Stratus Properties Reports $54.2 Million Revenue and $2 Million Net Income for Fiscal Year 2024

Stratus Properties Inc. reported significant financial improvements for the fiscal year ending December 31, 2024, with total revenues reaching $54.2 million, a substantial increase from $17.3 million in 2023. This growth was primarily driven by the Real Estate Operations segment, which generated $34.9 million in revenue, compared to just $2.6 million the previous year. Key contributors to this revenue surge included the sale of five Amarra Villas homes for $18.9 million, 47 acres of undeveloped land at Magnolia Place for $14.5 million, and one Amarra Drive Phase III lot for $1.4 million. The company also recorded a pre-tax gain of $1.6 million from the sale of Magnolia Place – Retail.

In terms of profitability, Stratus reported a net income attributable to common stockholders of $2.0 million, or $0.24 per diluted share, a significant turnaround from a net loss of $14.8 million, or $(1.85) per diluted share, in 2023. The improved financial performance can be attributed to increased sales in the Real Estate Operations segment and a rise in rental revenue from the Leasing Operations segment, which saw a $4.6 million increase to $19.3 million, largely due to the commencement of operations at The Saint June multi-family project.

Strategically, Stratus has continued to focus on its development program, particularly in the Austin area, where it has a substantial portfolio of approximately 1,500 acres of land for future development. The company has also engaged in refinancing efforts, successfully lowering interest rates on several loans, which is expected to enhance liquidity and reduce financing costs. As of December 31, 2024, Stratus had consolidated cash and cash equivalents of $20.2 million and $39.0 million available under its revolving credit facility, indicating a strong liquidity position.

Operationally, Stratus has made significant progress in its development projects, including the completion and lease-up of The Saint June and ongoing construction of The Saint George, a 316-unit luxury multi-family project expected to be completed in the first half of 2025. The company has also been actively managing its retail and multi-family portfolio, which includes five stabilized projects as of year-end 2024. Despite facing challenges from rising interest rates and elevated costs in recent years, Stratus remains optimistic about improving market conditions, particularly following recent interest rate cuts by the Federal Reserve.

Looking ahead, Stratus plans to continue its focus on residential and residential-centric mixed-use developments, leveraging its strong liquidity and access to capital to navigate market fluctuations. The company anticipates that if market conditions improve, it will be well-positioned to capitalize on opportunities for property sales and further development, while also maintaining a disciplined approach to managing costs and advancing its projects.