Revenue Performance - For the three months ended September 30, 2023, total revenue increased to $43.6 million, up from $38.4 million in the same period in 2022, representing a growth of approximately 13.4%[189] - Land development revenue for the three months ended September 30, 2023, was $24.8 million, compared to $15.1 million for the same period in 2022, marking an increase of 64.4%[192] - Total revenue decreased to $85.8 million for the nine months ended September 30, 2023, down from $106.0 million in 2022, representing a decline of approximately 19%[204] - Land development revenue was $46.2 million for the nine months ended September 30, 2023, down from $54.4 million in 2022, a decrease of about 15% due to lower sales from certain properties[208] Financial Losses - Net loss for the three months ended September 30, 2023, was $81.8 million, compared to a net income of $17.6 million for the same period in 2022, reflecting a decline of $99.3 million[189] - Net loss for the nine months ended September 30, 2023, was $262.4 million, compared to a loss of $3.9 million in the same period in 2022, indicating a significant deterioration in financial performance[204] Expenses - General and administrative expenses for the nine months ended September 30, 2023, were $29.0 million, a significant increase from $5.9 million in the same period in 2022, primarily due to management fees and an allocation from iStar[213] - Interest expense for the three months ended September 30, 2023, was $2.3 million, a significant decrease from $9.5 million allocated in the same period in 2022[194] - The company incurred $15.0 million in interest expense for the nine months ended September 30, 2023, compared to $33.3 million in 2022, a decrease of about 55% due to changes in debt structure[210] Asset Values - The aggregate carrying value of the Asbury Park Waterfront investment was approximately $157.1 million as of September 30, 2023[174] - The aggregate carrying value of the Magnolia Green assets was $78.4 million as of September 30, 2023[177] - The company owned assets with an aggregate carrying value of approximately $59.5 million in its monetizing portfolio as of September 30, 2023[179] - The fair value of the Safe Shares was $240.7 million based on a closing price of $17.80 as of September 29, 2023[185] Cash Flows - Cash flows provided by operating activities for the nine months ended September 30, 2023, were $(12,975) thousand, compared to $(18,218) thousand in 2022, indicating an improvement[225] - Cash flows provided by investing activities increased to $145,881 thousand in 2023 from $107,781 thousand in 2022, primarily due to higher distributions from other investments[225] - Cash flows used in financing activities rose to $(89,164) thousand in 2023 from $(74,916) thousand in 2022, mainly due to greater distributions to iStar and increased debt repayment[225] Loan and Interest Management - The provision for loan losses was $1.7 million for the nine months ended September 30, 2023, significantly lower than $22.6 million in 2022, reflecting a reduction in non-performing loans[214] - The provision for loan losses decreased significantly to $1.7 million for the nine months ended September 30, 2023, from $22.6 million in the same period of 2022[234] - A 100 basis point increase in interest rates could decrease net income by $544 thousand, while a 100 basis point decrease could increase net income by $544 thousand[243] - The company performs a quarterly comprehensive analysis of its loan portfolio to assign risk ratings based on credit quality judgments[230] - The company monitors interest rate spreads and may implement hedging strategies to mitigate interest rate risks[241] Future Outlook - The company anticipates selling remaining residential lots over the next three years, with no assurance on the timing or completion of these sales[178] - Following the Spin-Off, the company entered into a Margin Loan Facility with an outstanding balance of $100.0 million as of September 30, 2023[187] - The company entered into an amendment to the Margin Loan Facility to reduce the floor price for mandatory prepayment of outstanding borrowings[226] - An amendment to the Safe Credit Facility was made to access a $25.0 million incremental facility for voluntary prepayments under the Margin Loan Facility[227]

Revenue and Income - For the three months ended June 30, 2023, total revenue decreased to $25.5 million from $40.7 million for the same period in 2022, representing a decline of approximately 37.5%[175] - For the six months ended June 30, 2023, total revenue decreased to $42.3 million from $67.6 million for the same period in 2022, a decline of approximately 37.5%[190] - Interest income decreased significantly to $0.4 million from $4.2 million, a decline of approximately 90% due to reduced average balances of performing loans[176] - Interest income decreased significantly to $1.5 million in the first half of 2023 from $9.1 million in 2022, representing a decline of approximately 83.6%[191] - Other income increased to $11.7 million from $8.9 million, a rise of approximately 31.4%, primarily driven by dividend income from Safe[177] - Land development revenue dropped to $11.8 million from $24.4 million, a decrease of approximately 51.7%, due to lower sales from Magnolia Green and Asbury Park properties[179] - Land development revenue dropped to $21.4 million in the first half of 2023 from $39.3 million in 2022, a decrease of about 45.5%[194] Expenses and Losses - The company reported a net loss of $89.9 million for the three months ended June 30, 2023, compared to a net loss of $20.9 million in the same period of 2022[175] - General and administrative expenses for the three months ended June 30, 2023, were $7.6 million, compared to a recovery of ($2.1) million in the same period of 2022[183] - General and administrative expenses increased to $21.7 million in the first half of 2023 from a negative allocation of $1.1 million in 2022, reflecting a significant change in expense structure[198] - The provision for loan losses was $1.6 million for the six months ended June 30, 2023, compared to $22.7 million for the same period in 2022, indicating a reduction of approximately 92.9%[199] Investments and Assets - As of June 30, 2023, the aggregate carrying value of the Asbury Park Waterfront investment was approximately $166.6 million[163] - The aggregate carrying value of Magnolia Green assets was $81.9 million as of June 30, 2023, with 1,868 residential lots sold to homebuilders[166] - The fair value of Safe Shares was $320.9 million based on a closing price of $23.73 as of June 30, 2023[173] - Earnings from equity method investments rose to $30.2 million in the first half of 2023, up from $21.5 million in 2022, an increase of approximately 40.8%[205] - Unrealized loss on equity investment amounted to $(166.9) million as of June 30, 2023, reflecting the adjustment to fair value of Safe Shares[190] Cash Flows - Cash flows used in operating activities improved to $(4.7) million in 2023 from $(19.2) million in 2022, a positive change of approximately 75.5%[211] - Cash flows provided by investing activities increased to $128.9 million in 2023 from $59.3 million in 2022, a growth of approximately 117.5%[211] Debt and Interest Rate Risk - As of June 30, 2023, the company had $115.0 million in principal amount of floating-rate debt obligations outstanding and $54.9 million in cash and cash equivalents[228] - The estimated change in net income due to a 100 basis points increase in interest rates would result in a decrease of $601,000[228] - The company performs a quarterly comprehensive analysis of its loan portfolio, assigning risk ratings from "1" (lowest risk) to "5" (highest risk)[216] - The company considers a loan to be non-performing when interest payments become 90 days delinquent or if management determines it is probable that the loan will not be collected[219] - The company monitors interest rate spreads and may implement hedging strategies to mitigate interest rate risk, including interest rate swaps and caps[226] - The base interest rate scenario assumes a three-month SOFR rate of 5.27% as of June 30, 2023[227] - The company’s operating results are significantly affected by changes in interest rates, which could materially impact profitability[224] Asset Impairment and Valuation - The company has established detailed policies and control procedures to ensure consistent application of valuation methods for financial reporting[214] - Impairments of real estate and land development assets are recorded in the "Impairment of assets" section of the financial statements when applicable[222]

Revenue and Income - For the three months ended March 31, 2023, total revenue decreased to $16.8 million from $26.9 million for the same period in 2022, representing a decline of approximately 37.5%[174] - Operating lease income fell to $1.7 million, down from $3.1 million in the prior year, a decrease of 45.0% attributed to asset sales[174] - Interest income decreased to $1.1 million from $4.9 million, a decline of 77.4% due to a reduction in the average balance of performing loans[175] - Land development revenue was $9.6 million, down from $14.9 million, a decrease of 35.5% primarily due to reduced sales from various properties[178] - Earnings from equity method investments increased to $30.0 million for the three months ended March 31, 2023, compared to $12.6 million for the same period in 2022[185] Expenses and Losses - General and administrative expenses increased significantly to $14.1 million from $0.9 million, reflecting a rise in performance-based compensation[181] - The provision for loan losses was $1.7 million compared to $0.1 million in the prior year, primarily due to the sale of a non-performing loan[182] - The provision for loan losses was $1.7 million for the three months ended March 31, 2023, up from $0.1 million in the same period in 2022[201] - The unrealized loss on equity investment in Safe Shares amounted to $90.7 million, reflecting the fair value adjustment post Spin-Off[184] Cash Flow and Liquidity - Cash flows provided by operating activities were $(554,000) for Q1 2023, an improvement from $(10.75 million) in Q1 2022[192] - Cash flows provided by investing activities increased to $116.779 million in Q1 2023, compared to $(68.716 million) in Q1 2022[192] - The company expects to meet short-term liquidity requirements through cash flows from operations and proceeds from asset sales[189] - The company has not paid any dividends as of March 31, 2023, and does not expect to pay regular dividends in the future[187] - The company is prohibited from selling Safe Shares for nine months following the Spin-off, which may affect liquidity[190] Assets and Investments - The aggregate carrying value of the Asbury Park Waterfront investment was approximately $170.5 million as of March 31, 2023[161] - The aggregate carrying value of Magnolia Green assets was $86.0 million as of March 31, 2023, with 1,825 residential lots sold to homebuilders[164][165] - The fair value of Safe Shares was $397.2 million based on a closing price of $29.37 as of March 31, 2023[172] Debt and Interest Rate Risk - The company has $140.0 million in principal amount of floating-rate debt obligations outstanding as of March 31, 2023[209] - A 100 basis point increase in interest rates could decrease net income by $630,000[209] - The company is exposed to market risks, particularly interest rate risk, which could materially affect profitability[205] - The estimated change in net income for a decrease of 100 basis points in interest rates is an increase of $630,000[209] - The estimated change in net income for a decrease of 50 basis points in interest rates is an increase of $315,000[209] - The estimated change in net income for a decrease of 10 basis points in interest rates is an increase of $63,000[209] - The estimated change in net income for an increase of 10 basis points in interest rates is a decrease of $63,000[209] - The estimated change in net income for an increase of 50 basis points in interest rates is a decrease of $315,000[209] - The estimated change in net income for an increase of 100 basis points in interest rates is a decrease of $630,000[209] - The company had $6.8 million in principal amount of floating-rate loans receivable outstanding as of March 31, 2023[209] - The company had $70.2 million of cash and cash equivalents as of March 31, 2023[209] - The base interest rate scenario assumes a one-month LIBOR rate of 4.86% and a three-month SOFR rate of 4.91%[208]