Whitestone REIT (NYSE:WSR) shares are trading higher on Tuesday after the company disclosed an all-cash acquisition proposal worth $15.20 per share from MCB Real Estate.
Details
The offer values Whitestone at a 21% premium to its latest close and a 25% premium to its 30-day VWAP as of November 3, 2025.
The proposal, supported by fully committed equity and a highly confident debt financing letter from Wells Fargo, implies a 14x NTM FFO multiple, the highest among recent strip center M&A deals under $2 billion.
The firm warned that without constructive engagement or a public strategic review process, it plans to vote against the entire Whitestone Board at the next Annual Meeting and urges other shareholders to follow suit.
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Back Story
In October 2024, the Whitestone Board rejected MCB's $15 per-share offer, citing "strong progress" on strategic goals, including Same Store NOI and Core FFO per-share growth.
However, MCB Real Estate notes that Whitestone has underperformed on multiple fronts, with FY2025 Same Store NOI growth guidance of 4.0% (midpoint) is below the 5.1% achieved in FY2024 and trails the peer average of 4.2%.
Also, since rejecting MCB's offer on October 30, 2024, Whitestone's total shareholder return has fallen roughly 6.6%.
MCB notes Whitestone's limited scale, high G&A costs, modest growth outlook, and weaker asset quality continue to hinder valuation improvement, and sale remains the best path to maximize shareholder value.
Price Action: WSR shares are up 11.15% at the last check on Tuesday.
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