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Business Segments
 9 Months Ended
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 EndedNine Months Ended
September 30,September 30,
2022202120222021
Real Estate Operations:
Developed property sales$— $— $2,382 $4,615 
Undeveloped property sales6,887 750 12,331 3,250 
Commissions and other— 142 118 351 
6,887 892 14,831 8,216 
Leasing Operations:
Rental revenue3,090 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 $— $9,977 
Cost of sales, excluding depreciation6,232 1,350 (4)7,578 
Depreciation24 887 (4)907 
General and administrative expenses— — 3,602 3,602 
Impairment of real estate c
720 — — 720 
Operating (loss) income$(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, 2022274,397 111,938 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 $— $6,268 
Cost of sales, excluding depreciation2,134 2,238 (25)4,347 
Depreciation37 1,449 (14)1,472 
General and administrative expenses c
— — 5,252 5,252 
Impairment of real estate d
625 — — 625 
Operating (loss) income$(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 
Intersegment6 — (6)— 
Cost of sales, excluding depreciation13,030 3,204 (4)16,230 
Depreciation73 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 
Intersegment9 — (9)— 
Cost of sales, excluding depreciation8,026 

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.