Star Holdings Reports Q1 2025 Revenue Decline of 42.6% to $14.6 Million

Star Holdings reported its financial results for the first quarter of 2025, revealing a total revenue of $14.6 million, a decrease of 42.6% from $25.4 million in the same period of 2024. The decline was primarily attributed to a significant drop in land development revenue, which fell to $5.2 million from $16.6 million year-over-year. Operating lease income remained relatively stable at $1.9 million, while interest income saw a notable increase to $1.1 million, up from $0.4 million, reflecting a higher average balance of performing loans and other lending investments.

The company's net loss for the quarter was $8.0 million, a substantial improvement compared to a net loss of $49.0 million in the prior year. This positive shift was driven by a reduction in total costs and expenses, which decreased to $25.8 million from $36.6 million. Notably, general and administrative expenses fell significantly from $7.4 million to $4.7 million, largely due to a reduction in management fees following the expiration of the initial term of the management agreement with Safehold Management Services Inc.

In terms of operational developments, Star Holdings reported a total asset value of $618.2 million as of March 31, 2025, up from $608.7 million at the end of 2024. The company’s liabilities also increased, totaling $281.9 million, compared to $263.7 million in the previous quarter. The increase in debt obligations was primarily due to borrowings under the Safe Credit Facility and the Margin Loan Facility, which were amended to extend their maturity dates to March 2028.

Star Holdings continues to focus on its strategic initiatives, including the management of its existing assets and the monetization of its development projects. The company has emphasized its commitment to generating cash flows through active asset management and sales of its loans and properties. As of March 31, 2025, the company held approximately $132.3 million in assets earmarked for monetization, including loans and land assets. The outlook remains cautious, with management indicating that future cash flows will largely depend on asset sales, which are subject to market conditions and timing uncertainties.

Looking ahead, Star Holdings expects to meet its short-term liquidity needs through cash flows from operations and proceeds from asset sales. The company does not anticipate making significant new investments or acquisitions in the near term, focusing instead on completing its development projects and managing its existing portfolio. The ongoing economic environment, including interest rate fluctuations and market volatility, will be closely monitored as these factors could impact the company's financial performance and liquidity.