Richard Diamond's questions to STRATUS PROPERTIES (STRS) leadership • Q2 2022
Question
Richard Diamond of Castlewood Capital asked for insights into shareholder feedback regarding the capital return strategy (buyback vs. dividend) and their long-term commitment to the business, especially considering negative headlines about the housing market.
Answer
Chairman, President and CEO Beau Armstrong explained that shareholder feedback varied, with a general preference for an accretive stock buyback, followed by a dividend, while ensuring enough capital remains for key projects like Section N. Regarding the housing market, Armstrong expressed strong confidence in Austin, believing it will continue to face a critical housing shortage, which presents a significant and durable opportunity for Stratus, differentiating it from negative macro trends.