EREZ ASSET MANAGEMENT RESPONDS TO FALSE ACCUSATIONS IN WHITESTONE REIT'S PRESS RELEASE
Reiterates the Need for Change at Whitestone, the Shopping Center REIT that Trades at the Biggest Discount to NAV of its Cited Peers
Notes the Irony of a Board Filled with Undisclosed Former Service Providers to Mr. Mastandrea Claiming that One Call with Mr. Mastandrea Constitutes "Collusion"
Encourages Whitestone Shareholders to Vote "FOR"
In its press release earlier today, Whitestone claims to have "discovered" that an early and outdated Erez investor presentation in which Erez discusses Whitestone constitutes "collusion" to acquire the Company. In fact, Erez explored a number of potential strategies related to Whitestone before deciding on its current approach, and Erez is not pursuing an acquisition of Whitestone or using the strategy or tactics of the outdated presentation. The presentation Whitestone touts in its press release was superseded by later presentations and no one who received the earlier presentation is an investor with Erez.
Whitestone today has presented an outdated presentation that Erez made before concluding that there was a superior approach to enhancing the value of Whitestone. The fact is that Erez has not pursued the strategy described in the materials Whitestone so disingenuously and breathlessly touts in its press release today.
Moreover, Erez is not capitalized to acquire Whitestone, is not seeking to raise capital to make an offer, nor does it have any interest in or intention of making an offer. Like any thoughtful investor, Erez spoke with stakeholders before making an investment and pursuing its campaign for board representation. Notably, Erez discontinued all contact with
It is very troubling that a group of trustees with no industry experience and a track record of poor corporate governance practices are attempting, with brazen falsehoods, to keep me off this Board. Why is Whitestone so afraid of having an experienced industry executive and investor on the Board? And why would they stoop to such low-road tactics as to mischaracterize an outdated pitch deck, undoubtedly obtained in violation of confidentiality obligations, just to paint one of their engaged shareholders in a bad light?
It is particularly ironic that a REIT that for seven years has hidden the business relationship between its Chairman,
Today's release is a desperate attempt by Whitestone to distract shareholders from the important opportunity before them to upgrade their Board and begin the process of enhancing the value of the Company and addressing the manifold issues it faces.
Of all the shopping center REITS that Whitestone considers its peers, Whitestone has for years traded at the largest discount to net asset value ("NAV"). None of its trustees have any experience with real estate capital markets or REIT operations.
The Company's
While I am disappointed at the uncivilized and inappropriate approach Whitestone has taken today, I look forward to hopefully joining the Board along with Cathy in a spirit of good will, with the harsh exchanges of this proxy contest behind us and with the best interests of Whitestone's shareholders as a paramount value."
One thing is clear after today's unprofessionalism by Whitestone's trustees: the time for change has come.
To ensure the election of
If you have any questions or require assistance in voting your BLUE universal proxy card,
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About
Erez Asset Management, LLC is an investment management firm focused on undervalued small market cap REITs. Erez was founded in 2022 by Bruce Schanzer, former CEO of Cedar Realty Trust, a shopping center REIT, after the successful monetization of Cedar. Erez seeks to acquire meaningful stakes in REITs in which it believes it can work collaboratively with the management team and the board to help catalyze improved performance and share price appreciation by pursuing operational initiatives and strategic alternatives intended to benefit all stakeholders.
Contacts
Media:
Mark Semer / Iain Hughes
(212) 257-4170
erez@gasthalter.com
Investors:
Jonathan Salzberger / Scott Winter
212-750-5833
Disclaimer
This material does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any state to any person. In addition, the discussions and opinions in this press release and the material contained herein are for general information only, and are not intended to provide investment advice. All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are "forward-looking statements," which are not guarantees of future performance or results, and the words "may," "might," "could," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology are generally intended to identify forward-looking statements. Any such forward-looking statements contained herein are based on current assumptions, estimates and expectations, but are subject to a number of known and unknown risks and significant business, economic and competitive uncertainties that may cause actual results to differ materially from expectations. Any forward-looking statements should be considered in light of those risk factors. The Participants (as defined below) caution readers not to rely on any such forward-looking statements, which speak only as of the date they are made. Certain information included in this press release is based on data obtained from sources considered to be reliable. No representation is made with respect to the accuracy or completeness of such data, and any analyses provided to assist the recipient of this press release in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any analyses should also not be viewed as factual and also should not be relied upon as an accurate prediction of future results. Any figures are unaudited estimates and subject to revision without notice. The Participants disclaim any intent or obligation to publicly update or revise any such forward-looking statements to reflect any change in expectations or future events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results may differ from those set forth in such forward-looking statements.
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The definitive proxy statement and an accompanying BLUE proxy card has been furnished to some or all of the Company's shareholders and are, along with other relevant documents, publicly available at no charge on the
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