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Item 1. Financial Statements

2024-08-13 compared with 2024-05-14 · 137 added, 73 removed, 321 unchanged (40% of the section changed)

34 unchanged sentences

STRATUS PROPERTIES INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited)

(In Thousands, Except Per Share Amounts)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Real estate operations $ 3,629 $ 58 $ 25,752 $ 2,551

8 unchanged sentences

Total 11,410 8,882 34,232 20,277

Operating income (loss) 3,685 ( 5,593 )

Operating (loss) income ( 2,920 ) ( 5,352 ) 765 ( 10,945 )

Loss on extinguishment of debt — — ( 59 ) —

Other income, net 186 544 359 1,029

Income (loss) before income taxes and equity in unconsolidated affiliates' loss 3,799 ( 5,108 )

(Loss) income before income taxes and equity in unconsolidated affiliate's loss ( 2,734 ) ( 4,808 ) 1,065 ( 9,916 )

Provision for income taxes ( 44 ) ( 498 ) ( 146 ) ( 1,660 )

Equity in unconsolidated affiliates' loss — ( 3 )

Net income (loss) and total comprehensive income (loss) 3,697 ( 6,273 )

Equity in unconsolidated affiliate's loss — ( 3 ) — ( 6 )

Net (loss) income and total comprehensive (loss) income ( 2,778 ) ( 5,309 ) 919 ( 11,582 )

Total comprehensive loss attributable to noncontrolling interests 1,053 8 1,908 480

Net income (loss) and total comprehensive income (loss) attributable to common stockholders $ 4,552 $ ( 5,801 )

Basic net income (loss) per share attributable to common stockholders $ 0.57 $ ( 0.73 )

Diluted net income (loss) per share attributable to common stockholders $ 0.56 $ ( 0.73 )

Net (loss) income and total comprehensive (loss) income attributable to common stockholders $ ( 1,725 ) $ ( 5,301 ) $ 2,827 $ ( 11,102 )

Net (loss) income per share attributable to common stockholders (basic and diluted) $ ( 0.21 ) $ ( 0.66 ) $ 0.35 $ ( 1.39 )

Weighted-average shares of common stock outstanding:

8,072 7,990 8,049 7,988

Diluted 8,072 7,990 8,172 7,988

3 unchanged sentences

(In Thousands)

Three Months Ended

Six Months Ended

Cash flow from operating activities:

Net income (loss) $ 919 $ ( 11,582 )

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization 2,803 1,898

5 unchanged sentences

Purchases and development of real estate properties ( 16,317 ) ( 21,084 )

Decrease (increase) in other assets 948 ( 2,945 )

Decrease in other assets 1,018 601

Decrease in accounts payable, accrued liabilities and other ( 7,644 ) ( 123 )

Net cash provided by (used in) operating activities 6,547 ( 18,404 )

Net cash used in operating activities ( 1,716 ) ( 26,754 )

Cash flow from investing activities:

12 unchanged sentences

Net cash (used in) provided by financing activities ( 213 ) 50,137

Net (decrease) increase in cash, cash equivalents and restricted cash ( 10,904 ) 14,075

Net decrease in cash, cash equivalents and restricted cash ( 18,471 ) ( 569 )

Cash, cash equivalents and restricted cash at beginning of year 32,432 45,709

18 unchanged sentences

Balance at March 31, 2024 9,664 $ 97 $ 199,674 $ 31,197 1,599 $ ( 33,395 ) $ 197,573 $ 102,271 $ 299,844

Vested stock-based awards 12 — — — — — — — —

Director fees paid in shares of common stock — — 6 — — — 6 — 6

Stock-based compensation — — 434 — — — 434 — 434

Total comprehensive loss — — — ( 1,725 ) — — ( 1,725 ) ( 1,053 ) ( 2,778 )

Balance at June 30, 2024 9,676 $ 97 $ 200,114 $ 29,472 1,599 $ ( 33,395 ) $ 196,288 $ 101,218 $ 297,506

STRATUS PROPERTIES INC.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Continued)

(In Thousands)

Stockholders’ Equity

Held in Treasury Total

Common Stock Capital in Excess of Par Value Retained Earnings Noncontrolling Interests in Subsidiaries

Common Stock Capital in Excess of Par Value Retained Earnings (Accumulated Deficit) Noncontrolling Interests in Subsidiaries

of Shares At Par

9 unchanged sentences

Balance at March 31, 2023 9,479 $ 94 $ 196,308 $ 35,651 1,503 $ ( 31,181 ) $ 200,872 $ 104,353 $ 305,225

Vested stock-based awards 93 2 — — — — 2 — 2

Director fees paid in shares of common stock — — 6 — — — 6 — 6

Stock-based compensation — — 505 — — — 505 — 505

Tender of shares for stock-based awards — — — — 28 ( 573 ) ( 573 ) — ( 573 )

Common stock repurchases — — — — 31 ( 695 ) ( 695 ) — ( 695 )

Total comprehensive loss — — — ( 5,301 ) — — ( 5,301 ) ( 8 ) ( 5,309 )

Balance at June 30, 2023 9,572 $ 96 $ 196,819 $ 30,350 1,562 $ ( 32,449 ) $ 194,816 $ 104,345 $ 299,161

The accompanying Notes to Consolidated Financial Statements (Unaudited) are an integral part of these consolidated financial statements.

10 unchanged sentences

In first-quarter 2024, he received $ 22 thousand as an annual incentive award for 2023, and his annual salary was increased to $ 124 thousand.

As of March 31, 2024, the employee had two outstanding awards under the PPIP.

The liability associated with these awards at March 31, 2024 was nominal in amount relative to the consolidated financial statements.

As of June 30, 2024, the employee had two outstanding awards under the PPIP.

The liability associated with these awards at June 30, 2024 was nominal in amount relative to the consolidated financial statements.

Refer to Note 7 for discussion of the PPIP and LTIP.

1 unchanged sentence

EARNINGS PER SHARE

Stratus’ basic net income (loss) per share of common stock was calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average shares of common stock outstanding during the period.

A reconciliation of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating diluted net income (loss) per share follows (in thousands, except per share amounts):

Three Months Ended

Net income (loss) and total comprehensive income (loss) 3,697 ( 6,273 )

Stratus’ basic net (loss) income per share of common stock was calculated by dividing the net (loss) income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period.

A reconciliation of net (loss) income and weighted-average shares of common stock outstanding for purposes of calculating diluted net (loss) income per share follows (in thousands, except per share amounts):

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Net (loss) income and total comprehensive (loss) income $ ( 2,778 ) $ ( 5,309 ) $ 919 $ ( 11,582 )

Total comprehensive loss attributable to noncontrolling interests 1,053 8 1,908 480

Net income (loss) and total comprehensive income (loss) attributable to common stockholders $ 4,552 $ ( 5,801 )

Net (loss) income and total comprehensive (loss) income attributable to common stockholders $ ( 1,725 ) $ ( 5,301 ) $ 2,827 $ ( 11,102 )

Basic weighted-average shares of common stock outstanding

8,072 7,990 8,049 7,988

Add shares issuable upon vesting of dilutive restricted stock units (RSUs) a

Diluted weighted-average shares of common stock outstanding

Basic net income (loss) per share attributable to common stockholders $ 0.57 $ ( 0.73 )

Diluted net income (loss) per share attributable to common stockholders $ 0.56 $ ( 0.73 )

For the first three months of March 31, 2024, excludes 21 thousand shares of common stock associated with RSUs that were anti-dilutive.

For the first three months of March 31, 2023, excludes 295 thousand shares of common stock associated with RSUs that were anti-dilutive as a result of the net loss.

8,072 7,990 8,172 7,988

Net (loss) income per share attributable to common stockholders (basic and diluted) $ ( 0.21 ) $ ( 0.66 ) $ 0.35 $ ( 1.39 )

Excludes 187 thousand shares for second-quarter 2024, 222 thousand shares for second-quarter 2023 and 259 thousand shares for the first six months of 2023 of common stock associated with RSUs that were anti-dilutive as a result of net losses.

Excludes 23 thousand shares for the first six months of 2024 of common stock associated with RSUs that were anti-dilutive.

LIMITED PARTNERSHIPS

2 unchanged sentences

The Saint George Apartments, L.P.

( 10.0 percent indirect equity interest), Stratus Block 150, L.P.

( 10.0 percent indirect equity

interest), Stratus Block 150, L.P.

( 31.0 percent indirect equity interest), The Saint June, L.P.

38 unchanged sentences

Stratus will continue to re-evaluate which entity is the primary beneficiary of these partnerships in accordance with applicable accounting guidance.

The cash and cash equivalents held at these limited partnerships are subject to restrictions on distribution to the parent company pursuant to the individual partnership loan agreements.

The cash and cash equivalents held at these limited partnerships are subject to restrictions on distribution to Stratus pursuant to the individual partnership loan agreements.

Stratus’ consolidated balance sheets include the following assets and liabilities of the partnerships, net of intercompany balances (including the operating loans made by Stratus), which are eliminated (in thousands):

15 unchanged sentences

Net assets $ 122,543 $ 122,968

Substantially all of the assets are available to settle only obligations of the partnerships.

Substantially all of the assets are available to settle obligations of the partnerships only.

The Kingwood Place construction loan has a 25.0 percent repayment guaranty and The Saint George construction loan has a completion guaranty and a 25.0 percent repayment guaranty.

5 unchanged sentences

The Oaks at Lakeway.

Stratus has remaining lease obligations pursuant to Pad Site Master Leases entered into in connection with the sale of The Oaks at Lakeway, as described in Note 9 of the Stratus 2023 Form 10-K under the heading “Deferred Gain on Sale of The Oaks at Lakeway.” A related contract liability is presented as a deferred gain in the consolidated balance sheets in the amount of $ 2.5 million at March 31, 2024 and $ 2.7 million at December 31, 2023.

The reduction in the deferred gain balance primarily reflects Pad Site Master Lease payments.

The remaining deferred gain balance is expected to be reduced primarily by future Pad Site Master Lease payments.

Stratus has remaining lease obligations pursuant to a Pad Sites Master Lease entered into in connection with the sale of The Oaks at Lakeway, as described in Note 9 of the Stratus 2023 Form 10-K under the heading “Deferred Gain on Sale of The Oaks at Lakeway.” A related contract liability is presented as a deferred gain in the consolidated balance sheets in the amount of $ 2.4 million at June 30, 2024 and $ 2.7 million at December 31, 2023.

The reduction in the deferred gain balance primarily reflects Pad Sites Master Lease payments.

The remaining deferred gain balance is expected to be reduced primarily by future Pad Sites Master Lease payments.

Amarra Villas.

In second-quarter 2024, Stratus sold one of the Amarra Villas homes for $ 3.6 million.

In first-quarter 2024, Stratus sold two of the Amarra Villas homes for a total of $ 7.6 million.

1 unchanged sentence

Magnolia Place.

In first-quarter 2024, Stratus completed the sale of approximately 47 acres of undeveloped land planned for a second phase of retail development, all remaining pad sites and up to 600 multi-family units, for $ 14.5 million.

In first-quarter 2024, Stratus completed the sale of approximately 47 acres of undeveloped land in Magnolia, Texas planned for a second phase of retail development, all remaining pad sites and up to 600 multi-family units, for $ 14.5 million.

In connection with the sale, the Magnolia Place construction loan, which had a balance of $ 8.8 million, was repaid.

20 unchanged sentences

22,817 22,961

Amarra Villas revolving credit facility 9,888 15,682

Holden Hills 10,285 5,736

Amarra Villas credit facility

West Killeen Market

1 unchanged sentence

$ 178,315 $ 175,168

Includes net reductions for unamortized debt issuance costs of $ 1.9 million at March 31, 2024, and $ 2.2 million at December 31, 2023.

Includes net reductions for unamortized debt issuance costs of $ 1.7 million at June 30, 2024, and $ 2.2 million at December 31, 2023.

Comerica Bank revolving credit facility.

As of March 31, 2024, the maximum amount that could be borrowed under the Comerica Bank revolving credit facility was $ 52.9 million, resulting in availability of $ 39.6 million, net of letters of credit.

As of June 30, 2024, the maximum amount that could be borrowed under the Comerica Bank revolving credit facility was $ 52.9 million, resulting in availability of $ 39.6 million, net of letters of credit.

Letters of credit, totaling $ 13.3 million, have been issued under the revolving credit facility, $ 11.0 million of which secure Stratus’ obligation to build certain roads and utilities facilities benefiting Holden Hills and Section N and $ 2.3 million of which secure Stratus’ obligation to construct and pay for certain utility infrastructure in Lakeway, Texas.

8 unchanged sentences

The Annie B land loan.

In February 2024, The Annie B land loan was modified to extend the maturity to September 1, 2025, and change the interest rate to the Term SOFR Rate plus 3.00 percent.

Under the Annie B land loan, the Term SOFR Rate is defined as one-month Term SOFR plus 0.10 percent and is subject to a floor of 0.50 percent.

In connection with the modification, Stratus made a $ 1.4 million principal payment on the loan and is required to make another principal payment of $ 630 thousand in February 2025.

Amarra Villas revolving credit facility.

In February 2024, The Annie B land loan was modified to extend the maturity to September 1, 2025, and change the interest rate to Term SOFR Rate plus 3.00 percent.

Under the Annie B land loan, Term SOFR Rate is defined as one-month Term SOFR plus 0.10 percent and is subject to a floor of 0.50 percent.

connection with the modification, Stratus made a $ 1.4 million principal payment on the loan and is required to make another principal payment of $ 630 thousand in February 2025.

Amarra Villas credit facility.

In June 2024, the Amarra Villas credit facility was modified to, among other things, extend the maturity to June 19, 2026, change the interest rate to Term SOFR Rate plus 3.00 percent (subject to a floor of 5.00 percent) and lower the commitment amount from $ 18.0 million to $ 10.5 million.

Under the Amarra Villas credit facility, Term SOFR Rate is defined as one-month Term SOFR plus 0.10 percent and is subject to a floor of 0.50 percent.

Principal paydowns occur as homes are sold, and amounts are borrowed as homes are constructed.

Paydowns made in connection with a sale of an Amarra Villas home reduce the commitment amount by the amount of the payment, and such amounts may not be re-borrowed.

In second-quarter 2024, Stratus made a $ 3.5 million principal payment on the credit facility upon the closing of a sale of one of the Amarra Villas homes.

In first-quarter 2024, Stratus made principal payments totaling $ 7.2 million on the credit facility upon the closing of the sales of two of the Amarra Villas homes.

4 unchanged sentences

Interest Expense and Capitalization.

Interest costs (before capitalized interest) totaled $ 4.0 million in first-quarter 2024 and $ 2.4 million in first-quarter 2023.

All of Stratus’ interest costs during first-quarter 2024 and first-quarter 2023 were capitalized.

Capitalized interest is primarily related to development activities at Barton Creek (primarily Holden Hills, Section N and The Saint June), The Saint George and The Annie B for both periods presented.

The Comerica Bank revolving credit facility, Amarra Villas revolving credit facility, The Annie B land loan, The Saint George construction loan, Kingwood Place construction loan and Holden Hills construction loan require Comerica Bank’s prior written consent for any common stock repurchases in excess of $ 1.0 million or any dividend payments.

Interest costs (before capitalized interest) totaled $ 3.9 million in second-quarter 2024, $ 2.9 million in second-quarter 2023, $ 7.9 million for the first six months of 2024 and $ 5.3 million for the first six months of 2023.

All of these interest costs were capitalized for all periods presented.

Capitalized interest is primarily related to development activities at our Barton Creek properties (primarily Holden Hills, Section N and The Saint June) and The Saint George for all periods presented.

The Comerica Bank revolving credit facility, Amarra Villas credit facility, The Annie B land loan, The Saint George construction loan, Kingwood Place construction loan and Holden Hills construction loan require Comerica Bank’s prior written consent for any common stock repurchases in excess of $ 1.0 million or any dividend payments.

On September 1, 2022, with written consent from Comerica Bank, Stratus’ Board of Directors (Board) declared a special cash dividend of $ 4.67 per share (totaling $ 40.0 million) on Stratus’ common stock, which was paid on September 29, 2022 to stockholders of record as of September 19, 2022.

Accrued liabilities included $ 0.3 million as of March 31, 2024, and $ 0.6 million as of December 31, 2023, representing dividends accrued for unvested RSUs in accordance with the terms of the awards.

Accrued liabilities included $ 0.3 million as of June 30, 2024, and $ 0.6 million as of December 31, 2023, representing dividends accrued for unvested RSUs in accordance with the terms of the awards.

The accrued dividends are paid to the holders of the RSUs as the RSUs vest.

8 unchanged sentences

The repurchase program authorizes Stratus, in management’s and the Capital Committee of the Board’s discretion, to repurchase shares from time to time, subject to market conditions and other factors.

As of March 31, 2024, Stratus had not purchased any shares under the new program.

As of June 30, 2024, Stratus had not purchased any shares under the new program.

PROFIT PARTICIPATION INCENTIVE PLAN AND LONG-TERM INCENTIVE PLAN

1 unchanged sentence

In February 2023, the Committee approved the LTIP, which amends and restates the PPIP, and is effective for participation interests awarded under development projects on or after its effective date.

Outstanding participation interests granted under the PPIP will continue to be governed by the terms of the prior PPIP.

Outstanding participation interests granted under the PPIP will

continue to be governed by the terms of the prior PPIP.

The PPIP and LTIP provide participants with economic incentives tied to the success of the development projects designated by the Committee as approved projects under the PPIP and LTIP.

2 unchanged sentences

In July 2023, Kingwood Place reached a valuation event under the PPIP and Stratus obtained an appraisal of the property to determine the payout under the PPIP.

The accrued liability under the PPIP related to Kingwood Place was reduced to $ 1.6 million at December 31, 2023, and was settled in RSUs with a three-year vesting period awarded to eligible participants in first-quarter 2024.

Under the terms of the PPIP and LTIP, the number of RSUs granted in connection with settlement of approved projects is determined by reference to the 12-month trailing average stock price for the year the project reaches a payment event, whereas the grant date fair value of the RSUs for accounting purposes is based on the grant date closing price.

A summary of PPIP and LTIP costs follows (in thousands):

Three Months Ended

A summary of PPIP/LTIP costs follows (in thousands):

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Charged to general and administrative expense

Capitalized to project development costs 111 110

Total PPIP and LTIP costs

At March 31, 2024, the PPIP included Amarra Villas, Jones Crossing, Magnolia Place Phase I and The Saint June, and the LTIP included The Saint George.

The accrued liability for the PPIP and LTIP totaled $ 1.8 million at March 31, 2024, and $ 3.1 million at December 31, 2023 (included in other liabilities).

$ 76 $ 141 $ 159 $ 289

Capitalized (credited) to project development costs 2 ( 9 ) 113 101

Total PPIP/LTIP costs

$ 78 $ 132 $ 272 $ 390

At June 30, 2024, outstanding awards under the PPIP included Amarra Villas, Jones Crossing – Retail, Magnolia Place and The Saint June, and outstanding awards under the LTIP included The Saint George.

The accrued liability for the PPIP and LTIP totaled $ 1.9 million at June 30, 2024, and $ 3.1 million at December 31, 2023 (included in other liabilities).

Stratus’ accounting policy for and other information regarding its income taxes are further described in Notes 1 and 7 in the Stratus 2023 Form 10-K.

Stratus has a full valuation allowance against its U.S.

Federal net deferred tax assets as of both March 31, 2024 and December 31, 2023.

Stratus has recorded a deferred tax asset totaling $ 173 thousand at both March 31, 2024 and December 31, 2023 related to state income taxes.

Federal net deferred tax assets as of both June 30, 2024 and December 31, 2023.

Stratus has recorded a deferred tax asset totaling $ 173 thousand at both June 30, 2024 and December 31, 2023 related to state income taxes.

In evaluating the recoverability of the remaining deferred tax assets, management considered available positive and negative evidence, giving greater weight to the uncertainty regarding projected future financial results.

1 unchanged sentence

Stratus’ future results of operations may be negatively impacted by an inability to realize a tax benefit for future tax losses or for items that will generate additional deferred tax assets that are not more likely than not to be realized.

The difference between Stratus’ consolidated effective income tax rate of 3 percent for the first three months of 2024 and the U.S.

The difference between Stratus’ consolidated effective income tax rate of 14 percent for the first six months of 2024 and the U.S.

Federal statutory income tax rate of 21 percent was primarily attributable to state income taxes, noncontrolling interests in subsidiaries, the presence of a valuation allowance against its U.S.

Federal net deferred tax assets as of March 31, 2024, and the executive compensation limitation.

The difference between Stratus’ consolidated effective income tax rate of ( 23 ) percent for the first three months of 2023 and the U.S.

Federal net deferred tax assets as of June 30, 2024, and the executive compensation limitation.

The difference between Stratus’ consolidated effective income tax rate of ( 17 ) percent for the first six months of 2023 and the U.S.

Federal statutory income tax rate of 21 percent was primarily attributable to state income taxes, noncontrolling interests in subsidiaries, the presence of a valuation allowance against certain U.S.

Federal deferred tax assets as of March 31, 2023, and the executive compensation limitation.

Federal deferred tax assets as of June 30, 2023, and the executive compensation limitation.

On August 16, 2022, the IR Act was enacted in the United States.

Among other provisions, the IR Act imposes a new one percent excise tax on the fair market value of net corporate stock repurchases made by covered corporations, effective for tax years beginning after December 31, 2022.

Among other provisions, the IR Act imposes a new one percent excise tax on the fair market value of net corporate stock repurchases made by covered

corporations, effective for tax years beginning after December 31, 2022.

Stratus recorded $ 22 thousand in such excise taxes in first-quarter 2024 for share repurchases in 2023.

9 unchanged sentences

in Lakeway, Texas, located in the greater Austin area (Lakeway);

in College Station, Texas (land for future

phases of retail and multi-family development and retail pad sites at Jones Crossing);

in College Station, Texas (land for future phases of retail and multi-family development and retail pad sites at Jones Crossing);

and in Magnolia, Texas (potential development of approximately 11 acres planned for future multi-family use), Kingwood, Texas (a retail pad site) and New Caney, Texas (New Caney), each located in the greater Houston area.

5 unchanged sentences

Stratus’ revenues from contracts with customers follow (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Real Estate Operations:

1 unchanged sentence

Undeveloped property sales — — 14,500 —

Commissions and other 4 58 4 58

3,629 58 25,752 2,551

Leasing Operations:

Rental revenue 4,861 3,472 9,245 6,781

4,861 3,472 9,245 6,781

Total revenues from contracts with customers $ 8,490 $ 3,530 $ 34,997 $ 9,332

Financial Information by Business Segment.

Summarized financial information by segment for the three months ended March 31, 2024, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):

Summarized financial information by segment for the three months ended June 30, 2024, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):

Leasing Operations Corporate, Eliminations and Other b

Unaffiliated customers $ 3,629 $ 4,861 $ — $ 8,490

Cost of sales, excluding depreciation ( 15,278 ) ( 1,678 ) — ( 16,956 )

Cost of sales, excluding depreciation and amortization

( 4,424 ) ( 1,742 ) — ( 6,166 )

Depreciation and amortization ( 44 ) ( 1,374 ) 16 ( 1,402 )

General and administrative expenses — — ( 3,842 ) ( 3,842 )

Operating income (loss) $ 6,801 $ 1,333 $ ( 4,449 ) $ 3,685

Operating (loss) income $ ( 839 ) $ 1,745 $ ( 3,826 ) $ ( 2,920 )

Capital expenditures and purchases and development of real estate properties

$ 7,360 $ 8,001 $ — $ 15,361

Total assets at March 31, 2024 c

Total assets at June 30, 2024 c

342,089 159,314 12,613 514,016

1 unchanged sentence

Includes consolidated general and administrative expenses and eliminations of intersegment amounts.

Corporate, eliminations and other includes cash, cash equivalents and restricted cash of $ 19.4 million.

Summarized financial information by segment for the three months ended March 31, 2023, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):

Corporate, eliminations and other includes cash and cash equivalents and restricted cash of $ 12.6 million.

Summarized financial information by segment for the three months ended June 30, 2023, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):

Leasing Operations Corporate, Eliminations and Other b

1 unchanged sentence

Cost of sales, excluding depreciation and amortization

( 2,697 ) ( 1,144 ) — ( 3,841 )

Depreciation and amortization ( 50 ) ( 924 ) 4 ( 970 )

3 unchanged sentences

$ 12,057 $ 13,471 $ — $ 25,528

Total assets at March 31, 2023 c

Total assets at June 30, 2023 c

328,033 111,928 45,794 485,755

1 unchanged sentence

Includes consolidated general and administrative expenses and eliminations of intersegment amounts.

Corporate, eliminations and other includes cash, cash equivalents and restricted cash of $ 57.0 million.

Corporate, eliminations and other includes cash and cash equivalents and restricted cash of $ 43.2 million.

The remaining cash and cash equivalents and restricted cash is reflected in the operating segments’ assets.

Summarized financial information by segment for the six months ended June 30, 2024, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):

Leasing Operations Corporate, Eliminations and Other b

Unaffiliated customers $ 25,752 $ 9,245 $ — $ 34,997

Cost of sales, excluding depreciation and amortization

( 19,702 ) ( 3,420 ) — ( 23,122 )

Depreciation and amortization ( 88 ) ( 2,747 ) 32 ( 2,803 )

General and administrative expenses — — ( 8,307 ) ( 8,307 )

Operating income (loss) $ 5,962 $ 3,078 $ ( 8,275 ) $ 765

Capital expenditures and purchases and development of real estate properties

$ 16,317 $ 16,142 $ — $ 32,459

Includes sales commissions and other revenues together with related expenses.

Includes consolidated general and administrative expenses and eliminations of intersegment amounts.

Summarized financial information by segment for the six months ended June 30, 2023, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):

Leasing Operations Corporate, Eliminations and Other b

Unaffiliated customers $ 2,551 $ 6,781 $ — $ 9,332

Cost of sales, excluding depreciation and amortization

( 2,405 ) — ( 9,589 )

Depreciation and amortization ( 77 ) ( 1,830 ) 9 ( 1,898 )

General and administrative expenses — — ( 8,790 ) ( 8,790 )

Operating (loss) income $ ( 4,710 ) $ 2,546 $ ( 8,781 ) $ ( 10,945 )

Capital expenditures and purchases and development of real estate properties

$ 21,084 $ 23,477 $ — $ 44,561

Includes sales commissions and other revenues together with related expenses.

Includes consolidated general and administrative expenses and eliminations of intersegment amounts.

SUBSEQUENT EVENTS

Stratus evaluated events after March 31, 2024, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements.

Stratus evaluated events after June 30, 2024, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements