Investment Values - As of September 30, 2024, the aggregate carrying value of the Asbury Park Waterfront investment was approximately $132.6 million[71]. - The Magnolia Green project has an aggregate carrying value of $43.9 million, with 2,108 residential lots sold to homebuilders as of September 30, 2024[73]. - The monetizing portfolio had an aggregate carrying value of approximately $96.1 million as of September 30, 2024, primarily consisting of loans, operating properties, and land[74]. - The fair value of Safe Shares was $354.7 million based on a closing price of $26.23 as of September 30, 2024[74]. Revenue and Income - Total revenue for the three months ended September 30, 2024, was $24.6 million, a decrease of $19.0 million compared to the same period in 2023[76]. - Land development revenue for the three months ended September 30, 2024, was $6.1 million, down from $24.8 million in the same period in 2023[76]. - Total revenue for the nine months ended September 30, 2024, was $80.5 million, a decrease of $5.3 million (6.2%) compared to $85.8 million for the same period in 2023[80]. - Interest income decreased to $1.4 million for the nine months ended September 30, 2024, down from $1.8 million in 2023, primarily due to a decrease in the average balance of performing loans[80]. - Other income increased to $35.5 million in 2024, up from $32.7 million in 2023, driven by an additional $2.4 million of dividend income from Safe[80]. - Land development revenue was $38.5 million for the nine months ended September 30, 2024, down from $46.2 million in 2023, attributed to decreased revenues from bulk and condominium sales[80]. - Net income for the three months ended September 30, 2024, was $91.5 million, compared to a net loss of $81.8 million for the same period in 2023[76]. - Net income for the nine months ended September 30, 2024, was $14.5 million, a significant increase of $276.9 million compared to a net loss of $262.4 million in 2023[80]. Expenses and Costs - Total costs and expenses decreased by $22.1 million (17%) to $108.0 million in 2024 from $130.1 million in 2023[80]. - General and administrative expenses were $16.5 million in 2024, down from $29.0 million in 2023, primarily due to a reduction in management fees[82]. - The provision for loan losses was $58,000 in 2024, a decrease of $1.7 million from the same period in 2023[82]. - Interest expense on the Margin Loan Facility for the three months ended September 30, 2024, was $1.8 million, down from $2.3 million in the same period in 2023[78]. - The annual management fee payable to the Manager under the Management Agreement declined from $25.0 million to $15.0 million for the second annual term starting March 31, 2024[78]. Cash Flow and Debt - Cash flows used in operating activities were $(24.4) million for the nine months ended September 30, 2024, compared to $(13.0) million in 2023[88]. - The company holds $54.5 million in cash and cash equivalents and restricted cash[91]. - The company has $87.4 million in floating-rate debt obligations outstanding as of September 30, 2024[91]. Interest Rate Risk - A 100 basis point increase in interest rates could lead to a decrease in net income by $329,000[92]. - A 50 basis point decrease in interest rates could increase net income by $164,000[92]. - A 10 basis point decrease in interest rates could increase net income by $33,000[92]. - A 10 basis point increase in interest rates could decrease net income by $33,000[92]. - A 50 basis point increase in interest rates could decrease net income by $164,000[92]. - The company is exposed to interest rate risk, which could materially affect profitability[91]. - The company may implement hedging strategies to mitigate interest rate risks[91]. Future Considerations - Future events may require adjustments to the company's estimates and judgments in financial reporting[89]. - The company does not expect to pay regular dividends and plans to make distributions based on asset sales and cash availability[85].
Star (STHO) - 2024 Q3 - Quarterly Report