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Limited Partnerships
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
Limited Partnerships LIMITED PARTNERSHIPS
Stratus has entered into strategic partnerships for certain development projects. Stratus, through its subsidiaries, is a partner in the following limited partnerships: The Saint George Apartments, L.P. (10.0 percent indirect equity
interest), Stratus Block 150, L.P. (31.0 percent indirect equity interest), The Saint June, L.P. (34.13 percent indirect equity interest), Holden Hills, L.P. (50.0 percent indirect equity interest) and Stratus Kingwood Place, L.P. (60.0 percent indirect equity interest). For additional information regarding Stratus' partnerships, refer to Note 2 in the Stratus 2023 Form 10-K.

Operating Loans to Partnerships. In April 2023, Stratus made an operating loan of $1.5 million to Stratus Block 150, L.P. to facilitate the partnership’s ability to pay ongoing costs of The Annie B project during the pre-construction period. In August 2023 and February 2024, Stratus made additional operating loans of $800 thousand and $2.4 million, respectively, to Stratus Block 150, L.P. The loans are subordinate to The Annie B land loan and must be repaid before distributions may be made to the partners. Until February 2024, the interest rate on the loans was the one-month Bloomberg Short Term Bank Yield Index (BSBY) Rate plus 5.00 percent. In February 2024, the interest rate on the loans was changed to the one-month Term Secured Overnight Financing Rate (SOFR) plus 5.00 percent.

In June 2023, Stratus made an operating loan of $750 thousand to The Saint June, L.P. to support the partnership’s ability to pay its construction loan interest, which has risen above the amount originally budgeted due to rising interest rates. In October 2023 and January 2024, Stratus made additional operating loans of $250 thousand and $339 thousand, respectively, to The Saint June, L.P., and the Class B Limited Partner made operating loans of $250 thousand and $339 thousand, respectively, to The Saint June, L.P. In April 2024, Stratus made an additional operating loan of $85 thousand to The Saint June, L.P., and the Class B Limited Partner made an additional operating loan of $165 thousand to The Saint June, L.P. The loans bear interest at the one-month Term SOFR plus 5.00 percent, are subordinate to The Saint June construction loan and must be repaid before distributions may be made to the partners.

Potential Returns. The following table presents the distribution percentages for the limited partnerships in which Stratus’ potential returns may increase above its relative equity interest if certain hurdles are achieved.
Distribution Percentages
The Saint George Apartments, L.P.The Saint June, L.P.Holden Hills, L.P.Stratus Kingwood Place, L.P.
StratusThird-party Class B Limited PartnerStratusThird-party Class B Limited PartnerStratusThird-party Class B Limited PartnerStratusThird-party Class B Limited Partners
Until all partners have received a return of their capital contributions and a 9.00 percent cumulative return;10.00 %90.00 %34.13 %65.87 %50.00 %50.00 %60.00 %40.00 %
Until all partners have received an 11.00 percent cumulative return;— — — — — — 68.00 32.00 
Until the Class B limited partner has received a 12.00 percent cumulative return;20.00 80.00 44.13 55.87 55.00 45.00 — — 
Until the Class B limited partner has received an 18.00 percent cumulative return;30.00 70.00 — — — — — — 
Thereafter50.00 50.00 54.13 45.87 65.00 35.00 76.00 24.00 

Accounting for Limited Partnerships. Stratus has performed evaluations and concluded that The Saint George Apartments, L.P., Stratus Block 150, L.P., The Saint June, L.P., Stratus Kingwood Place, L.P. and Holden Hills, L.P. are variable interest entities (VIEs) and that Stratus is the primary beneficiary of each VIE. Accordingly, the partnerships’ results are consolidated in Stratus’ financial statements. Stratus will continue to re-evaluate which entity is the primary beneficiary of these partnerships in accordance with applicable accounting guidance.

The cash and cash equivalents held at these limited partnerships are subject to restrictions on distribution to Stratus pursuant to the individual partnership loan agreements.
Stratus’ consolidated balance sheets include the following assets and liabilities of the partnerships, net of intercompany balances (including the operating loans made by Stratus), which are eliminated (in thousands):
June 30,
2024		December 31,
2023
Assets: a
Cash and cash equivalents$2,895 $5,531 
Restricted cash150 193 
Real estate under development162,469 140,347 
Land available for development1,912 1,911 
Real estate held for investment82,772 87,005 
Lease right-of-use assets286 420 
Other assets3,082 3,122 
Total assets253,566 238,529 
Liabilities: b
Accounts payable8,099 12,751 
Accrued liabilities, including taxes2,205 1,793 
Debt120,155 100,205 
Lease liabilities288 421 
Other liabilities276 391 
Total liabilities131,023 115,561 
Net assets $122,543 $122,968 
a.Substantially all of the assets are available to settle obligations of the partnerships only.
b.The Kingwood Place construction loan has a 25.0 percent repayment guaranty and The Saint George construction loan has a completion guaranty and a 25.0 percent repayment guaranty. The guaranty of The Saint June construction loan converted to a 50.0 percent repayment guaranty upon completion of the project in fourth-quarter 2023. All of the rest of the debt is subject to a full repayment guaranty. Certain of the guaranties terminate if the project meets specified financial and other conditions. The creditors for the remaining liabilities do not have recourse to the general credit of Stratus. See Note 6 of the Stratus 2023 Form 10-K for additional information.