Star Holdings: Q2 FY2026 earnings call
What management said about Q2 FY2026, from the documents filed with the SEC on 7 August 2026: press release. The quarter’s numbers.
Key takeaways
- Second quarter earnings per share were $3.43: Net income attributable to common shareholders was $41.4 million for the quarter ended June 30, 2026. Source
- Safehold mark-to-market added $2.43 per share: A non-cash adjustment of $29.3 million on about 13.5 million SAFE shares, marked to market at quarter end, increased earnings per share. Source
- Deferred non-cash income totaled $14.4 million: The company recognized this amount after surrendering an asset to a local municipality following the expiration of a lease. Source
- Asbury Park and Magnolia Green are core: The portfolio is comprised primarily of interests in the Asbury Park Waterfront and the Magnolia Green residential development projects. Source
- Value to come from cash flow maximization: Management said the focus is realizing value for shareholders from the portfolio, primarily by maximizing cash flows. Source
- First quarter reported a net loss: Net loss attributable to common shareholders was $10.3 million, equal to a $0.85 loss per share.
“These results reflect a non-cash adjustment of $29.3 million, which increased earnings per share by $2.43 with respect to our investment in approximately 13.5 million shares of SAFE based on a mark-to-market at quarter end.”
Star Holdings, press release
What changed from last quarter
- New: Deferred non-cash income of $14.4 million, or $1.19 per share, was recognized after the company surrendered an asset to a local municipality following a lease expiration. Source
Second quarter earnings
- Second quarter earnings per share were $3.43: Net income attributable to common shareholders was $41.4 million for the quarter ended June 30, 2026. Source
- Safehold mark-to-market added $2.43 per share: A non-cash adjustment of $29.3 million on about 13.5 million SAFE shares, marked to market at quarter end, increased earnings per share. Source
- Quarterly filing points to Form 10-Q: The company filed its Form 10-Q for the quarter ended June 30, 2026, and directs readers to it for results of operations, assets and activities. Source
Deferred income from asset surrender
- Deferred non-cash income totaled $14.4 million: The company recognized this amount after surrendering an asset to a local municipality following the expiration of a lease. Source
- Lease expiry led to asset surrender: The asset was surrendered to a local municipality after its lease expired, which is the event that produced the deferred income. Source
- Both non-cash items sit in second quarter: The municipal deferred income and the SAFE mark-to-market adjustment were both described as non-cash items for the quarter ended June 30, 2026. Source
“Star Holdings expects to focus on realizing value for shareholders from its portfolio primarily by maximizing cash flows through active asset management and asset sales.”
Star Holdings, press release
Safehold share investment
- Company holds about 13.5 million SAFE shares: Star Holdings also owns shares of Safehold Inc. (NYSE: SAFE), and the investment covers approximately 13.5 million shares. Source
- First quarter SAFE effect was a reduction: The first-quarter mark-to-market adjustment was a non-cash reduction of $2.2 million, lowering earnings per share by $0.18.
- SAFE effect turned positive in second quarter: The mark-to-market effect moved from a per-share reduction in the first quarter to a per-share increase in the second quarter. Source
Portfolio and asset base
- Asbury Park and Magnolia Green are core: The portfolio is comprised primarily of interests in the Asbury Park Waterfront and the Magnolia Green residential development projects. Source
- Other commercial real estate and loans held: The portfolio also includes other commercial real estate properties and loans, which are for sale or otherwise planned for monetization. Source
- Portfolio description unchanged from first quarter: The first-quarter release carried the same portfolio description, listing Asbury Park Waterfront, Magnolia Green and other commercial real estate and loans.
Strategy and asset management
- Value to come from cash flow maximization: Management said the focus is realizing value for shareholders from the portfolio, primarily by maximizing cash flows. Source
- Active asset management is a stated tool: Active asset management and asset sales are named as the means of maximizing those cash flows. Source
- Same strategy statement appeared in first quarter: The first-quarter release carried the identical focus statement on realizing value through cash flows, asset management and asset sales.
First quarter comparison
- First quarter reported a net loss: Net loss attributable to common shareholders was $10.3 million, equal to a $0.85 loss per share.
- Two loans repaid during first quarter: Repayments were a $10.6 million mezzanine loan at the Surfhouse multifamily development in Asbury Park and a $3.1 million senior mortgage on a New York asset.
- Shares repurchased in first quarter: The company repurchased about 0.2 million common shares for $2.0 million at an average price of $8.45 per share.
Other quarters
Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.