Oasis Management Co Ltd., along with Oasis Investments II Master Fund Ltd. and Seth Fischer, reported a recent sale of shares in Stratus Properties Inc. (NASDAQ:STRS). The transaction, dated November 7, involved the sale of 1,911 shares at a price of $27.00 each, amounting to a total value of $51,597. Following this transaction, the reporting entities collectively own 1,141,299 shares indirectly. The shares are held by Oasis Investments II Master Fund Ltd., with Oasis Management serving as the investment manager. Seth Fischer oversees all investment activities related to these assets.
In other recent news, Stratus Properties Inc. has successfully secured an extension and increase to its existing loan agreement with Texas Capital Bank. This significant move, which pertains to the luxury multi-family project, The Saint June, was revealed in a recent SEC filing. The amended agreement not only extends the loan's maturity to October 2025 but also boosts the loan commitment by $2 million, totaling $32.3 million. Additionally, the interest rate margin has been lowered from 2.85% to 2.35%.
The Saint June project, a 182-unit luxury garden-style apartment complex within the Amarra development in Austin, Texas, completed construction in the fourth quarter of 2023. The additional loan proceeds are set to be used for operating reserves and partial repayment of operating loans from Stratus and the Class B limited partner. The loan terms include a monthly payment of roughly $40,000 on principal and interest, with the full principal due at the loan's maturity.
These recent developments reflect Stratus Properties' continued dedication to its development projects and its financial flexibility in managing its capital structure.
InvestingPro Insights
The recent sale by Oasis Management Co Ltd. comes at an interesting time for Stratus Properties Inc. (NASDAQ:STRS). According to InvestingPro data, the company has seen a significant return over the last week, with a 20.35% price total return. This short-term surge aligns with the stock's general tendency for high price volatility, as noted in one of the InvestingPro Tips.
Despite the recent positive price movement, Stratus Properties faces some financial challenges. The company is not profitable over the last twelve months, with a negative operating income of $5.24 million. This aligns with another InvestingPro Tip indicating that the company is quickly burning through cash.
On a more positive note, Stratus Properties has shown strong revenue growth. The company's revenue for the last twelve months as of Q2 2023 stood at $42.94 million, with a remarkable quarterly revenue growth of 140.51% in Q2 2023. This growth trajectory could be a factor in the stock's recent performance and might explain why the company maintains a market capitalization of $208.31 million despite its profitability challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 9 more tips available for Stratus Properties. These tips could provide valuable context for understanding the company's financial health and future prospects in light of recent insider transactions.
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