Joint venture exit reshapes Star Holdings (NASDAQ: STHO) balance sheet

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Star Holdings has deconsolidated a multifamily development joint venture after the venture repaid a $10.6 million mezzanine loan on March 27, 2026 and the company’s $80.0 million construction loan guaranty was released. No consideration was transferred, and Star resigned as manager, ending its control for accounting purposes.

Pro forma figures assuming deconsolidation at December 31, 2025 show total assets decreasing from $570.2 million to $491.6 million, and total liabilities falling from $304.3 million to $237.3 million, as venture-related real estate and debt come off the balance sheet. Star Holdings shareholders’ equity rises modestly from $251.8 million to $253.0 million, while noncontrolling interests decline from $14.1 million to $1.3 million.

On a pro forma 2025 basis, net loss from operations before income taxes would improve from $(70.7) million to $(64.4) million, but net loss allocable to common shareholders would edge lower from $(64.2) million to $(64.4) million, with basic and diluted loss per share moving from $(4.90) to $(4.91). The company has filed detailed unaudited pro forma financial statements as Exhibit 99.1.

Insights

Deconsolidating the multifamily venture reduces both assets and debt with only minor EPS impact.

Star Holdings previously consolidated the Asbury Park multifamily venture as a variable interest entity under ASC 810 due to its mezzanine loan and guaranty exposure. With the $10.6 million mezzanine loan repaid and the $80.0 million construction guaranty released on March 27, 2026, Star no longer controls the venture and deconsolidates it.

Pro forma at December 31, 2025, total assets fall by $78.6 million to $491.6 million, while total liabilities fall by $67.0 million to $237.3 million. Shareholders’ equity inches up to $253.0 million, but loss per share worsens slightly to $(4.91). The transaction mainly reshapes the balance sheet mix, with limited change to common shareholders’ bottom line in the pro forma year.

8-K Event Classification

2 items: 2.01, 9.01

2 items

Item 2.01 Completion of Acquisition or Disposition of Assets Financial

The company completed a significant acquisition or sale of business assets.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Mezzanine loan to venture: $10.6 million Senior construction mortgage guaranty: $80.0 million Total assets pro forma: $491.6 million +5 more

8 metrics

Mezzanine loan to venture $10.6 million Loan to multifamily venture, fully funded and later repaid on March 27, 2026

Senior construction mortgage guaranty $80.0 million Completion and carry guaranty on venture’s senior construction loan, later released

Total assets pro forma $491.6 million Pro forma total assets at December 31, 2025 after deconsolidation

Total liabilities pro forma $237.3 million Pro forma total liabilities at December 31, 2025 after deconsolidation

Debt obligations reduction $63.5 million Debt obligations, net, decrease from $268.7 million to $205.2 million

Shareholders’ equity pro forma $253.0 million Star Holdings shareholders’ equity after pro forma adjustments at December 31, 2025

Net loss before taxes pro forma 2025 $(64.4) million Net loss from operations before income taxes for 2025 after deconsolidation

EPS impact 2025 $(4.91) per share Pro forma basic and diluted net loss per share vs $(4.90) historical

Key Terms

variable interest entity, ASC 810, pro forma financial information, noncontrolling interests, +2 more

6 terms

variable interest entity financial

"the Venture ... was a variable interest entity for which the Company was the primary beneficiary"

A variable interest entity (VIE) is a company structure where one party controls another company’s operations and economic outcomes through contracts or special arrangements instead of owning a majority of its voting shares. For investors, VIEs matter because the controlling party’s financial results, debts and risks can appear in the controller’s reports even though ownership looks separate, so understanding VIEs helps assess true exposure, governance limits and transparency—like spotting a puppet controlled by strings rather than direct ownership.

ASC 810 financial

"thus consolidated it under Accounting Standards Codification 810 (“ASC 810”)"

pro forma financial information financial

"The pro forma financial information of the Company reflecting the deconsolidation of the venture is filed as exhibit 99.1"

Pro forma financial information are adjusted financial numbers that show how a company’s results might look after a specific event or after removing one-time items, like a cleaned-up or “what if” version of its earnings. Investors use these figures to compare performance, judge future profitability, or evaluate the impact of mergers, restructurings or large transactions, but they require scrutiny because adjustments can make results look rosier than standard accounting statements.

noncontrolling interests financial

"Pro forma adjustments include ... the derecognition of all assets, liabilities, noncontrolling interests, revenues and expenses associated with the Venture"

The portion of a subsidiary’s equity and profits that belongs to outside owners rather than the parent company; when a parent reports consolidated results it includes the whole subsidiary but shows the noncontrolling slice separately. Think of a company’s subsidiary as a pie where the parent owns most slices but some are held by other investors — noncontrolling interests tell you how much of the pie and its future earnings don’t belong to the parent, which affects how much profit and net assets are truly attributable to the parent’s shareholders.

land development revenue financial

"Land development revenue ... 46,438 ... 10,600 ... 57,038"

Article 11 of Regulation S-X regulatory

"presented for informational purposes only in accordance with Article 11 of Regulation S-X"

Understanding 8-K Material Events →

04/01/2026 - 04:06 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 27, 2026

Star Holdings

(Exact name of registrant as specified in its charter)


Maryland	001-41572	37-6762818
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1114 Avenue of the Americas, 39th Floor

New York, New York 10036

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (212) 930-9400

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares of beneficial interest, $0.001 par value	STHO	Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.01Completion of Acquisition or Disposition of Assets.

In connection with the repayment of a loan by a joint venture related to a multifamily development project, Star Holdings (the “Company”) determined that the venture should be deconsolidated for financial reporting purposes, effective as of the March 27, 2026 repayment date when the Company’s guarantee to a third-party lender was released. No consideration was transferred as part of this transaction. For additional information, please see the accompanying pro forma financial information.

Item 9.01Financial Statements and Exhibits.


(b)	Unaudited Pro Forma Financial Information.

The pro forma financial information of the Company reflecting the deconsolidation of the venture is filed as exhibit 99.1 and incorporated herein by reference.

Exhibit 99.1Pro Forma Financial Information.

Exhibit 104Inline XBRL for the cover page of this Current Report on Form 8-K.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.


			Star Holdings

Date:	April 1, 2026	By:	/s/ BRETT ASNAS
			Brett Asnas
			Chief Financial Officer
			(principal financial officer)

Exhibit 99.1

Star Holdings

Pro Forma Financial Information

In December 2023, Star Holdings (the “Company”) transferred the ownership interests in a subsidiary land owner to a third-party venture (the “Venture”) for its development and construction of a multifamily project in Asbury Park, NJ (the “Project”). In connection with this transfer, the Company (i) provided the Venture with a $10.6 million mezzanine loan that was fully funded at closing and was secured by the ownership interests in the subsidiary land owner and scheduled to mature in June 2033; and (ii) provided a completion and carry guaranty (the “Guaranty”) on the Venture’s $80.0 million senior construction mortgage loan with a third-party lender in return for a fee. The Company was a non-member manager of the Venture and entitled to certain fees, but otherwise had no expected member-related economics.

The Company determined that the Venture (and its consolidated subsidiaries developing the Project) was a variable interest entity for which the Company was the primary beneficiary and thus consolidated it under Accounting Standards Codification 810 (“ASC 810”). As a result, for accounting purposes, the Venture was recorded in the Company’s consolidated financial statements and the mezzanine loan eliminated in consolidation. On March 27, 2026, the mezzanine loan was repaid in full and the Guaranty was released. The Company also resigned as manager of the Venture in conjunction with the repayment of the mezzanine loan and the release of the Guaranty. As such, the Company no longer controls the decision-making of the Venture and the Venture was deconsolidated in accordance with ASC 810.

The unaudited condensed consolidated pro forma balance sheet and the unaudited condensed consolidated pro forma statement of operations assume that the deconsolidation of the Venture occurred on December 31, 2025 and January 1, 2025, respectively. The unaudited pro forma adjustments are based on available information and certain estimates and assumptions that the Company believes are directly attributable to the transaction.

Pro forma adjustments include: (i) the derecognition of all assets, liabilities, noncontrolling interests, revenues and expenses associated with the Venture; (ii) the transfer of miscellaneous operating accounts such as prepaid expenses and other assets, accrued expenses, unearned rents and other items; (iii) the recognition of a sale of a land and development asset to the Venture; and (iv) the transfer of restricted cash to unrestricted cash.

The pro forma consolidated balance sheet and statement of operations are presented for informational purposes only in accordance with Article 11 of Regulation S-X and is not necessarily indicative of what the Company's financial position or operations would have been for the periods presented, nor does it purport to represent the future financial position or operations of the Company. The pro forma financial information should be read in conjunction with the historical consolidated financial statements and notes thereto as filed in the Company's 2025 Annual Report on Form 10-K.

The pro forma impact to the Company’s consolidated balance sheet, assuming the deconsolidation of the Venture occurred on December 31, 2025, would be as follows: (in thousands)


	Historical		Pro Forma		Pro
	Information		Adjustments		Forma
ASSETS
Real estate
Real estate, at cost	$	179,062	$	(80,024)	$	99,038	⁽¹⁾
Less: accumulated depreciation		(29,713)		1,588		(28,125)	⁽¹⁾
Real estate, net		149,349		(78,436)		70,913
Land and development, net		112,836		(9,890)		102,946	⁽¹⁾
Loans receivable and other lending investments, net ($578 of allowances as of December 31, 2025)		44,095		—		44,095
Other investments		185,125		—		185,125
Cash and cash equivalents		50,078		14,024		64,102	⁽²⁾
Accrued interest and operating lease income receivable, net		1,508		—		1,508
Deferred operating lease income receivable, net		432		—		432
Deferred expenses and other assets, net		26,774		(4,327)		22,447	⁽¹⁾
Total assets	$	570,197	$	(78,629)	$	491,568
LIABILITIES AND EQUITY
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	35,610	$	(3,540)	$	32,070	⁽¹⁾
Debt obligations, net		268,721		(63,497)		205,224	⁽¹⁾
Total liabilities		304,331		(67,037)		237,294
Commitments and contingencies
Equity:
Star Holdings shareholders' equity:
Common Stock, $0.001 par value, 200,000 shares authorized, 12,318 shares issued and outstanding as of December 31, 2025		12		—		12
Additional paid-in capital		599,623		—		599,623
Accumulated deficit		(347,445)		1,244		(346,201)	⁽³⁾
Accumulated other comprehensive income (loss)		(424)		—		(424)
Star Holdings shareholders' equity		251,766		1,244		253,010
Noncontrolling interests		14,100		(12,836)		1,264	⁽¹⁾
Total equity		265,866		(11,592)		254,274
Total liabilities and equity	$	570,197	$	(78,629)	$	491,568

(1)

Represents the transfer of the carrying value of real estate, at cost (comprised primarily of buildings), accumulated depreciation, land and development, net, deferred expenses and other assets, net (comprised primarily of $2.0 million of restricted cash), accounts payable, accrued expenses and other liabilities, debt obligations, net and noncontrolling interests associated with the Venture. Land and development, net also includes the transfer of $0.8 million in tax increment financing bonds. Deferred expenses and other assets, net also includes the transfer of $2.1 million of restricted cash to cash and cash equivalents.

(2)

Represents $10.6 million of cash proceeds from the sale of a land and development asset to the Venture, $2.1 million of cash proceeds for accrued interest on the mezzanine loan, the transfer of $2.1 million of restricted cash to cash and cash equivalents resulting from the completion of project milestones at the Venture, partially offset by the transfer of $0.8 million of carrying value of cash and cash equivalents at the Venture.

(3)	Represents a gain of $1.5 million on the sale of a land and development asset to the Venture, partially offset by a $0.2 million loss on the deconsolidation of the Venture.

The pro forma impact to the Company’s consolidated statement of operations for the year ended December 31, 2025, assuming the deconsolidation of the Venture occurred on January 1, 2025, would be as follows: (in thousands, except per share data)


	Historical		Pro Forma		Pro
	Information		Adjustments		Forma
Revenues:
Operating lease income	$	7,425	$	(263)	$	7,162	⁽¹⁾
Interest income		4,533		—		4,533
Other income		51,747		455		52,202	⁽¹⁾
Land development revenue		46,438		10,600		57,038	⁽²⁾
Total revenues		110,143		10,792		120,935
Costs and expenses:
Interest expense		18,368		(2,524)		15,844	⁽¹⁾
Real estate expense		49,672		(796)		48,876	⁽¹⁾
Land development cost of sales		28,758		9,120		37,878	⁽²⁾
Depreciation and amortization		5,215		(1,588)		3,627	⁽¹⁾
General and administrative		14,564		(8)		14,556	⁽¹⁾
Provision for (recovery of) loan losses		(540)		—		(540)
Other expense		9		236		245	⁽³⁾
Total costs and expenses		116,046		4,440		120,486
Unrealized gains (losses) on equity investments		(64,774)		—		(64,774)
Income (loss) from operations before other items and income taxes		(70,677)		6,352		(64,325)
Loss on early extinguishment of debt, net		(70)		—		(70)
Net income (loss) from operations before income taxes		(70,747)		6,352		(64,395)
Income tax expense		(27)		—		(27)
Net income (loss)		(70,774)		6,352		(64,422)
Net (income) loss from operations attributable to noncontrolling interests		6,525		(6,525)		—	⁽¹⁾
Net income (loss) allocable to common shareholders	$	(64,249)	$	(173)	$	(64,422)
Per common share data:
Net income (loss) allocable to common shareholders
Basic and diluted	$	(4.90)	$	(0.01)	$	(4.91)	⁽⁴⁾

Weighted average number of common shares:
Basic and diluted		13,109		—		13,109

(1)	Represents the transfer of the operating lease income, other income, interest expense, real estate expense, depreciation and amortization, general and administrative and net income (loss) from operations attributable to noncontrolling interests associated with the Venture.

(2)	Represents the recognition of $10.6 million land and development revenue and $9.1 million in land development cost of sales associated with the sale of a land and development asset to the Venture.

(3)	Represents the loss on deconsolidation of the Venture.

(4)	Represents the pro forma adjustments impact to net income (loss) per share allocable to common shareholders.

Source: View Original Filing on SEC EDGAR

FAQ

What transaction did Star Holdings (STHO) report in this Form 8-K?

Star Holdings reported the deconsolidation of a multifamily development joint venture in Asbury Park, NJ. This followed full repayment of a $10.6 million mezzanine loan and release of its $80.0 million construction loan guaranty on March 27, 2026, ending its controlling financial interest.

How does the joint venture deconsolidation affect Star Holdings’ balance sheet?

Pro forma at December 31, 2025, total assets decrease from $570.2 million to $491.6 million and total liabilities fall from $304.3 million to $237.3 million. Venture-related real estate and debt come off the balance sheet, while shareholders’ equity rises modestly to $253.0 million.

What is the impact on Star Holdings’ 2025 pro forma earnings and EPS?

Pro forma 2025 net loss from operations before income taxes improves from $(70.7) million to $(64.4) million. However, net loss allocable to common shareholders worsens slightly from $(64.2) million to $(64.4) million, with basic and diluted loss per share moving from $(4.90) to $(4.91).

Did Star Holdings receive any consideration in the deconsolidation transaction?

Star Holdings states that no consideration was transferred as part of the deconsolidation transaction. The key changes were repayment of the $10.6 million mezzanine loan, release of the $80.0 million guaranty, and resignation as manager, which removed its control for accounting purposes.

How did the deconsolidation affect Star Holdings’ cash position in the pro forma balance sheet?

In the pro forma balance sheet at December 31, 2025, cash and cash equivalents increase from $50.1 million to $64.1 million, a $14.0 million rise. Adjustments include transferring restricted cash to unrestricted cash and other venture-related account changes directly attributable to the deconsolidation.

What changes occur to noncontrolling interests after the joint venture deconsolidation?

Noncontrolling interests in the pro forma balance sheet decline from $14.1 million to $1.3 million. This reflects derecognition of the venture’s noncontrolling interests when the entity is deconsolidated under ASC 810, leaving a much smaller residual noncontrolling balance on Star Holdings’ books.

Where can investors find the detailed pro forma financial statements for Star Holdings?

The detailed unaudited pro forma balance sheet and statement of operations reflecting the venture deconsolidation are provided as Exhibit 99.1. These schedules follow Article 11 of Regulation S-X and should be read with Star Holdings’ 2025 Annual Report on Form 10-K historical financial statements.

Filing Exhibits & Attachments

2 documents

Press Releases

EX-99.1 EX-99.1 246.5 KB

Joint venture exit reshapes Star Holdings (NASDAQ: STHO) balance sheet

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