Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 31, 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 | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 8,098,140 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 68.6 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and cash equivalents | $ 16,240 | $ 17,036 | |
Restricted cash | 10,682 | 8,731 | |
Real estate held for sale | 21,526 | 25,944 | |
Real estate under development | 111,491 | 139,171 | |
Land available for development | 13,733 | 23,397 | |
Real estate held for investment, net | 240,614 | 186,626 | |
Deferred tax assets | 28,156 | 15,329 | |
Other assets | 15,407 | 13,871 | |
Total assets | 457,849 | 430,105 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 7,930 | 14,182 | |
Accrued liabilities, including taxes | 23,088 | 10,356 | |
Debt | [1] | 285,358 | 260,592 |
Other liabilities | 10,247 | 8,301 | |
Total liabilities | 326,623 | 293,431 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Common stock | 92 | 91 | |
Capital in excess of par value of common stock | 192,788 | 192,122 | |
Accumulated deficit | (40,969) | (35,144) | |
Common stock held in treasury | (20,760) | (20,470) | |
Total stockholders’ equity | 131,151 | 136,599 | |
Noncontrolling interests in subsidiaries | 75 | 75 | |
Total equity | 131,226 | 136,674 | |
Total liabilities and equity | $ 457,849 | $ 430,105 | |
[1] | Includes net reductions for unamortized debt issuance costs of $2.4 million at September 30, 2016, and $2.5 million at December 31, 2015. See Note 7 for a discussion of a change in presentation of debt issuance costs. |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Revenues: | |||||
Hotel | $ 8,268 | $ 8,521 | $ 29,501 | $ 31,194 | |
Entertainment | 4,190 | 4,159 | 13,236 | 13,463 | |
Commercial leasing | 2,567 | 787 | 6,761 | 4,311 | |
Real estate operations | 6,155 | 6,210 | 9,858 | 10,920 | |
Total revenues | 21,180 | 19,677 | 59,356 | 59,888 | |
Cost of sales: | |||||
Hotel | 6,891 | 6,782 | 22,248 | 23,159 | |
Entertainment | 3,713 | 3,423 | 10,532 | 10,514 | |
Commercial leasing | 1,390 | 516 | 3,295 | 2,216 | |
Real estate operations | 4,075 | 4,459 | 8,173 | 8,580 | |
Depreciation | 2,189 | 2,063 | 5,854 | 6,713 | |
Total cost of sales | 18,258 | 17,243 | 50,102 | 51,182 | |
General and administrative expenses | 2,497 | 2,187 | 9,718 | 6,308 | |
Gain on sales of assets | 0 | (20,729) | 0 | (20,729) | |
Total | 20,755 | (1,299) | 59,820 | 36,761 | |
Operating income (loss) | 425 | 20,976 | (464) | 23,127 | |
Interest expense, net | (2,579) | (855) | (6,894) | (2,736) | |
Gain (loss) on interest rate derivative instruments | 174 | (918) | (301) | (986) | |
Loss on early extinguishment of debt | 0 | 0 | (837) | 0 | |
Other income, net | 6 | 15 | 14 | 304 | |
(Loss) income before income taxes and equity in unconsolidated affiliates' (loss) income | (1,974) | 19,218 | (8,482) | 19,709 | |
Equity in unconsolidated affiliates' (loss) income | (3) | (280) | 70 | (398) | |
Benefit from (provision for) income taxes | 318 | (5,197) | 2,587 | (5,244) | |
(Loss) income from continuing operations | (1,659) | 13,741 | (5,825) | 14,067 | |
Income from discontinued operations, net of taxes | 0 | 0 | 0 | 3,218 | [1] |
Net (loss) income | (1,659) | 13,741 | (5,825) | 17,285 | |
Net income attributable to noncontrolling interests in subsidiaries | 0 | (3,493) | 0 | (5,414) | |
Net (loss) income attributable to common stockholders | $ (1,659) | $ 10,248 | $ (5,825) | $ 11,871 | |
Basic and diluted net (loss) income per share attributable to common stockholders: | |||||
Continuing operations | $ (0.20) | $ 1.27 | $ (0.72) | $ 1.07 | |
Discontinued operations | 0 | 0 | 0 | 0.40 | |
Basic and diluted net (loss) income per share attributable to common stockholders | $ (0.20) | $ 1.27 | $ (0.72) | $ 1.47 | |
Weighted-average shares of common stock outstanding: | |||||
Basic | 8,094 | 8,063 | 8,086 | 8,055 | |
Diluted | 8,094 | 8,094 | 8,086 | 8,085 | |
[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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net (loss) income | $ (1,659) | $ 13,741 | $ (5,825) | $ 17,285 |
Other comprehensive income, net of taxes: | ||||
Gain on interest rate swap agreement | 0 | 438 | 0 | 457 |
Other comprehensive income | 0 | 438 | 0 | 457 |
Total comprehensive (loss) income | (1,659) | 14,179 | (5,825) | 17,742 |
Total comprehensive income attributable to noncontrolling interests | 0 | (3,666) | 0 | (5,592) |
Total comprehensive (loss) income attributable to common stockholders | $ (1,659) | $ 10,513 | $ (5,825) | $ 12,150 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flow from operating activities: | ||
Net (loss) income | $ (5,825) | $ 17,285 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 5,854 | 6,713 |
Cost of real estate sold | 4,546 | 4,935 |
Loss on early extinguishment of debt | 837 | 0 |
Gain on sales of assets | 0 | (20,729) |
Loss on interest rate derivative contracts | 301 | 986 |
Debt issuance cost amortization and stock-based compensation | 1,233 | 1,177 |
Gain on sale of 7500 Rialto, net of tax | 0 | (3,218) |
Equity in unconsolidated affiliates' (income) loss | (70) | 398 |
Deposits | 1,054 | 1,267 |
Deferred income taxes | (12,827) | 1,470 |
Purchases and development of real estate properties | (10,919) | (20,591) |
Municipal utility district reimbursement | 12,302 | 5,307 |
Increase in other assets | (2,675) | (3,519) |
Increase in accounts payable, accrued liabilities and other | 7,071 | 11,863 |
Net cash provided by operating activities | 882 | 3,344 |
Cash flow from investing activities: | ||
Capital expenditures | (24,820) | (37,383) |
Net proceeds from sales of assets | 0 | 43,266 |
Other, net | (19) | 6 |
Net cash (used in) provided by investing activities | (24,839) | 5,889 |
Cash flow from financing activities: | ||
Borrowings from credit facility | 24,000 | 55,826 |
Payments on credit facility | (19,120) | (20,857) |
Borrowings from project loans | 174,342 | 60,202 |
Payments on project and term loans | (154,584) | (36,081) |
Purchase of noncontrolling interest | 0 | (61,991) |
Stock-based awards net (payments) proceeds, including excess tax benefit | (146) | 1,722 |
Noncontrolling interests distributions | 0 | (4,244) |
Financing costs | (1,331) | (265) |
Net cash provided by (used in) financing activities | 23,161 | (5,688) |
Net (decrease) increase in cash and cash equivalents | (796) | 3,545 |
Cash and cash equivalents at beginning of year | 17,036 | 29,645 |
Cash and cash equivalents at end of period | $ 16,240 | $ 33,190 |
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 |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 2 | |||||||
Exercised and issued stock-based awards (in shares) | 42 | 0 | ||||||
Stock-based compensation | 421 | 421 | $ 0 | 421 | 0 | 0 | $ 0 | 0 |
Tax benefit for stock-based awards | 1,866 | 1,866 | 0 | 1,866 | 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 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (4,244) | 0 | $ 0 | 0 | 0 | 0 | $ 0 | (4,244) |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 54,373 | 14,453 | 0 | 14,453 | 0 | 0 | 0 | 39,920 |
Total comprehensive income | 17,742 | 12,150 | 0 | 0 | 11,871 | 279 | 0 | 5,592 |
Balance at Sep. 30, 2015 | 136,345 | 136,274 | $ 91 | 192,103 | (35,450) | 0 | $ (20,470) | 71 |
Balance (in shares) at Sep. 30, 2015 | 9,160 | 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) | 43 | 0 | ||||||
Stock-based compensation | 523 | 523 | $ 0 | 523 | 0 | 0 | $ 0 | 0 |
Tax benefit for stock-based awards | 144 | 144 | 0 | 144 | 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 | (5,825) | (5,825) | $ 0 | 0 | (5,825) | 0 | $ 0 | 0 |
Balance at Sep. 30, 2016 | $ 131,226 | $ 131,151 | $ 92 | $ 192,788 | $ (40,969) | $ 0 | $ (20,760) | $ 75 |
Balance (in shares) at Sep. 30, 2016 | 9,203 | 1,105 |
General Information (Unaudited)
General Information (Unaudited) | 9 Months Ended |
Sep. 30, 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 and nine -month periods ended September 30, 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) | 9 Months Ended |
Sep. 30, 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 stockholders by the weighted-average shares of common stock outstanding during the period. 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net (loss) income $ (1,659 ) $ 13,741 $ (5,825 ) $ 17,285 Net income attributable to noncontrolling interests in subsidiaries — (3,493 ) — (5,414 ) Net (loss) income attributable to Stratus common stockholders $ (1,659 ) $ 10,248 $ (5,825 ) $ 11,871 Basic weighted-average shares of common stock outstanding 8,094 8,063 8,086 8,055 Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) — a 31 b — a 30 b Diluted weighted-average shares of common stock outstanding 8,094 8,094 8,086 8,085 Basic and diluted net (loss) income per share attributable to common stockholders $ (0.20 ) $ 1.27 $ (0.72 ) $ 1.47 a. Excludes approximately 124 thousand shares of common stock for both the third quarter and first nine months of 2016 associated with outstanding stock options with exercise prices less than the average market price of Stratus' common stock and RSUs that were anti-dilutive. b. Excludes approximately 22 thousand shares of common stock for third-quarter 2015 and 28 thousand shares of common stock for the first nine months of 2015 associated with RSUs that were anti-dilutive. |
Fair Value Measurements (Unaudi
Fair Value Measurements (Unaudited) | 9 Months Ended |
Sep. 30, 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): September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate cap agreement $ — $ — $ 1 $ 1 Liabilities: Interest rate swap agreement 946 946 646 646 Debt 285,358 288,059 260,592 263,303 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 that expired on September 29, 2016 (see Note 5 of the 2015 Form 10-K for further discussion). 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 a 10-year 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 the Parkside Village Joint Venture's loan from Comerica Bank (the Parkside Village loan) from the one-month London Interbank Offered Rate ( 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 gain of $0.2 million in third-quarter 2016 and a loss of $0.3 million for the first nine months of 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) | 9 Months Ended |
Sep. 30, 2016 | |
Capitalization, Long-term Debt and Equity [Abstract] | |
Debt and Equity Transactions [Text Block] | DEBT The components of Stratus' debt are as follows: September 30, 2016 December 31, 2015 Goldman Sachs loan $ 147,490 $ — Bank of America loan (BoA loan) — 128,230 Lakeway construction loan 53,556 45,931 Comerica credit facility 38,029 53,149 Santal construction loan 30,012 15,874 Diversified Real Asset Income Fund (DRAIF) term loan 7,998 7,993 Barton Creek Village term loan 5,590 5,689 Amarra Drive credit facility 2,683 — Magnolia loan — a 3,726 Total debt b $ 285,358 $ 260,592 a. The term loan with Holliday Fenoglio Fowler, L.P. was paid during third-quarter 2016. b. Includes net reductions for unamortized debt issuance costs of $2.4 million at September 30, 2016 , and $2.5 million at 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. In connection with prepayment of the BoA loan, Stratus recorded a loss on early extinguishment of debt totaling $0.8 million . The obligations of Stratus Block 21, LLC (Block 21), a wholly-owned subsidiary of Stratus and borrower under the Goldman Sachs loan, are secured by all assets owned from time to time by Block 21. Additionally, certain obligations of Block 21 under the Goldman Sachs loan are guaranteed by Stratus, including environmental indemnification and other customary carve-out obligations. In connection with any acceleration of the Goldman Sachs loan, Block 21 must pay a yield maintenance premium in the amount of at least three percent of the amount of indebtedness prepaid. Prepayment of the Goldman Sachs loan is not permitted except (1) for certain prepayments resulting from casualty or condemnation and (2) in whole within 90 days of the maturity date. On July 12, 2016 , a Stratus subsidiary entered into an $8.0 million stand-alone revolving credit facility with Comerica Bank (the Amarra Drive credit facility). The proceeds of the Amarra Drive credit facility will be used for the construction of single family townhomes and related improvements at the Amarra Villas. Interest on the loan is variable at LIBOR plus 3.0 percent . The Amarra Drive credit facility matures on July 12, 2019 , and is secured by assets at Stratus’ 20-unit Villas at Amarra Drive townhome project (the Amarra Villas), which had a net book value of $8.2 million at September 30, 2016 . The Amarra Drive credit facility is guaranteed by Stratus and contains financial covenants including a requirement that Stratus maintain a minimum total stockholders' equity balance of $110.0 million . Principal paydowns will be made as townhomes sell, and additional amounts will be borrowed as additional townhomes are constructed. As of October 31, 2016, Stratus had $2.9 million outstanding under the Amarra Drive credit facility. On August 5, 2016 , a Stratus subsidiary entered into a $9.9 million construction loan agreement with Southside Bank (the West Killeen Market loan). The proceeds of the West Killeen Market loan will be used for the construction of the West Killeen Market project. Stratus will make an initial draw on the West Killeen Market loan after certain site improvements have been completed. Interest on the loan will be variable at one-month LIBOR plus 2.75 percent , with a minimum interest rate of 3.0 percent . Payments of interest only will be made monthly during the initial 42 months of the 72 -month term, followed by 30 months of monthly principal and interest payments based on a 30 -year amortization. Borrowings on the West Killeen Market loan will be secured by assets at Stratus’ West Killeen Market retail project in Killeen, Texas, which had a net book value of $4.1 million at September 30, 2016 , and will be guaranteed by Stratus until construction is completed and certain debt service coverage ratios are met. On August 12, 2016 , the Comerica credit facility was amended to allow Stratus and certain of its wholly owned subsidiaries to use the $7.5 million letters of credit tranche to fund Stratus’ working capital needs, including land acquisitions; however, without prior approval from Comerica, individual land acquisitions may not exceed $3.0 million . All amounts borrowed under the letters of credit tranche to fund working capital needs pursuant to the amendment must be repaid in full by March 31, 2017 , at which point the amendment will terminate. 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 $4.1 million for third-quarter 2016 , $2.2 million for third-quarter 2015 , $11.7 million for the first nine months of 2016 and $6.8 million for the first nine months of 2015 . Stratus' capitalized interest costs totaled $1.5 million for third-quarter 2016 , $1.4 million for third-quarter 2015 , $4.8 million for the first nine months of 2016 and $4.1 million for the first nine months of 2015 . Capitalized interest costs for the 2016 and 2015 periods primarily related to development activities at Barton Creek and The Oaks at Lakeway. |
Income Taxes (Unaudited)
Income Taxes (Unaudited) | 9 Months Ended |
Sep. 30, 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 $28.2 million at September 30, 2016 , and $15.3 million at December 31, 2015 . The increase in deferred tax assets of $12.8 million in 2016 is primarily associated with the anticipated closing of the sale of The Oaks at Lakeway in fourth-quarter 2016, which is expected to result in a current taxable gain which would be deferred under generally accepted accounting principles in the United States. Stratus’ income tax benefit for the third quarter of 2016 includes current income tax expense of $12.5 million offset by a deferred tax benefit of $12.8 million . 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 the first nine months of 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 the first nine months of 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) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments [Text Block] | BUSINESS SEGMENTS Stratus currently has four operating segments: Hotel, Entertainment, Commercial Leasing and Real Estate Operations. 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 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 property at The Oaks at Lakeway and the Santal multi-family project. On July 2, 2015 , Stratus completed the sales of the Parkside Village and 5700 Slaughter properties, which were included in the Commercial Leasing segment. 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). 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 the 2015 periods have been recast to be consistent with the presentation of general and administrative expenses in the 2016 periods. 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 Commercial Leasing a Real Estate b Corporate, Eliminations and Other c Total Three Months Ended September 30, 2016: Revenues: Unaffiliated customers $ 8,268 $ 4,190 $ 2,567 $ 6,155 $ — $ 21,180 Intersegment 60 6 203 8 (277 ) — Cost of sales, excluding depreciation 6,893 3,837 1,398 4,076 (135 ) 16,069 Depreciation 873 378 920 55 (37 ) 2,189 General and administrative expenses — — — — 2,497 d 2,497 Operating income (loss) $ 562 $ (19 ) $ 452 $ 2,032 $ (2,602 ) $ 425 Capital expenditures e $ 16 $ (16 ) $ 2,385 $ 3,290 $ — $ 5,675 Municipal utility district (MUD) reimbursements — — — 12,302 — 12,302 Total assets at September 30, 2016 104,674 38,240 119,968 171,465 23,502 457,849 Three Months Ended September 30, 2015: Revenues: Unaffiliated customers $ 8,521 $ 4,159 $ 787 $ 6,210 $ — $ 19,677 Intersegment 76 22 134 8 (240 ) — Cost of sales, excluding depreciation 6,792 3,493 524 4,458 (87 ) 15,180 Depreciation 1,494 323 222 58 (34 ) 2,063 General and administrative expenses — — — — 2,187 2,187 Gain on sales of assets — — (20,729 ) — — (20,729 ) Operating income (loss) $ 311 $ 365 $ 20,904 $ 1,702 $ (2,306 ) $ 20,976 Capital expenditures e $ 241 $ 52 $ 20,350 $ 4,888 $ — $ 25,531 MUD reimbursements — — — 5,307 — 5,307 Total assets at September 30, 2015 108,877 49,039 26,522 231,228 11,704 427,370 Hotel Entertainment Commercial Leasing a Real Estate Operations b Eliminations and Other c Total Nine Months Ended September 30, 2016: Revenues: Unaffiliated customers $ 29,501 $ 13,236 $ 6,761 $ 9,858 $ — $ 59,356 Intersegment 220 90 564 24 (898 ) — Cost of sales, excluding depreciation 22,322 10,869 3,319 8,174 (436 ) 44,248 Depreciation 2,570 1,084 2,162 169 (131 ) 5,854 General and administrative expenses — — — — 9,718 d 9,718 Operating income (loss) $ 4,829 $ 1,373 $ 1,844 $ 1,539 $ (10,049 ) $ (464 ) Capital expenditures e $ 277 $ 263 $ 24,280 $ 10,919 $ — $ 35,739 MUD reimbursements — — — 12,302 — 12,302 Nine Months Ended September 30, 2015: Revenues: Unaffiliated customers $ 31,194 $ 13,463 $ 4,311 $ 10,920 $ — $ 59,888 Intersegment 217 124 386 58 (785 ) — Cost of sales, excluding depreciation 23,247 10,666 2,274 8,580 (298 ) 44,469 Depreciation 4,484 965 1,190 183 (109 ) 6,713 General and administrative expenses — — — — 6,308 6,308 Gain on sales of assets — — (20,729 ) — — (20,729 ) Operating income (loss) $ 3,680 $ 1,956 $ 21,962 $ 2,215 $ (6,686 ) $ 23,127 Income from discontinued operations f $ — $ — $ 3,218 $ — $ — $ 3,218 Capital expenditures e 689 121 36,573 20,591 — 57,974 MUD reimbursements — — — 5,307 — 5,307 a. Includes the results of the Parkside Village and 5700 Slaughter commercial properties through July 2, 2015. b. Includes sales commissions and other revenues together with related expenses. c. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. d. General and administrative costs were higher in the third quarter and first nine months of 2016 , compared with the third quarter and first nine months of 2015 , primarily reflecting higher legal and consulting fees mainly due to $0.3 million in third-quarter 2016 and $2.8 million for the first nine months of 2016 associated with Stratus' successful proxy contest. 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) | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NEW ACCOUNTING STANDARDS In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) that provides a single comprehensive revenue recognition model, which will replace most existing revenue recognition guidance, and also requires expanded disclosures. The core principle of the model is that revenue is recognized when control of goods or services has been transferred to customers at an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017 (following the FASB’s August 2015 ASU providing for a one-year deferral of the effective date), and interim reporting periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, and interim reporting periods within that reporting period. This ASU may be applied either retrospectively to each period presented or prospectively as a cumulative-effect adjustment as of the date of adoption. Stratus is currently evaluating the impact of the new guidance on its financial reporting and disclosures, but at this time does not expect the adoption of this ASU to have a material impact on its financial statements. In April and August 2015, the FASB issued 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. Stratus adopted these ASUs on January 1, 2016, 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) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On October 4, 2016 , Stratus entered into an agreement to sell The Oaks at Lakeway to TA Realty, LLC (TA Realty) for $114.0 million in cash. The sales agreement provides for a closing in fourth-quarter 2016, subject to the satisfaction or waiver of a number of significant conditions, in addition to customary closing conditions. As a condition to closing, the parties are required to enter into three master lease agreements: (1) one covering unleased in-line retail space, with a five-year term, (2) one covering four unleased pad sites, three of which have 10-year terms, and one of which has a 15-year term, and (3) one covering the hotel pad with a 99-year term. Stratus projects that, as of the closing, its master lease rent obligation will approximate $190,000 per month and will decline over time until leasing is complete and all leases are assigned to the purchaser, which is projected to occur by December 2018 . Stratus expects pre-tax net cash proceeds at closing to approximate $50.0 million and expects to use these projected net cash proceeds to pay indebtedness outstanding under its revolving line of credit and its term loan with DRAIF, which would result in Stratus having substantially no debt outstanding except for other project-specific debt. Stratus has agreed to guarantee the obligations of its selling subsidiary under the purchase agreement, up to a liability cap of two percent of the purchase price. This cap does not apply to Stratus' obligation to satisfy the selling subsidiary’s indemnity obligations for its broker commissions or similar compensation or Stratus' liability in guaranteeing the selling subsidiary’s obligations under the master leases to be entered into with TA Realty at closing. To secure its obligations under the master leases, Stratus is required to provide a $1.5 million irrevocable letter of credit with a three -year term. |
Earnings Per Share (Unaudited)
Earnings Per Share (Unaudited) (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net (loss) income $ (1,659 ) $ 13,741 $ (5,825 ) $ 17,285 Net income attributable to noncontrolling interests in subsidiaries — (3,493 ) — (5,414 ) Net (loss) income attributable to Stratus common stockholders $ (1,659 ) $ 10,248 $ (5,825 ) $ 11,871 Basic weighted-average shares of common stock outstanding 8,094 8,063 8,086 8,055 Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) — a 31 b — a 30 b Diluted weighted-average shares of common stock outstanding 8,094 8,094 8,086 8,085 Basic and diluted net (loss) income per share attributable to common stockholders $ (0.20 ) $ 1.27 $ (0.72 ) $ 1.47 a. Excludes approximately 124 thousand shares of common stock for both the third quarter and first nine months of 2016 associated with outstanding stock options with exercise prices less than the average market price of Stratus' common stock and RSUs that were anti-dilutive. b. Excludes approximately 22 thousand shares of common stock for third-quarter 2015 and 28 thousand shares of common stock for the first nine months of 2015 associated with RSUs that were anti-dilutive |
Fair Value Measurements (Unau16
Fair Value Measurements (Unaudited) (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate cap agreement $ — $ — $ 1 $ 1 Liabilities: Interest rate swap agreement 946 946 646 646 Debt 285,358 288,059 260,592 263,303 |
Debt and Equity Transactions 17
Debt and Equity Transactions (Unaudited) Summary of Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Table [Abstract] | |
Schedule of Debt [Table Text Block] | The components of Stratus' debt are as follows: September 30, 2016 December 31, 2015 Goldman Sachs loan $ 147,490 $ — Bank of America loan (BoA loan) — 128,230 Lakeway construction loan 53,556 45,931 Comerica credit facility 38,029 53,149 Santal construction loan 30,012 15,874 Diversified Real Asset Income Fund (DRAIF) term loan 7,998 7,993 Barton Creek Village term loan 5,590 5,689 Amarra Drive credit facility 2,683 — Magnolia loan — a 3,726 Total debt b $ 285,358 $ 260,592 a. The term loan with Holliday Fenoglio Fowler, L.P. was paid during third-quarter 2016. b. Includes net reductions for unamortized debt issuance costs of $2.4 million at September 30, 2016 , and $2.5 million at 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) | 9 Months Ended |
Sep. 30, 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 Commercial Leasing a Real Estate b Corporate, Eliminations and Other c Total Three Months Ended September 30, 2016: Revenues: Unaffiliated customers $ 8,268 $ 4,190 $ 2,567 $ 6,155 $ — $ 21,180 Intersegment 60 6 203 8 (277 ) — Cost of sales, excluding depreciation 6,893 3,837 1,398 4,076 (135 ) 16,069 Depreciation 873 378 920 55 (37 ) 2,189 General and administrative expenses — — — — 2,497 d 2,497 Operating income (loss) $ 562 $ (19 ) $ 452 $ 2,032 $ (2,602 ) $ 425 Capital expenditures e $ 16 $ (16 ) $ 2,385 $ 3,290 $ — $ 5,675 Municipal utility district (MUD) reimbursements — — — 12,302 — 12,302 Total assets at September 30, 2016 104,674 38,240 119,968 171,465 23,502 457,849 Three Months Ended September 30, 2015: Revenues: Unaffiliated customers $ 8,521 $ 4,159 $ 787 $ 6,210 $ — $ 19,677 Intersegment 76 22 134 8 (240 ) — Cost of sales, excluding depreciation 6,792 3,493 524 4,458 (87 ) 15,180 Depreciation 1,494 323 222 58 (34 ) 2,063 General and administrative expenses — — — — 2,187 2,187 Gain on sales of assets — — (20,729 ) — — (20,729 ) Operating income (loss) $ 311 $ 365 $ 20,904 $ 1,702 $ (2,306 ) $ 20,976 Capital expenditures e $ 241 $ 52 $ 20,350 $ 4,888 $ — $ 25,531 MUD reimbursements — — — 5,307 — 5,307 Total assets at September 30, 2015 108,877 49,039 26,522 231,228 11,704 427,370 Hotel Entertainment Commercial Leasing a Real Estate Operations b Eliminations and Other c Total Nine Months Ended September 30, 2016: Revenues: Unaffiliated customers $ 29,501 $ 13,236 $ 6,761 $ 9,858 $ — $ 59,356 Intersegment 220 90 564 24 (898 ) — Cost of sales, excluding depreciation 22,322 10,869 3,319 8,174 (436 ) 44,248 Depreciation 2,570 1,084 2,162 169 (131 ) 5,854 General and administrative expenses — — — — 9,718 d 9,718 Operating income (loss) $ 4,829 $ 1,373 $ 1,844 $ 1,539 $ (10,049 ) $ (464 ) Capital expenditures e $ 277 $ 263 $ 24,280 $ 10,919 $ — $ 35,739 MUD reimbursements — — — 12,302 — 12,302 Nine Months Ended September 30, 2015: Revenues: Unaffiliated customers $ 31,194 $ 13,463 $ 4,311 $ 10,920 $ — $ 59,888 Intersegment 217 124 386 58 (785 ) — Cost of sales, excluding depreciation 23,247 10,666 2,274 8,580 (298 ) 44,469 Depreciation 4,484 965 1,190 183 (109 ) 6,713 General and administrative expenses — — — — 6,308 6,308 Gain on sales of assets — — (20,729 ) — — (20,729 ) Operating income (loss) $ 3,680 $ 1,956 $ 21,962 $ 2,215 $ (6,686 ) $ 23,127 Income from discontinued operations f $ — $ — $ 3,218 $ — $ — $ 3,218 Capital expenditures e 689 121 36,573 20,591 — 57,974 MUD reimbursements — — — 5,307 — 5,307 a. Includes the results of the Parkside Village and 5700 Slaughter commercial properties through July 2, 2015. b. Includes sales commissions and other revenues together with related expenses. c. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. d. General and administrative costs were higher in the third quarter and first nine months of 2016 , compared with the third quarter and first nine months of 2015 , primarily reflecting higher legal and consulting fees mainly due to $0.3 million in third-quarter 2016 and $2.8 million for the first nine months of 2016 associated with Stratus' successful proxy contest. 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. |
Subsequent Events (Unaudited) S
Subsequent Events (Unaudited) Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Condensed Balance Sheet [Table Text Block] | The accompanying unaudited consolidated balance sheets include the following balances associated with The Oaks at Lakeway (in thousands): September 30, 2016 December 31, 2015 Real estate under development $ 19,953 $ 28,839 Real estate held for investment, net 51,996 35,866 Other assets 3,671 1,782 Accrued liabilities, including taxes 5,644 549 Debt 53,556 45,931 Other liabilities 748 442 |
Earnings Per Share (Unaudited20
Earnings Per Share (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net (loss) income | $ (1,659) | $ 13,741 | $ (5,825) | $ 17,285 | ||||
Net income attributable to noncontrolling interests in subsidiaries | 0 | (3,493) | 0 | (5,414) | ||||
Net (loss) income attributable to common stockholders | $ (1,659) | $ 10,248 | $ (5,825) | $ 11,871 | ||||
Basic weighted-average shares of common stock outstanding | 8,094 | 8,063 | 8,086 | 8,055 | ||||
Diluted weighted-average shares of common stock outstanding | 8,094 | 8,094 | 8,086 | 8,085 | ||||
Basic and diluted net (loss) income per share attributable to common stockholders | $ (0.20) | $ 1.27 | $ (0.72) | $ 1.47 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 124 | 22 | 124 | 28 | ||||
Dilutive Stock Options [Member] | ||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) | 0 | [1] | 31 | [2] | 0 | [1] | 30 | [2] |
[1] | Excludes approximately 124 thousand shares of common stock for both the third quarter and first nine months of 2016 associated with outstanding stock options with exercise prices less than the average market price of Stratus' common stock and RSUs that were anti-dilutive. | |||||||
[2] | Excludes approximately 22 thousand shares of common stock for third-quarter 2015 and 28 thousand shares of common stock for the first nine months of 2015 associated with RSUs that were anti-dilutive. |
Fair Value Measurements (Unau21
Fair Value Measurements (Unaudited) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Jul. 02, 2015 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||||
Gain (loss) on interest rate derivative instruments | $ 174 | $ (918) | $ (301) | $ (986) | |||||
Carrying Amount, Fair Value Disclosure [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||||
Interest rate cap agreement | 0 | 0 | $ 1 | ||||||
Interest rate swap agreement | 946 | 946 | 646 | ||||||
Debt | 285,358 | 285,358 | 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 | 0 | 1 | ||||||
Interest rate swap agreement | 946 | 946 | 646 | ||||||
Debt | 288,059 | 288,059 | $ 263,303 | ||||||
Interest Rate Swap [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||||||
Derivative Liability | $ 600 | ||||||||
Gain (loss) on interest rate derivative instruments | $ 200 | $ 300 | |||||||
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 | ||||||||
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 22
Debt and Equity Transactions (Unaudited) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2017 | Aug. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Oct. 31, 2016 | Aug. 12, 2016 | Aug. 05, 2016 | Jul. 12, 2016 | Jan. 05, 2016 | Dec. 31, 2015 | ||||
Debt Instrument [Line Items] | |||||||||||||||||
Unamortized Debt Issuance Expense | $ 2,400 | $ 2,400 | $ 2,500 | ||||||||||||||
Borrowings from project loans | 174,342 | $ 60,202 | |||||||||||||||
Payments to Acquire Land | 3,000 | ||||||||||||||||
Debt | [1] | 285,358 | 285,358 | 260,592 | |||||||||||||
Gain (Loss) on Extinguishment of Debt | 0 | $ 0 | $ (837) | 0 | |||||||||||||
Interest payments initial term | 42 months | ||||||||||||||||
Debt Instrument, Term | 72 months | ||||||||||||||||
Principal and interest term | 30 months | ||||||||||||||||
Interest Costs Incurred | 4,100 | 2,200 | $ 11,700 | 6,800 | |||||||||||||
Interest Costs Capitalized | 1,500 | $ 1,400 | 4,800 | $ 4,100 | |||||||||||||
Goldman Sachs Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Issuance Date | Jan. 5, 2016 | ||||||||||||||||
Debt Instrument, Face Amount | $ 150,000 | ||||||||||||||||
Debt | 147,490 | 147,490 | 0 | ||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.58% | ||||||||||||||||
Comerica Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | 38,029 | 38,029 | 53,149 | ||||||||||||||
Bank of America Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | 0 | 0 | 128,230 | ||||||||||||||
Lakeway Center Construction Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | 53,556 | 53,556 | 45,931 | ||||||||||||||
Santal Multi-Family [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | $ 30,012 | $ 30,012 | 15,874 | ||||||||||||||
West Killeen Market construction loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Issuance Date | Aug. 5, 2016 | ||||||||||||||||
Debt Instrument, Face Amount | $ 9,900 | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||||||||||||||||
Amarra Drive credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Issuance Date | Jul. 12, 2016 | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000 | ||||||||||||||||
Debt | $ 2,683 | $ 2,683 | 0 | ||||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||||||||||||
MinimumStockholdersEquityRequiredForCompliance | 110,000 | $ 110,000 | |||||||||||||||
American Strategic Income Portfolio Term Loans [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | 7,998 | 7,998 | 7,993 | ||||||||||||||
Barton Creek Village Term Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | 5,590 | 5,590 | 5,689 | ||||||||||||||
Magnolia Term Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | 0 | [2] | $ 0 | [2] | 3,726 | ||||||||||||
Construction Loans [Member] | Comerica Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | $ 20,000 | ||||||||||||||||
Letter of Credit [Member] | Comerica Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Issuance Date | Aug. 12, 2016 | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,500 | ||||||||||||||||
Subsequent Event [Member] | Amarra Drive credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Maturity Date | Jul. 12, 2019 | ||||||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Amarra Drive credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt | $ 2,900 | ||||||||||||||||
Subsequent Event [Member] | Letter of Credit [Member] | Comerica Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Maturity Date | Mar. 31, 2017 | ||||||||||||||||
Maximum [Member] | West Killeen Market construction loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||||||||
Minimum [Member] | West Killeen Market construction loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||||||||||||
Amarra Drive Villas [Domain] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Real Estate Under Development | 8,200 | $ 8,200 | |||||||||||||||
West Killeen Market [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Real Estate Under Development | $ 4,100 | $ 4,100 | |||||||||||||||
[1] | Includes net reductions for unamortized debt issuance costs of $2.4 million at September 30, 2016, and $2.5 million at December 31, 2015. See Note 7 for a discussion of a change in presentation of debt issuance costs. | ||||||||||||||||
[2] | The term loan with Holliday Fenoglio Fowler, L.P. was paid during third-quarter 2016. |
Income Taxes (Unaudited) (Detai
Income Taxes (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Deferred tax assets | $ 28,156 | $ 28,156 | $ 15,329 | |
Current Income Tax Expense (Benefit) | 12,500 | |||
Deferred income tax expense (benefit) | $ (12,800) | $ (12,827) | $ 1,470 | |
Federal Statutory Income Tax Rate | 35.00% | 35.00% |
Business Segments (Unaudited)24
Business Segments (Unaudited) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | ||||||||||
Legal Fees | $ 300 | $ 2,800 | ||||||||
Revenues: | ||||||||||
Unaffiliated customers | 21,180 | $ 19,677 | 59,356 | $ 59,888 | ||||||
Intersegment | 0 | 0 | 0 | 0 | ||||||
Cost of sales, excluding depreciation | 16,069 | 15,180 | 44,248 | 44,469 | ||||||
Depreciation | 2,189 | 2,063 | 5,854 | 6,713 | ||||||
General and administrative expenses | 2,497 | 2,187 | 9,718 | 6,308 | ||||||
Gain (Loss) on Disposition of Assets | 0 | (20,729) | 0 | (20,729) | ||||||
Operating income (loss) | 425 | 20,976 | (464) | 23,127 | ||||||
Income from discontinued operations | 0 | 0 | 0 | 3,218 | [1] | |||||
Capital expenditures | [2] | 5,675 | 25,531 | 35,739 | 57,974 | |||||
Municipal Utility District Reimbursement, Cash Flow | 12,302 | 5,307 | ||||||||
Total assets | 457,849 | 427,370 | 457,849 | 427,370 | $ 430,105 | |||||
Hotel [Member] | ||||||||||
Revenues: | ||||||||||
Unaffiliated customers | 8,268 | 8,521 | 29,501 | 31,194 | ||||||
Intersegment | 60 | 76 | 220 | 217 | ||||||
Cost of sales, excluding depreciation | 6,893 | 6,792 | 22,322 | 23,247 | ||||||
Depreciation | 873 | 1,494 | 2,570 | 4,484 | ||||||
General and administrative expenses | 0 | 0 | 0 | 0 | ||||||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||||||||
Operating income (loss) | 562 | 311 | 4,829 | 3,680 | ||||||
Income from discontinued operations | [1] | 0 | ||||||||
Capital expenditures | [2] | 16 | 241 | 277 | 689 | |||||
Municipal Utility District Reimbursement, Cash Flow | 0 | 0 | 0 | 0 | ||||||
Total assets | 104,674 | 108,877 | 104,674 | 108,877 | ||||||
Entertainment Venue [Member] | ||||||||||
Revenues: | ||||||||||
Unaffiliated customers | 4,190 | 4,159 | 13,236 | 13,463 | ||||||
Intersegment | 6 | 22 | 90 | 124 | ||||||
Cost of sales, excluding depreciation | 3,837 | 3,493 | 10,869 | 10,666 | ||||||
Depreciation | 378 | 323 | 1,084 | 965 | ||||||
General and administrative expenses | 0 | 0 | 0 | 0 | ||||||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||||||||
Operating income (loss) | (19) | 365 | 1,373 | 1,956 | ||||||
Income from discontinued operations | [1] | 0 | ||||||||
Capital expenditures | [2] | (16) | 52 | 263 | 121 | |||||
Municipal Utility District Reimbursement, Cash Flow | 0 | 0 | 0 | 0 | ||||||
Total assets | 38,240 | 49,039 | 38,240 | 49,039 | ||||||
Commercial Leasing [Member] | ||||||||||
Revenues: | ||||||||||
Unaffiliated customers | [3] | 2,567 | 787 | 6,761 | 4,311 | |||||
Intersegment | [3] | 203 | 134 | 564 | 386 | |||||
Cost of sales, excluding depreciation | [3] | 1,398 | 524 | 3,319 | 2,274 | |||||
Depreciation | [3] | 920 | 222 | 2,162 | 1,190 | |||||
General and administrative expenses | [3] | 0 | 0 | 0 | 0 | |||||
Gain (Loss) on Disposition of Assets | (20,729) | (20,729) | ||||||||
Operating income (loss) | [3] | 452 | 20,904 | 1,844 | 21,962 | |||||
Income from discontinued operations | [1],[3] | 3,218 | ||||||||
Capital expenditures | [2],[3] | 2,385 | 20,350 | 24,280 | 36,573 | |||||
Municipal Utility District Reimbursement, Cash Flow | 0 | 0 | 0 | 0 | ||||||
Total assets | [3] | 119,968 | 26,522 | 119,968 | 26,522 | |||||
Real Estate Operations [Member] | ||||||||||
Revenues: | ||||||||||
Unaffiliated customers | [4] | 6,155 | 6,210 | 9,858 | 10,920 | |||||
Intersegment | [4] | 8 | 8 | 24 | 58 | |||||
Cost of sales, excluding depreciation | [4] | 4,076 | 4,458 | 8,174 | 8,580 | |||||
Depreciation | [4] | 55 | 58 | 169 | 183 | |||||
General and administrative expenses | [4] | 0 | 0 | 0 | 0 | |||||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||||||||
Operating income (loss) | [4] | 2,032 | 1,702 | 1,539 | 2,215 | |||||
Income from discontinued operations | [1],[4] | 0 | ||||||||
Capital expenditures | [2],[4] | 3,290 | 4,888 | 10,919 | 20,591 | |||||
Municipal Utility District Reimbursement, Cash Flow | 12,302 | 12,302 | 5,307 | |||||||
Total assets | [4] | 171,465 | 231,228 | 171,465 | 231,228 | |||||
Eliminations and Other [Member] | ||||||||||
Revenues: | ||||||||||
Unaffiliated customers | [5] | 0 | 0 | 0 | 0 | |||||
Intersegment | [5] | (277) | (240) | (898) | (785) | |||||
Cost of sales, excluding depreciation | [5] | (135) | (87) | (436) | (298) | |||||
Depreciation | [5] | (37) | (34) | (131) | (109) | |||||
General and administrative expenses | [5] | 2,497 | [6] | 2,187 | 9,718 | [6] | 6,308 | |||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||||||||
Operating income (loss) | [5] | (2,602) | (2,306) | (10,049) | (6,686) | |||||
Income from discontinued operations | [1],[5] | 0 | ||||||||
Capital expenditures | [2],[5] | 0 | 0 | 0 | 0 | |||||
Municipal Utility District Reimbursement, Cash Flow | 0 | 0 | 0 | 0 | ||||||
Total assets | [5] | $ 23,502 | $ 11,704 | $ 23,502 | $ 11,704 | |||||
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 the results of the Parkside Village and 5700 Slaughter commercial properties through July 2, 2015. | |||||||||
[4] | Includes sales commissions and other revenues together with related expenses. | |||||||||
[5] | Includes consolidated general and administrative expenses and eliminations of intersegment amounts. | |||||||||
[6] | General and administrative costs were higher in the third quarter and first nine months of 2016, compared with the third quarter and first nine months of 2015, primarily reflecting higher legal and consulting fees mainly due to $0.3 million in third-quarter 2016 and $2.8 million for the first nine months of 2016 associated with Stratus' successful proxy contest. |
New Accounting Standards (Una25
New Accounting Standards (Unaudited) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
New Accounting Standards [Abstract] | ||
Unamortized Debt Issuance Expense | $ 2.4 | $ 2.5 |
Subsequent Events (Unaudited)26
Subsequent Events (Unaudited) Subsequent Event (Details) - USD ($) | Oct. 04, 2016 | Dec. 31, 2018 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | |||||||
Proceeds from Sale of Productive Assets | $ 0 | $ 43,266,000 | |||||
Debt Instrument, Term | 72 months | ||||||
Real Estate Held for Investment | $ 240,614,000 | $ 186,626,000 | |||||
Other Assets | 15,407,000 | 13,871,000 | |||||
Accrued Liabilities, including taxes | 23,088,000 | 10,356,000 | |||||
Debt and Capital Lease Obligations | [1] | 285,358,000 | 260,592,000 | ||||
Other Liabilities | 10,247,000 | 8,301,000 | |||||
The Oaks at Lakeway [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Real Estate Under Development | 19,953,000 | 28,839,000 | |||||
Real Estate Held for Investment | 51,996,000 | 35,866,000 | |||||
Other Assets | 3,671,000 | 1,782,000 | |||||
Accrued Liabilities, including taxes | 5,644,000 | 549,000 | |||||
Debt and Capital Lease Obligations | 53,556,000 | 45,931,000 | |||||
Other Liabilities | $ 748,000 | $ 442,000 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | The Oaks at Lakeway [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from Sale of Productive Assets | $ 114,000,000 | ||||||
The Oaks at Lakeway [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Deferred Gain on Sale of Property | $ 50,000,000 | ||||||
The Oaks at Lakeway [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt Instrument, Term | 3 years | ||||||
The Oaks at Lakeway [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Disposal Date | Oct. 4, 2016 | ||||||
Contractual Obligation | 190,000 | ||||||
Restructuring and Related Activities, Completion Date | Dec. 1, 2018 | ||||||
Letters of Credit Outstanding, Amount | $ 1,500,000 | ||||||
[1] | Includes net reductions for unamortized debt issuance costs of $2.4 million at September 30, 2016, and $2.5 million at December 31, 2015. See Note 7 for a discussion of a change in presentation of debt issuance costs. |