Star Holdings (STHO)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 net income attributable to common shareholders was $1.8 million and EPS was $0.14; results included a non‑cash SAFE mark‑to‑market adjustment of ($0.9 million) that reduced EPS by $0.07 .
• The quarter saw $1.7 million of land revenues from 12 Magnolia Green lots and $4.7 million of net cash proceeds from a legal settlement on a legacy iStar asset .
• The company repurchased ~0.4 million shares for $3.3 million at an average price of $8.48, providing buyback support as capital allocation remains a focus .
• Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue was unavailable, limiting beat/miss assessment; prior-year YoY compares are dominated by SAFE mark‑to‑market swings (Q3 2024 EPS $6.90 boosted by a $93.8 million mark‑to‑market) . S&P Global estimates unavailable via tool query.

What Went Well and What Went Wrong

What Went Well

• Asset monetization continued: “During the third quarter, the Company recorded $1.7 million of land revenues, which was comprised of revenues from the sale of 12 lots at Magnolia Green,” and received $4.7 million of legal settlement cash, supporting liquidity .
• Shareholder returns: “Additionally, the Company repurchased approximately 0.4 million shares of its outstanding common stock for $3.3 million at an average share price of $8.48,” reinforcing capital return and potential share support .
• Sequential earnings improvement: EPS improved from a Q2 loss of ($2.95) to $0.14 in Q3 as mark‑to‑market pressure on SAFE moderated (Q2: ($42.7 million) adjustment; Q3: ($0.9 million) adjustment) .

What Went Wrong

• YoY comparison unfavorable: Q3 2025 EPS of $0.14 contrasted sharply with Q3 2024 EPS of $6.90, driven by the absence of a large favorable SAFE mark‑to‑market (Q3 2024 included $93.8 million non‑cash adjustment increasing EPS by $7.05) .
• Lower transaction volume vs prior quarter: Land revenues fell to $1.7 million vs $26.6 million in Q2 (Magnolia Green 72 lots for $11.7 million and an Asbury Park land sale for $14.2 million in Q2), reducing gross monetization in Q3 .
• Limited visibility: No formal quantitative guidance was provided and S&P Global consensus estimates were unavailable, constraining beat/miss analysis and near‑term forecasting clarity. S&P Global estimates unavailable via tool query.

Financial Results

Quarterly EPS and Net Income

Note: The Q2 press release references “first quarter” in one sentence, but the document and filing explicitly pertain to the quarter ended June 30, 2025; values are presented as Q2 figures per the filing context .

Quarterly Transaction KPIs

YoY Q3 Comparison

Estimates: S&P Global consensus EPS and revenue for Q3 2025 were unavailable via tool query.

Guidance Changes

No dividend guidance disclosed in the Q3 release .

Earnings Call Themes & Trends

Note: An earnings call was scheduled on Nov 7, 2025 at 7:00AM ET, but no transcript was available in the document set reviewed .

Management Commentary

• Strategy: “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.” (Company press release) .
• Monetization update: “During the third quarter, the Company recorded $1.7 million of land revenues… sale of 12 lots at Magnolia Green,” and “received $4.7 million of net cash proceeds related to a legal settlement” .
• Capital returns: “Additionally, the Company repurchased approximately 0.4 million shares… for $3.3 million at an average share price of $8.48” .
• SAFE investment impact: “These results reflect a non‑cash adjustment of ($0.9 million) which decreased EPS by $0.07… in approximately 13.5 million shares of SAFE based on a mark-to-market at quarter end” .

Q&A Highlights

• No Q&A transcript was available; MarketBeat indicated a scheduled call on Nov 7, 2025, but no transcript or detailed Q&A content was identified in primary sources or filings reviewed .

Estimates Context

• Wall Street consensus EPS and revenue for Q3 2025 were unavailable via S&P Global in our estimates query; as a result, we cannot assess beat/miss versus consensus for this quarter. S&P Global estimates unavailable via tool query.

Key Takeaways for Investors

• Earnings quality remains heavily influenced by SAFE mark‑to‑market; Q3’s smaller ($0.9M) adjustment vs Q2’s ($42.7M) drove a swing from a large loss to modest profit (EPS from ($2.95) to $0.14) .
• Monetization pace slowed sequentially (Q3 land revenues $1.7M from 12 lots vs Q2 $26.6M including Magnolia and Asbury), implying quarter‑to‑quarter variability in cash generation from asset sales .
• Buyback execution (~0.4M shares, $3.3M at $8.48) provides near‑term technical support and signals capital allocation discipline within the authorized $10M program .
• Liquidity catalysts (legal settlement $4.7M) add cash to the balance sheet while the extended debt maturities (to 2028) support runway for ongoing monetization .
• With no formal guidance and unavailable consensus estimates (S&P Global), traders should anchor expectations on announced transactions (Magnolia/Asbury) and watch for additional sales, settlements, or buyback activity to drive near‑term stock moves .
• YoY optics will remain volatile given SAFE marks (Q3 2024 EPS $6.90 was driven by a $93.8M non‑cash boost), suggesting investors focus on cash proceeds and pace of monetizations rather than GAAP EPS alone .

References: Q3 2025 8‑K and Exhibit 99.1 press release ; Q2 2025 press release ; Q1 2025 press release ; March 31, 2025 capital structure press release ; Q3 2024 press release ; MarketBeat scheduling reference .