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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
D.C.&#160;&#160;20549</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">FORM
8-K</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
of Report (Date of earliest event reported):&#160;&#160;May 15,
2009</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><img src="stratus_logo.jpg" alt=""></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">Stratus
Properties Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
name of registrant as specified in its charter)</font></div>
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            </td>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0-19989</font></div>
            </td>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">72-1211572</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
      or other jurisdiction of incorporation)</font></div>
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            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Commission
      File Number)</font></div>
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            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(IRS
      Employer Identification Number)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -5.4pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">98
      San Jacinto Blvd., Suite 220</font></div>
            </td>
            <td valign="top" width="36%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -5.4pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Austin,
      Texas</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">78701</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -5.4pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Address
      of principal executive offices)</font></div>
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      Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant's
telephone number, including area code:&#160;&#160;(512) 478-5788</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item 3.01
<font style="DISPLAY: inline; TEXT-DECORATION: underline">Notice of Delisting or
Failure to Satisfy a Continued Listing Rule or Standard; Transfer of
Listing</font>.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stratus
Properties Inc. (&#8220;Stratus&#8221;) is working diligently to complete the preparation of
its annual report on Form 10-K for the year ended December 31, 2008 (the &#8220;2008
Form 10-K&#8221;) and its quarterly report on Form 10-Q for the quarter ended March
31, 2009 (the &#8220;first-quarter 2009 Form 10-Q&#8221;).&#160;&#160;On May 15, 2009,
Stratus received a letter from the National Association of Securities Dealers
Automated Quotations (&#8220;NASDAQ&#8221;) advising Stratus that it is currently not in
compliance with the continued listing requirements set forth in NASDAQ
Marketplace Rule 5250(c)(1), which requires timely filing of periodic reports
with the Securities and Exchange Commission (the &#8220;SEC&#8221;) for continued listing of
Stratus&#8217; common stock, and as a result, Stratus&#8217; common stock is subject to
delisting (the &#8220;NASDAQ Staff Determination Letter&#8221;).&#160;&#160;The NASDAQ Staff
Determination Letter cites Stratus&#8217; failure to file its 2008 Form 10-K by the
May 14, 2009 extended filing deadline as a reason for the delisting
determination.&#160;&#160;The letter also cites Stratus&#8217; failure to timely file
its First-Quarter 2009 Form 10-Q by the May 11, 2009 filing deadline as an
additional basis for delisting.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stratus
intends to request a hearing before a NASDAQ Hearings Panel (the &#8220;Panel&#8221;) no
later than May 22, 2009 in accordance with NASDAQ Marketplace Rule 5800 Series
to seek an exception period in which to complete its filings and thereby regain
compliance with the listing standard.&#160;&#160;Stratus&#8217; request for a hearing
will automatically suspend the delisting of its common stock 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 pending the Panel&#8217;s decision.&#160;&#160;Hearings are typically held
within 30 to 45 calendar days from the request.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
previously reported in Stratus&#8217; Form 12b-25 filed with the SEC on May 12, 2009,
following its third quarter ended September 30, 2008, Stratus determined that
the manner in which it had previously accounted for certain interest costs was
not in accordance with Statement of Financial Accounting Standards No. 34,
&#8220;Capitalization of Interest Costs,&#8221; which was discussed with its independent
auditors.&#160;&#160;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.&#160;&#160;Stratus
recently completed its evaluation of the treatment of prior years&#8217; interest
costs, and the effects on interest expense, cost of sales expense, and the cost
of real estate assets, including an evaluation of the tax implications of the
required changes. Stratus also assessed the materiality of this item on its
previously reported results for the six-month period ended June 30, 2008, and
the years ended December 31, 2007, 2006 and 2005 in accordance with SEC Staff
Accounting Bulletin No. 99 and concluded that the item was not material to such
periods.&#160;&#160;Additionally, as part of this process, Stratus also assessed
the impact on its internal control over financial reporting and determined that
its controls and procedures were effective as of September 30,
2008.&#160;&#160;As a result of the completion of the foregoing evaluations and
assessments, Stratus was able to file its quarterly report on Form 10-Q for the
quarter ended September 30, 2008 with the SEC on May 5, 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A copy of
the press release relating to this announcement is attached as Exhibit
99.1.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item 9.01
<font style="DISPLAY: inline; TEXT-DECORATION: underline">Financial Statements
and Exhibits</font>.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
Exhibit.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Exhibit included as part of this Current Report is listed in the attached
Exhibit Index.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURE</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 216pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stratus
Properties Inc.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 216pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By: /s/
John E. Baker</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 234pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">----------------------------------------</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John E.
Baker</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Senior
Vice President and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
Financial Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(authorized
signatory and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
Financial Officer)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;&#160;May
21, 2009</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stratus
Properties Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
Index</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="ex99-1.htm">99.1</a></font></div>
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            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
      Release dated May 21, 2009, titled &#8220;Stratus Properties Inc. Announces
      Receipt of NASDAQ Delisting Letter and Intended Actions for
      Appeal.&#8221;</font></div>
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[{"type": "8-K", "sequence": "1", "filename": "strs051509-8k.htm", "description": "STRS FORM 8-K 5-15-2009", "secsgml_size_bytes": 24495}]
{"company-data": {"conformed-name": "STRATUS PROPERTIES INC", "cik": "0000885508", "assigned-sic": "6552", "irs-number": "721211572", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-19989", "film-number": "09845928"}, "business-address": {"street1": "98 SAN JACINTO BLVD", "street2": "SUITE 220", "city": "AUSTIN", "state": "TX", "zip": "78701", "phone": "5124785788"}, "mail-address": {"street1": "98 SAN JACINTO BLVD", "street2": "SUITE 220", "city": "AUSTIN", "state": "TX", "zip": "78701"}, "former-company": {"former-conformed-name": "FM PROPERTIES INC", "date-changed": "19930328"}}
strs051509-8k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C.  20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):  May 15,
2009
Stratus
Properties Inc.
(Exact
name of registrant as specified in its charter)
Delaware
0-19989
72-1211572
(State
      or other jurisdiction of incorporation)
(Commission
      File Number)
(IRS
      Employer Identification Number)
98
      San Jacinto Blvd., Suite 220
Austin,
      Texas
78701
(Address
      of principal executive offices)
(Zip
      Code)
Registrant's
telephone number, including area code:  (512) 478-5788
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item 3.01
Notice of Delisting or
Failure to Satisfy a Continued Listing Rule or Standard; Transfer of
Listing
.
Stratus
Properties Inc. ("Stratus") is working diligently to complete the preparation of
its annual report on Form 10-K for the year ended December 31, 2008 (the "2008
Form 10-K") and its quarterly report on Form 10-Q for the quarter ended March
31, 2009 (the "first-quarter 2009 Form 10-Q").  On May 15, 2009,
Stratus received a letter from the National Association of Securities Dealers
Automated Quotations ("NASDAQ") advising Stratus that it is currently not in
compliance with the continued listing requirements set forth in NASDAQ
Marketplace Rule 5250(c)(1), which requires timely filing of periodic reports
with the Securities and Exchange Commission (the "SEC") for continued listing of
Stratus' common stock, and as a result, Stratus' common stock is subject to
delisting (the "NASDAQ Staff Determination Letter").  The NASDAQ Staff
Determination Letter cites Stratus' failure to file its 2008 Form 10-K by the
May 14, 2009 extended filing deadline as a reason for the delisting
determination.  The letter also cites Stratus' failure to timely file
its First-Quarter 2009 Form 10-Q by the May 11, 2009 filing deadline as an
additional basis for delisting.
Stratus
intends to request a hearing before a NASDAQ Hearings Panel (the "Panel") no
later than May 22, 2009 in accordance with NASDAQ Marketplace Rule 5800 Series
to seek an exception period in which to complete its filings and thereby regain
compliance with the listing standard.  Stratus' request for a hearing
will automatically suspend the delisting of its common stock 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 pending the Panel's decision.  Hearings are typically held
within 30 to 45 calendar days from the request.
As
previously reported in Stratus' Form 12b-25 filed with the SEC on May 12, 2009,
following its third quarter ended September 30, 2008, Stratus determined that
the manner in which it had previously accounted for certain interest costs was
not in accordance with Statement of Financial Accounting Standards No. 34,
"Capitalization of Interest Costs," which was discussed with its independent
auditors.  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.  Stratus
recently completed its evaluation of the treatment of prior years' interest
costs, and the effects on interest expense, cost of sales expense, and the cost
of real estate assets, including an evaluation of the tax implications of the
required changes. Stratus also assessed the materiality of this item on its
previously reported results for the six-month period ended June 30, 2008, and
the years ended December 31, 2007, 2006 and 2005 in accordance with SEC Staff
Accounting Bulletin No. 99 and concluded that the item was not material to such
periods.  Additionally, as part of this process, Stratus also assessed
the impact on its internal control over financial reporting and determined that
its controls and procedures were effective as of September 30,
2008.  As a result of the completion of the foregoing evaluations and
assessments, Stratus was able to file its quarterly report on Form 10-Q for the
quarter ended September 30, 2008 with the SEC on May 5, 2009.
A copy of
the press release relating to this announcement is attached as Exhibit
99.1.
Item 9.01
Financial Statements
and Exhibits
.
(d)
Exhibit.
The
Exhibit included as part of this Current Report is listed in the attached
Exhibit Index.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Stratus
Properties Inc.
By: /s/
John E. Baker
----------------------------------------
John E.
Baker
Senior
Vice President and
Chief
Financial Officer
(authorized
signatory and
Principal
Financial Officer)
Date:  May
21, 2009
Stratus
Properties Inc.
Exhibit
Index
Exhibit
Number
99.1
Press
      Release dated May 21, 2009, titled "Stratus Properties Inc. Announces
      Receipt of NASDAQ Delisting Letter and Intended Actions for
      Appeal."