On this page of StockholderLetter.com we present the latest annual shareholder letter from STRATUS PROPERTIES INC — ticker symbol STRS. Reading current and past STRS letters to shareholders can bring important insights into the investment thesis.

 •  4/24/2026 Letter Continued (Full PDF)
 •  4/10/2023 STRS Stockholder Letter
 •  4/8/2024 STRS Stockholder Letter
 •  4/8/2025 STRS Stockholder Letter
 •  More "Real Estate" Category Stockholder Letters
 •  STRS Benford's Law Stock Score = 76

STRS Shareholder/Stockholder Letter Transcript:

2025 Annual Report and Form 10-K


April 16, 2026
To my fellow stockholders:
I am proud of the Stratus team   s continued efforts to enhance stockholder value. In 2025, we sold five
properties for a total value of approximately $81.3 million, including Lantana Place     Retail, West
Killeen Market, and three Amarra Villas homes; established the Holden Hills Phase 2 partnership,
which resulted in a distribution of $47.8 million in cash to Stratus; refinanced or amended several
loans to extend maturities and obtain improved terms; continued to repurchase shares; and provided
meaningful liquidity to our balance sheet. We are maintaining our progress into 2026 with the recent
sale of Kingwood Place and several additional properties in the sales process.
Given the evolution and maturity of our assets, our successful history of property sales, as well as our
strong cash position resulting primarily from recent sales, we believe it is the right time to move
forward with a new path following a comprehensive strategic review with our external advisors. Our
Board of Directors (   Board   ) unanimously approved a plan of complete liquidation and dissolution of
Stratus (the    Plan   ) in March 2026. We believe the Plan is the best approach to realize the value of
our portfolio and maximize returns to you, our stockholders, in a tax-efficient manner.
2025 Financial Highlights
In 2025, Stratus generated net income attributable to common stockholders of $12.0 million, or
$1.47 per diluted share, an increase from $2.0 million, or $0.24 per diluted share, in 2024.
Stratus strengthened its liquidity position considerably during 2025. Consolidated cash and cash
equivalents increased to $74.3 million at year-end 2025, up from $20.2 million at the end of 2024.
This increase primarily resulted from a $47.8 million distribution received from the formation of the
Holden Hills Phase 2 partnership, the approximate $26.9 million in pre-tax net cash proceeds from the
sale of Lantana Place     Retail, and the approximate $7.8 million in pre-tax net cash proceeds from the
sale of West Killeen Market. Meanwhile, consolidated debt decreased to $143.0 million at year-end
2025, from $162.4 million at year-end 2024. As of December 31, 2025, Stratus had $17.1 million
available under its revolving credit facility and no amounts drawn under the revolving credit facility.
Stratus continued its $25.0 million share repurchase program in 2025 and into 2026. Through
March 31, 2026, Stratus acquired 235,421 shares of its common stock for a total of $5.2 million at an
average price of $22.14, and $19.8 million remained available for repurchases under the program.
2025 Project Updates
During 2025, we completed several transactions that added significant cash to our balance sheet. In
November 2025, we marked another milestone in our value-creation efforts within the Lantana
community and completed the sale of Lantana Place     Retail for $57.5 million, a premium to the
gross value presented in Stratus    net asset value calculation in our March 28, 2025 Investor
Presentation. This transaction generated pre-tax net cash proceeds of approximately $26.9 million and
a pre-tax gain of approximately $27.5 million.
In May 2025, we completed the sale of West Killeen Market for $13.3 million, also a premium to the
gross value presented in Stratus    net asset value calculation in our March 28, 2025 Investor

Presentation. The sale generated pre-tax net cash proceeds of approximately $7.8 million and a
pre-tax gain of approximately $5.0 million.
We also sold three Amarra Villas homes for a total of $10.5 million and refinanced Lantana Place    
Retail (before the sale) and Jones Crossing.
2026 Project Updates
Our momentum has carried into 2026. In January, we completed the sale of Kingwood Place for
$60.8 million, a premium to the gross value presented in Stratus    pre-tax net asset value calculation
in our March 28, 2025 Investor Presentation. The sale generated pre-tax net cash proceeds of
approximately $27.1 million, and Stratus received $16.2 million in net proceeds from this sale. We
also recently closed on the sale of one Amarra Villas home for $3.6 million in April 2026.
As of the date of this letter, we have an offer of $46.5 million for the retail component of Jones
Crossing, including undeveloped commercial acreage, and are negotiating a sales contract. We also
entered into a contract to sell a 38-acre tract of land in New Caney, Texas for approximately
$12.7 million, which is subject to satisfaction of closing conditions.
These activities reflect the ongoing strength of our assets and our disciplined approach to monetizing
the portfolio, as we transition toward the execution of our plan of liquidation, distribute the proceeds
to stockholders, and dissolve the Company, subject to stockholder approval.
Moving Forward     Plan of Complete Liquidation and Dissolution
Over the past several years we have successfully leased or sold the majority of our completed
properties and have added significant value to our earlier-stage projects by securing valuable permits
and entitlements, continuing our land planning and engineering, and constructing key infrastructure.
This work has yielded a more streamlined and mature portfolio, and we believe we are now well
positioned to realize that value for stockholders. The Plan     which is subject to approval from Stratus   
stockholders     provides that Stratus will dissolve and will conduct an orderly sale of all or
substantially all of the Company   s assets and distribute the net proceeds of these sales to
stockholders in a tax-efficient manner, subject to payment of or reasonable provision for the
Company   s liabilities and obligations.
If approved, the Plan would mark a transformative moment for the Company and represent the
culmination of years of disciplined development, asset enhancement, and value-focused execution.
We estimate that aggregate net proceeds from the asset sales could result in total distributions to
stockholders of $29.73 to $37.69 per share. The timing and amount of any liquidating distributions
are subject to a number of assumptions and will depend on many factors, as described in the
Company   s proxy statement filed with the Securities Exchange Commission.
Conclusion
The Board   s approval of the Plan represents a significant strategic milestone for Stratus, highlighting
our commitment to delivering value to our stockholders and our belief that an orderly liquidation of
our assets is the best path to maximizing value.

On behalf of the Stratus team, I would like to express my sincere gratitude to our stockholders,
partners, lenders, communities, and employees for your continued support.
Sincerely,
William H. Armstrong III
Chairman of the Board, President and Chief Executive Officer

4/24/2026 Letter Continued (Full PDF)

 

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