Whitestone REIT Increases Unsecured Borrowing Capacity under Revolving Credit Facility and Reduces Borrowing Costs

  Whitestone REIT Increases Unsecured Borrowing Capacity under Revolving
  Credit Facility and Reduces Borrowing Costs

Credit Facility increases to $175 Million, includes $50 Million Accordion to
allow increase to $225 million.

  *Decreases Overall Pricing by approximately 1%
  *Eases Financial Covenants
  *Extends to Four Year Term (Two Year Extension from Current Maturity Date)

Business Wire

HOUSTON -- February 5, 2013

Whitestone REIT (NYSE: WSR - “Whitestone” or the “Company”), a fully
integrated real estate company that owns, operates and re-develops Community
Centered Properties^TM, which are visibly located properties in established or
developing culturally diverse neighborhoods, announced today it has closed on
an amended and restated credit facility that amended its existing $125 million
unsecured credit facility. The amended and restated credit facility increases
the facility size by $50 million to $175 million, adds an accordion feature
that will allow the facility to further increase to $225 million, reduces the
overall pricing by approximately 1% (LIBOR plus a margin of 1.75% - 2.50%
based on overall corporate leverage), and extends the term by two years to
February 3, 2017. Management believes the new pricing reflects the continued
strengthening of Whitestone's overall financial position. In addition, the
overall financial covenants, including the capitalization rate to value
assets, were eased, providing Whitestone greater financial flexibility. The
Company plans to use the new facility primarily for acquisitions,
redevelopment of value-add properties in its portfolio, and general corporate
purposes.

The transaction was led by BMO Capital Markets and Wells Fargo Securities,
LLC, as Co-Lead Arrangers and Joint Book Runners. Bank of Montreal is serving
as the Administrative Agent. Wells Fargo Bank, National Association served as
Syndication Agent, and U.S. Bank National Association served as Documentation
Agent.

“We have significantly improved our unsecured credit facility at terms that we
believe include us in the most credit worthy of borrowers and provide the
Company with a greater degree of financial flexibility,” said James C.
Mastandrea, Chairman and CEO. “While opportunistic financing activity remains
a strategic focus, the new credit agreement provides us the ability to execute
contracts and close quickly on value-add acquisitions as we continue to
accelerate our growth. We believe the increased facility, reduced pricing and
expanded access to capital exemplifies the progress we have made over the past
six years to create shareholder value. We are pleased to have achieved an
increased level of credit worthiness, particularly from top tier banks such as
Bank of Montreal, Wells Fargo and U.S. Bank, and we are excited about
opportunities ahead of us as the intrinsic value of our assets converts into
added net asset value, from increased revenue, net operating income (NOI),
funds from operations (FFO) and FFO per share.”

About Whitestone REIT

Whitestone REIT (NYSE: WSR) is a fully integrated real estate company that
owns, operates and re-develops Community Centered Properties^TM, which are
visibly located properties in established or developing culturally diverse
neighborhoods. Headquartered in Houston, Texas and founded in 1998, the
Company is internally managed with a portfolio of commercial properties in
Texas, Arizona, and Illinois. Whitestone focuses on value-creation in its
Centers, as it markets, leases and manages its Centers to match tenants with
the shared needs of surrounding neighborhoods. Operations are structured for
providing cost-effective service to local service-oriented smaller space
tenants (less than 3,000 square feet). Whitestone has a diversified tenant
base concentrated on service offerings including medical, education, and
casual dining. As of December 31, 2012, the largest of its approximately 1,100
tenants comprises less than 1.5% of its rental revenues. For additional
information about the Company, please visit www.whitestonereit.com. The
Investor Relations section of the Company's website has links to SEC filings,
news releases, financial reports and investor newsletters.

Whitestone REIT Acquisitions: Interested parties should contact Bradford
Johnson, Whitestone REIT Director of Acquisitions, via email:
bjohnson@whitestonereit.com or phone 713.435.2208

Forward-Looking Statements

Statements included herein that state Whitestone’s or management's intentions,
hopes, beliefs, expectations or predictions of the future are
"forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995, which by their nature, involve known and
unknown risks and uncertainties. Whitestone’s actual results, performance or
achievements could differ materially from those expressed or implied by these
statements. Reference is made to Whitestone’s regulatory filings with the
Securities and Exchange Commission for information or factors that may impact
Whitestone’s performance.

Contact:

Whitestone REIT
David K. Holeman, (713) 435 2227
Chief Financial Officer
ir@whitestonereit.com
 
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