HOUSTON-Increased acquisitions, combined with strong lease-ups, led to a positive Q3 for Whitestone REIT. Year-over-year numbers showed a 40% increase in revenue growth to $16.3 million and a 35% improvement in quarterly property net operating income to $9.5 million.
Furthermore, the REIT – which owns, re-develops, leases, manages and operates community properties – reported a third-quarter year-over-year increase in funds from operations (15% to $4.1 million); an increase in FFO Core of 52% 9from $1.8 million to $5.1 million compared to the same period a year ago), and net income more than doubling to $614,000.
However, total occupancy across the portfolio was 85%, up 40 basis points from the year before, but down 60 basis points from Q2 2013. According to Whitestone REIT chairman and CEO James C. Mastandrea, some leasing volatility was expected, due to redevelopment and expansion of four properties.
"These initiatives, in the short run, may cause some volatility in quarterly occupancy rates as we vacate certain spaces, refurbish them, and then re-lease them at higher rents," Mastandrea says. He goes on to say that new and renewed leases grew in volume, "providing us with additional confidence that our target tenants are returning to the market to lease space."
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