Stratus Properties has approved the initiation of an in-depth exploration of a conversion from a C-Corporation to a REIT.
At this time, the company believes the REIT conversion would likely require consent from the company’s major lenders and amendments to its major loan agreements, among other third-party consents. Stratus also expects to seek shareholder approval to implement provisions in its organizational documents consistent with a public REIT structure, if the board of directors ultimately determines that a REIT conversion is in shareholders’ best interests.
Stratus’ current view is that if the board determines to move forward with a conversion to a REIT, and the required consents and approvals are obtained, the conversion would likely occur in 2022.
