Stratus Properties Launches Strategic Alternatives Review To Maximize Shareholder Value; Agrees To Sell Kingwood Place For $60.8M

STRATUS PROPERTIES INC. ANNOUNCES REVIEW OF STRATEGIC ALTERNATIVES TO MAXIMIZE SHAREHOLDER VALUE

 

Company Announces Agreement to Sell Kingwood Place

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AUSTIN, TX, December 22, 2025 – Stratus Properties Inc. (NASDAQ:STRS) ("Stratus") today announced that its Board of Directors (the "Board") has initiated a process to explore strategic alternatives to maximize shareholder value with the assistance of outside, independent financial and legal advisors. The Board intends to consider a comprehensive range of alternatives, including but not limited to the sale of Stratus, a plan of dissolution and liquidation, further share repurchases and other strategic or financial transactions.

 

Stratus also announced that it has entered into an agreement to sell Kingwood Place for $60.8 million. Kingwood Place is Stratus' H-E-B-anchored, mixed-use development project in Kingwood, Texas (in the greater Houston area). If the sale is completed, it is expected to generate estimated pre-tax net cash proceeds of approximately $26 million, after selling costs and payment of the project loan. This represents a premium to Stratus' pre-tax net asset value of Kingwood Place, as reflected in Stratus' Investor Presentation dated March 28, 2025. Stratus owns approximately 60% of Kingwood Place through a limited partnership with equity investors. The sale, if completed, is expected to close in first-quarter 2026, following expiration of the inspection period during which the buyer may terminate the contract and subject to satisfaction of closing conditions. This transaction would follow the recently completed sales of two of Stratus' other stabilized retail projects, Lantana Place – Retail and West Killeen Market.