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    Chris Mooney

    Research Analyst at Wedbush Securities

    Chris Mooney's questions to STRATUS PROPERTIES (STRS) leadership

    Chris Mooney's questions to STRATUS PROPERTIES (STRS) leadership • Q2 2022

    Question

    Chris Mooney of Wedbush Securities inquired about the timing of the $50 million capital return, the company's remaining cash position, details on project-level debt, the status of HEB retail center sales, and operational updates for projects including The Saint June, Lantana Place, Circle C, Lakeway, and the large-scale Section N development.

    Answer

    Chairman, President and CEO Beau Armstrong stated the capital return plan would be finalized in weeks, pending bank consent and shareholder discussions. He noted that after the return and a ~$20 million tax liability, the company would have sufficient cash. Armstrong detailed that most debt is project-level, with three HEB centers being marketed for sale, with an update expected after Labor Day. He provided project updates: The Saint June's first units are due by year-end, and Lantana Place is approximately 90% leased. CFO Erin Pickens confirmed Lantana Place is just under 100,000 square feet.

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    Chris Mooney's questions to STRATUS PROPERTIES (STRS) leadership • Q1 2022

    Question

    Chris Mooney of Wedbush Securities inquired about the revised development strategy for the Section N property, potential corporate interest, and its financing structure. He also asked about the debt on three specific retail properties and the demolition status of The Annie B and The Saint George projects.

    Answer

    Chairman, President and CEO Beau Armstrong detailed that the new plan for Section N leverages ordinance changes for increased density with taller, structured buildings, reflecting Austin's market growth. He confirmed Stratus anticipates significant corporate interest and will likely seek a partner for the large-scale project, which is currently wholly-owned. Armstrong also confirmed demolition has begun on The Annie B, with The Saint George permit pending.

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    Chris Mooney's questions to STRATUS PROPERTIES (STRS) leadership • Q4 2021

    Question

    Chris Mooney of Wedbush Securities inquired about the specifics of the Block 21 transaction, including a $5 million set-aside and a large escrow amount. He also requested updates on development activities in Lakeway and Circle C and asked about the potential monetization of three stabilized retail centers.

    Answer

    Chairman, President and CEO Beau Armstrong clarified that the $5 million set-aside for Block 21 relates to tenant movements and the escrow is actually $6.9 million, a customary 12-month holdback for reps and warranties. He detailed ongoing discussions for a potential multifamily rezoning in Lakeway and a mixed-use rezoning in Circle C. Regarding the retail centers, Armstrong confirmed the strategy is to build, stabilize, and sell, with a potential transaction this year or early next, noting the properties' strong performance during COVID.

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