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Whitestone REIT expects $52M in offering proceeds

HOUSTON (AP) -- Whitestone REIT anticipates about $52 million in net proceeds from a public offering of 4 million shares of its common stock.

The proceeds are after taking out the underwriting discount and estimated offering expenses and does not account for if the underwriters fully exercise their overallotment option.

The Houston-based real estate investment trust said Thursday that it is giving the underwriters a 30-day option to buy up to an additional 600,000 shares to cover any excess demand.

Whitestone said it will give the offering's net proceeds to its operating partnership in exchange for units of limited partnership interest in the operating partnership. The operating partnership plans to use the proceeds for general corporate purposes, which may include property acquisitions, debt repayment, capital expenditures, the expansion, redevelopment or re-tenanting of properties in Whitestone's portfolio, working capital and other general purposes.

The offering is expected to close on Tuesday.

A public stock offering increases a company's outstanding shares, which dilutes the value of existing shares held by stockholders.

Whitestone REIT's stock fell 83 cents, or 5.8 percent, to $13.43 in morning trading. The stock has traded between #12.07 and $17.85 over the past year.