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hitestone REIT has rejected a $1.45 billion buyout proposal from MCB Real Estate, citing valuation expectations that were not met. The Baltimore-based investment firm led by David Bramble and Peter Pinkard initially offered $14 per share but increased it to $15 in an attempt to persuade Whitestone's trustees. However, Whitestone maintained that its market positioning and 60% stock growth since 2022 justified a more comprehensive valuation.

    Whitestone stated that MCB's proposal did not reflect an "appropriate valuation" for a negotiated transaction, despite the offer being a 14.5% premium over its June 3 share price of $13.10. As the third-largest shareholder, MCB argued that Whitestone's stock had been artificially inflated due to its own acquisition of shares and takeover rumors.

    MCB launched a website, MaximizingWhitestoneValue.com, suggesting that external factors had influenced Whitestone's stock performance. The firm outlined 11 questions it expected Whitestone to address during an earnings call, including measures to support its stock if the company decided to sell its shares. MCB also accused Whitestone of being "entrenched" and not fulfilling its duties as a board.

    This rejection comes after Whitestone was involved in a proxy battle earlier this year with investor Erez Asset Management over a rejected buyout attempt by Fortress Investment Group. MCB holds a $3 billion portfolio across various asset classes, including retail, industrial, and multifamily properties.