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| UNITED STATES                                          |
|--------------------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                     |
| Washington, D.C. 20549                                 |
|                                                   |
| FORM 10-Q                                              |
|                                                   |
| (Mark One)                                             |
| [X]                                                    | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
| SECURITIES EXCHANGE ACT OF 1934                        |
| For the quarterly period ended March 31, 2011          |
| or                                                     |
| [  ]                                         | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
| SECURITIES EXCHANGE ACT OF 1934                        |
| For the transition period from                         |   | to |
| Commission File Number: 0-19989                        |
|                                                   |
|                                                        |
|                                                   |
| Stratus Properties Inc.                                |
| (Exact name of registrant as specified in its charter) |

| Delaware                                                      | 72-1211572                           |
|---------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                          |                                 |
| 212 Lavaca St., Suite 300                                     |                                 |
| Austin, Texas                                                 | 78701                                |
| (Address of principal executive offices)                      | (Zip Code)                           |
|                                                          |
|                                                          |
| (512) 478-5788                                                |
| (Registrant's telephone number, including area code)          |
|                                                          |

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| STRATUS PROPERTIES INC.                                                   |   |
|---------------------------------------------------------------------------|--------|
| TABLE OF CONTENTS                                                         |   |
|                                                                      |   |
|                                                                      |   |
|                                                                      | Page   |
| Part I. Financial Information                                             | 2      |
|                                                                      |   |
| Item 1. Financial Statements                                              |   |
|                                                                      |   |
| Consolidated Balance Sheets (Unaudited)                                   | 2      |
|                                                                      |   |
| Consolidated Statements of Operations (Unaudited)                         | 3      |
|                                                                      |   |
| Consolidated Statements of Cash Flows (Unaudited)                         | 4      |
|                                                                      |   |
| Consolidated Statements of Equity (Unaudited)                             | 5      |
|                                                                      |   |
| Notes to Consolidated Financial Statements (Unaudited)                    | 6      |
|                                                                      |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition |   |
| and Results of Operations                                                 | 9      |
|                                                                      |   |
| Item 4. Controls and Procedures                                           | 19     |
|                                                                      |   |
| Part II. Other Information                                                | 19     |
|                                                                      |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds       | 19     |
|                                                                      |   |
| Item 6. Exhibits                                                          | 19     |
|                                                                      |   |
| Signature                                                                 | 20     |
|                                                                      |   |
| Exhibit Index                                                             | E-1    |
|                                                                      |   |

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P

I

S

|                                           | March 31, |    | December 31, |   |
|------------------------------------------------|-----------|---------|--------------|--------|
|                                           | 2011      |    | 2010         |   |
| ASSETS                                         |      |    |         |   |   |   |
| Cash and cash equivalents                      | $         | 10,839  |         | $      | 11,730 |   |
| Real estate held for sale                      |      | 27,197  |         |   | 27,312 |   |
| Real estate under development                  |      | 142,253 |         |   | 189,057 |   |
| Land held for future development               |      | 57,868  |         |   | 57,822 |   |
| Real estate held for investment                |      | 189,964 |         |   | 143,049 |   |
| Investment in unconsolidated affiliate         |      | 3,008   |         |   | 3,084 |   |
| Deferred tax assets, net                       |      | 170     |         |   | 170 |   |
| Other assets                                   |      | 20,543  |         |   | 22,962 |   |
| Total assets                                   | $         | 451,842 |         | $      | 455,186 |   |
|                                           |      |    |         |   |   |   |
| LIABILITIES AND EQUITY                         |      |    |         |   |   |   |
| Accounts payable and accrued liabilities       | $         | 22,826  |         | $      | 20,149 |   |
| Accrued interest and property taxes            |      | 8,242   |         |   | 7,828 |   |
| Deposits                                       |      | 5,736   |         |   | 9,296 |   |
| Debt                                           |      | 193,345 |         |   | 201,523 |   |
| Other liabilities                              |      | 3,863   |         |   | 3,590 |   |
| Total liabilities                              |      | 234,012 |         |   | 242,386 |   |
|                                           |      |    |         |   |   |   |
| Commitments and contingencies                  |      |    |         |   |   |   |
|                                           |      |    |         |   |   |   |
| Equity:                                        |      |    |         |   |   |   |
| Stratus stockholders’ equity:            |      |    |         |   |   |   |
| Preferred stock                                |      | -       |         |   | - |   |
| Common stock                                   |      | 84      |         |   | 84 |   |
| Capital in excess of par value of common stock |      | 197,862 |         |   | 197,773 |   |
| Accumulated deficit                            |      | (52,216 | )            |   | (51,335 | ) |
| Common stock held in treasury                  |      | (18,010 | )            |   | (17,972 | ) |
| Total Stratus stockholders’ equity       |      | 127,720 |         |   | 128,550 |   |
| Noncontrolling interest in subsidiaries        |      | 90,110  |         |   | 84,250 |   |
| Total equity                                   |      | 217,830 |         |   | 212,800 |   |
| Total liabilities and equity                   | $         | 451,842 |         | $      | 455,186 |   |
|                                           |      |    |         |   |   |   |

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|                                                                                  | Three Months Ended |   |
|---------------------------------------------------------------------------------------|--------------------|--------|
|                                                                                  | March 31,          |   |
|                                                                                  | 2011               |   | 2010 |   |
| Revenues:                                                                             |               |   |   |   |   |   |
| Real estate                                                                           | $                  | 31,442 |   | $ | 874 |   |
| Hotel                                                                                 |               | 7,271  |   |   | - |   |
| Rental                                                                                |               | 1,400  |   |   | 1,297 |   |
| Entertainment venue                                                                   |               | 1,357  |   |   | - |   |
| Commissions, management fees and other                                                |               | 133    |   |   | 129 |   |
| Total revenues                                                                        |               | 41,603 |   |   | 2,300 |   |
| Cost of sales:                                                                        |               |   |   |   |   |   |
| Real estate                                                                           |               | 25,431 |   |   | 2,106 |   |
| Hotel                                                                                 |               | 6,249  |   |   | - |   |
| Rental                                                                                |               | 729    |   |   | 745 |   |
| Entertainment venue                                                                   |               | 1,540  |   |   | - |   |
| Depreciation                                                                          |               | 1,815  |   |   | 420 |   |
| Total cost of sales                                                                   |               | 35,764 |   |   | 3,271 |   |
| General and administrative expenses                                                   |               | 1,967  |   |   | 1,832 |   |
| Total costs and expenses                                                              |               | 37,731 |   |   | 5,103 |   |
| Operating income (loss)                                                               |               | 3,872  |   |   | (2,803 | ) |
| Interest expense, net                                                                 |               | (834   | ) |   | - |   |
| Other income, net                                                                     |               | 269    |   |   | 218 |   |
| Income (loss) before income taxes and equity in unconsolidated affiliate’s loss |               | 3,307  |   |   | (2,585 | ) |
| Equity in unconsolidated affiliate’s loss                                       |               | (76    | ) |   | (76 | ) |
| (Provision for) benefit from income taxes                                             |               | (176   | ) |   | 881 |   |
| Net income (loss)                                                                     |               | 3,055  |   |   | (1,780 | ) |
| Net (income) loss attributable to noncontrolling interest in subsidiaries             |               | (3,936 | ) |   | 71 |   |
| Net loss attributable to Stratus common stock                                         | $                  | (881   | ) | $ | (1,709 | ) |
|                                                                                  |               |   |   |   |   |   |
| Net loss per share attributable to Stratus common stock:                              |               |   |   |   |   |   |
| Basic and diluted                                                                     | $                  | (0.12  | ) | $ | (0.23 | ) |
|                                                                                  |               |   |   |   |   |   |
| Weighted average shares of common stock outstanding:                                  |               |   |   |   |   |   |
| Basic and diluted                                                                     |               | 7,484  |   |   | 7,456 |   |
|                                                                                  |               |   |   |   |   |   |

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|                                                                   | Three Months EndedMarch 31, |    |
|------------------------------------------------------------------------|-----------------------------|---------|
|                                                                   | 2011                        |    | 2010 |   |
| Cash flow from operating activities:                                   |                        |    |   |   |   |
| Net income (loss)                                                      | $                           | 3,055   |   | $ | (1,780 | ) |
| Adjustments to reconcile net income (loss) to net cash                 |                        |    |   |   |   |   |
| provided by (used in) operating activities:                            |                        |    |   |   |   |   |
| Depreciation                                                           |                        | 1,815   |   |   | 420 |   |
| Cost of real estate sold                                               |                        | 21,043  |   |   | 563 |   |
| Deferred income taxes                                                  |                        | -       |   |   | (898 | ) |
| Stock-based compensation                                               |                        | 108     |   |   | 146 |   |
| Equity in unconsolidated affiliate’s loss                        |                        | 76      |   |   | 76 |   |
| Deposits                                                               |                        | (157    | ) |   | (2,133 | ) |
| Purchases and development of real estate properties                    |                        | (12,524 | ) |   | (10,394 | ) |
| Decrease (increase) in other assets                                    |                        | (1,397  | ) |   | 902 |   |
| Increase (decrease) in accounts payable, accrued liabilities and other |                        | 3,511   |   |   | (2,788 | ) |
| Net cash provided by (used in) operating activities                    |                        | 15,530  |   |   | (15,886 | ) |
|                                                                   |                        |    |   |   |   |   |
| Cash flow from investing activities:                                   |                        |    |   |   |   |   |
| Development of commercial leasing properties                           |                        | (1,411  | ) |   | (1,131 | ) |
| Development of hotel                                                   |                        | (4,256  | ) |   | (6,489 | ) |
| Development of entertainment venue                                     |                        | (4,443  | ) |   | (2,685 | ) |
| Net cash used in investing activities                                  |                        | (10,110 | ) |   | (10,305 | ) |
|                                                                   |                        |    |   |   |   |   |
| Cash flow from financing activities:                                   |                        |    |   |   |   |   |
| Borrowings from credit facility                                        |                        | 10,000  |   |   | 5,012 |   |
| Payments on credit facility                                            |                        | (134    | ) |   | (781 | ) |
| Borrowings from project and term loans                                 |                        | 11,256  |   |   | 4,500 |   |
| Payments on project and term loans                                     |                        | (29,300 | ) |   | (2,099 | ) |
| Noncontrolling interest contributions                                  |                        | 1,924   |   |   | 10,308 |   |
| Net payments for stock-based awards                                    |                        | (57     | ) |   | (76 | ) |
| Financing costs                                                        |                        | -       |   |   | (163 | ) |
| Net cash (used in) provided by financing activities                    |                        | (6,311  | ) |   | 16,701 |   |
| Net decrease in cash and cash equivalents                              |                        | (891    | ) |   | (9,490 | ) |
| Cash and cash equivalents at beginning of year                         |                        | 11,730  |   |   | 15,398 |   |
| Cash and cash equivalents at end of period                             | $                           | 10,839  |   | $ | 5,908 |   |
|                                                                   |                        |    |   |   |   |   |

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|                                    | Stratus Stockholders’ Equity |   |       |   |      |   |
|-----------------------------------------|------------------------------------|--------|------------|--------|-----------|--------|
|                                    |                               |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
|                                    |                               |   |       |   |      |   |   |   | Common Stock |   | Total |   |   |   |   |   |
|                                    | Common Stock                       |   | Capital in |   | Accum-    |   | Held in Treasury |   | Stratus |   | Noncontrolling |   |   |   |
|                                    | Number                             |   | At Par     |   | Excess of |   | ulated |   | Number |   | At |   | Stockholders’ |   | Interest in |   | Total |   |
|                                    | of Shares                          |   | Value      |   | Par Value |   | Deficit |   | of Shares |   | Cost |   | Equity |   | Subsidiaries |   | Equity |   |
|                                    |                               |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010            |                               | 8,354  |       | $      | 84        |   | $ | 197,773 |   | $ | (51,335 | ) | 879 |   | $ | (17,972 | ) | $ | 128,550 |   | $ | 84,250 |   | $ | 212,800 |   |
| Exercised and issued stock-based awards |                               |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and other                               |                               | 26     |       |   | -         |   |   | (19 | ) |   | - |   | - |   |   | - |   |   | (19 | ) |   | - |   |   | (19 | ) |
| Stock-based compensation                |                               | -      |       |   | -         |   |   | 108 |   |   | - |   | - |   |   | - |   |   | 108 |   |   | - |   |   | 108 |   |
| Tender of shares for stock-based awards |                               | -      |       |   | -         |   |   | - |   |   | - |   | 7 |   |   | (38 | ) |   | (38 | ) |   | - |   |   | (38 | ) |
| Noncontrolling interest contributions   |                               | -      |       |   | -         |   |   | - |   |   | - |   | - |   |   | - |   |   | - |   |   | 1,924 |   |   | 1,924 |   |
| Comprehensive income (loss):            |                               |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                       |                               | -      |       |   | -         |   |   | - |   |   | (881 | ) | - |   |   | - |   |   | (881 | ) |   | 3,936 |   |   | 3,055 |   |
| Other comprehensive income              |                               | -      |       |   | -         |   |   | - |   |   | - |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Total comprehensive income (loss)       |                               | -      |       |   | -         |   |   | - |   |   | (881 | ) | - |   |   | - |   |   | (881 | ) |   | 3,936 |   |   | 3,055 |   |
| Balance at March 31, 2011               |                               | 8,380  |       | $      | 84        |   | $ | 197,862 |   | $ | (52,216 | ) | 886 |   | $ | (18,010 | ) | $ | 127,720 |   | $ | 90,110 |   | $ | 217,830 |   |
|                                    |                               |   |       |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Balance at December 31, 2009            |   | 8,315  |   | $      | 83     |   | $      | 197,333 |   | $      | (35,999 | )      | 873    |   | $      | (17,941 | )      | $      | 143,476 |   | $      | 74,437 |   | $      | 217,913 |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
| Exercised and issued stock-based awards |   |   |   |   |   |   |   |    |   |   |    |   |   |   |   |    |   |   |    |   |   |   |   |   |    |   |
| and other                               |   | 25     |   |   | -      |   |   | (202    | )      |   | -       |   | -      |   |   | -       |   |   | (202    | )      |   | -      |   |   | (202    | )      |
| Stock-based compensation                |   | -      |   |   | -      |   |   | 146     |   |   | -       |   | -      |   |   | -       |   |   | 146     |   |   | -      |   |   | 146     |   |
| Tender of shares for stock-based awards |   | -      |   |   | -      |   |   | -       |   |   | -       |   | 4      |   |   | (31     | )      |   | (31     | )      |   | -      |   |   | (31     | )      |
| Noncontrolling interest contributions   |   | -      |   |   | -      |   |   | -       |   |   | -       |   | -      |   |   | -       |   |   | -       |   |   | 10,308 |   |   | 10,308  |   |
| Comprehensive loss:                     |   |   |   |   |   |   |   |    |   |   |    |   |   |   |   |    |   |   |    |   |   |   |   |   |    |   |
| Net loss                                |   | -      |   |   | -      |   |   | -       |   |   | (1,709  | )      | -      |   |   | -       |   |   | (1,709  | )      |   | (71    | )      |   | (1,780  | )      |
| Other comprehensive income              |   | -      |   |   | -      |   |   | -       |   |   | -       |   | -      |   |   | -       |   |   | -       |   |   | -      |   |   | -       |   |
| Total comprehensive loss                |   | -      |   |   | -      |   |   | -       |   |   | (1,709  | )      | -      |   |   | -       |   |   | (1,709  | )      |   | (71    | )      |   | (1,780  | )      |
| Balance at March 31, 2010               |   | 8,340  |   | $      | 83     |   | $      | 197,277 |   | $      | (37,708 | )      | 877    |   | $      | (17,972 | )      | $      | 141,680 |   | $      | 84,674 |   | $      | 226,354 |   |
|                                    |   |   |   |   |   |   |   |    |   |   |    |   |   |   |   |    |   |   |    |   |   |   |   |   |    |   |

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| 1.   | GENERAL |
|----------------|---------|

| 2.   | EARNINGS PER SHARE |
|----------------|--------------------|

| 3.   | JOINT VENTURE WITH CANYON-JOHNSON URBAN FUND II, L.P. |
|----------------|-------------------------------------------------------|

| 4.   | JOINT VENTURE WITH MOFFETT HOLDINGS, LLC |
|----------------|------------------------------------------|

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| 5.   | FAIR VALUE MEASUREMENTS |
|----------------|-------------------------|

|                              | March 31, 2011 |    |   | December 31, 2010 |    |
|-----------------------------------|----------------|---------|--------|-------------------|---------|
|                              | Carrying       |    | Fair   |              |    | Carrying |   |   | Fair |   |
|                              | Value          |    | Value  |              |    | Value |   |   | Value |   |
|                              |           |    |   |              |    |   |   |   |   |   |   |   |
| Cash and cash equivalentsa        | $              | 10,839  |   | $                 | 10,839  |   | $ | 11,730 |   | $ | 11,730 |   |
| Accounts and notes receivablea    |           | 2,506   |   |              | 2,506   |   |   | 841 |   |   | 841 |   |
| Accounts payable, accrued         |           |    |   |              |    |   |   |   |   |   |   |   |
| liabilities, accrued interest and |           |    |   |              |    |   |   |   |   |   |   |   |
| property taxesa                   |           | 31,068  |   |              | 31,068  |   |   | 27,977 |   |   | 27,977 |   |
| Debtb                             |           | 193,345 |   |              | 193,049 |   |   | 201,523 |   |   | 201,136 |   |
|                              |           |    |   |              |    |   |   |   |   |   |   |   |

| a.   | Fair value approximates the carrying amounts because of the short-term nature of these instruments. |
|----------------|-----------------------------------------------------------------------------------------------------|

| b.   | Generally recorded at cost. Fair value of substantially all of Stratus’ debt is estimated based on discounted future expected cash flows at estimated current interest rates. The fair value of debt does not represent the amounts that will ultimately be paid upon the maturities of the loans. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | INTEREST CAPITALIZATION |
|----------------|-------------------------|

| 7.   | INCOME TAXES |
|----------------|--------------|

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| 8.   | BUSINESS SEGMENTS |
|----------------|-------------------|

|                                  | Real Estate |    | Commercial |   |   |   | Entertainment |    |   |   |   |   |
|---------------------------------------|-------------|---------|------------|--------|--------|--------|---------------|---------|--------|--------|--------|--------|
|                                  | Operationsa |    | Leasing    |   | Hotel  |   | Venue         |    | Other  |   | Total  |   |
| Three Months Ended March 31, 2011:    |        |    |       |   |   |   |          |    |   |   |   |   |   |   |   |   |   |   |
| Revenues                              | $           | 31,575  |       | $      | 1,400  |   | $             | 7,271   |   | $      | 1,357  |   | $ | - |   | $ | 41,603 |   |
| Cost of sales, excluding depreciation |        | 25,431  |       |   | 729    |   |          | 6,249   |   |   | 1,540  |   |   | - |   |   | 33,949 |   |
| Depreciation                          |        | 44      |       |   | 340    |   |          | 1,255   |   |   | 176    |   |   | - |   |   | 1,815 |   |
| General and administrative expenses   |        | 1,103   |       |   | 864    |   |          | -       |   |   | -      |   |   | - |   |   | 1,967 |   |
| Operating income (loss)               | $           | 4,997   |       | $      | (533   | )      | $             | (233    | )      | $      | (359   | )      | $ | - |   | $ | 3,872 |   |
| Capital expenditures                  | $           | 12,524  |       | $      | 1,411  |   | $             | 4,256   |   | $      | 4,443  |   | $ | - |   | $ | 22,634 |   |
| Total assets at March 31, 2011        | $           | 237,077 |       | $      | 49,721 |   | $             | 122,521 |   | $      | 42,353 |   | $ | 170 | b | $ | 451,842 |   |

| Three Months Ended March 31, 2010:    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
|---------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Revenues                              | $      | 1,003   |   | $      | 1,297  |   | $      | -      |   | $      | -      |   | $      | -      |   | $      | 2,300   |   |
| Cost of sales, excluding depreciation |   | 2,106   |   |   | 745    |   |   | -      |   |   | -      |   |   | -      |   |   | 2,851   |   |
| Depreciation                          |   | 55      |   |   | 365    |   |   | -      |   |   | -      |   |   | -      |   |   | 420     |   |
| General and administrative expenses   |   | 1,040   |   |   | 792    |   |   | -      |   |   | -      |   |   | -      |   |   | 1,832   |   |
| Operating loss                        | $      | (2,198  | )      | $      | (605   | )      | $      | -      |   | $      | -      |   | $      | -      |   | $      | (2,803  | )      |
| Capital expenditures                  | $      | 10,394  |   | $      | 1,131  |   | $      | 6,489  |   | $      | 2,685  |   | $      | -      |   | $      | 20,699  |   |
| Total assets at March 31, 2010        | $      | 209,701 |   | $      | 43,258 |   | $      | 62,008 |   | $      | 25,659 |   | $      | 9,038  | b      | $      | 349,664 |   |

| a.   | Includes sales commissions, management fees and other revenues together with related expenses. |
|----------------|------------------------------------------------------------------------------------------------|

| b.   | Primarily includes deferred tax assets, net of valuation allowances. |
|----------------|----------------------------------------------------------------------|

| 9.   | SUBSEQUENT EVENTS |
|----------------|-------------------|

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I

|             |      |   | Acreage                        |   |        |
|------------------|-----------|--------|--------------------------------|--------|-------------|
|             |      |   | Developed or Under Development |   | Undeveloped |   |   |
|             | Developed |   | Single                         |   | Multi-      |   |   |   |   |   | Single |   |   |   |   |   | Total |
|             | Lots      |   | Family                         |   | Family      |   | Commercial |   | Total |   | Family |   | Commercial |   | Total |   | Acreage |
| Austin           |      |   |                           |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Barton Creek     | 120       |   | -                              |   | 249         |   | 368 |   | 617 |   | 781 |   | 28 |   | 809 |   | 1,426 |
| Lantana          | -         |   | -                              |   | -           |   | - |   | - |   | - |   | 223 |   | 223 |   | 223 |
| Circle C         | 20        |   | -                              |   | -           |   | 23 |   | 23 |   | 132 |   | 363 |   | 495 |   | 518 |
| W Austin Hotel   |      |   |                           |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| & Residences | -         |   | -                              |   | -           |   | 2 | a | 2 |   | - |   | - |   | - |   | 2 |
| San Antonio      |      |   |                           |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Camino Real      | -         |   | -                              |   | -           |   | - |   | - |   | - |   | 2 |   | 2 |   | 2 |
| Total            | 140       |   | -                              |   | 249         |   | 393 |   | 642 |   | 913 |   | 616 |   | 1,529 |   | 2,171 |
|             |      |   |                           |   |        |   |   |   |   |   |   |   |   |   |   |   |   |

| a.   | Represents a city block in downtown Austin developed for a mixture of hotel, residential, retail, office and entertainment uses. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------|

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|                         | Residential Lots |
|------------------------------|------------------|
|                         | Developed        |   | Potential Development a |   | Total |
| Barton Creek:                |             |   |   |   |   |
| Calera:                      |             |   |   |   |   |
| Calera Court Courtyard Homes | 1                |   | - |   | 1 |
| Calera Drive                 | 8                |   | - |   | 8 |
| Verano Drive                 | 67               |   | - |   | 67 |
| Amarra Drive:                |             |   |   |   |   |
| Phase I Lots                 | 7                |   | - |   | 7 |
| Phase II Lots                | 35               |   | - |   | 35 |
| Townhomes                    | -                |   | 221 |   | 221 |
| Phase III                    | -                |   | 89 |   | 89 |
| Mirador Estate               | 2                |   | - |   | 2 |
| Section N Multi-family       | -                |   | 1,860 |   | 1,860 |
| Other Barton Creek Sections  | -                |   | 154 |   | 154 |
|                         |             |   |   |   |   |
| Circle C:                    |             |   |   |   |   |
| Meridian                     | 20               |   | 57 |   | 77 |
| Total Residential Lots       | 140              |   | 2,381 |   | 2,521 |
|                         |             |   |   |   |   |

| a.   | Our development of the properties identified under the heading “Potential Development” is dependent upon the approval of our development plans and permits by governmental agencies, including the City. Those governmental agencies may either not approve one or more development plans and permit applications related to such properties or require us to modify our development plans. Accordingly, our development strategy with respect to those properties may change in the future. While we may be proceeding with approved infrastructure projects on some of these properties, they are not considered to be “under development” for disclosure in this table unless other development activities necessary to fully realize the properties’ intended final use are in progress or scheduled to commence in the near term. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                          | Commercial Property |
|-------------------------------|---------------------|
|                          | Developed           |   | Under Development |   | Potential Development a |   | Total |
| Barton Creek:                 |                |   |   |   |   |   |   |
| Barton Creek Village Phase I  | 25,085              |   | - |   | - |   | 25,085 |
| Barton Creek Village Phase II | -                   |   | - |   | 18,000 |   | 18,000 |
| Entry Corner                  | -                   |   | - |   | 5,000 |   | 5,000 |
| Amarra Retail/Office          | -                   |   | - |   | 90,000 |   | 90,000 |
| Section N                     | -                   |   | - |   | 1,500,000 |   | 1,500,000 |
|                          |                |   |   |   |   |   |   |
| Circle C:                     |                |   |   |   |   |   |   |
| Chase Ground Lease            | 4,000               |   | - |   | - |   | 4,000 |
| 5700 Slaughter                | 21,000              |   | - |   | - |   | 21,000 |
| Parkside Village              | -                   |   | 92,540 |   | - |   | 92,540 |
| Tract 110                     | -                   |   | - |   | 760,000 |   | 760,000 |
| Tract 101                     | -                   |   | - |   | 90,000 |   | 90,000 |
| Tract 102                     | -                   |   | - |   | 25,000 |   | 25,000 |
| Tract 114                     | -                   |   | - |   | 5,000 |   | 5,000 |
|                          |                |   |   |   |   |   |   |
| Lantana:                      |                |   |   |   |   |   |   |
| 7500 Rialto                   | 150,000             |   | - |   | - |   | 150,000 |
| Tract G06                     | -                   |   | - |   | 400,000 |   | 400,000 |
| Tract GR1                     | -                   |   | - |   | 325,000 |   | 325,000 |
| Tract G05                     | -                   |   | - |   | 260,000 |   | 260,000 |
| Tract CS5                     | -                   |   | - |   | 175,000 |   | 175,000 |
| Tract G07                     | -                   |   | - |   | 160,000 |   | 160,000 |
| Tract CS1-CS3                 | -                   |   | - |   | 134,200 |   | 134,200 |
| Tract L03                     | -                   |   | - |   | 99,800 |   | 99,800 |
| Tract L04                     | -                   |   | - |   | 70,000 |   | 70,000 |
| Tract LR1                     | -                   |   | - |   | 62,200 |   | 62,200 |
|                          |                |   |   |   |   |   |   |
| Austin 290 Tract              | -                   |   | - |   | 20,000 |   | 20,000 |
| Total Square Feet             | 200,085             |   | 92,540 |   | 4,199,200 |   | 4,491,825 |
|                          |                |   |   |   |   |   |   |

| a.   | Our development of the properties identified under the heading “Potential Development” is dependent upon the approval of our development plans and permits by governmental agencies, including the City. Those governmental agencies may either not approve one or more development plans and permit applications related to such properties or require us to modify our development plans. Accordingly, our development strategy with respect to those properties may change in the future. While we may be proceeding with approved infrastructure projects on some of these properties, they are not |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | considered to be “under development” for disclosure in this table unless other development activities necessary to fully realize the properties’ intended final use are in progress or scheduled to commence in the near term. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          | First Quarter |   |
|-----------------------------------------------|---------------|--------|
|                                          | 2011          |   | 2010 |   |
| Revenues:                                     |          |   |   |   |
| Real estate                                   | $             | 31,575 |   | $ | 1,003 |   |
| Commercial leasing                            |          | 1,400  |   |   | 1,297 |   |
| Hotel                                         |          | 7,271  |   |   | - |   |
| Entertainment venue                           |          | 1,357  |   |   | - |   |
| Total revenues                                | $             | 41,603 |   | $ | 2,300 |   |
|                                          |          |   |   |   |   |   |
| Operating income (loss)                       | $             | 3,872  |   | $ | (2,803 | ) |
|                                          |          |   |   |   |   |   |
| (Provision for) benefit from income taxes     | $             | (176   | ) | $ | 881 |   |
|                                          |          |   |   |   |   |   |
| Net loss attributable to Stratus common stock | $             | (881   | ) | $ | (1,709 | ) |
|                                          |          |   |   |   |   |   |

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|                                   | First Quarter |    |
|----------------------------------------|---------------|---------|
|                                   | 2011          |    | 2010 |   |
| Revenues:                              |          |    |   |   |
| Developed property sales               | $             | 31,442  |   | $ | 874 |   |
| Commissions, management fees and other |          | 133     |   |   | 129 |   |
| Total revenues                         |          | 31,575  |   |   | 1,003 |   |
|                                   |          |    |   |   |   |   |
| Cost of sales, including depreciation  |          | (25,475 | ) |   | (2,161 | ) |
| General and administrative expenses    |          | (1,103  | ) |   | (1,040 | ) |
|                                   |          |    |   |   |   |   |
| Operating income (loss)                | $             | 4,997   |   | $ | (2,198 | ) |
|                                   |          |    |   |   |   |   |

|                                | First Quarter |   |
|-------------------------------------|---------------|--------|
|                                | 2011          |   | 2010 |   |
| Rental income                       | $             | 1,400  |   | $ | 1,297 |   |
| Rental property costs               |          | (729   | ) |   | (745 | ) |
| Depreciation                        |          | (340   | ) |   | (365 | ) |
| General and administrative expenses |          | (864   | ) |   | (792 | ) |
| Operating loss                      | $             | (533   | ) | $ | (605 | ) |
|                                |          |   |   |   |   |   |

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|                  | First-quarter2011 |   |
|-----------------------|-------------------|--------|
| Hotel revenue         | $                 | 7,271  |   |
| Hotel operating costs |              | (6,249 | ) |
| Depreciation          |              | (1,255 | ) |
| Operating loss        | $                 | (233   | ) |
|                  |              |   |   |

|               | First-quarter2011 |   |
|--------------------|-------------------|--------|
| Average daily rate | $                 | 270    |   |
| Average occupancy  |              | 73     | % |
| REVPAR             | $                 | 198    |   |
|               |              |   |   |

|                                | First-quarter2011 |   |
|-------------------------------------|-------------------|--------|
| Entertainment venue revenue         | $                 | 1,357  |   |
| Entertainment venue operating costs |              | (1,540 | ) |
| Depreciation                        |              | (176   | ) |
| Operating loss                      | $                 | (359   | ) |
|                                |              |   |   |

|                                       | First-quarter2011 |   |
|--------------------------------------------|-------------------|--------|
| Events:                                    |              |   |   |
| Events hosted                              |              | 32     |   |
| Estimated attendance                       |              | 48,625 |   |
| Ancillary net revenue per attendeea        | $                 | 15.85  |   |
| Ticketing:                                 |              |   |   |
| Number of tickets sold                     |              | 25,718 |   |
| Gross value of tickets sold (in thousands) | $                 | 1,043  |   |
|                                       |              |   |   |

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| ·   | $63.1 million of borrowings outstanding under the Beal Bank loan agreement, which is secured by the assets in the W Austin Hotel & Residences project. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $36.0 million of borrowings outstanding under seven unsecured term loans, which include two $5.0 million loans, an $8.0 million loan, a $7.0 million loan, a $4.0 million loan and two $3.5 million loans. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $34.7 million of borrowings outstanding and $2.9 million of letters of credit issued, and $7.4 million of availability under our credit facility with Comerica. The credit facility includes a $35.0 million revolving loan, of which no amounts are available, and a $10.0 million term loan, of which $7.4 million is available. We used the proceeds from these borrowings for general corporate purposes, including overhead and development costs. The credit facility is secured by assets at Barton Creek, Lantana and Circle C. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $30.0 million of borrowings outstanding under the Ford loan agreement, which is secured by a second lien on the W Austin Hotel & Residences project assets. Additionally, the Ford loan agreement provides for a profits interest in our joint venture with Canyon-Johnson. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $20.6 million of borrowings outstanding under the Lantana promissory note, which is secured by our buildings at 7500 Rialto Boulevard. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $4.5 million of borrowings outstanding under a term loan, which is secured by Barton Creek Village. |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | $4.4 million of borrowings outstanding under a $5.4 million term loan, which is secured by 5700 Slaughter. |
|--------------------|------------------------------------------------------------------------------------------------------------|

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|                      | 2011   |   | 2012   |   | 2013   |   | 2014   |   | 2015   |   |   Thereafter |   | Total  |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------------------|--------|--------|--------|
| Beal Bank Loan            | $      | -      |   | $      | -      |   | $      | -      |   | $      | 63,095                 |   | $      | -      |   | $ | - |   | $ | 63,095 |   |
| FAAM Loans                |   | 9,000  | a      |   | 3,500  |   |   | 15,000 |   |   | 8,500                  |   |   | -      |   |   | - |   |   | 36,000 |   |
| Ford Loan                 |   | -      |   |   | 30,000 |   |   | -      |   |   | -                      |   |   | -      |   |   | - |   |   | 30,000 |   |
| Comerica Credit Facility  |   | -      |   |   | 34,676 |   |   | -      |   |   | -                      |   |   | -      |   |   | - |   |   | 34,676 |   |
| Lantana Promissory Note   |   | 238    |   |   | 334    |   |   | 355    |   |   | 377                    |   |   | 400    |   |   | 18,901 |   |   | 20,605 |   |
| Barton Creek Village Loan |   | 66     |   |   | 93     |   |   | 100    |   |   | 4,284                  |   |   | -      |   |   | - |   |   | 4,543 |   |
| 5700 Slaughter Loan       |   | 53     |   |   | 77     |   |   | 84     |   |   | 89                     |   |   | 4,123  |   |   | - |   |   | 4,426 |   |
| Total                     | $      | 9,357  |   | $      | 68,680 |   | $      | 15,539 |   | $      | 76,345                 |   | $      | 4,523  |   | $ | 18,901 |   | $ | 193,345 |   |
|                      |   |   |   |   |   |   |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |

| a.   | Loans mature in December 2011. |
|----------------|--------------------------------|

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It

P

I

|                   |   | (a) Total |   |        |   | (c) Total Number of      |   | (d) Maximum Number     |
|------------------------|--------|-----------|--------|-------------|--------|--------------------------|--------|------------------------|
|                   |   | Number    |   | (b) Average |   | Shares Purchased as Part |   | of Shares That May     |
|                   |   | of Shares |   | Price Paid  |   | of Publicly Announced    |   | Yet Be Purchased Under |
| Period                 |   | Purchased |   | Per Share   |   | Plans or Programsa       |   | the Plans or Programsa |
| January 1 to 31, 2011  |   | -         |   | -           |   | -                        |   | 161,145                |
| February 1 to 28, 2011 |   | -         |   | -           |   | -                        |   | 161,145                |
| March 1 to 31, 2011    |   | -         |   | -           |   | -                        |   | 161,145                |
| Total                  |   | -         |   | -           |   | -                        |   |                   |
|                   |   |      |   |        |   |                     |   |                   |

| a.   | In February 2001, our Board of Directors approved an open market share purchase program for up to 0.7 million shares of our common stock. The program does not have an expiration date. Our modified unsecured term loans prohibit common stock purchases while any of the loans are outstanding. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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S

|          |   |                                                                               |   |                      |   | Incorporated by Reference |
|---------------|--------|------------------------------------------------------------------------------------|--------|---------------------------|--------|---------------------------|
| ExhibitNumber |   | Exhibit Title                                                                      |   | Filed with this Form 10-Q |   | Form                      |   | File No. |   | Date Filed |
| 3.1           |   | Composite Certificate of Incorporation of Stratus.                                 |   |                      |   | 8-A                       |   | 000-19989 |   | 08/26/2010 |
|          |   |                                                                               |   |                      |   |                      |   |   |   |   |
| 3.4           |   | By-laws of Stratus, as amended as of November 6, 2007.                             |   |                      |   | 10-Q                      |   | 000-19989 |   | 08/11/2008 |
|          |   |                                                                               |   |                      |   |                      |   |   |   |   |
| 31.1          |   | Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a). |   | X                         |   |                      |   |   |   |   |
|          |   |                                                                               |   |                      |   |                      |   |   |   |   |
| 31.2          |   | Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a). |   | X                         |   |                      |   |   |   |   |
|          |   |                                                                               |   |                      |   |                      |   |   |   |   |
| 32.1          |   | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.   |   | X                         |   |                      |   |   |   |   |
|          |   |                                                                               |   |                      |   |                      |   |   |   |   |
| 32.2          |   | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350.   |   | X                         |   |                      |   |   |   |   |

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