MCB urges Whitestone REIT to maximize shareholder value

MCB Real Estate, a commercial real estate developer and investment management firm with a diverse nationwide portfolio and approximately $3B in AUM, issued the following statement regarding its proposal to acquire Whitestone REIT (WSR) for $15.00 per share in cash: “MCB stands ready to deliver immediate and certain value to Whitestone shareholders. Our proposal is compelling by all reasonable metrics, reflecting a 14.5% premium to Whitestone’s share price prior to our initial proposal on June 3, 2024, and a 61.8% premium to Whitestone’s unaffected share price prior to the rumored Fortress proposal on October 26, 2023. Despite an attractive proposal and our repeated attempts to engage over the last several months, the Whitestone Board has steadfastly refused to seriously consider our all-cash proposal. In its rejection, Whitestone has conveniently chosen a time period of total shareholder return that includes multiple acquisition rumors and proposals, as well as MCB acquiring 4,690,000 shares on the open market. In the time between January 18, 2022, when current Whitestone management took over, and October 25, 2023, the day prior to the rumored Fortress proposal, Whitestone delivered total shareholder returns of 0.1%. Since October 25, 2023, Whitestone has delivered total shareholder returns of 57.7%, driven by the rumored Fortress Proposal, MCB’s acquisition of shares starting on May 7, 2024, and two acquisition proposals from MCB. We have heard from other shareholders that they are supportive of a potential transaction and share our frustration with the Whitestone Board. The Board’s refusal to grant due diligence, engage in any meaningful discussions, or commence a strategic alternatives process is not consistent with its duties and indicates that the Board is entrenched. Whitestone shareholders deserve answers, and MCB encourages Whitestone to address the following questions on its earnings call this morning, so that shareholders can have all the facts regarding Whitestone’s refusal to engage or present a compelling path to maximize shareholder value as a public company.”