Financial Performance - Total revenue for the three months ended March 31, 2024, was $25.4 million, an increase of 51.6% compared to $16.8 million for the same period in 2023[124]. - Land development revenue increased to $16.6 million for the three months ended March 31, 2024, compared to $9.6 million for the same period in 2023, driven by bulk sales at Magnolia Green[129]. - Operating lease income rose to $1.9 million during the three months ended March 31, 2024, from $1.7 million in the same period in 2023, primarily due to increased percentage rent[126]. - Interest income decreased to $0.4 million during the three months ended March 31, 2024, down from $1.1 million for the same period in 2023, due to a decrease in the average balance of performing loans[127]. - General and administrative expenses for the three months ended March 31, 2024, were $7.4 million, a decrease from $14.1 million allocated in the same period in 2023[134]. - The net loss for the three months ended March 31, 2024, was $49.0 million, an improvement from a net loss of $90.7 million for the same period in 2023[124]. - The provision for loan losses was $17,000 for the three months ended March 31, 2024, significantly lower than the $1.7 million provision for the same period in 2023[135]. Investment and Asset Values - As of March 31, 2024, the aggregate carrying value of the Asbury Park Waterfront investment was approximately $138.9 million[112]. - The Magnolia Green assets had an aggregate carrying value of $55.1 million as of March 31, 2024, with 2,027 residential lots sold to homebuilders[115][116]. - The fair value of Safe Shares was $278.6 million based on a closing price of $20.60 as of March 28, 2024[121]. - Unrealized loss on equity investment for the three months ended March 31, 2024, was due to the fair value adjustment of Safe Shares, reflecting a decrease from December 31, 2023[137]. - Earnings from equity method investments totaled $30.0 million for the three months ended March 31, 2023, including $1.1 million from Safe and $28.9 million from other investments[139]. Cash Flow and Liquidity - Cash flows used in operating activities increased to $(14,230) thousand for the three months ended March 31, 2024, compared to $(554) thousand in 2023[145]. - Cash flows provided by investing activities decreased to $9,634 thousand in 2024 from $116,779 thousand in 2023, primarily due to lower proceeds from asset sales[145]. - As of March 31, 2024, the company had $83.7 million in floating-rate debt obligations and $56.1 million in cash and cash equivalents[156]. - The company’s liquidity is primarily dependent on asset sales, which are subject to market conditions and may be unpredictable[143]. Financial Strategies and Risk Management - A 100 basis point increase in interest rates could decrease net income by $276 thousand, highlighting the sensitivity to interest rate changes[156]. - The Margin Loan Facility was amended in October 2023 to reduce the floor price for mandatory prepayment, indicating adjustments to financial strategies[146]. - The Safe Credit Facility was also amended to access a $25.0 million incremental facility, enhancing liquidity options[147]. - The company does not expect to pay regular dividends and will distribute available cash based on asset sales and market conditions[140].
Star (STHO) - 2024 Q1 - Quarterly Report