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Dec 31, 2024
Star Holdings Q4 2024 Earnings Report
Star Holdings reported a net loss for the fourth quarter and fiscal year 2024, primarily due to a non-cash market-to-market adjustment on its investment in SAFE shares.
Key Takeaways
Star Holdings reported a net loss of $102.6 million for the fourth quarter of 2024, and a net loss of $86.8 million for the full fiscal year. This was largely driven by a non-cash market-to-market adjustment of $104.8 million related to its investment in Safehold Inc. shares. Despite the overall loss, the company generated a net profit of $12.3 million from the sale of land and improvements at a California property.
Net income (loss) attributable to common shareholders was ($102.6) million for the fourth quarter.
Earnings (loss) per share was ($7.70) for the fourth quarter.
A non-cash market-to-market adjustment of ($104.8) million on SAFE investment significantly impacted fourth-quarter earnings.
The Company sold land and improvements at a California property for $21.5 million, resulting in a net profit of $12.3 million.
Forward Guidance
Star Holdings expects to focus on realizing value for shareholders from its portfolio by maximizing cash flows through active asset management and asset sales.
Positive Outlook
- Focus on maximizing cash flows from existing portfolio.
- Strategy includes active asset management.
- Strategy includes asset sales to realize value.
- Company owns interests in valuable properties like Asbury Park Waterfront and Magnolia Green.
- Company holds shares in Safehold Inc. (NYSE: SAFE).
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The company's portfolio includes properties and loans that are for sale or otherwise plan to be monetized, indicating a divestment strategy.
- The significant non-cash market-to-market adjustment on SAFE investment highlights potential volatility in earnings.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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