Stratus Properties Inc. · NASDAQ:STRS
Stratus Properties — Investor Presentation (April 2015)
36 slides from Stratus Properties's investor presentation, Apr 20, 2015
Slide 1: Investor Presentation April 20, 2015
Investor Presentation April 20, 2015
Slide 2: Information Regarding This Presentation and Non-GAAP Measures
INFORMATION REGARDING THIS PRESENTATION AND NON-GAAP MEASURES We recommend that you read this presentation along with our Annual Report on Form 10-K for the year ended December 31, 2014 (2014 Form 10-K) filed with the U.S. Securities and Exchange Commission (SEC), and subsequent SEC filings, which i
Slide 3: Company Overview
Company Overview • Stratus Properties Inc. (NASDAQ: STRS; “Stratus”) is a diversified real estate company engaged primarily in the acquisition, entitlement, development, management, operation and sale of commercial, hotel, entertainment, and multi- and single- family residential real estate properti
Slide 4: Significant Unrecognized Value
Significant Unrecognized Value 4 ($ in millions) Summary 284 Lots 2,348 Units 3.6 Million Square Feet 251 Rooms 2,750 Seats Note: For further detail of assets and their valuation, please see reference slides beginning on page 22. See “Information Regarding This Presentation and Non-GAAP Measures” on
Slide 5: Focused Portfolio Including Stabilized Assets and Development Opportunities
Focused Portfolio Including Stabilized Assets and Development Opportunities 5 Gross Estimated Value by Category Note: For further detail of assets and their valuation, please see reference slides beginning on page 22. See “Information Regarding This Presentation and Non-GAAP Measures” on page 2.
Slide 6: Estimated Net Asset Value
Estimated Net Asset Value 6 Note: For further detail of assets and their valuation, please see reference slides beginning on page 22. See footnotes on page 23. See “Information Regarding This Presentation and Non-GAAP Measures” on page 2. Category 1 Property Held for Future Use 156 170 264,081 - - 1
Slide 7: Current Debt Level at ~29% of Gross Estimated Value
Current Debt Level at ~29% of Gross Estimated Value Debt ($ in millions) 12/31/14 Unsecured Term Loans $ 23.0 Secured Term Loans 173.5 Total Consolidated Debt $196.5 Partners’ Share of Debt (61.9) Stratus’ Share of Debt $134.6 7 Note: For further detail, please see reference slide on page 24.
Slide 8: Company Origin
Company Origin • History of Stratus Properties Inc. (NASDAQ: STRS) – Highly leveraged spin-off from Freeport-McMoRan Inc. (FTX) in May 1992 – Assumed substantially all liabilities related to transferred assets, including approximately $500 million of debt – Original Function: manage, develop and ope
Slide 9: Company Profile
Company Profile • Since the sale of the oil and gas holdings in 1993, Stratus has focused exclusively on real estate activities – Acquisition, development, management, operation and/or sale of commercial, hotel, entertainment, and multi- and single-family residential real estate properties located i
Slide 10: Plan to Return Cash to Shareholders
Plan to Return Cash to Shareholders Summary of Properties to be Developed and Sold or Sold Undeveloped Pursuant to 5-Year Plan (Excludes Existing Developed Properties) (1) Develop and Sell Sell Undeveloped Single-family Lots 156 0 Multi-family Units 1,535 811 Commercial Square Feet 1,227,960 2,220,0
Slide 11: Austin: Strong Economy in Texas
Austin: Strong Economy in Texas • Housing starts were up 17 percent in 2014 compared to previous year • Rental and occupancy rates are on the rise across office, retail, industrial and multi-family sectors • According to Angelou Economics, forcasted absorption in the next two years includes: – 3.6 m
Slide 12: Texas Leads Nation in Growth
Texas Leads Nation in Growth • Austin, with 3 percent growth in 2014, was the fastest growing metro in the nation above 1 million people and was third- fastest overall. • Houston and Dallas were the only two metros in the nation to add more than 100,000 people in 2014. • Texas unemployment was 4.4%
Slide 13: Desirable Residential Neighborhoods in Austin
Desirable Residential Neighborhoods in Austin 13 2013 Residential Lot Sales Subdivision # Sold Total Price Avg. Price Mirador 1 $405,000 $405,000 Calera 6 $1,370,750 $228,458 Amarra I 2 $650,000 $325,000 Amarra II 3 $1,525,000 $508,333 Verano 39 $12,142,642 $311,350 Meridian Construction TOTAL 51 $1
Slide 14: Block 21: Iconic Property That Ignited Downtown
Block 21: Iconic Property That Ignited Downtown • Stratus financial ownership: 42% – 2014 total NOI of $16.1 million – 2015 total projected NOI1 of $17.4 million • The W Austin Hotel – 251 rooms – 2014 RevPAR : $291 – 2014 Occupancy: 82.9% – 2014 NOI of $10.4 million – 2015 budgeted NOI1 of $11.4 mi
Slide 15: Tecoma (Barton Creek Section N)
Tecoma (Barton Creek Section N) • Section N approved for 1,860 multi- family units and 1.5 million square feet of commercial development • First 236 multi-family units are under construction at a total cost of $43.7 million • $25 million road and utility project to be substantially completed in Dece
Slide 16: Tecoma Phase I Multi-family
Tecoma Phase I Multi-family 16 • 236 unit garden style multi- family apartment complex • Construction commenced in January 2015; leasing is scheduled to begin in September 2015 and the project is expected to be completed in January 2016 • Phase II is permitted for an additional 212 units; remaining
Slide 17: Oaks at Lakeway
Oaks at Lakeway • 87acre infill site / 9 parcel assemblage • Approximately 250,000 SF commercial development with 95,000 SF HEB grocery anchor • 35 acres of residentially zoned land • 63% preleased as of March 31, 2015 • HEB is scheduled to open in October 2015 • Financial projections: 1 – $78.6 mil
Slide 18: Magnolia TX HEB
Magnolia TX HEB 18 • 142 acres; 18 acres were simultaneously sold to HEB for a 93,000 square foot store • The City of Magnolia is adjacent to The Woodlands, near Houston, TX • Stratus has entitlements and utilities for: – 8 pad sites – 12-acre secondary anchor site – 100,000 square feet of retail sh
Slide 19: West Killeen Market
West Killeen Market 19 • Planned acquistion of 21 acres; 12.2 acres will be simultaneously sold to HEB for a 92,000 SF store • Future commercial development includes: – 50,000 square feet of retail shop space – 2 pad sites • Closing is expected to occur in the fourth quarter of 2015 • Financial proj
Slide 20: Lantana GR1
Lantana GR1 • 36 acres • Up to 325,000 SF of commercial development • Mixed-use project combining retail and office uses • Undergoing active planning; seeking city approval of site plan 20 Significant retail development opportunity in supply-constrained sub-market
Slide 21: Appendix
21 Appendix
Slide 22: Estimated Net Asset Value
22 Estimated Net Asset Value Property Use Ownership % Contributed Land at Carrying Value Additional Capital Funded Additional Capital To Be Funded Total Funded To Be Funded Total As Is (C) As Stabilized 1 Property Held for Future Use 2 Barton Creek: Residential Sections K, L, and O SF 154 - - 100% -
Slide 23: Footnotes
Footnotes SF=Single-Family MF=Multi-Family O=Office R=Retail MU=Mixed Use 23 (A) Carrying values and occupancy percentages as of December 31, 2014 (B) All appraisals dated 11/20/14 except those for the Lantana properties, dated 10/6/14, the Oaks at Lakeway, dated 9/9/14, and Barton Creek: Tecoma Pha
Slide 24: Debt Detail
Debt Detail 24 Loan Name Current Loan Balance 2015 2016 2017 2018 2019 Thereafter Maturity Effective Int. Rate Fixed / Variable Unsecured Term Loans DRAIF-1 3,000$ 3,000$ -$ -$ -$ -$ -$ 12/31/2015 7.25% F DRAIF-2 3,500 3,500 - - - - - 12/31/2015 7.25% F DRAIF-3 8,000 - 8,000 - - - - 12/31/2016 7.25%
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet 25 12/31/2014 ($000s) ASSETS Cash and cash equivalents 29,645$ Restricted cash 7,615 Real estate held for sale 12,245 Real estate under development 123,921 Land available for development 21,368 Real estate held for investment, net 178,065 Investment in unconsolidated affil
Slide 26: Consolidated Statement of Income FY 2014
Consolidated Statement of Income 26 FY 2014 ($000s, except per share amounts) Revenues: Real estate operations 26,084$ Hotel 42,354 Entertainment 19,048 Commercial leasing 6,625 Total revenues 94,111 Cost of sales: Real estate operations 20,650 Hotel 30,746 Entertainment 14,431 Commercial leasing 3,
Slide 27: Net Operating Income Reconciliation
Net Operating Income Reconciliation 27 (1) Note: For further detail of assets and their valuation, please see reference slides beginning on page 22. See “Information Regarding This Presentation and Non-GAAP Measures” on page 2. Reconciliation: Projected 2015 net operating income for stabilized prope
Slide 28: Barton Creek
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Slide 29: Amarra Drive - Barton Creek
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Slide 30: Barton Creek Village
STRATU S® fy BARTON CREEK VILLAGE Sute Tenant Rentable sF 110 Optometrist 1750 320 NallSalon 1279 330 Dentist 2aar 340 Westbank Drycleaners 1.108, 350 Market 3erl Tota Retail 30288, ity 210 FMServices 6519 230 First Advisors 3751 Total ornce wns Treaty Oak Bank 3.085 s00%leased PHASE Il LAND 16,000
Slide 31: Circle C Ranch
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Slide 32: Circle C Ranch - 5700 Slaughter (Tract 106)
Q4 2014 CIRCLE C RANCH - 5700 SLAUGHTER (TRACT 106) BUILDING 1 BUILDING 3 ‘Chase Bank 4450 Suite Tenant Leasea 300 orthodontist, 3.108 o~- BUILDING 2 320 Edward Jones 1000 Suite Tenant Leased SF 330 ames 1920 100 Dentist 2468 350 _Kid Spa — 220° Kumon 1496 Total Bldg 3: 10,023 230 Class Act Cleaners
Slide 33: Circle C Ranch
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Slide 34: Circle C Ranch - Parkside Village
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Slide 35: Crestview Station
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Slide 36: Lantana
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