Stratus Properties Reports Significant Revenue Decline and Net Loss in Q1 2025

Stratus Properties Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $5.0 million, down from $26.5 million in the same period last year. The decrease was primarily attributed to the absence of property sales, as the previous year included $14.5 million from the sale of undeveloped land at Magnolia Place and $7.6 million from two homes at Amarra Villas. The company's net loss attributable to common stockholders was $2.9 million, or $(0.36) per diluted share, compared to a net income of $4.6 million, or $0.56 per diluted share, in the first quarter of 2024.

In terms of operational metrics, Stratus's Real Estate Operations segment reported revenues of just $25, a stark contrast to $22.1 million in the prior year, while the Leasing Operations segment saw a modest increase in rental revenue to $5.0 million from $4.4 million, driven by improved performance at The Saint June multi-family project. The company’s total assets increased slightly to $534.6 million as of March 31, 2025, compared to $532.6 million at the end of 2024, with notable increases in land available for development and real estate under development.

Strategically, Stratus has been active in refinancing its debt, taking advantage of lower interest rates. The company refinanced several loans, including the Lantana Place and Jones Crossing loans, which are expected to generate additional cash proceeds. Additionally, Stratus has initiated a new share repurchase program, authorizing up to $5.0 million in stock buybacks, of which $2.0 million has already been utilized. The company also reported a cash balance of $12.0 million and $34.5 million available under its revolving credit facility, indicating a solid liquidity position.

Looking ahead, Stratus is focused on advancing its development projects, particularly the Holden Hills Phase 1 and The Saint George multi-family project, which are expected to be completed in the second quarter of 2025. However, the company faces challenges due to ongoing market volatility, including rising construction costs and interest rates. Management remains optimistic about the long-term potential of its properties and plans to continue evaluating opportunities for sales and development as market conditions evolve. The company is also preparing for potential costs related to a water leak at The Saint George project, which could impact future financial results.