Creating Communities in Our PropertiesTM
A N N U A L R E P O R T
2010
EDUCATION
MEDICAL
S
E
R
V
C
E
S
I
I
I
G
N
N
D
L
A
U
S
A
C
2600 South Gessner Suite 500 Houston, TX 77063 P: 713.827.9595 F: 713.465.8847 www.whitestonereit.com
© 2011 Whitestone REIT. All rights reserved.
CCorporate Information
BOARD OF TRUSTEES
James C. Mastandrea, Chairman and Chief Executive Officer, Whitestone REIT;
Chairman, Chief Executive Officer and President, Paragon Real Estate Equity and
Investment Trust and MDC Realty Corporation; former Chairman and Chief Executive
Officer of First Union REIT (NYSE); Director, Cleveland State University Foundation
Board; Director, University Circle Board; Director, Calvin Business Alliance Board.
Daryl J. Carter, Founder, Chairman and Chief Executive Officer, Avanath
Capital Partners and Capri Capital; former Executive Managing Director and
Head of Real Estate Group, Centerline Capital Group (NYSE); former President,
American Mortgage Acceptance Corporation.
Daniel G. DeVos, Chairman and Chief Executive Officer, DP Fox Ventures;
Owner, Grand Rapids Rampage (AFL) and Orlando Magic (NBA); Director, Alticor,
Inc. (parent company of Amway Corporation); Trustee, Paragon Real Estate
Equity and Investment Trust; former Vice President, Pacific and Vice President of
Corporate Affairs, Amway Corporation; former Trustee, First Union REIT (NYSE).
Donald F. Keating, Former Chief Financial Officer, Shell Mining Company;
former Director, Billiton Metal Company, R&F Coal Company and Marrowbone
Coal Company.
Jack L. Mahaffey, Former President and Chief Executive Officer, Shell Mining
Company; Former Director, National Coal Association and the National Coal Counsel.
OFFICERS
James C. Mastandrea, Chairman and Chief Executive Officer
John J. Dee, Chief Operating Officer
David K. Holeman, Chief Financial Officer
Daniel E. Nixon, Jr., Senior Vice President, Regional Director
Valarie L. King, Senior Vice President, Regional Director
Gregory J. Belsheim, Senior Vice President, Human Resources
Bradford Johnson, Director of Acquisitions
Anne I. Gregory, Vice President, Marketing and Investor Relations
Mike Taylor, Corporate Counsel
Corporate Office:
Whitestone REIT
2600 South Gessner, Suite 500
Houston, TX 77063
Toll Free: (866) 789-7348 x2221
Direct: (713) 435.2213
E-Mail: IR@whitestonereit.com
Website: www.whitestonereit.com
Corporate Counsel:
Bass, Berry & Sims, PLC
100 Peabody Place, Suite 900
Memphis, TN 38103
(901) 543-5900
Independent Registered
Public Accounting Firm:
Pannell, Kerr & Forster of Texas, PC
Houston, TX 77057
(713) 860-1400
Annual Meeting:
May 10, 2011 10:00 A.M.
Marriott Houston Westchase
2900 Briarpark Drive, Houston, Texas 77042
Investor Relations:
Shareholders are encouraged to contact the
Company with questions or requests for information.
Copies of the Company’s Annual Report on Form
10-K as filed with the Securities and Exchange
Commission are available upon written request and
are available online at the SEC website: www.sec.gov.
Registrar & Transfer Agent:
American Stock Transfer & Trust Company
59 Maiden Lane, Plaza Level
New York, New York 10038
Account maintenance inquires
should be directed to:
AST Shareholder Services Department
(800) 937-5449 or
(718) 921-8200
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Shareholders Equity
(in thousands)
‘08
‘09
‘10
M
E
D
C
A
L
I
CASUAL DINING
Our multi-cultural community focus sets us apart from traditional commercial real estate operators. We value
diversity in our team and maintain in-house leasing, property management, marketing, construction and
maintenance departments with culturally diverse and multi-lingual associates who understand the particular
needs of our tenants and neighborhoods.
We market, lease, and manage our Centers to match tenants with the shared needs of the surrounding neighborhood. Those needs may include
specialty retail, grocery, restaurants and medical, educational and financial services.
diverse neighborhoods
MEDICAL
Diluted FFO-Core Per
Common Share and OP Unit
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
‘08
‘09
‘10
In contrast, one of our largest Centers is Windsor Plaza, a 200,000 square foot
Community Center located between two military bases in San Antonio, Texas,
where our tenants offer educational services and discounted soft goods.
Acquisition Targets
In 2010, we purchased two value-add assets in the Phoenix area in off-market
transactions well below replacement cost with the proceeds from our IPO. Our
acquisitions are primarily in the markets where we currently own properties, in
and around the Phoenix, Chicago, Dallas, San Antonio and Houston Metropolitan
areas, five of the top 15 markets in the USA in terms of population growth. We
are expanding our geographic foot print in these target markets by identifying new
acquisitions where we can add value. We seek to purchase properties at prices
below replacement cost, and then introduce our Whitestone team of experienced
property managers and leasing agents. We believe we have the experience and
ability to close quickly on properties as single purchases from distressed owners.
Competitive Advantage
Acquisitions. We believe we have the following competitive advantages in making
acquisitions of Community Centered Properties:
1. We target Community Centers with an aggregate mass of 25,000 to 200,000
square feet with small business tenants who occupy less than 3,000
square feet, while larger publicly traded shopping center REITs target
“big box” anchored centers of 200,000+ square feet with larger tenants.
2. We actively seek to use our OP units as acquisition currency, which non-public
real estate owners have difficulty doing.
3. Our balance sheet enables us to attract tenants that require tenant improvements
to their rental space, which other owners are either unwilling or unable to provide.
Operations. We believe we have a competitive operating advantage because our
culture, philosophy, and experience in working with small businesses in underserved,
culturally diverse populations, including Asian and Hispanic neighborhoods.
We attempt to manage and lease our properties to the specific needs of the
F Financial Highlights
Operations (in thousands)
Revenues
Funds From Operations
Funds From Operations-Core
Net Income
Attributable to Whitestone REIT
$
$
$
Per Share and OP Unit
Diluted FFO Per Common Share and OP Unit
Diluted FFO-Core Per Common Share and OP Unit
Dividends Paid as % of FFO
Diluted Earnings Per Share
Financial Position (in thousands)
Shareholders’ Equity
Real Estate Assets, Gross
2010
31,533
8,432
7,920
$
1,105
$
$
$
1.44
1.35
88%
0.27
2009
32,685
8,618
6,759
2008
$ 31,201
4,236
$
6,085
$
1,342
$
1,134
1.68
1.32
80%
0.40
$
$
$
0.85
1.22
205%
0.35
$
$
$
$
$
$
$
62,708
$
$ 204,954
43,590
$
$ 192,832
$ 45,891
$ 180,397
Our primary business objective is to increase
shareholder value by acquiring, owning and
operating Community Centered Properties™.
* This 2010 Annual Report contains forward looking statements. Such forward-looking
statements can generally be identified by our use of forward-looking terminology such
as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or
other similar words. Readers of this 2010 Annual Report should be aware that there
are various factors that could cause actual results to differ materially from any forward-
looking statements made in this report. Factors that could cause or contribute to such
differences include, but are not limited to, changes in general economic and business
conditions, industry trends, changes in government rules and regulations (including
changes in tax laws) and environmental rules and regulations. Accordingly, readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this 2010 Annual Report. For a reconciliation of non-GAAP
financial measures, including FFO-Core, please see the reconciliation on page R1 of this
2010 Annual Report.
CCorporate Information
BOARD OF TRUSTEES
James C. Mastandrea, Chairman and Chief Executive Officer, Whitestone REIT;
Chairman, Chief Executive Officer and President, Paragon Real Estate Equity and
Investment Trust and MDC Realty Corporation; former Chairman and Chief Executive
Officer of First Union REIT (NYSE); Director, Cleveland State University Foundation
Board; Director, University Circle Board; Director, Calvin Business Alliance Board.
Daryl J. Carter, Founder, Chairman and Chief Executive Officer, Avanath
Capital Partners and Capri Capital; former Executive Managing Director and
Head of Real Estate Group, Centerline Capital Group (NYSE); former President,
American Mortgage Acceptance Corporation.
Daniel G. DeVos, Chairman and Chief Executive Officer, DP Fox Ventures;
Owner, Grand Rapids Rampage (AFL) and Orlando Magic (NBA); Director, Alticor,
Inc. (parent company of Amway Corporation); Trustee, Paragon Real Estate
Equity and Investment Trust; former Vice President, Pacific and Vice President of
Corporate Affairs, Amway Corporation; former Trustee, First Union REIT (NYSE).
Donald F. Keating, Former Chief Financial Officer, Shell Mining Company;
former Director, Billiton Metal Company, R&F Coal Company and Marrowbone
Coal Company.
Jack L. Mahaffey, Former President and Chief Executive Officer, Shell Mining
Company; Former Director, National Coal Association and the National Coal Counsel.
OFFICERS
James C. Mastandrea, Chairman and Chief Executive Officer
John J. Dee, Chief Operating Officer
David K. Holeman, Chief Financial Officer
Daniel E. Nixon, Jr., Senior Vice President, Regional Director
Valarie L. King, Senior Vice President, Regional Director
Gregory J. Belsheim, Senior Vice President, Human Resources
Bradford Johnson, Director of Acquisitions
Anne I. Gregory, Vice President, Marketing and Investor Relations
Mike Taylor, Corporate Counsel
Corporate Office:
Whitestone REIT
2600 South Gessner, Suite 500
Houston, TX 77063
Toll Free: (866) 789-7348 x2221
Direct: (713) 435.2213
E-Mail: IR@whitestonereit.com
Website: www.whitestonereit.com
Corporate Counsel:
Bass, Berry & Sims, PLC
100 Peabody Place, Suite 900
Memphis, TN 38103
(901) 543-5900
Independent Registered
Public Accounting Firm:
Pannell, Kerr & Forster of Texas, PC
Houston, TX 77057
(713) 860-1400
Annual Meeting:
May 10, 2011 10:00 A.M.
Marriott Houston Westchase
2900 Briarpark Drive, Houston, Texas 77042
Investor Relations:
Shareholders are encouraged to contact the
Company with questions or requests for information.
Copies of the Company’s Annual Report on Form
10-K as filed with the Securities and Exchange
Commission are available upon written request and
are available online at the SEC website: www.sec.gov.
Registrar & Transfer Agent:
American Stock Transfer & Trust Company
59 Maiden Lane, Plaza Level
New York, New York 10038
Account maintenance inquires
should be directed to:
AST Shareholder Services Department
(800) 937-5449 or
(718) 921-8200
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Shareholders Equity
(in thousands)
‘08
‘09
‘10
M
E
D
C
A
L
I
CASUAL DINING
Our multi-cultural community focus sets us apart from traditional commercial real estate operators. We value
diversity in our team and maintain in-house leasing, property management, marketing, construction and
maintenance departments with culturally diverse and multi-lingual associates who understand the particular
needs of our tenants and neighborhoods.
Creating Communities in Our PropertiesTM
A N N U A L R E P O R T
2010
EDUCATION
MEDICAL
S
E
R
V
C
E
S
I
I
I
G
N
N
D
L
A
U
S
A
C
2600 South Gessner Suite 500 Houston, TX 77063 P: 713.827.9595 F: 713.465.8847 www.whitestonereit.com
© 2011 Whitestone REIT. All rights reserved.