Stratus Properties Inc. reported third‑quarter 2025 revenue of $4.969 million, a 44% decline from the $8.9 million it generated in the same period a year earlier. The drop reflects the absence of large property sales in Q3 2025; the company had no major Real Estate Operations transactions that quarter, and its pipeline projects—The Saint George and Holden Hills Phase 1—were still in development and not yet generating revenue.
The company posted a net loss attributable to common stockholders of $5.0 million for Q3 2025, compared with a $0.4 million loss in Q3 2024. The widening loss is largely driven by an operating loss in Real Estate Operations, offset by a modest $317 k operating profit in Leasing Operations. The lack of sales revenue, combined with ongoing development costs, pushed the company into a larger quarterly loss.
Over the first nine months of 2025, Stratus generated $21.617 million in revenue, down 50% from the $43.9 million reported for the same period a year earlier. Net loss for the nine‑month period was $7.6 million, versus a net income of $2.5 million in 2024. The sharp decline in revenue and the shift from profit to loss underscore the lumpy nature of the company’s revenue model.
Cash and cash equivalents rose to $55.0 million at September 30, 2025, up from $20.2 million at the end of 2024, while total debt increased to $203.9 million from $194.9 million. The liquidity boost is largely attributable to a $47.8 million distribution from the Holden Hills Phase 2 partnership and the planned sale of Lantana Place – Retail for approximately $57.4 million, which is expected to further strengthen the balance sheet.
Management highlighted that stabilized assets such as The Saint June maintained strong performance, and that key development projects are progressing toward completion. Chairman and CEO William Armstrong III noted that the company’s strengthened cash position provides flexibility to explore a variety of attractive alternatives, including debt reduction, share repurchases, or reinvestment in development. The company’s current ratio of 1.54 and debt‑to‑equity ratio of 1.12 indicate moderate liquidity, but an Altman Z‑Score of 0.52 places it in the distress zone, underscoring the need for careful debt management.
The results signal a challenging near‑term outlook: revenue growth is constrained by the lumpy sales cycle, and the company remains in a net‑loss position. However, the improved liquidity and ongoing progress on development projects provide a tailwind that could support future revenue generation once the pipeline assets are completed and sold. Investors will monitor how Stratus translates its development progress into revenue and whether the cash cushion can sustain continued project execution amid market headwinds.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.