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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
(Mark One)
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from
  
to
Commission File Number: 0-19989
 
 
Stratus Properties Inc.
(Exact name of registrant as specified in its charter)

Delaware
72-1211572
(State or other jurisdiction of
incorporation or organization)
(IRS Employer Identification No.)
   
98 San Jacinto Blvd., Suite 220
  
Austin, Texas
78701
(Address of principal executive offices)
(Zip Code)
 
 
(512) 478-5788
(Registrant's telephone number, including area code)
 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No __

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ___ No X

On March 31, 2005, there were issued and outstanding 7,207,604 shares of the registrant’s Common Stock, par value $0.01 per share.





STRATUS PROPERTIES INC.
  
 
   
   
 
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STRATUS PROPERTIES INC.
Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

STRATUS PROPERTIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In Thousands)

 
March 31,
  
December 31,
  
 
2005
  
2004
  
ASSETS
            
Current assets:
            
Cash and cash equivalents, including restricted cash of
            
$123 and $124, respectively
$
1,032
  
$
379
  
Accounts receivable
  
242
    
345
  
Prepaid expenses
  
90
    
40
  
Notes receivable from property sales
  
47
    
47
  
Total current assets
  
1,411
    
811
  
Real estate, commercial leasing assets and facilities, net:
            
Property held for sale - developed or under development
  
113,393
    
104,526
  
Property held for sale - undeveloped
  
17,068
    
20,919
  
Property held for use, net
  
21,356
    
21,676
  
Other assets
  
4,350
    
4,140
  
Notes receivable from property sales
  
783
    
789
  
Total assets
$
158,361
  
$
152,861
  
             
LIABILITIES AND STOCKHOLDERS’ EQUITY
            
Current liabilities:
            
Accounts payable and accrued liabilities
$
4,811
  
$
1,343
  
Accrued interest, property taxes and other
  
2,074
    
2,390
  
Current portion of long-term debt
  
7,913
    
1,531
  
Total current liabilities
  
14,798
    
5,264
  
Long-term debt
  
51,156
    
54,116
  
Other liabilities
  
5,349
    
5,285
  
Stockholders’ equity
  
87,058
    
88,196
  
Total liabilities and stockholders' equity
$
158,361
  
$
152,861
  
             

The accompanying notes are an integral part of these consolidated financial statements.

3
Table of Contents
 

 
STRATUS PROPERTIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In Thousands, Except Per Share Amounts)

 
Three Months Ended
  
 
March 31,
  
 
2005
  
2004
  
Revenues:
            
Real estate
$
2,252
  
$
972
  
Rental income
  
1,220
    
828
  
Commissions, management fees and other
  
158
    
147
  
Total revenues
  
3,630
    
1,947
  
Cost of sales:
            
Real estate, net
  
1,892
    
1,113
  
Rental
  
608
    
689
  
Depreciation
  
418
    
345
  
Total cost of sales
  
2,918
    
2,147
  
General and administrative expenses
  
1,357
    
1,380
  
Total costs and expenses
  
4,275
    
3,527
  
Operating loss
  
(645
)
  
(1,580
)
Interest expense, net
  
(294
)
  
(237
)
Interest income
  
27
    
12
  
Net loss applicable to common stock
$
(912
)
$
(1,805
)
             
Basic and diluted net loss per share of common stock
$
(0.13
)
$
(0.25
)
             
Basic and diluted average shares of common stock outstanding
  
7,216
    
7,147
  
             

The accompanying notes are an integral part of these consolidated financial statements.

4
 
 

STRATUS PROPERTIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Thousands)

 
Three Months Ended
  
 
March 31,
  
 
2005
  
2004
  
Cash flow from operating activities:
            
Net loss
$
(912
)
$
(1,805
)
Adjustments to reconcile net loss to net cash provided by
            
(used in) operating activities:
            
Depreciation
  
418
    
345
  
Cost of real estate sold
  
1,442
    
718
  
Stock-based compensation
  
70
    
42
  
Long-term notes receivable and other
  
(205
)
  
(119
)
(Increase) decrease in working capital:
            
Accounts receivable and prepaid expenses
  
53
    
730
  
Accounts payable, accrued liabilities and other
  
3,216
    
(369
)
Net cash provided by (used in) operating activities
  
4,082
    
(458
)
             
Cash flow from investing activities:
            
Purchases and development of real estate properties
  
(6,458
)
  
(9,488
)
Development of commercial leasing properties and other expenditures
  
(98
)
  
(323
)
Net cash used in investing activities
  
(6,556
)
  
(9,811
)
             
Cash flow from financing activities:
            
Borrowings from revolving credit facility
  
6,500
    
3,228
  
Payments on revolving credit facility
  
(2,447
)
  
(816
)
Borrowings from project loans
  
468
    
5,852
  
Payments on project loans
  
(1,100
)
  
(44
)
Net proceeds from exercise of stock options
  
41
    
136
  
Purchases of Stratus common shares
  
(335
)
  
-
  
Net cash provided by financing activities
  
3,127
    
8,356
  
Net increase (decrease) in cash and cash equivalents
  
653
    
(1,913
)
Cash and cash equivalents at beginning of year
  
379
    
3,413
  
Cash and