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].

Financial Performance - Revenues for Q2 2023 totaled $3.5 million, down from $11.1 million in Q2 2022, and $9.3 million for the first six months of 2023, compared to $14.2 million in the same period last year[104]. - Net loss for Q2 2023 was $5.3 million, or $0.64 per diluted share, compared to net income of $96.6 million, or $11.53 per diluted share, in Q2 2022[105]. - The company reported an operating loss of $5.352 million for the three months ended June 30, 2023, compared to an operating income of $495,000 for the same period in 2022[138]. - Real Estate Operations generated total revenues of $58,000 for the three months ended June 30, 2023, down from $7.927 million in the same period in 2022[140]. - The company experienced a net loss attributable to common stockholders of $5.301 million for the three months ended June 30, 2023, compared to net income of $96.621 million in the same period in 2022[138]. - Cash used in operating activities totaled $26.8 million for the first six months of 2023, a decrease from $43.6 million in the same period of 2022[155]. - Cash provided by financing activities was $50.1 million for the first six months of 2023, compared to $6.2 million for the same period in 2022[158]. Cash and Debt Management - The company had cash and cash equivalents of $44.1 million and availability under its revolving credit facility of $42.7 million as of June 30, 2023[100]. - Total debt increased to $139.4 million as of June 30, 2023, up from $123.9 million at December 31, 2022[164]. - The company repurchased 369,006 shares for a total of $9.5 million at an average price of $25.61 per share as of June 30, 2023[161]. - The company entered into a $26.1 million construction loan with Comerica Bank in February 2023, maturing on February 8, 2026, for the Holden Hills project[168]. - The company is restricted from repurchasing common stock exceeding $1.0 million or paying dividends without prior written consent from Comerica Bank[191]. - Future dividends or share repurchase decisions will depend on financial results, cash requirements, and compliance with debt covenants[191]. Project Developments - The Holden Hills partnership was established with a land contribution valued at $70 million and a cash contribution of $40 million from a partner, resulting in a cash distribution of $35.8 million to the company[106]. - 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[113]. - The Tecoma Improvements, estimated to cost approximately $14.7 million, will provide necessary access and utilities for the Holden Hills development, with the company responsible for 60% of the costs[117]. - The Saint June project, a 182-unit luxury multi-family development, is expected to be completed in September 2023, with the first units ready for occupancy in July 2023[112]. - The company is developing Section N, a 570-acre mixed-use project, which is anticipated to significantly increase development density compared to prior plans[119]. - The Saint George project, a 316-unit luxury multi-family project, is expected to achieve substantial completion by mid-2024[120]. - The Annie B project, a proposed luxury high-rise rental project, aims to begin construction in late 2024 or 2025, subject to financing[121]. - The retail component of Magnolia Place includes up to four retail buildings totaling approximately 34,000 square feet, with 89% of the first phase tenants open for business as of June 30, 2023[127]. Operational Challenges - The company does not expect to generate sufficient recurring cash flow to cover general and administrative expenses but anticipates positive cash flows over time from its unique asset locations[99]. - Current market conditions include high inflation and tightening bank credit, which are adversely affecting cash flows and projected profitability of new projects[133]. - General and administrative expenses rose to $4.1 million in Q2 2023 from $3.4 million in Q2 2022, an increase of about 20.6%[147]. - Interest expense increased to $2.9 million in Q2 2023 from $1.5 million in Q2 2022, reflecting rising interest rates and increased average debt balances[148]. - The company acknowledges that actual results may differ materially from forward-looking statements due to various risks, including economic downturns and supply chain constraints[192]. - Key risks include increases in operating costs, market conditions, and the ability to collect anticipated rental payments[193]. - The company may face challenges in developing, constructing, and leasing properties on acceptable terms due to rising inflation and interest rates[193]. - Future performance is subject to changes in buyer preferences and competition from other real estate developers[193]. Future Projections - The company aims to reduce reliance on its revolving credit facility while managing capital expenditures and maximizing cash flow from stabilized assets[100]. - The company projects that it will meet the DSCR test over the next 12 months if an additional principal payment of approximately $1.2 million is made in August 2023[169]. - The company expects to successfully extend or refinance debt maturing in the next 12 months[180]. - The company anticipates making additional operating loans of up to $3 million over the next 12 months to support Stratus Block 150, L.P.[178]. - The weighted-average interest rate for the Jones Crossing loan increased to 7.19% for the three months ended June 30, 2023, compared to 2.91% in the same period of 2022[176].

Financial Performance - Revenues for Q1 2023 totaled $5.8 million, a 87.1% increase from $3.1 million in Q1 2022, primarily due to the sale of one Amarra Villas home[101] - Net loss attributable to common stockholders for Q1 2023 was $5.8 million, or $0.71 per diluted share, compared to net income of $2.3 million, or $0.27 per diluted share, in Q1 2022[102] - The company reported an operating loss of $5.6 million for the three months ended March 31, 2023, compared to an operating income of $1.5 million for the same period in 2022[130] - Rental revenue increased to $3.3 million in Q1 2023 from $3.1 million in Q1 2022, primarily due to revenue from Magnolia Place, which had no rental revenue in Q1 2022[135] - Interest expense increased to $2.4 million in Q1 2023 from $1.1 million in Q1 2022, reflecting rising interest rates and increased average debt balances[139] - Consolidated general and administrative expenses rose to $4.7 million in Q1 2023 from $3.2 million in Q1 2022, mainly due to higher compensation costs and new consulting fees[138] Project Developments - The Holden Hills project consists of 495 acres, with Phase I expected to develop 337 luxury residence sites and is projected to start building homes in late 2024 or 2025[109][111] - The Tecoma Improvements for Holden Hills are estimated to cost approximately $14.7 million, with the company responsible for 60% of the costs[112] - The Saint June project, a 182-unit luxury multi-family development, is expected to be completed in Q3 2023, with first units ready for occupancy in June 2023[108] - The Saint George project, a 316-unit luxury multi-family development, is expected to achieve substantial completion by mid-2024[116] - The Annie B project, a proposed luxury high-rise rental project, aims to begin construction in late 2023 or 2024, subject to financing[117] - The Saint Julia project is a 306-unit multi-family development in Austin, with construction expected to begin in 2024, subject to financing and market conditions[118] - In October 2022, the company contracted to sell approximately 11 acres for $4.3 million, planned for 275 multi-family units in Magnolia Place, expected to close by mid-2024[119] Cash Flow and Financing - Cash used in operating activities totaled $18.4 million in Q1 2023, slightly up from $18.1 million in Q1 2022[145] - Cash used in investing activities was $10.2 million in Q1 2023, down from $14.9 million in Q1 2022[146] - Cash provided by financing activities increased significantly to $42.7 million in Q1 2023 from $13.5 million in Q1 2022[147] - Total debt as of March 31, 2023, was $129.4 million, up from $123.9 million at the end of 2022[153] - The company received a $40.0 million contribution from a noncontrolling interest owner related to the Holden Hills partnership in Q1 2023[148] - As of March 31, 2023, the company had $50.9 million in cash and cash equivalents, with no borrowings under the revolving credit facility[152] - The company anticipates seeking additional debt to finance the development of Phase II of Holden Hills and is pursuing other development projects[125] Debt and Interest Rates - The weighted-average interest rate for the Jones Crossing loan increased to 6.73% in Q1 2023 from 2.42% in Q1 2022[163] - The maturity date of the revolving credit facility was extended to March 27, 2025, with modified interest terms[154] - As of March 31, 2023, the interest rate for the revolving credit facility was 8.67 percent[167] Risks and Future Outlook - The main source of revenue and cash flow is expected to come from sales of properties to third parties or distributions from joint ventures, which are difficult to predict[168] - The company does not expect to generate sufficient recurring cash flow to cover general and administrative expenses each period[168] - Future operating and financial performance will depend on the ability to sell or lease properties profitably and extend or refinance debt as it becomes due[169] - The company is not permitted to repurchase common stock in excess of $1.0 million or pay dividends without prior written consent from Comerica Bank[178] - Forward-looking statements are subject to various risks, including economic downturns, supply chain constraints, and changes in market conditions[179] - The company cautions that actual results may differ materially from those anticipated in forward-looking statements due to numerous factors[181] - There have been no changes in critical accounting estimates from those discussed in the 2022 Form 10-K[171]

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 ...

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, 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. (Registrant's telephone number, including area code) Securities registered pursuant to Section 12 ...