Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”)
provided the following response to MCB’s recent indication of
interest:
P. David BrambleMCB Real EstateBaltimore, MD 21211
Dear Mr. Bramble,
The Whitestone Board of Trustees has reviewed your October 9,
2024, indication of interest. The Board’s review considered the $15
per share indication of interest against numerous data points,
including, but not limited to, sell side Net Asset Value, Net Asset
Value utilizing peer capitalization rate indications, sell side
estimates and price targets and a Discounted Cash Flow valuation
utilizing the company’s internal 5-year forecast. While your
indication of interest is premised on public market valuation, the
Board views NAV and DCF as critical to determining the intrinsic
value of Whitestone REIT. Your valuation falls short on both marks.
The Whitestone Board of Trustees has unanimously determined to
reject your indication of interest and does not believe it reflects
an appropriate valuation to enter into discussions toward a
negotiated transaction.
The Whitestone Board also considered the following in rejecting
your indication of interest:
- The Whitestone REIT Board of
Trustees believes the indication of interest is opportunistically
timed to take advantage of Whitestone’s performance while the
company is still gaining momentum under the new management
team. Given the all cash indication of interest,
Whitestone believes that a transaction at this valuation would
deprive all other Whitestone shareholders of the opportunity to
maximize the value of their investment while transferring
additional value directly to MCB.
- Whitestone REIT is
well-positioned for growth. As our financial results
disclosed today demonstrate, Whitestone is making great progress
against its strategic objectives and gaining momentum while driving
shareholder value. Key highlights include:
- Reiteration of 2024’s Core FFO per
share estimate of $0.98 to $1.04, targeting 11% growth in
2024 versus 2023 (at the midpoint)
- An increased Same Store NOI growth
target of 3.75% – 4.75%, after delivering year-to-date Same
Store NOI growth of 4.9%
- Q3 2024 Debt / EBITDAre ratio of
7.2x, a 0.6x improvement versus one year ago
- Accretive asset recycling with
disposition cap rates over 100 basis points below acquisition cap
rates while simultaneously positioning Whitestone for
future growth
- Whitestone’s strong
performance has driven total shareholder returns of over 60% since
the current management team took over on January 18,
2022.
Source: S&P Capital IQ (Oct
25, 2024 Closing Price)
The Whitestone Board of Trustees continues to consider MCB an
important shareholder and remains committed to acting in the best
interests of all shareholders to maximize shareholder value.
Sincerely,
Whitestone Board of Trustees:
David T. Taylor Nandita V. Berry Julia B. Buthman Amy S. Feng
David K. Holeman Jeffrey A. Jones
Investor and Media Contacts:
David MordyDirector of Investor RelationsWhitestone REIT(713)
435-2219ir@whitestonereit.com
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a community-centered real estate
investment trust (REIT) that acquires, owns, operates, and develops
open-air, retail centers located in some of the fastest growing
markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston
and San Antonio.
Our centers are convenience focused: merchandised with a mix of
service-oriented tenants providing food (restaurants and grocers),
self-care (health and fitness), services (financial and logistics),
education and entertainment to the surrounding communities. The
Company believes its strong community connections and deep tenant
relationships are key to the success of its current centers and its
acquisition strategy. For additional information, please visit
www.whitestonereit.com.
Forward-Looking Statements
This Report contains forward-looking statements within the
meaning of the federal securities laws, including discussion and
analysis of our financial condition and results of operations,
statements related to our expectations regarding the performance of
our business, and other matters. These forward-looking statements
are not historical facts but are the intent, belief or current
expectations of our management based on its knowledge and
understanding of our business and industry. Forward looking
statements are typically identified by the use of terms such as
“may,” “will,” “should,” “potential,” “predicts,” “anticipates,”
“expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” or
the negative of such terms and variations of these words and
similar expressions, although not all forward-looking statements
include these words. These statements are not guarantees of future
performance and are subject to risks, uncertainties and other
factors, some of which are beyond our control, are difficult to
predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking
statements.
Factors that could cause actual results to differ materially
from any forward-looking statements made in this Report include:
the imposition of federal income taxes if we fail to qualify as a
real estate investment trust (“REIT”) in any taxable year or forego
an opportunity to ensure REIT status; uncertainties related to the
national economy and the real estate industry, both in general and
in our specific markets; legislative or regulatory changes,
including changes to laws governing REITs; adverse economic or real
estate developments or conditions in Texas or Arizona, Houston,
Dallas, and Phoenix in particular, including the potential impact
of public health emergencies, on our tenants’ ability to pay their
rent, which could result in bad debt allowances or straight-line
rent reserve adjustments; increases in interest rates, including as
a result of inflation, which may increase our operating costs or
general and administrative expenses; our current geographic
concentration in the Houston, Dallas, and Phoenix metropolitan area
markets makes us susceptible to potential local economic downturns;
natural disasters, such as floods and hurricanes, which may
increase as a result of climate change may adversely affect our
returns and adversely impact our existing and prospective tenants;
increasing focus by stakeholders on environmental, social, and
governance matters; financial institution disruptions; availability
and terms of capital and financing, both to fund our operations and
to refinance our indebtedness as it matures; decreases in rental
rates or increases in vacancy rates; harm to our reputation,
ability to do business and results of operations as a result of
improper conduct by our employees, agents or business partners;
litigation risks; lease-up risks, including leasing risks arising
from exclusivity and consent provisions in leases with significant
tenants; our inability to renew tenant leases or obtain new tenant
leases upon the expiration of existing leases; risks related to
generative artificial intelligence tools and language models, along
with the potential interpretations and conclusions they might make
regarding our business and prospects, particularly concerning the
spread of misinformation; our inability to generate sufficient cash
flows due to market conditions, competition, uninsured losses,
changes in tax or other applicable laws; geopolitical conflicts,
such as the ongoing conflict between Russia and Ukraine, the
conflict in the Gaza Strip and unrest in the Middle East; the need
to fund tenant improvements or other capital expenditures out of
our operating cash flow; and the risk that we are unable to raise
capital for working capital, acquisitions or other uses on
attractive terms or at all: the ultimate amount we will collect in
connection with the redemption of our equity investment in
Pillarstone Capital REIT Operating Partnership LP (“Pillarstone” or
“Pillarstone OP.”); and other factors detailed in the Company's
most recent Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and other documents the Company files with the Securities and
Exchange Commission from time to time.
Non-GAAP Financial Measures
This release contains supplemental financial measures that are
not calculated pursuant to U.S. generally accepted accounting
principles (“GAAP”) including EBITDAre, FFO, NOI and net debt.
Following are explanations and reconciliations of these metrics to
their most comparable GAAP metric.
EBITDAre: The National Association of Real Estate Investment
Trusts (“NAREIT”) defines EBITDAre as net income computed in
accordance with GAAP, plus interest expense, income tax expense,
depreciation and amortization and impairment write-downs of
depreciable property and of investments in unconsolidated
affiliates caused by a decrease in value of depreciable property in
the affiliate, plus or minus losses and gains on the disposition of
depreciable property, including losses/gains on change in control
and adjustments to reflect the entity’s share of EBITDAre of the
unconsolidated affiliates and consolidated affiliates with
non-controlling interests. The Company calculates EBITDAre in a
manner consistent with the NAREIT definition. Management believes
that EBITDAre represents a supplemental non-GAAP performance
measure that provides investors with a relevant basis for comparing
REITs. There can be no assurance the EBITDAre as presented by the
Company is comparable to similarly titled measures of other REITs.
EBITDAre should not be considered as an alternative to net
income or other measurements under GAAP as indicators of operating
performance or to cash flows from operating, investing or financing
activities as measures of liquidity. EBITDAre does not reflect
working capital changes, cash expenditures for capital improvements
or principal payments on indebtedness.
FFO: Funds From Operations: The National Association of Real
Estate Investment Trusts (“NAREIT”) defines FFO as net income
(loss) (calculated in accordance with GAAP), excluding depreciation
and amortization related to real estate, gains or losses from the
sale of certain real estate assets, gains and losses from change in
control, and impairment write-downs of certain real estate assets
and investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity. We calculate FFO in a manner consistent with
the NAREIT definition and also include adjustments for our
unconsolidated real estate partnership.
Core Funds from Operations (“Core FFO”) is a non-GAAP measure.
From time to time, we report or provide guidance with respect
to “Core FFO” which removes the impact of certain
non-recurring and non-operating transactions or other items we do
not consider to be representative of our core operating results
including, without limitation, default interest on debt of real
estate partnership, extinguishment of debt cost, gains or losses
associated with litigation involving the Company that is not in the
normal course of business, and proxy contest professional
fees.
Management uses FFO and Core FFO as a supplemental measure to
conduct and evaluate our business because there are certain
limitations associated with using GAAP net income (loss) alone as
the primary measure of our operating performance. Historical cost
accounting for real estate assets in accordance with GAAP
implicitly assumes that the value of real estate assets diminishes
predictably over time. Because real estate values instead have
historically risen or fallen with market conditions, management
believes that the presentation of operating results for real estate
companies that use historical cost accounting is insufficient by
itself. In addition, securities analysts, investors and other
interested parties use FFO and Core FFO as the primary metric
for comparing the relative performance of equity REITs.
FFO and Core FFO should not be considered as an alternative to
net income or other measurements under GAAP, as an indicator of our
operating performance or to cash flows from operating, investing or
financing activities as a measure of liquidity. FFO and Core
FFO do not reflect working capital changes, cash expenditures for
capital improvements or principal payments on indebtedness.
Although our calculation of FFO is consistent with that of
NAREIT, there can be no assurance that FFO and Core FFO
presented by us is comparable to similarly titled measures of other
REITs.
NOI: Net Operating Income: Management believes that NOI is
a useful measure of our property operating performance. We define
NOI as operating revenues (rental and other revenues) less property
and related expenses (property operation and maintenance and real
estate taxes). Other REITs may use different methodologies for
calculating NOI and, accordingly, our NOI may not be comparable to
other REITs. Because NOI excludes general and administrative
expenses, depreciation and amortization, equity or deficit in
earnings of real estate partnership, interest expense, interest,
dividend and other investment income, provision for income taxes,
gain on sale of property from discontinued
operations, management fee (net of related expenses)
and gain or loss on sale or disposition of assets, and
includes NOI of real estate partnership (pro rata) and net
income attributable to noncontrolling interest, it provides a
performance measure that, when compared year-over-year, reflects
the revenues and expenses directly associated with owning and
operating commercial real estate properties and the impact to
operations from trends in occupancy rates, rental rates and
operating costs, providing perspective not immediately apparent
from net income. We use NOI to evaluate our operating performance
since NOI allows us to evaluate the impact that factors such as
occupancy levels, lease structure, lease rates and tenant base have
on our results, margins and returns. In addition, management
believes that NOI provides useful information to the investment
community about our property and operating performance when
compared to other REITs since NOI is generally recognized as a
standard measure of property performance in the real estate
industry. However, NOI should not be viewed as a measure of our
overall financial performance since it does not reflect the level
of capital expenditure and leasing costs necessary to maintain the
operating performance of our properties, including general and
administrative expenses, depreciation and amortization, equity or
deficit in earnings of real estate partnership, interest expense,
interest, dividend and other investment income, provision for
income taxes, gain on sale of property from discontinued
operations, management fee (net of related expenses) and gain or
loss on sale or disposition of assets.
Same Store NOI: Management believes that Same Store NOI is a
useful measure of the Company’s property operating performance
because it includes only the properties that have been owned for
the entire period being compared, and it is frequently used by
the investment community. Same Store NOI assists in eliminating
differences in NOI due to the acquisition or disposition of
properties during the period being presented, providing a more
consistent measure of the Company’s performance. The Company
defines Same Store NOI as operating revenues (rental and other
revenues, excluding straight-line rent adjustments, amortization of
above/below market rents, and lease termination fees) less property
and related expenses (property operation and maintenance and real
estate taxes), Non-Same Store NOI, and NOI of our investment in
Pillarstone OP (pro rata). We define “Non-Same Stores” as
properties that have been acquired since the beginning of the
period being compared and properties that have been sold, but not
classified as discontinued operations. Other REITs may use
different methodologies for calculating Same Store NOI, and
accordingly, the Company's Same Store NOI may not be comparable to
that of other REITs.
| |
| Whitestone
REIT and Subsidiaries |
|
RECONCILIATION OF NON-GAAP MEASURES |
| Initial
& Revised Full Year Guidance for 2024 |
| (in
thousands, except per share and per unit data) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Q3 Revised Range Full Year
2024 (1) |
|
Projected Range Full Year 2024 |
| |
Low |
|
High |
|
Low |
|
High |
| FFO
and Core FFO per diluted share and OP unit |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
$ |
24,602 |
|
|
$ |
27,602 |
|
|
$ |
16,600 |
|
$ |
19,600 |
| Adjustments
to reconcile to FFO |
|
|
|
|
|
|
|
|
|
|
|
| Depreciation
and amortization of real estate assets |
|
34,705 |
|
|
|
34,705 |
|
|
|
34,252 |
|
|
34,252 |
| Depreciation
and amortization of real estate assets of real estate partnership
(pro rata) |
|
133 |
|
|
|
133 |
|
|
|
133 |
|
|
133 |
| Gain on sale
of properties |
|
(10,212 |
) |
|
|
(10,212 |
) |
|
|
— |
|
|
— |
| FFO |
$ |
49,228 |
|
|
$ |
52,228 |
|
|
$ |
50,985 |
|
|
53,985 |
| Adjustments
to reconcile to Core FFO |
|
|
|
|
|
|
|
|
|
|
|
| Proxy
contest costs |
|
1,757 |
|
|
|
1,757 |
|
|
|
— |
|
|
— |
| Core
FFO |
$ |
50,985 |
|
|
|
53,985 |
|
|
$ |
50,985 |
|
$ |
53,985 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
| Diluted
shares |
|
51,262 |
|
|
|
51,262 |
|
|
|
51,262 |
|
|
51,262 |
| OP
Units |
|
695 |
|
|
|
695 |
|
|
|
695 |
|
|
695 |
| Diluted
share and OP Units |
|
51,957 |
|
|
|
51,957 |
|
|
|
51,957 |
|
|
51,957 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income
attributable to Whitestone REIT per diluted share |
$ |
0.47 |
|
|
$ |
0.53 |
|
|
$ |
0.32 |
|
$ |
0.38 |
| |
|
|
|
|
|
|
|
|
|
|
|
| FFO per
diluted share and OP Unit |
$ |
0.95 |
|
|
$ |
1.01 |
|
|
$ |
0.98 |
|
$ |
1.04 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Core FFO per
diluted share and OP Unit |
$ |
0.98 |
|
|
$ |
1.04 |
|
|
$ |
0.98 |
|
$ |
1.04 |
| |
|
|
|
|
|
|
|
|
|
|
|
| (1) Includes a $10,212
gain on sale of properties and $1,757 in proxy contest costs. |
| |
| |
|
| Whitestone
REIT and Subsidiaries |
|
|
RECONCILIATION OF NON-GAAP MEASURES |
|
|
(continued) |
|
| (in
thousands) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
PROPERTY NET OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
7,624 |
|
|
|
$ |
2,486 |
|
|
|
$ |
19,556 |
|
|
|
$ |
17,639 |
|
|
|
General and administrative expenses |
|
|
4,878 |
|
|
|
|
5,392 |
|
|
|
|
17,610 |
|
|
|
|
15,651 |
|
|
|
Depreciation and amortization |
|
|
8,921 |
|
|
|
|
8,332 |
|
|
|
|
26,242 |
|
|
|
|
24,538 |
|
|
|
Deficit in earnings of real estate partnership (1) |
|
|
— |
|
|
|
|
375 |
|
|
|
|
28 |
|
|
|
|
1,627 |
|
|
|
Interest expense |
|
|
8,506 |
|
|
|
|
8,400 |
|
|
|
|
25,813 |
|
|
|
|
24,563 |
|
|
|
Interest, dividend and other investment income |
|
|
(3 |
) |
|
|
|
(11 |
) |
|
|
|
(15 |
) |
|
|
|
(49 |
) |
|
|
Provision for income taxes |
|
|
118 |
|
|
|
|
95 |
|
|
|
|
327 |
|
|
|
|
339 |
|
|
|
Gain on sale of properties |
|
|
(3,762 |
) |
|
|
|
(5 |
) |
|
|
|
(10,212 |
) |
|
|
|
(9,626 |
) |
|
|
Management fee, net of related expenses |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
16 |
|
|
|
Loss on disposal of assets, net |
|
|
111 |
|
|
|
|
480 |
|
|
|
|
183 |
|
|
|
|
500 |
|
|
|
NOI of real estate partnership (pro rata)(1) |
|
|
— |
|
|
|
|
667 |
|
|
|
|
183 |
|
|
|
|
1,883 |
|
|
|
Net income attributable to noncontrolling interests |
|
|
99 |
|
|
|
|
35 |
|
|
|
|
257 |
|
|
|
|
248 |
|
|
|
NOI |
|
$ |
26,492 |
|
|
|
$ |
26,246 |
|
|
|
$ |
79,972 |
|
|
|
$ |
77,329 |
|
|
| Non-Same
Store NOI (2) |
|
|
(1,330 |
) |
|
|
|
(1,074 |
) |
|
|
|
(5,389 |
) |
|
|
|
(4,228 |
) |
|
|
NOI of real estate partnership (pro rata) (1) |
|
|
— |
|
|
|
|
(667 |
) |
|
|
|
(183 |
) |
|
|
|
(1,883 |
) |
|
| NOI
less Non-Same Store NOI and NOI of real estate partnership (pro
rata) |
|
|
25,162 |
|
|
|
|
24,505 |
|
|
|
|
74,400 |
|
|
|
|
71,218 |
|
|
|
Same Store straight-line rent adjustments |
|
|
(695 |
) |
|
|
|
(833 |
) |
|
|
|
(2,581 |
) |
|
|
|
(2,390 |
) |
|
|
Same Store amortization of above/below market rents |
|
|
(221 |
) |
|
|
|
(214 |
) |
|
|
|
(600 |
) |
|
|
|
(607 |
) |
|
|
Same Store lease termination fees |
|
|
(30 |
) |
|
|
|
(300 |
) |
|
|
|
(298 |
) |
|
|
|
(600 |
) |
|
| Same
Store NOI (3) |
|
$ |
24,216 |
|
|
|
$ |
23,158 |
|
|
|
$ |
70,921 |
|
|
|
$ |
67,621 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) We rely on
reporting provided to us by our third-party partners for financial
information regarding the Company's investment in Pillarstone OP.
Because Pillarstone OP financial statements for the three and nine
months ended September 30, 2024 and 2023 have not been made
available to us, we have estimated deficit in earnings and pro rata
share of NOI of real estate partnership based on the information
available to us at the time of this Report. As of September 30,
2024, our ownership in Pillarstone OP no longer represents a
majority interest. On January 25, 2024, we exercised our notice of
redemption for substantially all of our investment in Pillarstone
OP. |
|
| (2) We define
“Non-Same Store” as properties that have been acquired since the
beginning of the period being compared and properties that have
been sold, but not classified as discontinued operations. For
purpose of comparing the three months ended September 30, 2024 to
the three months ended September 30, 2023, Non- Same Store includes
properties owned before July 1, 2023, and not sold before September
30, 2024, but not included in discontinued operations. For purposes
of comparing the nine months ended September 30, 2024 to the nine
months ended September 30, 2023, Non-Same Store includes properties
acquired between January 1, 2023 and September 30, 2024 and
properties sold between January 1, 2023 and September 30, 2024, but
not included in discontinued operations. |
|
| (3) We define “Same
Store” as properties that have been owned during the entire period
being compared. For purpose of comparing the three months ended
September 30, 2024 to the three months ended September 30, 2023,
Same Store includes properties owned before July 1, 2023 and not
sold before September 30, 2024. For purposes of comparing the nine
months ended September 30, 2024 to the nine months ended September
30, 2023, Same Store includes properties owned before January 1,
2023 and not sold before September 30, 2024. Straight line rent
adjustments, above/below market rents, and lease termination fees
are excluded. |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Whitestone
REIT and Subsidiaries |
|
|
RECONCILIATION OF NON-GAAP MEASURES |
|
|
(continued) |
|
| (in
thousands) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
| |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTIZATION FOR REAL ESTATE (EBITDAre) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Whitestone REIT |
|
$ |
7,624 |
|
|
$ |
2,486 |
|
|
$ |
19,556 |
|
|
17,639 |
|
|
|
Depreciation and amortization |
|
|
8,921 |
|
|
|
8,332 |
|
|
|
26,242 |
|
|
24,538 |
|
|
|
Interest expense |
|
|
8,506 |
|
|
|
8,400 |
|
|
|
25,813 |
|
|
24,563 |
|
|
|
Provision for income taxes |
|
|
118 |
|
|
|
95 |
|
|
|
327 |
|
|
339 |
|
|
|
Net income attributable to noncontrolling interests |
|
|
99 |
|
|
|
35 |
|
|
|
257 |
|
|
248 |
|
|
|
Deficit in earnings of real estate partnership (1) |
|
|
— |
|
|
|
375 |
|
|
|
28 |
|
|
1,627 |
|
|
|
EBITDAre adjustments for real estate partnership (1) |
|
|
— |
|
|
|
223 |
|
|
|
136 |
|
|
169 |
|
|
|
Gain on sale of properties |
|
|
(3,762 |
) |
|
|
(5 |
) |
|
|
(10,212 |
) |
|
(9,626 |
) |
|
|
Loss on disposal of assets |
|
|
111 |
|
|
|
480 |
|
|
|
183 |
|
|
500 |
|
|
|
EBITDAre |
|
$ |
21,617 |
|
|
$ |
20,421 |
|
|
$ |
62,330 |
|
|
59,997 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) We rely on
reporting provided to us by our third-party partners for financial
information regarding the Company's investment in Pillarstone OP.
Because Pillarstone OP financial statements for the three and nine
months ended September 30, 2024 and 2023 have not been made
available to us, we have estimated deficit in earnings in
Pillarstone OP no longer represents a majority interest. On January
25, 2024, we exercised our notice of redemption for substantially
all of our investment in Pillarstone OP. |
|
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months
Ended |
|
|
Nine Months
Ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Debt/EBITDAre Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding debt, net of insurance financing |
|
$ |
633,437 |
|
|
|
$ |
632,353 |
|
|
|
$ |
633,437 |
|
|
|
$ |
632,353 |
|
|
|
Less: Cash |
|
|
(2,534 |
) |
|
|
|
(2,976 |
) |
|
|
|
(2,534 |
) |
|
|
|
(2,976 |
) |
|
|
Less: Deposit due to real estate partnership debt default |
|
|
(13,633 |
) |
|
|
|
— |
|
|
|
|
(13,633 |
) |
|
|
|
— |
|
|
|
Add: Proportional share of net debt of unconsolidated real estate
partnership (1) |
|
|
— |
|
|
|
|
8,685 |
|
|
|
|
— |
|
|
|
|
8,685 |
|
|
|
Total Net Debt |
|
$ |
617,270 |
|
|
|
$ |
638,062 |
|
|
|
$ |
617,270 |
|
|
|
$ |
638,062 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAre |
|
$ |
21,617 |
|
|
|
$ |
20,421 |
|
|
|
$ |
62,330 |
|
|
|
$ |
59,997 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of partial period acquisitions and dispositions |
|
$ |
(172 |
) |
|
|
$ |
— |
|
|
|
$ |
(1,004 |
) |
|
|
$ |
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma EBITDAre |
|
$ |
21,445 |
|
|
|
$ |
20,421 |
|
|
|
$ |
61,326 |
|
|
|
$ |
59,997 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized pro forma EBITDAre |
|
$ |
85,780 |
|
|
|
$ |
81,684 |
|
|
|
$ |
81,768 |
|
|
|
$ |
79,996 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of debt to pro forma EBITDAre |
|
|
7.2 |
|
|
|
|
7.8 |
|
|
|
|
7.5 |
|
|
|
|
8.0 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) We rely on
reporting provided to us by our third-party partners for financial
information regarding the Company's investment in Pillarstone OP.
Because Pillarstone OP financial statements as of September 30,
2023 have not been made available to us, we have estimated
proportional share of net debt based on the information available
to us at the time of this Report |
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/60363def-9013-4ae3-8f6d-5da763e12eea
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