Stratus Properties Inc. Files Q3 2024 10-Q

TL;DR

STRATUS PROPERTIES INC 10-Q FILED FOR Q3 2024. CHECK FINANCIALS.

AI Summary

Stratus Properties Inc. filed its 10-Q for the period ending September 30, 2024. The company, primarily involved in real estate development and leasing, reported financial results for the third quarter and the first nine months of the year. Specific financial figures and operational details are contained within the filing.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for Stratus Properties Inc., crucial for understanding the company's current standing and future prospects in the real estate sector.

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

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-11-13 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• STRATUS PROPERTIES INC (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241113 (date) — Filing date
• AUSTIN (location) — City of 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-20240930.htm (10-Q) — 1208KB
• exhibit102_amendedandresta.htm (EX-10.2) — 15KB
• exhibit103_notetexasbank50.htm (EX-10.3) — 13KB
• exhibit104_notetcb2000000-.htm (EX-10.4) — 16KB
• exhibit107_amendmenttoloan.htm (EX-10.7) — 60KB
• exhibit108_extensionagreem.htm (EX-10.8) — 43KB
• q324exhibit311.htm (EX-31.1) — 11KB
• q324exhibit312.htm (EX-31.2) — 11KB
• q324exhibit321.htm (EX-32.1) — 6KB
• q324exhibit322.htm (EX-32.2) — 6KB
• strs-20240930_g1.jpg (GRAPHIC) — 14KB
• 0000885508-24-000071.txt ( ) — 5647KB
• strs-20240930.xsd (EX-101.SCH) — 29KB
• strs-20240930_cal.xml (EX-101.CAL) — 44KB
• strs-20240930_def.xml (EX-101.DEF) — 160KB
• strs-20240930_lab.xml (EX-101.LAB) — 425KB
• strs-20240930_pre.xml (EX-101.PRE) — 293KB
• strs-20240930_htm.xml (XML) — 778KB

Financial Information

Part I. Financial Information 2

Financial Statements

Item 1. Financial Statements 2 Consolidated Balance Sheets (Unaudited) 2 Consolidated Statements of Comprehensive ( Loss) Income (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 17

Q uantitative and Qualitative Disclosures About Market Risk

Item 3. Q uantitative and Qualitative Disclosures About Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 32

Other Information

Part II. Other Information 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Other Information

Item 5. Other Information 33

Exhibits

Item 6. Exhibits 34 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) September 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 19,638 $ 31,397 Restricted cash 698 1,035 Real estate held for sale 4,884 7,382 Real estate under development 261,212 260,642 Land available for development 74,912 47,451 Real estate held for investment, net 137,177 144,112 Lease right-of-use assets 10,368 11,174 Deferred tax assets 173 173 Other assets 14,118 14,400 Total assets $ 523,180 $ 517,766 LIABILITIES AND EQUITY Liabilities: Accounts payable $ 12,341 $ 15,629 Accrued liabilities, including taxes 6,283 6,660 Debt 181,540 175,168 Lease liabilities 15,564 15,866 Deferred gain 2,131 2,721 Other liabilities 5,186 7,117 Total liabilities 223,045 223,161 Commitments and contingencies Equity: Stockholders' equity: Common stock 97 96 Capital in excess of par value of common stock 200,557 197,735 Retained earnings 29,108 26,645 Common stock held in treasury ( 33,395 ) ( 32,997 ) Total stockholders' equity 196,367 191,479 Noncontrolling interests in subsidiaries 103,768 103,126 Total equity 300,135 294,605 Total liabilities and equity $ 523,180 $ 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 Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Revenues: Real estate operations $ 3,971 $ — $ 29,723 $ 2,551 Leasing operations 4,920 3,669 14,165 10,450 Total revenues 8,891 3,669 43,888 13,001 Cost of sales: Real estate operations 5,344 1,467 25,046 8,651 Leasing operations 1,964 1,381 5,384 3,786 Depreciation and amortization 1,365 967 4,168 2,865 Total cost of sales 8,673 3,815 34,598 15,302 Gain on s

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. As an employee, he received the same health and retirement benefits provided to all Stratus employees, annual incentive awards and two awards under the Profit Participation Incentive Plan (PPIP). 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. In September 2024, the employee resigned from employment with Stratus, resulting in the forfeiture of his two outstanding awards under the PPIP. Refer to Note 7 for discussion of the PPIP. For additional information regarding Stratus' related parties, including LCHM Holdings, LLC and JBM Trust, refer to Notes 1 and 2 in the Stratus 2023 Form 10-

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View this 10-Q filing on SEC EDGAR