Executive Summary

Q1 2025 delivered a net loss of $7.6M and EPS of ($0.57), with total revenues of $14.6M; results were driven by lower land development revenue and a non-cash mark-to-market gain on SAFE shares that added $0.24 to EPS .
Land activity: $5.2M of land revenue from 45 lots at Magnolia Green; post-quarter, a $14.0M Asbury Park parcel sale supports liquidity and monetization plans .
Balance sheet and capital actions: maturities on the Safe Credit Facility and Margin Loan extended to March 31, 2028, added a $15.8M delayed-draw on the margin loan, and authorized a $10.0M share repurchase, improving flexibility despite higher margin loan spread; no shares repurchased as of quarter-end .
Estimates context: S&P Global EPS and revenue consensus for Q1 2025 were unavailable; as a result, no beat/miss vs Street can be assessed (attempted fetch returned no data).
Near-term stock narrative hinges on ongoing asset sales, debt extensions, and SAFE mark-to-market volatility, with the repurchase authorization and Asbury sale acting as catalysts .

What Went Well and What Went Wrong

What Went Well

Active monetization: “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” .
Additional liquidity: “Subsequent to quarter end, the Company sold a land parcel in Asbury Park for approximately $14.0 million” .
Financial flexibility: Debt maturities extended to March 31, 2028; margin loan amended with a $15.8M delayed-draw feature; $10.0M share repurchase authorized .

What Went Wrong

Revenue compression YoY: Total revenues declined to $14.6M from $25.4M, with land development revenue down $11.4M YoY on fewer bulk sales and Magnolia lot sales .
Negative land gross margin: Land development cost of sales ($6.8M) exceeded land revenue ($5.2M), reflecting mix/timing impacts in the monetization portfolio .
Earnings volatility tied to SAFE: While Q1 recognized a $3.2M unrealized gain, the prior quarter saw a large non-cash loss; dependence on SAFE mark-to-market continues to drive outsized EPS volatility .

Financial Results

Summary performance vs prior year and prior quarters

Metric	Q1 2024	Q3 2024	Q1 2025
Total Revenues ($USD Millions)	$25.4	$24.6	$14.6
Net Income (Loss) Allocable to Common ($USD Millions)	$(49.0)	$91.9	$(7.6)
Diluted EPS ($)	$(3.68)	$6.90	$(0.57)
Net Income Margin %	-192.6% (=(49.0)/(25.4))	374.5% (=(91.9)/(24.6))	-52.0% (=(7.6)/(14.6))
Operating Income (EBIT) ($USD Millions)	$(49.0)	$91.5	$(8.0)
EBIT Margin %	-192.7% (=(49.0)/(25.4))	372.7% (=(91.5)/(24.6))	-54.6% (=(8.0)/(14.6))

Notes: Operating income references “Income (loss) from operations before other items”/“before earnings from equity method investments and other items” in respective filings .

Revenue breakdown by category

Revenue Category ($USD Millions)	Q1 2024	Q3 2024	Q1 2025
Operating Lease Income	$1.9	$1.6	$1.9
Interest Income	$0.4	$0.5	$1.1
Other Income	$6.6	$16.2	$6.5
Land Development Revenue	$16.6	$6.1	$5.2
Total Revenues	$25.4	$24.6	$14.6

KPIs and balance sheet highlights

KPI	Q1 2025
Magnolia Green lots sold (units)	45
Land revenue ($USD Millions)	$5.2
Asbury Park parcel sale (post-quarter) ($USD Millions)	~$14.0
SAFE shares owned (millions)	~13.5
SAFE fair value ($USD Millions) and price	$253.1 @ $18.72 (3/31/25)
Unrealized gain on SAFE ($USD Millions)	$3.2
Cash and Cash Equivalents ($USD Millions)	$30.3
Debt Obligations, net ($USD Millions)	$231.5
Debt breakdown (principal)	Safe Credit Facility $115.0; Margin Loan $85.8; Senior Construction Mortgage $33.2

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Safe Credit Facility maturity	Contractual maturity	March 31, 2027	March 31, 2028	Raised (extension)
Margin Loan maturity & spread	Contractual terms	March 2026; SOFR+3.00%	March 2028; SOFR+3.50%; +$15.8M delayed draw	Raised (extension and spread increase)
Share Repurchase Authorization	Ongoing	None disclosed	Up to $10.0M authorized; no repurchases by 3/31/25	New authorization
Management Agreement fee (Year 4)	FY 2026–FY 2027 term	$5.0M	$7.5M	Raised (fee increase)

No formal quantitative revenue/EPS/margin guidance was provided in Q1 2025 materials .

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in our sources; themes are drawn from the press release and 10-Q.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Asset monetization (Magnolia & Asbury)	Q3: 31 Magnolia lots; final Asbury Ocean Club condo closings ; Q4: California land sale $21.5M, $12.3M profit	Q1: 45 Magnolia lots ($5.2M); Asbury parcel sale ~$14.0M post-quarter	Continuing; cadence variable
SAFE mark-to-market volatility	Q3: $93.8M unrealized gain; $6.90 EPS ; Q4: $(104.8)M unrealized loss; $(7.70) EPS	Q1: $3.2M unrealized gain; +$0.24 EPS effect	Volatility persists
Debt/liquidity management	Q3: Margin loan PIK elections; repayments; covenant amendments	Q1: maturities extended to 2028; margin spread +50 bps; $15.8M delayed draw; $10M buyback authorization	Flexibility improved; cost modestly higher
Land development margin	Q3: Land revenue $6.1M; cost $8.1M	Q1: Land revenue $5.2M; cost $6.8M	Margin pressure continues
Macro/interest rate sensitivity	Q3: Sensitivity disclosed; net income +/- $0.33M @ 100 bps	Q1: Sensitivity +/- $0.43M @ 100 bps	Slightly higher exposure

Management Commentary

“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.” (Press Release, May 12, 2025) .
“Additionally, the Company amended its Safe Credit Facility, Margin Loan Facility and Management Agreement… debt maturities were extended to March 31, 2028… an approximately $15.8 million delayed-draw feature was added… and a $10.0 million share repurchase program was authorized.” (Press Release, May 12, 2025) .
Strategy reminder: “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.” (Press Release) .
MD&A context on land revenue decline: lower bulk sales at Asbury and Magnolia lot sales vs prior year .

Q&A Highlights

No Q1 2025 earnings call transcript was found in our sources; no Q&A themes available to summarize. Management commentary in the 10-Q clarified land revenue dynamics, margin loan PIK mechanics, and the liquidity plan centered on asset sales and extended facilities .

Estimates Context

S&P Global consensus estimates for Q1 2025 EPS and revenue were unavailable; attempted retrieval returned no data. As a result, we cannot assess beats/misses vs Street for this quarter.
Implication: Sell-side models may need to reflect ongoing land monetization cadence, mark-to-market effects from SAFE, and the new capital framework (maturities, delayed-draw, buyback authorization) .

Key Takeaways for Investors

Execution continues on monetization: 45 Magnolia lots sold and a $14M Asbury parcel post-quarter support liquidity without incremental equity dilution .
Capital structure flexibility improved: extensions to 2028 and added delayed-draw capacity mitigate near-term refinancing risk, albeit with a higher margin loan spread .
Earnings remain sensitive to SAFE mark-to-market; expect volatile quarterly EPS irrespective of operating revenue trajectory .
Land gross margin pressure underscores mix/timing; monitor trajectory of bulk vs lot sales and cost absorption at Magnolia/Asbury .
No formal revenue/EPS guidance; trading narrative likely reacts to discrete asset-sale announcements and any buyback activity (none executed by 3/31/25) .
Interest-rate sensitivity modest but notable; a 100 bps move changes annual net income by ~$0.43M (directional hedge considerations) .
Watch forthcoming filings for progress on the $10.0M repurchase authorization and any SAFE collateral or covenant developments under the margin loan .

Citations: 8-K and Exhibit 99.1 press release ; Q1 2025 press release ; Q1 2025 10-Q ; March 31, 2025 press release ; Q4 2024 press release ; Q3 2024 10-Q .

Star Holdings (STHO)·Q1 2025 Earnings Summary