Whitestone REIT: Purchase Highlights Opportunity In Ares Management

Whitestone REIT is being acquired by Ares Management funds for $19/share, capping a 45% YTD rally and months of takeover speculation. WSR's portfolio of open-air, small-shop retail centers with below-market leases and improved balance sheets drove private equity interest and a robust sales process. With shares now near the deal price and little risk of a higher bid, WSR offers only bond-like returns; I rate it a 'hold' and suggest profit-taking.