Stratus Properties Swings to Profit in Q2 2025, Boosted by Strategic Asset Sales.
The Austin-based real estate firm leverages key project completions and a major joint venture to strengthen its cash position and expand its share repurchase program, signaling confidence amid market challenges.
Stratus Properties Inc. (NASDAQ: STRS) has demonstrated significant resilience, announcing a profitable second quarter for 2025 that marks a sharp turnaround from the same period last year. The Austin-focused residential and retail developer credited the positive results to the successful sale of key assets, even as it navigates a challenging real estate market and faces a year-over-year decline in first-half revenue.
The company’s strategic execution, including the formation of a lucrative joint venture and the completion of major construction projects, has significantly bolstered its financial health and positioned it for future growth.
A Closer Look at the Financials
While the six-month overview reflects market headwinds, the quarterly performance highlights a strong positive momentum for Stratus.
Second Quarter 2025: The company reported a net income attributable to common stockholders of $0.3 million, or $0.03 per diluted share. This is a substantial improvement from the net loss of $(1.7) million, or 11.6 million** from $8.5 million, primarily driven by the sale of two high-end Amarra Villas homes.
First Six Months 2025: For the first half of the year, Stratus posted a net loss of $(2.6) million, or $(0.32) per diluted share. This contrasts with a net income of $2.8 million, or 16.6 million** from $35.0 million.
Strategic Execution and Project Milestones
Beyond the balance sheet, Stratus achieved several critical operational goals during the quarter, underscoring its ability to execute its long-term strategy.
A landmark achievement was the formation of a joint venture for the development of Holden Hills Phase 2, which resulted in a $47.8 million cash distribution to Stratus. This move unlocks significant value and provides substantial liquidity.
Asset sales also played a pivotal role. The company sold its West Killeen Market retail project for $13.3 million, realizing a pre-tax gain of approximately $5.0 million. Furthermore, the sale of two Amarra Villas homes for a total of $6.8 million directly contributed to the quarter’s revenue growth.
On the development front, Stratus completed construction of The Saint George, a new multi-family project, and finished the last two homes in its luxury Amarra Villas community. The company also substantially completed the essential road and utility infrastructure for Holden Hills Phase 1, paving the way for future development.
Bolstering Shareholder Value and Financial Health
In a strong vote of confidence, the Stratus Board of Directors approved a five-fold increase in the company’s share repurchase program, raising the authorization from $5.0 million to $25.0 million. As of August 8, 2025, Stratus has already repurchased 22.0 million remaining** under the expanded program.
This initiative is backed by a robust balance sheet. As of June 30, 2025, Stratus held $59.4 million in cash and cash equivalents and had no amounts drawn on its revolving credit facility, giving it significant flexibility.
Management’s Confident Outlook
William H. Armstrong III, Chairman and CEO of Stratus, commented on the strong performance despite market pressures. He highlighted the “significant milestones,” including the Holden Hills joint venture, strategic asset sales, and key project completions.
Armstrong expressed optimism, noting, “Our strengthened cash position gives us the flexibility to explore various attractive alternatives to build value for our stockholders.”
Looking ahead, the Board is actively evaluating the best use of its substantial cash reserves. Options under consideration include further share repurchases, reducing debt, reinvesting in its project pipeline, and other forms of cash returns to stockholders. Stratus remains committed to its proven strategy of navigating market cycles to maximize long-term shareholder value.
