Whitestone REIT received a $33.4 million payment on December 12, 2025, as part of a bankruptcy settlement with the Pillarstone Capital REIT Operating Partnership, L.P. The settlement, approved by the court, requires the partnership to pay $4.05 million to Pillarstone Capital REIT and set aside $2.5 million for claims, taxes and administrative expenses, with an additional $4 million in cash expected in 2026.
The influx of cash allowed Whitestone to pay down its revolver, reducing the debt‑to‑EBITDA ratio from 7.2× in Q1 2025 to 7.1× in November 2025 and bringing it closer to the company’s target of a low‑6× range. The payment also improves liquidity for future acquisitions and redevelopment projects, reinforcing the company’s strategy of adding value to its community‑centered portfolio.
The settlement resolves a legal dispute that began in 2022 and was formalized during Pillarstone’s Chapter 11 filing in March 2024. Whitestone had previously received a $13.6 million secured claim payment in November 2025, but the new settlement eliminates the remaining overhang and finalizes the resolution of the partnership conflict.
CEO Dave Holeman said the settlement “strengthens Whitestone’s balance sheet as we head into 2026.” The company is targeting 5‑7% annual core FFO growth and plans to use the freed‑up capital to pursue strategic acquisitions and enhance tenant services in its key markets.
By removing the legal uncertainty and bolstering its balance sheet, Whitestone positions itself to accelerate growth, reduce leverage, and maintain a disciplined approach to capital allocation as it expands its community‑centered real‑estate portfolio.
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