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Business Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
Stratus is engaged primarily in the entitlement, development, management, leasing and sale of multi-family and single-family residential and commercial real estate properties in the Austin, Texas area and other select markets in Texas. Stratus generates revenues primarily from the sale of developed lots or homes and undeveloped land and the lease of developed retail, mixed-use and multi-family properties. Stratus has two operating segments, which are also its two reportable segments: Real Estate Operations and Leasing Operations. The Real Estate Operations segment includes properties under various stages of development: developed for sale, under development and available for development. In this segment, Stratus entitles, develops and sells properties. Properties that Stratus develops and then holds for investment become part of the Leasing Operations segment. Decisions about whether to continue to hold a property for investment or to sell it depend on various factors, including conditions in the real estate markets in which Status operates and the estimated fair value of the property, and are primarily driven by the objective of maximizing overall asset value.

The Real Estate Operations segment is comprised of Stratus’ real estate assets, which consists of its properties in Austin, Texas (including the Barton Creek Community, which includes Holden Hills Phases 1 and 2 (formerly known as Holden Hills and Section N, respectively), Amarra multi-family and commercial land, Amarra Villas, 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 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 (potential development of approximately 11 acres planned for future multi-family use), 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 The Saint June, West Killeen Market, Kingwood Place, the retail portion of Lantana Place, the completed retail portion of Jones Crossing, retail pad sites subject to ground leases at Lantana Place, Kingwood Place and Jones Crossing, and, prior to its sale in third-quarter 2024, the retail portion of Magnolia Place.
Stratus’ chief operating decision maker (CODM) is the chief executive officer. The CODM primarily uses segment profit (loss), which is operating income (loss) excluding general and administrative expenses, determined consistent with the measurement principles of U.S. GAAP, to measure the performance of Stratus’ reportable segments. The segment measure of profit (loss) provides a comprehensive view of the segments’ financial performance. The CODM makes decisions about the allocation of operating and capital resources to each segment based on assessment of the performance of the two segments and considering the capital needs for new and existing projects and the objectives of Stratus’ overall business strategy. 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):
Year Ended December 31,
20242023
Real Estate Operations:
Developed property sales$20,348 $2,493 
Undeveloped property sales14,500 — 
Commissions and other39 58 
34,887 2,551 
Leasing Operations:
Rental revenue19,296 14,719 
19,296 14,719 
Total revenues from contracts with customers$54,183 $17,270 
Financial Information by Reportable Segment. Summarized financial information by reportable segment for the year ended December 31, 2024, follows (in thousands):
Real Estate
Operations a
Leasing OperationsTotal
Revenue from unaffiliated customers$34,887 $19,296 $54,183 
Segment expenses:
Cost of real estate sold(23,894)(23,894)
Property taxes and insurance(1,145)(3,066)(4,211)
Lease expense(1,140)(1,140)
Professional fees(2,134)(2,134)
Maintenance and repairs(2,024)(2,024)
Allocated overhead costs(977)(977)
Property management fees and payroll (918)(918)
Utilities(478)(478)
Other segment items b
(689)(984)(1,673)
Depreciation and amortization(181)(5,382)(5,563)
Gain on sale of assets c
— 1,626 1,626 
Segment profit4,727 8,070 12,797 
General and administrative expenses(14,952)
Operating income (loss)
(2,155)
Loss on extinguishment of debt(69)
Other income758 
Net loss before income taxes and equity in unconsolidated affiliate’s income$(1,466)
Capital expenditures and purchases and development of real estate properties
$29,525 $29,136 $58,661 
a.Includes sales commissions and other revenues together with related expenses.
b.For Real Estate Operations, primarily includes advertising, property owner association fees, maintenance and utilities. For Leasing Operations, primarily includes amortization of leasing costs, property owner association fees, professional fees and office and computer equipment.
c.Represents a pre-tax gain on the sale of Magnolia Place – Retail in third-quarter 2024 of $1.6 million.
Summarized financial information by reportable segment for the year ended December 31, 2023, follows (in thousands):
Real Estate
Operations a
Leasing OperationsTotal
Revenue from unaffiliated customers$2,551 $14,719 $17,270 
Segment expenses
Cost of real estate sold(2,159)(2,159)
Property taxes and insurance(1,267)(1,769)(3,036)
Lease expense(1,140)(1,140)
Professional fees(1,967)(1,967)
Maintenance and repairs(1,507)(1,507)
Allocated overhead costs(1,731)(1,731)
Property management fees and payroll(650)(650)
Utilities(463)(463)
Other segment items b
(1,352)(787)(2,139)
Depreciation and amortization(154)(4,103)(4,257)
Segment (loss) profit(7,219)5,440 (1,779)
General and administrative expenses(15,167)
Operating (loss) income
(16,946)
Other income1,912 
Net loss before income taxes and equity in unconsolidated affiliate’s income(15,034)
Capital expenditures and purchases and development of real estate properties
$44,451 $45,962 $90,413 
a.Includes sales commissions and other revenues together with related expenses.
b.For Real Estate Operations, primarily includes advertising, property owner association fees, maintenance and utilities. For Leasing Operations, primarily includes amortization of leasing costs, property owner association fees, professional fees and office and computer equipment.

Total assets by segment were as follows (in thousands):
December 31,
20242023
Real Estate Operations$359,296 $324,659 
Leasing Operations154,370 162,322 
Corporate and other a
18,940 30,785 
Total assets$532,606 $517,766 
a.Corporate and other includes cash and cash equivalents and restricted cash of $18.9 million and $29.9 million at December 31, 2024 and 2023, respectively. The remaining cash and cash equivalents and restricted cash is reflected in the operating segments’ assets.