Wunderlich Securities Increases Estimates On Whitestone REIT On Accretive Acquisition

In a report published Thursday, Wunderlich Securities analyst Merrill Ross reiterated a Buy rating and $17.50 price target on Whitestone REIT (NYSE: WSR).

In the report, Wunderlich Securities noted, “Buy-rated Whitestone REIT (WSR) announced the purchase of a 90% leased Class A community shopping center in a suburb of San Antonio, TX. This acquisition is in line with the next leg of management's strategic plan, which will be less about acquiring vacancy than it is about increasing and optimizing revenues. We estimate overall occupancy in the WSR portfolio is more than 500 bps below potential (assuming retail, office/flex, and office occupancies of 94%, 92%, and 83%). Normalization would lead to a significant (+$0.15) increase in FFO Core per share relative to our FY14 estimate and more than $2 in NAV accretion. Given our belief in this ultimate outcome, we maintain our Buy rating and $17.50 price target.”

Whitestone REIT closed on Wednesday at $13.94.