Whitestone REIT (WSR”>WSR) recently announced that it has acquired Phase I of Pinnacle of Scottsdale, a Class A community center in North Scottsdale, for $29 million.
The 113,108 square foot property is located at the high visibility intersection of North Scottsdale Road and Pinnacle Peak Road and primarily offers retail goods and services to the surrounding community, comprising some of the exclusive neighborhoods in Phoenix.
The acquired property is currently 100% leased and represents the company’s seventh acquisition in the Phoenix market. The strategic move by Whitestone is expected to strengthen its presence in the Phoenix area.
Whitestone reported third quarter 2011 funds from operations (FFO) of 17 cents per share compared with 34 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income.
Headquartered in Houston, Texas, Whitestone is a fully integrated real estate company that owns, operates and re-develops community centered properties, which are visibly located properties in established or developing culturally diverse neighborhoods.
Whitestone currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are also maintaining our long-term Underperform recommendation on the stock. One of its competitors, General Growth Properties Inc (GGP”>GGP), currently has a Zacks #3 Rank, which translates into a short-term Hold rating.
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