STRATUS PROPERTIES INC.

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Highlights and Recent Developments:

William H. Armstrong III, Chairman of the Board of Directors (Board) and Chief Executive Officer of Stratus, stated, “During the first nine months of 2025, we continued to make meaningful progress across our portfolio and unlock stockholder value. Our stabilized assets have continued to perform well, and we advanced key development projects. We are pleased to have entered into an agreement to sell Lantana Place – Retail for approximately $57.4 million, a favorable outcome that will allow us to repay the associated project loan and further strengthen our balance sheet. In connection with the anticipated closing of the sale along with the recent cash proceeds from the formation of the Holden Hills Phase 2 partnership and other asset sales, our Board is exploring opportunities for the use of cash, which will be based on evolving market conditions and may include a combination of further share repurchases, deleveraging, reinvesting in our project pipeline and/or other cash returns to stockholders.

Lease-up of The Saint George is progressing after we completed construction earlier this year. At Holden Hills Phase 1, we have substantially completed the initial road and utility infrastructure and are proceeding with Travis County regulatory approvals for the roadway, which will help position us to begin homebuilding and selling home sites in 2026. With a strong cash position and no outstanding balance on our revolving credit facility, we remain focused on maximizing value for our stockholders.”

Summary Financial Results

			Three Months Ended												Nine Months Ended
			September 30,												September 30,
			2025						2024						2025						2024
			(In Thousands, Except Per Share Amounts) (Unaudited)
Revenues
Real Estate Operations			$	45					$	3,971					$	6,868					$	29,723
Leasing Operations			4,924						4,920						14,749						14,165
Total consolidated revenue			$	4,969					$	8,891					$	21,617					$	43,888
Operating (loss) income
Real estate operations a			$	(4,544)					$	(1,421)					$	(9,582)					$	4,541
Leasing operations b			317						3,265						8,609						6,375
General and administrative expenses c			(3,866)						(3,363)						(11,474)						(11,670)
Total consolidated operating loss			$	(8,093)					$	(1,519)					$	(12,447)					$	(754)
Net loss			$	(8,007)					$	(1,414)					$	(14,059)					$	(495)
Net loss attributable to noncontrolling interests in subsidiaries d			$	3,029					$	1,050					$	6,466					$	2,958
Net (loss) income attributable to common stockholders			$	(4,978)					$	(364)					$	(7,593)					$	2,463
Basic net (loss) income per share attributable to common stockholders			$	(0.62)					$	(0.05)					$	(0.94)					$	0.31
Diluted net (loss) income per share attributable to common stockholders			$	(0.62)					$	(0.05)					$	(0.94)					$	0.30
EBITDA			$	(5,507)					$	9					$	(8,025)					$	3,877
Capital expenditures and purchases and development of real estate properties			$	7,060					$	13,428					$	28,618					$	45,887
Municipal utility district (MUD) reimbursements applied to real estate under development e			$	—					$	—					$	409					$	—
Weighted-average shares of common stock outstanding:
Basic			8,033						8,080						8,051						8,059
Diluted			8,033						8,080						8,051						8,186

Results of Operations

Debt and Liquidity

Share Repurchase Program

Strategy

About Stratus

CAUTIONARY STATEMENT

This press release contains forward-looking statements in which Stratus discusses factors it believes may affect its future performance. Forward-looking statements are all statements other than statements of historical fact, such as plans, projections or expectations related to inflation, interest rates, tariffs and trade policies, supply chain constraints, Stratus’ ability to pay or refinance its debt obligations as they become due, availability of bank credit, Stratus’ ability to meet its future debt service and other cash obligations, projected future operating loans or capital contributions to Stratus’ joint ventures, statements regarding the exploration of opportunities for the use of cash proceeds from the Holden Hills Phase 2 partnership formation and recent and pending asset sales, and whether and when the sale of Lantana Place – Retail will be completed, potential costs for which The Saint George Apartments, L.P. may be responsible for the remediation and repair of damage caused by the water leak at The Saint George, future cash flows and liquidity, the Austin and Texas real estate markets, the planning, financing, development, construction, completion and stabilization of Stratus’ development projects, including projected costs and estimated times to complete construction, plans to sell, recapitalize or refinance properties and estimated timing for closing properties under contract, future operational and financial performance, MUD reimbursements for infrastructure costs, regulatory matters, including the expected impact of Texas Senate Bill 2038 (the ETJ Law) and related ongoing litigation, leasing activities, tax rates, future capital expenditures and financing plans, possible joint ventures, partnerships or other strategic relationships, other plans and objectives of management for future operations and development projects, and potential future cash returns to stockholders, including the timing and amount of repurchases under Stratus’ share repurchase program. The words “anticipate,” “may,” “can,” “plan,” “believe,” “potential,” “estimate,” “expect,” “project,” “target,” “intend,” “likely,” “will,” “should,” “to be” and any similar expressions or statements are intended to identify those assertions as forward-looking statements.

Under Stratus’ Comerica Bank debt agreements, Stratus is not permitted to repurchase its common stock in excess of $1.0 million or pay dividends on its common stock without Comerica Bank’s prior written consent, which Stratus obtained in connection with its current $25.0 million share repurchase program. Any future declaration of dividends or decision to repurchase Stratus’ common stock outside of the approved share repurchase program is at the discretion of Stratus’ Board, subject to restrictions under Stratus’ Comerica Bank debt agreements, and will depend on Stratus’ financial results, cash requirements, projected compliance with covenants in its debt agreements, outlook and other factors deemed relevant by the Board. Stratus’ future debt agreements, future refinancings of or amendments to existing debt agreements or other future agreements may restrict Stratus’ ability to declare dividends or repurchase shares.

Stratus cautions readers that forward-looking statements are not guarantees of future performance, and its actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause Stratus’ actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, Stratus’ ability to implement its business strategy successfully, including its ability to develop, construct and sell or lease properties on terms its Board considers acceptable, increases in operating and construction costs, including real estate taxes, maintenance and insurance costs, and the cost of building materials and labor, elevated inflation and interest rates, the effect of changes in tariffs and trade policies, including threatened tariffs, supply chain constraints, Stratus’ ability to pay or refinance its debt, extend maturity dates of its loans or comply with or obtain waivers of financial and other covenants in debt agreements and to meet other cash obligations, availability of bank credit, defaults by contractors and subcontractors, the results of the Board’s exploration of opportunities for the use of cash proceeds from the Holden Hills Phase 2 partnership formation and recent and pending asset sales, the occurrence of any event, change or other circumstance that could delay the closing of the sale of Lantana Place – Retail or result in the termination of the agreement to sell Lantana Place – Retail, the outcome of Stratus’ analysis and discussions with the insurance company and general contractor regarding responsibility for payment of costs to remediate and repair the damage caused by the water leak at The Saint George, declines in the market value of Stratus’ assets, market conditions or corporate developments that could preclude, impair or delay any opportunities with respect to plans to sell, recapitalize or refinance properties, a decrease in the demand for real estate in select markets in Texas where Stratus operates, particularly in Austin, changes in economic, market, tax, business and geopolitical conditions, potential U.S. or local economic downturn or recession, the availability and terms of financing for development projects and other corporate purposes, Stratus’ ability to collect anticipated rental payments and close projected asset sales, loss of key personnel, Stratus’ ability to enter into and maintain joint ventures, partnerships or other strategic relationships, including risks associated with such joint ventures, any major public health crisis, eligibility for and potential receipt and timing of receipt of MUD reimbursements, industry risks, changes in buyer preferences, potential additional impairment charges, competition from other real estate developers, Stratus’ ability to obtain various entitlements and permits, changes in laws, regulations or the regulatory environment affecting the development of real estate, opposition from special interest groups or local governments with respect to development projects, weather- and climate-related risks, environmental and litigation risks, including the timing and resolution of the ongoing litigation challenging the ETJ Law and Stratus’ ability to implement revised development plans in light of the ETJ Law, the failure to attract buyers or tenants for Stratus’ developments or such buyers’ or tenants’ failure to satisfy their purchase commitments or leasing obligations, cybersecurity incidents and other factors described in more detail under the heading “Risk Factors” in Stratus’ Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, each filed with the U.S. Securities and Exchange Commission (SEC).

Investors are cautioned that many of the assumptions upon which Stratus’ forward-looking statements are based are likely to change after the date the forward-looking statements are made. Further, Stratus may make changes to its business plans that could affect its results. Stratus cautions investors that it undertakes no obligation to update any forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, business plans, actual experience or other changes.

This press release also includes EBITDA, which is not recognized under accounting principles generally accepted in the U.S. (GAAP). Stratus’ management believes this measure can be helpful to investors in evaluating its business because EBITDA is a financial measure frequently used by securities analysts, lenders and others to evaluate Stratus' recurring operating performance. EBITDA is intended to be a performance measure that should not be regarded as more meaningful than GAAP measures. Other companies may calculate EBITDA differently. As required by SEC rules, a reconciliation of Stratus' net loss to EBITDA is included in the supplemental schedule of this press release.

STRATUS PROPERTIES INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited)

STRATUS PROPERTIES INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

STRATUS PROPERTIES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

STRATUS PROPERTIES INC.

BUSINESS SEGMENTS

RECONCILIATION OF NON-GAAP MEASURE

EBITDA