Stratus(US:STRS)2020-11-09 20:19Financial Data and Key Metrics Changes - Consolidated revenues totaled $12.8 million in Q3 2020, down from $22.3 million in Q3 2019, primarily due to the adverse impact of the COVID-19 pandemic on hotel and entertainment operations [31] - Net loss attributable to common stockholders was $15.1 million or $1.84 per share in Q3 2020, compared to a net loss of $3 million or $0.36 per share in Q3 2019 [32] - EBITDA was negative $0.6 million in Q3 2020, down from positive $2.7 million in Q3 2019, reflecting the pandemic's impact [34] Business Line Data and Key Metrics Changes - Revenue from Real Estate operations was $5 million in Q3 2020, up from $2.6 million a year ago, with operating income increasing to $1.4 million from $211,000 [35] - Leasing operations revenue totaled $6 million in Q3 2020, up from $5.2 million last year, while operating income slightly decreased to $1.2 million from $1.3 million [37] - Hotel revenues fell to $1.6 million in Q3 2020 from $8.8 million in Q3 2019, with an operating loss of $2.6 million compared to operating income of $930,000 [39] - Entertainment revenues dropped to $367,000 in Q3 2020 from $6.2 million in Q3 2019, resulting in an operating loss of $1.3 million compared to operating income of $1.1 million [42] Market Data and Key Metrics Changes - Total rent collections for retail properties were 84% of scheduled rents, while multifamily properties achieved 99%, leading to a combined total of 92% from April through October 2020 [16] - The average hotel occupancy was approximately 16% in Q3 2020, a slight increase from 12% in Q2 2020 [41] Company Strategy and Development Direction - The long-term strategy focuses on delivering shareholder returns through selling, refinancing, and leasing properties, which remains unchanged despite the pandemic [10] - The company is exploring a potential conversion to a Real Estate Investment Trust (REIT), which may provide significant tax benefits and improve liquidity [25][26] - Future phases of Barton Creek are being planned, and leasing activity continues despite the pandemic [22] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's ability to withstand market challenges and capitalize on vibrant economies in chosen markets [12] - The company expects to meet financial obligations through 2021 and is evaluating refinancing opportunities to take advantage of low interest rates [20][46] - Management acknowledges the ongoing impacts of the pandemic but believes in the importance of their projects to the community [52] Other Important Information - Consolidated debt totaled $368.6 million and cash totaled $13.4 million as of September 30, 2020 [44] - The company has a strong pipeline of opportunities and believes it is well-positioned to create value as the business environment recovers [53] Q&A Session Summary - The Q&A session was opened for participants to ask questions regarding the company's performance and future strategies [54]