Whitestone Reit · NYSE:WSR
Whitestone Reit — Investor Presentation (September 2007)
28 slides from Whitestone Reit's investor presentation, Sep 6, 2007
Slide 1: Slide 1
Slide 2: A Public Real Estate Company Creating Value In Real Estate
WHITESTONE REIT A Public Real Estate Company Creating Value In Real Estate
Slide 3: Office Retail Warehouse
WHITESTONE REIT Office Retail Warehouse
Slide 4: Current Markets and Planned Future Markets
WHITESTONE REIT Current Markets Corporate Headquarters Houston HOUSTON SAN ANTONIO DALLAS Planned Future Markets HOUSTON PHOENIX CHICAGO DALLAS
Slide 5: Company history and self-management
WHITESTONE REIT • Formed as Hartman Commercial Properties REIT in 1998 • Managed by 3rd party advisor and property manager through October 2006 • Became self-managed REIT in October 2006 by ending 3rd party contracts and hiring approximately 40 employees
Slide 6: Operating Partnership in an UPREIT structure
WHITESTONE REIT Substantially all of our business is conducted through an Operating Partnership in an UPREIT structure
Slide 7: UPREIT Organizational Structure
WHITESTONE REIT UPREIT Organizational Structure REIT Shareholders REIT (typically a trust or corporation) Umbrella Partnership (typically holds all property interests) Contributing Property Owners L.P. Interests Properties Put Rights (L.P. interests in exchange for cash or REIT Shares - 1 for 1)
Slide 8: Ownership, shares and dividend
WHITESTONE REIT • Majority of our properties were acquired from partnerships managed by former advisor in exchange for partnership operating units • REIT common shares sold for $10 per share through the “broker-dealer” network • Dividend paid is $.60 per year • Owners - Approximately 1,400 REIT shar
Slide 9: What we own
WHITESTONE REIT What we own • 36 properties in Texas • 3.1 million square feet • 3 different asset types • Properties range from 20,000 to 250,000 sq ft • Physical Occupancy - 83%
Slide 10: Houston
WHITESTONE REIT Houston
Slide 11: Dallas
WHITESTONE REIT Dallas
Slide 12: San Antonio
WHITESTONE REIT San Antonio
Slide 13: Financially Sound
WHITESTONE REIT Financially Sound • $170 million in book assets • 43% Debt to Book Asset Value Ratio • $90 million in equity • $16 million in EBITDA in 2006
Slide 14: Experienced Real Estate and Capital Markets Team
WHITESTONE REIT Experienced Real Estate and Capital Markets Team • Property Management • Property Development and Redevelopment • Leasing • Marketing • Acquisitions • Investor Relations • Centralized Systems and Reporting • Human Resources
Slide 15: Recent Accomplishments
WHITESTONE REIT Recent Accomplishments • Built an internal management team with expertise in real estate and capital markets with the development of a corporate culture of collaboration and teamwork • Strengthened the balance sheet allowing for greater flexibility Refinancing Restored LOC Increased
Slide 16: Recent Accomplishments
WHITESTONE REIT Recent Accomplishments • Establishment of an Executive Development and Leadership Program • Focus on overall tenant relations and overall property conditions • Approval of 5 Yr Business Plan by Board of Trustees
Slide 17: Five-Year Business Plan
WHITESTONE REIT Five-Year Business Plan • Focus on being a “Value Added REIT” • Capital raising will be a combination of accessing the private and public equity and debt markets, as well as joint ventures • Maximize value in current properties • Grow through strategic acquisitions including properti
Slide 18: Current Properties
WHITESTONE REIT Current Properties • Increase Value Through Redevelopment • Hold for Income and Growth • Sell in One to Five Years
Slide 19: Redevelopment Plan
WHITESTONE REIT Redevelopment Plan • Invest $37 million in redevelopment of 11 high potential properties • Current occupancy of 77% • Increase occupancy to 92% and increase average rental rates by 15% • Resulting in value creation of $26 million in 5 years
Slide 20: Property Redevelopment
Property Redevelopment
Slide 21: Bellnott Square
Bellnott Square
Slide 22: Westchase
Westchase
Slide 23: Five Year Growth Plan
WHITESTONE REIT Five Year Growth Plan • Grow our total asset base to $1.0 billion through the acquisition of 16.5 million square feet of commercial real estate in high potential markets including markets outside of Texas • Grow FFO by executing “value added” strategy • Bring liquidity to our stock b
Slide 24: Commercial Real Estate Industry Outlook
Commercial Real Estate Industry Outlook • Significant positive returns over the past several years - 7 years outperforming S&P - Returns are expected to moderate • Dividends will again garner attention • Real estate continues to attract significant amounts of capital - Risk adjusted returns elsewher
Slide 25: Whitestone REIT's Outlook
Whitestone REIT’s Outlook • Positive… • Opportunistic acquisitions • Property improvements to add value • Sell under performing assets - redeploy capital opportunistically • Strong balance sheet and good credit • Experienced and talented management • Moving toward public listing of stock
Slide 26: Whitestone REIT's Strengths
Whitestone REIT’s Strengths A COMPELLING VALUE PROPOSITION • Management focused on long term value creation • Strong balance sheet • Add value on the margin-acquire at discount to replacement cost • Capitalize on core competencies • Focus on strong markets
Slide 27: www.whitestonereit.com
WHITESTONE REIT www.whitestonereit.com
Slide 28: Investor Relations
Investor Relations •Investor Questions •Julie Nguyen 866-789-7348 x 3021 •Dick Vaughan x 3034 •Account Maintenance •American Stock Transfer (AST) www.amstock.com Shareholder Relations (800) 937-5449
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