Whitestone REIT (NYSE:WSR) said it received $33.4 million on December 12, 2025, from Pillarstone under a Bankruptcy Rule 9019 settlement, marking a major recovery tied to long-running litigation and asset restructuring.
The settlement stipulates that distributions—net of $4.05 million allocated to Pillarstone Capital REIT and a $2.5 million reserve for taxes, claims, and administrative expenses—flow to Whitestone.
After these deductions, approximately $4 million in cash and $2.5 million in reserves remain in the Pillarstone estate, which Whitestone expects to receive in 2026 along with any reserve excess.
The company noted that this latest payment follows a separate $13.6 million recovery in November connected to a secured claim, bringing total recent proceeds from Pillarstone-related actions to nearly $47 million.
On the day of receipt, Whitestone directed the $33.4 million toward paying down its revolving credit facility, strengthening its balance sheet as borrowing costs remain elevated.
Operationally, Whitestone has remained active in portfolio shaping.
Since the third quarter, the REIT has acquired two properties and sold one, Kempwood Plaza, as part of its ongoing effort to refine asset quality and market positioning in key Sunbelt communities.
Management reaffirmed its target of 5% to 7% annual Core FFO per-share growth, supported by balance sheet improvements, capital recycling, and leasing momentum across its neighborhood-centered retail properties.