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.