Stratus Properties Inc. Announces Agreement to Sell Block 21 for $260 Million to Ryman Hospitality Properties, Inc.

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Austin, Texas – (BUSINESS WIRE) – Stratus Properties Inc. (NASDAQ: STRS) (“Stratus” or the “Company”) announced today that it has agreed to build Block 21, a mixed-use entertainment, lodging, office and retail complex in downtown Austin, for sale. Texas to Ryman Hospitality Properties, Inc. (“Ryman”) for $ 260 million.

Stratus previously announced an agreement to sell Block 21 to Ryman for $ 275 million in December 2019, which Ryman canceled in May 2020 due to the intervening COVID-19 pandemic. As a result of the termination, Ryman forfeited $ 15 million in serious cash to Stratus.

Block 21 is Stratus’ wholly owned mixed-use real estate development and entertainment business that includes the 251-room W Austin Hotel and the Austin City Limits Live at the Moody Theater, a 2,750-seat entertainment center that was used as the location for the filming of Austin. serves City Limits, the longest-running music series in American television history. Block 21 also includes class A office space, retail space and the 3TEN ACL Live entertainment and business space with a capacity of approximately 350 people. Stratus completed the development of Block 21 in 2010.

William H. Armstrong III, Stratus Chairman and Chief Executive Officer, said, “I am proud of the Stratus team for continuing to successfully position this iconic property from early development plans to permits, construction, leasing and management. I am also grateful for the continued support from the community, our partners and our patrons, especially during the pandemic. We were very happy to reach an agreement with Ryman in 2019 and this year as well. We remain confident that their entertainment and hospitality property experience will make Ryman the right partner for Austin and Block 21. ”

Mr. Armstrong continued, “The Block 21 team’s knowledge of the Austin market has brought significant value to shareholders over the years and this transaction is no exception. This sale will give Stratus significant financial flexibility to generate additional shareholder returns. The Board of Directors will carefully consider several compelling ways to use the proceeds, including reinvesting in our robust project pipeline, further deleveraging and returning cash to shareholders. I am confident that Block 21 will continue to be successful as an Austin icon in the Ryman portfolio. ”

Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “We look forward to building on the remarkable legacy of Block 21 and joining this incredible community of employees, customers, tenants and guests. We have a track record of investing in our entertainment, hospitality and media resource portfolio and we are excited to be part of the high growth Austin market. ”

The transaction is expected to close towards the end of the year, subject to the timely fulfillment or waiver of various closing conditions, including the consent of the credit service provider to the acquisition of the existing mortgage loan by the buyer, the consent of the hotel operator, a subsidiary of Marriott, the acceptance of the hotel operating agreement by the buyer , lack of material impairment, and other customary closing conditions.

Block 21 of the sales contract ends if not all of the closing conditions are met or if the parties do not do so. Ryman will deposit $ 5 million in cash to back up performance under the sales agreements.

Material highlights of the agreement will be included on a Form 8-K filed with the Securities and Exchange Commission today.

About Stratus Properties Inc.

Stratus is a diversified real estate company primarily engaged in the acquisition, authorization, development, management and sale of commercial, multi-family and single-family homes, real estate leasing and hotel and entertainment operations in the Austin, Texas area and other select, fast growing markets in Texas.

Forward-Looking Statements

This press release contains forward-looking statements in which Stratus discusses factors that Stratus believes could affect future performance. Forward-looking statements are all statements that are not historical facts, including statements about whether and when the sale of Block 21 will complete. The words “anticipate”, “can”, “can”, “could”, “plan”, “believe”, “potentially”, “possible”, “estimate”, “expect”, “project”, “aim” ” Intended, “likely”, “will”, “should”, “be” and similar expressions identify these statements as forward-looking statements. Stratus advises readers that forward-looking statements are not guarantees of future performance and that actual results could differ materially from those anticipated, expected, or anticipated in the forward-looking statements. Important factors that could cause Stratus actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, events, changes, or other circumstances that could delay or terminate the sale of Unit 21 of the agreements to sell Block 21 result in Stratus’ ability to continue to effectively develop and execute its strategies, including its ability to develop, finance, build and sell real estate on schedule and at prices specified by the Board of Directors believes to be acceptable, changes in real estate demand in selected Texas markets in which Stratus operates, changes in economic, market and business conditions, the results of the assessment by Stratus’ board of directors regarding a possible conversion of Stratus into a REIT, which are uncertain and persistent rejection Corrections to the COVID-19 pandemic and other factors detailed under the heading “Risk Factors” in the Stratus Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC.

Investors are cautioned that many of the assumptions on which Stratus forward-looking statements are based are likely to change after the date of the forward-looking statements. In addition, Stratus may make changes to its business plans that could affect its results. Stratus cautions investors that it undertakes no obligation to update any forward-looking statements, which speak only as of the date of publication, regardless of changes in its assumptions, business plans, actual experience or other changes.

A copy of this press release is available on the Stratus website stratusproperties.com.

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