Whitestone REIT On Track with $90 Million of Value-Add Acquisitions Since IPO

Positioned for Continued Growth in 2012

Whitestone REIT (NYSE-AMEX: WSR - "Whitestone"), a fully integrated real estate company that owns, operates and re-develops Community Centered Properties^TM, which are visibly located properties in established or developing culturally diverse neighborhoods, provided a recap of the nine Community Centered Property^TM acquisitions the Company completed since its August 2010 initial public offering. The acquisitions, totaling approximately $90 million, were funded from two equity raises totaling 83 million,¹ assumption of $14 million of debt, and cash on hand.

High Quality Value-Add Real Estate at Discounted Prices

"We had little or no public company REIT competition for any of these 'one-off' transactions," said James C. Mastandrea, Whitestone's Chairman and Chief Executive Officer. "Our acquisition approach relies on a win-win creative solution for both the buyer and the seller. The sellers ranged from banks selling foreclosures, to borrowers with loans that were either in default or facing near-term maturity, large principal reductions and/or significant refinancing fees. Our ability to use Operating Partnership Units as currency is an advantage to solve problems for banks and borrowers with properties that are either under managed or under capitalized. Closing quickly is crucial in these types of acquisitions and it is something we do well. In closing on 90% of the properties we placed under contract, we achieved preferred-buyer status with sellers. Most of our acquisitions closed within 15 days following a 25 day due diligence period. We expect to continue our growth through accretive acquisitions using additional debt with conservative leverage."

Whitestone's Community Centered Property^TM acquisitions since September 2010 include:

· The Citadel (acquired for $2.2 million)

· MarketPlace at Central (acquired for $6.4 million)

· Desert Canyon (acquired for $3.6 million)

· Terravita Marketplace (acquired for $16.1 million)

· Ahwatukee Plaza (acquired for $9.3 million)

· Gilbert Tuscany Village (acquired for $5.0 million)

· The Pinnacle at Scottsdale Phase I (acquired for $29.0 million)

· The Pinnacle at Scottsdale Phase II (acquired for $950,000)

· Shops at Starwood plus Development Land (acquired for $17.6 million)

About Whitestone REIT

Whitestone REIT (NYSE-AMEX: WSR) is a fully integrated real estate company that owns, operates and re-develops Community Centered Properties^TM, which are visibly located properties in established or developing culturally diverse neighborhoods. Whitestone focuses on value-creation in its Centers, as it markets, leases and manages its Centers to match tenants with the shared needs of surrounding neighborhoods. Operations are structured for providing cost-effective service to local service-oriented smaller space tenants (less than 3,000 square feet). Whitestone has a diversified tenant base concentrated on service offerings including medical, education, and casual dining. The largest of its approximately 900 tenants comprises less than 2% of its rental revenues. Headquartered in Houston, Texas and founded in 1998, the Company is internally managed with a portfolio of commercial properties in Texas, Arizona, and Illinois. For additional information about the Company, please visit www.whitestonereit.com. The Investor Relations section of the Company's website has links to SEC filings, news releases, financial reports and investor newsletters.

Whitestone REIT Acquisitions: Interested parties should contact Bradford Johnson, Whitestone REIT Director of Acquisitions, via email: [e-mail] or phone [phone].

Forward-Looking Statements

Statements included herein that state Whitestone's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, which by their nature, involve known and unknown risks and uncertainties. Whitestone's actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to Whitestone's regulatory filings with the Securities and Exchange Commission for information or factors that may impact Whitestone's performance.

¹$23 million net raised in the Company's initial public offering (August 25, 2010); $60 million net raised through a secondary public offering (May 10, 2011)

Whitestone REIT
Anne Gregory, [phone]
Vice President Marketing & Investor Relations
[e-mail]