STRATUS PROPERTIES INC 8-K

What Happened
Stratus Properties Inc. announced it completed the sale of the Kingwood Place retail project on January 30, 2026 for $60.8 million in cash. Stratus owns approximately 60% of the project through a partnership; pre-tax net cash proceeds to the partnership were about $27.1 million after selling costs and repayment of the project loan. Stratus received a cash distribution of roughly $16.2 million from the partnership, with $10.6 million distributed to noncontrolling interest owners. On the same date, Stratus and certain subsidiaries amended their revolving credit agreement with Comerica Bank (the Tenth Modification) to extend the loan maturity to March 27, 2028.

Key Details

• Sale date and price: Kingwood Place sold January 30, 2026 for $60.8 million cash.
• Net proceeds & distributions: Pre-tax net cash proceeds to the partnership ≈ $27.1 million; Stratus cash distribution ≈ $16.2 million; $10.6 million went to noncontrolling partners.
• Credit facility update: Comerica Bank facility maturity extended to March 27, 2028; borrowing base limit was $27.4 million and $17.4 million was available as of January 30, 2026 (after $10.0 million in letters of credit).
• Supplemental filings: Stratus provided unaudited pro forma financial statements reflecting the Kingwood and prior Lantana Place – Retail dispositions, and issued a press release on Feb 5, 2026.

Why It Matters
The Kingwood sale generated meaningful cash proceeds and a direct cash distribution to Stratus, improving near-term liquidity and reducing exposure to that single retail project. Extending the Comerica revolving credit maturity to March 2028 preserves access to a secured revolving facility (with a $27.4M borrowing base) that supports operations and potential investments. Investors should note these liquidity and balance-sheet changes are reflected in the company’s pro forma financial information included with the filing.