Maryland | 000-34855 | 76-0594970 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2600 South Gessner, Suite 500, Houston, Texas | 77063 | |
(Address of principal executive offices) | (Zip Code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule #14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Whitestone REIT | |||
(Registrant) | |||
Date: | May 6, 2013 | By: /s/ David K. Holeman | |
Name: David K. Holeman Title: Chief Financial Officer |
99.1 | Press release of Whitestone REIT, dated May 6, 2013. |
99.2 | Quarterly Supplemental Operating and Financial Data for Whitestone REIT for the three months ended March 31, 2013. |
• | 34% increase in quarterly revenues |
• | 32% increase in quarterly property net operating income ("NOI") |
• | 35% increase in quarterly Funds From Operations Core ("FFO Core"); FFO Core Per Share of $0.24 |
• | $25.7 million in Community Centered Property acquisitions in the first quarter of 2013 |
• | $141.1 million, or 48%, increase in gross real estate assets since March 31, 2012 |
• | 20% increase in net income attributable to Whitestone REIT |
• | Total revenues for the first quarter of 2013 were $13.9 million, an increase of $3.5 million, or 33%, as compared to the first quarter of 2012. |
• | FFO Core for the first quarter 2013 increased 35%, or approximately $1.1 million, to $4.2 million as compared to $3.1 million in the first quarter of 2012. FFO Core per diluted common share and unit of limited partnership interest in the Company's operating partnership ("OP unit") remained at $0.24 for the first quarter of 2013, as compared to $0.24 per diluted common share and OP unit for the same period in 2012. FFO Core excludes acquisition expenses of $138,000 and $64,000 in the first quarter of 2013 and 2012, respectively, and a legal settlement of $131,000 in the first quarter of 2012. |
• | FFO for the first quarter 2013 was $4.0 million, or $0.23 per diluted common share and OP unit, as compared to $3.1 million, or $0.25 per diluted common share and OP unit for the first quarter 2012. |
• | Property NOI increased 32% to $9.0 million for the first quarter 2013 as compared to $6.8 million for the same period in 2012. The increase of $2.2 million is attributable to same store growth of 4% and acquisitions since March 31, 2012. |
• | Net income attributable to Whitestone REIT was $949,000, or $0.06 per diluted common share, for the first quarter 2013, compared to $793,000, or $0.07 per diluted common share, for the same period in 2012. |
• | The Company declared a quarterly cash distribution of $0.285 per common share and OP unit for the second quarter of 2013, paid or to be paid in three equal installments of $0.095 in April, May and June 2013. The distribution rate has remained the same since the distribution paid on July 8, 2010. |
March 31, 2013 | December 31, 2012 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Real estate assets, at cost | ||||||||
Property | $ | 436,331 | $ | 409,669 | ||||
Accumulated depreciation | (56,600 | ) | (53,920 | ) | ||||
Total real estate assets | 379,731 | 355,749 | ||||||
Cash and cash equivalents | 2,843 | 6,544 | ||||||
Marketable securities | 1,705 | 1,403 | ||||||
Escrows and acquisition deposits | 4,529 | 6,672 | ||||||
Accrued rents and accounts receivable, net of allowance for doubtful accounts | 9,059 | 7,947 | ||||||
Related party receivable | — | 652 | ||||||
Unamortized lease commissions and loan costs | 5,025 | 4,160 | ||||||
Prepaid expenses and other assets | 2,939 | 2,244 | ||||||
Total assets | $ | 405,831 | $ | 385,371 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Notes payable | $ | 216,935 | $ | 190,608 | ||||
Accounts payable and accrued expenses | 11,453 | 13,824 | ||||||
Tenants' security deposits | 3,151 | 3,024 | ||||||
Dividends and distributions payable | 5,028 | 5,028 | ||||||
Total liabilities | 236,567 | 212,484 | ||||||
Commitments and contingencies: | — | — | ||||||
Equity: | ||||||||
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of March 31, 2013 and December 31, 2012 | — | — | ||||||
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 17,024,323 and 16,943,098 issued and outstanding as of March 31, 2013 and December 31, 2012, respectively | 17 | 16 | ||||||
Additional paid-in capital | 225,365 | 224,237 | ||||||
Accumulated other comprehensive loss | (360 | ) | (392 | ) | ||||
Accumulated deficit | (61,697 | ) | (57,830 | ) | ||||
Total Whitestone REIT shareholders' equity | 163,325 | 166,031 | ||||||
Noncontrolling interest in subsidiary | 5,939 | 6,856 | ||||||
Total equity | 169,264 | 172,887 | ||||||
Total liabilities and equity | $ | 405,831 | $ | 385,371 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Property revenues | ||||||||
Rental revenues | $ | 11,001 | $ | 8,128 | ||||
Other revenues | 2,868 | 2,298 | ||||||
Total property revenues | 13,869 | 10,426 | ||||||
Property expenses | ||||||||
Property operation and maintenance | 3,065 | 2,352 | ||||||
Real estate taxes | 1,798 | 1,310 | ||||||
Total property expenses | 4,863 | 3,662 | ||||||
Other expenses (income) | ||||||||
General and administrative | 2,444 | 1,641 | ||||||
Depreciation and amortization | 3,073 | 2,283 | ||||||
Interest expense | 2,449 | 1,973 | ||||||
Interest, dividend and other investment income | (19 | ) | (70 | ) | ||||
Total other expense | 7,947 | 5,827 | ||||||
Income before loss on sale or disposal of assets and income taxes | 1,059 | 937 | ||||||
Provision for income taxes | (65 | ) | (65 | ) | ||||
Loss on sale or disposal of assets | (8 | ) | (12 | ) | ||||
Net income | 986 | 860 | ||||||
Less: Net income attributable to noncontrolling interests | 37 | 67 | ||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 793 |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Basic and Diluted Earnings Per Share: | ||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.06 | $ | 0.07 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 16,819 | 11,624 | ||||||
Diluted | 16,939 | 11,638 | ||||||
Distributions declared per common share / OP unit | $ | 0.2850 | $ | 0.2850 | ||||
Consolidated Statements of Comprehensive Income | ||||||||
Net income | $ | 986 | $ | 860 | ||||
Other comprehensive gain (loss) | ||||||||
Unrealized loss on cash flow hedging activities | (268 | ) | — | |||||
Unrealized gain on available-for-sale marketable securities | 303 | 766 | ||||||
Comprehensive income | 1,021 | 1,626 | ||||||
Less: Comprehensive income attributable to noncontrolling interests | 38 | 127 | ||||||
Comprehensive income attributable to Whitestone REIT | $ | 983 | $ | 1,499 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 986 | $ | 860 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 3,073 | 2,283 | ||||||
Amortization of deferred loan costs | 273 | 261 | ||||||
Amortization of notes payable discount | 149 | — | ||||||
Gain on sale of marketable securities | — | (1 | ) | |||||
Loss on sale or disposal of assets | 8 | 12 | ||||||
Bad debt expense | 317 | 132 | ||||||
Share-based compensation | 356 | 78 | ||||||
Changes in operating assets and liabilities: | ||||||||
Escrows and acquisition deposits | 2,143 | 2,378 | ||||||
Accrued rents and accounts receivable | (777 | ) | (551 | ) | ||||
Unamortized lease commissions | (263 | ) | (280 | ) | ||||
Prepaid expenses and other assets | 162 | 177 | ||||||
Accounts payable and accrued expenses | (2,621 | ) | (2,980 | ) | ||||
Tenants' security deposits | 127 | 45 | ||||||
Net cash provided by operating activities | 3,933 | 2,414 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of real estate | (25,700 | ) | — | |||||
Additions to real estate | (1,197 | ) | (2,893 | ) | ||||
Investments in marketable securities | — | (750 | ) | |||||
Proceeds from sales of marketable securities | — | 2,614 | ||||||
Net cash used in investing activities | (26,897 | ) | (1,029 | ) | ||||
Cash flows from financing activities: | ||||||||
Distributions paid to common shareholders | (4,807 | ) | (3,322 | ) | ||||
Distributions paid to OP unit holders | (194 | ) | (301 | ) | ||||
Payments of exchange offer costs | (34 | ) | (225 | ) | ||||
Proceeds from notes payable | — | 6,956 | ||||||
Proceeds from revolving credit facility, net | 26,400 | — | ||||||
Repayments of notes payable | (1,017 | ) | (713 | ) | ||||
Payments of loan origination costs | (1,085 | ) | (1,187 | ) | ||||
Net cash provided by financing activities | 19,263 | 1,208 | ||||||
Net increase (decrease) in cash and cash equivalents | (3,701 | ) | 2,593 | |||||
Cash and cash equivalents at beginning of period | 6,544 | 5,695 | ||||||
Cash and cash equivalents at end of period | $ | 2,843 | $ | 8,288 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 2,146 | $ | 1,671 | ||||
Non cash investing and financing activities: | ||||||||
Disposal of fully depreciated real estate | $ | 130 | $ | 11 | ||||
Financed insurance premiums | $ | 883 | $ | 31 | ||||
Value of shares issued under dividend reinvestment plan | $ | 23 | $ | 22 | ||||
Accrued offering costs | $ | 20 | $ | 54 | ||||
Value of common shares exchanged for OP units | $ | 782 | $ | 4,917 | ||||
Change in fair value of available-for-sale securities | $ | 303 | $ | 766 | ||||
Change in fair value of cash flow hedge | $ | (268 | ) | $ | — |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
FFO AND FFO-CORE | ||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 793 | ||||
Depreciation and amortization of real estate assets | 3,050 | 2,249 | ||||||
Loss on disposal of assets | 8 | 12 | ||||||
Net income attributable to noncontrolling interests | 37 | 67 | ||||||
FFO | 4,044 | 3,121 | ||||||
Acquisition costs | 138 | 64 | ||||||
Legal settlement | — | (131 | ) | |||||
FFO-Core | $ | 4,182 | $ | 3,054 | ||||
FFO PER SHARE AND OP UNIT: | ||||||||
Numerator: | ||||||||
FFO | $ | 4,044 | $ | 3,121 | ||||
Distributions paid on unvested restricted common shares | (11 | ) | (4 | ) | ||||
FFO excluding amounts attributable to unvested restricted common shares | $ | 4,033 | $ | 3,117 | ||||
FFO Core excluding amounts attributable to unvested restricted common shares | $ | 4,171 | $ | 3,050 | ||||
Denominator: | ||||||||
Weighted average number of total common shares - basic | 16,819 | 11,624 | ||||||
Weighted average number of total noncontrolling OP units - basic | 653 | 992 | ||||||
Weighted average number of total commons shares and noncontrolling OP units - basic | 17,472 | 12,616 | ||||||
Effect of dilutive securities: | ||||||||
Unvested restricted shares | 120 | 14 | ||||||
Weighted average number of total common shares and noncontrolling OP units - dilutive | 17,592 | 12,630 | ||||||
FFO per common share and OP unit - basic | $ | 0.23 | $ | 0.25 | ||||
FFO per common share and OP unit - diluted | $ | 0.23 | $ | 0.25 | ||||
FFO Core per common share and OP unit - basic | $ | 0.24 | $ | 0.24 | ||||
FFO Core per common share and OP unit - diluted | $ | 0.24 | $ | 0.24 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
PROPERTY NET OPERATING INCOME | ||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 793 | ||||
General and administrative expenses | 2,444 | 1,641 | ||||||
Depreciation and amortization | 3,073 | 2,283 | ||||||
Interest expense | 2,449 | 1,973 | ||||||
Interest, dividend and other investment income | (19 | ) | (70 | ) | ||||
Provision for income taxes | 65 | 65 | ||||||
Loss on disposal of assets | 8 | 12 | ||||||
Net income attributable to noncontrolling interests | 37 | 67 | ||||||
NOI | $ | 9,006 | $ | 6,764 |
TABLE OF CONTENTS | |
Page | |
CORPORATE PROFILE | ||||||||
NYSE: WSR | Whitestone REIT (NYSE: WSR) is a fully integrated real estate investment trust that owns, | |||||||
Common Shares | operates and redevelops Community Centered Properties TM, which are visibly located properties in | |||||||
established or developing, culturally diverse neighborhoods. As of March 31, 2013, we owned | ||||||||
52 Community Centered Properties TM with approximately 4.4 million square feet of gross leasable | ||||||||
52 Community Centers | area, located in five of the top markets in the United States in terms of population growth: Houston, | |||||||
4.4 Million Sq. Ft. of gross | Dallas, San Antonio, Phoenix and Chicago. Headquartered in Houston, Texas, we were founded | |||||||
leasable area | in 1998. | |||||||
1,101 Tenants | ||||||||
We focus on value creation in our properties, as we market, lease and manage our properties. We | ||||||||
5 Top Growth Markets | invest in properties that are or can become Community Centered Properties TM from which our | |||||||
Houston | tenants deliver needed services to the surrounding community. We focus on niche properties with | |||||||
Dallas | smaller rental spaces that present opportunities for attractive returns. | |||||||
San Antonio | ||||||||
Phoenix | Our strategic efforts target entrepreneurial, service-oriented tenants at each property who provide | |||||||
Chicago | services to their respective surrounding communities. Operations include an internal management | |||||||
structure providing cost-effective services to locally-oriented, smaller space tenants. Multi-cultural | ||||||||
Fiscal Year End | community focus sets us apart from traditional commercial real estate operators. We value diversity | |||||||
12/31 | on our team and maintain in-house leasing, property management, marketing, construction and | |||||||
maintenance departments with culturally diverse and multi-lingual associates who understand the | ||||||||
Common Shares & | particular needs of our tenants and neighborhoods. | |||||||
Units Outstanding*: | ||||||||
Common Shares: 17.0 Million | We have a diverse tenant base concentrated on service offerings such as medical, educational, casual | |||||||
Operating Partnership Units: | dining and convenience services. These tenants tend to occupy smaller spaces (less than 3,000 square | |||||||
0.6 Million | feet) and, as of March 31, 2013, provided a 60% premium rental rate compared to our larger | |||||||
space tenants. The largest of our 1,101 tenants comprised less than 1.1% of our annualized base | ||||||||
rental revenues for the three months ended March 31, 2013. | ||||||||
Distribution (per share / unit): | Investor Relations: | |||||||
Quarter: $ 0.2850 | Whitestone REIT | |||||||
Annualized: $ 1.1400 | David K. Holeman, Chief Financial Officer | |||||||
Dividend Yield: 6.9%** | 2600 South Gessner Suite 500, Houston, Texas 77063 | |||||||
713.435.2227 email: ir@whitestonereit.com | website: www.whitestonereit.com | |||||||
Board of Trustees: | ||||||||
James C. Mastandrea | ICR Inc. - Brad Cohen 203.682.8211 | |||||||
Daryl J. Carter | ||||||||
Daniel G. DeVos | Analyst Coverage: | |||||||
Donald F. Keating | BMO Capital Markets Corp. | J.J.B. Hilliard, W.L. Lyons, LLC | JMP Securities | Wunderlich Securities, Inc. | ||||
Paul T. Lambert | Paul Adornato, CFA | Carol L. Kemple | Mitch Germain | Merril Ross | ||||
Jack L. Mahaffey | 212.885.4170 | 502.588.1839 | 212.906.3546 | 703.669.9255 | ||||
Paul.Adornato@bmo.com | ckemple@hilliard.com | mgermain@jmpsecurities.com | mross@wundernet.com | |||||
* As of May 2, 2013 | ||||||||
** Based on common share price | ||||||||
of $16.50 as of close of market on | ||||||||
May 2, 2013 |
• | 34% increase in quarterly revenues |
• | 32% increase in quarterly property net operating income ("NOI") |
• | 35% increase in quarterly Funds From Operations Core ("FFO Core"); FFO Core Per Share of $0.24 |
• | $25.7 million in Community Centered Property acquisitions in the first quarter of 2013 |
• | $141.1 million, or 48%, increase in gross real estate assets since March 31, 2012 |
• | 20% increase in net income attributable to Whitestone REIT |
• | Total revenues for the first quarter of 2013 were $13.9 million, an increase of $3.5 million, or 33%, as compared to the first quarter of 2012. |
• | FFO Core for the first quarter 2013 increased 35%, or approximately $1.1 million, to $4.2 million as compared to $3.1 million in the first quarter of 2012. FFO Core per diluted common share and unit of limited partnership interest in the Company's operating partnership ("OP unit") remained at $0.24 for the first quarter of 2013, as compared to $0.24 per diluted common share and OP unit for the same period in 2012. FFO Core excludes acquisition expenses of $138,000 and $64,000 in the first quarter of 2013 and 2012, respectively, and a legal settlement of $131,000 in the first quarter of 2012. |
• | FFO for the first quarter 2013 was $4.0 million, or $0.23 per diluted common share and OP unit, as compared to $3.1 million, or $0.25 per diluted common share and OP unit for the first quarter 2012. |
• | Property NOI increased 32% to $9.0 million for the first quarter 2013 as compared to $6.8 million for the same period in 2012. The increase of $2.2 million is attributable to same store growth of 4% and acquisitions since March 31, 2012. |
• | Net income attributable to Whitestone REIT was $949,000, or $0.06 per diluted common share, for the first quarter 2013, compared to $793,000, or $0.07 per diluted common share, for the same period in 2012. |
• | The Company declared a quarterly cash distribution of $0.285 per common share and OP unit for the second quarter of 2013, paid or to be paid in three equal installments of $0.095 in April, May and June 2013. The distribution rate has remained the same since the distribution paid on July 8, 2010. |
March 31, 2013 | December 31, 2012 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Real estate assets, at cost | ||||||||
Property | $ | 436,331 | $ | 409,669 | ||||
Accumulated depreciation | (56,600 | ) | (53,920 | ) | ||||
Total real estate assets | 379,731 | 355,749 | ||||||
Cash and cash equivalents | 2,843 | 6,544 | ||||||
Marketable securities | 1,705 | 1,403 | ||||||
Escrows and acquisition deposits | 4,529 | 6,672 | ||||||
Accrued rents and accounts receivable, net of allowance for doubtful accounts | 9,059 | 7,947 | ||||||
Related party receivable | — | 652 | ||||||
Unamortized lease commissions and loan costs | 5,025 | 4,160 | ||||||
Prepaid expenses and other assets | 2,939 | 2,244 | ||||||
Total assets | $ | 405,831 | $ | 385,371 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Notes payable | $ | 216,935 | $ | 190,608 | ||||
Accounts payable and accrued expenses | 11,453 | 13,824 | ||||||
Tenants' security deposits | 3,151 | 3,024 | ||||||
Dividends and distributions payable | 5,028 | 5,028 | ||||||
Total liabilities | 236,567 | 212,484 | ||||||
Commitments and contingencies: | — | — | ||||||
Equity: | ||||||||
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of March 31, 2013 and December 31, 2012 | — | — | ||||||
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 17,024,323 and 16,943,098 issued and outstanding as of March 31, 2013 and December 31, 2012, respectively | 17 | 16 | ||||||
Additional paid-in capital | 225,365 | 224,237 | ||||||
Accumulated other comprehensive loss | (360 | ) | (392 | ) | ||||
Accumulated deficit | (61,697 | ) | (57,830 | ) | ||||
Total Whitestone REIT shareholders' equity | 163,325 | 166,031 | ||||||
Noncontrolling interest in subsidiary | 5,939 | 6,856 | ||||||
Total equity | 169,264 | 172,887 | ||||||
Total liabilities and equity | $ | 405,831 | $ | 385,371 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Property revenues | ||||||||
Rental revenues | $ | 11,001 | $ | 8,128 | ||||
Other revenues | 2,868 | 2,298 | ||||||
Total property revenues | 13,869 | 10,426 | ||||||
Property expenses | ||||||||
Property operation and maintenance | 3,065 | 2,352 | ||||||
Real estate taxes | 1,798 | 1,310 | ||||||
Total property expenses | 4,863 | 3,662 | ||||||
Other expenses (income) | ||||||||
General and administrative | 2,444 | 1,641 | ||||||
Depreciation and amortization | 3,073 | 2,283 | ||||||
Interest expense | 2,449 | 1,973 | ||||||
Interest, dividend and other investment income | (19 | ) | (70 | ) | ||||
Total other expense | 7,947 | 5,827 | ||||||
Income before loss on sale or disposal of assets and income taxes | 1,059 | 937 | ||||||
Provision for income taxes | (65 | ) | (65 | ) | ||||
Loss on sale or disposal of assets | (8 | ) | (12 | ) | ||||
Net income | 986 | 860 | ||||||
Less: Net income attributable to noncontrolling interests | 37 | 67 | ||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 793 |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Basic and Diluted Earnings Per Share: | ||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.06 | $ | 0.07 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 16,819 | 11,624 | ||||||
Diluted | 16,939 | 11,638 | ||||||
Distributions declared per common share / OP unit | $ | 0.2850 | $ | 0.2850 | ||||
Consolidated Statements of Comprehensive Income | ||||||||
Net income | $ | 986 | $ | 860 | ||||
Other comprehensive gain (loss) | ||||||||
Unrealized loss on cash flow hedging activities | (268 | ) | — | |||||
Unrealized gain on available-for-sale marketable securities | 303 | 766 | ||||||
Comprehensive income | 1,021 | 1,626 | ||||||
Less: Comprehensive income attributable to noncontrolling interests | 38 | 127 | ||||||
Comprehensive income attributable to Whitestone REIT | $ | 983 | $ | 1,499 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 986 | $ | 860 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 3,073 | 2,283 | ||||||
Amortization of deferred loan costs | 273 | 261 | ||||||
Amortization of notes payable discount | 149 | — | ||||||
Gain on sale of marketable securities | — | (1 | ) | |||||
Loss on sale or disposal of assets | 8 | 12 | ||||||
Bad debt expense | 317 | 132 | ||||||
Share-based compensation | 356 | 78 | ||||||
Changes in operating assets and liabilities: | ||||||||
Escrows and acquisition deposits | 2,143 | 2,378 | ||||||
Accrued rents and accounts receivable | (777 | ) | (551 | ) | ||||
Unamortized lease commissions | (263 | ) | (280 | ) | ||||
Prepaid expenses and other assets | 162 | 177 | ||||||
Accounts payable and accrued expenses | (2,621 | ) | (2,980 | ) | ||||
Tenants' security deposits | 127 | 45 | ||||||
Net cash provided by operating activities | 3,933 | 2,414 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of real estate | (25,700 | ) | — | |||||
Additions to real estate | (1,197 | ) | (2,893 | ) | ||||
Investments in marketable securities | — | (750 | ) | |||||
Proceeds from sales of marketable securities | — | 2,614 | ||||||
Net cash used in investing activities | (26,897 | ) | (1,029 | ) | ||||
Cash flows from financing activities: | ||||||||
Distributions paid to common shareholders | (4,807 | ) | (3,322 | ) | ||||
Distributions paid to OP unit holders | (194 | ) | (301 | ) | ||||
Payments of exchange offer costs | (34 | ) | (225 | ) | ||||
Proceeds from notes payable | — | 6,956 | ||||||
Proceeds from revolving credit facility, net | 26,400 | — | ||||||
Repayments of notes payable | (1,017 | ) | (713 | ) | ||||
Payments of loan origination costs | (1,085 | ) | (1,187 | ) | ||||
Net cash provided by financing activities | 19,263 | 1,208 | ||||||
Net increase (decrease) in cash and cash equivalents | (3,701 | ) | 2,593 | |||||
Cash and cash equivalents at beginning of period | 6,544 | 5,695 | ||||||
Cash and cash equivalents at end of period | $ | 2,843 | $ | 8,288 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 2,146 | $ | 1,671 | ||||
Non cash investing and financing activities: | ||||||||
Disposal of fully depreciated real estate | $ | 130 | $ | 11 | ||||
Financed insurance premiums | $ | 883 | $ | 31 | ||||
Value of shares issued under dividend reinvestment plan | $ | 23 | $ | 22 | ||||
Accrued offering costs | $ | 20 | $ | 54 | ||||
Value of common shares exchanged for OP units | $ | 782 | $ | 4,917 | ||||
Change in fair value of available-for-sale securities | $ | 303 | $ | 766 | ||||
Change in fair value of cash flow hedge | $ | (268 | ) | $ | — |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
FFO AND FFO-CORE | ||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 793 | ||||
Depreciation and amortization of real estate assets | 3,050 | 2,249 | ||||||
Loss on disposal of assets | 8 | 12 | ||||||
Net income attributable to noncontrolling interests | 37 | 67 | ||||||
FFO | 4,044 | 3,121 | ||||||
Acquisition costs | 138 | 64 | ||||||
Legal settlement | — | (131 | ) | |||||
FFO-Core | $ | 4,182 | $ | 3,054 | ||||
FFO PER SHARE AND OP UNIT: | ||||||||
Numerator: | ||||||||
FFO | $ | 4,044 | $ | 3,121 | ||||
Distributions paid on unvested restricted common shares | (11 | ) | (4 | ) | ||||
FFO excluding amounts attributable to unvested restricted common shares | $ | 4,033 | $ | 3,117 | ||||
FFO Core excluding amounts attributable to unvested restricted common shares | $ | 4,171 | $ | 3,050 | ||||
Denominator: | ||||||||
Weighted average number of total common shares - basic | 16,819 | 11,624 | ||||||
Weighted average number of total noncontrolling OP units - basic | 653 | 992 | ||||||
Weighted average number of total commons shares and noncontrolling OP units - basic | 17,472 | 12,616 | ||||||
Effect of dilutive securities: | ||||||||
Unvested restricted shares | 120 | 14 | ||||||
Weighted average number of total common shares and noncontrolling OP units - dilutive | 17,592 | 12,630 | ||||||
FFO per common share and OP unit - basic | $ | 0.23 | $ | 0.25 | ||||
FFO per common share and OP unit - diluted | $ | 0.23 | $ | 0.25 | ||||
FFO Core per common share and OP unit - basic | $ | 0.24 | $ | 0.24 | ||||
FFO Core per common share and OP unit - diluted | $ | 0.24 | $ | 0.24 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
PROPERTY NET OPERATING INCOME | ||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 793 | ||||
General and administrative expenses | 2,444 | 1,641 | ||||||
Depreciation and amortization | 3,073 | 2,283 | ||||||
Interest expense | 2,449 | 1,973 | ||||||
Interest, dividend and other investment income | (19 | ) | (70 | ) | ||||
Provision for income taxes | 65 | 65 | ||||||
Loss on disposal of assets | 8 | 12 | ||||||
Net income attributable to noncontrolling interests | 37 | 67 | ||||||
NOI | $ | 9,006 | $ | 6,764 | ||||
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION | ||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 793 | ||||
Depreciation and amortization | 3,073 | 2,283 | ||||||
Interest expense | 2,449 | 1,973 | ||||||
Provision for income taxes | 65 | 65 | ||||||
Loss on disposal of assets | 8 | 12 | ||||||
Net income attributable to noncontrolling interests | 37 | 67 | ||||||
EBITDA (1) | $ | 6,581 | $ | 5,193 |
Three Months Ended | ||||||||||||||||
March 31, | December 31, | September 30, | June 30, | |||||||||||||
2013 | 2012 | 2012 | 2012 | |||||||||||||
Net income (loss) attributable to Whitestone REIT | $ | 949 | $ | (1,380 | ) | $ | 163 | $ | 431 | |||||||
Depreciation and amortization | 3,073 | 2,973 | 2,683 | 2,290 | ||||||||||||
Executive relocation expense | — | 2,177 | — | — | ||||||||||||
Interest expense | 2,449 | 2,408 | 2,244 | 2,107 | ||||||||||||
Provision for income taxes | 65 | 74 | 77 | 70 | ||||||||||||
Loss on disposal of assets | 8 | 7 | 77 | 16 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 37 | (61 | ) | 9 | 31 | |||||||||||
EBITDA (1) | $ | 6,581 | $ | 6,198 | $ | 5,253 | $ | 4,945 |
(1) | Earnings Before Interest, Tax, Depreciation and Amortization ("EBITDA"): Management believes that EBITDA is an appropriate supplemental measure of operating performance to net income attributable to the Company. The Company defines EBITDA as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes) and general and administrative expenses, excluding executive relocation costs related to the disposition of the Chief Executive Officer's residence in Cleveland, Ohio pursuant to the executive relocation arrangement approved by the Company's compensation committee. Management believes that EBITDA provides useful information to the investment community about the Company's operating performance when compared to other REITs since EBITDA is generally recognized as a standard measure. However, EBITDA should not be viewed as a measure of the Company's overall financial performance since it does not reflect depreciation and amortization, involuntary conversion, interest expense, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties. Other REITs may use different methodologies for calculating EBITDA and, accordingly, the Company's EBITDA may not be comparable to other REITs. |
Whitestone REIT and Subsidiaries OTHER FINANCIAL INFORMATION (in thousands, except number of properties and employees) | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Other Financial Information: | ||||||||
Tenant improvements (1) | $ | 242 | $ | 566 | ||||
Leasing commissions (1) | $ | 362 | $ | 204 | ||||
Scheduled debt principal payments | $ | 759 | $ | 694 | ||||
Straight line rent income (loss) | $ | 225 | $ | (71 | ) | |||
Market rent amortization income (loss) from acquired leases | $ | 33 | $ | 4 | ||||
Non-cash share-based compensation expense | $ | 356 | $ | 78 | ||||
Non-real estate depreciation and amortization | $ | 23 | $ | 33 | ||||
Amortization of loan fees | $ | 273 | $ | 261 | ||||
Acquisition costs | $ | 138 | $ | 64 | ||||
Undepreciated value of unencumbered properties | $ | 232,902 | $ | 114,528 | ||||
Number of unencumbered properties | 25 | 19 | ||||||
Full time employees | 68 | 59 |
(1) | Does not include first generation costs for tenant improvements and leasing commission costs needed for new acquisitions or redevelopment of a property to bring the property to operating standards for its intended use. |
As of March 31, 2013 | ||||||||||
MARKET CAPITALIZATION: | Percent of Total Equity | Total Market Capitalization | Percent of Total Market Capitalization | |||||||
Equity Capitalization: | ||||||||||
Common shares outstanding | 96.6 | % | 17,024 | |||||||
Operating partnership units outstanding | 3.4 | % | 607 | |||||||
Total | 100.0 | % | 17,631 | |||||||
Market price of common shares as of | ||||||||||
March 31, 2013 | $ | 15.14 | ||||||||
Total equity capitalization | 266,933 | 55 | % | |||||||
Debt Capitalization: | ||||||||||
Outstanding debt | $ | 216,935 | ||||||||
Less: Cash and cash equivalents | (2,843 | ) | ||||||||
214,092 | 45 | % | ||||||||
Total Market Capitalization as of | ||||||||||
March 31, 2013 | $ | 481,025 | 100 | % |
SELECTED RATIOS: (dollars in thousands) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | December 31, | September 30, | June 30, | |||||||||||||
2013 | 2012 | 2012 | 2012 | |||||||||||||
INTEREST COVERAGE RATIO | ||||||||||||||||
EBITDA/Interest Expense | ||||||||||||||||
EBITDA | $ | 6,581 | $ | 6,198 | $ | 5,253 | $ | 4,945 | ||||||||
Interest expense, excluding amortization of loan fees | 2,176 | 2,101 | 1,947 | 1,863 | ||||||||||||
Ratio of interest expense to EBITDA | 3.0 | 3.0 | 2.7 | 2.7 | ||||||||||||
LEVERAGE RATIO | ||||||||||||||||
Debt/Undepreciated Book Value | ||||||||||||||||
Undepreciated real estate assets | $ | 436,331 | $ | 409,669 | $ | 389,280 | $ | 304,517 | ||||||||
Outstanding debt | $ | 216,935 | $ | 190,608 | $ | 167,816 | $ | 140,051 | ||||||||
Less: Cash | (2,843 | ) | (6,544 | ) | (8,339 | ) | (3,863 | ) | ||||||||
Outstanding debt after cash | $ | 214,092 | $ | 184,064 | $ | 159,477 | $ | 136,188 | ||||||||
Ratio of debt to real estate assets | 49 | % | 45 | % | 41 | % | 45 | % |
Description | March 31, 2013 | December 31, 2012 | ||||||
Fixed rate notes | ||||||||
$1.1 million 4.71% Note, due 2013 | $ | 1,087 | $ | 1,087 | ||||
$14.1 million 5.695% Note, due 2013 | 13,773 | 13,850 | ||||||
$3.0 million 6.00% Note, due 2021 (1) | 2,933 | 2,943 | ||||||
$10.0 million 6.04% Note, due 2014 | 9,095 | 9,142 | ||||||
$1.5 million 6.50% Note, due 2014 | 1,437 | 1,444 | ||||||
$11.2 million 6.52% Note, due 2015 | 10,569 | 10,609 | ||||||
$21.4 million 6.53% Notes, due 2013 | 18,694 | 18,865 | ||||||
$24.5 million 6.56% Note, due 2013 | 23,015 | 23,135 | ||||||
$9.9 million 6.63% Notes, due 2014 | 8,848 | 8,925 | ||||||
$0.9 million 2.97% Note, due 2013 | 694 | 15 | ||||||
Floating rate notes | ||||||||
Unsecured credit facility, LIBOR plus 1.75% to 2.50%, due 2017 (2) | 95,400 | 69,000 | ||||||
$9.2 million, Prime Rate less 2.00%, due 2017 | 7,860 | 7,854 | ||||||
$26.9 million, LIBOR plus 2.86% Note, due 2013 | 23,530 | 23,739 | ||||||
$ | 216,935 | $ | 190,608 |
(1) | The 6.00% interest rate is fixed through March 30, 2016. On March 31, 2016, the interest rate will reset to the rate of interest for a five-year balloon note with a thirty-year amortization as published by the Federal Home Loan Bank. |
(2) | We have entered into an interest rate swap that fixed the LIBOR portion of our $50 million term loan under our unsecured credit facility at 0.84%. The swap will begin on January 7, 2014 and will mature on February 3, 2017. |
Year | Scheduled Amortization Payments | Scheduled Maturities | Total Scheduled Maturities | Percentage of Debt Maturing | |||||||||||
2013 (remainder of year) | $ | 2,364 | $ | 78,953 | $ | 81,317 | 37.5 | % | |||||||
2014 | 293 | 18,879 | 19,172 | 8.8 | % | ||||||||||
2015 | 171 | 10,146 | 10,317 | 4.8 | % | ||||||||||
2016 | 73 | — | 73 | — | % | ||||||||||
2017 | 104 | 103,238 | 103,342 | 47.6 | % | ||||||||||
2018 and thereafter | 185 | 2,529 | 2,714 | 1.3 | % | ||||||||||
Total | $ | 3,190 | $ | 213,745 | $ | 216,935 | 100.0 | % |
Whitestone REIT and Subsidiaries SUMMARY OF OCCUPANCY AND TOP TENANTS | |||||||||||||||
Gross Leasable Area as of | Occupancy % as of | ||||||||||||||
Community Centered Properties | March 31, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||
Retail | 2,059,594 | 87 | % | 88 | % | 88 | % | 90 | % | ||||||
Office/Flex | 1,201,672 | 87 | % | 89 | % | 89 | % | 89 | % | ||||||
Office | 631,841 | 77 | % | 78 | % | 78 | % | 79 | % | ||||||
Total - Operating Portfolio | 3,893,107 | 86 | % | 87 | % | 87 | % | 87 | % | ||||||
Redevelopment, New Acquisitions (1) | 470,718 | 72 | % | 70 | % | 70 | % | 68 | % | ||||||
Total | 4,363,825 | 84 | % | 85 | % | 85 | % | 87 | % |
(1) | Includes new acquisitions through the earlier of attainment of 90% occupancy or 18 months of ownership, and properties that are undergoing significant redevelopment or re-tenanting. |
Tenant Name | Location | Annualized Base Rental Revenue (in thousands) | Percentage of Total Annualized Base Rental Revenues (1) | Initial Lease Date | Year Expiring | ||||||||
Sports Authority | San Antonio | $ | 495 | 1.1 | % | 1/1/2004 | 2015 | ||||||
Air Liquide America, L.P. | Dallas | 387 | 0.9 | % | 8/1/2001 | 2013 | |||||||
Safeway Stores, Incorporated | Phoenix | 344 | 0.8 | % | 12/22/2011 | 2021 | |||||||
Barnes & Noble Booksellers, Inc | Phoenix | 314 | 0.7 | % | 9/21/2012 | 2014 | |||||||
X-Ray Press Corporation | Houston | 291 | 0.7 | % | 7/1/1998 | 2019 | |||||||
Walgreens #3766 | Phoenix | 279 | 0.6 | % | 8/9/2011 | 2049 | |||||||
Sterling Jewelers Inc | Phoenix | 277 | 0.6 | % | 9/21/2012 | 2020 | |||||||
Rock Solid Images | Houston | 266 | 0.6 | % | 4/1/2004 | 2013 | |||||||
Marshall's | Houston | 264 | 0.6 | % | 5/12/1983 | 2018 | |||||||
Merrill Corporation | Dallas | 261 | 0.6 | % | 12/10/2001 | 2014 | |||||||
Skechers USA, Inc (2) | Houston and San Antonio | 250 | 0.6 | % | 02/17/2012 and 05/25/2012 | 2017 | |||||||
Mini Skool Early Learning Centers, Inc. | Phoenix | 249 | 0.6 | % | 12/28/2012 | 2019 | |||||||
Superior Abstract & Title | Dallas | 239 | 0.5 | % | 3/28/2013 | 2017 | |||||||
Albertson's #979 | Phoenix | 235 | 0.5 | % | 8/9/2011 | 2022 | |||||||
California Pizza Kitchen, Inc. | Phoenix | 234 | 0.5 | % | 9/21/2012 | 2017 | |||||||
$ | 4,385 | 9.9 | % |
(1) | Annualized Base Rental Revenues represents the monthly base rent as of March 31, 2013 for each applicable tenant multiplied by 12. |
(2) | As of March 31, 2013, we had two leases with the same tenant occupying space at properties located in San Antonio and Houston. The San Antonio lease commenced on May 25, 2012 and expires in 2017. The annualized rental revenue for this location was $120,000, which represents 0.3% of our total annualized base rental revenue. The Houston lease commenced on February 17, 2012 and expires in 2017. The annualized rental revenue was $129,500, which represents 0.3% of our total annualized base rental revenue. |
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
RENEWALS | ||||||||
Number of Leases | 45 | 48 | ||||||
Total Square Feet (1) | 73,887 | 77,655 | ||||||
Average Square Feet | 1,642 | 1,618 | ||||||
Total Lease Value | $ | 3,549,000 | $ | 2,846,000 | ||||
NEW LEASES | ||||||||
Number of Leases | 26 | 42 | ||||||
Total Square Feet (1) | 57,010 | 81,512 | ||||||
Average Square Feet | 2,193 | 1,941 | ||||||
Total Lease Value | $ | 3,531,000 | $ | 3,984,000 | ||||
TOTAL LEASES | ||||||||
Number of Leases | 71 | 90 | ||||||
Total Square Feet (1) | 130,897 | 159,167 | ||||||
Average Square Feet | 1,844 | 1,769 | ||||||
Total Lease Value | $ | 7,080,000 | $ | 6,830,000 |
(1) | Represents the square footage as the result of new, renewal, expansion and contraction leases. |
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY | |||||||||||||||||||||||||||||||||||||||||||
Type | Number of Leases Signed | Lease Value Signed | GLA Signed | Weighted Average Lease Term (2) | TI and Incentives (3) | TI and Incentives per Sq. Ft. | Contractual Rent Per Sq. Ft. (4) | Prior Contractual Rent Per Sq. Ft. (5) | Annual Increase (Decrease) in Contractual Rent | Cash Basis Increase (Decrease) Over Prior Rent | Annual Increase (Decrease) in Straight-lined Rent | Straight-lined Basis Increase (Decrease) Over Prior Rent | |||||||||||||||||||||||||||||||
Comparable: (1) | |||||||||||||||||||||||||||||||||||||||||||
Comparable Total Leases: | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 44 | $ | 2,177,934 | 64,759 | 2.5 | $ | 79,790 | $ | 1.23 | $ | 12.95 | $ | 13.12 | $ | (11,028 | ) | (1.3 | )% | $ | 40,186 | 4.9 | % | |||||||||||||||||||||
4th Quarter 2012 | 45 | 3,137,053 | 125,999 | 3.2 | 398,310 | 3.16 | 11.36 | 11.62 | (32,232 | ) | (2.2 | )% | 39,065 | 3.3 | % | ||||||||||||||||||||||||||||
3rd Quarter 2012 | 35 | 3,292,250 | 85,990 | 5.3 | 450,340 | 5.24 | 8.56 | 9.99 | (121,968 | ) | (14.3 | )% | (57,361 | ) | (7.0 | )% | |||||||||||||||||||||||||||
2nd Quarter 2012 | 54 | 5,900,931 | 132,857 | 3.8 | 388,076 | 2.92 | 11.62 | 11.47 | 5,121 | 1.3 | % | 79,903 | 6.0 | % | |||||||||||||||||||||||||||||
Total - 12 months | 178 | $ | 14,508,168 | 409,605 | 3.7 | $ | 1,316,516 | $ | 3.21 | $ | 11.11 | $ | 11.46 | $ | (160,107 | ) | (3.1 | )% | $ | 101,793 | 2.7 | % | |||||||||||||||||||||
Comparable New Leases: | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 8 | $ | 456,268 | 12,577 | 2.8 | $ | 20,581 | $ | 1.64 | $ | 11.41 | $ | 11.48 | $ | (948 | ) | (0.6 | )% | $ | 19,284 | 14.6 | % | |||||||||||||||||||||
4th Quarter 2012 | 11 | 735,111 | 19,142 | 3.2 | 117,495 | 6.14 | 11.45 | 13.15 | (32,549 | ) | (12.9 | )% | (15,744 | ) | (6.6 | )% | |||||||||||||||||||||||||||
3rd Quarter 2012 | 16 | 2,115,518 | 47,862 | 7.4 | 347,194 | 7.25 | 7.41 | 9.01 | (76,257 | ) | (17.8 | )% | (55,920 | ) | (14.0 | )% | |||||||||||||||||||||||||||
2nd Quarter 2012 | 17 | 1,433,816 | 35,918 | 4.1 | 301,248 | 8.39 | 11.07 | 9.85 | 43,851 | 12.4 | % | 29,443 | 9.0 | % | |||||||||||||||||||||||||||||
Total - 12 months | 52 | $ | 4,740,713 | 115,499 | 5.2 | $ | 786,518 | $ | 6.81 | $ | 9.66 | $ | 10.23 | $ | (65,903 | ) | (5.6 | )% | $ | (22,937 | ) | (2.1 | )% | ||||||||||||||||||||
Comparable Renewal Leases: | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 36 | $ | 1,721,666 | 52,182 | 2.4 | $ | 59,209 | $ | 1.13 | $ | 13.32 | $ | 13.51 | $ | (10,080 | ) | (1.4 | )% | $ | 20,902 | 3.1 | % | |||||||||||||||||||||
4th Quarter 2012 | 34 | 2,401,942 | 106,857 | 3.2 | 280,815 | 2.63 | 11.34 | 11.34 | 317 | — | % | 54,809 | 5.8 | % | |||||||||||||||||||||||||||||
3rd Quarter 2012 | 19 | 1,176,732 | 38,128 | 2.6 | 103,146 | 2.71 | 10.01 | 11.20 | (45,711 | ) | (10.6 | )% | 50,460 | (0.4 | )% | ||||||||||||||||||||||||||||
2nd Quarter 2012 | 37 | 4,467,115 | 96,939 | 3.6 | 86,828 | 0.90 | 11.82 | 12.06 | (38,730 | ) | (2.0 | )% | 42,004 | 6.0 | % | ||||||||||||||||||||||||||||
Total - 12 months | 126 | $ | 9,767,455 | 294,106 | 3.1 | $ | 529,998 | $ | 1.80 | $ | 11.68 | $ | 11.95 | $ | (94,204 | ) | (2.2 | )% | $ | 168,175 | 4.4 | % | |||||||||||||||||||||
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY (continued) | |||||||||||||||||||||||||||||||||||||||||||
Type | Number of Leases Signed | Lease Value Signed | GLA Signed | Weighted Average Lease Term (2) | TI and Incentives (3) | TI and Incentives per Sq. Ft. | Contractual Rent Per Sq. Ft. (4) | ||||||||||||||||||||||||||||||||||||
Non-comparable: | |||||||||||||||||||||||||||||||||||||||||||
Non-Comparable Total Leases: | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 27 | $ | 4,902,083 | 87,641 | 4.9 | $ | 637,970 | $ | 7.28 | $ | 11.21 | ||||||||||||||||||||||||||||||||
4th Quarter 2012 | 33 | 8,116,860 | 116,384 | 4.9 | 1,351,377 | 11.61 | 13.70 | ||||||||||||||||||||||||||||||||||||
3rd Quarter 2012 | 28 | 4,381,167 | 93,111 | 4.4 | 493,052 | 5.30 | 15.01 | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2012 | 38 | 3,565,197 | 99,396 | 3.6 | 509,581 | 5.13 | 10.26 | ||||||||||||||||||||||||||||||||||||
Total - 12 months | 126 | $ | 20,965,307 | 396,532 | 4.5 | $ | 2,991,980 | $ | 7.55 | $ | 12.59 | ||||||||||||||||||||||||||||||||
Non-Comparable New Leases: | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 18 | $ | 3,074,881 | 57,506 | 5.3 | $ | 370,645 | $ | 6.45 | $ | 9.90 | ||||||||||||||||||||||||||||||||
4th Quarter 2012 | 30 | 7,206,883 | 103,297 | 4.9 | 1,217,136 | 11.78 | 13.67 | ||||||||||||||||||||||||||||||||||||
3rd Quarter 2012 | 23 | 3,647,742 | 70,728 | 5.2 | 449,193 | 6.35 | 14.51 | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2012 | 33 | 2,164,761 | 69,804 | 3.1 | 426,724 | 6.11 | 10.13 | ||||||||||||||||||||||||||||||||||||
Total - 12 months | 104 | $ | 16,094,267 | 301,335 | 4.6 | $ | 2,463,698 | $ | 8.18 | $ | 12.33 | ||||||||||||||||||||||||||||||||
Non-Comparable Renewal Leases: | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 9 | $ | 1,827,202 | 30,135 | 4.2 | $ | 267,325 | $ | 8.87 | $ | 13.71 | ||||||||||||||||||||||||||||||||
4th Quarter 2012 | 3 | 909,977 | 13,087 | 4.7 | 134,241 | 10.26 | 13.95 | ||||||||||||||||||||||||||||||||||||
3rd Quarter 2012 | 5 | 733,425 | 22,383 | 2.1 | 43,859 | 1.96 | 16.58 | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2012 | 5 | 1,400,436 | 29,592 | 4.7 | 82,857 | 2.80 | 10.56 | ||||||||||||||||||||||||||||||||||||
Total - 12 months | 22 | $ | 4,871,040 | 95,197 | 3.9 | $ | 528,282 | $ | 5.55 | $ | 13.44 | ||||||||||||||||||||||||||||||||
Whitestone REIT and Subsidiaries SUMMARY OF LEASING ACTIVITY (continued) | |||||||||||||||||||||||||||||||||||||||||||
Type | Number of Leases Signed | Lease Value Signed | GLA Signed | Weighted Average Lease Term (2) | TI and Incentives (3) | TI and Incentives per Sq. Ft. | Contractual Rent Per Sq. Ft. (4) | ||||||||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||||
New & Renewal | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 71 | $ | 7,080,017 | 152,400 | 3.9 | $ | 717,760 | $ | 4.71 | $ | 11.95 | ||||||||||||||||||||||||||||||||
4th Quarter 2012 | 78 | 11,253,913 | 242,383 | 4.0 | 1,749,687 | 7.22 | 12.48 | ||||||||||||||||||||||||||||||||||||
3rd Quarter 2012 | 63 | 7,673,417 | 179,101 | 4.8 | 943,392 | 5.27 | 11.91 | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2012 | 92 | 9,466,128 | 232,253 | 3.7 | 897,657 | 3.86 | 11.04 | ||||||||||||||||||||||||||||||||||||
Total - 12 months | 304 | $ | 35,473,475 | 806,137 | 4.1 | $ | 4,308,496 | $ | 5.34 | $ | 11.84 | ||||||||||||||||||||||||||||||||
New | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 26 | $ | 3,531,149 | 70,083 | 4.9 | $ | 391,226 | $ | 5.58 | $ | 10.17 | ||||||||||||||||||||||||||||||||
4th Quarter 2012 | 41 | 7,941,994 | 122,439 | 4.6 | 1,334,631 | 10.90 | 13.32 | ||||||||||||||||||||||||||||||||||||
3rd Quarter 2012 | 39 | 5,763,260 | 118,590 | 6.1 | 796,387 | 6.72 | 11.65 | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2012 | 50 | 3,598,577 | 105,722 | 3.4 | 727,972 | 6.89 | 10.45 | ||||||||||||||||||||||||||||||||||||
Total - 12 months | 156 | $ | 20,834,980 | 416,834 | 4.8 | $ | 3,250,216 | $ | 7.80 | $ | 11.59 | ||||||||||||||||||||||||||||||||
Renewal | |||||||||||||||||||||||||||||||||||||||||||
1st Quarter 2013 | 45 | $ | 3,548,868 | 82,317 | 3.0 | $ | 326,534 | $ | 3.97 | $ | 13.46 | ||||||||||||||||||||||||||||||||
4th Quarter 2012 | 37 | 3,311,919 | 119,944 | 3.3 | 415,056 | 3.46 | 11.63 | ||||||||||||||||||||||||||||||||||||
3rd Quarter 2012 | 24 | 1,910,157 | 60,511 | 2.4 | 147,005 | 2.43 | 12.44 | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2012 | 42 | 5,867,551 | 126,531 | 3.9 | 169,685 | 1.34 | 11.53 | ||||||||||||||||||||||||||||||||||||
Total - 12 months | 148 | $ | 14,638,495 | 389,303 | 3.3 | $ | 1,058,280 | $ | 2.72 | $ | 12.11 |
(1) | Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage. |
(2) | Weighted average of tenant improvements (TI) and incentives is determined on the basis of square footage. |
(3) | Estimated amount per signed lease. Actual cost of construction may vary. Does not include first generation costs for TI and leasing commission costs needed for new acquisitions or redevelopment of a property to bring the property to operating standards for its intended use. |
(4) | Contractual rent represents contractual minimum rent under the new lease for the first month, excluding concessions. |
(5) | Prior contractual rent represents contractual minimum rent under the prior lease for the final month. |
Whitestone REIT LEASE EXPIRATIONS(1) | ||||||||||||||||||||
Annualized Base Rent(2) | ||||||||||||||||||||
Gross Leasable Area | as of March 31, 2013 | |||||||||||||||||||
Year | Number of Leases | Square Feet | Percent of Gross Leasable Area | Amount (in thousands) | Percent of Total | Per Square Foot | ||||||||||||||
2013 | 266 | 567,053 | 13.0 | % | $ | 7,989 | 17.9 | % | $ | 14.09 | ||||||||||
2014 | 255 | 711,060 | 16.3 | % | 8,807 | 19.7 | % | 12.39 | ||||||||||||
2015 | 177 | 553,925 | 12.7 | % | 6,188 | 13.9 | % | 11.17 | ||||||||||||
2016 | 136 | 407,737 | 9.3 | % | 5,347 | 12.0 | % | 13.11 | ||||||||||||
2017 | 116 | 397,236 | 9.1 | % | 5,597 | 12.5 | % | 14.09 | ||||||||||||
2018 | 54 | 308,081 | 7.1 | % | 2,595 | 5.8 | % | 8.42 | ||||||||||||
2019 | 26 | 154,033 | 3.5 | % | 2,352 | 5.3 | % | 15.27 | ||||||||||||
2020 | 14 | 71,545 | 1.6 | % | 1,102 | 2.5 | % | 15.40 | ||||||||||||
2021 | 14 | 129,429 | 3.0 | % | 1,402 | 3.1 | % | 10.83 | ||||||||||||
2022 | 19 | 151,571 | 3.5 | % | 1,616 | 3.6 | % | 10.66 | ||||||||||||
Total | 1,077 | 3,451,670 | 79.1 | % | $ | 42,995 | 96.3 | % | $ | 12.46 |
(1) | Lease expirations table reflects rents in place as of March 31, 2013, and does not include option periods. |
(2) | Annualized Base Rent represents the monthly base rent as of March 31, 2013 for each tenant multiplied by 12. |
Whitestone REIT and Subsidiaries Property Details As of March 31, 2013 | ||||||||||||||||||||||
Community Name | Location | Year Built/ Renovated | Gross Leasable Area | Percent Occupied | Annualized Base Rental Revenue (in thousands) (1) | Average Base Rental Revenue Per Sq. Ft. (2) | Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3) | |||||||||||||||
Retail Communities: | ||||||||||||||||||||||
Ahwatukee Plaza | Phoenix | 1979 | 72,650 | 100 | % | $ | 881 | 12.13 | $ | 12.46 | ||||||||||||
Bellnott Square | Houston | 1982 | 73,930 | 41 | % | 291 | 9.60 | 9.37 | ||||||||||||||
Bissonnet/Beltway | Houston | 1978 | 29,205 | 95 | % | 324 | 11.68 | 11.61 | ||||||||||||||
Centre South | Houston | 1974 | 39,134 | 84 | % | 238 | 7.24 | 8.79 | ||||||||||||||
The Citadel | Phoenix | 1985 | 28,547 | 85 | % | 355 | 14.63 | 16.32 | ||||||||||||||
Desert Canyon | Phoenix | 2000 | 62,533 | 71 | % | 527 | 11.87 | 12.83 | ||||||||||||||
Gilbert Tuscany Village | Phoenix | 2009 | 49,415 | 49 | % | 395 | 16.31 | 19.50 | ||||||||||||||
Holly Knight | Houston | 1984 | 20,015 | 100 | % | 356 | 17.79 | 18.37 | ||||||||||||||
Headquarters Village | Dallas | 2009 | 89,134 | 100 | % | 2,328 | 26.12 | 26.12 | ||||||||||||||
Kempwood Plaza | Houston | 1974 | 101,008 | 100 | % | 855 | 8.46 | 8.41 | ||||||||||||||
Lion Square | Houston | 1980 | 117,592 | 100 | % | 1,116 | 9.49 | 9.67 | ||||||||||||||
MarketPlace At Central | Phoenix | 2000 | 111,130 | 45 | % | 416 | 8.32 | 8.56 | ||||||||||||||
Paradise Plaza | Phoenix | 1993 | 125,898 | 89 | % | 1,396 | 12.46 | 13.22 | ||||||||||||||
Pinnacle of Scottsdale | Phoenix | 1991 | 113,108 | 100 | % | 2,138 | 18.90 | 19.10 | ||||||||||||||
Providence | Houston | 1980 | 90,327 | 88 | % | 734 | 9.23 | 8.42 | ||||||||||||||
Shaver | Houston | 1978 | 21,926 | 93 | % | 252 | 12.36 | 11.73 | ||||||||||||||
Shops at Pecos Ranch | Phoenix | 2009 | 78,767 | 100 | % | 1,762 | 22.37 | 22.37 | ||||||||||||||
Shops at Starwood | Dallas | 2006 | 55,385 | 100 | % | 1,481 | 26.74 | 27.41 | ||||||||||||||
South Richey | Houston | 1980 | 69,928 | 83 | % | 385 | 6.63 | 8.81 | ||||||||||||||
Spoerlein Commons | Chicago | 1987 | 41,455 | 92 | % | 784 | 20.56 | 20.27 | ||||||||||||||
SugarPark Plaza | Houston | 1974 | 95,032 | 100 | % | 1,026 | 10.80 | 12.13 | ||||||||||||||
Sunridge | Houston | 1979 | 49,359 | 99 | % | 474 | 9.70 | 9.61 | ||||||||||||||
Terravita Marketplace | Phoenix | 1997 | 102,733 | 95 | % | 1,311 | 13.43 | 13.49 | ||||||||||||||
Torrey Square | Houston | 1983 | 105,766 | 88 | % | 630 | 6.77 | 8.67 | ||||||||||||||
Town Park | Houston | 1978 | 43,526 | 100 | % | 810 | 18.61 | 18.08 | ||||||||||||||
Webster Point | Houston | 1984 | 26,060 | 79 | % | 221 | 10.73 | 10.20 | ||||||||||||||
Westchase | Houston | 1978 | 49,573 | 88 | % | 521 | 11.94 | 11.86 | ||||||||||||||
Windsor Park | San Antonio | 1992 | 196,458 | 85 | % | 1,153 | 6.90 | 9.50 | ||||||||||||||
2,059,594 | 87 | % | 23,160 | 12.93 | 13.51 | |||||||||||||||||
Office/Flex Communities: | ||||||||||||||||||||||
Brookhill | Houston | 1979 | 74,757 | 86 | % | $ | 313 | $ | 4.87 | $ | 5.09 | |||||||||||
Corporate Park Northwest | Houston | 1981 | 185,627 | 73 | % | 1,466 | 10.82 | 10.96 | ||||||||||||||
Corporate Park West | Houston | 1999 | 175,665 | 93 | % | 1,391 | 8.51 | 8.72 | ||||||||||||||
Corporate Park Woodland | Houston | 2000 | 99,937 | 96 | % | 827 | 8.62 | 8.75 | ||||||||||||||
Dairy Ashford | Houston | 1981 | 42,902 | 99 | % | 250 | 5.89 | 5.73 | ||||||||||||||
Holly Hall | Houston | 1980 | 90,000 | 100 | % | 753 | 8.37 | 8.26 | ||||||||||||||
Interstate 10 | Houston | 1980 | 151,000 | 79 | % | 650 | 5.45 | 5.52 | ||||||||||||||
Main Park | Houston | 1982 | 113,410 | 96 | % | 684 | 6.28 | 6.65 | ||||||||||||||
Plaza Park | Houston | 1982 | 105,530 | 77 | % | 731 | 9.00 | 8.92 |
Whitestone REIT and Subsidiaries Property Details As of March 31, 2013 (continued) | ||||||||||||||||||||||
Community Name | Location | Year Built/ Renovated | Gross Leasable Area | Percent Occupied | Annualized Base Rental Revenue (in thousands) (1) | Average Base Rental Revenue Per Sq. Ft. (2) | Average Net Effective Annual Base Rent Per Leased Sq. Ft.(3) | |||||||||||||||
Westbelt Plaza | Houston | 1978 | 65,619 | 84 | % | 461 | 8.36 | 8.59 | ||||||||||||||
Westgate | Houston | 1984 | 97,225 | 90 | % | 541 | 6.18 | 5.83 | ||||||||||||||
1,201,672 | 87 | % | 8,067 | 7.72 | 7.81 | |||||||||||||||||
Office Communities: | ||||||||||||||||||||||
9101 LBJ Freeway | Dallas | 1985 | 125,874 | 72 | % | $ | 1,408 | $ | 15.54 | $ | 15.61 | |||||||||||
Featherwood | Houston | 1983 | 49,760 | 89 | % | 836 | 18.88 | 20.28 | ||||||||||||||
Pima Norte | Phoenix | 2007 | 33,417 | 21 | % | 136 | 19.38 | 20.67 | ||||||||||||||
Royal Crest | Houston | 1984 | 24,900 | 60 | % | 201 | 13.45 | 13.21 | ||||||||||||||
Uptown Tower | Dallas | 1982 | 253,981 | 82 | % | 3,308 | 15.88 | 17.08 | ||||||||||||||
Woodlake Plaza | Houston | 1974 | 106,169 | 89 | % | 1,493 | 15.80 | 16.50 | ||||||||||||||
Zeta Building | Houston | 1982 | 37,740 | 79 | % | 481 | 16.13 | 16.43 | ||||||||||||||
631,841 | 77 | % | 7,863 | 16.16 | 16.89 | |||||||||||||||||
Total/Weighted Average- Operating Portfolio | 3,893,107 | 86 | % | 39,090 | 11.68 | 12.54 | ||||||||||||||||
Dana Park | Phoenix | 2007 | 310,979 | 71 | % | 3,586 | 16.24 | 17.47 | ||||||||||||||
Fountain Square | Phoenix | 1986 | 118,209 | 71 | % | 1,138 | 13.56 | 15.24 | ||||||||||||||
The Shops at Pinnacle Peak | Phoenix | 2000 | 41,530 | 76 | % | 587 | 18.60 | 18.79 | ||||||||||||||
Total/Weighted Average - Development Portfolio | 470,718 | 72 | % | 5,311 | 15.67 | 17.04 | ||||||||||||||||
Dana Park Development | Phoenix | — | — | % | — | — | — | |||||||||||||||
Pinnacle Phase II | Phoenix | — | — | % | — | — | — | |||||||||||||||
Shops at Starwood Phase III | Dallas | — | — | % | — | — | — | |||||||||||||||
Total/Weighted Average - Property Held For Development (4) | — | — | % | — | — | — | ||||||||||||||||
Grand Total/Weighted Average | 4,363,825 | 84 | % | $ | 44,401 | $ | 12.11 | $ | 12.66 |
(1) | Calculated as the tenant's actual March 31, 2013 base rent (defined as cash base rents including abatements) multiplied by 12. Excludes vacant space as of March 31, 2013. Because annualized base rental revenue is not derived from historical results that were accounted for in accordance with generally accepted accounting principles, historical results differ from the annualized amounts. Total abatements for leases in effect as of March 31, 2013 equaled approximately $189,000 for the month ended March 31, 2013. |
(2) | Calculated as annualized base rent divided by square feet leased as of March 31, 2013. Excludes vacant space as of March 31, 2013. |
(3) | Represents (i) the contractual base rent for leases in place as of March 31, 2013, calculated on a straight-line basis to reflect changes in rental rates throughout the lease term and amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (ii) square footage under commenced leases as of March 31, 2013. |
(4) | As of March 31, 2013, these properties are held for development with no gross leasable area. |
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