Stratus Properties Inc. reported significant financial improvements in its third-quarter and year-to-date results for 2024, as detailed in its recent 10-Q filing. For the three months ended September 30, 2024, total revenues surged to $8.9 million, a substantial increase from $3.7 million in the same period of 2023. This growth was driven by robust performance in both real estate and leasing operations, with real estate operations generating $3.97 million and leasing operations contributing $4.92 million.

For the nine months ended September 30, 2024, total revenues reached $43.89 million, compared to $13.00 million for the same period in 2023. The increase in revenue was primarily attributed to the sale of approximately 47 acres of undeveloped land at Magnolia Place for $14.5 million and the sale of four Amarra Villas homes totaling $15.2 million. The average sales price for Amarra Villas homes rose by approximately 52% year-over-year.

Despite the revenue growth, Stratus reported an operating loss of $1.52 million for the third quarter, although this was an improvement from the $3.33 million loss in the same quarter of 2023. The net loss attributable to common stockholders for the third quarter was $364,000, significantly better than the $2.84 million loss reported in the prior year. For the nine months ended September 30, 2024, the company achieved a net income of $2.46 million, a notable recovery from a net loss of $13.95 million in the same period of 2023.

Stratus' total assets increased to $523.18 million as of September 30, 2024, up from $517.77 million at the end of 2023. However, total debt also rose to $181.54 million from $175.17 million during the same period. The company’s cash and cash equivalents decreased to $19.64 million from $31.40 million at the end of 2023, reflecting increased capital expenditures and operational cash flow needs.

Strategically, Stratus has been active in its development projects, with ongoing construction of The Saint June, a 182-unit luxury multi-family project, and the Holden Hills residential development. The company has also made several operating loans to its partnerships, including $2.4 million to Stratus Block 150, L.P. in February 2024.

Overall, Stratus Properties Inc. is navigating a challenging market environment characterized by rising interest rates and increased construction costs, while positioning itself for future growth through strategic developments and asset sales.