Financial Performance - Total revenue for the three months ended March 31, 2024, was $25.4 million, an increase of 51.6% compared to $16.8 million for the same period in 2023[124]. - Land development revenue increased to $16.6 million for the three months ended March 31, 2024, compared to $9.6 million for the same period in 2023, driven by bulk sales at Magnolia Green[129]. - Operating lease income rose to $1.9 million during the three months ended March 31, 2024, from $1.7 million in the same period in 2023, primarily due to increased percentage rent[126]. - Interest income decreased to $0.4 million during the three months ended March 31, 2024, down from $1.1 million for the same period in 2023, due to a decrease in the average balance of performing loans[127]. - General and administrative expenses for the three months ended March 31, 2024, were $7.4 million, a decrease from $14.1 million allocated in the same period in 2023[134]. - The net loss for the three months ended March 31, 2024, was $49.0 million, an improvement from a net loss of $90.7 million for the same period in 2023[124]. - The provision for loan losses was $17,000 for the three months ended March 31, 2024, significantly lower than the $1.7 million provision for the same period in 2023[135]. Investment and Asset Values - As of March 31, 2024, the aggregate carrying value of the Asbury Park Waterfront investment was approximately $138.9 million[112]. - The Magnolia Green assets had an aggregate carrying value of $55.1 million as of March 31, 2024, with 2,027 residential lots sold to homebuilders[115][116]. - The fair value of Safe Shares was $278.6 million based on a closing price of $20.60 as of March 28, 2024[121]. - Unrealized loss on equity investment for the three months ended March 31, 2024, was due to the fair value adjustment of Safe Shares, reflecting a decrease from December 31, 2023[137]. - Earnings from equity method investments totaled $30.0 million for the three months ended March 31, 2023, including $1.1 million from Safe and $28.9 million from other investments[139]. Cash Flow and Liquidity - Cash flows used in operating activities increased to $(14,230) thousand for the three months ended March 31, 2024, compared to $(554) thousand in 2023[145]. - Cash flows provided by investing activities decreased to $9,634 thousand in 2024 from $116,779 thousand in 2023, primarily due to lower proceeds from asset sales[145]. - As of March 31, 2024, the company had $83.7 million in floating-rate debt obligations and $56.1 million in cash and cash equivalents[156]. - The company’s liquidity is primarily dependent on asset sales, which are subject to market conditions and may be unpredictable[143]. Financial Strategies and Risk Management - A 100 basis point increase in interest rates could decrease net income by $276 thousand, highlighting the sensitivity to interest rate changes[156]. - The Margin Loan Facility was amended in October 2023 to reduce the floor price for mandatory prepayment, indicating adjustments to financial strategies[146]. - The Safe Credit Facility was also amended to access a $25.0 million incremental facility, enhancing liquidity options[147]. - The company does not expect to pay regular dividends and will distribute available cash based on asset sales and market conditions[140].

Financial Reporting - Star Holdings reported earnings for the quarter and fiscal year ended December 31, 2023, on February 27, 2024[5]. - The earnings release is attached as Exhibit 99.1, providing detailed financial results[5]. - The filing is intended to satisfy the requirements under the Securities Exchange Act of 1934[3]. - The report was signed by Brett Asnas, Chief Financial Officer, indicating official approval of the financial statements[10]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4]. Content Limitations - The report does not include specific financial metrics or performance indicators in the provided content[6]. - No specific user data or future outlook was mentioned in the provided content[6]. - There are no details on new products, technologies, market expansion, or acquisitions in the current report[6]. - The report does not provide any performance guidance or strategic initiatives[6]. Company Information - The company’s principal executive offices are located at 1114 Avenue of the Americas, New York, NY[2].

Revenue and Income - Total revenue for 2023 was $123.1 million, a decrease of $1.0 million compared to $124.1 million in 2022[141] - Land development revenue increased to $72.4 million in 2023 from $61.8 million in 2022, driven by bulk parcel sales[144] - Net income (loss) for 2023 was $(196.3) million, compared to $(36.3) million in 2022, indicating a substantial increase in losses[141] - Revenues for the year ended December 31, 2023, were $86.894 million, a significant decrease from $625.162 million in 2022, representing a decline of approximately 86.1%[326] - Net income attributable to parent entities for the year ended December 31, 2023, was $47.673 million, down from $378.557 million in 2022, reflecting a decrease of about 87.4%[326] Expenses and Losses - General and administrative expenses rose to $36.2 million in 2023 from $10.9 million in 2022, mainly due to management fees and increased performance-based compensation[148] - Interest income fell to $2.1 million in 2023 from $12.3 million in 2022, attributed to a decrease in the average balance of performing loans[142] - The provision for loan losses significantly decreased to $1.7 million in 2023 from $45.0 million in 2022, reflecting the sale of a non-performing loan[149] - Unrealized and realized losses on equity investments amounted to $(171.4) million, primarily due to declines in the market value of Safe Shares[152] - The company recorded a provision for loan losses of $23.8 million on a non-performing loan prior to its classification as held for sale[306] Cash Flows and Liquidity - Cash flows used in operating activities decreased from $(27,358) thousand in 2022 to $(18,719) thousand in 2023, primarily due to the timing of payments on accrued expenses[160] - Cash flows provided by investing activities decreased from $236,063 thousand in 2022 to $186,020 thousand in 2023, mainly due to a decrease in proceeds from loan repayments and real estate sales[160] - Cash flows used in financing activities decreased from $(218,305) thousand in 2022 to $(114,061) thousand in 2023, attributed to borrowings from debt obligations and increased distributions to iStar[160] - The company expects future liquidity to be largely dependent on asset sales, which are difficult to predict in terms of timing and amount[156] - The company expects to meet its short-term liquidity requirements through cash flows from operations and proceeds from asset sales[212] Assets and Liabilities - Total liabilities rose to $235.357 million in 2023 from $33.102 million in 2022, indicating a substantial increase[188] - As of December 31, 2023, the company had $81.9 million in floating-rate debt obligations and $60.7 million in cash and cash equivalents[178] - Cash and cash equivalents increased significantly to $50.663 million in 2023 from $4.227 million in 2022, a growth of 1,197.5%[188] - The total gross carrying value of loans receivable and other lending investments decreased to $21,395,000 as of December 31, 2023, from $49,580,000 in 2022[294] - As of December 31, 2023, total assets of the consolidated VIEs amounted to $221,878,000, an increase from $215,524,000 as of December 31, 2022, representing a growth of approximately 1.6%[220] Debt and Financing - The company's total debt obligations as of December 31, 2023, were $192.895 million, with a Safe Credit Facility of $115 million maturing on March 31, 2027[336] - The company entered into an amendment to the Margin Loan Facility in October 2023 to reduce the floor price for mandatory prepayment of outstanding borrowings[161] - The company also amended the Safe Credit Facility in October 2023 to access a $25.0 million incremental facility[163] - The company incurred $20,235 thousand in cash paid for interest in 2023, a decrease from $42,042 thousand in 2022[207] Real Estate and Investments - The company sold land parcels and residential lots, generating land development revenue of $72.4 million in 2023, compared to $61.8 million in 2022 and $189.1 million in 2021[287] - The company recognized tenant reimbursements of $1.8 million, $3.1 million, and $2.9 million for the years ended December 31, 2023, 2022, and 2021, respectively[283] - The company reported unrealized and realized gains on equity investments of $171,394 thousand in 2023, compared to a loss of $(17,642) thousand in 2021[204] - The company owned approximately 13.5 million shares of Safehold Inc., valued at $316.4 million based on a closing price of $23.40[310] - The company capitalized interest expense on qualifying real estate assets of $2.1 million during the year ended December 31, 2023[337] Accounting and Compliance - The Company adopted ASU 2022-02 on January 1, 2023, which did not have a material impact on its financial statements[267] - The Company expects the new accounting standards issued in 2023 to have no material impact on its consolidated financial statements[277][280] - The Company performed a comprehensive analysis of its loan portfolio quarterly, assigning risk ratings from "1" (lowest risk) to "5" (highest risk)[258] - The Company evaluates available-for-sale debt securities for impairment if the security's fair value is less than its amortized cost[265] - The Governance Agreement restricts the transfer of Safe Shares for nine months and prohibits transfers to known activists or competitors without consent[319]

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]