At the Company's upcoming 2021 Annual Meeting, Stratus' shareholders face an important decision regarding their investment. Two highly-qualified directors of your Board are up for election, James ("Jim") Leslie and Neville Rhone, Jr., both of whom contribute exceptional experience and expertise related to the real estate industry.
However, their election to the board is being threatened by the actions of an offshore activist hedge fund, Oasis Management Capital Ltd. ("Oasis"), who has instead nominated two directors, including Ella Benson (who previously served on the Stratus Board until voluntarily resigning last year).
PROTECT YOUR INVESTMENT FROM OASIS' SELF-SERVING AGENDA BY VOTING ON THE WHITE PROXY CARD "FOR" HIGHLY-QUALIFIED DIRECTOR NOMINEES, JIM LESLIE AND NEVILLE RHONE JR. WE ALSO RECOMMEND YOU VOTE "FOR" THE PROPOSAL TO ADD AN ADDITIONAL SHAREHOLDER-RECOMMENDED DIRECTOR, LAURIE DOTTER, TO THE STRATUS BOARD. By voting on the WHITE proxy card, shareholders will be voting for independent directors who are dedicated to serving the interests of all shareholders and will continue to analyze and pursue any strategy or transaction that maximizes shareholder value.
A Message from Beau Armstrong, Chairman, President and Chief Executive Officer:
"Our driven and talented team at Stratus has continued to maximize the value of our properties throughout every step of our development strategy, even amid the unprecedented challenges caused by the COVID-19 pandemic. While the pandemic negatively impacted the hotel and entertainment industries, Stratus' financial position remains solid. Our residential properties are thriving, our multi-family, grocery-anchored retail and mixed-use properties have been resilient through the pandemic, and our development pipeline remains robust.
I am very proud to work with both Jim and Neville as Stratus directors. Jim has been an important part of our Board for years and has overseen the successful execution of our strategy. With his extensive real estate and REIT experience, Jim is also integral to our exploration of a potential conversion of Stratus into a REIT. Although appointed to our Board only recently in December 2020, Neville has already brought us important industry and operating experience in real estate development and finance. I look forward to continuing to work with them, as well as Laurie Dotter, who will enhance the Board’s diversity and overall capabilities.
The Stratus Board has created value for shareholders through a deep understanding of Stratus' business and a history of taking decisive action to ensure the Company's long-term success. We are active, engaged and poised to capture opportunities in the fast-growing Austin market and in other Texas real estate markets.
On the other hand, Oasis, an offshore activist hedge fund, opposes the exploration of a potential REIT conversion that could unlock significant value for the vast majority of shareholders.
PLEASE NOTE: This election is not about whether Stratus should become a REIT but rather something more fundamental – which directors should be in the boardroom providing oversight and strategic direction to Stratus. Should we have conflicted directors, such as Ms. Benson, who have already made up their minds to oppose a REIT conversion, or should we have highly-qualified directors who will review these questions objectively, with an open mind and with an eye toward the interests of all shareholders?
I encourage all our shareholders to vote on the WHITE proxy card FOR our nominees Jim Leslie and Neville Rhone, Jr. and FOR the proposal to add Laurie Dotter to our Board."
Stratus has operated in Texas for more than 30 years and has real estate projects located primarily in the Austin area and other select fast-growing Texas markets, such as the Houston area. Our proven strategy consists of acquiring land, securing and maintaining development entitlements, designing, developing and stabilizing properties, and ultimately selling, refinancing or holding them as part of our leasing operations.
The management team's knowledge of and deep relationships in the Austin real estate market have been critical to Stratus' success in identifying and securing attractive opportunities – such as the prized 37-story Block 21 property which serves as a shopping and cultural center of Austin's 2nd Street District. Block 21 features an entire city block of mixed-use development including the W Austin Hotel and the ACL Live entertainment space, and is home to Austin City Limits, a television program showcasing popular music legends.
Other examples of our contemporary properties and retail centers include the luxurious and tranquil residencies of The Santal, a serene apartment complex nestled at the foot of the Hill Country with spectacular views of downtown Austin, and Amarra Villas, an enclave of 20 single-family homes designed within a condominium regime to allow for the luxurious amenities expected in the quiet, safe and upscale Barton Creek Community. Stratus has a successful track record of creating value for shareholders by taking advantage of favorable market conditions.
Stratus' recent monetization activities include:
Stratus encourages all shareholders to vote "FOR" the election of our highly-qualified director nominees Jim Leslie and Neville Rhone, Jr., and "FOR" the proposal to add an additional highly-qualified director, Laurie Dotter, to the Board on the WHITE proxy card. Protect your investment in Stratus.
Your Vote Is Important, No Matter How Many or How Few Shares You Own.
If you have questions about how to vote your shares, or need additional assistance, please contact the firm assisting us in the solicitation of proxies:
INNISFREE M&A INCORPORATED
Shareholders Call Toll-Free: (877) 456-3442
Banks and Brokers Call Collect: (212) 750-5833
We urge you NOT to sign any proxy card sent to you by Oasis.
If you have already done so, you have every legal right to change your vote by using the WHITE proxy card mailed to you — by telephone,
by Internet, or by signing, dating and returning the WHITE proxy card
in the postage-paid envelope provided.
Please contact the Company's proxy solicitor, Innisfree, if you cannot find your WHITE proxy card.Return to top of page