Stratus Properties (STRS) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018	Jun. 30, 2017
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, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		8,153,370
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 149.3

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 15,883	$ 14,611
Restricted cash	17,352	24,779
Real estate held for sale	22,306	22,612
Real estate under development	144,352	118,484
Land available for development	15,407	14,804
Real estate held for investment, net	187,859	188,390
Deferred tax assets	11,965	11,461
Other assets	11,304	10,852
Total assets	426,428	405,993
LIABILITIES AND EQUITY
Accounts payable	22,239	22,809
Accrued liabilities, including taxes	7,282	13,429
Debt	249,113	221,470
Deferred Gain on Sale of Property	11,036	11,320
Other liabilities	11,244	9,575
Total liabilities	300,914	278,603
Commitments and contingencies
Stockholders’ equity:
Common stock	93	93
Capital in excess of par value of common stock	185,592	185,395
Accumulated deficit	(38,991)	(37,121)
Common stock held in treasury	(21,260)	(21,057)
Total stockholders’ equity	125,434	127,310
Noncontrolling interests in subsidiaries	80	80
Total equity	125,514	127,390
Total liabilities and equity	$ 426,428	$ 405,993

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Real estate operations	$ 1,194	$ 2,164
Leasing operations	2,004	2,281
Hotel	9,322	10,314
Entertainment	5,245	5,905
Total revenues	17,765	20,664
Cost of sales:
Real estate operations	1,566	1,976
Leasing operations	1,182	1,685
Hotel	7,029	7,165
Entertainment	3,968	4,377
Depreciation	1,942	2,141
Total cost of sales	15,687	17,344
General and administrative expenses	2,981	3,396
Profit participation in sale of The Oaks at Lakeway	0	2,538
Gain on Disposition of Assets	0	(1,115)
Total	18,668	22,163
Operating loss	(903)	(1,499)
Interest expense, net	(1,559)	(1,975)
Gain on interest rate derivative instruments	178	86
Loss on early extinguishment of debt	0	(532)
Other income, net	11	5
Loss before income taxes and equity in unconsolidated affiliates' loss	(2,273)	(3,915)
Equity in unconsolidated affiliates' loss	(3)	(17)
Benefit from income taxes	406	1,262
Net loss	(1,870)	(2,670)
Net loss and total comprehensive loss attributable to common stockholders	$ (1,870)	$ (2,670)
Earnings Per Share, Basic and Diluted	$ (0.23)	$ (0.33)
Weighted Average Number of Shares Outstanding, Basic and Diluted	8,137	8,101
Common Stock, Dividends, Per Share, Declared	$ 0	$ 1

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flow from operating activities:
Net loss	$ (1,870)	$ (2,670)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,942	2,141
Cost of real estate sold	403	1,032
Gain on sale of assets	0	(1,115)
Gain on interest rate derivative contracts	(178)	(86)
Loss on early extinguishment of debt	0	532
Debt issuance cost and share based compensation	412	442
Equity in unconsolidated affiliates' loss	3	17
Increase (decrease) in deposits	205	(1,156)
Deferred income taxes	(504)	(9,775)
Purchases and development of real estate properties	(3,612)	(3,668)
Municipal utility district reimbursement	0	2,172
(Increase) decrease in other assets	(822)	299
(Decrease) increase in accounts payable, accrued liabilities and other	(4,963)	812
Net cash used in operating activities	(8,984)	(11,023)
Cash flow from investing activities:
Capital expenditures	(24,376)	(2,301)
Proceeds from sale of assets	0	117,261
Payments on master lease obligations	(388)	(322)
Payments for (Proceeds from) Other Investing Activities	(30)	(100)
Net cash (used in) provided by investing activities	(24,794)	114,538
Cash flow from financing activities:
Borrowings from credit facility	16,300	15,200
Payments on credit facility	(1,075)	(48,746)
Borrowings from project loans	13,164	3,698
Payments on project and term loans	(563)	(62,080)
Stock-based awards net payments	(203)	(236)
Net cash provided by (used in) financing activities	27,623	(92,164)
Net (decrease) increase in cash, cash equivalents and restricted cash	(6,155)	11,351
Cash, cash equivalents and restricted cash at beginning of year	39,390	25,489
Cash, cash equivalents and restricted cash at end of period	$ 33,235	$ 36,840

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, 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]
Adjustment for Cumulative Effect of Change in Accounting for Stock-Based Compensation	143	143			143
Balance at Dec. 31, 2017	127,390	127,310	$ 93	185,395	(37,121)	$ (21,057)	80
Balance (in shares) at Dec. 31, 2017			9,250			1,117
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercised and issued stock-based awards	0	0	$ 0	0
Exercised and issued stock-based awards (in shares)			27
Stock-based compensation	197	197		197
Tender of shares for stock-based awards	(203)	(203)				$ (203)
Tender of shares for stock-based awards (in shares)						7
Total comprehensive loss	(1,870)	(1,870)			(1,870)
Other Comprehensive Income (Loss), Net of Tax							0
Balance at Mar. 31, 2018	$ 125,514	$ 125,434	$ 93	$ 185,592	$ (38,991)	$ (21,260)	$ 80
Balance (in shares) at Mar. 31, 2018			9,277			1,124

General Information (Unaudited)

General Information (Unaudited)	3 Months Ended
	Mar. 31, 2018
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, 2017 , included in Stratus Properties Inc.’s (Stratus) Annual Report on Form 10-K (Stratus 2017 Form 10-K) filed with the United States (U.S.) Securities and Exchange Commission. The information furnished herein reflects all adjustments that are, in the opinion of management, 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, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 .

Earnings Per Share (Unaudited)

Earnings Per Share (Unaudited)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	EARNINGS PER SHARE Stratus’ 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 107 thousand shares of common stock for first-quarter 2018 and 128 thousand shares for first-quarter 2017 , 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, 2018
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	DISPOSITIONS The Oaks at Lakeway. 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. 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. As specified conditions are met, primarily consisting of the tenant executing a lease, commencing payment of rent and taking occupancy, leases will be assigned to the purchaser and the corresponding property will be removed from the master lease, reducing Stratus' master lease payment obligations. Stratus' master lease payment obligation, which currently approximates $180 thousand per month, is expected to decline over time until leasing is complete and all leases are assigned to the purchaser. 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. At the date of sale, Stratus allocated the purchase price for The Oaks at Lakeway between two performance obligations based on the relative fair values of each. The first performance obligation, to deliver the completed and leased portion of the property, was performed on the date of sale. The second performance obligation was to complete construction of the remaining buildings and leasing of the vacant space. The obligations under master leases were considered variable consideration and are recorded as reductions to the contract liability. The hotel pad was leased to a hotel operator under a ground lease at the date of sale. However, the hotel tenant had not commenced rent payments or construction of the hotel. At the date of the sale, primarily because of the uncertainty related to the hotel tenant’s performance under its ground lease, the probability-weighted estimate of the obligations under the master leases reduced the sale consideration such that no gain was recognized on the sale. Once the hotel tenant began paying rent in May 2017 and obtained construction financing and commenced construction of the hotel in August 2017, the probability-weighted estimate of Stratus’ obligations under the master leases was significantly reduced, and a gain of $24.3 million related to the first performance obligation was recognized in third-quarter 2017. A contract liability of $11.0 million is presented as a deferred gain in the consolidated balance sheets at March 31, 2018 . The contract liability was reduced in first-quarter 2018 by $0.3 million primarily related to master lease payments. The contract liability, as reduced by future master lease payments, will be recognized as additional gain as Stratus fulfills the remaining performance obligation. Upon the sale of The Oaks at Lakeway, 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. Barton Creek Village. On February 28, 2017, Stratus completed the sale of its 3,085 -square-foot bank building and an adjacent undeveloped 4.1 acre tract of land in Barton Creek, for $3.1 million and recorded a gain on the sale of $1.1 million . In connection with the sale, a $2.1 million paydown was made on the Barton Creek Village term loan and Stratus plans to use the gross sale proceeds on a deferred basis to acquire qualifying replacement property.

Fair Value Measurements (Unaudi

Fair Value Measurements (Unaudited)	3 Months Ended
	Mar. 31, 2018
Fair Value Measurements [Abstract]
Fair Value Measurements [Text Block]	FAIR VALUE MEASUREMENTS Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The carrying value for certain Stratus financial instruments (i.e., cash and cash equivalents, restricted cash, accounts payable and accrued liabilities) approximates fair value because of their short-term nature and generally negligible credit losses. A summary of the carrying amount and fair value of Stratus' other financial instruments follows (in thousands): March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate swap agreement $ 44 $ 44 $ — $ — Liabilities: Debt $ 249,113 $ 252,451 $ 221,470 $ 224,632 Interest rate swap agreement — — 134 134 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, 2018
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, 2018 December 31, 2017 Goldman Sachs loan $ 144,692 $ 145,195 Comerica Bank credit facility 40,990 25,765 Santal Phase I construction loan 31,890 31,864 Barton Creek Village term loan 3,352 3,375 Amarra Villas credit facility 6,361 5,247 West Killeen Market construction loan 5,647 5,378 Jones Crossing construction loan 7,656 4,646 Lantana Place construction loan 8,525 — Total debt a $ 249,113 $ 221,470 a. Includes net reductions for unamortized debt issuance costs of $2.3 million at March 31, 2018 , and $2.1 million at December 31, 2017. As of March 31, 2018 , Stratus had $4.0 million available under its $45.0 million Comerica Bank revolving credit facility. Stratus is in the process of finalizing the terms and documenting a modification and longer-term extension of its Comerica Bank revolving credit facility, which matures in November 2018. For a description of Stratus' debt, refer to Note 6 in the Stratus 2017 Form 10-K. Interest Expense and Capitalization. Interest costs (before capitalized interest) totaled $3.4 million in first-quarter 2018 and $3.3 million in first-quarter 2017 . Stratus' capitalized interest costs totaled $1.8 million in first-quarter 2018 and $1.4 million in first-quarter 2017 , primarily related to development activities at Barton Creek. 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)	3 Months Ended
	Mar. 31, 2018
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 7 in the Stratus 2017 Form 10-K. Stratus had deferred tax assets (net of deferred tax liabilities) totaling $12.0 million at March 31, 2018 , and $11.5 million at December 31, 2017 . Stratus’ income tax benefit for first-quarter 2018 includes a deferred tax benefit of $0.5 million , partly offset by income tax expense of a 0.1 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 2018 and first-quarter 2017 , and the U.S. Federal statutory income tax rate of 21 percent for 2018 and 35 percent for 2017, was primarily attributable to the Texas state margin tax.

Business Segments (Unaudited)

Business Segments (Unaudited)	3 Months Ended
	Mar. 31, 2018
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, including Santal Phase II, the Circle C community, Lantana Place and the condominium units at the W Austin Hotel & Residences); in Lakeway, Texas, located in the greater Austin area (Lakeway); in College Station, Texas (Jones Crossing); 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, Santal Phase I 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. 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. Revenues From Contracts with Customers. Stratus' revenues from contracts with customers for the first quarters of 2018 and 2017 follow (in thousands): Three Months Ended March 31, 2018 2017 Real Estate Operations: Developed property sales $ 1,155 $ 2,133 Commissions and other 39 31 1,194 2,164 Leasing Operations: Rental revenue 2,004 2,281 2,004 2,281 Hotel: Rooms, food and beverage 8,694 9,789 Other 628 525 9,322 10,314 Entertainment: Event revenue 4,649 5,295 Other 596 610 5,245 5,905 Total Revenues from Contracts with Unaffiliated Customers $ 17,765 $ 20,664 Financial Information by Business Segment. 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, 2018: Revenues: Unaffiliated customers $ 1,194 $ 2,004 $ 9,322 $ 5,245 $ — $ 17,765 Intersegment 8 251 72 14 (345 ) — Cost of sales, excluding depreciation 1,566 1,190 7,038 4,136 (185 ) 13,745 Depreciation 61 633 895 388 (35 ) 1,942 General and administrative expenses — — — — 2,981 2,981 Operating (loss) income $ (425 ) $ 432 $ 1,461 $ 735 $ (3,106 ) $ (903 ) Capital expenditures c $ 3,612 $ 23,799 $ 239 $ 338 $ — $ 27,988 Total assets at March 31, 2018 210,279 71,092 101,582 36,439 7,036 426,428 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 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 c $ 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 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)	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NEW ACCOUNTING STANDARDS Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) related to revenue recognition. Stratus adopted this standard effective January 1, 2018, under the modified retrospective approach applied to contracts that remain in force at the adoption date. The adoption of this standard did not result in any changes to Stratus' revenue recognition policies or processes (refer to Note 1 of Stratus' 2017 Form 10-K for disclosure of Stratus' revenue recognition policy) except as follows. Revenue or gains on sales of real estate are recognized when control of the asset has been transferred to the buyer if collection of substantially all of the consideration to which Stratus will be entitled is probable and Stratus has satisfied all other performance obligations under the contract. Consideration is allocated among multiple performance obligations or distinct nonfinancial assets to be transferred to the buyer based on relative fair value. Financial Instruments. In January 2016, FASB issued an ASU that amends the guidance on the classification and measurement of financial instruments. This ASU makes limited changes to prior guidance and amends certain disclosure requirements. Stratus adopted this ASU effective January 1, 2018, and the adoption did not have a material impact on Stratus' financial statements. Statement of Cash Flows: Restricted Cash. In November 2016, FASB issued an ASU that changes the classification and presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The ASU requires that a statement of cash flows include the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Stratus adopted this ASU effective January 1, 2018, and adjusted its consolidated statement of cash flows for the three months ended March 31, 2017, to include restricted cash (Stratus has no restricted cash equivalents) with cash and cash equivalents. The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions): Previously Reported Impact of Adoption Current Presentation Net increase in cash, cash equivalents and restricted cash $ 13,486 $ (2,135 ) $ 11,351 Cash, cash equivalents and restricted cash at beginning of year 13,597 11,892 25,489 Cash, cash equivalents and restricted cash at end of period $ 27,083 $ 9,757 $ 36,840

Subsequent Events (Unaudited) (

Subsequent Events (Unaudited) (Notes)	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS Stratus evaluated events after March 31, 2018 , 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.

New Accounting Standards (Una15

New Accounting Standards (Unaudited) (Policies)	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) related to revenue recognition. Stratus adopted this standard effective January 1, 2018, under the modified retrospective approach applied to contracts that remain in force at the adoption date. The adoption of this standard did not result in any changes to Stratus' revenue recognition policies or processes (refer to Note 1 of Stratus' 2017 Form 10-K for disclosure of Stratus' revenue recognition policy) except as follows. Revenue or gains on sales of real estate are recognized when control of the asset has been transferred to the buyer if collection of substantially all of the consideration to which Stratus will be entitled is probable and Stratus has satisfied all other performance obligations under the contract. Consideration is allocated among multiple performance obligations or distinct nonfinancial assets to be transferred to the buyer based on relative fair value.

Fair Value Measurements (Unau16

Fair Value Measurements (Unaudited) (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate swap agreement $ 44 $ 44 $ — $ — Liabilities: Debt $ 249,113 $ 252,451 $ 221,470 $ 224,632 Interest rate swap agreement — — 134 134

Debt and Equity Transactions 17

Debt and Equity Transactions (Unaudited) Summary of Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Table [Abstract]
Schedule of Debt [Table Text Block]	The components of Stratus' debt are as follows (in thousands): March 31, 2018 December 31, 2017 Goldman Sachs loan $ 144,692 $ 145,195 Comerica Bank credit facility 40,990 25,765 Santal Phase I construction loan 31,890 31,864 Barton Creek Village term loan 3,352 3,375 Amarra Villas credit facility 6,361 5,247 West Killeen Market construction loan 5,647 5,378 Jones Crossing construction loan 7,656 4,646 Lantana Place construction loan 8,525 — Total debt a $ 249,113 $ 221,470 a. Includes net reductions for unamortized debt issuance costs of $2.3 million at March 31, 2018 , and $2.1 million at December 31, 2017.

Business Segments (Unaudited) (

Business Segments (Unaudited) (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Revenue from External Customers by Products and Services [Table Text Block]	Stratus' revenues from contracts with customers for the first quarters of 2018 and 2017 follow (in thousands): Three Months Ended March 31, 2018 2017 Real Estate Operations: Developed property sales $ 1,155 $ 2,133 Commissions and other 39 31 1,194 2,164 Leasing Operations: Rental revenue 2,004 2,281 2,004 2,281 Hotel: Rooms, food and beverage 8,694 9,789 Other 628 525 9,322 10,314 Entertainment: Event revenue 4,649 5,295 Other 596 610 5,245 5,905 Total Revenues from Contracts with Unaffiliated Customers $ 17,765 $ 20,664
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 March 31, 2018: Revenues: Unaffiliated customers $ 1,194 $ 2,004 $ 9,322 $ 5,245 $ — $ 17,765 Intersegment 8 251 72 14 (345 ) — Cost of sales, excluding depreciation 1,566 1,190 7,038 4,136 (185 ) 13,745 Depreciation 61 633 895 388 (35 ) 1,942 General and administrative expenses — — — — 2,981 2,981 Operating (loss) income $ (425 ) $ 432 $ 1,461 $ 735 $ (3,106 ) $ (903 ) Capital expenditures c $ 3,612 $ 23,799 $ 239 $ 338 $ — $ 27,988 Total assets at March 31, 2018 210,279 71,092 101,582 36,439 7,036 426,428 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 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 c $ 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 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 (Una19

New Accounting Standards (Unaudited) (Tables)	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions): Previously Reported Impact of Adoption Current Presentation Net increase in cash, cash equivalents and restricted cash $ 13,486 $ (2,135 ) $ 11,351 Cash, cash equivalents and restricted cash at beginning of year 13,597 11,892 25,489 Cash, cash equivalents and restricted cash at end of period $ 27,083 $ 9,757 $ 36,840

Earnings Per Share (Unaudited)

Earnings Per Share (Unaudited) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	107	128

Dispositions (Details)

Dispositions (Details) $ in Thousands	Feb. 28, 2017USD ($)ft²a	Feb. 15, 2017USD ($)	Mar. 31, 2018USD ($)	Sep. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Movement in Deferred Revenue [Roll Forward]
Payments on master lease obligations			$ (388)		$ (322)
Deferred Gain on Sale of Property			11,036			$ 11,320
Profit participation in sale of The Oaks at Lakeway			0		2,538
Gain on Disposition of Assets			0		$ 1,115
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]
increase (decrease) in deferred gain			300
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			180
Guarantee obligations, Liability Cap, percentage		2.00%
Letters of Credit Outstanding, Amount		$ 1,500
Movement in Deferred Revenue [Roll Forward]
Deferred Revenue, Revenue Recognized				$ 24,300
Deferred Gain on Sale of Property			$ 11,036
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
Movement in Deferred Revenue [Roll Forward]
Gain on Disposition of Assets	1,100
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, Operating Lease, 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, Operating Lease, Term of Contract		10 years
Lakeway Master Lease Unleased [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lessee, Operating Lease, 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, Operating Lease, Term of Contract		99 years
Barton Creek [Member]
Movement in Deferred Revenue [Roll Forward]
Net Rentable Area | ft²	3,085
Area of Land | a	4.1

Fair Value Measurements (Unau22

Fair Value Measurements (Unaudited) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Carrying Amount, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Interest Rate Derivative Assets, at Fair Value	$ 44	$ 0
Debt	249,113	221,470
Interest rate swap agreement	0	134
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 Derivative Assets, at Fair Value	44	0
Debt	252,451	224,632
Interest rate swap agreement	$ 0	$ 134

Debt and Equity Transactions 23

Debt and Equity Transactions (Unaudited) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Debt	$ 249,113,000		$ 221,470,000
Unamortized Debt Issuance Expense	2,300,000		2,100,000
Interest Costs Incurred	3,400,000	$ 3,300,000
Interest Costs Capitalized	1,800,000	$ 1,400,000
Goldman Sachs Loan [Member]
Debt Instrument [Line Items]
Debt	144,692,000		145,195,000
Comerica Credit Facility [Member]
Debt Instrument [Line Items]
Debt	40,990,000		25,765,000
Santal Phase I Construction Loan [Member]
Debt Instrument [Line Items]
Debt			31,864,000
Barton Creek Village Term Loan [Member]
Debt Instrument [Line Items]
Debt	3,352,000		3,375,000
Amarra Villas Credit Facility
Debt Instrument [Line Items]
Debt	6,361,000		5,247,000
West Killeen Market construction loan [Member]
Debt Instrument [Line Items]
Debt	5,647,000		5,378,000
Jones Crossing Construction Loan [Member]
Debt Instrument [Line Items]
Debt	7,656,000		4,646,000
Letter of Credit [Member] | Comerica Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	4,000,000
Line of Credit Facility, Maximum Borrowing Capacity	45,000,000
Construction Loans [Member] | Santal Phase I Construction Loan [Member]
Debt Instrument [Line Items]
Debt	31,890,000
Construction Loans [Member] | Lantana Place Construction Loan [Member]
Debt Instrument [Line Items]
Long-term Debt and Capital Lease Obligations, Including Current Maturities	$ 8,525,000		$ 0

Debt and Equity Transactions 24

Debt and Equity Transactions (Unaudited) Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 18, 2017	Mar. 15, 2017	Mar. 31, 2018	Mar. 31, 2017
Dividends Payable [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 1	$ 0	$ 1
Dividends, Common Stock, Cash	$ 8.1

Income Taxes (Unaudited) (Detai

Income Taxes (Unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 11,965		$ 11,461
Current Income Tax Expense (Benefit)	100
Deferred income tax expense (benefit)	$ (504)	$ (9,775)
Federal Statutory Income Tax Rate	21.00%	35.00%

Business Segments (Unaudited) R

Business Segments (Unaudited) Revenues from External Customers for Products and Services (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue from External Customer [Line Items]
Real estate operations	$ 1,194	$ 2,164
Leasing operations	2,004	2,281
Hotel	9,322	10,314
Entertainment	5,245	5,905
Total revenues	17,765	20,664
Developed property sales
Revenue from External Customer [Line Items]
Real estate operations	1,155	2,133
Commissions and other
Revenue from External Customer [Line Items]
Real estate operations	39	31
Rental revenue
Revenue from External Customer [Line Items]
Leasing operations	2,004	2,281
Rooms, food and beverage
Revenue from External Customer [Line Items]
Hotel	8,694	9,789
Other, Hotel Revenue
Revenue from External Customer [Line Items]
Hotel	628	525
Event revenue
Revenue from External Customer [Line Items]
Entertainment	4,649	5,295
Other, Entertainment Revenue [Member]
Revenue from External Customer [Line Items]
Entertainment	$ 596	$ 610

Business Segments (Unaudited) S

Business Segments (Unaudited) Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments	4
Revenues:
Unaffiliated customers	$ 17,765	$ 20,664
Intersegment	0	0
Cost of sales, excluding depreciation	13,745	15,203
Depreciation	1,942	2,141
General and administrative expenses	2,981	3,396
Profit participation	0	2,538
Gain on sale of assets	0	(1,115)
Operating income (loss)	(903)	(1,499)
Capital expenditures	27,988	5,969
Total assets	426,428	401,968	$ 405,993
Real Estate Operations [Member]
Revenues:
Unaffiliated customers	1,194	2,164
Intersegment	8	13
Cost of sales, excluding depreciation	1,566	1,976
Depreciation	61	57
General and administrative expenses	0	0
Profit participation		0
Gain on sale of assets		0
Operating income (loss)	(425)	144
Capital expenditures	3,612	3,668
Total assets	210,279	174,022
Rental revenue
Revenues:
Unaffiliated customers	2,004	2,281
Intersegment	251	210
Cost of sales, excluding depreciation	1,190	1,693
Depreciation	633	763
General and administrative expenses	0	0
Profit participation		2,538
Gain on sale of assets		(1,115)
Operating income (loss)	432	(1,388)
Capital expenditures	23,799	2,031
Total assets	71,092	65,483
Hotel [Member]
Revenues:
Unaffiliated customers	9,322	10,314
Intersegment	72	91
Cost of sales, excluding depreciation	7,038	7,189
Depreciation	895	979
General and administrative expenses	0	0
Profit participation		0
Gain on sale of assets		0
Operating income (loss)	1,461	2,237
Capital expenditures	239	247
Total assets	101,582	104,498
Entertainment Venue [Member]
Revenues:
Unaffiliated customers	5,245	5,905
Intersegment	14	40
Cost of sales, excluding depreciation	4,136	4,508
Depreciation	388	376
General and administrative expenses	0	0
Profit participation		0
Gain on sale of assets		0
Operating income (loss)	735	1,061
Capital expenditures	338	23
Total assets	36,439	37,066
Eliminations and Other [Member]
Revenues:
Unaffiliated customers	0	0
Intersegment	(345)	(354)
Cost of sales, excluding depreciation	(185)	(163)
Depreciation	(35)	(34)
General and administrative expenses	2,981	3,396
Profit participation		0
Gain on sale of assets		0
Operating income (loss)	(3,106)	(3,553)
Capital expenditures	0	0
Total assets	$ 7,036	$ 20,899

New Accounting Standards (Una28

New Accounting Standards (Unaudited) Restricted Cash (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net (decrease) increase in cash, cash equivalents and restricted cash	$ (6,155)	$ 11,351
Cash, cash equivalents and restricted cash at beginning of year	39,390	25,489
Cash, cash equivalents and restricted cash at end of period	$ 33,235	36,840
Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net (decrease) increase in cash, cash equivalents and restricted cash		13,486
Cash, cash equivalents and restricted cash at beginning of year		13,597
Cash, cash equivalents and restricted cash at end of period		27,083
Accounting Standards Update 2016-18 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net (decrease) increase in cash, cash equivalents and restricted cash		(2,135)
Cash, cash equivalents and restricted cash at beginning of year		11,892
Cash, cash equivalents and restricted cash at end of period		$ 9,757