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Business Segments
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
As 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 presented as discontinued operations.

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 the Barton Creek Community, which includes Section N, Holden Hills, Amarra multi-family and commercial land, Amarra Villas, The Saint June, Amarra Drive lots and other vacant land; the Circle C community; the Lantana community, which includes 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 (land for future phases of retail and multi-family development and retail pad sites at Jones Crossing); and in Magnolia, Texas (land for a future phase of retail development and for future multi-family use and retail pad sites at Magnolia Place), Kingwood, Texas (a retail pad site) and New Caney, Texas (New Caney), each located in the greater Houston area.

The Leasing Operations segment is comprised of Stratus’ real estate assets held for investment that are leased or available for lease and includes retail space at West Killeen Market, Lantana Place, Kingwood Place and the completed portions of Jones Crossing and Magnolia Place and retail pad sites subject to ground leases at Lantana Place, Kingwood Place and Jones Crossing.

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 EndedSix Months Ended
June 30,June 30,
2023202220232022
Real Estate Operations:
Developed property sales$— $2,382 $2,493 $2,382 
Undeveloped property sales— 5,444 — 5,444 
Commissions and other58 99 58 118 
58 7,925 2,551 7,944 
Leasing Operations:
Rental revenue3,472 3,200 6,781 6,280 
3,472 3,200 6,781 6,280 
Total revenues from contracts with customers$3,530 $11,125 $9,332 $14,224 
Financial Information by Business Segment. Summarized financial information by segment for the three months ended June 30, 2023, 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$58 $3,472 $— $3,530 
Cost of sales, excluding depreciation(2,697)(1,144)— (3,841)
Depreciation and amortization(50)(924)4 (970)
General and administrative expenses— — (4,071)(4,071)
Operating (loss) income$(2,689)$1,404 $(4,067)$(5,352)
Capital expenditures and purchases and development of real estate properties
$12,057 $13,471 $— $25,528 
Total assets at June 30, 2023 c
328,033 111,252 46,470 485,755 
a.Includes sales commissions and other revenues together with related expenses.
b.Includes consolidated general and administrative expenses and eliminations of intersegment amounts.
c.Corporate, eliminations and other includes cash and cash equivalents and restricted cash of $43.2 million. The remaining cash and cash equivalents and restricted cash is reflected in the operating segments’ assets.


Summarized financial information by segment for the three months ended June 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$7,925 $3,200 $— $11,125 
Intersegment2 — (2)— 
Cost of sales, excluding depreciation(5,432)(870)— (6,302)
Depreciation and amortization(24)(865)5 (884)
General and administrative expenses— — (3,444)(3,444)
Operating income (loss)$2,471 $1,465 $(3,441)$495 
Capital expenditures and purchases and development of real estate properties
$7,227 $12,820 $31 $20,078 
Total assets at June 30, 2022 c
265,929 106,020 112,711 484,660 
a.Includes sales commissions and other revenues together with related expenses.
b.Includes consolidated general and administrative expenses and eliminations of intersegment amounts.
c.Corporate, eliminations and other includes $102.3 million of cash and cash equivalents and restricted cash, primarily received from the May 2022 sale of Block 21. The remaining cash and cash equivalents and restricted cash is reflected in the operating segments’ assets.
Summarized financial information by segment for the six months ended June 30, 2023, 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$2,551 $6,781 $— $9,332 
Cost of sales, excluding depreciation(7,184)(2,405)— (9,589)
Depreciation and amortization(77)(1,830)9 (1,898)
General and administrative expenses— — (8,790)(8,790)
Operating (loss) income$(4,710)$2,546 $(8,781)$(10,945)
Capital expenditures and purchases and development of real estate properties
$21,084 $23,477 $— $44,561 
a.Includes sales commissions and other revenues together with related expenses.
b.Includes consolidated general and administrative expenses and eliminations of intersegment amounts.

Summarized financial information by segment for the six months ended June 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$7,944 $6,280 $— $14,224 
Intersegment6 — (6)— 
Cost of sales, excluding depreciation(6,798)

(1,854)— (8,652)
Depreciation and amortization(49)(1,717)9 (1,757)
General and administrative expenses— — (6,611)(6,611)
Gain on sale of assets c
— 4,812 — 4,812 
Operating income (loss)$1,103 $7,521 $(6,608)$2,016 
Capital expenditures and purchases and development of real estate properties
$12,091 $27,362 $213 $39,666 
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. Refer to Note 4 under the heading “The Oaks at Lakeway” for further discussion.