HOUSTON-Whitestone REIT's Q4 2012 earnings were mostly in positive territory, with total revenues at $46 million (a year-over-year increase of 34%); FFO-core at $13 million (versus $9.6 million in 2011) and an NOI of $8.4 million, an increase of 31% from $6.4 million the year before. A net loss of $1.3 milllion was also reported as well as a $2.2 million, one-time executive relocation charge.

The relocation agreement involved the sale of a home in Ohio belonging to the company's chairman, CEO and president James Mastandrea. David Holeman, CFO and principal accounting officer explained that, in July 2010, the board and compensation committee approved a relocation agreement for Mastandrea, but the CEO's house remained on the market for many years.

"In December, Jim received an offer for the sale of his home after marketing the home for more than five years," Holeman noted, adding that the offer was from a third party unrelated ot the company. "Our board felt it was the best interest of the company and our shareholders for Jim to go ahead and accept this offer and bring closure to a situation that's been in place for many years."

Meanwhile, in 2012, the REIT invested approximately $107 million to acquire retail value-add properties, mainly in the Phoenix metro region, with $84 million of those acquisitions taking place between September 2012 and the end of the year. And, according to executives at the company's recent earnings call, 11 properties have been earmarked for disposition over the next two years. Holeman noted that three of those properties are currently on the market, which were legacy assets. "It's about $30 million to $40 million in assets," he commented. "Not a large amount, but we could use the money by recycling the capital."

The company's acquisition pipeline is also active; Mastandrea noted that it's worth between $400 million and $600 million. One asset is currently under contract for $21 million, with another under letter of intent at $26 million.

Instant Insights /

Whitestone REIT's Earnings on the Move

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