0000885508-23-000029 | 10-Q | XBRL Viewer

Dispositions Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 5,802	$ 3,099
Leasing operations	3,309	3,080
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization	5,748	2,350
Depreciation and amortization	928	873
Cost of Revenue	6,676	3,223
General and administrative expenses	4,719	3,167
Operating income (loss)	(5,593)	1,521
Interest expense, net	0	(15)
(Provision for) benefit from income taxes	(1,162)	302
Net (loss) income	(6,273)	2,187
Eliminations and Other
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		0
Discontinued Operations, Disposed of by Sale \| Block 21
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		11,937
Leasing operations		726
Depreciation and amortization		0
Cost of Revenue		9,353
General and administrative expenses		100
Operating income (loss)		2,484
Interest expense, net		(1,945)
(Provision for) benefit from income taxes		(164)
Net (loss) income		375
Discontinued Operations, Disposed of by Sale \| Block 21 \| Eliminations and Other
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue		321
Hotel [Member] \| Discontinued Operations, Disposed of by Sale \| Block 21
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		5,871
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization		4,743
Entertainment [Member] \| Discontinued Operations, Disposed of by Sale \| Block 21
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		5,340
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization		4,139
Leasing operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization	$ 1,261	984
Leasing operations \| Discontinued Operations, Disposed of by Sale \| Block 21
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization		$ 471

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Parent [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Noncontrolling Interest [Member]
Balance (in shares) at Dec. 31, 2021			9,388,000
Balance at Dec. 31, 2021	$ 208,613	$ 158,137	$ 94	$ 188,759	$ (8,963)		$ 50,476
Treasury balance (in shares) at Dec. 31, 2021						1,143,000
Treasury balance at Dec. 31, 2021						$ (21,753)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercised and issued stock-based awards (in shares)			39,000
Exercised and vested stock-based awards	0
Stock-based compensation	212	212		212
Tender of shares for stock-based awards (in shares)						11,000
Tender of shares for stock-based awards	(452)	(452)				$ (452)
Total comprehensive loss	2,187	2,272			2,272		(85)
Balance (in shares) at Mar. 31, 2022			9,427,000
Balance at Mar. 31, 2022	210,560	160,169	$ 94	188,971	(6,691)		50,391
Treasury balance (in shares) at Mar. 31, 2022						1,154,000
Treasury balance at Mar. 31, 2022						$ (22,205)
Balance (in shares) at Dec. 31, 2022			9,439,000
Balance at Dec. 31, 2022	272,073	207,248	$ 94	195,773	41,452		64,825
Treasury balance (in shares) at Dec. 31, 2022						1,448,000
Treasury balance at Dec. 31, 2022						$ (30,071)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercised and issued stock-based awards (in shares)			40,000
Stock Issued During Period, Value, Issued for Services	6	6		6
Stock-based compensation	529	529		529
Tender of shares for stock-based awards (in shares)						11,000
Tender of shares for stock-based awards	$ (216)	(216)				$ (216)
Stock Repurchased During Period, Shares	43,624					44,000
Stock Repurchased During Period, Value	$ (894)	(894)				$ (894)
Total comprehensive loss	(6,273)	(5,801)			(5,801)		(472)
Contributions from noncontrolling interests	40,000						40,000
Balance (in shares) at Mar. 31, 2023			9,479,000
Balance at Mar. 31, 2023	$ 305,225	$ 200,872	$ 94	$ 196,308	$ 35,651		$ 104,353
Treasury balance (in shares) at Mar. 31, 2023						1,503,000
Treasury balance at Mar. 31, 2023						$ (31,181)

Debt Summary of Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Table [Abstract]

Schedule of debt

The components of Stratus' debt follow (in thousands):


	March 31, 2023		December 31, 2022
Comerica Bank revolving credit facility	$	—	$	—
Jones Crossing loan	23,938		24,143
The Annie B land loan	13,933		13,969
New Caney land loan	—		4,047
Construction loans:
Kingwood Place	27,768		27,507
Lantana Place	21,787		21,782
The Saint June	21,001		13,829
Magnolia Place	7,174		6,816
West Killeen Market	5,289		5,306
Amarra Villas revolving credit facility	7,446		5,366
Total debt a b	$	128,336	$	122,765

a.Includes net reductions for unamortized debt issuance costs of $1.0 million at March 31, 2023, and $1.1 million at December 31, 2022.

b.The Saint George and Holden Hills construction loans did not have outstanding balances at March 31, 2023 or December 31, 2022 (for The Saint George construction loan).

Compensation Related Costs, General (Tables)

3 Months Ended

Mar. 31, 2023

Share-based Payment Arrangement, Cost by Plan

A summary of PPIP costs follows (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Charged to general and administrative expense	$	148	$	15
Capitalized to project development costs	110		51
Total PPIP costs	$	258	$	66

Fair Value Measurements - Carrying Amount and Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 128,336	$ 122,765
Fair Value \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 130,075	$ 124,575

Business Segments Revenues from External Customers for Products and Services (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Real estate revenue	$ 2,493	$ 19
Leasing operations	3,309	3,080
Revenues	5,802	3,099
Real estate operations
Revenue from External Customer [Line Items]
Real estate revenue	2,493	19
Real Estate Operations \| Developed Property
Revenue from External Customer [Line Items]
Real estate revenue	2,493	0
Real Estate Operations \| Undeveloped Property
Revenue from External Customer [Line Items]
Real estate revenue	0	0
Real Estate Operations \| Commissions and other
Revenue from External Customer [Line Items]
Real estate revenue	0	19
Leasing Operations
Revenue from External Customer [Line Items]
Leasing operations	$ 3,309	$ 3,080

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	(23.00%)	(20.00%)
Deferred Tax Assets, State Taxes	$ 38		$ 38

Earnings Per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net (loss) income from continuing operations	$ (6,273)	$ 1,812
Net (loss) income from discontinued operations	0	375
Net (loss) income and total comprehensive (loss) income	(6,273)	2,187
Total comprehensive loss attributable to noncontrolling interests	472	85
Net (loss) income and total comprehensive (loss) income attributable to common stockholders	$ (5,801)	$ 2,272
Basic weighted average number of shares outstanding, basic (in shares)	8,224	8,251
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) (in shares)	0	104
Diluted weighted average number of shares outstanding, basic (in shares)	8,224	8,355
Income (Loss) from Continuing Operations, Per Basic Share	$ (0.71)	$ 0.23
Income (Loss) from Discontinued Operations, Per Basic Share	0	0.05
Basic net (loss) income per share attributable to common stockholders (in usd per share)	(0.71)	0.28
Income (Loss) from Continuing Operations, Per Diluted Share	(0.71)	0.23
Income (Loss) from Discontinued Operations, Per Diluted Share	0	0.04
Diluted net (loss) income per share attributable to common stockholders (in usd per share)	$ (0.71)	$ 0.27
Weighted-average shares excluded from computation of earnings per share (in shares)	295	4

Dispositions (Details)		3 Months Ended		9 Months Ended
Dispositions (Details)	May 31, 2022 USD ($) hotel_room theater_seat	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2017 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of assets		$ 0	$ 4,812,000
Deferred gain		3,289,000			$ 3,519,000
Lakeway Master Lease Retail
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Term of contract						5 years
Lakeway Master Lease Hotel
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Term of contract						99 years
Lakeway Master Lease Unleased 3 Pad Sites
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Term of contract						10 years
Lakeway Master Lease Unleased 1 Pad Site
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Term of contract						15 years
Discontinued Operations, Disposed of by Sale \| Block 21
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Sale of Property Held-for-sale	$ 260,000,000
Loans Assumed	136,200,000
Proceeds from Sale of Productive Assets	112,300,000
Escrow deposits related to property sales	6,900,000
Gain on sale of assets	$ 119,700,000
Number of Hotel Rooms \| hotel_room	251
Number Of Theater Seats \| theater_seat	2,750
Capital Expenditure, Discontinued Operations			$ 182,000
Disposal by sale \| The Oaks at Lakeway
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Sale of Real Estate Held-for-investment				$ 114,000,000
Lessee, Operating Lease, Monthly Rent Payment		2,500
Payments for Cancellation of Operating Lease		560,000
Contractual Obligation						$ 74,000
Deferred Revenue, Revenue Recognized				$ 4,800,000
Deferred gain		$ 3,300,000			$ 3,500,000

Limited Partnerships (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Assets and Liabilities of the VIE Partnerships

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


	March 31, 2023 a		December 31, 2022
Assets: b
Cash and cash equivalents	$	5,897	$	7,744
Real estate under development	140,252		107,968
Land available for development	3,927		3,927
Real estate held for investment	31,494		31,415
Other assets	5,885		4,503
Total assets	187,455		155,557
Liabilities: c
Accounts payable and accrued liabilities	10,987		12,247
Debt	62,702		55,305
Total liabilities	73,689		67,552
Net assets	$	113,766	$	88,005

a.Includes the assets and liabilities of the Holden Hills partnership, which was formed in January 2023.

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

c.All of the debt is guaranteed by Stratus until certain conditions are met in the individual partnership loan agreements. The creditors for the remaining liabilities do not have recourse to the general credit of Stratus.

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 50,895	$ 37,666
Restricted cash	8,889	8,043
Real estate held for sale	1,773	1,773
Real estate under development	246,819	239,278
Land available for development	48,858	39,855
Real estate held for investment, net	92,433	92,377
Lease right-of-use assets	11,981	10,631
Deferred tax assets	38	38
Other assets	18,033	15,479
Total assets	479,719	445,140
Liabilities:
Accounts payable	14,684	15,244
Accrued liabilities, including taxes	5,929	7,049
Debt	128,336	122,765
Lease liabilities	16,382	14,848
Deferred gain	3,289	3,519
Other liabilities	5,874	9,642
Total liabilities	174,494	173,067
Commitments and contingencies
Stockholders’ equity:
Common stock	94	94
Capital in excess of par value of common stock	196,308	195,773
Retained earnings	35,651	41,452
Common stock held in treasury	(31,181)	(30,071)
Total stockholders’ equity	200,872	207,248
Noncontrolling interests in subsidiaries	104,353	64,825
Total equity	305,225	272,073
Total liabilities and equity	$ 479,719	$ 445,140

Limited Partnerships (Schedule of Assets and Liabilities of the VIE Partnerships (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Limited Partnerships [Line Items]
Cash and cash equivalents	$ 50,895	$ 37,666
Real estate under development	246,819	239,278
Land available for development	48,858	39,855
Real estate held for investment, net	92,433	92,377
Other assets	18,033	15,479
Total assets	479,719	445,140	$ 544,768
Debt	128,336	122,765
Total liabilities	174,494	173,067
Limited Partnerships [Member]
Limited Partnerships [Line Items]
Cash and cash equivalents	5,897	7,744
Real estate under development	140,252	107,968
Land available for development	3,927	3,927
Real estate held for investment, net	31,494	31,415
Other assets	5,885	4,503
Total assets	187,455	155,557
Accounts payable and accrued liabilities	10,987	12,247
Debt	62,702	55,305
Total liabilities	73,689	67,552
Net assets	$ 113,766	$ 88,005

General	3 Months Ended
General	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	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, 2022, included in Stratus Properties Inc.’s (Stratus) Annual Report on Form 10-K for the year ended December 31, 2022 (Stratus 2022 Form 10-K) filed with the U.S. Securities and Exchange Commission on March 31, 2023. 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. Refer to Note 4 for a discussion of Stratus' discontinued operations. Related Party Transactions. Through the first quarter of 2022, Stratus had an arrangement with Whitefish Partners, LLC (Whitefish Partners), formerly known as Austin Retail Partners, LLC, for services provided by a consultant of Whitefish Partners who is the son of Stratus' President and Chief Executive Officer. Payments to Whitefish Partners for the consultant’s consulting services and expense reimbursements totaled $185 thousand for first-quarter 2022, which included $20 thousand as an annual incentive award for 2021 and a $135 thousand cash payment under Stratus’ Profit Participation Incentive Plan (PPIP). In April 2022, Stratus hired the consultant as an employee at an annual salary of $100 thousand. As an employee, 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 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. As of March 31, 2023, the employee has two outstanding awards under the PPIP. The liability associated with these awards at March 31, 2023 is not significant to the consolidated financial statements. Refer to Note 7 for discussion of the PPIP and LTIP. For additional information regarding Stratus' related parties, including LCHM Holdings, LLC and JBM Trust, refer to Notes 1, 2 and 4 in the Stratus 2022 Form 10-K.

Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).

The carrying value for certain Stratus financial instruments (i.e., cash and cash equivalents, restricted cash, accounts payable and accrued liabilities) approximates fair value because of their short-term nature and generally negligible credit losses.

A summary of the carrying amount and fair value of Stratus' debt follows (in thousands):


	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value



Liabilities:
Debt	$	128,336	$	130,075	$	122,765	$	124,575

Stratus' debt is recorded at cost and is not actively traded. Fair value is estimated based on discounted future expected cash flows at estimated current market interest rates. Accordingly, Stratus' debt is classified within Level 2 of the fair value hierarchy. The fair value of debt does not represent the amounts that will ultimately be paid upon the maturities of the loans.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Cover Page Cover Page - shares	3 Months Ended
Cover Page Cover Page - shares	Mar. 31, 2023	May 10, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-37716
Entity Registrant Name	Stratus Properties Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	72-1211572
Entity Address, Address Line One	212 Lavaca Street, Suite 300
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78701
City Area Code	512
Local Phone Number	478-5788
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	STRS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		7,955,217
Entity Central Index Key	0000885508
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

General (Policies)	3 Months Ended
General (Policies)	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	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, 2022, included in Stratus Properties Inc.’s (Stratus) Annual Report on Form 10-K for the year ended December 31, 2022 (Stratus 2022 Form 10-K) filed with the U.S. Securities and Exchange Commission on March 31, 2023. 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. Refer to Note 4 for a discussion of Stratus' discontinued operations.
Related Party Transactions	Related Party Transactions. Through the first quarter of 2022, Stratus had an arrangement with Whitefish Partners, LLC (Whitefish Partners), formerly known as Austin Retail Partners, LLC, for services provided by a consultant of Whitefish Partners who is the son of Stratus' President and Chief Executive Officer. Payments to Whitefish Partners for the consultant’s consulting services and expense reimbursements totaled $185 thousand for first-quarter 2022, which included $20 thousand as an annual incentive award for 2021 and a $135 thousand cash payment under Stratus’ Profit Participation Incentive Plan (PPIP). In April 2022, Stratus hired the consultant as an employee at an annual salary of $100 thousand. As an employee, 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 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. As of March 31, 2023, the employee has two outstanding awards under the PPIP. The liability associated with these awards at March 31, 2023 is not significant to the consolidated financial statements. Refer to Note 7 for discussion of the PPIP and LTIP. For additional information regarding Stratus' related parties, including LCHM Holdings, LLC and JBM Trust, refer to Notes 1, 2 and 4 in the Stratus 2022 Form 10-K.

Earnings Per Share (Policies)	3 Months Ended
Earnings Per Share (Policies)	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Stratus’ basic net (loss) income per share of common stock was calculated by dividing the net (loss) income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period.

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Real estate operations	$ 2,493	$ 19
Leasing operations	3,309	3,080
Total revenues	5,802	3,099
Cost of sales:
Cost of sales	5,748	2,350
Depreciation and amortization	928	873
Total cost of sales	6,676	3,223
General and administrative expenses	4,719	3,167
Gain on sale of assets	0	(4,812)
Total	11,395	1,578
Operating (loss) income	(5,593)	1,521
Interest expense, net	0	(15)
Other income, net	485	6
(Loss) income before income taxes and equity in unconsolidated affiliate's loss	(5,108)	1,512
(Provision for) benefit from income taxes	(1,162)	302
Equity in unconsolidated affiliate's loss	(3)	(2)
Net (loss) income from continuing operations	(6,273)	1,812
Net (loss) income from discontinued operations	0	375
Net (loss) income and total comprehensive (loss) income	(6,273)	2,187
Total comprehensive loss attributable to noncontrolling interests	472	85
Net (loss) income and total comprehensive (loss) income attributable to common stockholders	$ (5,801)	$ 2,272
Income (Loss) from Continuing Operations, Per Basic Share	$ (0.71)	$ 0.23
Income (Loss) from Discontinued Operations, Per Basic Share	0	0.05
Basic net (loss) income per share attributable to common stockholders (in usd per share)	(0.71)	0.28
Income (Loss) from Continuing Operations, Per Diluted Share	(0.71)	0.23
Income (Loss) from Discontinued Operations, Per Diluted Share	0	0.04
Diluted net (loss) income per share attributable to common stockholders (in usd per share)	$ (0.71)	$ 0.27
Basic weighted average number of shares outstanding, basic (in shares)	8,224	8,251
Diluted weighted average number of shares outstanding, basic (in shares)	8,224	8,355
Real estate operations
Revenues:
Real estate operations	$ 2,493	$ 19
Cost of sales:
Cost of sales	4,487	1,366
Leasing operations
Cost of sales:
Cost of sales	$ 1,261	$ 984

Profit Participation Incentive Plan

3 Months Ended

Mar. 31, 2023

Profit Participation Plan [Abstract]

Profit Participation Incentive Plan

PROFIT PARTICIPATION INCENTIVE PLAN AND LONG-TERM INCENTIVE PLAN

In July 2018, the Compensation Committee adopted the PPIP. In February 2023, the Committee approved the LTIP, which amends and restates the PPIP, and is effective for participation interests awarded under development projects on or after its effective date. As of March 31, 2023, there were not yet any participation interests awarded under the LTIP. Outstanding participation interests granted under the PPIP will continue to be governed by the terms of the prior PPIP. The PPIP and LTIP provide participants with economic incentives tied to the success of the development projects designated by the Committee as approved projects under the PPIP and LTIP. Estimates related to the awards may change over time as a result of differences between projected and actual development progress and costs, market conditions and the timing of capital transactions or valuation events. Refer to Notes 1 and 8 of the Stratus 2022 Form 10-K for further discussion.

The sale of The Saint Mary in January 2021 was a capital transaction under the PPIP. During February 2022, $2.1 million was paid in cash to eligible participants.

In September 2021, Lantana Place reached a valuation event under the PPIP. The profit pool was $3.9 million, of which $0.2 million was paid in cash during February 2022 and the remaining $3.7 million was settled in RSUs with a three-year vesting period awarded to eligible participants during second-quarter 2022 following stockholder approval of Stratus’ new stock incentive plan.

The sale of The Santal in December 2021 was a capital transaction under the PPIP. The profit pool was $6.7 million, of which $5.0 million was paid in cash to eligible participants during February 2022. The PPIP contains limits on cash compensation paid to certain officers and amounts due above the limits are converted to an equivalent number of RSUs with a one-year vesting period. Of the remaining amount, $1.6 million was settled in RSUs awarded to one participant during second-quarter 2022 following stockholder approval of Stratus’ new stock incentive plan.

During first-quarter 2022, the Compensation Committee designated The Saint June as an approved project under the PPIP, and the awards were granted in August 2022.

Under the terms of the PPIP and LTIP, the number of RSUs granted in connection with settlement of approved projects is determined by reference to the 12-month trailing average stock price for the year the project reaches a payment event, whereas the grant date fair value of the RSUs for accounting purposes is based on the grant date closing price. For the RSUs awarded in connection with Lantana Place and The Santal, the aggregate grant date value was $2.1 million greater than the accrued liability for the two projects as a result of this different valuation methodology. During second-quarter 2022, Stratus transferred the $5.3 million accrued liability balance under the PPIP for Lantana Place and The Santal that was settled in RSUs to capital in excess of par value and is amortizing the $2.1 million excess of the grant-date value over the accrued liability with a charge to general and administrative expenses and a credit to capital in excess of par value over the three-year or one-year vesting periods of the related RSUs.

A summary of PPIP costs follows (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Charged to general and administrative expense	$	148	$	15
Capitalized to project development costs	110		51
Total PPIP costs	$	258	$	66

The accrued liability for the PPIP totaled $3.2 million at March 31, 2023, and $3.0 million at December 31, 2022 (included in other liabilities).

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Stratus evaluated events after March 31, 2023, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements.

Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Stratus’ basic net (loss) income per share of common stock was calculated by dividing the net (loss) income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. A reconciliation of net (loss) income and weighted-average shares of common stock outstanding for purposes of calculating diluted net (loss) income per share (in thousands, except per share amounts) follows:


	Three Months Ended
	March 31,
	2023		2022
Net (loss) income from continuing operations	$	(6,273)	$	1,812
Net income from discontinued operations	—		375
Net (loss) income and total comprehensive (loss) income	(6,273)		2,187
Total comprehensive loss attributable to noncontrolling interests	472		85
Net (loss) income and total comprehensive (loss) income attributable to common stockholders	$	(5,801)	$	2,272

Basic weighted-average shares of common stock outstanding	8,224		8,251
Add shares issuable upon vesting of dilutive restricted stock units (RSUs) a	—		104
Diluted weighted-average shares of common stock outstanding	8,224		8,355

Basic net (loss) income per share attributable to common stockholders:
Continuing operations	$	(0.71)	$	0.23
Discontinued operations	—		0.05
	$	(0.71)	$	0.28

Diluted net (loss) income per share attributable to common stockholders:
Continuing operations	$	(0.71)	$	0.23
Discontinued operations	—		0.04
	$	(0.71)	$	0.27

a.For the three months ended March 31, 2023, excludes 295 thousand shares of common stock associated with RSUs that were anti-dilutive as a result of the net loss. For the three months ended March 31, 2022, excludes 4 thousand shares of common stock associated with RSUs that were anti-dilutive.

Business Segments

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

As a result of the sale of Block 21, Stratus has two operating segments: Real Estate Operations and Leasing Operations. Block 21, which encompassed Stratus’ Hotel and Entertainment segments, along with some leasing operations, is presented as discontinued operations.

The Real Estate Operations segment is comprised of Stratus’ real estate assets (developed for sale, under development and available for development), which consists of its properties in Austin, Texas (including the Barton Creek Community, which includes Section N, Holden Hills, Amarra multi-family and commercial land, Amarra Villas, The Saint June, Amarra Drive lots and other vacant land; the Circle C community; the Lantana community, which includes a portion of Lantana Place planned for a multi-family phase now known as The Saint Julia; The Saint George; and the land for The Annie B); in Lakeway, Texas, located in the greater Austin area (Lakeway); in College Station, Texas (land for future phases of retail and multi-family development and retail pad sites at Jones Crossing); and in Magnolia, Texas (land for a future phase of retail development and for future multi-family use and retail pad

sites at Magnolia Place), Kingwood, Texas (a retail pad site) and New Caney, Texas (New Caney), each located in the greater Houston area.

The Leasing Operations segment is comprised of Stratus’ real estate assets held for investment that are leased or available for lease and includes retail space at West Killeen Market, Lantana Place, Kingwood Place and the completed portions of Jones Crossing and Magnolia Place and retail pad sites subject to ground leases at Lantana Place, Kingwood Place and Jones Crossing.

Stratus uses operating income or loss to measure the performance of each segment. 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. The following segment information reflects management determinations that may not be indicative of what the actual financial performance of each segment would be if it were an independent entity.

Revenues from Contracts with Customers. Stratus' revenues from contracts with customers follow (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Real Estate Operations:
Developed property sales	$	2,493	$	—
Undeveloped property sales	—		—
Commissions and other	—		19
	2,493		19
Leasing Operations:
Rental revenue	3,309		3,080
	3,309		3,080

Total revenues from contracts with customers	$	5,802	$	3,099

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


	Real Estate Operations a		Leasing Operations		Corporate, Eliminations and Other b		Total
Revenues:
Unaffiliated customers	$	2,493	$	3,309	$	—	$	5,802
Cost of sales, excluding depreciation	(4,487)		(1,261)		—		(5,748)
Depreciation and amortization	(27)		(906)		5		(928)
General and administrative expenses	—		—		(4,719)		(4,719)
Operating (loss) income	$	(2,021)	$	1,142	$	(4,714)	$	(5,593)
Capital expenditures and purchases and development of real estate properties	$	9,027	$	10,006	$	—	$	19,033
Total assets at March 31, 2023 c	307,571		109,136		63,012		479,719

a.Includes sales commissions and other revenues together with related expenses.

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

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

Summarized financial information by segment for the three months ended March 31, 2022, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):


	Real Estate Operations a		Leasing Operations		Corporate, Eliminations and Other b		Total
Revenues:
Unaffiliated customers	$	19	$	3,080	$	—	$	3,099
Intersegment	4		—		(4)		—
Cost of sales, excluding depreciation	(1,366)		(984)		—		(2,350)
Depreciation and amortization	(25)		(852)		4		(873)
General and administrative expenses	—		—		(3,167)		(3,167)
Gain on sale of assets c	—		4,812		—		4,812
Operating (loss) income	$	(1,368)	$	6,056	$	(3,167)	$	1,521
Capital expenditures and purchases and development of real estate properties	$	4,864	$	14,542	$	182	$	19,588
Total assets at March 31, 2022 d	254,212		106,652		183,904		544,768

a.Includes sales commissions and other revenues together with related expenses.

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

c.Represents a pre-tax gain recognized on the reversal of accruals for costs to lease and construct buildings under a master lease arrangement that Stratus entered into in connection with its sale of The Oaks at Lakeway in 2017. Refer to Note 4 under the heading “The Oaks at Lakeway” for further discussion.

d.Corporate, eliminations and other includes $151.2 million of assets held for sale associated with discontinued operations at Block 21 and cash, cash equivalents and restricted cash of $15.8 million.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Limited Partnerships (Details) - USD ($) $ in Thousands		3 Months Ended
Limited Partnerships (Details) - USD ($) $ in Thousands	May 11, 2023	Mar. 31, 2023
Saint George L.P. \| Stratus Properties Inc
Limited Partnerships [Line Items]
Equity Method Investment, Ownership Percentage		10.00%
Stratus Block 150, L.P. \| Stratus Properties Inc
Limited Partnerships [Line Items]
Equity Method Investment, Ownership Percentage		31.00%
Saint June, L.P. \| Stratus Properties Inc
Limited Partnerships [Line Items]
Equity Method Investment, Ownership Percentage		34.13%
Stratus Kingwood, L.P. [Member] \| Stratus Properties Inc
Limited Partnerships [Line Items]
Equity Method Investment, Ownership Percentage		60.00%
Holden Hills
Limited Partnerships [Line Items]
Initial project and closing cost		$ 5,800
Property Management Fee, Percent Fee		4.00%
Management Fee Expense		$ 150
Holden Hills \| Stratus Properties Inc
Limited Partnerships [Line Items]
Proceeds from Partnership Contribution		$ 70,000
Equity Method Investment, Ownership Percentage		50.00%
Payments of Distributions to Affiliates		$ 30,000
Percentage of costs reimbursed		60.00%
Municipal improvements		$ 14,700
Holden Hills \| Stratus Properties Inc \| Forecast \| Maximum [Member]
Limited Partnerships [Line Items]
Payments to Acquire Interest in Subsidiaries and Affiliates	$ 10,000
Holden Hills \| Unrelated Equity Investor
Limited Partnerships [Line Items]
Proceeds from Partnership Contribution		$ 40,000
Equity Method Investment, Ownership Percentage		50.00%
Holden Hills \| Unrelated Equity Investor \| Forecast \| Maximum [Member]
Limited Partnerships [Line Items]
Payments to Acquire Interest in Subsidiaries and Affiliates	$ 10,000

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flow from operating activities:
Net (loss) income	$ (6,273)	$ 2,187
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	928	873
Cost of real estate sold	2,010	0
Gain on sale of assets	0	(4,812)
Debt issuance cost amortization and stock-based compensation	713	515
Equity in unconsolidated affiliate’s loss	3	2
Deferred income taxes	0	1,167
Purchases and development of real estate properties	(9,027)	(4,864)
Increase in other assets	(2,945)	(5,559)
Decrease in accounts payable, accrued liabilities and other	(3,813)	(7,629)
Net cash used in operating activities	(18,404)	(18,120)
Cash flow from investing activities:
Capital expenditures	(10,006)	(14,724)
Payments on master lease obligations	(248)	(182)
Payments for (Proceeds from) Other Investing Activities	22	0
Net cash used in investing activities	(10,232)	(14,906)
Cash flow from financing activities:
Borrowings from revolving credit facility	0	10,000
Borrowings from project loans	11,618	5,111
Payments on project and term loans	(6,551)	(1,172)
Payment of dividends	(184)	0
Finance Lease, Principal Payments	(4)	0
Stock-based awards net payments	(216)	(452)
Noncontrolling interest contribution	40,000	0
Purchases of treasury stock	(894)	0
Financing costs	(1,058)	(17)
Net cash provided by financing activities	42,711	13,470
Net increase (decrease) in cash, cash equivalents and restricted cash	14,075	(19,556)
Cash, cash equivalents and restricted cash at beginning of year	45,709	70,139
Cash, cash equivalents and restricted cash at end of period	$ 59,784	$ 50,583

Business Segments (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Revenue from External Customers by Products and Services [Table Text Block]

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


	Three Months Ended
	March 31,
	2023		2022
Real Estate Operations:
Developed property sales	$	2,493	$	—
Undeveloped property sales	—		—
Commissions and other	—		19
	2,493		19
Leasing Operations:
Rental revenue	3,309		3,080
	3,309		3,080

Total revenues from contracts with customers	$	5,802	$	3,099

Schedule of Segment Reporting Information by Segment [Table Text Block]

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


	Real Estate Operations a		Leasing Operations		Corporate, Eliminations and Other b		Total
Revenues:
Unaffiliated customers	$	2,493	$	3,309	$	—	$	5,802
Cost of sales, excluding depreciation	(4,487)		(1,261)		—		(5,748)
Depreciation and amortization	(27)		(906)		5		(928)
General and administrative expenses	—		—		(4,719)		(4,719)
Operating (loss) income	$	(2,021)	$	1,142	$	(4,714)	$	(5,593)
Capital expenditures and purchases and development of real estate properties	$	9,027	$	10,006	$	—	$	19,033
Total assets at March 31, 2023 c	307,571		109,136		63,012		479,719

a.Includes sales commissions and other revenues together with related expenses.

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

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


	Real Estate Operations a		Leasing Operations		Corporate, Eliminations and Other b		Total
Revenues:
Unaffiliated customers	$	19	$	3,080	$	—	$	3,099
Intersegment	4		—		(4)		—
Cost of sales, excluding depreciation	(1,366)		(984)		—		(2,350)
Depreciation and amortization	(25)		(852)		4		(873)
General and administrative expenses	—		—		(3,167)		(3,167)
Gain on sale of assets c	—		4,812		—		4,812
Operating (loss) income	$	(1,368)	$	6,056	$	(3,167)	$	1,521
Capital expenditures and purchases and development of real estate properties	$	4,864	$	14,542	$	182	$	19,588
Total assets at March 31, 2022 d	254,212		106,652		183,904		544,768

a.Includes sales commissions and other revenues together with related expenses.

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

Debt

3 Months Ended

Mar. 31, 2023

Capitalization, Long-Term Debt and Equity [Abstract]

Debt

DEBT AND EQUITY

The components of Stratus' debt follow (in thousands):


	March 31, 2023		December 31, 2022
Comerica Bank revolving credit facility	$	—	$	—
Jones Crossing loan	23,938		24,143
The Annie B land loan	13,933		13,969
New Caney land loan	—		4,047
Construction loans:
Kingwood Place	27,768		27,507
Lantana Place	21,787		21,782
The Saint June	21,001		13,829
Magnolia Place	7,174		6,816
West Killeen Market	5,289		5,306
Amarra Villas revolving credit facility	7,446		5,366
Total debt a b	$	128,336	$	122,765

a.Includes net reductions for unamortized debt issuance costs of $1.0 million at March 31, 2023, and $1.1 million at December 31, 2022.

b.The Saint George and Holden Hills construction loans did not have outstanding balances at March 31, 2023 or December 31, 2022 (for The Saint George construction loan).

Comerica Bank revolving credit facility. As of March 31, 2023, Status had $42.7 million available under the Comerica Bank revolving credit facility. Letters of credit, totaling $11.0 million, have been issued under the revolving credit facility, and secure the company’s obligation to build certain roads and utilities facilities benefiting Holden Hills and Section N. In March 2023, Stratus entered into a modification of the revolving credit facility, which extended the maturity date of the revolving credit facility to March 27, 2025, and increased the floor of the facility’s benchmark rate, the Bloomberg Short-Term Bank Yield Index (BSBY) Rate. As amended, advances under the revolving credit facility bear interest at the one-month BSBY Rate (with a floor of 0.50 percent) plus 4.00 percent.

Jones Crossing loan. The Jones Crossing loan requires a debt service coverage ratio (DSCR) of 1.15 to 1.00 measured quarterly beginning with the quarter ending September 30, 2022. If the DSCR falls below 1.15 to 1.00, a “Cash Sweep Period” (as defined in the Jones Crossing loan) results, which limits Stratus’ ability to receive cash from its Jones Crossing subsidiary. The DSCR fell below 1.15 to 1.00 in each of fourth-quarter 2022 and first-quarter 2023, and the Jones Crossing subsidiary made principal payments of $231 thousand and $1.7 million in February

2023 and May 2023, respectively, to bring the DSCR back above 1.15 to 1.00 and a Cash Sweep Period did not occur.

The Annie B land loan. In February 2023, Stratus Block 150, L.P. entered into a modification agreement that extended the maturity date of The Annie B land loan to March 1, 2024, and changed the interest rate to the BSBY Rate (with a floor of 0.50 percent) plus 3.00 percent. In connection with the modification agreement, Stratus Block 150, LP, escrowed an interest reserve of $0.6 million with the lender.

New Caney land loan. In March 2023, the New Caney land loan was repaid.

The Saint June construction loan. In January 2023, The Saint June construction loan was amended to change the interest rate for the loan to Term Secured Overnight Financing Rate (SOFR) with a floor of 0.75 percent plus 2.85 percent, subject to a 3.50 percent floor.

Magnolia Place construction loan. In May 2023, the Magnolia Place construction loan was amended to change the interest rate for the loan to Term SOFR with a floor of 0.00 percent plus 3.36 percent, subject to a 3.50 percent floor.

Amarra Villas revolving credit facility. In March 2023, Stratus made a $2.2 million principal payment on the Amarra Villas revolving credit facility upon the closing of a sale of one of the Amarra Villas homes.

Holden Hills construction loan. In first-quarter 2023, the Holden Hills partnership entered into a loan agreement with Comerica Bank to finance the development of Phase I of the Holden Hills project.

The loan agreement provides for a senior secured construction loan in the aggregate principal amount of the least of (i) $26.1 million, (ii) 23 percent of the total development costs for Phase I or (iii) the amount that would result in a maximum loan-to-value ratio of 28 percent. The loan has a maturity date of February 8, 2026. Advances under the loan bear interest at the one-month BSBY Rate (with a floor of 0.50 percent), plus 3.00 percent. Payments of interest only on the loan are due monthly until the maturity date with the outstanding principal due at maturity. The Holden Hills partnership may prepay all or any portion of the loan without premium or penalty. Amounts repaid under the loan may not be reborrowed.

The loan is secured by the Holden Hills project, including the land related to both Phase I and Phase II, and the Phase I improvements. After completion of construction of Phase I, the Holden Hills partnership may sell and obtain releases of the liens on single-family platted home sites, individual pods or the Phase II land, subject to specified conditions, and upon payment to the lender of specified amounts related to the parcel to be released. The Holden Hills partnership is not permitted to make distributions to its partners, including Stratus, while the loan is outstanding. The Holden Hills partnership must apply all Municipal Utility District (MUD) reimbursements it receives and is entitled to retain as payments of principal on the loan.

Stratus has entered into a guaranty for the benefit of the lender pursuant to which Stratus has guaranteed the payment of the loan and the completion of Phase I, including the Tecoma Improvements (which benefit both the Holden Hills Project and Section N). Stratus is also liable for customary carve-out obligations and an environmental indemnity. Stratus must maintain, on a consolidated basis, a net asset value not less than $125.0 million, and a debt-to-gross-asset value not more than 50 percent (in each case as defined in the guaranty).

For additional information regarding Stratus' debt, refer to Note 6 in the Stratus 2022 Form 10-K.

Interest Expense and Capitalization. Interest costs (before capitalized interest) totaled $2.4 million in first-quarter 2023 and $1.1 million in first-quarter 2022. Stratus' capitalized interest totaled $2.4 million in first-quarter 2023 and $1.1 million in first-quarter 2022. Capitalized interest is primarily related to development activities at Barton Creek (primarily Holden Hills, Section N and The Saint June), The Saint George and The Annie B for both periods presented.

Equity. The Comerica Bank revolving credit facility, Amarra Villas revolving credit facility, The Annie B land loan, The Saint George construction loan, Kingwood Place construction loan and Holden Hills construction loan require Comerica Bank’s prior written consent for any common stock repurchases in excess of $1.0 million or any dividend payments. On September 1, 2022, after receiving written consent from Comerica Bank, Stratus’ Board of Directors (Board) declared a special cash dividend of $4.67 per share (totaling $40.0 million) on Stratus’ common stock,

which was paid on September 29, 2022 to shareholders of record as of September 19, 2022. Accrued liabilities included $1.1 million as of March 31, 2023, and $1.3 million as of December 31, 2022, representing dividends accrued for unvested RSUs in accordance with the terms of the awards. The accrued dividends are paid to the holders of the RSUs as the RSUs vest. In 2022, with written consent from Comerica Bank, Stratus’ Board also approved a share repurchase program, which authorizes repurchases of up to $10.0 million of Stratus’ common stock. The repurchase program authorizes Stratus, in management’s discretion, to repurchase shares from time to time, subject to market conditions and other factors. In first-quarter 2023, Stratus acquired 43,624 shares of its common stock under the share repurchase program for a total cost of $0.9 million at an average price of $20.49 per share. Through May 10, 2023, Stratus has acquired 359,553 shares of its common stock for a total cost of $9.2 million at an average price of $25.64 per share, and $0.8 million remains available for repurchases under the program.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Discontinued Operations and Disposal Groups (Tables)

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Block 21’s results of operations in the consolidated statements of comprehensive (loss) income consist of the following (in thousands):


	Three Months Ended
	March 31,
	2022
Revenues: a
Hotel	$	5,871
Entertainment	5,340
Leasing operations and other	726
Total revenue	11,937
Cost of sales:
Hotel	4,743
Entertainment	4,139
Leasing operations and other	471
Depreciation b	—
Total cost of sales	9,353
General and administrative expenses	100
Operating income	2,484
Interest expense, net	(1,945)
Provision for income taxes	(164)
Net income from discontinued operations	$	375

a.In accordance with accounting guidance, amounts are net of eliminations of intercompany revenue totaling $321 thousand in first-quarter 2022.

b.In accordance with accounting guidance, depreciation is not recognized subsequent to classification as assets held for sale, which occurred in the fourth quarter of 2021.

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Stratus’ accounting policy for and other information regarding its income taxes are further described in Notes 1 and 7 in the Stratus 2022 Form 10-K. Stratus has a full valuation allowance against its U.S. Federal net deferred tax assets as of both March 31, 2023 and December 31, 2022. Stratus has recorded a deferred tax asset totaling $38 thousand at both March 31, 2023 and December 31, 2022 related to state income taxes. In evaluating the recoverability of the remaining deferred tax assets, management considered available positive and negative evidence, giving greater weight to the uncertainty regarding projected future financial results. Upon a change in facts and circumstances, management may conclude that sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance in the future, which would favorably impact Stratus' results of operations. Stratus’ future results of operations may be negatively impacted by an inability to realize a tax benefit for future tax losses or for items that will generate additional deferred tax assets that are not more likely than not to be realized. During 2023, Stratus expects to incur current state income taxes in addition to U.S. Federal current income taxes primarily associated with taxable income generated from cash received in the Holden Hills transaction. The difference between Stratus' consolidated effective income tax rate of (23) percent for first-quarter 2023 and the U.S. Federal statutory income tax rate of 21 percent was primarily attributable to state income taxes, noncontrolling interests in subsidiaries, the presence of a valuation allowance against its U.S. Federal net deferred tax assets as of March 31, 2023, and the executive compensation limitation. The difference between Stratus' consolidated effective income tax rate of (20) percent for first-quarter 2022 and the U.S. Federal statutory income tax rate of 21 percent was primarily attributable to the release of a reserve on uncertain tax positions related to the 2015 through 2017 U.S. Federal tax audit, which was closed in first-quarter 2022. On August 16, 2022, the Inflation Reduction Act of 2022 (the IR Act) was enacted in the United States. Among other provisions, the IR Act imposes a new 1 percent excise tax on the fair market value of net corporate stock repurchases made by covered corporations, effective for tax years beginning after December 31, 2022. Stratus is assessing the potential impacts of the IR Act but does not expect the IR Act to have a material impact on its consolidated financial statements.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Profit Participation Incentive Plan (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2022	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other liabilities		$ 5,874			$ 9,642
Accrued Liability, Balance Transferred			$ 5,300
Deferred Profit Sharing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other liabilities		3,200			$ 3,000
Grant Date Fair Value, Value Greater than Accrued Liability			2,100
Share-based Payment Arrangement, Expense		258		$ 66
Deferred Profit Sharing \| General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense		148		15
Deferred Profit Sharing \| Project Development Costs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense		$ 110		$ 51
Deferred Profit Sharing \| The Saint Mary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation arrangement with individual, distribution paid	$ 2,100
Deferred Profit Sharing \| Lantana Place
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation arrangement with individual, distribution paid	200
Other liabilities			3,700
Profit Participation Incentive Plan Pool, Amortizable Balance							$ 3,900
Deferred Profit Sharing \| The Santal
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation arrangement with individual, distribution paid	$ 5,000
Other liabilities			$ 1,600
Profit Participation Incentive Plan Pool, Amortizable Balance						$ 6,700

Limited Partnerships

3 Months Ended

Mar. 31, 2023

Limited Partnerships

LIMITED PARTNERSHIPS

Stratus has entered into strategic partnerships for certain development projects. Stratus, through its subsidiaries, is a partner in the following limited partnerships: The Saint George Apartments, L.P. (10.0 percent indirect equity interest), Stratus Block 150, L.P. (31.0 percent indirect equity interest), The Saint June, L.P. (34.13 percent indirect equity interest), Holden Hills, L.P. (50.0 percent indirect equity interest) and Stratus Kingwood Place, L.P. (60.0 percent indirect equity interest). For additional information regarding Stratus' partnerships, refer to Notes 2 and 4 in the Stratus 2022 Form 10-K.

Holden Hills, L.P. In first-quarter 2023, Holden Hills, L.P. (the Holden Hills partnership), a Texas limited partnership and subsidiary of Stratus, was formed for the development of Holden Hills, Stratus’ final large residential development within the Barton Creek community in Austin, Texas, consisting of 495 acres and designed to feature 475 unique residences (Holden Hills Project). The Holden Hills partnership is governed by a limited partnership agreement between a wholly owned subsidiary of Stratus as Class A limited partner and an unaffiliated equity investor as Class B limited partner, and another wholly owned subsidiary of Stratus which serves as general partner. The partners made the following initial capital contributions to the Holden Hills partnership: (i) Stratus contributed the Holden Hills land and related personal property at an agreed value of $70.0 million and (ii) The Class B limited partner contributed $40.0 million in cash. Immediately following the Class B limited partner's initial capital contribution, $30.0 million of cash was distributed by the Holden Hills partnership to Stratus. Further, the Holden Hills partnership reimbursed Stratus for certain initial project costs and closing costs of approximately $5.8 million. As a result of these transactions, Stratus holds, indirectly through its wholly owned subsidiaries, a 50.0 percent equity capital interest in the Holden Hills partnership, and the Class B limited partner holds the remaining 50.0 percent equity capital interest in the Holden Hills partnership. Stratus’ potential returns on its equity investment in

the Holden Hills partnership may increase above its relative equity interest as negotiated return hurdles are achieved. Stratus consolidates the Holden Hills limited partnership; therefore, its contribution of the Holden Hills land and related personal property was recorded at historical cost and the contribution from the Class B limited partner was accounted for as a noncontrolling interest.

In addition to each partner’s initial capital contribution, upon the call of the general partner from time to time, Stratus is obligated to make capital contributions up to an additional $10.0 million, and the Class B limited partner is also obligated to make capital contributions up to an additional $10.0 million.

Stratus has the authority to manage the day-to-day operations of the Holden Hills partnership, subject to approval rights of the Class B limited partner for specified “major decisions,” including project and operating budgets, the business plan and amendments thereto; sales, leases or transfers of any portion of the Holden Hills project to any partner, affiliate of any partner, or to any unaffiliated third party other than as contemplated in the business plan; incurring any debt, mortgage or guaranty; capital calls in excess of those previously agreed upon; admitting a new partner; and certain transfers of direct or indirect interests in the Holden Hills partnership. The business plan includes rights of first refusal in favor of the Class B limited partner for sale of the luxury residence sites to be developed in distinct communities or “pods” to a third party. A “deadlock” may be declared by any partner if any limited partner does not approve any two major decisions proposed by the general partner within any 12-month period. Prior to the third anniversary of the effective date of the limited partnership agreement, a buy-sell provision can be triggered only if there is a deadlock. On or after the third anniversary, any partner can initiate a buy-sell at any time by written notice to the other partner, specifying the buyout price.

Stratus has entered into a development agreement with the Holden Hills partnership pursuant to which the Holden Hills partnership will construct certain street, drainage, water, sidewalk, electric and gas improvements in order to extend the Tecoma Circle roadway on Section N land owned by Stratus from its current terminus to Southwest Parkway, estimated to cost approximately $14.7 million (the Tecoma Improvements), and Stratus will reimburse the partnership for 60 percent of the costs. The Tecoma Improvements will enable access and provide utilities necessary for the development of both Holden Hills and Section N.

The Holden Hills partnership has agreed to pay Stratus a development management fee of 4.00 percent of certain construction costs for Phase I of the project, and an asset management fee of $150 thousand per year starting 15 months after construction starts on the project payable from available cash flow after debt service.

Also in first-quarter 2023, the Holden Hills partnership entered into a loan agreement with Comerica Bank to finance the development of Phase I of the project. Refer to Note 6 for discussion of the loan agreement.

Accounting for Limited Partnerships. Stratus has performed evaluations and concluded that The Saint George Apartments, L.P., Stratus Block 150, L.P., The Saint June, L.P., Stratus Kingwood, L.P. and Holden Hills, L.P. are variable interest entities and that Stratus is the primary beneficiary. Accordingly, the partnerships’ results are consolidated in Stratus’ financial statements. Stratus will continue to re-evaluate which entity is the primary beneficiary of these partnerships in accordance with applicable accounting guidance.

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

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


	March 31, 2023 a		December 31, 2022
Assets: b
Cash and cash equivalents	$	5,897	$	7,744
Real estate under development	140,252		107,968
Land available for development	3,927		3,927
Real estate held for investment	31,494		31,415
Other assets	5,885		4,503
Total assets	187,455		155,557
Liabilities: c
Accounts payable and accrued liabilities	10,987		12,247
Debt	62,702		55,305
Total liabilities	73,689		67,552
Net assets	$	113,766	$	88,005

a.Includes the assets and liabilities of the Holden Hills partnership, which was formed in January 2023.

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

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Debt (Details)			1 Months Ended			3 Months Ended		10 Months Ended
Debt (Details)	May 11, 2023 USD ($)	Sep. 01, 2022 USD ($) $ / shares	Mar. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	Jan. 31, 2023	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($)	May 10, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Debt			$ 128,336,000			$ 128,336,000			$ 122,765,000
Unamortized debt issuance costs			1,000,000			1,000,000			1,100,000
Common Stock, Dividends, Per Share, Declared \| $ / shares		$ 4.67
Interest costs incurred						2,400,000	$ 1,100,000
Interest costs capitalized						2,400,000	$ 1,100,000
Dividends, Common Stock, Cash		$ 40,000,000
Stock Repurchase Program, Authorized Amount		$ 10,000,000
Dividends Payable			1,100,000			1,100,000			1,300,000
Stock Repurchased During Period, Value						$ 894,000
Stock Repurchased During Period, Shares \| shares						43,624
Treasury Stock Acquired, Average Cost Per Share \| $ / shares						$ 20.49
Subsequent event
Debt Instrument [Line Items]
Stock Repurchased During Period, Value								$ 9,200,000
Stock Repurchased During Period, Shares \| shares								359,553
Treasury Stock Acquired, Average Cost Per Share \| $ / shares								$ 25.64
Stock Repurchase Program, Remaining Authorized Repurchase Amount								$ 800,000
Comerica Bank revolving credit facility
Debt Instrument [Line Items]
Debt			0			$ 0			0
Comerica Bank revolving credit facility \| Letter of Credit
Debt Instrument [Line Items]
Letters of credit committed			11,000,000			11,000,000
Comerica Bank revolving credit facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, available borrowing capacity			$ 42,700,000			42,700,000
Debt Instrument, Interest Rate Floor			(0.50%)
Basis spread on variable rate			4.00%
Debt Instrument, Debt Covenant, Consent for Common Stock Repurchases, Amount			$ 1,000,000			1,000,000
Jones Crossing loan
Debt Instrument [Line Items]
Debt			23,938,000			$ 23,938,000			24,143,000
Jones Crossing loan \| London interbank offered rate - LIBOR
Debt Instrument [Line Items]
Repayments of Debt				$ 231,000
Debt Instrument, Covenant, Debt Service Coverage Ratio						1.15
Jones Crossing loan \| London interbank offered rate - LIBOR \| Subsequent event
Debt Instrument [Line Items]
Repayments of Debt	$ 1,700,000
The Annie B land loan
Debt Instrument [Line Items]
Debt			13,933,000			$ 13,933,000			13,969,000
Debt Instrument, Interest Rate Floor				(0.50%)
Debt instrument, interest reserve				$ 600,000
The Annie B land loan \| Bloomberg short-term bank yield index
Debt Instrument [Line Items]
Basis spread on variable rate				3.00%
New Caney land loan
Debt Instrument [Line Items]
Debt			0			0			4,047,000
Kingwood Place
Debt Instrument [Line Items]
Debt			27,768,000			27,768,000			27,507,000
Lantana Place
Debt Instrument [Line Items]
Debt			21,787,000			21,787,000			21,782,000
The Saint June
Debt Instrument [Line Items]
Debt			21,001,000			21,001,000			13,829,000
The Saint June \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Debt Instrument, Interest Rate Floor					(0.75%)
Basis spread on variable rate					2.85%
Debt Instrument, Basis Spread Floor					3.50%
Magnolia Place Construction Loan [Member]
Debt Instrument [Line Items]
Debt			7,174,000			7,174,000			6,816,000
Magnolia Place Construction Loan [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Subsequent event
Debt Instrument [Line Items]
Debt Instrument, Interest Rate Floor	0.00%
Basis spread on variable rate	3.36%
Debt Instrument, Basis Spread Floor	3.50%
West Killeen Market
Debt Instrument [Line Items]
Debt			5,289,000			5,289,000			5,306,000
Amarra Villas revolving credit facility
Debt Instrument [Line Items]
Debt			7,446,000			$ 7,446,000			$ 5,366,000
Amarra Villas revolving credit facility \| Line of credit
Debt Instrument [Line Items]
Repayments of Debt			$ 2,200,000
Holden Hills construction loan \| Construction Loan Payable
Debt Instrument [Line Items]
Debt Instrument, Covenant, Loan to Value Ratio				0.28
Debt Covenant, net asset value				$ 125,000,000
Debt principal				$ 26,100,000
Construction cost percent				23.00%
Holden Hills construction loan \| Construction Loan Payable \| Bloomberg short-term bank yield index
Debt Instrument [Line Items]
Debt Instrument, Interest Rate Floor				(0.50%)
Basis spread on variable rate				3.00%

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Summary of the carrying amount and fair value of other financial instruments

A summary of the carrying amount and fair value of Stratus' debt follows (in thousands):


	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value



Liabilities:
Debt	$	128,336	$	130,075	$	122,765	$	124,575

Dispositions

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Dispositions

ASSET SALES

Block 21 - Discontinued Operations. Block 21 was Stratus’ wholly owned mixed-use real estate property in downtown Austin, Texas containing the 251-room W Austin Hotel and Austin City Limits Live at the Moody Theater, a 2,750-seat entertainment venue, Class A office space, retail space and the 3TEN ACL Live entertainment venue. On May 31, 2022, Stratus completed the previously announced sale of Block 21 to Ryman Hospitality Properties, Inc. (Ryman) for $260.0 million, subject to certain purchase price adjustments, and including Ryman’s assumption of $136.2 million of existing mortgage debt, with the remainder paid in cash. Stratus’ net proceeds of cash and restricted cash totaled $112.3 million (including $6.9 million of post-closing escrow amounts to be held for 12 months after the closing, subject to a longer retention period with respect to any required reserve for pending claims). Stratus recorded a pre-tax gain on the sale of $119.7 million in second-quarter 2022.

In accordance with accounting guidance, Stratus reported the results of operations of Block 21 as discontinued operations in the consolidated statement of comprehensive income for first-quarter 2022 because the disposal represents a strategic shift that had a major effect on operations. Block 21 did not have any other comprehensive income and Stratus' consolidated statements of cash flows are reported on a combined basis without separately presenting discontinued operations.

Block 21’s results of operations in the consolidated statements of comprehensive (loss) income consist of the following (in thousands):


	Three Months Ended
	March 31,
	2022
Revenues: a
Hotel	$	5,871
Entertainment	5,340
Leasing operations and other	726
Total revenue	11,937
Cost of sales:
Hotel	4,743
Entertainment	4,139
Leasing operations and other	471
Depreciation b	—
Total cost of sales	9,353
General and administrative expenses	100
Operating income	2,484
Interest expense, net	(1,945)
Provision for income taxes	(164)
Net income from discontinued operations	$	375

a.In accordance with accounting guidance, amounts are net of eliminations of intercompany revenue totaling $321 thousand in first-quarter 2022.

b.In accordance with accounting guidance, depreciation is not recognized subsequent to classification as assets held for sale, which occurred in the fourth quarter of 2021.

Capital expenditures associated with discontinued operations totaled $182 thousand in first-quarter 2022.

The Oaks at Lakeway. In 2017, Stratus sold The Oaks at Lakeway to FHF I Oaks at Lakeway, LLC for $114.0 million in cash. The Oaks at Lakeway is an H-E-B, L.P.-anchored retail project located in Lakeway, Texas. The parties entered into three master lease agreements at closing: (1) one covering unleased in-line retail space, with a 5-year term (the In-line Master Lease), (2) one covering the hotel pad with a 99-year term (the Hotel Master Lease) and (3) one covering four unleased pad sites, three of which have 10-year terms, and one of which has a 15-year term (the Pad Site Master Lease).

The In-Line Master Lease expired in February 2022 and the Hotel Master Lease was terminated in November 2020. As such, Stratus has no further obligations under these two master leases. With respect to the Pad Site Master Lease, Stratus has leased the one pad site with a 15-year term, reducing the monthly rent payment net of rent collections for this pad site to approximately $2,500. Stratus may assign this lease to the purchaser and terminate the obligation under the Pad Site Master Lease for this pad site with a payment of $560 thousand to the purchaser. The lease for the remaining three unleased pad sites under the Pad Site Master Lease expires in February 2027. To the extent leases are executed for the remaining three unleased pad sites, tenants open for business, and the leases are then assigned to the purchaser, the master lease obligation could be reduced further.

In first-quarter 2022, Stratus reassessed its plans with respect to construction of the remaining buildings on the three remaining unleased pad sites and determined that, rather than execute leases and build the buildings, it is less costly to continue to pay the monthly rent (approximately $74 thousand per month) pursuant to the Pad Site Master Lease until the lease expires in February 2027. In connection with this determination, Stratus reversed an accrual of costs to lease and construct these buildings, resulting in recognition of an additional $4.8 million of gain in first-quarter 2022. A contract liability is presented as a deferred gain in the consolidated balance sheets in the amount of $3.3 million at March 31, 2023 and $3.5 million at December 31, 2022. The reduction in the deferred gain balance primarily reflects Pad Site Master Lease payments. The remaining deferred gain balance is expected to be reduced primarily by future Pad Site Master Lease payments.

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

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


	Three Months Ended
	March 31,
	2023		2022
Net (loss) income from continuing operations	$	(6,273)	$	1,812
Net income from discontinued operations	—		375
Net (loss) income and total comprehensive (loss) income	(6,273)		2,187
Total comprehensive loss attributable to noncontrolling interests	472		85
Net (loss) income and total comprehensive (loss) income attributable to common stockholders	$	(5,801)	$	2,272

Basic weighted-average shares of common stock outstanding	8,224		8,251
Add shares issuable upon vesting of dilutive restricted stock units (RSUs) a	—		104
Diluted weighted-average shares of common stock outstanding	8,224		8,355

Basic net (loss) income per share attributable to common stockholders:
Continuing operations	$	(0.71)	$	0.23
Discontinued operations	—		0.05
	$	(0.71)	$	0.28

Diluted net (loss) income per share attributable to common stockholders:
Continuing operations	$	(0.71)	$	0.23
Discontinued operations	—		0.04
	$	(0.71)	$	0.27

Business Segments Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments \| segment	2
Revenues:
Real estate operations	$ 2,493	$ 19
Leasing operations	3,309	3,080
Unaffiliated customers	5,802	3,099
Cost of sales	(5,748)	(2,350)
Depreciation	(928)	(873)
General and administrative expenses	(4,719)	(3,167)
Gain on sale of assets	0	4,812
Operating income (loss)	(5,593)	1,521
Development of Real Estate Properties and Capital Improvements	19,033	19,588
Total assets	479,719	544,768	$ 445,140
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	59,784	50,583	$ 45,709	$ 70,139
Block 21 \| Discontinued Operations, Held-for-sale
Revenues:
Disposal Group, Including Discontinued Operation, Assets		151,200
Leasing Operations
Revenues:
Leasing operations	3,309	3,080
Eliminations and Other
Revenues:
Real estate operations	0	0
Cost of sales	0	0
Depreciation	5	4
General and administrative expenses	(4,719)	(3,167)
Gain on sale of assets		0
Operating income (loss)	(4,714)	(3,167)
Development of Real Estate Properties and Capital Improvements	0	182
Total assets	63,012	183,904
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	57,000	15,800
Operating Segments \| Real Estate Operations
Revenues:
Real estate operations	2,493	19
Cost of sales	(4,487)	(1,366)
Depreciation	(27)	(25)
General and administrative expenses	0	0
Gain on sale of assets		0
Operating income (loss)	(2,021)	(1,368)
Development of Real Estate Properties and Capital Improvements	9,027	4,864
Total assets	307,571	254,212
Operating Segments \| Leasing Operations
Revenues:
Leasing operations	3,309	3,080
Cost of sales	(1,261)	(984)
Depreciation	(906)	(852)
General and administrative expenses	0	0
Gain on sale of assets		4,812
Operating income (loss)	1,142	6,056
Development of Real Estate Properties and Capital Improvements	10,006	14,542
Total assets	$ 109,136	106,652
Eliminations and Other
Revenues:
Unaffiliated customers		0
Eliminations and Other \| Real Estate Operations
Revenues:
Real estate operations		4
Eliminations and Other \| Leasing Operations
Revenues:
Leasing operations		0
Eliminations and Other \| Eliminations and Other
Revenues:
Real estate operations		$ (4)

General (Details) - Immediate Family Member of Management or Principal Owner - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2022	Mar. 31, 2023	Mar. 31, 2022
Product Information [Line Items]
Selling, General and Administrative Expense	$ 100	$ 120
Annual Incentive Award
Product Information [Line Items]
Selling, General and Administrative Expense		$ 22
Whitefish Partners LLC
Product Information [Line Items]
Selling, General and Administrative Expense			$ 185
Whitefish Partners LLC \| Annual Incentive Award
Product Information [Line Items]
Selling, General and Administrative Expense			20
Whitefish Partners LLC \| Deferred Profit Sharing
Product Information [Line Items]
Selling, General and Administrative Expense			$ 135