STRATUS PROPERTIES Business Summary

Stratus Properties Inc. (STRS) is a diversified real estate development and management firm primarily focused on the Austin, Texas, metropolitan area and other high-growth Texas markets. The company generates revenue through two core business segments: Real Estate Operations and Leasing Operations. Revenue in the Real Estate Operations segment is derived from the acquisition, entitlement, development, and sale of multi-family and single-family residential properties, as well as commercial land and developed lots. The Leasing Operations segment produces recurring income through the rental of retail, mixed-use, and multi-family residential spaces, including grocery-anchored centers and luxury apartment complexes. Following the 2022 sale of its "Block 21" asset, which eliminated its hotel and entertainment segments, Stratus has pivoted toward monetizing its stabilized retail portfolio, exemplified by the $60.8 million sale of Kingwood Place completed in February 2026. Direct competitors include Howard Hughes Holdings Inc., Five Point Holdings, and Armada Hoffler Properties; Stratus distinguishes itself as a geographically concentrated, small-cap developer with deep institutional roots in the Central Texas market. The company was established in 1992 as a spin-off from Freeport-McMoRan to manage its domestic real estate and energy assets. Leadership is anchored by William H. "Beau" Armstrong III, who has served as Chairman, President, and CEO since the late 1990s and has been with the firm since its inception, bringing over 30 years of expertise in the Austin real estate landscape. Supporting him is Erin D. Pickens, who has served as Senior Vice President and Chief Financial Officer since 2009, previously holding executive roles at Tarragon Corporation. The company’s governance is overseen by a recently refreshed board, including Lead Independent Director James E. Joseph and directors such as Laurie L. Dotter and Neville L. Rhone, Jr. Notable institutional backing includes LCHM Holdings, LLC (managed by Carl Berg), which maintains significant board representation, and Oasis Management Company Ltd., reflecting a shareholder base focused on the company's ongoing strategic alternatives process initiated in late 2025.