Stratus Properties Inc. (STRS): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the engine room of a focused Texas real estate player, and Stratus Properties Inc. (STRS) runs a fascinating, disciplined model centered on entitlement and timely asset sales. Honestly, their game is unlocking inherent land value before flipping stabilized, income-producing assets-like the retail portion of Lantana Place-to institutional buyers. We see the tension in their balance sheet: they held $55.0 million in cash as of September 30, 2025, while managing significant debt, which totaled $199.4 million at June 30, 2025. Keep reading; we're breaking down their entire Business Model Canvas to show you exactly who buys their finished projects and how they generate those lump-sum sales proceeds.

Stratus Properties Inc. (STRS) - Canvas Business Model: Key Partnerships

You're looking at the relationships Stratus Properties Inc. (STRS) relies on to get its projects built and financed. These aren't just vendors; they are critical capital and operational partners. Honestly, the structure of these alliances, especially the joint ventures, is where a lot of the recent liquidity came from.

Third-party equity investors for large-scale joint ventures like Holden Hills Phase 2

The formation of the Holden Hills Phase 2, L.P. partnership in June 2025 is a prime example of using external capital. Stratus Properties Inc. holds a 50% equity capital interest in this partnership, sharing the development of the approximately 570-acre mixed-use project.

The initial capital structure involved significant contributions from both sides:

• The external equity investor, SWPD Investments, LLC, contributed approximately $47.9 million in cash as the Class B Limited Partner.
• Stratus Properties Inc. contributed the Holden Hills Phase 2 land valued at approximately $95.7 million, which included an infrastructure investment of about $8.8 million.
• Total initial capital contributions to the Phase 2 Partnership were about $143.6 million.
• Stratus received a $47.8 million cash distribution from the partnership formation in the second quarter of 2025, which materially boosted liquidity.
• The Phase 2 Partnership is set to reimburse Stratus $0.8 million for initial project costs.
• As of June 30, 2025, noncontrolling interests in Stratus' consolidated financials related to these partnerships stood at $146.4 million.

Commercial banks and lenders like Comerica Bank for revolving credit and project financing

Comerica Bank remains central to Stratus Properties Inc.'s liquidity management through its revolving credit facility, which was amended with a new maturity date of March 27, 2027. This facility is crucial for general working capital and supporting joint venture needs.

Here's a snapshot of the facility as of late 2025, showing a strong liquidity position:

Project-specific financing also involves lenders. For instance, the Lantana Place construction loan was refinanced in January 2025, resulting in a new loan of $29.8 million maturing February 1, 2029. Stratus expected to use proceeds from the November 2025 sale of Lantana Place - Retail to repay this project loan, which had an approximate principal balance of $29.8 million as of September 30, 2025.

General contractors and subcontractors for development and construction activities

While specific general contractor contracts aren't detailed with dollar amounts here, the scale of development activity shows the volume of work flowing to these partners. For the first nine months of 2025, Stratus Properties Inc. reported that purchases and development totaled $28.6 million.

Hotel operators, such as the AC Hotel by Marriott ground lease at Lantana Place

Stratus Properties Inc. has established long-term relationships through ground leases. The company entered a ground lease with a hotel operator for the development of an AC Hotel by Marriott at Lantana Place, which began operations in November 2021. This specific hotel contains 145 rooms.

The monetization of this asset class is evident in the recent sale of the stabilized retail component:

• Stratus completed the sale of Lantana Place - Retail for $57.5 million in November 2025.
• This sale generated pre-tax net cash proceeds of approximately $26.9 million after accounting for selling costs and the repayment of the associated project loan.

Municipal Utility Districts (MUDs) for infrastructure cost reimbursements

Stratus Properties Inc. considers the timing and receipt of MUD reimbursements a factor in its operations.

• Eligibility for and potential receipt of MUD reimbursements is noted as a factor affecting future cash flows and liquidity.

Stratus Properties Inc. (STRS) - Canvas Business Model: Key Activities

The Key Activities for Stratus Properties Inc. (STRS) as of late 2025 center on executing development plans, monetizing stabilized assets, managing existing properties, and maintaining a disciplined capital structure.

Real estate entitlement and development of residential and mixed-use projects.

Stratus Properties Inc. continues to push forward on its major entitled projects. The company has substantially completed construction of the road and utility infrastructure for Holden Hills Phase 1, which is a 495-acre residential development within the Barton Creek community. Capital expenditures for purchases and development totaled $28.6 million for the first nine months of 2025, with a significant portion allocated to Holden Hills Phase 1 and The Saint George. The Saint George multi-family project saw its first units available for occupancy in April 2025. Looking ahead at the Lantana Place community, Stratus Properties Inc. retains the property planned for The Saint Julia, an approximately 210-unit multi-family development, and also holds remaining entitlements for 160,000 square feet of commercial use on five acres. Overall, the development portfolio includes approximately 1,500 acres of commercial and residential projects under development or undeveloped land.

Strategic asset monetization, such as the $57.5 million sale of Lantana Place - Retail.

Asset sales are a critical activity for unlocking embedded value. Stratus Properties Inc. completed the sale of its 100% owned, stabilized Lantana Place - Retail project on November 20, 2025, for a total of $57.5 million in cash. This transaction generated pre-tax net cash proceeds of approximately $26.9 million after accounting for selling costs and the repayment of the project loan. This sale price represented a premium to the gross value presented in the Net Asset Value calculation as of December 31, 2024. The company also executed other sales, including the contract to sell West Killeen Market for $13.3 million in Q2 2025, which was expected to yield about $7.7 million in pre-tax net cash proceeds.

Here's a quick look at recent asset monetization activity:

Management and leasing of stabilized multi-family and retail properties.

The Leasing Operations segment provides consistent revenue flow. Revenue from this segment was consistent in the third-quarter 2025 compared to the third-quarter 2024. The Saint June multi-family project contributed to increased Leasing Operations revenue in the first-quarter 2025. The sold Lantana Place - Retail component included 99,377 square feet of retail space, with an anchor tenant opening in May 2018, and a ground lease for an AC Hotel by Marriott that opened in November 2021.

Securing and managing project financing and corporate debt, like the $32.9 million Saint June loan.

Managing debt and liquidity is a constant focus. Stratus Properties Inc. amended the loan agreement for The Saint June, L.P., extending the maturity date to October 2, 2027. This amendment increased the outstanding principal balance by $1.5 million, bringing the total to $32.9 million. The interest rate margin on this loan was lowered from 2.35% to 2.00% over the one-month Term Secured Overnight Financing Rate, subject to a 3.50% floor. On the corporate level, consolidated debt stood at $203.9 million as of September 30, 2025, while consolidated cash and cash equivalents were $55.0 million. Availability under the Comerica Bank revolving credit facility was $17.5 million at that same date. Earlier in the year, refinancing the Lantana Place construction loan generated additional cash proceeds of approximately $3.0 million after closing costs.

Key financing and liquidity metrics as of late 2025 include:

• The Saint June loan principal balance: $32.9 million.
• Consolidated cash and cash equivalents (September 30, 2025): $55.0 million.
• Consolidated debt (September 30, 2025): $203.9 million.
• Revolving credit facility availability (September 30, 2025): $17.5 million.
• Lantana Place construction loan refinancing proceeds: approximately $3.0 million.

Infrastructure development, including road and utilities for Holden Hills Phase 1.

Infrastructure work is a necessary precursor to realizing residential value. Stratus Properties Inc. has substantially completed construction of the road and utility infrastructure for Holden Hills Phase 1. In the second-quarter 2025, the company received $409 thousand in proceeds from MUD reimbursements related to infrastructure costs incurred for The Saint June development. Furthermore, letters of credit totaling $11.6 million had been issued under the revolving credit facility, with $13.3 million of that amount securing obligations to build roads and utilities for Holden Hills Phases 1 and 2.

Finance: draft 13-week cash view by Friday.

Stratus Properties Inc. (STRS) - Canvas Business Model: Key Resources

You're looking at the core assets Stratus Properties Inc. (STRS) relies on to execute its strategy in the Austin, Texas real estate market. These aren't just line items; they are the physical and financial foundations of their operations right now, late in 2025.

The most significant tangible resource is the land itself. Stratus Properties Inc. maintains an extensive land holdings and development portfolio of approximately 1,500 acres in Texas, comprising commercial and residential projects under development or held for future use. This scale is critical for a long-term developer.

Financially, liquidity is a key resource, especially following recent partnership activity. As of September 30, 2025, Stratus Properties Inc. held $55.0 million in cash and cash equivalents. This healthy cash position, which increased substantially due to a $47.8 million distribution from the Holden Hills Phase 2 partnership in the second quarter of 2025, supports ongoing operations and optionality. Still, you need to see the debt alongside it.

Here's a quick look at the balance sheet snapshot as of the end of the third quarter of 2025:

The company also possesses entitlements and regulatory approvals for high-value development projects across its portfolio, which is essential for unlocking future value from that 1,500 acres. Furthermore, the experienced in-house development and management team is the human capital that translates raw land into revenue-generating assets.

The Leasing Operations segment is underpinned by its stabilized income-producing assets. These are the properties that provide consistent cash flow, unlike the lumpy revenue from property sales. Stratus Properties Inc.'s commercial real estate portfolio includes stabilized retail properties, notably four properties anchored or shadow-anchored by H-E-B grocery stores, plus Lantana Place. The Saint June, a 182-unit luxury garden-style multi-family project, is also a key stabilized asset.

You should also note the recent monetization activities that bolster this resource base:

• Sale of West Killeen Market in Q2 2025 generated pre-tax net cash proceeds of approximately $7.8 million.
• Agreement entered in October 2025 to sell Lantana Place - Retail for approximately $57.4 million, expected to close in Q4 2025.
• The share repurchase program had $21.1 million remaining available for repurchases as of November 7, 2025, showing a commitment to capital deployment flexibility.

Finance: draft 13-week cash view by Friday.

Stratus Properties Inc. (STRS) - Canvas Business Model: Value Propositions

You're looking at how Stratus Properties Inc. (STRS) creates value, which really boils down to transforming raw land and development potential into high-value, income-producing, or saleable assets, mostly around Austin, Texas.

High-quality, master-planned residential communities in desirable Austin-area markets.

Stratus Properties Inc. focuses on delivering finished residential product, like the last two Amarra Villas homes, which were advancing construction with expected completion in the second-quarter 2025. The company also saw the first units at The Saint George become available for occupancy in April 2025. This strategy is supported by a large land bank; as of late 2025, Stratus Properties Inc. has a development portfolio consisting of approximately 1,500 acres of commercial and residential projects under development or undeveloped land held for future use. The value proposition here is delivering finished, entitled residential units in a high-demand market.

• The Saint George first units occupied: April 2025.
• Amarra Villas homes sold (9M 2025 aggregate): $6.8 million for two homes.
• Holden Hills Phase 1 infrastructure expected completion: Q2 2025.

Creation of stabilized, income-producing retail and multi-family assets for institutional sale.

A core part of the model is developing assets to stabilization and then selling them to institutional buyers, which monetizes the development effort. For instance, Stratus Properties Inc. completed the sale of its 100% owned, stabilized Lantana Place - Retail project for $57.5 million in cash in November 2025. Earlier in 2025, the sale of the West Killeen Market retail property closed for $13.3 million. Stratus Properties Inc. retains the entitlement for The Saint Julia, an approximately 210-unit multi-family development project at Lantana Place, which represents the next generation of stabilized asset for sale. The sale of Lantana Place - Retail generated pre-tax net cash proceeds of approximately $26.9 million.

Here's a quick look at the recent stabilized asset sales that exemplify this value capture:

Unlocking inherent land value through entitlement and infrastructure investment.

Stratus Properties Inc. invests capital into entitlements and infrastructure to increase the underlying value of its land holdings before a sale or further development. The sales price of Lantana Place - Retail at $57.5 million was noted as a premium to the gross value presented in Stratus' net asset value calculation as of December 31, 2024. This demonstrates successful value realization from entitlement work. Furthermore, Stratus Properties Inc. retains remaining entitlements for 160,000 square feet of commercial use on five acres within the Lantana community, showing continued value embedded in the land.

Diversified real estate portfolio spanning residential, retail, hotel, and entertainment.

The portfolio is structured to capture value across different real estate types in the Austin area. While retail sales have been a focus for cash generation, the company maintains multi-family development (The Saint Julia), residential sales (Amarra Villas), and leasing operations (The Saint June). The portfolio also includes a hotel component via a ground lease for an AC Hotel by Marriott at Lantana Place, which opened in November 2021. The overall strategy balances asset sales with ongoing leasing revenue, though revenues for the first nine months of 2025 totaled $21.6 million, down from $43.9 million in the first nine months of 2024, largely due to fewer land and home sales in 2025.

You can see the shift in focus from sales to liquidity management, as cash and cash equivalents stood at $55.0 million at September 30, 2025, with no amounts drawn on the revolving credit facility.

Stratus Properties Inc. (STRS) - Canvas Business Model: Customer Relationships

You're looking at how Stratus Properties Inc. (STRS) manages its interactions across its distinct customer groups as of late 2025. The relationships are highly segmented, moving from large, one-time transactions to ongoing service agreements.

Transactional relationship for large, lump-sum asset sales to institutional investors.

For large asset sales, the relationship is purely transactional, often involving institutional partners or outright sales of stabilized assets. This is a key driver for liquidity events, such as the partnership formation for Holden Hills Phase 2, which resulted in a $47.8 million cash distribution to Stratus Properties Inc. in the second-quarter of 2025. This contrasts with prior sales; for instance, the sale of approximately 47 acres of undeveloped land at Magnolia Place in the first nine months of 2024 generated $14.5 million.

A recent example of a completed transaction was the sale of the West Killeen Market retail project in the second-quarter of 2025. This sale generated pre-tax net cash proceeds of approximately $7.8 million after transaction expenses and repayment of the remaining $5.2 million project loan.

Looking forward, Stratus Properties Inc. entered an agreement in October 2025 to sell Lantana Place - Retail for approximately $57.4 million, with an expected closing in the fourth-quarter of 2025. The anticipated use of proceeds includes repaying the project loan, which had an approximate $29.8 million principal balance as of September 30, 2025.

Dedicated property management for multi-family and retail tenants.

For tenants occupying properties held for investment, the relationship shifts to dedicated property management, which falls under the Leasing Operations segment. Stratus Properties Inc. oversees asset and portfolio management functions, including lease administration, property maintenance, and tenant relations, leveraging in-house expertise. This hands-on approach is used to maintain attractive occupancy levels.

The Leasing Operations segment demonstrated resilience through the third quarter of 2025. Segment revenue held essentially flat year-over-year at $4.924 million in Q3 2025, compared to $4.920 million in Q3 2024. Furthermore, this segment delivered a positive profit of $0.317 million in the third quarter of 2025, despite macro headwinds. The segment's diversified tenant base spans professional services, light manufacturing, medical facilities, and select retail operations.

Key properties managed under this relationship include:

• The Saint George, with first units available for occupancy in April 2025.
• The Saint June.
• Kingwood Place.
• The retail portion of Lantana Place.

Broker-assisted sales for high-end single-family homes like Amarra Villas.

The relationship for high-end single-family home sales, such as those at Amarra Villas, is facilitated through broker-assisted sales, often involving specialized marketing companies like Kuper Sotheby's International Realty. This is a direct sales channel within the Real Estate Operations segment.

The sales volume for Amarra Villas in 2025 shows a focus on smaller, high-value transactions compared to 2024 land sales:

Specifically for the third quarter of 2025, there were no sales, contrasting with the sale of one Amarra Villas home for $4.0 million in Q3 2024.

The Amarra Villas community itself consists of a total of 20 units, with available units priced from $3,795,000 to $3,895,000 as of September 2025. The homes feature sizes ranging from 3,545 to 4,112 square feet.

Long-term lease agreements with anchor and retail tenants.

Stratus Properties Inc. targets net-lease assets, seeking long-term, creditworthy tenants under triple-net leases, which transfer property-related expenses to the lessees. This strategy is designed to deliver predictable cash flows. The company evaluates opportunities based on lease term duration and tenant credit quality.

The Leasing Operations segment is comprised of assets held for investment that are leased or available for lease. The focus is on long-term agreements to ensure stability. For example, the company is advancing construction on Holden Hills Phase 1, positioning it to begin homebuilding and selling home sites in 2026, which implies future long-term leasing opportunities or sales.

The relationship is underpinned by the overall financial health supporting these commitments:

• Cash and cash equivalents at September 30, 2025: $55.0 million.
• Availability under revolving credit facility at September 30, 2025: $17.5 million.
• Consolidated debt at September 30, 2025: $203.9 million.

Finance: draft 13-week cash view by Friday.

Stratus Properties Inc. (STRS) - Canvas Business Model: Channels

You're looking at how Stratus Properties Inc. moves its product-developed properties, land, and investment assets-to the customer or capital markets as of late 2025. This involves a mix of direct selling, ongoing leasing operations, and strategic partnerships for large asset movements.

Direct Sales Team and Real Estate Brokers for Property/Land Sales

The Real Estate Operations segment relies on direct sales channels, often involving brokers, for realizing value from developed homes and raw land. Transaction volume in 2025 shows the cadence of these sales.

• The first nine months of 2025 saw sales of two Amarra Villas homes totaling an aggregate of $6.8 million.
• The third quarter of 2025 reflected no property sales, contrasting with the sale of one Amarra Villas home for $4.0 million in the third quarter of 2024.
• For the first nine months of 2024, sales included approximately 47 acres of undeveloped land at Magnolia Place for $14.5 million and four Amarra Villas homes for $15.2 million.

Here's a quick look at the Real Estate Operations segment revenue drivers for the year-to-date periods:

What this estimate hides is that the sales channel activity is highly dependent on project completion, like the Amarra Villas closings.

In-house Leasing and Property Management Offices for Rental Income Properties

For properties held for investment, Stratus Properties Inc. uses its in-house Leasing Operations segment staff to manage leasing and property management. This provides a steady, albeit fluctuating, revenue stream.

• Revenue from the Leasing Operations segment remained consistent between the third quarter of 2025 and the third quarter of 2024.
• The first quarter of 2025 saw an increase in Leasing Operations revenue, primarily reflecting increased revenue from The Saint June, where the first units became available for occupancy in April 2025.
• The Leasing Operations portfolio as of late 2025 includes The Saint George (completed in second-quarter 2025), The Saint June, Kingwood Place, the retail portion of Lantana Place, the completed retail portion of Jones Crossing, and associated retail pad sites.

Investment Banks and Brokers for Marketing and Selling Large Stabilized Assets

When moving larger, stabilized retail projects, Stratus Properties Inc. engages external financial intermediaries. This channel was active in Q2 2025.

• The sale of West Killeen Market in the second quarter of 2025 was for a contract price of $13.3 million.
• This sale generated pre-tax net cash proceeds of approximately $7.8 million after transaction expenses and the payment of the remaining project loan of $5.2 million.
• The third quarter of 2024 saw the closing of the Magnolia Place - Retail sale for $8.9 million, which yielded pre-tax net cash proceeds of approximately $8.6 million.

Joint Venture Structures to Bring in Third-Party Equity for Development

To fund major developments like Holden Hills Phase 2, Stratus Properties Inc. uses joint venture structures to bring in third-party equity, which immediately boosts liquidity.

• In the second quarter of 2025, Stratus Properties Inc. entered into a joint venture with an unrelated third-party equity investor for the development of Holden Hills Phase 2.
• The formation of this partnership resulted in a distribution and cash payment of $47.8 million to Stratus Properties Inc. during the second quarter of 2025.
• This single transaction was the primary driver for the substantial increase in cash and cash equivalents, which totaled $55.0 million at September 30, 2025, up from $20.2 million at December 31, 2024.

Stratus Properties Inc. (STRS) - Canvas Business Model: Customer Segments

You're looking at the core groups Stratus Properties Inc. (STRS) serves across its development and leasing operations as of late 2025. This isn't a one-size-fits-all business; it's segmented by the type of real estate transaction-a sale or a long-term lease.

Institutional real estate investors seeking stabilized retail and multi-family assets.

This segment is evidenced by the ownership structure and the recent monetization of stabilized assets. Stratus Properties Inc. recently completed a major transaction with this group, selling the Lantana Place - Retail project for $57.5 million in November 2025. The company's focus on unlocking value through timely asset sales targets investors looking for income-producing, stabilized properties. Major institutional holders in Stratus Properties Inc. as of mid-2025 included Hodges Capital Management Inc. and Russell Investments Group Ltd..

• Completed sale of Lantana Place - Retail for $57.5 million in November 2025.
• Sale generated pre-tax net cash proceeds of approximately $26.9 million.
• Retains entitlements for 160,000 square feet of commercial use in the Lantana community.

High-net-worth individuals purchasing luxury single-family homes and villas.

This group drives the revenue for the Real Estate Operations segment through the sale of developed residential units, primarily in the Barton Creek community. The pace of these sales directly impacts quarterly revenue figures. For instance, revenues for the first nine months of 2025 were $21.6 million, which reflected the sales of only two Amarra Villas homes for an aggregate of $6.8 million. This contrasts sharply with the first nine months of 2024, which saw the sale of four Amarra Villas homes for $15.2 million.

Here's a look at the recent single-family home sales activity:

The company had only five homes remaining at Amarra Villas as of early 2025.

Commercial and retail tenants for properties like Lantana Place and Jones Crossing.

While the retail portion of Lantana Place was sold, Stratus Properties Inc. still manages stabilized retail assets under its Leasing Operations segment, which includes the completed retail portion of Jones Crossing. The performance of these leased spaces is key to consistent revenue. For example, Leasing Operations revenue rose 15% Year-over-Year in the first quarter of 2025.

The retail portfolio that was generating rental income included:

• The retail portion of Jones Crossing.
• Retail pad sites subject to ground leases at Jones Crossing.
• Anchor tenant at the recently sold Lantana Place retail was Moviehouse & Eatery, which opened in May 2018.

Multi-family residential renters in Austin-area projects like The Saint June.

Renters form the base for the Leasing Operations segment, which saw its revenue increase to $5.0 million in the first quarter of 2025. The Saint June is a key asset here, driving segment profit growth as it moved toward stabilization. Furthermore, Stratus retains development plans for a future multi-family project within the Lantana community, known as The Saint Julia, planned for approximately 210 units. The Saint George, another multi-family asset, had its first units available for occupancy in April 2025.

Key multi-family assets serving renters include:

• The Saint June, which contributed to a 15% YoY revenue rise in Leasing Operations in Q1 2025.
• The Saint George, completed in the second quarter of 2025.
• Planned 210-unit multi-family development, The Saint Julia, retained after the Lantana Place retail sale.

If onboarding takes 14+ days, churn risk rises.

Stratus Properties Inc. (STRS) - Canvas Business Model: Cost Structure

You're looking at the core expenses Stratus Properties Inc. incurs to run its business, which is heavily weighted toward asset management and development. These costs are what you need to track closely to understand margin pressure, especially when property sales slow down.

A major component is the cost of carrying debt. While the prompt mentioned a high interest expense figure, the actual reported consolidated debt totaled $199.4 million at June 30, 2025. This debt load directly translates into interest costs, which for the third quarter of 2025 alone, amounted to $749 thousand in net interest expense. You also see costs associated with managing that debt, such as a $216 thousand loss on debt extinguishment for the first nine months of 2025.

Development and construction are significant cash outflows. For the first nine months of 2025, Stratus Properties Inc. had substantial capital commitments:

• Purchases and development of real estate properties: $20.543 million.
• Capital expenditures: $8.075 million.

This totals $28.618 million spent on asset growth over the first three quarters of 2025, primarily tied to projects like Holden Hills Phase 1 and The Saint George.

Overhead costs are managed centrally. General and administrative expenses, which cover things like employee compensation and general overhead not directly tied to a specific project, were reported at $3.9 million for the third quarter of 2025. This was an increase from the $3.4 million reported in the third quarter of 2024.

For the Leasing Operations portfolio, the recurring operational costs include several line items. For the second quarter of 2025, specific segment costs (in thousands) included:

These figures represent just a snapshot of the ongoing maintenance and administrative costs required to keep leased assets operational.

When properties are sold, the associated costs hit the income statement. While the specific figure you noted for Q3 2024 was not found, the Cost of real estate sold for the nine months ended September 30, 2024, totaled $19.115 million. For the more recent nine-month period ending September 30, 2025, this cost was $5.790 million. Also, be aware of non-recurring charges impacting costs, such as the $2.8 million charge in the nine-month period ending September 30, 2025, for capitalized fees related to a terminated development project.

Finance: draft 13-week cash view by Friday.

Stratus Properties Inc. (STRS) - Canvas Business Model: Revenue Streams

You're looking at the core ways Stratus Properties Inc. brings in cash as of late 2025. The revenue picture is clearly split between the ongoing income from their stabilized assets and the lumpy, project-based income from development and land sales. Honestly, the big swings come from those property sales, so you have to watch the closing pipeline closely.

The primary drivers for Stratus Properties Inc.'s top line fall into two buckets: Real Estate Operations and Leasing Operations. For the first nine months of 2025, total revenues hit $21.6 million, a notable drop from the $43.9 million seen in the first nine months of 2024. This shift clearly shows the timing impact of asset sales.

The Leasing Operations segment, which provides that steady base, remained consistent across the comparable periods in 2025, which is exactly what you want from that part of the portfolio. This consistent stream helps smooth out the volatility from the development side.

Here's a quick look at how the Real Estate Operations revenue components shifted between the first nine months of 2024 and the first nine months of 2025:

Lump-sum proceeds from the sale of developed properties and undeveloped land are critical. You saw the sale of the West Killeen Market retail project in the second quarter of 2025 for $13.3 million, which generated pre-tax net cash proceeds of approximately $7.8 million after settling the remaining $5.2 million project loan. Furthermore, the expected closing of the Lantana Place - Retail sale in the fourth quarter of 2025 for approximately $57.4 million is a major event that will be used to repay a project loan balance of about $29.8 million as of September 30, 2025.

The structure of joint ventures is a significant source of non-operating cash flow, as you noted. The formation of the Holden Hills Phase 2 partnership in the second quarter of 2025 resulted in a substantial cash distribution to Stratus Properties Inc. of $47.8 million. This distribution significantly bolstered the company's cash position to $55.0 million as of September 30, 2025, with no amounts drawn on the revolving credit facility.

The specific sales of single-family homes are concentrated in the Amarra Villas community. For the nine months ended September 30, 2025, the revenue recognized came from the sales of two Amarra Villas homes for an aggregate of $6.8 million. This compares to the prior year's nine-month period where four homes sold for a total of $15.2 million.

To summarize the key cash-generating events from the Real Estate Operations segment in 2025, focus on these specific transactions:

• Cash distribution from Holden Hills Phase 2 partnership: $47.8 million in Q2 2025.
• Aggregate sales proceeds from two Amarra Villas homes in 9M 2025: $6.8 million.
• Sale price for West Killeen Market in Q2 2025: $13.3 million.
• Expected gross proceeds from Lantana Place - Retail sale in Q4 2025: $57.4 million.

The Leasing Operations segment revenue, which is the recurring income stream, held steady in Q3 2025 compared to Q3 2024. That stability is defintely important when planning capital deployment.