Stratus Properties Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Stratus Properties Inc. has submitted its annual 10-K filing for the fiscal year ended December 31, 2023, detailing its financial performance and business operations.</b>

AI Summary

STRATUS PROPERTIES INC (STRS) filed a Annual Report (10-K) with the SEC on March 28, 2024. Stratus Properties Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 212 Lavaca Street, Suite 300, Austin, TX 78701. Stratus Properties Inc. is classified under SIC code 6552: Land Subdividers & Developers (No Cemeteries). The report includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking STRATUS PROPERTIES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Stratus Properties Inc.'s financial health, operational activities, and strategic positioning for the past fiscal year, which is crucial for investors and stakeholders to assess the company's performance and future prospects. The detailed financial statements and disclosures within the 10-K allow for a thorough analysis of the company's assets, liabilities, equity, and any changes therein, offering insights into its real estate development and leasing operations.

Risk Assessment

Risk Level: low — STRATUS PROPERTIES INC shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative or positive news, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-K to understand Stratus Properties Inc.'s performance and outlook for the upcoming year.

Key Numbers

• 20231231 — Fiscal Year End (FISCAL YEAR END)
• 6552 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• DE — State of Incorporation (STATE OF INCORPORATION)
• 001-37716 — SEC File Number (SEC FILE NUMBER)
• 24798746 — Film Number (FILM NUMBER)
• 20240328 — Filing Date (FILED AS OF DATE)
• 2023-01-01 — Reporting Period Start (Reporting Period Start Date)
• 2023-12-31 — Reporting Period End (Reporting Period End Date)

Key Players & Entities

• STRATUS PROPERTIES INC (company) — FILER
• 212 LAVACA STREET SUITE 300 (company) — BUSINESS ADDRESS
• AUSTIN (company) — CITY
• TX (company) — STATE
• 78701 (company) — ZIP
• FM PROPERTIES INC (company) — FORMER COMPANY
• 19930328 (date) — DATE OF NAME CHANGE
• 20231231 (date) — CONFORMED PERIOD OF REPORT

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-03-28: Filing Date — Date the 10-K report was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share STRS The NASDAQ Stock Market
• $35.8 million — g in a cash distribution and payment of $35.8 million to us. In 2022, the sale of our mixed-
• $112.3 million — Austin, producing net cash proceeds of $112.3 million and a pre-tax gain of $119.7 million. W
• $119.7 million — of $112.3 million and a pre-tax gain of $119.7 million. We also completed the sale of substant
• $74 million — ated net cash proceeds of approximately $74 million and a pre-tax gain of $83.0 million. Th
• $83.0 million — ately $74 million and a pre-tax gain of $83.0 million. The sale of The Saint Mary, after esta
• $20.9 million — ing costs of the partnership , produced $20.9 million in cash and a pre-tax gain of $22.9 mil
• $22.9 million — 9 million in cash and a pre-tax gain of $22.9 million ($16.2 million net of noncontrolling in
• $16.2 million — sh and a pre-tax gain of $22.9 million ($16.2 million net of noncontrolling interests) . Ove
• $101.3 m — ital for development projects, totaling $101.3 million, including the Holden Hills third
• $4.67 — ard declared a special cash dividend of $4.67 per share (totaling $40.0 million) on o
• $40.0 million — h dividend of $4.67 per share (totaling $40.0 million) on our common stock. Our Board also ap
• $10.0 million — rogram authorizing repurchases of up to $10.0 million of our common stock, which was complete
• $5.0 million — vember 2023, our Board authorized a new $5.0 million share repurchase program. Our Board dec
• $31.4 m — dated cash and cash equivalents totaled $31.4 million, and we had $40.5 million availab

Filing Documents

• strs-20231231.htm (10-K) — 1897KB
• strs-ex41xdescriptionofsec.htm (EX-4.1) — 30KB
• exhibit1022-lantanaplacelo.htm (EX-10.22) — 22KB
• exhibit1025installmentnote.htm (EX-10.25) — 104KB
• exhibit1028thirdmodificati.htm (EX-10.28) — 79KB
• exhibit1049stratusdirector.htm (EX-10.49) — 4KB
• exhibit1061strs-formofrsua.htm (EX-10.61) — 27KB
• exhibit1062strs-formofrsua.htm (EX-10.62) — 27KB
• exhibit1063strs-formofrsua.htm (EX-10.63) — 28KB
• q42310kexhibit211.htm (EX-21.1) — 15KB
• q42310kexhibit231.htm (EX-23.1) — 2KB
• q423exhibit311.htm (EX-31.1) — 11KB
• q423exhibit312.htm (EX-31.2) — 11KB
• q423exhibit321.htm (EX-32.1) — 6KB
• q423exhibit322.htm (EX-32.2) — 6KB
• exhibit971strs-incentivexb.htm (EX-97.1) — 56KB
• image_0.jpg (GRAPHIC) — 10KB
• strs-20231231_g1.jpg (GRAPHIC) — 14KB
• strs-20231231_g2.jpg (GRAPHIC) — 55KB
• strs-20231231_g3.jpg (GRAPHIC) — 64KB
• 0000885508-24-000029.txt (&nbsp;) — 11145KB
• strs-20231231.xsd (EX-101.SCH) — 74KB
• strs-20231231_cal.xml (EX-101.CAL) — 77KB
• strs-20231231_def.xml (EX-101.DEF) — 650KB
• strs-20231231_lab.xml (EX-101.LAB) — 812KB
• strs-20231231_pre.xml (EX-101.PRE) — 832KB
• strs-20231231_htm.xml (XML) — 1179KB

Risk Factors

Item 1A. Risk Factors 12

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 22

Cybersecurity

Item 1C. Cybersecurity 23

Legal Proceedings

Item 3. Legal Proceedings 24

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 24 Information About Our Executive Officers 24 Part II 26

Market for Registrant's Common Equity, Related Stockholder Matters and

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26

Reserved

Item 6. Reserved 27 Items 7. and 7A. Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk 27

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 46

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 78

Controls and Procedures

Item 9A. Controls and Procedures 78

Other Information

Item 9B. Other Information 79

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 79 Part III 79

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 79

Executive Compensation

Item 11. Executive Compensation 79

Security Ownership of Certain Beneficial Owners and Management and Related

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 79

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 79

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 79 Part IV 79

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 79

Form 10-K Summary

Item 16. Form 10-K Summary 85

Signatures

Signatures S-1 Table of Contents PART I Items 1. and 2. Business and Properties All of our periodic reports filed with the United States (U.S.) Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, through our website, "stratusproperties.com," including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports. These reports and amendments are available through our website as soon as reasonably practicable after we electronically file such material with, or furnish such material to, the SEC. Our website is intended to provide information that may be of interest to investors and other stakeholders. None of the information on, or accessible through, our website is part of this Form 10-K or is incorporated by reference herein. Except as otherwise described herein or where the context otherwise requires, all references to "Stratus," "we," "us" and "our" refer to Stratus Properties Inc. and all entities owned or controlled by Stratus Properties Inc. References to "Notes" refer to the Notes to Consolidated Financial Statements included herein (refer to Item 8.), and references to "MD&A" refer to Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk included herein (refer to Items 7. and 7A.). The following discussion includes forward-looking statements and actual results may differ materially from those anticipated in the forward-looking statements (refer to Item 1A. "Risk Factors" and "Cautionary Statement" in MD&A for additional information). Overview We are a diversified real estate company with headquarters in Austin, Texas. We are engaged primarily in the entitlement, development, management, leasing and sale of multi-family and single-family residential and commercial real estate proper

Properties

Properties Our properties are primarily located in the Austin, Texas area, but include properties in other select markets in Texas. Substantially all of our properties are encumbered pursuant to the terms of our debt agreements. Refer to Note 6 for further discussion. Our Austin-area properties include the following: Barton Creek We have several properties that are located in the Barton Creek community, which is a 4,000-acre upscale community located southwest of downtown Austin. Amarra Drive. Amarra Drive is a subdivision featuring lots ranging from one to over five acres. In 2015, we completed the development of the Amarra Drive Phase III subdivision, which consists of 64 lots on 166 acres. As of December 31, 2023, two developed Phase III lots remained unsold. Amarra Multi-family and Commercial. We also have multi-family and commercial lots in the Amarra development of Barton Creek. The Amarra Villas and The Saint June are located on two of these multi-family lots. During 2022, we sold a six-acre multi-family tract of land. As of December 31, 2023, we have one undeveloped approximately 11-acre multi-family lot and one undeveloped 22-acre commercial lot. Amarra Villas. The Villas at Amarra Drive (Amarra Villas) is a 20-unit project within the Amarra development. The homes average approximately 4,400 square feet and are being marketed as "lock and leave" properties, with golf 7 Table of Contents course access and cart garages. We completed construction and sale of the first seven homes between 2017 and 2019. We began construction on the next two Amarra Villas homes in first-quarter 2020, one of which was completed and sold for $2.4 million in second-quarter 2022. In 2021, we began construction of one additional home and in 2022, we began construction on the remaining ten homes. In fourth-quarter 2022, we completed and sold one home for $3.6 million. In first-quarter 2023, we completed and sold one home for $2.5 million. Construction was completed o

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