John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Stratus Properties Is Undervalued With A Significant Near-Term Catalyst

Stratus Properties (NASDAQ:STRS) is a low-risk way to benefit from the booming Texas real estate market given its undervalued real estate assets, high free cash flow and significant debt reduction. The sale of the W Hotel & Residences and Austin City Limits Studio Theatre should act as a catalyst for significant price appreciation.

Company overview

STRS is a diversified real estate company focused in Austin, Texas with four operating segments:

Real estate segment includes properties in the Barton Creek and Circle C communities, Lantana as well as condominium units at the W Austin Hotel & Residences. STRS owns 112 residential lots and 2,356 potential lots.

Hotel segment includes the W Austin Hotel.

Entertainment segment includes Austin City Limits...

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