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Bill Armstrong | Chairman, President and Chief Executive Officer |
Erin Pickens | Chief Financial Officer |
Good day, and welcome to the Stratus Properties’ First Quarter 2021 Conference Call. Yesterday, Stratus issued a press release announcing its first quarter 2021 results. The press release is available on Stratus’ website at stratusproperties.com.
Following management’s remarks, we will host a question-and-answer session. Please note this call is being recorded and will be available for replay on Stratus’ website through May 25, 2021. of replay of that and today, considered only the is information should to valid as current May as listening should all note presented be Anyone date. this XX, XXXX
made of projected Stratus’ yesterday’s the XXXX materially reminder, from by may in issued statements, certain will differ press include release could As or made on only and a the in call Please as language factors release Stratus’ those review Stratus. and press this in cautionary cause speak forward-looking differ Form risk the projected expected, assumed to materially date comments those from and yesterday that anticipated, be included statements. the which results that forward-looking actual actual described results XX-K
taxes, Principles, will amortization, to a financial management discuss and to EBITDA, U.S. interest, under also Accounting recognized before earnings Generally which depreciation as addition, Accepted referred measure is referred also GAAP. In as not
SEC Officer yesterday. financial in the by these to and Bill measures of press Stratus’ Armstrong, to required non-GAAP schedules over would Properties. Executive financial Chairman, reconciled issued now conference release measures to most Chief turn like GAAP supplemental of rules Mr. As Stratus I their comparable the President are
quarter for joining you conference Thank our XXXX first call.
Erin Our with me also Officer, is Chief today. Financial here Pickens
comment the pandemic and COVID-XX Before I impact provide like Stratus. updates on our retail on would to its and residential properties, briefly I on continued
economy businesses the at our the and pandemic ensuring our quickly of tenants year, recovered. and people as the taking reopen to by know, our liquidity, outset thrive positioning As of you managing last responded care we and
closely cost and hotel open, containment with our prudent to W Our operator hotel Austin remained we measures. implement have has worked
efforts. experience the now beginning these are We of benefits to
opportunities in are in in are Houston comfortable job and continue entering our Capacity with restrictions the is public the is an increase widely area in city the of grow Austin the Austin Dallas we more events. The and population including relaxing And and to raw is increasingly out a and more activity. country, becoming where the travel more fastest and population According restaurants The of available. XXXX. Business Journal, growing becoming Austin’s thrive fourth terms from growth, We to communities in Austin to operate vaccine to Houston. per XXXX XXX after season. day hopeful people Phoenix, venturing markets, with average
in of the based of Texas. these cities three So, quickly four growing are
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creating evolving members, focused families. are newcomers that both community We on themselves for tastes originally these from the and new those a maintaining who looking their of our are and and meets portfolio opportunities for areas
selling, moment. From emphasized before, in aim The including to we with portfolio, quarter are we refinancing entitlements, operations, Place The Saint this our land, Place loan leasing strategy. with maintaining have I or our stabilizing Lantana Holden we new development As full which in Kingwood as describe Santal in ultimately and Mary the doing properties of are detail refinancings of and year. a first into done more will two part holding as To have properties, as of across of acquiring Stratus, cycle focused a currently development stages and developing diversified accomplishing multiple Saint and securing designing June Hills, and projects we and we as projects manage The at regionally properties, with
in our some projects. executing remain successful and our of While strategy cycle past to markets. discussion now I year development prosperous on the was focused unusual, active will turn on full the we capitalizing Texas
store We from beloved continue retail often the properties located anchored grocery HEB. to anchored well benefit shadow by or Texas
collaborate as and allow us such Our with strong communities to relationship value. our build HEB partner with long-term
be of single-family develop space. multi-family opportunities multiple development. and of anchored shadow are XXX HEB stages pad pipeline by feet and our Nine units. XX,XXX plan square example various commercial HEB will for in to that lots is sites XXX and for with properties have Magnolia We Place
it our include retail and grocery-anchor showing of Crossing, development five a Caney acres site of substantially with also XX lease. development land retail component another New a XXXX approximately mixed mixed-use great the follow Texas restaurants use first Coordinating of from by all in relevant acquiring to that phase of and Jones as HEB and opening XX% College leased the planned necessary of with leased the project multi-family entitlements, the space. the the pad through process with and to HEB by in of we third stabilizing currently. be construction XX-year acres agencies is Station, XXXX the ground cycle store obtain grocery end will of September anchored in year, XXXX HEB permits how in the completing property example, and thorough quarter XX the
XXX,XXX In addition, vacant in five development Jones pad we commercial have of of acres potential approximately square estimated feet XX approximately undeveloped Crossing, at space sites. with
options take low our for to continue options we considering a are Crossing regularly rate well. selling project Currently, time, project leasing We market. At loan the operations. review component of refinancing, we improve or multi-family advantage from Jones multiple same the holding this the of as evaluate refinancing terms to interest the property and to for
based property, able $X.X loan April floor recently capitalize environment, refinanced effective we have rate budget. interest of and on for process, Santal interest on interest points XX% the end the on construction in already on XXX and retail lower able XX% to reduced continue of with the XX, is schedule was X.X%, remain by foot to the we’re on lease through grocery-anchored lease multi-family our in XXXX. community. Houston. In to square Place, HEB We HEB with square the of XXX,XXX designed another duration year. The plan store August space pads, Bank The of continuing construction current XXXX, a key XX,XXX properties. and now walk development Throughout land XXXX, XXX-unit a and cycle. Kingwood acquired we to parcel plan is HEB loan up other of by November development one a northeast current began Texas, basis annual interest XX-acre in space, in to tract rate to this was of and of completed on like lenders we to the component. annual multi-family We project approximately was located include secured team feet XXXX, opening retail our that I been a resulting approximately a The million for XXXX. in low approximately lease The suburb rate refinancing on would loan XXX-unit to December of construction planning developed rates. from acquired follows the successfully and the Comerica of mixed-use which five-retail Stratus’ Kingwood, focused that grocery the project explore XX-acre permits further We savings and
We property shareholders. continue to paths to for consider with multiple company of and goal the our this value optimizing the its
As ongoing I’m the trend online accelerated are you toward during has shopping COVID-XX the aware, sure pandemic.
and tenants into evolution projects plans. retail these multi-family food of We have and in these beverage development believe will space by and Stratus for space, this of residential been that adjusting our to our incorporating mix overtime. more the more entertainment preserve We economics trends
legacy garden residential in a million. Circle a of Austin price Austin C apartment emphasize this style turning properties our like successful those development to would another similar in was in to Circle our part in for we properties sold record This the example land MSA. community was development our Austin. assets Now, C the unit complex I January, The real in $XX for The how of great In community portfolio. the Saint program. estate for XXX-unit per Mary,
obtain permits. team Stratus Our the with parties worked relevant necessary to
popular designed Slaughter nearby targeted to Greenbelt in to project in This was Building was financing. commenced XXXX. workforce project and Austin, approved arrange Creek infinity-edge design, for Energy Program. Trail. December contemporary to pool, bank third equity Our Construction center, Green Creek feature in XXXX. options, June appeal include the recreational amenities the raised hiking completed spots, and Austin the capital party Barton team technology-based We The It a and fitness Southwest including thoughtfully
first XXXX. and sale on in date The project during up three project team a finance lease the XXXX, took less was the tenant record approximately at sale pandemic January, our expedited all close the of the and manage than in short, July construction and occupancy In price on oversaw in XX% leased a years.
We thrive are continuing properties in other residential the to our witness market. Austin
now the booming We have Hills, this to Austin plans our and Section development the known Holden that is market. believe time right pursue as of given reworking property completed the KLO formerly for
for use minimize the Holden abutting of a feature consists its living of community’s community This conservation natural our hillsides, to extensive of As residences community XX final for the footprint unique existing release in is also carbon use rock will housing. incorporate classic, in designed mentioned press our in popular to and meets This focus and Barton sustainability, residential Barton new Creek. wellness this acres XXX project phases. Country is growing and on Hill Creek multiple Greenbelt, development escarpment within community will the energy, non-toxic to waterways, buildings connected solar healthier trees, XXX Barton project Creek, The the demand creating including of energy space. materials embrace including setting renewable the Hills property surroundings. will and sustainable indoor The outcroppings will a properties April
encouraging is we are the forward from as plans. with environmental which move leaders, We support our receiving local
commence been clearing our Barton initiate of turning of The in to within on and Saint multi-family has quarter subject financing. to completion June, second subdivision multi-family completed, the in XXXX properties. a we We the project which Amarra announced that That expect later March, work in to site Now, Creek. construction XXX-unit previously we is
Place to yet XXX goals. supports continue Barton development of projects in on projects, are and as located is commercial these Holden that sites our to units residential which the within to we other multi-family multi-family and session adjacent ready progress in multi-family the pursuing well make XXX units Creek are in, we project multi-family we not community. Hills Separately, Lantana Additional multi-family Lakeway, disclose. and include Each
XXXX a beautiful We first financial space rise are will focus Barton sustainable amenity. the Similar mixed-use surroundings. quarter extensive on to natural XXX-acre to over our evaluating Erin? Creek’s ensure an green for results. now call I surrounded tract and we project Erin approximately redesign will of is Holden mid our turn to by we Hills, review dense, incorporate design
Mary in XXXX favorably issued totaled results. This compared the $X per first Thank $X.X of the $X.X you, of decrease and to press revenues XXXX quarter with stockholders first quarter announcing to Saint a decreased. million quarter the in net of of the Operations XXXX partially in ongoing million $X.X from The to quarter attributable XXXX year on The a million quarter as lots $XX.X revenues the operating XXXX gain reflects COVID-XX in Revenue million with has the decreased, quarter our quarter also common from in totaled is results $XX.X of last operating $X.X income Saint moderately $X.XX hotel of XXXX, last per in or a compared the share from I’ll in the the first year. to reporting Real homes while offset segment XXXX. of of Stratus first million our sold of million compared sale brief during pandemic. compared first loss in the this Stratus’ million of increased release our the entertainment the due quarter the our The $XX.X decrease first of include EBITDA in $X.XX income increase losses by first million, Estate quarter of the provide totaled $XX.X from quarter’s segments $X.X quarter consolidated to million, number And commentary totaled sale XXXX. quarter million inventory million available the we share This on and year. first Yesterday on in first segments. Net the XXXX. first first primarily or and Bill. $XX.X Mary. recent of of now gain resulting
multi-family five-acre at During the the two residences Phase Amarra condominium of at unit million. for sold Drive W Amarra and first of $X.X last III Drive, land tract Austin and a our total quarter, we lots
at subsequent the of lots contract As March of developed which was first million sold Drive, under XX had unsold $X.X the one quarter. of XXXX, we end three to only and for Amarra
disclosed last in in the the from first leases, the that as real tenants we As believe all for continued multi-family of our live. monthly quarter on first place trends and we the previously have to in in we have rent recent from our base well our all in the benefit our substantially operations Leasing mentioned Operations compared have our and deferral the home year. of as quarter estate from in recognition centric properties full previously, Operating of leasing segment a quarter driven year. XX with Austin to operations desirable and from Revenues of the last Leasing segment for and million $XX.X which continue million are our $X.X our pandemic to the added days $X.X the compared Operations January as quarter rent paying for of the sale including quarter Saint increased $X.X to primarily first arrangements. first million Mary reflects Mary, gain XXXX sale $X.X of only generating $XX.X January, leasing The through million, This revenue the The first the in Saint in million reported rental million, and year. of quarter in Despite of totaled million currently retail decrease income payments on revenue tenants $X their last retained of XX, the sale first pre-pandemic to pandemic, have new The a tenants pursuant and revenue hope travel, event. rates our regional shows occupancy weekends group a stronger revenues and due of return declined in first see night certainly $X.X a of last we XXXX in operating from in year. of first hotel million been to the well. until $X.X operating million the was recent as by several XXXX, quarter Saturday $X quarter which loss weekday was which is the totaled the Stratus’ XXXX compared pandemic above XX% quarter loss hotel’s segment’s quarter Saturday with income segment’s first $X.X quarter high in This of available of was totaled million last last from decrease quarter. year, million operating in the compared not revenues late first average from of XX% in Revenue loss $XX in first The the XX% continued the of business first with in of an for XX% year. with first operating million, quarter of XXXX. of million $X.X last one affected up quarter XXXX all last for of quarter million occupancy to or quarter $X.X first $X.X This $X.X RevPAR for quarter of the was in the of in Entertainment million to the to year. increases first the a fourth year. per room XXXX, compared $XXX COVID-XX
innovative Live over and talented continue entertainment dedicated programming to currently ACL XTEN results are Our create at We filled improved our capacity to time. schedules see ACL as and employees and increases expect at Live Stratus venues.
show In first over fact, Austin City audience Limits with a its year. a recently live in taped
million million December debt At management. consolidated capital XX, of totaled debt to cash XXXX, now consolidated and $XXX.X XXXX. consolidated million $XXX.X totaled Turning cash $XX.X March million, at $XX.X XX, and with compared at consolidated
expenditure had Bill we Comerica Stratus date $XX Subsequent XXXX, as interest of rate to Creek primarily months facility. million real The mentioned, loan development to Place, the Villas. Kingwood the first properties. and of as maturity Amarra Jones Bank cash savings Barton resulting approximately Lantana credit XXXX three interest capital a million quarter reflected first based in to Creek related of totaled is cash XXXX, $X.X million flows for primarily development Crossing, Santal to as the three million $X.X $X.X on to the current available compares and March Purchases estate This reflected XX, modification million of in the end for of operating $XX.X October to of XXXX Barton annual including extend our rates. related properties well X, and properties, completed flows, development in As of of to investing reduce the under Place, months
We I’ll Thank for and you XX be for will debt months. believe at service meet and the we continue back Bill cash able his remarks. our to next call that other turn closing to to the least now obligations
Thank forward feel to second continue encouraged facts quarter. into several you, important we the Erin. continue by I as
significant has of is population in Austin’s at wide and of outstanding for growth the housing range resulted First, prices. a a demand
is resilient the strong from and steady we and our operates a impacts Second, in recovery markets of the company witnessing pandemic. are
pandemic experiencing We we the but are improvement. with through are yet, now positive
certain to cost our We in take materials, particularly prudently we will continue manage increases opportunities. construction including lumber costs that of new advantage
at almost our initiatives Our retail evaluating evaluation conversion. REIT Creek demand; we’re we committed value have our is including to centers sold inventory potential a drawing fully single-family of all for strategic are a lot our strong And previously that all shareholders, tenant premium. And multi-family occupied. at could property Barton create of announced Stratus,
free a of before its with will its participants shareholders the remains whether remind proxy ultimately Meeting. REIT filed would recommends SECs conversion proxies April through website and definitive WHITE or proxy solicitation Further, is reminder, in or from proxy can company decide converts investors through XXXX documents information. the the set section with entirety filed a their SEC, the Stratus in www.sec.gov. carefully up the Card the to in the Information and participants the if the company company statement www.stratusproperties.com Shareholders the Annual XXXX identity the all company Meeting. to As with at officers are On important you C-corporation. the strongly proxies accompanying in SEC within forth directors, of company’s connection I the their connection strategy, the company’s of and in company open in be the website, statement XXXX, the or Proxy regarding of we for statement, solicitation indirect they and filed in executive materials call Proxy are by company board certain Annual to direct SEC to for our the a Card with as XX the by the encouraged the the that read contain REIT other interest holdings, a security or shareholders Q&A, which found like other otherwise,
on not the the this I’ll At will Thank We you open time, contest call. the for on questions. line to ask comment for Oasis with operator listening. all proxy this
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