iStar Financial Announces Second Quarter 2007 Results
- Adjusted earnings per diluted common share up 12% year-over-year to $1.02.
- New financing commitments totaled $1.8 billion in 36 separate transactions.
- Total revenues reached a record $317.3 million, up 33% year-over-year.
- Subsequent to quarter end, the Company closed on its previously announced acquisition of the commercial real estate lending business from Fremont Investment & Loan.
- Company increases fiscal year 2007 guidance for adjusted earnings per diluted common share to $4.00 - $4.20 and diluted GAAP earnings per common share to $2.90 - $3.10.
NEW YORK, July 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 second quarter ended June 30, 2007. Second quarter results do not reflect the impact of the Fremont transaction, which closed subsequent to the end of the quarter.
iStar reported adjusted earnings for the quarter of $1.02 per diluted common share. This compares with $0.91 per diluted common share for the second quarter 2006. Adjusted earnings allocable to common shareholders for the second quarter 2007 were $130.1 million on a diluted basis, compared to $103.9 million for the second quarter 2006. Adjusted earnings represent net income computed in accordance with GAAP, adjusted for preferred dividends, depreciation, depletion, amortization and gain (loss) from discontinued operations.
Net income allocable to common shareholders for the second quarter was $96.3 million, or $0.75 per diluted common share, compared to $78.0 million, or $0.68 per diluted common share for the second quarter 2006. Please see the financial tables that follow the text of this press release for a detailed reconciliation of adjusted earnings to GAAP net income.
Net investment income for the quarter was $131.8 million, compared to $105.2 million for the second quarter 2006. The year-over-year increase in net investment income was primarily due to continued growth of the Company's loan portfolio. Net investment income represents interest income, operating lease income and equity in earnings (loss) from joint ventures, less interest expense, operating costs for corporate tenant lease assets and loss on early extinguishment of debt.
The Company announced that during the second quarter, it closed 36 new financing commitments, for a total of $1.8 billion. Of that amount, $904.6 million was funded during the second quarter. In addition, the Company funded $381.4 million under pre-existing commitments and received $1.05 billion in principal repayments. Cumulative repeat customer business totaled $14.1 billion at June 30, 2007.
Additionally, the Company completed the sale of four non-strategic corporate tenant lease facilities for total proceeds of $29.8 million, net of costs, resulting in a total net book gain of approximately $5.4 million.
For the quarter ended June 30, 2007, the Company generated adjusted return on average common book equity of 20.7%. The Company's debt to book equity plus accumulated depreciation/depletion and loan loss reserves, all as determined in accordance with GAAP, was 2.5x at quarter end.
The Company's net finance margin, calculated as the rate of return on assets less the cost of debt, was 3.22% for the quarter, essentially in-line with the previous quarter.
On July 2, 2007, the Company announced that it had completed its transaction with Fremont Investment & Loan, a subsidiary of Fremont General Corporation, in which the Company acquired Fremont's commercial real estate lending business and retained a 30 percent participation interest in its commercial real estate loan assets for an aggregate purchase price of approximately $1.9 billion.
Capital Markets Summary
During the second quarter, the Company entered into a new five-year, $1.2 billion unsecured revolving credit agreement that carries an interest rate of LIBOR + 0.525%. This facility will serve as additional capacity to iStar's existing $2.2 billion unsecured revolving credit facility, which also carries an interest rate of LIBOR + 0.525%.
As of June 30, 2007, the Company had $1.3 billion outstanding under $3.9 billion in revolving credit facilities. Consistent with its match funding policy under which a one percentage point change in interest rates cannot impact adjusted earnings by more than 2.5%, as of June 30, 2007, a one percentage point increase in rates would have increased the Company's adjusted earnings by 2.16%.
During the second quarter, iStar also closed on a 364-day $2 billion interim financing facility to fund the acquisition of the commercial real estate lending business and existing portfolio from Fremont Investment & Loan. The Company said that it expects to repay the interim facility through debt and equity issuances. The timing of any debt or equity issuance will be predicated on market conditions.
Risk Management
At June 30, 2007, first mortgages, participations in first mortgages, senior loans and corporate tenant lease investments collectively comprised 83.6% of the Company's asset base, versus 81.4% in the prior quarter. The Company's loan portfolio consisted of 72% floating rate and 28% fixed rate loans, with a weighted average maturity of 3.8 years. The weighted average last dollar loan-to-value ratio for all structured finance assets was 65.0%. At quarter end, the Company's corporate tenant lease assets were 95.0% leased with a weighted average remaining lease term of 11.0 years. At June 30, 2007, the weighted average risk ratings of the Company's structured finance and corporate tenant lease assets were 2.78 and 2.50, respectively.
At June 30, 2007, watch list assets represented 1.45% of total assets versus 1.27% in the prior quarter. During the second quarter, four assets were moved from the watch list to non-performing loan (NPL) status and four assets were added to the watch list.
At June 30, 2007, the Company had seven loans on NPL status, representing 1.73% of total assets. The Company's policy is to stop the accrual of interest on loans placed on NPL status. The Company believes it has adequate collateral to support the book value for each of the watch list and NPL assets. The Company had $62.2 million in loan loss reserves at June 30, 2007 versus $52.2 million at December 31, 2006.
Earnings Guidance
Consistent with the Securities and Exchange Commission's Regulation FD and Regulation G, iStar Financial comments on earnings expectations within the context of its regular earnings press releases. The Company is increasing its expectations for diluted adjusted earnings per common share for the fiscal year 2007 to $4.00 - $4.20, and diluted GAAP earnings per common share for the fiscal year 2007 to $2.90 - $3.10. The Company forecasts annual net asset growth of approximately $6.0 billion, including the Company's retained interest in the Fremont portfolio which has an approximate book value of $1.9 billion as of June 30, 2007. Excluding the Fremont interest, net asset growth for the fiscal year 2007 is expected to be approximately $4.0 billion. The Company continues to expect to fund its long-term net asset growth with a combination of unsecured debt and equity.
Dividend
On July 2, 2007, iStar Financial declared a regular quarterly dividend of $0.825. The second quarter dividend will be payable on July 30, 2007 to shareholders of record on July 16, 2007.
[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. EDT today, July 30, 2007. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through iStar Financial's website, 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 Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Net investment income (1) $131,838 $105,154 $257,321 $214,262
Other income 38,801 21,676 67,276 35,145
Other expenses (2) (67,250) (41,301) (129,841) (80,058)
Minority interest in consolidated
entities 15 (821) 579 (1,069)
Income from continuing operations $103,404 $84,708 $195,335 $168,280
Income from discontinued
operations 296 3,438 1,048 5,670
Gain from discontinued operations 5,362 2,353 6,778 4,536
Preferred dividends (10,580) (10,580) (21,160) (21,160)
Net income allocable to common
shareholders and HPU holders (3) $98,482 $79,919 $182,001 $157,326
(1) Includes interest income, operating lease income and equity in
earnings (loss) from joint ventures, less interest expense, operating
costs for corporate tenant lease assets and loss on early
extinguishment of debt.
(2) Includes depreciation and amortization, general and administrative
expenses and provision for loan losses.
(3) HPU holders are Company employees who purchased high performance
common stock units under the Company's High Performance Unit Program.
Selected Balance Sheet Data
(In thousands)
As of As of
June 30, 2007 December 31, 2006
(unaudited)
Loans and other lending investments, net $7,694,183 $6,799,850
Corporate tenant lease assets, net 3,324,186 3,084,794
Other investments 490,741 407,617
Total assets 12,322,330 11,059,995
Debt obligations 8,987,059 7,833,437
Total liabilities 9,219,894 8,034,394
Total shareholders' equity 3,071,834 2,986,863
iStar Financial Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
REVENUES
Interest income $192,165 $135,075 $373,025 $261,124
Operating lease income 86,382 81,336 167,694 162,991
Other income 38,801 21,676 67,276 35,145
Total revenues 317,348 238,087 607,995 459,260
COSTS AND EXPENSES
Interest expense 139,174 101,302 267,701 194,785
Operating costs - corporate
tenant lease assets 7,433 10,722 14,244 16,121
Depreciation and
amortization 22,827 18,877 42,869 37,502
General and administrative(1) 39,423 20,424 76,972 39,556
Provision for loan losses 5,000 2,000 10,000 3,000
Total costs and expenses 213,857 153,325 411,786 290,964
Income from continuing
operations before other items 103,491 84,762 196,209 168,296
Equity in earnings (loss)
from joint ventures (102) 767 (1,453) 1,053
Minority interest in
consolidated entities 15 (821) 579 (1,069)
Income from continuing
operations 103,404 84,708 195,335 168,280
Income from discontinued
operations 296 3,438 1,048 5,670
Gain from discontinued
operations 5,362 2,353 6,778 4,536
Net income 109,062 90,499 203,161 178,486
Preferred dividends (10,580) (10,580) (21,160) (21,160)
Net income allocable to common
shareholders and HPU holders $98,482 $79,919 $182,001 $157,326
Net income per common share
Basic $0.76 $0.69 $1.40 $1.36
Diluted (2) $0.75 $0.68 $1.39 $1.34
Net income per HPU share
Basic (3) $143.80 $130.20 $265.80 $256.40
Diluted (2) (4) $142.53 $129.00 $263.47 $254.07
(1) For the three months ended June 30, 2007 and 2006, includes $3,856 and
$1,747 of stock-based compensation expense, respectively. For the six
months ended June 30, 2007 and 2006, includes $8,265 and $2,950 of
stock-based compensation expense, respectively.
(2) For the three months ended June 30, 2007 and 2006, includes the
allocable share of $28 of joint venture income. For the six months
ended June 30, 2007 and 2006, includes the allocable share of $56 of
joint venture income.
(3) For the three months ended June 30, 2007 and 2006, $2,157 and $1,953
of net income is allocable to HPU holders, respectively. For the six
months ended June 30, 2007 and 2006, $3,987 and $3,846 of net income
is allocable to HPU holders, respectively.
(4) For the three months ended June 30, 2007 and 2006, $2,138 and $1,935
of net income is allocable to HPU holders, respectively. For the six
months ended June 30, 2007 and 2006, $3,952 and $3,811 of net income
is allocable to HPU holders, respectively.
iStar Financial Inc.
Earnings Per Share Information
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
EPS INFORMATION FOR COMMON SHARES
Income from continuing operations
per common share (1)
Basic $0.72 $0.64 $1.34 $1.27
Diluted (2) $0.71 $0.63 $1.33 $1.26
Net income per common share
Basic $0.76 $0.69 $1.40 $1.36
Diluted (2) $0.75 $0.68 $1.39 $1.34
Weighted average common shares
outstanding
Basic 126,753 113,282 126,723 113,263
Diluted 127,963 114,404 127,915 114,381
EPS INFORMATION FOR HPU SHARES
Income from continuing operations
per HPU share (1)
Basic $135.60 $120.73 $254.40 $239.73
Diluted (2) $134.40 $119.67 $252.13 $237.60
Net income per HPU share (3)
Basic $143.80 $130.20 $265.80 $256.40
Diluted (2) $142.53 $129.00 $263.47 $254.07
Weighted average HPU shares
outstanding
Basic 15 15 15 15
Diluted 15 15 15 15
(1) For the three months ended June 30, 2007 and 2006, excludes
preferred dividends of $10,580. For the six months ended June 30,
2007 and 2006, excludes preferred dividends of $21,160.
(2) For the three months ended June 30, 2007 and 2006, includes the
allocable share of $28 of joint venture income. For the six months
ended June 30, 2007 and 2006, includes the allocable share of $56 of
joint venture income.
(3) As more fully explained in the Company's quarterly SEC filings, three
plans of the Company's HPU program vested in December 2002, December
2003 and December 2004. Each of the respective plans contain 5 HPU
shares. Cumulatively, these 15 shares were entitled to $2,157 and
$1,953 of net income for the three months ended June 30, 2007 and
2006, respectively, and $3,987 and $3,846 of net income for the six
months ended June 30, 2007 and 2006, respectively. On a diluted
basis, these cumulative 15 shares were entitled to $2,138 and $1,935
of net income for the three months ended June 30, 2007 and 2006,
respectively, and $3,952 and 3,811 of net income for the six months
ended June 30, 2007 and 2006, respectively.
iStar Financial Inc.
Reconciliation of Adjusted Earnings to GAAP Net Income
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
ADJUSTED EARNINGS (1)
Net income $109,062 $90,499 $203,161 $178,486
Add: Depreciation, depletion
and amortization 23,366 20,021 45,244 41,033
Add: Joint venture income 31 30 61 60
Add: Joint venture depreciation,
depletion and amortization 9,748 2,724 20,585 5,448
Add: Amortization of
deferred financing costs 6,713 6,155 13,157 12,268
Less: Preferred dividends (10,580) (10,580) (21,160) (21,160)
Less: Gain from discontinued
operations (5,362) (2,353) (6,778) (4,536)
Adjusted earnings allocable
to common shareholders
and HPU holders:
Basic $132,947 $106,466 $254,209 $211,539
Diluted $132,978 $106,496 $254,270 $211,599
Adjusted earnings per
common share:
Basic (2) $1.03 $0.92 $1.96 $1.82
Diluted (3) $1.02 $0.91 $1.94 $1.81
Weighted average
common shares
outstanding:
Basic 126,753 113,282 126,723 113,263
Diluted 127,963 114,404 127,915 114,381
Common shares
outstanding at
end of period:
Basic 126,786 113,303 126,786 113,303
Diluted 127,991 114,438 127,991 114,438
(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 June 30, 2007 and 2006, excludes $2,912 and
$2,602 of net income allocable to HPU holders, respectively. For the
six months ended June 30, 2007 and 2006, excludes $5,569 and $5,171 of
net income allocable to HPU holders, respectively.
(3) For the three months ended June 30, 2007 and 2006, excludes $2,886 and
$2,578 of net income allocable to HPU holders, respectively. For the
six months ended June 30, 2007 and 2006, excludes $5,519 and $5,124 of
net income allocable to HPU holders, respectively.
iStar Financial Inc.
Consolidated Balance Sheets
(In thousands)
As of As of
June 30, 2007 December 31, 2006
(unaudited)
ASSETS
Loans and other lending investments, net $7,694,183 $6,799,850
Corporate tenant lease assets, net 3,324,186 3,084,794
Other investments 490,741 407,617
Investments in joint ventures 391,798 382,030
Assets held for sale 15,985 9,398
Cash and cash equivalents 88,019 105,951
Restricted cash 33,901 28,986
Accrued interest and operating lease
income receivable 97,696 72,954
Deferred operating lease income receivable 89,634 79,498
Deferred expenses and other assets 78,063 71,181
Goodwill 18,124 17,736
Total assets $12,322,330 $11,059,995
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, accrued expenses
and other liabilities $232,835 $200,957
Debt obligations:
Unsecured senior notes 7,084,961 6,250,249
Unsecured revolving credit facilities 1,305,718 923,068
Secured term loans 498,360 562,116
Other debt obligations 98,020 98,004
Total liabilities 9,219,894 8,034,394
Minority interest in consolidated
entities 30,602 38,738
Shareholders' equity 3,071,834 2,986,863
Total liabilities and shareholders'
equity $12,322,330 $11,059,995
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
PERFORMANCE STATISTICS
Three Months Ended
Net Finance Margin June 30, 2007
Weighted average GAAP yield of loan
and CTL investments 9.72%
Less: Cost of debt (6.50%)
Net Finance Margin (1) 3.22%
Return on Average Common Book Equity
Average total book equity $3,070,208
Less: Average book value of preferred equity (506,176)
Average common book equity (A) $2,564,032
Net income allocable to common
shareholders and HPU holders $98,482
Net income allocable to common
shareholders and HPU holders -
Annualized (B) $393,928
Return on Average Common Book Equity (B) / (A) 15.4%
Adjusted basic earnings allocable to
common shareholders and HPU holders (2) $132,947
Adjusted basic earnings allocable to
common shareholders and HPU holders
- Annualized (C) $531,788
Adjusted Return on Average Common
Book Equity (C) / (A) 20.7%
Efficiency Ratio
General and administrative expenses (D) $39,423
Total revenue (E) $317,348
Efficiency Ratio (D) / (E) 12.4%
(1) Weighted average GAAP yield is the annualized sum of interest income
and operating lease income (excluding other 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 $342 and $24,
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
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.
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
CREDIT STATISTICS
Three Months Ended
June 30, 2007
Book debt (A) $8,987,059
Book equity $3,071,834
Add: Accumulated depreciation/depletion and loan
loss reserves 487,301
Sum of book equity, accumulated
depreciation/depletion and loan loss reserves (B) $3,559,136
Book Debt / Sum of Book Equity, Accumulated
Depreciation/Depletion and Loan Loss
Reserves (A) / (B) 2.5x
Ratio of Earnings to Fixed Charges 1.9x
Ratio of Earnings to Fixed Charges and
Preferred Stock Dividends 1.7x
Interest Coverage
EBITDA (1) (C) $281,350
GAAP interest expense (D) $139,174
EBITDA / GAAP Interest Expense (C) / (D) 2.0x
Fixed Charge Coverage
EBITDA (1) (C) $281,350
GAAP interest expense $139,174
Add: Preferred dividends 10,580
Total GAAP interest expense and
preferred dividends (E) $149,754
EBITDA / GAAP Interest Expense and
Preferred Dividends (C) / (E) 1.9x
RECONCILIATION OF NET INCOME TO EBITDA
Net income $109,062
Add: GAAP interest expense 139,174
Add: Depreciation, depletion and amortization 23,366
Add: Joint venture depreciation, depletion and
amortization 9,748
EBITDA (1) $281,350
(1) EBITDA should be examined in conjunction with net income as shown in
the Consolidated Statements of Operations. EBITDA 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. 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)
Three Months Ended June 30, 2007
LOAN ORIGINATIONS
Total/
Fixed Floating Weighted CORPORATE OTHER
Rate Rate Average LEASING INVESTMENTS
Amount funded $34,519 $646,549 $681,068 $147,821 $75,703
Weighted average GAAP
yield 9.30% 9.11% 9.12% 10.24% N/A
Weighted average all-in
spread/margin (basis
points) (1) 435 379 - 527 N/A
Weighted average first
$ loan-to-value ratio 1.45% 2.22% 2.18% N/A N/A
Weighted average last
$ loan-to-value ratio 87.60% 65.06% 66.21% N/A N/A
UNFUNDED COMMITMENTS
Number of assets with unfunded commitments 127
Discretionary commitments $13,170
Non-discretionary commitments 3,509,285
Total unfunded commitments $3,522,455
Estimated weighted average funding period Approximately 2.8 years
UNENCUMBERED ASSETS $11,701,621
RISK MANAGEMENT STATISTICS
(weighted average risk rating) 2007 2006
June March December September June
30, 31, 31, 30, 30,
Structured Finance Assets
(principal risk) 2.78 2.64 2.74 2.75 2.67
Corporate Tenant Lease Assets 2.50 2.45 2.37 2.39 2.38
(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 and corporate
leasing transactions) during the quarter.
iStar Financial Inc.
Supplemental Information
(In thousands, except per share amounts)
LOANS AND OTHER LENDING INVESTMENTS CREDIT STATISTICS
As of
June 30, 2007 December 31, 2006
Carrying value of non-performing loans /
As a percentage of total assets $213,085 1.73% $61,480 0.56%
Reserve for loan losses /
As a percentage of total assets $62,201 0.50% $52,201 0.47%
As a percentage of non-performing loans 29% 85%
RECONCILIATION OF DILUTED ADJUSTED EPS
GUIDANCE TO DILUTED GAAP EPS GUIDANCE (1)
Year Ending
December 31, 2007
Earnings per diluted common share guidance $2.90 - $3.10
Add: Depreciation, depletion and amortization
per diluted common share $0.90 - $1.30
Adjusted earnings per diluted common share guidance $4.00 - $4.20
(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.
iStar Financial Inc.
Supplemental Information
(In millions)
(unaudited)
PORTFOLIO STATISTICS AS OF JUNE 30, 2007 (1)
Security Type
First Mortgages / Senior Loans $6,376 52.3 %
Corporate Tenant Leases 3,811 31.3
Mezzanine / Subordinated Debt 1,380 11.3
Other Investments 616 5.1
Total $12,183 100.0 %
Collateral Type
Apartment / Residential $2,643 21.7 %
Office (CTL) 1,771 14.5
Retail 1,582 13.0
Other 1,548 12.7
Industrial / R&D 1,355 11.1
Entertainment / Leisure 1,201 9.9
Mixed Use / Mixed Collateral 1,104 9.1
Hotel 745 6.1
Office (Lending) 234 1.9
Total $12,183 100.0 %
Collateral Location
West $2,406 19.8 %
Northeast 2,072 17.0
Southeast 1,901 15.6
Mid-Atlantic 1,696 13.9
Various 1,178 9.7
Central 831 6.8
South 716 5.9
International 524 4.3
Southwest 369 3.0
Northcentral 354 2.9
Northwest 136 1.1
Total $12,183 100.0 %
(1) Figures presented prior to loan loss reserves, accumulated
depreciation and impact of Statement of Financial Accounting Standards
No. 141, "Business Combinations."
SOURCE iStar Financial Inc.
CONTACT:
Catherine D. Rice, Chief Financial Officer
or
Andrew G. Backman, Vice President - Investor Relations
both of iStar Financial Inc.
1-212-930-9400
Web site: http://www.istarfinancial.com