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Business Segments (Tables)

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Revenue from External Customers by Products and Services [Table Text Block]

Revenues from Contracts with Customers. Stratus’ revenues from contracts with customers follow (in thousands):

			Three Months Ended												Nine Months Ended
			September 30,												September 30,
			2025						2024						2025						2024
Real Estate Operations:
Developed property sales			$	—					$	3,950					$	6,760					$	15,198
Undeveloped property sales			—						—						—						14,500
Commissions and other			45						21						108						25
			45						3,971						6,868						29,723
Leasing Operations:
Rental revenue			4,924						4,920						14,749						14,165
			4,924						4,920						14,749						14,165
Total revenues from contracts with customers			$	4,969					$	8,891					$	21,617					$	43,888

Schedule of Segment Reporting Information by Segment [Table Text Block]

Financial Information by Business Segment. Summarized financial information by reportable segment for the three months ended September 30, 2025, follows (in thousands):

			Real Estate Operations a						Leasing Operations						Total
Revenue from unaffiliated customers			$	45					$	4,924					$	4,969
Segment expenses:
Property taxes and insurance			(354)						(1,197)						(1,551)
Lease expense			(285)												(285)
Professional fees b			(3,191)												(3,191)
Maintenance and repairs									(530)						(530)
Allocated overhead costs			(337)												(337)
Property management fees and payroll									(330)						(330)
Utilities									(228)						(228)
Other segment items c			(374)						(298)						(672)
Depreciation and amortization			(48)						(2,024)						(2,072)
Segment (loss) profit			(4,544)						317						(4,227)
General and administrative expenses															(3,866)
Operating loss															(8,093)
Interest expense, net															(749)
Loss on interest rate cap agreements															(1)
Loss on extinguishment of debt															(33)
Other income (loss), net															548
Net loss before income taxes															$	(8,328)
Capital expenditures and purchases and development of real estate properties			$	6,146					$	914					$	7,060

a.Includes sales commissions and other revenues together with related expenses.

b.In third-quarter 2025, Stratus terminated a lease for a potential development project and recorded a charge of approximately $2.8 million representing previously capitalized architectural, engineering and consulting fees incurred in connection with planning and evaluating the potential project.

c.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.

Summarized financial information by reportable segment for the three months ended September 30, 2024, follows (in thousands):

			Real Estate Operations a						Leasing Operations						Total
Revenue from unaffiliated customers			$	3,971					$	4,920					$	8,891
Segment expenses
Cost of real estate sold			(3,266)												(3,266)
Property taxes and insurance			(303)						(770)						(1,073)
Lease expense			(285)												(285)
Professional fees b			(1,074)												(1,074)
Maintenance and repairs									(522)						(522)
Allocated overhead costs			(239)												(239)
Property management fees and payroll									(259)						(259)
Utilities									(162)						(162)
Other segment items c			(177)						(251)						(428)
Depreciation and amortization			(48)						(1,317)						(1,365)
Gain on sale of assets d			—						1,626						1,626
Segment (loss) profit			(1,421)						3,265						1,844
General and administrative expenses															(3,363)
Operating loss															(1,519)
Other income (loss), net															163
Net loss before income taxes															$	(1,356)
Capital expenditures and purchases and development of real estate properties			$	6,608					$	6,820					$	13,428

a.Includes sales commissions and other revenues together with related expenses.

b.In third-quarter 2024, Stratus recorded a charge of $721 thousand to write off previously capitalized costs related to a change in development plans for one property.

c.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.

d.Represents a pre-tax gain on the sale of Magnolia Place – Retail in third-quarter 2024 for $1.6 million.

Summarized financial information by reportable segment for the nine months ended September 30, 2025, follows (in thousands):

			Real Estate Operations a						Leasing Operations						Total
Revenue from unaffiliated customers			$	6,868					$	14,749					$	21,617
Segment expenses:
Cost of real estate sold			(6,244)												(6,244)
Property taxes and insurance			(1,096)						(2,927)						(4,023)
Lease expense			(855)												(855)
Professional fees b			(4,360)												(4,360)
Maintenance and repairs									(1,536)						(1,536)
Allocated overhead costs			(1,883)												(1,883)
Property management fees and payroll									(904)						(904)
Utilities									(452)						(452)
Other segment items c			(1,868)						(823)						(2,691)
Depreciation and amortization			(144)						(4,698)						(4,842)
Gain on sale of assets d			—						5,200						5,200
Segment (loss) profit			(9,582)						8,609						(973)
General and administrative expenses															(11,474)
Operating loss															(12,447)
Interest expense, net															(1,026)
Loss on interest rate cap agreements															(23)
Loss on extinguishment of debt															(216)
Other (loss) income, net															(181)
Net loss before income taxes															$	(13,893)
Capital expenditures and purchases and development of real estate properties			$	20,543					$	8,075					$	28,618
MUD reimbursements applied to real estate under development e			$	—					$	409					$	409

a.Includes sales commissions and other revenues together with related expenses.

b.In third-quarter 2025, Stratus terminated a lease for a potential development project and recorded a charge of approximately $2.8 million representing previously capitalized architectural, engineering and consulting fees incurred in connection with planning and evaluating the potential project.

c.For Real Estate Operations, primarily includes advertising, property owner association fees, maintenance and utilities. In second-quarter 2025, Stratus recorded a $1.0 million charge to write off receivables, included in other assets on the consolidated balance sheet, from owners of properties previously sold by Stratus for a share of historical costs incurred to develop the land. For Leasing Operations, primarily includes amortization of leasing costs, property owner association fees, professional fees and office and computer equipment.

d.Reflects an approximately $5.0 million pre-tax gain on the sale of the West Killeen Market retail project in second-quarter 2025 and a portion of a previously deferred gain of $0.2 million related to The Oaks at Lakeway in first-quarter 2025. Refer to Note 4 for further discussion.

e.In second-quarter 2025, Stratus received $409 thousand of proceeds related to MUD reimbursements of infrastructure costs incurred for development of The Saint June. This was recorded as a reduction of real estate under development on the consolidated balance sheet.

Summarized financial information by reportable segment for the nine months ended September 30, 2024, follows (in thousands):

			Real Estate Operations a						Leasing Operations						Total
Revenue from unaffiliated customers			$	29,723					$	14,165					$	43,888
Segment expenses
Cost of real estate sold			(20,388)												(20,388)
Property taxes and insurance			(925)						(2,268)						(3,193)
Lease expense			(855)												(855)
Professional fees b			(1,702)												(1,702)
Maintenance and repairs									(1,376)						(1,376)
Allocated overhead costs			(741)												(741)
Property management fees and payroll									(672)						(672)
Utilities									(343)						(343)
Other segment items c			(435)						(725)						(1,160)
Depreciation and amortization			(136)						(4,032)						(4,168)
Gain on sale of assets d			—						1,626						1,626
Segment profit			4,541						6,375						10,916
General and administrative expenses															(11,670)
Operating loss															(754)
Loss on extinguishment of debt															(59)
Other income (loss), net															522
Net loss before income taxes															$	(291)
Capital expenditures and purchases and development of real estate properties			$	22,925					$	22,962					$	45,887

a.Includes sales commissions and other revenues together with related expenses.

b.In third-quarter 2024, Stratus recorded a charge of $721 thousand to write off previously capitalized costs related to a change in development plans for one property.

c.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.

d.Represents a pre-tax gain on the sale of Magnolia Place – Retail in third-quarter 2024 for $1.6 million.

Total assets by segment were as follows (in thousands):

			September 30,
			2025						2024
Real Estate Operations			$	275,227					$	349,701
Leasing Operations			245,441						154,257
Corporate and other a			51,894						19,222
Total assets			$	572,562					$	523,180

a.Corporate and other includes cash and cash equivalents and restricted cash of $54.0 million and $18.7 million at September 30, 2025 and 2024, respectively. The remaining cash and cash equivalents and restricted cash is reflected in the operating segments’ assets. Corporate and other also includes elimination of intersegment balances.

X

- Definition

Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information.

+ References

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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 25
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-25

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

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-Name Accounting Standards Codification
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-Section 50
-Paragraph 30
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

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