Welcome to the Stratus Properties Second Quarter 2017 Conference Call. Stratus' second quarter 2017 results were released earlier this morning and a copy of the press release for today's call is available on Stratus' website at stratusproperties.com. Please note this event is being recorded. I would now like to turn the call over to Mr. Beau Armstrong, Chairman and Chief Executive Officer of Stratus Properties.

Thank you, Austin. Good morning and welcome to the Stratus Properties' second quarter 2017 earnings conference call. Before we begin our comments, we would like to remind everyone that today's press release and certain of our comments in the call include forward-looking statements and actual results may differ materially. I would like to refer everyone to the cautionary language included in Stratus' press release and to the risk factors described in Stratus' 2016 Form 10-K and subsequent SEC filings. Today's press release and certain of our comments on the call also includes certain financial measures, such as adjusted EBITDA and debt to total asset value, which are not recognized under U.S. GAAP. As required by SEC Regulation G, reconciliations of these measures to match reported in Stratus' consolidated financial statements are contained in the supplemental schedules of Stratus' press release, which are also available on Stratus' website at stratusproperties.com. With me this morning is Erin Pickens, Senior Vice President and Chief Financial Officer. Following our remarks, we will open the call for questions. This is being recorded and replay will be available through August 14th. Today, in addition to releasing second quarter results, we are pleased to announce a new project Jones Crossing, a to be built grocery-anchored mixed use development in College Station, Texas, home to Texas A&M University. This is a great opportunity for Stratus and we will be impactful to the local community. Jones Crossing will be anchored by an HEB. It will be located on 72 acres in a highly developed area and is on an established student bus route, less than two miles from the Texas A&M campus. One key competitive benefit of Jones Crossing lies in the mixed-use nature of this project. The commercial component is anchored by a 106,000 square foot HEB grocery…

Thank you, Beau. Today Stratus reported the second quarter 2017 net loss attributable to common stockholders of $0.9 million or $0.11 per share compared with the second quarter 2016 net loss attributable to common stockholders of $2.5 million or $0.31 per share. As noted in our press release, our improved results partly relate to expenses incurred last year in connection with our successful proxy fight. Stratus continues to monitor the progress towards meeting the requirements to begin recognizing all or a portion of the deferred gain from the February sale of Oaks at Lakeway in which the company received $170 million and significantly reduced debt. The deferred gain as of June 30th, 2017 was $38.7 million. Stratus closed the quarter with $14.8 million in cash available to fund operations and early stage development project prior to obtaining project loans and $30 million of availability remaining on the Comerica revolving loan. We extended the maturity of the Comerica credit facility for three months to November 30th, 2017, while we continue to work on a modification and longer term extension. We appreciate the positive relationship we've developed with Comerica over the years and we expect to have the modification and renewal in place by the November 2017 maturity. We remain in compliance with loan covenant. Net interest expense of $1.5 million for the second quarter of 2017 was lower than a year ago period reflecting the debt pay down following the sale of Oaks at Lakeway. Stratus' debt at the end of June was $205.8 million of which $147.3 million or 72% is non-recourse and $58.5 million or 28% is recourse to the company. Stratus' debt to total asset value remains relatively low and is currently only 34.4%. Debt to total asset value is an important metric for us and we believe we have ample capacity to add construction financing for future projects in addition to the construction loans for Jones Crossing and the second Phase of Santal anticipated to close in the third quarter. This concludes my comments. Now, I'll turn it back to Beau.

Thank you, Erin. To close, the continued performance of our asset base is driven by our unique ownership of legacy assets that include entitlements from Austin Texas and our expertise and ability to plan, entitle, and develop high quality projects and sell those projects at favorable values. We have built a business that allows our shareholders to participate in the upside of real estate in the highly desirable Austin market and high population growth areas outside of Austin. Our hotel and entertainment segments produce stable cash flows that serve to support continued growth. We appreciate you listening to our call and will now open the call for a few questions. Austin?

Hi guys, and congratulations on the quarter. Given a lot of the headlines on the retail landscape and some of the disruption even that's happening in grocery. Maybe you could take us through your thoughts on tenant selection and anchor selection on a go-forward basis for some of the developments? Thank you.

We have temporarily lost the connection of our speakers. Please hold while we attempt to reconnect. Thank you. We have reconnected with our speakers. Mr. Shoghi, you may proceed with your question. Thank

Thank you very much. My question was regarding the retail landscape. Given a lot of the disruption that we've seen in both retail and e-commerce and even now what's anticipated in grocery, I was hoping you could take us through your thoughts on both anchor selection and tenant mix and how you guys are looking at the landscape on a go-forward basis?

That's a great question. We all are aware of the dominance of Amazon and the destruction that they have had on the retail landscape, but specifically to your question, HEB, obviously, is our preferred anchor. We have a lot of confidence in HEB. As far as I know, they've never had a bad store. They certainly dominate this region. So, we're very comfortable working with them on site selection and having them anchor our projects. Beyond that, we simply avoid things that you can get on the Internet; soft goods, home goods, things like that, and tend to focus more on services such as restaurants, entertainment, fitness, immediate need things like a doctor's offices, regional clinics, AT&T stores, or phone stores, so, things like that. But we are very mindful of the potential to have disruption because of the Internet and how easy it is to get things online. So, we we've really to steer away from those categories.

Great. Thank you very much.

[Operator Instructions]. At this time, I'm showing no further questions. That will conclude our question-and-answer session as well as today's conference. We thank you for attending today's presentation and you may now disconnect your lines.