 99 |
|
| NOI | | $ | 9,473 |
| | $ | 7,020 |
| | $ | 27,914 |
| | $ | 20,509 |
|
| | | | | | | | | |
| EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION | | | | | | | | |
| | | | | | | | | |
| Net income attributable to Whitestone REIT | | $ | 614 |
| | $ | 163 |
| | $ | 2,533 |
| | $ | 1,395 |
|
| Depreciation and amortization | | 3,450 |
| | 2,683 |
| | 9,783 |
| | 7,256 |
|
| Interest expense | | 2,602 |
| | 2,244 |
| | 7,664 |
| | 6,324 |
|
| Provision for income taxes | | 90 |
| | 77 |
| | 227 |
| | 212 |
|
| Loss on disposal of assets | | — |
| | 77 |
| | 48 |
| | 105 |
|
| Net income attributable to noncontrolling interests | | 21 |
| | 9 |
| | 91 |
| | 99 |
|
EBITDA (1) | | $ | 6,777 |
| | $ | 5,253 |
| | $ | 20,346 |
| | $ | 15,391 |
|
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | September 30, 2013 | | June 30, 2013 | | March 31, 2013 | | December 31, 2012 |
| Net income (loss) attributable to Whitestone REIT | | $ | 614 |
| | $ | 970 |
| | $ | 949 |
| | $ | (1,380 | ) |
| Depreciation and amortization | | 3,450 |
| | 3,260 |
| | 3,073 |
| | 2,973 |
|
| Executive relocation expense | | — |
| | — |
| | — |
| | 2,177 |
|
| Interest expense | | 2,602 |
| | 2,613 |
| | 2,449 |
| | 2,408 |
|
| Provision for income taxes | | 90 |
| | 72 |
| | 65 |
| | 74 |
|
| Loss on disposal of assets | | — |
| | 40 |
| | 8 |
| | 7 |
|
| Net income (loss) attributable to noncontrolling interests | | 21 |
| | 33 |
| | 37 |
| | (61 | ) |
EBITDA (1) | | $ | 6,777 |
| | $ | 6,988 |
| | $ | 6,581 |
| | $ | 6,198 |
|
| |
(1) | Earnings Before Interest, Tax, Depreciation and Amortization ("EBITDA"): Management believes that EBITDA is an appropriate supplemental measure of operating performance to net income attributable to the Company. The Company defines EBITDA as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes) and general and administrative expenses, excluding executive relocation costs related to the disposition of the Chief Executive Officer's residence in Cleveland, Ohio pursuant to the executive relocation arrangement approved by the Company's Compensation Committee. Management believes that EBITDA provides useful information to the investment community about the Company's operating performance when compared to other REITs since EBITDA is generally recognized as a standard measure. However, EBITDA should not be viewed as a measure of the Company's overall financial performance since it does not reflect depreciation and amortization, involuntary conversion, interest expense, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties. Other REITs may use different methodologies for calculating EBITDA and, accordingly, the Company's EBITDA may not be comparable to other REITs. |
Whitestone REIT and Subsidiaries OTHER FINANCIAL INFORMATION (in thousands, except number of properties and employees)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| | | | | | | | | |
| Other Financial Information: | | | | | | | | |
| | | | | | | | | |
Tenant improvements (1) | | $ | 939 |
| | $ | 556 |
| | $ | 2,644 |
| | $ | 1,475 |
|
Leasing commissions (1) | | $ | 544 |
| | $ | 211 |
| | $ | 1,100 |
| | $ | 596 |
|
| Scheduled debt principal payments | | $ | 480 |
| | $ | 750 |
| | $ | 2,006 |
| | $ | 2,167 |
|
| Straight line rent income (loss) | | $ | 504 |
| | $ | 218 |
| | $ | 971 |
| | $ | 265 |
|
| Market rent amortization income (loss) from acquired leases | | $ | 14 |
| | $ | (18 | ) | | $ | 63 |
| | $ | (7 | ) |
| Non-cash share-based compensation expense | | $ | 834 |
| | $ | 118 |
| | $ | 1,501 |
| | $ | 384 |
|
| Non-real estate depreciation and amortization | | $ | 23 |
| | $ | 27 |
| | $ | 67 |
| | $ | 96 |
|
| Amortization of loan fees | | $ | 269 |
| | $ | 429 |
| | $ | 823 |
| | $ | 1,063 |
|
| Acquisition costs | | $ | 130 |
| | $ | 338 |
| | $ | 612 |
| | $ | 532 |
|
| Undepreciated value of unencumbered properties | | $ | 284,796 |
| | $ | 187,375 |
| | $ | 284,796 |
| | $ | 187,375 |
|
| Number of unencumbered properties | | 33 |
| | 23 |
| | 33 |
| | 23 |
|
| Full time employees | | 69 |
| | 59 |
| | 69 |
| | 59 |
|
| |
(1) | Does not include first generation costs for tenant improvements and leasing commission costs needed for new acquisitions or redevelopment of a property to bring the property to operating standards for its intended use. |
Whitestone REIT and Subsidiaries
MARKET CAPITALIZATION AND SELECTED RATIOS
(in thousands, except per share amounts and percentages)
|
| | | | | | | | | | |
| | | As of September 30, 2013 |
| MARKET CAPITALIZATION: | | Percent of Total Equity | | Total Market Capitalization | | Percent of Total Market Capitalization |
| Equity Capitalization: | | | | | | |
| Common shares outstanding | | 96.8 | % | | 17,342 |
| | |
| Operating partnership units outstanding | | 3.2 | % | | 572 |
| | |
| Total | | 100.0 | % | | 17,914 |
| | |
| | | | | | | |
| Market price of common shares as of | | | | | | |
| September 30, 2013 | | | | $ | 14.73 |
| | |
| | | | | | | |
| Total equity capitalization | | | | 263,873 |
| | 51 | % |
| | | | | | | |
| Debt Capitalization: | | | | | | |
| Outstanding debt | | | | $ | 266,260 |
| | |
| Less: Cash and cash equivalents | | | | (9,506 | ) | | |
| | | | | 256,754 |
| | 49 | % |
| | | | | | | |
| Total Market Capitalization as of | | | | | | |
| September 30, 2013 | | | | $ | 520,627 |
| | 100 | % |
|
| | | | | | | | | | | | | | | | |
| SELECTED RATIOS: (dollars in thousands) | | | | | | | | |
| | | Three Months Ended |
| | | September 30, 2013 | | June 30, 2013 | | March 31, 2013 | | December 31, 2012 |
| INTEREST COVERAGE RATIO | | | | | | | | |
| EBITDA/Interest Expense | | | | | | | | |
| EBITDA | | $ | 6,777 |
| | $ | 6,988 |
| | $ | 6,581 |
| | $ | 6,198 |
|
| Interest expense, excluding amortization of loan fees | | 2,334 |
| | 2,331 |
| | 2,176 |
| | 2,101 |
|
| Ratio of interest expense to EBITDA | | 2.9 |
| | 3.0 |
| | 3.0 |
| | 3.0 |
|
| | | | | | | | | |
| LEVERAGE RATIO | | | | | | | | |
| Debt/Undepreciated Book Value | | | | | | | | |
| Undepreciated real estate assets | | $ | 483,379 |
| | $ | 481,939 |
| | $ | 436,331 |
| | $ | 409,669 |
|
| | | | | | | | | |
| Outstanding debt | | $ | 266,260 |
| | $ | 266,401 |
| | $ | 216,935 |
| | $ | 190,608 |
|
| Less: Cash | | (9,506 | ) | | (6,020 | ) | | (2,843 | ) | | (6,544 | ) |
| Outstanding debt after cash | | $ | 256,754 |
| | $ | 260,381 |
| | $ | 214,092 |
| | $ | 184,064 |
|
| Ratio of debt to real estate assets | | 53 | % | | 54 | % | | 49 | % | | 45 | % |
Whitestone REIT and Subsidiaries
SUMMARY OF OUTSTANDING DEBT AND DEBT MATURITIES
TOTAL OUTSTANDING DEBT
(in thousands)
|
| | | | | | | | |
| Description | | September 30, 2013 | | December 31, 2012 |
| Fixed rate notes | | | | |
| $1.1 million 4.71% Note, due December 31, 2013 | | $ | 1,087 |
| | $ | 1,087 |
|
$20.2 million 4.2805% Note, due June 6, 2023 (1) | | 20,200 |
| | 13,850 |
|
$3.0 million 6.00% Note, due March 31, 2021 (2) | | 2,914 |
| | 2,943 |
|
| $10.0 million 6.04% Note, due March 1, 2014 | | 8,998 |
| | 9,142 |
|
| $1.5 million 6.50% Note, due March 1, 2014 | | 1,423 |
| | 1,444 |
|
| $11.2 million 6.52% Note, due September 1, 2015 | | 10,487 |
| | 10,609 |
|
$21.4 million 6.53% Notes, due October 1, 2013 (3) | | — |
| | 18,865 |
|
$24.5 million 6.56% Note, due October 1, 2013 (3) | | — |
| | 23,135 |
|
| $9.9 million 6.63% Notes, due March 1, 2014 | | 8,690 |
| | 8,925 |
|
$9.2 million, Prime Rate less 2.00%, due December 29, 2017 (4) | | 7,869 |
| | 7,854 |
|
| $11.1 million 5.87% Note, due August 6, 2016 | | 11,972 |
| | — |
|
| $16.5 million 4.97% Note, due September 26, 2023 | | 16,450 |
| | — |
|
| $0.9 million 2.97% Note, due November 28, 2013 | | 163 |
| | 15 |
|
| Floating rate notes | | | | |
|
Unsecured credit facility, LIBOR plus 1.75% to 2.50%, due February 3, 2017 (5) | | 142,400 |
| | 69,000 |
|
| $26.9 million, LIBOR plus 2.86% Note, due December 1, 2013 | | 23,107 |
| | 23,739 |
|
| $10.5 million, LIBOR plus 2.00% Note, due September 24, 2018 | | $ | 10,500 |
| | $ | — |
|
| | | $ | 266,260 |
| | $ | 190,608 |
|
| |
(1) | Promissory note had an original balance of $14.1 million and an interest rate of 5.695%, due in 2013, which was refinanced in May 2013. |
| |
(2) | The 6.00% interest rate is fixed through March 30, 2016. On March 31, 2016, the interest rate will reset to the rate of interest for a five-year balloon note with a thirty-year amortization as published by the Federal Home Loan Bank. |
| |
(3) | This promissory note was paid in full in August 2013. |
| |
(4) | Promissory note includes an interest rate swap that fixed the interest rate at 5.72% for the duration of the term. |
| |
(4) | We have entered into an interest rate swap that fixed the LIBOR portion of our $50 million term loan under our unsecured credit facility at 0.84%. The swap will begin on January 7, 2014 and will mature on February 3, 2017. |
SCHEDULE OF DEBT MATURITIES AS OF SEPTEMBER 30, 2013
(in thousands)
|
| | | | | | | | | | | | | | | |
| Year | | Scheduled Amortization Payments | | Scheduled Maturities | | Total Scheduled Maturities | | Percentage of Debt Maturing |
| | | | | | | | | |
| 2013 (remainder of year) | | $ | 478 |
| | $ | 24,123 |
| | $ | 24,601 |
| | 9.2 | % |
| 2014 | | 625 |
| | 18,879 |
| | 19,504 |
| | 7.3 | % |
| 2015 | | 880 |
| | 10,146 |
| | 11,026 |
| | 4.1 | % |
| 2016 | | 1,026 |
| | 11,100 |
| | 12,126 |
| | 4.6 | % |
| 2017 | | 947 |
| | 150,238 |
| | 151,185 |
| | 56.8 | % |
| 2018 and thereafter | | 4,307 |
| | 43,511 |
| | 47,818 |
| | 18.0 | % |
| Total | | $ | 8,263 |
| | $ | 257,997 |
| | $ | 266,260 |
| | 100.0 | % |
Whitestone REIT and Subsidiaries SUMMARY OF OCCUPANCY AND TOP TENANTS
|
| | | | | | | | | | | | | | | |
| | | Gross Leasable Area as of | | Occupancy % as of |
| Community Centered Properties | | September 30, 2013 | | September 30, 2013 | | June 30, 2013 | | March 31, 2013 | | December 31, 2012 |
| Retail | | 2,291,617 |
| | 87 | % | | 89 | % | | 87 | % | | 88 | % |
| Office/Flex | | 1,201,672 |
| | 88 | % | | 87 | % | | 87 | % | | 89 | % |
| Office | | 633,534 |
| | 77 | % | | 79 | % | | 77 | % | | 78 | % |
| Total - Operating Portfolio | | 4,126,823 |
| | 86 | % | | 87 | % | | 86 | % | | 87 | % |
Redevelopment, New Acquisitions (1) | | 470,718 |
| | 77 | % | | 74 | % | | 72 | % | | 70 | % |
| Total | | 4,597,541 |
| | 85 | % | | 86 | % | | 84 | % | | 85 | % |
| |
(1) | Includes new acquisitions through the earlier of attainment of 90% occupancy or 18 months of ownership, and properties that are undergoing significant redevelopment or re-tenanting. |
|
| | | | | | | | | | | | | |
| Tenant Name | | Location | | Annualized Base Rental Revenue (in thousands) | | Percentage of Total Annualized Base Rental Revenues (1) | | Initial Lease Date | | Year Expiring |
| | | | | | | | | | | |
Safeway Stores, Incorporated (2) | | Phoenix | | $ | 770 |
| | 1.6 | % | | 07/12/2000 and 05/08/1991 | | 2020 and 2021 |
| University of Phoenix | | San Antonio | | 500 |
| | 1.0 | % | | 10/18/2010 | | 2018 |
| Sports Authority | | San Antonio | | 495 |
| | 1.0 | % | | 1/1/2004 | | 2015 |
Walgreens Co. (3) | | Phoenix | | 448 |
| | 0.9 | % | | 11/05/1996 and 11/02/1987 | | 2049 and 2027 |
| Super Bravo, Inc | | Houston | | 349 |
| | 0.7 | % | | 6/15/2011 | | 2023 |
| Rock Solid Images | | Houston | | 342 |
| | 0.7 | % | | 4/1/2004 | | 2013 |
| Sterling Jewelers Inc | | Phoenix | | 326 |
| | 0.7 | % | | 11/23/2004 | | 2020 |
KinderCare Learning Centers LLC (4) | | Phoenix | | 322 |
| | 0.7 | % | | 05/07/2001 and 09/14/1999 | | 2021 and 2035 |
| Barnes & Noble Booksellers, Inc | | Phoenix | | 314 |
| | 0.6 | % | | 4/5/2004 | | 2014 |
| X-Ray Press Corporation | | Houston | | 291 |
| | 0.6 | % | | 7/1/1998 | | 2019 |
| Air Liquide America, L.P. | | Dallas | | 275 |
| | 0.6 | % | | 8/1/2001 | | 2013 |
Ross Stores, Inc. (5) | | Houston, San Antonio and Phoenix | | 268 |
| | 0.5 | % | | 02/07/2013, 06/18/2012 and 11/01/2010 | | 2023 and 2020 |
| Marshall's | | Houston | | 264 |
| | 0.5 | % | | 5/12/1983 | | 2018 |
| Merrill Corporation | | Dallas | | 261 |
| | 0.5 | % | | 12/10/2001 | | 2014 |
| Mini Skool Early Learning Centers, Inc. | | Phoenix | | 254 |
| | 0.5 | % | | 7/1/2009 | | 2019 |
| | | | | $ | 5,479 |
| | 11.1 | % | | | | |
| |
(1) | Annualized Base Rental Revenues represents the monthly base rent as of September 30, 2013 for each applicable tenant multiplied by 12. |
| |
(2) | As of September 30, 2013, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on July 12, 2000, and is scheduled to expire in 2020, was $425,000, which represents 0.9% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on May 8, 1991, and is scheduled to expire in 2021, was $344,000, which represents 0.7% of our total annualized base rental revenue. |
| |
(3) | As of September 30, 2013, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on November 5, 1996, and is scheduled to expire in 2049, was $279,000, which represents 0.6% of out total annualized base rental revenue. The annualized rental revenue for the lease that commenced on November 2, 1987, and is scheduled to expire in 2027, was $169,000, which represents 0.3% of our total annualized base rental revenue. |
| |
(4) | As of September 30, 2013, we had two leases with the same tenant occupying space at properties located in Phoenix. The annualized rental revenue for the lease that commenced on May 7, 2001, and is scheduled to expire in 2021, was $270,000, which represents 0.6% of our total annualized base rental revenue. The annualized rental revenue for the lease that commenced on September 14, 1999, and is scheduled to expire in 2035, was $55,000, which represents 0.1% of our total annualized base rental revenue. |
| |
(5) | As of September 30, 2013, we had three leases with the same tenant occupying space at properties located in Houston, San Antonio and Phoenix. The Houston lease commenced on February 7, 2013 and is scheduled to expire in 2023. The annualized rental revenue for this location was $158,000, which represents 0.3% of our total annualized base rental revenue. The San Antonio lease commenced on June 18, 2012 and is scheduled to expire in 2023. Due to a co-tenancy clause in the lease, the annualized rental revenue for this location was $0. The Phoenix lease commenced on November 1, 2010 and is scheduled to expire in 2020. The annualized rental revenue was $110,000, which represents 0.2% of our total annualized base rental revenue. |
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| RENEWALS | | | | | | | | |
| Number of Leases | | 34 |
| | 24 |
| | 116 |
| | 114 |
|
Total Square Feet (1) | | 125,277 |
| | 59,099 |
| | 287,325 |
| | 240,943 |
|
| Average Square Feet | | 3,685 |
| | 2,462 |
| | 2,477 |
| | 2,114 |
|
| Total Lease Value | | $ | 4,473,000 |
| | $ | 1,910,000 |
| | $ | 13,395,000 |
| | $ | 10,624,000 |
|
| NEW LEASES | | | | | | | | |
| Number of Leases | | 64 |
| | 39 |
| | 140 |
| | 131 |
|
Total Square Feet (1) | | 135,094 |
| | 84,823 |
| | 311,552 |
| | 251,711 |
|
| Average Square Feet | | 2,111 |
| | 2,175 |
| | 2,225 |
| | 1,921 |
|
| Total Lease Value | | $ | 8,538,000 |
| | $ | 5,763,000 |
| | $ | 20,006,000 |
| | $ | 13,346,000 |
|
| TOTAL LEASES | | | | | | | | |
| Number of Leases | | 98 |
| | 63 |
| | 256 |
| | 245 |
|
Total Square Feet (1) | | 260,371 |
| | 143,922 |
| | 598,877 |
| | 492,654 |
|
| Average Square Feet | | 2,657 |
| | 2,284 |
| | 2,339 |
| | 2,011 |
|
| Total Lease Value | | $ | 13,011,000 |
| | $ | 7,673,000 |
| | $ | 33,401,000 |
| | $ | 23,970,000 |
|
| |
(1) | Represents the square footage as the result of new, renewal, expansion and contraction leases. |
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Type | | Number of Leases Signed | | Lease Value Signed | | GLA Signed | | Weighted Average Lease Term (2) | | TI and Incentives (3) | | TI and Incentives per Sq. Ft. | | Contractual Rent Per Sq. Ft. (4) | | Prior Contractual Rent Per Sq. Ft. (5) | | Annual Increase (Decrease) in Contractual Rent | | Cash Basis Increase (Decrease) Over Prior Rent | | Annual Increase (Decrease) in Straight-lined Rent | | Straight-lined Basis Increase (Decrease) Over Prior Rent |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Comparable: (1) | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Comparable Total Leases: | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 53 |
| | $ | 5,753,820 |
| | 156,660 |
| | 2.9 |
| | $ | 534,534 |
| | $ | 3.41 |
| | $ | 12.91 |
| | $ | 13.72 |
| | $ | (127,771 | ) | | (5.9 | )% | | $ | (60,495 | ) | | (2.9 | )% |
| 2nd Quarter 2013 | | 28 |
| | 3,059,381 |
| | 48,620 |
| | 3.2 |
| | 117,774 |
| | 2.42 |
| | 14.44 |
| | 14.89 |
| | (21,921 | ) | | (3.0 | )% | | 44,137 |
| | 6.3 | % |
| 1st Quarter 2013 | | 44 |
| | 2,177,934 |
| | 64,759 |
| | 2.5 |
| | 79,790 |
| | 1.23 |
| | 12.95 |
| | 13.12 |
| | (11,028 | ) | | (1.3 | )% | | 40,186 |
| | 4.9 | % |
| 4th Quarter 2012 | | 45 |
| | 3,137,053 |
| | 125,999 |
| | 3.2 |
| | 398,310 |
| | 3.16 |
| | 11.36 |
| | 11.62 |
| | (32,232 | ) | | (2.2 | )% | | 39,065 |
| | 3.3 | % |
| Total - 12 months | | 170 |
| | $ | 14,128,188 |
| | 396,038 |
| | 3.0 |
| | $ | 1,130,408 |
| | $ | 2.85 |
| | $ | 12.61 |
| | $ | 13.10 |
| | $ | (192,952 | ) | | (3.7 | )% | | $ | 62,893 |
| | 1.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Comparable New Leases: | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 21 |
| | $ | 1,313,538 |
| | 34,583 |
| | 3.0 |
| | $ | 117,321 |
| | $ | 3.39 |
| | $ | 10.99 |
| | $ | 12.30 |
| | $ | (45,062 | ) | | (10.7 | )% | | $ | (28,611 | ) | | (7.0 | )% |
| 2nd Quarter 2013 | | 9 |
| | 524,647 |
| | 15,182 |
| | 2.2 |
| | 64,652 |
| | 4.26 |
| | 9.08 |
| | 10.22 |
| | (17,280 | ) | | (11.2 | )% | | 9,852 |
| | 6.9 | % |
| 1st Quarter 2013 | | 8 |
| | 456,268 |
| | 12,577 |
| | 2.8 |
| | 20,581 |
| | 1.64 |
| | 11.41 |
| | 11.48 |
| | (948 | ) | | (0.6 | )% | | 19,284 |
| | 14.6 | % |
| 4th Quarter 2012 | | 11 |
| | 735,111 |
| | 19,142 |
| | 3.2 |
| | 117,495 |
| | 6.14 |
| | 11.45 |
| | 13.15 |
| | (32,549 | ) | | (12.9 | )% | | (15,744 | ) | | (6.6 | )% |
| Total - 12 months | | 49 |
| | $ | 3,029,564 |
| | 81,484 |
| | 2.9 |
| | $ | 320,049 |
| | $ | 3.93 |
| | $ | 10.81 |
| | $ | 11.98 |
| | $ | (95,839 | ) | | (9.8 | )% | | $ | (15,219 | ) | | (1.6 | )% |
| | | | | | | | | | | | | | | | |
|
| | | | | | | | |
| Comparable Renewal Leases: | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 32 |
| | $ | 4,440,282 |
| | 122,077 |
| | 2.9 |
| | $ | 417,213 |
| | $ | 3.42 |
| | $ | 13.45 |
| | $ | 14.13 |
| | $ | (82,709 | ) | | (4.8 | )% | | $ | (31,884 | ) | | (1.9 | )% |
| 2nd Quarter 2013 | | 19 |
| | 2,534,734 |
| | 33,438 |
| | 3.7 |
| | 53,122 |
| | 1.59 |
| | 16.88 |
| | 17.02 |
| | (4,641 | ) | | (0.8 | )% | | 34,285 |
| | 6.2 | % |
| 1st Quarter 2013 | | 36 |
| | 1,721,666 |
| | 52,182 |
| | 2.4 |
| | 59,209 |
| | 1.13 |
| | 13.32 |
| | 13.51 |
| | (10,080 | ) | | (1.4 | )% | | 20,902 |
| | 3.1 | % |
| 4th Quarter 2012 | | 34 |
| | 2,401,942 |
| | 106,857 |
| | 3.2 |
| | 280,815 |
| | 2.63 |
| | 11.34 |
| | 11.34 |
| | 317 |
| | — | % | | 54,809 |
| | 5.8 | % |
| Total - 12 months | | 121 |
| | $ | 11,098,624 |
| | 314,554 |
| | 3.0 |
| | $ | 810,359 |
| | $ | 2.58 |
| | $ | 13.08 |
| | $ | 13.39 |
|
| $ | (97,113 | ) | | (2.3 | )% | | $ | 78,112 |
| | 2.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY (continued) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Type | | Number of Leases Signed | | Lease Value Signed | | GLA Signed | | Weighted Average Lease Term (2) | | TI and Incentives (3) | | TI and Incentives per Sq. Ft. | | Contractual Rent Per Sq. Ft. (4) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-comparable: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-Comparable Total Leases: | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 45 |
| | $ | 7,256,999 |
| | 109,219 |
| | 3.9 |
| | $ | 1,120,481 |
| | $ | 10.26 |
| | $ | 12.48 |
| | | | | | | | | | |
| 2nd Quarter 2013 | | 59 |
| | 10,250,630 |
| | 220,446 |
| | 4.2 |
| | 1,131,700 |
| | 5.13 |
| | 10.42 |
| | | | | | | | | | |
| 1st Quarter 2013 | | 27 |
| | 4,902,083 |
| | 87,641 |
| | 4.9 |
| | 637,970 |
| | 7.28 |
| | 11.21 |
| | | | | | | | | | |
| 4th Quarter 2012 | | 33 |
| | 8,116,860 |
| | 116,384 |
| | 4.9 |
| | 1,351,377 |
| | 11.61 |
| | 13.70 |
| | | | | | | | | | |
| Total - 12 months | | 164 |
| | $ | 30,526,572 |
| | 533,690 |
| | 4.5 |
| | $ | 4,241,528 |
| | $ | 7.95 |
| | $ | 11.69 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-Comparable New Leases: | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 43 |
| | $ | 7,223,892 |
| | 106,019 |
| | 4.0 |
| | $ | 1,120,170 |
| | $ | 10.57 |
| | $ | 12.53 |
| | | | | | | | | | |
| 2nd Quarter 2013 | | 41 |
| | 7,412,645 |
| | 137,293 |
| | 4.4 |
| | 803,627 |
| | 5.85 |
| | 11.22 |
| | | | | | | | | | |
| 1st Quarter 2013 | | 18 |
| | 3,074,881 |
| | 57,506 |
| | 5.3 |
| | 370,645 |
| | 6.45 |
| | 9.90 |
| | | | | | | | | | |
| 4th Quarter 2012 | | 30 |
| | 7,206,883 |
| | 103,297 |
| | 4.9 |
| | 1,217,136 |
| | 11.78 |
| | 13.67 |
| | | | | | | | | | |
| Total - 12 months | | 132 |
| | $ | 24,918,301 |
| | 404,115 |
| | 4.6 |
| | $ | 3,511,578 |
| | $ | 8.69 |
| | $ | 12.00 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-Comparable Renewal Leases: | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 2 |
| | $ | 33,107 |
| | 3,200 |
| | 0.9 |
| | $ | 311 |
| | $ | 0.10 |
| | $ | 10.50 |
| | | | | | | | | | |
| 2nd Quarter 2013 | | 18 |
| | 2,837,985 |
| | 83,153 |
| | 3.9 |
| | 328,073 |
| | 3.95 |
| | 9.11 |
| | | | | | | | | | |
| 1st Quarter 2013 | | 9 |
| | 1,827,202 |
| | 30,135 |
| | 4.2 |
| | 267,325 |
| | 8.87 |
| | 13.71 |
| | | | | | | | | | |
| 4th Quarter 2012 | | 3 |
| | 909,977 |
| | 13,087 |
| | 4.7 |
| | 134,241 |
| | 10.26 |
| | 13.95 |
| | | | | | | | | | |
| Total - 12 months | | 32 |
| | $ | 5,608,271 |
| | 129,575 |
| | 4.0 |
| | $ | 729,950 |
| | $ | 5.63 |
| | $ | 10.70 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY (continued) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Type | | Number of Leases Signed | | Lease Value Signed | | GLA Signed | | Weighted Average Lease Term (2) | | TI and Incentives (3) | | TI and Incentives per Sq. Ft. | | Contractual Rent Per Sq. Ft. (4) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| New & Renewal | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 98 |
| | $ | 13,010,819 |
| | 265,879 |
| | 3.3 |
| | $ | 1,655,015 |
| | $ | 6.22 |
| | $ | 12.73 |
| | | | | | | | | | |
| 2nd Quarter 2013 | | 87 |
| | 13,310,011 |
| | 269,066 |
| | 4.1 |
| | 1,249,474 |
| | 4.64 |
| | 11.15 |
| | | | | | | | | | |
| 1st Quarter 2013 | | 71 |
| | 7,080,017 |
| | 152,400 |
| | 3.9 |
| | 717,760 |
| | 4.71 |
| | 11.95 |
| | | | | | | | | | |
| 4th Quarter 2012 | | 78 |
| | 11,253,913 |
| | 242,383 |
| | 4.0 |
| | 1,749,687 |
| | 7.22 |
| | 12.48 |
| | | | | | | | | | |
| Total - 12 months | | 334 |
| | $ | 44,654,760 |
| | 929,728 |
| | 3.8 |
| | $ | 5,371,936 |
| | $ | 5.78 |
| | $ | 12.08 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| New | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 64 |
| | $ | 8,537,430 |
| | 140,602 |
| | 3.7 |
| | $ | 1,237,491 |
| | $ | 8.80 |
| | $ | 12.16 |
| | | | | | | | | | |
| 2nd Quarter 2013 | | 50 |
| | 7,937,292 |
| | 152,475 |
| | 4.2 |
| | 868,279 |
| | 5.69 |
| | 11.01 |
| | | | | | | | | | |
| 1st Quarter 2013 | | 26 |
| | 3,531,149 |
| | 70,083 |
| | 4.9 |
| | 391,226 |
| | 5.58 |
| | 10.17 |
| | | | | | | | | | |
| 4th Quarter 2012 | | 41 |
| | 7,941,994 |
| | 122,439 |
| | 4.6 |
| | 1,334,631 |
| | 10.90 |
| | 13.32 |
| | | | | | | | | | |
| Total - 12 months | | 181 |
| | $ | 27,947,865 |
| | 485,599 |
| | 4.3 |
| | $ | 3,831,627 |
| | $ | 7.89 |
| | $ | 11.80 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Renewal | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Quarter 2013 | | 34 |
| | $ | 4,473,389 |
| | 125,277 |
| | 2.9 |
| | $ | 417,524 |
| | $ | 3.33 |
| | $ | 13.38 |
| | | | | | | | | | |
| 2nd Quarter 2013 | | 37 |
| | 5,372,719 |
| | 116,591 |
| | 3.9 |
| | 381,195 |
| | 3.27 |
| | 11.34 |
| | | | | | | | | | |
| 1st Quarter 2013 | | 45 |
| | 3,548,868 |
| | 82,317 |
| | 3.0 |
| | 326,534 |
| | 3.97 |
| | 13.46 |
| | | | | | | | | | |
| 4th Quarter 2012 | | 37 |
| | 3,311,919 |
| | 119,944 |
| | 3.3 |
| | 415,056 |
| | 3.46 |
| | 11.63 |
| | | | | | | | | | |
| Total - 12 months | | 153 |
| | $ | 16,706,895 |
| | 444,129 |
| | 3.3 |
| | $ | 1,540,309 |
| | $ | 3.47 |
| | $ | 12.38 |
| | | | | | | | | | |
| |
(1) | Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage. |
| |
(2) | Weighted average of tenant improvements (TI) and incentives is determined on the basis of square footage. |
| |
(3) | Estimated amount per signed lease. Actual cost of construction may vary. Does not include first generation costs for TI and leasing commission costs needed for new acquisitions or redevelopment of a property to bring the property to operating standards for its intended use. |
| |
(4) | Contractual rent represents contractual minimum rent under the new lease for the first month, excluding concessions. |
| |
(5) | Prior contractual rent represents contractual minimum rent under the prior lease for the final month. |
Whitestone REIT and Subsidiaries LEASE EXPIRATIONS(1)
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Annualized Base Rent(2) |
| | | | | Gross Leasable Area | | as of September 30, 2013 |
| Year | | Number of
Leases | | Square Feet | | Percent
of Gross Leasable Area | | Amount
(in thousands) | | Percent of
Total | | Per Square Foot |
| 2013 | | 152 |
| | 279,232 |
| | 6.1 | % | | $ | 3,487 |
| | 12.4 | % | | $ | 12.49 |
|
| 2014 | | 302 |
| | 757,377 |
| | 16.5 | % | | 9,504 |
| | 20.9 | % | | 12.55 |
|
| 2015 | | 214 |
| | 668,680 |
| | 14.5 | % | | 7,842 |
| | 13.9 | % | | 11.73 |
|
| 2016 | | 173 |
| | 505,124 |
| | 11.0 | % | | 6,549 |
| | 12.7 | % | | 12.97 |
|
| 2017 | | 122 |
| | 409,305 |
| | 8.9 | % | | 5,945 |
| | 12.2 | % | | 14.52 |
|
| 2018 | | 99 |
| | 458,228 |
| | 10.0 | % | | 5,378 |
| | 9.0 | % | | 11.74 |
|
| 2019 | | 30 |
| | 173,182 |
| | 3.8 | % | | 2,501 |
| | 4.8 | % | | 14.44 |
|
| 2020 | | 16 |
| | 130,932 |
| | 2.8 | % | | 1,720 |
| | 3.6 | % | | 13.14 |
|
| 2021 | | 15 |
| | 141,184 |
| | 3.1 | % | | 1,721 |
| | 3.6 | % | | 12.19 |
|
| 2022 | | 19 |
| | 151,571 |
| | 3.3 | % | | 1,758 |
| | 3.6 | % | | 11.60 |
|
| Total | | 1,142 |
| | 3,674,815 |
| | 80.0 | % | | $ | 46,405 |
| | 96.7 | % | | $ | 12.63 |
|
| |
(1) | Lease expirations table reflects rents in place as of September 30, 2013, and does not include option periods. |
| |
(2) | Annualized Base Rent represents the monthly base rent as of September 30, 2013 for each tenant multiplied by 12. |
Whitestone REIT and Subsidiaries Property Details As of September 30, 2013 |
| | | | | | | | | | | | | | | | | | | | | | |
Community Name | | Location | | Year Built/ Renovated | | Gross Leasable Area | | Percent Occupied | | Annualized Base Rental Revenue (in thousands) (1) | | Average Base Rental Revenue Per Sq. Ft. (2) | | Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3) |
| Retail Communities: | | | | | | | | | | | | | | |
| Ahwatukee Plaza | | Phoenix | | 1979 | | 72,650 |
| | 100 | % | | $ | 896 |
| | $ | 12.33 |
| | $ | 13.19 |
|
| Anthem Marketplace | | Phoenix | | 2000 | | 113,293 |
| | 100 | % | | 1,501 |
| | 13.25 |
| | 13.25 |
|
| Bellnott Square | | Houston | | 1982 | | 73,930 |
| | 39 | % | | 302 |
| | 10.47 |
| | 10.46 |
|
| Bissonnet/Beltway | | Houston | | 1978 | | 29,205 |
| | 100 | % | | 329 |
| | 11.27 |
| | 10.92 |
|
| Centre South | | Houston | | 1974 | | 39,134 |
| | 94 | % | | 288 |
| | 7.83 |
| | 7.76 |
|
| The Citadel | | Phoenix | | 1985 | | 28,547 |
| | 80 | % | | 367 |
| | 16.07 |
| | 15.64 |
|
| Desert Canyon | | Phoenix | | 2000 | | 62,533 |
| | 77 | % | | 533 |
| | 11.07 |
| | 11.79 |
|
| Gilbert Tuscany Village | | Phoenix | | 2009 | | 49,415 |
| | 49 | % | | 410 |
| | 16.93 |
| | 18.18 |
|
| Holly Knight | | Houston | | 1984 | | 20,015 |
| | 100 | % | | 324 |
| | 16.19 |
| | 18.17 |
|
| Headquarters Village | | Dallas | | 2009 | | 89,134 |
| | 94 | % | | 2,191 |
| | 26.15 |
| | 27.55 |
|
| Kempwood Plaza | | Houston | | 1974 | | 101,008 |
| | 94 | % | | 802 |
| | 8.45 |
| | 8.70 |
|
| Lion Square | | Houston | | 1980 | | 117,592 |
| | 78 | % | | 979 |
| | 10.67 |
| | 10.89 |
|
| MarketPlace At Central | | Phoenix | | 2000 | | 111,130 |
| | 47 | % | | 418 |
| | 8.00 |
| | 8.69 |
|
| Mercado at Scottsdale Ranch | | Phoenix | | 1987 | | 118,730 |
| | 100 | % | | 1,631 |
| | 13.74 |
| | 13.74 |
|
| Paradise Plaza | | Phoenix | | 1993 | | 125,898 |
| | 93 | % | | 1,596 |
| | 13.63 |
| | 14.39 |
|
| Pinnacle of Scottsdale | | Phoenix | | 1991 | | 113,108 |
| | 94 | % | | 1,828 |
| | 17.19 |
| | 18.04 |
|
| Providence | | Houston | | 1980 | | 90,327 |
| | 83 | % | | 652 |
| | 8.70 |
| | 8.06 |
|
| Shaver | | Houston | | 1978 | | 21,926 |
| | 93 | % | | 259 |
| | 12.70 |
| | 12.13 |
|
| Shops at Pecos Ranch | | Phoenix | | 2009 | | 78,767 |
| | 97 | % | | 1,631 |
| | 21.35 |
| | 21.41 |
|
| Shops at Starwood | | Dallas | | 2006 | | 55,385 |
| | 97 | % | | 1,396 |
| | 25.98 |
| | 27.53 |
|
| South Richey | | Houston | | 1980 | | 69,928 |
| | 98 | % | | 626 |
| | 9.13 |
| | 11.57 |
|
| Spoerlein Commons | | Chicago | | 1987 | | 41,455 |
| | 91 | % | | 771 |
| | 20.44 |
| | 20.01 |
|
| SugarPark Plaza | | Houston | | 1974 | | 95,032 |
| | 100 | % | | 1,035 |
| | 10.89 |
| | 10.73 |
|
| Sunridge | | Houston | | 1979 | | 49,359 |
| | 89 | % | | 421 |
| | 9.58 |
| | 9.37 |
|
| Terravita Marketplace | | Phoenix | | 1997 | | 102,733 |
| | 95 | % | | 1,315 |
| | 13.47 |
| | 13.57 |
|
| Torrey Square | | Houston | | 1983 | | 105,766 |
| | 88 | % | | 734 |
| | 7.89 |
| | 7.60 |
|
| Town Park | | Houston | | 1978 | | 43,526 |
| | 100 | % | | 818 |
| | 18.79 |
| | 18.59 |
|
| Webster Point | | Houston | | 1984 | | 26,060 |
| | 79 | % | | 223 |
| | 10.83 |
| | 10.79 |
|
| Westchase | | Houston | | 1978 | | 49,573 |
| | 88 | % | | 543 |
| | 12.45 |
| | 12.30 |
|
| Windsor Park | | San Antonio | | 1992 | | 196,458 |
| | 85 | % | | 1,653 |
| | 9.90 |
| | 9.48 |
|
| | | | | | | 2,291,617 |
| | 87 | % | | 26,472 |
| | 13.28 |
| | 13.53 |
|
| Office/Flex Communities: | | | | | | | | | | | | | | |
| Brookhill | | Houston | | 1979 | | 74,757 |
| | 87 | % | | $ | 243 |
| | $ | 3.74 |
| | $ | 3.73 |
|
| Corporate Park Northwest | | Houston | | 1981 | | 185,627 |
| | 77 | % | | 1,498 |
| | 10.48 |
| | 10.98 |
|
| Corporate Park West | | Houston | | 1999 | | 175,665 |
| | 94 | % | | 1,503 |
| | 9.10 |
| | 9.18 |
|
| Corporate Park Woodland | | Houston | | 2000 | | 99,937 |
| | 100 | % | | 945 |
| | 9.46 |
| | 9.49 |
|
| Dairy Ashford | | Houston | | 1981 | | 42,902 |
| | 99 | % | | 237 |
| | 5.58 |
| | 5.75 |
|
| Holly Hall | | Houston | | 1980 | | 90,000 |
| | 100 | % | | 757 |
| | 8.41 |
| | 8.26 |
|
| Interstate 10 | | Houston | | 1980 | | 151,000 |
| | 82 | % | | 683 |
| | 5.52 |
| | 5.48 |
|
Whitestone REIT and Subsidiaries Property Details As of September 30, 2013 (continued)
|
| | | | | | | | | | | | | | | | | | | | | | |
Community Name | | Location | | Year Built/ Renovated | | Gross Leasable Area | | Percent Occupied | | Annualized Base Rental Revenue (in thousands) (1) | | Average Base Rental Revenue Per Sq. Ft. (2) | | Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3) |
| Main Park | | Houston | | 1982 | | 113,410 |
| | 100 | % | | 762 |
| | 6.72 |
| | 6.63 |
|
| Plaza Park | | Houston | | 1982 | | 105,530 |
| | 65 | % | | 633 |
| | 9.23 |
| | 10.01 |
|
| Westbelt Plaza | | Houston | | 1978 | | 65,619 |
| | 81 | % | | 436 |
| | 8.20 |
| | 7.64 |
|
| Westgate | | Houston | | 1984 | | 97,225 |
| | 100 | % | | 589 |
| | 6.06 |
| | 6.02 |
|
| | | | | | | 1,201,672 |
| | 88 | % | | 8,286 |
| | 7.84 |
| | 7.88 |
|
| Office Communities: | | | | | | | | | | | | | | |
| 9101 LBJ Freeway | | Dallas | | 1985 | | 125,874 |
| | 60 | % | | $ | 1,095 |
| | $ | 14.50 |
| | $ | 15.17 |
|
| Featherwood | | Houston | | 1983 | | 49,760 |
| | 91 | % | | 822 |
| | 18.15 |
| | 18.62 |
|
| Pima Norte | | Phoenix | | 2007 | | 35,110 |
| | 26 | % | | 163 |
| | 17.86 |
| | 17.60 |
|
| Royal Crest | | Houston | | 1984 | | 24,900 |
| | 70 | % | | 215 |
| | 12.34 |
| | 12.00 |
|
| Uptown Tower | | Dallas | | 1982 | | 253,981 |
| | 82 | % | | 3,598 |
| | 17.28 |
| | 17.28 |
|
| Woodlake Plaza | | Houston | | 1974 | | 106,169 |
| | 93 | % | | 1,324 |
| | 13.41 |
| | 14.73 |
|
| Zeta Building | | Houston | | 1982 | | 37,740 |
| | 89 | % | | 574 |
| | 17.09 |
| | 16.23 |
|
| | | | | | | 633,534 |
| | 77 | % | | 7,791 |
| | 15.97 |
| | 16.26 |
|
| | | | | | | | | | | | | | | |
| Total/Weighted Average- Operating Portfolio | | | | | | 4,126,823 |
| | 86 | % | | 42,549 |
| | 11.99 |
| | 12.22 |
|
| | | | | | | | | | | | | | | |
| Dana Park | | Phoenix | | 2007 | | 310,979 |
| | 80 | % | | $ | 4,002 |
| | $ | 16.09 |
| | $ | 17.40 |
|
| Fountain Square | | Phoenix | | 1986 | | 118,209 |
| | 71 | % | | 1,245 |
| | 14.83 |
| | 17.15 |
|
| The Shops at Pinnacle Peak | | Phoenix | | 2000 | | 41,530 |
| | 70 | % | | 550 |
| | 18.92 |
| | 19.15 |
|
| Total/Weighted Average - Development Portfolio | | | | | | 470,718 |
| | 77 | % | | 5,797 |
| | 15.99 |
| | 17.47 |
|
| | | | | | | | | | | | | | | |
| Anthem Marketplace | | Phoenix | | | | — |
| | — | % | | $ | — |
| | $ | — |
| | $ | — |
|
| Dana Park Development | | Phoenix | | | | — |
| | — | % | | — |
| | — |
| | — |
|
| Pinnacle Phase II | | Phoenix | | | | — |
| | — | % | | — |
| | — |
| | — |
|
| Shops at Starwood Phase III | | Dallas | | | | — |
| | — | % | | — |
| | — |
| | — |
|
Total/Weighted Average - Property Held For Development (4) | | | | | | — |
| | — | % | | — |
| | — |
| | — |
|
| | | | | | | | | | | | | | | |
| Grand Total/Weighted Average | | | | | | 4,597,541 |
| | 85 | % | | $ | 48,346 |
| | $ | 12.37 |
| | $ | 12.71 |
|
| |
(1) | Calculated as the tenant's actual September 30, 2013 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of September 30, 2013. Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with generally accepted accounting principles, historical results differ from the annualized amounts. Total abatements for leases in effect as of September 30, 2013 equaled approximately $139,000 for the month ended September 30, 2013. |
| |
(2) | Calculated as annualized base rent divided by square feet leased as of September 30, 2013. Excludes vacant space as of September 30, 2013. |
| |
(3) | Represents (i) the contractual base rent for leases in place as of September 30, 2013, calculated on a straight-line basis to reflect changes in rental rates throughout the lease term and amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (ii) square footage under commenced leases as of September 30, 2013. |
| |
(4) | As of September 30, 2013, these properties are held for development with no gross leasable area. |
