Star Holdings Reports a $3.74-Per-Share Loss in Third Quarter After Revaluing Investment
Key Facts
Star Holdings reported a loss attributable to common stockholders of $45.1 million, or $3.74 per share, in the third quarter of 2026, according to the company’s disclosure attached to a Form 8-K filed with the U.S. Securities and Exchange Commission. The result followed a negative impact on its accounts at quarter-end from the valuation of the company’s Safehold holding. The company said the revaluation resulted in a non-cash loss adjustment of $53.1 million. The adjustment reduced earnings per share by $4.40, according to the disclosure. Star Holdings held about 13.5 million Safehold shares, and the adjustment was based on the market valuation at quarter-end.
The result contrasted with the third quarter of 2025, when the company posted net income attributable to common stockholders of $1.8 million, or $0.14 per share. It also followed earnings of $3.43 per share in the second quarter of 2026, with net income of $41.4 million. The second-quarter disclosure said the result included a non-cash adjustment of $29.3 million that increased earnings per share by $2.43. The comparison across periods highlights the effect of the investment revaluation on reported earnings from one quarter to the next. In the third quarter, the impact of the adjustment related to the Safehold holding was negative, after the adjustment cited in the second-quarter results had a positive impact.
The company recorded gains from asset sales during the third quarter. It sold a municipal bond portfolio for $50.2 million, booking a gain of $4.5 million. It also sold a parcel of land on Coney Island for $20 million, recording a gain of $4.7 million. These transactions added cash proceeds and realized gains to the period’s results, while the overall result remained a reported loss. The disclosure did not say that the sale gains fully offset the non-cash impact of the Safehold investment adjustment. This distinguishes gains realized from asset-sale transactions from the revaluation of the investment holding at quarter-end.
Star Holdings voluntarily reduced its outstanding margin loan balance during the quarter, from $94.5 million to $46.5 million, according to the disclosure. This means the facility balance after repayment was below its previous level during the same period. The company cited the repayment alongside the bond and land sales in its account of third-quarter activity. The move comes as it manages a portfolio that includes investments, real estate assets and loans available for sale or liquidation. The disclosure, in the available facts, does not specify how much of the asset-sale proceeds funded the repayment, so the two transactions cannot be directly linked.
The company’s portfolio includes interests in Asbury Park’s waterfront and the Magnolia Green residential developments, as well as commercial properties, loans available for sale or liquidation and shares in Safehold, according to its disclosure. Star Holdings said it expects to focus on creating value for shareholders from its portfolio, primarily by maximizing cash flows through active asset management and sales. This approach places the third-quarter sales and margin-loan reduction within the asset-management strategy the company has announced. The Safehold holding, according to the disclosure, remains part of the portfolio whose market valuation affected the quarter’s result. STHO closed at $7.57 on November 5, 2026, and at $7.54 on November 6, according to EL7 data.