Stratus Properties (STRS) Q1 2026 earnings summary

Executive summary

• Approved a plan of complete liquidation and dissolution, pending stockholder approval, with estimated liquidating distributions of $29.73 to $37.69 per share.

• Significant asset monetization in Q1 2026, including the $60.8 million sale of Kingwood Place and contracts for other property sales.

• Focused on maximizing asset value, cost control, and returning capital to stockholders through efficient execution of the liquidation plan.

• Revenues for Q1 2026 were $3.8 million, down from $5.0 million in Q1 2025, mainly due to property sales.

• Net income attributable to common stockholders was $6.6 million ($0.82 per diluted share) versus a loss of $2.9 million ($-0.36 per share) in Q1 2025.

Financial highlights

• Q1 2026 net income: $13.5 million, compared to a net loss of $3.8 million in Q1 2025.

• Operating income: $15.4 million in Q1 2026, up from a loss of $3.6 million in Q1 2025.

• EBITDA reached $17.1 million in Q1 2026, up from $(2.3) million in Q1 2025.

• Major gain from the sale of Kingwood Place ($23.0 million pre-tax, $13.4 million net of noncontrolling interests).

• Cash and cash equivalents at March 31, 2026: $73.5 million; total debt: $144.4 million.

Outlook and guidance

• Plan of Liquidation subject to stockholder approval at the June 1, 2026 annual meeting.

• Pending approval, strategy will shift to orderly asset sales and winding down operations.

• Sufficient liquidity projected for at least the next 12 months, with anticipated asset sales to further support cash needs.

• Ongoing negotiations and contracts for additional asset sales, including Jones Crossing and New Caney land.

• If liquidation is not approved, will continue current business strategy and may explore further alternatives.