Star Holdings Reports Third Quarter 2024 Results

Rhea-AI Summary

Star Holdings (NASDAQ: STHO) reported Q3 2024 results with net income of $91.9 million and earnings per share of $6.90. The results include a non-cash adjustment of $93.8 million related to their investment in 13.5 million SAFE shares, which increased EPS by $7.05. The company generated $6.1 million in land revenues from selling 31 lots at Magnolia Green and recorded $3.7 million in real estate income from final condominium closings at Asbury Ocean Club.

Positive

• Net income of $91.9 million for Q3 2024
• EPS of $6.90 per share
• Land revenue of $6.1 million from Magnolia Green lot sales
• Real estate income of $3.7 million from Asbury Ocean Club closings

Negative

• Majority of reported earnings ($93.8 million) comes from non-cash mark-to-market adjustment

Insights

Financial Analyst

Star Holdings delivered mixed Q3 2024 results, with headline earnings largely driven by a significant non-cash adjustment. The reported $91.9 million net income and $6.90 EPS were primarily influenced by a $93.8 million mark-to-market adjustment related to SAFE shares, which added $7.05 to EPS.

Core operational performance shows modest revenue generation, with $6.1 million from land sales at Magnolia Green (31 lots) and $3.7 million from final Asbury Ocean Club condominium closings. The company's strategy focuses on monetizing its real estate portfolio, which includes the Asbury Park Waterfront and Magnolia Green developments.

The substantial mark-to-market adjustment masks the underlying business performance, suggesting actual operational earnings were minimal or potentially negative when excluding this non-cash item. Investors should focus on the company's ability to execute asset sales and generate cash flows in future quarters.

NEW YORK, Nov. 5, 2024 /PRNewswire/ -- Star Holdings (NASDAQ: STHO) announced today that it has filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 with the Securities and Exchange Commission. 

Net income attributable to common shareholders for the third quarter was $91.9 million and earnings per share was $6.90. These results reflect a non-cash adjustment of $93.8 million which increased earnings per share by $7.05 with respect to our investment in approximately 13.5 million shares of SAFE based on a mark-to-market at quarter end.

During the third quarter, the Company recorded $6.1 million of land revenues, which was comprised of 31 lots at Magnolia Green that were sold. The Company also recorded income from sales of real estate of $3.7 million for the final two condominium closings at the Asbury Ocean Club.

Further details regarding the Company's results of operations, assets and activities are available in the Company's Form 10-Q for the quarter ended September 30, 2024 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
Capital Markets & Investor Relations
T 212.930.9400
E investors@starholdingsco.com

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SOURCE Star Holdings

FAQ

What was Star Holdings (STHO) earnings per share in Q3 2024?

Star Holdings reported earnings per share of $6.90 in Q3 2024, including a $7.05 per share increase from a non-cash mark-to-market adjustment.

How much revenue did Star Holdings (STHO) generate from land sales in Q3 2024?

Star Holdings generated $6.1 million in land revenues from selling 31 lots at Magnolia Green during Q3 2024.

What was Star Holdings (STHO) net income for Q3 2024?

Star Holdings reported a net income of $91.9 million for Q3 2024.

How much did Star Holdings (STHO) earn from Asbury Ocean Club sales in Q3 2024?

Star Holdings recorded $3.7 million in real estate income from the final two condominium closings at the Asbury Ocean Club.