Revenue: As of FY2026 Q1, the actual value is USD 20.94 M.EPS: As of FY2026 Q1, the actual value is USD -0.85.EBIT: As of FY2026 Q1, the actual value is USD -8.867 M.Star Holdings operates through one reportable and operating segment, primarily focusing on generating cash flows by actively managing and selling its existing loans, operating properties, and land and development properties without anticipating material new investments or significant asset acquisitions currently.<h4>Revenue</h4>Operating lease income was $2,037 thousand for the three months ended March 31, 2026, increasing from $1,854 thousand in the prior year, mainly due to a new property starting operations in September 2025, partially offset by a lease expiration. Interest income decreased to $497 thousand from $1,099 thousand, primarily due to a reduction in the average balance of performing loans. Other income increased to $7,392 thousand from $6,488 thousand, driven by a $1,000 thousand legal settlement. Land development revenue significantly rose to $11,015 thousand from $5,183 thousand, largely due to a bulk sale at the Asbury Park property. Total revenues for the three months ended March 31, 2026, were $20,941 thousand, up from $14,624 thousand in the same period of 2025.<h4>Operational Metrics</h4>Net income (loss) was - $14,458 thousand for the three months ended March 31, 2026, compared to - $8,046 thousand for the same period in 2025. Net income (loss) allocable to common shareholders was - $10,257 thousand, an increase from - $7,604 thousand in the prior year. Interest expense increased to $6,088 thousand from $3,763 thousand, including significant amounts on various debt facilities. Real estate expense rose to $11,507 thousand from $9,694 thousand due to a new property and a legal settlement expense. Land development cost of sales increased to $9,342 thousand from $6,827 thousand, corresponding with higher land development revenue. Depreciation and amortization increased to $2,228 thousand from $977 thousand, primarily due to a property commencing operations. General and administrative expense decreased to $3,286 thousand from $4,718 thousand, largely due to reduced management fees. Provision for loan losses was $419 thousand, contrasting with a recovery of loan losses of - $137 thousand in 2025, mainly due to a $500 thousand charge-off. Unrealized losses on equity investments were - $2,164 thousand, a significant change from unrealized gains of $3,245 thousand in 2025, reflecting fair value changes in Safe Shares.<h4>Cash Flow</h4>Cash flows used in operating activities increased to - $8,398 thousand for the three months ended March 31, 2026, from - $6,326 thousand in 2025, primarily due to a real estate property beginning operations. Cash flows provided by investing activities were $626 thousand, a significant change from - $8,276 thousand used in 2025, driven by decreased capital expenditures and increased proceeds from asset sales. Cash flows provided by financing activities decreased to $2,659 thousand from $12,089 thousand, mainly due to a net decrease in borrowings and common stock repurchases. Cash and restricted cash at the end of the period was $62,059 thousand as of March 31, 2026, compared to $43,033 thousand as of March 31, 2025.<h4>Unique Metrics</h4>Total assets decreased to $480,355 thousand as of March 31, 2026, from $570,197 thousand as of December 31, 2025. Loans receivable and other lending investments, net, increased to $54,353 thousand from $44,095 thousand, including subordinate mortgages and available-for-sale debt securities. Real estate, net, decreased to $70,197 thousand from $149,349 thousand, partly due to an asset deconsolidation. Land and development, net, decreased to $100,530 thousand from $112,836 thousand. Investment in Safehold Inc. (Safe) shares had a fair value of $183,000 thousand as of March 31, 2026. Star Holdings repurchased 0.2 million shares of common stock for $1,998 thousand during the three months ended March 31, 2026, completing its full authorization. Debt obligations, net, decreased to $207,001 thousand from $268,721 thousand, with the company in compliance with all financial covenants as of March 31, 2026.<h4>Future Outlook and Strategy</h4>Star Holdings’ core business strategy is to monetize its legacy non-ground lease assets by generating cash flows through active asset management and sales of existing loans, operating properties, and land and development properties. The company plans to sell its remaining residential lots in Magnolia Green to homebuilders over the next two years, acknowledging a potential for a longer timeline, which is expected to lead to a decline in land development revenue as fewer assets remain. Short-term liquidity needs are planned to be met through cash flows from operations, asset sales, available debt facilities, and unrestricted cash, while long-term liquidity will be addressed via operations, asset sales, and refinancing maturing debt.

Star | 10-Q: FY2026 Q1 Revenue: USD 20.94 M