Safehold Valuation Loss Pushes Star Holdings to $3.74 Q3 Loss Per Share

Star Holdings swung to a $3.74-per-share third-quarter loss as a noncash decline in the value of its Safehold Inc. stake more than offset higher revenue and land sales. The results cover the three months ended Sept. 30 and were filed Nov. 6.

The net loss allocable to common shareholders totaled $45.1 million. A year earlier, Star Holdings had income allocable to common shareholders of $1.8 million, or $0.14 per share. Quarterly revenue rose to $39.9 million from $28.1 million in the same period of 2025.

An unrealized loss of $53.1 million on equity investments was the main drag on the latest quarter; the comparable adjustment in 2025 was a $947,000 loss. The noncash markdown reduced per-share results by $4.40 and reflected a quarterly fair-value change in Star Holdings’ Safehold investment. Because that holding is revalued through income each reporting period, the change in its value affected earnings without a sale of the shares.

At the end of September, Star Holdings held about 13.5 million Safehold Inc. shares, representing 19.1% of the company’s outstanding common stock. Safehold’s $11.77 closing share price on Sept. 30 put Star Holdings’ stake at $159.2 million. The broader portfolio also includes interests in Asbury Park Waterfront and Magnolia Green, other commercial real estate and loans.

Land development revenue increased to $21.0 million from $1.7 million in the year-earlier quarter. Star Holdings sold a Coney Island land parcel for $20 million and recorded a $4.7 million profit. It also sold municipal debt securities for $50.2 million, generating a $4.5 million gain.

The Safehold adjustment was an unrealized change in investment value, while the Coney Island parcel and municipal securities were sold during the quarter. Star Holdings still held its Safehold shares at quarter-end. Its margin loan balance fell to $46.5 million from $94.5 million during the quarter.