Star Holdings (STHO)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 headline loss driven by SAFE mark-to-market: Net loss attributable to common shareholders was ($102.6) million, or ($7.70) per share; results include a non-cash mark-to-market loss on ~13.5 million SAFE shares of ($104.8) million, reducing EPS by ($7.87) .
• Sequential swing vs. Q3 due to valuation reversals: Q3 EPS was $6.90, boosted by a $93.8 million positive mark-to-market on SAFE (EPS +$7.05); Q4 reversed as SAFE mark-to-market turned negative, underscoring volatility in reported results .
• Portfolio monetization continued: Q4 sale of a California property for $21.5 million generated a $12.3 million net profit; STHO also provided the buyer a $17.75 million short-term acquisition loan .
• Potential stock-reaction catalysts: Ongoing asset monetization (Asbury/Magnolia Green), and post-quarter capital actions (debt extensions and authorization of up to $10 million share repurchases) could influence sentiment and liquidity considerations .

What Went Well and What Went Wrong

• What Went Well

  • Continued asset monetization with realized gains: Sold California property for $21.5 million with a $12.3 million net profit, advancing the plan to monetize non-core assets .
  • Execution on development sales cadence earlier in 2H: In Q3, recorded $6.1 million of land revenues (31 Magnolia Green lots) and $3.7 million in real estate sales from final Asbury Ocean Club closings, signaling tangible progress monetizing inventory .
  • Strategy reiterated: “Star Holdings expects to focus on realizing value for shareholders… by maximizing cash flows through active asset management and asset sales,” reinforcing a clear runoff/monetization framework .

• What Went Wrong

  • Non-cash valuation swing drove headline loss: SAFE mark-to-market of ($104.8) million cut Q4 EPS by ($7.87), eclipsing operating gains from asset sales .
  • Elevated earnings volatility: The sharp sequential reversal from Q3 (+$93.8 million SAFE adjustment) to Q4 (−$104.8 million) highlights sensitivity of GAAP results to SAFE share price .
  • Limited operating detail in releases: Quarterly disclosures emphasize EPS/NI and specific asset transactions rather than full revenue/margin detail, constraining traditional margin analysis and peer comparisons .

Financial Results

• Quarterly EPS and Net Income/Loss

• SAFE Mark-to-Market and EPS Impact

• Operating Activity KPIs (select disclosures)

Notes:

• The company’s earnings materials do not disclose full revenue and margin details by quarter; GAAP EPS/NI and select transaction-level metrics are provided. Traditional margin analysis is therefore not available from these sources .

Guidance Changes

No specific revenue, margin, OpEx, OI&E, tax, or segment guidance was provided in the referenced materials .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was located in the company document set; therefore, themes reflect disclosures from Q2–Q4 releases.

Management Commentary

• Strategic focus: “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.”
• Disclosure emphasis: Company highlighted Q4 SAFE mark-to-market headwind and discrete asset monetization outcomes (California property sale/loan) rather than providing full P&L line details, consistent with prior quarters .

Q&A Highlights

• No Q4 2024 earnings call transcript was identified in the company’s filings or earnings materials, so there are no Q&A takeaways to report .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 could not be retrieved at this time due to data access limits. As such, we cannot provide an estimates vs. actuals comparison for EPS/revenue/EBITDA for Q4 2024. If needed, we will refresh and add the comparison when access is restored.
• Implications: Given the outsized effect of SAFE mark-to-market on GAAP EPS, Street models likely focus on asset monetization cadence and balance sheet progress rather than GAAP EPS prints. Estimates may need to incorporate higher non-cash volatility and scenario ranges for transaction timing .

Key Takeaways for Investors

• Reported results are dominated by non-cash SAFE mark-to-market; Q4 loss of ($7.70) EPS was almost entirely the result of the ($104.8MM) SAFE adjustment (EPS −$7.87) .
• Underlying monetization continues: Q4 California asset sale delivered $12.3MM profit and $21.5MM proceeds, consistent with the strategy to harvest assets and recycle capital .
• 2H cadence was lumpy: Q3 benefited from $6.1MM land revenues and $3.7MM condo closings; Q4 saw fewer recurring sales but a larger discrete transaction, reflecting opportunistic monetization .
• Expect elevated EPS volatility quarter-to-quarter given SAFE price movements; focus on cash generation and realized gains for assessing progress .
• Post-quarter actions improved flexibility: debt extensions to 2028 and a new $10MM buyback authorization enhance runway and potential shareholder return options as monetizations progress .
• Near-term trading setup: Headline GAAP volatility may overshadow operating progress; catalysts include new asset sales, incremental lot closings at Magnolia Green, and updates on Asbury initiatives .
• Medium-term thesis: Value realization from legacy assets and disciplined liability management, with non-core asset sales as key drivers of NAV accretion and liquidity optionality .

Additional References (prior periods/YoY context):

• Q4 2023: EPS $4.96; net income $66.1MM, including $75.7MM positive SAFE mark-to-market (EPS +$5.69) and notable monetizations; margin loan reduced to $81.9MM by year-end 2023 .
• Q2 2024: EPS ($2.04) with ($17.7MM) SAFE mark-to-market (EPS −$1.33); $15.7MM land revenues .
• Q3 2024: EPS $6.90 with $93.8MM SAFE mark-to-market (EPS +$7.05); $6.1MM land revenues; $3.7MM condo closings .