Financial Performance - Total revenue for the three months ended June 30, 2024, was $30.6 million, an increase of 19.9% from $25.5 million for the same period in 2023[73] - Land development revenue for the three months ended June 30, 2024, was $15.7 million, compared to $11.8 million for the same period in 2023, reflecting a significant increase due to a bulk sale at Coney Island[73] - Net loss for the three months ended June 30, 2024, was $27.9 million, an improvement from a net loss of $89.9 million for the same period in 2023[73] - Total revenue increased to $55.986 million for the six months ended June 30, 2024, compared to $42.266 million for the same period in 2023, representing a growth of 32.4%[77] - Land development revenue rose to $32.316 million in the first half of 2024, up from $21.382 million in the same period of 2023, marking an increase of 51.5%[77] - Net loss improved to $(76.948) million for the six months ended June 30, 2024, compared to a net loss of $(180.674) million in the same period of 2023, an improvement of 57.4%[77] Expenses - General and administrative expenses decreased to $4.6 million for the three months ended June 30, 2024, from $7.6 million for the same period in 2023[75] - General and administrative expenses decreased to $11.979 million in the first half of 2024 from $21.650 million in 2023, a reduction of 44.8%[79] - The annual management fee payable to the Manager decreased from $25 million to $15 million for the second annual term of the Management Agreement starting March 31, 2024[79] Cash and Investments - The aggregate carrying value of the Asbury Park Waterfront investment was approximately $132.5 million as of June 30, 2024[68] - Magnolia Green has an aggregate carrying value of $50.2 million as of June 30, 2024, with 2,077 residential lots sold to homebuilders[70] - The fair value of Safe Shares was $260.9 million based on a closing price of $19.29 as of June 28, 2024[71] - The company holds $57.6 million in cash and cash equivalents and restricted cash[88] Interest and Debt - The company incurred $1.7 million of interest expense on its Margin Loan Facility for the three months ended June 30, 2024, down from $2.5 million for the same period in 2023[75] - The company has $85.5 million in floating-rate debt obligations outstanding as of June 30, 2024[88] - A decrease of 100 basis points in interest rates could increase net income by $279,000[89] - A decrease of 50 basis points in interest rates could increase net income by $140,000[89] - A decrease of 10 basis points in interest rates could increase net income by $28,000[89] - An increase of 10 basis points in interest rates could decrease net income by $28,000[89] - An increase of 50 basis points in interest rates could decrease net income by $140,000[89] - An increase of 100 basis points in interest rates could decrease net income by $279,000[89] - The company is exposed to significant interest rate risk which could adversely affect profitability[88] - The company may implement hedging strategies to mitigate interest rate risks[88] Future Outlook - The company anticipates selling remaining residential lots at Magnolia Green over the next two years, although the timing is uncertain[70] - The company expects land development revenue to decline in the future as fewer residential and development assets remain[77] - The unrealized loss on equity investment for the three months ended June 30, 2024, was $17.7 million, a significant improvement from a loss of $76.3 million for the same period in 2023[73] - Unrealized gains on equity investments improved to $(55.578) million in the first half of 2024 from $(166.932) million in 2023, a positive change of 66.7%[77] - Cash flows used in operating activities increased to $(20.637) million for the six months ended June 30, 2024, compared to $(4.656) million in 2023[85]
Star (STHO) - 2024 Q2 - Quarterly Report