Stratus Properties (STRS) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jul. 31, 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	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 14,805	$ 13,597
Restricted cash	10,597	11,892
Real estate held for sale	20,196	21,236
Real estate under development	102,974	111,373
Land available for development	12,717	19,153
Real estate held for investment, net	190,619	239,719
Deferred tax assets	29,973	17,223
Other assets	13,573	17,982
Total assets	395,454	452,175
LIABILITIES AND EQUITY
Accounts payable	11,333	6,734
Accrued liabilities, including taxes	11,193	13,240
Debt	204,168	291,102
Deferred Gain on Sale of Property	38,714	0
Other liabilities	10,410	10,073
Total liabilities	275,818	321,149
Commitments and contingencies
Stockholders’ equity:
Common stock	93	92
Capital in excess of par value of common stock	185,080	192,762
Accumulated deficit	(44,563)	(41,143)
Common stock held in treasury	(21,057)	(20,760)
Total stockholders’ equity	119,553	130,951
Noncontrolling interests in subsidiaries	83	75
Total equity	119,636	131,026
Total liabilities and equity	$ 395,454	$ 452,175

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Real estate operations	$ 4,021	$ 1,448	$ 6,185	$ 3,703
Leasing operations	1,811	2,141	4,092	4,194
Hotel	9,765	10,658	20,079	21,233
Entertainment	5,832	4,903	11,737	9,046
Total revenues	21,429	19,150	42,093	38,176
Cost of sales:
Real estate operations	3,868	1,889	5,844	4,098
Leasing operations	973	1,043	2,658	1,905
Hotel	7,436	7,676	14,601	15,357
Entertainment	4,255	3,775	8,632	6,819
Depreciation	1,756	1,983	3,897	3,665
Total cost of sales	18,288	16,366	35,632	31,844
General and administrative expenses	2,846	4,146	6,242	7,221
Profit participation in sale of The Oaks at Lakeway	0	0	2,538	0
Gain (Loss) on Disposition of Assets	0	0	1,115	0
Total	21,134	20,512	43,297	39,065
Operating income (loss)	295	(1,362)	(1,204)	(889)
Interest expense, net	(1,508)	(2,346)	(3,483)	(4,315)
(Loss) gain on interest rate derivative instruments	(4)	(101)	82	(475)
Loss on early extinguishment of debt	0	0	(532)	(837)
Other income, net	13	4	18	8
Loss before income taxes and equity in unconsolidated affiliates' (loss) income	(1,204)	(3,805)	(5,119)	(6,508)
Equity in unconsolidated affiliates' (loss) income	(2)	(25)	(19)	73
Benefit from income taxes	321	1,347	1,583	2,269
Net loss	(885)	(2,483)	(3,555)	(4,166)
Net Income (Loss) Attributable to Noncontrolling Interest	8	0	8	0
Net loss and total comprehensive loss attributable to common stockholders	$ (893)	$ (2,483)	$ (3,563)	$ (4,166)
Basic and diluted net loss per share attributable to common stockholders
Basic and diluted net loss per share attributable to common stockholders	$ (0.11)	$ (0.31)	$ (0.44)	$ (0.52)
Basic and diluted weighted-average shares of common stock outstanding
Basic and diluted weighted-average shares of common stock outstanding	8,127	8,092	8,114	8,082
Common Stock, Dividends, Per Share, Declared	$ 0	$ 0	$ 1	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flow from operating activities:
Net loss	$ (3,555)	$ (4,166)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	3,897	3,665
Cost of real estate sold	3,897	1,691
Gain on sale of assets	(1,115)	0
(Gain) loss on interest rate derivative contracts	(82)	475
Loss on early extinguishment of debt	532	837
Debt issuance cost and share based compensation	647	698
Equity in unconsolidated affiliates' loss (income)	19	(73)
Deposits	(851)	21
Deferred income taxes	(12,607)	(38)
Purchases and development of real estate properties	(7,974)	(7,629)
Municipal utility district reimbursement	2,172	0
Decrease (increase) in other assets	2,205	(5,843)
(Increase) decrease in accounts payable, accrued liabilities and other	(895)	98
Net cash used in operating activities	(13,710)	(10,264)
Cash flow from investing activities:
Capital expenditures	(5,100)	(22,435)
Proceeds from sale of assets	117,261	0
Payments on master lease obligations	(927)	0
Payments on master lease obligations	(48)	(17)
Net cash provided by (used in) investing activities	111,186	(22,452)
Cash flow from financing activities:
Borrowings from credit facility	20,200	12,000
Payments on credit facility	(51,775)	(3,139)
Borrowings from project loans	7,766	168,875
Payments on project and term loans	(63,723)	(150,345)
Payments of Dividends	8,127	0
Stock-based awards net payments	(234)	(158)
Financing costs	(375)	(987)
Net cash (used in) provided by financing activities	(96,268)	26,246
Net increase (decrease) in cash and cash equivalents	1,208	(6,470)
Cash and cash equivalents at beginning of year	13,597	17,036
Cash and cash equivalents at end of period	$ 14,805	$ 10,566

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	333	333		333
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	(4,166)	(4,166)			(4,166)
Balance at Jun. 30, 2016	132,683	132,608	$ 92	192,586	(39,310)	$ (20,760)	75
Balance (in shares) at Jun. 30, 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	383	383		383
Tender of shares for stock-based awards	(297)	(297)				$ (297)
Tender of shares for stock-based awards (in shares)						12
Total comprehensive loss	(3,555)	(3,563)			(3,563)
Other Comprehensive Income (Loss), Net of Tax							8
Balance at Jun. 30, 2017	119,636	119,553	$ 93	$ 185,080	(44,563)	$ (21,057)	$ 83
Balance (in shares) at Jun. 30, 2017			9,243			1,117
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment for Cumulative Effect of Change in Accounting for Stock-Based Compensation	$ 143	$ 143			$ 143

General Information (Unaudited)

General Information (Unaudited)	6 Months Ended
	Jun. 30, 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 and six -month periods ended June 30, 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)	6 Months Ended
	Jun. 30, 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 102 thousand shares of common stock for second-quarter 2017 , 123 thousand shares of common stock for second-quarter 2016 , 115 thousand shares of common stock for the first six months of 2017 and 124 thousand shares of common stock for the first six months of 2016 associated with outstanding stock options with exercise prices less than the average market price of Stratus' common stock and restricted stock units that were anti-dilutive.

Dispositions (Notes)

Dispositions (Notes)	6 Months Ended
	Jun. 30, 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 will average $170 thousand 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 February 2019. The hotel tenant began paying rent in May 2017 and construction of the hotel is expected to commence in third-quarter 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 $0.9 million for the first six months of 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 Stratus' remaining obligation 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 gain on the sale of $1.1 million and paid $2.1 million on the Barton Creek Village term loan (see Note 5 ).

Fair Value Measurements (Unaudi

Fair Value Measurements (Unaudited)	6 Months Ended
	Jun. 30, 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 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): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Debt $ 204,168 $ 205,908 $ 291,102 $ 293,620 Interest rate swap agreement 345 345 427 427 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)	6 Months Ended
	Jun. 30, 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): June 30, 2017 December 31, 2016 Goldman Sachs loan $ 146,113 $ 147,025 Lakeway construction loan — 57,912 Santal construction loan 32,046 30,286 Comerica Bank credit facility 14,972 46,547 Amarra Villas credit facility 4,280 3,777 Barton Creek Village term loan 3,420 5,555 West Killeen Market construction loan 3,337 — Total debt a $ 204,168 $ 291,102 a. Includes net reductions for unamortized debt issuance costs of $1.6 million at June 30, 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 June 30, 2017 , Stratus had $30.0 million available under its $45.0 million revolving loan under its Comerica Bank credit facility. On April 28, 2017, Lantana Place, LLC., a wholly owned subsidiary of Stratus, entered into a $26.3 million construction loan with Southside Bank (the Lantana Place construction loan) to finance the initial phase of Lantana Place, a 320,000 -square-foot, mixed-use development project in southwest Austin. Construction of the first phase of Lantana Place began in June 2017. No amounts were drawn on the Lantana Place construction loan as of June 30, 2017. Interest 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, through November 1, 2020. The principal balance outstanding after November 1, 2020, will be payable in equal monthly installments of principal and interest based on a 30-year amortization. Outstanding amounts must be repaid in full on or before April 28, 2023, and can be prepaid without penalty. Outstanding amounts will be secured by the Lantana Place project and all subsequent improvements, including all leases and rents associated with the development. The agreement 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 outstanding amounts under 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. For a description of Stratus' outstanding loans, refer to Note 7 in the Stratus 2016 Form 10-K. Interest Expense and Capitalization. Interest expense (before capitalized interest) totaled $2.9 million in second-quarter 2017 , $3.9 million in second-quarter 2016 , $6.3 million for the first six months of 2017 and $7.6 million for the first six months of 2016 . Stratus' capitalized interest costs totaled $1.4 million in second-quarter 2017 , $1.6 million in second-quarter 2016 , $2.8 million for the first six months of 2017 and $3.3 million for the first six months of 2016 , primarily related to development activities at Barton Creek in 2017, and development activities at Barton Creek and The Oaks at Lakeway in 2016. Equity. Stratus' Comerica Bank credit facility requires the bank's prior written consent to pay a dividend on Stratus' common stock. On March 15, 2017 , Stratus' 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 ), which was paid 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)	6 Months Ended
	Jun. 30, 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 $30.0 million at June 30, 2017 , and $17.2 million at December 31, 2016 . The increase in deferred tax assets of $12.8 million in 2017 is primarily associated with the gain on the sale of The Oaks at Lakeway, which is taxable but was deferred under U.S. Generally Accepted Accounting Principles. Stratus’ income tax benefit for the first six months of 2017 includes current income tax expense of $11.0 million offset by a deferred tax benefit of $12.6 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 six months of 2017 and the first six months of 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)	6 Months Ended
	Jun. 30, 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 June 30, 2017: Revenues: Unaffiliated customers $ 4,021 $ 1,811 $ 9,765 $ 5,832 $ — $ 21,429 Intersegment 8 221 82 85 (396 ) — Cost of sales, excluding depreciation 3,868 980 7,456 4,449 (221 ) 16,532 Depreciation 57 568 789 377 (35 ) 1,756 General and administrative expenses — — — — 2,846 2,846 Operating income (loss) $ 104 $ 484 $ 1,602 $ 1,091 $ (2,986 ) $ 295 Capital expenditures c $ 4,306 $ 2,748 $ 11 $ 40 $ — $ 7,105 Total assets at June 30, 2017 160,713 69,629 103,154 37,392 24,566 395,454 Three Months Ended June 30, 2016: Revenues: Unaffiliated customers $ 1,448 $ 2,141 $ 10,658 $ 4,903 $ — $ 19,150 Intersegment 8 225 71 51 (355 ) — Cost of sales, excluding depreciation 1,889 1,051 7,719 3,927 (203 ) 14,383 Depreciation 54 766 851 371 (59 ) 1,983 General and administrative expenses — — — — 4,146 4,146 Operating (loss) income $ (487 ) $ 549 $ 2,159 $ 656 $ (4,239 ) $ (1,362 ) Capital expenditures c $ 4,504 $ 8,138 $ 174 $ 255 $ — $ 13,071 Total assets at June 30, 2016 180,039 116,554 105,167 39,405 13,093 454,258 Six Months Ended June 30, 2017: Revenues: Unaffiliated customers $ 6,185 $ 4,092 $ 20,079 $ 11,737 $ — $ 42,093 Intersegment 21 431 173 125 (750 ) — Cost of sales, excluding depreciation 5,844 2,673 14,645 8,957 (384 ) 31,735 Depreciation 114 1,331 1,768 753 (69 ) 3,897 General and administrative expenses — — — — 6,242 6,242 Profit participation — 2,538 — — — 2,538 Gain on sales of assets — (1,115 ) — — — (1,115 ) Operating income (loss) $ 248 $ (904 ) $ 3,839 $ 2,152 $ (6,539 ) $ (1,204 ) Capital expenditures c $ 7,974 $ 4,779 $ 258 $ 63 $ — $ 13,074 Six Months Ended June 30, 2016: Revenues: Unaffiliated customers $ 3,703 $ 4,194 $ 21,233 $ 9,046 $ — $ 38,176 Intersegment 16 361 160 84 (621 ) — Cost of sales, excluding depreciation 4,098 1,921 15,429 7,032 (301 ) 28,179 Depreciation 114 1,242 1,697 706 (94 ) 3,665 General and administrative expenses — — — — 7,221 7,221 Operating (loss) income $ (493 ) $ 1,392 $ 4,267 $ 1,392 $ (7,447 ) $ (889 ) Capital expenditures c $ 7,629 $ 21,895 $ 261 $ 279 $ — $ 30,064 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. Also includes purchases and development of residential real estate held for sale.

New Accounting Standards (Unaud

New Accounting Standards (Unaudited) (Notes)	6 Months Ended
	Jun. 30, 2017
New Accounting Standards [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NEW ACCOUNTING STANDARD In March 2016, the Financial Accounting Standards Board issued an Accounting Standards Update 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)	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS On August 3, 2017, Stratus extended the maturity of its credit facility with Comerica Bank by three months to November 30, 2017. Stratus is currently negotiating a modification and a longer-term extension of the credit facility, which is expected to close by the November 2017 maturity. In August 2017, Stratus finalized a 99 -year ground lease for 72 acres in College Station, Texas, for Jones Crossing, a new HEB Grocery Company, L.P.-anchored, approximately $50 million , mixed-use project planned for approximately 258,000 square feet of commercial space. Stratus evaluated events after June 30, 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)	6 Months Ended
	Jun. 30, 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): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Debt $ 204,168 $ 205,908 $ 291,102 $ 293,620 Interest rate swap agreement 345 345 427 427

Debt and Equity Transactions 16

Debt and Equity Transactions (Unaudited) Summary of Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Table [Abstract]
Schedule of Debt [Table Text Block]	The components of Stratus' debt are as follows (in thousands): June 30, 2017 December 31, 2016 Goldman Sachs loan $ 146,113 $ 147,025 Lakeway construction loan — 57,912 Santal construction loan 32,046 30,286 Comerica Bank credit facility 14,972 46,547 Amarra Villas credit facility 4,280 3,777 Barton Creek Village term loan 3,420 5,555 West Killeen Market construction loan 3,337 — Total debt a $ 204,168 $ 291,102 a. Includes net reductions for unamortized debt issuance costs of $1.6 million at June 30, 2017 , and $2.2 million at December 31, 2016.

Business Segments (Unaudited) (

Business Segments (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information by Segment [Table Text Block]	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 June 30, 2017: Revenues: Unaffiliated customers $ 4,021 $ 1,811 $ 9,765 $ 5,832 $ — $ 21,429 Intersegment 8 221 82 85 (396 ) — Cost of sales, excluding depreciation 3,868 980 7,456 4,449 (221 ) 16,532 Depreciation 57 568 789 377 (35 ) 1,756 General and administrative expenses — — — — 2,846 2,846 Operating income (loss) $ 104 $ 484 $ 1,602 $ 1,091 $ (2,986 ) $ 295 Capital expenditures c $ 4,306 $ 2,748 $ 11 $ 40 $ — $ 7,105 Total assets at June 30, 2017 160,713 69,629 103,154 37,392 24,566 395,454 Three Months Ended June 30, 2016: Revenues: Unaffiliated customers $ 1,448 $ 2,141 $ 10,658 $ 4,903 $ — $ 19,150 Intersegment 8 225 71 51 (355 ) — Cost of sales, excluding depreciation 1,889 1,051 7,719 3,927 (203 ) 14,383 Depreciation 54 766 851 371 (59 ) 1,983 General and administrative expenses — — — — 4,146 4,146 Operating (loss) income $ (487 ) $ 549 $ 2,159 $ 656 $ (4,239 ) $ (1,362 ) Capital expenditures c $ 4,504 $ 8,138 $ 174 $ 255 $ — $ 13,071 Total assets at June 30, 2016 180,039 116,554 105,167 39,405 13,093 454,258 Six Months Ended June 30, 2017: Revenues: Unaffiliated customers $ 6,185 $ 4,092 $ 20,079 $ 11,737 $ — $ 42,093 Intersegment 21 431 173 125 (750 ) — Cost of sales, excluding depreciation 5,844 2,673 14,645 8,957 (384 ) 31,735 Depreciation 114 1,331 1,768 753 (69 ) 3,897 General and administrative expenses — — — — 6,242 6,242 Profit participation — 2,538 — — — 2,538 Gain on sales of assets — (1,115 ) — — — (1,115 ) Operating income (loss) $ 248 $ (904 ) $ 3,839 $ 2,152 $ (6,539 ) $ (1,204 ) Capital expenditures c $ 7,974 $ 4,779 $ 258 $ 63 $ — $ 13,074 Six Months Ended June 30, 2016: Revenues: Unaffiliated customers $ 3,703 $ 4,194 $ 21,233 $ 9,046 $ — $ 38,176 Intersegment 16 361 160 84 (621 ) — Cost of sales, excluding depreciation 4,098 1,921 15,429 7,032 (301 ) 28,179 Depreciation 114 1,242 1,697 706 (94 ) 3,665 General and administrative expenses — — — — 7,221 7,221 Operating (loss) income $ (493 ) $ 1,392 $ 4,267 $ 1,392 $ (7,447 ) $ (889 ) Capital expenditures c $ 7,629 $ 21,895 $ 261 $ 279 $ — $ 30,064 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. 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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 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	102	123	115	124

Dispositions (Details)

Dispositions (Details) $ in Thousands	Feb. 28, 2017USD ($)ft²a	Feb. 15, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments on master lease obligations					$ 927	$ 0
Profit participation in sale of The Oaks at Lakeway			$ 0	$ 0	2,538	0
Gain (Loss) on Disposition of Assets			0	$ 0	1,115	$ 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
Proceeds from Sale of Real Estate Held-for-investment, Net of Debt Repayments		$ 50,800
Contractual Obligation			$ 170		170
Guarantee obligations, Liability Cap, percentage		2.00%
Letters of Credit Outstanding, Amount		$ 1,500
Disposal Group, Deferred Gain on Disposal		39,700
Payments on master lease obligations					900
Profit participation in sale of The Oaks at Lakeway					2,500
Other nonrecurring expense paid at closing		$ 2,200
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
Repayments of Debt					$ 2,100
Lakeway Master Lease Retail [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lessee Leasing Arrangements, Operating Leases, Term of Contract		5 years
Lakeway Master Lease Unleased 3 [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lessee Leasing Arrangements, Operating Leases, Term of Contract		10 years
Jones Crossing [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lessee Leasing Arrangements, Operating Leases, Term of Contract		15 years
Lakeway Master Lease Hotel [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lessee Leasing Arrangements, Operating Leases, Term of Contract		99 years
Barton Creek [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Rentable Area | ft²	3,085
Area of Land | a	4

Fair Value Measurements (Unau20

Fair Value Measurements (Unaudited) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Carrying Amount, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Debt	$ 204,168	$ 291,102
Interest rate swap agreement	345	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	205,908	293,620
Interest rate swap agreement	$ 345	$ 427

Debt and Equity Transactions 21

Debt and Equity Transactions (Unaudited) (Details) ft² in Thousands	Apr. 28, 2017USD ($)	Jun. 30, 2017USD ($)ft²	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)ft²	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Debt		$ 204,168,000		$ 204,168,000		$ 291,102,000
Unamortized Debt Issuance Expense		1,600,000		1,600,000		2,200,000
Interest Costs Incurred		2,900,000	$ 3,900,000	6,300,000	$ 7,600,000
Interest Costs Capitalized		1,400,000	$ 1,600,000	2,800,000	$ 3,300,000
Goldman Sachs Loan [Member]
Debt Instrument [Line Items]
Debt		146,113,000		146,113,000		147,025,000
Lakeway Center Construction Loan [Member]
Debt Instrument [Line Items]
Debt		0		0		57,912,000
Santal Multi-Family [Member]
Debt Instrument [Line Items]
Debt		32,046,000		32,046,000		30,286,000
Comerica Credit Facility [Member]
Debt Instrument [Line Items]
Debt		14,972,000		14,972,000		46,547,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Debt Instrument [Line Items]
Debt		4,280,000		4,280,000		3,777,000
Barton Creek Village Term Loan [Member]
Debt Instrument [Line Items]
Debt		3,420,000		3,420,000		5,555,000
Repayments of Debt				2,100,000
West Killeen Market construction loan [Member]
Debt Instrument [Line Items]
Debt		3,337,000		3,337,000		$ 0
Amarra Drive credit facility [Member]
Debt Instrument [Line Items]
Long-term Debt and Capital Lease Obligations, Including Current Maturities		0		0
Letter of Credit [Member] | Comerica Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity		30,000,000		30,000,000
Line of Credit Facility, Maximum Borrowing Capacity		$ 45,000,000		$ 45,000,000
Lantana Place [Member]
Debt Instrument [Line Items]
Net Rentable Area | ft²		320		320
Lantana Place [Member] | Construction Loans [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 26,300,000
Debt Instrument, Basis Spread on Variable Rate	2.75%
Line of Credit Facility, Covenant Terms	The agreement 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 outstanding amounts under 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.
Lantana Place [Member] | Minimum [Member] | Construction Loans [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.00%

Debt and Equity Transactions 22

Debt and Equity Transactions (Unaudited) Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 18, 2017	Mar. 15, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Dividends Payable [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 1	$ 0	$ 0	$ 1	$ 0
Dividends, Common Stock, Cash	$ 8.1

Income Taxes (Unaudited) (Detai

Income Taxes (Unaudited) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 29,973		$ 17,223
Deferred Income Tax Benefit Incl Adj for Cumulative Effect of Change in Acctg Std	12,800
Current Income Tax Expense (Benefit)	11,000
Deferred income tax expense (benefit)	$ (12,607)	$ (38)
Federal Statutory Income Tax Rate	35.00%	35.00%

Business Segments (Unaudited)24

Business Segments (Unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenues:
Unaffiliated customers	$ 21,429	$ 19,150	$ 42,093	$ 38,176
Intersegment	0	0	0	0
Cost of sales, excluding depreciation	16,532	14,383	31,735	28,179
Depreciation	1,756	1,983	3,897	3,665
General and administrative expenses	2,846	4,146	6,242	7,221
Profit participation	0	0	2,538	0
Gain (Loss) on Disposition of Assets	0	0	1,115	0
Operating income (loss)	295	(1,362)	(1,204)	(889)
Capital expenditures	7,105	13,071	13,074	30,064
Total assets	395,454	454,258	395,454	454,258	$ 452,175
Real Estate Operations [Member]
Revenues:
Unaffiliated customers	4,021	1,448	6,185	3,703
Intersegment	8	8	21	16
Cost of sales, excluding depreciation	3,868	1,889	5,844	4,098
Depreciation	57	54	114	114
General and administrative expenses	0	0	0	0
Profit participation			0
Gain (Loss) on Disposition of Assets			0
Operating income (loss)	104	(487)	248	(493)
Capital expenditures	4,306	4,504	7,974	7,629
Total assets	160,713	180,039	160,713	180,039
Commercial Leasing [Member]
Revenues:
Unaffiliated customers	1,811	2,141	4,092	4,194
Intersegment	221	225	431	361
Cost of sales, excluding depreciation	980	1,051	2,673	1,921
Depreciation	568	766	1,331	1,242
General and administrative expenses	0	0	0	0
Profit participation			2,538
Gain (Loss) on Disposition of Assets			1,115
Operating income (loss)	484	549	(904)	1,392
Capital expenditures	2,748	8,138	4,779	21,895
Total assets	69,629	116,554	69,629	116,554
Hotel [Member]
Revenues:
Unaffiliated customers	9,765	10,658	20,079	21,233
Intersegment	82	71	173	160
Cost of sales, excluding depreciation	7,456	7,719	14,645	15,429
Depreciation	789	851	1,768	1,697
General and administrative expenses	0	0	0	0
Profit participation			0
Gain (Loss) on Disposition of Assets			0
Operating income (loss)	1,602	2,159	3,839	4,267
Capital expenditures	11	174	258	261
Total assets	103,154	105,167	103,154	105,167
Entertainment Venue [Member]
Revenues:
Unaffiliated customers	5,832	4,903	11,737	9,046
Intersegment	85	51	125	84
Cost of sales, excluding depreciation	4,449	3,927	8,957	7,032
Depreciation	377	371	753	706
General and administrative expenses	0	0	0	0
Profit participation			0
Gain (Loss) on Disposition of Assets			0
Operating income (loss)	1,091	656	2,152	1,392
Capital expenditures	40	255	63	279
Total assets	37,392	39,405	37,392	39,405
Eliminations and Other [Member]
Revenues:
Unaffiliated customers	0	0	0	0
Intersegment	(396)	(355)	(750)	(621)
Cost of sales, excluding depreciation	(221)	(203)	(384)	(301)
Depreciation	(35)	(59)	(69)	(94)
General and administrative expenses	2,846	4,146	6,242	7,221
Profit participation			0
Gain (Loss) on Disposition of Assets			0
Operating income (loss)	(2,986)	(4,239)	(6,539)	(7,447)
Capital expenditures	0	0	0	0
Total assets	$ 24,566	$ 13,093	$ 24,566	$ 13,093

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) ft² in Thousands, $ in Millions	Apr. 28, 2017USD ($)	Aug. 31, 2017USD ($)ft²a	Jun. 30, 2017ft²
Jones Crossing [Domain] | Subsequent Event [Member]
Subsequent Event [Line Items]
Lessor Leasing Arrangements, Operating Leases, Term of Contract		99 years
Area of Land | a		72
Net Rentable Area | ft²		258
Capital Lease Obligations | $		$ 50
Lantana Place [Member]
Subsequent Event [Line Items]
Net Rentable Area | ft²			320
Lantana Place [Member] | Construction Loans [Member]
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity | $	$ 26.3
Line of Credit Facility, Covenant Terms	The agreement 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 outstanding amounts under 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%
Minimum [Member] | Lantana Place [Member] | Construction Loans [Member]
Subsequent Event [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.00%