Star Holdings Shares of Beneficial Interest (STHO)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at Star Holdings, I see a real estate asset story, not a durable franchise. The company owns non-ground lease assets and residential development projects such as Asbury Park Waterfront and Magnolia Green, plus loans and asset management. There is no obvious moat; returns depend on asset sales, development timing, and real estate cycles. The filed record is sobering: in fiscal 2023, the year ended 2023-12-31, net loss was $196.4M and diluted EPS was -$14.74; in fiscal 2024, the year ended 2024-12-31, net loss was $86.8M and EPS was -$6.51; in fiscal 2025, the year ended 2025-12-31, net loss was $64.2M and EPS was -$4.90. In fiscal Q1 2026, the quarter ended 2026-03-31, net loss was $10.3M and EPS was -$0.85. Then in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $19.4M, net income was $41.4M and EPS was $3.43—a dramatic swing that likely reflects non-recurring gains or asset sales rather than steady operations. FairStock's trailing free cash flow is -$30.7M, FCF yield -31.0% on the $98.9M market cap at the 2026-10-13 close, and Altman Z-Score -0.88 signals financial stress. FairStock's ROE is 1.38%, ROCE 1.72%, debt/equity 0.74. Valuation is the attraction: FairStock's P/B 0.35, P/E 6.82, Graham Number $25.09 versus $8.19 price, margin of safety 67.36%, and EV/EBITDA 8.76; Piotroski 6/9. But cheapness here may be a value trap if asset values are uncertain and cash continues to burn. Growth trajectory is not organic: fiscal 2025 revenue was $110.1M, below fiscal 2024 revenue of $113.3M, and fiscal Q2 2026 revenue of $19.4M fell from $42.1M in fiscal Q2 2025, the quarter ended 2025-06-30. I would need evidence that the latest profit is repeatable and asset sales are closing near carrying values.

In plain English: Star Holdings owns and manages real estate, including waterfront and residential development projects and some loans. It has lost money in each of the last four years, with uneven results and cash going out, though the latest filed quarter showed a profit. At the recent price, the shares look cheap compared with the accounting value of its assets, but the weak profit record makes that discount uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer