On August 13, 2024, Stratus Properties Inc (STRS, Financial) released its 8-K filing detailing the financial performance for the second quarter and first six months of 2024. Stratus Properties Inc is a diversified real estate company operating in the United States, primarily focused on the Austin, Texas area and other select markets in Texas. The company engages in the acquisition, entitlement, development, management, operation, and sale of commercial, multi-family, and single-family residential real estate properties.
Performance Overview
Stratus Properties Inc (STRS, Financial) reported a net loss attributable to common stockholders of $1.7 million, or $0.21 per diluted share, for the second quarter of 2024. This marks a significant improvement compared to the net loss of $5.3 million, or $0.66 per diluted share, in the same period of 2023. For the first six months of 2024, the company achieved a net income of $2.8 million, or $0.35 per diluted share, compared to a net loss of $11.1 million, or $1.39 per diluted share, in the first half of 2023.
Revenue Growth
Revenues for the second quarter of 2024 were $8.5 million, a substantial increase from $3.5 million in the second quarter of 2023. This growth was primarily driven by the sale of one Amarra Villas home and increased rental revenue from The Saint June, which had no rental revenue in the second quarter of 2023. For the first six months of 2024, revenues totaled $35.0 million, up from $9.3 million in the same period of 2023. The increase was largely due to the sale of approximately 47 acres of undeveloped land at Magnolia Place for $14.5 million and three Amarra Villas homes for a total of $11.3 million.
Financial Achievements
Stratus Properties Inc (STRS, Financial) reported Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.9 million for the first six months of 2024, compared to $(8.0) million in the same period of 2023. This positive EBITDA is a crucial indicator of the company's improved operational performance.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
|---|---|---|---|---|
| Total Revenue | $8.5 million | $3.5 million | $35.0 million | $9.3 million |
| Net (Loss) Income | $(1.7) million | $(5.3) million | $2.8 million | $(11.1) million |
| EBITDA | $(1.3) million | $(3.8) million | $3.9 million | $(8.0) million |
Debt and Liquidity
As of June 30, 2024, Stratus Properties Inc (STRS, Financial) had consolidated debt of $178.3 million and cash and cash equivalents of $13.5 million. The company had no amounts drawn on its revolving credit facility, with $39.6 million available under the facility. The increase in debt was primarily due to draws on project construction loans for The Saint George, Holden Hills, and the Amarra Villas credit facility, partially offset by the payoff of the Magnolia Place construction loan.
Operational Highlights
William H. Armstrong III, Chairman of the Board and Chief Executive Officer of Stratus, stated,
“We are pleased to announce that occupancy at The Saint June, our multi-family project, has reached 98 percent at rents above our initial projections. We continue to advance construction of our residential projects The Saint George, Amarra Villas, and Holden Hills. Our retail projects are performing well. In June, we entered into a contract to sell our retail project at Magnolia Place for $8.9 million, expected to close in mid-August. Our stabilized and under-construction projects and future development plans have no exposure to commercial office space. We believe the outlook for residential and retail projects in Austin and our other Texas markets remains strong.”
Conclusion
Stratus Properties Inc (STRS, Financial) has demonstrated significant revenue growth and improved financial performance in the second quarter and first half of 2024. The company's strategic sales and increased rental revenues have contributed to a positive EBITDA and reduced net losses. With a strong focus on residential and retail projects in Austin and other Texas markets, Stratus Properties Inc (STRS) appears well-positioned for continued growth and development.
Explore the complete 8-K earnings release (here) from Stratus Properties Inc for further details.
