Back to top

Analyst Blog

Texas-based Whitestone REIT (WSR - Snapshot Report) recently initiated redevelopment and repositioning programs for 4 community centered properties – Woodlake Plaza, Torrey Square, Main Park and Lion Square – in Houston, Texas. The move comes as part of the company’s effort to capitalize on market demand and enjoy increased rental rates.

Woodlake Plaza (106,000 square feet) is a community office building and Main Park (113,000 square feet) is a community center. Lion Square (118,000 square feet) and Torrey Square (106,000 square feet) are retail properties. Notably, both Lion Square and Torrey Square boast over 30 stores.  DD's Discount Store of Ross Stores Inc. (ROST - Analyst Report) is the principal tenant at Lion Square. On the other hand, Torrey Square is chiefly anchored by Family Dollar Stores Inc. (FDO - Analyst Report), Teletron TV/Audio/Appliances and others. 

These favorably placed assets have a low cost basis that makes the company’s move more attractive. In addition, the growing Houston market offers adequate scope for these properties to enhance Whitestone’s revenues and operating income.

In addition to revamping, the company is striving to enhance its portfolio quality through opportunistic acquisitions in high-growth markets, mainly on the off-market front. In relation to this, last month, the company acquired Anthem Marketplace, a community center in Phoenix for $23.3 million. In Jun 2013, Whitestone bought Ariz.-based Class-A shopping center – Mercado at Scottsdale Ranch – for $21.3 million. We expect such activities to add value to the company’s earnings, going forward. 

Whitestone currently carries a Zacks Rank #4 (Sell). A better performing REIT is Acadia Realty Trust (AKR - Snapshot Report), which has a Zacks Rank #2 (Buy).

Note: 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.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%