4 unchanged sentences
The results of operations reported and summarized below are not necessarily indicative of future operating results, and future results could differ materially from those anticipated in forward-looking statements (refer to “Cautionary Statement” and Part I, Item 1A.
−Removed: “Risk Factors” of our 2024 Form 10-K and Part II, Item 1A.
−Removed: “Risk Factors” herein for further discussion).
+Added: “Risk Factors” of our 2025 Form 10-K for further discussion).
All subsequent references to “Notes” refer to Notes to Consolidated Financial Statements (Unaudited) located in Part I, Item 1.
6 unchanged sentences
Refer to Note 9 for discussion of our operating segments and “Business Strategy” below for a discussion of our business strategy.
+Added: In December 2025, our Board initiated a review of strategic alternatives to maximize stockholder value.
+Added: On March 24, 2026, after concluding that review and following consultation with external financial, tax and legal advisors, our Board approved, subject to stockholder approval, a plan of complete liquidation and dissolution of us (Plan of Liquidation) and announced an estimated range of potential liquidating distributions.
+Added: If approved by our stockholders, the Plan of Liquidation provides that we will be dissolved, and we will conduct an orderly sale of all or substantially all of our assets and distribute the net proceeds over time to our stockholders, after payment of or reasonable provision for our liabilities and obligations, in accordance with the provisions of the Delaware General Corporation Law.
+Added: Accordingly, historical results may not be indicative of future periods, and our capital allocation, financing, operating and disposition decisions are being evaluated in light of the Plan of Liquidation.
BUSINESS STRATEGY
−Removed: Our primary business objective is to create value for stockholders by methodically developing and enhancing the value of our properties and then selling them or holding them for lease.
−Removed: We endeavor to sell properties at times when we believe market conditions are favorable to us.
−Removed: We are focused on the development of pure residential and residential-centric mixed-use projects in Austin and other select markets in Texas, which we believe continue to be attractive locations.
−Removed: Our successful development program of securing and maintaining development entitlements, developing and stabilizing properties, and selling them or holding them as part of our Leasing Operations is a key element of our strategy.
−Removed: We may also seek to refinance properties in order to benefit from, when available, an increase in the value of the property or from lower interest rates, or for other reasons.
−Removed: From time to time, when deemed appropriate by our Board of Directors (the Board) and permitted pursuant to the terms of our debt agreements, we may return capital to stockholders, as we did in 2022 and 2017 with special cash dividends totaling approximately $40 million and $8 million, respectively, and as we did during 2022 and 2023 through our $10.0 million share repurchase program, which was completed in October 2023.
−Removed: In November 2023, our Board approved a new $5.0 million share repurchase program, and in June 2025, our Board approved an increase in the share repurchase program to $25.0 million.
−Removed: As of November 7, 2025, we had repurchased $3.9 million of our shares under the program.
−Removed: Largely as a result of the cash distribution from the Holden Hills Phase 2 partnership and recent property sales, as of September 30, 2025, we had consolidated cash of $55.0 million and $17.5 million available under our revolving credit facility, net of $11.6 million of letters of credit committed against the facility.
−Removed: Subsequent to the end of the third quarter, we also entered into an agreement, as amended, to sell Lantana Place – Retail for approximately $57.4 million, which, if completed, will yield significant cash proceeds after payoff of the project loan.
−Removed: Refer to Note 6 for further discussion of our debt.
−Removed: Our Board is carefully exploring opportunities for the use of cash from the Holden Hills Phase 2 partnership and recent and pending asset sales, which will be based on evolving market conditions and may include a combination of further share repurchases, deleveraging, reinvesting in Stratus’ project pipeline and/or other cash returns to stockholders.
−Removed: Our investment strategy focuses on projects that we believe will provide attractive long-term returns, while limiting our financial risk.
−Removed: We plan to continue to develop properties using project-level debt and third-party equity capital through joint ventures in which we receive development management fees and asset management fees, with our
+Added: Our primary objective is to maximize value for stockholders.
+Added: On March 24, 2026, after concluding the strategic alternatives review announced in December 2025, our Board approved the Plan of Liquidation and determined to submit it to our stockholders for approval.
+Added: In connection with the Plan of Liquidation, we announced an estimated range of potential liquidating distributions of $29.73 to $37.69 per share.
+Added: Pending stockholder approval of the Plan of Liquidation, our near-term strategy is to preserve and enhance the value of our assets, and, where appropriate, monetize our properties in a manner intended to optimize value, continue to operate and lease our stabilized properties, complete or fund only those development, infrastructure, maintenance and other activities that we believe are necessary or advisable to preserve and enhance value or facilitate monetization, manage our debt and other obligations, seek any required lender, partner and third-party consents, and opportunistically pursue asset sales at times and on terms that our Board believes are favorable.
+Added: Our capital allocation and financing decisions are being evaluated in light of the Plan of Liquidation and may differ from the approach described in prior periods.
+Added: If stockholders do not approve the Plan of Liquidation, then we will continue our corporate existence and the Board expects to continue our current business strategy and may further explore strategic alternatives.
+Added: The Plan of Liquidation has not been approved by our stockholders, and there can be no assurance that stockholder approval will be obtained or that the Plan of Liquidation will be implemented on the currently contemplated terms or timetable.
+Added: The current business and investment strategy reflected in this report does not reflect our anticipated business and investment strategy if stockholders approve the Plan of Liquidation.
+Added: For additional discussion, refer to Part I, Item 1A.
+Added: “Risk Factors” in our 2025 Form 10-K.
Table of Conten ts
−Removed: potential returns increasing above our relative equity interest in certain projects as negotiated return hurdles are achieved.
−Removed: Refer to Note 3.
+Added: When deemed appropriate by our Board of Directors (the Board) and permitted pursuant to the terms of our debt agreements, we have returned capital to stockholders, as we did in 2022 and 2017 with special cash dividends totaling approximately $40 million and $8 million, respectively, and as we did during 2022 and 2023 through our $10.0 million share repurchase program, which was completed in October 2023.
+Added: In November 2023, our Board approved a new $5.0 million share repurchase program, and in June 2025, our Board approved an increase in the share repurchase program to $25.0 million.
+Added: Largely as a result of a cash distribution from the Holden Hills Phase 2 partnership and recent property sales, including the sales of Lantana Place – Retail, which generated pre-tax cash proceeds of approximately $26.9 million, and Kingwood Place, which generated pre-tax cash proceeds of $16.2 million, as of March 31, 2026, we had consolidated cash and cash equivalents of $73.5 million and $24.7 million available under our revolving credit facility, net of $3.4 million of letters of credit committed against the facility.
+Added: Refer to Note 6 herein and Note 6 of our 2025 Form 10-K for further discussion of our debt.
+Added: Our current investment strategy focuses on projects that we believe will provide attractive long-term returns, while limiting our financial risk.
+Added: We plan to continue to develop properties using project-level debt and third-party equity capital through joint ventures in which we receive development management fees and asset management fees, with our potential returns increasing above our relative equity interest in certain projects as negotiated return hurdles are achieved.
+Added: Refer to Note 3 herein and Note 2 of our 2025 Form 10-K.
We expect to continue our limited use of our revolving credit facility and to retain sufficient cash to operate our business, taking into account risks associated with changing market conditions and the variability in cash flows from our business.
Our main sources of revenue and cash flow are expected to be sales of our properties to third parties, debt financings and distributions from joint ventures, the timing of and proceeds from which are difficult to predict and depend on market conditions and other factors.
−Removed: We also generate cash flow from rental income in our Leasing Operations and from development and asset management fees received from our properties.
+Added: We also generate cash flow from rental income in our Leasing Operations segment and from development and asset management fees received from our properties.
Due to the nature of our development-focused business, we do not expect to generate sufficient recurring cash flow to cover our general and administrative expenses each period.
−Removed: However, we believe that the unique nature and location of our assets, and our team’s ability to execute successfully on development projects, have provided and will continue to provide us with positive cash flows and net income over time, as evidenced by our sales of The Santal and The Saint Mary in 2021 and Block 21 in 2022, the cash distributions from the Holden Hills Phase 1 partnership in 2023 and the Holden Hills Phase 2 partnership in June 2025 and our other property sales in 2024 and the first nine months of 2025.
−Removed: Further, we believe our investment strategy, current liquidity and portfolio of projects provide us with many opportunities to increase value for our stockholders.
−Removed: We do not currently have any material commitments to contribute additional cash to our joint venture projects or wholly owned development projects other than the potential additional $10.0 million of capital that we may be required to contribute to our Holden Hills Phase 1 partnership and our share (related to Holden Hills Phase 2) of the cost of the Tecoma Improvements (as defined below).
−Removed: As of September 30, 2025, our share of the estimated remaining costs for the completed Tecoma Improvements totaled $346 thousand.
−Removed: However, over the past two years and in the first nine months of 2025, we made operating loans, advances and capital contributions to our joint ventures.
+Added: However, we believe that the unique nature and location of our assets, and our team’s ability to execute successfully on development projects, have provided and will continue to provide us with positive cash flows and net income over time, as evidenced by our sales of The Santal and The Saint Mary in 2021 and Block 21 in 2022, Lantana Place – Retail in November 2025, and Kingwood Place in January 2026, the cash distributions from the Holden Hills Phase 1 partnership in 2023 and the Holden Hills Phase 2 partnership in June 2025 and our other property sales in 2025 and 2026.
+Added: We do not currently have any material commitments to contribute additional cash to our joint venture projects or wholly owned development projects other than the potential additional $10.0 million of capital that we may be required to contribute to our Holden Hills Phase 1 joint venture.
+Added: However, since 2023, we made operating loans, capital contributions and advances to our joint ventures.
Refer to Note 3 herein and Note 2 of the 2025 Form 10-K for further discussion.
−Removed: Over the next 12 months, we anticipate making future operating loans to the limited partnership for The Annie B totaling up to $1.8 million and a capital contribution to the limited partnership for The Saint George of $150 thousand, representing our 10 percent equity share of debt service and project costs needed by the partnership.
−Removed: Our estimates of future operating loans and capital contributions are based on current estimates of future costs of the partnerships.
+Added: We anticipate making future operating loans or advances to the limited partnerships for The Annie B, The Saint George and Holden Hills Phase 1 totaling up to $6.0 million over the next 12 months.
+Added: Our estimates of future operating loans or advances are based on estimates of future costs of the partnerships.
Refer to Note 3 and “Capital Resources and Liquidity” for further discussion.
In addition, our development plans for future projects require significant additional capital.
−Removed: We have faced difficult conditions in the real estate business over the past two years and in the first nine months of 2025.
+Added: We were challenged by difficult conditions in the real estate business over the past three years.
Interest rates, which began rising in 2022, continued to increase during 2023, and costs remained elevated.
−Removed: During 2024, interest rates stabilized, and in the latter part of 2024 and the first nine months of 2025, interest rates generally declined;
+Added: During 2024, interest rates stabilized, and in the latter part of 2024 and through 2025, interest rates generally declined;
however, costs remained elevated.
1 unchanged sentence
The market for new suburban multi-family development has continued to face headwinds.
−Removed: Nevertheless, we made important progress executing our business strategy during 2024 and the first nine months of 2025.
−Removed: The Federal Reserve lowered interest rates in September 2024 for the first time in four years, and lowered interest rates again in November and December 2024 and in September and October 2025.
−Removed: We took advantage of lower interest rates and the success of our projects to refinance or amend certain of our project loans.
−Removed: In fourth-quarter 2024 and again in September 2025, we extended the maturity of The Saint June construction loan for additional one-year terms at lower rates and generated aggregate additional cash proceeds of approximately $2.8 million after closing costs.
−Removed: We also refinanced the Kingwood Place construction loan with a three-year term loan at a lower rate and generated additional cash proceeds of approximately $2.0 million after partnership expenses, closing costs and distributions to noncontrolling interest holders.
−Removed: In January 2025, we refinanced the Lantana Place construction loan with a four-year term loan at a lower rate and generated additional cash proceeds of approximately $3.0 million after property taxes and closing costs.
−Removed: In March 2025, we refinanced the Jones Crossing loan with a three-year term loan at a lower rate and generated additional cash proceeds of approximately $1.2 million after closing costs.
−Removed: In March 2025, we amended our revolving credit facility, extending the term and lowering the interest rate.
−Removed: During 2024, we sold 47 acres of undeveloped land at Magnolia Place for $14.5 million and also sold Magnolia Place – Retail for $8.9 million.
−Removed: We sold five homes at Amarra Villas for a total of $18.9 million and one Amarra Drive Phase III lot for $1.4 million.
−Removed: Also, in 2024, among other things, we completed the lease-up of The Saint June multi-family project, completed construction of six Amarra Villas homes, continued construction on The Saint George multi-family project and advanced road and utility infrastructure construction on Holden Hills Phase 1.
+Added: Nevertheless, we made important progress executing our business strategy during 2025 and into 2026.
+Added: Accordingly, we have been continuing to work to maintain our business, operate our stabilized retail and multi-family properties, advance our projects under construction or development, control costs and advance entitlements, relationships and opportunities to position us to capture value.
+Added: We also expect that, if market rates continue to decline, interest on our outstanding debt, all of which is variable rate, will continue to decline.
+Added: We believe we have sufficient liquidity and access to capital to sell properties when market conditions are favorable to us and to hold or refinance our properties or to continue to develop our properties, as applicable, through the market cycle.
+Added: We expect to re-evaluate our strategy as sales and development progress on the projects in our portfolio and as market conditions continue to evolve, and pending
Table of Conten ts
−Removed: During the first nine months of 2025, we received a $47.8 million cash distribution from the Holden Hills Phase 2 partnership.
−Removed: In addition, we sold our stabilized West Killeen Market retail project for $13.3 million and two homes at Amarra Villas for a total of $6.8 million.
+Added: stockholder approval of the Plan of Liquidation.
+Added: However, if the Plan of Liquidation is approved by our stockholders, our business strategy will shift from the continuation of our historical operating and development strategy toward an orderly monetization of assets and winding-down process.
+Added: Under the Plan of Liquidation, we expect to have the ability to continue to develop and/or complete any projects or activities that are in process, so long as we determine that doing so will increase or otherwise enhance the value of the project, property or asset for sale or other disposition.
+Added: During 2025, we received a $47.8 million cash distribution from the Holden Hills Phase 2 partnership.
+Added: In addition, we sold Lantana Place – Retail for $57.5 million, West Killeen Market for $13.3 million and three homes at Amarra Villas for a total of $10.5 million.
We also completed construction on the last two Amarra Villas homes.
−Removed: We substantially completed construction of the road and utility infrastructure for Holden Hills Phase 1, including the required landscaping, enabling us to proceed with Travis County’s acceptance of the roadway.
+Added: We completed construction of the road and utility infrastructure for Holden Hills Phase 1.
The first units of The Saint George were available for occupancy in April 2025 and the project was completed in June 2025.
We have been focusing intently on the development of Holden Hills Phase 1 and on the development plans and future financing of Holden Hills Phase 2.
−Removed: We continued to advance entitlements on our other development projects and to operate our three stabilized retail projects.
−Removed: We also took steps to advance relationships and pursue opportunities related to our development pipeline, positioning ourselves to capture value, subject to market conditions.
−Removed: In October 2025, we sold an Amarra Villa home for $3.7 million.
−Removed: We also entered into an agreement, as amended, to sell Lantana Place – Retail for approximately $57.4 million, which subject to satisfaction of closing conditions, is expected to close in fourth-quarter 2025.
−Removed: In addition, beginning in 2024 and through November 7, 2025, we returned $3.9 million to our stockholders through our share repurchase program.
−Removed: Changes to U.S.
−Removed: tariffs and trade policies during the first nine months of 2025 have introduced additional uncertainties regarding future U.S.
−Removed: real estate market conditions.
−Removed: Refer to Part II, Item 1A.
−Removed: “Risk Factors” herein.
−Removed: We believe we have sufficient liquidity and access to capital to sell properties when market conditions are favorable to us and to hold or refinance our properties or to continue to develop our properties, as applicable, through the market cycle.
−Removed: We expect to re-evaluate our strategy as sales and development progress on the projects in our portfolio and as market conditions continue to evolve.
+Added: In first-quarter 2026, we sold Kingwood Place for $60.8 million.
+Added: In April 2026, we sold one Amarra Villas home for $3.6 million.
+Added: We entered into contracts to sell the New Caney land for $12.7 million and the last Amarra Villas home for $3.6 million, which sales are subject to satisfaction or waiver of closing conditions.
+Added: An offer has been received for the retail component of Jones Crossing, including undeveloped commercial land, for $46.5 million.
+Added: In addition, beginning in 2024 and through April 30, 2026, we returned $5.2 million to our stockholders through our share repurchase program.
OVERVIEW OF FINANCIAL RESULTS
14 unchanged sentences
We also generate income from the sale of our leased properties from time to time, depending on market conditions.
−Removed: Summary Financial Results for the Third-Quarter and First Nine Months of 2025.
−Removed: Our revenues totaled $5.0 million in third-quarter 2025 and $21.6 million for the first nine months of 2025, compared with $8.9 million in third-quarter 2024 and $43.9 million for the first nine months of 2024.
−Removed: The decreases in revenues for the three and nine-month periods were due to decreases in revenues in our Real Estate Operations segment, as revenues from our Leasing Operations segment were consistent for these periods.
−Removed: The $3.9 million decrease in revenues in our Real Estate Operations segment in third-quarter 2025, compared to third-quarter 2024, was primarily a result of the sale of one Amarra Villas home for $4.0 million in third-quarter 2024 compared to no sales in third-quarter 2025.
−Removed: The $22.9 million decrease in revenues from our Real Estate Operations segment in the first nine months of 2025, compared to the first nine months of 2024, was primarily a result of the sales of approximately 47 acres of undeveloped land at Magnolia Place for $14.5 million and four Amarra Villas homes for an aggregate of $15.2 million in the first nine months of 2024, compared with the sales of two Amarra Villas homes in the first nine months of 2025 for $6.8 million.
+Added: Summary Financial Results for First-Quarter 2026.
+Added: Our revenues totaled $3.8 million in first-quarter 2026 compared with $5.0 million in first-quarter 2025.
+Added: Revenues from our Real Estate Operations segment in first-quarter 2026 remained relatively flat compared to first-quarter 2025.
+Added: Revenues from our Leasing Operations segment in first-quarter 2026 decreased compared to first-quarter 2025, primarily due to decreased revenue from Lantana Place – Retail, which was sold in fourth-quarter 2025, and Kingwood Place, which was sold in first-quarter 2026, partially offset by increased revenue from The Saint George, which began lease-up in second-quarter 2025.
+Added: Refer to “Results of Operations” below for further discussion of the results of operations of our segments.
+Added: Our net income attributable to common stockholders totaled $6.6 million, or $0.82 per diluted share in first-quarter 2026, compared to net loss attributable to common stockholders of $(2.9) million, or $(0.36) per diluted share, in first-quarter 2025.
Table of Conten ts
−Removed: During the nine months ended September 30, 2025, we recorded an approximately $5.0 million pre-tax gain on the sale of West Killeen Market.
−Removed: In third-quarter 2024, we recorded an approximately $1.6 million pre-tax gain on the sale of Magnolia Place – Retail.
−Removed: In third-quarter 2025, we terminated a lease for a potential development project in Austin, Texas, and recorded a charge to professional fees of approximately $2.8 million representing previously capitalized architectural, engineering and consulting fees incurred in connection with planning and evaluating the potential project and fees previously paid to the lessor to extend the review period.
−Removed: In third-quarter 2024, we recorded a charge to professional fees of approximately $721 thousand to write off previously capitalized costs related to a change in development plans for one property.
−Removed: The formation of the Holden Hills Phase 2 partnership also contributed to the increase in professional fees and allocated overhead costs in our Real Estate Operations segment in the first nine months of 2025, compared to the first nine months of 2024.
−Removed: In addition, in second-quarter 2025, we recorded a $1.0 million charge in our Real Estate Operations segment related to a write-off as described further below.
−Removed: Refer to “Results of Operations” below for further discussion of our segments.
−Removed: Our net loss attributable to common stockholders totaled $(5.0) million, or $(0.62) per diluted share in third-quarter 2025, compared to net loss attributable to common stockholders of $(0.4) million, or $(0.05) per diluted share, in third-quarter 2024.
−Removed: During the first nine months of 2025 our net loss attributable to common stockholders totaled $(7.6) million, or $(0.94) per diluted share, compared to net income attributable to common stockholders of $2.5 million, or $0.30 per diluted share, during the first nine months of 2024.
−Removed: During the first nine months of 2025, our cash and cash equivalents increased substantially, primarily due to the receipt of a $47.8 million distribution from the formation of the Holden Hills Phase 2 partnership.
−Removed: Refer to Note 3 for further discussion.
RECENT DEVELOPMENT ACTIVITIES
5 unchanged sentences
The Villas at Amarra Drive (Amarra Villas) project is a 20-unit development in Barton Creek.
−Removed: In first-quarter 2024, we sold two of the homes for a total of $7.6 million.
−Removed: In second-quarter 2024, we sold one of the homes for $3.6 million.
−Removed: In third-quarter 2024, we sold one of the homes for $4.0 million.
−Removed: In second-quarter 2025, we completed construction on the last two homes, and we sold two of the homes for a total of $6.8 million.
−Removed: In October 2025, we sold one of the homes for $3.7 million.
−Removed: As of November 7, 2025, two completed homes remain available for sale.
+Added: In April 2026, we sold one Amarra Villas home for $3.6 million.
+Added: In May 2026, we entered into a contract to sell the last Amarra Villas home for $3.6 million, which is subject to satisfaction of closing condtions.
The Saint June.
−Removed: In third-quarter 2021, we began construction on The Saint June, a 182-unit luxury garden-style multi-family project within the Amarra development.
+Added: In third-quarter 2021, we began construction on The Saint June, a 182-unit luxury garden-style multi-family property within the Amarra development.
The first units were available for occupancy in July 2023, and construction was completed in fourth-quarter 2023.
−Removed: We completed the lease-up of The Saint June during 2024.
+Added: We completed the initial lease-up of The Saint June during 2024.
+Added: As of March 31, 2026, occupancy at The Saint June was approximately 95 percent.
Holden Hills Phase 1.
−Removed: Our final large residential development within the Barton Creek community, Holden Hills Phase 1, consists of 495 acres.
−Removed: The community has been designed to feature unique luxury residences to be developed in multiple sections with a focus on health and wellness, sustainability and energy conservation.
+Added: Our final large residential development within the Barton Creek community, Holden Hills Phase 1, consists of approximately 495 acres.
+Added: The current conceptual design of the community features unique luxury residences to be developed in multiple sections with a focus on health and wellness, sustainability and energy conservation.
We entered into a limited partnership agreement with a third-party equity investor for Holden Hills Phase 1 in January 2023, and in February 2023 obtained construction financing for road and utility infrastructure of Holden Hills Phase 1.
−Removed: We have substantially completed the initial road and utility infrastructure, including the required landscaping, enabling us to proceed with Travis County’s acceptance of the roadway.
−Removed: The County’s acceptance of the roadway will then permit us to continue efforts to replat the initial portion of Holden Hills Phase 1 to take advantage of changes in regulations, which we believe will result in improved home sites.
−Removed: As a result of the removal of Holden Hills Phase 1 from Austin’s extraterritorial jurisdiction (ETJ) pursuant to Texas Senate Bill 2038 (the ETJ Law), as described below, our development plans for portions of Holden Hills Phase 1 are being adjusted to benefit from the new regulatory scheme.
−Removed: We anticipate being in a position to start building homes and/or selling home sites in 2026, assuming regulators timely fulfill their permit processing obligations and there are no further changes in the regulatory environment.
+Added: We have completed the initial road and utility infrastructure, including the required landscaping, enabling us to obtain Travis County’s acceptance of the roadway.
+Added: The County’s acceptance of the roadway will permit us to continue efforts to replat Holden Hills Phase 1 in an effort to take advantage of changes in regulations, which we believe may result in improved home sites.
+Added: As a result of the removal of Holden Hills Phase 1 from Austin’s ETJ pursuant to the ETJ Law, as described below, we are working on modifications to our development plans for portions of Holden Hills Phase 1 to benefit from the new regulations.
+Added: However, challenges to the ETJ Law and the City of Austin’s recent letter reversing its prior certification of the release of Holden Hills Phases 1 and 2 from the City’s ETJ (refer to – ETJ Process below), are expected to cause delays in implementing development plans and selling home sites.
+Added: We may also, in the future, decide to build homes on certain of the home sites, depending on market conditions, available financing and other factors.
For additional discussion, refer to Items 1.
“Business and Properties” in our 2025 Form 10-K.
−Removed: Table of Conten ts
−Removed: Further, we entered into a development agreement with the Holden Hills Phase 1 partnership (Development Agreement) pursuant to which, as part of the road and utility infrastructure, the Holden Hills Phase 1 partnership has constructed certain street, drainage, water, sidewalk, electric and gas improvements in order to extend the Tecoma Circle roadway on Holden Hills Phase 2 land from its previous terminus to Southwest Parkway (the Tecoma Improvements).
−Removed: As of September 30, 2025, our share of the estimated remaining costs of the completed Tecoma Improvements, primarily the required landscaping, is $346 thousand.
−Removed: We capitalize infrastructure costs and may be eligible to receive Travis County municipal utility district (MUD) reimbursements for certain infrastructure costs incurred in the Barton Creek area.
−Removed: Portions of the costs incurred in connection with the Holden Hills Phase 1 project and the Tecoma Improvements totaling approximately $9.3 million and $6.9 million, respectively, are expected to be eligible to be reimbursed in the future by MUDs.
−Removed: All MUD reimbursements that the Holden Hills Phase 1 partnership receives and is entitled to retain at the partnership level must be applied as payments of principal on the Holden Hills Phase 1 construction loan.
−Removed: The Holden Hills Phase 1 partnership has agreed to deliver to Stratus 60 percent of any MUD reimbursements for Tecoma Improvement costs when such reimbursements are received by the partnership.
+Added: We capitalize infrastructure costs and may be eligible to receive reimbursements from Travis County Municipal Utility Districts (MUDs) for certain infrastructure costs incurred in the Barton Creek area.
+Added: Portions of the costs incurred in connection with the Holden Hills Phase 1 project and the Tecoma Improvements are expected to be eligible to be reimbursed by MUDs.
The amount and timing of MUD reimbursements depends upon each MUD having a sufficient tax base within its district to issue bonds, obtaining the necessary state approval for the sale of the bonds and the successful sale of the bonds, among other things.
Accordingly, the amount and timing of the receipt of MUD reimbursements is uncertain.
−Removed: MUD reimbursements received for infrastructure costs are recorded as reductions of the related asset’s carrying amount.
+Added: All MUD reimbursements that the Holden Hills Phase 1 partnership receives and is entitled to retain at the partnership level must be applied as payments of principal on the Holden Hills Phase 1 construction loan.
+Added: The Holden Hills Phase 1 partnership has agreed to deliver to Stratus 60 percent of any MUD reimbursements for Tecoma Improvement costs when such reimbursements are received by the partnership.
+Added: In April 2026, one of the Barton Creek MUDs sold bonds that resulted in reimbursements of costs incurred in connection with the Holden Hills Phase 1 project and the Tecoma Improvements of approximately $13.0 million and payment of interest of $1.4 million to the Holden Hills Phase 1 partnership and us.
+Added: Of the total, $10.5 million was paid to the Holden Hills Phase 1 partnership, and $3.9 million (including our share of the Tecoma Improvement costs) was paid to us.
+Added: From this bond offering, we also received payment of interest, including interest deferred from previous bond offerings, totaling $1.1 million and reimbursement of other costs of $200 thousand.
+Added: The Holden Hills Phase 1 partnership used its $10.5 million share of the reimbursement and interest to pay down the Holden Hills Phase 1 construction loan.
+Added: MUD reimbursements received for infrastructure costs are recorded as reductions of the related asset’s carrying amount, and interest is recorded as income.
Holden Hills Phase 2.
Our approximately 570-acre tract located along Southwest Parkway in the southern portion of the Barton Creek community, Holden Hills Phase 2, is adjacent to Holden Hills Phase 1.
−Removed: We are planning both Holden Hills Phase 1 and Holden Hills Phase 2 as one interconnected development branded as Holden Hills.
+Added: We are planning both
+Added: Table of Conten ts
+Added: Holden Hills Phase 1 and Holden Hills Phase 2 as one interconnected development branded as Holden Hills.
Holden Hills Phase 2 is being designed as a mixed-use project, including a range of commercial and extensive residential uses, surrounded by extensive outdoor recreational and greenspace amenities.
−Removed: We have removed the majority of Holden Hills Phase 2 from Austin’s ETJ pursuant to the ETJ Law, as described below, and are adjusting our development plans to benefit from the new regulatory scheme, which is expected to result in a significant increase in development density as compared to our prior plans.
+Added: We have worked to remove the majority of Holden Hills Phase 2 from Austin’s ETJ pursuant to the ETJ Law, as described below, and are working on modifications to our development plans to benefit from the new regulatory scheme, which, under favorable market and financing conditions, could accommodate an increase in design flexibility and development density as compared to our prior plans.
+Added: If the new regulatory scheme survives challenge, and we are able to benefit from increased design flexibility and density, we cannot be sure whether the added infrastructure and other costs associated with redesign work and increasing density, coupled with market and financing uncertainty, will make increasing density a profitable risk-rewarded venture.
+Added: Challenges to the ETJ Law and the City of Austin’s recent reversal of its prior certification of the release of Holden Hills Phases 1 and 2, are expected to cause delays in implementing development planning.
We entered into a limited partnership agreement with a third-party equity investor in June 2025 (the Holden Hills Phase 2 partnership) for the development of Holden Hills Phase 2 (Holden Hills Phase 2 project).
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The initial purposes of the Holden Hills Phase 2 partnership do not include the development or construction of horizontal or vertical improvements (each, a future project) and the commencement of any future project will require the approval of all partners.
−Removed: The Holden Hills Phase 2 partnership is working to establish a separate revolving credit facility for the Holden Hills Phase 2 project, which is expected to be sized as needed for future operating costs.
−Removed: The Holden Hills Phase 2 partnership intends to use the facility to reimburse Stratus for approximately $1.6 million of project costs, including certain initial project costs of approximately $0.8 million, fund the approved operating budget for 2025 and fund future partnership activities approved by the partners.
−Removed: Refer to Note 2 for further discussion.
+Added: The Holden Hills Phase 2 partnership is working to establish an approximately $10.0 million revolving credit facility for the Holden Hills Phase 2 project.
+Added: The Holden Hills Phase 2 partnership intends to use the facility to reimburse Stratus for approximately $3.0 million of project costs, including certain initial project costs of approximately $0.8 million, fund the approved operating budget and fund future partnership activities approved by the partners.
ETJ Process .
The ETJ Law became effective September 1, 2023.
−Removed: We have completed the statutory process to remove all of our relevant land subject to development, including primarily Holden Hills Phases 1 and 2, from the extraterritorial jurisdiction (ETJ) of the City of Austin, as permitted by the ETJ Law.
−Removed: We have also made filings with Travis County to grandfather Holden Hills Phases 1 and 2 under most laws in effect in Travis County at the time of the filings.
+Added: We have completed the statutory process to remove all of our relevant land subject to development, including primarily Holden Hills Phases 1 and 2 from the ETJ of the City of Austin, as permitted by the ETJ Law.
+Added: We have also made filings with Travis County in an effort to grandfather Holden Hills Phases 1 and 2 under most laws in effect in Travis County at the time of the filings.
A number of cities in Texas have brought lawsuits challenging the ETJ Law.
−Removed: If the ETJ Law is upheld, we expect that the removal of our properties from the ETJ of the City of Austin will streamline the development permitting process, allow greater flexibility in the design of projects, potentially decrease certain development costs, and potentially permit meaningful increases in development density.
−Removed: In light of the ETJ Law, our development plans for portions of Holden Hills Phases 1 and 2 are being adjusted.
+Added: One lawsuit, initially dismissed on procedural and jurisdictional grounds, has been appealed to a three-judge appellate panel, which after hearing argument on the merits, has taken the matter under advisement.
+Added: There is no certainty as to how or when the appellate court will rule.
+Added: In addition, on March 13, 2026, we received a letter from the City of Austin asserting that it had made an error in certifying the release of our properties from the ETJ in March 2024.
+Added: The City of Austin asserts that it recently discovered that our properties are within five miles of a specific type of military installation, which the City of Austin claims disqualifies our properties for release.
+Added: We are currently reviewing potential challenges to the City of Austin’s reversal of the release of our properties from the ETJ.
+Added: If the ETJ Law is upheld and the removal of our property is permitted by the City of Austin, we will work to confirm whether the removal of our properties from the ETJ of the City of Austin will streamline the development permitting process, allow greater flexibility in the design of projects, potentially decrease certain development costs, and potentially permit meaningful increases in development density.
+Added: If the ETJ Law is not upheld or the City of Austin does not permit the removal of our property from the ETJ, there may be substantial adverse impacts to our development plans, including reduction in aggregate development density, and additional cost and delay.
+Added: In light of the challenges to the ETJ Law, and depending on the outcome of those challenges, our development plans for portions of Holden Hills Phases 1 and 2 may need to be modified.
For additional discussion, refer to Part I, Item 1A.
“Risk Factors” in our 2025 Form 10-K.
−Removed: Table of Conten ts
The Saint George
−Removed: The Saint George is a 316-unit luxury wrap-style, multi-family project in north-central Austin.
−Removed: We purchased the land and entered into third-party equity financing for the project in December 2021.
−Removed: We entered into a construction loan for this project and began construction in third-quarter 2022.
−Removed: The first units were available for occupancy in April 2025 and the project was completed in second-quarter 2025.
−Removed: As of November 7, 2025, we had signed leases for approximately 39 percent of the units.
−Removed: In April 2025, a water leak occurred at The Saint George multi-family project when construction was nearing completion and initial resident move-ins were occurring, resulting in damage that cost $1.9 million to remediate and repair.
+Added: The Saint George is a 316-unit luxury wrap-style, multi-family property in north-central Austin.
+Added: We purchased the land and entered into third-party equity financing for the property in December 2021.
+Added: We entered into a construction loan for this property and began construction in third-quarter 2022.
+Added: The first units were available for occupancy in April 2025 and the property was completed in second-quarter 2025.
+Added: As of April 30, 2026, approximately 82 percent of the units had been leased.
+Added: In April 2025, a water leak occurred at The Saint George multi-family project when construction was nearing completion and initial resident move-ins were occurring, resulting in damage that cost $1.9 million to remediate and
+Added: Table of Conten ts
The event was filed as a builder’s risk insurance claim.
Remediation and repairs were completed in second-quarter 2025.
−Removed: Costs of the remediation and repairs to The Saint George Apartments, L.P., to the extent not covered by the insurance company and the general contractor, are currently estimated to be no more than $1.0 million.
+Added: The Saint George Apartments, L.P.
+Added: will pay $1.0 million of the costs of remediation and repairs, and the remainder will be covered by insurance and the general contractor.
Lakeway Multi-Family
−Removed: After extensive negotiation with the City of Lakeway, utility suppliers and neighboring property owners, we secured the right in 2023 to develop a multi-family project on approximately 35 acres of undeveloped property in Lakeway, Texas located in the greater Austin area.
+Added: After extensive negotiation with the City of Lakeway, utility suppliers and neighboring property owners, during 2023 we secured the right to develop a multi-family project on approximately 35 acres of undeveloped property in Lakeway, Texas located in the greater Austin area.
The multi-family project is expected to utilize the road, drainage and utility infrastructure we are required to build, subject to certain conditions, which is secured by a $2.3 million letter of credit under our revolving credit facility.
−Removed: Construction of the required road infrastructure is scheduled to commence in fourth-quarter 2025.
+Added: Construction of the required road infrastructure began in fourth-quarter 2025 and is expected to be completed by the end of 2026.
+Added: Under our current strategy, our goal is to prepare the site for construction on the multi-family project or to sell the site, as soon as infrastructure construction is complete and market conditions warrant.
Refer to Note 6 and “Capital Resources and Liquidity – Revolving Credit Facility and Other Financing Arrangements” below for additional discussion.
2 unchanged sentences
raised third-party equity capital and entered into a loan to finance part of the costs of land acquisition and budgeted pre-development costs for The Annie B.
−Removed: We continue to work to finalize our development plans and to evaluate whether the project is most profitable as a for rent or for sale product.
−Removed: Our goal is to commence construction as soon as financing and other market conditions warrant.
+Added: We continue to work to finalize our development plans and to evaluate whether the project is more profitable as a for rent or for sale product.
+Added: Under our current strategy, our goal is to prepare the site for construction to commence as soon as financing and other market conditions warrant.
Magnolia Place
−Removed: In first-quarter 2024, we completed the sale of 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.
−Removed: In connection with the sale, the Magnolia Place construction loan, which had a balance of $8.8 million was repaid.
−Removed: Following these sales, we retained our potential development of approximately 11 acres planned for 275 multi-family units and approximately $12 million of costs potentially reimbursable in the future by the Magnolia MUD.
+Added: We own approximately 11 acres planned for 275 multi-family units in Magnolia, Texas, and have approximately $9.5 million of costs potentially reimbursable in the future by the Magnolia MUD, with no project debt.
+Added: In April 2026, the Magnolia MUD sold bonds and we were reimbursed costs totaling $1.6 million and were paid interest of $186 thousand.
+Added: In 2018, we purchased a 38-acre tract of land, in partnership with H-E-B, in New Caney, Texas (in the greater Houston area), originally planned for the future development of an H-E-B-anchored, mixed-use project with approximately 145,000 square feet, five pad sites and approximately 275 multi-family units.
+Added: In March 2026, we entered into a contract to sell the New Caney land for approximately $12.7 million, which is subject to satisfaction of closing conditions.
Other Residential
We have advanced development plans for The Saint Julia, an approximately 210-unit multi-family project that is part of Lantana Place, a partially developed, mixed-use development project located south of Barton Creek in Austin.
−Removed: Our goal is to commence construction or sell the site, as soon as financing and/or market conditions warrant.
−Removed: We continue to evaluate options for the 21-acre multi-family component of Jones Crossing, an H-E-B grocery anchored, mixed-use development located in College Station, Texas.
+Added: Under our current strategy, our goal is to prepare the site for construction to commence as soon as financing and/or market conditions warrant.
+Added: Jones Crossing is an H-E-B-anchored, mixed-use development located in College Station, Texas, the location of Texas A&M University, that also includes a 21-acre multi-family component.
+Added: During 2023, we separated the ground lease for the multi-family parcel from the primary ground lease.
Recent Commercial Activities
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As described above under the heading “Recent Residential Activities,” Holden Hills Phase 2 has been envisioned to include a significant commercial component.
−Removed: Due to the ETJ process, we are adjusting our development plans for Holden Hills Phase 2.
+Added: In light of the challenges to the ETJ Law, and depending on the outcome of those challenges, our development plans for portions of Holden Hills Phases 1 and 2 may need to be modified.
Table of Conten ts
−Removed: Stabilized Retail Projects
−Removed: As of September 30, 2025, we also owned and operated the following stabilized retail projects that we developed:
−Removed: • Jones Crossing is part of our H-E-B-anchored mixed-use project in College Station, Texas, the location of Texas A&M University.
−Removed: As of September 30, 2025, we had signed leases for substantially all of the completed retail space, including the H-E-B grocery store, totaling 154,092 square feet, and a ground lease on one retail pad site.
−Removed: Four retail pad sites remain available for lease.
−Removed: The Jones Crossing site has additional commercial development potential of approximately 104,750 square feet of commercial space on approximately 22 undeveloped acres.
−Removed: • Lantana Place is part of our mixed-use development project within the Lantana community south of Barton Creek in Austin, Texas.
−Removed: As of September 30, 2025, we had signed leases for substantially all of the 99,377-square-foot retail space, including the anchor tenant, Moviehouse & Eatery, and a ground lease for an AC Hotel by Marriott that opened in November 2021.
−Removed: In October 2025, we entered into an agreement, as amended, to sell Lantana Place – Retail for approximately $57.4 million.
−Removed: Subject to satisfaction of closing conditions, the sale is expected to close in fourth-quarter 2025.
−Removed: Using the proceeds from the sale, we expect to repay the project loan with an approximately $29.8 million principal balance as of September 30, 2025.
−Removed: Following the sale, we would retain the property planned for The Saint Julia (discussed above).
−Removed: • Kingwood Place is our H-E-B-anchored, mixed-use development project in Kingwood, Texas (in the greater Houston area).
−Removed: We have constructed 151,877 square feet of retail space at Kingwood Place, including an H-E-B grocery store.
−Removed: As of September 30, 2025, we had signed leases for substantially all of the retail space, including the H-E-B grocery store.
−Removed: We have also signed ground leases on four of the retail pad sites.
−Removed: One retail pad site remains available for lease.
−Removed: In third-quarter 2024, we completed the sale of Magnolia Place – Retail for $8.9 million, generating pre-tax net cash proceeds of approximately $8.6 million and a pre-tax gain of $1.6 million.
−Removed: In second-quarter 2025, we completed the sale of the West Killeen Market retail project for $13.3 million, generating pre-tax net cash proceeds of approximately $7.8 million, after transaction expenses and payment of the remaining $5.2 million project loan, and a pre-tax gain of approximately $5.0 million.
−Removed: We have engaged a broker to explore the potential sale of Kingwood Place, subject to market conditions.
+Added: Jones Crossing – Retail
+Added: As of March 31, 2026, we had signed leases for substantially all of the completed retail space in Jones Crossing, including the H-E-B grocery store, totaling 154,092 square feet, and ground leases on two retail pad sites.
+Added: The retail component of Jones Crossing also includes approximately 22 undeveloped commercial acres with estimated future development potential of approximately 104,750 square feet of commercial space and up to seven retail pad sites available for lease.
+Added: As previously discussed, we received an offer for the retail component of Jones Crossing for $46.5 million and are negotiating a sales contract.
+Added: There can be no assurance that a sales contract will be completed or a sale consummated.
Potential Development Projects and Pipeline
−Removed: Our development plans for The Annie B, The Saint Julia and multi-family projects at Lakeway and College Station will require significant additional capital, which we currently intend to pursue through project-level debt and third-party equity capital arrangements through joint ventures in which we may also receive development management fees and asset management fees and potential returns increasing above our relative equity interest in certain projects as negotiated return hurdles are achieved.
+Added: Our development plans for The Annie B, The Saint Julia and multi-family projects in Lakeway and College Station will require significant additional capital, which we currently intend to pursue through project-level debt and third-party equity capital arrangements through joint ventures in which we may also receive development management fees and asset management fees and potential returns increasing above our relative equity interest in certain projects as negotiated return hurdles are achieved.
We are working to establish a credit facility to fund certain initial project costs and future partnership activities for Holden Hills Phase 2 and anticipate seeking additional debt to finance the future development in Holden Hills Phase 1.
7 unchanged sentences
In response, the Federal Reserve raised the federal funds target rate multiple times from March 2022 through July 2023, by 525 basis points on a cumulative basis.
−Removed: As inflation began to decline, the Federal Reserve began to focus on improving the labor market and price stability.
−Removed: Between September 2024 and September 2025, the Federal Reserve lowered the federal funds target rate by 125 basis points on a cumulative basis, and in October 2025, the Federal Reserve lowered the federal funds target rate by another 25 basis points.
−Removed: Elevated inflation and interest rates increase our costs of materials, services, labor and capital.
+Added: As inflation began to decline, the Federal Reserve’s policy decisions reflected a balancing of progress toward price stability with evolving labor market conditions.
+Added: Between September 2024 and December 2025, the Federal Reserve lowered the federal funds target rate by 175 basis points on a cumulative basis.
+Added: Elevated inflation and interest rates increased our costs of materials, services, labor and capital.
Changing U.S.
−Removed: tariffs and trade policies commencing in the first nine months of 2025 present additional risks to our business.
−Removed: Refer to Part II, Item 1A.
−Removed: “Risk Factors” herein.
−Removed: Table of Conten ts
+Added: tariffs and trade policies commencing in 2025 present additional risks to our business.
+Added: Refer to Part I, Item 1A.
+Added: “Risk Factors” of our 2025 Form 10-K for further discussion.
To manage the risks of rising construction and labor costs, we go through extensive pricing exercises culminating with competitive bids from reputable contractors based on final plans and specifications.
1 unchanged sentence
however, rising costs and delays in delivery of materials may increase the risk of default by contractors and subcontractors.
−Removed: Also, as discussed elsewhere in this report, higher costs and project delays have required us to make operating loans and equity contributions to some of our joint ventures, and we expect to make additional operating loans and capital contributions during the next 12 months.
+Added: Also, as discussed elsewhere in this report, higher costs and project delays have required us to make operating loans, advances and equity contributions to some of our joint ventures, and we expect to make additional operating loans or advances during the next 12 months.
Refer to Part I, Item 1A.
−Removed: “Risk Factors” of our 2024 Form 10-K and Part II, Item 1A.
−Removed: “Risk Factors” herein for more information regarding our risk factors.
+Added: “Risk Factors” of our 2025 Form 10-K for more information regarding our risk factors.
Austin, our primary market, has experienced significant growth in demand for residential projects in recent years, particularly due to growth in the technology-related sector in the region and, during 2020 and 2021 related in part to COVID-19 pandemic-influenced in-migration.
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Despite macroeconomic challenges, we continue to see reasons for optimism regarding real estate market conditions in our Texas markets over the next 12 months, as rents have been strong at The Saint June, absorption of new downtown Austin multi-family units has been encouraging and we continue to see some opportunities for sales transactions for our properties.
+Added: Table of Conten ts
RESULTS OF OPERATIONS
−Removed: We are continually evaluating the development and sale potential of our properties and will continue to consider opportunities to enter into transactions involving our properties, including possible joint ventures, refinancings or other arrangements.
−Removed: As a result, and because of numerous factors affecting our business activities as described herein and in our 2024 Form 10-K, our past operating results are not necessarily indicative of our future results.
+Added: Because of numerous factors affecting our business activities as described herein, our past operating results are not necessarily indicative of our future results.
The following table summarizes our operating results (in thousands):
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2025 2024 2025 2024
−Removed: Operating (loss) income:
+Added: Three Months Ended
+Added: Operating income (loss):
Real Estate Operations a
$ (2,088) $ (1,502)
−Removed: Leasing Operations b
−Removed: 317 3,265 8,609 6,375
−Removed: General and administrative expenses c
−Removed: (3,866) (3,363) (11,474) (11,670)
−Removed: Operating loss (8,093) (1,519) (12,447) (754)
−Removed: Net loss (8,007) (1,414) (14,059) (495)
−Removed: Net (loss) income attributable to common stockholders
+Added: Leasing Operations 23,080 1,958
+Added: General and administrative expenses b
(5,590) (4,051)
+Added: Operating income (loss) $ 15,402 $ (3,595)
+Added: Net income (loss) $ 13,509 $ (3,757)
+Added: Net income (loss) attributable to common stockholders $ 6,627 $ (2,875)
Includes sales commissions and other revenues together with related expenses.
−Removed: The three and nine-month periods ended September 30, 2025 include a charge of approximately $2.8 million representing previously capitalized architectural, engineering and consulting fees incurred in connection with planning and evaluating a potential project that was terminated in third-quarter 2025.
−Removed: The nine-month period ended September 30, 2025 includes a $1.0 million charge to write off receivables, included in other assets on the consolidated balance sheet, from owners of properties previously sold by us for a share of historical costs incurred to develop the land.
−Removed: The nine-month period ended September 30, 2025 includes an approximately $5.0 million pre-tax gain on the sale of the West Killeen Market retail project and a portion of a previously deferred gain of $0.2 million related to The Oaks at Lakeway.
−Removed: The three- and nine-month periods ended September 30, 2024 include a pre-tax gain on the sale of Magnolia Place – Retail for $1.6 million.
−Removed: Refer to Note 4 for further discussion.
Includes employee compensation and other costs.
2 unchanged sentences
The following is a discussion of our operating results by segment.
−Removed: Table of Conten ts
−Removed: We use operating loss before general and administrative expenses to measure the performance of our business segments.
+Added: We use operating income (loss) before general and administrative expenses to measure the performance of our business segments.
General and administrative expenses, which primarily consist of employee salaries, wages and other costs, are managed on a consolidated basis and are not allocated to Stratus’ operating segments.
2 unchanged sentences
The following table summarizes our Real Estate Operations segment results (in thousands):
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2025 2024 2025 2024
−Removed: Developed property sales $ — $ 3,950 $ 6,760 $ 15,198
−Removed: Undeveloped property sales — — — 14,500
+Added: Three Months Ended
Commissions and other 82 25
Total revenues 82 25
−Removed: Segment expenses:
−Removed: Cost of real estate sold — (3,266) (6,244) (20,388)
Property taxes and insurance (349) (357)
4 unchanged sentences
Depreciation and amortization (50) (47)
−Removed: Operating (loss) income $ (4,544) $ (1,421) $ (9,582) $ 4,541
−Removed: Developed Property Sales.
−Removed: The following tables summarize our developed property sales (dollars in thousands):
−Removed: Three Months Ended September 30,
−Removed: Homes Revenues Average Cost Per Home Homes Revenues Average Cost Per Home
−Removed: Amarra Drive:
−Removed: Amarra Villas homes — $ — $ — 1 $ 3,950 $ 3,266
−Removed: Total Residential — $ — 1 $ 3,950
−Removed: Nine Months Ended September 30,
−Removed: Homes Revenues Average Cost Per Home Homes Revenues Average Cost Per Home
−Removed: Amarra Drive:
−Removed: Amarra Villas homes 2 $ 6,760 $ 3,124 4 $ 15,198 $ 3,173
−Removed: Total Residential 2 $ 6,760 4 $ 15,198
−Removed: The decrease in revenues from developed property sales for third-quarter 2025, compared to third-quarter 2024, reflects the sale of one Amarra Villas homes in third-quarter 2024 for $4.0 million compared to no sales in third-quarter 2025.
−Removed: The decrease in revenues for the first nine months of 2025 compared to the first nine months of 2024, reflects the sales of two Amarra Villas homes for $6.8 million in the 2025 period compared to the sales of four Amarra Villas homes for a total of $15.2 million in the 2024 period.
−Removed: Table of Conten ts
−Removed: Undeveloped Property Sales.
−Removed: In first-quarter 2024, we completed the sale of approximately 47 acres of undeveloped land at Magnolia Place that was planned for a second phase of retail development, all remaining pad sites and up to 600 multi-family units, for $14.5 million.
+Added: Operating loss $ (2,088) $ (1,502)
Real Estate Operations Expenses.
−Removed: Real Estate Operations expenses include cost of real estate sold, property taxes and insurance, lease expense, professional fees, allocated overhead costs, other segment items and depreciation and amortization.
+Added: Real Estate Operations expenses include property taxes and insurance, lease expense, professional fees, allocated overhead costs, other segment items and depreciation and amortization.
Other segment items primarily include advertising, property owner association fees, maintenance and utilities.
−Removed: In second-quarter 2025, we recorded a $1.0 million charge to write off receivables, included in other assets on the consolidated balance sheet, from owners of properties previously sold by us for a share of historical costs incurred to develop the land.
−Removed: Cost of real estate sold is directly related to property sales.
−Removed: Cost of real estate sold decreased $3.3 million in third-quarter 2025, compared to third-quarter 2024, primarily due to the sale of one Amarra Villas home in third-quarter 2024 compared to no sales in third-quarter 2025.
−Removed: Cost of real estate sold decreased $14.1 million in the first nine months of 2025, compared to the first nine months of 2024, primarily due to the sales of two Amarra Villas homes in the 2025 period compared to the sale of undeveloped property at Magnolia Place and the sales of four Amarra Villas homes in the 2024 period.
−Removed: In third-quarter 2025, we terminated a lease for a potential development project in Austin, Texas, and recorded a charge to professional fees of approximately $2.8 million representing previously capitalized architectural, engineering and consulting fees incurred in connection with planning and evaluating the potential project and fees previously paid to the lessor to extend the review period.
−Removed: In third-quarter 2024, we recorded a charge to professional fees of approximately $721 thousand to write off previously capitalized costs related to a change in development plans for one property.
−Removed: The formation of the Holden Hills Phase 2 partnership also contributed to the increase in professional fees and allocated overhead costs in our Real Estate Operations segment in the first nine months of 2025, compared to the first nine months of 2024.
+Added: Table of Conten ts
Leasing Operations
The following table summarizes our Leasing Operations segment results (in thousands):
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2025 2024 2025 2024
+Added: Three Months Ended
Rental revenue $ 3,709 $ 5,018
4 unchanged sentences
Other segment items (235) (272)
−Removed: (251) (823) (725)
Depreciation (1,399) (1,347)
+Added: H-E-B profit participation (78) —
Gain on sale of assets 22,976 200
1 unchanged sentence
Rental Revenue.
−Removed: For the 2025 periods, rental revenue primarily included revenue from our retail and mixed-use projects Lantana Place – Retail, Kingwood Place, Jones Crossing – Retail and West Killeen Market and our multi-family properties, The Saint June and The Saint George.
−Removed: In second-quarter 2025, we sold West Killeen Market and began recognizing rental revenue from The Saint George.
−Removed: For the 2024 periods, rental revenue primarily included revenue from our retail and mixed-use projects Lantana Place – Retail, Kingwood Place, Jones Crossing – Retail, West Killeen Market and Magnolia Place – Retail and our multi-family property, The Saint June.
−Removed: In third-quarter 2024, we sold Magnolia Place – Retail.
−Removed: The increase in rental revenue in the first nine months of 2025, compared with the first nine months of 2024, primarily reflects revenue from The Saint June, which was in the process of leasing up in the first nine months of 2024, and The Saint George, which began leasing up in second-quarter 2025, partially offset by a decrease in revenue resulting from the sales of Magnolia Place – Retail, which was sold in third-quarter 2024, and West Killeen Market, which was sold in second-quarter 2025.
−Removed: In October 2025, we entered into an agreement, as amended, to sell Lantana Place – Retail, which, subject to satisfaction of closing conditions, is
−Removed: Table of Conten ts
−Removed: expected to close in fourth-quarter 2025.
−Removed: The Lantana Place – Retail project made up approximately 26 percent of the rental revenue for each period presented.
+Added: In first-quarter 2026, rental revenue primarily included revenue from our retail and mixed-use properties Jones Crossing – Retail and Kingwood Place (prior to its sale in January 2026) and our multi-family properties, The Saint June and The Saint George.
+Added: In first-quarter 2025, rental revenue primarily included revenue from our retail and mixed-use properties Lantana Place – Retail (sold in fourth-quarter 2025), Kingwood Place, Jones Crossing – Retail and West Killeen Market (sold in second-quarter 2025) and our multi-family property, The Saint June.
+Added: The decrease in rental revenue in first-quarter 2026, compared with first-quarter 2025, primarily reflects decreased revenue from Lantana Place – Retail, which was sold in fourth-quarter 2025, and Kingwood Place, which was sold in first-quarter 2026, partially offset by increased revenue from The Saint George, which began lease-up in second-quarter 2025.
Leasing Operations Expenses.
Leasing Operations expenses include property taxes and insurance, maintenance and repairs, property management fees and payroll, utilities, other segment items and depreciation.
−Removed: Other segment items primarily includes amortization of leasing costs, property owner association fees, professional and consulting fees, and office and computer equipment.
−Removed: Increases in property taxes and insurance and depreciation in the 2025 periods were primarily attributable to the commencement of leasing operations at The Saint George in second-quarter 2025.
−Removed: Approximately 18 percent and 24 percent of Leasing Operations expenses (excluding gain on sale of assets) were attributable to Lantana Place – Retail for third-quarter 2025 and 2024, respectively, and approximately 20 percent for the first nine months of both 2025 and 2024.
+Added: Other segment items primarily include amortization of leasing costs, property owner association fees, professional and consulting fees, and office and computer equipment.
+Added: H-E-B Profit Participation.
+Added: In first-quarter 2026, in connection with the sale of Kingwood Place, H-E-B earned a profit participation of $78 thousand.
Gain on Sale of Assets.
−Removed: In second-quarter 2025, we closed on the sale of the West Killeen Market project for $13.3 million.
−Removed: The sale generated a pre-tax gain of approximately $5.0 million.
−Removed: The nine months ended September 30, 2025 also includes a portion of a previously deferred gain of $0.2 million related to The Oaks at Lakeway in first-quarter 2025.
−Removed: In third-quarter 2024, we closed on the sale of Magnolia Place – Retail for $8.9 million.
−Removed: The sale generated a pre-tax gain of approximately $1.6 million.
−Removed: Refer to Note 4 for further discussion.
+Added: In first-quarter 2026, we closed on the sale of Kingwood Place for $60.8 million.
+Added: The sale generated a pre-tax gain of approximately $23.0 million ($13.4 million, net of noncontrolling interests).
+Added: In first-quarter 2025, we recognized a portion of a previously deferred gain of $0.2 million related to The Oaks at Lakeway.
+Added: General and Administrative Expenses
+Added: General and administrative expenses primarily consist of employee compensation and other costs.
+Added: In first-quarter 2026, general and administrative expenses increased to $5.6 million compared to $4.1 million in first-quarter 2025, primarily as a result of work related to the Plan of Liquidation.
Non-Operating Results
Interest Expense, Net.
−Removed: Interest costs (before capitalized interest) totaled $3.8 million in third-quarter 2025 and $11.5 million for the first nine months of 2025, compared with $4.0 million in third-quarter 2024 and $11.9 million for the first nine months of 2024.
−Removed: As of September 30, 2025, all of our debt was variable-rate debt, and for all of such debt, the interest rates have decreased over the past year primarily from amending or refinancing loans with lower rates over the last nine months as well as overall interest rates declining.
−Removed: Capitalized interest totaled $3.1 million in third-quarter 2025 and $10.4 million for the first nine months of 2025.
−Removed: All of our interest costs were capitalized for both 2024 periods.
−Removed: Capitalized interest for the 2025 periods is primarily related to development activities at Holden Hills Phases 1 and 2.
−Removed: The first nine months of 2025 also included capitalized interest related to the development of The Saint George before it was completed in second-quarter 2025.
−Removed: Capitalized interest for the 2024 periods was primarily related to development activities at our Barton Creek properties (primarily Amarra Villas and Holden Hills Phases 1 and 2) and The Saint George.
−Removed: Other (Loss) Income, Net.
−Removed: Other (loss) income, net in the first nine months of 2025 includes a $1.0 million charge to record the estimated cost to The Saint George Apartments, L.P., of the repair of the damage caused by a water leak in second-quarter 2025.
−Removed: Benefit from (Provision for) Income Taxes.
−Removed: We recorded a benefit from income taxes of $321 thousand in third-quarter 2025 and provision for income taxes of $166 thousand for the first nine months of 2025, compared to a provision of $58 thousand in third-quarter 2024 and $204 thousand for the first nine months of 2024.
+Added: Interest costs (before capitalized interest) totaled $2.6 million in first-quarter 2026 compared with $3.8 million in first-quarter 2025.
+Added: Interest costs in first-quarter 2026 were lower compared to first-quarter 2025, primarily reflecting lower interest rates as well as a decrease in average debt balances.
+Added: As of March 31, 2026, all of our debt was variable-rate debt.
+Added: Substantially all interest costs were capitalized in both periods.
+Added: Capitalized interest in first-quarter 2026 is primarily related to development activities at Holden Hills Phases 1 and 2.
+Added: Capitalized interest in first-quarter 2025 is primarily related to development activities at Holden Hills Phases 1 and 2 and The Saint George.
+Added: Provision for Income Taxes.
+Added: We recorded provisions for income taxes of $2.1 million in first-quarter 2026 and $30 thousand in first-quarter 2025.
Refer to Note 8 for further discussion of income taxes.
−Removed: Total Comprehensive Loss Attributable to Noncontrolling Interests in Subsidiaries .
−Removed: Our partners’ share of losses totaled $3.0 million in third-quarter 2025 and $6.5 million for the first nine months of 2025, compared to $1.1 million in third-quarter 2024 and $3.0 million for the first nine months of 2024.
−Removed: The increases in both periods were primarily due to the initial operating expenses for The Saint George Apartments, L.P., which was completed in second-quarter 2025.
+Added: Table of Conten ts
+Added: Total Comprehensive (Income) Loss Attributable to Noncontrolling Interests in Subsidiaries .
+Added: Our partners' share of (income) losses totaled $(6.9) million in first-quarter 2026 and $0.9 million in first-quarter 2025.
+Added: The income attributable to noncontrolling interests in subsidiaries in first-quarter 2026 was primarily related to the gain on sale of Kingwood Place.
CAPITAL RESOURCES AND LIQUIDITY
1 unchanged sentence
However, we believe that the unique nature and location of our assets will provide us positive cash flows over time.
−Removed: Comparison of Cash Flows for the Nine Months Ended September 30, 2025 and 2024
+Added: On March 24, 2026, our Board approved the Plan of Liquidation and announced an estimated range of potential liquidating distributions of $29.73 to $37.69 per share.
+Added: The Plan of Liquidation remains subject to stockholder approval and other contingencies, including obtaining lender, partner and other third-party consents.
+Added: If the Plan of Liquidation is approved, during the liquidation process, our sources and uses of liquidity may differ materially from those described in prior periods.
+Added: In addition to ordinary course operating, leasing, development and debt service needs, our liquidity planning now includes additional potential asset sale costs, debt repayment and prepayment costs, taxes, professional fees, employee retention or severance costs, reserves for known, contingent and future claims and other winding-down expenses.
+Added: Refer to Part I, Item 1A.
+Added: “Risk Factors” of our 2025 Form 10-K for further discussion.
+Added: Comparison of Cash Flows for the Three Months Ended March 31, 2026 and 2025
Operating Activities.
−Removed: Cash used in operating activities totaled $24.1 million for the first nine months of 2025, compared with $2.4 million for the first nine months of 2024.
−Removed: The decline in operating cash flow was primarily attributable to reduced revenue resulting from fewer property sales in the first nine months of 2025.
−Removed: Expenditures for purchases and development of real estate properties totaled $20.5 million for the first nine months of 2025, primarily
−Removed: Table of Conten ts
−Removed: related to development of Holden Hills Phase 1, and $22.9 million for the first nine months of 2024, primarily related to development of Amarra Villas and Holden Hills Phase 1.
+Added: Cash used in operating activities totaled $15.6 million in first-quarter 2026, compared with $13.5 million in first-quarter 2025.
+Added: Expenditures for purchases and development of real estate properties totaled $7.7 million in first-quarter 2026, primarily related to development of Holden Hills Phases 1 and 2 and the road infrastructure at Lakeway, and $7.2 million in first-quarter 2025, primarily related to development of Holden Hills Phase 1.
+Added: The cash outflow resulting from the decrease in accounts payable, accrued liabilities and other in first-quarter 2026 and first-quarter 2025 is primarily related to the timing of federal tax and property tax payments.
Investing Activities.
−Removed: Cash provided by (used in) investing activities totaled $4.6 million for the first nine months of 2025 and $(15.0) million for the first nine months of 2024.
−Removed: The first nine months of 2025 includes proceeds after transaction costs from the sale of West Killeen Market of $13.0 million.
−Removed: Also, during the first nine months of 2025, our investing cash flows included $0.4 million of Barton Creek MUD reimbursements of infrastructure costs incurred for development of The Saint June.
−Removed: Capital expenditures totaled $8.1 million for the first nine months of 2025, primarily for The Saint George, and $23.0 million for the first nine months of 2024, primarily for The Saint George and to a lesser extent for tenant improvements at Lantana Place – Retail.
+Added: Cash provided by (used in) investing activities totaled $59.8 million in first-quarter 2026 and $(4.7) million in first-quarter 2025.
+Added: Capital expenditures totaled $42 thousand in first-quarter 2026, and $4.5 million in first-quarter 2025, primarily for The Saint George.
+Added: Cash proceeds of $60.0 million (before repayment of debt, which is reflected in Financing Activities) were generated from the sale of Kingwood Place in first-quarter 2026.
Financing Activities.
−Removed: Cash provided by financing activities totaled $53.9 million for the first nine months of 2025 and $5.3 million for the first nine months of 2024.
−Removed: During the first nine months of 2025, we borrowed and repaid $4.0 million on the Comerica Bank revolving credit facility.
−Removed: During the first nine months of 2024, we had no borrowings or repayments on the Comerica Bank revolving credit facility.
−Removed: During the first nine months of 2025, net borrowings on other project and term loans totaled $8.0 million, primarily reflecting borrowings from Holden Hills Phase 1 and The Saint George construction loans and the refinancing of the Lantana Place and The Saint June construction loans and the Jones Crossing loan, partially offset by the payoff of the West Killeen construction loan and the Amarra Villas credit facility and paydowns on The Annie B land loan.
−Removed: During the first nine months of 2024, net repayments on other project and term loans totaled $2.6 million, primarily reflecting borrowings on The Saint George and Holden Hills Phase 1 construction loans and the Amarra Villas credit facility partially offset by the payoff of the Magnolia Place construction loan and paydowns on the Amarra Villas credit facility and the Annie B land loan.
−Removed: Refer to “Revolving Credit Facility and Other Financing Arrangements” below for a discussion of our outstanding debt at September 30, 2025.
−Removed: During the first nine months of 2025, we received a contribution of $47.8 million from a noncontrolling interest holder related to the Holden Hills Phase 2 partnership.
−Removed: Also, during the first nine months of 2025, in connection with the refinancing of the Kingwood Place construction loan in November 2024, which generated additional cash proceeds, we paid distributions of $856 thousand to noncontrolling interest holders.
−Removed: During the first nine months of 2025, the Class B limited partner contributed additional cash of $2.9 million in cash to The Saint George Apartments, L.P., representing its 90 percent share to support the partnership’s ability to pay debt service and project costs, including costs related to water leak damage remediation and repairs as described in “Recent Development Activities.” During the first nine months of 2024, the Class B limited partner contributed additional capital of $3.6 million in cash to The Saint George Apartments, L.P., representing its 90 percent share to support the partnership’s ability to pay its construction loan interest.
−Removed: On September 1, 2022, after receiving written consent from Comerica Bank, our Board declared a special cash dividend of $4.67 per share (totaling $40.0 million) on our common stock, which was paid on September 29, 2022 to stockholders of record as of September 19, 2022.
−Removed: During the first nine months of 2025, $246 thousand of accrued dividends for unvested RSUs were paid to the holders upon the vesting of the RSUs, leaving $18 thousand of dividends accrued for unvested RSUs presented in accrued liabilities as of September 30, 2025.
−Removed: The remaining accrued dividends will be paid to the holders of the RSUs as the RSUs vest.
−Removed: In November 2023, with written consent from Comerica Bank, our Board approved a new share repurchase program, which authorized repurchases of up to $5.0 million of our common stock.
−Removed: In June 2025, with written consent from Comerica Bank, our Board approved an increase in the share repurchase program from up to $5.0 million to up to $25.0 million of our common stock.
+Added: Cash (used in) provided by financing activities totaled $(44.5) million in first-quarter 2026 and $10.0 million in first-quarter 2025.
+Added: In first-quarter 2025, we had borrowings of $4.0 million on our revolving credit facility and we had no borrowings on the facility in first-quarter 2026.
+Added: In first-quarter 2026, net repayments on project and term loans totaled $32.8 million, primarily reflecting the payoff of the Kingwood Place loan in connection with its sale.
+Added: In first-quarter 2025 net borrowings on project and term loans totaled $9.1 million, primarily reflecting borrowings from The Saint George and Holden Hills Phase 1 construction loans and the refinancing of the Lantana Place construction loan and the Jones Crossing loan, partially offset by paydowns on The Annie B land loan.
+Added: Refer to “Revolving Credit Facility and Other Financing Arrangements” and “Debt Maturities and Other Contractual Obligations” below for a discussion of our outstanding debt at March 31, 2026.
+Added: In first-quarter 2026, in connection with the sale of Kingwood Place, the Kingwood partnership paid distributions of $10.6 million to noncontrolling interest holders.
+Added: Also in first-quarter 2026, The Saint June, L.P.
+Added: made distributions of approximately $118 thousand to the Class B limited partner in The Saint June partnership.
+Added: In November 2023, with written consent from Fifth Third Bank, our Board approved a new share repurchase program, which authorized repurchases of up to $5.0 million of our common stock.
+Added: In June 2025, with written consent from Fifth Third Bank, our Board approved an increase in the share repurchase program from up to $5.0 million to up to $25.0 million of our common stock.
The repurchase program authorizes us, 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.
1 unchanged sentence
Share repurchases under the program may be made from time to time through solicited or unsolicited transactions in the open market, in privately negotiated transactions or by other means in accordance with securities laws.
−Removed: The share repurchase program does not obligate us to repurchase any specific amount of shares, does not have an expiration date, and may be suspended, modified or discontinued at any time without prior notice.
−Removed: In the first nine months of 2025, we acquired 100,967 shares of our common stock for a total cost of $2.0 million at an average price of $19.50 per share.
−Removed: As of November 7, 2025, we have acquired 180,899 shares of our common stock for a total cost of $3.9 million at an average price of $21.59 per share, and $21.1 million remains available for repurchases under the program.
+Added: The share repurchase program does not obligate us to repurchase any specific amount of shares, does not have an expiration date, and may be suspended, modified or discontinued at any time
Table of Conten ts
+Added: without prior notice.
+Added: In first-quarter 2026, we acquired 18,886 shares of our common stock for a total cost of $0.5 million at an average price of $25.88 per share.
+Added: As of March 31, 2026, we have acquired 235,421 shares of our common stock for a total cost of $5.2 million at an average price of $22.14 per share, and $19.8 million remains available for repurchases under the program.
Revolving Credit Facility and Other Financing Arrangements
−Removed: As of September 30, 2025, we had $55.0 million in cash and cash equivalents and restricted cash of $0.5 million, and no amount was borrowed under our revolving credit facility.
−Removed: Of the $55.0 million in consolidated cash and cash equivalents at September 30, 2025, $3.8 million held at certain consolidated subsidiaries was subject to restrictions on distribution to the parent company pursuant to project loan agreements.
−Removed: In the third quarters of 2025 and 2024, development and asset management fees of $289 thousand and $216 thousand, respectively, were paid by the limited partnerships to Stratus.
−Removed: In the first nine months of 2025 and 2024, development and asset fees of $830 thousand and $1.2 million, respectively, were paid by the limited partnerships to Stratus.
+Added: As of March 31, 2026, we had $73.5 million in cash and cash equivalents and restricted cash of $0.8 million, and no amount was borrowed under our revolving credit facility.
+Added: Of the $73.5 million in consolidated cash and cash equivalents at March 31, 2026, $1.7 million held at certain consolidated partnerships is subject to restrictions on distribution to the parent company pursuant to project loan agreements.
+Added: In first-quarter 2026 and first-quarter 2025, development and asset management fees of $105 thousand and $299 thousand, respectively, were paid by the limited partnerships to Stratus.
The payments of these intercompany fees resulted in increases in cash available to the parent company, and the income to Stratus and cost to the partnerships have been eliminated in the consolidated financial statements.
−Removed: As of September 30, 2025, we had total debt of $205.7 million based on the principal amounts outstanding compared with $196.7 million at December 31, 2024.
−Removed: As of September 30, 2025, the maximum amount that could be borrowed under the Comerica Bank revolving credit facility was $29.1 million, resulting in availability of $17.5 million, net of letters of credit totaling $11.6 million issued under the revolving credit facility.
−Removed: In June 2025, the Holden Hills Phase 2 property was removed from the borrowing base for the revolving credit facility in anticipation of a potential separate revolving credit facility for the property, and the maximum amount that could be borrowed was reduced.
−Removed: Also, in June 2025, after the Amarra Villas credit facility was fully repaid and terminated, the remaining three Amarra Villas homes were added to the borrowing base for the Comerica Bank revolving credit facility.
−Removed: The net effect of these changes was a decrease of $24.8 million to the maximum amount that could be borrowed.
−Removed: Letters of credit have been issued under the revolving credit facility, $9.0 million of which secure Stratus’ obligation to build certain roads and utilities facilities benefiting Holden Hills Phases 1 and 2 and $2.3 million of which secure Stratus’ obligations, which are subject to certain conditions, to construct and pay for certain utility infrastructure in Lakeway, Texas, which is expected to be utilized by the planned multi-family project on Stratus’ remaining land in Lakeway.
−Removed: Refer to “Debt Maturities and Other Contractual Obligations” below for a table illustrating the timing of principal payments due on our outstanding debt as of September 30, 2025.
−Removed: In October 2025, we amended the revolving credit facility to further reduce the maximum loan amount to the lesser of $35.0 million or the borrowing base limit, in order to reduce our fees associated with the facility.
−Removed: We have made operating loans to Stratus Block 150, L.P.
−Removed: to facilitate the partnership’s ability to pay ongoing costs, including debt service, of The Annie B project during the pre-construction period.
−Removed: The loans bear interest at one-month Term Secured Overnight Financing Rate (SOFR) plus 5.00 percent, are subordinate to The Annie B land loan and must be repaid before distributions may be made to the partners.
−Removed: In first-quarter 2024, we made an operating loan of $2.4 million.
−Removed: In third-quarter 2024, we made an operating loan of $1.1 million.
−Removed: In first-quarter 2025, we made an operating loan of $1.5 million.
−Removed: In third-quarter 2025, we made an operating loan of $1.1 million.
−Removed: As of September 30, 2025, our operating loans outstanding to Stratus Block 150, L.P.
−Removed: totaled $8.3 million.
−Removed: Stratus and the Class B limited partner have made operating loans to The Saint June, L.P.
−Removed: to support the partnership’s ability to pay its construction loan interest, which has exceeded the amount anticipated because of interest rate increases.
−Removed: The loans bear interest at one-month Term SOFR plus 5.00 percent, are subordinate to The Saint June construction loan and, unless approved by all partners, no distributions may be made to the partners until the operating loans are repaid.
−Removed: In third-quarter 2025, The Saint June partnership was amended to allow up to $3.0 million of distributions to the partners prior to the repayment of the operating loans.
−Removed: In first-quarter 2024, Stratus made an operating loan of $339 thousand, and the Class B limited partner made an operating loan of $339 thousand.
−Removed: In second-quarter 2024, Stratus made an operating loan of $85 thousand, and the Class B limited partner made an operating loan of $165 thousand.
−Removed: No loans were made in the first nine months of 2025.
−Removed: As of September 30, 2025, Stratus’ and the Class B limited partner’s operating loans outstanding to The Saint June, L.P.
−Removed: totaled $962 thousand and $493 thousand, respectively.
−Removed: In January 2025, the Lantana Place construction loan was refinanced.
−Removed: The new loan has a principal amount of $29.8 million and matures February 1, 2029.
−Removed: The loan bears interest at one-month Term SOFR plus 2.35 percent, with a floor of 0.00 percent.
−Removed: Payments of interest only on the loan are due monthly through January 31, 2026.
−Removed: Thereafter, principal and interest payments are due monthly based on a 30-year amortization with the remaining unpaid principal and interest due at maturity.
−Removed: After paying off the prior loan and paying property taxes and closing costs, Stratus received approximately $3.0 million in net cash proceeds.
−Removed: In March 2025, the Jones Crossing loan was refinanced.
−Removed: The new loan has a principal amount of $24.0 million and matures April 1, 2028.
−Removed: The loan bears interest at one-month Term SOFR plus 1.95 percent, with a floor of 3.00 percent.
−Removed: As required by the loan, College Station 1892 Properties, L.L.C.
−Removed: purchased an interest rate cap with a Term
−Removed: Table of Conten ts
−Removed: SOFR strike rate equal to 5.00 percent, a notional amount of $24.0 million and an expiration date of April 1, 2026.
−Removed: Upon expiration, as required by the loan, College Station 1892 Properties, L.L.C.
−Removed: will enter into two subsequent, consecutive interest rate cap agreements, each with a one-year term, a notional amount of the maximum loan amount and a strike price commensurate to the then-current interest rate.
−Removed: Payments of interest only on the loan are due monthly with the outstanding principal due at maturity.
−Removed: College Station 1892 Properties, L.L.C.
−Removed: may prepay all, but not a portion, of the loan;
−Removed: provided that a prepayment prior to April 1, 2026 is subject to a yield maintenance premium payment.
−Removed: After paying off the prior loan and closing costs, Stratus received approximately $1.2 million in net cash proceeds.
−Removed: In July 2025, The Annie B land loan was modified to extend the maturity date to September 1, 2027.
−Removed: Monthly principal payments of $49,875 in addition to interest will be required during the extended term.
−Removed: In September 2025, The Saint June construction loan was modified to (i) extend the maturity date of the loan to October 2, 2027;
−Removed: (ii) provide for advances of an additional $1.5 million, bringing the outstanding principal balance of the loan to $32.9 million with no funds remaining available for additional principal advances;
−Removed: (iii) decrease the interest rate applicable margin from 2.35 percent to 2.00 percent;
−Removed: (iv) eliminate the requirement to make monthly principal payments prior to maturity;
−Removed: and (v) add a new property-level minimum debt yield financial covenant, which replaced a property-level debt service coverage ratio.
−Removed: If the debt yield financial covenant is not met, the principal balance of the loan must be paid down in an amount sufficient to achieve the minimum debt yield.
−Removed: The amendments permit the partnership to distribute up to $1.5 million to the partners.
−Removed: Accordingly, the loan bears interest at the one-month Term SOFR plus 2.00 percent, subject to a 3.50 percent floor.
−Removed: Payments of interest only on the Loan are due monthly with the outstanding principal due at maturity.
−Removed: After closing costs, the partnership used the remaining portion of the $1.3 million proceeds of the loan to establish reserves for partnership expenses and make cash distributions to the partners.
−Removed: In October 2025, The Saint June, L.P.
−Removed: made distributions of approximately $435 thousand and $225 thousand to the Class B limited partner in The Saint June partnership and Stratus, respectively.
−Removed: During the first nine months of 2025, we also increased borrowings under the Holden Hills Phase 1 and The Saint George construction loans.
−Removed: We paid off the Amarra Villas credit facility and the West Killeen construction loan and paid down The Annie B land loan.
−Removed: Refer to Note 6 for further discussion.
−Removed: Most of our debt agreements require compliance with specified financial covenants.
−Removed: Refer to Note 6 and MD&A in our 2024 Form 10-K for a discussion of the financial covenants in our debt agreements.
−Removed: As of September 30, 2025, we were in compliance with all of our financial covenants.
−Removed: Stratus’ and its subsidiaries’ debt arrangements, including Stratus’ guaranty agreements, contain significant limitations that may restrict Stratus’ and its subsidiaries’ ability to, among other things:
−Removed: borrow additional money or issue guarantees;
−Removed: pay dividends, repurchase equity or make other distributions to equity holders;
−Removed: make loans, advances or other investments;
−Removed: create liens on assets;
−Removed: enter into sale-leaseback transactions;
−Removed: enter into transactions with affiliates;
−Removed: permit a change of control or change in management;
−Removed: sell all or substantially all of its assets;
−Removed: and engage in mergers, consolidations or other business combinations.
−Removed: Our Comerica Bank revolving credit facility, The Annie B land loan, and The Saint George and the Holden Hills Phase 1 construction loans require Comerica Bank’s prior written consent for any common stock repurchases in excess of $1.0 million or any dividend payments, which was obtained in connection with our current $25.0 million share repurchase program.
−Removed: Any future declaration of dividends or decision to repurchase our common stock is at the discretion of our Board, subject to restrictions under our Comerica Bank debt agreements, and will depend on our financial results, cash requirements, projected compliance with covenants in our debt agreements, outlook and other factors deemed relevant by our Board.
−Removed: Our future debt agreements, future refinancings of or amendments to existing debt agreements or other future agreements may restrict our ability to declare dividends or repurchase shares.
−Removed: Our project loans are generally secured by all or substantially all of the assets of the project, and our Comerica Bank revolving credit facility is secured by substantially all of our assets other than those encumbered by separate project level financing.
−Removed: In anticipation of a separate revolving credit facility for the Holden Hills Phase 2 project, Comerica Bank released the Holden Hills Phase 2 property from the collateral pool for the Comerica Bank revolving credit facility.
+Added: As of March 31, 2026, we had total debt of $144.4 million based on the principal amounts outstanding compared with $143.8 million at December 31, 2025.
+Added: As of March 31, 2026, the maximum amount that could be borrowed under our revolving credit facility was $28.1 million, resulting in availability of $24.7 million, net of letters of credit totaling $3.4 million issued under the revolving credit facility.
+Added: Letters of credit have been issued under the revolving credit facility, $2.3 million of which secure Stratus’ obligations, which are subject to certain conditions, to construct and pay for certain utility infrastructure in Lakeway, Texas, which is expected to be utilized by the planned multi-family project on Stratus’ remaining land in Lakeway.
+Added: Refer to “Debt Maturities and Other Contractual Obligations” below for a table illustrating the timing of principal payments due on our outstanding debt as of March 31, 2026 and Note 6 herein and Note 6 of our 2025 Form 10-K for further discussion of our debt.
+Added: We have made operating loans, capital contributions and advances to, and have received distributions from, our partnerships.
+Added: Refer to Note 3 herein and Note 2 of the 2025 Form 10-K for further discussion.
+Added: Stratus and its subsidiaries have debt arrangements, including guaranty agreements, that require compliance with specified financial covenants and contain significant limitations that may restrict our ability and the ability of our subsidiaries to take certain actions, including incurring indebtedness, paying dividends or repurchasing equity, making distributions, selling assets and entering into certain transactions.
+Added: Refer to Note 6 and MD&A in our 2025 Form 10-K for a discussion of the financial covenants and restrictions under our debt agreements.
+Added: As of March 31, 2026, we were in compliance with all of our financial covenants.
+Added: The Plan of Liquidation may require consents, waivers, refinancings or other accommodations under certain of our debt arrangements and project-level agreements.
+Added: In addition, certain partnership agreements and other contracts may contain consent rights, distribution restrictions, buy-sell provisions, transfer restrictions or other terms that may affect the timing, structure or proceeds of asset sales or cash distributions to us or our stockholders.
+Added: There can be no assurance that any such consents, waivers or accommodations will be obtained on acceptable terms or at all.
+Added: Our project loans are generally secured by all or substantially all of the assets of the project, and our revolving credit facility is secured by substantially all of our assets other than those encumbered by separate project-level financing.
In addition, we, as the parent company, are typically required to guarantee all or a significant portion of the payment of our project loans, in some cases until certain development milestones and/or financial conditions are met, in some cases on a full recourse basis and in other cases on a more limited recourse basis.
−Removed: As of September 30, 2025, we, as the parent company, guaranteed the payment of all of the project loans, except for the Kingwood Place, Jones Crossing and Lantana Place loans.
−Removed: Our guarantees of the Kingwood Place, Jones Crossing and Lantana Place loans are generally limited to non-recourse carve-out obligations.
−Removed: Our payment guarantee on
+Added: As of March 31, 2026, we, as the parent company, guaranteed the payment of all of the project loans, except for the Jones Crossing loan.
+Added: In addition, our construction loans typically permit advances only in accordance with budgeted allocations and subject to specified conditions and require lender consent for changes to plans and specifications exceeding specified amounts.
+Added: Refer to Note 3 herein and Notes 2 and 6 and MD&A in our 2025 Form 10-K for additional discussion.
Table of Conten ts
−Removed: The Saint June construction loan is limited to 50.0 percent and on The Saint George construction loan is limited to 25.0 percent until certain conditions are met.
−Removed: Refer to Note 6 to our consolidated financial statements in our 2024 Form 10-K for additional discussion.
−Removed: Our construction loans typically permit advances only in accordance with budgeted allocations and subject to specified conditions and require lender consent for changes to plans and specifications exceeding specified amounts.
−Removed: If the lender deems undisbursed proceeds insufficient to meet costs of completing the project, the lender may decline to make additional advances until the borrower deposits with the lender sufficient additional funds to cover the deficiency the lender deems to exist.
−Removed: The inability to satisfy a condition to receive advances for a specified time period after lender’s refusal, or the failure to complete a project by a specified completion date, may be an event of default, subject to exceptions for force majeure.
Debt Maturities and Other Contractual Obligations
−Removed: The following table summarizes our debt maturities based on the principal amounts outstanding as of September 30, 2025 (in thousands):
+Added: The following table summarizes our debt maturities based on the principal amounts outstanding as of March 31, 2026 (in thousands):
2026 2027 2028 2029 2030 Thereafter Total
−Removed: Comerica Bank revolving credit facility
−Removed: $ — $ — $ — $ — $ — $ — $ —
−Removed: Kingwood Place loan
−Removed: — — 33,000 — — — 33,000
−Removed: Lantana Place loan
+Added: Fifth Third Bank revolving credit facility a
$ — $ — $ — $ — $ — $ — $ —
1 unchanged sentence
— — 24,000 — — 24,000
−Removed: The Annie B land loan — — 11,920 — — — 11,920
+Added: The Annie B land loan b
+Added: 449 11,422 — — — — 11,871
Construction loans:
−Removed: The Saint George — 52,533 — — — — 52,533
−Removed: The Saint June a
+Added: The Saint George c
52,533 — — — — — 52,533
−Removed: Holden Hills Phase 1 b
+Added: The Saint June d
— 33,376 — — — — 33,376
+Added: Holden Hills Phase 1 e
+Added: 22,590 — — — — — 22,590
Total $ 75,572 $ 44,798 $ 24,000 $ — $ — $ — $ 144,370
+Added: In January 2026, the Fifth Third Bank revolving credit facility was amended.
+Added: The new maturity date is March 27, 2028.
+Added: Includes an operating loan from one of our third-party partners of $250 thousand.
+Added: The maturity date is July 19, 2026.
+Added: We are currently evaluating options to modify or refinance the loan and expect to extend or refinance the loan on or before the maturity date.
Includes operating loans from our third-party partner of $493 thousand.
−Removed: The maturity date of the Holden Hills Phase 1 construction loan is February 8, 2026.
−Removed: We are currently evaluating options to modify the loan and expect to extend the loan on or before the maturity date.
−Removed: The following table summarizes the weighted-average interest rate of each loan, all of which have variable rates, for the periods presented:
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2025 2024 2025 2024
−Removed: Comerica Bank revolving credit facility a
−Removed: — % — % 7.43 % — %
−Removed: Kingwood Place loan 6.12 8.16 6.12 8.18
−Removed: Lantana Place loan 6.67 7.67 6.69 7.71
+Added: In first-quarter 2026, the Holden Hills Phase 1 construction loan was amended to provide a short-term extension of the maturity date to June 8, 2026, while a longer-term extension is negotiated with the lender.
+Added: The following table summarizes the weighted-average interest rate of each loan, all of which have variable rates, for the periods presented, and reflects the interest rate terms of loan agreements as in effect during the periods presented, as described in Note 6 of this report and in our 2025 Form 10-K:
+Added: Three Months Ended
+Added: Fifth Third Bank revolving credit facility a
Jones Crossing loan
−Removed: 6.27 7.68 6.27 7.69
The Annie B land loan 6.81 7.45
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Holden Hills Phase 1 6.80 7.44
−Removed: West Killeen Market b
−Removed: — 8.01 — 8.06
−Removed: Amarra Villas credit facility c
−Removed: — 8.40 — 8.38
−Removed: In second-quarter 2025, we repaid the amount outstanding on the revolving credit facility.
−Removed: We did not have an outstanding balance during third-quarter 2025, third-quarter 2024 or the first nine months of 2024.
−Removed: In May 2025, we repaid this loan in connection with the sale of the property.
−Removed: Table of Conten ts
−Removed: In June 2025, this credit facility was terminated after the outstanding balance was repaid.
+Added: We did not have an outstanding balance during first-quarter 2026.
+Added: At March 31, 2026, the interest rate for the revolving credit facility was 6.77 percent.
Liquidity Outlook
−Removed: We had firm commitments totaling approximately $5.2 million at September 30, 2025 primarily related to construction of the road and utility infrastructure we are required to build in Lakeway Texas, and Holden Hills Phase 1.
−Removed: We have a construction loan to fund the projected cash outlays for Holden Hills Phase 1 over the next 12 months following this filing.
−Removed: We expect to make a capital contribution to The Saint George partnership of $150 thousand representing our 10 percent equity share of debt service and project costs in the next 12 months.
−Removed: With respect to Holden Hills Phase 1, we have agreed to reimburse the Holden Hills Phase 1 partnership for 60 percent of the costs of the Tecoma Improvements.
−Removed: As of September 30, 2025, our share of the estimated remaining costs totaled $346 thousand.
−Removed: Also, we anticipate making future operating loans to Stratus Block 150, L.P.
−Removed: totaling up to $1.8 million over the next 12 months to enable the partnership to pay debt service and project costs.
−Removed: The operating loans would bear interest at one-month Term SOFR plus 5.00 percent, would be subordinate to The Annie B land loan and required to be repaid before distributions may be made to the partners.
+Added: We had firm commitments totaling approximately $2.6 million at March 31, 2026 primarily related to construction of the road and utility infrastructure we are required to build in Lakeway, Texas, and Holden Hills Phase 1.
+Added: We anticipate making future operating loans or advances to the limited partnerships for The Annie B, The Saint George and Holden Hills Phase 1 totaling up to $6.0 million over the next 12 months.
+Added: Our estimates of future operating loans or advances are based on estimates of future costs of the partnerships.
We project that we will be able to meet our debt service and other cash obligations for at least the next 12 months.
−Removed: Our stabilized retail and multi-family properties (Jones Crossing – Retail, Lantana Place – Retail, Kingwood Place and The Saint June) are projected to generate sufficient cash flow to cover debt service over the next 12 months.
−Removed: In October 2025, we entered into an agreement, as amended, to sell Lantana Place – Retail for approximately $57.4 million.
−Removed: Subject to satisfaction of closing conditions, the sale is expected to close in fourth-quarter 2025 and to yield substantial cash proceeds after payment of the project loan.
−Removed: We expect to sell the two remaining Amarra Villas homes and may sell other properties.
−Removed: For other projected pre-development costs, much of which are discretionary, and for our costs of the Tecoma Improvements and projected general and administrative expenses, we had cash and cash equivalents of $55.0 million at September 30, 2025 and availability under our revolving credit facility (which matures on March 27, 2027) of approximately $17.5 million, net of letters of credit, which is expected to be sufficient to fund these cash requirements for the next 12 months.
+Added: Our stabilized retail and multi-family properties (Jones Crossing – Retail and The Saint June) are projected to generate sufficient cash flow to cover debt service over the next 12 months.
+Added: Further, we expect to sell the last Amarra Villas home, the New Caney land and the retail component of Jones Crossing, and we may sell other properties.
+Added: For other projected pre-development costs, much of which are discretionary, and projected general and administrative expenses, we had cash and cash equivalents of $73.5 million at March 31, 2026 and availability
+Added: Table of Conten ts
+Added: under our revolving credit facility (which matures on March 27, 2028) of approximately $24.7 million, net of $3.4 million of letters of credit, which is expected to be sufficient to fund these cash requirements for the next 12 months.
+Added: However, if the Plan of Liquidation is approved by our stockholders, our liquidity outlook and capital allocation priorities will shift from the continuation of our historical operating and development strategy toward an orderly monetization of assets and winding-down process.
+Added: As a result, the timing and amount of capital expenditures, project funding, debt repayment, reserve establishment, taxes, professional fees and other cash uses could differ materially from prior expectations, and the amount and timing of any liquidating distributions will depend on future asset sales, liabilities, expenses and other factors.
We expect to successfully extend the maturities of, or to refinance, our outstanding debt that matures in the next 12 months.
For future potential significant development projects, we would not plan to enter into commitments to incur material costs for the projects until we obtain what we project to be adequate financing to cover anticipated cash outlays.
−Removed: As discussed under “Business Strategy” above, our main sources of revenue and cash flow are expected to be sales of our properties to third parties, debt financings or distributions from joint ventures, the timing of and proceeds from which are difficult to predict and depend on market conditions and other factors.
−Removed: We also generate cash flow from rental revenue in our Leasing Operations segment and from development and asset management fees received from our properties.
+Added: As discussed under “Business Strategy” above, our main sources of revenue and cash flow are expected to come from sales of our properties to third parties or distributions from joint ventures, the timing of and proceeds from which are difficult to predict and depend on market conditions and other factors.
+Added: We also generate cash flow from rental revenue in our leasing operations and from development and asset management fees received from our properties.
Due to the nature of our development-focused business, we do not expect to generate sufficient recurring cash flow to cover our general and administrative expenses each period.
2 unchanged sentences
Refer to Note 6 in this report and in our 2025 Form 10-K and Part I, Item 1A.
−Removed: “Risk Factors” of our 2024 Form 10-K and Part II, Item 1A.
−Removed: “Risk Factors” herein for further discussion.
+Added: “Risk Factors” of our 2025 Form 10-K for further discussion.
Our ability to meet our cash obligations over the longer term will depend on our future operating and financial performance and cash flows, including our ability to sell or lease properties profitably and extend or refinance debt as it becomes due, which is subject to economic, financial, competitive and other factors beyond our control.
6 unchanged sentences
This ASU also requires additional footnote disclosure about selling expenses.
−Removed: The amendments are effective for fiscal years beginning after December 15, 2026 and interim periods beginning after
−Removed: Table of Conten ts
−Removed: December 15, 2027 and early adoption is permitted.
+Added: The amendments are effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027 and early adoption is permitted.
Stratus is currently assessing adoption timing and the effect that the updated standard will have on its financial statement disclosures.
1 unchanged sentence
In the ordinary course of business, we engage in certain activities that are not reflected on our consolidated balance sheets, generally referred to as off-balance sheet arrangements.
−Removed: For additional information regarding these types of activities, refer to the discussion about our firm commitments in “Capital Resources and Liquidity” above and Note 9 to our consolidated financial statements in our 2024 Form 10-K.
+Added: For additional information regarding these types of activities, refer to the discussion about our firm commitments in “Capital Resources and Liquidity” above and Note 9 in our 2025 Form 10-K.
CAUTIONARY STATEMENT
−Removed: This Quarterly Report on Form 10-Q contains forward-looking statements in which we discuss factors we believe may affect our future performance.
−Removed: Forward-looking statements are all statements other than statements of historical fact, such as plans, projections or expectations related to inflation, interest rates, tariffs and trade policies, supply chain constraints, our ability to pay or refinance our debt obligations as they become due, availability of bank credit, our ability to meet our future debt service and other cash obligations, projected future operating loans or capital contributions to our joint ventures, statements regarding the exploration of opportunities for the use of cash proceeds from the Holden Hills Phase 2 partnership formation and recent and pending asset sales, and whether and when the sale of Lantana Place – Retail will be completed, potential costs for which The Saint George Apartments, L.P.
−Removed: may be responsible for the remediation and repair of damage caused by the water leak at The Saint George, future cash flows and liquidity, the Austin and Texas real estate markets, the planning, financing, development, construction, completion and stabilization of our development projects, including projected costs and estimated times to complete construction, plans to sell, recapitalize or refinance properties and estimated timing for closing properties under contract, future operational and financial performance, MUD reimbursements for infrastructure costs, regulatory matters, including the expected impact of the ETJ Law and related ongoing litigation, leasing activities, tax rates, future capital expenditures and financing plans, possible joint ventures, partnerships or other strategic relationships, other plans and objectives of management for future operations and development projects, and potential future cash returns to stockholders, including the timing and amount of repurchases under our share repurchase program.
+Added: This Quarterly Report on Form 10-Q contains forward-looking statements in which we discuss factors we believe may affect our future performance and business strategy.
+Added: Forward-looking statements are all statements other than statements of historical fact, such as plans, projections or expectations related to the Plan of Liquidation, including the availability, timing and amount of potential future distributions to stockholders, the timing of asset sales and whether and when the sales of the retail component of Jones Crossing, the New Caney land and an Amarra Villas home will be completed, and our estimated pre-tax proceeds from these sales, inflation, interest rates, tariffs and
+Added: Table of Conten ts
+Added: trade policies, supply chain constraints, our ability to pay or refinance our debt obligations as they become due, availability of bank credit, our ability to meet our future debt service and other cash obligations, projected future operating loans, advances or capital contributions to our joint ventures, future cash flows and liquidity, the Austin and Texas real estate markets, the planning, financing, development, construction, completion and stabilization of our development projects, including projected costs and estimated times to complete construction, plans to sell, recapitalize or refinance properties and estimated timing for closing properties under contract, future operational and financial performance, MUD reimbursements for infrastructure costs, regulatory matters, including the expected impact of the ETJ Law and related ongoing litigation, and the letter from the City of Austin challenging the removal of our property from the ETJ, leasing activities, tax rates, future capital expenditures and financing plans, possible joint ventures, partnerships or other strategic relationships, other plans and objectives of management for future operations and development projects, and potential future cash returns to stockholders, including the timing and amount of repurchases under our share repurchase program.
The words “anticipate,” “may,” “can,” “plan,” “believe,” “potential,” “estimate,” “expect,” “project,” “target,” “intend,” “likely,” “will,” “should,” “to be” and any similar expressions or statements are intended to identify those assertions as forward-looking statements.
−Removed: Under our Comerica Bank debt agreements, we are not permitted to repurchase our common stock in excess of $1.0 million or pay dividends on our common stock without Comerica Bank's prior written consent, which we obtained in connection with our current $25.0 million share repurchase program.
−Removed: Any future declaration of dividends or decision to repurchase our common stock outside of the approved share repurchase program is at the discretion of our Board, subject to restrictions under our Comerica Bank debt agreements, and will depend on our financial results, cash requirements, projected compliance with covenants in our debt agreements, outlook and other factors deemed relevant by our Board.
+Added: Under our Fifth Third Bank debt agreements, we are not permitted to repurchase our common stock in excess of $1.0 million or pay dividends on our common stock without Fifth Third Bank's prior written consent, which we obtained in connection with our current $25.0 million share repurchase program.
+Added: Any future declaration of dividends or decision to repurchase our common stock outside the approved share repurchase program is at the discretion of our Board, subject to restrictions under our Fifth Third Bank debt agreements, and will depend on our financial results, cash requirements, projected compliance with covenants in our debt agreements, outlook and other factors deemed relevant by our Board.
Our future debt agreements, future refinancings of or amendments to existing debt agreements or other future agreements may restrict our ability to declare dividends or repurchase shares.
We caution readers that forward-looking statements are not guarantees of future performance, and our actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements.
−Removed: Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, our ability to implement our business strategy successfully, including our ability to develop, construct and sell or lease properties on terms our Board considers acceptable, increases in operating and construction costs, including real estate taxes, maintenance and insurance costs, and the cost of building materials and labor, elevated inflation and interest rates, the effect of changes in tariffs and trade policies, including threatened tariffs, supply chain constraints, our ability to pay or refinance our debt, extend maturity dates of our loans or comply with or obtain waivers of financial and other covenants in debt agreements and to meet other cash obligations, availability of bank credit, defaults by contractors and subcontractors, the results of our Board’s exploration of opportunities for the use of cash proceeds from the Holden Hills Phase 2 partnership formation and recent and pending asset sales, the occurrence of any event, change or other circumstance that could delay the closing of the sale of Lantana Place – Retail or result in the termination of the agreement to sell Lantana Place – Retail, the outcome of our analysis and discussions with the insurance company and general contractor regarding responsibility for payment of costs to remediate and repair the damage caused by the water leak at The Saint George, declines in the market value of our assets, market conditions or corporate developments that could preclude, impair or delay any opportunities with respect to plans to sell,
+Added: Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, the risks associated with the Plan of Liquidation, including the availability, timing and amount of the distributions to stockholders in connection with the Plan of Liquidation, including changes in the amount and timing of the total liquidating distributions, including as a result of unexpected levels of transaction costs, delayed or terminated closings, liquidation costs or unpaid or additional liabilities and obligations, the amounts that will need to be set aside by us, the adequacy of such reserves to satisfy our obligations, risks associated with third-party contracts containing consent and/or other provisions that may be triggered by the Plan of Liquidation, our ability to favorably resolve potential tax claims, any litigation matters, including any litigation relating to the Plan of Liquidation and related matters, and other unresolved contingent liabilities, our ability to successfully execute the Plan of Liquidation, including the ability to market and sell all or substantially all of our assets, the amount of proceeds that might be realized from the sale or other disposition of our assets, the application of, and any changes in, applicable tax laws, regulations, administrative practices, principles and interpretations, the incurrence of expenses and the diversion of management’s time in connection with the Plan of Liquidation, our ability to retain and hire key personnel, consultants and other resources and maintain relationships with partners, suppliers, employees, stockholders and others as we carry out the Plan of Liquidation and on our operating results and business generally, the possibility of converting to a liquidating trust or other liquidating entity, the possibility that our stockholders will not approve the Plan of Liquidation, the ability of our Board to abandon, modify or delay implementation of the Plan of Liquidation, even after stockholder approval, potential adverse effects on our stock price from the announcement, suspension or consummation of the Plan of Liquidation, the occurrence of any event, change or other circumstances, including market, regulatory and other factors, that could give rise to the termination of the Plan of Liquidation, whether we and the purchasers will satisfy our respective obligations and conditions to closing under the agreements or offers, as applicable, for the retail component of Jones Crossing, the New Caney land and an Amarra Villas home in the anticipated timeframe or at all, our ability to implement our business strategy successfully, including our ability to develop, construct and sell or lease properties on terms our Board considers acceptable, increases in operating and construction costs, including real estate taxes, maintenance and insurance costs, and the cost of building materials and labor, inflation and elevated interest rates, the effect of changes in tariffs and trade policies, supply chain constraints, our ability to pay or refinance our debt, extend maturity dates of our loans or comply with or obtain waivers of financial and other covenants in debt agreements and to meet other cash obligations, availability of bank credit, defaults by contractors and subcontractors, declines in the market value of our assets, market conditions or corporate developments that could preclude, impair or delay any opportunities with respect to plans to sell, recapitalize or refinance properties, a decrease in the demand for real estate in select markets in Texas where we operate, particularly in Austin, changes in economic, market, tax, business and geopolitical conditions, potential U.S.
+Added: or local economic downturn or
Table of Conten ts
−Removed: recapitalize or refinance properties, a decrease in the demand for real estate in select markets in Texas where we operate, particularly in Austin, changes in economic, market, tax, business and geopolitical conditions, potential U.S.
−Removed: or local economic downturn or recession, the availability and terms of financing for development projects and other corporate purposes, our ability to collect anticipated rental payments and close projected asset sales, loss of key personnel, our ability to enter into and maintain joint ventures, partnerships or other strategic relationships, including risks associated with such joint ventures, any major public health crisis, eligibility for and potential receipt and timing of receipt of MUD reimbursements, industry risks, changes in buyer preferences, potential additional impairment charges, competition from other real estate developers, our ability to obtain various entitlements and permits, changes in laws, regulations or the regulatory environment affecting the development of real estate, opposition from special interest groups or local governments with respect to development projects, weather- and climate-related risks, environmental and litigation risks, including the timing and resolution of the ongoing litigation challenging the ETJ Law and our ability to implement revised development plans in light of the ETJ Law, the failure to attract buyers or tenants for our developments or such buyers’ or tenants’ failure to satisfy their purchase commitments or leasing obligations, cybersecurity incidents and other factors described in more detail in Part I, Item 1A.
−Removed: “Risk Factors” of our 2024 Form 10-K, filed with the SEC, and Part II, Item 1A.
−Removed: “Risk Factors” of this report.
+Added: recession, the availability and terms of financing for development projects and other corporate purposes, our ability to collect anticipated rental payments and close projected asset sales, loss of key personnel, our ability to enter into and maintain joint ventures, partnerships or other strategic relationships, including risks associated with such joint ventures, any major public health crisis, eligibility for and potential receipt and timing of receipt of MUD reimbursements, industry risks, changes in buyer preferences, potential additional impairment charges, competition from other real estate developers, our ability to obtain various entitlements and permits, changes in laws, regulations or the regulatory environment affecting the development of real estate, opposition from special interest groups or local governments with respect to development projects, weather- and climate-related risks, environmental and litigation risks, including the timing and resolution of the challenges to the ETJ Law and our ability to implement revised development plans in light of the ETJ Law and the letter from the City of Austin, the failure to attract buyers or tenants for our developments or such buyers’ or tenants’ failure to satisfy their purchase commitments or leasing obligations, cybersecurity incidents and other factors described in more detail in Part I, Item 1A.
+Added: “Risk Factors” of our 2025 Form 10-K, filed with the SEC.
Investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made.
4 unchanged sentences
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.