STRATUS PROPERTIES (STRS)

Stratus Properties Inc. completed the sale of Kingwood Place on January 30, 2026. Key financial details of this transaction are provided below:

• The sale of Kingwood Place, a mixed-use development, generated $27.1 million in pre-tax net cash proceeds and resulted in a $16.2 million cash distribution to Stratus. The company expects to recognize a pre-tax gain of approximately $13.7 million from this sale.
• The sale price of $60.8 million represented a 9.3% premium to Stratus’ pre-tax net asset value of Kingwood Place. This marks Stratus' third recent sale of a stabilized retail project.
• Effective January 30, 2026, Stratus and its subsidiaries entered into a Tenth Modification Agreement with Comerica Bank, extending the maturity date of their secured revolving credit facility to March 27, 2028.
• As of January 30, 2026, the borrowing base limit for the credit facility was $27.4 million, with $17.4 million available to the company.

• Stratus Properties Inc. (STRS) has completed the sale of Kingwood Place for $60.8 million.
• The sale generated approximately $27.1 million in pre-tax net cash proceeds and is expected to result in a pre-tax gain of approximately $13.7 million, net of noncontrolling interests.
• Stratus received a cash distribution of approximately $16.2 million in connection with the sale.
• This transaction marks Stratus' third recent sale of a stabilized retail project and strengthens its financial position as the company continues to explore strategic alternatives to maximize shareholder value.

• Stratus Properties Inc. has initiated a process to explore strategic alternatives to maximize shareholder value, which includes considering a sale of the company, a plan of dissolution and liquidation, and further share repurchases.
• The company announced an agreement to sell Kingwood Place for $60.8 million, a mixed-use development project in Kingwood, Texas.
• This sale is expected to generate estimated pre-tax net cash proceeds of approximately $26 million and is anticipated to close in first-quarter 2026.
• The Board's decision to evaluate strategic alternatives is driven by a solid cash position from recent asset sales, a streamlined portfolio, and a more mature asset base.

• Stratus Properties Inc. (STRS) announced that its Board of Directors has initiated a process to explore strategic alternatives to maximize shareholder value, which may include a potential sale of the company, dissolution and liquidation, or further share repurchases.
• The company has entered into an agreement to sell its Kingwood Place project for $60.8 million, a mixed-use development in Kingwood, Texas.
• This sale is expected to generate estimated pre-tax net cash proceeds of approximately $26 million and is anticipated to close in the first quarter of 2026.

• Stratus Properties Inc. completed the sale of its 100% owned, stabilized Lantana Place – Retail project for $57.5 million in cash on November 14, 2025.
• The transaction generated pre-tax net cash proceeds of approximately $26.9 million after selling costs and payment of the project loan.
• The sales price was a premium to the gross value presented in Stratus’ net asset value calculation as of December 31, 2024.
• Following the sale, Stratus retains the property planned for The Saint Julia, an approximately 210-unit multi-family development, and remaining entitlements for 160,000 square feet of commercial use in the Lantana community.
• Pro forma adjustments indicate that the disposition would have increased cash and cash equivalents by $26,939 thousand and decreased debt by $29,451 thousand as of September 30, 2025.

• Stratus Properties Inc. reported a net loss attributable to common stockholders of $(5.0) million, or $(0.62) per diluted share, on $5.0 million in revenues for the third quarter of 2025, compared to a net loss of $(0.4) million and revenues of $8.9 million in Q3 2024. For the first nine months of 2025, the net loss was $(7.6) million, or $(0.94) per diluted share, on $21.6 million in revenues, down from net income of $2.5 million and revenues of $43.9 million in the prior year period.
• In October 2025, Stratus entered an agreement to sell Lantana Place – Retail for approximately $57.4 million, with the sale anticipated to close in the fourth quarter of 2025, and proceeds expected to repay an approximate $29.8 million project loan.
• As of September 30, 2025, the company held $55.0 million in cash and cash equivalents and had $17.5 million available under its revolving credit facility. Through November 7, 2025, Stratus repurchased 180,899 shares for $3.9 million, with $21.1 million remaining in its share repurchase program, and its Board is exploring further cash deployment strategies.

• Stratus Properties Inc. reported a net loss attributable to common stockholders of $(5.0) million, or $(0.62) per diluted share, for third-quarter 2025, compared to a net loss of $(0.4) million, or $(0.05) per diluted share, in third-quarter 2024. For the first nine months of 2025, the net loss was $(7.6) million, or $(0.94) per diluted share, a decrease from net income of $2.5 million, or $0.30 per diluted share, in the same period of 2024.
• Revenues for third-quarter 2025 were $5.0 million, down from $8.9 million in third-quarter 2024, primarily due to no real estate sales in Q3 2025. Total revenues for the first nine months of 2025 were $21.6 million, a decrease from $43.9 million in the first nine months of 2024, mainly due to fewer real estate sales.
• As of September 30, 2025, the company had $55.0 million in cash and cash equivalents and no amounts drawn on its revolving credit facility. Consolidated debt totaled $203.9 million at the same date.
• Stratus entered into an agreement in October 2025 to sell Lantana Place – Retail for approximately $57.4 million, with the sale expected to close in fourth-quarter 2025. Proceeds are anticipated to repay a project loan with an approximate $29.8 million principal balance.
• Through November 7, 2025, Stratus has repurchased 180,899 shares of its common stock for $3.9 million, with $21.1 million remaining available under its $25.0 million share repurchase program.

• Stratus Properties Inc.'s subsidiary, The Saint June, L.P., amended its construction loan for The Saint June project, effective September 30, 2025, extending the maturity date to October 2, 2027.
• The amendments include additional advances totaling approximately $1.5 million (consisting of $534,023.11 and $1,000,000.00), increasing the outstanding principal balance to approximately $32.9 million and the aggregate commitment to $33,320,000.00, with no further funds available for advance.
• The loan's applicable interest rate margin was decreased from 2.35% to 2.00%, and monthly principal payments were eliminated, making the loan interest-only until maturity.
• A new property-level minimum debt yield financial covenant was introduced, requiring an 8.00% debt yield by October 31, 2026, or a principal paydown.
• Stratus, as guarantor, is required to open a money market deposit account with an initial balance of at least $5,000,000.00.