Star Holdings

What they do

Star Holdings operates as one segment focused on realizing value from legacy iStar assets through active asset management and sales of loans, operating properties, and land and development properties. Its portfolio centers on the Asbury Park Waterfront joint venture, the Magnolia Green residential development, and a monetizing portfolio of loans and other assets. It also holds approximately 13.5 million shares of Safehold Inc. (SAFE). The company is externally managed by a wholly-owned subsidiary of Safe.

Revenue drivers

• Asbury Park Waterfront — Joint venture development and operating assets including the Asbury Ocean Club, The Asbury hotel, and Asbury Lanes; carrying value was $120.9 million as of June 30, 2026. All 130 residential condominium units at Asbury Ocean Club have been sold as of that date.
• Magnolia Green — Approximately 1,900-acre master planned residential community near Richmond, Virginia entitled for 3,550 dwelling units; carrying value was $33.0 million as of June 30, 2026, with 2,240 residential lots sold to homebuilders to date.
• Monetizing portfolio — Loans and other lending investments, operating properties, land, and other assets slated for sale or repayment; aggregate carrying value was approximately $77.0 million as of June 30, 2026.
• Safehold shares — Holding of approximately 13.5 million SAFE shares, subject to mark-to-market adjustments; a $29.3 million non-cash gain was recognized in Q2 2026.

Recent performance

Second quarter 2026 net income attributable to common shareholders was $41.4 million, or $3.43 per share, per the August 7, 2026 earnings release. That result included a $29.3 million non-cash mark-to-market gain on the SAFE shares, which added $2.43 per share, and $14.4 million ($1.19 per share) of deferred non-cash income from surrendering an asset to a local municipality after a lease expired. Quarterly revenue declined across the trailing four quarters, from $28.1 million in 2025-09-30 to $19.4 million in 2026-06-30. Annual revenue has fallen from $272.2M in 2021 to $110.1M in 2025, and net income has been negative each year since 2022.

Strategy

Management states the company focuses on realizing value for shareholders primarily by generating cash flows through active asset management and sales of its existing loans, operating properties, and land and development properties. For Asbury Park Waterfront, the stated strategy is to actively asset manage operating assets and strategically monetize remaining development sites and operating assets through sales to third-party developers and operators while meeting redevelopment agreement obligations with the city of Asbury Park. For Magnolia Green, the company anticipates selling remaining residential lots to homebuilders over the next two years, with the golf course sold after residential lot sellout. The monetizing portfolio is expected to be monetized through asset sales, loan repayments, or active asset management.

Risks

• Macroeconomic and real estate market conditions — Weak economic conditions, inflation, higher interest rates, or tighter credit markets could lower occupancy, demand, rental rates, and asset values across the portfolio and reduce proceeds from asset sales.
• Development and monetization execution — The company's results depend on completing lot sales at Magnolia Green and monetizing Asbury Park and other assets at attractive prices, and it states sales may take substantially longer than expected or may not be completed.
• External management and Safe relationship — Star Holdings is externally managed by a wholly-owned subsidiary of Safe and has a Safe Credit Facility and other agreements with Safe, creating dependence on and related-party exposure to Safe.
• Safehold share price exposure — The company holds approximately 13.5 million SAFE shares whose value can fluctuate and drive non-cash earnings volatility, as seen in the $29.3 million Q2 2026 mark-to-market gain.

Outlook

Management expects to sell Magnolia Green's remaining residential lots either upon completion of horizontal lot development or in bulk as unimproved lots, with sales anticipated over the next two years, though it cautions this could take substantially longer. The golf course operations are expected to be sold after residential lot sellout. The company continues to pursue monetization of its Asbury Park operating assets and development sites and its other monetizing portfolio through sales, loan repayments, or asset management. No assurance is given that these sales will be completed.