Executive Summary

Q2 2025 revenue rose to $11.605M, up from $8.490M in Q2 2024, driven by two Amarra Villas home sales; diluted EPS improved to $0.03 vs. $(0.21) in Q2 2024 as leasing gains and asset sale gains offset segment losses .
Liquidity inflected: cash and equivalents reached $59.4M at 6/30/25 with no revolver borrowings and $17.7M of availability, supported by a $47.8M cash distribution from the Holden Hills Phase 2 JV .
Capital return stepped up: Board expanded the share repurchase authorization from $5M to $25M; 135,620 shares bought for $3.0M at $22.13 average by Aug 8 .
Portfolio actions: completed sale of West Killeen Market for $13.3M, producing an ~$5.0M pre-tax gain and ~$7.8M pre-tax net cash proceeds, and completed construction of The Saint George and the last two Amarra Villas homes .

What Went Well and What Went Wrong

What Went Well

Asset monetization and cash build: $47.8M distribution from Holden Hills Phase 2 JV and $13.3M West Killeen Market sale strengthened cash to $59.4M and enabled a larger repurchase plan .
Leasing operations profit uplift: segment profit rose to $6.334M in Q2 (vs. $1.761M a year ago), aided by a ~$5.0M gain on West Killeen Market; The Saint George moved into Leasing upon completion .
Management tone on execution and optionality: “Our strengthened cash position provides our Board with flexibility to explore a variety of attractive alternatives,” said CEO William H. Armstrong III .

What Went Wrong

Core development profitability remained pressured: Real Estate Operations segment lost $(3.536)M in Q2 (vs. $(0.839)M in Q2 2024), including a $1.0M receivable write-off tied to historical development cost sharing .
Consolidated operating results still negative: operating loss $(0.759)M, net loss to the company overall offset by noncontrolling interests to produce $0.260M net income to common; EBITDA was $(0.185)M .
First-half comparison soft vs. prior year given lumpy 2024 land/home sales: 1H25 revenue $16.648M vs. $34.997M in 1H24 due to fewer property sales (notably Magnolia Place land and more Amarra Villas in 1H24) .

Financial Results

Consolidated results vs. prior year and prior quarter

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$8.490	$5.043	$11.605
Operating Income (Loss) ($USD Millions)	$(2.920)	$(3.595)	$(0.759)
Net Income (Loss) Attributable to Common ($USD Millions)	$(1.725)	$(2.875)	$0.260
Diluted EPS ($)	$(0.21)	$(0.36)	$0.03
EBITDA ($USD Millions)	$(1.332)	$(2.333)	$(0.185)

Notes: Company did not provide explicit EPS or revenue guidance; no S&P Global consensus estimates were available for Q2 2025 (see Estimates Context).

Segment breakdown

Segment KPI ($USD Millions)	Q2 2024	Q2 2025
Real Estate Operations Revenue	$3.629	$6.798
Real Estate Operations Segment Profit (Loss)	$(0.839)	$(3.536)
Leasing Operations Revenue	$4.861	$4.807
Leasing Operations Segment Profit	$1.761	$6.334
Gain on Sale (included in Leasing)	—	~$5.0

KPIs and balance sheet/lifecycle metrics

KPI	Q2 2025	Source
Cash & Cash Equivalents (6/30/25)	$59.386M
Total Debt (6/30/25)	$199.434M
Revolver Availability (6/30/25)	$17.7M (no draws)
Capital Expenditures + Purchases & Development (1H25)	$21.558M
Holden Hills Phase 2 JV Cash Distribution	$47.8M
West Killeen Market Sale Price / Pre-tax Gain / Pre-tax Net Cash Proceeds	$13.3M / ~$5.0M / ~$7.8M
Share Repurchases through Aug 8, 2025	135,620 shares, $3.0M at $22.13 avg
MUD Reimbursement Applied to Development (Q2)	$0.409M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative financial guidance (revenue, EPS, margins)	FY/Q2 2025	None issued	None issued	Maintained (no guidance)
Share Repurchase Authorization	Program	$5.0M	$25.0M	Raised

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in our document catalog; themes reflect management commentary from the press releases.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Capital returns	$5M buyback authorized; ongoing repurchases	Authorization increased to $25M; $3.0M bought by Aug 8	Increasing capital return optionality
Asset recycling/dispositions	Magnolia Place – Retail sold in 2024; W. Killeen contract signed in Q1 2025	W. Killeen sale closed; ~$5.0M pre-tax gain; ~$7.8M cash proceeds	Continued monetization
Liquidity and debt management	Multiple project refinancings; revolver maturity extended; lowered rates	Cash $59.4M; no revolver borrowings; $17.7M availability	Improved liquidity
Development progress	The Saint June lease-up completed in 2024; The Saint George and Amarra Villas nearing completion in 1H25	The Saint George and last two Amarra Villas completed; Holden Hills Phase 1 infra substantially complete	Execution milestones achieved
Barton Creek/ETJ regulatory backdrop	ETJ Law cited as ongoing legal risk	ETJ Law litigation continues to be a risk factor	Ongoing
Operational incident risk (The Saint George)	Noted in risk disclosures (water leak remediation cost risk)	Remains in forward-looking risk factors	Monitoring

Management Commentary

“During the first six months of 2025, we accomplished significant milestones… [Holden Hills Phase 2 JV resulting in] a $47.8 million cash distribution… sold our stabilized West Killeen Market… completed construction on The Saint George [and] last two Amarra Villas… Our strengthened cash position provides our Board with flexibility to explore a variety of attractive alternatives.” — William H. Armstrong III, Chairman & CEO .
On strategy and capital deployment: The Board is “carefully exploring opportunities for the use of cash… which may include further share repurchases, deleveraging, reinvesting in [the] pipeline and/or other cash returns to stockholders.” .
On execution tempo (Q1 set-up): “We have continued to execute on opportunistic transactions, such as refinancing project loans… and contracting to sell our stabilized West Killeen Market… We have a number of attractive multi-family development projects… ready to go, subject to market conditions and financing.” — CEO .

Q&A Highlights

No Q2 2025 earnings call transcript was available; management’s disclosures are drawn from the 8‑K/press release package. Any guidance clarifications were not published in a call transcript for this period.

Estimates Context

S&P Global consensus was not available for Q2 2025 (EPS and revenue) for STRS; thus, no beat/miss determination versus Wall Street could be made. Actuals: revenue $11.605M and diluted EPS $0.03 .
Implication: With estimate benchmarks absent, buyside will anchor on qualitative positives (cash build, JV distribution, asset sale gain, authorization expansion) and on sequential improvements in operating loss and EBITDA, while recognizing ongoing development segment losses .

Key Takeaways for Investors

Liquidity and optionality stepped up materially via the $47.8M Holden Hills Phase 2 distribution and West Killeen Market monetization; cash at quarter-end was $59.4M with undrawn revolver capacity .
Capital return is now a larger lever (authorization to $25M; $3.0M repurchased YTD through Aug 8), potentially supporting the stock during development cycles .
Earnings quality in Q2 benefited from a ~$5.0M asset sale gain; core Real Estate Operations profitability remains negative and included a $1.0M receivable write-off, underscoring continued execution risk in for-sale projects .
Leasing Operations are a stabilizing force, posting $6.334M segment profit in Q2 as The Saint George moved to Leasing upon completion and the sale gain flowed through .
With no formal guidance or Street consensus, focus turns to deal cadence (asset sales/JVs), lease-up/NOI growth across stabilized assets, and capital allocation (buybacks vs. deleveraging vs. reinvestment) .
Regulatory/legal (ETJ Law) and project-level risks (e.g., The Saint George water-leak remediation) persist; monitor for cost impacts or timing delays .
Near-term trading setup: buyback authorization and cash build are supportive, while the absence of recurring earnings catalysts outside asset monetization may cap near-term multiple expansion until more core profitability traction emerges .

Appendix: Primary Documents Used

Q2 2025 results press release and 8‑K Item 2.02, including financial tables, segment data, liquidity, and repurchase authorization .
Q1 2025 results press release (for sequential comparison and setup) .
Press release on the sale of West Killeen Market (transaction detail) .

S&P Global consensus estimates for Q2 2025 were unavailable for STRS; all comparisons anchor to company-reported figures.

STRATUS PROPERTIES INC (STRS)·Q2 2025 Earnings Summary