HOUSTON, Feb. 06, 2019 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) announced that through its operating partnership, Whitestone REIT Operating Partnership, L.P., has successfully closed on a new unsecured credit facility. The 2019 Facility increases the credit facility to $515 million from $500 million, improves the capitalization rate for the majority of its properties from 7.5% to 7% and reduces overall pricing at the current corporate leverage level by 28 basis points. The 2019 Facility is comprised of the following three tranches:

• $250.0 million unsecured revolving credit facility with a maturity date of January 1, 2023 (the “Revolver”);
• $165.0 million unsecured term loan with a maturity date of January 31, 2024 (“Term Loan A”); and
• $100.0 million unsecured term loan with a maturity date of October 30, 2022 (“Term Loan B” and together with Term Loan A, the “Term Loans”).

Borrowings under the 2019 Facility accrue interest (at the Operating Partnership's option) at a Base Rate or an Adjusted LIBOR plus an applicable margin based upon the Company’s then existing leverage. The applicable margin for Adjusted LIBOR borrowings ranges from 1.40% to 1.90% for the Revolver and 1.35% to 1.90% for the Term Loans. The 2019 Facility includes an accordion feature that will allow the Operating Partnership to increase the borrowing capacity by $200 million to $715 million, upon the satisfaction of certain conditions.

Proceeds of the loans under the 2019 Facility were used to repay the existing revolving credit facility and associated fees, and future draws on the available commitments will be used to fund growth and acquisitions, redevelopment of value-add properties in its portfolio, and general corporate purposes.

Chairman and CEO Jim Mastandrea commented, "We are pleased to complete yet another milestone transaction that highlights Whitestone’s strong financial position and increases our funding flexibility while reducing costs. This credit facility provides Whitestone with long-term committed funding to support future growth of our successful, E-Commerce resistant business model.” Mr. Mastandrea concluded, “We look forward to continuing our mission to reward shareholders with a predictable, sustainable dividends and industry-leading Total Shareholder Returns.”

The 2019 Facility was arranged by Bank of Montreal, serving as administrative agent, SunTrust Robinson Humphrey, as syndication agent, and BMO Capital Markets Corp, U. S: Bank National Association, SunTrust Robinson Humphrey and Regions Capital Markets, as co-lead arrangers and joint book runners.

About Whitestone REIT

Whitestone is a community-centered retail REIT that acquires, owns, manages, develops and redevelops high quality "E-Commerce resistant" neighborhood, community and lifestyle retail centers principally located in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone’s optimal mix of national, regional and local tenants provides daily necessities, needed services and entertainment to the communities in which they are located. Whitestone's properties are primarily located in business-friendly Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio, which are among the fastest growing U.S. population centers with highly educated workforces, high household incomes and strong job growth. Whitestone’s forward-thinking business model has produced industry leading compound annual growth rates in excess of 20% in revenues, property net operating income, funds from operations and net income since its IPO in 2010. As of January 31, 2019, Whitestone's total shareholder return ranks #2 of 17, #1 of 17, and #2 of 16, of the U.S. public shopping center REITs for the one-year, three-year, and five-year periods, respectively.⁽¹⁾ For additional information, visit www.whitestonereit.com.