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Business Segments | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Business Segments | BUSINESS SEGMENTSAs a result of the sale of Block 21, Stratus has two operating segments: Real Estate Operations and Leasing Operations. Block 21, which encompassed Stratus’ hotel and entertainment segments, along with some leasing operations, is reflected as discontinued operations through its sale in May 2022. The Real Estate Operations segment is comprised of Stratus’ real estate assets (developed for sale, under development and available for development), which consists of its properties in Austin, Texas (including Section N, Holden Hills, Amarra multi-family and commercial land, Amara Villas, The Saint June and other vacant land in the Barton Creek community; the Circle C community; the Lantana community, including a portion of Lantana Place planned for a multi-family phase now known as The Saint Julia; The Saint George; and the land for The Annie B); in Lakeway, Texas, located in the greater Austin area (Lakeway); in College Station, Texas (a portion of Jones Crossing and vacant pad sites); and in Magnolia, Texas (Magnolia Place), Kingwood, Texas (land for future multi-family development, for which a sale closed in October 2022, and a vacant pad site) and New Caney, Texas (New Caney), located in the greater Houston area. The Leasing Operations segment is comprised of Stratus’ real estate assets, both residential and commercial, that are leased or available for lease and includes West Killeen Market, Lantana Place, Kingwood Place and the completed portion of Jones Crossing. The segment also included The Saint Mary until its sale in January 2021 and The Santal until its sale in December 2021. Stratus uses operating income or loss to measure the performance of each segment. General and administrative expenses, which primarily consist of employee salaries, wages and other costs, are managed on a consolidated basis and are not allocated to Stratus’ operating segments. The following segment information reflects management determinations that may not be indicative of what the actual financial performance of each segment would be if it were an independent entity. Revenues from Contracts with Customers. Stratus' revenues from contracts with customers follow (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Real Estate Operations: |  |  |  |  |  |  |
Developed property sales | $ | — |  |  | $ | — |  |  | $ | 2,382 |  |  | $ | 4,615 |
Undeveloped property sales | 6,887 |  |  | 750 |  |  | 12,331 |  |  | 3,250 |
Commissions and other | — |  |  | 142 |  |  | 118 |  |  | 351 |
| 6,887 |  |  | 892 |  |  | 14,831 |  |  | 8,216 |
Leasing Operations: |  |  |  |  |  |  |
Rental revenue | 3,090 |  |  | 5,376 |  |  | 9,370 |  |  | 15,057 |
| 3,090 |  |  | 5,376 |  |  | 9,370 |  |  | 15,057 |
Total revenues from contracts with customers | $ | 9,977 |  |  | $ | 6,268 |  |  | $ | 24,201 |  |  | $ | 23,273 |
Financial Information by Business Segment. Summarized financial information by segment for the three months ended September 30, 2022, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):
| Real Estate Operations a |  | Leasing Operations |  | Corporate, Eliminations and Other b |  | Total
Revenues: |  |  |  |  |  |  |
Unaffiliated customers | $ | 6,887 |  |  | $ | 3,090 |  |  | $ | — |  |  | $ | 9,977 |
Cost of sales, excluding depreciation | 6,232 |  |  | 1,350 |  |  | (4) |  |  | 7,578 |
Depreciation | 24 |  |  | 887 |  |  | (4) |  |  | 907 |
General and administrative expenses | — |  |  | — |  |  | 3,602 |  |  | 3,602 |
Impairment of real estate c | 720 |  |  | — |  |  | — |  |  | 720 |
Operating (loss) income | $ | (89) |  |  | $ | 853 |  |  | $ | (3,594) |  |  | $ | (2,830) |
Capital expenditures and purchases and development of real estate properties | $ | 6,203 |  |  | $ | 11,314 |  |  | $ | — |  |  | $ | 17,517 |
Total assets at September 30, 2022 | 274,397 |  |  | 111,938 |  |  | 76,502 |  |  | 462,837 |
a.Includes sales commissions and other revenues together with related expenses. b.Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c.Includes a $650 thousand impairment charge for one of the Amarra Villas homes that is under contract to sell for $2.4 million and a $70 thousand impairment charge for the multi-family tract of land at Kingwood Place that sold for $5.5 million in October 2022. Summarized financial information by segment for the three months ended September 30, 2021, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):
| Real Estate Operations a |  | Leasing Operations |  | Corporate, Eliminations and Other b |  | Total
Revenues: |  |  |  |  |  |  |
Unaffiliated customers | $ | 892 |  |  | $ | 5,376 |  |  | $ | — |  |  | $ | 6,268 |
Cost of sales, excluding depreciation | 2,134 |  |  | 2,238 |  |  | (25) |  |  | 4,347 |
Depreciation | 37 |  |  | 1,449 |  |  | (14) |  |  | 1,472 |
General and administrative expenses c | — |  |  | — |  |  | 5,252 |  |  | 5,252 |
Impairment of real estate d | 625 |  |  | — |  |  | — |  |  | 625 |
Operating (loss) income | $ | (1,904) |  |  | $ | 1,689 |  |  | $ | (5,213) |  |  | $ | (5,428) |
Capital expenditures and purchases and development of real estate properties | $ | 25,962 |  |  | $ | 4,120 |  |  | $ | 210 |  |  | $ | 30,292 |
Total assets at September 30, 2021 e | 211,423 |  |  | 180,057 |  |  | 167,620 |  |  | 559,100 |
a.Includes sales commissions and other revenues together with related expenses. b.Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c.Includes $2.8 million in employee incentive compensation costs associated with the PPIP resulting primarily from an increased valuation for The Santal. d.Includes a $625 thousand impairment charge for the multi-family tract of land at Kingwood Place. e.Leasing operations includes $67.3 million of assets held for sale related to the December 2021 sale of The Santal. Corporate, eliminations and other includes $147.8 million of assets held for sale associated with discontinued operations at Block 21. Summarized financial information by segment for the nine months ended September 30, 2022, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):
| Real Estate Operations a |  | Leasing Operations |  | Corporate, Eliminations and Other b |  | Total
Revenues: |  |  |  |  |  |  |
Unaffiliated customers | $ | 14,831 |  |  | $ | 9,370 |  |  | $ | — |  |  | $ | 24,201 |
Intersegment | 6 |  |  | — |  |  | (6) |  |  | — |
Cost of sales, excluding depreciation | 13,030 |  |  | 3,204 |  |  | (4) |  |  | 16,230 |
Depreciation | 73 |  |  | 2,604 |  |  | (13) |  |  | 2,664 |
General and administrative expenses | — |  |  | — |  |  | 10,213 |  |  | 10,213 |
Gain on sale of assets c | — |  |  | (4,812) |  |  | — |  |  | (4,812) |
Impairment of real estate d | 720 |  |  | — |  |  | — |  |  | 720 |
Operating income (loss) | $ | 1,014 |  |  | $ | 8,374 |  |  | $ | (10,202) |  |  | $ | (814) |
Capital expenditures and purchases and development of real estate properties | $ | 18,294 |  |  | $ | 38,676 |  |  | $ | 213 |  |  | $ | 57,183 |
a.Includes sales commissions and other revenues together with related expenses. b.Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c.Represents a pre-tax gain recognized on the reversal of accruals for costs to lease and construct buildings under a master lease arrangement that Stratus entered into in connection with its sale of The Oaks at Lakeway in 2017. d.Includes a $650 thousand impairment charge for one of the Amarra Villas homes that is under contract to sell for $2.4 million and a $70 thousand impairment charge for the multi-family tract of land at Kingwood Place that sold for $5.5 million in October 2022. Summarized financial information by segment for the nine months ended September 30, 2021, based on Stratus’ internal financial reporting system utilized by its chief operating decision maker, follows (in thousands):
| Real Estate Operations a |  | Leasing Operations |  | Corporate, Eliminations and Other b |  | Total
Revenues: |  |  |  |  |  |  |
Unaffiliated customers | $ | 8,216 |  |  | $ | 15,057 |  |  | $ | — |  |  | $ | 23,273 |
Intersegment | 9 |  |  | — |  |  | (9) |  |  | — |
Cost of sales, excluding depreciation | 8,026 |  |  | 6,482 |  |  | (25) |  |  | 14,483 |
Depreciation | 149 |  |  | 4,525 |  |  | (50) |  |  | 4,624 |
General and administrative expenses c | — |  |  | — |  |  | 15,797 |  |  | 15,797 |
Gain on sale of assets d | — |  |  | (22,931) |  |  | — |  |  | (22,931) |
Impairment of real estate e | 625 |  |  | — |  |  | — |  |  | 625 |
Operating (loss) income | $ | (575) |  |  | $ | 26,981 |  |  | $ | (15,731) |  |  | $ | 10,675 |
Capital expenditures and purchases and development of real estate properties | $ | 30,841 |  |  | $ | 6,233 |  |  | $ | 475 |  |  | $ | 37,549 |
a.Includes sales commissions and other revenues together with related expenses. b.Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c.Includes $3.8 million incurred for consulting, legal and public relation costs for Stratus' successful proxy contest and the real estate investment trust exploration process as well as $3.5 million in employee incentive compensation costs associated with the PPIP resulting primarily from an increased valuation for The Santal. d.Represents the pre-tax gain on the January 2021 sale of The Saint Mary. e.Includes a $625 thousand impairment charge for the multi-family tract of land at Kingwood Place.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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