Stratus Properties Inc. (STRS) Market Cap
Stratus Properties Inc. has a market capitalization of $239M.
Financials based on reported quarter end 2025-12-31
Price: $29.90
▼ -0.11 (-0.37%)
Market Cap: 239.04M
NASDAQ · time unavailable
CEO: William H. Armstrong
Sector: Real Estate
Industry: Real Estate - Diversified
IPO Date: 1992-07-01
Website: https://www.stratusproperties.com
Stratus Properties Inc. (STRS) - Company Information
Market Cap: 239.04M · Sector: Real Estate
Stratus Properties Inc., a real estate company, engages in the acquisition, entitlement, development, management, and sale of commercial, and multi-and single-family residential real estate properties primarily in Texas. The company operates in two segments, Real Estate Operations and Leasing Operations. Its leasing operations cover lease of space at retail and mixed-use, and multi-family properties. Stratus Properties Inc. was incorporated in 1992 and is headquartered in Austin, Texas.
Analyst Sentiment
Based on 0 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"STRS reported revenue of $8.30M and net income of $19.58M for the quarter ended 2025-12-31, resulting in EPS of $2.43. Net income implies a strong net margin of ~236% on reported revenue, though this largely reflects investment/other accounting items rather than typical operating-scale profitability. Cash flow was weak: operating cash flow was -$5.76M and free cash flow was -$5.83M, with capex of only -$0.07M. Dividends were paid $0 during the period (recent dividend history is limited/older). Balance sheet resilience looks favorable on leverage metrics: total assets were $563.43M versus total liabilities of $216.35M, leaving equity of $347.08M. Net debt was -$74.29M (i.e., net cash), supporting liquidity and reducing balance-sheet pressure. Valuation inputs (e.g., P/E, FCF yield) and analyst price targets are not provided, so valuation assessment is constrained. Shareholder returns appear driven primarily by strong market momentum—up 77.54% over 1 year—with limited shareholder yield via dividends/buybacks based on the data provided."
Revenue Growth
Only a single-quarter revenue figure is provided ($8.30M), so the growth trend cannot be assessed. Revenue scale appears modest, and the focus of reported profitability versus revenue suggests non-revenue drivers in net income.
Profitability
EPS of $2.43 and net income of $19.58M imply very strong net margin (~236%). However, the magnitude versus revenue suggests profitability may be influenced by items outside core operations, which limits confidence in recurring operating strength.
Cash Flow Quality
Operating cash flow was -$5.76M and free cash flow was -$5.83M, indicating cash burn or timing effects. Capex was minimal (-$0.07M), so the cash deficit is not explained by heavy reinvestment.
Leverage & Balance Sheet
Total assets of $563.43M and equity of $347.08M provide cushion. Net debt is negative (-$74.29M), implying net cash and generally lower leverage risk.
Shareholder Returns
Total shareholder value appears to be driven by capital appreciation: the stock is up 77.54% over 1 year and 46.58% over 6 months. Dividends are $0 in the period and recent dividend history is limited in the dataset.
Analyst Sentiment & Valuation
Valuation metrics (P/E, FCF yield, ROE) and analyst price targets are not provided. The strong price momentum suggests investor optimism, but without valuation multiples it is difficult to gauge whether the move is supported by fundamentals.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management’s tone was constructive—highlighting recent asset sales generating ~$166M after-tax cash flow, a $4.67/share special dividend (~$40M), and progressing/operating H-E-B anchored projects (e.g., Magnolia Place grocery opened Nov 2). However, the transcript provides almost no analyst pressure detail because the Q&A section had zero questions, limiting visibility into contentious issues. The most concrete operational hurdle surfaced in management’s prepared remarks: the revolver maturity was extended to Mar 27, 2023, but Stratus is actively negotiating lender terms to remove Holden Hills from the collateral pool and potentially re-underwrite it separately, with a revised lower borrowing limit on the remaining collateral. Financially, the quarter showed revenue growth to $10.0M but still a net loss of $(2.4)M (improving vs $(3.8)M), largely tied to timing of undeveloped sales. Overall: upbeat pipeline execution, but financing/collateral negotiations and market-condition dependency remain key gating factors.
Growth Catalysts
- Completion/substantial completion on Magnolia Place first phase; H-E-B grocery store opened Nov 2, 2022
- Advance in major development projects: Saint June and Saint George generally on budget/schedule
- Retail leasing momentum: 95% retail space leased at Kingwood Place; ~75% leased at West Killeen Market; ~90% leased at Lantana Place including Moviehouse & Eatery and AC hotel ground lease
Business Development
- H-E-B anchored/mixed-use projects: Kingwood Place (95% retail leased; one pad side still available), Magnolia Place (H-E-B store opened Nov 2, 2022)
- West Killeen Market (H-E-B shadow-anchored; leases for ~75% of retail; sold last pad site for $1.0M during Q3)
- Lantana Place (anchored tenant Moviehouse and Eatery; ground lease for AC hotel by Marriott opened last year)
Financial Highlights
- Total revenues: $10.0M in Q3 2022 vs $6.3M in Q3 2021
- Net loss attributable to common stockholders: $(2.4)M or $(0.29)/diluted share in Q3 2022 vs $(3.8)M or $(0.46)/diluted share in Q3 2021
- Real estate operations revenue: $6.9M in Q3 2022 vs $0.892M in Q3 2021 (driven by undeveloped property sales)
- Leasing operations revenue: $3.1M in Q3 2022 vs $5.4M in Q3 2021 (primarily due to sale of The Santal in Dec 2021; partly offset by increased revenue at Lantana Place and Kingwood Place)
- Operating loss in real estate operations: $(89)K in Q3 2022 vs $(1.9)M in Q3 2021
- Leasing operating income: $0.853M in Q3 2022 vs $1.7M in Q3 2021
- Tax cash outflow planned: ~$10M federal income tax payment in Dec 2022 tied to estimated taxes including Block 21 gain
Capital Funding
- Special cash dividend: $4.67/share totaling ~$40M paid Sept 29, 2022
- Open market stock repurchase: $10M program; through Nov 4, 2022 purchased ~105,000 shares for ~$2.6M (~$25/share)
- Consolidated debt: $124.2M at Sept 30, 2022 vs $106.6M at Dec 31, 2021 (note: Dec 31, 2021 excluded Block 21 loan ~ $137M as discontinued liabilities held for sale)
- Cash and cash equivalents: $63.5M at Sept 30, 2022 vs $24.2M at Dec 31, 2021
- Revolver usage: zero balance on $60M Comerica revolver at Sept 30, 2022 (letters of credit $11M committed)
- Revolver maturity extension: extended from Dec 26, 2022 to Mar 27, 2023
Strategy & Ops
- Streamlining after Block 21 sale; focus on pure residential and residential-centric mixed-use
- Maintain liquidity by limiting revolver use in the current environment; intention to avoid being over leveraged
- Use of project-level bank debt and promoted third-party capital to develop projects
- Entitlements focus: management characterized design/entitlement as least capital intensive and highlighted timing as favorable for securing entitlements
- Operational milestones: Magnolia Place H-E-B grocery opened Nov 2, 2022; progress continued on Saint June, Saint George, and Amarra Villas (3 homes under contract to sell as of Nov 4, 2022; 9 of 20 Amarra Villas homes available for sale)
Market Outlook
- Saint June: expected to complete by end of Q1 2023 (182 units)
- Saint George: substantially complete by mid-2024 (316 units; began construction July 2022)
- Annie B (Austin high-rise): aim to begin construction late 2023 or early 2024, contingent on financing and market conditions
- Holden Hills: expect start of infrastructure construction later in 2022; projections for home site starts selling/starting building in late 2024 or early 2025 (subject to financing/conditions)
- Saint Julia: begin construction in 2024 at the earliest (subject to acceptable capital structure and market conditions)
- Section N: design/entitlement advancement; goal of dense mid-rise mixed-use with environmental sustainability focus
Risks & Headwinds
- Analyst Q&A risk extraction: No questions were asked; operator explicitly showed no questions. Therefore no candid Q&A-specific hurdles (e.g., bps changes, tariff/macro mitigation) were disclosed.
- Financing/collateral hurdle: Stratus is in discussions to remove Holden Hills from the collateral pool and to finance Holden Hills under separate loan terms and revise revolver borrowing limits
- Funding/timing risk: projects remain subject to obtaining financing and other market conditions (explicit for Annie B, Holden Hills, and Saint Julia; also generally applicable to development pipeline)
- Liquidity/capital discipline risk: management emphasized it is “not a good time to be over leveraged” and intends to limit revolver usage
Sentiment: MIXED
Note: This summary was synthesized by AI from the STRS Q3 2022 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.