Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Apr. 28, 2017 | Jun. 30, 2016 | |
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, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 8,126,502 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 89.3 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 27,083 | $ 13,597 |
Restricted cash | 9,757 | 11,892 |
Real estate held for sale | 20,442 | 21,236 |
Real estate under development | 101,405 | 111,373 |
Land available for development | 17,902 | 19,153 |
Real estate held for investment, net | 184,159 | 239,719 |
Deferred tax assets | 27,141 | 17,223 |
Other assets | 14,079 | 17,982 |
Total assets | 401,968 | 452,175 |
LIABILITIES AND EQUITY | ||
Accounts payable | 12,153 | 6,734 |
Dividends Payable | 8,127 | 0 |
Accrued liabilities, including taxes | 12,749 | 13,240 |
Debt | 199,859 | 291,102 |
Deferred Gain on Sale of Property | 39,324 | 0 |
Other liabilities | 9,426 | 10,073 |
Total liabilities | 281,638 | 321,149 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 93 | 92 |
Capital in excess of par value of common stock | 184,889 | 192,762 |
Accumulated deficit | (43,670) | (41,143) |
Common stock held in treasury | (21,057) | (20,760) |
Total stockholders’ equity | 120,255 | 130,951 |
Noncontrolling interests in subsidiaries | 75 | 75 |
Total equity | 120,330 | 131,026 |
Total liabilities and equity | $ 401,968 | $ 452,175 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Real estate operations | $ 2,164 | $ 2,255 |
Leasing operations | 2,281 | 2,053 |
Hotel | 10,314 | 10,575 |
Entertainment | 5,905 | 4,143 |
Total revenues | 20,664 | 19,026 |
Cost of sales: | ||
Real estate operations | 1,976 | 2,209 |
Leasing operations | 1,685 | 862 |
Hotel | 7,165 | 7,681 |
Entertainment | 4,377 | 3,044 |
Depreciation | 2,141 | 1,682 |
Total cost of sales | 17,344 | 15,478 |
General and administrative expenses | 3,396 | 3,075 |
Profit participation in sale of The Oaks at Lakeway | 2,538 | 0 |
Gain on sales of assets | (1,115) | 0 |
Total | 22,163 | 18,553 |
Operating (loss) income | (1,499) | 473 |
Interest expense, net | (1,975) | (1,969) |
Gain (loss) on interest rate derivative instruments | 86 | (374) |
Loss on early extinguishment of debt | (532) | (837) |
Other income, net | 5 | 4 |
Loss before income taxes and equity in unconsolidated affiliates' (loss) income | (3,915) | (2,703) |
Equity in unconsolidated affiliates' (loss) income | (17) | 98 |
Benefit from income taxes | 1,262 | 922 |
Net loss and total comprehensive loss attributable to common stockholders | $ (2,670) | $ (1,683) |
Basic and diluted net loss per share attributable to common stockholders | ||
Basic and diluted net loss per share attributable to common stockholders | $ (0.33) | $ (0.21) |
Basic and diluted weighted-average shares of common stock outstanding | ||
Basic and diluted weighted-average shares of common stock outstanding | 8,101 | 8,071 |
Common Stock, Dividends, Per Share, Declared | $ 1 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flow from operating activities: | ||
Net loss | $ (2,670) | $ (1,683) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,141 | 1,682 |
Cost of real estate sold | 1,032 | 970 |
Gain on sale of assets | (1,115) | 0 |
(Gain) loss on interest rate derivative contracts | (86) | 374 |
Loss on early extinguishment of debt | 532 | 837 |
Debt issuance cost amortization and stock-based compensation | 442 | 365 |
Equity in unconsolidated affiliates' loss (income) | 17 | (98) |
Deposits | (1,156) | (114) |
Deferred income taxes | (9,775) | (22) |
Purchases and development of real estate properties | (3,668) | (3,125) |
Municipal utility district reimbursement | 2,172 | 0 |
Decrease (increase) in other assets | 2,434 | (710) |
Increase (decrease) in accounts payable, accrued liabilities and other | 812 | (3,182) |
Net cash used in operating activities | (8,888) | (4,706) |
Cash flow from investing activities: | ||
Capital expenditures | (2,301) | (13,868) |
Proceeds from sale of assets | 117,261 | 0 |
Payments on master lease obligations | (322) | |
Other, net | (100) | (187) |
Net cash provided by (used in) investing activities | 114,538 | (14,055) |
Cash flow from financing activities: | ||
Borrowings from credit facility | 15,200 | 5,500 |
Payments on credit facility | (48,746) | (1,931) |
Borrowings from project loans | 3,698 | 160,424 |
Payments on project and term loans | (62,080) | (149,882) |
Stock-based awards net payments | (236) | (158) |
Financing costs | 0 | (943) |
Net cash (used in) provided by financing activities | (92,164) | 13,010 |
Net increase (decrease) in cash and cash equivalents | 13,486 | (5,751) |
Cash and cash equivalents at beginning of year | 13,597 | 17,036 |
Cash and cash equivalents at end of period | 27,083 | 11,285 |
The Oaks at Lakeway [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||
Cash flow from investing activities: | ||
Payments on master lease obligations | $ (300) | $ 0 |
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] | Common Stock Held in Treasury [Member] | Noncontrolling Interests in Subsidiaries [Member] |
Balance at Dec. 31, 2015 | $ 136,674 | $ 136,599 | $ 91 | $ 192,122 | $ (35,144) | $ (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) | |||
Exercised and issued stock-based awards (in shares) | 37 | ||||||
Stock-based compensation | 139 | 139 | 139 | ||||
Tax benefit for stock-based awards | 132 | 132 | 132 | ||||
Tender of shares for stock-based awards | (290) | (290) | $ (290) | ||||
Tender of shares for stock-based awards (in shares) | 12 | ||||||
Total comprehensive loss | (1,683) | (1,683) | (1,683) | ||||
Balance at Mar. 31, 2016 | 134,972 | 134,897 | $ 92 | 192,392 | (36,827) | $ (20,760) | 75 |
Balance (in shares) at Mar. 31, 2016 | 9,197 | 1,105 | |||||
Balance at Dec. 31, 2016 | 131,026 | 130,951 | $ 92 | 192,762 | (41,143) | $ (20,760) | 75 |
Balance (in shares) at Dec. 31, 2016 | 9,203 | 1,105 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends, Common Stock, Cash | (8,127) | (8,127) | (8,127) | ||||
Exercised and issued stock-based awards | 63 | 63 | $ 1 | 62 | |||
Exercised and issued stock-based awards (in shares) | 40 | ||||||
Stock-based compensation | 192 | 192 | 192 | ||||
Tender of shares for stock-based awards | (297) | (297) | $ (297) | ||||
Tender of shares for stock-based awards (in shares) | 12 | ||||||
Total comprehensive loss | (2,670) | (2,670) | (2,670) | ||||
Balance at Mar. 31, 2017 | 120,330 | 120,255 | $ 93 | $ 184,889 | (43,670) | $ (21,057) | $ 75 |
Balance (in shares) at Mar. 31, 2017 | 9,243 | 1,117 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 143 | $ 143 | $ 143 |
General Information (Unaudited)
General Information (Unaudited) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 , included in Stratus Properties Inc.’s (Stratus) Annual Report on Form 10-K (Stratus 2016 Form 10-K) filed with the United States (U.S.) Securities and Exchange Commission. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments considered necessary for a fair statement of the results for the interim periods reported. With the exception of the accounting for the deferred gain on the sale of The Oaks at Lakeway, all such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three -month period ended March 31, 2017 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . |
Earnings Per Share (Unaudited)
Earnings Per Share (Unaudited) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Stratus’ basic and diluted net loss per share of common stock was calculated by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. The weighted-average shares exclude approximately 128 thousand shares of common stock for first-quarter 2017 and 125 thousand shares of common stock for first-quarter 2016 associated with restricted stock units that were anti-dilutive because of the net losses and outstanding stock options with exercise prices less than the average market price of Stratus' common stock. |
Dispositions (Notes)
Dispositions (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISPOSITIONS On February 15, 2017, Stratus sold The Oaks at Lakeway to FHF I Oaks at Lakeway, LLC for $114.0 million in cash. Net cash proceeds were $50.8 million after repayment of the Lakeway construction loan (see Note 5). Stratus used a portion of these net cash proceeds to pay indebtedness outstanding under the Comerica Bank credit facility. The parties entered into three master lease agreements at closing: (1) one covering unleased in-line retail space, with a 5-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 its master lease payment obligation, which currently approximates $170,000 per month, will decline over time until leasing is complete and all leases are assigned to the purchaser, which is projected to occur by February 2019. The hotel tenant is expected to begin paying rent and commence construction of its building in May 2017. Stratus agreed to guarantee the obligations of its selling subsidiary under the sales 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 secure its obligations under the master leases, Stratus has provided a $1.5 million irrevocable letter of credit with a three-year term. As a result of Stratus’ continuing involvement under the master lease agreements with the purchaser, the transaction does not qualify as a sale under U.S. generally accepted accounting principles. Accordingly, a deferred gain totaling $39.7 million was recorded and is being reduced by payments made under the master lease agreements, which totaled $0.3 million in first-quarter 2017. All or a portion of the deferred gain may be recognized in future periods when Stratus’ continuing involvement ends or substantially all of the risks and rewards of ownership have transferred to the buyer and any remaining obligation for Stratus' support under the master leases is less than the deferred gain. Upon the sale of The Oaks at Lakeway, HEB Grocery Company, L.P. (HEB) earned a profit participation of $2.5 million (of which $2.2 million was paid at closing), which is presented separately in the Consolidated Statements of Comprehensive Loss. On February 28, 2017, Stratus completed the sale of its 3,085-square-foot bank building and an adjacent 4.1 acre undeveloped tract of land in Barton Creek, for $3.1 million . Stratus recorded a $1.1 million gain on sales of assets in first-quarter 2017 and paid $2.1 million on the Barton Creek Village term loan (see Note 5 ). |
Fair Value Measurements (Unaudi
Fair Value Measurements (Unaudited) | 3 Months Ended |
Mar. 31, 2017 | |
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, accrued dividend 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, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Debt $ 199,859 $ 201,553 $ 291,102 $ 293,620 Interest rate swap agreement 341 341 427 427 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. Interest Rate Swap Agreement. The interest rate swap does not qualify for hedge accounting and changes in its fair value are recorded in the Consolidated Statements of Comprehensive Loss. Stratus 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 and Equity Transactions (U
Debt and Equity Transactions (Unaudited) | 3 Months Ended |
Mar. 31, 2017 | |
Capitalization, Long-term Debt and Equity [Abstract] | |
Debt and Equity Transactions [Text Block] | DEBT AND EQUITY Debt. The components of Stratus' debt are as follows (in thousands): March 31, 2017 December 31, 2016 Goldman Sachs loan $ 146,550 $ 147,025 Lakeway construction loan — 57,912 Comerica Bank credit facility 13,000 46,547 Santal construction loan 31,907 30,286 Barton Creek Village term loan 3,442 5,555 Amarra Villas credit facility 4,960 3,777 Total debt a $ 199,859 $ 291,102 a. Includes net reductions for unamortized debt issuance costs of $1.6 million at March 31, 2017 , and $2.2 million at December 31, 2016. In February 2017, Stratus repaid the Lakeway construction loan with proceeds from the sale of The Oaks at Lakeway and paid $2.1 million on the Barton Creek Village term loan (see Note 3). As of March 31, 2017, Stratus had $32.0 million available under its $45.0 million revolving loan under its Comerica Bank 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) to fund the construction of the West Killeen Market project. No amounts had been drawn as of March 31, 2017. For a description of Stratus' loans, refer to Note 7 in the Stratus 2016 Form 10-K. Interest Expense and Capitalization. Interest expense (before capitalized interest) totaled $3.3 million for first-quarter 2017 and $3.7 million for first-quarter 2016 . Stratus' capitalized interest costs totaled $1.4 million for first-quarter 2017 and $1.8 million for first-quarter 2016 , primarily related to development activities at Barton Creek in 2017, and Barton Creek and The Oaks at Lakeway in 2016. Equity. Under Stratus' Comerica Bank credit facility, Stratus is not permitted to pay a dividend on its common stock without the bank’s prior written consent. On March 15, 2017 , Stratus announced that its Board of Directors (the Board), after receiving written consent from Comerica Bank, declared a special cash dividend of $1.00 per share ( $8.1 million ) payable on April 18, 2017 , to stockholders of record on March 31, 2017 . The special cash dividend was declared after the Board’s consideration of the results of the sale of The Oaks at Lakeway. Comerica Bank’s consent to the payment of this special dividend is not indicative of the bank’s willingness to consent to the payment of future dividends. The declaration of future dividends is at the discretion of the Board, subject to the restrictions under Stratus' Comerica Bank credit facility, and will depend on Stratus' financial results, cash requirements, projected compliance with covenants in its debt agreements, outlook and other factors deemed relevant by the Board. |
Income Taxes (Unaudited)
Income Taxes (Unaudited) | 3 Months Ended |
Mar. 31, 2017 | |
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 2016 Form 10-K. Stratus had deferred tax assets (net of deferred tax liabilities) totaling $27.1 million at March 31, 2017 , and $17.2 million at December 31, 2016 . The increase in deferred tax assets of $9.9 million in 2017 is primarily associated with the deferred gain on the sale of The Oaks at Lakeway. Stratus’ income tax benefit for first-quarter 2017 includes current income tax expense of $8.5 million offset by a deferred tax benefit of $9.8 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 first-quarter 2017 and first-quarter 2016, and the U.S. Federal statutory income tax rate of 35 percent , was primarily attributable to the Texas state margin tax. |
Business Segments (Unaudited)
Business Segments (Unaudited) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments [Text Block] | BUSINESS SEGMENTS Stratus currently has four operating segments: Real Estate Operations, Leasing Operations, Hotel and Entertainment. 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 located in the greater Austin area (Lakeway); and in Magnolia, Texas, located in the greater Houston area (Magnolia). The Leasing Operations segment includes the office and retail space at the W Austin Hotel & Residences, a retail building in Barton Creek Village, the Santal multi-family project and the West Killeen Market in Killeen, Texas. The Hotel segment includes the W Austin Hotel located at the W Austin Hotel & Residences in downtown Austin, Texas. 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 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 2016 Form 10-K for further discussion). Stratus uses operating income or loss to measure the performance of each segment. General and administrative expenses, which primarily consist of employee salaries, wages and other costs, are managed on a consolidated basis and are not allocated to Stratus' operating segments. 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. The following segment information was prepared on the same basis as Stratus’ consolidated financial statements (in thousands). Real Estate Operations a Leasing Operations Hotel Entertainment Eliminations and Other b Total Three Months Ended March 31, 2017: Revenues: Unaffiliated customers $ 2,164 $ 2,281 $ 10,314 $ 5,905 $ — $ 20,664 Intersegment 13 210 91 40 (354 ) — Cost of sales, excluding depreciation 1,976 1,693 7,189 4,508 (163 ) 15,203 Depreciation 57 763 979 376 (34 ) 2,141 General and administrative expenses — — — — 3,396 c 3,396 Profit participation — 2,538 — — — 2,538 Gain on sales of assets — (1,115 ) — — — (1,115 ) Operating income (loss) $ 144 $ (1,388 ) $ 2,237 $ 1,061 $ (3,553 ) $ (1,499 ) Capital expenditures d $ 3,668 $ 2,031 $ 247 $ 23 $ — $ 5,969 Total assets at March 31, 2017 174,022 65,483 104,498 37,066 20,899 401,968 Three Months Ended March 31, 2016: Revenues: Unaffiliated customers $ 2,255 $ 2,053 $ 10,575 $ 4,143 $ — $ 19,026 Intersegment 8 136 89 33 (266 ) — Cost of sales, excluding depreciation 2,209 870 7,710 3,105 (98 ) 13,796 Depreciation 60 476 846 335 (35 ) 1,682 General and administrative expenses — — — — 3,075 3,075 Operating (loss) income $ (6 ) $ 843 $ 2,108 $ 736 $ (3,208 ) $ 473 Capital expenditures d $ 3,125 $ 13,757 $ 87 $ 24 $ — $ 16,993 Total assets at March 31, 2016 197,616 81,290 106,284 42,311 12,121 439,622 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. General and administrative costs were higher in first-quarter 2017 , compared with first-quarter 2016 , primarily reflecting charges totaling $0.3 million for professional fees and incentive compensation. d. Also includes purchases and development of residential real estate held for sale. |
New Accounting Standards (Unaud
New Accounting Standards (Unaudited) (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Standards [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NEW ACCOUNTING STANDARD 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. Stratus adopted this ASU on January 1, 2017, on a modified retrospective basis and recorded a cumulative effect adjustment of $0.1 million to its opening accumulated deficit balance. |
Subsequent Events (Unaudited) (
Subsequent Events (Unaudited) (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On April 28, 2017, a Stratus subsidiary entered into a $26.3 million construction loan with Southside Bank (the Loan) to finance the initial phase of Lantana Place, a mixed-used development project with leasable space for retail and restaurant use, anchored by a Moviehouse Theater & Eatery and a 145-room hotel site. Interest on the Loan is variable at the one-month London Interbank Offered Rate plus 2.75 percent , subject to a minimum interest rate of 3.0 percent . Payments of interest only will be due and payable monthly beginning June 1, 2017, and regularly thereafter through November 1, 2020. The principal balance of the Loan outstanding after November 1, 2020, will be payable in equal monthly installments of principal and interest based on a 30-year amortization. The Loan must be repaid in full on or before April 28, 2023. The Loan can be prepaid without penalty. As of April 28, 2017, no amounts were outstanding under the Loan. The Loan is secured by the Lantana Place project and all subsequent improvements, including all leases and rents associated with the development. The Loan contains affirmative and negative covenants usual and customary for loan agreements of this nature, including, but not limited to, a financial covenant to maintain a debt service coverage ratio of at least 1.35 to 1.00 at all times beginning on December 31, 2019. Stratus will guarantee the Loan until the development is able to maintain a debt service ratio of 1.50 to 1.00 for a period of six consecutive months . Stratus evaluated events after March 31, 2017 , 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. |
Fair Value Measurements (Unau15
Fair Value Measurements (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Debt $ 199,859 $ 201,553 $ 291,102 $ 293,620 Interest rate swap agreement 341 341 427 427 |
Debt and Equity Transactions 16
Debt and Equity Transactions (Unaudited) Summary of Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Table [Abstract] | |
Schedule of Debt [Table Text Block] | The components of Stratus' debt are as follows (in thousands): March 31, 2017 December 31, 2016 Goldman Sachs loan $ 146,550 $ 147,025 Lakeway construction loan — 57,912 Comerica Bank credit facility 13,000 46,547 Santal construction loan 31,907 30,286 Barton Creek Village term loan 3,442 5,555 Amarra Villas credit facility 4,960 3,777 Total debt a $ 199,859 $ 291,102 a. Includes net reductions for unamortized debt issuance costs of $1.6 million at March 31, 2017 , and $2.2 million at December 31, 2016. |
Business Segments (Unaudited) (
Business Segments (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Real Estate Operations a Leasing Operations Hotel Entertainment Eliminations and Other b Total Three Months Ended March 31, 2017: Revenues: Unaffiliated customers $ 2,164 $ 2,281 $ 10,314 $ 5,905 $ — $ 20,664 Intersegment 13 210 91 40 (354 ) — Cost of sales, excluding depreciation 1,976 1,693 7,189 4,508 (163 ) 15,203 Depreciation 57 763 979 376 (34 ) 2,141 General and administrative expenses — — — — 3,396 c 3,396 Profit participation — 2,538 — — — 2,538 Gain on sales of assets — (1,115 ) — — — (1,115 ) Operating income (loss) $ 144 $ (1,388 ) $ 2,237 $ 1,061 $ (3,553 ) $ (1,499 ) Capital expenditures d $ 3,668 $ 2,031 $ 247 $ 23 $ — $ 5,969 Total assets at March 31, 2017 174,022 65,483 104,498 37,066 20,899 401,968 Three Months Ended March 31, 2016: Revenues: Unaffiliated customers $ 2,255 $ 2,053 $ 10,575 $ 4,143 $ — $ 19,026 Intersegment 8 136 89 33 (266 ) — Cost of sales, excluding depreciation 2,209 870 7,710 3,105 (98 ) 13,796 Depreciation 60 476 846 335 (35 ) 1,682 General and administrative expenses — — — — 3,075 3,075 Operating (loss) income $ (6 ) $ 843 $ 2,108 $ 736 $ (3,208 ) $ 473 Capital expenditures d $ 3,125 $ 13,757 $ 87 $ 24 $ — $ 16,993 Total assets at March 31, 2016 197,616 81,290 106,284 42,311 12,121 439,622 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. General and administrative costs were higher in first-quarter 2017 , compared with first-quarter 2016 , primarily reflecting charges totaling $0.3 million for professional fees and incentive compensation. d. Also includes purchases and development of residential real estate held for sale. |
Earnings Per Share (Unaudited)
Earnings Per Share (Unaudited) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 128 | 125 | 124 |
Dispositions (Details)
Dispositions (Details) - USD ($) | Feb. 28, 2017 | Feb. 15, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Payments for (Proceeds from) Other Investing Activities | $ 322,000 | |||
Profit participation in sale of The Oaks at Lakeway | 2,538,000 | $ 0 | ||
Gain on sales of assets | (1,115,000) | 0 | ||
The Oaks at Lakeway [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from Sale of Real Estate Held-for-investment | $ 114,000,000 | |||
Proceeds from Sale of Real Estate Held-for-investment, Net of Debt Repayments | $ 50,800,000 | |||
Contractual Obligation | 170,000 | |||
Guarantee obligations, Liability Cap, percentage | 2.00% | |||
Letters of Credit Outstanding, Amount | $ 1,500,000 | |||
Disposal Group, Deferred Gain on Disposal | 39,700,000 | |||
Payments for (Proceeds from) Other Investing Activities | 300,000 | $ 0 | ||
Profit participation in sale of The Oaks at Lakeway | 2,500,000 | |||
Other nonrecurring expense paid at closing | $ 2,200,000 | |||
Barton Creek [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from Sale of Real Estate Held-for-investment | $ 3,100,000 | |||
Repayments of Debt | $ 2,100,000 |
Fair Value Measurements (Unau20
Fair Value Measurements (Unaudited) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Debt | $ 199,859 | $ 291,102 |
Interest rate swap agreement | 341 | 427 |
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] | ||
Debt | 201,553 | 293,620 |
Interest rate swap agreement | $ 341 | $ 427 |
Debt and Equity Transactions 21
Debt and Equity Transactions (Unaudited) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ 1,600,000 | $ 2,200,000 | |
Debt | 199,859,000 | 291,102,000 | |
Interest Costs Incurred | 3,300,000 | $ 3,700,000 | |
Interest Costs Capitalized | 1,400,000 | $ 1,800,000 | |
Goldman Sachs Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 146,550,000 | 147,025,000 | |
Lakeway Center Construction Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 0 | 57,912,000 | |
Comerica Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 13,000,000 | 46,547,000 | |
Santal Multi-Family [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 31,907,000 | 30,286,000 | |
Barton Creek Village Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of Debt | 2,100,000 | ||
Debt | 3,442,000 | 5,555,000 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 4,960,000 | $ 3,777,000 | |
Letter of Credit [Member] | Comerica Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | 32,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 45,000,000 | ||
Lantana Place [Member] | Construction Loans [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 9,900,000 | ||
Long-term Line of Credit | $ 0 |
Debt and Equity Transactions 22
Debt and Equity Transactions (Unaudited) Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 15, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Apr. 18, 2017 | Dec. 31, 2016 |
Dividends Payable [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 1 | $ 1 | $ 0 | ||
Dividends Payable | $ 8,127 | $ 0 | |||
Subsequent Event [Member] | |||||
Dividends Payable [Line Items] | |||||
Dividends Payable | $ 8,100 |
Income Taxes (Unaudited) (Detai
Income Taxes (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets | $ 27,141 | $ 17,223 | |
Deferred Income Tax Benefit Incl Adj for Cumulative Effect of Change in Acctg Std | 9,900 | ||
Current Income Tax Expense (Benefit) | 8,500 | ||
Deferred income tax expense (benefit) | $ (9,775) | $ (22) | |
Federal Statutory Income Tax Rate | 35.00% | 35.00% |
Business Segments (Unaudited)24
Business Segments (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Revenues: | |||
Unaffiliated customers | $ 20,664 | $ 19,026 | |
Intersegment | 0 | 0 | |
Cost of sales, excluding depreciation | 15,203 | 13,796 | |
Depreciation | 2,141 | 1,682 | |
General and administrative expenses | 3,396 | 3,075 | |
Profit participation | 2,538 | 0 | |
Gain on sales of assets | (1,115) | 0 | |
Operating income (loss) | (1,499) | 473 | |
Capital expenditures | 5,969 | 16,993 | |
Total assets | 401,968 | 439,622 | $ 452,175 |
Professional Fees and Incentive Compensation [Member] | |||
Revenues: | |||
General and administrative expenses | 300 | ||
Real Estate Operations [Member] | |||
Revenues: | |||
Unaffiliated customers | 2,164 | 2,255 | |
Intersegment | 13 | 8 | |
Cost of sales, excluding depreciation | 1,976 | 2,209 | |
Depreciation | 57 | 60 | |
General and administrative expenses | 0 | 0 | |
Profit participation | 0 | ||
Gain on sales of assets | 0 | ||
Operating income (loss) | 144 | (6) | |
Capital expenditures | 3,668 | 3,125 | |
Total assets | 174,022 | 197,616 | |
Commercial Leasing [Member] | |||
Revenues: | |||
Unaffiliated customers | 2,281 | 2,053 | |
Intersegment | 210 | 136 | |
Cost of sales, excluding depreciation | 1,693 | 870 | |
Depreciation | 763 | 476 | |
General and administrative expenses | 0 | 0 | |
Profit participation | 2,538 | ||
Gain on sales of assets | (1,115) | ||
Operating income (loss) | (1,388) | 843 | |
Capital expenditures | 2,031 | 13,757 | |
Total assets | 65,483 | 81,290 | |
Hotel [Member] | |||
Revenues: | |||
Unaffiliated customers | 10,314 | 10,575 | |
Intersegment | 91 | 89 | |
Cost of sales, excluding depreciation | 7,189 | 7,710 | |
Depreciation | 979 | 846 | |
General and administrative expenses | 0 | 0 | |
Profit participation | 0 | ||
Gain on sales of assets | 0 | ||
Operating income (loss) | 2,237 | 2,108 | |
Capital expenditures | 247 | 87 | |
Total assets | 104,498 | 106,284 | |
Entertainment Venue [Member] | |||
Revenues: | |||
Unaffiliated customers | 5,905 | 4,143 | |
Intersegment | 40 | 33 | |
Cost of sales, excluding depreciation | 4,508 | 3,105 | |
Depreciation | 376 | 335 | |
General and administrative expenses | 0 | 0 | |
Profit participation | 0 | ||
Gain on sales of assets | 0 | ||
Operating income (loss) | 1,061 | 736 | |
Capital expenditures | 23 | 24 | |
Total assets | 37,066 | 42,311 | |
Eliminations and Other [Member] | |||
Revenues: | |||
Unaffiliated customers | 0 | 0 | |
Intersegment | (354) | (266) | |
Cost of sales, excluding depreciation | (163) | (98) | |
Depreciation | (34) | (35) | |
General and administrative expenses | 3,396 | 3,075 | |
Profit participation | 0 | ||
Gain on sales of assets | 0 | ||
Operating income (loss) | (3,553) | (3,208) | |
Capital expenditures | 0 | 0 | |
Total assets | $ 20,899 | $ 12,121 |
New Accounting Standards (Una25
New Accounting Standards (Unaudited) (Details) $ in Millions | Jan. 01, 2017USD ($) |
New Accounting Standards [Abstract] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0.1 |
Subsequent Events (Unaudited) S
Subsequent Events (Unaudited) Subsequent Event (Details) - Lantana Place [Member] - Construction Loans [Member] - Subsequent Event [Member] | Apr. 28, 2017USD ($) |
Subsequent Event [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 26,300,000 |
Line of Credit Facility, Covenant Terms | The Loan contains affirmative and negative covenants usual and customary for loan agreements of this nature, including, but not limited to, a financial covenant to maintain a debt service coverage ratio of at least 1.35 to 1.00 at all times beginning on December 31, 2019. Stratus will guarantee the Loan until the development is able to maintain a debt service ratio of 1.50 to 1.00 for a period of six consecutive months |
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Long-term Line of Credit | $ 0 |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% |