Cover Page Cover Page
Cover Page Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37716 | |
Entity Registrant Name | Stratus Properties Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-1211572 | |
Entity Address, Address Line One | 212 Lavaca Street, Suite 300 | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78701 | |
City Area Code | 512 | |
Local Phone Number | 478-5788 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | STRS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,179,111 | |
Entity Central Index Key | 0000885508 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 18,073 | $ 19,004 |
Restricted cash | 15,566 | 19,915 |
Real estate held for sale | 17,897 | 16,396 |
Real estate under development | 142,854 | 136,678 |
Land available for development | 37,787 | 24,054 |
Real estate held for investment, net | 272,274 | 253,074 |
Lease right-of-use assets | 11,692 | 0 |
Deferred tax assets | 11,873 | 11,834 |
Other assets | 14,715 | 15,538 |
Total assets | 542,731 | 496,493 |
Liabilities: | ||
Accounts payable | 16,461 | 20,602 |
Accrued liabilities, including taxes | 9,239 | 11,914 |
Debt | 340,622 | 295,531 |
Lease liabilities | 12,381 | 0 |
Deferred gain | 8,647 | 9,270 |
Other liabilities | 14,869 | 12,525 |
Total liabilities | 402,219 | 349,842 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 93 | 93 |
Capital in excess of par value of common stock | 186,334 | 186,256 |
Accumulated deficit | (42,630) | (41,103) |
Common stock held in treasury | (21,360) | (21,260) |
Total stockholders’ equity | 122,437 | 123,986 |
Noncontrolling interests in subsidiaries | 18,075 | 22,665 |
Total equity | 140,512 | 146,651 |
Total liabilities and equity | $ 542,731 | $ 496,493 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Leasing operations - Post Lease ASU Adoption | $ 4,413 | $ 2,331 | $ 8,042 | $ 4,335 |
Total revenues | 23,724 | 23,310 | 43,422 | 41,075 |
Cost of sales: | ||||
Cost of sales | 17,514 | 17,468 | 29,853 | 31,213 |
Depreciation | 2,703 | 2,053 | 5,333 | 3,995 |
Total cost of sales | 20,217 | 19,521 | 35,186 | 35,208 |
General and administrative expenses | 2,919 | 3,015 | 6,118 | 5,996 |
Gain on sale of assets | 161 | 0 | (1,952) | 0 |
Total | 23,297 | 22,536 | 39,352 | 41,204 |
Operating income (loss) | 427 | 774 | 4,070 | (129) |
Interest expense, net | (2,911) | (1,742) | (5,483) | (3,301) |
(Loss) gain on interest rate derivative instruments | (123) | 80 | (182) | 258 |
Loss on early extinguishment of debt | 0 | 0 | (16) | 0 |
Other income, net | 12 | 11 | 311 | 22 |
Loss before income taxes and equity in unconsolidated affiliates' loss | (2,595) | (877) | (1,300) | (3,150) |
Equity in unconsolidated affiliates' loss | (13) | (3) | (13) | (6) |
Benefit from (provision for) income taxes | 218 | 23 | (215) | 429 |
Loss from continuing operations | (2,390) | (857) | (1,528) | (2,727) |
Total comprehensive loss attributable to noncontrolling interests in subsidiaries | 1 | 0 | 1 | 0 |
Net loss and total comprehensive loss attributable to common stockholders | $ (2,389) | $ (857) | $ (1,527) | $ (2,727) |
Basic and diluted net loss per share attributable to common stockholders (in dollars per share) | $ (0.29) | $ (0.11) | $ (0.19) | $ (0.33) |
Basic and diluted weighted-average common shares outstanding (in shares) | 8,177 | 8,153 | 8,172 | 8,145 |
Real estate | ||||
Revenues: | ||||
Revenue from contracts with customers | $ 4,129 | $ 6,979 | $ 7,077 | $ 8,173 |
Cost of sales: | ||||
Cost of sales | 3,795 | 5,560 | 3,841 | 7,126 |
Leasing Operations [Member] | ||||
Cost of sales: | ||||
Cost of sales | 2,447 | 1,323 | 4,586 | 2,505 |
Hotel [Member] | ||||
Revenues: | ||||
Revenue from contracts with customers | 8,962 | 9,593 | 17,287 | 18,915 |
Cost of sales: | ||||
Cost of sales | 6,831 | 7,149 | 13,506 | 14,178 |
Entertainment [Member] | ||||
Revenues: | ||||
Revenue from contracts with customers | 6,220 | 4,407 | 11,016 | 9,652 |
Cost of sales: | ||||
Cost of sales | $ 4,441 | $ 3,436 | $ 7,920 | $ 7,404 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (1,528) | $ (2,727) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 5,333 | 3,995 |
Cost of real estate sold | 4,324 | 5,053 |
Gain on sale of assets | (1,952) | 0 |
Loss (gain) on interest rate derivative contracts | 182 | (258) |
Loss on early extinguishment of debt | 16 | 0 |
Amortization of debt issuance costs and stock-based compensation | 546 | 791 |
Equity in unconsolidated affiliates' loss | 13 | 6 |
Increase in deposits | 185 | 588 |
Deferred income taxes | (38) | (653) |
Purchases and development of real estate properties | (5,756) | (7,699) |
Municipal utility district reimbursements applied to real estate under development | 920 | 0 |
Increase in other assets | (1,636) | (2,297) |
Decrease in accounts payable, accrued liabilities and other | (2,187) | (5,505) |
Net cash used in operating activities | (1,578) | (8,706) |
Cash flow from investing activities: | ||
Capital expenditures | (44,990) | (42,982) |
Proceeds from sale of assets | 3,170 | 0 |
Payments on master lease obligations | (766) | (932) |
Purchase of noncontrolling interest in consolidated subsidiary | (4,589) | 0 |
Other, net | (4) | (87) |
Net cash used in investing activities | (47,179) | (44,001) |
Cash flow from financing activities: | ||
Borrowings from credit facility | 14,086 | 22,336 |
Payments on credit facility | (15,648) | (4,225) |
Proceeds from Issuance of Long-term Debt | 51,006 | 29,948 |
Repayments of Long-term Debt | 5,619 | 3,266 |
Cash dividend paid for stock-based awards | (17) | 0 |
Stock-based awards net payments | (100) | (203) |
Noncontrolling interests' contributions | 0 | 7,000 |
Financing costs | (231) | (976) |
Net cash provided by financing activities | 43,477 | 50,614 |
Net decrease in cash, cash equivalents and restricted cash | (5,280) | (2,093) |
Cash, cash equivalents and restricted cash at beginning of year | 38,919 | 39,390 |
Cash, cash equivalents and restricted cash at end of period | $ 33,639 | $ 37,297 |
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, 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 | ||||||
Exercised and issued stock-based awards (in shares) | 27 | ||||||
Stock-based compensation | 362 | 362 | 362 | ||||
Tender of shares for stock-based awards | (203) | (203) | $ (203) | ||||
Tender of shares for stock-based awards (in shares) | 7 | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (2,727) | (2,727) | |||||
Noncontrolling interests contributions | 7,000 | 7,000 | |||||
Total comprehensive loss | (2,727) | ||||||
Balance at Jun. 30, 2018 | 131,822 | 124,742 | $ 93 | 185,757 | (39,848) | $ (21,260) | 7,080 |
Balance (in shares) at Jun. 30, 2018 | 9,277 | 1,124 | |||||
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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 165 | 165 | 165 | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (857) | (857) | |||||
Noncontrolling interests contributions | 7,000 | 7,000 | |||||
Total comprehensive loss | (857) | ||||||
Balance at Jun. 30, 2018 | 131,822 | 124,742 | $ 93 | 185,757 | (39,848) | $ (21,260) | 7,080 |
Balance (in shares) at Jun. 30, 2018 | 9,277 | 1,124 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Present value of net minimum lease payments | 0 | ||||||
Balance at Dec. 31, 2018 | 146,651 | 123,986 | $ 93 | 186,256 | (41,103) | $ (21,260) | 22,665 |
Balance (in shares) at Dec. 31, 2018 | 9,288 | 1,124 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercised and issued stock-based awards | 0 | ||||||
Exercised and issued stock-based awards (in shares) | 17 | ||||||
Stock-based compensation | 78 | 78 | 78 | ||||
Tender of shares for stock-based awards | (100) | (100) | $ (100) | ||||
Tender of shares for stock-based awards (in shares) | 4 | ||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 4,589 | 4,589 | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (1,527) | (1,527) | (1) | ||||
Total comprehensive loss | (1,528) | ||||||
Balance at Jun. 30, 2019 | 140,512 | 122,437 | $ 93 | 186,334 | (42,630) | $ (21,360) | 18,075 |
Balance (in shares) at Jun. 30, 2019 | 9,305 | 1,128 | |||||
Balance at Mar. 31, 2019 | 142,992 | 124,916 | $ 93 | 186,424 | (40,241) | $ (21,360) | 18,076 |
Balance (in shares) at Mar. 31, 2019 | 9,305 | 1,128 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | (90) | (90) | (90) | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (2,389) | (2,389) | (1) | ||||
Total comprehensive loss | (2,390) | ||||||
Balance at Jun. 30, 2019 | 140,512 | $ 122,437 | $ 93 | $ 186,334 | $ (42,630) | $ (21,360) | $ 18,075 |
Balance (in shares) at Jun. 30, 2019 | 9,305 | 1,128 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Present value of net minimum lease payments | $ 12,381 |
General
General | 6 Months Ended |
Jun. 30, 2019 | |
General Information [Abstract] | |
General | 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, 2018 , included in Stratus Properties Inc.’s (Stratus) Annual Report on Form 10-K (Stratus 2018 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. Operating results for the six -month period ended June 30, 2019 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 94 thousand shares of common stock for second-quarter 2019 , 85 thousand shares for second-quarter 2018 , 95 thousand shares for the first six months of 2019 and 96 thousand shares for the first six months of 2018 associated with restricted stock units and outstanding stock options that were anti-dilutive because of net losses. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Saint Mary, L.P. On June 19, 2018, The Saint Mary, L.P., a Texas limited partnership and a subsidiary of Stratus, completed a series of financing transactions to develop The Saint Mary, a 240 -unit luxury, garden-style apartment project in the Circle C community in Austin, Texas. The financing transactions included (1) a $26 million construction loan with Texas Capital Bank, National Association and (2) an $8.0 million private placement. As one of the participants in the private placement offering, LCHM Holdings, LLC (LCHM), a related party as a result of its greater than 5 percent beneficial ownership of Stratus’ common stock, purchased limited partnership interests representing a 6.1 percent equity interest in The Saint Mary, L.P. Refer to Note 2 of the Stratus 2018 Form 10-K for further discussion. Stratus Kingwood Place, L.P. On August 3, 2018, Stratus Kingwood Place, L.P., a Texas limited partnership and a subsidiary of Stratus (the Kingwood, L.P.), completed a $10.7 million private placement, approximately $7 million of which, combined with a $6.75 million loan from Comerica Bank, was used to purchase a 54 -acre tract of land located in Kingwood, Texas for $13.5 million , for the development of Kingwood Place, a new H-E-B, L.P. (HEB)-anchored mixed-use development project (Kingwood Place). As one of the participants in the private placement offering, LCHM purchased limited partnership interests initially representing an 8.8 percent equity interest in the Kingwood, L.P. Refer to Note 2 of the Stratus 2018 Form 10-K for further discussion. Stratus performed evaluations and concluded that The Saint Mary, L.P. and the Kingwood, L.P. are variable interest entities and that Stratus is the primary beneficiary. Stratus will continue to evaluate which entity is the primary beneficiary of The Saint Mary, L.P. and the Kingwood, L.P. in accordance with applicable accounting guidance. Stratus’ consolidated balance sheets include the following combined assets and liabilities of The Saint Mary, L.P. and the Kingwood, L.P. (in thousands): June 30, 2019 December 31, 2018 Assets: Cash and cash equivalents $ 601 $ 1,939 Restricted cash — 2,284 Real estate under development 53,576 27,928 Real estate held for investment 7,060 — Other assets 953 792 Total assets $ 62,190 $ 32,943 Liabilities: Accounts payable and accrued liabilities $ 6,246 $ 3,484 Debt 29,608 6,125 Total liabilities $ 35,854 $ 9,609 Net assets $ 26,336 $ 23,334 Other Transactions Stratus has an arrangement with Austin Retail Partners for services provided by a consultant of Austin Retail Partners who is the son of Stratus' President and Chief Executive Officer. Payments to Austin Retail Partners for his general consulting services related to the entitlement and development of properties and his expense reimbursements during second-quarter 2019 and the first six months of 2019 totaled approximately $29 thousand and $56 thousand , respectively. Refer to Note 2 of the Stratus 2018 Form 10-K for further discussion. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | DISPOSITIONS On January 17, 2019, Stratus sold a retail pad subject to a ground lease located in the Circle C community for $3.2 million . Stratus used proceeds from the sale to repay $2.5 million of its Comerica Bank credit facility borrowings and, after adjustments recorded in second-quarter 2019 , recorded a gain on this sale totaling $2.0 million for the first six months of 2019 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate swap agreement $ — $ — $ 53 $ 53 Liabilities: Debt 340,622 345,180 295,531 299,531 Interest rate swap agreement 129 129 — — 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 agreement 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. The interest rate swap agreement with Comerica Bank was entered into in 2013, is effective through December 31, 2020, and has a fixed interest rate of 2.3 percent compared to the variable rate based on the one-month London Interbank Offered Rate (LIBOR). As of June 30, 2019 , the agreement had a notional amount of $15.5 million , which amortizes to $14.8 million by the end of the agreement, and as of December 31, 2018 , the agreement had a notional amount of $15.8 million . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Capitalization, Long-term Debt and Equity [Abstract] | |
Debt | DEBT The components of Stratus' debt are as follows (in thousands): June 30, 2019 December 31, 2018 Goldman Sachs loan $ 142,222 $ 143,250 Comerica Bank credit facility 48,658 50,221 Santal Phase I construction loan 32,672 32,622 Santal Phase II construction loan 24,975 19,867 Lantana Place construction loan 22,372 18,416 Jones Crossing construction loan 19,574 11,784 The Saint Mary construction loan 16,015 — Kingwood Place construction loan 13,593 6,125 West Killeen Market construction loan 7,093 6,636 Amarra Villas credit facility 5,323 3,326 New Caney land loan 4,888 — Barton Creek Village term loan 3,237 3,284 Total debt a $ 340,622 $ 295,531 a. Includes net reductions for unamortized debt issuance costs of $3.1 million at June 30, 2019 , and $2.8 million at December 31, 2018 . As of June 30, 2019 , Stratus had $9.1 million available under its $60.0 million Comerica Bank revolving line of credit, with $2.2 million of letters of credit committed against the credit facility. On March 19, 2019, two Stratus subsidiaries entered into a loan agreement with Comerica Bank to modify, increase and extend Stratus' Amarra Villas credit facility, which was scheduled to mature on July 12, 2019. The new loan agreement provides for an increase in the revolving credit facility commitment from $8.0 million to $15.0 million and an extension of the maturity date to March 19, 2022. Interest on the loan is variable at LIBOR plus 3.0 percent . The Amarra Villas credit facility contains financial covenants usual and customary for loan agreements of this nature, including a requirement that Stratus maintain a net asset value, as defined in the agreement, of $125 million and a debt-to-gross asset value of less than 50 percent . As of June 30, 2019 , Stratus had $9.4 million available under its $15.0 million Amarra Villas revolving credit facility. As a result of entering into this new loan agreement, Stratus recognized a loss on early extinguishment of debt of $16 thousand for the first six months of 2019 . On March 8, 2019, a Stratus subsidiary entered into a $5.0 million land loan with Texas Capital Bank. Proceeds from the loan were used to fund the acquisition of HEB's portion of the New Caney partnership in which Stratus and HEB purchased a tract of land for the future development of an HEB-anchored mixed-use project in New Caney, Texas. The loan matures on March 8, 2021, and may be extended for 12 months, subject to certain conditions. The loan bears interest at LIBOR plus 3.0 percent . Borrowings are secured by the New Caney land. The loan agreement contains customary financial covenants including a requirement that Stratus maintain a net asset value of $125 million . For a description of Stratus' other debt, refer to Note 5 in the Stratus 2018 Form 10-K. Interest Expense and Capitalization. Interest costs (before capitalized interest) totaled $5.1 million in second-quarter 2019 , $3.8 million in second-quarter 2018 , $9.7 million for the first six months of 2019 and $7.2 million for the first six months of 2018 . Stratus' capitalized interest costs totaled $2.1 million in second-quarter 2019 , $2.0 million in second-quarter 2018 , $4.2 million for the first six months of 2019 and $3.9 million for the first six months of 2018 , primarily related to development activities at Barton Creek. The 2019 periods also included capitalized interest costs related to development activities at Kingwood Place. |
Profit Participation Incentive
Profit Participation Incentive Plan | 6 Months Ended |
Jun. 30, 2019 | |
Profit Participation Plan [Abstract] | |
Profit Participation Incentive Plan | PROFIT PARTICIPATION INCENTIVE PLAN In July 2018, the Compensation Committee of the Board of Directors (the Committee) unanimously adopted the Stratus Profit Participation Incentive Plan (the Plan), which provides participants with economic incentives tied to the success of the development projects designated by the Committee as approved projects under the Plan. Refer to Note 7 of the Stratus 2018 Form 10-K for further discussion. As of June 30, 2019 , there were no significant changes to the fair value of the awards or the assumptions used to determine the fair values of the awards at December 31, 2018. Estimates related to the awards may change over time due to differences between projected and actual development progress and costs, market conditions and the timing of capital transactions or valuation events. During second-quarter 2019 , Stratus accrued $0.2 million to project development costs and $0.2 million in general and administrative expense related to the Plan. During the six months ended June 30, 2019 , Stratus accrued $0.4 million to project development costs and $0.5 million in general and administrative expense related to the Plan. The accrued liability for the Plan totaled $1.7 million at June 30, 2019 , and $0.8 million at December 31, 2018 (included in other liabilities). As of June 30, 2019 , no amounts had been paid to participants under the Plan. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Stratus’ accounting policy for and other information regarding its income taxes is further described in Notes 1 and 6 in the Stratus 2018 Form 10-K. Stratus had deferred tax assets (net of deferred tax liabilities) totaling $11.9 million at June 30, 2019 , and $11.8 million at December 31, 2018 . 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 2019 and the U.S. Federal statutory income tax rate of 21 percent , was primarily attributable to the Texas state margin tax and the Tax Cuts and Jobs Act's executive compensation limitation. The difference between Stratus' consolidated effective income tax rate for the first six months of 2018 and the U.S. Federal statutory income tax rate of 21 percent , was primarily attributable to the Texas state margin tax. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | 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 for sale, under development and available for development), which consists of its properties in Austin, Texas (the Barton Creek community; the Circle C community, including The Saint Mary; the Lantana community, including a portion of Lantana Place still under development and vacant pad sites; and one condominium unit at the W Austin Hotel & Residences); in Lakeway, Texas, located in the greater Austin area (Lakeway); in College Station, Texas (a portion of Jones Crossing and vacant pad sites); in Killeen, Texas (vacant pad sites at West Killeen Market); and in Magnolia, Texas (Magnolia), Kingwood, Texas (Kingwood Place) and New Caney, Texas (New Caney), located in the greater Houston area. The Leasing Operations segment includes the office and retail space at the W Austin Hotel & Residences, Barton Creek Village, Santal Phase I and Phase II, West Killeen Market in Killeen, Texas, and completed portions of the Lantana Place and Jones Crossing projects. 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 3TEN ACL Live, both located at the W Austin Hotel & Residences. In addition to hosting concerts and private events, ACL Live is the home of Austin City Limits, the longest running music series in American television history. 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 follow (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Real Estate Operations: Developed property sales $ 4,048 $ 6,856 $ 6,882 $ 8,011 Commissions and other 81 123 195 162 4,129 6,979 7,077 8,173 Leasing Operations: Rental revenue 4,413 2,331 8,042 4,335 4,413 2,331 8,042 4,335 Hotel: Rooms, food and beverage 8,445 8,908 16,182 17,602 Other 517 685 1,105 1,313 8,962 9,593 17,287 18,915 Entertainment: Event revenue 5,598 3,729 9,822 8,378 Other 622 678 1,194 1,274 6,220 4,407 11,016 9,652 Total Revenues from Contracts with Unaffiliated Customers $ 23,724 $ 23,310 $ 43,422 $ 41,075 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 Corporate, Eliminations and Other b Total Three Months Ended June 30, 2019: Revenues: Unaffiliated customers $ 4,129 $ 4,413 $ 8,962 $ 6,220 $ — $ 23,724 Intersegment 4 229 80 45 (358 ) — Cost of sales, excluding depreciation 3,795 2,451 6,868 4,585 (185 ) 17,514 Depreciation 64 1,388 899 396 (44 ) 2,703 General and administrative expenses — — — — 2,919 2,919 Loss on sale of assets — 161 c — — — 161 Operating income (loss) $ 274 $ 642 $ 1,275 $ 1,284 $ (3,048 ) $ 427 Capital expenditures and purchases and development of real estate properties $ 2,458 $ 15,391 $ 156 $ — $ — $ 18,005 Total assets at June 30, 2019 225,084 167,008 98,063 45,491 7,085 542,731 Three Months Ended June 30, 2018: Revenues: Unaffiliated customers $ 6,979 $ 2,331 $ 9,593 $ 4,407 $ — $ 23,310 Intersegment 8 225 50 44 (327 ) — Cost of sales, excluding depreciation 5,560 d 1,331 7,184 3,560 (167 ) 17,468 Depreciation 64 738 894 392 (35 ) 2,053 General and administrative expenses — — — — 3,015 3,015 Operating income (loss) $ 1,363 $ 487 $ 1,565 $ 499 $ (3,140 ) $ 774 Capital expenditures and purchases and development of real estate properties $ 4,087 $ 18,486 $ 97 $ 23 $ — $ 22,693 Total assets at June 30, 2018 207,437 95,954 101,487 36,263 7,547 448,688 Real Estate a Leasing Operations Hotel Entertainment Corporate, Eliminations and Other b Total Six Months Ended June 30, 2019: Revenues: Unaffiliated customers $ 7,077 $ 8,042 $ 17,287 $ 11,016 $ — $ 43,422 Intersegment 9 459 127 74 (669 ) — Cost of sales, excluding depreciation 3,841 e 4,595 13,566 8,192 (341 ) 29,853 Depreciation 125 2,795 1,799 790 (176 ) 5,333 General and administrative expenses — — — — 6,118 6,118 Gain on sale of assets — (1,952 ) c — — — (1,952 ) Operating income (loss) $ 3,120 $ 3,063 $ 2,049 $ 2,108 $ (6,270 ) $ 4,070 Capital expenditures and purchases and development of real estate properties $ 5,756 $ 44,611 $ 254 $ 125 $ — $ 50,746 Municipal utility district (MUD) reimbursements applied to real estate under development e 920 — — — — 920 Six Months Ended June 30, 2018: Revenues: Unaffiliated customers $ 8,173 $ 4,335 $ 18,915 $ 9,652 $ — $ 41,075 Intersegment 16 476 122 58 (672 ) — Cost of sales, excluding depreciation 7,126 d 2,521 14,222 7,696 (352 ) 31,213 Depreciation 125 1,371 1,789 780 (70 ) 3,995 General and administrative expenses — — — — 5,996 5,996 Operating income (loss) $ 938 $ 919 $ 3,026 $ 1,234 $ (6,246 ) $ (129 ) Capital expenditures and purchases and development of real estate properties $ 7,699 $ 42,285 $ 336 $ 361 $ — $ 50,681 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. Relates to the first-quarter 2019 sale of a retail pad subject to a ground lease located in the Circle C community, including adjustments recorded in second-quarter 2019. d. Includes $0.4 million of reductions to cost of sales associated with collection of prior-years' assessments of properties in Barton Creek. e. Stratus received $4.6 million of bond proceeds related to MUD reimbursements of infrastructure costs incurred for development of Barton Creek. Of the total amount, Stratus recorded $0.9 million as a reduction of real estate under development on the consolidated balance sheets, and $3.4 million as a reduction in real estate cost of sales and $0.3 million in other income, net in the consolidated statements of comprehensive loss. Refer to Note 1 of the Stratus 2018 Form 10-K for further discussion of Stratus' accounting policy for MUD reimbursements. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Leases. Effective January 1, 2019, Stratus adopted an Accounting Standards Update (ASU) that requires lessees to recognize most leases on the balance sheet. Stratus elected the practical expedients allowing it to (i) apply the provisions of the updated lease guidance at the effective date, without adjusting the comparative periods presented, and (ii) not reassess lease contracts, lease classification and initial direct costs of leases existing at adoption. Stratus also elected an accounting policy to not recognize a lease asset and liability for leases with a term of 12 months or less and a purchase option that is not expected to be exercised. Stratus' most significant lease is a 99 -year ground lease for approximately 72 acres of land in College Station, Texas on which it is developing the Jones Crossing project. Stratus also leases various types of assets, including office space, vehicles and office equipment under non-cancelable leases. All of Stratus' leases are considered operating leases under the ASU. Adoption of this ASU resulted in the recognition of lease right-of-use assets of $11.9 million and lease liabilities of $12.0 million as of January 1, 2019. Operating lease costs were $0.4 million in second-quarter 2019 and $0.7 million for the first six months of 2019 . Total lease costs were $0.4 million in second-quarter 2018 and $0.8 million for the first six months of 2018 . During the first six months of 2019 , Stratus paid $108 thousand for lease liabilities recorded in the consolidated balance sheet (included in operating cash flows in the consolidated statements of cash flows). As of June 30, 2019 , the weighted-average discount rate used to determine the lease liabilities was 6.0 percent and the weighted-average remaining lease term was 94.1 years . The future minimum payments for leases recorded on the consolidated balance sheet at June 30, 2019 , follow (in thousands): Remaining six months of 2019 $ 115 2020 199 2021 145 2022 434 2023 497 Thereafter 110,548 Total payments 111,938 Present value adjustment (99,557 ) Present value of net minimum lease payments $ 12,381 The adoption of this ASU did not materially impact Stratus' accounting for contracts in which it is the lessor. Refer to Note 8 of the Stratus 2018 Form 10-K for further disclosure of minimum rental income under non-cancelable long-term leases as of December 31, 2018. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Stratus evaluated events after June 30, 2019 , 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. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Assets and Liabilities of The Saint Mary, L.P. and Kingwood, L.P. | Stratus will continue to evaluate which entity is the primary beneficiary of The Saint Mary, L.P. and the Kingwood, L.P. in accordance with applicable accounting guidance. Stratus’ consolidated balance sheets include the following combined assets and liabilities of The Saint Mary, L.P. and the Kingwood, L.P. (in thousands): June 30, 2019 December 31, 2018 Assets: Cash and cash equivalents $ 601 $ 1,939 Restricted cash — 2,284 Real estate under development 53,576 27,928 Real estate held for investment 7,060 — Other assets 953 792 Total assets $ 62,190 $ 32,943 Liabilities: Accounts payable and accrued liabilities $ 6,246 $ 3,484 Debt 29,608 6,125 Total liabilities $ 35,854 $ 9,609 Net assets $ 26,336 $ 23,334 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of the carrying amount and fair value of other financial instruments | A summary of the carrying amount and fair value of Stratus' other financial instruments follows (in thousands): June 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate swap agreement $ — $ — $ 53 $ 53 Liabilities: Debt 340,622 345,180 295,531 299,531 Interest rate swap agreement 129 129 — — |
Debt Summary of Debt (Tables)
Debt Summary of Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Table [Abstract] | |
Schedule of debt | The components of Stratus' debt are as follows (in thousands): June 30, 2019 December 31, 2018 Goldman Sachs loan $ 142,222 $ 143,250 Comerica Bank credit facility 48,658 50,221 Santal Phase I construction loan 32,672 32,622 Santal Phase II construction loan 24,975 19,867 Lantana Place construction loan 22,372 18,416 Jones Crossing construction loan 19,574 11,784 The Saint Mary construction loan 16,015 — Kingwood Place construction loan 13,593 6,125 West Killeen Market construction loan 7,093 6,636 Amarra Villas credit facility 5,323 3,326 New Caney land loan 4,888 — Barton Creek Village term loan 3,237 3,284 Total debt a $ 340,622 $ 295,531 a. Includes net reductions for unamortized debt issuance costs of $3.1 million at June 30, 2019 , and $2.8 million at December 31, 2018 . |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | Stratus' revenues from contracts with customers follow (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Real Estate Operations: Developed property sales $ 4,048 $ 6,856 $ 6,882 $ 8,011 Commissions and other 81 123 195 162 4,129 6,979 7,077 8,173 Leasing Operations: Rental revenue 4,413 2,331 8,042 4,335 4,413 2,331 8,042 4,335 Hotel: Rooms, food and beverage 8,445 8,908 16,182 17,602 Other 517 685 1,105 1,313 8,962 9,593 17,287 18,915 Entertainment: Event revenue 5,598 3,729 9,822 8,378 Other 622 678 1,194 1,274 6,220 4,407 11,016 9,652 Total Revenues from Contracts with Unaffiliated Customers $ 23,724 $ 23,310 $ 43,422 $ 41,075 |
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 Corporate, Eliminations and Other b Total Three Months Ended June 30, 2019: Revenues: Unaffiliated customers $ 4,129 $ 4,413 $ 8,962 $ 6,220 $ — $ 23,724 Intersegment 4 229 80 45 (358 ) — Cost of sales, excluding depreciation 3,795 2,451 6,868 4,585 (185 ) 17,514 Depreciation 64 1,388 899 396 (44 ) 2,703 General and administrative expenses — — — — 2,919 2,919 Loss on sale of assets — 161 c — — — 161 Operating income (loss) $ 274 $ 642 $ 1,275 $ 1,284 $ (3,048 ) $ 427 Capital expenditures and purchases and development of real estate properties $ 2,458 $ 15,391 $ 156 $ — $ — $ 18,005 Total assets at June 30, 2019 225,084 167,008 98,063 45,491 7,085 542,731 Three Months Ended June 30, 2018: Revenues: Unaffiliated customers $ 6,979 $ 2,331 $ 9,593 $ 4,407 $ — $ 23,310 Intersegment 8 225 50 44 (327 ) — Cost of sales, excluding depreciation 5,560 d 1,331 7,184 3,560 (167 ) 17,468 Depreciation 64 738 894 392 (35 ) 2,053 General and administrative expenses — — — — 3,015 3,015 Operating income (loss) $ 1,363 $ 487 $ 1,565 $ 499 $ (3,140 ) $ 774 Capital expenditures and purchases and development of real estate properties $ 4,087 $ 18,486 $ 97 $ 23 $ — $ 22,693 Total assets at June 30, 2018 207,437 95,954 101,487 36,263 7,547 448,688 Real Estate a Leasing Operations Hotel Entertainment Corporate, Eliminations and Other b Total Six Months Ended June 30, 2019: Revenues: Unaffiliated customers $ 7,077 $ 8,042 $ 17,287 $ 11,016 $ — $ 43,422 Intersegment 9 459 127 74 (669 ) — Cost of sales, excluding depreciation 3,841 e 4,595 13,566 8,192 (341 ) 29,853 Depreciation 125 2,795 1,799 790 (176 ) 5,333 General and administrative expenses — — — — 6,118 6,118 Gain on sale of assets — (1,952 ) c — — — (1,952 ) Operating income (loss) $ 3,120 $ 3,063 $ 2,049 $ 2,108 $ (6,270 ) $ 4,070 Capital expenditures and purchases and development of real estate properties $ 5,756 $ 44,611 $ 254 $ 125 $ — $ 50,746 Municipal utility district (MUD) reimbursements applied to real estate under development e 920 — — — — 920 Six Months Ended June 30, 2018: Revenues: Unaffiliated customers $ 8,173 $ 4,335 $ 18,915 $ 9,652 $ — $ 41,075 Intersegment 16 476 122 58 (672 ) — Cost of sales, excluding depreciation 7,126 d 2,521 14,222 7,696 (352 ) 31,213 Depreciation 125 1,371 1,789 780 (70 ) 3,995 General and administrative expenses — — — — 5,996 5,996 Operating income (loss) $ 938 $ 919 $ 3,026 $ 1,234 $ (6,246 ) $ (129 ) Capital expenditures and purchases and development of real estate properties $ 7,699 $ 42,285 $ 336 $ 361 $ — $ 50,681 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. Relates to the first-quarter 2019 sale of a retail pad subject to a ground lease located in the Circle C community, including adjustments recorded in second-quarter 2019. d. Includes $0.4 million of reductions to cost of sales associated with collection of prior-years' assessments of properties in Barton Creek. e. Stratus received $4.6 million of bond proceeds related to MUD reimbursements of infrastructure costs incurred for development of Barton Creek. Of the total amount, Stratus recorded $0.9 million as a reduction of real estate under development on the consolidated balance sheets, and $3.4 million as a reduction in real estate cost of sales and $0.3 million in other income, net in the consolidated statements of comprehensive loss. Refer to Note 1 of the Stratus 2018 Form 10-K for further discussion of Stratus' accounting policy for MUD reimbursements. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of future minimum payments for leases | The future minimum payments for leases recorded on the consolidated balance sheet at June 30, 2019 , follow (in thousands): Remaining six months of 2019 $ 115 2020 199 2021 145 2022 434 2023 497 Thereafter 110,548 Total payments 111,938 Present value adjustment (99,557 ) Present value of net minimum lease payments $ 12,381 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares excluded from computation of earnings per share (in shares) | 94 | 85 | 95 | 96 |
Related Party Transactions Sain
Related Party Transactions Saint Mary, L.P. (Details) $ in Thousands | Jun. 19, 2018USD ($)unit | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) |
Related Party Transaction [Line Items] | ||||
Cash and cash equivalents | $ 18,073 | $ 19,004 | ||
Restricted cash | 15,566 | 19,915 | ||
Real estate held under development | 142,854 | 136,678 | ||
Other assets | 14,715 | 15,538 | ||
Total assets | 542,731 | 496,493 | $ 448,688 | |
Accounts Payable | 16,461 | 20,602 | ||
Accrued liabilities, including taxes | 9,239 | 11,914 | ||
Total liabilities | $ 402,219 | $ 349,842 | ||
The Saint Mary, L.P. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from Issuance of Private Placement | $ 8,000 | |||
The Saint Mary construction loan | Construction Loan Payable [Member] | The Saint Mary, L.P. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term Debt, Gross | $ 26,000 | |||
Apartment Building [Member] | The Saint Mary [Member] | The Saint Mary, L.P. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of Units in Real Estate Property | unit | 240 | |||
The Saint Mary, L.P. [Member] | LCHM Holdings, L.L.C. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.10% |
Related Party Transactions Stra
Related Party Transactions Stratus Kingwood, L.P. (Details) $ in Thousands | Aug. 03, 2018USD ($)a | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) |
Related Party Transaction [Line Items] | ||||
Cash and cash equivalents | $ 18,073 | $ 19,004 | ||
Restricted cash | 15,566 | 19,915 | ||
Real estate under development | 142,854 | 136,678 | ||
Real estate held for investment, net | 272,274 | 253,074 | ||
Other assets | 14,715 | 15,538 | ||
Total assets | 542,731 | 496,493 | $ 448,688 | |
Debt | 340,622 | 295,531 | ||
Total liabilities | 402,219 | 349,842 | ||
The Saint Mary, L.P. and Stratus Kingwood, L.P. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cash and cash equivalents | 601 | 1,939 | ||
Restricted cash | 0 | 2,284 | ||
Real estate under development | 53,576 | 27,928 | ||
Real estate held for investment, net | 7,060 | 0 | ||
Other assets | 953 | 792 | ||
Total assets | 62,190 | 32,943 | ||
Accounts payable and accrued liabilities | 6,246 | 3,484 | ||
Debt | 29,608 | 6,125 | ||
Total liabilities | 35,854 | 9,609 | ||
Net Assets | $ 26,336 | $ 23,334 | ||
Stratus Kingwood, L.P. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from Issuance of Private Placement | $ 10,700 | |||
Area of Land | a | 54 | |||
Kingwood Place [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payments to Acquire Land | $ 13,500 | |||
Land [Member] | Stratus Kingwood, L.P. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from Issuance of Private Placement | $ 7,000 | |||
Stratus Kingwood, L.P. [Member] | LCHM Holdings, L.L.C. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 8.80% | |||
Kingwood Place Loan [Member] | Notes Payable to Banks [Member] | Stratus Kingwood, L.P. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term Debt, Gross | $ 6,750 |
Related Party Transactions Othe
Related Party Transactions Other Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Immediate Family Member of Management or Principal Owner [Member] | Austin Retail Partners [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 29 | $ 56 |
Dispositions (Details)
Dispositions (Details) - USD ($) $ in Thousands | Jan. 17, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Payments on credit facility | $ 15,648 | $ 4,225 | |||
Gain on sale of assets | $ (161) | $ 0 | $ 1,952 | $ 0 | |
Circle C ground lease | Disposal by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sale, consideration | $ 3,200 | ||||
Revolving Credit Facility | Comerica Credit Facility | Line of credit | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Payments on credit facility | $ 2,500 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest Rate Swap, Assets | $ 0 | $ 53 | |
Long-term Debt, Fair Value | 340,622 | 295,531 | |
Interest Rate Swap, Liabilities | 129 | 0 | |
Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest Rate Swap, Assets | 0 | 53 | |
Long-term Debt, Fair Value | 345,180 | 299,531 | |
Interest Rate Swap, Liabilities | 129 | $ 0 | |
Interest Rate Swap | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative, Fixed Interest Rate | 2.30% | ||
Derivative, Notional Amount | $ 15,500 | $ 15,800 | |
Interest Rate Swap | Forecast | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative, Notional Amount | $ 14,800 |
Debt (Details)
Debt (Details) - USD ($) | Mar. 19, 2019 | Mar. 08, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||||
Debt | $ 340,622,000 | $ 340,622,000 | $ 295,531,000 | ||||
Unamortized debt issuance costs | 3,100,000 | 3,100,000 | 2,800,000 | ||||
Loss on early extinguishment of debt | 0 | $ 0 | (16,000) | $ 0 | |||
Interest costs incurred | 5,100,000 | 3,800,000 | 9,700,000 | 7,200,000 | |||
Interest costs capitalized | 2,100,000 | $ 2,000,000 | 4,200,000 | $ 3,900,000 | |||
Goldman Sachs loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 142,222,000 | 142,222,000 | 143,250,000 | ||||
Comerica Bank credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 48,658,000 | 48,658,000 | 50,221,000 | ||||
Santal Phase I construction loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 32,672,000 | 32,672,000 | 32,622,000 | ||||
Santal Phase II construction loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 24,975,000 | 24,975,000 | 19,867,000 | ||||
Lantana Place construction loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 22,372,000 | 22,372,000 | 18,416,000 | ||||
Jones Crossing construction loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 19,574,000 | 19,574,000 | 11,784,000 | ||||
The Saint Mary construction loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 16,015,000 | 16,015,000 | 0 | ||||
Kingwood Place construction loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 13,593,000 | 13,593,000 | 6,125,000 | ||||
West Killeen Market construction loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 7,093,000 | 7,093,000 | 6,636,000 | ||||
Amarra Villas credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 5,323,000 | 5,323,000 | 3,326,000 | ||||
New Caney land loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 4,888,000 | 4,888,000 | 0 | ||||
Barton Creek Village term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 3,237,000 | 3,237,000 | 3,284,000 | ||||
Land Loan Payable | New Caney land loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt covenant, net asset value | $ 125,000,000 | ||||||
Debt principal | $ 5,000,000 | ||||||
London Interbank Offered Rate (LIBOR) | Amarra Villas credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.00% | ||||||
London Interbank Offered Rate (LIBOR) | Land Loan Payable | New Caney land loan | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.00% | ||||||
Line of credit | Comerica Bank credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit committed | 2,200,000 | 2,200,000 | |||||
Line of credit | Amarra Villas credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, available borrowing capacity | 9,400,000 | 9,400,000 | |||||
Credit facility, maximum borrowing capacity | $ 15,000,000 | $ 8,000,000 | |||||
Debt covenant, net asset value | $ 125,000,000 | ||||||
Debt covenant, debt-to-gross asset value, percent | 50.00% | ||||||
Line of credit | Revolving Credit Facility | Comerica Bank credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, available borrowing capacity | 9,100,000 | 9,100,000 | |||||
Credit facility, maximum borrowing capacity | $ 60,000,000 | $ 60,000,000 |
Profit Participation Incentiv_2
Profit Participation Incentive Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments for Capital Improvements | $ 44,990,000 | $ 42,982,000 | |||
General and administrative expenses | $ 2,919,000 | $ 3,015,000 | 6,118,000 | $ 5,996,000 | |
Other liabilities | 14,869,000 | 14,869,000 | $ 12,525,000 | ||
Deferred Profit Sharing | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments for Capital Improvements | 200,000 | 400,000 | |||
General and administrative expenses | 200,000 | 500,000 | |||
Other liabilities | $ 1,700,000 | 1,700,000 | $ 800,000 | ||
Deferred Compensation Arrangement with Individual, Distribution Paid | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets | $ 11,873 | $ 11,834 | |
Federal Statutory Income Tax Rate | 21.00% | 21.00% |
Business Segments Revenues from
Business Segments Revenues from External Customers for Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Leasing operations - Post Lease ASU Adoption | $ 4,413 | $ 2,331 | $ 8,042 | $ 4,335 |
Total revenues | 23,724 | 23,310 | 43,422 | 41,075 |
Real estate | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 4,129 | 6,979 | 7,077 | 8,173 |
Hotel [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 8,962 | 9,593 | 17,287 | 18,915 |
Entertainment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 6,220 | 4,407 | 11,016 | 9,652 |
Real Estate Operations | Real estate | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 4,129 | 6,979 | 7,077 | 8,173 |
Real Estate Operations | Developed property sales | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 4,048 | 6,856 | 6,882 | 8,011 |
Real Estate Operations | Commissions and other | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 81 | 123 | 195 | 162 |
Leasing Operations | ||||
Revenue from External Customer [Line Items] | ||||
Leasing operations - Post Lease ASU Adoption | 4,413 | 2,331 | 8,042 | 4,335 |
Hotel | Hotel [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 8,962 | 9,593 | 17,287 | 18,915 |
Hotel | Rooms, food and beverage | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 8,445 | 8,908 | 16,182 | 17,602 |
Hotel | Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 517 | 685 | 1,105 | 1,313 |
Entertainment | Entertainment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 6,220 | 4,407 | 11,016 | 9,652 |
Entertainment | Event revenue | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | 5,598 | 3,729 | 9,822 | 8,378 |
Entertainment | Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenue from contracts with customers | $ 622 | $ 678 | $ 1,194 | $ 1,274 |
Business Segments Segment Infor
Business Segments Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Operating Segments | 4 | ||||
Leasing operations - Post Lease ASU Adoption | $ 4,413 | $ 2,331 | $ 8,042 | $ 4,335 | |
Revenues: | |||||
Unaffiliated customers | 23,724 | 23,310 | 43,422 | 41,075 | |
Cost of sales | 17,514 | 17,468 | 29,853 | 31,213 | |
Depreciation | 2,703 | 2,053 | 5,333 | 3,995 | |
General and administrative expenses | 2,919 | 3,015 | 6,118 | 5,996 | |
Gain on sale of assets | 161 | 0 | (1,952) | 0 | |
Operating income (loss) | 427 | 774 | 4,070 | (129) | |
Payments to Acquire and Develop Real Estate | 2,458 | 4,087 | 5,756 | 7,699 | |
Payments for Capital Improvements | 44,990 | 42,982 | |||
Municipal utility district reimbursements applied to real estate under development | 920 | 0 | |||
Total assets | 542,731 | 448,688 | 542,731 | 448,688 | $ 496,493 |
Leasing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Leasing operations - Post Lease ASU Adoption | 4,413 | 2,331 | 8,042 | 4,335 | |
Eliminations and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Revenues: | |||||
Cost of sales | (185) | (167) | (341) | (352) | |
Depreciation | (44) | (35) | (176) | (70) | |
General and administrative expenses | 2,919 | 3,015 | 6,118 | 5,996 | |
Gain on sale of assets | 0 | 0 | |||
Operating income (loss) | (3,048) | (3,140) | (6,270) | (6,246) | |
Payments for Capital Improvements | 0 | 0 | 0 | 0 | |
Municipal utility district reimbursements applied to real estate under development | 0 | ||||
Total assets | 7,085 | 7,547 | 7,085 | 7,547 | |
Barton Creek | |||||
Segment Reporting Information [Line Items] | |||||
Recovery of Direct Costs | 400 | 400 | |||
Real estate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from contracts with customers | 4,129 | 6,979 | 7,077 | 8,173 | |
Revenues: | |||||
Cost of sales | 3,795 | 5,560 | 3,841 | 7,126 | |
Real estate | Real Estate Operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from contracts with customers | 4,129 | 6,979 | 7,077 | 8,173 | |
Municipal bonds | |||||
Revenues: | |||||
Proceeds from MUD reimbursement | 4,600 | ||||
Municipal bonds | Other income, net | |||||
Revenues: | |||||
Proceeds from MUD reimbursement | 300 | ||||
Municipal bonds | Real estate | Cost of sales | |||||
Revenues: | |||||
Proceeds from MUD reimbursement | 3,400 | ||||
Operating Segments | |||||
Revenues: | |||||
Payments for Capital Improvements | 18,005 | 22,693 | 50,746 | 50,681 | |
Operating Segments | Real Estate Operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from contracts with customers | 4,129 | 6,979 | 7,077 | 8,173 | |
Revenues: | |||||
Cost of sales | 3,795 | 5,560 | 3,841 | 7,126 | |
Depreciation | 64 | 64 | 125 | 125 | |
General and administrative expenses | 0 | 0 | 0 | 0 | |
Gain on sale of assets | 0 | 0 | |||
Operating income (loss) | 274 | 1,363 | 3,120 | 938 | |
Payments to Acquire and Develop Real Estate | 5,756 | 7,699 | |||
Municipal utility district reimbursements applied to real estate under development | 920 | ||||
Total assets | 225,084 | 207,437 | 225,084 | 207,437 | |
Operating Segments | Leasing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Leasing operations - Post Lease ASU Adoption | 4,413 | 2,331 | 8,042 | 4,335 | |
Revenues: | |||||
Cost of sales | 2,451 | 1,331 | 4,595 | 2,521 | |
Depreciation | 1,388 | 738 | 2,795 | 1,371 | |
General and administrative expenses | 0 | 0 | 0 | 0 | |
Gain on sale of assets | 161 | (1,952) | |||
Operating income (loss) | 642 | 487 | 3,063 | 919 | |
Payments for Capital Improvements | 15,391 | 18,486 | 44,611 | 42,285 | |
Municipal utility district reimbursements applied to real estate under development | 0 | ||||
Total assets | 167,008 | 95,954 | 167,008 | 95,954 | |
Operating Segments | Hotel | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from contracts with customers | 8,962 | 9,593 | 17,287 | 18,915 | |
Revenues: | |||||
Cost of sales | 6,868 | 7,184 | 13,566 | 14,222 | |
Depreciation | 899 | 894 | 1,799 | 1,789 | |
General and administrative expenses | 0 | 0 | 0 | 0 | |
Gain on sale of assets | 0 | 0 | |||
Operating income (loss) | 1,275 | 1,565 | 2,049 | 3,026 | |
Payments for Capital Improvements | 156 | 97 | 254 | 336 | |
Municipal utility district reimbursements applied to real estate under development | 0 | ||||
Total assets | 98,063 | 101,487 | 98,063 | 101,487 | |
Operating Segments | Entertainment | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from contracts with customers | 6,220 | 4,407 | 11,016 | 9,652 | |
Revenues: | |||||
Cost of sales | 4,585 | 3,560 | 8,192 | 7,696 | |
Depreciation | 396 | 392 | 790 | 780 | |
General and administrative expenses | 0 | 0 | 0 | 0 | |
Gain on sale of assets | 0 | 0 | |||
Operating income (loss) | 1,284 | 499 | 2,108 | 1,234 | |
Payments for Capital Improvements | 0 | 23 | 125 | 361 | |
Municipal utility district reimbursements applied to real estate under development | 0 | ||||
Total assets | 45,491 | 36,263 | 45,491 | 36,263 | |
Eliminations and Other | |||||
Revenues: | |||||
Intersegment | 0 | 0 | 0 | 0 | |
Eliminations and Other | Real Estate Operations | |||||
Revenues: | |||||
Intersegment | 4 | 8 | 9 | 16 | |
Eliminations and Other | Leasing Operations | |||||
Revenues: | |||||
Intersegment | 229 | 225 | 459 | 476 | |
Eliminations and Other | Hotel | |||||
Revenues: | |||||
Intersegment | 80 | 50 | 127 | 122 | |
Eliminations and Other | Entertainment | |||||
Revenues: | |||||
Intersegment | 45 | 44 | 74 | 58 | |
Eliminations and Other | Eliminations and Other [Member] | |||||
Revenues: | |||||
Intersegment | $ (358) | $ (327) | $ (669) | $ (672) |
New Accounting Standards - Narr
New Accounting Standards - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)a | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)a | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||||
Lease right-of-use assets | $ 11,692 | $ 11,692 | $ 11,900 | $ 0 | ||
Lease liabilities | 12,381 | 12,381 | $ 12,000 | $ 0 | ||
Operating lease costs | $ 400 | 700 | ||||
Lease costs | $ 400 | $ 800 | ||||
Operating lease payments | $ 108 | |||||
Lease liabilities, weighted-average discount rate | 6.00% | 6.00% | ||||
Lease liabilities, weighted-average remaining lease term | 94 years 1 month 6 days | 94 years 1 month 6 days | ||||
College Station, Texas | Ground lease | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 99 years | 99 years | ||||
Area of land | a | 72 | 72 |
New Accounting Standards - Futu
New Accounting Standards - Future Minimum Payments for Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Remaining six months of 2019 | $ 115 | ||
2020 | 199 | ||
2021 | 145 | ||
2022 | 434 | ||
2023 | 497 | ||
Thereafter | 110,548 | ||
Total payments | 111,938 | ||
Present value adjustment | (99,557) | ||
Lease liabilities | $ 12,381 | $ 12,000 | $ 0 |