Document and Entity Information
Document and Entity Information Document - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Apr. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Stratus Properties Inc. | ||
Entity Central Index Key | 885,508 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 8,092,140 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 68,600,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and cash equivalents | $ 11,285 | $ 17,036 | |
Restricted cash | 8,293 | 8,731 | |
Real estate held for sale | 24,999 | 25,944 | |
Real estate under development | 141,218 | 139,171 | |
Land available for development | 14,433 | 23,397 | |
Real estate held for investment, net | 208,779 | 186,626 | |
Deferred tax assets | 15,351 | 15,329 | |
Other assets | 15,264 | 13,871 | |
Total assets | 439,622 | 430,105 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 14,552 | 14,182 | |
Accrued liabilities | 6,656 | 10,356 | |
Debt | [1] | 274,734 | 260,592 |
Other liabilities | 8,708 | 8,301 | |
Total liabilities | $ 304,650 | $ 293,431 | |
Commitments and contingencies | |||
Stratus stockholders’ equity: | |||
Common stock | $ 92 | $ 91 | |
Capital in excess of par value of common stock | 192,392 | 192,122 | |
Accumulated deficit | (36,827) | (35,144) | |
Common stock held in treasury | (20,760) | (20,470) | |
Total stockholders’ equity | 134,897 | 136,599 | |
Noncontrolling interests in subsidiaries | 75 | 75 | |
Total equity | 134,972 | 136,674 | |
Total liabilities and equity | $ 439,622 | $ 430,105 | |
[1] | Includes net reductions for unamortized debt issuance costs of $2.5 million for each of March 31, 2016, and December 31, 2015. See Note 7 for a discussion of a change in presentation of debt issuance costs. |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues: | |||
Hotel | $ 10,575 | $ 11,619 | |
Entertainment | 4,143 | 4,309 | |
Real estate operations | 2,255 | 2,476 | |
Commercial leasing | 2,053 | 1,821 | |
Total revenues | 19,026 | 20,225 | |
Cost of sales: | |||
Hotel | 7,681 | 8,082 | |
Entertainment | 3,044 | 3,403 | |
Real estate operations | 2,209 | 2,110 | |
Commercial leasing | 862 | 741 | |
Depreciation | 1,682 | 2,304 | |
Total cost of sales | 15,478 | 16,640 | |
General and administrative expenses | 3,075 | 1,976 | |
Total costs and expenses | 18,553 | 18,616 | |
Operating income | 473 | 1,609 | |
Interest expense, net | (1,969) | (850) | |
Loss on interest rate derivative instruments | (374) | (55) | |
Loss on early extinguishment of debt | (837) | 0 | |
Other income, net | 4 | 4 | |
(Loss) income before income taxes and equity in unconsolidated affiliates' income | (2,703) | 708 | |
Equity in unconsolidated affiliates' income | 98 | 121 | |
Benefit from (provision for) income taxes | 922 | (263) | |
(Loss) income from continuing operations | (1,683) | 566 | |
Income from discontinued operations, net of taxes | 0 | 3,218 | [1] |
Net (loss) income | (1,683) | 3,784 | |
Net income attributable to noncontrolling interests in subsidiaries | 0 | (1,042) | |
Net (loss) income attributable to common stockholders | $ (1,683) | $ 2,742 | |
Basic and diluted net (loss) income per share attributable to common stockholders: | |||
Continuing operations | $ (0.21) | $ (0.06) | |
Discontinued operations | 0 | 0.40 | |
Basic and diluted net (loss) income per share attributable to common stockholders | $ (0.21) | $ 0.34 | |
Weighted-average shares of common stock outstanding: | |||
Basic | 8,071 | 8,041 | |
Diluted | 8,071 | 8,079 | |
[1] | Represents a deferred gain, net of taxes, associated with the 2012 sale of 7500 Rialto that was recognized in first-quarter 2015. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Statement - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net (loss) income | $ (1,683) | $ 3,784 |
Other comprehensive loss, net of taxes: | ||
Loss on interest rate swap agreement | 0 | (163) |
Other comprehensive loss | 0 | (163) |
Total comprehensive (loss) income | (1,683) | 3,621 |
Total comprehensive income attributable to noncontrolling interests | 0 | (974) |
Total comprehensive (loss) income attributable to common stock | $ (1,683) | $ 2,647 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flow from operating activities: | ||
Net (loss) income | $ (1,683) | $ 3,784 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation | 1,682 | 2,304 |
Cost of real estate sold | 970 | 1,167 |
Loss on early extinguishment of debt | 837 | 0 |
Loss on interest rate derivative contracts | 374 | 55 |
Debt issuance cost amortization and stock-based compensation | 365 | 365 |
Deferred gain on sale of 7500 Rialto | 0 | (3,218) |
Equity in unconsolidated affiliates' income | (98) | (121) |
Deposits | (114) | (98) |
Deferred income taxes | (22) | 98 |
Purchases and development of real estate properties | (3,125) | (6,563) |
(Increase) decrease in other assets | (710) | 972 |
Decrease in accounts payable, accrued liabilities and other | (3,182) | (577) |
Net cash used in operating activities | (4,706) | (1,832) |
Cash flow from investing activities: | ||
Capital expenditures | (13,868) | (8,276) |
Investment in unconsolidated affiliates | (187) | 35 |
Net cash used in investing activities | (14,055) | (8,241) |
Cash flow from financing activities: | ||
Borrowings from credit facility | 5,500 | 14,500 |
Payments on credit facility | (1,931) | (6,946) |
Borrowings from project loans | 160,424 | 6,774 |
Payments on project and term loans | (149,882) | (9,083) |
Stock-based awards net payments, including excess tax benefit | (158) | (93) |
Financing costs | (943) | 0 |
Net cash provided by financing activities | 13,010 | 5,152 |
Net decrease in cash and cash equivalents | (5,751) | (4,921) |
Cash and cash equivalents at beginning of year | 17,036 | 29,645 |
Cash and cash equivalents at end of period | $ 11,285 | $ 24,724 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Total Stratus Stockholders' Equity [Member] | Common Stock [Member] | Capital in Excess of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Common Stock Held in Treasury [Member] | Noncontrolling Interests in Subsidiaries [Member] |
Balance at Dec. 31, 2014 | $ 175,086 | $ 136,443 | $ 91 | $ 204,269 | $ (47,321) | $ (279) | $ (20,317) | $ 38,643 |
Balance (in shares) at Dec. 31, 2014 | 9,116 | 1,081 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercised and issued stock-based awards | 0 | 0 | $ 0 | 0 | 0 | 0 | $ 0 | 0 |
Exercised and issued stock-based awards (in shares) | 37 | 0 | ||||||
Stock-based compensation | 136 | 136 | $ 0 | 136 | 0 | 0 | $ 0 | 0 |
Tax benefit for stock-based awards | 60 | 60 | 0 | 60 | 0 | 0 | 0 | 0 |
Tender of shares for stock-based awards | (153) | (153) | $ 0 | 0 | 0 | 0 | $ (153) | 0 |
Tender of shares for stock-based awards (in shares) | 0 | 12 | ||||||
Total comprehensive income (loss) | 3,621 | 2,647 | $ 0 | 0 | 2,742 | (95) | $ 0 | 974 |
Balance at Mar. 31, 2015 | 178,750 | 139,133 | $ 91 | 204,465 | (44,579) | (374) | $ (20,470) | 39,617 |
Balance (in shares) at Mar. 31, 2015 | 9,153 | 1,093 | ||||||
Balance at Dec. 31, 2015 | 136,674 | 136,599 | $ 91 | 192,122 | (35,144) | 0 | $ (20,470) | 75 |
Balance (in shares) at Dec. 31, 2015 | 9,160 | 1,093 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercised and issued stock-based awards | 0 | 0 | $ 1 | (1) | 0 | 0 | $ 0 | 0 |
Exercised and issued stock-based awards (in shares) | 37 | 0 | ||||||
Stock-based compensation | 139 | 139 | $ 0 | 139 | 0 | 0 | $ 0 | 0 |
Tax benefit for stock-based awards | 132 | 132 | 0 | 132 | 0 | 0 | 0 | 0 |
Tender of shares for stock-based awards | (290) | (290) | $ 0 | 0 | 0 | 0 | $ (290) | 0 |
Tender of shares for stock-based awards (in shares) | 0 | 12 | ||||||
Total comprehensive income (loss) | (1,683) | (1,683) | $ 0 | 0 | (1,683) | 0 | $ 0 | 0 |
Balance at Mar. 31, 2016 | $ 134,972 | $ 134,897 | $ 92 | $ 192,392 | $ (36,827) | $ 0 | $ (20,760) | $ 75 |
Balance (in shares) at Mar. 31, 2016 | 9,197 | 1,105 |
General Information (Unaudited)
General Information (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
General Information [Abstract] | |
General Information [Text Block] | GENERAL The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015 , included in Stratus Properties Inc.’s (Stratus) Annual Report on Form 10-K (Stratus 2015 Form 10-K) filed with the United States Securities and Exchange Commission. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary for a fair statement of the results for the interim periods reported. Operating results for the three-month period ended March 31, 2016 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . |
Earnings Per Share (Unaudited)
Earnings Per Share (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Stratus’ basic net (loss) income per share of common stock was calculated by dividing the net (loss) income attributable to common stock by the weighted-average shares of common stock outstanding during the first quarter periods. A reconciliation of net (loss) income and weighted-average shares of common stock outstanding for purposes of calculating diluted net (loss) income per share (in thousands, except per share amounts) follows: Three Months Ended March 31, 2016 2015 Net (loss) income $ (1,683 ) $ 3,784 Net income attributable to noncontrolling interests in subsidiaries — (1,042 ) Net (loss) income attributable to Stratus common stockholders $ (1,683 ) $ 2,742 Weighted-average shares of common stock outstanding 8,071 8,041 Add shares issuable upon exercise or vesting of: Dilutive stock options — 6 Restricted stock units (RSUs) — 32 a Weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share 8,071 8,079 Diluted net (loss) income per share attributable to common stockholders $ (0.21 ) $ 0.34 a. Excludes approximately 36 thousand shares of common stock associated with anti-dilutive RSUs. Stock options and RSUs representing 71 thousand shares of common stock were excluded for first-quarter 2016 from weighted-average common shares outstanding for purposes of calculating diluted net loss per share because they were anti-dilutive. Outstanding stock options with exercise prices greater than the average market price for Stratus' common stock during the period are excluded from the computation of diluted net income per share of common stock. Stock options representing approximately 28 thousand shares of common stock were excluded for first-quarter 2015 . |
Fair Value Measurements (Unaudi
Fair Value Measurements (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements [Text Block] | FAIR VALUE MEASUREMENTS Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The carrying value for certain Stratus financial instruments (i.e., cash and cash equivalents, restricted cash, accounts payable and accrued liabilities) approximates fair value because of their short-term nature and generally negligible credit losses. A summary of the carrying amount and fair value of Stratus' other financial instruments follows (in thousands): March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate cap agreement $ — $ — $ 1 $ 1 Liabilities: Interest rate swap agreement 1,019 1,019 646 646 Debt 274,734 277,368 260,592 263,303 Interest Rate Cap Agreement. On September 30, 2013 , Stratus’ joint venture with Canyon-Johnson Urban Fund II, L.P. (the Block 21 Joint Venture) paid $0.5 million to enter into an interest rate cap agreement, which capped the one-month London Interbank Offered Rate ( LIBOR ), the variable rate in the Bank of America loan agreement relating to the W Austin Hotel & Residences (the BoA loan), at 1 percent until October 5, 2014, 1.5 percent from October 6, 2014, to October 4, 2015, and caps the one-month LIBOR at 2 percent from October 5, 2015, to September 29, 2016 (see Note 4 for additional information regarding repayment of the BoA loan in January 2016). Stratus uses an interest rate pricing model that relies on market observable inputs such as LIBOR to measure the fair value of the interest rate cap agreement. Stratus also evaluated the counterparty credit risk associated with the interest rate cap agreement, which is considered a Level 3 input, but did not consider such risk to be significant. Therefore, the interest rate cap agreement is classified within Level 2 of the fair value hierarchy. Interest Rate Swap Agreement. On December 13, 2013 , Stratus' joint venture with LCHM Holdings, LLC, formerly Moffett Holdings, LLC, for the development of Parkside Village (the Parkside Village Joint Venture), entered into an interest rate swap agreement with Comerica Bank that Stratus had designated as a cash flow hedge with changes in fair value of the instrument recorded in other comprehensive income (loss). The instrument effectively converted the variable rate portion of Parkside Village's loan from Comerica Bank (the Parkside Village loan) from one-month LIBOR to a fixed rate of 2.3 percent . In connection with the sale of the Parkside Village property on July 2, 2015 , Stratus fully repaid the amount outstanding under the Parkside Village loan. Stratus assumed the interest rate swap agreement and as a result, the instrument no longer qualifies for hedge accounting. Accordingly, the accumulated other comprehensive loss balance of $0.6 million on July 2, 2015, was reclassified to the Consolidated Statement of Operations as a loss on interest rate derivative instruments, and changes in the fair value of the instrument are being recorded in the Consolidated Statement of Operations (including a loss of $0.4 million in first-quarter 2016). Stratus also evaluated the counterparty credit risk associated with the interest rate swap agreement, which is considered a Level 3 input, but did not consider such risk to be significant. Therefore, the interest rate swap agreement is classified within Level 2 of the fair value hierarchy. Debt. Stratus' debt is recorded at cost and is not actively traded. Fair value is estimated based on discounted future expected cash flows at estimated current market interest rates. Accordingly, Stratus' debt is classified within Level 2 of the fair value hierarchy. The fair value of debt does not represent the amounts that will ultimately be paid upon the maturities of the loans. |
Debt and Equity Transactions (U
Debt and Equity Transactions (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Capitalization, Long-term Debt and Equity [Abstract] | |
Debt and Equity Transactions [Text Block] | DEBT The components of Stratus' debt are as follows: March 31, 2016 December 31, 2015 Goldman Sachs loan $ 148,314 $ — BoA loan — 128,230 Lakeway construction loan 48,349 45,931 Comerica credit facility 36,718 53,149 Santal construction loan 23,972 15,874 Diversified Real Asset Income Fund (DRAIF) term loan 7,995 7,993 Barton Creek Village term loan 5,653 5,689 Magnolia loan 3,733 3,726 Total debt a $ 274,734 $ 260,592 a. Includes net reductions for unamortized debt issuance costs of $2.5 million for each of March 31, 2016, and December 31, 2015. See Note 7 for a discussion of a change in presentation of debt issuance costs. On January 5, 2016 , Stratus completed the refinancing of the W Austin Hotel & Residences. Goldman Sachs Mortgage Company provided a $150.0 million , ten -year, non-recourse term loan (the Goldman Sachs loan) with a fixed interest rate of 5.58 percent per annum and payable monthly based on a 30-year amortization. Stratus used the proceeds from the Goldman Sachs loan to fully repay its existing obligations under the BoA loan and the $20.0 million Comerica term loan included as part of the Comerica credit facility. For a description of Stratus' other loans, refer to Note 7 in the Stratus 2015 Form 10-K. Interest Expense and Capitalization. Interest expense (before capitalized interest) totaled $3.7 million for first-quarter 2016 and $2.2 million for first-quarter 2015 . Stratus' capitalized interest costs totaled $1.8 million for first-quarter 2016 and $1.4 million for first-quarter 2015 . Capitalized interest costs for the 2016 and 2015 periods primarily related to development activities at certain properties in Barton Creek and at Lakeway. |
Income Taxes (Unaudited)
Income Taxes (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | INCOME TAXES Stratus’ accounting policy for and other information regarding its income taxes is further described in Notes 1 and 8 in the Stratus 2015 Form 10-K. Stratus had deferred tax assets (net of deferred tax liabilities) totaling $15.4 million at March 31, 2016 , and $15.3 million at December 31, 2015 . Stratus’ future results of operations may be negatively impacted by an inability to realize a tax benefit for future tax losses or for items that will generate additional deferred tax assets. The difference between Stratus' consolidated effective income tax rate for first-quarter 2016 , and the U.S. Federal statutory income tax rate of 35 percent , was primarily attributable to the state margin tax. The difference between Stratus' consolidated effective income tax rate for first-quarter 2015 , and the U.S. Federal statutory income tax rate of 35 percent , was primarily attributable to the state margin tax partially offset by the tax effect of income attributable to noncontrolling interests. |
Business Segments (Unaudited)
Business Segments (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments [Text Block] | BUSINESS SEGMENTS Stratus currently has four operating segments: Hotel, Entertainment, Real Estate Operations, and Commercial Leasing. The Hotel segment includes the W Austin Hotel located at the W Austin Hotel & Residences. The Entertainment segment includes ACL Live, a live music and entertainment venue and production studio at the W Austin Hotel & Residences. In addition to hosting concerts and private events, this venue is the home of Austin City Limits, a television program showcasing popular music legends. The Entertainment segment also includes revenues and costs associated with events hosted at other venues, including the recently opened 3TEN ACL Live, which opened in March 2016 on the site of the W Austin Hotel & Residences, and the results of the Stageside Productions joint venture with Pedernales Entertainment LLC (see Note 2 in the Stratus 2015 Form 10-K for further discussion). The Real Estate Operations segment is comprised of Stratus’ real estate assets (developed, under development and available for development), which consists of its properties in Austin, Texas (the Barton Creek community, the Circle C community, Lantana and the condominium units at the W Austin Hotel & Residences); in Lakeway, Texas (The Oaks at Lakeway) located in the greater Austin area; in Magnolia, Texas located in the greater Houston area; and in Killeen, Texas (The West Killeen Market). The Commercial Leasing segment includes the office and retail space at the W Austin Hotel & Residences, a retail building and a bank building in Barton Creek Village, a retail building at The Oaks at Lakeway and the first phase of the Santal multi-family project. During 2015 , Stratus completed the sales of the Parkside Village and 5700 Slaughter properties, which were included in the Commercial Leasing segment. Stratus uses operating income or loss to measure the performance of each segment. General and administrative expenses primarily consist of employee salaries, wages and other costs, and beginning January 1, 2016, are managed on a consolidated basis and are not allocated to Stratus' operating segments. The segment disclosures for first-quarter 2015 have been recast to be consistent with the first-quarter 2016 presentation. The following segment information reflects management determinations that may not be indicative of what the actual financial performance of each segment would be if it were an independent entity. Segment data presented below were prepared on the same basis as Stratus’ consolidated financial statements (in thousands). Hotel Entertainment Real Estate a Commercial Leasing b Corporate, Eliminations and Other c Total Three Months Ended March 31, 2016: Revenues: Unaffiliated customers $ 10,575 $ 4,143 $ 2,255 $ 2,053 $ — $ 19,026 Intersegment 89 33 8 136 (266 ) — Cost of sales, excluding depreciation 7,710 3,105 2,209 870 (98 ) 13,796 Depreciation 846 335 60 476 (35 ) 1,682 General and administrative expenses — — — — 3,075 d 3,075 Operating income (loss) $ 2,108 $ 736 $ (6 ) $ 843 $ (3,208 ) $ 473 Capital expenditures e $ 87 $ 24 $ 3,125 $ 13,757 $ — $ 16,993 Total assets at March 31, 2016 106,284 42,311 197,616 81,290 12,121 439,622 Three Months Ended March 31, 2015: Revenues: Unaffiliated customers $ 11,619 $ 4,309 $ 2,476 $ 1,821 $ — $ 20,225 Intersegment 72 23 25 86 (206 ) — Cost of sales, excluding depreciation 8,102 3,429 2,111 765 (71 ) 14,336 Depreciation 1,494 324 57 467 (38 ) 2,304 General and administrative expenses — — — — 1,976 1,976 Operating income (loss) $ 2,095 $ 579 $ 333 $ 675 $ (2,073 ) $ 1,609 Income from discontinued operations f $ — $ — $ — $ 3,218 $ — $ 3,218 Capital expenditures e 391 61 6,563 7,824 — 14,839 Total assets at March 31, 2015 109,669 50,993 190,448 47,880 4,390 403,380 a. Includes sales commissions and other revenues together with related expenses. b. Includes the results of the Parkside Village and 5700 Slaughter commercial properties through July 2, 2015. c. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. d. General and administrative costs were higher in first-quarter 2016, compared with first-quarter 2015, primarily reflecting higher legal and consulting fees mainly due to costs associated with the proxy contest commenced by Carl Berg. e. Also includes purchases and development of residential real estate held for sale. f. Represents a deferred gain, net of taxes, associated with the 2012 sale of 7500 Rialto that was recognized in first-quarter 2015. |
New Accounting Standards (Unaud
New Accounting Standards (Unaudited) (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NEW ACCOUNTING STANDARDS In April and August 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASUs) to simplify the presentation of debt issuance costs. These ASUs require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. For public entities, these ASUs are effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years. Stratus adopted these ASUs and retrospectively adjusted its previously issued financial statements. Upon adoption, Stratus adjusted its December 31, 2015, balance sheet by decreasing other assets and long-term debt by $2.5 million for debt issuance costs related to corresponding debt balances. Stratus elected to continue presenting debt issuance costs for its revolving credit facility as a deferred charge (asset) because of the volatility of its borrowings and repayments under the facility. In January 2016, the FASB issued an ASU that amends the current guidance on the classification and measurement of financial instruments. This ASU makes limited changes to existing guidance and amends certain disclosure requirements. For public entities, this ASU is effective for interim and annual periods beginning after December 15, 2017. Early adoption is not permitted, except for the provision on recording fair value changes for financial liabilities under the fair value option. Stratus is currently evaluating the impact this ASU will have on its financial reporting and disclosures, but at this time does not expect the adoption of this ASU will have a material impact on its financial statements. In February 2016, the FASB issued an ASU that will require lessees to recognize most leases on the balance sheet. This ASU allows lessees to make an accounting policy election to not recognize a lease asset and liability for leases with a term of 12 months or less and that do not have a purchase option that is expected to be exercised. For public entities, this ASU is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. This ASU must be applied using the modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Stratus is currently evaluating the impact this guidance will have on its financial statements. In March 2016, the FASB issued an ASU that simplifies various aspects of the accounting for share-based payment transactions, including the income tax consequences, statutory tax withholding requirements, an accounting policy election for forfeitures and the classification on the statement of cash flows. For public entities, this ASU is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. Each of the amendments in this ASU provides specific transition requirements. Stratus is currently evaluating the impact this guidance will have on its financial statements. |
Subsequent Events (Unaudited) (
Subsequent Events (Unaudited) (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Stratus evaluated events after March 31, 2016, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements. |
Earnings Per Share (Unaudited)
Earnings Per Share (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Diluted, by Common Class [Table Text Block] | A reconciliation of net (loss) income and weighted-average shares of common stock outstanding for purposes of calculating diluted net (loss) income per share (in thousands, except per share amounts) follows: Three Months Ended March 31, 2016 2015 Net (loss) income $ (1,683 ) $ 3,784 Net income attributable to noncontrolling interests in subsidiaries — (1,042 ) Net (loss) income attributable to Stratus common stockholders $ (1,683 ) $ 2,742 Weighted-average shares of common stock outstanding 8,071 8,041 Add shares issuable upon exercise or vesting of: Dilutive stock options — 6 Restricted stock units (RSUs) — 32 a Weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share 8,071 8,079 Diluted net (loss) income per share attributable to common stockholders $ (0.21 ) $ 0.34 a. Excludes approximately 36 thousand shares of common stock associated with anti-dilutive RSUs. |
Fair Value Measurements (Unau16
Fair Value Measurements (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | A summary of the carrying amount and fair value of Stratus' other financial instruments follows (in thousands): March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate cap agreement $ — $ — $ 1 $ 1 Liabilities: Interest rate swap agreement 1,019 1,019 646 646 Debt 274,734 277,368 260,592 263,303 |
Debt and Equity Transactions 17
Debt and Equity Transactions (Unaudited) Summary of Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Table [Abstract] | |
Schedule of Debt [Table Text Block] | March 31, 2016 December 31, 2015 Goldman Sachs loan $ 148,314 $ — BoA loan — 128,230 Lakeway construction loan 48,349 45,931 Comerica credit facility 36,718 53,149 Santal construction loan 23,972 15,874 Diversified Real Asset Income Fund (DRAIF) term loan 7,995 7,993 Barton Creek Village term loan 5,653 5,689 Magnolia loan 3,733 3,726 Total debt a $ 274,734 $ 260,592 a. Includes net reductions for unamortized debt issuance costs of $2.5 million for each of March 31, 2016, and December 31, 2015. See Note 7 for a discussion of a change in presentation of debt issuance costs. |
Business Segments (Unaudited) (
Business Segments (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Segment data presented below were prepared on the same basis as Stratus’ consolidated financial statements (in thousands). Hotel Entertainment Real Estate a Commercial Leasing b Corporate, Eliminations and Other c Total Three Months Ended March 31, 2016: Revenues: Unaffiliated customers $ 10,575 $ 4,143 $ 2,255 $ 2,053 $ — $ 19,026 Intersegment 89 33 8 136 (266 ) — Cost of sales, excluding depreciation 7,710 3,105 2,209 870 (98 ) 13,796 Depreciation 846 335 60 476 (35 ) 1,682 General and administrative expenses — — — — 3,075 d 3,075 Operating income (loss) $ 2,108 $ 736 $ (6 ) $ 843 $ (3,208 ) $ 473 Capital expenditures e $ 87 $ 24 $ 3,125 $ 13,757 $ — $ 16,993 Total assets at March 31, 2016 106,284 42,311 197,616 81,290 12,121 439,622 Three Months Ended March 31, 2015: Revenues: Unaffiliated customers $ 11,619 $ 4,309 $ 2,476 $ 1,821 $ — $ 20,225 Intersegment 72 23 25 86 (206 ) — Cost of sales, excluding depreciation 8,102 3,429 2,111 765 (71 ) 14,336 Depreciation 1,494 324 57 467 (38 ) 2,304 General and administrative expenses — — — — 1,976 1,976 Operating income (loss) $ 2,095 $ 579 $ 333 $ 675 $ (2,073 ) $ 1,609 Income from discontinued operations f $ — $ — $ — $ 3,218 $ — $ 3,218 Capital expenditures e 391 61 6,563 7,824 — 14,839 Total assets at March 31, 2015 109,669 50,993 190,448 47,880 4,390 403,380 a. Includes sales commissions and other revenues together with related expenses. b. Includes the results of the Parkside Village and 5700 Slaughter commercial properties through July 2, 2015. c. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. d. General and administrative costs were higher in first-quarter 2016, compared with first-quarter 2015, primarily reflecting higher legal and consulting fees mainly due to costs associated with the proxy contest commenced by Carl Berg. e. Also includes purchases and development of residential real estate held for sale. f. Represents a deferred gain, net of taxes, associated with the 2012 sale of 7500 Rialto that was recognized in first-quarter 2015. |
Earnings Per Share (Unaudited19
Earnings Per Share (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2014 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net (loss) income | $ (1,683) | $ 3,784 | ||
Net income attributable to noncontrolling interests in subsidiaries | 0 | (1,042) | ||
Net (loss) income attributable to common stockholders | $ (1,683) | $ 2,742 | ||
Weighted-average shares of common stock outstanding (in shares) | 8,071,000 | 8,041,000 | ||
Weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share (in shares) | 8,071,000 | 8,079,000 | ||
Diluted net income per share attributable to common stock | $ (0.21) | $ 0.34 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 36,000 | 30,000 | ||
Outstanding Stock Options With Exercise Prices Greater Than Average Market Price Of Common Stock (in shares) | 71,000 | 28,100 | ||
Dilutive Stock Options [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Incremental Common Shares Attributable to Share-based Payment Arrangements (in shares) | 0 | 6,000 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Incremental Common Shares Attributable to Share-based Payment Arrangements (in shares) | 0 | 32,000 | [1] | |
[1] | Excludes approximately 36 thousand shares of common stock associated with anti-dilutive RSUs. |
Fair Value Measurements (Unau20
Fair Value Measurements (Unaudited) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Jul. 02, 2015 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Loss on interest rate derivative instruments | $ (374) | $ (55) | |||||
Carrying Amount, Fair Value Disclosure [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Interest rate cap agreement | 0 | $ 1 | |||||
Interest rate swap agreement | 1,019 | 646 | |||||
Debt | 274,734 | 260,592 | |||||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Interest rate cap agreement | 0 | 1 | |||||
Interest rate swap agreement | 1,019 | 646 | |||||
Debt | 277,368 | $ 263,303 | |||||
Interest Rate Swap [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Derivative Liability | $ 600 | ||||||
Loss on interest rate derivative instruments | $ 400 | ||||||
Interest Rate Swap [Member] | Parkside Village Loan [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Debt Instrument, Issuance Date | Dec. 13, 2013 | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | ||||||
Interest Rate Cap [Member] | Bank of America Loan [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Debt Instrument, Issuance Date | Sep. 30, 2013 | ||||||
Payment for Interest Rate Cap Agreement | $ 500 | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||
Interest Rate Cap [Member] | Bank of America Loan [Member] | Year 1 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
Interest Rate Cap [Member] | Bank of America Loan [Member] | Year 2 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||
Interest Rate Cap [Member] | Bank of America Loan [Member] | Year 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
Parkside Village and 5700 Slaughter [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||
Disposal Date | Jul. 2, 2015 |
Debt and Equity Transactions 21
Debt and Equity Transactions (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Jan. 05, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||||
Unamortized Debt Issuance Expense | $ 2,500 | $ 2,500 | |||
Borrowings from project loans | 160,424 | $ 6,774 | |||
Debt | [1] | 274,734 | 260,592 | ||
Interest Costs Incurred | 3,700 | 2,200 | |||
Interest Costs Capitalized | $ 1,800 | $ 1,400 | |||
Goldman Sachs Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Jan. 5, 2016 | ||||
Debt Instrument, Face Amount | $ 150,000 | ||||
Debt | $ 148,314 | 0 | |||
Debt Instrument, Term | 10 years | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.58% | ||||
Comerica Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 36,718 | 53,149 | |||
Bank of America Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | 0 | 128,230 | |||
Lakeway Center Construction Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | 48,349 | 45,931 | |||
Santal Multi-Family [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | 23,972 | 15,874 | |||
American Strategic Income Portfolio Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | 7,995 | 7,993 | |||
Barton Creek Village Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | 5,653 | 5,689 | |||
Magnolia Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 3,733 | 3,726 | |||
Construction Loans [Member] | Comerica Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 20,000 | ||||
[1] | Includes net reductions for unamortized debt issuance costs of $2.5 million for each of March 31, 2016, and December 31, 2015. See Note 7 for a discussion of a change in presentation of debt issuance costs. |
Income Taxes (Unaudited) (Detai
Income Taxes (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets | $ 15,351 | $ 15,329 | |
Federal Statutory Income Tax Rate | 35.00% | 35.00% |
Business Segments (Unaudited)23
Business Segments (Unaudited) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Jul. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||||
Revenues: | |||||||
Unaffiliated customers | $ 19,026 | $ 20,225 | |||||
Intersegment | 0 | 0 | |||||
Cost of sales, excluding depreciation | 13,796 | 14,336 | |||||
Depreciation | 1,682 | 2,304 | |||||
General and administrative expenses | 3,075 | 1,976 | |||||
Operating income (loss) | 473 | 1,609 | |||||
Income from discontinued operations | 0 | 3,218 | [1] | ||||
Capital expenditures | [2] | 16,993 | 14,839 | ||||
Total assets | 439,622 | 403,380 | $ 430,105 | ||||
Real Estate Operations [Member] | |||||||
Revenues: | |||||||
Unaffiliated customers | [3] | 2,255 | 2,476 | ||||
Intersegment | [3] | 8 | 25 | ||||
Cost of sales, excluding depreciation | [3] | 2,209 | 2,111 | ||||
Depreciation | [3] | 60 | 57 | ||||
General and administrative expenses | [3] | 0 | 0 | ||||
Operating income (loss) | [3] | (6) | 333 | ||||
Income from discontinued operations | [1] | 0 | |||||
Capital expenditures | [2],[3] | 3,125 | 6,563 | ||||
Total assets | [3] | 197,616 | 190,448 | ||||
Hotel [Member] | |||||||
Revenues: | |||||||
Unaffiliated customers | 10,575 | 11,619 | |||||
Intersegment | 89 | 72 | |||||
Cost of sales, excluding depreciation | 7,710 | 8,102 | |||||
Depreciation | 846 | 1,494 | |||||
General and administrative expenses | 0 | 0 | |||||
Operating income (loss) | 2,108 | 2,095 | |||||
Income from discontinued operations | [1] | 0 | |||||
Capital expenditures | [2] | 87 | 391 | ||||
Total assets | 106,284 | 109,669 | |||||
Entertainment [Member] | |||||||
Revenues: | |||||||
Unaffiliated customers | 4,143 | 4,309 | |||||
Intersegment | 33 | 23 | |||||
Cost of sales, excluding depreciation | 3,105 | 3,429 | |||||
Depreciation | 335 | 324 | |||||
General and administrative expenses | 0 | 0 | |||||
Operating income (loss) | 736 | 579 | |||||
Income from discontinued operations | [1] | 0 | |||||
Capital expenditures | [2] | 24 | 61 | ||||
Total assets | 42,311 | 50,993 | |||||
Commercial Leasing [Member] | |||||||
Revenues: | |||||||
Unaffiliated customers | [4] | 2,053 | 1,821 | ||||
Intersegment | [4] | 136 | 86 | ||||
Cost of sales, excluding depreciation | [4] | 870 | 765 | ||||
Depreciation | [4] | 476 | 467 | ||||
General and administrative expenses | [4] | 0 | 0 | ||||
Operating income (loss) | [4] | 843 | 675 | ||||
Income from discontinued operations | [1] | 3,218 | |||||
Capital expenditures | [2],[4] | 13,757 | 7,824 | ||||
Total assets | [4] | 81,290 | 47,880 | ||||
Eliminations and Other [Member] | |||||||
Revenues: | |||||||
Unaffiliated customers | [5] | 0 | 0 | ||||
Intersegment | [5] | (266) | (206) | ||||
Cost of sales, excluding depreciation | [5] | (98) | (71) | ||||
Depreciation | [5] | (35) | (38) | ||||
General and administrative expenses | [5] | 3,075 | [6] | 1,976 | |||
Operating income (loss) | [5] | (3,208) | (2,073) | ||||
Income from discontinued operations | [1] | 0 | |||||
Capital expenditures | [2],[5] | 0 | 0 | ||||
Total assets | [5] | $ 12,121 | $ 4,390 | ||||
Parkside Village and 5700 Slaughter [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Disposal Date | Jul. 2, 2015 | ||||||
[1] | Represents a deferred gain, net of taxes, associated with the 2012 sale of 7500 Rialto that was recognized in first-quarter 2015. | ||||||
[2] | Also includes purchases and development of residential real estate held for sale. | ||||||
[3] | Includes sales commissions and other revenues together with related expenses. | ||||||
[4] | Includes the results of the Parkside Village and 5700 Slaughter commercial properties through July 2, 2015. | ||||||
[5] | Includes consolidated general and administrative expenses and eliminations of intersegment amounts. | ||||||
[6] | General and administrative costs were higher in first-quarter 2016, compared with first-quarter 2015, primarily reflecting higher legal and consulting fees mainly due to costs associated with the proxy contest commenced by Carl Berg. |
New Accounting Standards (Una24
New Accounting Standards (Unaudited) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Standards [Abstract] | ||
Unamortized Debt Issuance Expense | $ 2.5 | $ 2.5 |