Financial Performance - Total revenue for the three months ended March 31, 2025 was $14.6 million, a decrease of $10.8 million compared to $25.4 million for the same period in 2024[129]. - Land development revenue for the three months ended March 31, 2025 was $5.2 million, down from $16.6 million for the same period in 2024[132]. - Interest income increased to $1.1 million for the three months ended March 31, 2025, up from $0.4 million for the same period in 2024[130]. - General and administrative expenses were $4.7 million for the three months ended March 31, 2025, down from $7.4 million for the same period in 2024[137]. - The unrealized gain on equity investment for the three months ended March 31, 2025 was $3.2 million, a significant recovery compared to the unrealized loss of $37.9 million for the same period in 2024[140]. Cash Flow - Cash flows from operating activities for Q1 2025 were $(6,326) thousand, an improvement from $(14,230) thousand in Q1 2024[147]. - Cash flows from investing activities in Q1 2025 were $(8,276) thousand, a decrease compared to $9,634 thousand in Q1 2024, primarily due to increased capital expenditures[147]. - Cash flows from financing activities in Q1 2025 were $12,089 thousand, representing net borrowings on debt obligations[147]. Assets and Investments - As of March 31, 2025, the aggregate carrying value of the Asbury Park Waterfront investment was approximately $134.2 million[117]. - The aggregate carrying value of Magnolia Green assets as of March 31, 2025 was $42.5 million, with 2,153 residential lots sold to homebuilders[120][121]. - The fair value of Safe Shares was $253.1 million based on a closing price of $18.72 as of March 31, 2025[126]. Debt and Liquidity - As of March 31, 2025, the company had $118.9 million in floating-rate debt obligations and $43.0 million in cash and cash equivalents[161]. - The company expects to meet short-term liquidity requirements through cash flows from operations, asset sales, and available debt facilities[145]. - Future cash sources will largely depend on proceeds from asset sales, which may be affected by macroeconomic factors[146]. - The company has not paid any dividends since its formation in 2023 and does not expect to pay regular dividends in the near future[142]. Risk Management - A 100 basis point increase in interest rates could decrease net income by $427 thousand, while a 100 basis point decrease could increase net income by $427 thousand[161]. - The company is exposed to market risks, particularly interest rate risk, which could materially affect profitability[156]. - The Margin Loan Facility and Safe Credit Facility require compliance with various covenants, including restrictions on indebtedness and asset sales[148][152]. - The company has implemented hedging strategies to mitigate the effects of interest rate changes on operations[158].
Star (STHO) - 2025 Q1 - Quarterly Report