<SEC-DOCUMENT>0001013594-24-000395.txt : 20240426
<SEC-HEADER>0001013594-24-000395.hdr.sgml : 20240426
<ACCEPTANCE-DATETIME>20240426150010
ACCESSION NUMBER:		0001013594-24-000395
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240426
DATE AS OF CHANGE:		20240426

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Whitestone REIT
		CENTRAL INDEX KEY:			0001175535
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		ORGANIZATION NAME:           	05 Real Estate & Construction
		IRS NUMBER:				760594970
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34855
		FILM NUMBER:		24882578

	BUSINESS ADDRESS:	
		STREET 1:		2600 SOUTH GESSNER
		STREET 2:		SUITE 500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77063
		BUSINESS PHONE:		713-827-9595

	MAIL ADDRESS:	
		STREET 1:		2600 SOUTH GESSNER
		STREET 2:		SUITE 500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77063

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HARTMAN COMMERCIAL PROPERTIES REIT
		DATE OF NAME CHANGE:	20020613

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Erez REIT Opportunities LP
		CENTRAL INDEX KEY:			0002014584
		ORGANIZATION NAME:           	
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		270 NORTH AVENUE
		STREET 2:		SUITE 404
		CITY:			NEW ROCHELLE
		STATE:			NY
		ZIP:			10801
		BUSINESS PHONE:		917-455-9764

	MAIL ADDRESS:	
		STREET 1:		270 NORTH AVENUE
		STREET 2:		SUITE 404
		CITY:			NEW ROCHELLE
		STATE:			NY
		ZIP:			10801
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>erezdfan14a-04262024.htm
<TEXT>
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    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">UNITED STATES</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">Washington, D.C. 20549</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">SCHEDULE 14A</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Rule 14a-101)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">SCHEDULE 14A INFORMATION</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">Proxy Statement Pursuant to Section 14(a) of</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">The Securities Exchange Act of 1934</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Filed by the Registrant [&#160; ]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Filed by a Party Other than the Registrant [X]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Check the Appropriate Box:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Preliminary Proxy Statement</div>
    <div style="text-indent: -14.4pt; margin-left: 33.6pt; line-height: 11.4pt;">[&#160; ] Confidential, for Use of the Commission Only (as permitted by<br>
      Rule 14a-6(e)(2))</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Definitive Proxy Statement</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[X] Definitive Additional Materials</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Soliciting Material under &#167; 240.14a&#8211;12</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;"><u>WHITESTONE REIT</u></div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Name of registrant as specified in its charter)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">EREZ REIT OPPORTUNITIES LP</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">EREZ ASSET MANAGEMENT, LLC</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">BRUCE SCHANZER</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;"><u>CATHERINE CLARK</u></div>
    <div style="text-align: center; line-height: 11.4pt; margin-bottom: 6pt; font-weight: bold;">(Name of person(s) filing proxy statement, if other than the registrant)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Payment of Filing Fee (Check the appropriate box):</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-indent: 20pt; line-height: 11.4pt;">[X]<font class="TRGRRTFtoHTMLTab" style="text-indent: 0px; font-size: 5.2pt;">&#160;&#160; </font>No fee required.</div>
    <div style="text-indent: 20pt; line-height: 11.4pt;">[&#160; ]<font class="TRGRRTFtoHTMLTab" style="text-indent: 0px; font-size: 5.33pt;">&#160;&#160;&#160;&#160;</font>Fee paid previously with preliminary materials.</div>
    <div style="text-indent: 20pt; line-height: 13.7pt;">[&#160; ]<font class="TRGRRTFtoHTMLTab" style="text-indent: 0px; font-size: 5.33pt;">&#160;&#160;&#160;&#160;</font>Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11</div>
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      <div class="BRPFPageBreak" style="page-break-after: always;">
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    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt;">Erez REIT Opportunities LP, together with the other participants named herein (collectively, &#8220;Erez&#8221;), on Friday, April 4, 2024, filed with the Securities and Exchange Commission
      a definitive proxy statement and an accompanying proxy card to be used to solicit votes for the election of its slate of trustee nominees at the upcoming 2024 annual meeting of shareholders of Whitestone REIT, a Maryland real estate investment trust
      (the &#8220;Issuer&#8221;).</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt; margin-bottom: 12pt;">On April 26, 2024, Erez and its affiliates issued the below letter to shareholders of the Issuer in a press release. The full text of the press release and
      letter are as follows:</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">EREZ ASSET MANAGEMENT SENDS LETTER TO WHITESTONE REIT SHAREHOLDERS COMMENTING ON THE BOARD&#8217;S LACK OF CANDOR</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-style: italic;">Whitestone&#8217;s Presentation Twists the Facts and Fails to Address the Company&#8217;s Significant Underperformance and the Board&#8217;s Misguided Capital Allocation and Manifest Governance
      Failures</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-style: italic;">Erez Encourages Whitestone Shareholders to Vote <font style="font-weight: bold;">"FOR"</font> Catherine Clark and Bruce Schanzer, Two Experienced Real Estate Executives, and to
      <font style="font-weight: bold;">"WITHHOLD"</font> from David Taylor and Nandita Berry Using the <font style="font-weight: bold;"><u>BLUE</u></font> Proxy Card</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">NEW ROCHELLE, N.Y. &#8211; April 26, 2024 &#8211; </font>Erez Asset Management, LLC (&#8220;Erez&#8221;), a shareholder of Whitestone REIT (NYSE: WSR) (&#8220;Whitestone&#8221; or the &#8220;Company&#8221;)
      which has nominated two candidates for election at Whitestone&#8217;s upcoming 2024 Annual Meeting of Shareholders, today sent a letter to Whitestone shareholders calling out the Whitestone Board of Trustees (the &#8220;Board&#8221;) for obfuscating facts and ignoring
      key criticisms.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">&#8220;It is deeply troubling that the Whitestone Board believes it can twist the truth and sidestep key arguments as it attempts to get elected as fiduciaries for shareholders,&#8221; said Bruce Schanzer,
      Chairman and Chief Investment Officer of Erez. &#8220;At a bare minimum, the Board should acknowledge that the capital markets value Whitestone at a steep discount to the value of its underlying real estate assets &#8212; indeed, the steepest discount among all
      the shopping center REITs Whitestone frequently cites as its peers &#8212; and that something new needs to be done to resolve the crisis of confidence among investors this massive valuation disconnect evidences. Simply pretending that there is no problem,
      especially by misstating facts and refusing to acknowledge the Board&#8217;s prior failings, is certainly not a way to build credibility with shareholders. In order for the market to ascribe fair value to its assets, change is clearly needed at
      Whitestone.&#8221;</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">The full text of the letter is below:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Dear Fellow Whitestone REIT Shareholders,</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">We are writing to encourage you to join us in supporting critical changes at Whitestone REIT. We recently released this 69-page presentation that outlines our rationale for believing change is
      needed at the Company. We welcome you to review it.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Whitestone&#8217;s Board has ignored most of our analysis, refusing to recognize that the Company&#8217;s small scale, lack of growth, inefficient operations, abysmal capital allocation, missed performance
      targets and stale management team are preventing it from realizing its potential. Worse still, the Board simply glosses over its own significant failures &#8211; such as its refusal to accept a shareholder vote of no confidence in a director, adoption of
      an unusual slow-hand poison pill, approval of a single-trigger change-in-control payout for management, incorporation of a &#8220;proxy put&#8221; in the equity plan and debt agreements that disenfranchises shareholders, and failure to disclose significant
      conflicts of interest relating to the trustees.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">No, to hear the story from Whitestone&#8217;s Board, all is well at Whitestone, and the Company is executing its strategy effectively.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup> The Company operates, in its own words, a &#8220;high quality
      portfolio&#8221;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2</sup> in some of the &#8220;fastest growing&#8221;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">3</sup> geographies in the country, fueled by &#8220;positive supply dynamics.&#8221;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">4</sup></div>
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    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">With such enviable assets and supposed &#8220;superior&#8221; performance,<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">5</sup> one would expect the Company to be highly valued and generating great returns for shareholders.&#160; The sad fact is, however,
      that the stock market disagrees with Whitestone.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Whitestone&#8217;s stock trades at a <u>31% discount to its consensus Net Asset Value</u> (&#8220;NAV&#8221;), the largest discount to NAV of any publicly traded REIT in the Company&#8217;s self-selected peer group.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">6</sup>
      A dollar of cash flow in the hands of Whitestone&#8217;s management team and Board is valued lower than a dollar of cash flow in the hands of its peers: Whitestone has traded at a whopping 37% discount to the median forward AFFO multiple of its peers<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">7</sup>
      on average during its time as a public company. Whitestone&#8217;s stock is currently trading <u>&#160;</u><font style="font-style: italic;"><u>below</u></font><u> its 2010 IPO price</u><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">8</sup> &#8211; as it has for 876 of the last 1,000 trading days.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">9</sup>
      On a total return basis, the stock has underperformed sector indexes and the stock of Whitestone&#8217;s peers over the last five years, until rumors of a potential takeover emerged in October 2023.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">10</sup></div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Whitestone&#8217;s Board is simply being disingenuous when it claims Whitestone is performing well. It knows the Company has underperformed. After all, Whitestone&#8217;s 2023 Annual Incentive Plan paid out at
      just <u>18% of the Board&#8217;s target compensation level</u> in 2023.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">11</sup> Moreover, the Board surely noticed that the Company:<br>
      <br style="line-height: 11.4pt;">
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z579665158ef441ea84a2ea5670e0ab67" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;">failed to deliver on its long-term leverage and expense reduction commitments made to investors in 2018;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">12</sup></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z2cc0ee8eea1f4049bd79cb6eddcd0490" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;">missed <font style="font-style: italic;">all four</font> financial targets in the Company&#8217;s 2023 Annual Incentive Plan;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">13</sup> and</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z770ed94069064364971ad04e95ca089f" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;">missed its 2023 FFO guidance, despite setting a target that was <font style="font-style: italic;">lower</font> than the result for 2022,cutting that unambitious target just months later
                and then reaffirming the further reduced guidance just a month before the earnings miss.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">14</sup></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Unfortunately, the Board&#8217;s uber-defensive reaction to our desire to see improvements in performance at Whitestone has caused it to distort, conceal and obfuscate the truth. For example,
      Whitestone&#8217;s Board has:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="zf26a0d060fe845fe9ba1d46b004e87d2" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">Claimed the Board proactively fired the prior CEO for performance issues, </font>when in fact the Board fired him for misconduct.<font style="font-weight: bold;">&#160;</font>The Board claims it &#8220;recognized the lack of execution and underperformance&#8221;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">15</sup> under the Company&#8217;s former leader. However, at the time of the firing, in the press release announcing the
                leadership transition, the Board said the termination was &#8220;<u>not related to Whitestone&#8217;s operating performance</u> [or] financial condition.&#8221;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">16</sup></div>
            </td>
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      </table>
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z27cf12cd58774c2c97f7da32fc7dc5b1" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt; font-weight: bold;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">Cynically attempted to damage Mr. Schanzer&#8217;s credibility </font>by highlighting baseless claims against him, <u>both of which were resolved in his favor
                  and without a finding of fault</u>. The Board knows the allegations it has repeated in its materials have no basis; the very <font style="font-style: italic;">Wall Street Journal</font> article the Board cites notes that the allegations
                were dismissed, and Mr. Schanzer provided the Company with legal documents indicating that an independent arbitrator found the claims to be unsupported.</div>
            </td>
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      </table>
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z708417f1d7644f09b6286674b450dcd6" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">Dismissed the significance of Board Chair David Taylor&#8217;s undisclosed service as counsel to Pillarstone REIT</font> (an entity in which Whitestone&#8217;s
                then-CEO held a 78% beneficial ownership interest),<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">17</sup> even though <u>Mr. Taylor&#8217;s professional relationship with Whitestone&#8217;s then-CEO surely implicated Mr. Taylor&#8217;s independence.</u> Mr. Taylor&#8217;s law firm was potentially paid
                millions of dollars to negotiate <font style="font-style: italic;">against</font> Whitestone <font style="font-style: italic;">on behalf of</font> an entity controlled by the Company&#8217;s then-CEO. Just a few months later, Mr. Taylor was
                invited to join Whitestone&#8217;s Board and was appointed to Whitestone&#8217;s Compensation Committee. Soon thereafter, Whitestone&#8217;s then-CEO received a significant pay increase. And shareholders were never told of the relationship between the
                then-CEO and Mr. Taylor. Moreover, aspects of the Whitestone-Pillarstone deal later became the subject of a lawsuit by Whitestone (where Mr. Taylor was then Chair) against Pillarstone (where Mr. Taylor was the drafting lawyer responsible
                for the deal.) The Board well knows that Mr. Taylor&#8217;s work for the then-CEO&#8217;s controlled entity created an ongoing independence issue (especially as Whitestone&#8217;s ownership stake in Pillarstone is at risk due to the performance and
                bankruptcy of Pillarstone and Whitestone sued Pillarstone). This relationship should have been disclosed.</div>
            </td>
          </tr>

      </table>
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              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">Falsely claimed Erez and Mr. Schanzer are focused solely on selling Whitestone</font>, even though <u>that is both not true and was never even discussed
                  during Mr. Schanzer&#8217;s interview with the Board.</u> Mr. Schanzer initially approached the Company shortly after<font style="font-style: italic;"> Bloomberg</font> reported interest from a buyer because he feared that the Board would
                hastily sell the Company. His advice and input was <font style="font-style: italic;">not</font> to rush into a sale. Since then, in his dialogue with the Board and with shareholders, Mr. Schanzer&#8217;s focus has been on cost of capital,
                capital allocation, lease and tenant quality, investor communications, model integrity and other operational topics. The Board obviously knows this; the subject of selling Whitestone was not discussed&#160; during Mr. Schanzer&#8217;s interview.<br>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">Incorrectly claimed Mr. Schanzer delivered inferior returns while acting as CEO of Cedar Realty Trust</font>, when in fact <u>he oversaw significant
                  improvement and outperformance</u>. Prior to Mr. Schanzer announcing Cedar&#8217;s long-term repositioning plan, shortly after taking over as CEO, Cedar was a chronic underperformer, delivering a negative 55% total shareholder return from the
                company&#8217;s IPO.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">18</sup> Under Mr. Schanzer&#8217;s leadership, Cedar&#8217;s fortunes reversed: from the announcement of Mr. Schanzer&#8217;s long-term plan in November 2011 to its sale in August 2022, Cedar delivered a total shareholder return of
                approximately 103%, significantly outperforming the company&#8217;s shopping center REIT peers.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">19</sup> The Whitestone Board knows this because its own financial advisor also advised the Cedar Board of Trustees (and prepared a presentation
                in August 2022 indicating that Cedar had outperformed).<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">20</sup></div>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">Claimed that Erez nominee Catherine Clark is not qualified to join the Board</font>, even though <u>she has more directly relevant real estate experience
                  than any of Whitestone&#8217;s incumbent independent directors.</u> Despite Ms. Clark&#8217;s decades-long track record of buying, selling and developing billions in shopping center assets, the Board claims Ms. Clark lacks relevant experience because
                she has not bought and sold in Texas and Arizona specifically.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">21</sup><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">&#160;</sup>But none of Whitestone&#8217;s independent trustees have experience buying and selling shopping centers anywhere.</div>
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    <div style="text-align: justify; line-height: 11.4pt;">These intentional distortions of the facts by our fiduciaries are discouraging. Perhaps worse still is the Board&#8217;s attempt to sidestep entirely, without comment, some of the more troubling aspects
      of Whitestone&#8217;s business configuration, performance and governance. Nowhere in its recent presentation does Whitestone address, for example, the fact that:</div>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">The Company is sub-scale.</font> Whitestone has the fewest net real estate assets and number of properties, least leasable square footage and lowest
                revenue of any of its peers.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">22</sup> Its small size has led to underinvestment by institutional shareholders<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">23</sup> and excess volatility.</div>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">The Company&#8217;s operations are inefficient.</font> As a result of its lack of scale, Whitestone&#8217;s G&amp;A burden, measured as a percentage of the Company&#8217;s
                revenue and enterprise value, is significantly higher than any of its peers.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">24</sup></div>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">The Company&#8217;s leverage is high.</font> Whitestone is one of the highest-levered shopping center REITs,<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">25</sup> with its 2023 net debt/EBITDAre of
                7.6x significantly higher than both the peer median and the Company&#8217;s own 2023 goal of 6.8x.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">26</sup></div>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">The Company has re-cycled equity for no rational economic reason and at the expense of great dilution. </font>Since 2017, Whitestone has sold nearly $200
                million in equity, always at a discount to NAV.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">27</sup> Instead of using this equity to de-lever the balance sheet or grow the scale of the business, Whitestone has returned a substantial amount of it right back to equity holders in
                the form of &#8220;return of capital&#8221; dividends.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">28</sup> There is simply no economic rationale for selling equity and returning &#8220;excess&#8221; equity, often in the same year. This is abysmal capital allocation.</div>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">The Board has repeatedly recruited directors from among the Company&#8217;s service providers. </font>Rather than casting a wide net for the most capable and
                qualified talent, Whitestone has filled its Board with trustees who had a former business and/or social relationship with the Company and its executives.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">29</sup></div>
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            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">The Board also</font>&#160;<font style="font-weight: bold;">recruited a trustee who later committed one of the largest fraudulent check-kiting schemes in U.S.
                  history</font>,<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">30</sup> then failed to adequately disclose the circumstances surrounding his abrupt resignation from Whitestone&#8217;s Board.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">31</sup> It&#8217;s unclear why the Board decided to appoint this Indiana-based payroll company
                owner in the first place. And, so far, the Board has chosen to remain silent on its own poor vetting and his criminal conviction.</div>
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              <div style="text-align: left; margin-left: 18pt; line-height: 11.4pt;">&#8226;</div>
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            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; line-height: 11.4pt;"><font style="font-weight: bold;">The Board has flaunted the will of shareholders.</font> When one of the Board&#8217;s nominees was forced to tender his resignation after failing to receive
                majority support from shareholders at the 2021 annual meeting &#8211; due, in part, to the Board&#8217;s adoption of an off-market poison pill with a 5% threshold and a slow-hand feature<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">32</sup> &#8211; the Board rejected his resignation.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">33</sup></div>
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    <div style="text-align: justify; line-height: 11.4pt;">Even as the Board remains silent about these concerns, and obfuscates others, one thing remains clear: the market believes Whitestone is worth significantly less in the hands of this management
      team and Board than the value of its net assets. At best this suggests that, despite the Board&#8217;s talk of &#8220;progress,&#8221;<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">34</sup> shareholders have concluded that Whitestone will continue to underperform its potential.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">We agree and believe that change is urgently needed. Shareholders deserve a Board that is honest (and transparent) about the challenges Whitestone faces and that has the expertise, alignment and
      fiduciary mindset necessary to help the Company improve. We believe adding our two new, independent trustee candidates &#8211; Catherine Clark and Bruce Schanzer &#8211; to the Board would help.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Our nominees bring highly relevant real estate, REIT capital markets and shopping center expertise. If elected to the Board, they are committed to working constructively with Whitestone&#8217;s
      management team and trustees to address the Company&#8217;s challenges and pursue its opportunities with focus and objectivity.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">And Ms. Clark and Mr. Schanzer will always be honest and transparent with shareholders.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">To ensure the election of Catherine Clark and Bruce Schanzer, we ask you to vote <font style="font-weight: bold;">&#8220;FOR&#8221;</font>&#160;<font style="font-weight: bold;">Catherine Clark and Bruce Schanzer</font>
      and <font style="font-weight: bold;">&#8220;WITHHOLD&#8221;</font> from <font style="font-weight: bold;">David Taylor and Nandita Berry</font>. You can do so online or by returning the enclosed <font style="font-weight: bold;">BLUE</font> proxy card.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Sincerely,</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Bruce Schanzer,</div>
    <div style="line-height: 11.4pt;">Chairman, Erez Asset Management, LLC</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
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            <div style="text-align: center; line-height: 11.4pt; font-style: italic;">If you have any questions or require assistance in voting your <font style="font-weight: bold;">BLUE</font> universal proxy card,</div>
            <div style="text-align: center; line-height: 11.4pt;"><font style="font-style: italic;">please contact our proxy solicitor, </font>Innisfree M&amp;A Incorporated&#160;at:</div>
            <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">Shareholders may call toll-free: (877) 456-3422</div>
            <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">Banks and brokers call: (212) 750-5833</div>
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    <div style="line-height: 14.4pt;">
      <div style="line-height: 11.4pt; font-weight: bold;">About Erez Asset Management, LLC</div>
    </div>
    <div style="line-height: 14.4pt;">
      <div style="text-align: justify; line-height: 11.4pt;"><br style="line-height: 11.4pt;">
        <br>
        Erez Asset Management, LLC is an investment management firm focused on undervalued small market cap REITs. Erez was founded in 2022 by&#160;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.&#160;</div>
    </div>
    <div style="line-height: 14.4pt;">
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
      <div style="line-height: 11.4pt; font-weight: bold;">Contacts</div>
      <div style="line-height: 11.4pt;">Media:<br>
        Mark Semer&#160;/&#160;Iain Hughes<br>
        Gasthalter &amp; Co.<br>
        (212) 257-4170<br>
        <font style="font-weight: bold;">erez@gasthalter.com</font>&#160;</div>
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
      <div style="line-height: 11.4pt;">Investors:<br>
        Jonathan Salzberger&#160;/&#160;Scott Winter<br>
        Innisfree M&amp;A Incorporated<br>
        212-750-5833</div>
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    <div style="line-height: 14.4pt;">
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
    </div>
    <div style="line-height: 11.4pt; font-weight: bold;">Disclaimer</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">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.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt; font-weight: bold;">Certain Information Concerning the Participants</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Erez REIT Opportunities LP, Erez Asset Management LLC, Bruce Schanzer and Catherine Clark (collectively, the "Participants") are participants in the solicitation of proxies from the shareholders of
      the Company for the 2024 Annual Meeting of Shareholders (the "Annual Meeting"). On April 5, 2024, the Participants filed with the U.S. Securities and Exchange Commission (the "SEC") their definitive proxy statement and accompanying BLUE Proxy Card in
      connection with their solicitation of proxies from the shareholders of the Company for the Annual Meeting. ALL SHAREHOLDERS OF THE COMPANY ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT, THE ACCOMPANYING BLUE PROXY CARD AND OTHER DOCUMENTS
      RELATED TO THE SOLICITATION OF PROXIES BY THE PARTICIPANTS, AS THEY CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION RELATED TO THE PARTICIPANTS AND THEIR DIRECT OR INDIRECT INTERESTS IN THE COMPANY, BY SECURITY HOLDINGS OR OTHERWISE.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">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 SEC's website at http://www.sec.gov/. In addition, the Participants will provide copies of the definitive proxy statement without charge, when available, upon request. Requests for copies should be directed to Innisfree M&amp;A
      Incorporated at the contact information above.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <br>
    <br>
    <hr noshade="noshade" align="left" style="background-color: #000000; border: 0px; height: 1px; width: 2in; margin-left: 0pt; margin-right: auto; color: #000000;">
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup> Source: Whitestone REIT Investor Presentation, filed with the SEC on April 24, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2</sup> Source: Whitestone REIT Investor Presentation, filed with the SEC on April 24, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">3</sup>&#160;<font style="font-style: italic;">Id</font>.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">4</sup>&#160;<font style="font-style: italic;">Id</font>.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">5</sup> See Whitestone REIT Letter to Shareholders, filed with the SEC on April 5, 2024. See also Whitestone REIT Investor Presentation, filed with the SEC on April 24, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">6</sup> Source:&#160; S&amp;P Capital IQ Pro. Data as of April 18, 2024. Peers represent companies WSR identified as comparable in its letter to shareholders distributed April 5, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">7</sup> S&amp;P Capital IQ Pro. Data is for the period January 31, 2011, when forward consensus AFFO per share estimates where first available for Whitestone, through October 25, 2023, the last trading day prior
      to the article &#8220;Fortress Approached Whitestone REIT About a Takeover&#8221; was published in Bloomberg regarding a takeover proposal. Peers represent companies WSR identified as comparable in its letter to shareholders distributed April 5, 2024. Peer data
      revers to peer median multiples during the period.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">8</sup> Source: FactSet. Data as of April 24, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">9</sup>&#160;<font style="font-style: italic;">Id</font>.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">10</sup> Source: FactSet. Based on the five-year total return as of October 25, 2023, the last trading day prior to the article &#8220;Fortress Approached Whitestone REIT About a Takeover&#8221; published in Bloomberg
      regarding a</div>
    <div style="line-height: 11.4pt;">takeover proposal.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">11</sup> Source: Whitestone REIT Definitive Proxy Statement, filed with the SEC on April 4, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">12</sup> In an Investor Presentation filed with the SEC on February 12, 2018, Whitestone committed to a net debt to Adjusted EBITDA ratio of 6 to 7 times and a G&amp;A expense ratio of 8% to 10% for 2023.
      Whitestone ended 2023 with a net debt to EBITDA ratio of 7.8x and a G&amp;A expense ratio of 14.1%.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">13</sup> Source: Whitestone REIT Definitive Proxy Statement, filed with the SEC on April 4, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">14</sup> Source: Whitestone REIT earnings press releases for the quarters ended December 31, 2022; June 30, 2023; September 30, 2023; and December 31, 2023.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">15</sup> Source: Whitestone REIT Investor Presentation, filed with the SEC on April 24, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">16</sup> Source: Whitestone REIT Press Release, January 18, 2022.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">17</sup> See, e.g., Contribution Agreement and OP Unit Purchase Agreement between Pillarstone Capital REIT Operating Partnership LP and Whitestone REIT Operating Partnership LP, dated December 8, 2016, filed with
      Whitestone Form 8-K, December 9, 2016.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">18</sup> Source:&#160; S&amp;P Capital IQ Pro. Data from October 23, 2003 to November 9, 2011.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">19</sup> Source:&#160; S&amp;P Capital IQ Pro. Data from November 10, 2011 to August 23, 2022. Peers refer to AKR, FRT, KIM, KRG, REG, ROIC, BFS, SITC and WSR. Peer data refers to the simple average.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">20</sup> Source: Presentation to the Cedar Realty Trust Board of Trustees, BofA Securities, August 9, 2022.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">21</sup> Source: Whitestone REIT Investor Presentation, filed with the SEC on April 24, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">22</sup>&#160;Sources: Bloomberg and FactSet. Data as of and for the year ended December 31, 2023. Peers represent companies WSR identified as comparable in its letter to shareholders distributed April 5, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">23</sup> Source: FactSet. Data as of April 18, 2024. Per FactSet, Whitestone&#8217;s institutional ownership as a percentage of float and number of institutional shareholders are the third- and second-lowest,
      respectively, among the Company&#8217;s peers. Peers represent companies WSR identified as comparable in its letter to shareholders distributed April 5, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">24</sup> Source: FactSet. Data as of April 18, 2024. Peers represent companies WSR identified as comparable in its letter to shareholders distributed April 5, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">25</sup> Source: FactSet. Data as of April 18, 2024. Peers represent companies WSR identified as comparable in its letter to shareholders distributed April 5, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">26</sup> Source: Whitestone REIT Definitive Proxy Statement, filed with the SEC on April 4, 2024.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">27</sup> Sources: S&amp;P Capital IQ Pro and Company filings. Consensus Net Asset Value (&#8220;NAV&#8221;) per share is based on the &#8220;Mean Consensus NAV per share&#8221; as reported by S&amp;P Capital IQ Pro. Follow-on offerings
      discount to NAV per share percentage is based on WSR&#8217;s issuance price compared to the Mean Consensus NAV per share. ATM offerings discount to NAV per share percentage is based on the average issuance price compared to the Mean Consensus NAV per share
      in the respective quarter proceeds were raised.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">28</sup> Sources: S&amp;P Capital IQ Pro and Company filings. Since Whitestone&#8217;s IPO, 39% of the Company&#8217;s dividend distributions have not been from profits or capital gains but from a return of capital; this is
      significantly higher than the REIT long-term average of 14%.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">29</sup> Whitestone&#8217;s Board of Trustees includes trustees who, before joining the Board, served as 1) a public relations advisor to the Company; 2) one of the Company&#8217;s lead lenders; and 3) counsel to the Special
      Committee of an entity that was controlled by Whitestone&#8217;s then-CEO.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">30</sup> Source: Adam Ferrise, &#8220;&#8216;Pure avarice&#8217;: Businessman gets 8 years in prison for $180 million bank fraud that hit Cleveland&#8217;s KeyBank,&#8221; Cleveland.com, November 2, 2023.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">31</sup> In the Form 8-K disclosing Mr. Khan&#8217;s resignation, filed with the SEC on July 9, 2019, Whitestone stated only that Mr. Khan resigned &#8220;for personal reasons and had no disagreement with the Company,&#8221;
      despite the fact that the resignation took place on the day KeyBank&#8217;s claim against Mr. Khan was filed.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">32</sup> Source: Diligent. Note: Several shareholders, including BlackRock, the Florida State Board of Administration, Legal &amp; General Investment Management and T. Rowe Price Associates all voted to withhold
      on Jack Mahaffey for reasons associated with the Company&#8217;s poison pill.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">33</sup> Source: Whitestone REIT Form 8-K, filed with the SEC on July 20, 2021.</div>
    <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">34</sup> Source: Whitestone REIT Investor Presentation, filed with the SEC on April 24, 2024.</div>
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