Investment highlights

Whitestone (WSR) has gotten very cheap.  Just a few months ago it was nearly $15 per share when an ill-timed equity offering sent the shares plunging to an issuance price of $13.00.  With retail fears hitting a crescendo, it continued dropping to around $11.83.  This is roughly half of what its properties are worth.  Using a 6% cap rate WSRs NAV is $23.  We took the opportunity to buy some shares for 2CHYP.

WSR’s properties are well located with high median household income and strong population growth.  This has and should continue to fuel SSNOI growth.  Its tenants are among the most e-commerce resistant in retail so we think it will weather the storm and even grow through it.

CorEnergy is another investment that we are excited about right now.  We anticipate an acquisition announcement in the near term which should be highly accretive to FFO.  CORR’s balance sheet is underlevered, so it would not need to raise equity for even a large acquisition.  This should be diversifying and may allow them to raise the already high dividend.

Commentary may contain forward looking statements which are by definition uncertain.  We retain no obligation to update or correct forward looking statements should the available information change.  Actual results may differ materially from our forecasts or estimations.

2CHYP Portfolio Snap Shot

5/25/17 2CHYP Performance since inception

2CHYP Weekly Trade Confirmation Report