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Whitestone (WSR) Buys Scottsdale Commons for $22.2 Million
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Whitestone REIT (WSR - Free Report) recently announced the acquisition of Scottsdale Commons in Scottsdale, AZ, for $22.2 million. The move comes as part of the company’s capital recycling program that is aimed at improving the overall portfolio quality through targeted dispositions and the acquisition of greater long-term value properties.
This 69,000-square-foot center is situated on the second most trafficked intersection in Scottsdale and acts as a gateway linking North Scottsdale and Paradise Valley. It is 96.6% occupied with 20 tenants.
The tenant roster includes names like Rosati’s Chicago Pizza, specialty butcher Rusty Nail Meats, U.S. Egg, pet care service provider Companion Pet Partners and BevMo. It enjoys solid trade area demographics with a three-mile average household income of $138k. With such an advantageous location, the property is expected to witness strong footfalls.
According to Whitestone REIT COO, Christine Mastandrea, “We have a great team and a strong presence in the Scottsdale market. This acquisition is accretive on day one and we believe our team can add significant additional value.”
WSR’s capital recycling program, which began in 2022, is on track and poises the company well for long-term profitability. This program is envisioned to match disposition proceeds with acquisition funding amounts, and the latest acquisition of Scottsdale Commons is also funded through this capital recycling program.
So far, this program has aggregated more than $100 million in acquisitions with an annual base rent of around $27 per square foot and a combined capitalization rate of 7.1% based on actual or projected year one net operating income (NOI).
Meanwhile, properties sold so far have an annual base rent per square foot of $18. The properties were sold at an aggregate capitalization rate of 6.2% based on trailing 12-month NOI. This redeployment of proceeds to acquire premium properties that have greater upside potential is like to drive the company’s growth over the long run.
Shares of this Zacks Rank #3 (Hold) company have rallied 20.2% in the past six months, outperforming the real estate market’s increase of 10.3%.
The Zacks Consensus Estimate for HST’s 2024 FFO per share is pegged at $1.97, which suggests year-over-year growth of 2.6%.
The Zacks Consensus Estimate for IRM’s 2024 FFO per share stands at $4.42, which indicates an increase of 7.3% from the year-ago quarter.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Whitestone (WSR) Buys Scottsdale Commons for $22.2 Million
Whitestone REIT (WSR - Free Report) recently announced the acquisition of Scottsdale Commons in Scottsdale, AZ, for $22.2 million. The move comes as part of the company’s capital recycling program that is aimed at improving the overall portfolio quality through targeted dispositions and the acquisition of greater long-term value properties.
This 69,000-square-foot center is situated on the second most trafficked intersection in Scottsdale and acts as a gateway linking North Scottsdale and Paradise Valley. It is 96.6% occupied with 20 tenants.
The tenant roster includes names like Rosati’s Chicago Pizza, specialty butcher Rusty Nail Meats, U.S. Egg, pet care service provider Companion Pet Partners and BevMo. It enjoys solid trade area demographics with a three-mile average household income of $138k. With such an advantageous location, the property is expected to witness strong footfalls.
According to Whitestone REIT COO, Christine Mastandrea, “We have a great team and a strong presence in the Scottsdale market. This acquisition is accretive on day one and we believe our team can add significant additional value.”
WSR’s capital recycling program, which began in 2022, is on track and poises the company well for long-term profitability. This program is envisioned to match disposition proceeds with acquisition funding amounts, and the latest acquisition of Scottsdale Commons is also funded through this capital recycling program.
So far, this program has aggregated more than $100 million in acquisitions with an annual base rent of around $27 per square foot and a combined capitalization rate of 7.1% based on actual or projected year one net operating income (NOI).
Meanwhile, properties sold so far have an annual base rent per square foot of $18. The properties were sold at an aggregate capitalization rate of 6.2% based on trailing 12-month NOI. This redeployment of proceeds to acquire premium properties that have greater upside potential is like to drive the company’s growth over the long run.
Shares of this Zacks Rank #3 (Hold) company have rallied 20.2% in the past six months, outperforming the real estate market’s increase of 10.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Host Hotels & Resorts (HST - Free Report) and Iron Mountain (IRM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HST’s 2024 FFO per share is pegged at $1.97, which suggests year-over-year growth of 2.6%.
The Zacks Consensus Estimate for IRM’s 2024 FFO per share stands at $4.42, which indicates an increase of 7.3% from the year-ago quarter.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.