UNITED
STATES
|
|||
SECURITIES
AND EXCHANGE COMMISSION
|
|||
Washington,
D.C. 20549
|
|||
FORM
10-Q
|
|||
(Mark
One)
|
|||
[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
||
SECURITIES
EXCHANGE ACT OF 1934
|
|||
For
the quarterly period ended September 30, 2009
|
|||
or
|
|||
[ ]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
||
SECURITIES
EXCHANGE ACT OF 1934
|
|||
For
the transition period from
|
to
|
||
Commission
File Number: 0-19989
|
|||
Stratus
Properties Inc.
|
|||
(Exact
name of registrant as specified in its
charter)
|
Delaware
|
72-1211572
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
98
San Jacinto Blvd., Suite 220
|
|
Austin,
Texas
|
78701
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(512)
478-5788
|
|
(Registrant's
telephone number, including area code)
|
|
STRATUS PROPERTIES INC.
|
|
TABLE
OF CONTENTS
|
|
Page
|
|
2
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
16
|
|
26
|
|
26
|
|
26
|
|
26
|
|
27
|
|
E-1
|
|
September
30,
|
December
31,
|
|||||
2009
|
2008
|
|||||
ASSETS
|
||||||
Cash
and cash equivalents
|
$
|
24,926
|
$
|
17,097
|
||
Investment
in U.S. treasury securities
|
-
|
15,388
|
||||
Real
estate, commercial leasing assets and facilities, net:
|
||||||
Property
held for sale – developed or under development
|
136,473
|
115,966
|
||||
Property
held for sale – undeveloped
|
31,928
|
27,514
|
||||
Property
held for use, net
|
84,709
|
56,919
|
||||
Deferred
tax asset
|
8,633
|
7,330
|
||||
Investment
in unconsolidated affiliate
|
3,468
|
2,283
|
||||
Other
assets
|
13,552
|
10,049
|
||||
Total
assets
|
$
|
303,689
|
$
|
252,546
|
||
LIABILITIES
AND EQUITY
|
||||||
Accounts
payable and accrued liabilities
|
$
|
12,278
|
$
|
6,585
|
||
Deposits
|
7,396
|
1,301
|
||||
Accrued
interest and property taxes
|
2,975
|
3,203
|
||||
Debt
|
75,951
|
63,352
|
||||
Other
liabilities
|
2,079
|
3,583
|
||||
Total
liabilities
|
100,679
|
78,024
|
||||
Commitments
and contingencies
|
||||||
Equity:
|
||||||
Stratus
stockholders’ equity:
|
||||||
Preferred
stock
|
-
|
-
|
||||
Common
stock
|
83
|
83
|
||||
Capital
in excess of par value of common stock
|
197,285
|
196,692
|
||||
Accumulated
deficit
|
(34,829
|
)
|
(30,095
|
)
|
||
Accumulated
other comprehensive loss
|
-
|
(3
|
)
|
|||
Common
stock held in treasury
|
(17,941
|
)
|
(17,441
|
)
|
||
Total
Stratus stockholders’ equity
|
144,598
|
149,236
|
||||
Noncontrolling
interest in subsidiary
|
58,412
|
25,286
|
||||
Total
equity
|
203,010
|
174,522
|
||||
Total
liabilities and equity
|
$
|
303,689
|
$
|
252,546
|
||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
September
30,
|
September
30,
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
Revenues:
|
||||||||||||
Real
estate
|
$
|
2,116
|
$
|
5,691
|
$
|
4,201
|
$
|
11,994
|
||||
Rental
income
|
1,163
|
1,158
|
3,296
|
3,278
|
||||||||
Commissions,
management fees and other
|
65
|
60
|
869
|
792
|
||||||||
Total
revenues
|
3,344
|
6,909
|
8,366
|
16,064
|
||||||||
Cost
of sales:
|
||||||||||||
Real
estate, net
|
2,710
|
4,954
|
6,806
|
11,163
|
||||||||
Rental
|
788
|
944
|
2,405
|
2,683
|
||||||||
Depreciation
|
403
|
435
|
1,227
|
1,211
|
||||||||
Total
cost of sales
|
3,901
|
6,333
|
10,438
|
15,057
|
||||||||
General
and administrative expenses
|
1,818
|
1,723
|
5,832
|
5,277
|
||||||||
Total
costs and expenses
|
5,719
|
8,056
|
16,270
|
20,334
|
||||||||
Operating
loss
|
(2,375
|
)
|
(1,147
|
)
|
(7,904
|
)
|
(4,270
|
)
|
||||
Interest
income and other
|
66
|
330
|
894
|
1,432
|
||||||||
Loss
on extinguishment of debt
|
-
|
-
|
(182
|
)
|
-
|
|||||||
Gain
(loss) on interest rate cap agreement
|
(37
|
)
|
(121
|
)
|
33
|
(121
|
)
|
|||||
Loss
from continuing operations before income taxes and
|
||||||||||||
equity
in unconsolidated affiliate’s (loss) income
|
(2,346
|
)
|
(938
|
)
|
(7,159
|
)
|
(2,959
|
)
|
||||
Equity
in unconsolidated affiliate’s (loss) income
|
(95
|
)
|
99
|
(277
|
)
|
365
|
||||||
Benefit
from income taxes
|
844
|
268
|
2,448
|
660
|
||||||||
Loss
from continuing operations
|
(1,597
|
)
|
(571
|
)
|
(4,988
|
)
|
(1,934
|
)
|
||||
Loss
from discontinued operations
|
-
|
-
|
-
|
(105
|
)
|
|||||||
Net
loss
|
(1,597
|
)
|
(571
|
)
|
(4,988
|
)
|
(2,039
|
)
|
||||
Net
loss attributable to noncontrolling interest in subsidiary
|
44
|
124
|
254
|
188
|
||||||||
Net
loss attributable to Stratus common stock
|
$
|
(1,553
|
)
|
$
|
(447
|
)
|
$
|
(4,734
|
)
|
$
|
(1,851
|
)
|
Net
loss per share attributable to Stratus common stock:
|
||||||||||||
Continuing
operations
|
$
|
(0.21
|
)
|
$
|
(0.06
|
)
|
$
|
(0.64
|
)
|
$
|
(0.23
|
)
|
Discontinued
operations
|
-
|
-
|
-
|
(0.01
|
)
|
|||||||
Basic
and diluted net loss per share attributable to Stratus
|
||||||||||||
common
stock
|
$
|
(0.21
|
)
|
$
|
(0.06
|
)
|
$
|
(0.64
|
)
|
$
|
(0.24
|
)
|
Weighted
average shares of common stock outstanding:
|
||||||||||||
Basic
and diluted
|
7,435
|
7,641
|
7,439
|
7,613
|
||||||||
Nine
Months Ended September 30,
|
||||||
2009
|
2008
|
|||||
Cash
flow from operating activities:
|
||||||
Net
loss
|
$
|
(4,988
|
)
|
$
|
(2,039
|
)
|
Adjustments
to reconcile net loss to net cash
|
||||||
used
in operating activities:
|
||||||
Loss
from discontinued operations
|
-
|
105
|
||||
Depreciation
|
1,227
|
1,211
|
||||
(Gain)
loss on interest rate cap agreement
|
(33
|
)
|
121
|
|||
Loss
on extinguishment of debt
|
182
|
-
|
||||
Cost
of real estate sold
|
2,912
|
8,126
|
||||
Deferred
income taxes
|
(1,303
|
)
|
(648
|
)
|
||
Stock-based
compensation
|
552
|
761
|
||||
Equity
in unconsolidated affiliate’s loss (income)
|
277
|
(365
|
)
|
|||
Distribution
of unconsolidated affiliate’s income
|
-
|
1,266
|
||||
Deposits
|
(802
|
)
|
(1,471
|
)
|
||
Purchases
and development of real estate properties
|
(32,653
|
)
|
(21,959
|
)
|
||
Municipal
utility district reimbursements
|
4,551
|
6,229
|
||||
Decrease
in other assets
|
615
|
495
|
||||
Increase
(decrease) in accounts payable, accrued liabilities and
other
|
3,249
|
(2,554
|
)
|
|||
Net
cash used in operating activities
|
(26,214
|
)
|
(10,722
|
)
|
||
Cash
flow from investing activities:
|
||||||
Development
of commercial leasing properties
|
(27,262
|
)
|
(10,337
|
)
|
||
(Investment
in) return of investment in unconsolidated affiliate
|
(1,462
|
)
|
2,374
|
|||
Proceeds
from matured U.S. treasury securities
|
15,391
|
-
|
||||
Investment
in interest rate cap agreement
|
-
|
(673
|
)
|
|||
Other
|
53
|
25
|
||||
Net
cash used in investing activities
|
(13,280
|
)
|
(8,611
|
)
|
||
Cash
flow from financing activities:
|
||||||
Borrowings
from revolving credit facility
|
15,000
|
-
|
||||
Payments
on revolving credit facility
|
(4,769
|
)
|
-
|
|||
Borrowings
from project and term loans
|
4,700
|
2,054
|
||||
Payments
on project and term loans
|
(488
|
)
|
(175
|
)
|
||
Noncontrolling
interest contributions
|
33,380
|
16,678
|
||||
Net
(payments for) proceeds from stock-based awards
|
(96
|
)
|
94
|
|||
Purchases
of Stratus common shares
|
(404
|
)
|
(517
|
)
|
||
Financing
costs
|
-
|
(2,845
|
)
|
|||
Net
cash provided by financing activities
|
47,323
|
15,289
|
||||
Net
increase (decrease) in cash and cash equivalents
|
7,829
|
(4,044
|
)
|
|||
Cash
and cash equivalents at beginning of year
|
17,097
|
40,873
|
||||
Cash
and cash equivalents at end of period
|
$
|
24,926
|
$
|
36,829
|
||
Stratus
Stockholders’ Equity
|
||||||||||||||||||||||||
Accumulated
|
Common
|
Total
|
||||||||||||||||||||||
Capital
in
|
Accum-
|
Other
|
Stock
|
Stratus
|
Noncontrolling
|
|||||||||||||||||||
Common
|
Excess
of
|
ulated
|
Comprehensive
|
Held
In
|
Stockholders’
|
Interest
in
|
Total
|
|||||||||||||||||
Stock
|
Par
Value
|
Deficit
|
Loss
|
Treasury
|
Equity
|
Subsidiary
|
Equity
|
|||||||||||||||||
Balance
at December 31, 2008
|
$
|
83
|
$
|
196,692
|
$
|
(30,095
|
)
|
$
|
(3
|
)
|
$
|
(17,441
|
)
|
$
|
149,236
|
$
|
25,286
|
$
|
174,522
|
|||||
Stock-based
compensation
|
-
|
593
|
-
|
-
|
-
|
593
|
-
|
593
|
||||||||||||||||
Tender
of shares for stock-based awards
|
-
|
-
|
-
|
-
|
(96
|
)
|
(96
|
)
|
-
|
(96
|
)
|
|||||||||||||
Purchases
of Stratus common shares
|
-
|
-
|
-
|
-
|
(404
|
)
|
(404
|
)
|
-
|
(404
|
)
|
|||||||||||||
Noncontrolling
interest contributions
|
-
|
-
|
-
|
-
|
-
|
-
|
33,380
|
33,380
|
||||||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||
Net
loss
|
-
|
-
|
(4,734
|
)
|
-
|
-
|
(4,734
|
)
|
(254
|
)
|
(4,988
|
)
|
||||||||||||
Other
comprehensive income,
|
||||||||||||||||||||||||
net
of taxes:
|
||||||||||||||||||||||||
Unrealized
gain on U.S. treasury securities
|
-
|
-
|
-
|
3
|
-
|
3
|
-
|
3
|
||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
3
|
-
|
3
|
-
|
3
|
||||||||||||||||
Total
comprehensive income (loss)
|
-
|
-
|
-
|
3
|
-
|
(4,731
|
)
|
(254
|
)
|
(4,985
|
)
|
|||||||||||||
Balance
at September 30, 2009
|
$
|
83
|
$
|
197,285
|
$
|
(34,829
|
)
|
$
|
-
|
$
|
(17,941
|
)
|
$
|
144,598
|
$
|
58,412
|
$
|
203,010
|
||||||
Balance
at December 31, 2007
|
$
|
81
|
$
|
195,898
|
$
|
(26,258
|
)
|
$
|
-
|
$
|
(14,279
|
)
|
$
|
155,442
|
$
|
-
|
$
|
155,442
|
||||||
Exercised
and issued stock-based awards and other
|
1
|
(525
|
)
|
-
|
-
|
-
|
(524
|
)
|
-
|
(524
|
)
|
|||||||||||||
Stock-based
compensation
|
-
|
895
|
-
|
-
|
-
|
895
|
-
|
895
|
||||||||||||||||
Tender
of shares for stock-based awards
|
-
|
-
|
-
|
-
|
(596
|
)
|
(596
|
)
|
-
|
(596
|
)
|
|||||||||||||
Purchases
of Stratus common shares
|
-
|
-
|
-
|
-
|
(517
|
)
|
(517
|
)
|
-
|
(517
|
)
|
|||||||||||||
Noncontrolling
interest contributions
|
-
|
-
|
-
|
-
|
-
|
-
|
16,678
|
16,678
|
||||||||||||||||
Net
loss
|
-
|
-
|
(1,851
|
)
|
-
|
-
|
(1,851
|
)
|
(188
|
)
|
(2,039
|
)
|
||||||||||||
Balance
at September 30, 2008
|
$
|
82
|
$
|
196,268
|
$
|
(28,109
|
)
|
$
|
-
|
$
|
(15,392
|
)
|
$
|
152,849
|
$
|
16,490
|
$
|
169,339
|
||||||
1.
|
GENERAL
|
2.
|
REVISIONS
OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL
STATEMENTS
|
Three
Months Ended September 30, 2008
|
|||||||||
As
|
Property
Tax
|
As
|
|||||||
Reported
|
Adjustments
|
Revised
|
|||||||
Total
cost of sales
|
$
|
(6,184
|
)
|
$
|
(149
|
)
|
$
|
(6,333
|
)
|
Operating
loss
|
(998
|
)
|
(149
|
)
|
(1,147
|
)
|
|||
Loss
from continuing operations
|
|||||||||
before
income taxes and equity
|
|||||||||
in
unconsolidated affiliate’s income
|
(789
|
)
|
(149
|
)
|
(938
|
)
|
|||
Benefit
from income taxes
|
216
|
52
|
268
|
||||||
Net
loss
|
(474
|
)
|
(97
|
)
|
(571
|
)
|
|||
Net
loss attributable to Stratus
|
|||||||||
common
stock
|
(350
|
)
|
(97
|
)
|
(447
|
)
|
|||
Basic
and diluted net loss per
|
|||||||||
share
of common stock
|
$
|
(0.05
|
)
|
$
|
(0.01
|
)
|
$
|
(0.06
|
)
|
Nine
Months Ended September 30, 2008
|
|||||||||
As
|
Property
Tax
|
As
|
|||||||
Reported
|
Adjustments
|
Revised
|
|||||||
Total
cost of sales
|
$
|
(14,519
|
)
|
$
|
(538
|
)
|
$
|
(15,057
|
)
|
Operating
loss
|
(3,732
|
)
|
(538
|
)
|
(4,270
|
)
|
|||
Loss
from continuing operations
|
|||||||||
before
income taxes and equity
|
|||||||||
in
unconsolidated affiliate’s income
|
(2,421
|
)
|
(538
|
)
|
(2,959
|
)
|
|||
Benefit
from income taxes
|
469
|
191
|
660
|
||||||
Loss
from continuing operations
|
(1,587
|
)
|
(347
|
)
|
(1,934
|
)
|
|||
Net
loss
|
(1,692
|
)
|
(347
|
)
|
(2,039
|
)
|
|||
Net
loss attributable to Stratus
|
|||||||||
common
stock
|
(1,504
|
)
|
(347
|
)
|
(1,851
|
)
|
|||
Basic
and diluted net loss per
|
|||||||||
share
of common stock:
|
|||||||||
Continuing
operations
|
$
|
(0.19
|
)
|
$
|
(0.04
|
)
|
$
|
(0.23
|
)
|
Discontinued
operations
|
(0.01
|
)
|
-
|
(0.01
|
)
|
||||
Basic
and diluted net loss per
|
|||||||||
share
of common stock
|
$
|
(0.20
|
)
|
$
|
(0.04
|
)
|
$
|
(0.24
|
)
|
3.
|
EARNINGS
PER SHARE
|
4.
|
JOINT
VENTURE WITH CANYON-JOHNSON URBAN FUND II,
L.P.
|
5.
|
FAIR
VALUE MEASUREMENTS
|
Quoted
Prices in
|
Significant
|
|||||||||||
Total
Fair Value
|
Active
Markets for
|
Significant
Other
|
Unobservable
|
|||||||||
Measurement
|
Identical
Assets
|
Observable
Inputs
|
Inputs
|
|||||||||
September
30, 2009
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||
Cash
equivalents
|
$
|
17,353
|
$
|
17,353
|
$
|
-
|
$
|
-
|
||||
Interest
rate cap
|
||||||||||||
agreement
|
96
|
-
|
96
|
-
|
||||||||
$
|
17,449
|
$
|
17,353
|
$
|
96
|
$
|
-
|
|||||
September
30, 2009
|
December
31, 2008
|
|||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||
Value
|
Value
|
Value
|
Value
|
|||||||||
Cash
and cash equivalentsa
|
$
|
24,926
|
$
|
24,926
|
$
|
17,097
|
$
|
17,097
|
||||
Restricted
casha
|
-
|
-
|
6
|
6
|
||||||||
Investment
in U.S. treasury
|
||||||||||||
securitiesa
|
-
|
-
|
15,388
|
15,388
|
||||||||
Accounts
and notes receivablea
|
616
|
616
|
1,245
|
1,245
|
||||||||
Interest
rate cap agreementb
|
96
|
96
|
63
|
63
|
||||||||
Accounts
payable, accrued
|
||||||||||||
liabilities,
accrued interest, and
|
||||||||||||
property
taxesa
|
15,253
|
15,253
|
9,788
|
9,788
|
||||||||
Debtc
|
75,951
|
72,146
|
63,352
|
55,809
|
||||||||
a.
|
Fair
value approximates the carrying amounts because of the short-term nature
of these instruments.
|
b.
|
Recorded
at fair value. Observable inputs, such as LIBOR, are used to determine
fair value (see above).
|
c.
|
Generally
recorded at cost. Fair value of substantially all of Stratus’ debt is
estimated based on discounted future expected cash flows at estimated
current interest rates. The fair value of debt does not represent the
amounts that will ultimately be paid upon the maturities of the
loans.
|
6.
|
INVESTMENT
IN UNCONSOLIDATED AFFILIATE
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
Revenues
|
$
|
-
|
$
|
1,054
|
$
|
-
|
$
|
3,895
|
||||
Gross
profit (loss)
|
9
|
198
|
(13
|
)
|
694
|
|||||||
Net
(loss) income
|
(190
|
)
|
198
|
(554
|
)
|
730
|
||||||
7.
|
INTEREST
CAPITALIZATION
|
8.
|
INCOME
TAXES
|
Balance
at January 1, 2009
|
$
|
2,664
|
||
Reductions
for prior year tax positions
|
(2,664
|
)
|
||
Balance
at September 30, 2009
|
$
|
-
|
9.
|
DISCONTINUED
OPERATIONS
|
10.
|
BUSINESS
SEGMENTS
|
Real
Estate Operationsa
|
Commercial
Leasing
|
Other
|
Total
|
|||||||||
(In
Thousands)
|
||||||||||||
Three Months Ended September 30,
2009
|
||||||||||||
Revenues
|
$
|
2,181
|
$
|
1,163
|
$
|
-
|
$
|
3,344
|
||||
Cost
of sales, excluding depreciation
|
(2,710
|
)
|
(788
|
)
|
-
|
(3,498
|
)
|
|||||
Depreciation
|
(50
|
)
|
(353
|
)
|
-
|
(403
|
)
|
|||||
General
and administrative expenses
|
(1,134
|
)
|
(684
|
)
|
-
|
(1,818
|
)
|
|||||
Operating
loss
|
$
|
(1,713
|
)
|
$
|
(662
|
)
|
$
|
-
|
$
|
(2,375
|
)
|
|
Capital
expenditures
|
$
|
12,079
|
$
|
12,024
|
$
|
-
|
$
|
24,103
|
||||
Total
assets at September 30, 2009
|
$
|
191,703
|
$
|
102,961
|
$
|
9,025
|
b
|
$
|
303,689
|
|||
Real
Estate Operationsa
|
Commercial
Leasing
|
Other
|
Total
|
|||||||||
(In
Thousands)
|
||||||||||||
Three Months Ended September 30,
2008
|
||||||||||||
Revenues
|
$
|
5,751
|
$
|
1,158
|
$
|
-
|
$
|
6,909
|
||||
Cost
of sales, excluding depreciation
|
(4,954
|
)
|
(944
|
)
|
-
|
(5,898
|
)
|
|||||
Depreciation
|
(53
|
)
|
(382
|
)
|
-
|
(435
|
)
|
|||||
General
and administrative expenses
|
(1,482
|
)
|
(241
|
)
|
-
|
(1,723
|
)
|
|||||
Operating
loss
|
$
|
(738
|
)
|
$
|
(409
|
)
|
$
|
-
|
$
|
(1,147
|
)
|
|
Capital
expenditures
|
$
|
4,503
|
$
|
2,166
|
$
|
-
|
$
|
6,669
|
||||
Total
assets at September 30, 2008
|
$
|
172,976
|
$
|
65,018
|
$
|
6,420
|
b
|
$
|
244,414
|
|||
Nine Months Ended September 30,
2009
|
||||||||||||
Revenues
|
$
|
5,070
|
$
|
3,296
|
$
|
-
|
$
|
8,366
|
||||
Cost
of sales, excluding depreciation
|
(6,806
|
)
|
(2,405
|
)
|
-
|
(9,211
|
)
|
|||||
Depreciation
|
(176
|
)
|
(1,051
|
)
|
-
|
(1,227
|
)
|
|||||
General
and administrative expenses
|
(3,636
|
)
|
(2,196
|
)
|
-
|
(5,832
|
)
|
|||||
Operating
loss
|
$
|
(5,548
|
)
|
$
|
(2,356
|
)
|
$
|
-
|
$
|
(7,904
|
)
|
|
Capital
expenditures
|
$
|
32,653
|
$
|
27,262
|
$
|
-
|
$
|
59,915
|
||||
Nine Months Ended September 30,
2008
|
||||||||||||
Revenues
|
$
|
12,786
|
$
|
3,278
|
$
|
-
|
$
|
16,064
|
||||
Cost
of sales, excluding depreciation
|
(11,163
|
)
|
(2,683
|
)
|
-
|
(13,846
|
)
|
|||||
Depreciation
|
(147
|
)
|
(1,064
|
)
|
-
|
(1,211
|
)
|
|||||
General
and administrative expenses
|
(4,538
|
)
|
(739
|
)
|
-
|
(5,277
|
)
|
|||||
Operating
loss
|
$
|
(3,062
|
)
|
$
|
(1,208
|
)
|
$
|
-
|
$
|
(4,270
|
)
|
|
Loss
from discontinued operations
|
$
|
-
|
$
|
(105
|
)
|
$
|
-
|
$
|
(105
|
)
|
||
Capital
expenditures
|
$
|
21,959
|
$
|
10,337
|
$
|
-
|
$
|
32,296
|
||||
a.
|
Includes
sales commissions, management fees and other revenues together with
related expenses.
|
b.
|
Primarily
includes deferred tax assets.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
September
30,
|
September
30,
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
Operating
loss
|
$
|
(2,375
|
)
|
$
|
(1,147
|
)
|
$
|
(7,904
|
)
|
$
|
(4,270
|
)
|
Interest
income and other
|
66
|
330
|
894
|
1,432
|
||||||||
Loss
on extinguishment of debt
|
-
|
-
|
(182
|
)
|
-
|
|||||||
Gain
(loss) on interest rate cap agreement
|
(37
|
)
|
(121
|
)
|
33
|
(121
|
)
|
|||||
Loss
from continuing operations before
|
||||||||||||
income
taxes and equity in unconsolidated
|
||||||||||||
affiliate’s
(loss) income
|
$
|
(2,346
|
)
|
$
|
(938
|
)
|
$
|
(7,159
|
)
|
$
|
(2,959
|
)
|
11.
|
NEW
ACCOUNTING STANDARDS
|
12.
|
SUBSEQUENT
EVENTS
|
Acreage
|
|||||||||||||||||
Developed
or Under Development
|
Undeveloped
|
||||||||||||||||
Developed
|
Single
|
Multi-
|
Single
|
Total
|
|||||||||||||
Lots
|
Family
|
family
|
Commercial
|
Total
|
Family
|
Commercial
|
Total
|
Acreage
|
|||||||||
Austin
|
|||||||||||||||||
Barton
Creek
|
122
|
358
|
249
|
368
|
975
|
510
|
28
|
538
|
1,513
|
||||||||
Lantana
|
-
|
-
|
-
|
-
|
-
|
-
|
223
|
223
|
223
|
||||||||
Circle
C
|
59
|
a
|
-
|
-
|
265
|
265
|
148
|
a
|
122
|
270
|
535
|
||||||
W
Austin Hotel
|
|||||||||||||||||
&
Residences
|
-
|
-
|
-
|
2
|
b
|
2
|
-
|
-
|
-
|
2
|
|||||||
San Antonio
|
|||||||||||||||||
Camino
Real
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
2
|
2
|
||||||||
Total
|
181
|
358
|
249
|
635
|
1,242
|
658
|
375
|
1,033
|
2,275
|
||||||||
a.
|
Relates
to Meridian, an 800-lot residential
development.
|
b.
|
Represents
a city block in downtown Austin planned for a mixture of hotel,
residential, retail, office and entertainment
uses.
|
Residential
Lots
|
|||||||
Developed
|
Under
Development
|
Potential
Development
a
|
Total
|
||||
Barton
Creek:
|
|||||||
Calera:
|
|||||||
Calera
Court Courtyard Homes
|
2
|
-
|
-
|
2
|
|||
Calera
Drive
|
8
|
-
|
-
|
8
|
|||
Verano
Drive
|
67
|
-
|
-
|
67
|
|||
Amarra
Drive:
|
|||||||
Phase
I Lots
|
7
|
-
|
-
|
7
|
|||
Phase
II Lots
|
35
|
-
|
-
|
35
|
|||
Phase
II and III Townhomes
|
-
|
-
|
221
|
221
|
|||
Phase
III
|
-
|
89
|
-
|
89
|
|||
Mirador
Estate
|
2
|
-
|
-
|
2
|
|||
Wimberly
Lane Phase II
|
1
|
-
|
-
|
1
|
|||
Section
N Multi-familyb
|
-
|
-
|
1,860
|
1,860
|
|||
Other
Barton Creek Sections
|
-
|
-
|
154
|
154
|
|||
Circle
C:
|
|||||||
Meridian
|
59
|
-
|
57
|
116
|
|||
Total
Residential Lots
|
181
|
89
|
2,292
|
2,562
|
|||
a.
|
Our
development of the properties identified under the heading “Potential
Development” is dependent upon the approval of our development plans and
permits by governmental agencies, including the City. Those governmental
agencies may either not approve one or more development plans and permit
applications related to such properties or require us to modify our
development plans. Accordingly, our development strategy with respect to
those properties may change in the future. The timing for development of
these properties has not been determined. While we may be
proceeding with approved infrastructure projects on some of these
properties, they are not considered to be “under development” for
disclosure in this table unless other development activities necessary to
fully realize the properties’ intended final use are in progress or
scheduled to commence in the near
term.
|
b.
|
Represents
1,860 potential units on 174 acres.
|
Commercial
Property
|
|||||||
Developed
|
Under
Development
|
Potential
Development
a
|
Total
|
||||
Barton
Creek:
|
|||||||
Barton
Creek Village Phase I
|
22,000
|
-
|
-
|
22,000
|
|||
Barton
Creek Village Phase II
|
-
|
-
|
18,000
|
18,000
|
|||
Entry
Corner
|
-
|
-
|
5,000
|
5,000
|
|||
Amarra
Retail/Office
|
-
|
-
|
90,000
|
90,000
|
|||
Section
N
|
-
|
-
|
1,500,000
|
1,500,000
|
|||
Circle
C:
|
|||||||
Chase
Ground Lease
|
4,000
|
-
|
-
|
4,000
|
|||
Tract
106
|
21,000
|
-
|
-
|
21,000
|
|||
Tract
107
|
-
|
80,000
|
-
|
80,000
|
|||
Tract
110
|
-
|
-
|
760,000
|
760,000
|
|||
Tract
101
|
-
|
-
|
90,000
|
90,000
|
|||
Tract
102
|
-
|
-
|
25,000
|
25,000
|
|||
Tract
114
|
-
|
-
|
5,000
|
5,000
|
|||
Lantana:
|
|||||||
7500
Rialto
|
150,000
|
-
|
-
|
150,000
|
|||
Advanced
Micro Devices
|
|||||||
Option
Tracts
|
-
|
-
|
760,000
|
760,000
|
|||
Tract
GR1
|
-
|
-
|
325,000
|
325,000
|
|||
Tract
G07
|
-
|
-
|
210,000
|
210,000
|
|||
Tract
CS5
|
-
|
-
|
175,000
|
175,000
|
|||
Tract
CS1-CS3
|
-
|
-
|
150,000
|
150,000
|
|||
Tract
LR1
|
-
|
-
|
75,000
|
75,000
|
|||
Tract
L04
|
-
|
-
|
70,000
|
70,000
|
|||
Austin
290 Tract
|
-
|
-
|
20,000
|
20,000
|
|||
Total
Square Feet
|
197,000
|
80,000
|
4,278,000
|
4,555,000
|
|||
a.
|
Our
development of the properties identified under the heading “Potential
Development” is dependent upon the approval of our development plans and
permits by governmental agencies, including the City. Those governmental
agencies may either not approve one or more development plans and permit
applications related to such properties or require us to modify our
development plans. Accordingly, our development strategy with respect to
those properties may change in the future. The timing for development of
these properties has not been determined. While we may be
proceeding with approved infrastructure projects on some of these
properties, they are not considered to be “under development” for
disclosure in this table unless other development activities necessary to
fully realize the properties’ intended final use are in progress or
scheduled to commence in the near
term.
|
Third
Quarter
|
Nine
Months
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
Revenues:
|
||||||||||||
Real
estate operations
|
$
|
2,181
|
$
|
5,751
|
$
|
5,070
|
$
|
12,786
|
||||
Commercial
leasing
|
1,163
|
1,158
|
3,296
|
3,278
|
||||||||
Total
revenues
|
$
|
3,344
|
$
|
6,909
|
$
|
8,366
|
$
|
16,064
|
||||
Operating
loss
|
$
|
(2,375
|
)
|
$
|
(1,147
|
)
|
$
|
(7,904
|
)
|
$
|
(4,270
|
)
|
Benefit
from income taxes
|
$
|
844
|
$
|
268
|
$
|
2,448
|
$
|
660
|
||||
Net
loss attributable to Stratus common stock
|
$
|
(1,553
|
)
|
$
|
(447
|
)
|
$
|
(4,734
|
)
|
$
|
(1,851
|
)
|
Third
Quarter
|
Nine
Months
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
Revenues:
|
||||||||||||
Developed
property sales
|
$
|
2,116
|
$
|
5,691
|
$
|
4,201
|
$
|
11,953
|
||||
Undeveloped
property sales
|
-
|
-
|
-
|
41
|
||||||||
Commissions,
management fees and other
|
65
|
60
|
869
|
792
|
||||||||
Total
revenues
|
2,181
|
5,751
|
5,070
|
12,786
|
||||||||
Cost
of sales, including depreciation
|
(2,760
|
)
|
(5,007
|
)
|
(6,982
|
)
|
(11,310
|
)
|
||||
General
and administrative expenses
|
(1,134
|
)
|
(1,482
|
)
|
(3,636
|
)
|
(4,538
|
)
|
||||
Operating
loss
|
$
|
(1,713
|
)
|
$
|
(738
|
)
|
$
|
(5,548
|
)
|
$
|
(3,062
|
)
|
Third
Quarter
|
||||||||
2009
|
2008
|
|||||||
Lots
|
Revenues
|
Lots
|
Revenues
|
|||||
Barton
Creek
|
||||||||
Calera
Court Courtyard Homes
|
1
|
$
549
|
1
|
$
643
|
||||
Verano
Drive
|
1
|
450
|
3
|
1,875
|
||||
Circle
C
|
||||||||
Meridian
|
16
|
1,117
|
48
|
3,173
|
||||
Total
Residential
|
18
|
$
2,116
|
52
|
$
5,691
|
||||
Nine
Months
|
||||||||
2009
|