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Mar 31, 2025
Star Holdings Q1 2025 Earnings Report
Star Holdings reported a decrease in total revenues and net income for Q1 2025 compared to Q1 2024, primarily due to a significant decline in land development revenue.
Key Takeaways
Star Holdings experienced a challenging first quarter in 2025, with total revenues decreasing by 42.5% to $14.624 million from $25.436 million in Q1 2024. This was largely driven by a substantial drop in land development revenue. The company reported a net loss of $8.046 million, a significant improvement from the $48.996 million loss in the prior year, mainly due to a positive unrealized gain on equity investments compared to a large loss in the previous year.
Total revenues decreased by 42.5% from $25.436 million in Q1 2024 to $14.624 million in Q1 2025, primarily due to lower land development revenue.
Net income (loss) improved significantly, moving from a loss of $48.996 million in Q1 2024 to a loss of $8.046 million in Q1 2025, driven by unrealized gains on equity investments.
Land development revenue saw a substantial decline of 68.8% from $16.615 million in Q1 2024 to $5.183 million in Q1 2025.
The company recognized an unrealized gain of $3.245 million on equity investments in Q1 2025, a stark contrast to the $37.863 million unrealized loss in Q1 2024.
Revenue by Segment
Forward Guidance
The company expects its short-term liquidity requirements to be met through cash flows from operations, proceeds from asset sales, borrowings on available debt facilities, and unrestricted cash. Long-term liquidity will be met through cash flows from operations and proceeds from asset sales. The amount and timing of future asset sales, including Safe Shares, are uncertain and dependent on macroeconomic factors.
Positive Outlook
- Ability to access incremental borrowings under the Safe Credit Facility to address collateral shortfalls.
- Option to repurchase up to $10.0 million of its shares under the share repurchase program.
- Flexibility to prepay amounts outstanding under the Safe Credit Facility without premium or penalty.
- Potential for cash flows from operations to meet short-term liquidity needs.
- Strategic monetization of existing loans, operating properties, and land and development properties.
Challenges Ahead
- Declines in the market value of Safe Shares could require prepayments or additional cash collateral under the Margin Loan Facility.
- Increased interest expense if additional borrowings are accessed under the Safe Credit Facility (10.0% per annum).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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