Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 29, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 St., 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 161.7 | ||
Entity Common Stock, Shares Outstanding | 8,199,078 | ||
Documents Incorporated by Reference | Portions of our proxy statement for our 2020 annual meeting of stockholders are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this report. | ||
Entity Central Index Key | 0000885508 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 8,765 | $ 7,902 |
Restricted cash | 5,844 | 6,311 |
Real estate held for sale | 14,872 | 16,396 |
Real estate under development | 95,026 | 136,678 |
Land available for development | 45,539 | 24,054 |
Real estate held for investment, net | 197,817 | 117,679 |
Lease right-of-use assets | 11,378 | |
Deferred tax assets | 12,311 | 11,834 |
Other assets | 11,068 | 11,669 |
Assets held for sale - discontinued operations | 158,748 | 163,970 |
Total assets | 561,368 | 496,493 |
LIABILITIES AND EQUITY | ||
Accounts payable | 14,459 | 18,421 |
Accrued liabilities, including taxes | 6,169 | 6,346 |
Debt | 224,565 | 152,281 |
Present value of net minimum lease payments | 12,636 | |
Deferred gain | 7,654 | 9,270 |
Other liabilities | 6,578 | 5,543 |
Liabilities held for sale - discontinued operations | 155,225 | 157,981 |
Total liabilities | 427,286 | 349,842 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, par value $0.01 per share, 150,000 shares authorized, 9,330 and 9,288 shares issued, respectively and 8,197 and 8,164 shares outstanding, respectively | 93 | 93 |
Capital in excess of par value of common stock | 186,082 | 186,256 |
Accumulated deficit | (43,567) | (41,103) |
Common stock held in treasury, 1,133 shares and 1,124 shares, at cost, respectively | (21,509) | (21,260) |
Total stockholders’ equity | 121,099 | 123,986 |
Noncontrolling interests in subsidiaries | 12,983 | 22,665 |
Total equity | 134,082 | 146,651 |
Total liabilities and equity | $ 561,368 | $ 496,493 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position (Parentheticals) [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 150,000 | 150,000 |
Common Stock, Shares, Issued | 9,330 | 9,288 |
Common Stock, Shares, Outstanding | 8,197 | 8,164 |
Treasury Stock, Shares | 1,133 | 1,124 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||
Revenue | $ 13,785 | $ 16,778 |
Leasing operations | 16,218 | 8,211 |
Total revenues | 30,003 | 24,989 |
Cost of sales: | ||
Real estate operations | 9,466 | 15,444 |
Leasing operations | 8,069 | 3,644 |
Depreciation | 5,591 | 2,824 |
Total cost of sales | 23,126 | 21,912 |
General and administrative expenses | 11,344 | 10,314 |
Gain on sales of assets | (5,683) | 0 |
Total | 28,787 | 32,226 |
Operating income (loss) | 1,216 | (7,237) |
Interest expense, net | (4,248) | (198) |
(Loss) gain on interest rate derivative instruments | (188) | 187 |
Loss on early extinguishment of debt | (247) | 0 |
Other Nonoperating Income (Expense) | 424 | 56 |
Loss before income taxes and equity in unconsolidated affiliates’ (loss) income | (3,043) | (7,192) |
Equity in unconsolidated affiliates’ (loss) income | (19) | 1,150 |
Benefit from income taxes | 275 | 695 |
Loss from continuing operations | (2,787) | (5,347) |
Income from discontinued operations | 320 | 1,361 |
Net (loss) income and total comprehensive (loss) income | (2,467) | (3,986) |
Total comprehensive loss attributable to noncontrolling interests | 3 | 4 |
Net loss and total comprehensive loss attributable to common stockholders | $ (2,464) | $ (3,982) |
Basic and diluted net (loss) income per share attributable to common stockholders: | ||
Continuing operations (in dollars per share) | $ (0.34) | $ (0.66) |
Discontinued operations (in dollars per share) | 0.04 | 0.17 |
Earnings per share (in dollars per share) | $ (0.30) | $ (0.49) |
Basic and diluted weighted-average common shares outstanding (in shares) | 8,182 | 8,153 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flow from operating activities: | ||
Net income (loss) | $ (2,467) | $ (3,986) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 11,006 | 8,571 |
Cost of real estate sold | 7,210 | 10,283 |
Gain on sales of assets | (5,683) | 0 |
Loss (gain) on interest rate derivative contracts | 188 | (187) |
Loss on early extinguishment of debt | 247 | 0 |
Debt issuance cost amortization and stock-based compensation | 1,574 | 1,859 |
Equity in unconsolidated affiliates’ loss (income) | 19 | (1,150) |
Return on investment in unconsolidated affiliate | 0 | 1,251 |
Increase in deposits | 75 | 507 |
Deferred income taxes, excluding U.S. tax reform charge | (318) | (588) |
U.S. tax reform charge | 0 | 215 |
Purchases and development of real estate properties | (11,277) | (43,660) |
Municipal utility districts reimbursements | 1,143 | 0 |
Increase in other assets | (2,241) | (4,038) |
Decrease in accounts payable, accrued liabilities and other | (1,836) | (966) |
Net cash used in operating activities | (2,360) | (31,889) |
Cash flow from investing activities: | ||
Capital expenditures | (62,550) | (61,932) |
Proceeds from sales of assets | 10,820 | 0 |
Payments on master lease obligations | (1,798) | (2,112) |
Purchase of noncontrolling interests in consolidated subsidiaries | (10,345) | 0 |
(Investment in) return of investment in unconsolidated affiliates | (9) | 26 |
Net cash used in investing activities | (63,882) | (64,018) |
Cash flow from financing activities: | ||
Borrowings from credit facility | 27,186 | 34,436 |
Payments on credit facility | (34,925) | (9,981) |
Borrowings from project loans | 143,318 | 56,999 |
Payments on project and term loans | (67,943) | (6,693) |
Cash dividend paid | (31) | (32) |
Stock-based awards net payments | (234) | (131) |
Noncontrolling interests’ (distributions) contributions | (90) | 22,589 |
Financing costs | (1,366) | (1,751) |
Net cash provided by financing activities | 65,915 | 95,436 |
Net decrease in cash, cash equivalents and restricted cash | (327) | (471) |
Decrease (increase) in cash, cash equivalents and restricted cash in assets held for sale | (723) | 3,154 |
Cash, cash equivalents and restricted cash at beginning of year | 14,213 | 17,838 |
Cash, cash equivalents and restricted cash at end of year | $ 14,609 | $ 14,213 |
Consoldiated Statements of Equi
Consoldiated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Common Stock Held in Treasury | Total Stratus Stockholders' Equity [Member] | Noncontrolling Interest in Subsidiaries [Member] |
Balance (in shares) at Dec. 31, 2017 | 9,250 | 1,117 | |||||
Balance at Dec. 31, 2017 | $ 127,390 | $ 93 | $ 185,395 | $ (37,121) | $ (21,057) | $ 127,310 | $ 80 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercised and issued stock-based awards (in shares) | 38 | ||||||
Exercised and issued stock-based awards | 72 | 72 | 72 | ||||
Stock-based compensation | 789 | 789 | 789 | ||||
Tender of shares for stock-based awards (in shares) | 7 | ||||||
Tender of shares for stock-based awards | (203) | $ (203) | (203) | ||||
Noncontrolling interests' contributions | 22,589 | 22,589 | |||||
Total comprehensive income (loss) | (3,986) | (3,982) | (3,982) | (4) | |||
Balance (in shares) at Dec. 31, 2018 | 9,288 | 1,124 | |||||
Balance at Dec. 31, 2018 | 146,651 | $ 93 | 186,256 | (41,103) | $ (21,260) | 123,986 | 22,665 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercised and issued stock-based awards (in shares) | 42 | ||||||
Exercised and issued stock-based awards | 15 | 15 | 15 | ||||
Stock-based compensation | 397 | 397 | 397 | ||||
Forfeited dividends | 11 | 11 | 11 | ||||
Tender of shares for stock-based awards (in shares) | 9 | ||||||
Tender of shares for stock-based awards | (249) | $ (249) | (249) | ||||
Noncontrolling interests distributions | (90) | (90) | |||||
Purchase of noncontrolling interests in consolidated subsidiaries | (10,186) | (597) | (597) | (9,589) | |||
Total comprehensive income (loss) | (2,467) | (2,464) | (2,464) | (3) | |||
Balance (in shares) at Dec. 31, 2019 | 9,330 | 1,133 | |||||
Balance at Dec. 31, 2019 | $ 134,082 | $ 93 | $ 186,082 | $ (43,567) | $ (21,509) | $ 121,099 | $ 12,983 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Principles of Consolidation. Stratus Properties Inc. (Stratus), a Delaware corporation, is engaged primarily in the acquisition, entitlement, development, management, operation and sale of commercial, and multi-family and single-family residential real estate properties in the Austin, Texas area, and other select markets in Texas. The real estate development and marketing operations of Stratus are conducted primarily through its wholly owned subsidiaries. Stratus consolidates its wholly owned subsidiaries, subsidiaries in which Stratus has a controlling interest and variable interest entities (VIEs) in which Stratus is deemed the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. Refer to Note 4 for a discussion of Stratus' discontinued operations. Concentration of Risks. Stratus conducts its operations in the Austin, Texas area and other select markets in Texas. Consequently, any significant economic downturn in the Texas market, and the Austin market specifically, could potentially have an effect on Stratus’ business, results of operations and financial condition. Use of Estimates. The preparation of Stratus’ financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include the estimates of future cash flow from development and sale of real estate properties used in the assessment of impairments; profit recognition related to the sales of real estate; deferred income taxes and related valuation allowances; income taxes; allocation of certain indirect costs; profit pools under the Profit Participation Plan; and asset lives for depreciation. Actual results could differ from those estimates. Cash and cash equivalents. All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. Real Estate. Real estate held for sale is stated at the lower of cost or fair value less costs to sell. The cost of real estate held for sale includes acquisition, development, construction and carrying costs, and other related costs incurred through the development stage. Real estate under development and land available for development are stated at cost. Real estate held for investment is stated at cost, less accumulated depreciation. Stratus capitalizes interest on funds used in developing properties from the date of initiation of development activities through the date the property is substantially complete and ready for use, sale or lease. Common costs are allocated based on the relative fair value of individual land parcels. Certain carrying costs are capitalized for properties currently under active development. Stratus capitalizes improvements that increase the value of properties and have useful lives greater than one year. Costs related to repairs and maintenance are charged to expense as incurred. Stratus performs an impairment test when events or circumstances indicate that an asset’s carrying amount may not be recoverable. Events or circumstances that Stratus considers indicators of impairment include significant decreases in market values, adverse changes in regulatory requirements (including environmental laws), significant budget overruns for properties under development, and current period or projected operating cash flow losses from properties held for investment. Impairment tests for properties held for investment and properties under development involve the use of estimated future net undiscounted cash flows expected to be generated from the operation of the property and its eventual disposition. If projected undiscounted cash flow is less than the related carrying amount, then a reduction of the carrying amount of the long-lived asset to fair value is required. Generally, Stratus determines fair value using valuation techniques such as discounted expected future cash flows. Impairment tests for properties held for sale involve management estimates of fair value based on estimated market values for similar properties in similar locations and management estimates of costs to sell. If estimated fair value less costs to sell is less than the related carrying amount, then a reduction of the carrying amount of the asset to fair value less costs to sell is required. Stratus recorded no impairment charges for the two years ended December 31, 2019. Should market conditions deteriorate in the future or other events occur that indicate the carrying amount of Stratus’ real estate assets may not be recoverable, Stratus will reevaluate the expected cash flows from each property to determine whether any impairment exists. Depreciation. Real estate held for investment is depreciated on a straight-line basis over the properties' estimated lives of 30 to 40 years. Furniture, fixtures and equipment are depreciated on a straight-line basis over a 3 to 15-year period. Tenant improvements are depreciated over the related lease terms. Accrued Property Taxes. Stratus estimates its property taxes based on prior year property tax payments and other current events that may impact the amount. Upon receipt of the property tax bill, Stratus adjusts its accrued property tax balance at year-end to the actual amount of taxes due for such year. Accrued property taxes included in accrued liabilities totaled $3.7 million at December 31, 2019, and $3.8 million at December 31, 2018. Revenue Recognition. 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. Consideration is reasonably determined and deemed likely of collection when Stratus has signed sales agreements and has determined that the buyer has demonstrated a commitment to pay. Stratus recognizes its rental income on a straight-line basis based on the terms of its signed leases with tenants. Recoveries from tenants for taxes, insurance and other commercial property operating expenses are recognized as revenues in the period the related costs are incurred. Stratus recognizes sales commissions and management and development fees when earned, as properties are sold or when the services are performed. Cost of Sales. Cost of sales includes the cost of real estate sold as well as costs directly attributable to the properties sold, properties held for sale, and land available for development, such as marketing, maintenance and property taxes. Cost of sales also includes operating costs and depreciation for properties held for investment and municipal utility district reimbursements. A summary of Stratus’ cost of sales follows (in thousands): Years Ended December 31, 2019 2018 Leasing Operations $ 8,069 $ 3,644 Depreciation 5,591 2,824 Cost of developed property sales 7,672 10,664 Project expenses and allocation of overhead costs (see below) 5,299 5,152 Municipal utility district reimbursements (see below) (3,360) — Other, net (161) (397) Cost of undeveloped property sales 16 25 Total cost of sales $ 23,126 $ 21,912 Allocation of Overhead Costs. Stratus allocates a portion of its overhead costs to both capitalized real estate costs and cost of sales based on the percentage of time certain employees worked in the related areas (i.e. costs of construction and development activities are capitalized to real estate under development, and costs of project management, sales and marketing activities are charged to expense as cost of sales). Stratus capitalizes only direct and certain indirect project costs associated with the acquisition, development and construction of a real estate project. Indirect costs include allocated costs associated with certain pooled resources (such as office supplies, telephone and postage) which are used to support Stratus’ development projects, as well as general and administrative functions. Allocations of pooled resources are based only on those employees directly responsible for development (i.e., project managers and subordinates). Stratus charges to expense indirect costs that do not clearly relate to a real estate project, such as all salaries and costs related to its Chief Executive Officer and Chief Financial Officer. Municipal Utility District Reimbursements. Stratus capitalizes infrastructure costs and receives Barton Creek municipal utility district (MUD) reimbursements for certain infrastructure costs incurred in the Barton Creek area. MUD reimbursements received for infrastructure projects are recorded as a reduction of the related asset’s carrying amount or cost of sales if the property has been sold. Stratus has long-term agreements with seven independent MUDs in Barton Creek to build the MUDs’ utility systems and to be eligible for future reimbursements for the related costs. In November 2017, the city of Magnolia and the state of Texas approved the creation of a MUD which will provide an opportunity for Stratus to recoup approximately $26 million over the life of the project for future road and utility infrastructure costs incurred in connection with its development of Magnolia Place, a mixed-use project that will be shadow-anchored by an H-E-B, L.P. (HEB) grocery store. Stratus received $4.8 million of proceeds in 2019 related to Travis County MUD reimbursements of infrastructure costs incurred for development of Barton Creek. Of the total amount, Stratus recorded $1.1 million as a reduction of real estate under development on the consolidated balance sheet, and $3.4 million as a reduction in real estate cost of sales and $0.3 million in other income, net in the consolidated statement of comprehensive loss. The amount and timing of MUD reimbursements depends upon the respective MUD having a sufficient tax base within its district to issue bonds and obtain the necessary state approval for the sale of the bonds. Because the timing of the issuance and approval of the bonds is subject to considerable uncertainty, coupled with the fact that interest rates on such bonds cannot be fixed until they are approved, the amounts associated with MUD reimbursements are not known until approximately one month before the MUD reimbursements are received. To the extent the reimbursements are less than the costs capitalized, Stratus records a loss when such determination is made. MUD reimbursements represent the actual amounts received. Advertising Costs. Advertising costs are expensed as incurred and are included as a component of cost of sales. Advertising costs totaled $0.6 million in 2019 and $0.2 million in 2018. Income Taxes. Stratus accounts for deferred income taxes under an asset and liability method, whereby deferred tax assets and liabilities are recognized based on the tax effects of temporary differences between the financial statements and the tax basis of assets and liabilities, as measured by currently enacted tax rates. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in income or loss in the period in which such changes are enacted. Stratus periodically evaluates the need for a valuation allowance to reduce deferred tax assets to estimated recoverable amounts. Stratus establishes a valuation allowance to reduce its deferred tax assets and records a corresponding charge to earnings if it is determined, based on available evidence at the time, that it is more likely than not that any portion of the deferred tax assets will not be realized. In evaluating the need for a valuation allowance, Stratus estimates future taxable income based on projections and ongoing tax strategies. This process involves significant management judgment about assumptions that are subject to change based on variances between projected and actual operating performance and changes in Stratus’ business environment or operating or financial plans. See Note 7 for further discussion. 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 88 thousand shares for the year 2019 and 96 thousand shares for the year 2018 associated with restricted stock units (RSUs) and outstanding stock options that were anti-dilutive because of net losses. Stock-Based Compensation. Compensation costs for share-based payments to employees are measured at fair value and charged to expense over the requisite service period for awards that are expected to vest. The fair value of stock options is determined using the Black-Scholes-Merton option valuation model. The fair value of RSUs and performance based RSUs is based on Stratus’ stock price on the date of grant. Stratus estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates through the final vesting date of the awards. Stratus grants awards that settle in either cash or RSUs to employees and nonemployees under a profit participation plan. As required for liability-based awards under Accounting Standards Codification 718, Stock-Based Compensation , at the date of grant, Stratus estimates the fair value of each award and adjusts the fair value in each subsequent reporting period. The awards are amortized on a straight-line basis over the estimated service period. See Note 8 for further discussion. New Accounting Standard. Following is a discussion of a new accounting standard adopted by Stratus. 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. 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. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 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 $26.0 million construction loan with Texas Capital Bank, National Association (see Note 6 for further discussion) and (2) an $8.0 million private placement. The Saint Mary, L.P. issued, in a private placement exempt from registration under federal and state securities laws, Class B limited partnership interests to a limited number of investors (the Saint Mary Class B limited partners), for $8.0 million (the Saint Mary Offering) resulting in the Saint Mary Class B limited partners owning an aggregate 49.1 percent equity interest in The Saint Mary, L.P. In accordance with the terms of the Saint Mary Offering, Circle C Land, L.P., a Texas limited partnership and a subsidiary of Stratus and the sole Class A limited partner of The Saint Mary, L.P. (Circle C) purchased Class B limited partnership interests representing a 6.1 percent equity interest in The Saint Mary, L.P. for $1.0 million. Upon completion of the Saint Mary Offering, Stratus holds, in aggregate, a 57 percent indirect equity interest in The Saint Mary, L.P. Additionally, among the participants in the Saint Mary Offering, LCHM Holdings, LLC (LCHM), a related party as a result of its greater than 5 percent beneficial ownership of Stratus’ common stock, purchased Saint Mary Class B limited partnership interests representing a 6.1 percent equity interest in The Saint Mary, L.P. for $1.0 million. In connection with the Saint Mary Offering, The Saint Mary GP, L.L.C., a Texas limited liability company (the Saint Mary General Partner) and a subsidiary of Stratus, Circle C, and the Saint Mary Class B limited partners entered into an Amended and Restated Limited Partnership Agreement (the Saint Mary Partnership Agreement) effective as of June 18, 2018. The Saint Mary Partnership Agreement includes the following key provisions: • The Saint Mary General Partner manages The Saint Mary, L.P., in exchange for an asset management fee of $210 thousand per year. • The Saint Mary General Partner earned a development management fee of $1.4 million for the overall coordination and management of the development and construction of The Saint Mary. The fee will be paid by The Saint Mary, L.P., when sufficient cash flow is generated from operations of The Saint Mary. • Circle C contributed an approximate 14.35 acre tract of land upon which The Saint Mary was constructed and $0.7 million of cash. • The partners are entitled to preferred returns, which change after certain returns are achieved as specified in the Saint Mary Partnership Agreement. 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 HEB-anchored mixed-use development project (Kingwood Place). The development plan for Kingwood Place includes a 103,000-square-foot HEB store, 49,000 square feet of retail space, 5 retail pads, and an 10-acre parcel planned for approximately 300 multi-family units. The Kingwood, L.P. issued, in a private placement exempt from registration under federal and state securities laws, Class B limited partnership interests to a limited number of investors (the Kingwood Class B limited partners), for $11.0 million (the Kingwood Offering), representing approximately 70 percent of the projected partnership equity. Among the participants in the Kingwood Offering, LCHM purchased Kingwood Class B limited partnership interests initially representing an 8.8 percent equity interest in the Kingwood, L.P. for $1.0 million. In connection with the Kingwood Offering, Stratus Northpark, L.L.C., a Texas limited liability company, a subsidiary of Stratus and the general partner of the Kingwood, L.P. (the Kingwood General Partner), Stratus Properties Operating Co., L.P., a Delaware limited partnership, also a subsidiary of Stratus (the Class A limited partner), and the Kingwood Class B limited partners entered into an Amended and Restated Limited Partnership Agreement (the Kingwood Partnership Agreement) effective as of August 3, 2018. The Kingwood Partnership Agreement includes the following key provisions: • The Kingwood General Partner manages the Kingwood, L.P., in exchange for an asset management fee of $283 thousand per year. • The Kingwood General Partner earns a development management fee equal to four percent of the construction costs for Kingwood Place for the overall coordination and management of the development and construction of Kingwood Place. • The partners are entitled to preferred returns, which change after certain returns are achieved as specified in the Kingwood Partnership Agreement. On December 6, 2018, the Kingwood, L.P., entered into a construction loan agreement with Comerica Bank, which supersedes and replaces the land acquisition loan agreement discussed above and provided for a loan totaling $32.9 million to finance nearly 70 percent of the costs associated with construction of Kingwood Place (see Note 6 for further discussion). The remaining 30 percent of the project’s cost (totaling approximately $15 million) is being funded by borrower equity, contributed by Stratus and private equity investors. On October 31, 2019, Stratus acquired a limited partner's 33.33 percent interest in Kingwood, L.P. for $5.8 million. The limited partner was not a related party. Stratus has 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): December 31, 2019 2018 Assets: Cash and cash equivalents $ 1,110 $ 1,939 Restricted cash — 2,284 Real estate under development 3,703 27,928 Land available for development 9,273 — Real estate held for investment 64,637 — Other assets 1,807 792 Total assets 80,530 32,943 Liabilities: Accounts payable and accrued liabilities 8,680 3,484 Debt 45,848 6,125 Total liabilities 54,528 9,609 Net assets $ 26,002 $ 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 the consultant's general consulting services related to the entitlement and development of properties and expense reimbursements during 2019 totaled approximately $111 thousand. In addition, during 2019, we granted an award to the consultant under our Profit Participation Incentive Plan in one development project (refer to Note 8). |
Real Estate, net
Real Estate, net | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate, net [Abstract] | |
Real Estate Disclosure [Text Block] | REAL ESTATE, NET Stratus’ consolidated balance sheets include the following net real estate assets (in thousands): December 31, 2019 2018 Real estate held for sale: Developed lots, townhomes and condominium unit $ 14,872 $ 16,396 Real estate under development: Acreage, multi-family units, commercial square footage and townhomes 95,026 136,678 Land available for development: Undeveloped acreage 45,539 24,054 Real estate held for investment: The Santal 78,436 69,675 The Saint Mary 37,443 — Lantana Place 29,297 25,648 Kingwood Place 28,366 — Jones Crossing 24,077 13,098 West Killeen Market 9,931 9,742 Barton Creek Village — 4,937 Circle C — 629 Furniture, fixtures and equipment 1,131 964 Total 208,681 124,693 Accumulated depreciation (10,864) (7,014) Total real estate held for investment, net 197,817 117,679 Total real estate, net $ 353,254 $ 294,807 Real estate held for sale. Developed lots, townhomes and a condominium unit include individual tracts of land that have been developed and permitted for residential use, developed lots with homes already built on them and a condominium unit at the W Austin Hotel & Residences. As of December 31, 2019, Stratus owned 24 developed lots, 2 completed homes and 1 condominium unit at the W Austin Hotel & Residences. Real estate under development. Acreage under development includes real estate for which infrastructure work over the entire property has been completed, is currently being completed or is able to be completed and for which necessary permits have been obtained. Real estate under development also includes commercial and residential properties under construction. Land available for development. Undeveloped acreage includes real estate that can be sold “as is” (i.e., planning, infrastructure or development work is not currently in progress on such property). Stratus’ undeveloped acreage as of December 31, 2019, included land permitted for residential and commercial development. Real estate held for investment. Following is a discussion of real estate held for investment as of December 31, 2019. The Santal multi-family project is a garden-style apartment complex consisting of 448 units. The Saint Mary is a luxury garden-style apartment complex consisting of 240 units. The Lantana Place project includes 99,379-square-foot for the first retail phase. The Kingwood Place project includes 151,855 square-feet of commercial space anchored by a HEB grocery store and 5 pad sites. The Jones Crossing project includes 154,117 square-feet for the first phase of the retail component of an HEB-anchored, mixed-use development. The West Killeen Market project includes 44,493 square-feet of commercial space and 3 pad sites adjacent to a 90,000 square-foot HEB grocery store. |
Asset Sales
Asset Sales | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset Sales | ASSET SALES Block 21 - Discontinued Operations. On December 9, 2019, Stratus announced that it had agreed to sell Block 21 to Ryman Hospitality Properties, Inc. (Ryman) for $275 million, which includes Ryman’s assumption of approximately $142 million of existing mortgage debt. The remainder of the purchase price will be paid in cash. Block 21 is Stratus’ wholly owned mixed-use real estate development and entertainment business in downtown Austin, Texas that contains the 251-room W Austin Hotel and is home to Austin City Limits Live at the Moody Theater, a 2,750-seat entertainment venue that serves as the location for the filming of Austin City Limits, the longest running music series in American television history. Block 21 also includes Class A office space, retail space and the 3TEN ACL Live entertainment venue and business. The transaction is expected to close in the second quarter of 2020, subject to the satisfaction of closing conditions including the consent of the loan servicer to the Ryman’s assumption of the existing mortgage loan, and other customary closing conditions. The Block 21 purchase agreement will terminate if all conditions to closing are not satisfied or waived by the parties. Ryman has deposited $15 million in earnest money to secure its performance under the agreements governing the sale. In accordance with accounting guidance, Stratus reported the results of operations of Block 21 and its related assets as discontinued operations in the consolidated statements of comprehensive loss because the disposal represents a strategic shift that had a major effect on operations, and presented the assets and liabilities of Block 21 as held for sale - discontinued operations in the consolidated balance sheets for all periods presented. Block 21 did not have any other comprehensive income and Stratus' consolidated statements of cash flows are reported on a combined basis without separately presenting discontinued operations. The carrying amounts of Block 21's major classes of assets and liabilities, which were classified as held for sale - discontinued operations in the consolidated balance sheets follow (in thousands): December 31, 2019 2018 Assets: Cash and cash equivalents $ 10,408 $ 11,101 Restricted cash 13,574 13,604 Real estate held for investment 131,286 135,395 Other assets 3,480 3,870 Total assets held for sale $ 158,748 $ 163,970 Liabilities: Accounts payable and accrued liabilities, including taxes $ 7,005 $ 7,749 Debt a 141,184 143,250 Other liabilities 7,036 6,982 Total liabilities held for sale $ 155,225 $ 157,981 a. In 2016, Stratus completed the refinancing of the W Austin Hotel & Residences. Goldman Sachs Mortgage Company provided a $150.0 million, ten Net income from discontinued operations in the consolidated statements of comprehensive loss consists of the following (in thousands): Years Ended December 31, 2019 2018 Revenues: a Hotel Revenue $ 35,247 $ 37,905 Entertainment Revenue 24,565 22,492 Leasing operations and other 2,363 2,214 Total revenue 62,175 62,611 Cost of Sales: Hotel 26,849 28,160 Entertainment 18,185 16,971 Leasing operations and other 1,739 1,362 Depreciation 5,415 b 5,747 Total cost of sales 52,188 52,240 General and administrative expenses 1,040 961 Operating income 8,947 9,410 Interest expense, net (8,235) (7,659) Provision for income taxes (392) (390) Net income from discontinued operations $ 320 $ 1,361 a. In accordance with accounting guidance, amounts are net of eliminations of intercompany sales totaling $1.4 million in 2019 and $1.7 million in 2018. b. In accordance with accounting guidance, depreciation is not recognized subsequent to classification as assets held for sale, which occurred in December 2019. Capital expenditures associated with discontinued operations totaled $1.3 million in 2019 and $1.2 million in 2018. Barton Creek Village. On November 14, 2019, Stratus sold Barton Creek Village for $7.7 million. Stratus used a portion of the proceeds to repay the Barton Creek Village term loan. Stratus recorded a pre-tax gain on this sale totaling $3.7 million. At December 31, 2019, $3.7 million of the proceeds from this sale were held in escrow and presented within restricted cash. These proceeds were subsequently released in early 2020. Circle C. 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 a portion of the proceeds from the sale to repay $2.5 million of its Comerica Bank credit facility borrowings and, after adjustments recorded in the second and third quarters of 2019, recorded a pre-tax gain on this sale totaling $2.0 million for the year 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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): December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Assets: Interest rate cap agreement $ 3 $ 3 $ — $ — Interest rate swap agreement — — 53 53 Liabilities: Debt 224,565 227,632 152,281 154,422 Interest rate swap agreement 114 114 — — Interest Rate Cap and Swap Agreements. On September 30, 2019, a Stratus subsidiary paid $24 thousand to enter into an interest rate cap agreement, which caps maximum LIBOR at 3.0 percent, on a total notional amount of $75.0 million (the principal amount of The Santal loan). The interest rate cap agreement provides that the Stratus subsidiary will collect the difference between 3.0 percent and the one-month London Interbank Offered Rate (LIBOR) if one-month LIBOR is greater than 3.0 percent (refer to Note 6 for further discussion of The Santal loan). The interest rate cap agreement terminates on October 5, 2021. 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 LIBOR. As of December 31, 2019, the agreement had a notional amount of $15.3 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. The interest rate cap and swap agreements do not qualify for hedge accounting so changes in the agreements' fair values are recorded in the consolidated statements of comprehensive loss. Stratus uses an interest rate pricing model that relies on market observable inputs such as LIBOR to measure the fair value of both agreements. Stratus also evaluated the counterparty credit risk associated with both agreements, which is considered a Level 3 input, but did not consider such risk to be significant. Therefore, the interest rate cap and swap agreements are classified within Level 2 of the fair value hierarchy. 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. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | DEBT Stratus’ debt follows (in thousands): December 31, 2019 2018 The Santal loan, average interest rate of 4.82% in 2019 $ 73,972 $ — Comerica Bank credit facility, average interest rate of 6.30% in 2019 and 6.02% in 2018 42,482 50,221 New Caney land loan, average interest rate of 5.21% in 2019 4,908 — Barton Creek Village term loan, average interest rate of 4.19% in 2018 — 3,284 Construction loans: Kingwood Place construction loan average interest rate of 4.66% in 2019 and 4.88% in 2018 23,991 6,125 Lantana Place construction loan, average interest rate of 5.01% in 2019 and 4.85% in 2018 23,268 18,416 The Saint Mary construction loan average interest rate of 5.11% in 2019 21,857 — Jones Crossing construction loan average interest rate of 5.45% in 2019 and 5.29% in 2018 21,354 11,784 West Killeen Market construction loan, average interest rate of 5.09% in 2019 and 4.76% in 2018 7,213 6,636 Amarra Villas credit facility, average interest rate of 5.21% in 2019 and 4.92% in 2018 5,520 3,326 The Santal Phase I construction loan, average interest rate of 4.70% in 2018 — 32,622 The Santal Phase II construction loan, average interest rate of 5.18% in 2018 — 19,867 Total debt a $ 224,565 $ 152,281 a. Includes net reductions for unamortized debt issuance costs of $2.6 million at December 31, 2019, and $1.8 million at December 31, 2018. The Santal Loan. On September 30, 2019, a Stratus subsidiary entered into a $75.0 million loan with ACRC Lender LLC (The Santal loan) to refinance the Phase I and Phase II construction loans for The Santal. The Santal loan has a three-year primary term maturing on October 5, 2022, with the possibility of two 12-month extensions, subject to satisfying specified conditions. Interest on the loan is variable at LIBOR plus 2.85 percent (or, if applicable, a replacement rate), provided that at no time shall the interest rate be less than 4.80 percent per annum. The Santal loan contains certain 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, liquid assets of at least $7.5 million, and a financial covenant to maintain a debt service coverage ratio of at least 1.05 to 1.00. Approximately $57.9 million of the proceeds were used to repay, in full, The Santal Phase I and Phase II construction loans. Remaining proceeds after paying transaction costs, were approximately $16 million, inclusive of reserves presented in restricted cash. In October 2019, Stratus used $13.0 million of the net proceeds to reduce the outstanding balance on its Comerica Bank credit facility. As a result of entering into The Santal loan, Stratus recognized a loss on early extinguishment of debt of $231 thousand for 2019. As required by The Santal loan, Stratus entered into an interest rate cap agreement (see Note 5 for further discussion). Comerica Bank credit facility. Stratus' loan agreement with Comerica Bank provides for (1) a revolving credit facility of $60.0 million, (2) a $7.5 million sublimit for letters of credit issuance and (3) a maturity date of June 29, 2020. Advances under the credit facility bear interest at the annual LIBOR plus 4.0 percent. The Comerica Bank credit facility is secured by substantially all of Stratus’ assets, except for properties that are encumbered by separate debt financing. The loan agreement contains financial covenants usual and customary for loan agreements of this nature, including a requirement that Stratus maintains a net asset value, as defined in the agreement, of $125 million and an aggregate promissory note debt-to-gross asset value of less than 50 percent. As of December 31, 2019, Stratus had $15.6 million available under its $60.0 million Comerica Bank revolving line of credit, with $1.9 million of letters of credit committed against the credit facility. New Caney loan. 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. Kingwood Place construction loan. In 2018, the Kingwood, L.P., entered into a construction loan agreement with Comerica Bank (the Kingwood Place construction loan), which superseded and replaced a land acquisition loan agreement obtained from Comerica Bank on August 6, 2018, and provides for a loan in the amount of $32.9 million to finance nearly 70 percent of the costs associated with construction of Kingwood Place. The total loan of $32.9 million includes the original commitment of $6.75 million used to purchase a 54-acre tract of land located in Kingwood, Texas, and an additional $26.1 million for the development of Kingwood Place. The remaining 30 percent of the project’s cost (totaling approximately $15 million) is being funded by borrower equity, contributed by Stratus and private equity investors. The development plan for Kingwood Place includes a 103,000-square-foot HEB store, 49,000 square feet of retail space, 5 retail pads, and an 10-acre parcel planned for approximately 300 multi-family units. The loan has a maturity date of December 6, 2022, with the possibility of two 12-month extensions if certain debt service coverage ratios are met. The loan bears interest at LIBOR plus 2.5 percent. Borrowings on the Kingwood Place construction loan are secured by the Kingwood Place project, and are guaranteed by Stratus. The loan agreement contains the same financial covenants in place on Stratus’ Comerica Bank credit facility, including a requirement that Stratus maintains a net asset value of $125 million and an aggregate promissory note debt-to-gross asset value of less than 50 percent. In January 2020, the Kingwood Place construction loan was modified to increase the loan amount by $2.5 million to a total of $35.4 million. The increase will be used to fund the construction of a retail building on an existing Kingwood Place retail pad. Lantana Place construction loan. In 2017, a Stratus subsidiary entered into a $26.3 million construction loan with Southside Bank (the Lantana Place construction loan) to finance the initial phase of Lantana Place, a 320,000-square-foot, mixed-use development project in southwest Austin, Texas. Interest is variable at one-month LIBOR plus 2.75 percent, subject to a minimum interest rate of 3.0 percent. Payments of interest only are due monthly, through November 1, 2020. The principal balance outstanding after November 1, 2020, will be payable in equal monthly installments of principal and interest based on a 30-year amortization. Outstanding amounts must be repaid in full on or before April 28, 2023, and can be prepaid without penalty. Outstanding amounts are secured by the Lantana Place project and all subsequent improvements, including all leases and rents associated with the development. The loan agreement contains affirmative and negative covenants usual and customary for loan agreements of this nature, including but not limited to, a requirement that Stratus maintains a net asset value, as defined in the agreement, of $125 million and a financial covenant to maintain a debt service coverage ratio of at least 1.35 to 1.00 beginning on December 31, 2019. Stratus will guarantee outstanding amounts under the loan until the development is able to maintain a debt service ratio of 1.50 to 1.00 for a period of six consecutive months. The Saint Mary construction loan. In 2018, Stratus entered into a $26.0 million construction loan with Texas Capital Bank (The Saint Mary construction loan) to finance the initial phase of The Saint Mary. Stratus fully guaranteed The Saint Mary construction loan. The repayment guarantee was reduced to 50 percent upon issuance of a certificate of occupancy for The Saint Mary and will be eliminated when the project debt service coverage ratio equals or exceeds 1.25 to 1.00. Interest is variable at the one-month LIBOR plus 3.0 percent. Payments of interest only will be due monthly, and outstanding principal is payable at maturity of June 19, 2021. Outstanding amounts are secured by The Saint Mary and all subsequent improvements. The loan agreement contains affirmative and negative covenants usual and customary for loan agreements of this nature. Stratus may extend the maturity of this loan for up to two additional 12-month periods if certain conditions are met, including debt service coverage ratio thresholds. Jones Crossing construction loan. In 2017, a Stratus subsidiary entered into a $36.8 million construction loan with Southside Bank (the Jones Crossing construction loan) to finance construction of Phases 1 and 2, the retail component, of Stratus’ Jones Crossing project, an HEB-anchored, mixed use development in College Station, Texas. As of December 31, 2019, $21.6 million was drawn on the Jones Crossing construction loan. Interest is variable at one-month LIBOR plus 3.75 percent, subject to a minimum interest rate of 4.0 percent. Payments of interest only are due monthly through March 1, 2021. The principal balance of the loan outstanding after March 1, 2021, will be payable in equal monthly installments of principal and interest based on a 30-year amortization. Outstanding amounts must be repaid in full on or before September 1, 2023. The loan is secured by the Jones Crossing project and all subsequent improvements, including all leases and rents associated with the development as well as related permits and other entitlements. The loan agreement contains affirmative and negative covenants usual and customary for loan agreements of this nature, including, but not limited to, a requirement that Stratus maintains a net asset value, as defined in the agreement, of $125 million and a financial covenant to maintain a debt service coverage ratio of at least 1.35 to 1.00 beginning on March 31, 2020. Outstanding amounts under the loan are guaranteed by Stratus until Phases 1 and 2 of the Jones Crossing development are completed and the development is able to maintain a debt service ratio of 1.50 to 1.00 as of the end of each fiscal quarter. West Killeen Market construction loan. In 2016, a Stratus subsidiary entered into a $9.9 million construction loan agreement with Southside Bank (the West Killeen Market loan) for the construction of the West Killeen Market project. Interest on the loan is variable at one-month LIBOR plus 2.75 percent, with a minimum interest rate of 3.0 percent. Payments of interest only are being made monthly during the initial 42 months of the 72-month term, followed by 30 months of monthly principal and interest payments based on a 30-year amortization. Borrowings on the West Killeen Market loan are secured by assets at Stratus’ West Killeen Market retail project in Killeen, Texas, and are guaranteed by Stratus until construction is completed and certain customary debt service coverage ratios are met. The loan agreement contains customary financial covenants including a requirement that Stratus maintain a minimum total stockholders’ equity balance of $110.0 million and a debt service coverage ratio of at least 1.35 to 1.00. Amarra Villas credit facility. In 2016, a Stratus subsidiary entered into the Amarra Villas credit facility to finance construction of the Amarra Villas project. 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. At December 31, 2019, Stratus had $9.3 million available under its $15.0 million Amarra Villas 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 year 2019. Principal paydowns occur as townhomes are sold, and additional amounts are borrowed as additional townhomes are constructed. Interest Payments. Interest paid on debt totaled $7.4 million in 2019 and $4.6 million in 2018. Maturities. The following table summarizes Stratus’ debt maturities based on the principal amounts outstanding as of December 31, 2019 (in thousands), excluding the debt related to Block 21 included in discontinued operations: 2020 2021 2022 2023 Total The Santal loan a $ — $ — $ 75,000 $ — $ 75,000 Comerica Bank credit facility 42,482 — — — 42,482 Amarra Villas credit facility — — 5,745 — 5,745 New Caney land loan b — 5,000 — — 5,000 Construction loans: Kingwood Place a — — 24,473 — 24,473 Lantana Place 31 368 385 22,673 23,457 The Saint Mary — 22,085 — — 22,085 Jones Crossing — 225 319 21,086 21,630 West Killeen Market 95 119 7,093 — 7,307 Total $ 42,608 $ 27,797 $ 113,015 $ 43,759 $ 227,179 a. Stratus has the option to extend the maturity date for two additional 12-month periods, subject to certain debt service coverage conditions. b. Stratus has the option to extend the maturity date for one additional 12-month period, subject to certain conditions. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Stratus’ benefit from income taxes consists of the following (in thousands): Years Ended December 31, 2019 2018 Current $ (229) $ (171) Deferred 504 866 Benefit from income taxes $ 275 $ 695 The components of deferred income taxes follow (in thousands): December 31, 2019 2018 Deferred tax assets and liabilities: Real estate, commercial leasing assets and facilities $ 9,333 $ 9,838 Employee benefit accruals 773 373 Accrued liabilities — 58 Deferred income 498 21 Charitable contribution carryforward 161 78 Other assets 3,283 800 Net operating loss credit carryforwards 1,583 1,181 Other liabilities (3,320) (515) Deferred tax assets, net $ 12,311 $ 11,834 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 realization of the deferred tax assets recorded as of December 31, 2019, is primarily dependent upon Stratus’ ability to generate future taxable income. A reconciliation of the U.S. federal statutory tax rate to Stratus’ effective income tax rate for the years ended December 31 follows (dollars in thousands): Years Ended December 31, 2019 2018 Amount Percent Amount Percent Income tax benefit computed at the federal statutory income tax rate $ 643 21 % $ 1,269 21 % Adjustments attributable to: State taxes (159) (5) (126) (2) Executive compensation limitation (111) (4) (444) (7) Other (98) (3) (4) — Benefit from income taxes $ 275 9 % $ 695 12 % Stratus paid federal income taxes and state margin taxes totaling $0.6 million in 2019 and $2.0 million in 2018. Stratus received income tax refunds of less than $0.1 million in 2019 and $0.3 million in 2018. Uncertain Tax Positions. During the two years ended December 31, 2019, Stratus recorded unrecognized tax benefits related to state margin tax filing positions and federal examinations. A summary of the changes in unrecognized tax benefits follows (in thousands): Years Ended December 31, 2019 2018 Balance at January 1 $ 314 $ 507 Additions for tax positions related to prior years 24 178 Subtractions for tax positions related to prior years (140) (371) Balance at December 31 $ 198 $ 314 As of December 31, 2019, Stratus had $0.2 million of unrecognized tax benefits that if recognized would affect its annual effective tax rate. During 2020, approximately $0.2 million of unrecognized tax benefits could be recognized as a result of the expiration of statutes of limitations and completion of federal and state examinations. Stratus records liabilities offsetting the tax provision benefits of uncertain tax positions to the extent it estimates that a tax position is more likely than not to not be sustained upon examination by the taxing authorities. Stratus has elected to classify any interest and penalties related to income taxes within income tax expense in its consolidated statements of comprehensive loss. As of December 31, 2019, less than $0.1 million of interest costs have been accrued. Stratus files both U.S. federal income tax and state margin tax returns. With limited exceptions, Stratus is no longer subject to U.S. federal income tax examinations by tax authorities for the years prior to 2015, and state margin tax examinations for the years prior to 2014. Currently, Stratus is under examination by the Internal Revenue Service for tax years 2015 to 2017. |
Equity Transactions, Stock-Base
Equity Transactions, Stock-Based Compensation and Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity Transactions, Stock-Based Compensation and Employee Benefits | EQUITY TRANSACTIONS, STOCK-BASED COMPENSATION AND EMPLOYEE BENEFITS Equity Share Purchase Program. In November 2013, Stratus’ Board approved an increase in the open market share purchase program from 0.7 million shares to 1.7 million shares of Stratus common stock. The purchases may occur over time depending on many factors, including the market price of Stratus common stock; Stratus’ operating results, cash flow and financial position; and general economic and market conditions. There were no purchases under this program during 2019 or 2018. As of December 31, 2019, 991,695 shares remained available under this program. Stratus' ability to pay dividends on its common stock and repurchase shares of its common stock is restricted by the terms of its loan agreements with Comerica Bank, which prohibit Stratus from paying any dividends or repurchasing shares in excess of $1.0 million without the bank's prior written consent. Stock-based Compensation Stock Award Plans. Stratus currently has four stock-based compensation plans, all of which have awards available for grant. In 2017, Stratus’ stockholders approved the 2017 Stock Incentive Plan, which provides for the issuance of stock-based compensation awards, including stock options and RSUs, relating to 180,000 shares of Stratus common stock. Stratus’ 2013 and 2010 Stock Incentive Plans provide for the issuance of stock-based compensation awards, including stock options and RSUs, relating to 180,000 shares and 140,000 shares, respectively, of Stratus common stock. The 2017, 2013 and 2010 plans permit awards to Stratus employees, non-employee directors and consultants. Stratus’ 1996 Stock Option plan for Non-Employee Directors provides for the issuance of stock options only to Stratus' non-employee directors. Stratus common stock issued upon option exercises or RSU vestings represents newly issued shares of common stock. Awards with respect to 154,600 shares under the 2017 Stock Incentive Plan, 12,700 shares under the 2013 Stock Incentive Plan, 4,375 shares under the 2010 Stock Incentive Plan and 2,500 shares under the 1996 Stock Option Plan for Non-Employee Directors were available for new grants as of December 31, 2019. Stock-Based Compensation Costs. Compensation costs charged against earnings for RSUs, the only awards granted over the last several years, totaled $0.4 million for 2019 and $0.8 million for 2018. Stock-based compensation costs are capitalized when appropriate. Stratus does not currently apply a forfeiture rate when estimating stock-based compensation costs for RSUs. RSUs. RSUs granted under the plans provide for the issuance of common stock to non-employee directors and certain officers of Stratus at no cost to the directors and officers. The RSUs are converted into shares of Stratus common stock ratably and generally vest in one-quarter increments over the four During 2016, Stratus’ executive officers were granted performance-based RSUs with a three A summary of outstanding unvested RSUs as of December 31, 2019, and activity during the year ended December 31, 2019, is presented below: Number of Aggregate Balance at January 1 66,750 Granted 25,400 Vested (29,450) Balance at December 31 62,700 $ 1,919 The total fair value of RSUs granted was $0.6 million for 2019 and $0.7 million for 2018. The total intrinsic value of RSUs vested was $0.6 million during 2019 and $1.1 million during 2018. As of December 31, 2019, Stratus had $1.3 million of total unrecognized compensation cost related to unvested RSUs expected to be recognized over a weighted-average period of 1.4 years. The following table includes amounts related to vesting of RSUs (in thousands, except shares of Stratus common stock tendered): Years Ended December 31, 2019 2018 Stratus shares tendered to pay the minimum required taxes a 9,517 6,682 Amounts Stratus paid for employee taxes $ 249 $ 204 a. Under terms of the related plans and agreements, upon vesting of RSUs, employees may tender shares of Stratus common stock to Stratus to pay the minimum required taxes. Employee Benefits Stratus maintains a 401(k) defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The 401(k) plan provides for an employer matching contribution equal to 100 percent of the participant’s contribution, subject to a limit of 5 percent of the participant’s annual salary. Stratus’ policy is to make an additional safe harbor contribution equal to 3 percent of each participant’s total compensation. The 401(k) plan also provides for discretionary contributions. Stratus’ contributions to the 401(k) plan totaled $0.6 million in both 2019 and 2018. Profit Participation Incentive Plan. On July 11, 2018, the Stratus Compensation Committee of the Board (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. Under the Plan, 25 percent of the profit for each approved project following a capital transaction (each as defined in the Plan) will be set aside in a pool. The Committee will allocate participation interests in each pool to certain officers, employees and consultants determined to be instrumental in the success of the project. The profit is equal to the net proceeds to Stratus from a capital transaction after Stratus has received a return of its costs and expenses, any capital contributions and a preferred return of 10 percent per year on the approved project. Provided the applicable service conditions are met, each participant is eligible to earn a bonus equal to his or her allocated participation interest in the applicable profit pool. Bonuses under the Plan are payable in cash prior to March 15th of the year following the capital transaction, unless the participant is an executive officer, in which case annual cash payouts under the Plan are limited to no more than four times the executive officer’s base salary, and any amounts due under the Plan in excess of that amount will be converted to an equivalent number of stock-settled RSUs with a one If a capital transaction has not occurred prior to the third anniversary of the date an approved project is substantially complete (a valuation event), the Committee will obtain a third-party appraisal of the approved project as of the valuation event. Based on the appraised value, the Committee will determine if any profit would have been generated after applying the hurdles described above, and if so, the amount of any bonus that would have been attributable to each participant. Any such amount will convert into an equivalent number of stock-settled RSUs that will vest in annual installments over a three On August 2, 2018, the Committee designated seven existing development projects as approved projects under the Plan, and allocated participation interests in profit pools of each approved project to certain officers, employees and consultants. During 2019, the Committee designated Magnolia Place as an approved project under the Plan. 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. Stratus estimated the profit pool of each approved project by projecting the cash flow from operations, the net sales price, the timing of a capital transaction or valuation event and Stratus' equity and preferred return including costs to complete for projects under development. The primary Level 3 fair value assumptions used at December 31, 2019, were projected cash flows, estimated capitalization rates ranging from 5.0 percent to 7.5 percent, projected service periods for each project ranging from 2.2 years to 5.8 years, and estimated transaction costs of approximately 1.5 percent to 6.8 percent. For the period August 2, 2018, to December 31, 2018, Stratus accrued $0.3 million to project development cost and $0.5 million in general and administrative expense related to the Plan. During 2019, Stratus accrued $0.7 million to project development costs and $1.0 million in general and administrative expense related to the Plan. The accrued liability for the Plan totaled $2.5 million at December 31, 2019, and $0.8 million at December 31, 2018 (included in other liabilities). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Construction Contracts. Stratus had commitments under noncancelable construction contracts totaling less than $0.1 million at December 31, 2019. Letters of Credit. As of December 31, 2019, Stratus had letters of credit committed totaling $1.9 million under its credit facility with Comerica Bank (see Note 6). Rental Income. As of December 31, 2019, Stratus’ minimum rental income, including scheduled rent increases under noncancelable long-term leases which extend through 2118, totaled $7.9 million in 2020, $8.1 million in 2021, $8.2 million in 2022, $8.0 million in 2023, $7.9 million in 2024 and $105.0 million thereafter. HEB Profit Participation. HEB has profit participation rights in the Jones Crossing, Kingwood, Lakeway and New Caney projects. HEB is entitled to 10 percent of any cash flow from operations or profit from the sale of these properties after Stratus receives a return of its equity plus a preferred return of 10 percent. Stratus may enter into similar profit participation agreements for future projects. Operating Leases. 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. Operating lease costs were $1.4 million for the year 2019. Total lease costs were $1.6 million for the year 2018. During 2019, Stratus paid $220 thousand for lease liabilities recorded in the consolidated balance sheet (included in operating cash flows in the consolidated statements of cash flows). As of December 31, 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 years. The future minimum payments for leases recorded on the consolidated balance sheet at December 31, 2019, follow (in thousands): 2020 $ 199 2021 144 2022 434 2023 497 2024 669 Thereafter 109,879 Total payments 111,822 Present value adjustment (99,186) Present value of net minimum lease payments $ 12,636 Future minimum rentals under non-cancelable lease at December 31, 2018, under the prior lease accounting standard, totaled $0.2 million in 2019, $0.2 million in 2020, $0.1 million in 2021, $0.4 million in 2022, $0.5 million in 2023 and $110.5 million thereafter. Circle C Settlement. In 2002, the city of Austin granted final approval of a development agreement (the Circle C settlement) and permanent zoning for Stratus’ real estate located within the Circle C community in southwest Austin. The Circle C settlement firmly established all essential municipal development regulations applicable to Stratus’ Circle C properties until 2032. The city of Austin also provided Stratus $15.0 million of development fee credits, which are in the form of credit bank capacity, in connection with its future development of its Circle C and other Austin-area properties for waivers of fees and reimbursement for certain infrastructure costs. In addition, Stratus can elect to sell up to $1.5 million of the incentives per year to other developers for their use in paying City fees related to their projects as long as the projects are within the desired development zone, as defined within the Circle C settlement. To the extent Stratus sells the incentives to other developers, Stratus recognizes the income from the sale when title is transferred and compensation is received. As of December 31, 2019, Stratus had permanently used $12.8 million of its City-based development fee credits, including cumulative amounts sold to third parties totaling $5.1 million. Fee credits used for the development of Stratus’ properties effectively reduce the basis of the related properties and defer recognition of any gain associated with the use of the fees until the affected properties are sold. Stratus also had $0.5 million in credit bank capacity in use as temporary fiscal deposits as of December 31, 2019. Available credit bank capacity was $2.6 million at December 31, 2019. Deferred Gain on Sale of The Oaks at Lakeway. In 2017, Stratus sold The Oaks at Lakeway to FHF I Oaks at Lakeway, LLC for $114.0 million in cash. 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, net of rent payments received, currently approximates $120 thousand per month and is expected to decline over time until leasing is complete and all leases are assigned to the purchaser. 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 that time. 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 $7.7 million is presented as a deferred gain in the consolidated balance sheets at December 31, 2019, compared with $9.3 million at December 31, 2018. The reduction in the deferred gain balance primarily reflects master lease payments. The contract liability, as reduced by future master lease payments, may be recognized as additional gain as Stratus fulfills the remaining performance obligation. Environmental Regulations. Stratus has made, and will continue to make, expenditures for protection of the environment. Increasing emphasis on environmental matters can be expected to result in additional costs, which will be charged against Stratus’ operations in future periods. Present and future environmental laws and regulations applicable to Stratus’ operations may require substantial capital expenditures that could adversely affect the development of its real estate interests or may affect its operations in other ways that cannot be accurately predicted at this time. Litigation. Stratus may from time to time be involved in various legal proceedings of a character normally incident to the ordinary course of its business. Stratus believes that potential liability from any of these pending or threatened proceedings will not have a material adverse effect on Stratus’ financial condition or results of operations. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS As a result of the pending sale of Block 21, Stratus has two operating segments: Real Estate Operations and Leasing Operations. 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; 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 (a portion of Kingwood Place and vacant pad sites) and New Caney, Texas (New Caney), located in the greater Houston area. The Leasing Operations segment is comprised of Stratus’ real estate assets, both residential and commercial, that are leased or available for lease and includes The Santal, West Killeen Market, The Saint Mary and completed portions of Lantana Place, Jones Crossing and Kingwood Place. 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): Years Ended December 31, 2019 2018 Real Estate Operations: Developed property sales $ 13,549 $ 16,509 Commissions and other 236 269 13,785 16,778 Leasing Operations: Rental revenue 16,218 8,211 16,218 8,211 Total Revenues from Contracts with Customers $ 30,003 $ 24,989 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 Eliminations and Other b Total Year Ended December 31, 2019: Revenues: Unaffiliated customers $ 13,785 $ 16,218 $ — $ 30,003 Intersegment 18 — (18) — Cost of sales, excluding depreciation 9,467 c 8,069 (1) 17,535 Depreciation 224 5,536 (169) 5,591 General and administrative expenses — — 11,344 11,344 Gain on sales of assets — (5,683) d — (5,683) Operating income (loss) $ 4,112 $ 8,296 $ (11,192) $ 1,216 Capital expenditures and purchases and development of real estate properties $ 11,277 $ 61,245 $ 1,305 $ 73,827 MUD reimbursements applied to real estate under development c 1,133 10 — 1,143 Total assets at December 31, 2019 180,099 211,922 169,347 e 561,368 Year Ended December 31, 2018: Revenues: Unaffiliated customers $ 16,778 $ 8,211 $ — $ 24,989 Intersegment 31 — (31) — Cost of sales, excluding depreciation 15,445 f 3,644 (1) 19,088 Depreciation 220 2,635 (31) 2,824 General and administrative expenses — — 10,314 10,314 Operating income (loss) $ 1,144 $ 1,932 $ (10,313) $ (7,237) Capital expenditures and purchases and development of real estate properties $ 43,660 $ 60,759 $ 1,173 $ 105,592 Total assets at December 31, 2018 164,939 161,310 170,244 e 496,493 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. Stratus received $4.8 million of proceeds related to MUD reimbursements of infrastructure costs incurred for development of Barton Creek. Of the total amount, Stratus recorded $1.1 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. d. Includes (i) the fourth-quarter 2019 sale of Barton Creek Village and (ii) the first-quarter 2019 sale of a retail pad subject to a ground lease located in the Circle C community, including adjustments recorded in the second and third quarters of 2019. e. Includes assets held for sale associated with discontinued operations, which totaled $158.7 million at December 31, 2019, and $164.0 million at December 31, 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSStratus evaluated events after December 31, 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business and Principles of Consolidation | Business and Principles of Consolidation. Stratus Properties Inc. (Stratus), a Delaware corporation, is engaged primarily in the acquisition, entitlement, development, management, operation and sale of commercial, and multi-family and single-family residential real estate properties in the Austin, Texas area, and other select markets in Texas. The real estate development and marketing operations of Stratus are conducted primarily through its wholly owned subsidiaries. Stratus consolidates its wholly owned subsidiaries, subsidiaries in which Stratus has a controlling interest and variable interest entities (VIEs) in which Stratus is deemed the primary beneficiary. All significant intercompany transactions have been eliminated in consolidation. Refer to Note 4 for a discussion of Stratus' discontinued operations. |
Concentration of Risk | Concentration of Risks. Stratus conducts its operations in the Austin, Texas area and other select markets in Texas. Consequently, any significant economic downturn in the Texas market, and the Austin market specifically, could potentially have an effect on Stratus’ business, results of operations and financial condition. |
Use of Estimates | Use of Estimates. The preparation of Stratus’ financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include the estimates of future cash flow from development and sale of real estate properties used in the assessment of impairments; profit recognition related to the sales of real estate; deferred income taxes and related valuation allowances; income taxes; allocation of certain indirect costs; profit pools under the Profit Participation Plan; and asset lives for depreciation. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and cash equivalents. All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. |
Real Estate and Leasing Assets | Real Estate. Real estate held for sale is stated at the lower of cost or fair value less costs to sell. The cost of real estate held for sale includes acquisition, development, construction and carrying costs, and other related costs incurred through the development stage. Real estate under development and land available for development are stated at cost. Real estate held for investment is stated at cost, less accumulated depreciation. Stratus capitalizes interest on funds used in developing properties from the date of initiation of development activities through the date the property is substantially complete and ready for use, sale or lease. Common costs are allocated based on the relative fair value of individual land parcels. Certain carrying costs are capitalized for properties currently under active development. Stratus capitalizes improvements that increase the value of properties and have useful lives greater than one year. Costs related to repairs and maintenance are charged to expense as incurred. Stratus performs an impairment test when events or circumstances indicate that an asset’s carrying amount may not be recoverable. Events or circumstances that Stratus considers indicators of impairment include significant decreases in market values, adverse changes in regulatory requirements (including environmental laws), significant budget overruns for properties under development, and current period or projected operating cash flow losses from properties held for investment. Impairment tests for properties held for investment and properties under development involve the use of estimated future net undiscounted cash flows expected to be generated from the operation of the property and its eventual disposition. If projected undiscounted cash flow is less than the related carrying amount, then a reduction of the carrying amount of the long-lived asset to fair value is required. Generally, Stratus determines fair value using valuation techniques such as discounted expected future cash flows. Impairment tests for properties held for sale involve management estimates of fair value based on estimated market values for similar properties in similar locations and management estimates of costs to sell. If estimated fair value less costs to sell is less than the related carrying amount, then a reduction of the carrying amount of the asset to fair value less costs to sell is required. Stratus recorded no impairment charges for the two years ended December 31, 2019. Should market conditions deteriorate in the future or other events occur that indicate the carrying amount of Stratus’ real estate assets may not be recoverable, Stratus will reevaluate the expected cash flows from each property to determine whether any impairment exists. |
Depreciation, Depletion, and Amortization | Depreciation. Real estate held for investment is depreciated on a straight-line basis over the properties' estimated lives of 30 to 40 years. Furniture, fixtures and equipment are depreciated on a straight-line basis over a 3 to 15-year period. Tenant improvements are depreciated over the related lease terms. |
Accrued Property Taxes | Accrued Property Taxes. Stratus estimates its property taxes based on prior year property tax payments and other current events that may impact the amount. Upon receipt of the property tax bill, Stratus adjusts its accrued property tax balance at year-end to the actual amount of taxes due for such year. Accrued property taxes included in accrued liabilities totaled $3.7 million at December 31, 2019, and $3.8 million at December 31, 2018 |
Revenue Recognition | Revenue Recognition. 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. Consideration is reasonably determined and deemed likely of collection when Stratus has signed sales agreements and has determined that the buyer has demonstrated a commitment to pay. |
Cost of Sales | Cost of Sales. Cost of sales includes the cost of real estate sold as well as costs directly attributable to the properties sold, properties held for sale, and land available for development, such as marketing, maintenance and property taxes. Cost of sales also includes operating costs and depreciation for properties held for investment and municipal utility district reimbursements. A summary of Stratus’ cost of sales follows (in thousands): Years Ended December 31, 2019 2018 Leasing Operations $ 8,069 $ 3,644 Depreciation 5,591 2,824 Cost of developed property sales 7,672 10,664 Project expenses and allocation of overhead costs (see below) 5,299 5,152 Municipal utility district reimbursements (see below) (3,360) — Other, net (161) (397) Cost of undeveloped property sales 16 25 Total cost of sales $ 23,126 $ 21,912 |
Allocation of Overhead Costs | Allocation of Overhead Costs. Stratus allocates a portion of its overhead costs to both capitalized real estate costs and cost of sales based on the percentage of time certain employees worked in the related areas (i.e. costs of construction and development activities are capitalized to real estate under development, and costs of project management, sales and marketing activities are charged to expense as cost of sales). Stratus capitalizes only direct and certain indirect project costs associated with the acquisition, development and construction of a real estate project. Indirect costs include allocated costs associated with certain pooled resources (such as office supplies, telephone and postage) which are used to support Stratus’ development projects, as well as general and administrative functions. Allocations of pooled resources are based only on those employees directly responsible for development (i.e., project managers and subordinates). Stratus charges to expense indirect costs that do not clearly relate to a real estate project, such as all salaries and costs related to its Chief Executive Officer and Chief Financial Officer. |
Municipal Utility District Reimbursements | Municipal Utility District Reimbursements. Stratus capitalizes infrastructure costs and receives Barton Creek municipal utility district (MUD) reimbursements for certain infrastructure costs incurred in the Barton Creek area. MUD reimbursements received for infrastructure projects are recorded as a reduction of the related asset’s carrying amount or cost of sales if the property has been sold. Stratus has long-term agreements with seven independent MUDs in Barton Creek to build the MUDs’ utility systems and to be eligible for future reimbursements for the related costs. In November 2017, the city of Magnolia and the state of Texas approved the creation of a MUD which will provide an opportunity for Stratus to recoup approximately $26 million over the life of the project for future road and utility infrastructure costs incurred in connection with its development of Magnolia Place, a mixed-use project that will be shadow-anchored by an H-E-B, L.P. (HEB) grocery store. Stratus received $4.8 million of proceeds in 2019 related to Travis County MUD reimbursements of infrastructure costs incurred for development of Barton Creek. Of the total amount, Stratus recorded $1.1 million as a reduction of real estate under development on the consolidated balance sheet, and $3.4 million as a reduction in real estate cost of sales and $0.3 million in other income, net in the consolidated statement of comprehensive loss. The amount and timing of MUD reimbursements depends upon the respective MUD having a sufficient tax base within its district to issue bonds and obtain the necessary state approval for the sale of the bonds. Because the timing of the issuance and approval of the bonds is subject to considerable uncertainty, coupled with the fact that interest rates on such bonds cannot be fixed until they are approved, the amounts associated with MUD reimbursements are not known until approximately one month before the MUD reimbursements are received. To the extent the reimbursements are less than the costs capitalized, Stratus records a loss when such determination is made. MUD reimbursements represent the actual amounts received. |
Advertising Costs | Advertising Costs. Advertising costs are expensed as incurred and are included as a component of cost of sales. Advertising costs totaled $0.6 million in 2019 and $0.2 million in 2018. |
Income Tax | Income Taxes. Stratus accounts for deferred income taxes under an asset and liability method, whereby deferred tax assets and liabilities are recognized based on the tax effects of temporary differences between the financial statements and the tax basis of assets and liabilities, as measured by currently enacted tax rates. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in income or loss in the period in which such changes are enacted. Stratus periodically evaluates the need for a valuation allowance to reduce deferred tax assets to estimated recoverable amounts. Stratus establishes a valuation allowance to reduce its deferred tax assets and records a corresponding charge to earnings if it is determined, based on available evidence at the time, that it is more likely than not that any portion of the deferred tax assets will not be realized. In evaluating the need for a valuation allowance, Stratus estimates future taxable income based on projections and ongoing tax strategies. This process involves significant management judgment about assumptions that are subject to change based on variances between projected and actual operating performance and changes in Stratus’ business environment or operating or financial plans. See Note 7 for further discussion. |
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 88 thousand shares for the year 2019 and 96 thousand shares for the year 2018 associated with restricted stock units (RSUs) and outstanding stock options that were anti-dilutive because of net losses. |
Stock-based Compensation | Stock-Based Compensation. Compensation costs for share-based payments to employees are measured at fair value and charged to expense over the requisite service period for awards that are expected to vest. The fair value of stock options is determined using the Black-Scholes-Merton option valuation model. The fair value of RSUs and performance based RSUs is based on Stratus’ stock price on the date of grant. Stratus estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates through the final vesting date of the awards. Stratus grants awards that settle in either cash or RSUs to employees and nonemployees under a profit participation plan. As required for liability-based awards under Accounting Standards Codification 718, Stock-Based Compensation |
New Accounting Standards | New Accounting Standard. Following is a discussion of a new accounting standard adopted by Stratus. 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. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Cost of Sales | A summary of Stratus’ cost of sales follows (in thousands): Years Ended December 31, 2019 2018 Leasing Operations $ 8,069 $ 3,644 Depreciation 5,591 2,824 Cost of developed property sales 7,672 10,664 Project expenses and allocation of overhead costs (see below) 5,299 5,152 Municipal utility district reimbursements (see below) (3,360) — Other, net (161) (397) Cost of undeveloped property sales 16 25 Total cost of sales $ 23,126 $ 21,912 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block] | Stratus’ consolidated balance sheets include the following combined assets and liabilities of The Saint Mary, L.P. and the Kingwood, L.P. (in thousands): December 31, 2019 2018 Assets: Cash and cash equivalents $ 1,110 $ 1,939 Restricted cash — 2,284 Real estate under development 3,703 27,928 Land available for development 9,273 — Real estate held for investment 64,637 — Other assets 1,807 792 Total assets 80,530 32,943 Liabilities: Accounts payable and accrued liabilities 8,680 3,484 Debt 45,848 6,125 Total liabilities 54,528 9,609 Net assets $ 26,002 $ 23,334 |
Real Estate, net (Tables)
Real Estate, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate, net [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | Stratus’ consolidated balance sheets include the following net real estate assets (in thousands): December 31, 2019 2018 Real estate held for sale: Developed lots, townhomes and condominium unit $ 14,872 $ 16,396 Real estate under development: Acreage, multi-family units, commercial square footage and townhomes 95,026 136,678 Land available for development: Undeveloped acreage 45,539 24,054 Real estate held for investment: The Santal 78,436 69,675 The Saint Mary 37,443 — Lantana Place 29,297 25,648 Kingwood Place 28,366 — Jones Crossing 24,077 13,098 West Killeen Market 9,931 9,742 Barton Creek Village — 4,937 Circle C — 629 Furniture, fixtures and equipment 1,131 964 Total 208,681 124,693 Accumulated depreciation (10,864) (7,014) Total real estate held for investment, net 197,817 117,679 Total real estate, net $ 353,254 $ 294,807 |
Asset Sales (Tables)
Asset Sales (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying amounts of Block 21's major classes of assets and liabilities, which were classified as held for sale - discontinued operations in the consolidated balance sheets follow (in thousands): December 31, 2019 2018 Assets: Cash and cash equivalents $ 10,408 $ 11,101 Restricted cash 13,574 13,604 Real estate held for investment 131,286 135,395 Other assets 3,480 3,870 Total assets held for sale $ 158,748 $ 163,970 Liabilities: Accounts payable and accrued liabilities, including taxes $ 7,005 $ 7,749 Debt a 141,184 143,250 Other liabilities 7,036 6,982 Total liabilities held for sale $ 155,225 $ 157,981 a. In 2016, Stratus completed the refinancing of the W Austin Hotel & Residences. Goldman Sachs Mortgage Company provided a $150.0 million, ten Net income from discontinued operations in the consolidated statements of comprehensive loss consists of the following (in thousands): Years Ended December 31, 2019 2018 Revenues: a Hotel Revenue $ 35,247 $ 37,905 Entertainment Revenue 24,565 22,492 Leasing operations and other 2,363 2,214 Total revenue 62,175 62,611 Cost of Sales: Hotel 26,849 28,160 Entertainment 18,185 16,971 Leasing operations and other 1,739 1,362 Depreciation 5,415 b 5,747 Total cost of sales 52,188 52,240 General and administrative expenses 1,040 961 Operating income 8,947 9,410 Interest expense, net (8,235) (7,659) Provision for income taxes (392) (390) Net income from discontinued operations $ 320 $ 1,361 a. In accordance with accounting guidance, amounts are net of eliminations of intercompany sales totaling $1.4 million in 2019 and $1.7 million in 2018. b. In accordance with accounting guidance, depreciation is not recognized subsequent to classification as assets held for sale, which occurred in December 2019. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | A summary of the carrying amount and fair value of Stratus’ other financial instruments follows (in thousands): December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Assets: Interest rate cap agreement $ 3 $ 3 $ — $ — Interest rate swap agreement — — 53 53 Liabilities: Debt 224,565 227,632 152,281 154,422 Interest rate swap agreement 114 114 — — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Stratus’ debt follows (in thousands): December 31, 2019 2018 The Santal loan, average interest rate of 4.82% in 2019 $ 73,972 $ — Comerica Bank credit facility, average interest rate of 6.30% in 2019 and 6.02% in 2018 42,482 50,221 New Caney land loan, average interest rate of 5.21% in 2019 4,908 — Barton Creek Village term loan, average interest rate of 4.19% in 2018 — 3,284 Construction loans: Kingwood Place construction loan average interest rate of 4.66% in 2019 and 4.88% in 2018 23,991 6,125 Lantana Place construction loan, average interest rate of 5.01% in 2019 and 4.85% in 2018 23,268 18,416 The Saint Mary construction loan average interest rate of 5.11% in 2019 21,857 — Jones Crossing construction loan average interest rate of 5.45% in 2019 and 5.29% in 2018 21,354 11,784 West Killeen Market construction loan, average interest rate of 5.09% in 2019 and 4.76% in 2018 7,213 6,636 Amarra Villas credit facility, average interest rate of 5.21% in 2019 and 4.92% in 2018 5,520 3,326 The Santal Phase I construction loan, average interest rate of 4.70% in 2018 — 32,622 The Santal Phase II construction loan, average interest rate of 5.18% in 2018 — 19,867 Total debt a $ 224,565 $ 152,281 a. Includes net reductions for unamortized debt issuance costs of $2.6 million at December 31, 2019, and $1.8 million at December 31, 2018. |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes Stratus’ debt maturities based on the principal amounts outstanding as of December 31, 2019 (in thousands), excluding the debt related to Block 21 included in discontinued operations: 2020 2021 2022 2023 Total The Santal loan a $ — $ — $ 75,000 $ — $ 75,000 Comerica Bank credit facility 42,482 — — — 42,482 Amarra Villas credit facility — — 5,745 — 5,745 New Caney land loan b — 5,000 — — 5,000 Construction loans: Kingwood Place a — — 24,473 — 24,473 Lantana Place 31 368 385 22,673 23,457 The Saint Mary — 22,085 — — 22,085 Jones Crossing — 225 319 21,086 21,630 West Killeen Market 95 119 7,093 — 7,307 Total $ 42,608 $ 27,797 $ 113,015 $ 43,759 $ 227,179 a. Stratus has the option to extend the maturity date for two additional 12-month periods, subject to certain debt service coverage conditions. b. Stratus has the option to extend the maturity date for one additional 12-month period, subject to certain conditions. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of benefit from (provision for) income taxes | Stratus’ benefit from income taxes consists of the following (in thousands): Years Ended December 31, 2019 2018 Current $ (229) $ (171) Deferred 504 866 Benefit from income taxes $ 275 $ 695 |
Schedule of components of deferred income taxes | The components of deferred income taxes follow (in thousands): December 31, 2019 2018 Deferred tax assets and liabilities: Real estate, commercial leasing assets and facilities $ 9,333 $ 9,838 Employee benefit accruals 773 373 Accrued liabilities — 58 Deferred income 498 21 Charitable contribution carryforward 161 78 Other assets 3,283 800 Net operating loss credit carryforwards 1,583 1,181 Other liabilities (3,320) (515) Deferred tax assets, net $ 12,311 $ 11,834 |
Schedule of reconciliation of U.S. federal statutory tax rate | A reconciliation of the U.S. federal statutory tax rate to Stratus’ effective income tax rate for the years ended December 31 follows (dollars in thousands): Years Ended December 31, 2019 2018 Amount Percent Amount Percent Income tax benefit computed at the federal statutory income tax rate $ 643 21 % $ 1,269 21 % Adjustments attributable to: State taxes (159) (5) (126) (2) Executive compensation limitation (111) (4) (444) (7) Other (98) (3) (4) — Benefit from income taxes $ 275 9 % $ 695 12 % |
Summary of changes in unrecognized tax benefits | A summary of the changes in unrecognized tax benefits follows (in thousands): Years Ended December 31, 2019 2018 Balance at January 1 $ 314 $ 507 Additions for tax positions related to prior years 24 178 Subtractions for tax positions related to prior years (140) (371) Balance at December 31 $ 198 $ 314 |
Equity Transactions, Stock-Ba_2
Equity Transactions, Stock-Based Compensation and Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of outstanding unvested RSUs | A summary of outstanding unvested RSUs as of December 31, 2019, and activity during the year ended December 31, 2019, is presented below: Number of Aggregate Balance at January 1 66,750 Granted 25,400 Vested (29,450) Balance at December 31 62,700 $ 1,919 |
Schedule of vesting of RSUs and exercises of stock options | The following table includes amounts related to vesting of RSUs (in thousands, except shares of Stratus common stock tendered): Years Ended December 31, 2019 2018 Stratus shares tendered to pay the minimum required taxes a 9,517 6,682 Amounts Stratus paid for employee taxes $ 249 $ 204 a. Under terms of the related plans and agreements, upon vesting of RSUs, employees may tender shares of Stratus common stock to Stratus to pay the minimum required taxes. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The future minimum payments for leases recorded on the consolidated balance sheet at December 31, 2019, follow (in thousands): 2020 $ 199 2021 144 2022 434 2023 497 2024 669 Thereafter 109,879 Total payments 111,822 Present value adjustment (99,186) Present value of net minimum lease payments $ 12,636 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services | Stratus’ revenues from contracts with customers follow (in thousands): Years Ended December 31, 2019 2018 Real Estate Operations: Developed property sales $ 13,549 $ 16,509 Commissions and other 236 269 13,785 16,778 Leasing Operations: Rental revenue 16,218 8,211 16,218 8,211 Total Revenues from Contracts with Customers $ 30,003 $ 24,989 |
Schedule of financial information by business segment | 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 Eliminations and Other b Total Year Ended December 31, 2019: Revenues: Unaffiliated customers $ 13,785 $ 16,218 $ — $ 30,003 Intersegment 18 — (18) — Cost of sales, excluding depreciation 9,467 c 8,069 (1) 17,535 Depreciation 224 5,536 (169) 5,591 General and administrative expenses — — 11,344 11,344 Gain on sales of assets — (5,683) d — (5,683) Operating income (loss) $ 4,112 $ 8,296 $ (11,192) $ 1,216 Capital expenditures and purchases and development of real estate properties $ 11,277 $ 61,245 $ 1,305 $ 73,827 MUD reimbursements applied to real estate under development c 1,133 10 — 1,143 Total assets at December 31, 2019 180,099 211,922 169,347 e 561,368 Year Ended December 31, 2018: Revenues: Unaffiliated customers $ 16,778 $ 8,211 $ — $ 24,989 Intersegment 31 — (31) — Cost of sales, excluding depreciation 15,445 f 3,644 (1) 19,088 Depreciation 220 2,635 (31) 2,824 General and administrative expenses — — 10,314 10,314 Operating income (loss) $ 1,144 $ 1,932 $ (10,313) $ (7,237) Capital expenditures and purchases and development of real estate properties $ 43,660 $ 60,759 $ 1,173 $ 105,592 Total assets at December 31, 2018 164,939 161,310 170,244 e 496,493 a. Includes sales commissions and other revenues together with related expenses. b. Includes consolidated general and administrative expenses and eliminations of intersegment amounts. c. Stratus received $4.8 million of proceeds related to MUD reimbursements of infrastructure costs incurred for development of Barton Creek. Of the total amount, Stratus recorded $1.1 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. d. Includes (i) the fourth-quarter 2019 sale of Barton Creek Village and (ii) the first-quarter 2019 sale of a retail pad subject to a ground lease located in the Circle C community, including adjustments recorded in the second and third quarters of 2019. e. Includes assets held for sale associated with discontinued operations, which totaled $158.7 million at December 31, 2019, and $164.0 million at December 31, 2018. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Schedule of Significant Accounting Policies [Line Items] | ||||
Lease right-of-use assets | $ 11,378,000 | |||
Present value of net minimum lease payments | 12,636,000 | |||
Impairment of Real Estate | 0 | |||
Advertising Expense | 600,000 | $ 200,000 | ||
Accrued Property Taxes | $ 3,700,000 | $ 3,800,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 88 | 96 | ||
Real Estate Reimbursements, MUD | $ 3,360,000 | $ 0 | ||
Real Estate For Development, Reimbursement MUD | 1,100,000 | |||
Proceeds From Bonds, MUD Reimbursements | $ 4,800,000 | |||
Municipal Utility District Reimbursements | Municipal Utility District Reimbursements. Stratus capitalizes infrastructure costs and receives Barton Creek municipal utility district (MUD) reimbursements for certain infrastructure costs incurred in the Barton Creek area. MUD reimbursements received for infrastructure projects are recorded as a reduction of the related asset’s carrying amount or cost of sales if the property has been sold. Stratus has long-term agreements with seven independent MUDs in Barton Creek to build the MUDs’ utility systems and to be eligible for future reimbursements for the related costs. In November 2017, the city of Magnolia and the state of Texas approved the creation of a MUD which will provide an opportunity for Stratus to recoup approximately $26 million over the life of the project for future road and utility infrastructure costs incurred in connection with its development of Magnolia Place, a mixed-use project that will be shadow-anchored by an H-E-B, L.P. (HEB) grocery store. Stratus received $4.8 million of proceeds in 2019 related to Travis County MUD reimbursements of infrastructure costs incurred for development of Barton Creek. Of the total amount, Stratus recorded $1.1 million as a reduction of real estate under development on the consolidated balance sheet, and $3.4 million as a reduction in real estate cost of sales and $0.3 million in other income, net in the consolidated statement of comprehensive loss. The amount and timing of MUD reimbursements depends upon the respective MUD having a sufficient tax base within its district to issue bonds and obtain the necessary state approval for the sale of the bonds. Because the timing of the issuance and approval of the bonds is subject to considerable uncertainty, coupled with the fact that interest rates on such bonds cannot be fixed until they are approved, the amounts associated with MUD reimbursements are not known until approximately one month before the MUD reimbursements are received. To the extent the reimbursements are less than the costs capitalized, Stratus records a loss when such determination is made. MUD reimbursements represent the actual amounts received. | |||
Cost of Sales [Member] | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Real Estate Reimbursements, MUD | $ 3,400,000 | |||
Other Income [Member] | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Real Estate Reimbursements, MUD | $ 300,000 | |||
Minimum [Member] | Leasing Operations | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Life Used for Depreciation | 30 years | |||
Minimum [Member] | Furniture, fixtures and equipment | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Life Used for Depreciation | 3 years | |||
Maximum [Member] | Leasing Operations | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Life Used for Depreciation | 40 years | |||
Maximum [Member] | Furniture, fixtures and equipment | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Life Used for Depreciation | 15 years | |||
Accounting Standards Update 2016-02 [Member] | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Lease right-of-use assets | $ 11,900,000 | |||
Present value of net minimum lease payments | $ 12,000,000 | |||
MUD bond [Member] | ||||
Schedule of Significant Accounting Policies [Line Items] | ||||
Proceeds from MUD reimbursement | $ 26,000,000 | $ 4,800,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Cost of Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Leasing operations | $ 8,069 | $ 3,644 |
Depreciation | 5,591 | 2,824 |
Cost of Developed Property Sales | 7,672 | 10,664 |
Cost of Sales, Project Expenses and Allocation of Overhead Costs | 5,299 | 5,152 |
Real Estate Reimbursements, MUD | (3,360) | 0 |
Other Cost and Expense, Operating | (161) | (397) |
Cost of Undeveloped Property Sales | 16 | 25 |
Total cost of sales | $ 23,126 | $ 21,912 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Potential anti-dilutive securities | 88 | 96 |
Related Party Transactions The
Related Party Transactions The Saint Mary, L.P. (Details) $ in Thousands | Oct. 31, 2019 | Aug. 03, 2018USD ($) | Jun. 19, 2018USD ($)aunit | Dec. 31, 2019USD ($)unit | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | |||||
Cash and cash equivalents | $ 8,765 | $ 7,902 | |||
Restricted cash | 5,844 | 6,311 | |||
Real estate under development | 95,026 | 136,678 | |||
Other assets | 11,068 | 11,669 | |||
Assets | 561,368 | 496,493 | |||
Accrued liabilities, including taxes | 6,169 | 6,346 | |||
Liabilities | 427,286 | $ 349,842 | |||
Circle C Land, L.P [Member] | The Saint Mary [Member] | Assets Contribution [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of Real Estate Property | a | 14.35 | ||||
Contributions in Aid of Construction | $ 700 | ||||
The Saint Mary, L.P. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from Issuance of Private Placement | 8,000 | ||||
Assets | $ 64,637 | ||||
Apartment Building [Member] | The Saint Mary [Member] | Asset Management Fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | 210 | ||||
Apartment Building [Member] | The Saint Mary [Member] | Development And Construction Management Fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | $ 1,400 | ||||
Apartment Building [Member] | The Saint Mary, L.P. [Member] | The Saint Mary [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of Lots/Units in Real Estate Property | unit | 240 | 240 | |||
Construction Loan Payable [Member] | The Saint Mary Construction Loan [Member] | The Saint Mary, L.P. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Long-term Debt, Gross | $ 26,000 | ||||
Stratus Properties Inc [Member] | LCHM Holdings, L.L.C. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||
The Saint Mary, L.P. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 57.00% | ||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 49.10% | ||||
The Saint Mary, L.P. [Member] | Circle C Land, L.P [Member] | |||||
Related Party Transaction [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.10% | ||||
Noncontrolling Interest in Limited Partnerships | $ 1,000 | ||||
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% | ||||
Noncontrolling Interest in Limited Partnerships | $ 1,000 | ||||
Stratus Kingwood, L.P. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 33.33% | 70.00% | |||
Stratus Kingwood, L.P. [Member] | LCHM Holdings, L.L.C. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 8.80% | ||||
Noncontrolling Interest in Limited Partnerships | $ 1,000 |
Related Party Transactions King
Related Party Transactions Kingwood Place, L.P. (Details) $ in Thousands | Oct. 31, 2019USD ($) | Dec. 06, 2018USD ($) | Aug. 03, 2018USD ($)a | Jun. 19, 2018USD ($) | Dec. 31, 2019USD ($)ft²aunit | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | ||||||
Cash and cash equivalents | $ 8,765 | $ 7,902 | ||||
Real estate under development | 95,026 | 136,678 | ||||
Other assets | 11,068 | 11,669 | ||||
Assets | 561,368 | 496,493 | ||||
Accrued liabilities, including taxes | 6,169 | 6,346 | ||||
Debt | 224,565 | 152,281 | ||||
Liabilities | 427,286 | 349,842 | ||||
Restricted cash | 5,844 | 6,311 | ||||
Land available for development | $ 45,539 | 24,054 | ||||
Kingwood Place [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to Acquire Land | $ 13,500 | |||||
Net Rentable Area | ft² | 151,855 | |||||
Planned Number of Retail Pads | unit | 5 | |||||
Stratus Kingwood, L.P. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 33.33% | 70.00% | ||||
Payments to Acquire Limited Partnership Interests | $ 5,800 | |||||
LCHM Holdings, L.L.C. [Member] | Stratus Kingwood, L.P. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 8.80% | |||||
Noncontrolling Interest in Limited Partnerships | $ 1,000 | |||||
Stratus Kingwood, L.P. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from Issuance of Private Placement | $ 15,000 | $ 10,700 | $ 11,000 | |||
Area of Land | a | 54 | |||||
Liabilities | $ 54,528 | 9,609 | ||||
Stratus Kingwood, L.P. [Member] | Land Available for Development [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to Acquire Land | $ 7,000 | |||||
Stratus Kingwood, L.P. [Member] | Kingwood Place Loan [Member] | Notes Payable to Banks [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | 6,750 | |||||
Stratus Kingwood, L.P. [Member] | Kingwood Place Construction Loan [Member] | Notes Payable to Banks [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | $ 32,900 | |||||
Stratus Kingwood, L.P. [Member] | Kingwood Place [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Net Rentable Area | ft² | 49,000 | |||||
Planned Number of Retail Pads | 5 | |||||
Area of Land | a | 10 | |||||
Number of Lots/Units in Real Estate Property | 300 | |||||
Stratus Kingwood, L.P. [Member] | Kingwood Place [Member] | Asset Management Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Amounts of Transaction | $ 283 | |||||
Stratus Kingwood, L.P. [Member] | Kingwood Place [Member] | Development And Construction Management Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Property Management Fee, Percent Fee | 4.00% | |||||
Stratus Kingwood, L.P. [Member] | HEB Store [Member] | Kingwood Place [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Net Rentable Area | ft² | 103,000 | |||||
Stratus Kingwood, L.P. [Member] | Retail Site [Member] | Kingwood Place [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Planned Number of Retail Pads | 5 | |||||
The Saint Mary, L.P. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from Issuance of Private Placement | $ 8,000 | |||||
Assets | $ 64,637 | |||||
The Saint Mary, L.P. and Stratus Kingwood, L.P. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Cash and cash equivalents | 1,110 | 1,939 | ||||
Real estate under development | 3,703 | 27,928 | ||||
Other assets | 1,807 | 792 | ||||
Assets | 80,530 | 32,943 | ||||
Debt | 45,848 | 6,125 | ||||
Net Assets | 26,002 | 23,334 | ||||
Restricted cash | 0 | 2,284 | ||||
Land available for development | 9,273 | 0 | ||||
Real estate held for investment, net | 0 | |||||
Accounts Payable and Accrued Liabilities | $ 8,680 | $ 3,484 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Austin Retail Partners [Member] | Immediate family member [Member] | |
Related Party Transaction [Line Items] | |
Related party expense reimbursements | $ 111 |
Real Estate, net Summary of Rea
Real Estate, net Summary of Real Estate Holdings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)ft²unit | Dec. 31, 2018USD ($) | Jun. 19, 2018unit | |
Real Estate Properties [Line Items] | |||
Real estate held for sale | $ 14,872 | $ 16,396 | |
Development in Process | 95,026 | 136,678 | |
Land Available for Development | 45,539 | 24,054 | |
Real Estate Held for Investment, Gross | 208,681 | 124,693 | |
Real estate held for investment, Depreciation | 10,864 | 7,014 | |
Real Estate Investment Property, Net | 353,254 | 294,807 | |
Interest Costs Capitalized | 7,700 | 8,200 | |
Barton Creek Village [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | 0 | 4,937 | |
West Killeen Market [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 9,931 | 9,742 | |
Planned Number of Retail Pads | unit | 3 | ||
Lantana Place [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 29,297 | 25,648 | |
Net Rentable Area | ft² | 320,000 | ||
Jones Crossing [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 24,077 | 13,098 | |
Net Rentable Area | ft² | 154,117 | ||
Circle C [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 0 | 629 | |
Kingwood Place [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 28,366 | 0 | |
Net Rentable Area | ft² | 151,855 | ||
Planned Number of Retail Pads | unit | 5 | ||
The Saint Mary [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 37,443 | 0 | |
The Santal | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 78,436 | 69,675 | |
Lantana Place, First Phase [Member] | |||
Real Estate Properties [Line Items] | |||
Net Rentable Area | ft² | 99,379 | ||
Real Estate Held for Sale [Member] | |||
Real Estate Properties [Line Items] | |||
Number of Lots/Units in Real Estate Property | unit | 24 | ||
Real Estate Held for Sale [Member] | W Austin Hotel & Residences [Member] | |||
Real Estate Properties [Line Items] | |||
Number of Lots/Units in Real Estate Property | unit | 1 | ||
Real Estate Held for Sale [Member] | Barton Creek [Member] | |||
Real Estate Properties [Line Items] | |||
Number of Lots/Units in Real Estate Property | unit | 2 | ||
Retail Site [Member] | Barton Creek Village [Member] | |||
Real Estate Properties [Line Items] | |||
Net Rentable Area | ft² | 0 | ||
Retail Site [Member] | West Killeen Market [Member] | |||
Real Estate Properties [Line Items] | |||
Net Rentable Area | ft² | 44,493 | ||
Apartment Building [Member] | The Saint Mary [Member] | The Saint Mary, L.P. [Member] | |||
Real Estate Properties [Line Items] | |||
Number of Lots/Units in Real Estate Property | unit | 240 | 240 | |
Apartment Building [Member] | The Santal | The Santal | |||
Real Estate Properties [Line Items] | |||
Number of Lots/Units in Real Estate Property | unit | 448 | ||
Furniture and Fixtures [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate Held for Investment, Gross | $ 1,131 | $ 964 |
Asset Sales - Discontinued Oper
Asset Sales - Discontinued Operations (Details) - Block 21 [Member] - Discontinued Operations, Held-for-sale [Member] $ in Thousands | Dec. 09, 2019USD ($)theater_seathotel_room | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale, consideration | $ 275,000 | ||
Debt | $ 142,000 | $ 141,184 | $ 143,250 |
Number of Hotel Rooms | hotel_room | 251 | ||
Number Of Theater Seats | theater_seat | 2,750 | ||
Escrow Deposits Related to Property Sales | $ 15,000 | ||
Capital Expenditure, Discontinued Operations | $ 1,300 | $ 1,200 |
Asset Sales - Balance Sheet (De
Asset Sales - Balance Sheet (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2019 | Dec. 09, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total assets held for sale | $ 158,748,000 | $ 163,970,000 | ||
Total liabilities held for sale | 155,225,000 | 157,981,000 | ||
Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total assets held for sale | 158,700,000 | 164,000,000 | ||
Block 21 [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | 10,408,000 | 11,101,000 | ||
Restricted cash | 13,574,000 | 13,604,000 | ||
Real estate held for investment | 131,286,000 | 135,395,000 | ||
Other assets | 3,480,000 | 3,870,000 | ||
Total assets held for sale | 158,748,000 | 163,970,000 | ||
Accounts payable and accrued liabilities, including taxes | 7,005,000 | 7,749,000 | ||
Debt | 141,184,000 | $ 142,000,000 | 143,250,000 | |
Other liabilities | 7,036,000 | 6,982,000 | ||
Total liabilities held for sale | $ 155,225,000 | $ 157,981,000 | ||
Goldman Sachs Loan [Member] | Notes Payable to Banks [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Debt Instrument, Face Amount | $ 150,000,000 | |||
Debt Instrument, Term | 10 years | |||
Interest Rate, Stated Percentage | 5.58% | |||
Debt Instrument, Amortization Term | 30 years |
Asset Sales - Income Statement
Asset Sales - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income from discontinued operations | $ 320 | $ 1,361 |
Block 21 [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Leasing operations and other | 2,363 | 2,214 |
Revenue | 62,175 | 62,611 |
Costs of sales | 52,188 | 52,240 |
Depreciation | 5,415 | 5,747 |
General and administrative expenses | 1,040 | 961 |
Operating income | 8,947 | 9,410 |
Interest expense, net | (8,235) | (7,659) |
Provision for income taxes | (392) | (390) |
Net income from discontinued operations | 320 | 1,361 |
Intersegment Eliminations [Member] | Block 21 [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 1,400 | 1,700 |
Hotel Operations | Block 21 [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue from contract with customer | 35,247 | 37,905 |
Costs of sales | 26,849 | 28,160 |
Entertainment | Block 21 [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue from contract with customer | 24,565 | 22,492 |
Costs of sales | 18,185 | 16,971 |
Leasing Operations | Block 21 [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Costs of sales | $ 1,739 | $ 1,362 |
Asset Sales Asset Sales - Barto
Asset Sales Asset Sales - Barton Creek Village and Circle C (Details) - USD ($) $ in Thousands | Nov. 14, 2019 | Jan. 17, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sales of assets | $ 5,683 | $ 0 | |||
Repayments of Lines of Credit | 34,925 | $ 9,981 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Barton Creek Village [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 | $ 7,700 | ||||
Gain (loss) on sales of assets | $ 3,700 | ||||
Restricted Cash | 3,700 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Circle C Ground Lease [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 | $ 3,200 | ||||
Gain (loss) on sales of assets | $ 2,000 | ||||
Revolving Line of Credit Tranche [Member] | Comerica credit facility [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Repayments of Lines of Credit | $ 2,500 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivative assets, at fair value | $ 0 | $ 53 |
Debt | 224,565 | 152,281 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivative assets, at fair value | 0 | 53 |
Debt | 227,632 | 154,422 |
Interest Rate Cap [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivative assets, at fair value | 3 | 0 |
Interest Rate Cap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivative assets, at fair value | 3 | 0 |
Interest Rate Swap [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap agreement | 114 | 0 |
Interest Rate Swap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap agreement | $ 114 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Interest Rate Cap [Member] | ||||
Derivative [Line Items] | ||||
Payments for Derivative Instrument, Financing Activities | $ 24 | |||
Derivative, Notional Amount | $ 75,000 | |||
Interest Rate Cap [Member] | LIBOR Maximum [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Basis Spread on Variable Rate | 3.00% | |||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 15,300 | $ 15,800 | ||
Derivative, Fixed Interest Rate | 2.30% | |||
Interest Rate Swap [Member] | Scenario, Forecast [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 14,800 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt | $ 224,565 | $ 152,281 |
Unamortized Debt Issuance Expense | 2,600 | 1,800 |
The Santal Loan [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 73,972 | 0 |
Interest Rate, Stated Percentage | 4.82% | |
Comerica credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 42,482 | $ 50,221 |
Comerica credit facility [Member] | Credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate, Stated Percentage | 6.30% | 6.02% |
New Caney Land Loan [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 4,908 | $ 0 |
Interest Rate, Stated Percentage | 5.21% | |
Barton Creek Village Term Loan [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 0 | 3,284 |
Interest Rate, Stated Percentage | 4.19% | |
Kingwood Place Construction Loan [Member] | Construction Loan Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 23,991 | $ 6,125 |
Interest Rate, Stated Percentage | 4.66% | 4.88% |
Lantana Place Construction Loan [Member] | Construction Loan Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 23,268 | $ 18,416 |
Interest Rate, Stated Percentage | 5.01% | 4.85% |
The Saint Mary Construction Loan [Member] | Construction Loan Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 21,857 | $ 0 |
Interest Rate, Stated Percentage | 5.11% | |
Jones Crossing Construction Loan [Member] | Construction Loan Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 21,354 | $ 11,784 |
Interest Rate, Stated Percentage | 5.45% | 5.29% |
West Killeen Market construction loan [Member] | Construction Loan Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 7,213 | $ 6,636 |
Interest Rate, Stated Percentage | 5.09% | 4.76% |
Amarra Villas Credit Facility [Domain] | ||
Debt Instrument [Line Items] | ||
Debt | $ 5,520 | $ 3,326 |
Interest Rate, Stated Percentage | 5.21% | 4.92% |
Santal Phase I Construction Loan [Member] | Construction Loan Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 0 | $ 32,622 |
Interest Rate, Stated Percentage | 4.70% | |
Santal Phase II Construction Loan [Member] | Construction Loan Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 0 | $ 19,867 |
Interest Rate, Stated Percentage | 5.18% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Mar. 31, 2020 | Dec. 31, 2019USD ($)ft²aunit | Sep. 30, 2019USD ($) | Dec. 06, 2018USD ($) | Aug. 03, 2018USD ($)a | Jun. 19, 2018USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Dec. 31, 2019USD ($)ft²aunit | Jun. 30, 2019 | Dec. 31, 2019USD ($)ft²aunit | Dec. 31, 2018USD ($) | Mar. 19, 2019USD ($) | Mar. 08, 2019USD ($) | Sep. 01, 2017USD ($) | Apr. 28, 2017USD ($) | Aug. 05, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Loss on early extinguishment of debt | $ (247,000) | $ 0 | |||||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 227,179,000 | $ 227,179,000 | 227,179,000 | ||||||||||||||
Interest Expense, Debt | 7,400,000 | $ 4,600,000 | |||||||||||||||
Stratus Kingwood, L.P. [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Area of Land | a | 54 | ||||||||||||||||
Proceeds from Issuance of Private Placement | $ 15,000,000 | $ 10,700,000 | $ 11,000,000 | ||||||||||||||
The Saint Mary, L.P. [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from Issuance of Private Placement | $ 8,000,000 | ||||||||||||||||
Lantana Place [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Net Rentable Area | ft² | 320,000 | 320,000 | 320,000 | ||||||||||||||
Kingwood Place [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Net Rentable Area | ft² | 151,855 | 151,855 | 151,855 | ||||||||||||||
Planned Number of Retail Pads | unit | 5 | 5 | 5 | ||||||||||||||
Kingwood Place [Member] | Stratus Kingwood, L.P. [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Area of Land | a | 10 | 10 | 10 | ||||||||||||||
Net Rentable Area | ft² | 49,000 | 49,000 | 49,000 | ||||||||||||||
Planned Number of Retail Pads | 5 | 5 | 5 | ||||||||||||||
Number of Lots/Units in Real Estate Property | 300 | 300 | 300 | ||||||||||||||
Kingwood Place [Member] | Stratus Kingwood, L.P. [Member] | HEB Store [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Net Rentable Area | ft² | 103,000 | 103,000 | 103,000 | ||||||||||||||
The Santal Loan [Member] | ACRC Lender LLC [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Liquid Assets | $ 7,500,000 | ||||||||||||||||
Proceeds from Issuance of Debt, Net Of Repayments | 16,000,000 | ||||||||||||||||
Loss on early extinguishment of debt | $ (231,000) | ||||||||||||||||
The Santal Loan [Member] | ACRC Lender LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | 75,000,000 | ||||||||||||||||
Basis Spread on Variable Rate | 2.85% | ||||||||||||||||
Debt Instrument, Covenant, Net Asset Value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
The Santal Loan [Member] | ACRC Lender LLC [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Debt Service Coverage Ratio | 105.00% | ||||||||||||||||
The Santal Loan [Member] | ACRC Lender LLC [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Interest Rate | 4.80% | ||||||||||||||||
The Santal Loan [Member] | Notes Payable to Banks [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate, Stated Percentage | 4.82% | 4.82% | 4.82% | ||||||||||||||
The Santal Loan [Member] | Credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | ||||||||||||||
Comerica credit facility [Member] | Revolving Line of Credit Tranche [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 60,000,000 | 60,000,000 | 60,000,000 | ||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 15,600,000 | 15,600,000 | 15,600,000 | ||||||||||||||
Comerica credit facility [Member] | Revolving Line of Credit Tranche [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Net Asset Value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
Debt Instrument, Covenant, Debt-To-Gross Asset Value, Percent | 50.00% | 50.00% | 50.00% | ||||||||||||||
Comerica credit facility [Member] | Revolving Line of Credit Tranche [Member] | Credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | $ 13,000,000 | ||||||||||||||||
Comerica credit facility [Member] | Letter of Credit [Member] | Letter of Credit [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,500,000 | $ 7,500,000 | $ 7,500,000 | ||||||||||||||
Letters of Credit Outstanding, Amount | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 | ||||||||||||||
Comerica credit facility [Member] | Credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate, Stated Percentage | 6.30% | 6.30% | 6.30% | 6.02% | |||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 42,482,000 | $ 42,482,000 | $ 42,482,000 | ||||||||||||||
Comerica credit facility [Member] | Credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 4.00% | ||||||||||||||||
New Caney Land Loan [Member] | Notes Payable to Banks [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate, Stated Percentage | 5.21% | 5.21% | 5.21% | ||||||||||||||
New Caney Land Loan [Member] | Land Loan Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 5,000,000 | ||||||||||||||||
Debt Instrument, Covenant, Net Asset Value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
New Caney Land Loan [Member] | Land Loan Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 3.00% | ||||||||||||||||
New Caney Land Loan [Member] | Credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||||||||||||||
Kingwood Place Construction Loan [Member] | Construction Loan Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of Debt Maturity Extensions | 2 | ||||||||||||||||
Debt Maturity Extension, Term | 12 months | ||||||||||||||||
Interest Rate, Stated Percentage | 4.66% | 4.66% | 4.66% | 4.88% | |||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 24,473,000 | $ 24,473,000 | $ 24,473,000 | ||||||||||||||
Kingwood Place Construction Loan [Member] | Construction Loan Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 2.50% | ||||||||||||||||
Kingwood Place Construction Loan [Member] | Stratus Kingwood, L.P. [Member] | Notes Payable to Banks [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | 32,900,000 | ||||||||||||||||
Long-term Debt | $ 26,100,000 | ||||||||||||||||
Kingwood Place Construction Loan [Member] | Stratus Kingwood, L.P. [Member] | Notes Payable to Banks [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Net Asset Value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
Kingwood Place Construction Loan [Member] | Stratus Kingwood, L.P. [Member] | Notes Payable to Banks [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Debt-To-Gross Asset Value, Percent | 50.00% | 50.00% | 50.00% | ||||||||||||||
Kingwood Place Construction Loan [Member] | Stratus Kingwood, L.P. [Member] | Notes Payable to Banks [Member] | Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 35,400,000 | ||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ 2,500,000 | ||||||||||||||||
Santal Phase I & Phase II Construction Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | $ 57,900,000 | ||||||||||||||||
Kingwood Place Loan [Member] | Stratus Kingwood, L.P. [Member] | Notes Payable to Banks [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 6,750,000 | ||||||||||||||||
Lantana Place Construction Loan [Member] | Construction Loan Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 26,300,000 | ||||||||||||||||
Debt Instrument, Covenant, Net Asset Value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
Debt Instrument, Covenant, Debt Service Ratio | 150.00% | ||||||||||||||||
Interest Rate, Stated Percentage | 5.01% | 5.01% | 5.01% | 4.85% | |||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 23,457,000 | $ 23,457,000 | $ 23,457,000 | ||||||||||||||
Lantana Place Construction Loan [Member] | Construction Loan Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 2.75% | ||||||||||||||||
Lantana Place Construction Loan [Member] | Construction Loan Payable [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Debt Service Coverage Ratio | 135.00% | ||||||||||||||||
Interest Rate, Stated Percentage | 3.00% | 3.00% | 3.00% | ||||||||||||||
The Saint Mary Construction Loan [Member] | Construction Loan Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 3.00% | ||||||||||||||||
Number of Debt Maturity Extensions | 2 | ||||||||||||||||
Debt Maturity Extension, Term | 12 months | ||||||||||||||||
Interest Rate, Stated Percentage | 5.11% | 5.11% | 5.11% | ||||||||||||||
The Saint Mary Construction Loan [Member] | The Saint Mary, L.P. [Member] | Construction Loan Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 26,000,000 | ||||||||||||||||
Debt Instrument, Covenant, Debt Service Coverage Ratio | 125.00% | ||||||||||||||||
Jones Crossing Construction Loan [Member] | Construction Loan Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 36,800,000 | ||||||||||||||||
Debt Instrument, Covenant, Net Asset Value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
Interest Rate, Stated Percentage | 5.45% | 5.45% | 5.45% | 5.29% | |||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 21,630,000 | $ 21,630,000 | $ 21,630,000 | ||||||||||||||
Jones Crossing Construction Loan [Member] | Construction Loan Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 3.75% | ||||||||||||||||
Jones Crossing Construction Loan [Member] | Construction Loan Payable [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Debt Service Ratio | 150.00% | ||||||||||||||||
Jones Crossing Construction Loan [Member] | Construction Loan Payable [Member] | Minimum [Member] | Scenario, Forecast [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Debt Service Coverage Ratio | 135.00% | ||||||||||||||||
Jones Crossing Construction Loan [Member] | Construction Loan Payable [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate, Stated Percentage | 4.00% | 4.00% | 4.00% | ||||||||||||||
West Killeen Market construction loan [Member] | Construction Loan Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 9,900,000 | ||||||||||||||||
Interest Rate, Stated Percentage | 5.09% | 5.09% | 5.09% | 4.76% | |||||||||||||
Long-term Debt, Including Current Maturities, Principal Amount | $ 7,307,000 | $ 7,307,000 | $ 7,307,000 | ||||||||||||||
Interest payments initial term | 42 months | ||||||||||||||||
Debt Instrument, Term | 72 months | ||||||||||||||||
Principal and interest term | 30 months | ||||||||||||||||
Debt Instrument, Covenant, Stockholders Equity | $ 110,000,000 | $ 110,000,000 | $ 110,000,000 | ||||||||||||||
West Killeen Market construction loan [Member] | Construction Loan Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 2.75% | ||||||||||||||||
West Killeen Market construction loan [Member] | Construction Loan Payable [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Debt Service Coverage Ratio | 135.00% | ||||||||||||||||
Interest Rate, Stated Percentage | 3.00% | 3.00% | 3.00% | ||||||||||||||
Amarra Villas Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis Spread on Variable Rate | 3.00% | ||||||||||||||||
Amarra Villas Credit Facility [Member] | Credit facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loss on early extinguishment of debt | $ (16,000) | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | $ 15,000,000 | 15,000,000 | $ 8,000,000 | $ 15,000,000 | ||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 9,300,000 | 9,300,000 | 9,300,000 | ||||||||||||||
Amarra Villas Credit Facility [Member] | Credit facility [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Net Asset Value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
Amarra Villas Credit Facility [Member] | Credit facility [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Covenant, Debt-To-Gross Asset Value, Percent | 50.00% | 50.00% | 50.00% |
Debt - Maturities (Details)
Debt - Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 42,608 |
2021 | 27,797 |
2022 | 113,015 |
2023 | 43,759 |
Total | 227,179 |
The Santal Loan [Member] | Credit facility [Member] | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 0 |
2022 | 75,000 |
2023 | 0 |
Total | 75,000 |
Comerica credit facility [Member] | Credit facility [Member] | |
Debt Instrument [Line Items] | |
2020 | 42,482 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Total | 42,482 |
Amarra Villas Credit Facility [Domain] | Credit facility [Member] | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 0 |
2022 | 5,745 |
2023 | 0 |
Total | 5,745 |
New Caney Land Loan [Member] | Credit facility [Member] | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 5,000 |
2022 | 0 |
2023 | 0 |
Total | 5,000 |
Kingwood Place Construction Loan [Member] | Construction Loan Payable [Member] | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 0 |
2022 | 24,473 |
2023 | 0 |
Total | 24,473 |
Lantana Place Construction Loan [Member] | Construction Loan Payable [Member] | |
Debt Instrument [Line Items] | |
2020 | 31 |
2021 | 368 |
2022 | 385 |
2023 | 22,673 |
Total | 23,457 |
The Saint Mary [Member] | Construction Loan Payable [Member] | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 22,085 |
2022 | 0 |
2023 | 0 |
Total | 22,085 |
Jones Crossing Construction Loan [Member] | Construction Loan Payable [Member] | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 225 |
2022 | 319 |
2023 | 21,086 |
Total | 21,630 |
West Killeen Market construction loan [Member] | Construction Loan Payable [Member] | |
Debt Instrument [Line Items] | |
2020 | 95 |
2021 | 119 |
2022 | 7,093 |
2023 | 0 |
Total | $ 7,307 |
Income Taxes - Provision for (b
Income Taxes - Provision for (benefit from) income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current | $ (229) | $ (171) |
Deferred | 504 | 866 |
Benefit from income taxes | $ 275 | $ 695 |
Income Taxes - Deferred income
Income Taxes - Deferred income taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Real estate, commercial leasing assets and facilities | $ 9,333 | $ 9,838 |
Employee benefit accruals | 773 | 373 |
Accrued liabilities | 0 | 58 |
Deferred income | 498 | 21 |
Charitable contribution carryforward | 161 | 78 |
Other assets | 3,283 | 800 |
Net operating loss credit carryforwards | 1,583 | 1,181 |
Other liabilities | 3,320 | 515 |
Deferred tax assets, net | $ 12,311 | $ 11,834 |
Income Taxes - Income taxes (Re
Income Taxes - Income taxes (Reconciliation of U.S. federal statutory rate to effective tax rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
federal statutory income tax rate | $ 643 | $ 1,269 |
Executive compensation limitation | (111) | (444) |
State taxes | (159) | (126) |
Other | (98) | (4) |
Benefit from income taxes | $ 275 | $ 695 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Income tax benefit computed at the federal statutory income tax rate | 21.00% | 21.00% |
Executive compensation limitation | 4.00% | 7.00% |
State taxes | (5.00%) | (2.00%) |
Other | (3.00%) | 0.00% |
Effective income tax rate reconciliation, percent | 9.00% | 12.00% |
Income taxes paid | $ 600 | $ 2,000 |
Proceeds from income tax refunds | $ 100 | $ 300 |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 314 | $ 507 |
Additions for tax positions related to prior years | 24 | 178 |
Subtractions for tax positions related to prior years | (140) | (371) |
Balance at December 31 | $ 198 | $ 314 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Income Taxes [Line Items] | ||
Unrecognized tax benefits that would would impact effective tax rate | $ 0.2 | |
Unrecognized tax benefits, interest costs accrued | $ 0.1 | |
Scenario, Forecast [Member] | ||
Schedule of Income Taxes [Line Items] | ||
Unrecognized tax benefits that would would impact effective tax rate | $ 0.2 |
Equity Transactions, Stock-Ba_3
Equity Transactions, Stock-Based Compensation and Employee Benefits - Equity (Details) - shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 01, 2013 | Oct. 31, 2013 | |
Stock repurchase program, authorized (in shares) | 1,700,000 | 700,000 | ||
Stock repurchased during period (in shares) | 0 | 0 | ||
Stock Repurchase Program, remaining number of shares authorized to be repurchased (in shares) | 991,695 | |||
Comerica Bank [Member] | ||||
Debt Instrument, Restrictive Covenants | Stratus' ability to pay dividends on its common stock and repurchase shares of its common stock is restricted by the terms of its loan agreements with Comerica Bank, which prohibit Stratus from paying any dividends or repurchasing shares in excess of $1.0 million without the bank's prior written consent. |
Equity Transactions, Stock-Ba_4
Equity Transactions, Stock-Based Compensation and Employee Benefits - Stock Award Plans and Stock-Based Compensation Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Cost [Line Items] | |||
Compensation costs | $ 0.4 | $ 0.8 | |
2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Cost [Line Items] | |||
Number of shares authorized (in shares) | 154,600 | 180,000 | |
2013 Stock Incentive Plan [Member] | |||
Share-based Compensation Cost [Line Items] | |||
Number of shares authorized (in shares) | 180,000 | ||
Shares available for grant (in shares) | 12,700 | ||
2010 Stock Incentive Plan [Member] | |||
Share-based Compensation Cost [Line Items] | |||
Number of shares authorized (in shares) | 140,000 | ||
Shares available for grant (in shares) | 4,375 | ||
1996 Stock Option Plan [Member] | |||
Share-based Compensation Cost [Line Items] | |||
Shares available for grant (in shares) | 2,500 |
Equity Transactions, Stock-Ba_5
Equity Transactions, Stock-Based Compensation and Employee Benefits - RSUs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Rollforward [Line Items] | ||
Award vesting period | 4 years | |
Performance-based RSUs [Member] | ||
Share-based Compensation Rollforward [Line Items] | ||
Award vesting period | 3 years | |
Granted (in RSUs) | 21,000 | |
Performance share unit payout percentage | 5000.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in RSUs) | 21,000 | |
Performance Shares and Restricted Stock Units [Member] | ||
Share-based Compensation Rollforward [Line Items] | ||
Granted (in RSUs) | 25,400 | |
Grant date fair value | $ 600 | $ 700 |
Intrinsic value of vested share based awards | 600 | $ 1,100 |
Unrecognized compensation costs | $ 1,300 | |
Unrecognized compensation costs, weighted-average period of recognition | 1 year 4 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in RSUs) | 66,750 | |
Granted (in RSUs) | 25,400 | |
Vested (in RSUs) | (29,450) | |
Ending balance (in RSUs) | 62,700 | 66,750 |
RSUs outsanding intrinsic value | $ 1,919 |
Equity Transactions, Stock-Ba_6
Equity Transactions, Stock-Based Compensation and Employee Benefits - Stock Options (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Stratus shares tendered to pay the exercise price and/or the minimum required taxes (in shares) | 9,517 | 6,682 |
Amounts Stratus paid for employee taxes | $ 249 | $ 204 |
Equity Transactions, Stock-Ba_7
Equity Transactions, Stock-Based Compensation and Employee Benefits - Employee Benefits (Details) $ in Thousands | Jul. 11, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 02, 2018development_project |
Other Employee Benefits [Line Items] | |||||
Employer matching contribution of participants contribution, percent | 100.00% | ||||
Employer matching contribution, percent of participant's annual salary | 5.00% | ||||
Employer 401(k) plan contributions | $ 600 | $ 600 | |||
Payments for Capital Improvements | 62,550 | 61,932 | |||
General and administrative expenses | 11,344 | 10,314 | |||
Other liabilities | $ 5,543 | $ 6,578 | 5,543 | ||
Deferred Profit Sharing [Member] | |||||
Other Employee Benefits [Line Items] | |||||
Profit percentage of project designated to pool | 25.00% | ||||
Preferred return percent | 10.00% | 10.00% | |||
Number of development projects | development_project | 7 | ||||
Payments for Capital Improvements | 300 | $ 700 | |||
General and administrative expenses | 500 | 1,000 | |||
Other liabilities | $ 800 | $ 2,500 | $ 800 | ||
Restricted Stock Units (RSUs) [Member] | Deferred Profit Sharing [Member] | |||||
Other Employee Benefits [Line Items] | |||||
Vesting period of RSUs for capital transactions not occurred prior to third anniversary | 3 years | ||||
Restricted Stock Units (RSUs) [Member] | Deferred Profit Sharing [Member] | Executive Officer [Member] | |||||
Other Employee Benefits [Line Items] | |||||
Annual cash payout threshold ratio in excess of base salary | 4 | ||||
Vesting period of RSUs issued due to payouts in excess | 1 year | ||||
Corporate [Member] | |||||
Other Employee Benefits [Line Items] | |||||
Employer safe harbor contribution, percent | 3.00% | ||||
Minimum [Member] | Deferred Profit Sharing [Member] | |||||
Other Employee Benefits [Line Items] | |||||
Deferred Compensation Arrangement with Individual, Estimated Capitalization Rate | 5.00% | ||||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 2 years 2 months 12 days | ||||
Deferred Compensation Arrangement with Individual, Estimated Transaction Cost, Percent | 1.50% | ||||
Maximum [Member] | Deferred Profit Sharing [Member] | |||||
Other Employee Benefits [Line Items] | |||||
Deferred Compensation Arrangement with Individual, Estimated Capitalization Rate | 7.50% | ||||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 5 years 9 months 18 days | ||||
Deferred Compensation Arrangement with Individual, Estimated Transaction Cost, Percent | 6.80% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jul. 11, 2018 | Dec. 31, 2019 |
Long-term Purchase Commitment [Line Items] | ||
Noncancellable construction contract commitments | $ 100 | |
Minimum annual rental income under long-term operating leases: | ||
2020 | 7,900 | |
2021 | 8,100 | |
2022 | 8,200 | |
2023 | 8,000 | |
2024 | 7,900 | |
Thereafter | $ 105,000 | |
Deferred Profit Sharing [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Preferred return percent | 10.00% | 10.00% |
Letter of Credit [Member] | Comerica credit facility [Member] | Letter of Credit [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Letters of credit committed | $ 1,900 | |
HEB Store [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Payments of Participation Interest | 10.00% |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)a | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, cost | $ 1,400 | |
Operating leases, rent expense | $ 1,600 | |
Operating lease, payments | $ 220 | |
Weighted average discount rate, percent | 6.00% | |
Weighted average remaining lease term | 94 years | |
Operating Leases, Future Minimum Payments Due | 200 | |
2019 | 200 | |
2020 | 100 | |
2021 | 400 | |
2022 | 500 | |
Thereafter | $ 110,500 | |
College Station, Texas [Member] | Land Available for Development [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 99 years | |
Land under development or available for development (in acres) | a | 72 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Payments for Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 199 |
2021 | 144 |
2022 | 434 |
2023 | 497 |
2024 | 669 |
Thereafter | 109,879 |
Total payments | 111,822 |
Present value adjustment | (99,186) |
Present value of net minimum lease payments | $ 12,636 |
Commitments and Contingencies_4
Commitments and Contingencies - Circle C Settlement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Aug. 01, 2002 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Development Fee Credits, Amount Per Settlement Agreement | $ 15 | |
Development Fee Credits, Amount Eligible For Sale Per Year | $ 1.5 | |
Development Fee Credits, Cumulative Amount Permanently Used | 12.8 | |
Development Fee Credits, Cumulative Amount Sold To Third Parties | 5.1 | |
Development Fee Credits, Outstanding Credit Bank Capacity | 0.5 | |
Development Fee Credits, Available Credit Bank Capacity | $ 2.6 |
Commitment and Contingencies -
Commitment and Contingencies - The Oaks at Lakeway (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred gain | $ 7,654 | $ 9,270 | ||
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] | ||||
Proceeds from Sale of Real Estate Held-for-investment | $ 114,000 | |||
Contractual obligation | $ 120 | |||
Deferred revenue, revenue recognized | $ 24,300 | |||
Lakeway Master Lease Retail [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Term of contract | 5 years | |||
Lakeway Master Lease Unleased 3 Pad Sites [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Term of contract | 10 years | |||
Lakeway Master Lease Unleased 1 Pad Site [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Term of contract | 15 years | |||
Lakeway Master Lease Hotel [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Term of contract | 99 years |
Business Segments - Revenues fr
Business Segments - Revenues from External Customers for Products and Services (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Revenue from External Customer [Line Items] | ||
Revenue | $ 13,785 | $ 16,778 |
Leasing operations | 16,218 | 8,211 |
Total revenues | $ 30,003 | 24,989 |
Number of operating segments | 2 | |
Real Estate Operations | Real Estate [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 13,785 | 16,778 |
Real Estate Operations | Developed property sales | ||
Revenue from External Customer [Line Items] | ||
Revenue | 13,549 | 16,509 |
Real Estate Operations | Commissions and other | ||
Revenue from External Customer [Line Items] | ||
Revenue | 236 | 269 |
Leasing Operations | ||
Revenue from External Customer [Line Items] | ||
Lease income | $ 16,218 | |
Leasing operations | $ 8,211 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Unaffiliated customers | $ 30,003 | $ 24,989 | |
Cost of sales, excluding depreciation | 17,535 | 19,088 | |
Depreciation | 5,591 | 2,824 | |
General and administrative expenses | 11,344 | 10,314 | |
Gain (loss) on sales of assets | (5,683) | 0 | |
Operating income (loss) | 1,216 | (7,237) | |
Capital expenditures | 73,827 | 105,592 | |
Municipal utility districts reimbursements | 1,143 | 0 | |
Assets | 561,368 | 496,493 | |
Assets held for sale - discontinued operations | 158,748 | 163,970 | |
Discontinued Operations, Held-for-sale [Member] | |||
Revenues: | |||
Assets held for sale - discontinued operations | 158,700 | 164,000 | |
Barton Creek [Member] | |||
Revenues: | |||
Recovery of direct costs | 400 | ||
Operating Segments [Member] | Real Estate Operations | |||
Revenues: | |||
Unaffiliated customers | 13,785 | 16,778 | |
Cost of sales, excluding depreciation | 9,467 | 15,445 | |
Depreciation | 224 | 220 | |
General and administrative expenses | 0 | 0 | |
Gain (loss) on sales of assets | 0 | ||
Operating income (loss) | 4,112 | 1,144 | |
Capital expenditures | 11,277 | 43,660 | |
Municipal utility districts reimbursements | 1,133 | ||
Assets | 180,099 | 164,939 | |
Operating Segments [Member] | Leasing Operations | |||
Revenues: | |||
Unaffiliated customers | 16,218 | 8,211 | |
Cost of sales, excluding depreciation | 8,069 | 3,644 | |
Depreciation | 5,536 | 2,635 | |
General and administrative expenses | 0 | 0 | |
Gain (loss) on sales of assets | (5,683) | ||
Operating income (loss) | 8,296 | 1,932 | |
Capital expenditures | 61,245 | 60,759 | |
Municipal utility districts reimbursements | 10 | ||
Assets | 211,922 | 161,310 | |
Intersegment Eliminations [Member] | |||
Revenues: | |||
Unaffiliated customers | (18) | (31) | |
Cost of sales, excluding depreciation | (1) | (1) | |
Depreciation | (169) | (31) | |
General and administrative expenses | 11,344 | 10,314 | |
Gain (loss) on sales of assets | 0 | ||
Operating income (loss) | (11,192) | (10,313) | |
Capital expenditures | 1,305 | 1,173 | |
Municipal utility districts reimbursements | 0 | ||
Assets | 169,347 | 170,244 | |
Intersegment Eliminations [Member] | Real Estate Operations | |||
Revenues: | |||
Unaffiliated customers | 18 | 31 | |
Intersegment Eliminations [Member] | Leasing Operations | |||
Revenues: | |||
Unaffiliated customers | 0 | $ 0 | |
MUD bond [Member] | |||
Revenues: | |||
Proceeds from MUD reimbursement | $ 26,000 | 4,800 | |
MUD bond [Member] | Real Estate [Member] | |||
Revenues: | |||
Proceeds from MUD reimbursement | $ 3,400 |