SP
STRATUS PROPERTIES INC (STRS)·Q4 2024 Earnings Summary
Executive Summary
- Q4 2024 revenue was $10.30M, up 15.6% sequentially and 141.2% year over year; EBITDA was -$0.73M and diluted EPS was -$0.06, reflecting improved operating leverage versus prior periods as leasing stabilized and real estate sales supported results.* Values retrieved from S&P Global
- For full-year 2024, revenue rose to $54.18M (+213% YoY) and net income to $1.96M ($0.24 diluted EPS), driven by sales of five Amarra Villas homes ($18.9M), Magnolia Place land ($14.5M) and lease-up of The Saint June .
- Liquidity remained solid with $20.2M cash at year-end and $39.0M revolver availability; management refinanced multiple project loans at lower spreads, generating ~$7.7M aggregate cash proceeds and expecting further interest expense declines if market rates fall .
- The portfolio is focused on residential and residential-centric mixed-use with no office exposure; management reiterated confidence and highlighted project completions (Saint George, Holden Hills Phase 1, remaining Amarra Villas) expected in 1H 2025 .
What Went Well and What Went Wrong
What Went Well
- Strong FY 2024 revenue growth (+213% YoY) and a return to profitability ($1.96M net income; $0.24 diluted EPS) due to successful asset sales and leasing stabilization .
- Leasing momentum: The Saint June completed lease-up in 2024; occupancy reached ~97–98% in prior quarters, supporting higher lease revenues .
- Liability optimization: Refinancings (Kingwood Place Q4’24; Lantana Place Jan’25; Jones Crossing Mar’25) lowered rates, extended maturities, and delivered ~$7.7M aggregate cash proceeds, enhancing financial flexibility .
Management quote:
- “Our experienced team continues to successfully execute on our disciplined strategy by delivering on value‑enhancing transactions, continuing to advance our development projects and returning capital to stockholders.” — CEO William H. Armstrong III .
What Went Wrong
- Q4 EBITDA negative (-$0.73M) and Q4 diluted EPS (-$0.06) despite sequential improvement; margins remained below breakeven as development costs and G&A weighed on quarterly profitability.* Values retrieved from S&P Global
- Debt increased to $194.9M at year-end (from $175.2M in 2023) due to construction draws for Saint George and Holden Hills, partially offset by paydowns and Magnolia Place payoff .
- Limited Street estimate coverage: S&P Global consensus for EPS and revenue was unavailable, reducing clarity on beat/miss framing for traders.* Values retrieved from S&P Global
Financial Results
Quarterly Performance vs Prior Periods and Prior Year
Notes:
- Values marked with an asterisk were retrieved from S&P Global and may not have document citations. Values retrieved from S&P Global.
Year-over-Year Q4 Comparison
Notes:
- Values marked with an asterisk were retrieved from S&P Global and may not have document citations. Values retrieved from S&P Global.
Segment Breakdown (Annual Reference)
KPIs and Balance Sheet Trend (Quarterly)
Guidance Changes
Earnings Call Themes & Trends
No Q4 2024 earnings call transcript was available for STRS during the period analyzed.
Management Commentary
- “Our progress on The Saint June, The Saint George, Holden Hills Phase 1 and Amarra Villas... reflects our focus on residential projects in Austin and other select Texas locations, where demand remains strong.” — CEO William H. Armstrong III .
- “Occupancy at The Saint June... reached 98 percent at rents above our initial projections.” — CEO William H. Armstrong III (Q2 2024) .
- “We completed property sales totaling $38.6 million... The average sales price of the Amarra Villas homes was substantially higher than the prior‑year period.” — CEO William H. Armstrong III (Q3 2024) .
- “We have now refinanced [Kingwood Place]... taking advantage of lower interest rates through a non‑recourse refinancing.” — CEO William H. Armstrong III (Kingwood refi press release) .
Q&A Highlights
- No Q4 2024 earnings call transcript was available; no Q&A themes or clarifications to report for the quarter.
Estimates Context
- S&P Global consensus for Q4 2024 EPS and revenue was unavailable; Street coverage appears limited for STRS at the quarterly level.* Values retrieved from S&P Global
- Given the lack of consensus estimates, we cannot mark formal beats/misses; however, sequential and YoY comparisons show improving trends in revenue and margins.* Values retrieved from S&P Global
Key Takeaways for Investors
- Sequential improvement: Q4 revenue +15.6% vs Q3 and YoY +141.2%, with narrowing negative EBITDA and EBIT margins as leasing stabilized and real estate sales supported results.* Values retrieved from S&P Global
- Execution on capital structure: Multiple refinancings lowered spreads, extended maturities, and delivered ~$7.7M aggregate cash proceeds, bolstering liquidity and potentially lowering future interest costs .
- Strong FY reset: 2024 returned to profitability ($1.96M net income; $0.24 diluted EPS) on $54.18M revenue, showcasing tangible progress in monetizing development pipeline and leasing .
- Residential-centric portfolio: No office exposure, with focus on Austin and select Texas markets; management confidence tied to local demand trends .
- Near‑term catalysts: Project completions targeted in 1H 2025 (Saint George, Holden Hills Phase 1, remaining Amarra Villas), offering potential sale/lease milestones and cash inflows .
- Liquidity/optionalities: Year‑end cash $20.2M and $39.0M revolver availability; share repurchases ongoing with $3.0M remaining authorization .
- NAV framing: After‑tax NAV disclosed at $330.5M ($40.38/sh), providing valuation context amid limited Street estimate coverage .
Appendix citations:
- Q4/Full-year press release and financials:
- Form 8-K (Item 2.02) with press release and investor presentation:
- Q3 2024 press release:
- Q2 2024 press release:
- Kingwood Place refinancing press release:
Notes:
- Values marked with an asterisk were retrieved from S&P Global and may not have document citations. Values retrieved from S&P Global.