Whitestone REIT Expands and Extends $750 Million Credit Facility

Core Viewpoint - Whitestone REIT has successfully amended, expanded, and extended its $750 million credit facility, which includes a $375 million revolver and a $375 million term loan, enhancing its financial flexibility and liquidity [1][2]. Credit Facility Details - The new credit facility includes a $215 million increase in size, lower interest rates, and extended maturities, with the revolver maturing in September 2029 and the term loan in January 2031 [2]. - The initial interest rate for the revolver is SOFR plus 1.40%, while the term loan has an initial interest rate of SOFR plus 1.35% [2]. - Interest rate swaps have been entered into to fix the interest rates on the $375 million term loan, locking in a rate between 3.36% and 3.42% (plus 1.35%) until maturity [2]. Financial Performance and Strategy - The company has improved its leverage metrics by increasing EBITDAre and achieving top quartile Same Store Net Operating Income Growth, focusing on disciplined capital spending [2]. - The capitalization rate used for valuation has improved from 7% to 6.75%, reflecting the strengthening of operations and financial position [2]. - The company aims for a 5-7% Core FFO per share growth target in 2026, 2027, and 2028, supported by the new credit facility [7]. Company Overview - Whitestone REIT is a community-centered real estate investment trust that focuses on acquiring, owning, operating, and developing open-air retail centers in rapidly growing markets such as Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio [4]. - The company's retail centers are designed to provide convenience, featuring a mix of service-oriented tenants that include food, self-care, services, education, and entertainment [5].