- Adjusted earnings (loss) allocable to common shareholders for the
first quarter was ($64.0) million, or ($0.61) per diluted common
share. NEW YORK, April 30 /PRNewswire-FirstCall/ -- iStar Financial
Inc. (NYSE: SFI), a leading publicly traded finance company focused
on the commercial real estate industry, today reported results for
the first quarter ended March 31, 2009. iStar reported adjusted
earnings (loss) allocable to common shareholders for the first
quarter of ($64.0) million or ($0.61) per diluted common share,
compared with $116.5 million or $0.86 per diluted common share for
the first quarter 2008. Adjusted earnings (loss) represents net
income computed in accordance with GAAP, adjusted primarily for
preferred dividends, depreciation, depletion, amortization,
impairments of goodwill and intangible assets, and gain (loss) from
discontinued operations. Net income (loss) allocable to common
shareholders for the first quarter was ($93.9) million, or ($0.89)
per diluted common share, compared to $71.6 million or $0.53 per
diluted common share for the first quarter 2008. Please see the
financial tables that follow the text of this press release for a
detailed reconciliation of adjusted earnings to GAAP net income.
Revenues for the first quarter 2009 were $258.4 million versus
$412.3 million for the first quarter 2008. The year-over-year
decrease is primarily due to a reduction of interest income
resulting from an increase in non-performing loans (NPLs) and lower
interest rates, as well as a reduction in other income. Net
investment income for the quarter was $252.0 million compared to
$176.8 million for the first quarter 2008. The year-over-year
increase is primarily due to gains on the early extinguishment of
debt, offset by lower interest income resulting from an increase in
the Company's NPLs. Net investment income represents interest
income, operating lease income, earnings (loss) from equity method
investments and gain on early extinguishment of debt, less interest
expense and operating costs for corporate tenant lease assets.
During the quarter, the Company received $470.0 million in gross
principal repayments. Additionally, the Company generated proceeds
of $265.6 million from loan sales; $32.4 million of net proceeds
from corporate tenant lease (CTL) asset sales; and $73.3 million of
net proceeds from other real estate owned (OREO) asset sales. Of
the gross principal repayments and asset sales, $283.6 million was
utilized to pay down the A-participation interest associated with
the Fremont portfolio. Additionally during the quarter, the Company
funded a total of $391.4 million under pre-existing commitments.
The Company's leverage, calculated as book debt net of unrestricted
cash and cash equivalents, divided by the sum of book equity,
accumulated depreciation and loan loss reserves, each as determined
in accordance with GAAP, was 2.9x at March 31, 2009, versus 3.1x at
December 31, 2008. The Company's net finance margin, calculated as
the rate of return on assets less the cost of debt, was 2.37% for
the quarter, versus 2.15% in the prior quarter. Capital Markets As
of March 31, 2009, the Company had $1.0 billion of unrestricted
cash and available capacity on its credit facilities versus $558.1
million at the end of the prior quarter. The Company is currently
in compliance with all of its bank and bond covenants. The Company
repurchased $286.4 million par value of its senior unsecured notes,
resulting in a net gain on early extinguishment of debt of $154.4
million. In addition, on March 16, 2009, the Company's Board of
Directors approved a new $50 million stock repurchase program,
under which the Company repurchased approximately 3.5 million
shares of its common stock during the quarter. The Company
currently has remaining authority to repurchase up to $42.4 million
of shares under its share repurchase programs. As previously
announced, during the first quarter the Company completed a new
$1.0 billion secured term loan facility and restructured $2.6
billion of its existing unsecured revolving credit facilities. Risk
Management At March 31, 2009, first mortgages, participations in
first mortgages, senior loans and corporate tenant lease
investments collectively comprised 91.7% of the Company's asset
base, versus 91.5% in the prior quarter. The Company's loan
portfolio consisted of 78.5% floating rate loans and 21.5% fixed
rate loans, with a weighted average maturity of 2.2 years. The
weighted average last dollar loan-to-value ratio for all structured
finance assets was 78.1%. At quarter end, the Company's corporate
tenant lease assets were 93.9% leased with a weighted average
remaining lease term of 11.5 years. At March 31, 2009, the weighted
average risk ratings of the Company's structured finance and
corporate tenant lease assets were 3.71 and 2.59, respectively,
versus 3.53 and 2.58, respectively, in the prior quarter. As of
March 31, 2009, 76 of the Company's 322 total loans were on NPL
status. These loans represent $3.9 billion or 32.6% of total
managed loans, compared to 68 loans representing $3.5 billion or
27.5% of total managed loans in the prior quarter. Managed asset
and loan values represent iStar's book value plus the
A-participation interest associated with the Fremont portfolio. The
Company's total managed loan value at quarter end was $12.1
billion. At the end of the first quarter, the Company had 30 loans
on its watch list representing $1.3 billion or 10.7% of total
managed loans, compared to 28 loans representing $1.3 billion or
10.1% of total managed loans in the prior quarter. Assets on the
Company's watch list are all performing loans. At the end of the
first quarter, the Company had 16 assets classified as OREO with a
book value of $233.8 million. During the quarter, the Company took
title to nine properties that served as collateral on its loans
with managed loan value of $117.5 million, resulting in $47.5
million of charge-offs against the Company's reserve for loan
losses. In addition, the Company recorded $6.6 million of non-cash
impairment charges on its OREO portfolio. During the quarter, the
Company charged off $51.0 million against its reserve for losses
associated with loan sales during the quarter. During the quarter,
the Company recorded $14.5 million of non-cash impairment charges
on investments included in its Corporate Loan and Debt portfolio
and Other Investments, and a $4.2 million non-cash impairment
charge to goodwill. During the first quarter, the Company recorded
$258.1 million in loan loss provisions, comprised of $237.5 million
of asset specific provisions and $20.6 million of general
provisions. Provisions in the quarter reflect the continued
deterioration in the overall credit markets and its impact on the
portfolio as determined in the Company's regular quarterly risk
ratings review process following the end of the quarter. At March
31, 2009, the Company had loan loss reserves of $1.1 billion or
9.4% of total managed loans. This compares to loan loss reserves of
$976.8 million or 7.8% of total managed loans at December 31, 2008.
Summary of Fremont Contributions to Quarterly Results At the end of
the first quarter, the Fremont portfolio, including additional
fundings made during the quarter, had a managed loan value of $3.7
billion consisting of 128 loans versus $4.0 billion consisting of
140 loans at the end of the fourth quarter 2008. At the end of the
first quarter, the value of the A-participation interest in the
portfolio was $1.0 billion versus $1.3 billion on December 31,
2008. The book value of iStar's B-participation interest at the end
of the first quarter was $2.7 billion versus $2.7 billion on
December 31, 2008. During the quarter, iStar received $337.0
million in principal repayments and proceeds from loan sales, of
which the Company retained 30%. The balance of principal repayments
was paid to the A-participation interest. The weighted average
maturity of the Fremont portfolio is seven months. During the first
quarter, iStar funded $112.5 million of commitments related to the
portfolio. Unfunded commitments at the end of the first quarter
were $0.5 billion, of which the Company expects to fund
approximately $0.3 billion based upon its comprehensive review of
the portfolio. This compares to unfunded commitments of $0.7
billion at the end of the prior quarter. At March 31, 2009, there
were 43 Fremont loans on NPL status with a managed loan value of
$1.6 billion versus 37 loans at the prior quarter end, with $1.2
billion of managed loan value. In addition, there were 13 Fremont
loans on the Company's watch list with a managed loan value of
$483.8 million versus 18 loans at the prior quarter end, with
$758.6 million of managed loan value. Annual Meeting The Company
will host its Annual Meeting of Shareholders at The Harvard Club of
New York City, located at 35 West 44th Street, New York, New York
10036 on Wednesday, May 27, 2009 at 9:00 a.m. ET. All shareholders
are cordially invited to attend. [Financial Tables to Follow] * * *
iStar Financial Inc. is a leading publicly traded finance company
focused on the commercial real estate industry. The Company
primarily provides custom-tailored investment capital to high-end
private and corporate owners of real estate, including senior and
mezzanine real estate debt, senior and mezzanine corporate capital,
as well as corporate net lease financing and equity. The Company,
which is taxed as a real estate investment trust ("REIT"), seeks to
deliver strong dividends and superior risk-adjusted returns on
equity to shareholders by providing innovative and value added
financing solutions to its customers. iStar Financial will hold a
quarterly earnings conference call at 10:00 a.m. ET today, April
30, 2009. This conference call will be broadcast live over the
Internet and can be accessed by all interested parties through
iStar Financial's website, http://www.istarfinancial.com/, under
the "Investor Relations" section. To listen to the live call,
please go to the website's "Investor Relations" section at least 15
minutes prior to the start of the call to register, download and
install any necessary audio software. For those who are not
available to listen to the live broadcast, a replay will be
available shortly after the call on the iStar Financial website.
(Note: Statements in this press release which are not historical
fact may be deemed forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although iStar Financial Inc.
believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, the Company can
give no assurance that its expectations will be attained. Factors
that could cause actual results to differ materially from iStar
Financial Inc.'s expectations include completion of pending
investments, continued ability to originate new investments, the
mix of originations between structured finance and corporate tenant
lease assets, repayment levels, the timing of receipt of prepayment
penalties, the availability and cost of capital for future
investments, competition within the finance and real estate
industries, economic conditions, loss experience and other risks
detailed from time to time in iStar Financial Inc.'s SEC reports.)
Selected Income Statement Data (In thousands) (unaudited) Three
Months Ended March 31, 2009 2008 -------- ------- Net investment
income (1) $251,958 $176,797 Other income 2,513 58,025 Non-interest
expense (2) (353,506) (159,977) -------- ------- Income (loss) from
continuing operations (99,035) 74,845 Income from discontinued
operations 346 8,128 Gain from discontinued operations 11,617 2,056
Net (income) loss attributable to noncontrolling interests 1,243
(204) Preferred dividends (10,580) (10,580) -------- ------- Net
income (loss) allocable to common shareholders, HPU holders and
Participating Security holders (3) ($96,409) $74,245 ========
======= (1) Includes interest income, operating lease income,
earnings (loss) from equity method investments and gain (loss) on
early extinguishment of debt, less interest expense and operating
costs for corporate tenant lease assets. (2) Includes depreciation
and amortization, general and administrative expenses, provision
for loan losses, impairments and other expenses. (3) HPU holders
are Company employees who purchased high performance common stock
units under the Company's High Performance Unit Program.
Participating Security holders are Company employees and directors
who hold unvested restricted stock units and common stock
equivalents under the Company's Long Term Incentive Plan. Selected
Balance Sheet Data (In thousands) (unaudited) As of As of March 31,
2009 December 31, 2008 -------------- ----------------- Loans and
other lending investments, net $10,182,944 $10,586,644 Corporate
tenant lease assets, net $3,015,009 $3,044,811 Other investments
$417,875 $447,318 Total assets $14,801,097 $15,296,748 Debt
obligations $12,167,539 $12,486,404 Total liabilities $12,448,766
$12,840,896 Total iStar Financial Inc. shareholders' equity
$2,319,036 $2,418,999 iStar Financial Inc. Consolidated Statements
of Operations (In thousands) (unaudited) Three Months Ended March
31, 2009 2008 -------- ------- REVENUES Interest income $177,227
$276,100 Operating lease income 78,650 78,199 Other income 2,513
58,025 -------- ------- Total revenues 258,390 412,324 --------
------- COSTS AND EXPENSES Interest expense 131,165 169,779
Operating costs - corporate tenant lease assets 6,631 5,125
Depreciation and amortization 23,692 23,901 General and
administrative (1) 39,389 42,776 Provision for loan losses 258,096
89,500 Impairment of goodwill 4,186 - Impairment of other assets
21,145 - Other expense 6,998 3,800 -------- ------- Total costs and
expenses 491,302 334,881 -------- ------- Income (loss) from
continuing operations before other items (232,912) 77,443 Gain on
early extinguishment of debt 154,377 - Loss from equity method
investments (20,500) (2,598) -------- ------- Income (loss) from
continuing operations (99,035) 74,845 Income from discontinued
operations 346 8,128 Gain from discontinued operations 11,617 2,056
-------- ------- Net income (loss) (87,072) 85,029 Net (income)
loss attributable to noncontrolling interests 1,243 (204) --------
------- Net income (loss) attributable to iStar Financial Inc.
(85,829) 84,825 Preferred dividend requirements (10,580) (10,580)
-------- ------- Net income (loss) allocable to common
shareholders, HPU holders and Participating Security holders (2)
($96,409) $74,245 ======== ======= (1) For the three months ended
March 31, 2009 and 2008, includes $5,551 and $4,848 of stock-based
compensation expense, respectively. (2) HPU holders are Company
employees who purchased high performance common stock units under
the Company's High Performance Unit Program. Participating Security
holders are Company employees and directors who hold unvested
restricted stock units and common stock equivalents under the
Company's Long Term Incentive Plan. iStar Financial Inc. Earnings
Per Share Information (In thousands, except per share amounts)
(unaudited) ----------- Three Months Ended March 31, 2009 2008 ----
---- EPS INFORMATION FOR COMMON SHARES Income (loss) attributable
to iStar Financial Inc. from continuing operations (1) (2) Basic
($1.00) $0.46 Diluted (3) ($1.00) $0.46 Net income (loss)
attributable to iStar Financial Inc. (1)(4) Basic ($0.89) $0.53
Diluted (3) ($0.89) $0.53 Weighted average shares outstanding Basic
105,606 134,262 Diluted 105,606 134,843 EPS INFORMATION FOR HPU
SHARES Income (loss) attributable to iStar Financial Inc. from
continuing operations (1)(2) Basic ($189.07) $86.87 Diluted (3)
($189.07) $86.47 Net income (loss) attributable to iStar Financial
Inc. (1)(4)(5) Basic ($168.20) $100.94 Diluted (3) ($168.20)
$100.47 Weighted average shares outstanding Basic and diluted 15 15
(1) For the three months ended March 31, 2009 and 2008, excludes
preferred dividends of $10,580. (2) Income (loss) attributable to
iStar Financial Inc. from continuing operations excludes net
(income) loss from noncontrolling interests. (3) For the three
months ended March 31, 2008, includes the allocable share of $1 of
joint venture income. (4) For the three months ended March 31,
2008, net income (loss) attributable to iStar Financial Inc. and
allocable to common shareholders and HPU holders excludes $1,122 of
dividends paid to Participating Securities. (5) For the three
months ended March 31, 2009 and 2008, basic net income (loss)
allocable to HPU holders was ($2,523) and $1,514, respectively. For
the three months ended March 31, 2009 and 2008, diluted net income
(loss) allocable to HPU holders was ($2,523) and $1,507,
respectively. iStar Financial Inc. Reconciliation of Adjusted
Earnings to GAAP Net Income (In thousands, except per share
amounts) (unaudited) Three Months Ended March 31, 2009 2008 -------
------- ADJUSTED EARNINGS (1) Net income (loss) ($87,072) $85,029
Add: Depreciation, depletion and amortization 23,499 27,638 Add:
Joint venture depreciation, depletion and amortization 10,688 8,625
Add: Amortization of deferred financing costs 5,160 9,914 Add:
Impairment of goodwill 4,186 - Less: Hedge ineffectiveness, net -
1,491 Less: Gain from discontinued operations (11,617) (2,056)
Less: Preferred dividends (10,580) (10,580) ------- -------
Adjusted earnings (loss) allocable to common shareholders, HPU
holders and Participating Security holders: Basic ($65,736)
$120,061 Diluted ($65,736) $120,065 Adjusted earnings (loss) per
common share: (2) Basic (3) ($0.61) $0.87 Diluted (4) ($0.61) $0.86
Weighted average common shares outstanding: Basic 105,606 134,262
Diluted 105,606 134,843 Common shares outstanding at end of period:
Basic 102,462 134,406 Diluted 102,462 134,909 (1) Adjusted earnings
should be examined in conjunction with net income as shown in the
Consolidated Statements of Operations. Adjusted earnings should not
be considered as an alternative to net income (determined in
accordance with GAAP) as an indicator of the Company's performance,
or to cash flows from operating activities (determined in
accordance with GAAP) as a measure of the Company's liquidity, nor
is this measure indicative of funds available to fund the Company's
cash needs or available for distribution to shareholders. Rather,
adjusted earnings is an additional measure the Company uses to
analyze how its business is performing. It should be noted that the
Company's manner of calculating adjusted earnings may differ from
the calculations of similarly-titled measures by other companies.
(2) For the three months ended March 31, 2008, excludes $1,122 of
dividends paid to Participating Securities. (3) For the three
months ended March 31, 2009 and 2008, excludes ($1,720) and $2,486
of net income (loss) allocable to HPU holders, respectively. (4)
For the three months ended March 31, 2009 and 2008, excludes
($1,720) and $2,475 of net income (loss) allocable to HPU holders,
respectively. iStar Financial Inc. Consolidated Balance Sheets (In
thousands) (unaudited) As of As of March 31, 2009 December 31, 2008
-------------- ----------------- ASSETS Loans and other lending
investments, net $10,182,944 $10,586,644 Corporate tenant lease
assets, net 3,015,009 3,044,811 Other investments 417,875 447,318
Other real estate owned 233,758 242,505 Cash and cash equivalents
541,289 496,537 Restricted cash 45,737 155,965 Accrued interest and
operating lease income receivable, net 68,325 87,151 Deferred
operating lease income receivable 114,533 116,793 Deferred expenses
and other assets, net 181,627 119,024 ----------- ----------- Total
assets $14,801,097 $15,296,748 =========== =========== LIABILITIES
AND EQUITY Accounts payable, accrued expenses and other liabilities
$281,227 $354,492 Debt obligations: Unsecured senior notes
6,519,055 7,188,541 Unsecured revolving credit facilities 737,309
3,281,273 Secured credit facility 1,166,635 306,867 Secured term
loans 3,646,458 1,611,650 Other debt obligations 98,082 98,073
----------- ----------- Total liabilities 12,448,766 12,840,896
Redeemable noncontrolling interests 7,448 9,190 Total iStar
Financial Inc. shareholders' equity 2,319,036 2,418,999
Noncontrolling interests 25,847 27,663 ----------- -----------
Total Equity 2,344,883 2,446,662 ----------- ----------- Total
liabilities and equity $14,801,097 $15,296,748 ===========
=========== iStar Financial Inc. Supplemental Information (In
thousands) (unaudited) PERFORMANCE STATISTICS Three Months Ended
March 31, 2009 -------------- Net Finance Margin ------------------
Weighted average GAAP yield on loan and CTL investments 6.83% Less:
Cost of debt 4.46% ---------- Net Finance Margin (1) 2.37% Return
on Average Common Book Equity ------------------------------------
Average total book equity $2,369,018 Less: Average book value of
preferred equity (506,176) ---------- Average common book equity
(A) $1,862,842 Net income (loss) allocable to common shareholders,
HPU holders and Participating Security holders ($96,409) Net income
(loss) allocable to common shareholders, HPU holders and
Participating Security holders - Annualized (B) ($385,636) Return
on Average Common Book Equity (B) / (A) (20.7%) Adjusted basic
earnings (loss) allocable to common shareholders and HPU holders
and Participating Security holders (2) ($65,736) Adjusted basic
earnings (loss) allocable to common shareholders and HPU holders
and Participating Security holders - Annualized (C) ($262,944)
Adjusted Return on Average Common Book Equity (C) / (A) (14.1%)
Expense Ratio ------------- General and administrative expenses (3)
(D) $39,422 Total revenue (3) (E) $258,881 Expense Ratio (D) / (E)
15.2% (1) Weighted average GAAP yield is the annualized sum of
interest income and operating lease income, divided by the sum of
average gross corporate tenant lease assets, average loans and
other lending investments, average SFAS No. 141 purchase
intangibles and average assets held for sale over the period. Cost
of debt is the annualized sum of interest expense and operating
costs-corporate tenant lease assets, divided by the average gross
debt obligations over the period. Operating lease income and
operating costs-corporate tenant lease assets exclude SFAS No. 144
adjustments from discontinued operations of $490 and $44,
respectively. The Company does not consider net finance margin to
be a measure of the Company's liquidity or cash flows. It is one of
several measures that management considers to be an indicator of
the profitability of its operations. (2) Adjusted earnings should
be examined in conjunction with net income (loss) as shown in the
Consolidated Statements of Operations. Adjusted earnings should not
be considered as an alternative to net income (loss) (determined in
accordance with GAAP) as an indicator of the Company's performance,
or to cash flows from operating activities (determined in
accordance with GAAP) as a measure of the Company's liquidity, nor
is this measure indicative of funds available to fund the Company's
cash needs or available for distribution to shareholders. Rather,
adjusted earnings is an additional measure the Company uses to
analyze how its business is performing. It should be noted that the
Company's manner of calculating adjusted earnings may differ from
the calculations of similarly-titled measures by other companies.
(3) Total revenue and general and administrative expenses exclude
SFAS No. 144 adjustments from discontinued operations of $491 and
$33, respectively. iStar Financial Inc. Supplemental Information
(In thousands) (unaudited) CREDIT STATISTICS Three Months Ended
March 31, 2009 -------------- Book debt, net of unrestricted cash
and cash equivalents (A) $11,626,250 Book equity 2,344,883 Add:
Accumulated depreciation and loan loss reserves 1,642,287 ---------
Sum of book equity, accumulated depreciation and loan loss reserves
(B) $3,987,170 Leverage (1) (A) / (B) 2.9x Ratio of Earnings (Loss)
to Fixed Charges 0.5x Ratio of Earnings (Loss) to Fixed Charges and
Preferred Stock Dividends 0.5x Covenant Calculation of Fixed Charge
Coverage Ratio (2) 2.8x Interest Coverage ----------------- EBITDA
(3) (C) $67,700 GAAP interest expense and preferred dividends (D)
141,745 EBITDA / GAAP Interest Expense (3) (C) / (D) 0.5x
RECONCILIATION OF NET INCOME TO EBITDA (3) Net income (loss) less
preferred dividends ($97,652) Add: GAAP interest expense 131,165
Add: Depreciation, depletion and amortization 23,499 Add: Joint
venture depreciation, depletion and amortization 10,688 ---------
EBITDA (3) $67,700 (1) Leverage is calculated by dividing book debt
net of unrestricted cash and cash equivalents by the sum of book
equity, accumulated depreciation and loan loss reserves. (2) This
measure, which is a trailing twelve-month calculation and excludes
the effect of impairment charges and other non-cash items, is
consistent with covenant calculations included in the Company's
recently secured credit facilities; therefore, we believe it is a
useful measure for investors to consider. (3) EBITDA should be
examined in conjunction with net income (loss) as shown in the
Consolidated Statements of Operations. EBITDA should not be
considered as an alternative to net income (loss) (determined in
accordance with GAAP) as an indicator of the Company's performance,
or to cash flows from operating activities (determined in
accordance with GAAP) as a measure of the Company's liquidity, nor
is this measure indicative of funds available to fund the Company's
cash needs or available for distribution to shareholders. It should
be noted that the Company's manner of calculating EBITDA may differ
from the calculations of similarly-titled measures by other
companies. iStar Financial Inc. Supplemental Information (In
thousands) (unaudited) FINANCING VOLUME SUMMARY STATISTICS Three
Months Ended March 31, 2009 LOANS ------------------------------
Total/ CORPORATE Floating Weighted TENANT OTHER Fixed Rate Rate
Average LEASING INVESTMENTS ---------- -------- -------- ---------
----------- Amount funded $11,291 $361,760 $373,051 $7,494 $10,880
Weighted average GAAP yield 6.22% 6.83% 6.81% 11.72% N/A Weighted
average all-in spread/ margin (basis points) (1) 492 604 602 N/A
N/A Weighted average first $ loan-to- value ratio 38.13% 1.34%
2.38% N/A N/A Weighted average last $ loan-to- value ratio 76.15%
78.85% 78.77% N/A N/A UNFUNDED COMMITMENTS Number of assets with
unfunded commitments 176 Discretionary commitments $146,940
Non-discretionary commitments 1,792,817 --------- Total unfunded
commitments $1,939,757 Estimated weighted average funding period
Approximately 2.2 years UNENCUMBERED ASSETS / UNSECURED DEBT
Unencumbered assets (A) $9,519,492 Unsecured debt (B) $7,398,496
Unencumbered Assets / Unsecured Debt (A) / (B) 1.3x RISK MANAGEMENT
STATISTICS (weighted average risk rating) 2009 2008 ---------
--------------------------------------------- March 31, December
31, September 30, June 30, March 31, --------- ------------
------------- -------- --------- Structured Finance Assets
(principal risk) 3.71 3.53 3.41 3.28 3.12 Corporate Tenant Lease
Assets 2.59 2.58 2.55 2.55 2.51 (1=lowest risk; 5=highest risk) (1)
Represents spread over base rate LIBOR (floating-rate loans) and
interpolated U.S. Treasury rates (fixed-rate loans) during the
quarter. iStar Financial Inc. Supplemental Information (In
thousands, except per share amounts) (unaudited) LOANS AND OTHER
LENDING INVESTMENTS CREDIT STATISTICS As of
---------------------------------- March 31, 2009 December 31, 2008
-------------- ----------------- Value of non-performing loans (1)
/ As a percentage of total managed loans $3,930,310 32.56%
$3,458,157 27.48% Reserve for loan losses / As a percentage of
total managed loans $1,136,349 9.41% $976,788 7.76% As a percentage
of non-performing loans (1) 28.91% 28.25% (1) Non-performing loans
include iStar's book value and Fremont's A-participation interest
on the associated assets. iStar Financial Inc. Supplemental
Information (In millions) (unaudited) PORTFOLIO STATISTICS AS OF
MARCH 31, 2009 Asset Type ---------- First Mortgages / Senior Loans
$10,456 68.3% Corporate Tenant Leases 3,582 23.4 Mezzanine /
Subordinated Debt 863 5.6 Other Investments 406 2.7 ------- -----
Total $15,307 100.0% ======= ===== Property / Collateral Type
-------------------------- Apartment / Residential $4,278 27.9%
Land 2,348 15.3 Office 1,925 12.6 Industrial / R&D 1,452 9.5
Retail 1,178 7.7 Entertainment / Leisure 922 6.0 Corporate - Real
Estate 865 5.7 Hotel 826 5.4 Mixed Use / Mixed Collateral 669 4.4
Other 543 3.5 Corporate - Non-Real Estate 301 2.0 ------- -----
Total $15,307 100.0% ======= ===== Geography --------- West $3,528
23.0% Northeast 2,874 18.8 Southeast 2,532 16.5 Mid-Atlantic 1,632
10.7 Central 934 6.1 Southwest 885 5.8 Various 807 5.3
International 768 5.0 South 513 3.3 Northcentral 440 2.9 Northwest
394 2.6 ------- ----- Total $15,307 100.0% ======= ===== (1) Based
on gross carrying value of the Company's total investment
portfolio. DATASOURCE: iStar Financial Inc. CONTACT: James D.
Burns, Chief Financial Officer, or Andrew G. Backman, Senior Vice
President - Investor Relations, both of iStar Financial Inc.,
+1-212-930-9400 Web Site: http://www.istarfinancial.com/
Copyright