{"id":10744,"date":"2024-02-19T19:37:57","date_gmt":"2024-02-20T01:37:57","guid":{"rendered":"https:\/\/1reason.com\/re\/star-equity-holdings-announces-5-9-million-sale-leaseback-transaction\/10744\/"},"modified":"2024-02-20T13:37:57","modified_gmt":"2024-02-20T19:37:57","slug":"star-equity-holdings-announces-5-9-million-sale-leaseback-transaction","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/star-equity-holdings-announces-5-9-million-sale-leaseback-transaction\/10744\/","title":{"rendered":"Star Equity Holdings Announces $5.9 Million Sale-Leaseback Transaction"},"content":{"rendered":"
(\u201cSRE\u201d), the real estate arm of the Company\u2019s Investments division, has entered into a sale-leaseback agreement for its South Paris, Maine facility. This facility will continue to be used by KBS Builders, Inc., Star\u2019s wholly owned modular manufacturing business (\u201cKBS\u201d). The transaction is subject to customary due diligence and is expected to close in the first quarter of 2024. <\/p>\n

Under the terms of the transaction, SRE will sell its South Paris facility for $5.935 million and, simultaneously, a Company wholly owned subsidiary will enter into a 20-year lease agreement, with the right to extend for up to an additional 20 years. Following the closing of the transaction, KBS will continue to operate the South Paris facility pursuant to the lease, and the transaction will have no impact on KBS\u2019s operations.<\/p>\n

\u201cWe are excited to announce this value-unlocking transaction for Star,\u201d said David Noble, Star\u2019s CFO. \u201cMarket conditions presented us the opportunity to realize an attractive value for our South Paris facility at a reasonable cost of capital. Due to our strong balance sheet and healthy cash position, we are well positioned to fund our growth strategy and redeploy our available cash into EBITDA-generating assets, including acquisitions. Over time, we may pursue similar transactions as we look to optimize Star\u2019s asset portfolio and cost of capital.\u201d<\/p>\n

About Star Equity Holdings, Inc.<\/u><\/strong><\/p>\n

Star Equity Holdings, Inc. is a diversified holding company currently composed of two divisions: Construction and Investments.<\/p>\n

Construction<\/u><\/strong><\/p>\n

Our Construction division manufactures modular housing units for commercial and residential real estate projects and operates in two businesses: (i) modular building manufacturing and (ii) structural wall panel and wood foundation manufacturing, including building supply distribution operations for professional builders.<\/p>\n

Investments<\/u><\/strong><\/p>\n

Our Investments division manages and finances the Company\u2019s real estate assets as well as its investment positions in private and public companies.<\/p>\n

Forward-Looking Statements<\/u><\/strong><\/p>\n

\u201cSafe Harbor\u201d Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release that are not statements of historical fact are hereby identified as \u201cforward-looking statements\u201d for the purpose of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking Statements include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to acquisitions and related integration, development of commercially viable products, novel technologies, and modern applicable services, (ii) projections of income (including income\/loss), EBITDA, earnings (including earnings\/loss) per share, free cash flow (FCF), capital expenditures, cost reductions, capital structure or other financial items, (iii) the future financial performance of the Company or acquisition targets and (iv) the assumptions underlying or relating to any statement described above. Moreover, forward-looking statements necessarily involve assumptions on the Company\u2019s part. These forward-looking statements generally are identified by the words \u201cbelieve\u201d, \u201cexpect\u201d, \u201canticipate\u201d, \u201cestimate\u201d, \u201cproject\u201d, \u201cintend\u201d, \u201cplan\u201d, \u201cshould\u201d, \u201cmay\u201d, \u201cwill\u201d, \u201cwould\u201d, \u201cwill be\u201d, \u201cwill continue\u201d or similar expressions. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events, or circumstances and may not be realized because they are based upon the Company’s current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described above as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the substantial amount of debt of the Company and the Company\u2019s ability to repay or refinance it or incur additional debt in the future; the Company\u2019s need for a significant amount of cash to service and repay the debt and to pay dividends on the Company\u2019s preferred stock; the restrictions contained in the debt agreements that limit the discretion of management in operating the business; legal, regulatory, political and economic risks in markets and public health crises that reduce economic activity and cause restrictions on operations (including the recent coronavirus COVID-19 outbreak); the length of time associated with servicing customers; losses of significant contracts or failure to get potential contracts being discussed; disruptions in the relationship with third party vendors; accounts receivable turnover; insufficient cash flows and resulting lack of liquidity; the Company’s inability to expand the Company’s business; unfavorable changes in the extensive governmental legislation and regulations governing healthcare providers and the provision of healthcare services and the competitive impact of such changes (including unfavorable changes to reimbursement policies); high costs of regulatory compliance; the liability and compliance costs regarding environmental regulations; the underlying condition of the technology support industry; the lack of product diversification; development and introduction of new technologies and intense competition in the healthcare industry; existing or increased competition; risks to the price and volatility of the Company\u2019s common stock and preferred stock; stock volatility and in liquidity; risks to preferred stockholders of not receiving dividends and risks to the Company\u2019s ability to pursue growth opportunities if the Company continues to pay dividends according to the terms of the Company\u2019s preferred stock; the Company\u2019s ability to execute on its business strategy (including any cost reduction plans); the Company\u2019s failure to realize expected benefits of restructuring and cost-cutting actions; the Company\u2019s ability to preserve and monetize its net operating losses; risks associated with the Company\u2019s possible pursuit of acquisitions; the Company\u2019s ability to consummate successful acquisitions and execute related integration, as well as factors related to the Company\u2019s business including economic and financial market conditions generally and economic conditions in the Company\u2019s markets; failure to keep pace with evolving technologies and difficulties integrating technologies; system failures; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; and the continued demand for and market acceptance of the Company\u2019s services. For a detailed discussion of cautionary statements and risks that may affect the Company\u2019s future results of operations and financial results, please refer to the Company\u2019s filings with the Securities and Exchange Commission, including, but not limited to, the risk factors in the Company\u2019s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. This release reflects management\u2019s views as of the date presented.<\/p>\n

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.<\/p>\n\n\n\n\n\n\n\n\n
For more information contact:<\/strong><\/td>\n\n<\/tr>\n
Star Equity Holdings, Inc.<\/td>\nThe Equity Group<\/td>\n<\/tr>\n
David Noble<\/td>\nLena Cati<\/td>\n<\/tr>\n
\n\n<\/tr>\n
CFO<\/td>\nSenior Vice President<\/td>\n<\/tr>\n
203-489-9502<\/td>\n212-836-9611<\/td>\n<\/tr>\n
admin@starequity.com<\/u><\/td>\nlcati@equityny.com<\/u><\/td>\n<\/tr>\n<\/table>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

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OLD GREENWICH, Conn., Jan. 25, 2024 (GLOBE NEWSWIRE) — Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) (\u201cStar\u201d or the \u201cCompany\u201d), a diversified holding company, announced today that Star Real Estate Holdings USA, Inc.<\/p>\n<\/div>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/10744"}],"collection":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/comments?post=10744"}],"version-history":[{"count":1,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/10744\/revisions"}],"predecessor-version":[{"id":10754,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/10744\/revisions\/10754"}],"wp:attachment":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/media?parent=10744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/categories?post=10744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/tags?post=10744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}