NEW ROCHELLE, N.Y. - Erez Asset Management, LLC, a shareholder of Whitestone REIT (NYSE: NYSE:WSR), has publicly refuted claims from Whitestone of alleged collusion to acquire the company and reiterated its call for change in the REIT's board composition.
Erez, which has nominated two candidates for election at the 2024 Annual Meeting of Shareholders, emphasized the need for new board members to address what it describes as longstanding issues affecting Whitestone's performance and valuation.
Bruce Schanzer, Chairman of Erez, responded to Whitestone's accusations by stating that the presentation cited by Whitestone was outdated and no longer reflective of Erez's strategy. He clarified that Erez is not pursuing an acquisition of Whitestone, nor is it seeking to raise capital for such a purpose.
Schanzer criticized Whitestone's current trustees for lacking industry experience and for governance practices that he claims have led to the REIT's trading at a significant discount to its net asset value (NAV) compared to peers.
The press release from Erez highlights several governance concerns, including a lack of real estate capital markets experience among Whitestone's trustees, a 5% poison pill with a slow hand feature, and the appointment of trustees with undisclosed past service provider relationships to the company. Erez alleges these factors have contributed to the REIT's underperformance.
Erez encourages Whitestone shareholders to vote for its nominees, Catherine Clark and Bruce Schanzer, and to withhold votes from current board members David Taylor and Nandita Berry, using the BLUE proxy card.
The investment firm, founded by Schanzer in 2022, focuses on undervalued small market cap REITs and seeks to work collaboratively with management teams and boards to improve performance and share price.
The information in this article is based on a press release statement from Erez Asset Management, LLC.
InvestingPro Insights
As the tussle for board seats at Whitestone REIT continues, investors are closely monitoring the company's financial health and future profitability. According to InvestingPro data, Whitestone REIT currently holds a market capitalization of $594.4 million, with a P/E ratio of 23.57, indicating that investors are willing to pay $23.57 for every dollar of earnings, which is a standard metric used to gauge if a stock is over or undervalued compared to its earnings.
When it comes to dividends, an area of particular interest for REIT investors, Whitestone has demonstrated a strong track record. The company has maintained dividend payments for 15 consecutive years, which is a testament to its commitment to shareholder returns.
The current dividend yield stands at a compelling 4.27%, which is particularly attractive to those seeking steady income streams. Moreover, the company's liquid assets exceed its short-term obligations, suggesting financial stability and the ability to cover immediate liabilities.
InvestingPro Tips also point out that analysts are optimistic about the company's prospects, predicting Whitestone will be profitable this year. This is corroborated by the company being profitable over the last twelve months, which could reassure shareholders about the firm's ability to navigate market conditions and generate positive earnings.
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