Limited Partnerships (Tables)

9 Months Ended

Sep. 30, 2025

Stratus has entered into strategic partnerships for certain development projects. Stratus, through its subsidiaries, is a partner in the following limited partnerships:


Partnership a	Indirect Equity Interest
Holden Hills, L.P.	50.00	%
Holden Hills Phase 2, L.P.	50.00	%
Stratus Block 150, L.P.	31.00	%
Stratus Kingwood Place, L.P.	60.00	%
The Saint George Apartments, L.P.	10.00	%
The Saint June, L.P.	34.13	%

a.Holden Hills Phase 2, L.P. was formed in second-quarter 2025 – see discussion below. For additional information regarding Stratus' other partnerships, refer to Note 2 in the Stratus 2024 Form 10-K.

Schedule of Potential Returns of the VIE Partnerships

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
	Holden Hills, L.P.				Stratus Kingwood Place, L.P.				The Saint George Apartments, L.P.				The Saint June, L.P.
	Stratus		Third-party Class B Limited Partner		Stratus		Third-party Class B Limited Partners		Stratus		Third-party Class B Limited Partner		Stratus		Third-party Class B Limited Partner
Until all partners have received a return of their capital contributions and a 9.00 percent cumulative return;	50.00	%	50.00	%	60.00	%	40.00	%	10.00	%	90.00	%	34.13	%	65.87	%
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;	55.00		45.00		—		—		20.00		80.00		44.13		55.87
Until the Class B limited partner has received an 18.00 percent cumulative return;	—		—		—		—		30.00		70.00		—		—
Thereafter	65.00		35.00		76.00		24.00		50.00		50.00		54.13		45.87

Schedule of Assets and Liabilities of the VIE Partnerships

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):


	September 30, 2025		December 31, 2024
Assets: a
Cash and cash equivalents	$	8,468	$	11,096
Restricted cash	307		572
Real estate under development	142,566		143,743
Land available for development	36,820		36,509
Real estate held for investment	181,463		81,477
Lease right-of-use assets	—		148
Other assets	2,941		3,211
Total assets	372,565		276,756
Liabilities: b
Accounts payable	6,313		7,399
Accrued liabilities, including taxes	3,916		3,327
Debt	150,823		140,090
Lease liabilities	—		148
Other liabilities	452		469
Total liabilities	161,504		151,433
Net assets	$	211,061	$	125,323

a.Substantially all of the assets are available to settle obligations of the partnerships only.

b.All of the debt is guaranteed by Stratus until certain conditions are met as provided in the applicable partnership loan agreements except for The Saint June construction loan, for which Stratus has a 50 percent repayment guaranty obligation, The Saint George construction loan, for which Stratus has a 25 percent repayment guaranty obligation, and the Kingwood Place loan, for which Stratus has customary non-recourse carve-out obligations and an environmental indemnification. The creditors for the remaining liabilities do not have recourse to the general credit of Stratus. See Note 6 of the Stratus 2024 Form 10-K for additional information.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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