Star Holdings (STHO) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $91.9 million, a significant turnaround from a net loss of $81.8 million in Q3 2023, driven by unrealized gains on Safehold Inc. shares and asset sales.

• Earnings per share for Q3 2024 was $6.90, boosted by a $93.8 million non-cash mark-to-market gain on Safehold Inc. shares.

• The company focuses on monetizing assets through sales, loan repayments, and active management, with a portfolio including Asbury Park Waterfront, Magnolia Green, and a large equity stake in Safehold Inc.

• Strategy centers on maximizing shareholder value via asset management and sales.

Financial highlights

• Total revenues for Q3 2024 were $24.6 million, down from $43.6 million in Q3 2023, mainly due to lower land development revenue.

• Land revenues of $6.1 million from the sale of 31 Magnolia Green lots.

• $3.7 million income from final two condominium closings at Asbury Ocean Club.

• For the nine months ended September 30, 2024, net income was $14.5 million, versus a net loss of $262.4 million in the prior year period.

• Cash and cash equivalents stood at $45.0 million as of September 30, 2024.

Outlook and guidance

• Land development revenue is expected to decline as remaining assets are sold; timing and amounts of future sales are uncertain.

• Liquidity will depend on asset sales and the market value of Safehold Inc. shares, with potential for required prepayments on the Margin Loan Facility if Safehold's share price declines.

• No regular dividends are planned; distributions will depend on available cash from asset sales after debt repayment.