STRATUS PROPERTIES INC Q1 FY2022 earnings call

• Project Progress: Advancing residential (Saint June, Amarra Villas, Annie B, Saint George, Lantana Place/Saint Julia, Holden Hills, Section N), retail (Magnolia Place construction), and commercial projects. - Block 21 Sale: Working to close $260 million sale to Ryman Hospitality Properties by June 1, 2022. Block 21 venues operating at full capacity, W Austin Hotel revenue at ~70% of pre-pandemic levels. - Residential Updates: Saint June first units expected Q4 2022-Q1 2023; Saint George to start Q2 2022, substantial completion mid-2024; Annie B with historic AO Watson House expansion; Lantana Place/Saint Julia and Holden Hills development plans advanced. - Retail/Commercial: Magnolia Place construction ongoing; exploring sale/refinancing of Kingwood Place, West Killeen Market, Jones Crossing; Lantana Place has 85% retail leases signed.

Real Estate Operations: In Q1 2022, revenue was $23,000 (vs $6.6 million in Q1 2021). Operating loss was $1.4 million (vs operating income of $2.1 million in Q1 2021). No sales in Q1 2022 due to limited developed property inventory. Leasing Operations: Revenue in Q1 2022 was $3.1 million (vs $4.8 million in Q1 2021). Operating income was $6.1 million (vs $24.2 million in Q1 2021). Decrease in revenue due to sale of Santal in 2021, partially offset by increased revenue at Lantana Place. Discontinued Operations (Hotel and Entertainment): Hotel revenues in Q1 2022 were $5.9 million (vs $2.1 million in Q1 2021). Entertainment revenues were $5.3 million (vs $0.6 million in Q1 2021). RevPAR was $165 in Q1 2022 (vs $51 in Q1 2021).

• Block 21 sale expected to close prior to June 1, 2022, subject to closing conditions. - Will provide additional strategic planning info after Block 21 sale concludes. - Saint June completion Q4 2022-Q1 2023; Saint George to start Q2 2022, substantial completion mid-2024; Annie B expected to begin construction.

• Construction cost environment with price escalations and supply chain delays. - Rising borrowing costs. - Block 21 sale subject to timely satisfaction or waiver of closing conditions.

Q: Could you give more color to the change in thinking on Section N and the type of development?

A: Section N is being redeveloped for more density under new ordinances, aiming for taller buildings with structured parking, mixed-use.

Q: Do you have financing partners on Section N?

A: Currently owned by Stratus, likely to bring in partners.

Q: How much of the existing debt is related to Kingwood Place, West Killeen and Jones Crossing?

A: Project level debt, exact numbers not provided but can follow up.

Q: Have you started any demolition on Annie B and Saint George?

A: Annie B demo permit pulled, started demolition; Saint George permit expected by end of month.