Whitestone: Record Quarterly Revenue of $8.8 Million Achieved During Q3

HOUSTON – Whitestone REIT, which owns, operates and redevelops community assets, experienced a third quarter that included $25.4 million in acquisitions, a solid portfolio occupancy increase and earnings growth. In addition to achieving record quarterly revenue of $8.8 million, the portfolio occupancy was 86%, a 3% increase year over year.

Funds from operations also increased by 15% year over year to $2.3 million or $0.18 per diluted common share.  The REIT’s activity included the purchase of three Arizona properties for $25.4 million and is currently under contract for an additional $28 million in acquisitions.

“While there continues to be political and economic uncertainty in the country our focus remains on acquiring Community Centers that are 30,000 to 150,000 square feet in the largest markets and underserved communities within Houston, Dallas, and San Antonio, Texas; Chicago, Illinois; and greater Phoenix, Arizona," commented James C. Mastandrea, Whitestone’s chairman and CEO. “Our strategy of leasing to small-space service oriented tenants (occupying less than 3,000 square feet) is our mainstay, as it provides the Company a 57% rental premium per square foot as compared to our larger space tenants, and our downside risk is minimized, whereby no single tenant can impact our total revenues by more than 2%.”

HOUSTON -- Camden Property Trust’s Q3 results saw FFO at $48.8 million compared to $46.7 million during the same period in 2010, which works out to 18% per diluted share. Earnings per share stood at $11.8 million thi past quarter versus $1.7 million year over year.  Camden acquired 30 acres in Atlanta, GA for future development and closed on a 240-unit apartment complex in San Antonio. Development continued full force in Florida, Maryland, Houston and Washington DC. The company also raised more capital by issuing 506,200 common shares through its at-the-market share offering program. The average share price was $65.76 per share, and the program succeeded in raising a net amount of $32.7 million.

The REIT focuses on buying and developing apartment complexes, and given the current state of multifamily housing, Camden is doing quite well. Camden’s CEO and chairman of the board Ric Campo noted during the REIT’s earnings call on Nov. 4 that continued negative sentiment toward home ownership, combined with employment growth in many of the southern markets where Camden has a presence, along with limited supply at this time, as working in the company’s favor.  Even Las Vegas, which has been a soft market, is starting to show some positive signs, he added, though the Las Vegas market’s underperformance “has been a drag on our overall same-store revenue and NOI growth sales,” he said.

On the financial side of things, the company sold four properties for $68.5 million and is under contract to sell 111 East Wacker in Chicago for $150.6 million.  According to Heistand, things are going apace in Parkway’s plans to shed its non-core assets. “We are announcing today our decision to sell our interest in the Fund I portfolio,” Heistand said, adding that the sale is geared toward improving the company’s balance sheet as well as providing “greater flexibility to pursue additional investments in the future.”