Whitestone REIT Receives $33.4 Million Payment From Pillarstone Settlement Agreement

Rhea-AI Summary

Whitestone REIT (NYSE: WSR) received $33.4 million on December 12, 2025 from Pillarstone following a Bankruptcy Rule 9019 settlement. The settlement directs distributions after $4.05 million to Pillarstone Capital REIT and a $2.5 million reserve for claims, taxes and expenses to Whitestone, leaving approximately $4.0 million cash and $2.5 million reserves in the Pillarstone estate.

Whitestone expects to receive the remaining $4.0 million and any excess from the reserve in 2026. These payments are in addition to a $13.6 million payment received in November related to a secured claim. On December 12, Whitestone used the $33.4 million to pay down its revolver. Since Q3, Whitestone acquired two properties and sold one (Kempwood Plaza). Management targets 5–7% annual Core FFO per share growth.

Positive

• Received $33.4 million distribution on December 12, 2025
• Additional $13.6 million received in November related to secured claim
• Paid down revolver by $33.4 million on December 12, 2025
• Expect $4.0 million cash and potential reserve excess to be received in 2026

Negative

• Pillarstone estate retains only ~$4.0 million cash after distributions
• A $2.5 million reserve for claims, taxes and expenses delays part of payment until 2026

Key Figures

Settlement payment $33.4 million Received from Pillarstone Partnership on December 12, 2025

Pillarstone distribution $4.05 million Paid to Pillarstone Capital REIT before Whitestone distribution

Reserve for claims $2.5 million Reserved for claims, taxes and administrative expenses

Remaining cash expected $4.0 million Cash remaining in Pillarstone estate expected in 2026

Additional prior payment $13.6 million Payment in November tied to Uptown Tower guaranty secured claim

Core FFO growth target 5–7% annually Stated long-term Core FFO per share growth objective

Revolver paydown $33.4 million Revolver balance reduced on Friday, December 12, 2025

Properties acquired 2 properties World Cup Plaza and Ashford Village since end of Q3

Market Reality Check

$13.52 Last Close

Volume Volume 194,457 is slightly below 20-day average of 209,942 (relative volume 0.93). normal

Technical Shares at $13.52 are trading above the 200-day MA of $12.84 and about 11.98% below the 52-week high of $15.36.

Peers on Argus

Peers showed mixed moves: SITC -0.41%, CBL +0.24%, BFS +1.11%, ALX +0.58%, ALEX +0.14%, suggesting today’s context is more stock-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 20	Leasing milestone	Positive	+0.6%	Promenade at Fulton Ranch reached 99% occupancy after remerchandising efforts.
Nov 07	Property acquisition	Positive	+0.7%	Acquisition of World Cup Plaza in Frisco with favorable demographics and traffic.
Nov 04	Acquisition proposal	Positive	-0.5%	Whitestone disclosed unsolicited non-binding proposal at $15.20 per share from MCB.
Nov 04	Bid details	Positive	+4.9%	MCB outlined $15.20 cash offer with stated premiums and valuation metrics.
Nov 03	Property acquisition	Positive	+0.2%	Acquisition of grocer-anchored Ashford Village in Houston, expanding local footprint.

Pattern Detected

Recent news with operational or strategic positives has usually seen modestly positive next-day moves, with one notable divergence on an acquisition proposal.

Recent Company History

Over the past few months, Whitestone REIT reported several growth- and value-focused milestones. On Nov 3 and Nov 7 2025 it acquired Ashford Village and World Cup Plaza, both positioned in attractive Houston and Frisco trade areas. An unsolicited acquisition proposal at $15.20 per share from MCB on Nov 4 highlighted valuation debates. Operationally, the Promenade at Fulton Ranch reached 99% occupancy. Today’s settlement-related cash inflows and revolver paydown build on this balance sheet and portfolio activity.

Market Pulse Summary

This announcement highlights a notable cash inflow and deleveraging step for Whitestone. The company received a $33.4 million settlement payment, in addition to a prior $13.6 million payment, and used $33.4 million to reduce its revolver balance. Management reiterated a 5–7% annual Core FFO per share growth objective while referencing two recent property acquisitions and one disposition, underscoring both balance sheet and portfolio repositioning efforts.

Key Terms

bankruptcy rule 9019 regulatory

"following the Bankruptcy court’s, approval of a settlement agreement under Bankruptcy Rule 9019."

A federal bankruptcy court rule that lets a judge approve settlements between a debtor and creditors or other parties during a bankruptcy case. Think of it like a referee signing off on a negotiated deal to resolve disputed claims so the case can move forward; for investors it matters because approved settlements can change recoveries, shorten legal uncertainty, and affect the value of creditor claims or equity interests.

revolver financial

"On Friday, December 12, Whitestone paid down the Company’s revolver balance by $33.4 million."

A revolver is a revolving credit facility — a line of borrowing a company can draw, repay and draw again as needed, similar to a corporate credit card for short-term cash needs. It matters to investors because it provides liquidity and flexibility to cover expenses, smooth cash flow swings, or bridge financing gaps; the size, cost and covenants of the revolver affect a company’s interest costs, financial health and default risk.

AI-generated analysis. Not financial advice.

HOUSTON, Dec. 15, 2025 (GLOBE NEWSWIRE) -- On December 12^th, Whitestone REIT (NYSE: WSR), a neighborhood-focused owner and operator of open-air shopping centers in Texas and Arizona, received $33.4 million from Pillarstone Capital REIT Operating Partnership, L.P. (the “Partnership”) following the Bankruptcy court’s, approval of a settlement agreement under Bankruptcy Rule 9019.

The settlement agreement directs the Partnership to distribute all funds remaining after the payment of $4.05 million to Pillarstone Capital REIT and a reserve of $2.5 million for claims, taxes and administrative expenses to Whitestone.

Remaining in the Pillarstone estate, after the $33.4 million distribution to Whitestone and the $4.05 million distribution to Pillarstone Capital REIT, is approximately $4.0 million in cash and $2.5 million in reserves. Whitestone expects to receive the $4.0 million in cash and any excess from the $2.5 million in reserves in 2026. These amounts are in addition to a $13.6 million payment made to Whitestone in November related to Whitestone’s secured claim for the Uptown Tower guaranty payment.

“Our focus has been and will continue to be on leveraging our differentiators to deliver consistent long-term 5 – 7% annual Core FFO per share growth for shareholders. The settlement and subsequent payments strengthen Whitestone’s balance sheet as we head into 2026,” said Whitestone CEO Dave Holeman.

On Friday, December 12, Whitestone paid down the Company’s revolver balance by $33.4 million.

Since the end of the third quarter, Whitestone has acquired two properties (World Cup Plaza and Ashford Village) which the company anticipates will enhance growth via remerchandising opportunities. In addition, Whitestone disposed of one property (Kempwood Plaza) where significant value was created prior to disposition.   

About Whitestone REIT

Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio.

Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy. For additional information, please visit the Company's investor relations website.

Contacts:

For Whitestone REIT – Investors
David Mordy
(713) 435-2219
ir@whitestonereit.com

For Whitestone REIT – Media:
Matthew Chudoba
WhitestonePR@icrinc.com

FAQ

How much did Whitestone REIT (WSR) receive from the Pillarstone settlement on December 12, 2025?

Whitestone received a $33.4 million distribution on December 12, 2025.

Will Whitestone (WSR) get any additional funds from Pillarstone in 2026?

Yes. Whitestone expects to receive approximately $4.0 million in cash and any excess from the $2.5 million reserve in 2026.

How did Whitestone (WSR) use the $33.4 million distribution received on December 12, 2025?

Whitestone used the $33.4 million to pay down the company’s revolver balance on December 12, 2025.

What other Pillarstone-related payment did Whitestone (WSR) receive in 2025?

Whitestone received a separate $13.6 million payment in November 2025 related to a secured claim for the Uptown Tower guaranty.

What is the impact of the Pillarstone settlement on Whitestone’s guidance for Core FFO per share?

Management said the settlement and payments strengthen the balance sheet as the company aims for 5–7% annual Core FFO per share growth.

Did Whitestone (WSR) make any property transactions since Q3 2025?

Yes. Since the end of Q3 2025, Whitestone acquired two properties (World Cup Plaza and Ashford Village) and disposed of Kempwood Plaza.