Star Holdings (STHO) Q2 2024 earnings summary

Executive summary

• Focused on monetizing assets through sales, loan repayments, and active management, with a portfolio including development projects, loans, land, and a significant equity stake in Safehold Inc. valued at $260.9 million as of June 30, 2024.

• Strategy centers on selling remaining residential units, managing operating assets, and monetizing development sites, particularly at Asbury Park Waterfront and Magnolia Green.

• Report covers results for the quarter ended June 30, 2024, following the 2023 spin-off from iStar.

Financial highlights

• For Q2 2024, total revenue was $30.6M, up from $25.5M year-over-year, driven by higher land development and other income.

• Net loss attributable to common shareholders was $27.1M for Q2 2024, compared to $90.0M in Q2 2023; for the six months ended June 30, 2024, net loss was $76.1M, improved from $180.7M loss in the prior year.

• Unrealized losses on Safehold Inc. equity investment were $17.7M for Q2 2024 and $55.6M for the first half of 2024.

• General and administrative expenses declined to $4.6M in Q2 2024 from $7.6M in Q2 2023 due to lower management fees.

• Basic and diluted loss per share was $2.04 for Q2 2024, compared to $6.75 in Q2 2023.

Outlook and guidance

• Anticipates declining land development revenue as asset sales progress and fewer development assets remain.

• Short- and long-term liquidity needs expected to be met through asset sales, operations, and available credit facilities.

• No regular dividends expected; distributions will depend on asset sale proceeds after debt repayment.