Whitestone REIT Reports 35% Revenue Increase

HOUSTON-Whitestone REIT showed positive increases across all front. The REIT's Funds from Operations Core per share grew more than 13% to $0.26 per share (compared to the $0.23 reported during the prior year quarter), while overall revenue increased 35% year-over-year to $14.8 million.

In addition:

• Net operating income increased 40% to $9.4 million.
• The REIT increased its gross real estate assets by $177.4 million (or 58%) since June 30, 2012.
• FFO was $4.3 million ($0.24 per diluted common share and OP unit) compared to $2.7 million ($0.22 per diluted common share and OP unit).
• Net attributable income to the REIT grew 125% to $970,000, 04 $0.06 per diluted common share.
• Portfolio occupancy was 86%, an increase of 2% from Q1 2013 and a 1% decrease from Q2 2012.

“Whitestone posted considerable gains in its financial and operating metrics in the second quarter, driven primarily by the $171.4 million in acquisitions completed since June 30, 2012," said James C. Mastandrea, Whitestone's chairman and CEO. "Performance of our real estate portfolio strengthened, with operating occupancy increasing to 87% at the end of the second quarter, from 86% at the end of the prior quarter.

"Our key focus areas, acquisitions, Core FFO per share growth, and leasing up our Community Centered Properties produced favorable results and should provide momentum into the second half of the year and beyond. We will continue to execute on our strategy of driving leasing and converting the intrinsic value embedded within our properties to net asset value.”

Mastandrea added that the REIT plans to make additional acquisitions in Dallas, Houston and San Antonio during the remainder of the year, while "recycling capital through the select sale of some of our legacy properties in Texas."