STRATUS PROPERTIES INC Q1 FY2021 earnings call

• COVID-19 pandemic impact and response: Managed liquidity, people, and tenants, with W Austin hotel open and cost containment measures. Communities like Austin and Houston growing. - Project updates: Retail properties with HEB partnerships, e.g., Magnolia Place, New Caney, Jones Crossing. Residential portfolio: Sold The Saint Mary at record per unit price, ongoing residential properties thriving in Austin, reworking Holden Hills development. - Financial operations: Refinanced The Santal loan, considering refinancing Jones Crossing project, and other property options like selling or holding.

Real Estate Operations segment: In Q1 2021, revenue was $6.6 million compared to $12.3 million in Q1 2020. Decrease mainly due to fewer lots and homes sold as available inventory decreased. Operating income moderately increased from $2.1 million in 2020 to $2.2 million in 2021. Leasing Operations segment: Revenue in Q1 2021 was $5.4 million vs $6 million in Q1 2020. Decrease due to sale of The Saint Mary. Operating income increased to $24.2 million including gain on sale. Hotel segment: Revenue was $2.2 million in Q1 2021 vs $6 million in Q1 2020. Operating loss was $1.6 million vs $1.1 million in 2020. RevPAR was $51 vs $150, occupancy 21% vs 13% in Q4 2020. Entertainment segment: Revenue declined from $4.2 million in Q1 2020 to $1.6 million in Q1 2021. Operating loss was $1.2 million vs operating income of $0.5 million in 2020.

• Austin's population growth creates demand for housing. - Committed to evaluating strategic initiatives including potential REIT conversion. - Will prudently manage costs, including construction material costs like lumber, and continue to take advantage of new opportunities.

• Continued impact of COVID-19 pandemic. - Cost increases in certain construction materials, particularly lumber.

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