Whitestone REIT’s Fourth Quarter 2011 Leasing on Track with Increase in Occupancy Over 2010
Small Tenant Leases Drive Occupancy Increase of 1% to 87% versus Fourth Quarter 2010
HOUSTON--(BUSINESS WIRE)-- Whitestone REIT (WSR) (Whitestone), a real estate investment trust that acquires, owns and operates Community Centered Properties TM, today reported occupancy and leasing highlights for the fourth quarter, ended December 31, 2011. The physical occupancy of its Operating Portfolio1 was 87% as of December 31, 2011, a one percent increase over the prior year ended December 31, 2010 and prior quarter ended September 30, 2011. The Companys total occupancy including all centers was 84% as of the end of the current quarter, unchanged from September 30, 2011.
Whitestones leasing team signed 88 leases totaling 161,000 square feet in new and renewal leases during the fourth quarter, and currently has over 900 total tenants, of which 72% lease less than 3,000 square feet in multi-cultural neighborhoods.
We continue to increase the quality of our tenant base, which is primarily comprised of entrepreneurs and small business owners that provide service to residents in the neighboring community within a five mile radius from each of our 43 Community Centers, said James C. Mastandrea, Whitestones Chairman and CEO. Mastandrea added: Our business model is specifically directed toward small tenants because we are able to achieve rental premiums, maintain flexibility and lower tenant improvement costs within our lease space, and minimize our downside risk as no single tenant can impact our revenues by more than 2%. Mastandrea concluded, Our small tenant business model has been very successful in our Texas/Illinois Region and we recently have successfully transitioned and expanded it to our Arizona Region. Most important to the success of our operating model are our Whitestone Associates, who comprise our internal leasing and management services teams.
Terravita Scottsdale: Bedmart signed an expansion and renewal lease for 4,000 square feet; UPS signed a renewal for 1,430 square feet in this seniors-at-home focused Community Center.
Gilbert Tuscany Gilbert: In this family-themed Community Center, Crossfit signed a new lease for 3,131 square feet.
Citadel Scottsdale: Three new small tenant leases were signed at this boutique-themed Community Center totaling 1,839 square feet: Rebecca by Design for 470 square feet, Headquarters West for 707 square feet and Manzano Construction for 662 square feet.
Desert Canyon Scottsdale: Four new small tenant leases totaling 2,790 square feet were signed in this Community Center targeting the surrounding young family demographic: Reese Industries for 398 square feet, Red Brick Mortgage for 298 square feet, Greg Kar for 294 square feet and Unity Chess Club for 1,800 square foot. Three renewals were signed totaling 3,580 square feet: Star Cleaners for 2,100 square feet, Mother Goose Adoption for 1,200 square feet, Richard OShaugnessy for 280 square feet.
Corporate Park Northwest Houston: In this small business incubator themed Community Centre business park, six new leases were signed totaling 7,032 square feet. Tenants include Durham Publication and Axistrade.
Corporate Park West Houston: Three new leases for a total of 14,715 square feet were signed, including Bozenna Nyk, an art and framing studio and The Luu Group, an engineering firm.
Windsor Park CentreSan Antonio: University of Phoenix signed a new expansion lease, adding 3,581 square feet adjacent to its existing Windsor Park Learning Center; SKECHERS USA signed a 10,000 square feet lease for a new outlet store, scheduled to open for business in the spring of 2012.
South Richey Houston: Bravo Ranch Supermercado signed a lease for 42,130 square feet of space for a new Hispanic themed grocery store, which plans to open for business in spring 2012 in the space formerly occupied by Kroger, which left the Center at the end of its lease in February 2011. Whitestone REIT announced a major renovation project at South Richey to transform it into a Hispanic-themed Community Center.
Lion Square Houston: Teletron, a Vietnamese electronics store based in Los Angeles, celebrated its Grand Opening and market entry in Houston in December with a series of events including Lion Dances, giveaways, and a free live concert. Whitestone REIT commenced the redevelopment and transformation plan for Lion Square Center that includes a new façade for the entire Center, as well as new architectural and landscaping features to enhance the internationally-themed culture within the Center.
About Whitestone REIT
Whitestone REIT is a fully integrated real estate company that owns, operates and re-develops Community Centered Properties TM, which are visibly located properties in established or developing culturally diverse neighborhoods. Whitestone focuses on value-creation in its Centers, as it markets, leases and manages its Centers to match tenants with the shared needs of surrounding neighborhoods. Operations are structured for providing cost-effective service to local service-oriented smaller space tenants (less than 3,000 square feet). Whitestone has a diversified tenant base concentrated on service offerings such as medical, education, and casual dining. The largest of its over 900 tenants comprises less than 2% of its rental revenues. Headquartered in Houston, Texas and founded in 1998, the Company is internally managed with a portfolio of commercial centers in Texas, Arizona, and Illinois. For additional information about the Company, please visit www.whitestonereit.com. The investor section of the Company's website has links to SEC filings, news releases, financial reports and investor newsletters.
1 Operating Portfolio - excludes new acquisitions, through the earlier of (1) attainment of 90% occupancy or 18 months of ownership, and (2) properties which are undergoing significant redevelopment or re-tenanting.
Statements included herein that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, which by their nature, involve known and unknown risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to the Company's regulatory filings with the Securities and Exchange Commission for information or factors that may impact the Company's performance.
Anne Gregory, 713-435-2219
Vice President Marketing & Investor Relations
Source: Whitestone REITCopyright Business Wire 2012