Demo
STHO Nasdaq· Star Holdings
FundamentalsNews digest Peer analysis
Login
STHO Nasdaq· Star Holdings
Earnings report Q3 2023

Star Holdings Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

Star Holdings reported total revenues of $43.57 million for the three months ended September 30, 2023. This represents a decrease compared to the same period last year when the company generated $38.41 million in revenues. The breakdown of the different segment revenues is as follows:

  • Operating lease income: $1.87 million
  • Interest income: $0.24 million
  • Other income: $16.63 million
  • Land development revenue: $24.84 million

Strengths

Despite the overall decrease in revenue, Star Holdings saw an increase in land development revenue, which reached $24.84 million for the quarter. This represents a significant growth compared to the previous year's quarter, where land development revenue was $15.09 million. Management attributes this increase to successful land development projects and favorable market conditions.

Challenges

The company faced challenges in its interest income and real estate expense. Interest income decreased from $2.09 million in the previous year's quarter to $0.24 million in the current quarter. This decline can be attributed to lower interest rates and a decrease in interest-earning assets. Additionally, real estate expense remained relatively high at $14.01 million, contributing to the overall decrease in revenue.

Noteworthy

It is worth noting that Star Holdings reported a net loss of $81.76 million for the quarter, compared to a net income of $17.57 million in the same period last year. This significant decrease in profitability can be attributed to various factors, including higher interest expenses, impairment of assets, and a provision for loan losses.

Summary

Star Holdings experienced a decrease in revenue for the latest quarter, primarily driven by lower interest income and higher real estate expenses. However, the company saw growth in land development revenue, indicating successful projects and favorable market conditions. Despite the decline in revenue, it is important to consider the overall net loss reported by the company, which highlights the challenges faced in profitability.

Source documents

Form 10-Q  filed on Nov 08, 2023
3 pages scanned

Reference data

Company financials Q3 revenue 37.2M
Analyst estimates Q3 EPS missed by NaN%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.