STRS News & Events

Stratus Properties announced that its board has initiated a process to explore strategic alternatives to maximize shareholder value with the assistance of outside, independent financial and legal advisors. The board intends to consider a comprehensive range of alternatives, including but not limited to the sale of Stratus, a plan of dissolution and liquidation, further share repurchases and other strategic or financial transactions. Stratus also announced that it has entered into an agreement to sell Kingwood Place for $60.8M. Kingwood Place is Stratus' H-E-B-anchored, mixed-use development project in Kingwood, Texas. If the sale is completed, it is expected to generate estimated pre-tax net cash proceeds of approximately $26M, after selling costs and payment of the project loan. The sale, if completed, is expected to close in Q1 of 2026, following expiration of the inspection period during which the buyer may terminate the contract and subject to satisfaction of closing conditions. The board has not set a timetable for the conclusion of its evaluation, nor has it made any decisions related to any potential strategic alternatives at this time. There can be no assurance as to the outcome of this process, or if a transaction does occur, the timing of any such transaction. Stratus does not intend to comment further on this process until it deems further disclosure is appropriate or necessary.

Reports Q3 revenue $4.97M vs. $8.89M last year. William Armstrong III, chairman of the board of directors and CEO of Stratus, stated, "During the first nine months of 2025, we continued to make meaningful progress across our portfolio and unlock stockholder value. Our stabilized assets have continued to perform well, and we advanced key development projects. We are pleased to have entered into an agreement to sell Lantana Place - Retail for approximately $57.4 million, a favorable outcome that will allow us to repay the associated project loan and further strengthen our balance sheet. In connection with the anticipated closing of the sale along with the recent cash proceeds from the formation of the Holden Hills Phase 2 partnership and other asset sales, our Board is exploring opportunities for the use of cash, which will be based on evolving market conditions and may include a combination of further share repurchases, deleveraging, reinvesting in our project pipeline and/or other cash returns to stockholders."