Stratus Properties Inc. reported a significant decline in revenue for the fiscal year ending December 31, 2025, totaling $29.9 million, down from $54.2 million in 2024. This decrease was primarily attributed to a substantial drop in sales from the Real Estate Operations segment, which generated $10.6 million in 2025 compared to $34.9 million the previous year. The decline in property sales was largely due to fewer transactions, with only three Amarra Villas homes sold in 2025 for $10.5 million, compared to five homes sold for $18.9 million in 2024. In contrast, the Leasing Operations segment remained relatively stable, contributing $19.3 million in rental revenue, slightly up from $19.3 million in 2024.
The company's net income attributable to common stockholders increased to $12.0 million, or $1.47 per diluted share, compared to $2.0 million, or $0.24 per diluted share, in the prior year. This improvement was bolstered by pre-tax gains from property sales, including $27.5 million from the sale of Lantana Place – Retail and $5.0 million from West Killeen Market. Stratus also reported consolidated cash and cash equivalents of $74.3 million as of December 31, 2025, alongside $17.1 million available under its revolving credit facility.
In December 2025, Stratus initiated a review of strategic alternatives to maximize stockholder value, culminating in a proposed plan of complete liquidation and dissolution, which is subject to stockholder approval. If approved, the plan would involve the orderly sale of all or substantially all of the company's assets, with an estimated range of potential liquidating distributions between $29.73 and $37.69 per share. Pending this approval, the company aims to preserve and enhance asset value while managing its debt and obligations.
Operationally, Stratus has focused on its development portfolio, which includes approximately 1,500 acres of land in various stages of development. The company has made progress on several projects, including the completion of The Saint George multi-family property and the initial lease-up of The Saint June. However, the company has faced challenges due to rising interest rates and elevated costs, which have impacted the real estate market, particularly in the multi-family sector. As of March 20, 2026, Stratus had 34 full-time employees and continues to manage its operations with a focus on strategic asset monetization.
Looking ahead, Stratus anticipates that its liquidity and capital allocation strategies will shift significantly if the liquidation plan is approved. The company plans to continue evaluating its business strategy based on market conditions and the progress of its development projects, while also preparing for potential asset sales to optimize value for stockholders.
About STRATUS PROPERTIES INC
Stratus Properties Inc. is a Texas-based real estate company specializing in the entitlement, development, management, leasing, and sale of residential and retail properties. Its core focus includes multi-family, single-family, and mixed-use projects primarily in Austin and other Texas markets. The company generates revenue through property sales, leasing, and development fees, leveraging strategic joint ventures and sustainable development practices to create value and competitive advantages.
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