) recently acquired Heritage Trace Plaza - its first property in
Fort Worth, TX - for $20.1 million. This real estate investment
trust (REIT) financed the purchase with its corporate credit
facility. However, shares of Whitestone dipped 0.20% in yesterday's
trading session on broader market concerns.
Spanning 70,431 square feet, Heritage Trace Plaza is a Class A
Community Center Property. This mixed-use neighborhood property is
positioned at one of the busiest intersections in Alliance region.
The asset is 98% leased and tenant roster includes Texas Health
Quest Diagnostics Inc.
), Subway and
The Allstate Corporation
Notably, this family-focused property is Whitestone's 6
asset in the Dallas/Ft. Worth market and 61
in the U.S. Additionally, the inclusion of this asset increased
Whitestone's footprint in Dallas/Ft. Worth metroplex to about
600,000 square feet.
This acquisition is a strategic fit for Whitestone given the
strong demographics of the region and diverse tenant mix.
Importantly, the company expects the buyout to be accretive to 2014
and 2015 funds from operations (FFO) per share, after interest
costs, by 2 cents and 4 cents, respectively. This assumption is
based on the current shares outstanding of Whitestone.
Moreover, the Dallas/Ft. Worth market is one of the flourishing
markets of the U.S., with rising population and job growth figures.
Hence, this off-market investment is expected to enhance
Whitestone's portfolio quality and pave the way for bottom-line
Whitestone is scheduled to release its second-quarter 2014
results on Aug 5, after the closing bell. The Zacks Consensus
Estimate for FFO for the quarter is pegged at 28 cents per share,
representing a year-over-year growth of 9.62%.
Whitestone currently carries a Zacks Rank #3 (Hold).
: FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.
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WHITESTONE REIT (WSR): Free Stock Analysis
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