Whitestone REIT expands, extends credit facility

Community-centered real estate investment trust Whitestone REIT (NYSE:WSR) said on Monday that it has amended, expanded, and extended its credit facility.

"We are very pleased with the new facility, which includes a $215M increase in size, lower interest rates, extended maturities, and the addition of 3 strong new banks," said CEO Dave Holeman.

"Among the positive changes from the previous agreement was a lowering of the interest rate and an improvement in the capitalization rate used for valuation from 7% to 6.75%," said the CEO.

The $750M facility comprises of $375M revolver and $375M term loan.

The revolver, with an initial interest rate of SOFR plus 1.40%, is scheduled to mature in September 2029 with two six-month options to extend the maturity date.

The term loan, with an initial interest rate of SOFR plus 1.35%, is scheduled to mature in January 2031.

Additionally, the company entered into interest rate swaps to fix the interest rates on the $375M term loan, locking in a rate between 3.36% and 3.42% (plus 1.35%) until maturity.