Whitestone Provides Third Quarter 2020 Business Update Related to COVID-19
October 06 2020 - 6:00AM
Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”), a
leading owner and operator of open-air, e-commerce resistant,
lifestyle community-centered retail properties located in the
largest, fastest-growing and most affluent Texas and Arizona
markets in the Sunbelt, provides a business update regarding
operations and third quarter rental collections.
- All 53 properties are open and operating;
- 52 of 53 properties, representing 99.3% of revenues, are
located in the business-friendly states of Texas and Arizona;
- 97% of our tenants are open and operating based on annualized
base rent (ABR); 90% of total Third Quarter 2020 billed recurring
rents have been collected, up from 81% reporting in the Second
Quarter 2020; and
- Approximately 3% of our billed recurring rents in Q3-2020 have
been deferred through the entry into rent deferral agreements with
tenants.
Chairman and CEO Jim Mastandrea commented: “Whitestone’s
industry leading collections in strategically-chosen, high growth
markets continue to outperform the industry. Our team’s reaction
and their commitment to working with our tenants during the
COVID-19 pandemic is a testament of Whitestone’s character and
philosophy. The team’s dedication and the strength of our rental
collections continue to substantiate the proven investment quality
of retail real estate assets that focus on entrepreneurial tenants
serving the lifestyle needs of the local neighborhood
consumer.”
Mastandrea continued: “By contrast, national retail tenants
selling primarily soft and hard goods have announced store closures
that reached a record high of over 10,000 stores in the first half
of 2020 with 29 national retailers filing bankruptcy so far this
year(1), while Whitestone experienced only 10 tenants out of our
total 1,386 tenants, or less than 0.5% of our ABR as of Sept. 30th
2020, that closed due to bankruptcy filings.”
Mastandrea added: “When the pandemic was declared in March 2020,
it created a dynamic that caused the US economy to essentially drop
off a cliff. When it did, we worked closely with our tenant base to
help them stabilize and begin the recovery process, thus protecting
Whitestone’s net cash flow. Through these steps, we have a
well-covered dividend, with an annual yield of approximately 7%,
that is paid monthly.”
Mastandrea concluded: “We believe this attractive yield, coupled
with the significant COVID-induced discount to our NAV that our
share price is currently trading at, presents an exceptionally
unique value opportunity to the astute investor.”
About Whitestone REITWhitestone is a
community-centered shopping center REIT that acquires, owns,
manages, develops and redevelops high-quality neighborhood centers
primarily in the largest, fastest-growing and most affluent markets
in the Sunbelt. Whitestone seeks to create Communities That Thrive
through Creating Local Connections between consumers in the
surrounding communities and a well-crafted mix of national,
regional, and local tenants that provide daily necessities, needed
services, entertainment, and experiences. Whitestone is a monthly
dividend paying stock and has consistently paid dividends for over
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.
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: Wall Street Journal,
9/30/2020Contact Whitestone REIT:Kevin
ReedDirector of Investor Relations(713)
435-2219ir@whitestonereit.com
Whitestone REIT (NYSE:WSR)
Historical Stock Chart
From Apr 2024 to May 2024
Whitestone REIT (NYSE:WSR)
Historical Stock Chart
From May 2023 to May 2024