Star Holdings reported a net loss of $88.4 million for the fiscal year ending December 31, 2024, a significant improvement compared to a net loss of $196.3 million in 2023. Total revenue for the year was $113.3 million, down from $123.1 million in the previous year, primarily due to a decrease in land development revenue, which fell to $60.0 million from $72.4 million. The company attributed the decline in revenue to reduced sales of residential lots and condominium units, particularly at its Asbury Park and Magnolia Green properties. Operating lease income increased slightly to $6.9 million, while interest income rose to $2.3 million, reflecting a higher average balance of performing loans.
In terms of operational changes, Star Holdings has focused on monetizing its assets, with a total carrying value of approximately $120.3 million as of December 31, 2024. This portfolio includes loans, operating properties, and land. The company successfully sold all residential condominium units at the Asbury Ocean Club, contributing to its revenue. Additionally, the company has been actively managing its development projects at Asbury Park and Magnolia Green, with plans to continue selling remaining residential lots over the next two years.
Star Holdings has also seen a reduction in total costs and expenses, which decreased to $138.8 million from $176.7 million in 2023. This reduction was driven by lower interest expenses, which fell to $7.0 million from $16.7 million, and a decrease in general and administrative expenses, which dropped to $21.1 million from $36.2 million. The company’s employee headcount remains at zero, as it relies on its external manager, Safehold Management Services Inc., for operational support.
The company’s investment in Safehold Inc. (Safe) is significant, with a fair value of $249.9 million based on the closing price of $18.48 per share as of December 31, 2024. However, Star Holdings recorded an unrealized loss of $66.5 million on its equity investments during the year. The company’s financial strategy includes focusing on asset management and sales to generate cash flows, with no plans for significant new investments or acquisitions in the near term.
Looking ahead, Star Holdings anticipates continued challenges in the real estate market, particularly in residential development, due to macroeconomic factors such as rising interest rates and inflation. The company plans to manage its liquidity through asset sales and expects to meet its short-term and long-term liquidity needs primarily from cash flows generated by operations and proceeds from asset sales. The company’s debt obligations include a Margin Loan Facility and a Safe Credit Facility, with total debt obligations amounting to $219.99 million as of December 31, 2024.
About Star Holdings
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