Key Highlights

  • Net loss attributable to common shareholders was $45.1 million, or $3.74 per share, for the third quarter of 2026.
  • A non-cash mark-to-market adjustment of $53.1 million reduced per-share results by $4.40.
  • The company sold a Coney Island land parcel for $20.0 million, with a profit of $4.7 million.
  • The Margin Loan balance was reduced from $94.5 million to $46.5 million.

Star Holdings (NASDAQ:STHO) reported third-quarter 2026 results after filing its Quarterly Report on Form 10-Q for the period ended September 30, 2026. The New York based company posted a net loss attributable to common shareholders, driven largely by a non-cash adjustment linked to its holding of shares in Safehold, which trades under the ticker SAFE.

The Non-Cash Loss on the SAFE Investment

Net loss attributable to common shareholders for the quarter was $45.1 million, or $3.74 per share. The company stated that the result reflected a non-cash adjustment of $53.1 million, which decreased Earnings Per Share by $4.40. The adjustment relates to Star Holdings' Investment in approximately 13.5 million shares of SAFE, which the company values at quarter-end market prices.

Because the loss is based on a mark-to-market measure, it reflects movements in the share price of SAFE at the end of the quarter rather than cash flowing out of the business.

Asset Sales and Debt Reduction

During the third quarter, Star Holdings sold its portfolio of municipal debt securities for $50.2 million, realizing a gain of $4.5 million. It also sold a land parcel in Coney Island for $20.0 million and recognized a profit of $4.7 million on that sale. The company used part of its resources to reduce the outstanding balance on its margin loan Facility from $94.5 million to $46.5 million.

These transactions reduced the company's exposure to some Assets and liabilities.

Financial Filings and Context

Star Holdings said further details on its results, assets and activities are available in its Form 10-Q, which is posted on the company's website and in the SEC's EDGAR database. The company describes its portfolio as comprising primarily investments in SAFE shares, along with real estate and other holdings.

The third-quarter loss includes a combination of non-cash investment losses and cash gains from property and securities sales.

Star Holdings' investment in SAFE shares is a large part of its reported position. Because gains and losses on that holding are recorded through the mark-to-market adjustment, the SAFE share price at the end of each quarter has a direct effect on reported Net Income and per-share results. The company's Form 10-Q sets out how the investment is recorded and how it is valued.

Margin loans are borrowings secured by securities held in an account. Reducing the margin loan balance from $94.5 million to $46.5 million lowers the amount of debt secured against the company's investments.

Star Holdings' portfolio combines investments in securities with real estate holdings, and the company's quarter included transactions across both categories. Selling municipal debt securities and a land parcel in Coney Island converted parts of the portfolio into cash, which the company then applied in part to reducing its margin loan.

Because the company's loss is driven by a mark-to-market adjustment, the net loss figure may not reflect the cash generated by the quarter's asset sales.

Star Holdings' results reflect two opposing movements. The SAFE holding recorded a sharp decline in Market Value at the end of the quarter, which drove the bulk of the loss, while the sales of municipal debt and the Coney Island parcel moved part of the portfolio into cash. The margin loan paydown then reduced borrowing secured against the company's securities, shifting the Balance Sheet toward lower leverage.

Star Holdings holds a portfolio that includes SAFE shares, land and securities. Its ownership of SAFE shares links its reported results to the Market Price of that stock, which adds market-driven swings to earnings from one quarter to the next.

Final Word

Star Holdings' third-quarter results were shaped by a sharp non-cash decline tied to its SAFE investment, despite realized gains from municipal debt and Coney Island land sales. The margin loan repayment reduced the company's borrowing. The next filing will show how the SAFE holding and the remaining real estate assets are valued and managed going forward.