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Star Holdings: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 6 November 2026: press release. The quarter’s numbers.

Key takeaways

  • Net loss and loss per share: Net loss attributable to common shareholders was ($45.1) million, or ($3.74) per share, for the third quarter. Source
  • SAFE mark-to-market reduced earnings: A non-cash adjustment of ($53.1) million on the SAFE shares, based on the quarter-end mark-to-market, decreased earnings per share by ($4.40). Source
  • Municipal debt portfolio sold: The municipal debt securities portfolio was sold for $50.2 million, with a gain of $4.5 million realized. Source
  • Coney Island parcel sold: A land parcel in Coney Island was sold for $20.0 million, with a profit of $4.7 million recognized. Source
  • Margin loan balance reduced: The company voluntarily paid down its margin loan facility balance, from $94.5 million to $46.5 million. Source
  • Portfolio centred on Asbury Park: The portfolio is primarily interests in the Asbury Park Waterfront and Magnolia Green residential projects, plus other commercial real estate and loans that are for sale or planned for monetization. Source
  • Third quarter SAFE loss: The third quarter SAFE mark-to-market adjustment was a non-cash ($53.1) million, reducing earnings per share by ($4.40). Source

“Star Holdings’ (NASDAQ: STHO) portfolio is comprised primarily of interests in the Asbury Park Waterfront, the Magnolia Green residential development projects and other commercial real estate properties and loans that are for sale or otherwise plan to be monetized.”

Star Holdings, press release

What changed from last quarter

  • Ended: The company sold its portfolio of municipal debt securities for $50.2 million in the third quarter, realizing a gain of $4.5 million. Source
  • Ended: The company sold a Coney Island land parcel for $20.0 million and recognized a profit of $4.7 million. Source

Third quarter results

  • Net loss and loss per share: Net loss attributable to common shareholders was ($45.1) million, or ($3.74) per share, for the third quarter. Source
  • SAFE mark-to-market reduced earnings: A non-cash adjustment of ($53.1) million on the SAFE shares, based on the quarter-end mark-to-market, decreased earnings per share by ($4.40). Source
  • Full results filed in 10-Q: The company filed its Form 10-Q for the quarter ended September 30, 2026, which contains further detail on results, assets and activities. Source

Asset sales and debt paydown

  • Municipal debt portfolio sold: The municipal debt securities portfolio was sold for $50.2 million, with a gain of $4.5 million realized. Source
  • Coney Island parcel sold: A land parcel in Coney Island was sold for $20.0 million, with a profit of $4.7 million recognized. Source
  • Margin loan balance reduced: The company voluntarily paid down its margin loan facility balance, from $94.5 million to $46.5 million. 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

Portfolio, Safehold stake and strategy

  • Portfolio centred on Asbury Park: The portfolio is primarily interests in the Asbury Park Waterfront and Magnolia Green residential projects, plus other commercial real estate and loans that are for sale or planned for monetization. Source
  • Holds Safehold shares: The company also owns shares of Safehold Inc., which is the holding behind the quarter's SAFE mark-to-market adjustment. Source
  • Monetize through asset management: The company says it expects to focus on realizing value from the portfolio mainly through active asset management and asset sales.

Comparison with second quarter

  • Second quarter net income and EPS: In the second quarter, net income attributable to common shareholders was $41.4 million, or $3.43 per share.
  • Second quarter SAFE gain: The second quarter SAFE mark-to-market adjustment was a non-cash $29.3 million that increased earnings per share by $2.43.
  • Second quarter lease-related income: The second quarter included $14.4 million, or $1.19 per share, of deferred non-cash income from surrendering an asset to a local municipality after a lease expired.

Cash from sales and debt

  • Sales brought in cash: The municipal securities sale produced $50.2 million and the Coney Island parcel sale produced $20.0 million in the quarter. Source
  • Margin loan balance after paydown: After the voluntary paydown, the margin loan facility balance stood at $46.5 million. Source
  • Gains and profit recognized: The company recognized a $4.5 million gain on the municipal securities and a $4.7 million profit on the Coney Island parcel. Source

SAFE valuation across two quarters

  • Third quarter SAFE loss: The third quarter SAFE mark-to-market adjustment was a non-cash ($53.1) million, reducing earnings per share by ($4.40). Source
  • Stake of about 13.5 million shares: The SAFE investment covers approximately 13.5 million shares, the same share count reported in the second quarter.
  • Direction of SAFE effect reversed: The SAFE adjustment was a gain in the second quarter and a loss in the third quarter, both measured at quarter end. Source

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.