REAL ESTATE

As of June 30, 2017, Pillarstone OP owned 14 commercial properties in the Dallas and Houston areas comprised of approximately 1.5 million square feet of gross leasable area.

Unaudited pro forma results of operations. The following unaudited pro forma results summarized below reflect our consolidated results of operations as if the Contribution Agreement had occurred on January 1, 2016. Revenue and net income attributable to the Property of $4.2 million and $0.9 million, respectively, have been included in our results of operations for the three months ended June 30, 2017. Revenue and net income attributable to the Property of $8.3 million and $1.6 million, respectively, have been included in our results of operations for the six months ended June 30, 2017. The related acquisition expenses of approximately $400,000 for the year ended December 31, 2016 have been reflected as a pro forma expense as of January 1, 2016. The unaudited consolidated pro forma results of operations is not necessarily indicative of what the actual results of operations would have been, assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods.



	Three Months Ended June 30,
(in thousands, except per share data)	2017		2016
	Actuals		Pro Forma
Total property revenues	$	4,178	$	4,004
Net income	$	842	$	855
Net income attributable to Common Shareholders	$	127	$	139

Basic earnings per share:	$	0.31	$	0.34
Diluted earnings per share:	$	0.04	$	0.05



	Six Months Ended June 30,
(in thousands, except per share data)	2017		2016
	Actuals		Pro Forma
Total property revenues	$	8,342	$	8,092
Net income	$	1,368	$	1,445
Net income (loss) attributable to Common Shareholders	$	100	$	(111	)

Basic earnings per share:	$	0.25	$	(0.27	)
Diluted earnings per share:	$	0.03	$	(0.27	)