NEW ROCHELLE, N.Y. - Institutional Shareholder Services Inc. (ISS), an independent proxy advisory firm, has recommended that shareholders of Whitestone REIT (NYSE: NYSE:WSR) vote for nominee Bruce Schanzer and withhold votes from current board members David Taylor and Nandita Berry.
Erez Asset Management, LLC, a significant shareholder of Whitestone, has nominated Schanzer and Catherine Clark for election at the upcoming Annual Meeting of Shareholders, advocating for board changes to improve the company's performance and transparency.
ISS's recommendations follow concerns regarding Whitestone's board's insular approach to board refreshment and questionable governance decisions in recent years, including the firing of a CEO for unspecified reasons and the departure of a director indicted for serious financial crimes.
The advisory firm also raised questions about the board's communication with shareholders, especially concerning a potential offer from Fortress and the company's ability to compete in the long term.
Erez Asset Management, which focuses on undervalued small market cap REITs, sees the election of its nominees as crucial to addressing Whitestone's underperformance and valuation discount. Bruce Schanzer, Chairman and Chief Investment Officer of Erez, emphasized the need for change at Whitestone, highlighting the nominees' relevant real estate and REIT experience.
The proxy battle comes at a time when Whitestone's board has faced criticism for its insular director selection process and governance practices. ISS's support for Schanzer underscores the belief that his shopping center REIT experience and history of engaging with shareholders would bring a much-needed independent perspective to the board.
Erez encourages Whitestone shareholders to use the BLUE proxy card to vote for Clark and Schanzer and withhold votes from Taylor and Berry, aiming to foster improved performance and shareholder value. The recommendations and critiques from ISS lend credibility to Erez's stance and highlight the proxy firm's influence in such corporate governance matters. This news is based on a press release statement from Erez Asset Management.
InvestingPro Insights
As shareholders of Whitestone REIT (NYSE: WSR) consider the pivotal board elections, it's essential to review the company's financial health and performance metrics. According to InvestingPro data, Whitestone REIT boasts a market capitalization of $584.28 million, indicating its size and presence in the market.
Despite a challenging environment, the company has managed to maintain a consistent dividend payout, with a noteworthy dividend yield of 4.31% as of the latest data. This commitment to returning value to shareholders is backed by a history of 15 consecutive years of dividend payments, an "InvestingPro Tip" that may reassure investors looking for stable income.
Another key "InvestingPro Tip" is that analysts predict Whitestone will be profitable this year, which aligns with the company's recent performance data showing a gross profit margin of 68.06% over the last twelve months as of Q1 2023.
This profitability is further underscored by an operating income margin of 30.81% during the same period, suggesting that the company has been effective in converting revenue into operating income.
For investors seeking a deeper analysis and more "InvestingPro Tips," there are additional insights available on InvestingPro, which could further inform their decision-making process ahead of the Annual Meeting of Shareholders. With the use of the exclusive coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a comprehensive suite of tools and analytics to navigate the complexities of REIT investments.
As the proxy battle unfolds, these financial metrics and expert insights from InvestingPro could play a crucial role in shaping the future of Whitestone REIT and the value it delivers to its shareholders.
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