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, 2025 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 jurisdictio ...

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Stratus Properties Inc. Financial and Media Contact: 212 Lavaca St., Suite 300 William H. Armstrong III Austin, Texas 78701 (512) 478-5788 NEWS RELEASE NASDAQ Symbol: "STRS" STRATUS PROPERTIES INC. REPORTS YEAR ENDED DECEMBER 31, 2025 RESULTS AUSTIN, TX, March 27, 2026 - Stratus Properties Inc. (NASDAQ: STRS), a residential and retail focused real estate company with operations in the Austin, Texas area and other select markets in Texas, today reported year ended December 31, 2025 results. Highlights and Re ...

AUSTIN, Texas--(BUSINESS WIRE)--Stratus Properties Inc. (NASDAQ: STRS) ("Stratus†or the "Company†) today announced that its Board of Directors (the "Board†) has unanimously approved a plan of complete liquidation and dissolution (the "Plan†) following conclusion of the strategic review announced on March 11, 2026. The Plan provides that the Company will be dissolved and will conduct an orderly sale of all or substantially all of the Company's assets and distribute the net proceeds to the Compa. ...

Stratus Properties Inc. Board of Directors Announces Conclusion of Strategic Alternatives Review and Pursuit of Plan to Sell Assets and Distribute Net Proceeds to StockholdersMar 11, 2026 5:00 PM Eastern Daylight Time# Stratus Properties Inc. Board of Directors Announces Conclusion of Strategic Alternatives Review and Pursuit of Plan to Sell Assets and Distribute Net Proceeds to StockholdersShare---AUSTIN, Texas-- (BUSINESS WIRE)--Stratus Properties Inc. (NASDAQ: STRS) ("Stratus†or the "Company†) today an ...

Analyst Recommendations - Stratus Properties has a rating score of 1.00, with one strong buy rating and one sell rating, while MJ has a rating score of 0.00 with no ratings [2]. Risk & Volatility - Stratus Properties has a beta of 1.28, indicating its share price is 28% more volatile than the S&P 500, while MJ has a beta of -0.18, indicating its share price is 118% less volatile than the S&P 500 [3]. Insider & Institutional Ownership - 61.6% of Stratus Properties shares are owned by institutional investors, and 10.0% are owned by insiders. In comparison, 35.9% of MJ shares are owned by insiders, suggesting stronger institutional confidence in Stratus Properties for long-term growth [4]. Earnings and Valuation - Stratus Properties reported gross revenue of $54.18 million, a price/sales ratio of 4.24, and a net income of $1.96 million, with an earnings per share of -$1.01 and a price/earnings ratio of -28.47. Stratus Properties has higher revenue and earnings compared to MJ [6]. Profitability - Stratus Properties has a net margin of -25.38%, a return on equity of -2.57%, and a return on assets of -1.46%. MJ's profitability metrics are not available [8]. Company Overview - Stratus Properties is a real estate company focused on the entitlement, development, management, leasing, and sale of residential and commercial properties primarily in the Austin, Texas area. MJ Holdings is a cannabis holding company involved in cultivation management and production of cannabis-related products in Nevada [10].

Core Viewpoint - Stratus Properties Inc. (STRS) has demonstrated significant stock performance, gaining 31.3% over the past six months, outperforming the industry average of 12% and competitors like CBRE Group and Brookfield Corporation [1] Group 1: Business Operations - Stratus is a real estate development company based in Austin, TX, focusing on entitlement, development, management, leasing, and sale of residential and retail properties, particularly in multi-family and mixed-use projects [2] - Revenue streams include property sales, leasing of retail and multi-family properties, and development and asset management fees through joint ventures [2][3] - The company operates independently and with third-party equity partners, maintaining a diverse portfolio of income-producing assets, properties under construction, and undeveloped land [3] Group 2: Key Tailwinds - Stratus has improved liquidity through strategic asset sales and joint ventures, notably receiving a $47.8 million distribution from the Holden Hills Phase 2 transaction [4] - The company has completed sales of Lantana Place – Retail and West Killeen Market, generating pre-tax net cash proceeds of $26.9 million and $7.8 million, respectively [4] - With $55 million in consolidated cash and access to revolving credit, Stratus is well-positioned for new developments, debt repayment, and shareholder-friendly actions [5] Group 3: Development Pipeline - Stratus controls approximately 1,500 acres of land and is advancing multiple projects, including Holden Hills Phases 1 and 2, The Saint Julia, and The Annie B [9] - Infrastructure construction for Holden Hills Phase 1 is nearing completion, and the partnership for Phase 2 provides capital for further planning [9] Group 4: Challenges - The company faces challenges such as elevated construction and labor costs, inflationary pressures, and a $2.8 million charge from terminating a lease for a planned project [10] - Stratus' real estate operations segment reported a loss of $9.6 million for the first nine months of 2025 due to weak sales activity [10] Group 5: Valuation - Stratus is currently trading at 10.9X trailing 12-month EV/sales value, which is higher than the industry average of 3.75X and its peers, CBRE Group (1.31X) and Brookfield (4.27X) [11] Group 6: Conclusion - The company's strong cash position, bolstered by high-value asset sales, supports reinvestment and capital return to shareholders, with growth potential in Texas markets [12] - However, persistent cost pressures and slower residential sales warrant caution for investors [12][13]

Core Viewpoint - Stratus Properties Inc. is exploring strategic alternatives to maximize shareholder value, including potential sale, dissolution, share repurchases, and other financial transactions [1][3]. Group 1: Strategic Alternatives - The Board of Directors has initiated a process to evaluate a comprehensive range of strategic alternatives with the help of independent financial and legal advisors [1][4]. - No specific timetable has been set for the conclusion of this evaluation, and no decisions have been made regarding potential strategic alternatives [3]. Group 2: Asset Sale - Stratus has entered into an agreement to sell Kingwood Place for $60.8 million, which is expected to generate approximately $26 million in pre-tax net cash proceeds after costs [2]. - The sale of Kingwood Place represents a premium to its pre-tax net asset value, and Stratus owns about 60% of this project through a limited partnership [2]. Group 3: Company Overview - Stratus Properties Inc. is primarily engaged in the entitlement, development, management, leasing, and sale of residential and commercial real estate in Texas, particularly in the Austin area [5]. - The company has a development portfolio of approximately 1,500 acres of commercial and residential projects, and generates revenue from property sales, leasing, and management fees [5].

Core Insights - Stratus Properties Inc. reported a net loss of 62 cents per share for Q3 2025, a significant increase from a net loss of 5 cents per share in the same quarter last year [1] - The company's revenues fell 44% to $5 million from $8.9 million in Q3 2024, primarily due to the absence of real estate sales [2] - Stratus incurred a net loss attributable to common stockholders of $5 million, compared to a net loss of $0.4 million in the prior year [2] Financial Performance - EBITDA turned negative at $5.5 million for the quarter, down from a modest $0.01 million in Q3 2024 [3] - Real estate operations posted a segment loss of $4.5 million, worsening from a $1.4 million loss in the previous year [3] - Leasing operations remained stable with revenue flat at $4.9 million, but segment profit decreased significantly from $3.3 million in the year-ago period [4] Management Commentary - The CEO highlighted the strategic repositioning efforts and announced an agreement to sell Lantana Place – Retail for approximately $57.4 million, which will help repay a project loan [5] - The company maintains a strong liquidity profile with a cash balance of $55 million and no outstanding draws on its revolving credit facility as of September 30, 2025 [6] Factors Influencing Results - The decline in revenues and profits was primarily driven by a sharp decrease in property sales, with real estate operations generating only $0.05 million in revenue compared to $4 million in the prior year [7] - The termination of a potential development project resulted in a $2.9 million write-off of previously capitalized planning costs [8] - General and administrative expenses rose to $3.9 million from $3.4 million, reflecting higher compensation and overhead costs [8] Other Developments - In October 2025, Stratus entered into an amended agreement to sell Lantana Place – Retail, expected to close in Q4 2025, with proceeds used to repay a project loan of $29.8 million [10] - The company repurchased 180,899 shares at an average price of $21.59 per share, totaling $3.9 million, with $21.1 million remaining under the share repurchase authorization [11]

Revenue Performance - Revenues totaled $5.0 million in Q3 2025 and $21.6 million for the first nine months of 2025, down from $8.9 million and $43.9 million in the same periods of 2024, respectively[110] - The decrease in revenues for Q3 2025 was primarily due to no sales of Amarra Villas homes compared to a $4.0 million sale in Q3 2024[110] - Revenues from developed property sales were $0 for the three months ended September 30, 2025, compared to $3,950,000 for the same period in 2024[149] Net Loss and Operating Performance - The net loss attributable to common stockholders was $(5.0) million, or $(0.62) per diluted share in Q3 2025, compared to a net loss of $(0.4) million, or $(0.05) per diluted share in Q3 2024[112] - The company reported an operating loss of $8,093,000 for the three months ended September 30, 2025, compared to an operating loss of $1,519,000 for the same period in 2024[145] - Net loss attributable to common stockholders was $4,978,000 for the three months ended September 30, 2025, compared to a net loss of $364,000 for the same period in 2024[145] Cash Flow and Liquidity - As of September 30, 2025, consolidated cash was $55.0 million, with an additional $17.5 million available under a revolving credit facility[96] - Cash used in operating activities totaled $24.1 million for the first nine months of 2025, compared to $2.4 million for the same period in 2024, primarily due to reduced revenue from fewer property sales[165] - Cash provided by financing activities was $53.9 million for the first nine months of 2025, significantly higher than $5.3 million for the same period in 2024[168] Development Projects - The company has a development portfolio of approximately 1,500 acres of commercial and residential projects under development or undeveloped land[92] - The company anticipates starting home construction or selling home sites in Holden Hills Phase 1 in 2026, pending regulatory approvals[119] - The company secured rights to develop a multi-family project on 35 acres in Lakeway, Texas, with construction of required infrastructure set to begin in Q4 2025[128] Partnerships and Asset Sales - A pre-tax gain of approximately $5.0 million was recorded from the sale of West Killeen Market during the first nine months of 2025[111] - A cash distribution of $47.8 million was received from the Holden Hills Phase 2 partnership during the first nine months of 2025[104] - The company plans to sell Lantana Place – Retail for approximately $57.4 million, expected to close in Q4 2025[104] Rental Revenue and Leasing - Rental revenue for the first nine months of 2025 was $14,749,000, an increase of 4.1% compared to $14,165,000 for the same period in 2024[154] - As of September 30, 2025, the company had signed leases for substantially all of the completed retail space at Jones Crossing, totaling 154,092 square feet, with additional commercial development potential of approximately 104,750 square feet on 22 undeveloped acres[140] - Kingwood Place has constructed 151,877 square feet of retail space, with signed leases for substantially all of the retail space as of September 30, 2025[140] Debt and Financing - As of September 30, 2025, total debt was $205.7 million, an increase from $196.7 million at December 31, 2024[173] - The company expects to successfully extend or refinance outstanding debt maturing in the next 12 months[193] - The company had firm commitments totaling approximately $5.2 million for construction projects as of September 30, 2025, and expects to make a capital contribution of $150 thousand to The Saint George partnership[191] Market Conditions and Future Outlook - Despite macroeconomic challenges, the company remains optimistic about real estate market conditions in Texas over the next 12 months, with strong rental performance at The Saint June and encouraging absorption rates for new multi-family units in downtown Austin[142] - Future operating and financial performance will depend on the ability to sell or lease properties profitably and refinance debt as it becomes due[194] - The company faces risks including increases in operating costs, economic downturns, and changes in market conditions that could affect performance[206] Accounting and Compliance - The company is currently assessing the adoption timing and impact of new accounting standards effective after December 15, 2026[198][199] - As of September 30, 2025, the company was in compliance with all financial covenants across its debt agreements[182] - Under Comerica Bank debt agreements, the company is restricted from repurchasing common stock in excess of $1.0 million without prior consent[204] Share Repurchase Program - The company returned $3.9 million to stockholders through a share repurchase program from 2024 to November 7, 2025[104] - The company has a $25.0 million share repurchase program approved by Comerica Bank[204]