HOUSTON, Oct. 3, 2007 (PRIME NEWSWIRE) -- Whitestone REIT, which owns and manages 36 commercial properties in Texas, announced today that it has entered into an interest rate swap transaction to protect $70 million in mortgage borrowings from interest rate rises.
The terms of the swap transaction fix the interest rate on the mortgages at 4.77% through October 1, 2008.
Chairman and Chief Executive Officer James Mastandrea said, "The purpose of this swap is to mitigate the risk of future upward fluctuations in interest rates on our variable rate debt. We have determined that this swap is highly effective in managing variable rate debt at minimal cost to the investors."
Whitestone REIT's strategic plan provides for profitable growth by making investments in attractive commercial properties outside of Texas in cities with exceptional demographics in order to diversify market risk; selling assets that have little or no growth potential; adding value to currently owned properties that have upside potential through capital improvements; and raising additional equity in the capital markets.
About Whitestone REIT
Whitestone REIT owns and operates retail, office and office warehouse properties, 33 of which are in the Houston area, two office buildings in Dallas, and a retail plaza in San Antonio. For more information go to http://www.whitestonereit.com
Forward-Looking Statement:
This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, and the impact of competitive services and pricing and general economic risks and uncertainties.