STRATUS PROPERTIES INC 8-K

What Happened
Stratus Properties Inc. (through its 50%-owned subsidiary Holden Hills, L.P.) announced on June 8, 2026 that it entered into a Third Modification Agreement, an Amended and Restated Installment Note and a Second Installment Note with Fifth Third Bank, N.A. (successor to Comerica) to amend the February 8, 2023 loan agreement. The amendments extend the loan maturity to August 8, 2027, increase the principal commitment by about $9.9 million (to a new aggregate commitment capped at the lesser of ~$36.0 million, 29% of total development costs, or a 30.0% loan-to-value), and set the interest rate at one‑month Term SOFR (floor 0.50%) plus 3.00%, subject to a 3.50% overall floor. The loan is a senior secured construction loan for the Holden Hills Phase 1 project; interest-only payments are due monthly and principal is due at maturity.

Key Details

• Effective date of amendments: June 8, 2026; loan maturity extended to August 8, 2027.
• Commitment increase: ~ $9.9 million; new aggregate cap ~ $36.0 million (or 29% of development costs / max 30% LTV).
• Interest terms: 1‑month Term SOFR (0.50% floor) + 3.00%, subject to a 3.50% floor; monthly interest-only payments.
• Balance and availability (as of June 10, 2026): outstanding principal ≈ $12.6 million; ≈ $12.8 million available for advances. Repayments may not be reborrowed.

Why It Matters
The amendments provide additional, secured construction financing and extend the funding runway for the Holden Hills Phase 1 development, which could support continued construction and project completion. Stratus remains the guarantor, so the facility affects the company’s contingent obligations and project-level leverage (LTV capped at 30%). Investors should note the increased committed liquidity for the project, the interest-cost framework tied to SOFR with minimum rates, and the August 2027 maturity when evaluating near-term financing risk and capital needs.