Stratus Properties to Appeal Nasdaq Delisting Notice

The Nasdaq has sent a letter to Stratus Properties Inc., Austin, Tex., which said the company's common stock is subject to delisting from the exchange for failure to file its financial reports in a timely manner. Stratus did not file its 2008 10-K report by an extended deadline of May 14, nor did it file its first quarter 2009 10-Q by May 11. Stratus said it would request a hearing with Nasdaq to seek an exception period in which to complete its filings and thereby regain compliance with the listing standard. This request will automatically suspend the delisting for 15 calendar days from the deadline to request a hearing, or until June 8, 2009. However, Stratus also intends to request a further stay on the delisting of its common stock. Hearings are typically held within 30 to 45 calendar days from the request. The reason for the filing delay is that following the third quarter, Stratus determined that the manner in which it had previously accounted for certain interest costs was not in accordance with SFAS 34. Stratus had historically excluded interest costs related to financing of operating properties from interest eligible for capitalization, resulting in such interest costs being charged to expense.