Safehold valuation weighs on the reported loss
Star Holdings reported a third-quarter net loss attributable to common shareholders of $45.1 million, or $3.74 per share, in its November 6 announcement.
The result includes a $53.1 million non-cash adjustment to its investment in approximately 13.5 million Safehold shares, marked to market at quarter-end. The company said that adjustment reduced earnings per share by $4.40. It is a valuation charge, rather than a cash payment of the same amount.
Asset sales produce realized gains
During the quarter, Star sold its municipal debt securities portfolio for $50.2 million and realized a $4.5 million gain. It also sold a Coney Island land parcel for $20 million, recognizing a $4.7 million profit.
Those sale prices are distinct from the gains recognized on the transactions. The realized gains also differ from the non-cash market-value adjustment on the retained Safehold investment.
Borrowing falls as the asset portfolio is reduced
Star said it voluntarily reduced the outstanding balance on its margin loan facility from $94.5 million to $46.5 million during the quarter. The announcement does not attribute every dollar of that reduction to a particular sale.
The company points readers to its newly filed September-quarter Form 10-Q for further detail on its assets and operations. Its portfolio includes real-estate interests and loans being marketed or otherwise intended for monetization, as well as the Safehold shareholding.
