(Mark One) | |
[x] | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2016 |
OR |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ____________ to ____________ |
Commission file number 001-34855 |
WHITESTONE REIT |
(Exact Name of Registrant as Specified in Its Charter) |
Maryland | 76-0594970 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
2600 South Gessner, Suite 500 Houston, Texas | 77063 | |
(Address of Principal Executive Offices) | (Zip Code) |
Item 1. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. |
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item 5. | ||||
Item 6. | ||||
September 30, 2016 | December 31, 2015 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Real estate assets, at cost | ||||||||
Property | $ | 918,562 | $ | 835,538 | ||||
Accumulated depreciation | (103,721 | ) | (89,580 | ) | ||||
Total real estate assets | 814,841 | 745,958 | ||||||
Cash and cash equivalents | 8,786 | 2,587 | ||||||
Restricted cash | 103 | 121 | ||||||
Marketable securities | 456 | 435 | ||||||
Escrows and acquisition deposits | 6,183 | 6,668 | ||||||
Accrued rents and accounts receivable, net of allowance for doubtful accounts | 16,970 | 15,466 | ||||||
Unamortized lease commissions and loan costs | 8,340 | 8,178 | ||||||
Prepaid expenses and other assets | 2,808 | 2,672 | ||||||
Total assets | $ | 858,487 | $ | 782,085 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Notes payable | $ | 549,671 | $ | 497,955 | ||||
Accounts payable and accrued expenses | 31,920 | 24,051 | ||||||
Tenants' security deposits | 6,066 | 5,254 | ||||||
Dividends and distributions payable | 8,647 | 7,834 | ||||||
Total liabilities | 596,304 | 535,094 | ||||||
Commitments and contingencies: | — | — | ||||||
Equity: | ||||||||
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | — | — | ||||||
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 29,218,531 and 26,991,493 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 29 | 27 | ||||||
Additional paid-in capital | 390,966 | 359,971 | ||||||
Accumulated deficit | (133,779 | ) | (116,895 | ) | ||||
Accumulated other comprehensive loss | (6,951 | ) | (129 | ) | ||||
Total Whitestone REIT shareholders' equity | 250,265 | 242,974 | ||||||
Noncontrolling interest in subsidiary | 11,918 | 4,017 | ||||||
Total equity | 262,183 | 246,991 | ||||||
Total liabilities and equity | $ | 858,487 | $ | 782,085 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Property revenues | ||||||||||||||||
Rental revenues | $ | 19,844 | $ | 18,785 | $ | 58,915 | $ | 52,426 | ||||||||
Other revenues | 5,664 | 5,814 | 17,157 | 15,395 | ||||||||||||
Total property revenues | 25,508 | 24,599 | 76,072 | 67,821 | ||||||||||||
Property expenses | ||||||||||||||||
Property operation and maintenance | 4,904 | 4,823 | 14,381 | 13,245 | ||||||||||||
Real estate taxes | 3,414 | 3,474 | 10,072 | 9,303 | ||||||||||||
Total property expenses | 8,318 | 8,297 | 24,453 | 22,548 | ||||||||||||
Other expenses (income) | ||||||||||||||||
General and administrative | 6,218 | 5,687 | 16,467 | 15,170 | ||||||||||||
Depreciation and amortization | 5,449 | 5,149 | 16,362 | 14,388 | ||||||||||||
Interest expense | 4,669 | 3,740 | 14,221 | 10,664 | ||||||||||||
Interest, dividend and other investment income | (164 | ) | (73 | ) | (339 | ) | (244 | ) | ||||||||
Total other expense | 16,172 | 14,503 | 46,711 | 39,978 | ||||||||||||
Income from continuing operations before gain on sale or disposal of properties or assets and income taxes | 1,018 | 1,799 | 4,908 | 5,295 | ||||||||||||
Provision for income taxes | (80 | ) | (100 | ) | (247 | ) | (274 | ) | ||||||||
Gain on sale of properties | — | — | 2,890 | — | ||||||||||||
Gain (loss) on sale or disposal of assets | 26 | (148 | ) | 10 | (248 | ) | ||||||||||
Income from continuing operations | 964 | 1,551 | 7,561 | 4,773 | ||||||||||||
Income from discontinued operations | — | 44 | — | 3 | ||||||||||||
Income from discontinued operations | — | 44 | — | 3 | ||||||||||||
Net income | 964 | 1,595 | 7,561 | 4,776 | ||||||||||||
Less: Net income attributable to noncontrolling interests | 15 | 25 | 131 | 78 | ||||||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 1,570 | $ | 7,430 | $ | 4,698 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Basic Earnings Per Share: | ||||||||||||||||
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.18 | ||||||||
Income from discontinued operations attributable to Whitestone REIT | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.18 | ||||||||
Diluted Earnings Per Share: | ||||||||||||||||
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.17 | ||||||||
Income from discontinued operations attributable to Whitestone REIT | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.17 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 28,195 | 26,476 | 27,210 | 23,988 | ||||||||||||
Diluted | 29,024 | 27,082 | 28,013 | 24,583 | ||||||||||||
Distributions declared per common share / OP unit | $ | 0.2850 | $ | 0.2850 | $ | 0.8550 | $ | 0.8550 | ||||||||
Consolidated Statements of Comprehensive Income | ||||||||||||||||
Net income | $ | 964 | $ | 1,595 | $ | 7,561 | $ | 4,776 | ||||||||
Other comprehensive gain (loss) | ||||||||||||||||
Unrealized gain (loss) on cash flow hedging activities | 1,529 | (184 | ) | (6,962 | ) | (460 | ) | |||||||||
Unrealized gain (loss) on available-for-sale marketable securities | (11 | ) | (8 | ) | 20 | (106 | ) | |||||||||
Comprehensive income | 2,482 | 1,403 | 619 | 4,210 | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 41 | 22 | 11 | 69 | ||||||||||||
Comprehensive income attributable to Whitestone REIT | $ | 2,441 | $ | 1,381 | $ | 608 | $ | 4,141 |
Accumulated | ||||||||||||||||||||||||||||||||||
Additional | Other | Total | Noncontrolling | |||||||||||||||||||||||||||||||
Common Shares | Paid-In | Accumulated | Comprehensive | Shareholders' | interests | Total | ||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Equity | Units | Dollars | Equity | ||||||||||||||||||||||||||
Balance, December 31, 2015 | 26,991 | $ | 27 | $ | 359,971 | $ | (116,895 | ) | $ | (129 | ) | $ | 242,974 | 497 | $ | 4,017 | $ | 246,991 | ||||||||||||||||
Exchange of noncontrolling interest OP units for common shares | 15 | — | 125 | — | — | 125 | (15 | ) | (125 | ) | — | |||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan | 7 | — | 83 | — | — | 83 | — | — | 83 | |||||||||||||||||||||||||
Issuance of common shares, net of offering costs | 1,820 | 2 | 26,684 | — | — | 26,686 | — | — | 26,686 | |||||||||||||||||||||||||
Issuance of OP units | — | — | — | — | — | — | 621 | 8,738 | 8,738 | |||||||||||||||||||||||||
Repurchase of common shares (1) | (209 | ) | — | (2,904 | ) | — | — | (2,904 | ) | — | — | (2,904 | ) | |||||||||||||||||||||
Share-based compensation | 595 | — | 6,874 | — | — | 6,874 | — | — | 6,874 | |||||||||||||||||||||||||
Distributions | — | — | — | (24,314 | ) | — | (24,314 | ) | — | (590 | ) | (24,904 | ) | |||||||||||||||||||||
Unrealized loss on change in value of cash flow hedge | — | — | — | — | (6,842 | ) | (6,842 | ) | — | (120 | ) | (6,962 | ) | |||||||||||||||||||||
Unrealized gain on change in fair value of available-for-sale marketable securities | — | — | — | — | 20 | 20 | — | — | 20 | |||||||||||||||||||||||||
Reallocation of ownership percentage between parent and subsidiary | — | — | 133 | — | — | 133 | — | (133 | ) | — | ||||||||||||||||||||||||
Net income | — | — | — | 7,430 | — | 7,430 | — | 131 | 7,561 | |||||||||||||||||||||||||
Balance, September 30, 2016 | 29,219 | $ | 29 | $ | 390,966 | $ | (133,779 | ) | $ | (6,951 | ) | $ | 250,265 | 1,103 | $ | 11,918 | $ | 262,183 |
(1) | During the nine months ended September 30, 2016, the Company acquired common shares held by employees who tendered owned common shares to satisfy the tax withholding on the lapse of certain restrictions on restricted common shares. |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income from continuing operations | $ | 7,561 | $ | 4,773 | ||||
Net income from discontinued operations | — | 3 | ||||||
Net income | 7,561 | 4,776 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 16,362 | 14,388 | ||||||
Amortization of deferred loan costs | 1,202 | 902 | ||||||
Amortization of notes payable discount | 241 | 222 | ||||||
Gain on sale of marketable securities | — | (44 | ) | |||||
Loss (gain) on sale or disposal of assets and properties | (2,900 | ) | 248 | |||||
Bad debt expense | 1,298 | 1,318 | ||||||
Share-based compensation | 6,874 | 5,209 | ||||||
Changes in operating assets and liabilities: | ||||||||
Escrows and acquisition deposits | 485 | (1,445 | ) | |||||
Accrued rent and accounts receivable | (2,802 | ) | (3,583 | ) | ||||
Unamortized lease commissions | (2,126 | ) | (1,207 | ) | ||||
Prepaid expenses and other assets | 725 | 341 | ||||||
Accounts payable and accrued expenses | 261 | 4,201 | ||||||
Tenants' security deposits | 812 | 671 | ||||||
Net cash provided by operating activities | 27,993 | 25,994 | ||||||
Net cash provided by operating activities of discontinued operations | — | 3 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of real estate | (60,616 | ) | (147,950 | ) | ||||
Additions to real estate | (15,362 | ) | (7,954 | ) | ||||
Proceeds from sales of properties | 3,957 | — | ||||||
Proceeds from sales of marketable securities | — | 496 | ||||||
Net cash used in investing activities | (72,021 | ) | (155,408 | ) | ||||
Net cash used in investing activities of discontinued operations | — | — | ||||||
Cash flows from financing activities: | ||||||||
Distributions paid to common shareholders | (23,606 | ) | (20,791 | ) | ||||
Distributions paid to OP unit holders | (415 | ) | (346 | ) | ||||
Proceeds from issuance of common shares, net of offering costs | 26,686 | 49,717 | ||||||
Proceeds from revolving credit facility, net | 64,000 | 105,500 | ||||||
Repayments of notes payable | (13,552 | ) | (2,141 | ) | ||||
Change in restricted cash | 18 | (86 | ) | |||||
Repurchase of common shares | (2,904 | ) | (1,018 | ) | ||||
Net cash provided by financing activities | 50,227 | 130,835 | ||||||
Net cash used in financing activities of discontinued operations | — | — | ||||||
Net increase in cash and cash equivalents | 6,199 | 1,424 | ||||||
Cash and cash equivalents at beginning of period | 2,587 | 4,236 | ||||||
Cash and cash equivalents at end of period | $ | 8,786 | $ | 5,660 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 13,700 | $ | 9,826 | ||||
Cash paid for taxes | $ | 284 | $ | 315 | ||||
Non cash investing and financing activities: | ||||||||
Disposal of fully depreciated real estate | $ | 544 | $ | 57 | ||||
Financed insurance premiums | $ | 1,060 | $ | 1,057 | ||||
Value of shares issued under dividend reinvestment plan | $ | 83 | $ | 71 | ||||
Value of common shares exchanged for OP units | $ | 125 | $ | 84 | ||||
Change in fair value of available-for-sale securities | $ | 20 | $ | (106 | ) | |||
Change in fair value of cash flow hedge | $ | (6,962 | ) | $ | (460 | ) | ||
Acquisition of real estate in exchange for OP units | $ | 8,738 | $ | 1,333 |
September 30, 2016 | ||||||||||||||||
Amortized Cost | Gains in Accumulated Other Comprehensive Income (Loss) | Losses in Accumulated Other Comprehensive Income (Loss) | Estimated Fair Value | |||||||||||||
Real estate sector common stock | $ | 654 | $ | — | $ | (198 | ) | $ | 456 | |||||||
Total available-for-sale securities | $ | 654 | $ | — | $ | (198 | ) | $ | 456 |
December 31, 2015 | ||||||||||||||||
Amortized Cost | Gains in Accumulated Other Comprehensive Income (Loss) | Losses in Accumulated Other Comprehensive Income (Loss) | Estimated Fair Value | |||||||||||||
Real estate sector common stock | $ | 654 | $ | — | $ | (219 | ) | $ | 435 | |||||||
Total available-for-sale securities | $ | 654 | $ | — | $ | (219 | ) | $ | 435 |
September 30, 2016 | December 31, 2015 | |||||||
Tenant receivables | $ | 12,648 | $ | 10,494 | ||||
Accrued rents and other recoveries | 12,189 | 11,619 | ||||||
Allowance for doubtful accounts | (7,867 | ) | (6,647 | ) | ||||
Total | $ | 16,970 | $ | 15,466 |
September 30, 2016 | December 31, 2015 | |||||||
Lease commissions | $ | 8,669 | $ | 7,226 | ||||
Deferred financing cost | 4,071 | 4,070 | ||||||
Total cost | 12,740 | 11,296 | ||||||
Less: lease commissions accumulated amortization | (3,528 | ) | (2,960 | ) | ||||
Less: deferred financing cost accumulated amortization | (872 | ) | (158 | ) | ||||
Total cost, net of accumulated amortization | $ | 8,340 | $ | 8,178 |
Description | September 30, 2016 | December 31, 2015 | ||||||
Fixed rate notes | ||||||||
$10.5 million, LIBOR plus 2.00% Note, due September 24, 2018 (1) | $ | 10,040 | $ | 10,220 | ||||
$50.0 million, 0.84% plus 1.35% to 1.90% Note, due October 30, 2020 (2) | 50,000 | 50,000 | ||||||
$50.0 million, 1.50% plus 1.35% to 1.90% Note, due January 29, 2021 (3) | 50,000 | 50,000 | ||||||
$100.0 million, 1.73% plus 1.65% to 2.25% Note, due October 30, 2022 (4) | 100,000 | 100,000 | ||||||
$37.0 million 3.76% Note, due December 1, 2020 | 34,414 | 35,146 | ||||||
$6.5 million 3.80% Note, due January 1, 2019 | 6,063 | 6,190 | ||||||
$19.0 million 4.15% Note, due December 1, 2024 | 19,000 | 19,000 | ||||||
$20.2 million 4.28% Note, due June 6, 2023 | 19,794 | 20,040 | ||||||
$14.0 million 4.34% Note, due September 11, 2024 | 14,000 | 14,000 | ||||||
$14.3 million 4.34% Note, due September 11, 2024 | 14,300 | 14,300 | ||||||
$16.5 million 4.97% Note, due September 26, 2023 | 16,357 | 16,450 | ||||||
$15.1 million 4.99% Note, due January 6, 2024 | 15,060 | 15,060 | ||||||
$9.2 million, Prime Rate less 2.00% Note, due December 29, 2017 (5) | 7,873 | 7,886 | ||||||
$2.6 million 5.46% Note, due October 1, 2023 | 2,522 | 2,550 | ||||||
$11.1 million 5.87% Note, due August 6, 2016 | — | 11,305 | ||||||
$1.1 million 2.97% Note, due November 28, 2016 | 212 | — | ||||||
Floating rate notes | ||||||||
Unsecured line of credit, LIBOR plus 1.40% to 1.95%, due October 30, 2019 | 191,600 | 127,600 | ||||||
Total notes payable principal | 551,235 | 499,747 | ||||||
Less deferred financing costs, net of accumulated amortization | (1,564 | ) | (1,792 | ) | ||||
Total notes payable | $ | 549,671 | $ | 497,955 |
(1) | Promissory note includes an interest rate swap that fixed the interest rate at 3.55% for the duration of the term. |
(2) | Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 1 (as defined below) at 0.84% through February 3, 2017 and 1.75% beginning February 3, 2017 through October 30, 2020. |
(3) | Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 2 (as defined below) at 1.50%. |
(4) | Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 3 (as defined below) at 1.73%, |
(5) | Promissory note includes an interest rate swap that fixed the interest rate at 5.72% for the duration of the term. As part of our acquisition of Paradise Plaza in August 2012, we recorded a discount on the note of $1.3 million, which amortizes into interest expense over the life of the loan and results in an imputed interest rate of 4.13%. |
• | extended the maturity date of the $300 million unsecured revolving credit facility under the 2014 Facility (the “Revolver”) to October 30, 2019 from November 7, 2018; |
• | converted $100 million of outstanding borrowings under the Revolver to a new $100 million unsecured term loan under the 2014 Facility (“Term Loan 3”) with a maturity date of October 30, 2022; |
• | extended the maturity date of the first $50 million unsecured term loan under the 2014 Facility (“Term Loan 1”) to October 30, 2020 from February 17, 2017; and |
• | extended the maturity date of the second $50 million unsecured term loan under the 2014 Facility (“Term Loan 2” and together with Term Loan 1 and Term Loan 3, the “Term Loans”) to January 29, 2021 from November 7, 2019. |
Year | Amount Due | |||
2016 | $ | 765 | ||
2017 | 10,213 | |||
2018 | 12,136 | |||
2019 | 199,649 | |||
2020 | 82,827 | |||
Thereafter | 245,645 | |||
Total | $ | 551,235 |
Balance Sheet Location | Estimated Fair Value | |||||
Interest rate swaps: | ||||||
September 30, 2016 | Accounts payable and accrued expenses | $ | 7,317 | |||
December 31, 2015 | Accounts payable and accrued expenses | $ | 617 |
Amount Recognized as Comprehensive Income (Loss) | Location of Loss Recognized in Earnings | Amount of Loss Recognized in Earnings (1) | ||||||||
Three months ended September 30, 2016 | $ | 1,529 | Interest expense | $ | (602 | ) | ||||
Three months ended September 30, 2015 | $ | (184 | ) | Interest expense | $ | (207 | ) | |||
Nine months ended September 30, 2016 | $ | (6,962 | ) | Interest expense | $ | (1,810 | ) | |||
Nine months ended September 30, 2015 | $ | (460 | ) | Interest expense | $ | (617 | ) |
(1) | We did not recognize any ineffective portion of our interest rate swaps in earnings for the three and nine months ended September 30, 2016 and 2015. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 964 | $ | 1,551 | $ | 7,561 | $ | 4,773 | ||||||||
Less: Net income attributable to noncontrolling interests | (15 | ) | (25 | ) | (131 | ) | (78 | ) | ||||||||
Distributions paid on unvested restricted shares | (146 | ) | (130 | ) | (498 | ) | (400 | ) | ||||||||
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares | 803 | 1,396 | 6,932 | 4,295 | ||||||||||||
Income from discontinued operations | — | 44 | — | 3 | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Income from discontinued operations attributable to Whitestone REIT | — | 44 | — | 3 | ||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 803 | $ | 1,440 | $ | 6,932 | $ | 4,298 | ||||||||
Denominator: | ||||||||||||||||
Weighted average number of common shares - basic | 28,195 | 26,476 | 27,210 | 23,988 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Unvested restricted shares | 829 | 606 | 803 | 595 | ||||||||||||
Weighted average number of common shares - dilutive | 29,024 | 27,082 | 28,013 | 24,583 | ||||||||||||
Earnings Per Share: | ||||||||||||||||
Basic: | ||||||||||||||||
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.18 | ||||||||
Income from discontinued operations attributable to Whitestone REIT | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.18 | ||||||||
Diluted: | ||||||||||||||||
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.17 | ||||||||
Income from discontinued operations attributable to Whitestone REIT | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | 0.03 | $ | 0.05 | $ | 0.25 | $ | 0.17 |
Common Shares | Noncontrolling OP Unit Holders | Total | ||||||||||||||||||
Quarter Paid | Distributions Per Common Share | Amount Paid | Distributions Per OP Unit | Amount Paid | Amount Paid | |||||||||||||||
2016 | ||||||||||||||||||||
Third Quarter | $ | 0.2850 | $ | 8,109 | $ | 0.2850 | $ | 138 | $ | 8,247 | ||||||||||
Second Quarter | 0.2850 | 7,786 | 0.2850 | 138 | 7,924 | |||||||||||||||
First Quarter | 0.2850 | 7,711 | 0.2850 | 139 | 7,850 | |||||||||||||||
Total | $ | 0.8550 | $ | 23,606 | $ | 0.8550 | $ | 415 | $ | 24,021 | ||||||||||
2015 | ||||||||||||||||||||
Fourth Quarter | $ | 0.2850 | $ | 7,666 | $ | 0.2850 | $ | 143 | $ | 7,809 | ||||||||||
Third Quarter | 0.2850 | 7,664 | 0.2850 | 122 | 7,786 | |||||||||||||||
Second Quarter | 0.2850 | 6,601 | 0.2850 | 111 | 6,712 | |||||||||||||||
First Quarter | 0.2850 | 6,526 | 0.2850 | 113 | 6,639 | |||||||||||||||
Total | $ | 1.1400 | $ | 28,457 | $ | 1.1400 | $ | 489 | $ | 28,946 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Non-vested at January 1, 2016 | 2,288,260 | $ | 14.34 | ||||
Granted | 535,150 | 14.86 | |||||
Vested | (547,403 | ) | 14.41 | ||||
Forfeited | (50,552 | ) | 13.68 | ||||
Non-vested at September 30, 2016 | 2,225,455 | $ | 14.46 | ||||
Available for grant at September 30, 2016 | 822,077 |
Shares Granted | Shares Vested | |||||||||||||
Non-Vested Shares Issued | Weighted Average Grant-Date Fair Value | Vested Shares | Total Vest-Date Fair Value | |||||||||||
(in thousands) | ||||||||||||||
Nine Months Ended September 30, 2016 | 535,150 | $ | 14.86 | (547,403 | ) | $ | 7,890 | |||||||
Year Ended December 31, 2015 | 327,122 | 13.49 | (348,786 | ) | 4,969 | |||||||||
Year Ended December 31, 2014 | 2,058,930 | 14.40 | (133,774 | ) | 1,721 | |||||||||
Year Ended December 31, 2013 | 328,005 | 15.43 | (15,270 | ) | 224 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Property revenues | $ | — | $ | 43 | $ | — | $ | 43 | ||||||||
Property expenses | — | — | — | 41 | ||||||||||||
Depreciation and amortization | — | — | — | — | ||||||||||||
Interest expense | — | — | — | — | ||||||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Gain on sale or disposal of assets | — | (1 | ) | — | (1 | ) | ||||||||||
Income from discontinued operations | $ | — | $ | 44 | $ | — | $ | 3 |
• | the imposition of federal taxes if we fail to qualify as a REIT in any taxable year or forego an opportunity to ensure REIT status; |
• | uncertainties related to the national economy, the real estate industry in general and in our specific markets; |
• | legislative or regulatory changes, including changes to laws governing REITs; |
• | adverse economic or real estate developments in Texas, Arizona or Illinois; |
• | increases in interest rates and operating costs; |
• | availability and terms of capital and financing, both to fund our operations and to refinance our indebtedness as it matures; |
• | decreases in rental rates or increases in vacancy rates; |
• | litigation risks; |
• | lease-up risks, including leasing risks arising from exclusivity and consent provisions in leases with significant tenants; |
• | our ability to dispose of our non-core assets on attractive terms, on the time frame we expect, or at all; |
• | our inability to renew tenants or obtain new tenants upon the expiration of existing leases; |
• | our inability to generate sufficient cash flows due to market conditions, competition, uninsured losses, changes in tax or other applicable laws; and |
• | the need to fund tenant improvements or other capital expenditures out of operating cash flow. |
• | 48 retail properties containing approximately 4.2 million square feet of gross leasable area and having a total carrying value (net of accumulated depreciation) of $645.8 million; |
• | four office properties containing approximately 0.5 million square feet of gross leasable area and having a total carrying value (net of accumulated depreciation) of $35.9 million; and |
• | 10 office/flex properties containing approximately 1.1 million square feet of gross leasable area and having a total carrying value (net of accumulated depreciation) of $35.1 million. |
• | three retail properties containing approximately 0.2 million square feet of gross leasable area and having a total carrying value (net of accumulated depreciation) of $78.6 million; and |
• | six parcels of land held for future development having a total carrying value of $19.4 million. |
Number of Leases Signed | GLA Signed | Weighted Average Lease Term (2) | TI and Incentives per Sq. Ft. (3) | Contractual Rent Per Sq. Ft (4) | Prior Contractual Rent Per Sq. Ft. (5) | Straight-lined Basis Increase Over Prior Rent | ||||||||||||||||||
Comparable (1) | ||||||||||||||||||||||||
Renewal Leases | 192 | 496,080 | 2.9 | $ | 1.78 | $ | 14.53 | $ | 14.25 | 8.7 | % | |||||||||||||
New Leases | 38 | 76,196 | 4.5 | 5.81 | 15.29 | 15.24 | 9.1 | % | ||||||||||||||||
Total | 230 | 572,276 | 3.1 | $ | 2.32 | $ | 14.63 | $ | 14.38 | 8.8 | % | |||||||||||||
Number of Leases Signed | GLA Signed | Weighted Average Lease Term (2) | TI and Incentives per Sq. Ft. (3) | Contractual Rent Per Sq. Ft (4) | ||||||||||||||||||||
Non-Comparable | ||||||||||||||||||||||||
Renewal Leases | 8 | 21,645 | 4.9 | $ | 9.70 | $ | 19.06 | |||||||||||||||||
New Leases | 98 | 310,286 | 5.3 | 12.65 | 14.44 | |||||||||||||||||||
Total | 106 | 331,931 | 5.3 | $ | 12.45 | $ | 14.74 |
(1) | Comparable leases represent leases signed on spaces for which there was a former tenant within the last twelve months and the new or renewal square footage was within 25% of the expired square footage. |
(2) | Weighted average lease term is determined on the basis of square footage. |
(3) | Estimated amount per signed leases. Actual cost of construction may vary. Does not include first generation costs for tenant improvements (“TI”) and leasing commission costs needed for new acquisitions or redevelopment of a property to bring to operating standards for its intended use. |
(4) | Contractual minimum rent under the new lease for the first month, excluding concessions. |
(5) | Contractual minimum rent under the prior lease for the final month. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Capital expenditures: | ||||||||||||||||
Tenant improvements and allowances | $ | 1,478 | $ | 1,658 | $ | 3,996 | $ | 3,762 | ||||||||
Developments / redevelopments | 2,211 | 1,145 | 9,421 | 2,771 | ||||||||||||
Leasing commissions and costs | 1,004 | 607 | 2,015 | 1,177 | ||||||||||||
Maintenance capital expenditures | 756 | 142 | 1,945 | 1,421 | ||||||||||||
Total capital expenditures | $ | 5,449 | $ | 3,552 | $ | 17,377 | $ | 9,131 |
Three Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Number of properties owned and operated | 71 | 70 | ||||||
Aggregate gross leasable area (sq. ft.) | 6,119,005 | 5,967,779 | ||||||
Ending occupancy rate - operating portfolio(1) | 88 | % | 86 | % | ||||
Ending occupancy rate - all properties | 87 | % | 86 | % | ||||
Total property revenues | $ | 25,508 | $ | 24,599 | ||||
Total property expenses | 8,318 | 8,297 | ||||||
Total other expenses | 16,172 | 14,503 | ||||||
Provision for income taxes | 80 | 100 | ||||||
Loss (gain) on disposal of assets | (26 | ) | 148 | |||||
Income from continuing operations | 964 | 1,551 | ||||||
Income from discontinued operations, net of taxes | — | 44 | ||||||
Net income | 964 | 1,595 | ||||||
Less: Net income attributable to noncontrolling interests | 15 | 25 | ||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 1,570 | ||||
Funds from operations core (2) | $ | 9,812 | $ | 9,452 | ||||
Property net operating income (3) | 17,190 | 16,302 | ||||||
Distributions paid on common shares and OP units | 8,247 | 7,786 | ||||||
Distributions per common share and OP unit | $ | 0.2850 | $ | 0.2850 | ||||
Distributions paid as a percentage of funds from operations core | 84 | % | 82 | % |
(1) | Excludes (i) new acquisitions, through the earlier of attainment of 90% occupancy or 18 months of ownership, and (ii) properties that are undergoing significant redevelopment or re-tenanting. |
(2) | For a reconciliation of funds from operations core to net income, see “—Reconciliation of Non-GAAP Financial Measures—Funds From Operations (“FFO”) Core” below. |
(3) | For a reconciliation of property net operating income to net income, see “—Reconciliation of Non-GAAP Financial Measures—Property Net Operating Income (“NOI”)” below. |
Three Months Ended September 30, | |||||||||||||||
Overall Property Expenses | 2016 | 2015 | Change | % Change | |||||||||||
Real estate taxes | $ | 3,414 | $ | 3,474 | $ | (60 | ) | (2 | )% | ||||||
Utilities | 1,354 | 1,338 | 16 | 1 | % | ||||||||||
Contract services | 1,513 | 1,339 | 174 | 13 | % | ||||||||||
Repairs and maintenance | 713 | 757 | (44 | ) | (6 | )% | |||||||||
Bad debt | 535 | 541 | (6 | ) | (1 | )% | |||||||||
Labor and other | 789 | 848 | (59 | ) | (7 | )% | |||||||||
Total property expenses | $ | 8,318 | $ | 8,297 | $ | 21 | — | % |
Three Months Ended September 30, | |||||||||||||||
Same Store Property Expenses | 2016 | 2015 | Change | % Change | |||||||||||
Real estate taxes | $ | 2,972 | $ | 3,078 | $ | (106 | ) | (3 | )% | ||||||
Utilities | 1,281 | 1,320 | (39 | ) | (3 | )% | |||||||||
Contract services | 1,439 | 1,302 | 137 | 11 | % | ||||||||||
Repairs and maintenance | 701 | 738 | (37 | ) | (5 | )% | |||||||||
Bad debt | 471 | 507 | (36 | ) | (7 | )% | |||||||||
Labor and other | 759 | 783 | (24 | ) | (3 | )% | |||||||||
Total property expenses | $ | 7,623 | $ | 7,728 | $ | (105 | ) | (1 | )% |
Three Months Ended September 30, | ||||||||||||||
Non-Same Store Property Expenses | 2016 | 2015 | Change | % Change | ||||||||||
Real estate taxes | $ | 442 | $ | 396 | $ | 46 | Not meaningful | |||||||
Utilities | 73 | 18 | 55 | Not meaningful | ||||||||||
Contract services | 74 | 37 | 37 | Not meaningful | ||||||||||
Repairs and maintenance | 12 | 19 | (7 | ) | Not meaningful | |||||||||
Bad debt | 64 | 34 | 30 | Not meaningful | ||||||||||
Labor and other | 30 | 65 | (35 | ) | Not meaningful | |||||||||
Total property expenses | $ | 695 | $ | 569 | $ | 126 | Not meaningful |
Three Months Ended September 30, | Percent | ||||||||||||||
2016 | 2015 | Change | Change | ||||||||||||
Same Store (58 properties, exclusive of land held for development) | |||||||||||||||
Property revenues | |||||||||||||||
Rental revenues | $ | 18,225 | $ | 17,602 | $ | 623 | 4 | % | |||||||
Other revenues | 5,066 | 5,269 | (203 | ) | (4 | )% | |||||||||
Total property revenues | 23,291 | 22,871 | 420 | 2 | % | ||||||||||
Property expenses | |||||||||||||||
Property operation and maintenance | 4,651 | 4,650 | 1 | Not meaningful | |||||||||||
Real estate taxes | 2,972 | 3,078 | (106 | ) | (3 | )% | |||||||||
Total property expenses | 7,623 | 7,728 | (105 | ) | (1 | )% | |||||||||
Total Same Store net operating income | 15,668 | 15,143 | 525 | 3 | % | ||||||||||
Non-Same Store (7 properties, exclusive of land held for development) | |||||||||||||||
Property revenues | |||||||||||||||
Rental revenues | 1,619 | 1,183 | 436 | Not meaningful | |||||||||||
Other revenues | 598 | 545 | 53 | Not meaningful | |||||||||||
Total property revenues | 2,217 | 1,728 | 489 | Not meaningful | |||||||||||
Property expenses | |||||||||||||||
Property operation and maintenance | 253 | 173 | 80 | Not meaningful | |||||||||||
Real estate taxes | 442 | 396 | 46 | Not meaningful | |||||||||||
Total property expenses | 695 | 569 | 126 | Not meaningful | |||||||||||
Total Non-Same Store net operating income | 1,522 | 1,159 | 363 | Not meaningful | |||||||||||
Total property net operating income | 17,190 | 16,302 | 888 | 5 | % | ||||||||||
Less total other expenses, provision for income taxes, gain on sale of properties and loss on disposal of assets | 16,226 | 14,751 | 1,475 | 10 | % | ||||||||||
Income from continuing operations | 964 | 1,551 | (587 | ) | (38 | )% | |||||||||
Income from discontinued operations, net of taxes | — | 44 | (44 | ) | (100 | )% | |||||||||
Net income | $ | 964 | $ | 1,595 | $ | (631 | ) | (40 | )% |
Three Months Ended | |||||||||||||||
September 30, | |||||||||||||||
2016 | 2015 | Change | % Change | ||||||||||||
General and administrative | $ | 6,218 | $ | 5,687 | $ | 531 | 9 | % | |||||||
Depreciation and amortization | 5,449 | 5,149 | 300 | 6 | % | ||||||||||
Interest expense | 4,669 | 3,740 | 929 | 25 | % | ||||||||||
Interest, dividend and other investment income | (164 | ) | (73 | ) | (91 | ) | 125 | % | |||||||
Total other expenses | $ | 16,172 | $ | 14,503 | $ | 1,669 | 12 | % |
Three Months Ended | ||||||||
September 30, | ||||||||
2016 | 2015 | |||||||
Property revenues | ||||||||
Rental revenues | $ | — | $ | 43 | ||||
Other revenues | — | — | ||||||
Total property revenues | — | 43 | ||||||
Property expenses | ||||||||
Property operation and maintenance | — | — | ||||||
Real estate taxes | — | — | ||||||
Total property expenses | — | — | ||||||
Other expenses | ||||||||
Interest expense | — | — | ||||||
Depreciation and amortization | — | — | ||||||
Total other expense | — | — | ||||||
Income before loss on disposal of assets and income taxes | — | 43 | ||||||
Provision for income taxes | — | — | ||||||
Gain on sale or disposal of property or assets in discontinued operations | — | 1 | ||||||
Income from discontinued operations | $ | — | $ | 44 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Number of properties owned and operated | 71 | 70 | ||||||
Aggregate gross leasable area (sq. ft.) | 6,119,005 | 5,967,779 | ||||||
Ending occupancy rate - operating portfolio(1) | 88 | % | 86 | % | ||||
Ending occupancy rate - all properties | 87 | % | 86 | % | ||||
Total property revenues | $ | 76,072 | $ | 67,821 | ||||
Total property expenses | 24,453 | 22,548 | ||||||
Total other expenses | 46,711 | 39,978 | ||||||
Provision for income taxes | 247 | 274 | ||||||
Gain on sale of properties | (2,890 | ) | — | |||||
Loss (gain) on disposal of assets | (10 | ) | 248 | |||||
Income from continuing operations | 7,561 | 4,773 | ||||||
Income from discontinued operations, net of taxes | — | 3 | ||||||
Net income | 7,561 | 4,776 | ||||||
Less: Net income attributable to noncontrolling interests | 131 | 78 | ||||||
Net income attributable to Whitestone REIT | $ | 7,430 | $ | 4,698 | ||||
Funds from operations core (2) | $ | 28,732 | $ | 26,099 | ||||
Property net operating income (3) | 51,619 | 45,273 | ||||||
Distributions paid on common shares and OP units | 24,021 | 21,137 | ||||||
Distributions per common share and OP unit | $ | 0.8550 | $ | 0.8550 | ||||
Distributions paid as a percentage of funds from operations core | 84 | % | 81 | % |
(1) | Excludes (i) new acquisitions, through the earlier of attainment of 90% occupancy or 18 months of ownership, and (ii) properties that are undergoing significant redevelopment or re-tenanting. |
(2) | For a reconciliation of funds from operations core to net income, see “—Reconciliation of Non-GAAP Financial Measures—Funds From Operations (“FFO”) Core” below. |
(3) | For a reconciliation of property net operating income to net income, see “—Reconciliation of Non-GAAP Financial Measures—Property Net Operating Income (“NOI”)” below. |
Nine Months Ended September 30, | |||||||||||||||
Overall Property Expenses | 2016 | 2015 | Change | % Change | |||||||||||
Real estate taxes | $ | 10,072 | $ | 9,303 | $ | 769 | 8 | % | |||||||
Utilities | 3,590 | 3,518 | 72 | 2 | % | ||||||||||
Contract services | 4,507 | 3,847 | 660 | 17 | % | ||||||||||
Repairs and maintenance | 2,445 | 2,098 | 347 | 17 | % | ||||||||||
Bad debt | 1,298 | 1,342 | (44 | ) | (3 | )% | |||||||||
Labor and other | 2,541 | 2,440 | 101 | 4 | % | ||||||||||
Total property expenses | $ | 24,453 | $ | 22,548 | $ | 1,905 | 8 | % |
Nine Months Ended September 30, | |||||||||||||||
Same Store Property Expenses | 2016 | 2015 | Change | % Change | |||||||||||
Real estate taxes | $ | 8,124 | $ | 8,512 | $ | (388 | ) | (5 | )% | ||||||
Utilities | 3,269 | 3,379 | (110 | ) | (3 | )% | |||||||||
Contract services | 4,095 | 3,719 | 376 | 10 | % | ||||||||||
Repairs and maintenance | 2,326 | 2,030 | 296 | 15 | % | ||||||||||
Bad debt | 921 | 1,214 | (293 | ) | (24 | )% | |||||||||
Labor and other | 2,308 | 2,361 | (53 | ) | (2 | )% | |||||||||
Total property expenses | $ | 21,043 | $ | 21,215 | $ | (172 | ) | (1 | )% |
Nine Months Ended September 30, | ||||||||||||||
Non-Same Store Property Expenses | 2016 | 2015 | Change | % Change | ||||||||||
Real estate taxes | $ | 1,948 | $ | 791 | $ | 1,157 | Not meaningful | |||||||
Utilities | 321 | 139 | 182 | Not meaningful | ||||||||||
Contract services | 412 | 128 | 284 | Not meaningful | ||||||||||
Repairs and maintenance | 119 | 68 | 51 | Not meaningful | ||||||||||
Bad debt | 377 | 128 | 249 | Not meaningful | ||||||||||
Labor and other | 233 | 79 | 154 | Not meaningful | ||||||||||
Total property expenses | $ | 3,410 | $ | 1,333 | $ | 2,077 | Not meaningful |
Nine Months Ended September 30, | Percent | ||||||||||||||
2016 | 2015 | Change | Change | ||||||||||||
Same Store (56 properties, exclusive of land held for development) | |||||||||||||||
Property revenues | |||||||||||||||
Rental revenues | $ | 51,344 | $ | 49,895 | $ | 1,449 | 3 | % | |||||||
Other revenues | 14,275 | 14,170 | 105 | 1 | % | ||||||||||
Total property revenues | 65,619 | 64,065 | 1,554 | 2 | % | ||||||||||
Property expenses | |||||||||||||||
Property operation and maintenance | 12,916 | 12,703 | 213 | 2 | % | ||||||||||
Real estate taxes | 8,127 | 8,512 | (385 | ) | (5 | )% | |||||||||
Total property expenses | 21,043 | 21,215 | (172 | ) | (1 | )% | |||||||||
Total Same Store net operating income | 44,576 | 42,850 | 1,726 | 4 | % | ||||||||||
Non-Same Store (9 properties, exclusive of land held for development) | |||||||||||||||
Property revenues | |||||||||||||||
Rental revenues | 7,571 | 2,531 | 5,040 | Not meaningful | |||||||||||
Other revenues | 2,882 | 1,225 | 1,657 | Not meaningful | |||||||||||
Total property revenues | 10,453 | 3,756 | 6,697 | Not meaningful | |||||||||||
Property expenses | |||||||||||||||
Property operation and maintenance | 1,465 | 542 | 923 | Not meaningful | |||||||||||
Real estate taxes | 1,945 | 791 | 1,154 | Not meaningful | |||||||||||
Total property expenses | 3,410 | 1,333 | 2,077 | Not meaningful | |||||||||||
Total Non-Same Store net operating income | 7,043 | 2,423 | 4,620 | Not meaningful | |||||||||||
Total property net operating income | 51,619 | 45,273 | 6,346 | 14 | % | ||||||||||
Less total other expenses, provision for income taxes, gain on sale of properties and loss on disposal of assets | 44,058 | 40,500 | 3,558 | 9 | % | ||||||||||
Income from continuing operations | 7,561 | 4,773 | 2,788 | 58 | % | ||||||||||
Income from discontinued operations, net of taxes | — | 3 | (3 | ) | (100 | )% | |||||||||
Net income | $ | 7,561 | $ | 4,776 | $ | 2,785 | 58 | % |
Nine Months Ended | |||||||||||||||
September 30, | |||||||||||||||
2016 | 2015 | Change | % Change | ||||||||||||
General and administrative | $ | 16,467 | $ | 15,170 | $ | 1,297 | 9 | % | |||||||
Depreciation and amortization | 16,362 | 14,388 | 1,974 | 14 | % | ||||||||||
Interest expense | 14,221 | 10,664 | 3,557 | 33 | % | ||||||||||
Interest, dividend and other investment income | (339 | ) | (244 | ) | (95 | ) | 39 | % | |||||||
Total other expenses | $ | 46,711 | $ | 39,978 | $ | 6,733 | 17 | % |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Property revenues | ||||||||
Rental revenues | $ | — | $ | 43 | ||||
Other revenues | — | — | ||||||
Total property revenues | — | 43 | ||||||
Property expenses | ||||||||
Property operation and maintenance | — | 41 | ||||||
Real estate taxes | — | — | ||||||
Total property expenses | — | 41 | ||||||
Other expenses | ||||||||
Interest expense | — | — | ||||||
Depreciation and amortization | — | — | ||||||
Total other expense | — | — | ||||||
Income before loss on disposal of assets and income taxes | — | 2 | ||||||
Provision for income taxes | — | — | ||||||
Gain on sale or disposal of property or assets in discontinued operations | — | 1 | ||||||
Income from discontinued operations | $ | — | $ | 3 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
FFO AND FFO CORE | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 1,570 | $ | 7,430 | $ | 4,698 | ||||||||
Depreciation and amortization of real estate assets | 5,405 | 5,121 | 16,195 | 14,304 | ||||||||||||
(Gain) loss on sale or disposal of assets and properties | (26 | ) | 148 | (2,900 | ) | 248 | ||||||||||
Net income attributable to noncontrolling interests | 15 | 25 | 131 | 78 | ||||||||||||
FFO | 6,343 | 6,864 | 20,856 | 19,328 | ||||||||||||
Non cash share-based compensation expense | 3,042 | 1,859 | 6,886 | 5,202 | ||||||||||||
Acquisition costs | 427 | 729 | 990 | 1,569 | ||||||||||||
FFO Core | $ | 9,812 | $ | 9,452 | $ | 28,732 | $ | 26,099 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
PROPERTY NET OPERATING INCOME | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to Whitestone REIT | $ | 949 | $ | 1,570 | $ | 7,430 | $ | 4,698 | ||||||||
General and administrative expenses | 6,218 | 5,687 | 16,467 | 15,170 | ||||||||||||
Depreciation and amortization | 5,449 | 5,149 | 16,362 | 14,388 | ||||||||||||
Interest expense | 4,669 | 3,740 | 14,221 | 10,664 | ||||||||||||
Interest, dividend and other investment income | (164 | ) | (73 | ) | (339 | ) | (244 | ) | ||||||||
Provision for income taxes | 80 | 100 | 247 | 274 | ||||||||||||
Gain on sale of properties | — | — | (2,890 | ) | — | |||||||||||
(Gain) loss on disposal of assets | (26 | ) | 148 | (10 | ) | 248 | ||||||||||
Income from discontinued operations | — | (44 | ) | — | (3 | ) | ||||||||||
Net income attributable to noncontrolling interests | 15 | 25 | 131 | 78 | ||||||||||||
NOI | $ | 17,190 | $ | 16,302 | $ | 51,619 | $ | 45,273 |
• | Cash flow from operations of $27,993,000 for the nine months ended September 30, 2016; |
• | Net proceeds of $64,000,000 from the Facility; |
• | Net proceeds of $26,686,000 from issuance of common shares; |
• | Change in restricted cash of $18,000; |
• | Proceeds of $3,957,000 from sales of properties; |
• | Payment of distributions to common shareholders and OP unit holders of $24,021,000; |
• | Additions to real estate of $15,362,000; |
• | Acquisitions of real estate of $60,616,000; |
• | Repurchase of common shares of $2,904,000; and |
• | Payments of notes payable of $13,552,000. |
Description | September 30, 2016 | December 31, 2015 | ||||||
Fixed rate notes | ||||||||
$10.5 million, LIBOR plus 2.00% Note, due September 24, 2018 (1) | $ | 10,040 | $ | 10,220 | ||||
$50.0 million, 0.84% plus 1.35% to 1.90% Note, due October 30, 2020 (2) | 50,000 | 50,000 | ||||||
$50.0 million, 1.50% plus 1.35% to 1.90% Note, due January 29, 2021 (3) | 50,000 | 50,000 | ||||||
$100.0 million, 1.73% plus 1.65% to 2.25% Note, due October 30, 2022 (4) | 100,000 | 100,000 | ||||||
$37.0 million 3.76% Note, due December 1, 2020 | 34,414 | 35,146 | ||||||
$6.5 million 3.80% Note, due January 1, 2019 | 6,063 | 6,190 | ||||||
$19.0 million 4.15% Note, due December 1, 2024 | 19,000 | 19,000 | ||||||
$20.2 million 4.28% Note, due June 6, 2023 | 19,794 | 20,040 | ||||||
$14.0 million 4.34% Note, due September 11, 2024 | 14,000 | 14,000 | ||||||
$14.3 million 4.34% Note, due September 11, 2024 | 14,300 | 14,300 | ||||||
$16.5 million 4.97% Note, due September 26, 2023 | 16,357 | 16,450 | ||||||
$15.1 million 4.99% Note, due January 6, 2024 | 15,060 | 15,060 | ||||||
$9.2 million, Prime Rate less 2.00% Note, due December 29, 2017 (5) | 7,873 | 7,886 | ||||||
$2.6 million 5.46% Note, due October 1, 2023 | 2,522 | 2,550 | ||||||
$11.1 million 5.87% Note, due August 6, 2016 | — | 11,305 | ||||||
$1.1 million 2.97% Note, due November 28, 2016 | 212 | — | ||||||
Floating rate notes | ||||||||
Unsecured line of credit, LIBOR plus 1.40% to 1.95%, due October 30, 2019 | 191,600 | 127,600 | ||||||
Total notes payable principal | 551,235 | 499,747 | ||||||
Less deferred financing costs, net of accumulated amortization | (1,564 | ) | (1,792 | ) | ||||
$ | 549,671 | $ | 497,955 |
(1) | Promissory note includes an interest rate swap that fixed the interest rate at 3.55% for the duration of the term. |
(2) | Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 1 (as defined below) at 0.84% through February 3, 2017 and 1.75% beginning February 3, 2017 through October 30, 2020. |
(3) | Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 2 (as defined below) at 1.50%. |
(4) | Promissory note includes an interest rate swap that fixed the LIBOR portion of Term Loan 3 (as defined below) at 1.73%, |
(5) | Promissory note includes an interest rate swap that fixed the interest rate at 5.72% for the duration of the term. As part of our acquisition of Paradise Plaza in August 2012, we recorded a discount on the note of $1.3 million, which amortizes into interest expense over the life of the loan and results in an imputed interest rate of 4.13%. |
• | extended the maturity date of the $300 million unsecured revolving credit facility under the 2014 Facility (the “Revolver”) to October 30, 2019 from November 7, 2018; |
• | converted $100 million of outstanding borrowings under the Revolver to a new $100 million unsecured term loan under the 2014 Facility (“Term Loan 3”) with a maturity date of October 30, 2022; |
• | extended the maturity date of the first $50 million unsecured term loan under the 2014 Facility (“Term Loan 1”) to October 30, 2020 from February 17, 2017; and |
• | extended the maturity date of the second $50 million unsecured term loan under the 2014 Facility (“Term Loan 2” and together with Term Loan 1 and Term Loan 3, the “Term Loans”) to January 29, 2021 from November 7, 2019. |
Year | Amount Due | |||
2016 | $ | 765 | ||
2017 | 10,213 | |||
2018 | 12,136 | |||
2019 | 199,649 | |||
2020 | 82,827 | |||
Thereafter | 245,645 | |||
Total | $ | 551,235 |
Common Shares | Noncontrolling OP Unit Holders | Total | ||||||||||||||||||
Quarter Paid | Distributions Per Common Share | Amount Paid | Distributions Per OP Unit | Amount Paid | Amount Paid | |||||||||||||||
2016 | ||||||||||||||||||||
Third Quarter | $ | 0.2850 | $ | 8,109 | $ | 0.2850 | $ | 138 | $ | 8,247 | ||||||||||
Second Quarter | 0.2850 | 7,786 | 0.2850 | 138 | 7,924 | |||||||||||||||
First Quarter | 0.2850 | 7,711 | 0.2850 | 139 | 7,850 | |||||||||||||||
Total | $ | 0.8550 | $ | 23,606 | $ | 0.8550 | $ | 415 | $ | 24,021 | ||||||||||
2015 | ||||||||||||||||||||
Fourth Quarter | $ | 0.2850 | $ | 7,666 | $ | 0.2850 | $ | 143 | $ | 7,809 | ||||||||||
Third Quarter | 0.2850 | 7,664 | 0.2850 | 122 | 7,786 | |||||||||||||||
Second Quarter | 0.2850 | 6,601 | 0.2850 | 111 | 6,712 | |||||||||||||||
First Quarter | 0.2850 | 6,526 | 0.2850 | 113 | 6,639 | |||||||||||||||
Total | $ | 1.1400 | $ | 28,457 | $ | 1.1400 | $ | 489 | $ | 28,946 |
(a) | During the period covered by this Form 10-Q, we did not sell any equity securities that were not registered under the Securities Act of 1933, as amended. |
(b) | Not applicable. |
(c) | Issuer Purchases of Equity Securities |
Period | Total Number of Shares Purchased (1) | Average Price Paid for Shares | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs | |||||||
July 1, 2016 through July 31, 2016 | — | $ | — | N/A | N/A | ||||||
August 1, 2016 through August 30, 2016 | — | — | N/A | N/A | |||||||
September 1, 2016 through September 30, 2016 | 70,433 | 13.88 | N/A | N/A | |||||||
Total | 70,433 | $ | 13.88 |
WHITESTONE REIT | ||||
Date: | November 2, 2016 | /s/ James C. Mastandrea | ||
James C. Mastandrea | ||||
Chief Executive Officer | ||||
(Principal Executive Officer) |
Date: | November 2, 2016 | /s/ David K. Holeman | ||
David K. Holeman | ||||
Chief Financial Officer | ||||
(Principal Financial and Principal Accounting Officer) |
EXHIBIT INDEX |
Exhibit No. | Description |
3.1.1 | Articles of Amendment and Restatement of Declaration of Trust (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on July 31, 2008) |
3.1.2 | Articles Supplementary (previously filed as and incorporated by reference to Exhibit 3(i).1 to the Registrant's Current Report on Form 8-K, filed on December 6, 2006) |
3.1.3 | Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on August 24, 2010) |
3.1.4 | Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K, filed on August 24, 2010) |
3.1.5 | Articles Supplementary (previously filed as and incorporated by reference to Exhibit 3.3 to the Registrant's Current Report on Form 8-K, filed on August 24, 2010) |
3.1.6 | Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.1.1 to the Registrant's Current Report on Form 8-K, filed on June 27, 2012) |
3.1.7 | Articles of Amendment (previously filed as and incorporated by reference to Exhibit 3.1.2 to Registrant's Current Report on Form 8-K, filed on June 27, 2012) |
3.2 | Amended and Restated Bylaws (previously filed as and incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on October 9, 2008) |
12.1* | Statement of Calculation of Consolidated Ratio of Earnings to Fixed Charges. |
31.1* | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2* | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1** | Certificate of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2** | Certificate of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS*** | XBRL Instance Document |
101.SCH*** | XBRL Taxonomy Extension Schema Document |
101.CAL*** | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB*** | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE*** | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF*** | XBRL Taxonomy Extension Definition Linkbase Document |
Nine Months | ||||||||||||||||
Ended September 30, | Year Ended December 31, | |||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||
Earnings | ||||||||||||||||
Income (loss) from continuing operations | $ | 7,561 | $ | 6,854 | $ | 5,349 | $ | 3,621 | $ | (165 | ) | |||||
Plus: Taxes | 247 | 372 | 282 | 293 | 275 | |||||||||||
Plus: Fixed charges | 14,692 | 15,122 | 10,672 | 10,089 | 9,084 | |||||||||||
Total earnings | $ | 22,500 | $ | 22,348 | $ | 16,303 | $ | 14,003 | $ | 9,194 | ||||||
Fixed charges | ||||||||||||||||
Interest expense | $ | 13,514 | $ | 13,804 | $ | 9,680 | $ | 8,929 | $ | 7,482 | ||||||
Plus: Capitalized Interest | 235 | 106 | 93 | 114 | 176 | |||||||||||
Plus: Amortization of deferred financing costs | 943 | 1,212 | 899 | 1,046 | 1,426 | |||||||||||
Total fixed charges | $ | 14,692 | $ | 15,122 | $ | 10,672 | $ | 10,089 | $ | 9,084 | ||||||
Ratio of earnings to fixed charges | 1.53 | 1.48 | 1.53 | 1.39 | 1.01 |
1. | I have reviewed this quarterly report on Form 10-Q, for the period ended September 30, 2016, of Whitestone REIT; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q, for the period ended September 30, 2016, of Whitestone REIT; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ James C. Mastandrea |
James C. Mastandrea |
Chairman and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ David K. Holeman |
David K. Holeman |
Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 31, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Whitestone REIT | |
Entity Central Index Key | 0001175535 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,252,918 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred shares, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred shares, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
Common shares, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 29,218,531 | 26,991,493 |
Common shares, outstanding (in shares) | 29,218,531 | 26,991,493 |
Consolidated Statements of Cash Flows - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Cash flows from operating activities: | ||
Net income from continuing operations | $ 7,561,000 | $ 4,773,000 |
Income from discontinued operations | 0 | 3,000 |
Net income | 7,561,000 | 4,776,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,362,000 | 14,388,000 |
Amortization of deferred loan costs | 1,202,000 | 902,000 |
Amortization of notes payable discount | 241,000 | 222,000 |
Gain on sale of marketable securities | 0 | (44,000) |
Loss (gain) on sale or disposal of assets and properties | (2,900,000) | 248,000 |
Bad debt expense | 1,298,000 | 1,318,000 |
Share-based compensation | 6,874,000 | 5,209,000 |
Changes in operating assets and liabilities: | ||
Escrows and acquisition deposits | 485,000 | (1,445,000) |
Accrued rent and accounts receivable | (2,802,000) | (3,583,000) |
Unamortized lease commissions | (2,126,000) | (1,207,000) |
Prepaid expenses and other assets | 725,000 | 341,000 |
Accounts payable and accrued expenses | 261,000 | 4,201,000 |
Tenants' security deposits | 812,000 | 671,000 |
Net cash provided by operating activities | 27,993,000 | 25,994,000 |
Net cash provided by operating activities of discontinued operations | 0 | 3,000 |
Cash flows from investing activities: | ||
Acquisitions of real estate | (60,616,000) | (147,950,000) |
Additions to real estate | (15,362,000) | (7,954,000) |
Proceeds from sales of properties | 3,957,000 | 0 |
Proceeds from sales of marketable securities | 0 | 496,000 |
Net cash used in investing activities | (72,021,000) | (155,408,000) |
Net cash used in investing activities of discontinued operations | 0 | 0 |
Cash flows from financing activities: | ||
Distributions paid to common shareholders | (23,606,000) | (20,791,000) |
Distributions paid to OP unit holders | (415,000) | (346,000) |
Proceeds from issuance of common shares, net of offering costs | 26,686,000 | 49,717,000 |
Proceeds from revolving credit facility, net | 64,000,000 | 105,500,000 |
Repayments of notes payable | (13,552,000) | (2,141,000) |
Change in restricted cash | 18,000 | (86,000) |
Repurchase of common shares | (2,904,000) | (1,018,000) |
Net cash provided by financing activities | 50,227,000 | 130,835,000 |
Net cash used in financing activities of discontinued operations | 0 | 0 |
Net increase in cash and cash equivalents | 6,199,000 | 1,424,000 |
Cash and cash equivalents at beginning of period | 2,587,000 | 4,236,000 |
Cash and cash equivalents at end of period | 8,786,000 | 5,660,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 13,700,000 | 9,826,000 |
Cash paid for taxes | 284,000 | 315,000 |
Non cash investing and financing activities: | ||
Disposal of fully depreciated real estate | 544,000 | 57,000 |
Financed insurance premiums | 1,060,000 | 1,057,000 |
Value of shares issued under dividend reinvestment plan | 83,000 | 71,000 |
Value of common shares exchanged for OP units | 125,000 | 84,000 |
Change in fair value of available-for-sale securities | 20,000 | (106,000) |
Change in fair value of cash flow hedge | (6,962,000) | (460,000) |
Acquisition of real estate in exchange for OP units | $ 8,738,000 | $ 1,333,000 |
Interim Financial Statements |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | INTERIM FINANCIAL STATEMENTS The consolidated financial statements included in this report are unaudited; however, amounts presented in the consolidated balance sheet as of December 31, 2015 are derived from our audited consolidated financial statements as of that date. The unaudited financial statements as of and for the period ended September 30, 2016 have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information on a basis consistent with the annual audited consolidated financial statements and with the instructions to Form 10-Q. The consolidated financial statements presented herein reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position of Whitestone and our subsidiaries as of September 30, 2016, and the results of operations for the three and nine month periods ended September 30, 2016 and 2015, the consolidated statements of changes in equity for the nine month period ended September 30, 2016 and cash flows for the nine month periods ended September 30, 2016 and 2015. All of these adjustments are of a normal recurring nature. The results of operations for the interim periods are not necessarily indicative of the results expected for a full year. The statements should be read in conjunction with the audited consolidated financial statements and the notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2015. Business. Whitestone was formed as a real estate investment trust (“REIT”) pursuant to the Texas Real Estate Investment Trust Act on August 20, 1998. In July 2004, we changed our state of organization from Texas to Maryland pursuant to a merger where we merged directly with and into a Maryland REIT formed for the sole purpose of the reorganization and the conversion of each of the outstanding common shares of beneficial interest of the Texas entity into 1.42857 common shares of beneficial interest of the Maryland entity. We serve as the general partner of Whitestone REIT Operating Partnership, L.P. (the “Operating Partnership”), which was formed on December 31, 1998 as a Delaware limited partnership. We currently conduct substantially all of our operations and activities through the Operating Partnership. As the general partner of the Operating Partnership, we have the exclusive power to manage and conduct the business of the Operating Partnership, subject to certain customary exceptions. As of September 30, 2016 and December 31, 2015, Whitestone owned and operated 71 and 70 commercial properties, respectively, in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. |
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation. We are the sole general partner of the Operating Partnership and possess full legal control and authority over the operations of the Operating Partnership. As of September 30, 2016 and December 31, 2015, we owned a majority of the partnership interests in the Operating Partnership. Consequently, the accompanying consolidated financial statements include the accounts of the Operating Partnership. All significant inter-company balances have been eliminated. Noncontrolling interests in the accompanying consolidated financial statements represents the share of equity and earnings of the Operating Partnership allocable to holders of partnership interests other than us. Net income or loss is allocated to noncontrolling interests based on the weighted average percentage ownership of the Operating Partnership during the period. Issuance of additional common shares of beneficial interest in Whitestone (the “common shares”) and units of limited partnership interest in the Operating Partnership that are convertible into cash or, at our option, common shares on a one-for-one basis (the “OP units”) changes the ownership interests of both the noncontrolling interests and Whitestone. Basis of Accounting. Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred. Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that we use include the estimated fair values of properties acquired, the estimated useful lives for depreciable and amortizable assets and costs, the estimated allowance for doubtful accounts, the estimated fair value of interest rate swaps and the estimates supporting our impairment analysis for the carrying values of our real estate assets. Actual results could differ from those estimates. Reclassifications. We have reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. During the nine months ended September 30, 2016, we reclassified certain deferred financing costs, previously classified as an asset as a direct reduction from the carrying amount of certain debt liabilities for all periods presented. Deferred financing costs related to our unsecured line of credit have not been reclassified. See Note 6 for additional information. These reclassifications had no effect on net income or equity. Restricted Cash. We classify all cash pledged as collateral to secure certain obligations and all cash whose use is limited as restricted cash. During 2015, pursuant to the terms of our $15.1 million 4.99% Note, due January 6, 2024 (See Note 6), which is collateralized by our Anthem Marketplace property, we were required by the lenders thereunder to establish a cash management account controlled by the lenders to collect all amounts generated by our Anthem Marketplace property in order to collateralize such promissory note. As a result, these amounts are reported in the consolidated statements of cash flows under cash flows from financing activities as change in restricted cash. Marketable Securities. We classify our existing marketable equity securities as available-for-sale in accordance with the Financial Accounting Standards Board's (“FASB”) Investments-Debt and Equity Securities guidance. These securities are carried at fair value with unrealized gains and losses reported in equity as a component of accumulated other comprehensive income or loss. The fair value of the marketable securities is determined using Level 1 inputs under FASB Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” Level 1 inputs represent quoted prices available in an active market for identical investments as of the reporting date. Gains and losses on securities sold are based on the specific identification method, and are reported as a component of interest, dividend and other investment income. Derivative Instruments and Hedging Activities. We utilize derivative financial instruments, principally interest rate swaps, to manage our exposure to fluctuations in interest rates. We have established policies and procedures for risk assessment, and the approval, reporting and monitoring of derivative financial instruments. We recognize our interest rate swaps as cash flow hedges with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Any ineffective portion of a cash flow hedges' change in fair value is recorded immediately into earnings. Our cash flow hedges are determined using Level 2 inputs under ASC 820. Level 2 inputs represent quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations whose inputs are observable. As of September 30, 2016, we consider our cash flow hedges to be highly effective. Development Properties. Land, buildings and improvements are recorded at cost. Expenditures related to the development of real estate are carried at cost which includes capitalized carrying charges and development costs. Carrying charges (interest, real estate taxes, loan fees, and direct and indirect development costs related to buildings under construction), are capitalized as part of construction in progress. The capitalization of such costs ceases when the property, or any completed portion, becomes available for occupancy. For the three months ended September 30, 2016, approximately $103,000 and $16,000 in interest expense and real estate taxes, respectively, were capitalized, and for the nine months ended September 30, 2016, approximately $235,000 and $48,000 in interest expense and real estate taxes, respectively, were capitalized. For the three months ended September 30, 2015, approximately $25,000 and $16,000 in interest expense and real estate taxes, respectively, were capitalized, and for the nine months ended September 30, 2015, approximately $83,000 and $53,000 in interest expense and real estate taxes, respectively, were capitalized. Real Estate Held for Sale and Discontinued Operations. We consider a commercial property to be held for sale when it meets all of the criteria established under ASC 205, “Presentation of Financial Statements.” For commercial properties classified as held for sale, assets and liabilities are presented separately for all periods presented. In accordance with ASC 205, a discontinued operation may include a component of an entity or a group of components of an entity. A disposal of a component of an entity or a group of components of an entity is reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component of an entity or group of components of an entity is classified as held for sale, disposed of by sale or disposed of other than by sale, respectively. In addition, ASC 205 requires us to provide additional disclosures about both discontinued operations and the disposal of an individually significant component of an entity that does not meet the criteria for a discontinued operation. Share-Based Compensation. From time to time, we award nonvested restricted common share awards or restricted common share unit awards, which may be converted into common shares, to executive officers and employees under our 2008 Long-Term Equity Incentive Ownership Plan (the “2008 Plan”). The vast majority of the awarded shares and units vest when certain performance conditions are met. We recognize compensation expense when achievement of the performance conditions is probable based on management's most recent estimates using the fair value of the shares as of the grant date. We recognized $3,042,000 and $1,859,000 in share-based compensation for the three months ended September 30, 2016 and 2015, respectively, and we recognized $6,886,000 and $5,202,000 in share-based compensation for the nine months ended September 30, 2016 and 2015, respectively. Noncontrolling Interests. Noncontrolling interests is the portion of equity in a subsidiary not attributable to a parent. The ownership interests not held by the parent are considered noncontrolling interests. Accordingly, we have reported noncontrolling interests in equity on the consolidated balance sheets but separate from Whitestone's equity. On the consolidated statements of operations, subsidiaries are reported at the consolidated amount, including both the amount attributable to Whitestone and noncontrolling interests. The consolidated statement of changes in equity is included for quarterly financial statements, including beginning balances, activity for the period and ending balances for shareholders' equity, noncontrolling interests and total equity. See our Annual Report on Form 10-K for the year ended December 31, 2015 for further discussion on significant accounting policies. Recent Accounting Pronouncements. In April 2015, the FASB issued guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. In August 2015, the FASB issued guidance to clarify that debt issuance costs related to line-of-credit agreements may still be presented as an asset and subsequently amortized ratably over the term of such arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit. This guidance was effective for reporting periods beginning on or after December 15, 2015 and is to be applied retrospectively. We have adopted this guidance for all periods presented. In February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting will remain largely unchanged. The guidance will also require new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. This guidance will be effective for reporting periods beginning on or after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of this guidance and its impact on our consolidated financial statements. In March 2016, the FASB issued guidance simplifying the accounting for share-based payment transactions, including the income tax consequences, balance sheet classification of awards and the classification on the statement of cash flows. This guidance will be effective for reporting periods beginning on or after December 15, 2016, and interim periods within those fiscal years. We are currently evaluating the impact of this guidance and its impact on our consolidated financial statements. |
Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | MARKETABLE SECURITIES All of our marketable securities were classified as available-for-sale securities as of September 30, 2016 and December 31, 2015. Available-for-sale securities consisted of the following (in thousands):
During the three and nine months ended September 30, 2016, no available-for-sale securities were sold. During the three months ended September 30, 2015, no available-for-sale securities were sold and during the nine months ended September 30, 2015, available-for-sale securities were sold for total proceeds of $496,000. The gross realized gain on these sales during the nine months ended September 30, 2015 was $44,000. For purposes of determining gross realized gains and losses, the cost of securities sold is based on specific identification. A net unrealized holding loss on available-for-sale securities in the amount of $198,000 and $240,000 for the nine months ended September 30, 2016 and 2015, respectively, has been included in accumulated other comprehensive income (loss). |
Accrued Rents and Accounts Receivable, Net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Rent and Accounts Receivable, Net | ACCRUED RENTS AND ACCOUNTS RECEIVABLE, NET Accrued rents and accounts receivable, net consists of amounts accrued, billed and due from tenants, allowance for doubtful accounts and other receivables as follows (in thousands):
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Unamortized Leasing Commissions and Loan Costs |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized Leasing Comissions and Loan Costs | UNAMORTIZED LEASE COMMISSIONS AND LOAN COSTS Costs which have been deferred consist of the following (in thousands):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure | DEBT Certain subsidiaries of Whitestone are the borrowers under various financing arrangements. These subsidiaries are separate legal entities and their respective assets and credit are not available to satisfy the debt of Whitestone or any of its other subsidiaries. Debt consisted of the following as of the dates indicated (in thousands):
On November 7, 2014, we, through our Operating Partnership, entered into an unsecured revolving credit facility (the “2014 Facility”) with the lenders party thereto, with BMO Capital Markets, Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and U.S. Bank, National Association, as co-lead arrangers and joint book runners, and Bank of Montreal, as administrative agent (the “Agent”). The 2014 Facility amended and restated our previous unsecured revolving credit facility. On October 30, 2015, we, through our Operating Partnership, entered into the First Amendment to the 2014 Facility (the “First Amendment”) with the guarantors party thereto, the lenders party thereto and the Agent. We refer to the 2014 Facility, as amended by the First Amendment, as the “Facility.” Pursuant to the First Amendment, the Company made the following amendments to the 2014 Facility:
Borrowings under the Facility accrue interest (at the Operating Partnership's option) at a Base Rate or an Adjusted LIBOR plus an applicable margin based upon our then existing leverage. The applicable margin for Adjusted LIBOR borrowings ranges from 1.40% to 1.95% for the Revolver and 1.35% to 2.25% for the Term Loans. Base Rate means the higher of: (a) the Agent's prime commercial rate, (b) the sum of (i) the average rate quoted by the Agent by two or more federal funds brokers selected by the Agent for sale to the Agent at face value of federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined, plus (ii) 1/2 of 1.00%, and (c) the LIBOR rate for such day plus 1.00%. Adjusted LIBOR means LIBOR divided by one minus the Eurodollar Reserve Percentage. The Eurodollar Reserve Percentage means the maximum reserve percentage at which reserves are imposed by the Board of Governors of the Federal Reserve System on eurocurrency liabilities. We serve as the guarantor for funds borrowed by the Operating Partnership under the Facility. The Facility contains customary terms and conditions, including, without limitation, affirmative and negative covenants such as information reporting requirements, maximum secured indebtedness to total asset value, minimum EBITDA (earnings before interest, taxes, depreciation, amortization or extraordinary items) to fixed charges, and maintenance of a minimum net worth. The Facility also contains customary events of default with customary notice and cure, including, without limitation, nonpayment, breach of covenant, misrepresentation of representations and warranties in a material respect, cross-default to other major indebtedness, change of control, bankruptcy and loss of REIT tax status. The Facility includes an accordion feature that will allow the Operating Partnership to increase the borrowing capacity to $700 million, upon the satisfaction of certain conditions. As of September 30, 2016, $391.6 million was drawn on the Facility, and our remaining borrowing capacity was $108.4 million. Proceeds from the Facility were used for general corporate purposes, including property acquisitions, debt repayment, capital expenditures, the expansion, redevelopment and retenanting of properties in our portfolio and working capital. We intend to use the additional proceeds from the Facility for general corporate purposes, including property acquisitions, debt repayment, capital expenditure, the expansion, redevelopment and re-tenanting of properties in our portfolio and working capital. As of September 30, 2016, our $159.4 million in secured debt was collateralized by 19 properties with a carrying value of $191.2 million. Our loans contain restrictions that would require the payment of prepayment penalties for the acceleration of outstanding debt and are secured by deeds of trust on certain of our properties and by assignment of the rents and leases associated with those properties. As of September 30, 2016, we were in compliance with all loan covenants. Scheduled maturities of our outstanding debt as of September 30, 2016 were as follows (in thousands):
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Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES The fair value of our interest rate swaps is as follows (in thousands):
On November 19, 2015, we, through our Operating Partnership, entered into an interest rate swap with Bank of Montreal that fixed the LIBOR portion of Term Loan 3 under the Facility at 1.725%. In the fourth quarter of 2015, pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned $35.0 million of the swap to U.S. Bank, National Association, and $15.0 million of the swap to SunTrust Bank. See Note 6 for additional information regarding the Facility. The swap began on November 30, 2015 and will mature on October 28, 2022. We have designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value to be recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The ineffective portion of the change in fair value, if any, will be recognized directly in earnings. On November 19, 2015, we, through our Operating Partnership, entered into an interest rate swap with Bank of Montreal that fixed the LIBOR portion of Term Loan 1 under the Facility at 1.75%. In the fourth quarter of 2015, pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned $3.8 million of the swap to Regions Bank, $6.5 million of the swap to U.S. Bank, National Association, $14.0 million of the swap to Wells Fargo Bank, National Association, $14.0 million of the swap to Bank of America, N.A., and $5.0 million of the swap to SunTrust Bank. See Note 6 for additional information regarding the Facility. The swap will begin on February 3, 2017 and will mature on October 30, 2020. We have designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value to be recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The ineffective portion of the change in fair value, if any, will be recognized directly in earnings. On November 19, 2015, we, through our Operating Partnership, entered into an interest rate swap with Bank of Montreal that fixed the LIBOR portion of Term Loan 2 under the Facility at 1.50%. In the fourth quarter of 2015, pursuant to the terms of the agreement governing the interest rate swap, Bank of Montreal assigned $3.8 million of the swap to Regions Bank, $6.5 million of the swap to U.S. Bank, National Association, $14.0 million of the swap to Wells Fargo Bank, National Association, $14.0 million of the swap to Bank of America, N.A., and $5.0 million of the swap to SunTrust Bank. See Note 6 for additional information regarding the Facility. The swap began on December 7, 2015 and will mature on January 29, 2021. We have designated the interest rate swap as a cash flow hedge with the effective portion of the changes in fair value to be recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The ineffective portion of the change in fair value, if any, will be recognized directly in earnings. A summary of our interest rate swap activity is as follows (in thousands):
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Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share for our common shareholders is calculated by dividing income from continuing operations excluding amounts attributable to unvested restricted common shares and the net income attributable to noncontrolling interests by our weighted average common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income attributable to common shareholders excluding amounts attributable to unvested restricted common shares and the net income attributable to noncontrolling interests by the weighted average number of common shares including any dilutive unvested restricted common shares. Certain of our performance-based restricted common shares are considered participating securities that require the use of the two-class method for the computation of basic and diluted earnings per share. During the three months ended September 30, 2016 and 2015, 487,090 and 435,440 OP units, respectively, were excluded from the calculation of diluted earnings per share because their effect would be anti-dilutive, and during the nine months ended September 30, 2016 and 2015, 487,510 and 406,277 OP units, respectively, were excluded from the calculation of diluted earnings per share because their effect would be anti-dilutive. For the three months ended September 30, 2016 and 2015, distributions of $158,000 and $139,000, respectively, were made to holders of certain restricted common shares, $12,000 and $9,000, respectively, of which were charged against earnings. For the nine months ended September 30, 2016 and 2015, distributions of $510,000 and $427,000, respectively, were made to holders of certain restricted common shares, $12,000 and $27,000, respectively, of which were charged against earnings. See Note 11 for information related to restricted common shares under the 2008 Plan.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES With the exception of our taxable REIT subsidiaries, federal income taxes are generally not provided because we intend to and believe we qualify as a REIT under the provisions of the Internal Revenue Code (the “Code”) and because we have distributed and intend to continue to distribute all of our taxable income to our shareholders. As a REIT, we must distribute at least 90% of our REIT taxable income to our shareholders and meet certain income sources and investment restriction requirements. In addition, REITs are subject to a number of organizational and operational requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate tax rates. Income earned by our taxable REIT subsidiary, Whitestone Davenport TRS LLC (“Davenport TRS”), is subject to federal income tax. For the nine months ended September 30, 2016, we recognized $45,000 in income tax expense related to Davenport TRS for the 2016 taxable year. Taxable income differs from net income for financial reporting purposes principally due to differences in the timing of recognition of interest, real estate taxes, depreciation and rental revenue. We recorded $49,000 in credits to tax expense during the nine months ended September 30, 2016 for the 2015 taxable year. We are subject to the Texas Margin Tax, which is computed by applying the applicable tax rate (0.75% for us) to the profit margin, which generally will be determined for us as total revenue less a 30% standard deduction. Although the Texas Margin Tax is not an income tax, FASB ASC 740, “Income Taxes” applies to the Texas Margin Tax. For the three months ended September 30, 2016 and 2015, we recognized approximately $75,000 and $104,000 in margin tax provision, respectively, and for the nine months ended September 30, 2016 and 2015, we recognized approximately $237,000 and $292,000 in margin tax provision, respectively. |
Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | EQUITY Common Shares Under our declaration of trust, as amended, we have authority to issue up to 400,000,000 common shares of beneficial interest, $0.001 par value per share, and up to 50,000,000 preferred shares of beneficial interest, $0.001 par value per share. Equity Offerings On June 26, 2015, we completed the sale of 3,750,000 common shares, $0.001 par value per share, at a purchase price of $13.3386 per share. Total net proceeds from the offering, after deducting offering expenses, were approximately $49.7 million, which we contributed to the Operating Partnership in exchange for OP units. The Operating Partnership used the net proceeds from the offering to repay a portion of the Facility and for general corporate purposes. On June 4, 2015, we entered into six amended and restated equity distribution agreements for an at-the-market equity distribution program (the “2015 equity distribution agreements”). Pursuant to the terms and conditions of the 2015 equity distribution agreements, we can issue and sell up to an aggregate of $50 million of our common shares. Actual sales will depend on a variety of factors to be determined by us from time to time, including (among others) market conditions, the trading price of our common shares, capital needs and our determinations of the appropriate sources of funding for us, and will be made in transactions that will be deemed to be “at-the-market” offerings as defined in Rule 415 under the Securities Act. We have no obligation to sell any of our common shares, and can at any time suspend offers under the 2015 equity distribution agreements or terminate the 2015 equity distribution agreements. During the three months ended September 30, 2016, we sold 1,083,926 common shares under the 2015 equity distribution agreements, with net proceeds to us of approximately $16.1 million. In connection with such sales, we paid compensation of approximately $0.2 million to the sales agents. During the nine months ended September 30, 2016, we sold 1,819,681 common shares under the 2015 equity distribution agreements, with net proceeds to us of approximately $26.7 million. In connection with such sales, we paid compensation of approximately $0.4 million to the sales agents. We had not sold any common shares under the 2015 equity distribution agreements as of September 30, 2015. Operating Partnership Units Substantially all of our business is conducted through our Operating Partnership. We are the sole general partner of the Operating Partnership. As of September 30, 2016, we owned a 96.3% interest in the Operating Partnership. Limited partners in the Operating Partnership holding OP units have the right to redeem their OP units for cash or, at our option, common shares at a ratio of one OP unit for one common share. Distributions to OP unit holders are paid at the same rate per unit as distributions per share to holders of Whitestone common shares. As of September 30, 2016 and December 31, 2015, there were 30,200,345 and 27,367,704 OP units outstanding, respectively. We owned 29,097,709 and 26,870,671 OP units as of September 30, 2016 and December 31, 2015, respectively. The balance of the OP units is owned by third parties, including certain members of our board of trustees. Our weighted average share ownership in the Operating Partnership was approximately 98.3% and 98.4% for the three months ended September 30, 2016 and 2015, respectively, and 98.3% and 98.4% for the nine months ended September 30, 2016 and 2015, respectively. During the three months ended September 30, 2016 and 2015, 2,434 and 1,693 OP units, respectively, were redeemed for an equal number of common shares, and during the nine months ended September 30, 2016 and 2015, 15,450 and 10,277 OP units, respectively, were redeemed for an equal number of common shares. Distributions The following table summarizes the cash distributions paid or payable to holders of common shares and to holders of noncontrolling OP units during each quarter during 2015 and the nine months ended September 30, 2016 (in thousands, except per share/unit data):
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Incentive Share Plan |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Incentive Share Plan | INCENTIVE SHARE PLAN On July 29, 2008, our shareholders approved the 2008 Plan. On December 22, 2010, our board of trustees amended the 2008 Plan to allow for awards in or related to Class B common shares pursuant to the 2008 Plan. On June 27, 2012, our Class B common shares were redesignated as “common shares.” The 2008 Plan, as amended, provides that awards may be made with respect to common shares of Whitestone or OP units, which may be redeemed for cash or, at our option, common shares of Whitestone. The maximum aggregate number of common shares that may be issued under the 2008 Plan is increased upon each issuance of common shares by Whitestone so that at any time the maximum number of common shares that may be issued under the 2008 Plan shall equal 12.5% of the aggregate number of common shares of Whitestone and OP units issued and outstanding (other than common shares and/or OP units issued to or held by Whitestone). The Compensation Committee of our board of trustees administers the 2008 Plan, except with respect to awards to non-employee trustees, for which the 2008 Plan is administered by our board of trustees. The Compensation Committee is authorized to grant share options, including both incentive share options and non-qualified share options, as well as share appreciation rights, either with or without a related option. The Compensation Committee is also authorized to grant restricted common shares, restricted common share units, performance awards and other share-based awards. On April 2, 2014, the Compensation Committee approved the modification of the vesting provisions with respect to awards of an aggregate of 633,704 restricted common shares and restricted common share units for 51 of our employees. The modified time-based shares will vest annually in three equal installments. The modified performance-based restricted common shares and restricted common share units were modified to include performance-based vesting based on achievement of certain absolute financial goals, as well as one to two years of time-based vesting post achievement of financial goals. Continued employment is required through the applicable vesting date. Additionally, 2,049,116 restricted performance-based common share units were granted with the same vesting conditions as the modified performance-based grants described above. If the performance targets are not met prior to December 31, 2018, any unvested performance-based restricted common shares and restricted common share units will be forfeited. The Compensation Committee approved the grant of an aggregate of 320,000 and 143,000 time-based restricted common share units on June 30, 2016 and 2015, respectively, to James C. Mastandrea and David K. Holeman. A summary of the share-based incentive plan activity as of and for the nine months ended September 30, 2016 is as follows:
A summary of our non-vested and vested shares activity for the nine months ended September 30, 2016 and years ended December 31, 2015, 2014 and 2013 is presented below:
Total compensation recognized in earnings for share-based payments was $3,042,000 and $1,859,000 for the three months ended September 30, 2016 and 2015, respectively, and $6,886,000 and $5,202,000 for the nine months ended September 30, 2016 and 2015, respectively. Based on our current financial projections, we expect approximately 83% of the unvested awards to vest over the next 30 months. As of September 30, 2016, there was approximately $6.8 million in unrecognized compensation cost related to outstanding non-vested performance-based shares, which are expected to vest over a period of 30 months and approximately $6.4 million in unrecognized compensation cost related to outstanding non-vested time-based shares, which are expected to be recognized over a period of approximately 15 months beginning on October 1, 2016. We expect to record approximately $9.8 million in non-cash share-based compensation expense in 2016 and $10.3 million subsequent to 2016. The unrecognized share-based compensation cost is expected to vest over a weighted average period of 20 months. The dilutive impact of the performance-based shares will be included in the denominator of the earnings per share calculation beginning in the period that the performance conditions are expected to be met. |
Grants to Trustees |
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Sep. 30, 2016 | |
Grants to Trustees [Abstract] | |
Grants To Trustees | GRANTS TO TRUSTEES On December 21, 2015, each of our four independent trustees and one trustee emeritus was granted 1,500 common shares, which vested immediately. The 7,500 common shares granted to our trustees had a grant fair value of $12.10 per share. On December 21, 2015, one of our independent trustees elected to receive a total of 992 common shares with a grant date fair value of $12.10 in lieu of cash for board fees. The fair value of the shares granted were determined using quoted prices available on the date of grant. |
Segment Information |
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Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Historically, our management has not differentiated results of operations by property type or location and, therefore, does not present segment information. |
Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Disclosure | REAL ESTATE Property Acquisitions. On September 30, 2016, we acquired La Mirada and Seville, properties that meet our Community Centered Property™ strategy, for 621,053 OP units and $60.7 million in cash and net prorations. The OP units are redeemable for cash or, at our option, Whitestone REIT common shares on a one-for-one basis, subject to certain restrictions. La Mirada, a 147,209 square foot property, was 90% leased at the time of purchase. Seville, a 90,042 square foot property, was 88% leased at the time of purchase. Both properties are located in Scottsdale, Arizona. On August 28, 2015, we acquired the hard corner at our Gilbert Tuscany Village property for approximately $1.7 million in cash and net prorations. The 14,603 square foot single-tenant property was vacant at the time of purchase and is located in Gilbert, Arizona. On August 26, 2015, we acquired two parcels of undeveloped land totaling 3.12 acres for 120,000 OP units. The OP units are redeemable for cash or, at our option, for Whitestone REIT common shares on a one-for-one basis, subject to certain restrictions. The undeveloped land parcels are adjacent to our Keller Place property. On August 26, 2015, we acquired Keller Place, a property that meets our Community Centered Property™ strategy, for approximately $12.0 million in cash and net prorations. The 93,541 square foot property was 92% leased at the time of purchase and is located in the Keller suburb of Fort Worth, Texas. On August 26, 2015, we acquired Quinlan Crossing, a property that meets our Community Centered Property™ strategy, for approximately $37.5 million in cash and net prorations. The 109,892 square foot property was 95% leased at the time of purchase and is located in Austin, Texas. On July 2, 2015, we acquired Parkside Village North, a property that meets our Community Centered Property™ strategy, for approximately $12.5 million in cash and net prorations. The 27,045 square foot property was 100% leased at the time of purchase and is located in Austin, Texas. On July 2, 2015, we acquired Parkside Village South, a property that meets our Community Centered Property™ strategy, for approximately $32.5 million in cash and net prorations. The 90,101 square foot property was 100% leased at the time of purchase and is located in Austin, Texas. On May 27, 2015, we acquired Davenport Village, a property that meets our Community Centered Property™ strategy, for approximately $45.5 million in cash and net prorations. The 128,934 square foot property was 85% leased at the time of purchase and is located in Austin, Texas. On March 31, 2015, we acquired City View Village, a property that meets our Community Centered Property™ strategy, for approximately $6.3 million in cash and net prorations. The 17,870 square foot property was 100% leased at the time of purchase and is located in San Antonio, Texas. Property Dispositions. On March 3, 2016, we completed the sale of Brookhill, located in Houston, Texas, for $3.1 million. This disposition was pursuant to our strategy of recycling capital by disposing of non-core properties, primarily properties that we owned at the time our current management team assumed the management of the Company, that do not fit our Community Centered Property™ strategy. We recorded a gain on sale of $1.9 million. The sale was structured as a like-kind exchange within the meaning of Section 1031 of the Code and sales proceeds were deposited into a Section 1031 exchange escrow account with a qualified intermediary and subsequently distributed for general corporate purposes. We have not included Brookhill in discontinued operations as it did not meet the definition of discontinued operations. On February 17, 2016, we completed the sale of approximately 0.5 acres of our 4.5 acre Pinnacle Phase II development parcel, located in Scottsdale, Arizona, for $1.1 million. We recorded a gain on sale of $1.0 million. Discontinued Operations. On December 31, 2014, we completed the sale of three office buildings (Zeta, Royal Crest and Featherwood), located in the Clear Lake suburb of Houston, Texas, for $10.3 million. This disposition was pursuant to our strategy of recycling capital by disposing of non-core properties that do not fit our Community Centered Property™ strategy. As part of the transaction, we provided short-term seller financing of $2.5 million. We recorded a gain on sale of $4.4 million, including recognizing a $1.9 million gain on sale for the year ended December 31, 2014 and deferring the remaining $2.5 million gain on sale to be recognized upon receipt of principal payments on the financing provided by us. The operating results for properties classified as discontinued operations consists of the following (in thousands):
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Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation. We are the sole general partner of the Operating Partnership and possess full legal control and authority over the operations of the Operating Partnership. As of September 30, 2016 and December 31, 2015, we owned a majority of the partnership interests in the Operating Partnership. Consequently, the accompanying consolidated financial statements include the accounts of the Operating Partnership. All significant inter-company balances have been eliminated. Noncontrolling interests in the accompanying consolidated financial statements represents the share of equity and earnings of the Operating Partnership allocable to holders of partnership interests other than us. Net income or loss is allocated to noncontrolling interests based on the weighted average percentage ownership of the Operating Partnership during the period. Issuance of additional common shares of beneficial interest in Whitestone (the “common shares”) and units of limited partnership interest in the Operating Partnership that are convertible into cash or, at our option, common shares on a one-for-one basis (the “OP units”) changes the ownership interests of both the noncontrolling interests and Whitestone. |
Basis of Accounting | Basis of Accounting. Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that we use include the estimated fair values of properties acquired, the estimated useful lives for depreciable and amortizable assets and costs, the estimated allowance for doubtful accounts, the estimated fair value of interest rate swaps and the estimates supporting our impairment analysis for the carrying values of our real estate assets. Actual results could differ from those estimates. |
Reclassifications | Reclassifications. We have reclassified certain prior period amounts in the accompanying consolidated financial statements in order to be consistent with the current period presentation. During the nine months ended September 30, 2016, we reclassified certain deferred financing costs, previously classified as an asset as a direct reduction from the carrying amount of certain debt liabilities for all periods presented. Deferred financing costs related to our unsecured line of credit have not been reclassified. See Note 6 for additional information. These reclassifications had no effect on net income or equity. |
Marketable Securities | Marketable Securities. We classify our existing marketable equity securities as available-for-sale in accordance with the Financial Accounting Standards Board's (“FASB”) Investments-Debt and Equity Securities guidance. These securities are carried at fair value with unrealized gains and losses reported in equity as a component of accumulated other comprehensive income or loss. The fair value of the marketable securities is determined using Level 1 inputs under FASB Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” Level 1 inputs represent quoted prices available in an active market for identical investments as of the reporting date. Gains and losses on securities sold are based on the specific identification method, and are reported as a component of interest, dividend and other investment income. |
Restricted Cash | Restricted Cash. We classify all cash pledged as collateral to secure certain obligations and all cash whose use is limited as restricted cash. During 2015, pursuant to the terms of our $15.1 million 4.99% Note, due January 6, 2024 (See Note 6), which is collateralized by our Anthem Marketplace property, we were required by the lenders thereunder to establish a cash management account controlled by the lenders to collect all amounts generated by our Anthem Marketplace property in order to collateralize such promissory note. As a result, these amounts are reported in the consolidated statements of cash flows under cash flows from financing activities as change in restricted cash. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities. We utilize derivative financial instruments, principally interest rate swaps, to manage our exposure to fluctuations in interest rates. We have established policies and procedures for risk assessment, and the approval, reporting and monitoring of derivative financial instruments. We recognize our interest rate swaps as cash flow hedges with the effective portion of the changes in fair value recorded in comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Any ineffective portion of a cash flow hedges' change in fair value is recorded immediately into earnings. Our cash flow hedges are determined using Level 2 inputs under ASC 820. Level 2 inputs represent quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations whose inputs are observable. As of September 30, 2016, we consider our cash flow hedges to be highly effective. |
Development Properties | Development Properties. Land, buildings and improvements are recorded at cost. Expenditures related to the development of real estate are carried at cost which includes capitalized carrying charges and development costs. Carrying charges (interest, real estate taxes, loan fees, and direct and indirect development costs related to buildings under construction), are capitalized as part of construction in progress. The capitalization of such costs ceases when the property, or any completed portion, becomes available for occupancy. For the three months ended September 30, 2016, approximately $103,000 and $16,000 in interest expense and real estate taxes, respectively, were capitalized, and for the nine months ended September 30, 2016, approximately $235,000 and $48,000 in interest expense and real estate taxes, respectively, were capitalized. For the three months ended September 30, 2015, approximately $25,000 and $16,000 in interest expense and real estate taxes, respectively, were capitalized, and for the nine months ended September 30, 2015, approximately $83,000 and $53,000 in interest expense and real estate taxes, respectively, were capitalized. |
Real Estate Held for Sale and Discontinued Operations | Real Estate Held for Sale and Discontinued Operations. We consider a commercial property to be held for sale when it meets all of the criteria established under ASC 205, “Presentation of Financial Statements.” For commercial properties classified as held for sale, assets and liabilities are presented separately for all periods presented. In accordance with ASC 205, a discontinued operation may include a component of an entity or a group of components of an entity. A disposal of a component of an entity or a group of components of an entity is reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component of an entity or group of components of an entity is classified as held for sale, disposed of by sale or disposed of other than by sale, respectively. In addition, ASC 205 requires us to provide additional disclosures about both discontinued operations and the disposal of an individually significant component of an entity that does not meet the criteria for a discontinued operation. |
Share-Based Compensation | Share-Based Compensation. From time to time, we award nonvested restricted common share awards or restricted common share unit awards, which may be converted into common shares, to executive officers and employees under our 2008 Long-Term Equity Incentive Ownership Plan (the “2008 Plan”). The vast majority of the awarded shares and units vest when certain performance conditions are met. We recognize compensation expense when achievement of the performance conditions is probable based on management's most recent estimates using the fair value of the shares as of the grant date. We recognized $3,042,000 and $1,859,000 in share-based compensation for the three months ended September 30, 2016 and 2015, respectively, and we recognized $6,886,000 and $5,202,000 in share-based compensation for the nine months ended September 30, 2016 and 2015, respectively. |
Noncontrolling Interests | Noncontrolling Interests. Noncontrolling interests is the portion of equity in a subsidiary not attributable to a parent. The ownership interests not held by the parent are considered noncontrolling interests. Accordingly, we have reported noncontrolling interests in equity on the consolidated balance sheets but separate from Whitestone's equity. On the consolidated statements of operations, subsidiaries are reported at the consolidated amount, including both the amount attributable to Whitestone and noncontrolling interests. The consolidated statement of changes in equity is included for quarterly financial statements, including beginning balances, activity for the period and ending balances for shareholders' equity, noncontrolling interests and total equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In April 2015, the FASB issued guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. In August 2015, the FASB issued guidance to clarify that debt issuance costs related to line-of-credit agreements may still be presented as an asset and subsequently amortized ratably over the term of such arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit. This guidance was effective for reporting periods beginning on or after December 15, 2015 and is to be applied retrospectively. We have adopted this guidance for all periods presented. In February 2016, the FASB issued guidance requiring lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting will remain largely unchanged. The guidance will also require new qualitative and quantitative disclosures to help financial statement users better understand the timing, amount and uncertainty of cash flows arising from leases. This guidance will be effective for reporting periods beginning on or after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of this guidance and its impact on our consolidated financial statements. In March 2016, the FASB issued guidance simplifying the accounting for share-based payment transactions, including the income tax consequences, balance sheet classification of awards and the classification on the statement of cash flows. This guidance will be effective for reporting periods beginning on or after December 15, 2016, and interim periods within those fiscal years. We are currently evaluating the impact of this guidance and its impact on our consolidated financial statements. |
Marketable Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-Sale Securities | All of our marketable securities were classified as available-for-sale securities as of September 30, 2016 and December 31, 2015. Available-for-sale securities consisted of the following (in thousands):
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Accrued Rents and Accounts Receivable, Net (Tables) |
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Schedule of Accrued Rent and Accounts Receivable, Net | Accrued rents and accounts receivable, net consists of amounts accrued, billed and due from tenants, allowance for doubtful accounts and other receivables as follows (in thousands):
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Unamortized Leasing Commissions and Loan Costs (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unamortized Leasing Comissions and Loan Costs | Costs which have been deferred consist of the following (in thousands):
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Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consisted of the following as of the dates indicated (in thousands):
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Schedule of Maturities of Debt | Scheduled maturities of our outstanding debt as of September 30, 2016 were as follows (in thousands):
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Derivatives and Hedging Activities (Tables) |
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Schedule of activity and fair value of interest rate swaps | The fair value of our interest rate swaps is as follows (in thousands):
A summary of our interest rate swap activity is as follows (in thousands):
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Earnings (Loss) Per Share (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share |
|
Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Distributions | The following table summarizes the cash distributions paid or payable to holders of common shares and to holders of noncontrolling OP units during each quarter during 2015 and the nine months ended September 30, 2016 (in thousands, except per share/unit data):
|
Incentive Share Plan (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Incentive Plan Activity | A summary of the share-based incentive plan activity as of and for the nine months ended September 30, 2016 is as follows:
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Schedule of Nonvested and Vested Shares Activity | A summary of our non-vested and vested shares activity for the nine months ended September 30, 2016 and years ended December 31, 2015, 2014 and 2013 is presented below:
|
Real Estate (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating results for properties classified as discontinued operations | The operating results for properties classified as discontinued operations consists of the following (in thousands):
|
Interim Financial Statements (Details) |
1 Months Ended | ||
---|---|---|---|
Jul. 31, 2004
shares
|
Sep. 30, 2016
CommercialProperties
|
Dec. 31, 2015
CommercialProperties
|
|
Real Estate Properties [Line Items] | |||
Reorganization and conversion, number of common shares (in shares) | shares | 1.42857 | ||
Wholly Owned Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | CommercialProperties | 71 | 70 |
Summary of Significant Accounting Policies (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accounting Policies [Abstract] | ||||
Conversion basis for common shares to OP units | 1 | 1 | ||
Debt Instrument [Line Items] | ||||
Interest expense capitalized | $ 103,000 | $ 25,000 | $ 235,000 | $ 83,000 |
Real estate tax capitalized | 16,000 | 16,000 | 48,000 | 53,000 |
Share-based compensation | 3,042,000 | $ 1,859,000 | 6,886,000 | $ 5,202,000 |
Anthem Marketplace Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 15,100,000 | $ 15,100,000 | ||
Stated interest rate | 4.99% | 4.99% |
Marketable Securities (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | $ 654,000 | $ 654,000 | $ 654,000 | ||
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | ||
Losses in Accumulated Other Comprehensive Income (Loss) | (198,000) | (198,000) | (219,000) | ||
Estimated Fair Value | 456,000 | 456,000 | 435,000 | ||
Proceeds from sales of marketable securities | 0 | $ 0 | 0 | $ 496,000 | |
Gain on sale of marketable securities | 44,000 | 0 | 44,000 | ||
Net unrealized holding loss on available-for-sale securities | (198,000) | $ (240,000) | |||
Real Estate Common Stock [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 654,000 | 654,000 | 654,000 | ||
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | ||
Losses in Accumulated Other Comprehensive Income (Loss) | (198,000) | (198,000) | (219,000) | ||
Estimated Fair Value | $ 456,000 | $ 456,000 | $ 435,000 |
Accrued Rents and Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Receivables [Abstract] | ||
Tenant receivables | $ 12,648 | $ 10,494 |
Accrued rents and other recoveries | 12,189 | 11,619 |
Allowance for doubtful accounts | (7,867) | (6,647) |
Total | $ 16,970 | $ 15,466 |
Unamortized Leasing Commissions and Loan Costs (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Lease commissions | $ 8,669 | $ 7,226 |
Deferred financing cost | 4,071 | 4,070 |
Total cost | 12,740 | 11,296 |
Less: lease commissions accumulated amortization | (3,528) | (2,960) |
Less: deferred financing cost accumulated amortization | (872) | (158) |
Total cost, net of accumulated amortization | $ 8,340 | $ 8,178 |
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 07, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Feb. 03, 2017 |
Aug. 08, 2012 |
|
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 551,235 | $ 499,747 | |||||
Less deferred financing costs, net of accumulated amortization | (1,564) | (1,792) | |||||
Total notes payable | 549,671 | 497,955 | |||||
Fixed rate notes | $10.5 million, LIBOR plus 2.00% Note, due September 24, 2018 | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | 10,040 | 10,220 | |||||
Face amount of debt | $ 10,500 | 10,500 | |||||
Basis spread on variable rate | 2.00% | 2.00% | |||||
Fixed rate notes | $50.0 million, 0.84% plus 1.35% to 1.90% Note, due October 30, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 50,000 | 50,000 | |||||
Face amount of debt | $ 50,000 | $ 50,000 | |||||
Imputed interest rate | 0.84% | 0.84% | |||||
Fixed rate notes | $50.0 million, 0.84% plus 1.35% to 1.90% Note, due October 30, 2020 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.35% | 1.35% | |||||
Fixed rate notes | $50.0 million, 0.84% plus 1.35% to 1.90% Note, due October 30, 2020 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.90% | 1.90% | |||||
Fixed rate notes | $50.0 million, 1.50% plus 1.35% to 1.90% Note, due January 29, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | 50,000 | $ 50,000 | |||||
Face amount of debt | $ 50,000 | $ 50,000 | |||||
Imputed interest rate | 1.50% | 1.50% | |||||
Fixed rate notes | $50.0 million, 1.50% plus 1.35% to 1.90% Note, due January 29, 2021 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.35% | 1.35% | |||||
Fixed rate notes | $50.0 million, 1.50% plus 1.35% to 1.90% Note, due January 29, 2021 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.90% | 1.90% | |||||
Fixed rate notes | $100.0 million, 1.73% plus 1.65% to 2.25% Note, due October 30, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | 100,000 | $ 100,000 | |||||
Face amount of debt | $ 100,000 | $ 100,000 | |||||
Imputed interest rate | 1.73% | 1.73% | |||||
Fixed rate notes | $100.0 million, 1.73% plus 1.65% to 2.25% Note, due October 30, 2022 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.65% | 1.65% | |||||
Fixed rate notes | $100.0 million, 1.73% plus 1.65% to 2.25% Note, due October 30, 2022 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% | 2.25% | |||||
Fixed rate notes | $37.0 million 3.76% Note, due December 1, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 34,414 | $ 35,146 | |||||
Stated interest rate | 3.76% | 3.76% | |||||
Face amount of debt | $ 37,000 | $ 37,000 | |||||
Fixed rate notes | $6.5 million 3.80% Note, due January 1, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 6,063 | $ 6,190 | |||||
Stated interest rate | 3.80% | 3.80% | |||||
Face amount of debt | $ 6,500 | $ 6,500 | |||||
Fixed rate notes | $19.0 million 4.15% Note, due December 1, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 19,000 | $ 19,000 | |||||
Stated interest rate | 4.15% | 4.15% | |||||
Face amount of debt | $ 19,000 | $ 19,000 | |||||
Fixed rate notes | $20.2 million 4.28% Note, due June 6, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 19,794 | $ 20,040 | |||||
Stated interest rate | 4.28% | 4.28% | |||||
Face amount of debt | $ 20,200 | $ 20,200 | |||||
Fixed rate notes | $14.0 million 4.34% Note, due September 11, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 14,000 | $ 14,000 | |||||
Stated interest rate | 4.34% | 4.34% | |||||
Face amount of debt | $ 14,000 | $ 14,000 | |||||
Fixed rate notes | $14.3 million 4.34% Note, due September 11, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 14,300 | $ 14,300 | |||||
Stated interest rate | 4.34% | 4.34% | |||||
Face amount of debt | $ 14,300 | $ 14,300 | |||||
Fixed rate notes | $16.5 million 4.97% Note, due September 26, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 16,357 | $ 16,450 | |||||
Stated interest rate | 4.97% | 4.97% | |||||
Face amount of debt | $ 16,500 | $ 16,500 | |||||
Fixed rate notes | $15.1 million 4.99% Note, due January 6, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 15,060 | $ 15,060 | |||||
Stated interest rate | 4.99% | 4.99% | |||||
Face amount of debt | $ 15,100 | $ 15,100 | |||||
Fixed rate notes | $9.2 million, Prime Rate less 2.00% Note, due December 29, 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount | $ 1,300 | ||||||
Imputed interest rate | 4.13% | ||||||
Fixed rate notes | $9.2 million, Prime Rate less 2.00% Note, due December 29, 2017 | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | 7,873 | 7,886 | |||||
Face amount of debt | $ 9,200 | 9,200 | |||||
Basis spread on variable rate | 2.00% | 2.00% | |||||
Fixed rate notes | $2.6 million 5.46% Note, due October 1, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 2,522 | $ 2,550 | |||||
Stated interest rate | 5.46% | 5.46% | |||||
Face amount of debt | $ 2,600 | $ 2,600 | |||||
Fixed rate notes | $11.1 million 5.87% Note, due August 6, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 0 | $ 11,305 | |||||
Stated interest rate | 5.87% | 5.87% | |||||
Face amount of debt | $ 11,100 | $ 11,100 | |||||
Fixed rate notes | $1.1 million 2.97% Note, due November 28, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 212 | $ 0 | |||||
Stated interest rate | 2.97% | 2.97% | |||||
Face amount of debt | $ 1,100 | $ 1,100 | |||||
Floating rate notes | Unsecured line of credit, LIBOR plus 1.40% to 1.95%, due October 30, 2019 | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Total notes payable principal | $ 191,600 | $ 127,600 | |||||
Floating rate notes | Unsecured line of credit, LIBOR plus 1.40% to 1.95%, due October 30, 2019 | Minimum | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.40% | 1.40% | |||||
Floating rate notes | Unsecured line of credit, LIBOR plus 1.40% to 1.95%, due October 30, 2019 | Maximum | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.95% | 1.95% | |||||
Interest rate swap | $10.5 million, LIBOR plus 2.00% Note, due September 24, 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.55% | ||||||
Interest rate swap | $50.0 million, 0.84% plus 1.35% to 1.90% Note, due October 30, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.84% | ||||||
Interest rate swap | $50.0 million, 0.84% plus 1.35% to 1.90% Note, due October 30, 2020 | Scenario, Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.75% | ||||||
Interest rate swap | $50.0 million, 1.50% plus 1.35% to 1.90% Note, due January 29, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.50% | ||||||
Interest rate swap | $100.0 million, 1.73% plus 1.65% to 2.25% Note, due October 30, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.73% | ||||||
Interest rate swap | $9.2 million, Prime Rate less 2.00% Note, due December 29, 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 5.72% | ||||||
Term loan | Minimum | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.35% | ||||||
Term loan | Maximum | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% |
Debt (Narrative) (Details) |
Nov. 07, 2014
USD ($)
|
Sep. 30, 2016
USD ($)
CollateralizedProperties
|
---|---|---|
Debt Instrument [Line Items] | ||
Secured debt | $ 159,400,000 | |
Number of collateralized properties (in collateralized properties) | CollateralizedProperties | 19 | |
Carrying value of collateralized properties | $ 191,200,000 | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
Credit facility, expanded maximum borrowing capacity | 700,000,000 | |
Line of credit outstanding | 391,600,000 | |
Credit facility, remaining borrowing capacity | $ 108,400,000 | |
Revolving credit facility | LIBOR Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Revolving credit facility | LIBOR Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.40% | |
Revolving credit facility | LIBOR Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.95% | |
Term loan | LIBOR Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.35% | |
Term loan | LIBOR Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Term loan | Term Loan 1 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt | $ 50,000,000 | |
Term loan | Term Loan 2 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt | 50,000,000 | |
Term loan | Term Loan 3 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt | $ 100,000,000 |
Debt (Schedule of Maturities of Debt) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Disclosure [Abstract] | ||
2016 | $ 765 | |
2017 | 10,213 | |
2018 | 12,136 | |
2019 | 199,649 | |
2020 | 82,827 | |
Thereafter | 245,645 | |
Total | $ 551,235 | $ 499,747 |
Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Nov. 19, 2015 |
|
Term Loan 1 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | $ 14,000 | |||||
U.S. Bank National Association [Member] | Term Loan 3 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 35,000 | |||||
U.S. Bank National Association [Member] | Term Loan 1 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 6,500 | |||||
U.S. Bank National Association [Member] | Term Loan 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 6,500 | |||||
Wells Fargo Bank, National Association [Member] | Term Loan 1 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 14,000 | |||||
Wells Fargo Bank, National Association [Member] | Term Loan 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 14,000 | |||||
Bank of American, N.A. [Member] | Term Loan 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 14,000 | |||||
SunTrust Bank [Member] | Term Loan 3 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 15,000 | |||||
SunTrust Bank [Member] | Term Loan 1 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 5,000 | |||||
SunTrust Bank [Member] | Term Loan 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 5,000 | |||||
Regions Bank [Member] | Term Loan 1 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 3,800 | |||||
Regions Bank [Member] | Term Loan 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest Rate Swap Assigned to Counterparty | 3,800 | |||||
Interest Rate Swaps [Member] | Interest Expense [Member] | ||||||
Derivative [Line Items] | ||||||
Amount Recognized as Comprehensive Income (Loss) | $ 1,529 | $ (184) | $ (6,962) | $ (460) | ||
Amount of Gain (Loss) Recognized in Earnings | (602) | $ (207) | (1,810) | $ (617) | ||
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loan 3 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Fixed Interest Rate | 1.725% | |||||
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loan 1 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Fixed Interest Rate | 1.75% | |||||
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loan 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Fixed Interest Rate | 1.50% | |||||
Accounts Payable and Accrued Expenses [Member] | Interest Rate Swaps [Member] | ||||||
Derivative [Line Items] | ||||||
Estimated Fair Value | $ 7,317 | $ 617 | $ 7,317 |
Earnings (Loss) Per Share (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2013 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Distributions to holders of certain restricted common shares charged against earnings | $ 3,042,000 | $ 1,859,000 | $ 6,886,000 | $ 5,202,000 | |
Numerator: | |||||
Income from continuing operations | 964,000 | 1,551,000 | 7,561,000 | 4,773,000 | |
Less: Net income attributable to noncontrolling interests | (15,000) | (25,000) | (131,000) | (78,000) | |
Distributions paid on unvested restricted shares | (146,000) | (130,000) | (498,000) | (400,000) | |
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares | 803,000 | 1,396,000 | 6,932,000 | 4,295,000 | |
Income from discontinued operations | 0 | 44,000 | 0 | 3,000 | |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | $ 0 | |
Income from discontinued operations attributable to Whitestone REIT | 0 | 44,000 | 0 | 3,000 | |
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares | $ 803,000 | $ 1,440,000 | $ 6,932,000 | $ 4,298,000 | |
Denominator: | |||||
Weighted average number of common shares - basic (in shares) | 28,195,000 | 26,476,000 | 27,210,000 | 23,988,000 | 27,210,000 |
Effect of dilutive securities: | |||||
Unvested restricted shares (in shares) | 829,000 | 606,000 | 803,000 | 595,000 | |
Weighted average number of common shares - dilutive (in shares) | 29,024,000 | 27,082,000 | 28,013,000 | 24,583,000 | |
Basic: | |||||
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares (in dollars per share) | $ 0.03 | $ 0.05 | $ 0.25 | $ 0.18 | |
Income from discontinued operations attributable to Whitestone REIT (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | |
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares (in dollars per share) | 0.03 | 0.05 | 0.25 | 0.18 | |
Diluted: | |||||
Income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares (in dollars per share) | 0.03 | 0.05 | 0.25 | 0.17 | |
Income from discontinued operations attributable to Whitestone REIT (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | |
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares (in dollars per share) | $ 0.03 | $ 0.05 | $ 0.25 | $ 0.17 | |
OP Units [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
OP units excluded from diluted earnings per share because their effect would be anti-dilutive | 487,090 | 435,440 | 487,510 | 406,277 | |
Restricted Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Distributions to holders of certain restricted common shares | $ 158,000 | $ 139,000 | $ 510,000 | $ 427,000 | |
Distributions to holders of certain restricted common shares charged against earnings | $ 12,000 | $ 9,000 | $ 12,000 | $ 27,000 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ 80 | $ 100 | $ 247 | $ 274 |
Credits to tax expense due to timing of recognition of interest, real estate taxes, depreciation, and rental revenue | $ 49 | |||
Texas [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Applicable tax rate used to determine state margin tax | 0.75% | |||
Standard deduction rate used to determine state margin tax | 30.00% | |||
Margin tax provision recognized | $ 75 | $ 104 | $ 237 | $ 292 |
Davenport TRS [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ 45 |
Equity (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 26, 2015
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Jun. 30, 2016
USD ($)
$ / shares
|
Mar. 31, 2016
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Sep. 30, 2015
USD ($)
$ / shares
shares
|
Jun. 30, 2015
USD ($)
$ / shares
|
Mar. 31, 2015
USD ($)
$ / shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Sep. 30, 2015
USD ($)
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Jun. 04, 2015
USD ($)
agreement
|
|
Class of Stock [Line Items] | ||||||||||||
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||
Common shares, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred shares, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||
Preferred shares, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common shares, issued (in shares) | 3,750,000 | 29,218,531 | 26,991,493 | 29,218,531 | 26,991,493 | |||||||
Share price (in dollars per share) | $ / shares | $ 13.3386 | |||||||||||
Proceeds from issuance of common shares, net of offering costs | $ | $ 49,700 | $ 26,686 | $ 49,717 | |||||||||
Equity distribution agreements, authorized amount | $ | $ 50,000 | |||||||||||
Number of equity distribution agreements | agreement | 6 | |||||||||||
Ownership interest in operating partnership | 96.30% | |||||||||||
Conversion basis for common shares to OP units | 1 | 1 | ||||||||||
Weighted-average share ownership in operating partnership | 98.30% | 98.40% | 98.30% | 98.40% | ||||||||
Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred shares, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||||||||
Preferred shares, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||||
OP Units [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
OP units outstanding (in shares) | 30,200,345 | 27,367,704 | 30,200,345 | 27,367,704 | ||||||||
OP units owned (in shares) | 29,097,709 | 26,870,671 | 29,097,709 | 26,870,671 | ||||||||
Conversion of stock, shares converted (in shares) | 2,434 | 1,693 | 15,450 | 10,277 | ||||||||
2015 Equity Distribution Agreement [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common shares, net of offering costs (in shares) | 1,083,926 | 1,819,681 | ||||||||||
Proceeds from issuance of common shares, net of offering costs | $ | $ 16,100 | $ 26,700 | ||||||||||
Payments for compensation to sales agents | $ | 200 | 400 | ||||||||||
Cash Distribution [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Cash distribution paid | $ | $ 8,247 | $ 7,924 | $ 7,850 | $ 7,809 | $ 7,786 | $ 6,712 | $ 6,639 | $ 24,021 | $ 28,946 | |||
Cash Distribution [Member] | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Cash distribution paid (in dollars per share) | $ / shares | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.8550 | $ 1.1400 | |||
Cash distribution paid | $ | $ 8,109 | $ 7,786 | $ 7,711 | $ 7,666 | $ 7,664 | $ 6,601 | $ 6,526 | $ 23,606 | $ 28,457 | |||
Cash Distribution [Member] | OP Units [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Cash distribution paid (in dollars per share) | $ / shares | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.2850 | $ 0.8550 | $ 1.1400 | |||
Cash distribution paid | $ | $ 138 | $ 138 | $ 139 | $ 143 | $ 122 | $ 111 | $ 113 | $ 415 | $ 489 |
Incentive Share Plan (Narrative) (Details) |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
shares
|
Jun. 30, 2015
shares
|
Apr. 02, 2014
employee
shares
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Dec. 22, 2010 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | $ 3,042,000 | $ 1,859,000 | $ 6,886,000 | $ 5,202,000 | ||||
Minimum | Time-Based Vesting [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 1 year | |||||||
Maximum | Time-Based Vesting [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 2 years | |||||||
Restricted Common Shares and Restricted Share Units [Member] | Time and Performance-Based Vesting [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of employees granted an award | employee | 51 | |||||||
Aggregate shares granted (in shares) | shares | 633,704 | |||||||
Restricted Common Shares and Restricted Share Units [Member] | Time-Based Vesting [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate shares granted (in shares) | shares | 320,000 | 143,000 | ||||||
Restricted Common Shares and Restricted Share Units [Member] | Performance Vesting [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate shares granted (in shares) | shares | 2,049,116 | |||||||
Non-Cash Share Based Compensation in 2014 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost | 9,800,000 | 9,800,000 | ||||||
Non-Cash Share Based Compensation Subsequent to 2014 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost | $ 10,300,000 | $ 10,300,000 | ||||||
Unrecognized compensation cost, period for recognition | 20 months | |||||||
2008 Long-Term Equity Incentive Ownership Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of maximum number of shares issued under plan to aggregate shares | 12.50% | |||||||
2008 Long-Term Equity Incentive Ownership Plan [Member] | Restricted Common Shares and Restricted Share Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 83.00% | 83.00% | ||||||
2008 Long-Term Equity Incentive Ownership Plan [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost | $ 6,800,000 | $ 6,800,000 | ||||||
Award vesting period | 30 months | |||||||
2008 Long-Term Equity Incentive Ownership Plan [Member] | Non-Vested Time Based Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost | $ 6,400,000 | $ 6,400,000 | ||||||
Unrecognized compensation cost, period for recognition | 15 months |
Incentive Share Plan (Schedule of Share-Based Incentive Plan Activity) (Details) - 2008 Long-Term Equity Incentive Ownership Plan [Member] - $ / shares |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Shares, Non-vested (in shares) | 2,288,260 | |||
Weighted-Average Grant Date Fair Value, Non-vested (in dollars per share) | $ 14.34 | |||
Shares, Granted (in shares) | 535,150 | 327,122 | 2,058,930 | 328,005 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 14.86 | $ 13.49 | $ 14.40 | $ 15.43 |
Shares, Vested (in shares) | (547,403) | (348,786) | (133,774) | (15,270) |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $ 14.41 | |||
Shares, Forfeited (in shares) | (50,552) | |||
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $ 13.68 | |||
Shares, Non-vested (in shares) | 2,225,455 | 2,288,260 | ||
Weighted-Average Grant Date Fair Value, Non-vested (in dollars per share) | $ 14.46 | $ 14.34 | ||
Shares, Available for grant (in shares) | 822,077 |
Incentive Share Plan (Schedule of Nonvested and Vested Shares Activity) (Details) - 2008 Long-Term Equity Incentive Ownership Plan [Member] - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, Granted, Non-Vested Shares Isused (in shares) | 535,150 | 327,122 | 2,058,930 | 328,005 |
Shares Granted, Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 14.86 | $ 13.49 | $ 14.40 | $ 15.43 |
Shares, Vested (in shares) | (547,403) | (348,786) | (133,774) | (15,270) |
Shares Vested, Total Vest-Date Fair Value | $ 7,890 | $ 4,969 | $ 1,721 | $ 224 |
Grants to Trustees (Details) |
Dec. 21, 2015
trustee
$ / shares
shares
|
---|---|
Individual Trustee Grant Agreements 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of independent trustees (in trustees) | trustee | 4 |
Number of trustee emeritus (in trustees) | trustee | 1 |
Individual Trustee Grant Agreements 1 [Member] | Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock granted to each trustee (in shares) | shares | 7,500 |
Restricted stock granted to trustees, vested in period (in shares) | shares | 1,500 |
Restricted stock granted to trustees, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 12.10 |
Individual Trustee Grant Agreements 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of independent trustees (in trustees) | trustee | 1 |
Individual Trustee Grant Agreements 2 [Member] | Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock granted to each trustee (in shares) | shares | 992 |
Restricted stock granted to trustees, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 12.10 |
Real Estate (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
ft²
shares
|
Mar. 03, 2016
USD ($)
|
Feb. 17, 2016
USD ($)
a
|
Aug. 28, 2015
USD ($)
ft²
|
Aug. 26, 2015
USD ($)
ft²
a
parcel
shares
|
Jul. 02, 2015
USD ($)
ft²
|
May 27, 2015
USD ($)
ft²
|
Mar. 31, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
ft²
shares
|
Sep. 30, 2015
USD ($)
ft²
|
Sep. 30, 2016
USD ($)
ft²
shares
|
Sep. 30, 2015
USD ($)
ft²
|
Dec. 31, 2014
USD ($)
property
|
|
Real Estate [Line Items] | |||||||||||||
Payments to acquire property | $ 60,616 | $ 147,950 | |||||||||||
Conversion basis for common shares to OP units | shares | 1 | 1 | 1 | ||||||||||
Gain on sale of properties | $ 0 | $ 0 | $ 2,890 | 0 | |||||||||
Loss (gain) on sale or disposal of assets and properties | 2,900 | (248) | |||||||||||
Schedule of operating results for properties classified as discontinued operations | |||||||||||||
Property revenues | 0 | 43 | 0 | 43 | |||||||||
Property expenses | 0 | 0 | 0 | 41 | |||||||||
Interest expense | 0 | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | 0 | |||||||||
Provision for income taxes | 0 | 0 | 0 | 0 | |||||||||
Gain on sale or disposal of assets | 0 | (1) | 0 | (1) | |||||||||
Income from discontinued operations | $ 0 | $ 44 | $ 0 | $ 3 | |||||||||
La Mirada and Seville [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Consideration transfered | $ 60,700 | ||||||||||||
Equity interest (in shares) | shares | 621,053 | ||||||||||||
Conversion basis for common shares to OP units | shares | 1 | 1 | 1 | ||||||||||
La Mirada [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Gross leasable area (in square feet) | ft² | 147,209 | 147,209 | 147,209 | ||||||||||
Property percentage occupied | 90.00% | 90.00% | 90.00% | ||||||||||
Seville [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Gross leasable area (in square feet) | ft² | 90,042 | 90,042 | 90,042 | ||||||||||
Property percentage occupied | 88.00% | 88.00% | 88.00% | ||||||||||
Gilbert Tuscany Village [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Payments to acquire property | $ 1,700 | ||||||||||||
Gross leasable area (in square feet) | ft² | 14,603 | ||||||||||||
Keller Place [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Equity interest (in shares) | shares | 120,000 | ||||||||||||
Payments to acquire property | $ 12,000 | ||||||||||||
Gross leasable area (in square feet) | ft² | 93,541 | ||||||||||||
Property percentage occupied | 92.00% | ||||||||||||
Number of undeveloped parcels | parcel | 2 | ||||||||||||
Area of land (in acres) | a | 3.12 | ||||||||||||
Conversion basis for common shares to OP units | shares | 1 | 1 | 1 | ||||||||||
Quinlan Crossing [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Payments to acquire property | $ 37,500 | ||||||||||||
Gross leasable area (in square feet) | ft² | 109,892 | ||||||||||||
Property percentage occupied | 95.00% | ||||||||||||
Parkside Village North [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Payments to acquire property | $ 12,500 | ||||||||||||
Gross leasable area (in square feet) | ft² | 27,045 | ||||||||||||
Property percentage occupied | 100.00% | ||||||||||||
Parkside Village South [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Payments to acquire property | $ 32,500 | ||||||||||||
Gross leasable area (in square feet) | ft² | 90,101 | ||||||||||||
Property percentage occupied | 100.00% | ||||||||||||
Davenport Village [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Payments to acquire property | $ 45,500 | ||||||||||||
Gross leasable area (in square feet) | ft² | 128,934 | ||||||||||||
Property percentage occupied | 85.00% | ||||||||||||
City View Village [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Payments to acquire property | $ 6,300 | ||||||||||||
Gross leasable area (in square feet) | ft² | 17,870 | 17,870 | |||||||||||
Property percentage occupied | 100.00% | 100.00% | |||||||||||
Brookhill [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Proceeds from the sale of real estate | $ 3,100 | ||||||||||||
Gain on sale of properties | $ 1,900 | ||||||||||||
Pinnacle Phase II [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Area of land (in acres) | a | 4.5 | ||||||||||||
Proceeds from the sale of real estate | $ 1,100 | ||||||||||||
Area of land sold | a | 0.5 | ||||||||||||
Gain on sale of properties | $ 1,000 | ||||||||||||
Zeta, Royal Crest and Featherwood [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Proceeds from the sale of real estate | $ 10,300 | ||||||||||||
Number of real estate properties | property | 3 | ||||||||||||
Seller provided financing | $ 2,500 | ||||||||||||
Loss (gain) on sale or disposal of assets and properties | 4,400 | ||||||||||||
Gain on sale of properties | 1,900 | ||||||||||||
Deferred gain on sale of property | $ 2,500 |
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