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]
Star (STHO) - 2023 Q3 - Quarterly Report