Stratus Properties Inc. Files Q2 2024 10-Q

TL;DR

**STRATUS PROPERTIES INC (STRS) Q2 2024 10-Q FILED. REAL ESTATE & LEASING UPDATE.**

AI Summary

Stratus Properties Inc. filed its 10-Q for the period ending June 30, 2024, reporting on its real estate and leasing operations. The company's fiscal year ends on December 31st. The filing was made on August 13, 2024, and covers the second quarter of 2024.

Why It Matters

This filing provides investors with an update on Stratus Properties' financial performance and operational status for the second quarter of 2024, crucial for understanding the company's real estate and leasing business.

Risk Assessment

Risk Level: medium — As a real estate developer, the company is subject to market fluctuations, interest rate changes, and regulatory risks inherent in the industry.

Key Numbers

• 2024 Q2 — Reporting Period (Second quarter of 2024 financial performance)
• 12/31 — Fiscal Year End (Indicates when the company's fiscal year concludes)

Key Players & Entities

• STRATUS PROPERTIES INC (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240813 (date) — Date the filing was made
• AUSTIN (location) — City of company's business and mailing address

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share STRS The NASDAQ Stock Market

Filing Documents

• strs-20240630.htm (10-Q) — 1080KB
• q224exhibit311.htm (EX-31.1) — 11KB
• q224exhibit312.htm (EX-31.2) — 11KB
• q224exhibit321.htm (EX-32.1) — 6KB
• q224exhibit322.htm (EX-32.2) — 6KB
• strs-20240630_g1.jpg (GRAPHIC) — 14KB
• 0000885508-24-000059.txt ( ) — 5095KB
• strs-20240630.xsd (EX-101.SCH) — 29KB
• strs-20240630_cal.xml (EX-101.CAL) — 42KB
• strs-20240630_def.xml (EX-101.DEF) — 153KB
• strs-20240630_lab.xml (EX-101.LAB) — 414KB
• strs-20240630_pre.xml (EX-101.PRE) — 284KB
• strs-20240630_htm.xml (XML) — 718KB

Financial Information

Part I. Financial Information 2

Financial Statements

Item 1. Financial Statements 2 Consolidated Balance Sheets (Unaudited) 2 Consolidated Statements of Comprehensive Income (Loss) (Unaudited) 3 Consolidated Statements of Cash Flows (Unaudited) 4 Consolidated Statements of Equity (Unaudited) 5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Q uantitative and Qualitative Disclosures About Market Risk

Item 3. Q uantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

Other Information

Part II. Other Information 32

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32

Other Information

Item 5. Other Information 32

Exhibits

Item 6. Exhibits 33 Signature S- 1 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . STRATUS PROPERTIES INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In Thousands) June 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 13,498 $ 31,397 Restricted cash 463 1,035 Real estate held for sale 4,460 7,382 Real estate under development 255,068 260,642 Land available for development 74,280 47,451 Real estate held for investment, net 141,909 144,112 Lease right-of-use assets 10,647 11,174 Deferred tax assets 173 173 Other assets 13,518 14,400 Total assets $ 514,016 $ 517,766 LIABILITIES AND EQUITY Liabilities: Accounts payable $ 10,676 $ 15,629 Accrued liabilities, including taxes 4,800 6,660 Debt 178,315 175,168 Lease liabilities 15,676 15,866 Deferred gain 2,359 2,721 Other liabilities 4,684 7,117 Total liabilities 216,510 223,161 Commitments and contingencies Equity: Stockholders' equity: Common stock 97 96 Capital in excess of par value of common stock 200,114 197,735 Retained earnings 29,472 26,645 Common stock held in treasury ( 33,395 ) ( 32,997 ) Total stockholders' equity 196,288 191,479 Noncontrolling interests in subsidiaries 101,218 103,126 Total equity 297,506 294,605 Total liabilities and equity $ 514,016 $ 517,766 The accompanying Notes to Consolidated Financial Statements (Unaudited) are an integral part of these consolidated financial statements. 2 Table of Contents STRATUS PROPERTIES INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) (In Thousands, Except Per Share Amounts) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenues: Real estate operations $ 3,629 $ 58 $ 25,752 $ 2,551 Leasing operations 4,861 3,472 9,245 6,781 Total revenues 8,490 3,530 34,997 9,332 Cost of sales: Real estate operations 4,424 2,697 19,702 7,184 Leasing operations 1,742 1,144 3,420 2,405 Depreciation and amortization 1,402 970 2,803 1,898 Total cost of sales 7,568 4,811 25,925 11,487 General and administrative

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. GENERAL The unaudited condensed consolidated financial statements and the accompanying notes are prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2023, included in Stratus Properties Inc.'s (Stratus) Annual Report on Form 10-K for the year ended December 31, 2023 (Stratus 2023 Form 10-K) filed with the U.S. Securities and Exchange Commission on March 28, 2024. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported and consist of normal recurring adjustments. The results of operations for any interim period are not necessarily indicative of the results of operations for any other future interim period or for a full fiscal year. Related Party Transactions. In April 2022, Stratus hired the son of Stratus' President and Chief Executive Officer as an employee at an annual salary of $ 100 thousand. He is eligible for the same health and retirement benefits provided to all Stratus employees and is also eligible for annual incentive awards and for awards under the Profit Participation Incentive Plan (PPIP) and the Long-Term Incentive Plan (LTIP). In first-quarter 2023, he received $ 22 thousand as an annual incentive award for 2022, and his annual salary was increased to $ 120 thousand. In first-quarter 2024, he received $ 22 thousand as an annual incentive award for 2023, and his annual salary was increased to $ 124 thousand. As of June 30, 2024, the employee had two outstanding awards under the PPIP. The liability associated with these awards at June 30, 2024 was nominal in amount relative to the consolidated financial statements. Refer to Note 7 for discussion of the PPIP and LTIP. For additional information re

View Full Filing

View this 10-Q filing on SEC EDGAR