STRATUS PROPERTIES INC 10-Q Report: Strong Revenue Growth and Improved Financial Performance
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Stratus Properties Inc., a diversified real estate company, has released its Form 10-Q report for the second quarter of 2024. The report highlights significant improvements in both financial and operational performance, driven by increased sales in real estate operations and new leasing revenue.
Financial Highlights
- Total Revenues: $8.5 million for the second quarter of 2024 and $35.0 million for the first six months of 2024, up from $3.5 million and $9.3 million respectively in the same periods of 2023.
- Operating (Loss) Income: $(2.9) million for the second quarter of 2024, an improvement from $(5.4) million in the second quarter of 2023.
- Net (Loss) Income Attributable to Common Stockholders: $(1.7) million, or $(0.21) per diluted share in the second quarter of 2024, compared to $(5.3) million, or $(0.66) per diluted share in the second quarter of 2023.
- Net Income Attributable to Common Stockholders: $2.8 million, or $0.35 per diluted share for the first six months of 2024, compared to a net loss of $(11.1) million, or $(1.39) per diluted share for the first six months of 2023.
Business Highlights
- Revenue Segments: The Real Estate Operations segment saw a significant increase in revenue due to the sale of undeveloped land at Magnolia Place and multiple Amarra Villas homes. The Leasing Operations segment also experienced growth, driven by new leases at The Saint June and increased occupancy at Kingwood Place, Lantana Place – Retail, and Magnolia Place – Retail.
- Sales Units: In the first half of 2024, three Amarra Villas homes were sold, compared to one in the same period of 2023. Additionally, approximately 47 acres of undeveloped land at Magnolia Place were sold.
- Recent Residential Activities: The Amarra Villas project continues to progress with several homes sold and others under construction. The Saint June multi-family project reached approximately 98% occupancy as of August 2024. Construction on Holden Hills' infrastructure is advancing well, with plans to start building homes or selling home sites by late 2025.
- Recent Commercial Activities: The company has been testing the market for potential sales of its stabilized retail projects, including West Killeen Market and Magnolia Place – Retail. A contract to sell Magnolia Place – Retail for $8.9 million is expected to close in mid-August 2024.
- Future Outlook: The company anticipates improving real estate market conditions over the next 12 months, with potential sales of retail properties and returning capital to stockholders. Development plans for projects like The Annie B, Section N, and The Saint Julia will require significant additional capital, which the company intends to pursue through project-level debt and third-party equity capital arrangements.