Financial Performance - In 2023, the formation of a joint venture for the 495-acre Holden Hills residential project resulted in a cash distribution of $35.8 million[19]. - The sale of the mixed-use property Block 21 in 2022 generated net cash proceeds of $112.3 million and a pre-tax gain of $119.7 million[19]. - Revenue from the Real Estate Operations segment accounted for 15% of total revenue in 2023, down from 66% in 2022, primarily due to significant sales of undeveloped properties in 2022[29]. - Revenue from the Leasing Operations segment accounted for 85% of total revenue in 2023, up from 34% in 2022, driven by new leases and the commencement of operations at Magnolia Place and The Saint June[39]. - As of December 31, 2023, consolidated cash and cash equivalents totaled $31.4 million, with an additional $40.5 million available under the revolving credit facility[21]. - The company raised a total of $101.3 million in third-party equity capital for development projects over the last three fiscal years[19]. - The company has approximately 1,600 acres of commercial and residential projects under development or undeveloped land held for future use[18]. - As of December 31, 2023, the company's outstanding debt totaled $175.2 million, with cash and cash equivalents at $31.4 million[107]. - Principal payments due on outstanding debt during 2024 total $68.0 million, with estimated interest payments of approximately $13.6 million[107]. Development Projects - The Saint George, a 316-unit luxury multi-family project, is expected to be completed by the third quarter of 2024[35]. - The company plans to continue its development program focusing on residential and residential-centric mixed-use projects in Texas[20]. - The company anticipates starting construction on the Holden Hills project in 2025, pending development plan revisions[51]. - The Annie B project is planned as a 400-foot tower with approximately 420,000 square feet and 316 luxury multi-family units, with construction commencement dependent on market conditions[59]. - The New Caney project is expected to include approximately 145,000 square feet of retail services and 275 multi-family units, with construction not planned before 2025[68]. - The company has a development portfolio of approximately 1,600 acres of commercial and multi-family and single-family residential projects under development or undeveloped land held for future use[18]. - The company is pursuing rezoning of approximately 216 undeveloped acres from commercial to multi-family, which could enhance future development potential[37]. - The ETJ Law, effective September 1, 2023, is expected to streamline the development permitting process for Holden Hills and Section N, potentially increasing development density[53]. Leasing Operations - Average retail rentals increased to $22.29 per square foot as of December 31, 2023, from $20.27 per square foot a year earlier, representing a growth of 10.05%[40]. - Scheduled expirations of leased retail square footage as of December 31, 2023, indicate 2% in 2024, 0% in 2025, 1% in 2026, 4% in 2027, 8% in 2028, and 85% thereafter[40]. - As of December 31, 2023, signed leases for substantially all retail space at Lantana Place, including anchor tenant Moviehouse & Eatery[57]. - The Saint June project achieved approximately 75% lease signings for its 182 units as of March 25, 2024, with construction completed in Q4 2023[49]. - The Magnolia Place project consists of two fully-leased retail buildings and potential development of approximately 11 acres planned for 275 multi-family units[63]. - Kingwood Place includes 151,877 square feet of retail lease space, with signed leases for substantially all retail space as of December 31, 2023[65]. - West Killeen Market has signed leases for approximately 74% of the retail space as of December 31, 2023[67]. Market Conditions and Risks - The company has faced challenging market conditions due to high interest rates, tightened bank credit, and high inflation, which have adversely impacted projected profitability and project timelines[86]. - The company is vulnerable to concentration risks as operations are primarily located in the Austin, Texas area, which may expose it to negative changes in local economic conditions[92]. - The company relies on third-party project-level equity financing and may face difficulties raising additional capital on acceptable terms due to high costs of debt and equity capital[94]. - Strategic relationships with key tenants are crucial for the company's business, and any deterioration in these relationships could lead to higher vacancy rates and reduced cash flow[95]. - The company is exposed to risks from joint ventures, including potential conflicts with partners and financial obligations that may require additional funding[97]. - Adverse weather conditions and geopolitical instability in Texas markets could negatively impact business operations and financial results[99]. - Rising inflation and interest rates have adversely affected the real estate industry, with continued impacts expected in 2024 and beyond[115]. - The company maintains insurance coverage, but certain catastrophic losses may be uninsurable, potentially leading to significant financial impacts[101]. - Cybersecurity incidents pose risks to the company's operations, with past incidents not resulting in material loss but future threats evolving[104]. Employee and Sustainability Focus - The company has a total of 33 full-time employees as of December 31, 2023, and emphasizes the importance of human capital management and employee well-being[79]. - The company has made significant investments in sustainability, including projects recognized for sustainable practices and partnerships with organizations like the U.S. Green Building Council[80].

Financial Performance - Net loss attributable to common stockholders was $(14.8) million, or $(1.85) per diluted share, for the year ended December 31, 2023, compared to net income of $90.4 million, or $10.99 per diluted share, in 2022[4]. - Total consolidated revenue decreased to $17.3 million in 2023 from $37.5 million in 2022, primarily due to a lack of undeveloped property sales in 2023[6]. - EBITDA for 2023 was $(10.7) million, compared to $(3.1) million in 2022, indicating a decline in operational performance[5]. - The operating loss for 2023 was $16.95 million, compared to a loss of $7.76 million in 2022, reflecting a significant decline in performance[23]. - Net loss from continuing operations was $16.49 million in 2023, compared to a loss of $7.08 million in 2022[23]. - Stratus reported a net loss from continuing operations of $16.5 million for the year ended December 31, 2023, compared to a loss of $7.1 million in 2022[42]. - EBITDA for 2023 was $(10.7) million, a decline from $(3.1) million in 2022, reflecting a significant decrease in operational performance[42]. Assets and Liabilities - Total assets increased to $517.77 million in 2023, up from $445.14 million in 2022, indicating growth in the company's asset base[26]. - Total liabilities increased to $223.16 million in 2023, up from $173.07 million in 2022, indicating higher debt levels[26]. - Total liabilities rose to $223.2 million in 2023 from $173.1 million in 2022, indicating increased financial obligations[52]. - The gross value of assets increased to $694.4 million in 2023 from $645.7 million in 2022, reflecting growth in asset valuation[52]. Stockholders' Equity - Stratus' total stockholders' equity increased by $33.3 million over the past two fiscal years to $191.5 million at December 31, 2023[4]. - Total stockholders' equity fell to $191.5 million in 2023 from $207.2 million in 2022, highlighting a decline in shareholder value[52]. Cash and Capital Expenditures - Cash and cash equivalents at the end of 2023 were $31.40 million, down from $37.67 million at the end of 2022[26]. - The company has $43.4 million in cash and cash equivalents, primarily from the sale of Block 21 in May 2022[39]. - Capital expenditures and purchases for real estate properties totaled $90.4 million in 2023, up from $79.3 million in 2022, reflecting ongoing development efforts[13]. - The company reported capital expenditures of $90.41 million for 2023, compared to $79.27 million in 2022, reflecting ongoing investment in real estate[35]. Revenue Segments - The Real Estate Operations segment generated revenues of $2.55 million in 2023, a decrease of 89.7% from $24.74 million in 2022[35]. - The Leasing Operations segment reported revenues of $14.72 million in 2023, an increase of 15.4% from $12.75 million in 2022[35]. Dividends and Share Repurchase - The company did not declare any dividends in 2023, compared to $4.67 per share in 2022[23]. - Stratus completed a $10.0 million share repurchase program in October 2023, acquiring 389,378 shares at an average price of $25.68 per share[4]. Future Outlook - Stratus anticipates exploring the sale of five stabilized retail properties to return capital to stockholders as market conditions improve[5]. Appraisal Methodology - Stratus' appraisal methodology includes the cost approach, income capitalization approach, and sales comparison approach, ensuring comprehensive asset valuation[46].

Financial Performance - Total revenues for Q3 2023 were $3.7 million, down from $10.0 million in Q3 2022, and $13.0 million for the first nine months of 2023 compared to $24.2 million in the same period of 2022[109]. - Net loss attributable to common stockholders was $2.8 million, or $0.35 per diluted share in Q3 2023, compared to a net loss of $2.4 million, or $0.29 per diluted share in Q3 2022[110]. - The company recorded a net loss of $13.9 million, or $1.69 per diluted share for the first nine months of 2023, contrasting with a net income of $96.5 million, or $11.50 per diluted share in the same period of 2022, which included a $119.7 million pre-tax gain from the sale of Block 21[110]. - As of September 30, 2023, the company reported an operating loss of $3.329 million for the quarter, compared to a loss of $2.830 million in the same period last year[144]. - The company experienced a net loss from continuing operations of $3.217 million for the three months ended September 30, 2023[144]. - Operating income for the first nine months of 2023 was $3.9 million, down from $8.4 million in the same period of 2022, largely due to a gain on sale of assets recognized in 2022[152]. Cash and Debt Management - As of September 30, 2023, cash and cash equivalents totaled $35.2 million, with an additional $40.5 million available under the revolving credit facility[105]. - The company aims to reduce reliance on its revolving credit facility while maximizing cash flow from stabilized assets and managing capital expenditures in a challenging market environment[105]. - Cash used in operating activities was $39.3 million for the first nine months of 2023, down from $49.3 million in the same period of 2022[163]. - Cash provided by financing activities totaled $66.9 million for the first nine months of 2023, compared to cash used of $9.7 million in the same period of 2022[166]. - As of September 30, 2023, total debt increased to $158.5 million from $123.9 million at December 31, 2022[172]. - The maximum borrowing capacity under the Comerica Bank revolving credit facility was $53.8 million, with $40.5 million available after accounting for $13.3 million in letters of credit[172]. - The company had firm commitments totaling approximately $54 million for construction projects as of September 30, 2023[186]. - The company was in compliance with all financial covenants as of September 30, 2023, despite the Jones Crossing project not passing the debt service coverage ratio test in previous quarters[176]. - The company anticipates sufficient cash flow from stabilized commercial properties to cover debt service over the next 12 months[187]. - The company expects to successfully extend or refinance its debt maturing in the next 12 months[188]. Development Projects - The Holden Hills partnership was established with a land contribution valued at $70.0 million from the company and $40.0 million in cash from a partner, resulting in a cash distribution of $35.8 million to the company[111]. - The company plans to develop 475 unique residences in the Holden Hills project, with Phase I expected to consist of 337 luxury residence sites and 12 single-family platted home sites[118]. - Construction on The Saint June, a 182-unit luxury multi-family project, was completed in November 2023, with approximately 25% of units leased as of September 30, 2023[117]. - The company entered into a development agreement for the Tecoma Improvements, estimated to cost approximately $14.7 million, with a reimbursement of 60% of costs to the Holden Hills partnership[122]. - As of September 30, 2023, the company had $9.2 million remaining to complete the Tecoma Improvements[122]. - The company is progressing development plans for Section N, a 570-acre tract, aiming for a dense, mid-rise, mixed-use project[124]. - The Saint George project, a 316-unit luxury multi-family project, is expected to achieve substantial completion by mid-2024[125]. - The Annie B project is planned as a luxury high-rise with 316 residential units, with construction commencement dependent on financing and market conditions[126]. - The retail component of Magnolia Place has signed leases for all retail space in the first phase, totaling 18,582 square feet[132]. Interest and Taxation - Interest expense increased to $3.4 million in third-quarter 2023 from $1.8 million in third-quarter 2022, driven by rising interest rates and higher average debt balances[156]. - The Federal Reserve raised the federal funds target interest rate by 525 basis points during 2022 and through September 2023, impacting the company's borrowing costs due to variable rate debt[137]. - The company recorded a provision for income taxes of $(0.4) million in third-quarter 2023, consistent with the prior year[158]. Share Repurchase and Stock Management - The company executed a $10.0 million share repurchase program completed in October 2023, and a new $5.0 million share repurchase program was approved in November 2023[101]. - The company repurchased 389,378 shares of common stock for a total cost of $10.0 million at an average price of $25.68 per share[169]. - The company is restricted from repurchasing common stock in excess of $1.0 million without prior consent from Comerica Bank[199]. Risks and Forward-Looking Statements - Forward-looking statements are subject to various risks, including economic downturns and changes in market conditions[200]. - The company cautions that actual results may differ materially from anticipated results due to numerous factors[200]. - Future significant development projects will not incur material costs until adequate financing is secured[188]. - The main source of revenue is anticipated to come from property sales and joint venture distributions, which are difficult to predict[188]. - The company generates cash flow from rental revenue and development fees, but does not expect sufficient recurring cash flow to cover general and administrative expenses[188]. - The unique nature and location of the company's assets are expected to provide positive cash flows and net income over time[188]. - Future operating and financial performance will depend on the ability to sell or lease properties profitably and manage debt obligations[189]. - There have been no changes in critical accounting estimates from those discussed in the 2022 Form 10-K[191].

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37716 Stratus Properties Inc. (Exact name of registrant as specified in its charter) Delaware 72-1211572 (State or other jurisdi ...

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 incorporation or organization) 212 Lavaca Street, Suite 300 Austin TX 78701 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37716 Stratus Properties Inc. (Exact name of regist ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Delaware 72-1211572 (I.R.S. Employer Identification No.) 212 Lavaca St., Suite 300 Austin, Texas 78701 (Address of principal executive offices) (Zip Code) (Stat ...

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37716 Stratus Properties Inc. (Exact name of registrant as specified in its charter) Delaware 72-1211572 incorporation or o ...

Stratus Properties, Inc. (NASDAQ:STRS) Q3 2022 Earnings Conference Call November 14, 2022 11:00 AM ET Company Participants Beau Armstrong - Chairman, President and Chief Executive Officer Erin Pickens - Chief Financial Officer Conference Call Participants Operator Good day and welcome to the Stratus Properties Third Quarter 2022 Financial and Operational Conference Call. Earlier this morning, Stratus released its third quarter 2022 financial results and provided business updates, which are available on its ...

Stratus Properties Inc. (NASDAQ:STRS) Q2 2022 Earnings Conference Call August 15, 2022 11:00 AM ET Company Participants Beau Armstrong - Chairman, President and Chief Executive Officer Erin Pickens - Chief Financial Officer Conference Call Participants Chris Mooney - Wedbush Securities Richard Diamond - Castlewood Capital Operator Good day and welcome to the Stratus Properties Second Quarter 2022 Financial and Operational Conference Call. Earlier this morning Stratus released its second quarter 2022 financ ...

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37716 Stratus Properties Inc. (Exact name of registrant as specified in its charter) Delaware 72-1211572 (State or other jurisdi ...