Restatement of Consolidated Financial Statements (Tables)

3 Months Ended

Mar. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Restatement of the Balance Sheet and Income Statement

The following table presents the effects of the restatement on the consolidated balance sheet as of March 31, 2017 (in thousands):

	March 31, 2017
	As Reported			Adjustment			As Restated
Real estate assets, at cost
Property	$	—		$	81,170		$	81,170
Accumulated depreciation	—			(761		)	(761		)
Total real estate assets	—			80,409			80,409
Cash and cash equivalents	3			1,300			1,303
Equity investment in Pillarstone Capital REIT Operating Partnership LP	38			(38		)	—
Dividend receivable	41			(41		)	—
Escrows and acquisition deposits	—			778			778
Accrued rents and accounts receivable, net of allowance for doubtful accounts	—			526			526
Receivable due from related party	—			2,943			2,943
Unamortized lease commissions and deferred legal costs, net	—			1,100			1,100
Prepaid expenses and other assets	6			320			326
Total assets	$	88		$	87,297		$	87,385
Notes payable	$	—		$	65,186		$	65,186
Accounts payable and accrued expenses	162			1,646			1,808
Payable due to related party	316			649			965
Convertible notes payable - related parties	198			—			198
Accrued interest payable	27			—			27
Tenants' security deposits	—			1,056			1,056
Total liabilities	703			68,537			69,240
Commitments and contingencies	—			—			—
Shareholders' Equity:
Preferred A Shares - $0.01 par value, 1,518,000 authorized: 256,636 Class A cumulative convertible shares issued and outstanding at March 31, 2017 and December 31, 2016, $10.00 per share liquidation preference	3			—			3
Preferred C Shares - $0.01 par value, 300,000 authorized: 244,444 Class C cumulative convertible shares issued and outstanding, $10.00 per share liquidation preference at March 31, 2017 and December 31, 2016	2			—			2
Common Shares - $0.01 par value, 400,000,000 authorized: 443,299 shares issued and 405,169 outstanding at March 31, 2017 and December 31, 2016	4			—			4
Additional paid-in capital	28,147			—			28,147
Accumulated deficit	(27,970		)	94			(27,876		)
Treasury stock, at cost, 38,130 shares	(801		)	—			(801		)
Total Pillarstone Capital REIT shareholders' deficit	(615		)	94			(521		)
Noncontrolling interest in subsidiary	—			18,666			18,666
Total equity (deficit)	(615		)	18,760			18,145
Total liabilities and equity	$	88		$	87,297		$	87,385

The following table presents the effects of the restatement on the consolidated statement of operations for the three months ended March 31, 2017 (in thousands):

	Three Months Ended March 31, 2017
	As Reported			Adjustment			As Restated
Property revenues
Rental revenues	$	—		$	3,536		$	3,536
Other revenues	—			628			628
Total property revenues	—			4,164			4,164
Property expenses
Property operation and maintenance	—			1,287			1,287
Real estate taxes	—			648			648
Total property expenses	—			1,935			1,935
Other expenses
General and administrative	148			133			281
Depreciation and amortization	—			716			716
Interest expense	4			671			675
Total other expense	152			1,520			1,672
Income (loss) before loss on disposal of assets and income taxes	(152		)	709			557
Loss on sale or disposal of assets	—			(6		)	(6		)
Equity in income of Pillarstone Capital REIT Operating Partnership LP	64			(64		)	—
Provision for income taxes	—			(25		)	(25		)
Net income (loss)	(88		)	614			526
Less: non-controlling interest in subsidiary	—			553			553
Net loss attributable to Common Shareholders	$	(88	)	$	61		$	(27	)
Net loss attributable to Common Shareholders per Common Share: Basic and Diluted	$	(0.22	)	$	0.15		$	(0.07	)