Star Holdings Reports First Quarter 2025 Results

Rhea-AI Summary

Star Holdings (NASDAQ: STHO) reported its Q1 2025 financial results, posting a net loss of $7.6 million or ($0.57) per share. The results include a non-cash adjustment of $3.2 million related to its investment in 13.5 million SAFE shares. The company generated $5.2 million in land revenues from selling 45 lots at Magnolia Green. Post-quarter, STHO sold an Asbury Park parcel for $14.0 million. The company also amended its credit facilities, extending debt maturities to March 2028, adding a $15.8 million delayed-draw feature to its Margin Loan Facility, and authorizing a $10.0 million share repurchase program.

Positive

• Post-quarter sale of Asbury Park parcel for $14.0 million
• Extension of debt maturities to March 2028
• Authorization of $10.0 million share repurchase program
• Addition of $15.8 million delayed-draw feature to Margin Loan Facility
• Generated $5.2 million in land revenues from Magnolia Green lot sales

Negative

• Reported Q1 2025 net loss of $7.6 million
• Negative earnings per share of ($0.57)

Insights

Financial Analyst

Star Holdings posted Q1 loss of $7.6M ($0.57/share), sold properties, extended debt maturities, and authorized $10M share repurchase program.

Star Holdings reported a net loss of $7.6 million ($0.57 per share) for Q1 2025, which includes a non-cash adjustment of $3.2 million that improved EPS by $0.24 related to their investment in approximately 13.5 million SAFE shares. This mark-to-market adjustment partially offset what would have been an even larger loss.

The company's core operations generated $5.2 million in land revenues during Q1, primarily from selling 45 lots at their Magnolia Green development. More significantly, after the quarter closed, they sold an Asbury Park land parcel for $14 million, which will positively impact Q2 results.

The company has taken several strategic steps to improve its financial flexibility: extending debt maturities on multiple credit facilities to March 2028, adding a $15.8 million delayed-draw feature to their Margin Loan Facility, and authorizing a $10 million share repurchase program. These amendments buy Star Holdings nearly three additional years before facing significant debt repayments.

Star's portfolio consists primarily of real estate interests in the Asbury Park Waterfront and Magnolia Green residential developments, alongside other commercial properties and loans intended for monetization. Their strategy focuses on maximizing cash flows through active asset management and strategic sales, suggesting the company is in a controlled liquidation or value realization phase rather than growth mode.

NEW YORK, May 12, 2025 /PRNewswire/ -- Star Holdings (NASDAQ: STHO) announced today that it has filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 with the Securities and Exchange Commission. 

Net income (loss) attributable to common shareholders for the first quarter was ($7.6 million) and earnings (loss) per share was ($0.57). These results reflect a non-cash adjustment of $3.2 million which increased earnings per share by $0.24 with respect to our investment in approximately 13.5 million shares of SAFE based on a mark-to-market at quarter end.

During the first quarter, the Company recorded $5.2 million of land revenues, which was comprised of revenues from the sale of 45 lots at Magnolia Green. Subsequent to quarter end, the Company sold a land parcel in Asbury Park for approximately $14.0 million.

Additionally, the Company amended its Safe Credit Facility, Margin Loan Facility and Management Agreement. In connection with these amendments, the Company's related debt maturities were extended to March 31, 2028, an approximately $15.8 million delayed-draw feature was added to the Margin Loan Facility and a $10.0 million share repurchase program was authorized.

Further details regarding the Company's results of operations, assets and activities and the loan amendments are available in the Company's Form 10-Q for the quarter ended March 31, 2025 which is available for download at the Company's website www.starholdingsco.com or at the Securities and Exchange Commission website www.sec.gov.

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Star Holdings' (NASDAQ: STHO) portfolio is comprised primarily of interests in the Asbury Park Waterfront, the Magnolia Green residential development projects and other commercial real estate properties and loans that are for sale or otherwise plan to be monetized. Star Holdings also owns shares of Safehold Inc. (NYSE: SAFE). Star Holdings expects to focus on realizing value for shareholders from its portfolio primarily by maximizing cash flows through active asset management and asset sales.  Additional information on Star Holdings is available on its website at www.starholdingsco.com.

Company Contact:
Pearse Hoffmann
Senior Vice President
Head of Corporate Finance
T 212.930.9400
E investors@starholdingsco.com 

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SOURCE Star Holdings

FAQ

What were Star Holdings (STHO) Q1 2025 earnings per share?

Star Holdings reported a loss of ($0.57) per share for Q1 2025.

How much did Star Holdings (STHO) receive from the Asbury Park parcel sale?

Star Holdings sold a land parcel in Asbury Park for approximately $14.0 million after the first quarter ended.

What is the size of STHO's newly authorized share repurchase program?

Star Holdings authorized a $10.0 million share repurchase program.

How many lots did Star Holdings sell at Magnolia Green in Q1 2025?

Star Holdings sold 45 lots at Magnolia Green, generating $5.2 million in land revenues.

When do Star Holdings' amended debt facilities mature?

The company's debt maturities were extended to March 31, 2028.