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]
Star (STHO) - 2023 Q4 - Annual Report