View Filing Data

$ 3,226,648

$ 3,344,672

(427,625)

(396,761)

2,799,023

2,947,911

635,865

677,458

3,434,888

3,625,369

1,829,985

2,860,762

Cash and cash equivalents

398,843

457,835

256,344

356,826

Restricted cash

36,778

32,630

Accrued interest and operating lease income receivable, net

15,226

20,208

Deferred operating lease income receivable

84,735

73,368

Deferred expenses and other assets, net

93,990

90,839

Accounts payable, accrued expenses and other liabilities

6,150,789

7,517,837

Liabilities:

132,460

105,357

Commitments and contingencies

4,691,494

^[1]

5,837,540

Total liabilities

4,823,954

5,942,897

Redeemable noncontrolling interests

13,681

1,336

iStar Financial Inc. shareholders' equity:

Preferred Stock Series D, E, F, G and I, liquidation preference $25.00 per share (see Note 11)

High Performance Units

9,800

Common Stock, $0.001 par value, 200,000 shares authorized, 142,699 issued and 83,782 outstanding at December 31, 2012 and 140,028 issued and 81,920 outstanding at December 31, 2011

143

140

Additional paid-in capital

3,832,780

3,834,460

Retained earnings (deficit)

(2,360,647)

(2,078,397)

Accumulated other comprehensive income (loss) (see Note 11)

(1,185)

(328)

Treasury stock, at cost, $0.001 par value, 58,917 shares at December 31, 2012 and 58,108 shares at December 31, 2011

(241,969)

(237,341)

Total iStar Financial Inc. shareholders' equity

1,238,944

1,528,356

Noncontrolling interests

74,210

45,248

Total equity

1,313,154

1,573,604

Total liabilities and equity

$ 6,150,789

$ 7,517,837

[1]	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred Stock Series D, E, F, G and I, liquidation preference per share (in dollars per share)	$ 25	$ 25
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	200,000	200,000
Common Stock, shares issued	142,699	140,028
Common Stock, shares outstanding	83,782	81,920
Treasury stock, par value (in dollars per share)	$ 0.001	$ 0.001
Treasury stock, shares	58,917	58,108

The per share liquidation preference (or restrictions) of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) that has a preference in involuntary liquidation considerably in excess of the par or stated value of the shares. The liquidation preference is the difference between the preference in liquidation and the par or stated values of the share.

Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Revenues:

$ 219,019

$ 198,478

$ 186,630

133,410

226,871

364,094

48,043

39,720

50,733

400,472

465,069

601,457

Costs and expenses:

Interest expense

355,097

342,186

313,766

Real estate expenses

151,827

138,943

121,399

General and administrative

69,350

58,662

57,220

80,856

105,039

109,526

81,740

46,412

331,487

13,778

13,239

12,809

Income (loss) before earnings from equity method investments and other items

17,266

11,070

16,055

Total costs and expenses

769,914

715,551

962,262

(369,442)

(250,482)

(360,805)

(37,816)

101,466

108,923

Income (loss) from continuing operations before income taxes

103,009

95,091

51,908

(304,249)

(53,925)

(199,974)

Income tax (expense) benefit

(8,445)

4,719

(7,023)

Income (loss) from continuing operations(1)

^[1]

(312,694)

(49,206)

(206,997)

(19,465)

(7,318)

16,821

27,257

25,110

270,382

63,472

5,721

Net (income) loss attributable to noncontrolling interests

(241,430)

(25,693)

80,206

1,500

3,629

(523)

Net income (loss) attributable to iStar Financial Inc.

(239,930)

(22,064)

79,683

Preferred dividends

(42,320)

Net (income) loss allocable to HPU holders and Participating Security holders(2)(3)

^[2],[3]

9,253

1,997

(1,084)

Income (loss) attributable to iStar Financial Inc. from continuing operations:

$ (272,997)

$ (62,387)

$ 36,279

Basic (in dollars per share)

^[1]

$ (3.35)

$ (0.89)

$ (2.60)

Diluted (in dollars per share)

^[1]

(3.35)

(0.89)

(2.60)

Net income (loss) attributable to iStar Financial Inc.:

Basic (in dollars per share)

(3.26)

(0.70)

0.39

Diluted (in dollars per share)

$ (3.26)

$ (0.70)

$ 0.39

Weighted average number of common shares—basic

83,742

88,688

93,244

Weighted average number of common shares—diluted

83,742

88,688

93,244

Income (loss) attributable to iStar Financial Inc. from continuing operations:

Basic

^[1],[2]

$ (633.94)

$ (169.93)

$ (493.33)

Diluted

^[1],[2]

(633.94)

(169.93)

(493.33)

Net income (loss) attributable to iStar Financial Inc.:

Basic

^[1],[2]

(616.87)

(133.13)

72.27

Diluted

^[1],[2]

$ (616.87)

$ (133.13)

$ 72.27

Weighted average number of HPU shares—basic and diluted

^[1],[2]

[1]	Income (loss) from continuing operations attributable to iStar Financial Inc. for the years ended December 31, 2012, 2011 and 2010 was $(311.2) million, $(45.6) million and $(207.5) million, respectively. See Note 13 for details on the calculation of earnings per share.
[2]	HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit Program (see Note 11).
[3]	Participating Security holders are Company employees and directors who hold unvested restricted stock units, restricted stock awards and common stock equivalents granted under the Company's Long Term Incentive Plans that are eligible to participate in dividends (see Note 12 and Note 13).

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Statement [Abstract]
Income (loss) from continuing operations attributable to iStar Financial Inc.	$ (311.2)	$ (45.6)	$ (207.5)

Amount of income (loss) from continuing operations attributable to the parent. Also defined as revenue less expenses and taxes from ongoing operations before extraordinary items but after deduction of those portions of income or loss from continuing operations that are allocable to noncontrolling interests.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.13)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4613673-111683

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph b(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Statement of Other Comprehensive Income [Abstract]
Net income (loss)	$ (241,430)	$ (25,693)	$ 80,206
Other comprehensive income (loss):
Reclassification of (gains)/losses on available-for-sale securities into earnings upon realization	0	0	(4,206)
Reclassification of (gains)/losses on cash flow hedges into earnings upon realization	44	180	799
Unrealized gains/(losses) on available-for-sale securities	278	391	445
Unrealized gains/(losses) on cash flow hedges	(1,335)	(1,191)	0
Unrealized gains/(losses) on cumulative translation adjustment	244	(957)	24
Other comprehensive income (loss)	(857)	(1,937)	(4,536)
Comprehensive income (loss)	(242,287)	(27,630)	75,670
Net (income) loss attributable to noncontrolling interests	1,500	3,629	(523)
Comprehensive income (loss) attributable to iStar Financial Inc.	$ (240,787)	$ (24,001)	$ 75,147

Consolidated Statement of Changes in Equity - USD ($)
$ in Thousands

Total

Preferred Stock

^[1]

HPU's

Common Stock at Par

Additional Paid-In Capital

Retained Earnings (Deficit)

Accumulated Other Comprehensive Income (Loss)

Treasury Stock at cost

Noncontrolling Interests

Balance at Dec. 31, 2009

$ 1,656,118

$ 22

$ 9,800

$ 138

$ 3,791,972

$ (2,051,376)

$ 6,145

$ (151,016)

$ 50,433

Dividends declared—preferred

(42,320)

Repurchase of stock

(7,476)

Issuance of stock/restricted stock amortization, net

17,099

Net income (loss) for the period

^[2]

80,217

79,683

534

Contributions from noncontrolling interests

159

Distributions to noncontrolling interests

(4,602)

Change in accumulated other comprehensive income (loss)

(4,536)

Balance at Dec. 31, 2010

1,694,659

9,800

138

3,809,071

(2,014,013)

1,609

(158,492)

46,524

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Dividends declared—preferred

(42,320)

Repurchase of stock

(78,849)

Issuance of stock/restricted stock amortization, net

25,391

25,389

Net income (loss) for the period

^[2]

(25,667)

(22,064)

(3,603)

Contributions from noncontrolling interests

3,917

Distributions to noncontrolling interests

(1,590)

Change in accumulated other comprehensive income (loss)

(1,937)

Balance at Dec. 31, 2011

1,573,604

9,800

140

3,834,460

(2,078,397)

(328)

(237,341)

45,248

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Dividends declared—preferred

(42,320)

Repurchase of stock

(4,628)

Issuance of stock/restricted stock amortization, net

2,708

2,705

Net income (loss) for the period

^[2]

(240,618)

(239,930)

(688)

Additional paid-in capital attributable to redeemable noncontrolling interest

(1,657)

Contributions from noncontrolling interests

^[3]

32,654

Distributions to noncontrolling interests

(3,004)

Change in accumulated other comprehensive income (loss)

(857)

Repurchase of convertible notes

(2,728)

Balance at Dec. 31, 2012

$ 1,313,154

$ 22

$ 9,800

$ 143

$ 3,832,780

$ (2,360,647)

$ (1,185)

$ (241,969)

$ 74,210

[1]	See Note 11 for details on the Company's Cumulative Redeemable Preferred Stock.
[2]	For the years ended December 31, 2012, 2011 and 2010, net income (loss) shown above excludes $(812), $(26) and $(11), respectively, of net income (loss) attributable to redeemable noncontrolling interests.
[3]	Includes $27.3 million of land assets contributed by a noncontrolling partner (see Note 4).

Consolidated Statement of Changes in Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income (loss) attributable to redeemable noncontrolling interest	$ (812)	$ (26)	$ (11)
Strategic Venture, Commercial Operating Properties
Properties acquired in joint venture	$ 27,300

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Cash flows from operating activities:

Adjustments to reconcile net income (loss) to cash flows from operating activities:

$ (241,430)

$ (25,693)

$ 80,206

81,740

46,412

331,487

38,077

22,386

22,403

Payments for withholding taxes upon vesting of stock-based compensation

70,786

63,928

70,770

(12,589)

(6,273)

(639)

Non-cash expense for stock-based compensation

15,293

29,702

19,355

Amortization of discounts/premiums and deferred financing costs on debt

31,981

32,345

(18,926)

Amortization of discounts/premiums and deferred interest on loans

(47,279)

(62,194)

(102,261)

Distributions from operations of equity method investments

(103,009)

(95,091)

(51,908)

105,586

85,766

32,651

Deferred operating lease income

(11,812)

(9,390)

(9,976)

Deferred income taxes

(13,729)

4,473

(63,472)

(5,721)

(Gain) loss on early extinguishment of debt, net

(27,257)

(25,110)

(270,382)

22,405

(97,742)

(110,075)

Repayments and repurchases of debt - debt discount(1)

^[1]

(74,712)

(5,748)

(1,461)

Other operating activities, net

9,427

6,492

9,749

Changes in assets and liabilities:

Changes in accrued interest and operating lease income receivable, net

1,337

4,793

14,259

Changes in deferred expenses and other assets, net

9,231

10,580

(1,781)

Changes in accounts payable, accrued expenses and other liabilities

11,725

5,710

(63,827)

Cash flows from operating activities

(183,972)

(38,577)

(45,883)

Cash flows from investing activities:

Investment originations and fundings

(49,393)

(110,333)

(456,678)

Repayments of and principal collections on loans

710,697

1,208,403

1,519,653

Net proceeds from sales of loans

56,998

95,859

700,098

Net proceeds from sales of real estate assets

562,705

215,930

1,823,181

Net proceeds from repayments and sales of securities

213,344

Contributions to unconsolidated entities

(10,640)

(41,820)

(23,520)

Distributions from unconsolidated entities

78,238

188,467

11,441

Capital expenditures on real estate assets

(83,070)

(64,169)

(42,863)

Changes in restricted cash held in connection with investing activities

(5,127)

(20,042)

(2,068)

Other investing activities, net

(1,321)

(1,038)

(3,765)

Cash flows from investing activities

1,259,087

1,471,257

3,738,823

Cash flows from financing activities:

Borrowings under secured credit facilities

2,652,265

2,913,250

36,294

Repayments under secured credit facilities

(2,681,112)

(1,489,970)

(36,812)

Repayments under unsecured credit facilities

(244,046)

(506,600)

Borrowings under secured term loans

82,500

124,575

Repayments under secured term loans

(111,260)

(1,684,231)

(2,132,899)

Borrowings under unsecured notes

764,029

Repayments under unsecured notes

(697,842)

(374,775)

(374,249)

Repurchases and redemptions of secured and unsecured notes

(873,873)

(408,678)

(857,346)

Payments for deferred financing costs

(21,662)

(35,545)

Preferred dividends paid

(42,320)

Purchase of treasury stock

(4,628)

(78,849)

(7,476)

Changes in restricted cash held in connection with debt obligations

199

12,064

Other financing activities, net

2,352

2,225

(9,963)

Cash flows from financing activities

(1,175,597)

(1,580,719)

(3,412,707)

Changes in cash and cash equivalents

(100,482)

(148,039)

280,233

Cash and cash equivalents at beginning of period

356,826

504,865

224,632

Cash and cash equivalents at end of period

$ 256,344

$ 356,826

$ 504,865

[1]	Represents the portion of debt repayments and repurchases made during the period related to the original issue discount ("OID"). Although these amounts do not reflect contractual interest payments made during the period, the OID is considered an operating cash flow in accordance with GAAP.

Business and Organization	12 Months Ended
Business and Organization	Dec. 31, 2012
Business and Organization [Abstract]
Business and Organization	Business and Organization Business—iStar Financial Inc., or the "Company," is a fully-integrated finance and investment company focused on the commercial real estate industry. The Company provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests directly across a range of real estate sectors. The Company, which is taxed as a real estate investment trust, or "REIT," has invested more than $35 billion over the past two decades. The Company's primary business segments are real estate finance, net leasing, operating properties and land. Organization—The Company began its business in 1993 through private investment funds and became publicly traded in 1998. Since that time, the Company has grown through the origination of new lending and leasing transactions, as well as through corporate acquisitions.

Basis of Presentation and Principles of Consolidation	12 Months Ended
Basis of Presentation and Principles of Consolidation	Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation Basis of Presentation—The accompanying audited Consolidated Financial Statements have been prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company has revised the presentation of its Consolidated Financial Statements to provide financial information that management believes better reflects the changes in its underlying business, including the types of investments the Company now holds. The Company has not changed any of its historically applied accounting policies, nor has it revised the aggregate amount of previously reported total assets, liabilities, equity, net income or classifications of cash flows as part of the new presentation. As of December 31, 2012, assets that were previously presented in, “Net lease assets, net,” and “Real estate held for investment, net,” are now presented in “Real estate, net.” Assets that were presented in “Other real estate owned” and "Assets held for sale" are now presented in “Real estate available and held for sale.” On the Consolidated Statements of Operations, lease income related to what was previously classified as “Real estate held for investment, net” and was previously presented in “Other income,” is now presented as “Operating lease income.” Additionally, tenant expense recoveries that were previously presented in “Operating costs-net lease assets” and “Other income” are now presented in “Operating lease income.” In addition, subject to certain changes mentioned above, costs previously presented as “Operating costs-net lease asset,” and “Operating costs-REHI and OREO,” are now presented in “Real estate expense.” Prior year amounts have been reclassified in the Consolidated Financial Statements and the related notes to conform to the current period presentation. Principles of Consolidation—The Consolidated Financial Statements include the financial statements of the Company, its wholly owned subsidiaries, controlled partnerships and variable interest entities ("VIEs") for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Consolidated VIEs—As of December 31, 2012, the Company consolidated five VIEs for which the Company is considered the primary beneficiary. None of these entities had debt as of December 31, 2012 and 2011. The assets and liabilities of the Company's consolidated VIEs are included in the Company's Consolidated Balance Sheets. The Company's total unfunded commitments related to consolidated VIEs is $67.0 million as of December 31, 2012. Unconsolidated VIEs—As of December 31, 2012, 27 of the Company's other investments were in VIEs where it is not the primary beneficiary and accordingly the VIEs have not been consolidated in the Company's Consolidated Financial Statements. As of December 31, 2012, the Company's maximum exposure to loss from these investments does not exceed the sum of the $153.1 million carrying value of the investments and $8.5 million of related unfunded commitments.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2209116

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122150

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 272
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 720
-SubTopic 15
-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 915
-SubTopic 235
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Real estate—Real estate assets are recorded at cost less accumulated depreciation and amortization, as follows:

Capitalization and depreciation— Certain improvements and replacements are capitalized when they extend the useful life of the asset. Qualified development and construction costs, including interest and certain other carrying costs incurred during the construction and/or renovation periods are also capitalized and charged to operations through depreciation over the asset's estimated useful life. The Company ceases capitalization on the portions substantially completed and capitalizes only those costs associated with the portions under development. Repairs and maintenance items are expensed as incurred. Depreciation is computed using the straight-line method of cost recovery over the shorter of estimated useful lives or 40 years for facilities, five years for furniture and equipment, the shorter of the remaining lease term or expected life for tenant improvements and the remaining useful life of the facility for facility improvements.

Purchase price allocation—The Company accounts for its acquisition of properties by recording the purchase price of tangible and intangible assets and liabilities acquired based on their estimated fair values. The value of the tangible assets, consisting of land, buildings, building improvements and tenant improvements is determined as if these assets are vacant. Intangible assets may include the value of above-market or below-market, in-place leases and the value of customer relationships, which are each recorded at their estimated fair values and included in “Real estate, net” on the Company's Consolidated Balance Sheets. The capitalized above-market (or below-market) lease value is amortized as a reduction of (or, increase to) operating lease income over the remaining non-cancelable term of each lease plus any renewal periods with fixed rental terms that are considered to be below-market. The Company also engages in sale/leaseback transactions and typically executes leases with the occupant simultaneously with the purchase of the net lease asset at market-rate rents. As such, no above-market or below-market lease value is ascribed to these transactions.

Impairments—The Company periodically reviews long-lived assets to be held and used for impairment in value whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The value of a long-lived asset held for use is impaired only if management's estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the asset (taking into account the anticipated holding period of the asset) is less than the carrying value. Such estimate of cash flows considers factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the estimated fair value of the asset and reflected as an adjustment to the basis of the asset. Impairments of real estate assets that are not held for sale are recorded in "Impairment of assets" on the Company's Consolidated Statements of Operations.

Real estate available and held for sale—The Company reports real estate assets to be disposed of at the lower of their carrying amount or estimated fair value less costs to sell and classifies them as “Real estate available and held for sale” on the Company's Consolidated Balance Sheets. If a triggering event occurs and the estimated fair value less costs to sell is less than the carrying value, the difference will be recorded as an impairment charge and included in "Income (loss) from discontinued operations" on the Company's Consolidated Statements of Operations. Once a real estate asset is classified as held for sale, depreciation expense is no longer recorded and historical operating results, including impairments, are reclassified to "Income (loss) from discontinued operations" on the Company's Consolidated Statements of Operations.

If circumstances arise that were previously considered unlikely and, as a result the Company decides not to sell a property previously classified as held for sale, the property is reclassified as held and used and included in "Real estate, net" on the Company's Consolidated Balance Sheets. The Company measures and records a property that is reclassified as held and used at the lower of (i) its carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held and used, or (ii) the estimated fair value at the date of the subsequent decision not to sell.

The Company reports residential property units to be disposed of at the lower of their carrying amount or estimated fair value less costs to sell and classifies them as “Real estate available and held for sale” on the Company's Consolidated Balance Sheets. If the estimated fair value less costs to sell is less than the carrying value, the difference will be recorded as an impairment charge and included in “Impairment of assets” on the Company's Consolidated Statements of Operations. The net carrying costs for residential property units are recorded in “Real estate expense” on the Company's Consolidated Statements of Operations.

Dispositions—Sales and the associated gains or losses on real estate assets, including developed condominiums, are recognized in accordance with ASC 360-20, Real Estate Sales. Sales and the associated gains for individual condominium units are recognized for full profit recognition upon closing of the sale transactions, when the profit is determinable, the earnings process is virtually complete, the parties are bound by the terms of the contract, all consideration has been exchanged, any permanent financing for which the seller is responsible has been arranged and all conditions for closing have been performed. The Company uses the relative sales value method to allocate costs. Gains on sales of net lease assets or commercial operating properties are recorded in “Gains from discontinued operations” and profits on sales of residential property units are included in "Income from sales of residential property" on the Company's Consolidated Statements of Operations.

Loans receivable, net—Loans receivable, net includes the following investments: senior mortgages, subordinate mortgages, corporate/partnership loans and other lending investments-securities. Management considers nearly all of its loans to be held-for-investment, although certain investments may be classified as held-for-sale.

Loans classified as held-for-investment are reported at their outstanding unpaid principal balance, and include unamortized acquisition premiums or discounts and unamortized deferred loan costs or fees. These loans also include accrued and paid-in-kind interest and accrued exit fees that the Company determines are probable of being collected.

Loans receivable designated for sale are classified as held-for-sale and are carried at lower of amortized historical cost or estimated fair value. The amount by which carrying value exceeds fair value is recorded as a valuation allowance. Subsequent changes in the valuation allowance are included in the determination of net income (loss) in the period in which the change occurs.

The Company acquires properties through foreclosure or by deed-in-lieu of foreclosure in full or partial satisfaction of non-performing loans. Based on the Company's strategic plan to realize the maximum value from the collateral received, property is classified as "Real estate, net" or "Real estate available and held for sale" at its estimated fair value when title to the property is obtained. Any excess of the carrying value of the loan over the estimated fair value of the property (less costs to sell for assets held for sale) is charged-off against the reserve for loan losses as of the date of foreclosure.

Equity and cost method investments—Equity interests are accounted for pursuant to the equity method of accounting if the Company can significantly influence the operating and financial policies of an investee. This is generally presumed to exist when ownership interest is between 20% and 50% of a corporation, or greater than 5% of a limited partnership or certain limited liability companies. The Company's periodic share of earnings and losses in equity method investees is included in "Earnings from equity method investments" on the Consolidated Statements of Operations. When the Company's ownership position is too small to provide such influence, the cost method is used to account for the equity interest. Equity and cost method investments are included in "Other investments" on the Company's Consolidated Balance Sheets.

The Company periodically reviews equity method investments for impairment in value whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. The Company will record an impairment charge to the extent that the estimated fair value of an investment is less than its carrying value and the Company determines the impairment is other-than-temporary. Impairment charges are recorded in "Earnings from equity method investments" on the Company's Consolidated Statements of Operations.

Cash and cash equivalents—Cash and cash equivalents include cash held in banks or invested in money market funds with original maturity terms of less than 90 days.

Restricted cash—Restricted cash represents amounts required to be maintained under certain of the Company's debt obligations, loans, leasing, land development and derivative transactions.

Consolidation-Variable interest entities—The Company evaluated its investments and other contractual arrangements to determine if they constitute variable interests in a VIE. A VIE is an entity where a controlling financial interest is achieved through means other than voting rights. A VIE is consolidated by the primary beneficiary, which is the party that has the power to direct matters that most significantly impact the activities of the VIE and has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. This overall consolidation assessment includes a review of, among other factors, which interests create or absorb variability, contractual terms, the key decision making powers, their impact on the VIE's economic performance, and related party relationships. Where qualitative assessment is not conclusive, the Company performs a quantitative analysis. The Company reassesses its evaluation of the primary beneficiary of a VIE on an ongoing basis and assesses its evaluation of an entity as a VIE upon certain reconsideration events.

The Company has investments in certain funds that meet the deferral criteria in Accounting Standards Update ("ASU") 2010-10 and will continue to assess consolidation of these entities under the overall guidance on the consolidation of VIEs in Accounting Standards Codification ("ASC") 810-10. The consolidation evaluation is similar to the process noted above, except that the primary beneficiary is the party that will receive a majority of the VIE's anticipated losses, a majority of the VIE's expected residual returns, or both. In addition, for entities that meet the deferral criteria, the Company reassesses its initial evaluation of the primary beneficiary and whether an entity is a VIE upon the occurrence of certain reconsideration events.

Deferred expenses—Deferred expenses include leasing costs and financing fees. Leasing costs include brokerage, legal and other costs which are amortized over the life of the respective leases. External fees and costs incurred to obtain long-term financing have been deferred and are amortized over the term of the respective borrowing using the effective interest method or the straight line method, as appropriate. Amortization of leasing costs is included in "Depreciation and amortization" and amortization of deferred financing fees is included in "Interest expense" on the Company's Consolidated Statements of Operations.

Identified intangible assets—Upon the acquisition of a business, the Company records intangible assets acquired at their estimated fair values separate and apart from goodwill. The Company determines whether such intangible assets have finite or indefinite lives. As of December 31, 2012, all such intangible assets acquired by the Company have finite lives and are included in "Real estate, net" on the Company's Consolidated Balance Sheets. The Company amortizes finite lived intangible assets based on the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the business acquired. The Company reviews finite lived intangible assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. If the Company determines the carrying value of an intangible asset is not recoverable it will record an impairment charge to the extent its carrying value exceeds its estimated fair value. Impairments of intangible assets are recorded in "Impairment of assets" on the Company's Consolidated Statements of Operations.

Revenue recognition—The Company's revenue recognition policies are as follows:

Operating lease income: The Company's leases have all been determined to be operating leases based on an analysis performed in accordance with ASC 840. Operating lease income is recognized on the straight-line method of accounting, generally from the later of the date the lessee takes possession of the space and it is ready for its intended use or the date of acquisition of the facility subject to existing leases. Accordingly, contractual lease payment increases are recognized evenly over the term of the lease. The periodic difference between lease revenue recognized under this method and contractual lease payment terms is recorded as "Deferred operating lease income receivable," on the Company's Consolidated Balance Sheets.

The Company also recognizes revenue from certain tenant leases for reimbursements of all or a portion of operating expenses, including common area costs, insurance, utilities and real estate taxes of the respective property. This revenue is accrued in the same periods as the expense is incurred and is recorded as “Operating lease income” on the Company's Consolidated Statements of Operations. Revenue is also recorded from certain tenant leases that is contingent upon tenant sales exceeding defined thresholds. These rents are recognized only after the defined threshold has been met for the period.

Management estimates losses inherent in the accrued operating lease income receivable and deferred operating lease income receivable balances as of the balance sheet date and incorporates an asset-specific component, as well as a general, formula-based reserve based on management's evaluation of the credit risks associated with these receivables. At December 31, 2012 and 2011, the total allowance for doubtful accounts was $5.6 million and $3.7 million, respectively.

Interest Income: Interest income on loans receivable is recognized on an accrual basis using the interest method.

On occasion, the Company may acquire loans at premiums or discounts. These discounts and premiums in addition to any deferred costs or fees, are typically amortized over the contractual term of the loan using the interest method. Exit fees are also recognized over the lives of the related loans as a yield adjustment, if management believes it is probable that such amounts will be received. If loans with premiums, discounts, loan origination or exit fees are prepaid, the Company immediately recognizes the unamortized portion, which is included in "Other income" on the Company's Consolidated Statements of Operations.

The Company considers a loan to be non-performing and places loans on non-accrual status at such time as: (1) the loan becomes 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan. While on non-accrual status, based on the Company's judgment as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduce a loan's carrying value. Non-accrual loans are returned to accrual status when a loan has become contractually current and management believes all amounts contractually owed will be received.

Certain of the Company's loans contractually provide for accrual of interest at specified rates that differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the borrower.

Prepayment penalties or yield maintenance payments from borrowers are recognized as additional income when received. Certain of the Company's loan investments provide for additional interest based on the borrower's operating cash flow or appreciation of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon receipt of cash.

The Company holds certain loans initially acquired at a discount, for which it was probable, at acquisition, that all contractually required payments would not be received. The Company does not have a reasonable expectation about the timing and amount of cash flows expected to be collected on these loans and recognizes income when cash is received.

Reserve for loan losses—The reserve for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the "Provision for loan losses" on the Company's Consolidated Statements of Operations and is decreased by charge-offs when losses are confirmed through the receipt of assets such as cash in a pre-foreclosure sale or via ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company has one portfolio segment, represented by commercial real estate lending, whereby it utilizes a uniform process for determining its reserve for loan losses. The reserve for loan losses includes a general, formula-based component and an asset-specific component.

The general reserve component covers performing loans and reserves for loan losses are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The formula-based general reserve is derived from estimated principal default probabilities and loss severities applied to groups of loans based upon risk ratings assigned to loans with similar risk characteristics during the Company's quarterly loan portfolio assessment. During this assessment, the Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The Company estimates loss rates based on historical realized losses experienced within its portfolio and takes into account current economic conditions affecting the commercial real estate market when establishing appropriate time frames to evaluate loss experience.

The asset-specific reserve component relates to reserves for losses on impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on a loan-by-loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices, or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.

Substantially all of the Company's impaired loans are collateral dependent and impairment is measured using the estimated fair value of collateral, less costs to sell. The Company generally uses the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Company obtains external "as is" appraisals for loan collateral, generally when third party participations exist. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. In limited cases, appraised values may be discounted when real estate markets rapidly deteriorate.

A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when the Company has granted a concession and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loan.

Gain or loss on debt extinguishments—The Company recognizes the difference between the reacquisition price of debt and the net carrying amount of extinguished debt currently in earnings. Such amounts may include prepayment penalties or the write-off of unamortized debt issuance costs, and are recorded in “Gain (loss) on early extinguishment of debt, net” on the Company's Consolidated Statements of Operations.

Derivative instruments and hedging activity—The Company recognizes derivatives as either assets or liabilities on the Company's Consolidated Balance Sheets at fair value. If certain conditions are met, a derivative may be specifically designated as a hedge of the exposure to changes in the fair value of a recognized asset or liability, a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability.

Derivatives, such as foreign currency hedges and interest rate caps, that are not designated hedges are considered economic hedges, with changes in fair value reported in current earnings in "Other expense" on the Company's Consolidated Statements of Operations. The Company does not enter into derivatives for trading purposes.

Stock-based compensation—Compensation cost for stock-based awards is measured on the grant date and adjusted over the period of the employees' services to reflect (i) actual forfeitures and (ii) the outcome of awards with performance or service conditions through the requisite service period. The Company recognizes compensation cost for performance-based awards if and when the Company concludes that it is probable that the performance condition will be achieved. Compensation cost for market condition-based awards is determined using a Monte Carlo model to simulate a range of possible future stock prices for the Company's Common Stock, which is reflected in the grant date fair value. All compensation cost for market-condition based awards in which the service conditions are met is recognized regardless of whether the market condition is satisfied. Compensation costs are recognized ratably over the applicable vesting/service period and recorded in "General and administrative" on the Company's Consolidated Statements of Operations.

Income taxes—The Company has elected to be qualified and taxed as a REIT under section 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"). The Company is subject to federal income taxation at corporate rates on its REIT taxable income, however, the Company is allowed a deduction for the amount of dividends paid to its shareholders, thereby subjecting the distributed net income of the Company to taxation at the shareholder level only. In addition, the Company is allowed several other deductions in computing its REIT taxable income, including non-cash items such as depreciation expense and certain specific reserve amounts that the Company deems to be uncollectable. These deductions allow the Company to shelter a portion of its operating cash flow from its dividend payout requirement under federal tax laws. In addition, the Company has made foreclosure elections for certain properties acquired through foreclosure which allows the Company to operate these properties within the REIT but subjects them to certain tax obligations. The carrying value of assets with foreclosure elections as of December 31, 2012 is $1.23 billion. The Company intends to operate in a manner consistent with and to elect to be treated as a REIT for tax purposes. As of December 31, 2011, the Company had $423.9 million of net operating loss carryforwards at the corporate REIT level, which can generally be used to offset both ordinary and capital taxable income in future years and will expire through 2031 if unused. The amount of net operating loss carryforwards as of December 31, 2012 will be subject to finalization of the 2012 tax returns. The Company recognizes interest expense and penalties related to uncertain tax positions, if any, as "Income tax (expense) benefit" on the Company's Consolidated Statements of Operations.

The Company can participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, as long as these activities are conducted in entities which elect to be treated as taxable subsidiaries under the Code, subject to certain limitations. As such, the Company, through its taxable REIT subsidiaries ("TRSs"), is engaged in various real estate related opportunities, primarily related to managing activities related to certain foreclosed assets, as well as managing various investments in equity affiliates, including LNR. As of December 31, 2012, $796.8 million of the Company's assets were owned by TRS entities. The Company's TRS entities are not consolidated for federal income tax purposes and are taxed as corporations. For financial reporting purposes, current and deferred taxes are provided for on the portion of earnings recognized by the Company with respect to its interest in TRS entities. The following represents the Company's TRS income tax expense ($ in thousands):



	For the Years Ended December 31,
	2012		2011			2010
Current tax expense	$	8,445	$	9,010		$	2,550
Deferred tax expense (benefit)(1)	—		(13,729		)	4,473
Total income tax expense (benefit)	$	8,445	$	(4,719	)	$	7,023

Explanatory Note:

_______________________________________________________________________________


(1)	During the year ended December 31, 2011, the Company sold its investment in Oak Hill Advisors L.P. (see Note 6) and recognized a deferred tax benefit resulting from the reversal of a deferred tax liability associated with the investment. See the table below for the Company's deferred tax assets and liabilities as of December 31, 2012 and 2011.

During the year ended December 31, 2012, the Company's TRS entities generated taxable income of $42.2 million which was partially offset by the utilization of net operating loss carryforwards, resulting in current tax expense of $8.4 million. During the year ended December 31, 2011, the Company's TRS entities generated taxable income of $75.8 million which was partially offset by the utilization of net operating loss carryforwards, resulting in current tax expense of $9.0 million. The Company's TRS taxable income for the year ended December 31, 2011 included the gain on the Company's sale of its investment in Oak Hill Advisors L.P. (see Note 6).

Total cash paid for taxes for the years ended December 31, 2012, 2011 and 2010, was $5.5 million, $8.5 million and $7.3 million, respectively.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss and tax credit carryforwards. The Company evaluates the realizability of its deferred tax assets and recognizes a valuation allowance if, based on the available evidence, both positive and negative, it is more likely than not that some portion or all of its deferred tax assets will not be realized. When evaluating the realizability of its deferred tax assets, the Company considers, among other matters, estimates of expected future taxable income, nature of current and cumulative losses, existing and projected book/tax differences, tax planning strategies available, and the general and industry specific economic outlook. This realizability analysis is inherently subjective, as it requires the Company to forecast its business and general economic environment in future periods. Based on an assessment of all factors, including historical losses and continued volatility of the activities within the TRS entities, it was determined that valuation allowances of $40.8 million and $50.9 million were required on the net deferred tax assets as of December 31, 2012 and 2011, respectively. Changes in estimate of deferred tax asset realizability, if any are included in "Income tax (expense) benefit" on the Consolidated Statements of Operations.

Deferred tax assets and liabilities of the Company's TRS entities were as follows ($ in thousands):



	As of December 31,
	2012			2011
Deferred tax assets(1)	$	40,800		$	50,889
Valuation allowance	(40,800		)	(50,889		)
Net deferred tax assets (liabilities)	$	—		$	—

Explanatory Note:

_______________________________________________________________________________

(1)

Deferred tax assets as of December 31, 2012, include real estate basis differences of $31.2 million, net operating loss carryforwards of $10.8 million and investment basis differences of $(1.2) million. Deferred tax assets as of December 31, 2011, include real estate basis differences of $30.8 million, net operating loss carryforwards of $22.8 million and investment basis differences of $(0.6) million.

Earnings per share—The Company uses the two-class method in calculating EPS when it issues securities other than common stock that contractually entitle the holder to participate in dividends and earnings of the Company when, and if, the Company declares dividends on its common stock. Vested HPU shares are entitled to dividends of the Company when dividends are declared. Basic earnings per share ("Basic EPS") for the Company's Common Stock and HPU shares are computed by dividing net income allocable to common shareholders and HPU holders by the weighted average number of shares of Common Stock and HPU shares outstanding for the period, respectively. Diluted earnings per share ("Diluted EPS") is calculated similarly, however, it reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are deemed a ("Participating Security") and are included in the computation of earnings per share pursuant to the two-class method. The Company's unvested restricted stock units and restricted stock awards with rights to dividends and common stock equivalents issued under its Long-Term Incentive Plans are considered participating securities and have been included in the two-class method when calculating EPS.

New Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-05, "Presentation of Comprehensive Income," which requires entities to (1) present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income and (2) present reclassification of other comprehensive income on the face of the income statement. In December 2011, the FASB issued ASU 2011-12, "Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05," which deferred the requirements of entities to present reclassification of other comprehensive income on the face of the income statement. The Company adopted this ASU beginning with the reporting period ended March 31, 2012, as required, and now presents Consolidated Statements of Comprehensive Income (Loss).

In February 2013, the FASB issued ASU 2013-12, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This guidance is the culmination of the board's redeliberation on reporting reclassification adjustments from accumulated other comprehensive income. The standard requires that companies present information about reclassification adjustments from accumulated other comprehensive income in their interim and annual financial statements in a single note or on the face of the financial statements. This ASU is effective for interim and annual reporting periods beginning after December 15, 2012. The Company will adopt this ASU beginning with the reporting period ending March 31, 2013.

In May 2011, the FASB issued ASU 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." This ASU is a result of joint efforts by the FASB and IASB to develop a single, converged framework on how to measure fair value and what disclosures to provide about fair value measurements. This ASU is largely consistent with existing fair value measurement principles of U.S. GAAP, however, it expands existing disclosure requirements for fair value measurements. The ASU is effective for interim and annual reporting periods beginning after December 15, 2011 and applied prospectively. The Company adopted this ASU beginning with the reporting period ended March 31, 2012, as required. Adoption of this guidance resulted in expanded disclosures on fair value measurements, included in Note 14, but did not have an impact on the Company's measurements of fair value.

Real estate

12 Months Ended

Dec. 31, 2012

Real Estate [Abstract]

Real estate

The Company's real estate assets were comprised of the following ($ in thousands):



	Net Lease Assets			Operating Properties			Land			Total
As of December 31, 2012
Land and land improvements	$	344,239		$	132,028		$	786,114		$	1,262,381
Buildings and improvements	1,295,081			669,186			—			1,964,267
Less: accumulated depreciation and amortization	(315,699		)	(109,634		)	(2,292		)	(427,625		)
Real estate, net	$	1,323,621		$	691,580		$	783,822		$	2,799,023
Real estate available and held for sale	—			454,587			181,278			635,865
Total real estate	$	1,323,621		$	1,146,167		$	965,100		$	3,434,888
As of December 31, 2011
Land and land improvements	$	378,458		$	84,010		$	851,272		$	1,313,740
Buildings and improvements	1,394,691			636,241			—			2,030,932
Less: accumulated depreciation and amortization	(302,851		)	(90,383		)	(3,527		)	(396,761		)
Real estate, net	$	1,470,298		$	629,868		$	847,745		$	2,947,911
Real estate available and held for sale	—			551,998			125,460			677,458
Total real estate	$	1,470,298		$	1,181,866		$	973,205		$	3,625,369

Real estate available and held for sale—As of December 31, 2012 and 2011, the Company had $374.1 million and $419.0 million, respectively, of residential properties available for sale in its operating properties portfolio. The Company is actively marketing and selling condominium units in these projects. During the years ended December 31, 2012 and 2011, the Company sold condominium units for total net proceeds of $319.3 million and $154.0 million, respectively, and recorded income from sales of residential properties totaling $63.5 million and $5.7 million, respectively.

Real estate assets held for sale included $181.3 million of land assets and $80.5 million of commercial operating properties as of December 31, 2012 and $125.5 million of land assets and $133.0 million of commercial operating properties as of December 31, 2011. During the year ended December 31, 2012, the Company had a change in its business plans to sell two commercial operating properties previously considered held for sale. As of December 31, 2012, the carrying amount of these assets was $49.8 million and was recorded in Real Estate, net. The assets were reclassified at their carrying value prior to classification as held for sale and adjusted for depreciation expense during the held for sale period, which was lower than the assets fair value at the time of the change in plans to sell. In connection with the reclassification of these assets to held and used, the Company reclassified their results of operations for each of the periods presented, as follows:



	For the Years Ended December 31,
	2012			2011			2010
Other income	$	21,148		$	21,663		$	22,751
Real estate expenses	$	(22,603	)	$	(24,297	)	$	(25,612	)

Acquisitions—During the year ended December 31, 2012, the Company acquired title to properties previously serving as collateral on its loan receivables with a total fair value of $269.1 million at the time of foreclosure (see Note 5). These properties included $172.4 million of residential operating properties, $63.4 million of commercial operating properties and $33.3 million of land assets.

During the year ended December 31, 2012, the Company also acquired land and other assets with a fair value of $27.3 million from a third party to form a new venture related to one of the Company's commercial operating properties. The third party contributed land into the venture in a non-cash exchange for a non-controlling interest and the Company continues to consolidate the subsidiary. In conjunction with the formation of this new venture, the venture contributed land with a recorded value of $11.6 million in a non-cash exchange for a 40% noncontrolling equity interest in a separate new venture. The Company did not recognize any gains or losses associated with these transactions.

In addition, during 2012, the Company acquired land and other assets with a fair value of $11.5 million from a third party to form a new strategic venture related to one of the Company's active land development projects. The third party contributed land into the venture in a non-cash exchange for a non-controlling interest and the Company continues to consolidate the subsidiary. The Company did not recognize any gains or losses associated with the transaction. Based upon certain rights held by the minority partner in this land venture that provide it with an option to redeem its interest at fair value after seven years, the Company has reflected the partner's non-controlling interest in this venture as a redeemable non-controlling interest within its Consolidated Balance Sheet at December 31, 2012. As it is probable that the interest will become redeemable, subsequent changes in fair value are being accreted over the seven year period from the date of issuance to the earliest redemption date using the interest method. As of December 31, 2012, the estimated redemption value of the redeemable non-controlling interest is $17.9 million.

During the year ended December 31, 2011, the Company acquired title to properties previously serving as collateral on its loan receivables with a total fair value of $502.5 million at the time of foreclosure (see Note 5). These properties included $61.8 million of residential operating properties, $258.8 million of commercial operating properties and $181.9 million of land assets.

Dispositions—During the year ended December 31, 2012, the Company sold a portfolio of 12 net lease assets with an aggregate carrying value of $105.7 million and recorded a gain of $24.9 million resulting from the transaction. Certain of the properties were subject to secured term loans with a remaining principal balance of $50.8 million that were repaid in full at closing (see Note 8). In addition to this portfolio sale, during 2012, the Company sold net lease assets with a carrying value of $9.8 million, resulting in a net gain of $2.4 million. During the year ended December 31, 2012, the Company sold commercial operating properties with an aggregate carrying value of $29.3 million and land assets with a carrying value of $72.1 million for proceeds that approximated carrying value.

During the year ended December 31, 2011, the Company sold net lease assets with carrying values of $34.1 million, resulting in a net gain of $3.2 million. During 2011, the Company also sold commercial operating properties with an aggregate carrying value of $17.9 million and land assets with a carrying value of $9.5 million for proceeds that approximated carrying value.

During the year ended December 31, 2010, the Company completed the sale of a portfolio of 32 net lease assets to a single purchaser for a gross purchase price of $1.35 billion that resulted in a net gain of $250.3 million. The aggregate carrying value of the portfolio of assets was $1.05 billion. At the time of sale, the Company had reduced its gain on sale and recorded a liability based upon certain contingent obligations that have now been fully resolved. Upon resolution of this liability in 2011, the Company realized $22.2 million of the gain previously deferred and recorded the gain in “Gain from discontinued operations” on the Company's Consolidated Statements of Operations for the year ended December 31, 2011. As part of the purchaser's financing for the transaction, the Company provided the purchaser with $105.6 million of mezzanine loans, which have been fully repaid as of December 31, 2012.

In addition to the sale of the portfolio of assets noted above, during the year ended December 31, 2010, the Company sold net lease assets with carrying values of $119.7 million, which resulted in gains of $20.1 million. During 2010, the Company also sold commercial operating properties with a carrying value of $180.6 million and land assets with a carrying value of $3.1 million for proceeds that approximated carrying value.

Discontinued Operations—The following table summarizes income from discontinued operations for the years ended December 31, 2012, 2011 and 2010, respectively ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Revenues	$	5,561		$	16,512		$	88,536
Total expenses	(2,450		)	(14,683		)	(62,143		)
Impairment of assets	(22,576		)	(9,147		)	(9,572		)
Income (loss) from discontinued operations	$	(19,465	)	$	(7,318	)	$	16,821

Impairments—During the years ended December 31, 2012, 2011 and 2010 the Company recorded impairments on real estate assets totaling $35.4 million, $22.4 million and $25.2 million. Of these amounts, $22.6 million, $9.1 million and $9.6 million for the years ended December 31, 2012, 2011 and 2010, respectively, have been reclassified to discontinued operations due to the assets being sold or classified as held for sale as of December 31, 2012 (see above).

Intangible assets—As of December 31, 2012, 2011 and 2010, the Company had $59.9 million and $53.6 million, respectively, of unamortized finite lived intangible assets primarily related to the acquisition of real estate assets. The total amortization expense for these intangible assets was $10.6 million, $11.0 million and $9.0 million for the years ended December 31, 2012, 2011 and 2010, respectively. The estimated aggregate amortization costs for each of the five succeeding fiscal years are as follows ($ in thousands):



2013	$	11,534
2014	$	9,221
2015	$	7,589
2016	$	6,770
2017	$	5,721

Future Minimum Operating Lease Payments—Future minimum operating lease payments under non-cancelable leases, excluding customer reimbursements of expenses, in effect at December 31, 2012, are as follows ($ in thousands):



Year	Net Lease Assets		Operating Properties
2013	$	126,777	$	54,590
2014	$	129,622	$	53,516
2015	$	130,871	$	48,925
2016	$	128,347	$	46,426
2017	$	121,533	$	43,754

Tenant Reimbursements—The Company receives reimbursements from tenants for certain facility operating expenses including common area costs, insurance, utilities and real estate taxes. Tenant expense reimbursements for the years ended December 31, 2012, 2011 and 2010 were $30.9 million, $29.4 million and $33.2 million, respectively, and are included in “Operating lease income” on the Company's Consolidated Statements of Operations.

The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 970
-SubTopic 360
-Section S99
-Paragraph 1
-Subparagraph (SX 210.12-28)
-URI http://asc.fasb.org/extlink&oid=6590653&loc=d3e638233-123024

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 11
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 66
-Paragraph 4, 5, 37, 50, 59, 65, 95, 97
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 154
-Paragraph 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 67
-Paragraph 4, 5, 6, 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 34
-Paragraph 9, 11, 12, 13, 14, 15, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 2
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 7, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 10
-Subparagraph a, b
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 10
-Subparagraph 4
-Article 9

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 28
-Article 12

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 11
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph c
-Subparagraph Schedule III
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section A
-Paragraph 9
-Chapter 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 04-2
-Paragraph 41, 63, 64
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 75-2
-Paragraph 47, 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 6
-Subparagraph a
-Article 5

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
-Paragraph 2, 6, 9-11, 18, 20
-IssueDate 2006-05-01
-Chapter 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 15
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 23, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Investments, All Other Investments [Abstract]

Loans Receivable, net

12 Months Ended

Dec. 31, 2012

Receivables [Abstract]

Loans Receivable, net

The following is a summary of the Company's loans receivable by class ($ in thousands):



	As of December 31,
Type of Investment	2012			2011
Senior mortgages	$	1,751,256		$	2,801,213
Subordinate mortgages	152,737			211,491
Corporate/Partnership loans	450,491			478,892
Total gross carrying value of loans(1)	$	2,354,484		$	3,491,596
Reserves for loan losses	(524,499		)	(646,624		)
Total carrying value of loans	$	1,829,985		$	2,844,972
Other lending investments—securities	—			15,790
Total loans receivable, net	$	1,829,985		$	2,860,762

Explanatory Note:

_______________________________________________________________________________


(1)	The Company's recorded investment in loans as of December 31, 2012 and 2011, was $2.36 billion and $3.50 billion, respectively, which consists of total gross carrying value of loans plus accrued interest of $9.8 million and $13.3 million, for the same two periods, respectively.

During the year ended December 31, 2012, the Company funded $39.6 million of loan investments and received principal repayments of $710.7 million. During the same period, the Company sold loans with a total carrying value of $53.9 million, for which it recognized charge-offs of $3.3 million and also recorded income of $6.4 million in "Other income" on the Company's Consolidated Statements of Operations.

During the year ended December 31, 2012, the Company received title to properties in full or partial satisfaction of non-performing mortgage loans with a gross carrying value of $352.8 million, for which the properties had served as collateral, and recorded charge-offs totaling $85.3 million related to these loans. These properties were recorded as "Real estate, net" or "Real estate available and held for sale" on the Company's Consolidated Balance Sheets (see Note 4).

Reserve for Loan Losses—Changes in the Company's reserve for loan losses were as follows ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Reserve for loan losses at beginning of period	$	646,624		$	814,625		$	1,417,949
Provision for loan losses	81,740			46,412			331,487
Charge-offs	(203,865		)	(214,413		)	(934,811		)
Reserve for loan losses at end of period	$	524,499		$	646,624		$	814,625

The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands):



	Individually Evaluated for Impairment(1)			Collectively Evaluated for Impairment(2)			Loans Acquired with Deteriorated Credit Quality(3)			Total
As of December 31, 2012
Loans	$	1,095,957		$	1,210,077		$	58,281		$	2,364,315
Less: Reserve for loan losses	(472,058		)	(33,100		)	(19,341		)	(524,499		)
Total	$	623,899		$	1,176,977		$	38,940		$	1,839,816
As of December 31, 2011
Loans	$	1,525,337		$	1,919,876		$	59,648		$	3,504,861
Less: Reserve for loan losses	(554,131		)	(73,500		)	(18,993		)	(646,624		)
Total	$	971,206		$	1,846,376		$	40,655		$	2,858,237

Explanatory Notes:

_______________________________________________________________________________

(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $4.0 million and a net premium of $0.1 million as of December 31, 2012 and 2011, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status and therefore, the unamortized amounts associated with these loans are not currently being amortized into income.


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $3.8 million and $0.2 million as of December 31, 2012 and 2011, respectively.


(3)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net premium of $0.1 million and a net discount of $15.0 million as of December 31, 2012 and 2011, respectively. These loans had cumulative principal balances of $58.8 million and $74.5 million, as of December 31, 2012 and 2011, respectively.

Credit Characteristics—As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):



	As of
	December 31, 2012			December 31, 2011
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	840,593	2.75	$	1,514,016	3.19
Subordinate mortgages	99,698		2.27	190,342		3.36
Corporate/Partnership loans	444,772		3.69	472,178		3.61
Total	$	1,385,063	3.01	$	2,176,536	3.29

As of December 31, 2012, the Company's recorded investment in loans, aged by payment status and presented by class, were as follows ($ in thousands):



	Current		Less Than and Equal to 90 Days		Greater Than 90 Days		Total Past Due		Total
Senior mortgages	$	862,082	$	62,768	$	830,906	$	893,674	$	1,755,756
Subordinate mortgages	99,698		—		53,979		53,979		153,677
Corporate/Partnership loans	444,772		—		10,110		10,110		454,882
Total	$	1,406,552	$	62,768	$	894,995	$	957,763	$	2,364,315

Impaired Loans—The Company's recorded investment in impaired loans, presented by class, were as follows ($ in thousands)(1):



	As of December 31, 2012							As of December 31, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Senior mortgages	$	108,077	$	107,850	$	—		$	219,488	$	218,612	$	—
Corporate/Partnership loans	10,110		10,160		—			10,110		10,160		—
Subtotal	$	118,187	$	118,010	$	—		$	229,598	$	228,772	$	—
With an allowance recorded:
Senior mortgages	$	918,975	$	918,496	$	(442,760	)	$	1,268,962	$	1,263,195	$	(540,670	)
Subordinate mortgages	53,979		53,679		(39,579		)	22,480		22,558		(22,480		)
Corporate/Partnership loans	63,096		63,246		(9,060		)	62,591		62,845		(9,974		)
Subtotal	$	1,036,050	$	1,035,421	$	(491,399	)	$	1,354,033	$	1,348,598	$	(573,124	)
Total:
Senior mortgages	$	1,027,052	$	1,026,346	$	(442,760	)	$	1,488,450	$	1,481,807	$	(540,670	)
Subordinate mortgages	53,979		53,679		(39,579		)	22,480		22,558		(22,480		)
Corporate/Partnership loans	73,206		73,406		(9,060		)	72,701		73,005		(9,974		)
Total	$	1,154,237	$	1,153,431	$	(491,399	)	$	1,583,631	$	1,577,370	$	(573,124	)

Explanatory Note:

_______________________________________________________________________________


(1)	All of the Company's non-accrual loans are considered impaired and included in the table above. In addition, as of December 31, 2012 and 2011, certain loans modified through troubled debt restructurings with a recorded investment of $175.0 million and $255.3 million, respectively, are also included as impaired loans in accordance with GAAP although they are performing and on accrual status.

The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands):



	For the Years Ended December 31,
	2012				2011				2010
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	162,093	$	2,765	$	309,079	$	31,799	$	659,150	$	20,472
Subordinate mortgages	—		—		—		—		1,404		87
Corporate/Partnership loans	10,110		160		10,110		680		27,526		1,868
Subtotal	$	172,203	$	2,925	$	319,189	$	32,479	$	688,080	$	22,427
With an allowance recorded:
Senior mortgages	$	1,064,045	$	3,865	$	1,608,486	$	7,187	$	2,411,735	$	5,183
Subordinate mortgages	52,208		—		19,477		—		77,125		107
Corporate/Partnership loans	62,248		312		66,087		332		65,118		—
Subtotal	$	1,178,501	$	4,177	$	1,694,050	$	7,519	$	2,553,978	$	5,290
Total:
Senior mortgages	$	1,226,138	$	6,630	$	1,917,565	$	38,986	$	3,070,885	$	25,655
Subordinate mortgages	52,208		—		19,477		—		78,529		194
Corporate/Partnership loans	72,358		472		76,197		1,012		92,644		1,868
Total	$	1,350,704	$	7,102	$	2,013,239	$	39,998	$	3,242,058	$	27,717

During the year ended December 31, 2011, the Company recorded interest income of $26.3 million related to the resolution of certain non-performing loans. Interest income was not previously recorded while the loans were on non-accrual status.

Troubled Debt Restructurings—During the years ended December 31, 2012 and 2011, the Company modified loans that were determined to be troubled debt restructurings. The recorded investment in these loans was impacted by the modifications as follows, presented by class ($ in thousands):



	For the Years Ended December 31,
	2012					2011
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Senior mortgages	8	$	319,667	$	272,753	7	$	191,158	$	190,893

Troubled debt restructurings that subsequently defaulted during the period were as follows ($ in thousands):



	For the Years Ended December 31,
	2012			2011
	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded Investment
Senior mortgages	1	$	18,511	1	$	28,005

Troubled debt restructurings that occurred during the year ended December 31, 2012 included the modifications of performing loans with a combined recorded investment of $64.1 million. The modified terms of these loans granted maturity extensions ranging from one year to three years and included conditional extension options in certain cases dependent on borrower-specific performance hurdles. In each case, the Company believes the borrowers can perform under the modified terms of the loans and continues to classify these loans as performing.

Non-performing loans with a combined recorded investment of $255.6 million were also modified during the year ended December 31, 2012 and continued to be classified as non-performing subsequent to modification. Included in this balance was a loan with a recorded investment of $181.5 million prior to modification, for which the Company agreed to reduce the outstanding principal balance and recorded charge-offs totaling $45.5 million, and also reduce the loan's interest rate. The remaining non-performing loans were granted maturity extensions ranging from one month to seven months and the interest rate was reduced on one loan.

Troubled debt restructurings that occurred during the year ended December 31, 2011 included the modifications of performing loans with a combined recorded investment of $129.2 million. The modified terms of these loans granted maturity extensions ranging from three months to five years and included conditional extension options in certain cases dependent on borrower-specific performance hurdles. The Company reduced the rate on loans with a combined recorded investment of $59.5 million from a combined weighted average rate of 6.2% to 4.1%. In each case, the Company believed the borrowers could perform under the modified terms of the loans and classified these loans as performing after the modification. One of these loans subsequently defaulted.

Non-performing loans with a combined recorded investment of $62.0 million were also modified during the year ended December 31, 2011 and continued to be classified as non-performing subsequent to modification. Included in this balance was a loan with a recorded investment of $46.1 million, for which the Company granted a maturity extension of six months while also reducing the loan's interest rate. The Company also extended a discounted payoff option on another loan that was classified as non-performing.

Generally when granting concessions, the Company will seek to protect its position by requiring incremental pay downs, additional collateral or guarantees and in some cases lookback features or equity kickers to offset concessions granted should conditions impacting the loan improve. The Company's determination of credit losses is impacted by troubled debt restructurings whereby loans that have gone through troubled debt restructurings are considered impaired, assessed for specific reserves, and are not included in the Company's assessment of general loan loss reserves. Loans previously restructured under troubled debt restructurings that subsequently default are reassessed to incorporate the Company's current assumptions on expected cash flows and additional provision expense is recorded to the extent necessary. As of December 31, 2012, the Company had $21.6 million of unfunded commitments associated with modified loans considered troubled debt restructurings.

Other Investments

12 Months Ended

Dec. 31, 2012

Other Investments

The Company's other investments and its proportionate share of results from equity method investments were as follows ($ in thousands):



	Carrying Value as of December 31,				Equity in earnings for the years ended December 31,
	2012		2011		2012		2011			2010
LNR	$	205,773	$	159,764	$	60,669	$	53,861		$	1,797
Madison Funds	56,547		103,305		10,246		3,641			9,717
Oak Hill Funds	29,840		56,817		5,844		1,918			11,613
Real estate equity investments	47,619		69,100		21,636		(5,273		)	2,522
Other equity method investments(1)	47,939		56,849		4,614		40,944			26,259
Total equity method investments	$	387,718	$	445,835	$	103,009	$	95,091		$	51,908
Other	11,125		12,000
Total other investments	$	398,843	$	457,835

Explanatory Note:

_______________________________________________________________________________


(1)	For the years ended December 31, 2011 and 2010, amounts include $38.4 million and $22.4 million, respectively, of earnings related to Oak Hill Advisors, L.P. and related entities that were sold in October 2011.

Equity Method Investments

LNR—On July 29, 2010, the Company acquired an ownership interest of approximately 24% in LNR Property Corporation ("LNR"). LNR is a servicer and special servicer of commercial mortgage loans and CMBS and a diversified real estate investment, finance and management company. In the transaction, the Company and a group of investors, including other creditors of LNR, acquired 100% of the common stock of LNR in exchange for cash and the extinguishment of existing senior notes of LNR's parent holding company (the "Holdco Notes"). The Company contributed $100.0 million aggregate principal amount of Holdco Notes and $100.0 million in cash in exchange for an equity interest of $120.0 million. During the year ended December 31, 2010, the Company executed the discounted payoff of a separate $25.0 million principal value loan with LNR for which it received proceeds of $24.5 million in full repayment.

Subsequent to year end, the Company signed a definitive agreement to sell its interest in LNR (see Note 17—Subsequent Events for further details).

The following table represents the latest available financial information of investee level summarized financial information for LNR ($ in thousands)(1):



	For the Years Ended September 30,						For the period July 29 to September 30,
	2012			2011			2010
Income Statements
Total revenue(2)	$	332,902		$	327,032		$	40,022
Income tax expense (benefit)(3)	$	6,731		$	(76,558	)	$	685
Net income attributable to LNR	$	253,039		$	225,190		$	7,495
iStar's ownership percentage	24		%	24		%	24		%
iStar's equity in earnings from LNR	$	60,669		$	53,861		$	1,797



	As of September 30,
	2012			2011
Balance Sheets
Total assets(2)	$	1,384,337		$	1,288,923
Total debt(2)	$	398,912		$	469,631
Total liabilities(2)	$	517,088		$	576,835
Noncontrolling interests	$	1,560		$	39,940
LNR Property LLC equity	$	865,689		$	672,147
iStar's ownership percentage	24		%	24		%
iStar's equity in LNR	$	205,773		$	159,764

Explanatory Notes:

_______________________________________________________________________________

(1)

The Company records its investment in LNR on a one quarter lag, therefore, amounts in the Company's financial statements for the year ended December 31, 2012 and 2011 are based on balances and results from LNR for the years ended September 30, 2012 and 2011. LNR was acquired in July of 2010, therefore results for the year ended December 31, 2010 are based on balances from LNR for the period July 29, 2010 to September 30, 2010.

(2)

LNR consolidates certain commercial mortgage-backed securities and collateralized debt obligation trusts that are considered VIEs (and for which it is the primary beneficiary), that have been excluded from the amounts presented above. As of September 30, 2012 and 2011, the assets of these trusts, which aggregated approximately $97.52 billion and $126.66 billion, respectively, were the sole source of repayment of the related liabilities, which aggregated approximately $97.21 billion and $126.64 billion, respectively, and are non-recourse to LNR and its equity holders, including the Company. In addition, total revenue presented above includes $95.4 million, $119.0 million and $16.8 million for the years ended September 30, 2012, 2011 and for the period July 29, 2010 to September 30, 2010, respectively, of servicing fee revenue that is eliminated upon consolidation of the VIE's at the LNR level. This income is then added back through consolidation at the LNR level as an adjustment to income allocable to noncontrolling entities and has no net impact on net income attributable to LNR.


(3)	During the year ended December 31, 2011, LNR recorded an income tax benefit from the settlement of certain tax liabilities.

Madison Funds—As of December 31, 2012, the Company owned a 29.52% interest in Madison International Real Estate Fund II, LP, a 32.92% interest in Madison International Real Estate Fund III, LP and a 29.52% interest in Madison GP1 Investors, LP (collectively, the "Madison Funds"). The Madison Funds invest in ownership positions of entities that own real estate assets. The Company determined that all of these entities are variable interest entities and that an external member is the primary beneficiary.

Oak Hill Funds—As of December 31, 2012, the Company owned a 5.92% interest in OHA Strategic Credit Master Fund, L.P. ("OHASCF"). OHASCF was formed to acquire and manage a diverse portfolio of assets, investing in distressed, stressed and undervalued loans, bonds, equities and other investments.

Real estate equity investments—As of December 31, 2012, the Company's real estate equity investments included equity interests in real estate ventures ranging from 31% to 70%, comprised of investments of $16.4 million in net lease assets, $25.7 million in operating properties and $5.5 million in land assets. As of December 31, 2011, the Company's real estate equity investments included $16.3 million in net lease assets, $38.0 million in operating properties and $14.8 million in land assets. One of the Company's equity investments in operating properties represents a 33% interest in residential property units. During the year ended December 31, 2012, the Company's earnings from its interest in this property includes income from sales of residential units of $26.0 million.

Oak Hill Advisors—In October 2011, the Company sold a substantial portion of its interests in Oak Hill Advisors, L.P. and related entities for $183.7 million of net cash proceeds, which resulted in a net gain of $30.3 million that was recorded in "Earnings from equity method investments" on the Company's Consolidated Statements of Operations. Glenn R. August, a former director of the Company and the president and senior partner of Oak Hill Advisors, L.P., participated in the transaction as a purchaser. In conjunction with the sale of its interests in Oak Hill Advisors, L.P., the Company retained interests in its share of certain unearned incentive fees of various funds. These fees are contingent on the future performance of the funds and the Company will recognize income related to these fees if and when the amounts are realized.

Other Equity Method Investments—The Company also had smaller investments in several other entities that were accounted for under the equity method. Several of these investments are in real estate related funds or other strategic investment opportunities within niche markets.

Summarized Financial Information—The following table presents the investee level summarized financial information of the Company's equity method investments, excluding LNR ($ in thousands):



	For the Years Ended December 31,
	2012		2011		2010
Income Statements
Revenues	$	401,870	$	198,340	$	590,265
Net income (loss) attributable to parent entities	$	304,960	$	97,066	$	342,661



	As of December 31,
	2012		2011
Balance Sheets
Total assets	$	2,830,087	$	3,079,736
Total liabilities	$	163,164	$	197,246
Noncontrolling interests	$	29,553	$	4,139
Total equity	$	2,637,370	$	2,878,351

Other Assets and Other Liabilities

12 Months Ended

Dec. 31, 2012

Other Assets and Other Liabilities [Abstract]

Other Assets and Other Liabilities

Deferred expenses and other assets, net, consist of the following items ($ in thousands):



	As of December 31,
	2012		2011
Deferred financing fees, net(1)	$	26,629	$	21,443
Leasing costs, net(2)	20,205		12,423
Other receivables	11,517		23,943
Corporate furniture, fixtures and equipment, net(3)	7,537		9,034
Prepaid expenses	5,218		5,441
Other assets	22,884		18,555
Deferred expenses and other assets, net	$	93,990	$	90,839

Explanatory Notes:

_______________________________________________________________________________


(1)	Accumulated amortization on deferred financing fees was $4.1 million and $13.3 million as of December 31, 2012 and 2011, respectively.


(2)	Accumulated amortization on leasing costs was $6.6 million and $5.5 million as of December 31, 2012 and 2011, respectively.


(3)	Accumulated depreciation on corporate furniture, fixtures and equipment was $6.2 million and $8.1 million as of December 31, 2012 and 2011, respectively.

Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands):



	As of December 31,
	2012		2011
Accrued expenses	$	50,467	$	36,332
Accrued interest payable	29,521		30,122
Security deposits and other investment deposits	13,717		12,192
Unearned operating lease income	11,294		10,073
Property taxes payable	8,206		6,495
Derivative liabilities	3,435		2,373
Other liabilities	15,820		7,770
Accounts payable, accrued expenses and other liabilities	$	132,460	$	105,357

Debt Obligations, net

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Debt Obligations, net

As of December 31, 2012 and 2011, the Company's debt obligations were as follows ($ in thousands):



	Carrying Value as of December 31,
	2012			2011			Stated Interest Rates			Scheduled Maturity Date
Secured credit facilities and term loans:
2011 Tranche A-1 Facility	$	—		$	961,580		LIBOR + 3.75%		(1)	—
2011 Tranche A-2 Facility	—			1,450,000			LIBOR + 5.75%		(1)	—
2012 Tranche A-1 Facility	169,164			—			LIBOR + 4.00%		(2)	March 2016
2012 Tranche A-2 Facility	470,000			—			LIBOR + 5.75%		(2)	March 2017
October 2012 Secured Credit Facility	1,754,466			—			LIBOR + 4.50%		(3)	October 2017
Term loans collateralized by net lease assets	264,432			293,192			4.851% - 7.68%			Various through 2026
Total secured credit facilities and term loans	$	2,658,062		$	2,704,772
Unsecured credit facility:
Line of credit	$	—		$	243,650		LIBOR + 0.85%			—
Unsecured notes:
5.15% senior notes	—			263,466			5.15	%		—
5.50% senior notes	—			92,845			5.50	%		—
LIBOR + 0.50% senior convertible notes	—			784,750			LIBOR + 0.50%			—
8.625% senior notes	96,801			501,701			8.625	%		June 2013
5.95% senior notes	448,453			448,453			5.95	%		October 2013
6.5% senior notes	—			67,055			6.5	%		December 2013
5.70% senior notes	200,601			200,601			5.70	%		March 2014
6.05% senior notes	105,765			105,765			6.05	%		April 2015
5.875% senior notes	261,403			261,403			5.875	%		March 2016
3.0% senior convertible notes(4)	200,000			—			3.0	%		November 2016
5.85% senior notes	99,722			99,722			5.85	%		March 2017
9.0% senior notes	275,000			—			9.0	%		June 2017
7.125% senior notes	300,000			—			7.125	%		February 2018
Total unsecured notes	$	1,987,745		$	2,825,761
Other debt obligations:
Other debt obligations	$	100,000		$	100,000		LIBOR + 1.5%			October 2035
Total debt obligations	$	4,745,807		$	5,874,183
Debt discounts, net	(54,313		)	(36,643		)
Total debt obligations, net	$	4,691,494		$	5,837,540

Explanatory Notes:

_______________________________________________________________________________


(1)	These loans had a LIBOR floor of 1.25%.


(2)	These loans each have a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floors, the 2012 Tranche A-1 Facility and 2012 Tranche A-2 Facility loans incurred interest at a rate of 5.25% and 7.00%, respectively.


(3)	This loan has a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floor, the October 2012 Secured Credit Facility incurred interest at a rate of 5.75%. Subsequent to year end, in connection with the repricing of the October 2012 Secured Credit Facility, the loan will bear interest at a rate of LIBOR + 3.50%, with a LIBOR floor of 1.00%. See Note 17—Subsequent Events.

(4)

The Company's convertible senior fixed rate notes due November 2016 ("Convertible Notes") are convertible at the option of the holders, into 85.0 shares per $1,000 principal amount of Convertible Notes, at any time prior to the close of business on November 14, 2016. As of December 31, 2012, the outstanding principal balance of the Company's senior convertible notes was $200.0 million. For the year ended December 31, 2012, the Company recognized interest expense on the convertible notes of $0.8 million.

Future Scheduled Maturities—As of December 31, 2012, future scheduled maturities of outstanding long-term debt obligations are as follows ($ in thousands)(1):



	Unsecured Debt			Secured Debt			Total
2013	$	545,254		$	—		$	545,254
2014	200,601			—			200,601
2015	105,765			46,164			151,929
2016	461,403			134,816			596,219
2017	374,722			2,212,650			2,587,372
Thereafter	400,000			264,432			664,432
Total principal maturities	$	2,087,745		$	2,658,062		$	4,745,807
Unamortized debt discounts, net	(19,147		)	(35,166		)	(54,313		)
Total long-term debt obligations, net	$	2,068,598		$	2,622,896		$	4,691,494

Explanatory Note:

_______________________________________________________________________________


(1)	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.

October 2012 Secured Credit Facility—On October 15, 2012, the Company entered into a $1.82 billion senior secured credit agreement due October 15, 2017 (the “October 2012 Secured Credit Facility”). The October 2012 Secured Credit Facility bears interest at a rate of LIBOR + 4.50%, with a 1.25% LIBOR floor, and was issued at 99.0% of par. Proceeds from the October 2012 Secured Credit Facility were used to refinance the remaining outstanding balances of the Company’s existing 2011 Secured Credit Facilities.

Borrowings under the October 2012 Secured Credit Facility are collateralized by a first lien on a fixed pool of assets, with required minimum collateral coverage of not less than 125% of outstanding borrowings. If collateral coverage is less than 137.5% of outstanding borrowings, 100% of the proceeds from principal repayments and sales of collateral will be applied to repay outstanding borrowings under the October 2012 Secured Credit Facility. For so long as collateral coverage is between 137.5% and 150% of outstanding borrowings, 50% of proceeds from principal repayments and sales of collateral will be applied to repay outstanding borrowings under the October 2012 Secured Credit Facility and for so long as collateral coverage is greater than 150% of outstanding borrowings, the Company may retain all proceeds from principal repayments and sales of collateral. The Company retains proceeds from interest, rent, lease payments and fee income in all cases.

In connection with the October 2012 Secured Credit Facility transaction, the Company incurred $14.8 million in third party fees, of which $8.2 million was recognized in “Other expense” on the Company's Consolidated Statements of Operations as it related to the portion of lenders from the original facility that modified their debt under the new facility. The remaining $6.6 million of fees were recorded in “Deferred expenses and other assets, net” on the Company's Consolidated Balance Sheets, as they related to the portion of lenders that were new to the facility.

The October 2012 Secured Credit Facility contains certain covenants relating to the collateral, among other matters, but does not contain corporate level financial covenants. For so long as the Company maintains its qualification as a REIT, it is permitted to distribute 100% of its REIT taxable income on an annual basis. In addition, the Company may distribute to its stockholders real estate assets, or interests therein, having an aggregate equity value not to exceed $200 million, that are not collateral securing the borrowings under the October 2012 Secured Credit Facility. Except for the distribution of real estate assets described in the preceding sentence, the Company may not pay common dividends if it ceases to qualify as a REIT.

Through December 31, 2012, the Company has made cumulative amortization repayments of $65.5 million on the October 2012 Secured Credit Facility, which exceeds all required amortization payments through March 2016. Repayments of the October 2012 Secured Credit Facility prior to scheduled amortization dates have resulted in losses on early extinguishment of debt of $1.2 million for the year ended December 31, 2012 related to the acceleration of discounts and unamortized deferred financing fees on the portion of the facility that was repaid. See Note 17—Subsequent Events below for details on the refinancing of the October 2012 Secured Credit Facility in February 2013.

March 2012 Secured Credit Facilities—In March 2012, the Company entered into an $880.0 million senior secured credit agreement providing for two tranches of term loans: a $410.0 million 2012 A-1 tranche due March 2016, which bears interest at a rate of LIBOR + 4.00% (the "2012 Tranche A-1 Facility"), and a $470.0 million 2012 A-2 tranche due March 2017, which bears interest at a rate of LIBOR + 5.75% (the "2012 Tranche A-2 Facility," together the "March 2012 Secured Credit Facilities"). The 2012 A-1 and A-2 tranches were issued at 98.0% of par and 98.5% of par, respectively, and both tranches include a LIBOR floor of 1.25%. Proceeds from the March 2012 Secured Credit Facilities were used to repurchase and repay at maturity $606.7 million aggregate principal amount of the Company's convertible notes due October 2012, to fully repay the $244.0 million balance on the Company's unsecured credit facility due June 2012, and to repay, upon maturity, $90.3 million outstanding principal balance of its 5.50% senior unsecured notes.

The March 2012 Secured Credit Facilities are collateralized by a first lien on a fixed pool of assets. Proceeds from principal repayments and sales of collateral are applied to amortize the March 2012 Secured Credit Facilities. Proceeds received for interest, rent, lease payments and fee income are retained by the Company. The 2012 Tranche A-1 Facility requires amortization payments of $41.0 million to be made every six months beginning December 31, 2012. After the 2012 Tranche A-1 Facility is repaid, proceeds from principal repayments and sales of collateral will be used to amortize the 2012 Tranche A-2 Facility. The Company may make optional prepayments on each tranche of term loans, subject to prepayment fees.

Through December 31, 2012, the Company made cumulative amortization repayments of $240.8 million on the 2012 Tranche A-1 Facility, which exceeds all required amortization payments through December 31, 2014. Repayments of the 2012 Tranche A-1 Facility prior to scheduled amortization dates have resulted in losses on early extinguishment of debt of $8.1 million for the year ended December 31, 2012 related to the acceleration of discounts and unamortized deferred financing fees on the portion of the facility that was repaid.

2011 Secured Credit Facilities—In March 2011, the Company entered into a $2.95 billion senior secured credit agreement providing for two tranches of term loans: a $1.50 billion 2011 A-1 tranche due June 2013, which bore interest at a rate of LIBOR + 3.75% (the "2011 Tranche A-1 Facility"), and a $1.45 billion 2011 A-2 tranche due June 2014, which bore interest at a rate of LIBOR + 5.75% (the "2011 Tranche A-2 Facility," together the "2011 Secured Credit Facilities"). The 2011 A-1 and A-2 tranches were issued at 99.0% of par and 98.5% of par, respectively, and both tranches include a LIBOR floor of 1.25%.

The 2011 Secured Credit Facilities were collateralized by a first lien on a fixed pool of assets. Proceeds from principal repayments and sales of collateral were applied to amortize the 2011 Secured Credit Facilities. Proceeds received for interest, rent, lease payments, fee income and, under certain circumstances, additional amounts funded on assets serving as collateral were retained by the Company. The 2011 Tranche A-1 Facility required that aggregate cumulative amortization payments of not less than $200.0 million would be made on or before December 30, 2011, not less than $450.0 million on or before June 30, 2012, not less than $750.0 million on or before December 31, 2012 and not less than $1.50 billion on or before June 28, 2013. The 2011 Tranche A-2 Facility had amortization requirements that would begin amortizing six months after the repayment in full of the 2011 Tranche A-1 Facility, such that not less than $150.0 million of cumulative amortization payments would be made on or before the six month anniversary of repayment of the Tranche A-1 Facility, with additional amortization payments of $150.0 million due on or before each six month anniversary thereafter, with any unpaid principal amounts due at maturity in June 2014.

The 2011 Secured Credit Facilities were refinanced by the October 2012 Secured Credit Facility. Prior to refinancing, the Company made cumulative amortization repayments of $1.07 billion on the 2011 Secured Credit Facilities, which resulted in losses on early extinguishment of debt of $4.5 million and $12.0 million for the years ended December 31, 2012 and 2011, respectively, related to the acceleration of discounts and unamortized deferred financing fees on the portion of the facility that was repaid.

At the time of the refinancing, the Company had $21.2 million of unamortized discounts and financing fees related to the 2011 Secured Credit Facilities. In connection with the refinancing, the Company recorded a loss on early extinguishment of debt of $12.1 million, related primarily to the portion of lenders in the original facility that did not participate in the new facility. The remaining $9.0 million of unamortized fees and discounts will continue to be amortized to interest expense over the remaining term of the October 2012 Secured Credit Facility.

Secured Term Loans—In October 2012, the Company entered into a $28.0 million secured term loan maturing in November 2019, bearing interest at a rate of LIBOR + 2.00%. Simultaneously with the financing, the Company entered into an interest rate swap to exchange its variable rate on the loan for a fixed interest rate (see Note 10).

In September 2012, the Company refinanced two secured term loans with an aggregate outstanding principal balance of $53.3 million, bearing interest at rates of 5.3% and 8.2% and maturing in January 2013 with a new $54.5 million secured term loan. The new loan bears interest at 4.851%, matures in October 2022 and is collateralized by the same net lease asset as the original term loan. In connection with the refinancing, the Company recorded a loss on early extinguishment of debt of $0.5 million in its Consolidated Statements of Operations for the year ended December 31, 2012.

In addition, during the year ended December 31, 2012, in conjunction with the sale of a portfolio of 12 net lease assets, the Company repaid the $50.8 million outstanding balances of its LIBOR + 4.50% secured term loans due in 2014 and terminated the related interest rate swaps associated with the loans (see Note 10).

In 2011, the Company entered into a $120.0 million secured term loan financing maturing in July 2021. This financing is collateralized by net lease properties occupied by a single tenant and bears interest at 5.05%.

Also, in 2011, the Company refinanced the $47.7 million outstanding principal balance of a maturing secured term loan. In addition, during 2011, the Company entered into an additional $4.6 million secured term loan. The loans bear interest at LIBOR + 4.50%, mature in 2014 and are cross-collateralized by the same net lease assets. Simultaneously with the financings, the Company entered into interest rate swaps to exchange its variable rates on the notes for fixed interest rates.

In 2010, the Company repaid other secured term loans, including a $947.9 million non-recourse loan that was collateralized by the portfolio of net lease assets sold during the period, as well as $153.3 million of other term loans with various maturities. In connection with these repayments, the Company expensed unamortized deferred financing costs and incurred other expenses totaling $22.1 million, which reduced net gain on early extinguishment of debt during the year ended December 31, 2010.

Unsecured Credit Facility—During the year ended December 31, 2012, the Company repaid the $243.7 million remaining principal balance of its LIBOR + 0.85% unsecured credit facility due June 2012. In connection with the repayments, the Company recorded a loss on early extinguishment of debt of $0.2 million.

In 2011, the Company repaid the $329.9 million remaining principal balance of its LIBOR + 0.85% unsecured line of credit.

Secured Notes—In January 2011, the Company redeemed the $312.3 million remaining principal balance of its 10% 2014 secured exchange notes and recorded a gain on early extinguishment of debt of $109.0 million primarily related to the recognition of deferred gain premiums that resulted from a previous debt exchange.

During 2010, the Company redeemed or repurchased $322.5 million par value of its 2011 and 2014 Notes, generating $71.3 million of gains on early extinguishment of debt.

Unsecured Notes—In November 2012, the Company issued $300.0 million aggregate principal of 7.125% senior unsecured notes due February 2018 and issued $200.0 million aggregate principal of 3.00% convertible senior unsecured notes due November 2016. Proceeds from these transactions were used to fully repay $67.1 million of the 6.5% senior unsecured notes due December 2013 and partially repay $404.9 million of the 8.625% senior unsecured notes due June 2013. In connection with these repurchases, the Company paid a $14.9 million prepayment penalty which was reflected in "Gain (loss) on early extinguishment of debt, net" on the Company's Consolidated Statements of Operations for the year ended December 31, 2012.

In May 2012, the Company issued $275.0 million aggregate principal of 9.0% senior unsecured notes due June 2017 that were sold at 98.012% of their principal amount.

During the year ended December 31, 2012, the Company repaid, upon maturity, the $460.7 million outstanding principal balance of its LIBOR + 0.50% senior unsecured convertible notes, the $169.7 million outstanding principal balance of its 5.15% senior unsecured notes and the $90.3 million outstanding principal balance of its 5.50% senior unsecured notes. In addition, the Company repurchased $420.4 million par value of senior unsecured notes with various maturities ranging from March 2012 to October 2012. In connection with these repurchases, the Company recorded aggregate gains on early extinguishment of debt of $3.2 million, for the year ended December 31, 2012.

During the year ended December 31, 2011, the Company repaid, upon maturity, the $170.4 million outstanding principal balance of its 5.65% senior unsecured notes, the $96.9 million outstanding principal balance of its 5.125% senior unsecured notes and the $107.8 million outstanding principal balance of its 5.80% senior unsecured senior notes. In addition, the Company repurchased $97.2 million par value of its senior unsecured notes with various maturities ranging from September 2011 to October 2012. In connection with these repurchases, the Company recorded an aggregate gain on early extinguishment of debt of $0.8 million for the year ended December 31, 2011.

During the year ended December 31, 2010, the Company repurchased $592.8 million par value of senior unsecured notes with various maturities ranging from March 2010 to March 2014 generating $59.7 million in net gains on early extinguishment of debt.

Unencumbered/Encumbered Assets—As of December 31, 2012, the carrying value of the Company's unencumbered and encumbered assets by asset type are as follows ($ in thousands):



	As of December 31,
	2012				2011
	Encumbered Assets		Unencumbered Assets		Encumbered Assets		Unencumbered Assets
Real estate, net	$	1,794,198	$	1,004,825	$	1,533,579	$	1,397,319
Real estate available and held for sale	141,673		494,192		177,092		500,366
Loans receivable, net(1)	1,197,373		665,712		1,780,591		1,153,671
Other investments	43,545		355,298		37,957		419,878
Cash and other assets	—		487,073		—		590,884
Total	$	3,176,789	$	3,007,100	$	3,529,219	$	4,062,118

Explanatory Note:

_______________________________________________________________________________


(1)	As of December 31, 2012 and 2011, the amounts presented exclude general reserves for loan losses of $33.1 million and $73.5 million, respectively.

Debt Covenants

The Company's outstanding unsecured debt securities contain corporate level covenants that include a covenant to maintain a ratio of unencumbered assets to unsecured indebtedness of at least 1.2x and a restriction on debt incurrence based upon the effect of the debt incurrence on the Company's fixed charge coverage ratio. If any of the Company's covenants are breached and not cured within applicable cure periods, the breach could result in acceleration of its debt securities unless a waiver or modification is agreed upon with the requisite percentage of the bondholders. While the Company expects that its ability to incur new indebtedness under the fixed charge coverage ratio will be limited for the foreseeable future, it will continue to be permitted to incur indebtedness for the purpose of refinancing existing indebtedness and for other permitted purposes under the indentures.

The Company's March 2012 Secured Credit Facilities and October 2012 Secured Credit Facility are collectively defined as the "Secured Credit Facilities." The Company's Secured Credit Facilities contain certain covenants, including covenants relating to collateral coverage, dividend payments, restrictions on fundamental changes, transactions with affiliates, matters relating to the liens granted to the lenders and the delivery of information to the lenders. In particular, the Company is required to maintain collateral coverage of 1.25x outstanding borrowings. In addition, for so long as the Company maintains its qualification as a REIT, the March 2012 Secured Credit Facilities permit the Company to distribute 100% of its REIT taxable income on an annual basis and the October 2012 Secured Credit Facility permits the Company to distribute to its shareholders real estate assets, or interests therein, having an aggregate equity value not to exceed $200 million, so long as such assets are not collateral for the October 2012 Secured Credit Facility. The Company may not pay common dividends if it ceases to qualify as a REIT (except that the October 2012 Secured Credit Facility permits us to distribute certain real estate assets as described in the preceding sentence).

The Company's Secured Credit Facilities contain cross default provisions that would allow the lenders to declare an event of default and accelerate the Company's indebtedness to them if the Company fails to pay amounts due in respect of its other recourse indebtedness in excess of specified thresholds or if the lenders under such other indebtedness are otherwise permitted to accelerate such indebtedness for any reason. The indentures governing the Company's unsecured public debt securities permit the bondholders to declare an event of default and accelerate the Company's indebtedness to them if the Company's other recourse indebtedness in excess of specified thresholds is not paid at final maturity or if such indebtedness is accelerated.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Business Risks and Uncertainties—The Company's business continues to recover from the recent economic recession, as commercial real estate values and the availability of liquidity have improved. The Company raised approximately $3.51 billion through secured and unsecured debt transactions in 2012, the proceeds of which were used to repay and/or refinance a significant portion of its debt that was due to mature before 2017. The Company's three unsecured senior notes transactions in 2012 marked the first time that the Company accessed the unsecured debt markets since 2008, and the Company saw a material improvement in the interest rates associated with its unsecured senior notes issued in the latter half of 2012, as compared to the notes issued in the first half of the year, following an upgrade in the Company's corporate credit ratings. Subsequent to year end, the Company was also able to further reduce the interest costs associated with its October 2012 Secured Credit Facility by amending and restating that facility (see Note 17 for further details).

While the Company has benefited from generally improving conditions in the economy and real estate markets, it nonetheless continues to be impacted by the effects of the recent financial crisis. Non-performing assets and the carrying costs of owned real estate remain a drag on the Company's earnings. In addition, the Company's necessary focus on deleveraging and compliance with its debt covenants have curtailed its origination of new investments. The Company continues to work on resolving its remaining non-performing loans and stabilizing and extracting value from its owned real estate. Continued improvement in the Company's financial condition and operating results and its ability to generate sufficient liquidity at market rates are dependent on a sustained economic recovery, which cannot be predicted with certainty.

As of December 31, 2012, the Company had $545.3 million of debt maturities due before December 31, 2013, with a majority of that amount due in October 2013. The Company's capital sources to meet its debt maturities through 2013 will primarily include cash on hand, as well as debt refinancings, proceeds from unencumbered asset sales and loan repayments from borrowers, and may include equity capital raising transactions. As of December 31, 2012, the Company had unencumbered assets with a carrying value of approximately $3.01 billion. As further described in Note 17, in January 2013 the Company entered into a definitive agreement to sell its interest in LNR for approximate net proceeds of $220.0 million. This transaction is expected to close in the second quarter of 2013, subject to customary closing conditions.

The Company will adjust its plans as appropriate in response to changes in its expectations and changes in market conditions. It is also not possible for the Company to predict whether improving economic trends will continue, or to quantify the impact of these or other trends on its financial results. If the Company fails to repay its obligations as they become due, it would be an event of default under the relevant debt instruments, which could result in a cross-default and acceleration of the Company's other outstanding debt obligations, all of which would have a material adverse effect on the Company.

Unfunded Commitments—As of December 31, 2012, the maximum amount of fundings the Company may be required to make under each category, assuming all performance hurdles and milestones are met under the Performance-Based Commitments, that it approves all Discretionary Fundings and that 100% of its capital committed to Strategic Investments is drawn down, are as follows ($ in thousands):



	Loans		Real Estate		Strategic Investments		Total
Performance-Based Commitments	$	44,751	$	36,318	$	—	$	81,069
Discretionary Fundings	102		—		—		102
Strategic investments	—		—		47,322		47,322
Total	$	44,853	$	36,318	$	47,322	$	128,493

Other Commitments—Total operating lease expense for the years ended December 31, 2012, 2011 and 2010 were $6.5 million, $7.2 million and $7.3 million, respectively. Future minimum lease obligations under non-cancelable operating leases are as follows ($ in thousands):



2013	$	5,479
2014	$	4,835
2015	$	4,469
2016	$	4,582
2017	$	4,210
Thereafter	$	9,265

The Company also has issued letters of credit totaling $12.6 million in connection with five of its investments.

Legal Proceedings—The Company and/or one or more of its subsidiaries is party to various pending litigation matters that are considered ordinary routine litigation incidental to the Company's business as a finance and investment company focused on the commercial real estate industry, including loan foreclosure and foreclosure-related proceedings.

On June 4, 2012, the Company reached an agreement in principle with the plaintiffs' Court-appointed representatives in the previously reported Citiline class action to settle the litigation. Settlement payments will be primarily funded by the Company's insurance carriers, with the Company contributing $2.0 million to the settlement, which is included in "Other expense" on the Consolidated Statements of Operations for the year ended December 31, 2012. See "Part II. Item 1. Legal Proceedings" for further details and for other disclosures related to legal proceedings.

The Company evaluates, on a quarterly basis, developments in legal proceedings that could require a liability to be accrued and/or disclosed. Based on its current knowledge, and after consultation with legal counsel, the Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding that would have a material adverse effect on the Company's consolidated financial condition.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk Management and Derivatives

12 Months Ended

Dec. 31, 2012

Risk Management and Derivatives

Risk management

In the normal course of its on-going business operations, the Company encounters economic risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different points in time and potentially at different bases, than its interest-earning assets. Credit risk is the risk of default on the Company's lending investments or leases that result from a borrower's or tenant's inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of loans and other lending investments due to changes in interest rates or other market factors, including the rate of prepayments of principal and the value of the collateral underlying loans, the valuation of real estate assets by the Company as well as changes in foreign currency exchange rates.

Risk concentrations—As of December 31, 2012, the Company's total investment portfolio was comprised of the following property/collateral types ($ in thousands)(1):



Property/Collateral Types	Real Estate Finance		Net Lease Assets		Operating Properties		Land		Total		% of Total
Land	$	297,039	$	—	$	—	$	970,593	$	1,267,632	22.3	%
Office	124,058		301,304		258,977		—		684,339		12.0	%
Condominium	237,534		—		385,229		—		622,763		11.0	%
Industrial / R&D	94,617		472,149		55,439		—		622,205		10.9	%
Retail	293,651		50,529		184,000		—		528,180		9.3	%
Entertainment / Leisure	98,423		414,849		14		—		513,286		9.0	%
Hotel	298,293		91,746		84,375		—		474,414		8.3	%
Mixed Use / Mixed Collateral	237,989		—		179,337		—		417,326		7.3	%
Other Property Types	181,481		9,424		24,541		—		215,446		3.7	%
Strategic Investments	—		—		—		—		351,225		6.2	%
Total	$	1,863,085	$	1,340,001	$	1,171,912	$	970,593	$	5,696,816	100.0	%

Explanatory Note:

_______________________________________________________________________________


(1)	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.

As of December 31, 2012, the Company's total investment portfolio had the following characteristics by geographical region ($ in thousands)(1):



Geographic Region	Real Estate Finance		Net Lease Assets		Operating Properties		Land		Total		% of Total
West	$	340,457	$	340,896	$	237,496	$	367,470	$	1,286,319	22.6	%
Northeast	421,660		317,003		175,894		180,744		1,095,301		19.2	%
Southeast	308,559		201,535		251,410		89,035		850,539		14.9	%
Southwest	197,478		182,329		209,424		120,293		709,524		12.5	%
Mid-Atlantic	43,866		104,205		217,379		180,290		545,740		9.6	%
International(2)	308,210		—		—		—		308,210		5.4	%
Central	159,460		68,434		61,938		9,500		299,332		5.2	%
Northwest	83,236		56,409		18,371		23,261		181,277		3.2	%
Various	159		69,190		—		—		69,349		1.2	%
Strategic Investments(2)	—		—		—		—		351,225		6.2	%
Total	$	1,863,085	$	1,340,001	$	1,171,912	$	970,593	$	5,696,816	100.0	%

Explanatory Notes:

_______________________________________________________________________________


(1)	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.


(2)	Strategic investments includes $36.6 million of international assets. Additionally, international and strategic investments include $228.7 million of European assets, including $117.6 million in Germany and $111.1 million in the United Kingdom.

Concentrations of credit risks arise when a number of borrowers or tenants related to the Company's investments are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. The Company monitors various segments of its portfolio to assess potential concentrations of credit risks. Management believes the current portfolio is reasonably well diversified and does not contain any significant concentration of credit risks.

Substantially all of the Company's real estate as well as assets collateralizing its loans receivable are located in the United States, with California 15.5% representing the only significant concentration (greater than 10.0%) as of December 31, 2012. The Company's portfolio contains significant concentrations in the following asset types as of December 31, 2012: land 22.3%, office 12.0%, condominium 11.0% and industrial/R&D 10.9%.

The Company underwrites the credit of prospective borrowers and tenants and often requires them to provide some form of credit support such as corporate guarantees, letters of credit and/or cash security deposits. Although the Company's loans and real estate assets are geographically diverse and the borrowers and tenants operate in a variety of industries, to the extent the Company has a significant concentration of interest or operating lease revenues from any single borrower or tenant, the inability of that borrower or tenant to make its payment could have an adverse effect on the Company. As of December 31, 2012, the Company's five largest borrowers or tenants collectively accounted for approximately $88.2 million of the Company's aggregate annualized interest and operating lease revenue, of which no single customer accounts for more than 7.2%.

Derivatives

The Company's use of derivative financial instruments is primarily limited to the utilization of interest rate hedges and foreign exchange hedges. The principal objective of such hedges is to minimize the risks and/or costs associated with the Company's operating and financial structure and to manage its exposure to foreign exchange rates. Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements, foreign exchange rate movements, and other identified risks, but may not meet the strict hedge accounting requirements.

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2012 and 2011 ($ in thousands):



	Derivative Assets as of December 31,						Derivative Liabilities as of December 31,
	2012			2011			2012			2011
Derivative	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	N/A	$	—	N/A	$	—	Other Liabilities	$	2,855	Other Liabilities	$	1,342
Cash flow interest rate swap	N/A	—		N/A	—		Other Liabilities	580		Other Liabilities	1,031
Total		$	—		$	—		$	3,435		$	2,373

The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for the years ended December 31, 2012 and 2011 ($ in thousands):



Derivatives Designated in Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion)			Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion)			Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion)
For Year Ended December 31, 2012
Cash flow interest rate swap	Interest Expense	$	(968	)	$	(44	)	N/A
For the Year Ended December 31, 2011
Cash flow interest rate swap	Interest Expense	$	(1,553	)	$	(180	)	N/A



		Amount of Gain or (Loss) Recognized in Income on Derivative
	Location of Gain or (Loss) Recognized in Income on Derivative	For the Years Ended December 31,
Derivatives not Designated in Hedging Relationships		2012			2011		2010
Foreign Exchange Contracts	Other Expense	$	(8,920	)	$	17,406	$	(1,010	)

The Company utilizes foreign exchange derivatives to limit its exposure to changes in exchange rates on certain assets denominated in foreign currencies. The Company marks its foreign investments to market each quarter based on current exchange rates and records the gain or loss through “Other expense” on its Consolidated Statements of Operations for loan investments or “Accumulated comprehensive income,” on its Consolidated Balance Sheets for net investments in foreign subsidiaries. Gains or losses on the related foreign exchange derivatives are recorded in “Other Expense,” as noted in the table above, and offset the marks taken on the assets. During the years ended December 31, 2012, 2011 and 2010, the Company recorded net losses related to foreign investments of $0.7 million, $2.3 million and $0.1 million, in its Consolidated Statements of Operations.

The following table presents the Company's foreign currency derivatives outstanding as of December 31, 2012 ($ in thousands):



Derivative Type	Notional Amount		Notional (USD Equivalent)		Maturity
Sells EUR/Buys USD Forward	€	109,000	$	143,925	January 2013
Sells GBP/Buys USD Forward	£	52,850	$	85,856	January 2013
Sells CAD/Buys USD Forward	C$	50,700	$	51,065	January 2013

Qualifying Cash Flow Hedges—In October 2012, the Company entered into an interest rate swap to convert its variable rate debt to fixed rate on a new $28.0 million secured term loan maturing in 2019. The following table presents the Company's interest rate swap outstanding as of year ended December 31, 2012 ($ in thousands).



Derivative Type	Notional Amount		Variable Rate	Fixed Rate	Maturity
Interest Rate Swap	$	28,000	LIBOR + 2.00%	3.75%	November 2019

During the year ended December 31, 2012, the Company terminated its previously outstanding interest rate swaps in conjunction with the early repayment of its secured term loans (see also Note 8).

Over the next 12 months, the Company expects that $3.2 million of expense and $0.6 million of income related to terminated cash flow hedges, will be reclassified from "Accumulated other comprehensive income (loss)" into earnings.

Credit risk-related contingent features—The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

In connection with its foreign currency derivatives, as of December 31, 2012 and December 31, 2011, the Company has posted collateral of $9.6 million, which is included in "Restricted cash" on the Company's Consolidated Balance Sheets.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708775-113959

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80748-113994

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708773-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Equity

The Company's charter provides for the issuance of up to 200.0 million shares of Common Stock, par value $0.001 per share and 30.0 million shares of preferred stock. As of December 31, 2012, 142.7 million common shares were issued and 83.8 million common shares were outstanding.

Preferred Stock—The Company had the following series of Cumulative Redeemable Preferred Stock outstanding as of December 31, 2012 and 2011:



				Cumulative Preferential Cash Dividends(1)(2)
Series	Shares Issued and Outstanding (in thousands)	Par Value		Rate per Annum of the $25.00 Liquidation Preference		Equivalent to Fixed Annual Rate (per share)
D	4,000	$	0.001	8.000	%	$	2.00
E	5,600	$	0.001	7.875	%	$	1.97
F	4,000	$	0.001	7.8	%	$	1.95
G	3,200	$	0.001	7.65	%	$	1.91
I	5,000	$	0.001	7.50	%	$	1.88
	21,800

Explanatory Notes:

_______________________________________________________________________________

(1)

Holders of shares of the Series D, E, F, G and I preferred stock are entitled to receive dividends, when and as declared by the Board of Directors, out of funds legally available for the payment of dividends. Dividends are cumulative from the date of original issue and are payable quarterly in arrears on or before the 15th day of each March, June, September and December or, if not a business day, the next succeeding business day. Any dividend payable on the preferred stock for any partial dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends will be payable to holders of record as of the close of business on the first day of the calendar month in which the applicable dividend payment date falls or on another date designated by the Board of Directors of the Company for the payment of dividends that is not more than 30 nor less than 10 days prior to the dividend payment date.


(2)	The Company declared and paid dividends of $8.0 million, $11.0 million, $7.8 million, $6.1 million and $9.4 million on its Series D, E, F, G and I preferred stock, respectively, during each of the years ended December 31, 2012 and 2011, all of which qualified as return of capital for tax reporting purposes. There are no dividend arrearages on any of the preferred shares currently outstanding.

The Series D, E, F, G and I Cumulative Redeemable Preferred Stock are redeemable without premium at the option of the Company at their respective liquidation preferences beginning on October 8, 2002, July 18, 2008, September 29, 2008, December 19, 2008 and March 1, 2009, respectively.

High Performance Unit Program

In May 2002, the Company's shareholders approved the iStar Financial High Performance Unit ("HPU") Program. The program entitled employee participants ("HPU Holders") to receive distributions if the total rate of return on the Company's Common Stock (share price appreciation plus dividends) exceeded certain performance thresholds over a specified valuation period. The Company established seven HPU plans that had valuation periods ending between 2002 and 2008 and the Company has not established any new HPU plans since 2005. HPU Holders purchased interests in the High Performance Common Stock for an aggregate initial purchase price of $9.8 million. The remaining four plans that had valuation periods which ended in 2005, 2006, 2007 and 2008, did not meet their required performance thresholds, none of the plans were funded and the Company redeemed the participants' units.

The 2002, 2003 and 2004 plans all exceeded their performance thresholds and are entitled to receive distributions equivalent to the amount of dividends payable on 819,254 shares, 987,149 shares and 1,031,875 shares, respectively, of the Company's Common Stock as and when such dividends are paid on the Company's Common Stock. Each of these three plans has 5,000 shares of High Performance Common Stock associated with it, which is recorded as a separate class of stock within shareholders' equity on the Company's Consolidated Balance Sheets. High Performance Common Stock carries 0.25 votes per share. Net income allocable to common shareholders is reduced by the HPU holders' share of earnings.

Dividends—In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, excluding net capital gains, and must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate federal income taxes. The Company has recorded net operating losses and may record net operating losses in the future, which may reduce its taxable income in future periods and lower or eliminate entirely the Company's obligation to pay dividends for such periods in order to maintain its REIT qualification. As of December 31, 2011, the Company had $423.9 million of net operating loss carryforwards at the corporate REIT level that can generally be used to offset both ordinary and capital taxable income in future years and will expire through 2031 if unused. The amount net of operating loss carryforwards as of December 31, 2012 will be subject to finalization of the 2012 tax returns. Because taxable income differs from cash flow from operations due to non-cash revenues and expenses (such as depreciation and certain asset impairments), in certain circumstances, the Company may generate operating cash flow in excess of its dividends or, alternatively, may need to make dividend payments in excess of operating cash flows. The Company's 2012 Secured Credit Facilities and 2011 Secured Credit Facilities permit the Company to distribute 100% of its REIT taxable income on an annual basis, for so long as the Company maintains its qualification as a REIT. The 2012 and 2011 Secured Credit Facilities restrict the Company from paying any common dividends if it ceases to qualify as a REIT. The Company did not declare or pay any Common Stock dividends for the years ended December 31, 2012 and 2011.

Stock Repurchase Programs—On May 16, 2012, the Company's Board of Directors approved a stock repurchase program that authorized the repurchase of up to $20.0 million of its Common Stock from time to time in open market and privately negotiated purchases, including pursuant to one or more trading plans.

During the year ended December 31, 2012, the Company repurchased 0.8 million shares of its outstanding Common Stock for approximately $4.6 million, at an average cost of $5.69 per share. As of December 31, 2012, the Company had $16.0 million of Common Stock available to repurchase under its Board authorized stock repurchase programs.

Accumulated Other Comprehensive Income (Loss)—"Accumulated other comprehensive income (loss)" reflected in the Company's shareholders' equity is comprised of the following ($ in thousands):



	As of December 31,
	2012			2011
Unrealized gains on available-for-sale securities	$	867		$	589
Unrealized gains on cash flow hedges	607			1,986
Unrealized losses on cumulative translation adjustment	(2,659		)	(2,903		)
Accumulated other comprehensive income (loss)	$	(1,185	)	$	(328	)

Stock-Based Compensation Plans and Employee Benefits

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation Plans and Employee Benefits

On May 27, 2009, the Company's shareholders approved the Company's 2009 Long-Term Incentive Plan (the "2009 LTIP") which is designed to provide incentive compensation for officers, key employees, directors and advisors of the Company. The 2009 LTIP provides for awards of stock options, shares of restricted stock, phantom shares, restricted stock units, dividend equivalent rights and other share-based performance awards. A maximum of 8,000,000 shares of Common Stock may be awarded under the 2009 LTIP, plus up to an additional 500,000 shares to the extent that a corresponding number of equity awards previously granted under the Company's 1996 Long-Term Incentive Plan expire or are canceled or forfeited. All awards under the 2009 LTIP are made at the discretion of the Board of Directors or a committee of the Board of Directors.

The Company's 2006 Long-Term Incentive Plan (the "2006 LTIP") is designed to provide equity-based incentive compensation for officers, key employees, directors, consultants and advisors of the Company. The 2006 LTIP provides for awards of stock options, shares of restricted stock, phantom shares, dividend equivalent rights and other share-based performance awards. A maximum of 4,550,000 shares of Common Stock may be subject to awards under the 2006 LTIP provided that the number of shares of Common Stock reserved for grants of options designated as incentive stock options is 1.0 million, subject to certain anti-dilution provisions in the 2006 LTIP. All awards under this Plan are at the discretion of the Board of Directors or a committee of the Board of Directors.

The Company's 2007 Incentive Compensation Plan ("Incentive Plan") was approved and adopted by the Board of Directors in 2007 in order to establish performance goals for selected officers and other key employees and to determine bonuses that will be awarded to those officers and other key employees based on the extent to which they achieve those performance goals. Equity-based awards may be made under the Incentive Plan, subject to the terms of the Company's equity incentive plans.

As of December 31, 2012, an aggregate of 4.1 million shares remain available for issuance pursuant to future awards under the Company's 2006 and 2009 Long-Term Incentive Plans.

Stock-based Compensation—The Company recorded stock-based compensation expense of $15.3 million, $29.7 million and $19.4 million for the years ended December 31, 2012, 2011 and 2010, respectively, in "General and administrative" on the Company's Consolidated Statements of Operations. As of December 31, 2012, there was $10.1 million of total unrecognized compensation cost related to all unvested restricted stock units that is expected to be recognized over a weighted average remaining vesting/service period of 0.59 years.

Restricted Stock Units

Changes in non-vested restricted stock units during the year ended December 31, 2012 were as follows ($ in thousands, except per share amounts):



	Number of Shares		Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Non-vested at December 31, 2011	9,985		$	4.70
Granted	—		$	—
Vested	(4,595	)	$	4.06
Forfeited	(114	)	$	5.99
Non-vested at December 31, 2012	5,276		$	5.24	$	43,000

The total fair value of restricted stock units vested during the years ended December 31, 2012, 2011 and 2010 was $29.1 million, $15.5 million and $1.7 million, respectively.

2012 Activity—During the year ended December 31, 2012, 4,594,572 restricted stock units vested and 2,610,816 were issued to employees, net of statutory minimum required tax withholdings. These vested restricted stock units were primarily comprised of 1,947,551 Amended Units which vested on January 1, 2012 (see below), 1,340,620 service-based restricted stock units granted to employees in February 2010 that cliff vested on February 17, 2012 and 806,518 performance-based restricted stock units granted to the Company's Chairman and Chief Executive Officer in March 2010 that cliff vested on March 2, 2012. The performance-based units had certain performance and service conditions, relating to reductions in the Company's general and administrative expenses, retirement of debt and continued employment, which were satisfied during the year ended December 31, 2010.

As of December 31, 2012, the Company had the following restricted stock awards outstanding:

•

1,200,000 service-based restricted stock units granted to the Company's Chairman and Chief Executive Officer that will vest in two equal installments on June 15 of 2013 and 2014. Upon vesting of these units, the holder will receive shares of the Company's Common Stock in the amount of the vested units, net of statutory minimum required tax withholdings. These awards carry dividend equivalent rights that entitle the holder to receive dividend payments prior to vesting, if and when dividends are paid on shares of the Company's Common Stock.

•

3,438,607 restricted stock units originally granted to executives and other officers of the Company on December 19, 2008 (the "Original Units") and subsequently modified in July 2011 (the "Amended Units"). The number of Amended Units is equal to 75% of the Original Units granted to an employee less, in the case of each executive level employee, the number of restricted stock units granted to the executive in March 2011. The remaining Amended Units will vest in two equal installments on January 1, 2013 and 2014, so long as the employee remains employed by the Company on the vesting dates, subject to certain accelerated vesting rights in the event of termination of employment without cause. Upon vesting of these units, holders will receive shares of the Company's Common Stock in the amount of the vested units, net of statutory minimum required tax withholdings. These awards carry dividend equivalent rights that entitle the holders to receive dividend payments prior to vesting, if and when dividends are paid on shares of the Company's Common Stock.

•

637,485 service-based restricted stock units granted to employees with original vesting terms ranging from two years to five years. Upon vesting of these units, holders will receive shares of the Company's Common Stock in the amount of the vested units, net of statutory minimum required tax withholdings. These awards carry dividend equivalent rights that entitle the holders to receive dividend payments prior to vesting, if and when dividends are paid on shares of the Company's Common Stock.

Market-condition award assumptions—The fair values of the market-condition based restricted stock units, were determined by utilizing a Monte Carlo model to simulate a range of possible future stock prices for the Company's Common Stock. The following assumptions were used to estimate the fair value of market-condition based awards:



	Valued as of
	July 1, 2011(1)
Risk-free interest rate	0.092	%
Expected stock price volatility	57.75	%
Expected annual dividend	—

Explanatory Note:

_______________________________________________________________________________


(1)	The modified December 19, 2008 market-condition based restricted stock units were measured on July 1, 2011, the date the Company's Board of Directors' approved the modification of the award.

Stock Options—All remaining stock options expired during the year ended December 31, 2012.

Directors' Awards—Non-employee directors are awarded common stock equivalents ("CSEs") and restricted shares at the time of the annual shareholders' meeting in consideration for their services on the Company's Board of Directors. The CSEs and restricted shares generally vest at the time of the next annual shareholders meeting and pay dividends in an amount equal to the dividends paid on an equivalent number of shares of the Company's Common Stock from the date of grant, as and when dividends are paid on the Common Stock.

During the year ended December 31, 2012, the Company awarded to Directors 77,113 CSEs and restricted shares at a fair value per share of $5.67 at the time of grant. These CSEs and restricted shares have a one year vesting period and pay dividends in an amount equal to the dividends paid on the equivalent number of shares of the Company's Common Stock from the date of grant, as and when dividends are paid on Common Stock. In addition, during the year ended December 31, 2012, the Company issued 35,476 shares to a former director in settlement of previously vested CSE awards. As of December 31, 2012, there were 384,751 CSEs and restricted shares granted to members of the Company's Board of Directors that remained outstanding with an aggregate intrinsic value of $3.1 million.

During 2011, the Company's Board of Directors decided, pursuant to the terms of the non-employee directors deferral plan, to require settlement of CSEs in shares of the Company's Common Stock, thereby eliminating the cash settlement option. This modification converted these liability-based awards to equity awards and as such, the Company reclassified $2.4 million from "Accounts payable, accrued expenses and other liabilities" to "Additional paid-in capital" on the Company's Consolidated Balance Sheet during the year ended December 31, 2011.

401(k) Plan—The Company has a savings and retirement plan (the "401(k) Plan"), which is a voluntary, defined contribution plan. All employees are eligible to participate in the 401(k) Plan following completion of three months of continuous service with the Company. Each participant may contribute on a pretax basis up to the maximum percentage of compensation and dollar amount permissible under Section 402(g) of the Internal Revenue Code not to exceed the limits of Code Sections 401(k), 404 and 415. At the discretion of the Board of Directors, the Company may make matching contributions on the participant's behalf of up to 50% of the first 10% of the participant's annual compensation. The Company made gross contributions of approximately $0.9 million, $0.9 million and $1.1 million for the years ended December 31, 2012, 2011 and 2010, respectively.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

EPS is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit (HPU) Program (see Note 11). These HPU units are treated as a separate class of common stock.

The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted earnings per share calculations ($ in thousands, except for per share data):



	For the Years Ended December 31,
	2012			2011			2010
Income (loss) from continuing operations	$	(312,694	)	$	(49,206	)	$	(206,997	)
Net (income) loss attributable to noncontrolling interests	1,500			3,629			(523		)
Income from sales of residential property	63,472			5,721			—
Preferred dividends	(42,320		)	(42,320		)	(42,320		)
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders, HPU holders and Participating Security Holders	$	(290,042	)	$	(82,176	)	$	(249,840	)



	For the Years Ended December 31,
	2012			2011			2010
Earnings allocable to common shares:
Numerator for basic earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(280,534	)	$	(79,627	)	$	(242,440	)
Income (loss) from discontinued operations	(18,826		)	(7,091		)	16,324
Gain from discontinued operations	26,363			24,331			262,395
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(272,997	)	$	(62,387	)	$	36,279
Numerator for diluted earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(280,534	)	$	(79,627	)	$	(242,440	)
Income (loss) from discontinued operations	(18,826		)	(7,091		)	16,324
Gain from discontinued operations	26,363			24,331			262,395
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(272,997	)	$	(62,387	)	$	36,279
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding for basic earnings per common share	83,742			88,688			93,244
Add: effect of assumed shares issued under treasury stock method for restricted shares	—			—			—
Add: effect of joint venture shares	—			—			—
Weighted average common shares outstanding for diluted earnings per common share	83,742			88,688			93,244
Basic earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.35	)	$	(0.89	)	$	(2.60	)
Income (loss) from discontinued operations	(0.22		)	(0.08		)	0.18
Gain from discontinued operations	0.31			0.27			2.81
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.26	)	$	(0.70	)	$	0.39
Diluted earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.35	)	$	(0.89	)	$	(2.60	)
Income (loss) from discontinued operations	(0.22		)	(0.08		)	0.18
Gain from discontinued operations	0.31			0.27			2.81
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.26	)	$	(0.70	)	$	0.39



	For the Years Ended December 31,
	2012			2011			2010
Earnings allocable to High Performance Units:
Numerator for basic earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,509	)	$	(2,549	)	$	(7,400	)
Income (loss) from discontinued operations	(638		)	(227		)	497
Gain from discontinued operations	894			779			7,987
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,253	)	$	(1,997	)	$	1,084
Numerator for diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,509	)	$	(2,549	)	$	(7,400	)
Income (loss) from discontinued operations	(638		)	(227		)	497
Gain from discontinued operations	894			779			7,987
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,253	)	$	(1,997	)	$	1,084
Denominator for basic and diluted earnings per HPU share:
Weighted average High Performance Units outstanding for basic and diluted earnings per share	15			15			15
Basic earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(633.94	)	$	(169.93	)	$	(493.33	)
Income (loss) from discontinued operations	(42.53		)	(15.13		)	33.13
Gain from discontinued operations	59.60			51.93			532.47
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(616.87	)	$	(133.13	)	$	72.27
Diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(633.94	)	$	(169.93	)	$	(493.33	)
Income (loss) from discontinued operations	(42.53		)	(15.13		)	33.13
Gain from discontinued operations	59.60			51.93			532.47
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(616.87	)	$	(133.13	)	$	72.27

For the years ended December 31, 2012, 2011 and 2010 the following shares were anti-dilutive ($ in thousands):



	For the Years Ended December 31,
	2012	2011	2010
Joint venture shares	298	298	298
Stock options	—	44	143

Fair Values

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Values

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs to be used in valuation techniques to measure fair value:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

Certain of the Company's assets and liabilities are recorded at fair value either on a recurring or non-recurring basis. Assets required to be marked-to-market and reported at fair value every reporting period are classified as being valued on a recurring basis. Other assets not required to be recorded at fair value every period may be recorded at fair value if a specific provision or other impairment is recorded within the period to mark the carrying value of the asset to market as of the reporting date. Such assets are classified as being valued on a non-recurring basis.

The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):



			Fair Value Using
	Total		Quoted market prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
As of December 31, 2012
Recurring basis:
Derivative liabilities	$	3,435	$	—	$	3,435	$	—
Non-recurring basis:
Impaired loans	$	57,201	$	—	$	—	$	57,201
Impaired real estate	$	31,597	$	—	$	7,649	$	23,948
As of December 31, 2011
Recurring basis:
Derivative liabilities	$	2,373	$	—	$	2,373	$	—
Non-recurring basis:
Impaired loans	$	271,968	$	—	$	—	$	271,968
Impaired real estate	$	43,660	$	—	$	—	$	43,660

The following table provides quantitative information about Level 3 fair value measures of the Company's non-recurring financial and non-financial assets ($ in thousands):

Quantitative Information about Level 3 Fair Value Measurements



	Fair Value as of December 31, 2012		Valuation Technique(s)	Unobservable Input	Weighted Average
Impaired loans	$	57,201	Various(1)	Discount rate	10.9	%
				Average annual revenue growth	1.0	%
				Capitalization rate	8.9	%
				Average annual increase in occupancy	0.2	%
Impaired real estate	23,948		Discounted cash flow	Discount rate	12.3	%
				Capitalization rate	9.0	%
				Average annual revenue growth	3.7	%
				Remaining inventory sell out period (in years)	5.0
				Average annual increase in occupancy	(1.0	)%
Total	$	81,149

Explanatory Note:

_______________________________________________________________________________

(1)One loan with a value of $19.7 million was valued using discounted cash flows. The remaining loan with a value of $37.5 million was valued based on a discounted pay-off offer provided by the borrower that the Company believes approximates fair value.

Fair values of financial instruments—The Company's estimated fair values of its loans receivable and debt obligations were $1.9 billion and $4.9 billion, respectively, as of December 31, 2012 and $2.8 billion and $5.5 billion, respectively, as of December 31, 2011. The carrying value of other financial instruments including cash and cash equivalents, restricted cash, accrued interest receivable and accounts payable, approximate the fair values of the instruments. Cash and cash equivalents and restricted cash values are considered Level 1 on the fair value hierarchy. The fair value of other financial instruments, including derivative assets and liabilities and marketable securities are included in the previous fair value hierarchy table.

Given the nature of certain assets and liabilities, clearly determinable market based valuation inputs are often not available, therefore, these assets and liabilities are valued using internal valuation techniques. Subjectivity exists with respect to these internal valuation techniques, therefore, the fair values disclosed may not ultimately be realized by the Company if the assets were sold or the liabilities were settled with third parties. The methods the Company used to estimate the fair values presented in the three tables above are described more fully below for each type of asset and liability.

Derivatives—The Company uses interest rate swaps and foreign currency derivatives to manage its interest rate and foreign currency risk. The valuation of these instruments is determined using discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the respective counterparty's non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of non-performance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. In addition, upon adoption of ASU 2011-04, the Company made an accounting policy election to measure derivative financial instruments subject to master netting agreements on a net basis. The Company has determined that the significant inputs used to value its derivatives fall within Level 2 of the fair value hierarchy.

Impaired loans—The Company's loans identified as being impaired are nearly all collateral dependent loans and are evaluated for impairment by comparing the estimated fair value of the underlying collateral, less costs to sell, to the carrying value of each loan. Due to the nature of the individual properties collateralizing the Company's loans, the Company generally uses a discounted cash flow methodology through internally developed valuation models to estimate the fair value of the collateral. This approach requires the Company to make judgments in respect to significant unobservable inputs, which may include discount rates, capitalization rates and the timing and amounts of estimated future cash flows. For income producing properties, cash flows generally include property revenues, operating costs and capital expenditures that are based on current observable market rates and estimates for market rate growth and occupancy levels. For other real estate, cash flows may include lot and unit sales that are based on current observable market rates and estimates for annual revenue growth, operating costs and costs of completion and the remaining inventory sell out periods. The Company will also consider market comparables if available. In more limited cases, the Company obtains external "as is" appraisals for loan collateral, generally when third party participations exist, and appraised values may be discounted when real estate markets rapidly deteriorate. The Company has determined that significant inputs used in its internal valuation models and appraisals fall within Level 3 of the fair value hierarchy.

Impaired real estate—If the Company determines a real estate asset available and held for sale is impaired, it records an impairment charge to adjust the asset to its estimated fair market value less costs to sell. Due to the nature of individual real estate properties, the Company generally uses a discounted cash flow methodology through internally developed valuation models to estimate the fair value of the assets. This approach requires the Company to make judgments with respect to significant unobservable inputs, which may include discount rates, capitalization rates and the timing and amounts of estimated future cash flows. For income producing properties, cash flows generally include property revenues, operating costs and capital expenditures that are based on current observable market rates and estimates for market rate growth and occupancy levels. For other real estate, cash flows may include lot and unit sales that are based on current observable market rates and estimates for annual market rate growth, operating costs and costs of completion and the remaining inventory sell out periods. The Company will also consider market comparables if available. In more limited cases, the Company obtains external "as is" appraisals for real estate assets and appraised values may be discounted when real estate markets rapidly deteriorate. The Company has determined that significant inputs used in its internal valuation models and appraisals fall within Level 3 of the fair value hierarchy. Additionally, in certain cases, if the Company is under contract to sell an asset, it will mark the asset to the contracted sales price less costs to sell. The Company considers this to be a Level 2 input under the fair value hierarchy.

Loans receivable—The Company estimates the fair value of its performing loans using a discounted cash flow methodology. This method discounts estimated future cash flows using rates management determines best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. The Company determined that the significant inputs used to value its loans and other lending investments fall within Level 3 of the fair value hierarchy.

Debt obligations, net—For debt obligations traded in secondary markets, the Company uses market quotes, to the extent they are available, to determine fair value. For debt obligations not traded in secondary markets, the Company determines fair value using a discounted cash flow methodology, whereby contractual cash flows are discounted at rates that management determines best reflect current market interest rates that would be charged for debt with similar characteristics and credit quality. The Company has determined that the inputs used to value its debt obligations under the discounted cash flow methodology fall within Level 3 of the fair value hierarchy.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

The Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Real Estate Finance, Net Leasing, Operating Properties and Land. The Real Estate Finance segment includes all of the Company's activities related to senior and mezzanine real estate loans. The Net Leasing segment includes all of the Company's activities related to the ownership and leasing of corporate facilities to single creditworthy tenants. The Operating Properties segment includes all of the Company's activities and operations related to its commercial and residential properties, which were primarily acquired through the resolution of non-performing loans and are generally being repositioned or redeveloped with the objective of maximizing their value through the infusion of capital and/or intensive asset management efforts. The Land segment includes the Company's activities related to its land assets, which were also primarily acquired through the resolution of non-performing loans.

The Company evaluates performance based on the following financial measures for each segment, and has conformed the prior periods presentation for the change in composition of its business segments, ($ in thousands):



	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)			Company Total
For the Year Ended December 31, 2012
Operating lease income	$	—		$	151,992		$	65,500		$	1,527		$	—		$	219,019
Interest income	133,410			—			—			—			—			133,410
Other income	8,613			—			32,820			2,635			3,975			48,043
Total revenue	$	142,023		$	151,992		$	98,320		$	4,162		$	3,975		$	400,472
Earnings (loss) from equity method investments	—			2,632			25,142			(6,138		)	81,373			103,009
Income from sales of residential property	—			—			63,472			—			—			63,472
Net operating income from discontinued operations(2)	—			4,725			886			—			—			5,611
Gain from discontinued operations	—			27,257			—			—			—			27,257
Revenue and other earnings	$	142,023		$	186,606		$	187,820		$	(1,976	)	$	85,348		$	599,821
Real estate expense	—			(24,255		)	(100,258		)	(27,314		)	—			(151,827		)
Other expense	(4,775		)	—			—			—			(12,491		)	(17,266		)
Direct expenses	$	(4,775	)	$	(24,255	)	$	(100,258	)	$	(27,314	)	$	(12,491	)	$	(169,093	)
Direct segment profit (loss)	$	137,248		$	162,351		$	87,562		$	(29,290	)	$	72,857		$	430,728
Allocated interest expense(3)	(124,208		)	(83,658		)	(66,001		)	(43,993		)	(38,301		)	(356,161		)
Allocated general and administrative(4)	(14,998		)	(9,484		)	(7,760		)	(7,405		)	(25,916		)	(65,563		)
Segment profit (loss)(5)	$	(1,958	)	$	69,209		$	13,801		$	(80,688	)	$	8,640		$	9,004
Other significant non-cash items:
Provision for loan losses	$	81,740		$	—		$	—		$	—		$	—		$	81,740
Impairment of assets(3)	$	—		$	6,670		$	28,501		$	205		$	978		$	36,354
Depreciation and amortization(3)	$	—		$	39,250		$	28,450		$	1,276		$	1,810		$	70,786
Capitalized expenditures	$	—		$	10,993		$	51,579		$	20,497		$	—		$	83,069
As of December 31, 2012
Real estate
Real estate, at cost	$	—		$	1,639,320		$	801,214		$	786,114		$	—		$	3,226,648
Less: accumulated depreciation	—			(315,699		)	(109,634		)	(2,292		)	—			(427,625		)
Real estate, net	$	—		$	1,323,621		$	691,580		$	783,822		$	—		$	2,799,023
Real estate available and held for sale	—			—			454,587			181,278			—			635,865
Total real estate	$	—		$	1,323,621		$	1,146,167		$	965,100		$	—		$	3,434,888
Loans receivable, net	1,829,985			—			—			—			—			1,829,985
Other investments	—			16,380			25,745			5,493			351,225			398,843
Total portfolio assets	$	1,829,985		$	1,340,001		$	1,171,912		$	970,593		$	351,225		$	5,663,716
Cash and other assets	9,832			105,595			60,500			9,638			301,508			487,073
Total assets	$	1,839,817		$	1,445,596		$	1,232,412		$	980,231		$	652,733		$	6,150,789



For the Year Ended December 31, 2011	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)				Company Total
Operating lease income	$	—		$	147,151		$	51,153		$	174		$	—			$	198,478
Interest income	226,871			—			—			—			—				226,871
Other income	3,176			—			32,538			1,635			2,371				39,720
Total revenue	$	230,047		$	147,151		$	83,691		$	1,809		$	2,371			$	465,069
Earnings (loss) from equity method investments	—			2,566			(626		)	(7,213		)	100,364				95,091
Income from sales of residential property	—			—			5,721			—			—				5,721
Net operating income from discontinued operations(2)	—			11,760			(937		)	—			—				10,823
Gain from discontinued operations	—			25,110			—			—			—				25,110
Revenue and other earnings	$	230,047		$	186,587		$	87,849		$	(5,404	)	$	102,735			$	601,814
Real estate expense	—			(25,282		)	(92,012		)	(21,649		)	—				(138,943		)
Other expense	(2,866		)	—			—			—			(8,204		)		(11,070		)
Direct expenses	$	(2,866	)	$	(25,282	)	$	(92,012	)	$	(21,649	)	$	(8,204	)		$	(150,013	)
Direct segment profit (loss)	$	227,181		$	161,305		$	(4,163	)	$	(27,053	)	$	94,531			$	451,801
Allocated interest expense(3)	(161,025		)	(67,338		)	(53,598		)	(42,337		)	(21,616		)		(345,914		)
Allocated general and administrative(4)	(20,680		)	(8,648		)	(6,884		)	(6,959		)	(32,166		)		(75,337		)
Segment profit (loss)(5)	$	45,476		$	85,319		$	(64,645	)	$	(76,349	)	$	40,749			$	30,550
Other significant non-cash items:
Provision for loan losses	$	46,412		$	—		$	—		$	—		$	—			$	46,412
Impairment of assets(3)	$	—		$	668		$	21,030		$	(184	)	$	872			$	22,386
Depreciation and amortization(3)	$	—		$	42,080		$	18,169		$	1,534		$	2,145			$	63,928
Capitalized expenditures	$	—		$	8,699		$	38,477		$	16,993		$	—			$	64,169
As of December 31, 2011
Real estate
Real estate, at cost	$	—		$	1,773,149		$	720,251		$	851,272		$	—			$	3,344,672
Less: accumulated depreciation	—			(302,851		)	(90,383		)	(3,527		)	—				(396,761		)
Real estate, net	$	—		$	1,470,298		$	629,868		$	847,745		$	—			$	2,947,911
Real estate available and held for sale	—			—			551,998			125,460			—			677,458,000	677,458
Total real estate	$	—		$	1,470,298		$	1,181,866		$	973,205		$	—			$	3,625,369
Loans receivable, net	2,860,762			—			—			—			—				2,860,762
Other investments	—			16,297			37,957			14,845			388,736				457,835
Total portfolio assets	$	2,860,762		$	1,486,595		$	1,219,823		$	988,050		$	388,736			$	6,943,966
Cash and other assets	13,340			87,673			33,217			1,734			437,907				573,871
Total assets	$	2,874,102		$	1,574,268		$	1,253,040		$	989,784		$	826,643			$	7,517,837



For the Year Ended December 31, 2010	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)			Company Total
Operating lease income	$	—		$	146,599		$	39,623		$	408		$	—		$	186,630
Interest income	364,094			—			—			—			—			364,094
Other income	13,750			—			33,403			643			2,937			50,733
Total revenue	$	377,844		$	146,599		$	73,026		$	1,051		$	2,937		$	601,457
Earnings (loss) from equity method investments	—			2,522			—			—			49,386			51,908
Income from sales of residential property	—			—			—			—			—			—
Net operating income from discontinued operations(2)	—			73,233			(541		)	—			—			72,692
Gain from discontinued operations	—			270,382			—			—			—			270,382
Revenue and other earnings	$	377,844		$	492,736		$	72,485		$	1,051		$	52,323		$	996,439
Real estate expense	—			(21,223		)	(85,097		)	(15,079		)	—			(121,399		)
Other expense	(10,107		)	—			—			—			(5,948		)	(16,055		)
Direct expenses	$	(10,107	)	$	(21,223	)	$	(85,097	)	$	(15,079	)	$	(5,948	)	$	(137,454	)
Direct segment profit (loss)	$	367,737		$	471,513		$	(12,612	)	$	(14,028	)	$	46,375		$	858,985
Allocated interest expense(3)	(174,074		)	(62,094		)	(39,957		)	(30,445		)	(39,930		)	(346,500		)
Allocated general and administrative(4)	(28,833		)	(10,285		)	(6,618		)	(5,261		)	(39,173		)	(90,170		)
Segment profit (loss)(5)	$	164,830		$	399,134		$	(59,187	)	$	(49,734	)	$	(32,728	)	$	422,315
Other significant non-cash items:
Provision for loan losses	$	331,487		$	—		$	—		$	—		$	—		$	331,487
Impairment of assets(3)	$	—		$	6,063		$	18,988		$	100		$	(2,770	)	$	22,381
Depreciation and amortization(3)	$	—		$	48,973		$	17,050		$	1,037		$	3,726		$	70,786
Capitalized expenditures	$	—		$	13,475		$	18,894		$	10,494		$	—		$	42,863
As of December 31, 2010
Real estate
Real estate, at cost	$	—		$	1,834,172		$	470,989		$	693,477		$	—		$	2,998,638
Less: accumulated depreciation	—			(284,489		)	(70,074		)	(2,037		)	—			(356,600		)
Real estate, net	$	—		$	1,549,683		$	400,915		$	691,440		$	—		$	2,642,038
Real estate available and held for sale	—			—			631,920			114,161			—			746,081
Total real estate	$	—		$	1,549,683		$	1,032,835		$	805,601		$	—		$	3,388,119
Loans receivable, net	4,587,352			—			—			—			—			4,587,352
Other investments	—			16,128			—			—			516,230			532,358
Total portfolio assets	$	4,587,352		$	1,565,811		$	1,032,835		$	805,601		$	516,230		$	8,507,829
Cash and other assets	21,710			78,337			25,122			500			541,016			666,685
Total assets	$	4,609,062		$	1,644,148		$	1,057,957		$	806,101		$	1,057,246		$	9,174,514

Explanatory Notes:

_______________________________________________________________________________

(1)

Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not related to the other reportable segments above, including the Company's equity investment in LNR of $205.8 million and $159.8 million, as of December 31, 2012 and 2011, respectively, and the Company's share of equity in earnings from LNR of $60.7 million, $53.9 million and $1.8 million for the years ended December 31, 2012, 2011 and 2010, respectively. See Note 6 for further details on the Company's investment in LNR and summarized financial information of LNR.


(2)	Includes revenue and real estate expense reclassified to discontinued operations on the Company's Consolidated Statements of Operations.


(3)	Includes related amounts reclassified to discontinued operations on the Company's Consolidated Statements of Operations.


(4)	General and administrative excludes stock-based compensation expense of $15.3 million, $29.7 million and $19.4 million for the years ended December 31, 2012, 2011 and 2010, respectively.


(5)	The following is a reconciliation of segment profit (loss) to net income (loss) ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Segment profit (loss)	$	9,004		$	30,550		$	422,315
Less: Provision for loan losses	(81,740		)	(46,412		)	(331,487		)
Less: Impairment of assets	(36,354		)	(22,386		)	(22,381		)
Less: Stock-based compensation expense	(15,293		)	(29,702		)	(19,355		)
Less: Depreciation and amortization	(70,786		)	(63,928		)	(70,786		)
Less: Income tax (expense) benefit	(8,445		)	4,719			(7,023		)
Add: Gain (loss) on early extinguishment of debt, net	(37,816		)	101,466			108,923
Net income (loss)	$	(241,430	)	$	(25,693	)	$	80,206

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information (Unaudited)

Note 16—Quarterly Financial Information (Unaudited)

The following table sets forth the selected quarterly financial data for the Company ($ in thousands, except per share amounts).



	For the Quarters Ended
	December 31,			September 30,			June 30,			March 31,
2012(1):
Revenue	$	93,713		$	95,159		$	108,647		$	102,953
Net income (loss)	$	(79,948	)	$	(64,306	)	$	(51,129	)	$	(46,048	)
Earnings per common share data:
Net income (loss) attributable to iStar Financial Inc.	$	(87,424	)	$	(71,784	)	$	(58,996	)	$	(54,792	)
Basic earnings per share	$	(1.04	)	$	(0.86	)	$	(0.70	)	$	(0.66	)
Diluted earnings per share	$	(1.04	)	$	(0.86	)	$	(0.70	)	$	(0.66	)
Weighted average number of common shares—basic	83,674			83,629			84,113			83,556
Weighted average number of common shares—diluted	83,674			83,629			84,113			83,556
Earnings per HPU share data:
Net income (loss) attributable to iStar Financial Inc.	$	(2,966	)	$	(2,436	)	$	(1,991	)	$	(1,861	)
Basic earnings per share	$	(197.73	)	$	(162.40	)	$	(132.73	)	$	(124.07	)
Diluted earnings per share	$	(197.73	)	$	(162.40	)	$	(132.73	)	$	(124.07	)
Weighted average number of HPU shares—basic and diluted	15			15			15			15
2011(2):
Revenue	$	104,731		$	105,841		$	136,610		$	117,887
Net income (loss)	$	(28,915	)	$	(54,661	)	$	(26,020	)	$	83,902
Earnings per common share data:
Net income (loss) attributable to iStar Financial Inc.	$	(35,202	)	$	(62,231	)	$	(35,525	)	$	67,420
Basic earnings per share	$	(0.43	)	$	(0.71	)	$	(0.38	)	$	0.73
Diluted earnings per share	$	(0.43	)	$	(0.71	)	$	(0.38	)	$	0.71
Weighted average number of common shares—basic	81,769			87,951			92,621			92,458
Weighted average number of common shares—diluted	81,769			87,951			92,621			94,609
Earnings per HPU share data:
Net income (loss) attributable to iStar Financial Inc.	$	(1,222	)	$	(2,008	)	$	(1,089	)	$	2,070
Basic earnings per share	$	(81.47	)	$	(133.87	)	$	(72.60	)	$	138.00
Diluted earnings per share	$	(81.47	)	$	(133.87	)	$	(72.60	)	$	135.07
Weighted average number of HPU shares—basic and diluted	15			15			15			15

Explanatory Notes:

_______________________________________________________________________________

(1)

During the quarter ended December 31, 2012, the Company recorded a loss on early extinguishment of debt of $31.0 million primarily related to a prepayment penalty on the early repayment of 8.625% Senior Notes, as well as a loss due to the acceleration of unamortized fees and discounts related to the refinancing of the 2011 Secured Credit Facilities (see Note 8). The Company also recorded $27.9 million related to Income from sales of residential property. During the quarter ended March 31, 2012, the Madison Funds recorded a significant gain related to the sale of an investment for which the Company recorded its $13.7 million proportionate share.

(2)

During the quarter ended December 31, 2011, the Company sold a substantial portion of its interests in Oak Hill Advisors, L.P. and related entities which resulted in a net gain of $30.3 million (see Note 6). During the quarter ended June 30, 2011, the Company recorded interest income of $26.3 million related to certain non-performing loans that were resolved, including interest not previously recorded due to the loans being on non-accrual status. During the quarter ended March 31, 2011, the Company recorded a gain on early extinguishment of debt of $109.0 million for the redemption of its $312.3 million remaining principal amount of 10% senior secured notes due June 2014.

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

Valuation and Qualifying Accounts [Abstract]

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2012
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 24, 2013, the Company signed a definitive agreement to sell LNR Property LLC, for approximately $220.0 million in net proceeds after closing costs and LNR management incentives. This transaction is expected to close during the second quarter of 2013, subject to customary closing conditions. On February 11, 2013, the Company entered into a $1.71 billion senior secured credit facility due October 15, 2017 that amends and restates its October 2012 Secured Credit Facility. In connection with the repricing, the Company paid the original lenders a prepayment fee of approximately $17.1 million. The new facility amends the October 2012 Secured Credit Facility by (i) reducing the annual interest rate from LIBOR + 4.50%, with a 1.25% LIBOR floor to LIBOR + 3.50%, with a 1.00% LIBOR floor; and (ii) extending the call protection period for lenders from October 15, 2013 to December 31, 2013. All other terms of the credit facility remained the same.

Schedule II-Valuation and Qualifying Accounts and Reserves

12 Months Ended

Dec. 31, 2012

Schedule II-Valuation and Qualifying Accounts and Reserves

iStar Financial Inc.

Schedule II—Valuation and Qualifying Accounts and Reserves

($ in thousands)



Description	Balance at Beginning of Period		Charged to Costs and Expenses			Adjustments to Valuation Accounts			Deductions			Balance at End of Period
For the Year Ended December 31, 2010
Reserve for loan losses(1)(2)	$	1,417,949	$	331,487		$	—		$	(934,811	)	$	814,625
Allowance for doubtful accounts(2)	2,788		687			—			(2,099		)	1,376
Allowance for deferred tax assets(2)	18,957		—			10,964			—			29,921
	$	1,439,694	$	332,174		$	10,964		$	(936,910	)	$	845,922
For the Year Ended December 31, 2011
Reserve for loan losses(1)(2)	$	814,625	$	46,412		$	—		$	(214,413	)	$	646,624
Allowance for doubtful accounts(2)	1,376		2,292			—			—			3,668
Allowance for deferred tax assets(2)	29,921		(19,968		)	40,936			—			50,889
	$	845,922	$	28,736		$	40,936		$	(214,413	)	$	701,181
For the Year Ended December 31, 2012
Reserve for loan losses(1)(2)	$	646,624	$	81,740		$	—		$	(203,865	)	$	524,499
Allowance for doubtful accounts(2)	3,668		1,928			—			—			5,596
Allowance for deferred tax assets(2)	50,889		(9,833		)	(176		)	—			40,880
	$	701,181	$	73,835		$	(176	)	$	(203,865	)	$	570,975

Explanatory Notes:

_______________________________________________________________________________


(1)	See Note 5 to the Company's Consolidated Financial Statements.


(2)	See Note 3 to the Company's Consolidated Financial Statements.

Schedule III-Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2012

Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III-Real Estate and Accumulated Depreciation



					Initial Cost to Company				Cost Capitalized Subsequent to Acquisition			Gross Amount Carried at Close of Period
State		Encumbrances			Land		Building and Improvements		Cost Capitalized Subsequent to Acquisition			Land		Building and Improvements		Total		Accumulated Depreciation		Date Acquired	Depreciable Life (Years)
OFFICE FACILITIES:
Arizona	OAZ006	—		(1)	$	10,780	$	43,120	$	—		$	10,780	$	43,120	$	53,900	$	4,901	2011	40.0
Arizona	OAZ001	—		(1)	1,512		9,732		944			1,512		10,676		12,188		3,746		1999	40.0
Arizona	OAZ002	—		(1)	1,033		6,652		951			1,033		7,603		8,636		2,210		1999	40.0
Arizona	OAZ003	—		(1)	1,033		6,652		205			1,033		6,857		7,890		2,245		1999	40.0
Arizona	OAZ004	—		(1)	1,033		6,652		2,469			1,033		9,121		10,154		4,473		1999	40.0
Arizona	OAZ005	—		(1)	701		4,339		—			701		4,339		5,040		1,428		1999	40.0
California	OCA002	—			4,139		5,064		1,596			4,139		6,660		10,799		1,663		2002	40.0
Colorado	OCO001	—		(1)	1,757		16,930		5,506			1,757		22,436		24,193		6,852		1999	40.0
Colorado	OCO002	6,657		(1)	—		16,752		48			—		16,800		16,800		4,515		2002	40.0
Florida	OFL001	—		(1)	2,517		14,484		1,705			2,517		16,189		18,706		1,006		2010	40.0
Georgia	OGA001	—		(1)	905		6,744		32			905		6,776		7,681		2,479		1999	40.0
Georgia	OGA002	—		(1)	5,709		49,091		24,824			5,709		73,915		79,624		23,200		1999	40.0
Illinois	OIL001	—			6,153		14,993		(12,335		)	6,153		2,658		8,811		—		1999	40.0
Maryland	OMD001	13,699		(1)	1,800		18,706		457			1,800		19,163		20,963		5,027		2002	40.0
Massachusetts	OMA001	14,203		(1)	1,600		21,947		276			1,600		22,223		23,823		5,971		2002	40.0
Michigan	OMI001	—			5,374		148,866		18,941			5,374		167,807		173,181		45,419		2007	40.0
New Jersey	ONJ001	54,312			7,726		74,429		10			7,724		74,441		82,165		18,725		2002	40.0
New Jersey	ONJ002	11,313		(1)	1,008		16,817		(81		)	1,008		16,736		17,744		4,189		2004	40.0
New Jersey	ONJ003	18,740		(1)	2,456		34,935		505			2,456		35,440		37,896		8,732		2004	40.0
Pennsylvania	OPA001	—		(1)	690		26,098		(49		)	690		26,049		26,739		7,354		2001	40.0
Tennessee	OTN001	—			2,702		25,129		(17,064		)	2,702		8,065		10,767		7,878		1999	40.0
Texas	OTX001	—		(1)	1,364		10,628		5,649			2,373		15,268		17,641		4,485		1999	40.0
Texas	OTX002	—		(1)	1,233		15,160		36			1,233		15,196		16,429		4,716		1999	40.0
Texas	OTX003	—		(1)	2,932		31,235		7,957			2,932		39,192		42,124		12,982		1999	40.0
Texas	OTX004	—		(1)	1,230		5,660		483			1,230		6,143		7,373		1,983		1999	40.0
Wisconsin	OWI001	—			1,875		13,914		(6,147		)	1,875		7,767		9,642		4,450		1999	40.0
Subtotal		$	118,924		$	69,262	$	644,729	$	36,918		$	70,269	$	680,640	$	750,909	$	190,629
INDUSTRIAL FACILITIES:
Arizona	IAZ001	—		(1)	2,519		7,481		607			2,519		8,088		10,607		597		2009	40.0
Arizona	IAZ002	—		(1)	3,279		5,221		1,029			3,279		6,250		9,529		582		2009	40.0
California	ICA001	18,312		(1)	11,635		19,515		5,943			11,635		25,458		37,093		3,224		2007	40.0
California	ICA003	—			964		1,578		—			964		1,578		2,542		252		2006	40.0
California	ICA004	—			1,756		996		—			1,756		996		2,752		158		2006	40.0
California	ICA005	—		(1)	654		4,591		2,044			654		6,635		7,289		1,979		1999	40.0
California	ICA006	—		(1)	1,086		7,964		2,876			1,086		10,840		11,926		3,566		1999	40.0
California	ICA007	—		(1)	4,880		12,367		3,550			4,880		15,917		20,797		4,684		1999	40.0
California	ICA008	—		(1)	6,857		8,378		1,643			6,856		10,022		16,878		2,626		2002	40.0
California	ICA009	—		(1)	4,095		8,323		1,586			4,095		9,909		14,004		3,181		1999	40.0
California	ICA010	—			5,051		6,170		359			5,051		6,529		11,580		1,964		2002	40.0
California	ICA011	—			4,119		5,034		(691		)	4,119		4,343		8,462		1,521		2002	40.0
California	ICA012	—		(1)	3,044		3,716		2,876			3,044		6,592		9,636		1,609		2002	40.0



California	ICA013	—		(1)	2,633		3,219		290			2,633		3,509		6,142		1,060		2002	40.0
California	ICA014	—			4,600		5,627		1,906			4,600		7,533		12,133		2,002		2002	40.0
California	ICA015	—			5,617		6,877		5,501			5,619		12,376		17,995		5,116		2002	40.0
California	ICA016	28,000			15,708		27,987		8,804			15,708		36,791		52,499		12,982		2004	40.0
California	ICA017	—		(1)	808		8,306		783			808		9,089		9,897		2,981		1999	40.0
Colorado	ICO001	—			832		1,379		—			832		1,379		2,211		220		2006	40.0
Florida	IFL001	—			322		323		64			322		387		709		62		2006	40.0
Florida	IFL002	15,864		(1)	3,510		20,846		8,279			3,510		29,125		32,635		3,339		2007	40.0
Florida	IFL004	—		(1)	3,048		8,676		—			3,048		8,676		11,724		2,856		1999	40.0
Florida	IFL005	—		(1)	1,612		4,586		(1,408		)	1,241		3,549		4,790		570		1999	40.0
Florida	IFL006	—		(1)	1,476		4,198		(4,497		)	450		727		1,177		349		1999	40.0
Georgia	IGA001	13,807		(1)	2,791		24,637		349			2,791		24,986		27,777		3,239		2007	40.0
Hawaii	IHI001	—			7,477		23,623		206			7,477		23,829		31,306		1,737		2010	40.0
Indiana	IIN001	—		(1)	462		9,224		—			462		9,224		9,686		1,719		2007	40.0
Massachusetts	IMA001	18,997		(1)	7,439		21,774		10,979			7,439		32,753		40,192		3,754		2007	40.0
Michigan	IMI001	—		(1)	598		9,814		1			598		9,815		10,413		1,848		2007	40.0
Minnesota	IMN001	—		(1)	403		1,147		(344		)	1,206		—		1,206		—		1999	40.0
Minnesota	IMN002	—		(1)	6,705		17,690		—			6,225		18,170		24,395		3,594		2005	40.0
North Carolina	INC001	—		(1)	680		8,331		—			680		8,331		9,011		2,155		2004	40.0
New Jersey	INJ001	22,033		(1)	8,368		15,376		21,141			8,368		36,517		44,885		4,259		2007	40.0
Nevada	INV001	—			1,810		1,285		—			1,810		1,285		3,095		203		2006	40.0
New York	INY001	—		(1)	1,796		5,108		4			1,796		5,112		6,908		1,683		1999	40.0
Texas	ITX001	—			405		467		100			405		567		972		74		2006	40.0
Texas	ITX002	—			594		716		—			594		716		1,310		115		2006	40.0
Texas	ITX003	—			3,617		3,432		—			3,617		3,432		7,049		547		2006	40.0
Texas	ITX004	13,709		(1)	1,631		27,858		(416		)	1,631		27,442		29,073		3,500		2007	40.0
Texas	ITX005	—		(1)	1,314		8,903		46			1,314		8,949		10,263		2,942		1999	40.0
Virginia	IVA001	14,786		(1)	2,619		28,481		142			2,619		28,623		31,242		3,708		2007	40.0
Subtotal		$	145,508		$	138,814	$	391,224	$	73,752		$	137,741	$	466,049	$	603,790	$	92,557
LAND:
Arizona	LAZ002	—		(1)	13,170		5,144		1			13,170		5,145		18,315		215		2011	0.0
Arizona	LAZ001	—			96,700		—		—			96,700		—		96,700		—		2010	0.0
California	LCA002	—			28,464		2,836		—			28,464		2,836		31,300		1,273		2010	0.0
California	LCA008	—			30,500		—		—			30,500		—		30,500		—		2011	0.0
California	LCA003	—			87,300		—		8,433			95,733		—		95,733		—		2009	0.0
California	LCA004	—			68,155		—		(21,405		)	46,750		—		46,750		—		2000	0.0
California	LCA005	—			84,100		—		2			84,102		—		84,102		—		2010	0.0
California	LCA006	—			59,100		—		—			59,100		—		59,100		—		2010	0.0
Florida	LFA001	—			7,600		—		—			7,600		—		7,600		—		2009	0.0
Florida	LFA002	—			8,100		—		—			8,100		—		8,100		—		2009	0.0
Florida	LFA006	—			9,300		—		—			9,300		—		9,300		—		2012	0.0
Florida	LFA003	—			26,600		—		1,529			26,600		1,529		28,129		—		2010	0.0
Florida	LFA004	—			25,600		—		1,006			25,600		1,006		26,606		—		2009	0.0
Florida	LFA005	—			9,300		—		—			9,300		—		9,300		—		2010	0.0
Hawaii	LHI001	—			14,800		—		—			14,800		—		14,800		—		2010	0.0
Illinois	LIL001	—			9,500		—		—			9,500		—		9,500		—		2011	0.0
Maryland	LMD001	—			102,938		—		—			102,938		—		102,938		—		2009	0.0



Maryland	LMD002	—		(1)	2,486		—		—			2,486		—		2,486		255		1999	70.0
New Jersey	LNJ001	—			43,300		—		25,568			68,868		—		68,868		4		2009	0.0
New York	LNY002	—			58,900		—		518			58,900		518		59,418		—		2011	0.0
New York	LNY001	—			52,461		—		—			52,461		—		52,461		—		2009	0.0
Oregon	LOR001	—			3,674		—		4			3,674		4		3,678		—		2012	0.0
Oregon	LOR002	—			20,326		—		(744		)	19,582		—		19,582		—		2012	0.0
Texas	LTX001	—		(1)	3,375		106		—			3,375		106		3,481		38		2005	0.0
Texas	LTX002	—		(1)	3,621		200		—			3,621		200		3,821		72		2005	0.0
Virginia	LVA001	—			60,814		—		11,789			72,603		—		72,603		801		2009	0.0
Virginia	LVA001	—			11,324		—		(5,774		)	5,550		—		5,550		—		2009	0.0
Subtotal		$	—		$	941,508	$	8,286	$	20,927		$	959,377	$	11,344	$	970,721	$	2,658
ENTERTAINMENT:
Alabama	EAL001	—		(1)	277		359		(3		)	277		356		633		79		2004	40.0
Alabama	EAL002	—		(1)	319		414		—			319		414		733		91		2004	40.0
Arizona	EAZ001	—		(1)	793		1,027		—			793		1,027		1,820		227		2004	40.0
Arizona	EAZ002	—		(1)	521		673		(4		)	521		669		1,190		149		2004	40.0
Arizona	EAZ003	—		(1)	305		394		(3		)	305		391		696		87		2004	40.0
Arizona	EAZ004	—		(1)	630		815		—			630		815		1,445		180		2004	40.0
Arizona	EAZ005	—		(1)	590		764		—			590		764		1,354		169		2004	40.0
Arizona	EAZ006	—		(1)	476		616		(4		)	476		612		1,088		136		2004	40.0
Arizona	EAZ007	—		(1)	654		845		—			654		845		1,499		166		2004	40.0
Arizona	EAZ008	—		(1)	666		862		(6		)	666		856		1,522		191		2004	40.0
Arizona	EAZ009	—		(1)	460		596		—			460		596		1,056		132		2004	40.0
California	ECA001	—		(1)	1,097		1,421		—			1,097		1,421		2,518		314		2004	40.0
California	ECA002	—		(1)	434		560		1			434		561		995		124		2004	40.0
California	ECA003	—		(1)	332		429		—			332		429		761		95		2004	40.0
California	ECA004	—		(1)	1,642		2,124		(16		)	1,642		2,108		3,750		470		2004	40.0
California	ECA005	—		(1)	676		876		—			676		876		1,552		194		2004	40.0
California	ECA006	—		(1)	720		932		—			720		932		1,652		206		2004	40.0
California	ECA007	—		(1)	574		743		(5		)	574		738		1,312		164		2004	40.0
California	ECA008	—		(1)	392		508		(4		)	392		504		896		112		2004	40.0
California	ECA009	—		(1)	358		464		(3		)	358		461		819		103		2004	40.0
California	ECA010	—		(1)	—		18,000		—			—		18,000		18,000		3,912		2003	40.0
California	ECA011	—		(1)	852		1,101		(8		)	852		1,093		1,945		244		2004	40.0
California	ECA012	—		(1)	1,572		2,034		—			1,572		2,034		3,606		450		2004	40.0
California	ECA013	—		(1)	—		1,953		25,772			—		27,725		27,725		2,655		2008	40.0
California	ECA014	—		(1)	659		852		(6		)	659		846		1,505		188		2004	40.0
California	ECA015	—		(1)	562		729		—			562		729		1,291		161		2004	40.0
California	ECA016	—		(1)	896		1,159		(8		)	896		1,151		2,047		256		2004	40.0
Colorado	ECO001	—		(1)	466		602		(5		)	466		597		1,063		133		2004	40.0
Colorado	ECO002	—		(1)	640		827		1			640		828		1,468		183		2004	40.0
Colorado	ECO003	—		(1)	729		944		—			729		944		1,673		209		2004	40.0
Colorado	ECO004	—		(1)	536		694		(5		)	536		689		1,225		153		2004	40.0
Colorado	ECO005	—		(1)	412		533		—			412		533		945		118		2004	40.0
Colorado	ECO006	—		(1)	901		1,165		(9		)	901		1,156		2,057		258		2004	40.0
Connecticut	ECT001	—		(1)	1,097		1,420		(10		)	1,097		1,410		2,507		314		2004	40.0
Connecticut	ECT002	—		(1)	330		426		—			330		426		756		94		2004	40.0



Delaware	EDE001	—	(1)	1,076	1,390	4		1,076	1,394		2,470	308	2004	40.0
Florida	EFL001	—	(1)	—	41,809	—		—	41,809		41,809	12,111	2005	27.0
Florida	EFL002	—	(1)	412	531	(3	)	412	528		940	118	2004	40.0
Florida	EFL003	—	(1)	6,550	—	17,118		6,533	17,135		23,668	2,424	2006	40.0
Florida	EFL004	—	(1)	1,067	1,382	—		1,067	1,382		2,449	306	2004	40.0
Florida	EFL005	—	(1)	340	439	(3	)	340	436		776	97	2004	40.0
Florida	EFL006	—	(1)	401	520	—		401	520		921	115	2004	40.0
Florida	EFL007	—	(1)	507	655	(5	)	507	650		1,157	145	2004	40.0
Florida	EFL008	—	(1)	282	364	(3	)	282	361		643	81	2004	40.0
Florida	EFL009	—	(1)	352	455	—		352	455		807	101	2004	40.0
Florida	EFL010	—	(1)	404	524	—		404	524		928	116	2004	40.0
Florida	EFL011	—	(1)	437	567	—		437	567		1,004	125	2004	40.0
Florida	EFL012	—	(1)	532	689	—		532	689		1,221	152	2004	40.0
Florida	EFL013	—	(1)	379	490	(4	)	379	486		865	108	2004	40.0
Florida	EFL014	—	(1)	486	629	—		486	629		1,115	139	2004	40.0
Florida	EFL015	—	(1)	433	561	(4	)	433	557		990	124	2004	40.0
Florida	EFL016	—	(1)	497	643	(5	)	497	638		1,135	142	2004	40.0
Florida	EFL017	—		360	840	(1,186	)	360	(346	)	14	—	2010	0.0
Florida	EFL018	—	(1)	643	833	(6	)	643	827		1,470	184	2004	40.0
Florida	EFL019	—	(1)	4,200	18,272	—		4,200	18,272		22,472	3,584	2005	40.0
Florida	EFL020	—	(1)	551	714	(6	)	551	708		1,259	158	2004	40.0
Florida	EFL021	—	(1)	364	470	(3	)	364	467		831	104	2004	40.0
Florida	EFL022	—	(1)	507	656	—		507	656		1,163	145	2004	40.0
Florida	EFL023	—	(1)	—	19,337	—		—	19,337		19,337	3,793	2005	40.0
Georgia	EGA001	—	(1)	510	660	(5	)	510	655		1,165	146	2004	40.0
Georgia	EGA002	—	(1)	286	371	—		286	371		657	82	2004	40.0
Georgia	EGA003	—	(1)	474	613	—		474	613		1,087	136	2004	40.0
Georgia	EGA004	—	(1)	581	752	—		581	752		1,333	166	2004	40.0
Georgia	EGA005	—	(1)	718	930	(7	)	718	923		1,641	206	2004	40.0
Georgia	EGA006	—	(1)	546	706	—		546	706		1,252	156	2004	40.0
Georgia	EGA007	—	(1)	502	651	(5	)	502	646		1,148	144	2004	40.0
Iowa	EIA001	—	(1)	425	551	(4	)	425	547		972	122	2004	40.0
Illinois	EIL001	—	(1)	335	434	—		335	434		769	96	2004	40.0
Illinois	EIL002	—	(1)	481	622	—		481	622		1,103	138	2004	40.0
Illinois	EIL003	—	(1)	8,803	57	30,479		8,803	30,536		39,339	4,056	2006	40.0
Illinois	EIL004	—	(1)	433	560	(5	)	433	555		988	124	2004	40.0
Illinois	EIL005	—	(1)	431	557	(4	)	431	553		984	123	2004	40.0
Indiana	EIN001	—	(1)	542	701	(5	)	542	696		1,238	155	2004	40.0
Kentucky	EKY001	—	(1)	417	539	—		417	539		956	119	2004	40.0
Kentucky	EKY002	—	(1)	365	473	(3	)	365	470		835	105	2004	40.0
Maryland	EMD001	—	(1)	428	554	—		428	554		982	122	2004	40.0
Maryland	EMD002	—	(1)	575	745	—		575	745		1,320	165	2004	40.0
Maryland	EMD003	—	(1)	362	468	(3	)	362	465		827	104	2004	40.0
Maryland	EMD004	—	(1)	884	1,145	(9	)	884	1,136		2,020	253	2004	40.0
Maryland	EMD005	—	(1)	371	481	—		371	481		852	106	2004	40.0
Maryland	EMD006	—	(1)	399	518	(4	)	399	514		913	114	2004	40.0
Maryland	EMD007	—	(1)	649	839	(6	)	649	833		1,482	186	2004	40.0



Maryland	EMD008	—	(1)	366	473	(3	)	366	470	836	105	2004	40.0
Maryland	EMD009	—	(1)	398	516	(4	)	398	512	910	114	2004	40.0
Maryland	EMD010	—	(1)	388	505	—		388	505	893	111	2004	40.0
Maryland	EMD011	—	(1)	1,126	1,458	—		1,126	1,458	2,584	322	2004	40.0
Massachusetts	EMA001	—	(1)	523	678	(6	)	523	672	1,195	150	2004	40.0
Massachusetts	EMA002	—	(1)	548	711	—		548	711	1,259	157	2004	40.0
Massachusetts	EMA003	—	(1)	519	672	(5	)	519	667	1,186	149	2004	40.0
Massachusetts	EMA004	—	(1)	344	445	—		344	445	789	98	2004	40.0
Michigan	EMI001	—	(1)	309	400	—		309	400	709	88	2004	40.0
Michigan	EMI002	—	(1)	516	667	(5	)	516	662	1,178	148	2004	40.0
Michigan	EMI003	—	(1)	554	718	—		554	718	1,272	159	2004	40.0
Michigan	EMI004	—	(1)	387	500	(4	)	387	496	883	111	2004	40.0
Michigan	EMI005	—	(1)	533	691	(6	)	533	685	1,218	153	2004	40.0
Michigan	EMI006	—	(1)	356	460	—		356	460	816	102	2004	40.0
Minnesota	EMN001	—	(1)	666	861	(6	)	666	855	1,521	190	2004	40.0
Minnesota	EMN002	—	(1)	2,962	—	15,384		2,962	15,384	18,346	1,936	2006	40.0
Minnesota	EMN003	—	(1)	359	465	—		359	465	824	103	2004	40.0
Minnesota	EMN004	—	(1)	2,437	8,715	679		2,437	9,394	11,831	1,587	2006	40.0
Missouri	EMO001	—	(1)	334	432	—		334	432	766	96	2004	40.0
Missouri	EMO002	—	(1)	404	523	(4	)	404	519	923	116	2004	40.0
Missouri	EMO003	—	(1)	462	597	(4	)	462	593	1,055	132	2004	40.0
Missouri	EMO004	—	(1)	878	1,139	—		878	1,139	2,017	252	2004	40.0
New Jersey	ENJ001	—	(1)	1,560	2,019	(15	)	1,560	2,004	3,564	446	2004	40.0
New Jersey	ENJ002	—	(1)	830	1,075	—		830	1,075	1,905	238	2004	40.0
Nevada	ENV001	—	(1)	440	569	(4	)	440	565	1,005	126	2004	40.0
New York	ENY001	—	(1)	603	779	(6	)	603	773	1,376	172	2004	40.0
New York	ENY002	—	(1)	442	571	—		442	571	1,013	126	2004	40.0
New York	ENY003	—	(1)	562	728	—		562	728	1,290	161	2004	40.0
New York	ENY004	—	(1)	385	499	(3	)	385	496	881	110	2004	40.0
New York	ENY005	—	(1)	350	453	—		350	453	803	100	2004	40.0
New York	ENY006	—	(1)	326	421	—		326	421	747	93	2004	40.0
New York	ENY007	—	(1)	494	640	—		494	640	1,134	141	2004	40.0
New York	ENY008	—	(1)	320	414	(3	)	320	411	731	92	2004	40.0
New York	ENY009	—	(1)	399	516	(4	)	399	512	911	114	2004	40.0
New York	ENY010	—	(1)	959	1,240	(9	)	959	1,231	2,190	274	2004	40.0
New York	ENY011	—	(1)	587	761	—		587	761	1,348	168	2004	40.0
New York	ENY012	—	(1)	521	675	(5	)	521	670	1,191	149	2004	40.0
New York	ENY013	—	(1)	711	920	—		711	920	1,631	203	2004	40.0
New York	ENY014	—	(1)	558	723	(6	)	558	717	1,275	160	2004	40.0
New York	ENY015	—	(1)	747	967	—		747	967	1,714	214	2004	40.0
New York	ENY016	—	(1)	683	885	(7	)	683	878	1,561	196	2004	40.0
New York	ENY017	—	(1)	1,492	1,933	—		1,492	1,933	3,425	427	2004	40.0
New York	ENY018	—	(1)	1,471	1,904	(14	)	1,471	1,890	3,361	421	2004	40.0
North Carolina	ENC001	—	(1)	397	513	—		397	513	910	114	2004	40.0
North Carolina	ENC002	—	(1)	476	615	(4	)	476	611	1,087	136	2004	40.0
North Carolina	ENC003	—	(1)	410	530	(4	)	410	526	936	117	2004	40.0
North Carolina	ENC004	—	(1)	402	520	(4	)	402	516	918	115	2004	40.0



North Carolina	ENC005	—	(1)	948	1,227	—		948	1,227	2,175	271	2004	40.0
North Carolina	ENC006	—	(1)	259	336	(3	)	259	333	592	74	2004	40.0
North Carolina	ENC007	—	(1)	349	452	—		349	452	801	100	2004	40.0
North Carolina	ENC008	—	(1)	640	828	—		640	828	1,468	183	2004	40.0
North Carolina	ENC009	—	(1)	409	531	—		409	531	940	117	2004	40.0
North Carolina	ENC010	—	(1)	965	1,249	(10	)	965	1,239	2,204	276	2004	40.0
North Carolina	ENC011	—	(1)	475	615	—		475	615	1,090	136	2004	40.0
North Carolina	ENC012	—	(1)	494	638	(4	)	494	634	1,128	141	2004	40.0
Ohio	EOH001	—	(1)	434	562	—		434	562	996	124	2004	40.0
Ohio	EOH002	—	(1)	967	1,252	(9	)	967	1,243	2,210	277	2004	40.0
Ohio	EOH003	—	(1)	281	365	(3	)	281	362	643	81	2004	40.0
Ohio	EOH004	—	(1)	393	508	—		393	508	901	112	2004	40.0
Oklahoma	EOK001	—	(1)	431	557	(4	)	431	553	984	123	2004	40.0
Oklahoma	EOK002	—	(1)	954	1,235	—		954	1,235	2,189	273	2004	40.0
Oregon	EOR001	—	(1)	373	484	—		373	484	857	107	2004	40.0
Oregon	EOR002	—	(1)	393	508	(4	)	393	504	897	112	2004	40.0
Pennsylvania	EPA001	—	(1)	407	527	—		407	527	934	117	2004	40.0
Pennsylvania	EPA002	—	(1)	421	544	—		421	544	965	120	2004	40.0
Pennsylvania	EPA003	—	(1)	409	528	(4	)	409	524	933	117	2004	40.0
Pennsylvania	EPA004	—	(1)	407	527	(3	)	407	524	931	117	2004	40.0
Puerto Rico	EPR001	—	(1)	950	1,230	—		950	1,230	2,180	272	2004	40.0
Rhode Island	ERI001	—	(1)	850	1,100	(8	)	850	1,092	1,942	243	2004	40.0
South Carolina	ESC001	—	(1)	943	1,220	(9	)	943	1,211	2,154	270	2004	40.0
South Carolina	ESC002	—	(1)	332	429	—		332	429	761	95	2004	40.0
South Carolina	ESC003	—	(1)	924	1,196	—		924	1,196	2,120	265	2004	40.0
Tennessee	ETN001	—	(1)	260	338	—		260	338	598	75	2004	40.0
Texas	ETX001	—	(1)	1,045	1,353	—		1,045	1,353	2,398	299	2004	40.0
Texas	ETX002	—	(1)	593	767	(6	)	593	761	1,354	170	2004	40.0
Texas	ETX003	—	(1)	985	1,276	—		985	1,276	2,261	282	2004	40.0
Texas	ETX004	—	(1)	838	1,083	(8	)	838	1,075	1,913	240	2004	40.0
Texas	ETX005	—	(1)	528	682	(5	)	528	677	1,205	151	2004	40.0
Texas	ETX006	—	(1)	480	622	(4	)	480	618	1,098	137	2004	40.0
Texas	ETX007	—	(1)	975	1,261	(10	)	975	1,251	2,226	279	2004	40.0
Texas	ETX008	—	(1)	1,108	1,433	(10	)	1,108	1,423	2,531	317	2004	40.0
Texas	ETX009	—	(1)	425	549	—		425	549	974	122	2004	40.0
Texas	ETX010	—	(1)	518	671	—		518	671	1,189	148	2004	40.0
Texas	ETX011	—	(1)	758	981	1		758	982	1,740	217	2004	40.0
Texas	ETX012	—	(1)	399	517	—		399	517	916	114	2004	40.0
Texas	ETX013	—	(1)	375	485	(3	)	375	482	857	107	2004	40.0
Texas	ETX014	—	(1)	438	567	(4	)	438	563	1,001	125	2004	40.0
Texas	ETX015	—	(1)	285	369	—		285	369	654	82	2004	40.0
Texas	ETX016	—	(1)	554	718	(5	)	554	713	1,267	159	2004	40.0
Texas	ETX017	—	(1)	561	726	—		561	726	1,287	161	2004	40.0
Texas	ETX018	—	(1)	753	976	—		753	976	1,729	216	2004	40.0
Texas	ETX019	—	(1)	521	675	—		521	675	1,196	149	2004	40.0
Texas	ETX020	—	(1)	634	821	(6	)	634	815	1,449	182	2004	40.0
Texas	ETX021	—	(1)	379	491	(4	)	379	487	866	109	2004	40.0



Texas	ETX022	—		(1)	592		766		—			592		766		1,358		169		2004	40.0
Utah	EUT001	—		(1)	624		808		—			624		808		1,432		179		2004	40.0
Virginia	EVA001	—		(1)	1,134		1,467		—			1,134		1,467		2,601		325		2004	40.0
Virginia	EVA002	—		(1)	845		1,094		—			845		1,094		1,939		242		2004	40.0
Virginia	EVA003	—		(1)	884		1,145		(9		)	884		1,136		2,020		253		2004	40.0
Virginia	EVA004	—		(1)	953		1,233		(10		)	953		1,223		2,176		273		2004	40.0
Virginia	EVA005	—		(1)	487		632		—			487		632		1,119		140		2004	40.0
Virginia	EVA006	—		(1)	425		550		(4		)	425		546		971		122		2004	40.0
Virginia	EVA007	—		(1)	1,151		1,490		(11		)	1,151		1,479		2,630		329		2004	40.0
Virginia	EVA008	—		(1)	546		707		—			546		707		1,253		156		2004	40.0
Virginia	EVA009	—		(1)	851		1,103		—			851		1,103		1,954		244		2004	40.0
Virginia	EVA010	—		(1)	819		1,061		—			819		1,061		1,880		235		2004	40.0
Virginia	EVA011	—		(1)	958		1,240		—			958		1,240		2,198		274		2004	40.0
Virginia	EVA012	—		(1)	788		1,020		(8		)	788		1,012		1,800		226		2004	40.0
Virginia	EVA013	—		(1)	554		716		(5		)	554		711		1,265		158		2004	40.0
Washington	EWA001	—		(1)	1,500		6,500		—			1,500		6,500		8,000		1,739		2003	40.0
Wisconsin	EWI001	—		(1)	521		673		2			521		675		1,196		149		2004	40.0
Wisconsin	EWI002	—		(1)	413		535		—			413		535		948		118		2004	40.0
Wisconsin	EWI003	—		(1)	542		702		(6		)	542		696		1,238		155		2004	40.0
Wisconsin	EWI004	—		(1)	793		1,025		(8		)	793		1,017		1,810		227		2004	40.0
Wisconsin	EWI005	—		(1)	1,124		1,455		—			1,124		1,455		2,579		322		2004	40.0
Subtotal		$	—		$	137,683	$	258,985	$	87,732		$	137,666	$	346,734	$	484,400	$	69,512
RETAIL:
Arizona	RAZ003	—			2,625		4,875		(459		)	2,625		4,416		7,041		112		2009	40.0
Arizona	RAZ004	—			2,184		4,056		(1,588		)	2,184		2,468		4,652		74		2009	0.0
Arizona	RAZ005	—		(1)	2,657		3,629		(277		)	2,657		3,352		6,009		354		2011	40.0
California	RCA003	—			1,430		770		—			1,430		770		2,200		—		2012	0.0
California	RCA001	—		(1)	2,569		3,031		111			2,569		3,142		5,711		241		2010	40.0
Colorado	RCO001	—		(1)	2,631		410		5,195			2,607		5,629		8,236		893		2006	40.0
Florida	RFL004	—			4,800		19,200		71			4,800		19,271		24,071		—		2011	0.0
Florida	RFL003	—		(1)	3,950		131		10,285			3,908		10,458		14,366		1,757		2005	40.0
Hawaii	RHI001	—			3,393		21,307		2,923			3,393		24,230		27,623		2,344		2009	40.0
Illinois	RIL002	—			14,934		32,866		1			14,934		32,867		47,801		597		2012	40.0
Illinois	RIL001	—		(1)	—		18,700		583			—		19,283		19,283		4,548		2010	40.0
New Mexico	RNM001	—		(1)	1,733		131		8,370			1,705		8,529		10,234		1,355		2005	40.0
New York	RNY001	—		(1)	731		6,204		699			711		6,923		7,634		1,463		2005	40.0
New York	RNY002	—			1,760		3,740		(2,200		)	1,056		2,244		3,300		—		2009	0.0
Pennsylvania	RPA002	—		(1)	4,247		7,888		(1		)	4,247		7,887		12,134		—		2012	0.0
Pennsylvania	RPA001	—		(1)	5,687		65,312		1,250			5,687		66,562		72,249		4,592		2011	40.0
South Carolina	RSC001	—			2,126		2,874		(790		)	1,337		2,873		4,210		2,060		2007	40.0
Texas	RTX001	—		(1)	3,538		4,346		171			3,514		4,541		8,055		1,088		2005	40.0
Texas	RTX002	—			1,225		2,275		(791		)	1,225		1,484		2,709		—		2010	0.0
Texas	RTX003	—			630		1,170		(409		)	630		761		1,391		—		2010	0.0
Utah	RUT001	—		(1)	3,502		131		5,975			3,502		6,106		9,608		1,049		2005	40.0
Virginia	RVA001	—		(1)	4,720		18,881		—			4,720		18,881		23,601		536		2011	40.0
Washington	RWA001	—			1,301		—		(990		)	311		—		311		—		2012	0.0
Subtotal		$	—		$	72,373	$	221,927	$	28,129		$	69,752	$	252,677	$	322,429	$	23,063



HOTEL:
California	HCA002	—		(1)	4,394		27,030		(871		)	4,394		26,159		30,553			9,954		1998	40.0
California	HCA003	—		(1)	3,308		20,623		(664		)	3,308		19,959		23,267			7,581		1998	40.0
Colorado	HCO001	—		(1)	1,242		7,865		(253		)	1,242		7,612		8,854			2,885		1998	40.0
Georgia	HGA001	—		(1)	6,378		25,514		1			6,378		25,515		31,893			2,057		2010	40.0
Hawaii	HHI001	—		(1)	17,996		17,996		1,777			17,996		19,773		37,769			3,153		2009	40.0
Hawaii	HHO003	—		(1)	4,195		4,195		(5,761		)	1,315		1,314		2,629			—		2009	0.0
Hawaii	HHI002	—			3,000		12,000		1,050			3,000		13,050		16,050			929		2009	0.0
Utah	HUT001	—		(1)	5,620		32,695		(1,058		)	5,620		31,637		37,257			12,138		1998	40.0
Washington	HWA004	—		(1)	5,101		32,080		(1,031		)	5,101		31,049		36,150			11,767		1998	40.0
Subtotal		$	—		$	51,234	$	179,998	$	(6,810	)	$	48,354	$	176,068	$	224,422		$	50,464
APARTMENT/RESID:
Arizona	AAZ001	—			4,480		17,921		(19,749		)	530		2,122		2,652			—		2010	0.0
Arizona	AAZ002	—			1,625		11,174		12,340			2,242		22,897		25,139			599		2009	0.0
California	ACA001	—		(1)	7,333		29,333		(9,083		)	7,333		20,250		27,583			—		2009	0.0
California	ACA002	—		(1)	10,078		40,312		(32,647		)	3,549		14,194		17,743			—		2007	0.0
Florida	AFL001	—		(1)	2,394		24,206		(22,943		)	2,394		1,263		3,657			—		2009	0.0
Florida	AFL002	—			6,540		15,260		(1,488		)	6,540		13,772		20,312			—		2010	0.0
Florida	AFL003	—			30,900		30,900		(42,100		)	9,850		9,850		19,700			—		2011	0.0
Georgia	AGA001	—		(1)	2,963		11,850		1,519			3,266		13,066		16,332			—		2010	0.0
Hawaii	AHI001	—		(1)	8,080		12,120		(9,036		)	8,080		3,084		11,164			—		2010	0.0
Hawaii	AHI002	—		(1)	4,430		18,170		(16,474		)	1,201		4,925		6,126			—		2009	0.0
Hawaii	AHI003	—		(1)	3,483		9,417		(7,482		)	1,238		4,180		5,418			—		2009	0.0
Nevada	ANZ001	—		(1)	18,117		106,829		(80,131		)	6,498		38,317		44,815			—		2009	0.0
New Jersey	ANJ001	—			36,405		64,719		(81,026		)	7,236		12,862		20,098			—		2009	0.0
New York	ANY001	—			—		114,400		(89,666		)	—		24,734		24,734			—		2009	0.0
Pennsylvania	APA001	—		(1)	44,438		82,527		(57,909		)	44,438		24,618		69,056			—		2012	0.0
Pennsylvania	APA002	—		(1)	15,890		29,510		64			15,890		29,574		45,464			—		2012	0.0
Washington	AWA001	—		(1)	2,342		44,478		(28,803		)	902		17,115		18,017			—		2009	0.0
Subtotal		$	—		$	199,498	$	663,126	$	(484,614	)	$	121,187	$	256,823	$	378,010		$	599
MIXED USE:
Arizona	MAZ002	—		(1)	10,182		59,200		14,566			10,030		73,918		83,948			2,686		2011	40.0
California	MCA001	—		(1)	5,869		629		3			5,870		631		6,501			44		2010	0.0
Florida	MFL001	—		(1)	8,450		13,251		2,055			8,450		15,306		23,756			5,119		2008	40.0
Georgia	MGA001	—		(1)	4,480		17,916		1,271			4,479		19,188		23,667			334		2010	0.0
Subtotal		$	—		$	28,981	$	90,996	$	17,895		$	28,829	$	109,043	$	137,872		$	8,183
Total		$	264,432		$	1,639,353	$	2,459,271	$	(226,071	)	$	1,573,175	$	2,299,378	$	3,872,553	(2)	$	437,665

Explanatory Notes:

_______________________________________________________________________________


(1)	Consists of properties pledged as collateral under the Company's secured credit facilities with a total book value of $1.66 billion.


(2)	The aggregate cost for Federal income tax purposes was approximately $4.05 billion at December 31, 2012.

1. Reconciliation of Real Estate:

The following table reconciles Real Estate from January 1, 2010 to December 31, 2012:



	2012			2011			2010
Balance at January 1	$	4,022,173		$	3,745,539		$	4,690,096
Improvements and additions	126,580			64,558			160,549
Acquisitions through foreclosure	269,100			502,482			773,315
Dispositions	(510,504		)	(269,761		)	(1,858,817		)
Impairments	(34,796		)	(20,645		)	(19,604		)
Balance at December 31	$	3,872,553		$	4,022,173		$	3,745,539

2. Reconciliation of Accumulated Depreciation:

The following table reconciles Accumulated Depreciation from January 1, 2010 to December 31, 2012:



	2012			2011			2010
Balance at January 1	$	(396,804	)	$	(357,420	)	$	(525,113	)
Additions	(69,293		)	(62,674		)	(101,621		)
Dispositions	28,432			23,290			269,314
Balance at December 31	$	(437,665	)	$	(396,804	)	$	(357,420	)

The entire disclosure for real estate and accumulated depreciation. This may include a schedule that describes the property and lists the initial cost of land, buildings and improvements, improvements and carrying costs capitalized after acquisition, and the total carrying cost for land, buildings and improvements for each property and in aggregate. The schedule also lists the accumulated depreciation for each property and in aggregate, the date each property was constructed and acquired, the useful life used to calculate depreciation and any encumbrances on the properties. The entity provides a reconciliation of the carrying amount of real estate from the beginning of the period to the end of the period. Any real estate investments that have been written down or reserved against are described, including the basis of the write-down. A material amount of intercompany profit in the total carrying amount of real estate is disclosed. The aggregate cost of all real estate investments for federal income tax purposes is also disclosed.

Mortgage Loans on Real Estate [Abstract]

Schedule IV-Mortgage Loans on Real Estate

12 Months Ended

Dec. 31, 2012

Schedule IV—Mortgage Loans on Real Estate

iStar Financial Inc.

Schedule IV—Mortgage Loans on Real Estate

As of December 31, 2012

($ in thousands)



Type of Loan/Borrower	Underlying Property Type	Contractual Interest Accrual Rates	Contractual Interest Payment Rates	Effective Maturity Dates	Periodic Payment Terms	Prior Liens		Face Amount of Mortgages		Carrying Amount of Mortgages(1)(2)
Senior Mortgages:
Borrower A	Mixed Use/Mixed Collateral	LIBOR + 3.3%	LIBOR + 3.3%	October 2013	IO	$	—	$	99,725	$	99,730
Borrower B	Condominium	LIBOR + 3.5%	LIBOR + 3.5%	May 2013	IO	—		96,997		98,055
Borrower C(3)	Entertainment/Leisure	17%	17%	April 2009	IO	—		221,358		74,541
Borrower D(4)	Land	LIBOR + 3.5%	LIBOR + 3.5%	May 2009	IO	—		71,480		62,248
Borrower E(5)	Condominium	LIBOR + 4%	LIBOR + 4%	December 2013	IO	—		59,338		59,474
Borrower F(6)	Land	LIBOR + 3.5%	0%	June 2010	IO	—		137,807		56,087
Borrower G(7)	Hotel	LIBOR + 4.25%	LIBOR + 4.25%	June 2014	P&I	—		55,830		55,816
Borrower H(8)	Industrial/R&D	LIBOR + 1.5%	LIBOR + 1.5%	December 2014	IO	—		54,596		51,705
Borrower I	Land	LIBOR + 7%	LIBOR + 7%	June 2013	IO	—		46,910		47,666
Senior mortgages individually <3%	Condominium, Retail, Land, Industrial/R&D, Mixed Use/Mixed Collateral, Office, Hotel, Entertainment/Leisure, Other	Fixed: 4% to 23% Variable: LIBOR + 1.5% to LIBOR + 8.25%	Fixed: 2.5% to 10% Variable: LIBOR + 0.5% to LIBOR + 8.25%	2013 to 2024				902,836		703,173
								$	1,746,877	$	1,308,495
Subordinate Mortgages:
Subordinate mortgages individually <3%	Retail, Mixed Use/Mixed Collateral, Office, Hotel, Other	Fixed: 5% to 14% Variable: LIBOR + 3.98% to LIBOR + 3.98%	Fixed: 6.5% to 10.5% Variable: LIBOR + 3.98% to LIBOR + 3.98%	2013 to 2018				$	152,011	$	113,159
								$	152,011	$	113,159
Total mortgages								$	1,898,888	$	1,421,654

Explanatory Notes:

_______________________________________________________________________________


(1)	Amounts are presented net of asset-specific reserves of $482.3 million on impaired loans. Impairment is measured using the estimated fair value of collateral, less costs to sell.


(2)	The carrying amount of mortgages approximated the federal income tax basis.


(3)	Loan is in default with $221.4 million of principal that is more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status.


(4)	Loan is in default with $71.5 million of principal that is more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status. As of December 31, 2012, included a LIBOR interest rate floor of 3.5%.


(5)	As of December 31, 2012, included a LIBOR interest rate floor of 4.0%.


(6)	Loan is in default with $137.8 million of principal that is more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status.


(7)	Loan is in default with interest payments that are more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status.


(8)	As of December 31, 2012, included a LIBOR interest rate floor of 3.88%.

iStar Financial Inc.

Schedule IV—Mortgage Loans on Real Estate (Continued)

As of December 31, 2012

($ in thousands)

Reconciliation of Mortgage Loans on Real Estate:

The following table reconciles Mortgage Loans on Real Estate from January 1, 2010 to December 31, 2012 (1):



	2012			2011			2010
Balance at January 1	$	2,449,554		$	4,012,067		$	6,662,379
Additions:
New mortgage loans	2,205			20,000			—
Additions under existing mortgage loans	29,887			82,598			326,093
Other(2)	33,324			32,922			48,493
Deductions(3):
Collections of principal	(700,943		)	(1,047,943		)	(2,004,129		)
Provision for loan losses	(121,869		)	(93,187		)	(291,905		)
Transfers to real estate and equity investments	(270,359		)	(556,753		)	(728,559		)
Amortization of premium	(145		)	(150		)	(305		)
Balance at December 31	$	1,421,654		$	2,449,554		$	4,012,067

Explanatory Notes:

_______________________________________________________________________________


(1)	Balances represent the carrying value of loans, which are net of asset specific reserves.


(2)	Amount includes amortization of discount, deferred interest capitalized and mark-to-market adjustments resulting from changes in foreign exchange rates.


(3)	Amounts are presented net of charge-offs of $106.9 million, $214.0 million and $804.7 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Real estate

Real estate—Real estate assets are recorded at cost less accumulated depreciation and amortization, as follows:

Equity and cost method investments

Cash and cash equivalents

Cash and cash equivalents—Cash and cash equivalents include cash held in banks or invested in money market funds with original maturity terms of less than 90 days.

Restricted cash

Restricted cash—Restricted cash represents amounts required to be maintained under certain of the Company's debt obligations, loans, leasing, land development and derivative transactions.

Consolidation-Variable interest entities

Deferred expenses

Identified intangible assets

Revenue recognition

Revenue recognition—The Company's revenue recognition policies are as follows:

Interest Income: Interest income on loans receivable is recognized on an accrual basis using the interest method.

Reserve for loan losses

Allowance for doubtful accounts

anagement estimates losses inherent in the accrued operating lease income receivable and deferred operating lease income receivable balances as of the balance sheet date and incorporates an asset-specific component, as well as a general, formula-based reserve based on management's evaluation of the credit risks associated with these receivables. At December 31, 2012 and 2011, the total allowance for doubtful accounts was $5.6 million and $3.7 million, respectively.

Derivative instruments and hedging activity

Stock-based compensation

Income taxes



	For the Years Ended December 31,
	2012		2011			2010
Current tax expense	$	8,445	$	9,010		$	2,550
Deferred tax expense (benefit)(1)	—		(13,729		)	4,473
Total income tax expense (benefit)	$	8,445	$	(4,719	)	$	7,023

Explanatory Note:

_______________________________________________________________________________


(1)	During the year ended December 31, 2011, the Company sold its investment in Oak Hill Advisors L.P. (see Note 6) and recognized a deferred tax benefit resulting from the reversal of a deferred tax liability associated with the investment. See the table below for the Company's deferred tax assets and liabilities as of December 31, 2012 and 2011.

Total cash paid for taxes for the years ended December 31, 2012, 2011 and 2010, was $5.5 million, $8.5 million and $7.3 million, respectively.

Deferred tax assets and liabilities of the Company's TRS entities were as follows ($ in thousands):



	As of December 31,
	2012			2011
Deferred tax assets(1)	$	40,800		$	50,889
Valuation allowance	(40,800		)	(50,889		)
Net deferred tax assets (liabilities)	$	—		$	—

Explanatory Note:

_______________________________________________________________________________

(1)

Earnings per share

New Accounting Pronouncements

Summary of Significant Accounting Policies (Tables) - Taxable REIT Subsidiaries (TRSs)

12 Months Ended

Dec. 31, 2012

Income Taxes [Line Items]

Schedule of entity's TRS income tax expense

The following represents the Company's TRS income tax expense ($ in thousands):



	For the Years Ended December 31,
	2012		2011			2010
Current tax expense	$	8,445	$	9,010		$	2,550
Deferred tax expense (benefit)(1)	—		(13,729		)	4,473
Total income tax expense (benefit)	$	8,445	$	(4,719	)	$	7,023

Explanatory Note:

_______________________________________________________________________________


(1)	During the year ended December 31, 2011, the Company sold its investment in Oak Hill Advisors L.P. (see Note 6) and recognized a deferred tax benefit resulting from the reversal of a deferred tax liability associated with the investment. See the table below for the Company's deferred tax assets and liabilities as of December 31, 2012 and 2011.

Schedule of deferred tax assets and liabilities of the entity's TRS entities

Deferred tax assets and liabilities of the Company's TRS entities were as follows ($ in thousands):



	As of December 31,
	2012			2011
Deferred tax assets(1)	$	40,800		$	50,889
Valuation allowance	(40,800		)	(50,889		)
Net deferred tax assets (liabilities)	$	—		$	—

Explanatory Note:

_______________________________________________________________________________

(1)

Real estate (Tables)

12 Months Ended

Dec. 31, 2012

Real Estate [Abstract]

Schedule of Real Estate Assets

The Company's real estate assets were comprised of the following ($ in thousands):



	Net Lease Assets			Operating Properties			Land			Total
As of December 31, 2012
Land and land improvements	$	344,239		$	132,028		$	786,114		$	1,262,381
Buildings and improvements	1,295,081			669,186			—			1,964,267
Less: accumulated depreciation and amortization	(315,699		)	(109,634		)	(2,292		)	(427,625		)
Real estate, net	$	1,323,621		$	691,580		$	783,822		$	2,799,023
Real estate available and held for sale	—			454,587			181,278			635,865
Total real estate	$	1,323,621		$	1,146,167		$	965,100		$	3,434,888
As of December 31, 2011
Land and land improvements	$	378,458		$	84,010		$	851,272		$	1,313,740
Buildings and improvements	1,394,691			636,241			—			2,030,932
Less: accumulated depreciation and amortization	(302,851		)	(90,383		)	(3,527		)	(396,761		)
Real estate, net	$	1,470,298		$	629,868		$	847,745		$	2,947,911
Real estate available and held for sale	—			551,998			125,460			677,458
Total real estate	$	1,470,298		$	1,181,866		$	973,205		$	3,625,369

Schedule of Reclassified Income Statement Items

In connection with the reclassification of these assets to held and used, the Company reclassified their results of operations for each of the periods presented, as follows:



	For the Years Ended December 31,
	2012			2011			2010
Other income	$	21,148		$	21,663		$	22,751
Real estate expenses	$	(22,603	)	$	(24,297	)	$	(25,612	)

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The following table summarizes income from discontinued operations for the years ended December 31, 2012, 2011 and 2010, respectively ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Revenues	$	5,561		$	16,512		$	88,536
Total expenses	(2,450		)	(14,683		)	(62,143		)
Impairment of assets	(22,576		)	(9,147		)	(9,572		)
Income (loss) from discontinued operations	$	(19,465	)	$	(7,318	)	$	16,821

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated aggregate amortization costs for each of the five succeeding fiscal years are as follows ($ in thousands):



2013	$	11,534
2014	$	9,221
2015	$	7,589
2016	$	6,770
2017	$	5,721

Schedule of Future Minimum Rental Payments for Operating Leases



Year	Net Lease Assets		Operating Properties
2013	$	126,777	$	54,590
2014	$	129,622	$	53,516
2015	$	130,871	$	48,925
2016	$	128,347	$	46,426
2017	$	121,533	$	43,754

Future minimum lease obligations under non-cancelable operating leases are as follows ($ in thousands):



2013	$	5,479
2014	$	4,835
2015	$	4,469
2016	$	4,582
2017	$	4,210
Thereafter	$	9,265

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

Schedule of the Company's loans and other lending investments by class

Loans Receivable, net (Tables)

12 Months Ended

Dec. 31, 2012

Receivables [Abstract]

The following is a summary of the Company's loans receivable by class ($ in thousands):



	As of December 31,
Type of Investment	2012			2011
Senior mortgages	$	1,751,256		$	2,801,213
Subordinate mortgages	152,737			211,491
Corporate/Partnership loans	450,491			478,892
Total gross carrying value of loans(1)	$	2,354,484		$	3,491,596
Reserves for loan losses	(524,499		)	(646,624		)
Total carrying value of loans	$	1,829,985		$	2,844,972
Other lending investments—securities	—			15,790
Total loans receivable, net	$	1,829,985		$	2,860,762

Explanatory Note:

_______________________________________________________________________________


(1)	The Company's recorded investment in loans as of December 31, 2012 and 2011, was $2.36 billion and $3.50 billion, respectively, which consists of total gross carrying value of loans plus accrued interest of $9.8 million and $13.3 million, for the same two periods, respectively.

Schedule of changes in the Company's reserve for loan losses

Reserve for Loan Losses—Changes in the Company's reserve for loan losses were as follows ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Reserve for loan losses at beginning of period	$	646,624		$	814,625		$	1,417,949
Provision for loan losses	81,740			46,412			331,487
Charge-offs	(203,865		)	(214,413		)	(934,811		)
Reserve for loan losses at end of period	$	524,499		$	646,624		$	814,625

Schedule of recorded investment in loans and associated reserve for loan losses

The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands):



	Individually Evaluated for Impairment(1)			Collectively Evaluated for Impairment(2)			Loans Acquired with Deteriorated Credit Quality(3)			Total
As of December 31, 2012
Loans	$	1,095,957		$	1,210,077		$	58,281		$	2,364,315
Less: Reserve for loan losses	(472,058		)	(33,100		)	(19,341		)	(524,499		)
Total	$	623,899		$	1,176,977		$	38,940		$	1,839,816
As of December 31, 2011
Loans	$	1,525,337		$	1,919,876		$	59,648		$	3,504,861
Less: Reserve for loan losses	(554,131		)	(73,500		)	(18,993		)	(646,624		)
Total	$	971,206		$	1,846,376		$	40,655		$	2,858,237

Explanatory Notes:

_______________________________________________________________________________

(1)


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $3.8 million and $0.2 million as of December 31, 2012 and 2011, respectively.


(3)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net premium of $0.1 million and a net discount of $15.0 million as of December 31, 2012 and 2011, respectively. These loans had cumulative principal balances of $58.8 million and $74.5 million, as of December 31, 2012 and 2011, respectively.

Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating

The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):



	As of
	December 31, 2012			December 31, 2011
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	840,593	2.75	$	1,514,016	3.19
Subordinate mortgages	99,698		2.27	190,342		3.36
Corporate/Partnership loans	444,772		3.69	472,178		3.61
Total	$	1,385,063	3.01	$	2,176,536	3.29

Schedule of recorded investment in loans, aged by payment status and presented by class

As of December 31, 2012, the Company's recorded investment in loans, aged by payment status and presented by class, were as follows ($ in thousands):



	Current		Less Than and Equal to 90 Days		Greater Than 90 Days		Total Past Due		Total
Senior mortgages	$	862,082	$	62,768	$	830,906	$	893,674	$	1,755,756
Subordinate mortgages	99,698		—		53,979		53,979		153,677
Corporate/Partnership loans	444,772		—		10,110		10,110		454,882
Total	$	1,406,552	$	62,768	$	894,995	$	957,763	$	2,364,315

Schedule of recorded investment in impaired loans, presented by class

Impaired Loans—The Company's recorded investment in impaired loans, presented by class, were as follows ($ in thousands)(1):



	As of December 31, 2012							As of December 31, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Senior mortgages	$	108,077	$	107,850	$	—		$	219,488	$	218,612	$	—
Corporate/Partnership loans	10,110		10,160		—			10,110		10,160		—
Subtotal	$	118,187	$	118,010	$	—		$	229,598	$	228,772	$	—
With an allowance recorded:
Senior mortgages	$	918,975	$	918,496	$	(442,760	)	$	1,268,962	$	1,263,195	$	(540,670	)
Subordinate mortgages	53,979		53,679		(39,579		)	22,480		22,558		(22,480		)
Corporate/Partnership loans	63,096		63,246		(9,060		)	62,591		62,845		(9,974		)
Subtotal	$	1,036,050	$	1,035,421	$	(491,399	)	$	1,354,033	$	1,348,598	$	(573,124	)
Total:
Senior mortgages	$	1,027,052	$	1,026,346	$	(442,760	)	$	1,488,450	$	1,481,807	$	(540,670	)
Subordinate mortgages	53,979		53,679		(39,579		)	22,480		22,558		(22,480		)
Corporate/Partnership loans	73,206		73,406		(9,060		)	72,701		73,005		(9,974		)
Total	$	1,154,237	$	1,153,431	$	(491,399	)	$	1,583,631	$	1,577,370	$	(573,124	)

Explanatory Note:

_______________________________________________________________________________


(1)	All of the Company's non-accrual loans are considered impaired and included in the table above. In addition, as of December 31, 2012 and 2011, certain loans modified through troubled debt restructurings with a recorded investment of $175.0 million and $255.3 million, respectively, are also included as impaired loans in accordance with GAAP although they are performing and on accrual status.

Schedule of average recorded investment in impaired loans and interest income recognized, presented by class

The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands):



	For the Years Ended December 31,
	2012				2011				2010
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	162,093	$	2,765	$	309,079	$	31,799	$	659,150	$	20,472
Subordinate mortgages	—		—		—		—		1,404		87
Corporate/Partnership loans	10,110		160		10,110		680		27,526		1,868
Subtotal	$	172,203	$	2,925	$	319,189	$	32,479	$	688,080	$	22,427
With an allowance recorded:
Senior mortgages	$	1,064,045	$	3,865	$	1,608,486	$	7,187	$	2,411,735	$	5,183
Subordinate mortgages	52,208		—		19,477		—		77,125		107
Corporate/Partnership loans	62,248		312		66,087		332		65,118		—
Subtotal	$	1,178,501	$	4,177	$	1,694,050	$	7,519	$	2,553,978	$	5,290
Total:
Senior mortgages	$	1,226,138	$	6,630	$	1,917,565	$	38,986	$	3,070,885	$	25,655
Subordinate mortgages	52,208		—		19,477		—		78,529		194
Corporate/Partnership loans	72,358		472		76,197		1,012		92,644		1,868
Total	$	1,350,704	$	7,102	$	2,013,239	$	39,998	$	3,242,058	$	27,717

Schedule of troubled debt restructurings, presented by class

The recorded investment in these loans was impacted by the modifications as follows, presented by class ($ in thousands):



	For the Years Ended December 31,
	2012					2011
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Senior mortgages	8	$	319,667	$	272,753	7	$	191,158	$	190,893

Schedule of troubled debt restructurings that subsequently defaulted

Troubled debt restructurings that subsequently defaulted during the period were as follows ($ in thousands):



	For the Years Ended December 31,
	2012			2011
	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded Investment
Senior mortgages	1	$	18,511	1	$	28,005

Other Investments (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of other investments and its proportionate share of results for equity method investments

The Company's other investments and its proportionate share of results from equity method investments were as follows ($ in thousands):



	Carrying Value as of December 31,				Equity in earnings for the years ended December 31,
	2012		2011		2012		2011			2010
LNR	$	205,773	$	159,764	$	60,669	$	53,861		$	1,797
Madison Funds	56,547		103,305		10,246		3,641			9,717
Oak Hill Funds	29,840		56,817		5,844		1,918			11,613
Real estate equity investments	47,619		69,100		21,636		(5,273		)	2,522
Other equity method investments(1)	47,939		56,849		4,614		40,944			26,259
Total equity method investments	$	387,718	$	445,835	$	103,009	$	95,091		$	51,908
Other	11,125		12,000
Total other investments	$	398,843	$	457,835

Explanatory Note:

_______________________________________________________________________________


(1)	For the years ended December 31, 2011 and 2010, amounts include $38.4 million and $22.4 million, respectively, of earnings related to Oak Hill Advisors, L.P. and related entities that were sold in October 2011.

LNR Property LLC ("LNR")

Schedule of summarized Income Statements

The following table represents the latest available financial information of investee level summarized financial information for LNR ($ in thousands)(1):



	For the Years Ended September 30,						For the period July 29 to September 30,
	2012			2011			2010
Income Statements
Total revenue(2)	$	332,902		$	327,032		$	40,022
Income tax expense (benefit)(3)	$	6,731		$	(76,558	)	$	685
Net income attributable to LNR	$	253,039		$	225,190		$	7,495
iStar's ownership percentage	24		%	24		%	24		%
iStar's equity in earnings from LNR	$	60,669		$	53,861		$	1,797

Schedule of summarized Balance Sheets



	As of September 30,
	2012			2011
Balance Sheets
Total assets(2)	$	1,384,337		$	1,288,923
Total debt(2)	$	398,912		$	469,631
Total liabilities(2)	$	517,088		$	576,835
Noncontrolling interests	$	1,560		$	39,940
LNR Property LLC equity	$	865,689		$	672,147
iStar's ownership percentage	24		%	24		%
iStar's equity in LNR	$	205,773		$	159,764

Explanatory Notes:

_______________________________________________________________________________

(1)

(2)


(3)	During the year ended December 31, 2011, LNR recorded an income tax benefit from the settlement of certain tax liabilities.

Equity method investments excluding LNR

Schedule of summarized Income Statements

Summarized Financial Information—The following table presents the investee level summarized financial information of the Company's equity method investments, excluding LNR ($ in thousands):



	For the Years Ended December 31,
	2012		2011		2010
Income Statements
Revenues	$	401,870	$	198,340	$	590,265
Net income (loss) attributable to parent entities	$	304,960	$	97,066	$	342,661

Schedule of summarized Balance Sheets



	As of December 31,
	2012		2011
Balance Sheets
Total assets	$	2,830,087	$	3,079,736
Total liabilities	$	163,164	$	197,246
Noncontrolling interests	$	29,553	$	4,139
Total equity	$	2,637,370	$	2,878,351

Other Assets and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Other Assets and Other Liabilities [Abstract]

Schedule of deferred expenses and other assets, net

Deferred expenses and other assets, net, consist of the following items ($ in thousands):



	As of December 31,
	2012		2011
Deferred financing fees, net(1)	$	26,629	$	21,443
Leasing costs, net(2)	20,205		12,423
Other receivables	11,517		23,943
Corporate furniture, fixtures and equipment, net(3)	7,537		9,034
Prepaid expenses	5,218		5,441
Other assets	22,884		18,555
Deferred expenses and other assets, net	$	93,990	$	90,839

Explanatory Notes:

_______________________________________________________________________________


(1)	Accumulated amortization on deferred financing fees was $4.1 million and $13.3 million as of December 31, 2012 and 2011, respectively.


(2)	Accumulated amortization on leasing costs was $6.6 million and $5.5 million as of December 31, 2012 and 2011, respectively.


(3)	Accumulated depreciation on corporate furniture, fixtures and equipment was $6.2 million and $8.1 million as of December 31, 2012 and 2011, respectively.

Schedule of accounts payable, accrued expenses and other liabilities

Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands):



	As of December 31,
	2012		2011
Accrued expenses	$	50,467	$	36,332
Accrued interest payable	29,521		30,122
Security deposits and other investment deposits	13,717		12,192
Unearned operating lease income	11,294		10,073
Property taxes payable	8,206		6,495
Derivative liabilities	3,435		2,373
Other liabilities	15,820		7,770
Accounts payable, accrued expenses and other liabilities	$	132,460	$	105,357

Debt Obligations, net (Tables)

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Schedule of debt obligations

As of December 31, 2012 and 2011, the Company's debt obligations were as follows ($ in thousands):



	Carrying Value as of December 31,
	2012			2011			Stated Interest Rates			Scheduled Maturity Date
Secured credit facilities and term loans:
2011 Tranche A-1 Facility	$	—		$	961,580		LIBOR + 3.75%		(1)	—
2011 Tranche A-2 Facility	—			1,450,000			LIBOR + 5.75%		(1)	—
2012 Tranche A-1 Facility	169,164			—			LIBOR + 4.00%		(2)	March 2016
2012 Tranche A-2 Facility	470,000			—			LIBOR + 5.75%		(2)	March 2017
October 2012 Secured Credit Facility	1,754,466			—			LIBOR + 4.50%		(3)	October 2017
Term loans collateralized by net lease assets	264,432			293,192			4.851% - 7.68%			Various through 2026
Total secured credit facilities and term loans	$	2,658,062		$	2,704,772
Unsecured credit facility:
Line of credit	$	—		$	243,650		LIBOR + 0.85%			—
Unsecured notes:
5.15% senior notes	—			263,466			5.15	%		—
5.50% senior notes	—			92,845			5.50	%		—
LIBOR + 0.50% senior convertible notes	—			784,750			LIBOR + 0.50%			—
8.625% senior notes	96,801			501,701			8.625	%		June 2013
5.95% senior notes	448,453			448,453			5.95	%		October 2013
6.5% senior notes	—			67,055			6.5	%		December 2013
5.70% senior notes	200,601			200,601			5.70	%		March 2014
6.05% senior notes	105,765			105,765			6.05	%		April 2015
5.875% senior notes	261,403			261,403			5.875	%		March 2016
3.0% senior convertible notes(4)	200,000			—			3.0	%		November 2016
5.85% senior notes	99,722			99,722			5.85	%		March 2017
9.0% senior notes	275,000			—			9.0	%		June 2017
7.125% senior notes	300,000			—			7.125	%		February 2018
Total unsecured notes	$	1,987,745		$	2,825,761
Other debt obligations:
Other debt obligations	$	100,000		$	100,000		LIBOR + 1.5%			October 2035
Total debt obligations	$	4,745,807		$	5,874,183
Debt discounts, net	(54,313		)	(36,643		)
Total debt obligations, net	$	4,691,494		$	5,837,540

Explanatory Notes:

_______________________________________________________________________________


(1)	These loans had a LIBOR floor of 1.25%.


(2)	These loans each have a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floors, the 2012 Tranche A-1 Facility and 2012 Tranche A-2 Facility loans incurred interest at a rate of 5.25% and 7.00%, respectively.


(3)	This loan has a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floor, the October 2012 Secured Credit Facility incurred interest at a rate of 5.75%. Subsequent to year end, in connection with the repricing of the October 2012 Secured Credit Facility, the loan will bear interest at a rate of LIBOR + 3.50%, with a LIBOR floor of 1.00%. See Note 17—Subsequent Events.

(4)

Schedule of future scheduled maturities of outstanding long-term debt obligations, net

Future Scheduled Maturities—As of December 31, 2012, future scheduled maturities of outstanding long-term debt obligations are as follows ($ in thousands)(1):



	Unsecured Debt			Secured Debt			Total
2013	$	545,254		$	—		$	545,254
2014	200,601			—			200,601
2015	105,765			46,164			151,929
2016	461,403			134,816			596,219
2017	374,722			2,212,650			2,587,372
Thereafter	400,000			264,432			664,432
Total principal maturities	$	2,087,745		$	2,658,062		$	4,745,807
Unamortized debt discounts, net	(19,147		)	(35,166		)	(54,313		)
Total long-term debt obligations, net	$	2,068,598		$	2,622,896		$	4,691,494

Explanatory Note:

_______________________________________________________________________________


(1)	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.

Schedule of carrying value of encumbered assets by asset type

Unencumbered/Encumbered Assets—As of December 31, 2012, the carrying value of the Company's unencumbered and encumbered assets by asset type are as follows ($ in thousands):



	As of December 31,
	2012				2011
	Encumbered Assets		Unencumbered Assets		Encumbered Assets		Unencumbered Assets
Real estate, net	$	1,794,198	$	1,004,825	$	1,533,579	$	1,397,319
Real estate available and held for sale	141,673		494,192		177,092		500,366
Loans receivable, net(1)	1,197,373		665,712		1,780,591		1,153,671
Other investments	43,545		355,298		37,957		419,878
Cash and other assets	—		487,073		—		590,884
Total	$	3,176,789	$	3,007,100	$	3,529,219	$	4,062,118

Explanatory Note:

_______________________________________________________________________________


(1)	As of December 31, 2012 and 2011, the amounts presented exclude general reserves for loan losses of $33.1 million and $73.5 million, respectively.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule of unfunded commitments



	Loans		Real Estate		Strategic Investments		Total
Performance-Based Commitments	$	44,751	$	36,318	$	—	$	81,069
Discretionary Fundings	102		—		—		102
Strategic investments	—		—		47,322		47,322
Total	$	44,853	$	36,318	$	47,322	$	128,493

Schedule of future minimum rental payments for operating leases



Year	Net Lease Assets		Operating Properties
2013	$	126,777	$	54,590
2014	$	129,622	$	53,516
2015	$	130,871	$	48,925
2016	$	128,347	$	46,426
2017	$	121,533	$	43,754

Future minimum lease obligations under non-cancelable operating leases are as follows ($ in thousands):



2013	$	5,479
2014	$	4,835
2015	$	4,469
2016	$	4,582
2017	$	4,210
Thereafter	$	9,265

Risk Management and Derivatives (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of total investment portfolio by property/collateral types

As of December 31, 2012, the Company's total investment portfolio was comprised of the following property/collateral types ($ in thousands)(1):



Property/Collateral Types	Real Estate Finance		Net Lease Assets		Operating Properties		Land		Total		% of Total
Land	$	297,039	$	—	$	—	$	970,593	$	1,267,632	22.3	%
Office	124,058		301,304		258,977		—		684,339		12.0	%
Condominium	237,534		—		385,229		—		622,763		11.0	%
Industrial / R&D	94,617		472,149		55,439		—		622,205		10.9	%
Retail	293,651		50,529		184,000		—		528,180		9.3	%
Entertainment / Leisure	98,423		414,849		14		—		513,286		9.0	%
Hotel	298,293		91,746		84,375		—		474,414		8.3	%
Mixed Use / Mixed Collateral	237,989		—		179,337		—		417,326		7.3	%
Other Property Types	181,481		9,424		24,541		—		215,446		3.7	%
Strategic Investments	—		—		—		—		351,225		6.2	%
Total	$	1,863,085	$	1,340,001	$	1,171,912	$	970,593	$	5,696,816	100.0	%

Explanatory Note:

_______________________________________________________________________________


(1)	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.

Schedule of total investment portfolio by geographical region

As of December 31, 2012, the Company's total investment portfolio had the following characteristics by geographical region ($ in thousands)(1):



Geographic Region	Real Estate Finance		Net Lease Assets		Operating Properties		Land		Total		% of Total
West	$	340,457	$	340,896	$	237,496	$	367,470	$	1,286,319	22.6	%
Northeast	421,660		317,003		175,894		180,744		1,095,301		19.2	%
Southeast	308,559		201,535		251,410		89,035		850,539		14.9	%
Southwest	197,478		182,329		209,424		120,293		709,524		12.5	%
Mid-Atlantic	43,866		104,205		217,379		180,290		545,740		9.6	%
International(2)	308,210		—		—		—		308,210		5.4	%
Central	159,460		68,434		61,938		9,500		299,332		5.2	%
Northwest	83,236		56,409		18,371		23,261		181,277		3.2	%
Various	159		69,190		—		—		69,349		1.2	%
Strategic Investments(2)	—		—		—		—		351,225		6.2	%
Total	$	1,863,085	$	1,340,001	$	1,171,912	$	970,593	$	5,696,816	100.0	%

Explanatory Notes:

_______________________________________________________________________________


(1)	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.


(2)	Strategic investments includes $36.6 million of international assets. Additionally, international and strategic investments include $228.7 million of European assets, including $117.6 million in Germany and $111.1 million

Schedule of fair value of derivative financial instruments as well as their classification on Consolidated Balance Sheets



	Derivative Assets as of December 31,						Derivative Liabilities as of December 31,
	2012			2011			2012			2011
Derivative	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	N/A	$	—	N/A	$	—	Other Liabilities	$	2,855	Other Liabilities	$	1,342
Cash flow interest rate swap	N/A	—		N/A	—		Other Liabilities	580		Other Liabilities	1,031
Total		$	—		$	—		$	3,435		$	2,373

Schedule of derivative financial instruments on Consolidated Statements of Operations



Derivatives Designated in Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion)			Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion)			Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion)
For Year Ended December 31, 2012
Cash flow interest rate swap	Interest Expense	$	(968	)	$	(44	)	N/A
For the Year Ended December 31, 2011
Cash flow interest rate swap	Interest Expense	$	(1,553	)	$	(180	)	N/A



		Amount of Gain or (Loss) Recognized in Income on Derivative
	Location of Gain or (Loss) Recognized in Income on Derivative	For the Years Ended December 31,
Derivatives not Designated in Hedging Relationships		2012			2011		2010
Foreign Exchange Contracts	Other Expense	$	(8,920	)	$	17,406	$	(1,010	)

Schedule of foreign currency derivatives outstanding

The following table presents the Company's foreign currency derivatives outstanding as of December 31, 2012 ($ in thousands):



Derivative Type	Notional Amount		Notional (USD Equivalent)		Maturity
Sells EUR/Buys USD Forward	€	109,000	$	143,925	January 2013
Sells GBP/Buys USD Forward	£	52,850	$	85,856	January 2013
Sells CAD/Buys USD Forward	C$	50,700	$	51,065	January 2013

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

Schedule of Cumulative Redeemable Preferred Stock outstanding by series

Equity (Tables)

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Preferred Stock—The Company had the following series of Cumulative Redeemable Preferred Stock outstanding as of December 31, 2012 and 2011:



				Cumulative Preferential Cash Dividends(1)(2)
Series	Shares Issued and Outstanding (in thousands)	Par Value		Rate per Annum of the $25.00 Liquidation Preference		Equivalent to Fixed Annual Rate (per share)
D	4,000	$	0.001	8.000	%	$	2.00
E	5,600	$	0.001	7.875	%	$	1.97
F	4,000	$	0.001	7.8	%	$	1.95
G	3,200	$	0.001	7.65	%	$	1.91
I	5,000	$	0.001	7.50	%	$	1.88
	21,800

Explanatory Notes:

_______________________________________________________________________________

(1)


(2)	The Company declared and paid dividends of $8.0 million, $11.0 million, $7.8 million, $6.1 million and $9.4 million on its Series D, E, F, G and I preferred stock, respectively, during each of the years ended December 31, 2012 and 2011, all of which qualified as return of capital for tax reporting purposes. There are no dividend arrearages on any of the preferred shares currently outstanding.

Accumulated other comprehensive income (loss) reflected in the Company's shareholders' equity

Accumulated Other Comprehensive Income (Loss)—"Accumulated other comprehensive income (loss)" reflected in the Company's shareholders' equity is comprised of the following ($ in thousands):



	As of December 31,
	2012			2011
Unrealized gains on available-for-sale securities	$	867		$	589
Unrealized gains on cash flow hedges	607			1,986
Unrealized losses on cumulative translation adjustment	(2,659		)	(2,903		)
Accumulated other comprehensive income (loss)	$	(1,185	)	$	(328	)

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14643745&loc=d3e177068-122764

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21553-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6403732&loc=d3e21300-112643

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.28,29)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 30
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 150
-Paragraph 9
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29
-Article 5

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans and Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of changes in non-vested restricted stock units

Changes in non-vested restricted stock units during the year ended December 31, 2012 were as follows ($ in thousands, except per share amounts):



	Number of Shares		Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Non-vested at December 31, 2011	9,985		$	4.70
Granted	—		$	—
Vested	(4,595	)	$	4.06
Forfeited	(114	)	$	5.99
Non-vested at December 31, 2012	5,276		$	5.24	$	43,000

Schedule of assumptions used to estimate the fair value of market condition based awards

The following assumptions were used to estimate the fair value of market-condition based awards:



	Valued as of
	July 1, 2011(1)
Risk-free interest rate	0.092	%
Expected stock price volatility	57.75	%
Expected annual dividend	—

Explanatory Note:

_______________________________________________________________________________


(1)	The modified December 19, 2008 market-condition based restricted stock units were measured on July 1, 2011, the date the Company's Board of Directors' approved the modification of the award.

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Reconciliation of income (loss) from continuing operations used in the basic and diluted EPS calculations

The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted earnings per share calculations ($ in thousands, except for per share data):



	For the Years Ended December 31,
	2012			2011			2010
Income (loss) from continuing operations	$	(312,694	)	$	(49,206	)	$	(206,997	)
Net (income) loss attributable to noncontrolling interests	1,500			3,629			(523		)
Income from sales of residential property	63,472			5,721			—
Preferred dividends	(42,320		)	(42,320		)	(42,320		)
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders, HPU holders and Participating Security Holders	$	(290,042	)	$	(82,176	)	$	(249,840	)

Schedule of earnings per share allocable to common shares and HPU shares



	For the Years Ended December 31,
	2012			2011			2010
Earnings allocable to common shares:
Numerator for basic earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(280,534	)	$	(79,627	)	$	(242,440	)
Income (loss) from discontinued operations	(18,826		)	(7,091		)	16,324
Gain from discontinued operations	26,363			24,331			262,395
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(272,997	)	$	(62,387	)	$	36,279
Numerator for diluted earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(280,534	)	$	(79,627	)	$	(242,440	)
Income (loss) from discontinued operations	(18,826		)	(7,091		)	16,324
Gain from discontinued operations	26,363			24,331			262,395
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(272,997	)	$	(62,387	)	$	36,279
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding for basic earnings per common share	83,742			88,688			93,244
Add: effect of assumed shares issued under treasury stock method for restricted shares	—			—			—
Add: effect of joint venture shares	—			—			—
Weighted average common shares outstanding for diluted earnings per common share	83,742			88,688			93,244
Basic earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.35	)	$	(0.89	)	$	(2.60	)
Income (loss) from discontinued operations	(0.22		)	(0.08		)	0.18
Gain from discontinued operations	0.31			0.27			2.81
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.26	)	$	(0.70	)	$	0.39
Diluted earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.35	)	$	(0.89	)	$	(2.60	)
Income (loss) from discontinued operations	(0.22		)	(0.08		)	0.18
Gain from discontinued operations	0.31			0.27			2.81
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.26	)	$	(0.70	)	$	0.39



	For the Years Ended December 31,
	2012			2011			2010
Earnings allocable to High Performance Units:
Numerator for basic earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,509	)	$	(2,549	)	$	(7,400	)
Income (loss) from discontinued operations	(638		)	(227		)	497
Gain from discontinued operations	894			779			7,987
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,253	)	$	(1,997	)	$	1,084
Numerator for diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,509	)	$	(2,549	)	$	(7,400	)
Income (loss) from discontinued operations	(638		)	(227		)	497
Gain from discontinued operations	894			779			7,987
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,253	)	$	(1,997	)	$	1,084
Denominator for basic and diluted earnings per HPU share:
Weighted average High Performance Units outstanding for basic and diluted earnings per share	15			15			15
Basic earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(633.94	)	$	(169.93	)	$	(493.33	)
Income (loss) from discontinued operations	(42.53		)	(15.13		)	33.13
Gain from discontinued operations	59.60			51.93			532.47
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(616.87	)	$	(133.13	)	$	72.27
Diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(633.94	)	$	(169.93	)	$	(493.33	)
Income (loss) from discontinued operations	(42.53		)	(15.13		)	33.13
Gain from discontinued operations	59.60			51.93			532.47
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(616.87	)	$	(133.13	)	$	72.27

Schedule of anti-dilutive shares

For the years ended December 31, 2012, 2011 and 2010 the following shares were anti-dilutive ($ in thousands):



	For the Years Ended December 31,
	2012	2011	2010
Joint venture shares	298	298	298
Stock options	—	44	143

Fair Values (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis by levels

The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):



			Fair Value Using
	Total		Quoted market prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
As of December 31, 2012
Recurring basis:
Derivative liabilities	$	3,435	$	—	$	3,435	$	—
Non-recurring basis:
Impaired loans	$	57,201	$	—	$	—	$	57,201
Impaired real estate	$	31,597	$	—	$	7,649	$	23,948
As of December 31, 2011
Recurring basis:
Derivative liabilities	$	2,373	$	—	$	2,373	$	—
Non-recurring basis:
Impaired loans	$	271,968	$	—	$	—	$	271,968
Impaired real estate	$	43,660	$	—	$	—	$	43,660

Schedule of quantitative information about Level 3 fair value measures of the entity's non-recurring financial and non-financial assets

The following table provides quantitative information about Level 3 fair value measures of the Company's non-recurring financial and non-financial assets ($ in thousands):

Quantitative Information about Level 3 Fair Value Measurements



	Fair Value as of December 31, 2012		Valuation Technique(s)	Unobservable Input	Weighted Average
Impaired loans	$	57,201	Various(1)	Discount rate	10.9	%
				Average annual revenue growth	1.0	%
				Capitalization rate	8.9	%
				Average annual increase in occupancy	0.2	%
Impaired real estate	23,948		Discounted cash flow	Discount rate	12.3	%
				Capitalization rate	9.0	%
				Average annual revenue growth	3.7	%
				Remaining inventory sell out period (in years)	5.0
				Average annual increase in occupancy	(1.0	)%
Total	$	81,149

Explanatory Note:

_______________________________________________________________________________

Tabular disclosure related to assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition. Disclosures include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3) as well as transfers between levels 1 and 2.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a,b,bb)
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2C
-URI http://asc.fasb.org/extlink&oid=7578670&loc=SL7498348-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 33
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 6
-Footnote 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Schedule of financial measures for each segment based on which performance is evaluated

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]



	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)			Company Total
For the Year Ended December 31, 2012
Operating lease income	$	—		$	151,992		$	65,500		$	1,527		$	—		$	219,019
Interest income	133,410			—			—			—			—			133,410
Other income	8,613			—			32,820			2,635			3,975			48,043
Total revenue	$	142,023		$	151,992		$	98,320		$	4,162		$	3,975		$	400,472
Earnings (loss) from equity method investments	—			2,632			25,142			(6,138		)	81,373			103,009
Income from sales of residential property	—			—			63,472			—			—			63,472
Net operating income from discontinued operations(2)	—			4,725			886			—			—			5,611
Gain from discontinued operations	—			27,257			—			—			—			27,257
Revenue and other earnings	$	142,023		$	186,606		$	187,820		$	(1,976	)	$	85,348		$	599,821
Real estate expense	—			(24,255		)	(100,258		)	(27,314		)	—			(151,827		)
Other expense	(4,775		)	—			—			—			(12,491		)	(17,266		)
Direct expenses	$	(4,775	)	$	(24,255	)	$	(100,258	)	$	(27,314	)	$	(12,491	)	$	(169,093	)
Direct segment profit (loss)	$	137,248		$	162,351		$	87,562		$	(29,290	)	$	72,857		$	430,728
Allocated interest expense(3)	(124,208		)	(83,658		)	(66,001		)	(43,993		)	(38,301		)	(356,161		)
Allocated general and administrative(4)	(14,998		)	(9,484		)	(7,760		)	(7,405		)	(25,916		)	(65,563		)
Segment profit (loss)(5)	$	(1,958	)	$	69,209		$	13,801		$	(80,688	)	$	8,640		$	9,004
Other significant non-cash items:
Provision for loan losses	$	81,740		$	—		$	—		$	—		$	—		$	81,740
Impairment of assets(3)	$	—		$	6,670		$	28,501		$	205		$	978		$	36,354
Depreciation and amortization(3)	$	—		$	39,250		$	28,450		$	1,276		$	1,810		$	70,786
Capitalized expenditures	$	—		$	10,993		$	51,579		$	20,497		$	—		$	83,069
As of December 31, 2012
Real estate
Real estate, at cost	$	—		$	1,639,320		$	801,214		$	786,114		$	—		$	3,226,648
Less: accumulated depreciation	—			(315,699		)	(109,634		)	(2,292		)	—			(427,625		)
Real estate, net	$	—		$	1,323,621		$	691,580		$	783,822		$	—		$	2,799,023
Real estate available and held for sale	—			—			454,587			181,278			—			635,865
Total real estate	$	—		$	1,323,621		$	1,146,167		$	965,100		$	—		$	3,434,888
Loans receivable, net	1,829,985			—			—			—			—			1,829,985
Other investments	—			16,380			25,745			5,493			351,225			398,843
Total portfolio assets	$	1,829,985		$	1,340,001		$	1,171,912		$	970,593		$	351,225		$	5,663,716
Cash and other assets	9,832			105,595			60,500			9,638			301,508			487,073
Total assets	$	1,839,817		$	1,445,596		$	1,232,412		$	980,231		$	652,733		$	6,150,789



For the Year Ended December 31, 2011	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)				Company Total
Operating lease income	$	—		$	147,151		$	51,153		$	174		$	—			$	198,478
Interest income	226,871			—			—			—			—				226,871
Other income	3,176			—			32,538			1,635			2,371				39,720
Total revenue	$	230,047		$	147,151		$	83,691		$	1,809		$	2,371			$	465,069
Earnings (loss) from equity method investments	—			2,566			(626		)	(7,213		)	100,364				95,091
Income from sales of residential property	—			—			5,721			—			—				5,721
Net operating income from discontinued operations(2)	—			11,760			(937		)	—			—				10,823
Gain from discontinued operations	—			25,110			—			—			—				25,110
Revenue and other earnings	$	230,047		$	186,587		$	87,849		$	(5,404	)	$	102,735			$	601,814
Real estate expense	—			(25,282		)	(92,012		)	(21,649		)	—				(138,943		)
Other expense	(2,866		)	—			—			—			(8,204		)		(11,070		)
Direct expenses	$	(2,866	)	$	(25,282	)	$	(92,012	)	$	(21,649	)	$	(8,204	)		$	(150,013	)
Direct segment profit (loss)	$	227,181		$	161,305		$	(4,163	)	$	(27,053	)	$	94,531			$	451,801
Allocated interest expense(3)	(161,025		)	(67,338		)	(53,598		)	(42,337		)	(21,616		)		(345,914		)
Allocated general and administrative(4)	(20,680		)	(8,648		)	(6,884		)	(6,959		)	(32,166		)		(75,337		)
Segment profit (loss)(5)	$	45,476		$	85,319		$	(64,645	)	$	(76,349	)	$	40,749			$	30,550
Other significant non-cash items:
Provision for loan losses	$	46,412		$	—		$	—		$	—		$	—			$	46,412
Impairment of assets(3)	$	—		$	668		$	21,030		$	(184	)	$	872			$	22,386
Depreciation and amortization(3)	$	—		$	42,080		$	18,169		$	1,534		$	2,145			$	63,928
Capitalized expenditures	$	—		$	8,699		$	38,477		$	16,993		$	—			$	64,169
As of December 31, 2011
Real estate
Real estate, at cost	$	—		$	1,773,149		$	720,251		$	851,272		$	—			$	3,344,672
Less: accumulated depreciation	—			(302,851		)	(90,383		)	(3,527		)	—				(396,761		)
Real estate, net	$	—		$	1,470,298		$	629,868		$	847,745		$	—			$	2,947,911
Real estate available and held for sale	—			—			551,998			125,460			—			677,458,000	677,458
Total real estate	$	—		$	1,470,298		$	1,181,866		$	973,205		$	—			$	3,625,369
Loans receivable, net	2,860,762			—			—			—			—				2,860,762
Other investments	—			16,297			37,957			14,845			388,736				457,835
Total portfolio assets	$	2,860,762		$	1,486,595		$	1,219,823		$	988,050		$	388,736			$	6,943,966
Cash and other assets	13,340			87,673			33,217			1,734			437,907				573,871
Total assets	$	2,874,102		$	1,574,268		$	1,253,040		$	989,784		$	826,643			$	7,517,837



For the Year Ended December 31, 2010	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)			Company Total
Operating lease income	$	—		$	146,599		$	39,623		$	408		$	—		$	186,630
Interest income	364,094			—			—			—			—			364,094
Other income	13,750			—			33,403			643			2,937			50,733
Total revenue	$	377,844		$	146,599		$	73,026		$	1,051		$	2,937		$	601,457
Earnings (loss) from equity method investments	—			2,522			—			—			49,386			51,908
Income from sales of residential property	—			—			—			—			—			—
Net operating income from discontinued operations(2)	—			73,233			(541		)	—			—			72,692
Gain from discontinued operations	—			270,382			—			—			—			270,382
Revenue and other earnings	$	377,844		$	492,736		$	72,485		$	1,051		$	52,323		$	996,439
Real estate expense	—			(21,223		)	(85,097		)	(15,079		)	—			(121,399		)
Other expense	(10,107		)	—			—			—			(5,948		)	(16,055		)
Direct expenses	$	(10,107	)	$	(21,223	)	$	(85,097	)	$	(15,079	)	$	(5,948	)	$	(137,454	)
Direct segment profit (loss)	$	367,737		$	471,513		$	(12,612	)	$	(14,028	)	$	46,375		$	858,985
Allocated interest expense(3)	(174,074		)	(62,094		)	(39,957		)	(30,445		)	(39,930		)	(346,500		)
Allocated general and administrative(4)	(28,833		)	(10,285		)	(6,618		)	(5,261		)	(39,173		)	(90,170		)
Segment profit (loss)(5)	$	164,830		$	399,134		$	(59,187	)	$	(49,734	)	$	(32,728	)	$	422,315
Other significant non-cash items:
Provision for loan losses	$	331,487		$	—		$	—		$	—		$	—		$	331,487
Impairment of assets(3)	$	—		$	6,063		$	18,988		$	100		$	(2,770	)	$	22,381
Depreciation and amortization(3)	$	—		$	48,973		$	17,050		$	1,037		$	3,726		$	70,786
Capitalized expenditures	$	—		$	13,475		$	18,894		$	10,494		$	—		$	42,863
As of December 31, 2010
Real estate
Real estate, at cost	$	—		$	1,834,172		$	470,989		$	693,477		$	—		$	2,998,638
Less: accumulated depreciation	—			(284,489		)	(70,074		)	(2,037		)	—			(356,600		)
Real estate, net	$	—		$	1,549,683		$	400,915		$	691,440		$	—		$	2,642,038
Real estate available and held for sale	—			—			631,920			114,161			—			746,081
Total real estate	$	—		$	1,549,683		$	1,032,835		$	805,601		$	—		$	3,388,119
Loans receivable, net	4,587,352			—			—			—			—			4,587,352
Other investments	—			16,128			—			—			516,230			532,358
Total portfolio assets	$	4,587,352		$	1,565,811		$	1,032,835		$	805,601		$	516,230		$	8,507,829
Cash and other assets	21,710			78,337			25,122			500			541,016			666,685
Total assets	$	4,609,062		$	1,644,148		$	1,057,957		$	806,101		$	1,057,246		$	9,174,514

Explanatory Notes:

_______________________________________________________________________________

(1)


(2)	Includes revenue and real estate expense reclassified to discontinued operations on the Company's Consolidated Statements of Operations.


(3)	Includes related amounts reclassified to discontinued operations on the Company's Consolidated Statements of Operations.


(4)	General and administrative excludes stock-based compensation expense of $15.3 million, $29.7 million and $19.4 million for the years ended December 31, 2012, 2011 and 2010, respectively.


(5)	The following is a reconciliation of segment profit (loss) to net income (loss) ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Segment profit (loss)	$	9,004		$	30,550		$	422,315
Less: Provision for loan losses	(81,740		)	(46,412		)	(331,487		)
Less: Impairment of assets	(36,354		)	(22,386		)	(22,381		)
Less: Stock-based compensation expense	(15,293		)	(29,702		)	(19,355		)
Less: Depreciation and amortization	(70,786		)	(63,928		)	(70,786		)
Less: Income tax (expense) benefit	(8,445		)	4,719			(7,023		)
Add: Gain (loss) on early extinguishment of debt, net	(37,816		)	101,466			108,923
Net income (loss)	$	(241,430	)	$	(25,693	)	$	80,206

Reconciliation of segment profit (loss) to income (loss) from continuing operations

The following is a reconciliation of segment profit (loss) to net income (loss) ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Segment profit (loss)	$	9,004		$	30,550		$	422,315
Less: Provision for loan losses	(81,740		)	(46,412		)	(331,487		)
Less: Impairment of assets	(36,354		)	(22,386		)	(22,381		)
Less: Stock-based compensation expense	(15,293		)	(29,702		)	(19,355		)
Less: Depreciation and amortization	(70,786		)	(63,928		)	(70,786		)
Less: Income tax (expense) benefit	(8,445		)	4,719			(7,023		)
Add: Gain (loss) on early extinguishment of debt, net	(37,816		)	101,466			108,923
Net income (loss)	$	(241,430	)	$	(25,693	)	$	80,206

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of selected quarterly financial data for the company

The following table sets forth the selected quarterly financial data for the Company ($ in thousands, except per share amounts).



	For the Quarters Ended
	December 31,			September 30,			June 30,			March 31,
2012(1):
Revenue	$	93,713		$	95,159		$	108,647		$	102,953
Net income (loss)	$	(79,948	)	$	(64,306	)	$	(51,129	)	$	(46,048	)
Earnings per common share data:
Net income (loss) attributable to iStar Financial Inc.	$	(87,424	)	$	(71,784	)	$	(58,996	)	$	(54,792	)
Basic earnings per share	$	(1.04	)	$	(0.86	)	$	(0.70	)	$	(0.66	)
Diluted earnings per share	$	(1.04	)	$	(0.86	)	$	(0.70	)	$	(0.66	)
Weighted average number of common shares—basic	83,674			83,629			84,113			83,556
Weighted average number of common shares—diluted	83,674			83,629			84,113			83,556
Earnings per HPU share data:
Net income (loss) attributable to iStar Financial Inc.	$	(2,966	)	$	(2,436	)	$	(1,991	)	$	(1,861	)
Basic earnings per share	$	(197.73	)	$	(162.40	)	$	(132.73	)	$	(124.07	)
Diluted earnings per share	$	(197.73	)	$	(162.40	)	$	(132.73	)	$	(124.07	)
Weighted average number of HPU shares—basic and diluted	15			15			15			15
2011(2):
Revenue	$	104,731		$	105,841		$	136,610		$	117,887
Net income (loss)	$	(28,915	)	$	(54,661	)	$	(26,020	)	$	83,902
Earnings per common share data:
Net income (loss) attributable to iStar Financial Inc.	$	(35,202	)	$	(62,231	)	$	(35,525	)	$	67,420
Basic earnings per share	$	(0.43	)	$	(0.71	)	$	(0.38	)	$	0.73
Diluted earnings per share	$	(0.43	)	$	(0.71	)	$	(0.38	)	$	0.71
Weighted average number of common shares—basic	81,769			87,951			92,621			92,458
Weighted average number of common shares—diluted	81,769			87,951			92,621			94,609
Earnings per HPU share data:
Net income (loss) attributable to iStar Financial Inc.	$	(1,222	)	$	(2,008	)	$	(1,089	)	$	2,070
Basic earnings per share	$	(81.47	)	$	(133.87	)	$	(72.60	)	$	138.00
Diluted earnings per share	$	(81.47	)	$	(133.87	)	$	(72.60	)	$	135.07
Weighted average number of HPU shares—basic and diluted	15			15			15			15

Explanatory Notes:

_______________________________________________________________________________

(1)

(2)

Business and Organization (Details) $ in Billions	12 Months Ended
Business and Organization (Details) $ in Billions	Dec. 31, 2012 USD ($) decades
Business and Organization [Abstract]
Investment across a range of real estate sectors over the past two decades (more than $35 billion at December 31, 2012) \| $	$ 35
Period over which the entity has made the investment across a range of real estate (in decades) \| decades	2

Basis of Presentation and Principles of Consolidation (Details) $ in Millions	Dec. 31, 2012 USD ($) entity investments
Consolidated VIEs
Total revenues and total expenses related to consolidated VIEs
Number of variable interest entities (in investments) \| entity	5
Variable interest entity unfunded commitment	$ 67.0
Unconsolidated VIEs
Total revenues and total expenses related to consolidated VIEs
Number of variable interest entities (in investments) \| investments	27
Variable interest entity unfunded commitment	$ 8.5
Carrying value of the investments	$ 153.1

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Accounting Policies [Abstract]
Allowance for doubtful accounts receivable	$ 5.6	$ 3.7

Summary of Significant Accounting Policies (Details 2) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Accounting Policies [Abstract]

Assets with foreclosure elections carrying value

$ 1,230,000

Income Tax Expense [Abstract]

Deferred tax expense (benefit)(1)

$ (13,729)

$ 4,473

Total income tax expense (benefit)

8,445

(4,719)

7,023

Components of Deferred Tax Assets and Liabilities [Abstract]

Operating loss carryforwards

423,900

Taxable REIT Subsidiaries (TRSs)

Income Taxes [Line Items]

Assets owned by taxable REIT subsidiaries

796,800

Income Tax Expense [Abstract]

Current tax expense

8,445

9,010

2,550

Deferred tax expense (benefit)(1)

^[1]

(13,729)

4,473

Total income tax expense (benefit)

8,445

(4,719)

7,023

Income from TRS entities which are subject to tax

42,200

75,800

Total cash paid for taxes

5,500

8,500

$ 7,300

Components of Deferred Tax Assets and Liabilities [Abstract]

Operating loss carryforwards

10,800

22,800

Deferred tax assets(1)

^[2]

40,800

50,889

Valuation allowance

(40,800)

(50,889)

Net deferred tax assets (liabilities)

Real estate asset basis differences

31,200

30,800

Investment basis differences

$ (1,200)

$ (600)

[1]

During the year ended December 31, 2011, the Company sold its investment in Oak Hill Advisors L.P. (see Note 6) and recognized a deferred tax benefit resulting from the reversal of a deferred tax liability associated with the investment. See the table below for the Company's deferred tax assets and liabilities as of December 31, 2012 and 2011.

[2]

Real estate (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Real Estate Properties [Line Items]
Land and land improvements	$ 1,262,381	$ 1,313,740
Buildings and improvements	1,964,267	2,030,932
Less: accumulated depreciation and amortization	(427,625)	(396,761)
Real estate, net	2,799,023	2,947,911	$ 2,642,038
Real estate available and held for sale	635,865	677,458	746,081
Total real estate	3,434,888	3,625,369	$ 3,388,119
Net Lease Assets
Real Estate Properties [Line Items]
Land and land improvements	344,239	378,458
Buildings and improvements	1,295,081	1,394,691
Less: accumulated depreciation and amortization	(315,699)	(302,851)
Real estate, net	1,323,621	1,470,298
Real estate available and held for sale	0	0
Total real estate	1,323,621	1,470,298
Operating Properties
Real Estate Properties [Line Items]
Land and land improvements	132,028	84,010
Buildings and improvements	669,186	636,241
Less: accumulated depreciation and amortization	(109,634)	(90,383)
Real estate, net	691,580	629,868
Real estate available and held for sale	454,587	551,998
Total real estate	1,146,167	1,181,866
Land
Real Estate Properties [Line Items]
Land and land improvements	786,114	851,272
Buildings and improvements	0	0
Less: accumulated depreciation and amortization	(2,292)	(3,527)
Real estate, net	783,822	847,745
Real estate available and held for sale	181,278	125,460
Total real estate	$ 965,100	$ 973,205

Real estate (Details 2) $ in Thousands	12 Months Ended
Real estate (Details 2) $ in Thousands	Dec. 31, 2012 USD ($) LeaseAssets	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($) LeaseAssets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property sold, aggregate, carrying value			$ 180,600
Repayment of principal amount		$ 97,200
Net proceeds from sales of real estate assets	$ 562,705	215,930	1,823,181
Gain (loss) on sale of leased assets, net operating leases included in income from discontinued operations		22,200
Mezzanine loans provided to purchaser of net lease assets		105,600
Property subject to or available for operating lease sold in addition to previous sales aggregate carrying value			119,700
Gain (loss) on additional sale of leased assets net operating leases			20,100
Net Lease Assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property sold, aggregate, carrying value	9,800	34,100
Net gain on sale of net lease assets	2,400	3,200
Commercial Operating Properties
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property sold, aggregate, carrying value	29,300	17,900
Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property sold, aggregate, carrying value	$ 72,100	$ 9,500	$ 3,100
Portfolio Lease Asset Sale \| Net Lease Assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of net lease assets sold \| LeaseAssets	12		32
Property sold, aggregate, carrying value	$ 105,700		$ 1,050,000
Net gain on sale of net lease assets	24,900		250,300
Repayment of principal amount	$ 50,800
Net proceeds from sales of real estate assets			$ 1,350,000

Real estate (Details 3) - USD ($) $ in Millions	12 Months Ended
Real estate (Details 3) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Real Estate Properties [Line Items]
Properties acquired	$ 269.1	$ 502.5
Option to redeem interest at fair value period	7 years
Residential Operating Properties
Real Estate Properties [Line Items]
Properties acquired	$ 172.4	61.8
Commercial Operating Properties
Real Estate Properties [Line Items]
Properties acquired	63.4	258.8
Land
Real Estate Properties [Line Items]
Properties acquired	33.3	$ 181.9
Strategic Venture, Commercial Operating Properties
Real Estate Properties [Line Items]
Properties acquired in joint venture	27.3
Joint venture, venture contributions	$ 11.6
Joint venture, venture ownership percentage	40.00%
Strategic Venture, Active Land Development Projects
Real Estate Properties [Line Items]
Noncontrolling partner contribution	$ 11.5
Redeemable non-controlling interest	$ 17.9

Real estate (Details 4) - USD ($) $ in Thousands	12 Months Ended
Real estate (Details 4) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Real Estate [Abstract]
Revenues	$ 5,561	$ 16,512	$ 88,536
Total expenses	(2,450)	(14,683)	(62,143)
Impairment of assets	(22,576)	(9,147)	(9,572)
Income (loss) from discontinued operations	$ (19,465)	$ (7,318)	$ 16,821

Real estate (Details 5) - USD ($) $ in Millions	12 Months Ended
Real estate (Details 5) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Real Estate [Abstract]
Impairment of assets held for use	$ 35.4	$ 22.4	$ 25.2
Impairment of assets to be disposed of	$ 22.6	$ 9.1	$ 9.6

The aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 958
-SubTopic 225
-Section 45
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6743430&loc=d3e92212-112881

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Impairment
-URI http://asc.fasb.org/extlink&oid=6515133

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2420-110228

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 26
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 7, 25
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Real estate (Details 6) - USD ($) $ in Thousands	12 Months Ended
Real estate (Details 6) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Real Estate [Abstract]
Amortization expense related to real estate intangibles	$ 10,600	$ 11,000	$ 9,000
Unamortized finite lived intangible assets	59,900	$ 53,600
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2013	11,534
2014	9,221
2015	7,589
2016	6,770
2017	$ 5,721

Real estate (Details 7) $ in Thousands	Dec. 31, 2012 USD ($)
Future minimum lease obligations under non-cancelable operating leases
2013	$ 5,479
2014	4,835
2015	4,469
2016	4,582
2017	4,210
Net Lease Assets
Future minimum lease obligations under non-cancelable operating leases
2013	126,777
2014	129,622
2015	130,871
2016	128,347
2017	121,533
Operating Properties
Future minimum lease obligations under non-cancelable operating leases
2013	54,590
2014	53,516
2015	48,925
2016	46,426
2017	$ 43,754

Real estate (Details 8) - USD ($) $ in Millions	12 Months Ended
Real estate (Details 8) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Real Estate [Abstract]
Customer reimbursements	$ 30.9	$ 29.4	$ 33.2

Real estate (Details 9) $ in Thousands	3 Months Ended	12 Months Ended
Real estate (Details 9) $ in Thousands	Mar. 31, 2012 USD ($)	Dec. 31, 2012 USD ($) property	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)
Real Estate Properties [Line Items]
Real estate available and held for sale		$ 635,865	$ 677,458	$ 746,081
Number of properties transferred from held-for-sale to held-for-use \| property		2
Proceeds from sale of other real estate		$ 319,300	154,000
Income from sales of residential property	$ 27,900	63,472	5,721	$ 0
Carrying amount of assets transferred to held-for-use		49,800
Residential Operating Properties
Real Estate Properties [Line Items]
Real estate available and held for sale		374,100	419,000
Land
Real Estate Properties [Line Items]
Real estate available and held for sale		181,278	125,460
Commercial Operating Properties
Real Estate Properties [Line Items]
Real estate available and held for sale		$ 80,500	$ 133,000

Real estate (Details 10) - USD ($) $ in Thousands	12 Months Ended
Real estate (Details 10) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other income
Real Estate Properties [Line Items]
Reclassified results of operations	$ 21,148	$ 21,663	$ 22,751
Real estate expenses
Real Estate Properties [Line Items]
Reclassified results of operations	$ (22,603)	$ (24,297)	$ (25,612)

Loans Receivable, net (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Total carrying value of loans

^[1]

$ 2,354,484

$ 3,491,596

Reserves for loan losses

$ (524,499)

$ (646,624)

$ (814,625)

(524,499)

(646,624)

$ (814,625)

$ (1,417,949)

1,829,985

2,844,972

Other lending investments—securities

15,790

Total loans receivable, net

1,829,985

2,860,762

4,587,352

Fundings under existing loan commitments

2,364,315

3,504,861

Accrued interest

9,800

13,300

39,638

Amount received from principal repayments

710,697

1,208,403

1,519,653

Carrying value of loans sold

53,900

Charge-offs related to loans sold

3,300

Gross gain on sale realized

6,400

Mortgage loans gross carrying value

1,421,654

2,449,554

$ 4,012,067

$ 6,662,379

Recorded charge-offs on mortgage loans

482,300

Allowance for Loan Losses [Roll Forward]

Reserve for loan losses at beginning of period

646,624

814,625

1,417,949

Reserve for loan losses at end of period

81,740

46,412

331,487

Charge-offs

(203,865)

(214,413)

(934,811)

524,499

$ 646,624

$ 814,625

Mortgage loans gross carrying value

352,800

Recorded charge-offs on mortgage loans

$ 85,300

Senior mortgages

^[1]

1,751,256

2,801,213

1,755,756

Subordinate mortgages

^[1]

152,737

211,491

Corporate/Partnership loans

153,677

^[1]

450,491

$ 478,892

Individually Evaluated for Impairment(1)

$ 454,882

[1]	The Company's recorded investment in loans as of December 31, 2012 and 2011, was $2.36 billion and $3.50 billion, respectively, which consists of total gross carrying value of loans plus accrued interest of $9.8 million and $13.3 million, for the same two periods, respectively.

Loans Receivable, net (Details 2) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Loans

^[1]

$ 1,095,957

$ 1,525,337

Collectively Evaluated for Impairment(2)

^[2]

1,210,077

1,919,876

Loans Acquired with Deteriorated Credit Quality(3)

^[3]

58,281

59,648

Individually Evaluated for Impairment(1)

2,364,315

3,504,861

As of December 31, 2011

^[1]

(472,058)

(554,131)

Collectively Evaluated for Impairment(2)

^[2]

(33,100)

(73,500)

Loans Acquired with Deteriorated Credit Quality(3)

^[3]

(19,341)

(18,993)

Individually Evaluated for Impairment(1)

(524,499)

(646,624)

$ (814,625)

$ (1,417,949)

Total

^[1]

623,899

971,206

Collectively Evaluated for Impairment(2)

^[2]

1,176,977

1,846,376

Loans Acquired with Deteriorated Credit Quality(3)

^[3]

38,940

40,655

Unamortized discounts, premiums, deferred fees and costs, individually evaluated for impairment, net premium (discount)

1,839,816

2,858,237

4,000

100

Unamortized discounts, premiums, deferred fees and costs, collectively evaluated for impairment, net premium (discount)

3,800

200

Unamortized discounts, premiums, deferred fees and costs, loans acquired with deteriorated credit quality, net premium (discount)

100

15,000

Cumulative principal balances of loans acquired with deteriorated credit quality

$ 58,800

$ 74,500

[1]	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $4.0 million and a net premium of $0.1 million as of December 31, 2012 and 2011, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status and therefore, the unamortized amounts associated with these loans are not currently being amortized into income.
[2]	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $3.8 million and $0.2 million as of December 31, 2012 and 2011, respectively.
[3]	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net premium of $0.1 million and a net discount of $15.0 million as of December 31, 2012 and 2011, respectively. These loans had cumulative principal balances of $58.8 million and $74.5 million, as of December 31, 2012 and 2011, respectively.

Loans Receivable, net (Details 3) $ in Thousands	12 Months Ended
Loans Receivable, net (Details 3) $ in Thousands	Dec. 31, 2012 USD ($) rating	Dec. 31, 2011 USD ($) rating
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	$ 2,364,315	$ 3,504,861
Senior mortgages
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	1,755,756
Subordinate mortgages
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	153,677
Corporate/Partnership loans
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	454,882
Real Estate Finance
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	$ 1,385,063	$ 2,176,536
Weighted Average Risk Ratings \| rating	3.01	3.29
Real Estate Finance \| Senior mortgages
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	$ 840,593	$ 1,514,016
Weighted Average Risk Ratings \| rating	2.75	3.19
Real Estate Finance \| Subordinate mortgages
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	$ 99,698	$ 190,342
Weighted Average Risk Ratings \| rating	2.27	3.36
Real Estate Finance \| Corporate/Partnership loans
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating
Performing Loans	$ 444,772	$ 472,178
Weighted Average Risk Ratings \| rating	3.69	3.61

Loans Receivable, net (Details 4) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Recorded investment in loans, aged by payment status and presented by class
Current	$ 1,406,552
Less Than and Equal to 90 Days	62,768
Greater Than 90 Days	894,995
Total Past Due	957,763
Total	2,364,315	$ 3,504,861
Senior mortgages
Recorded investment in loans, aged by payment status and presented by class
Current	862,082
Less Than and Equal to 90 Days	62,768
Greater Than 90 Days	830,906
Total Past Due	893,674
Total	1,755,756
Subordinate mortgages
Recorded investment in loans, aged by payment status and presented by class
Current	99,698
Less Than and Equal to 90 Days	0
Greater Than 90 Days	53,979
Total Past Due	53,979
Total	153,677
Corporate/Partnership loans
Recorded investment in loans, aged by payment status and presented by class
Current	444,772
Less Than and Equal to 90 Days	0
Greater Than 90 Days	10,110
Total Past Due	10,110
Total	$ 454,882

Loans Receivable, net (Details 5) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

^[1]

$ 1,154,237

$ 1,583,631

$ 1,154,237

$ 1,583,631

^[1]

1,153,431

1,577,370

1,153,431

1,577,370

Loans modified through troubled debt restructurings

^[1]

(491,399)

(573,124)

(491,399)

(573,124)

175,000

255,300

175,000

255,300

1,350,704

2,013,239

$ 3,242,058

7,102

39,998

27,717

Senior mortgages

^[1]

1,027,052

1,488,450

1,027,052

1,488,450

^[1]

1,026,346

1,481,807

1,026,346

1,481,807

^[1]

(442,760)

(540,670)

(442,760)

(540,670)

1,917,565

1,226,138

3,070,885

38,986

6,630

25,655

Subordinate mortgages

^[1]

53,979

22,480

53,979

22,480

^[1]

53,679

22,558

53,679

22,558

^[1]

(39,579)

(22,480)

(39,579)

(22,480)

19,477

52,208

78,529

Corporate/Partnership loans

194

^[1]

73,206

72,701

73,206

72,701

^[1]

73,406

73,005

73,406

73,005

^[1]

(9,060)

(9,974)

(9,060)

(9,974)

76,197

72,358

92,644

With no related allowance recorded

472

1,012

1,868

^[1]

118,187

229,598

118,187

229,598

^[1]

118,010

228,772

118,010

228,772

^[1]

172,203

319,189

688,080

2,925

32,479

22,427

^[1]

108,077

219,488

108,077

219,488

^[1]

107,850

218,612

107,850

218,612

^[1]

162,093

309,079

659,150

2,765

31,799

20,472

1,404

^[1]

10,110

^[1]

10,160

^[1]

10,110

27,526

With an allowance recorded

160

680

1,868

^[1]

1,036,050

1,354,033

1,036,050

1,354,033

^[1]

1,035,421

1,348,598

1,035,421

1,348,598

^[1]

(491,399)

(573,124)

(491,399)

(573,124)

1,178,501

1,694,050

2,553,978

With an allowance recorded | Senior mortgages

4,177

7,519

5,290

^[1]

918,975

1,268,962

918,975

1,268,962

^[1]

918,496

1,263,195

918,496

1,263,195

^[1]

(442,760)

(540,670)

(442,760)

(540,670)

1,064,045

1,608,486

2,411,735

With an allowance recorded | Subordinate mortgages

3,865

7,187

5,183

^[1]

53,979

22,480

53,979

22,480

^[1]

53,679

22,558

53,679

22,558

^[1]

(39,579)

(22,480)

(39,579)

(22,480)

52,208

19,477

77,125

With an allowance recorded | Corporate/Partnership loans

107

^[1]

63,096

62,591

63,096

62,591

^[1]

63,246

62,845

63,246

62,845

^[1]

(9,060)

(9,974)

(9,060)

(9,974)

$ 62,248

$ 66,087

65,118

$ 312

332

$ 0

Impaired financing receivable, interest income, cash basis method

$ 26,300

[1]

All of the Company's non-accrual loans are considered impaired and included in the table above. In addition, as of December 31, 2012 and 2011, certain loans modified through troubled debt restructurings with a recorded investment of $175.0 million and $255.3 million, respectively, are also included as impaired loans in accordance with GAAP although they are performing and on accrual status.

Loans Receivable, net (Details 6) $ in Thousands	3 Months Ended		12 Months Ended
Loans Receivable, net (Details 6) $ in Thousands	Dec. 31, 2012 USD ($) loans	Dec. 31, 2011 USD ($) loans	Dec. 31, 2012 USD ($) loans	Dec. 31, 2011 USD ($)
Troubled debt restructurings
Unfunded commitments	$ 21,600		$ 21,600
Senior mortgages
Troubled debt restructurings
Number of Loans \| loans	8	7
Pre-Modification Outstanding Recorded Investment	$ 319,667	$ 191,158
Post-Modification Outstanding Recorded Investment	$ 272,753	$ 190,893
Senior mortgages troubled debt restructurings
Troubled debt restructurings
Number of Loans \| loans	1	1
Outstanding Recorded Investment	$ 18,511	$ 28,005
Performing senior mortgages
Troubled debt restructurings
Recorded investment of loans whose maturity was extended			64,100	$ 59,500
Pre-modification recorded investment		$ 129,200		$ 129,200
Basis spread on variable rate of loans before reduction		6.20%		6.20%
Basis spread on variable rate of loans after reduction		4.10%		4.10%
Non-performing senior mortgages
Troubled debt restructurings
Recorded investment of loans whose maturity was extended			$ 255,600
Modified loans \| loans	1		1
Pre-modification recorded investment		$ 62,000		$ 62,000
Financing receivable modifications recorded investment of contracts whose maturity extended and reduced principal				$ 46,100
Financing receivable extended maturity period				6 months
Non-performing first mortgage with recorded charge offs and rate reductions
Troubled debt restructurings
Financing receivable modification charge offs			$ 45,500
Financing receivable modifications recorded investment of contracts whose maturity extended and reduced principal			$ 181,500
Non-performing first mortgage with outstanding principal balance reduced
Troubled debt restructurings
Basis spread on variable rate of loans before reduction	7.00%		7.00%
Basis spread on variable rate of loans after reduction	3.50%		3.50%
Financing receivable modifications description of variable rate basis of loans			LIBOR
Minimum \| Non-performing first mortgage with recorded charge offs and rate reductions
Troubled debt restructurings
Trouble debt restructuring time period			1 month
Maximum \| Non-performing first mortgage with recorded charge offs and rate reductions
Troubled debt restructurings
Trouble debt restructuring time period			7 months

Other Investments (Details) - USD ($)
$ in Thousands

1 Months Ended

2 Months Ended

3 Months Ended

12 Months Ended

Oct. 31, 2011

Jul. 31, 2010

Sep. 30, 2010

Mar. 31, 2012

Mar. 31, 2011

Dec. 31, 2012

Sep. 30, 2012

Dec. 31, 2011

Sep. 30, 2011

Dec. 31, 2010

Jul. 28, 2010

$ 387,718

$ 445,835

Total other investments, carrying value

103,009

95,091

$ 51,908

Other, carrying value

11,125

12,000

398,843

457,835

532,358

Cash Flows

Distributions from operations of equity method investments

105,586

85,766

32,651

LNR Property LLC ("LNR")

205,773

$ 205,773

^[1]

159,764

$ 159,764

^[1]

Percentage of ownership acquired by the Company and a group of investors

$ 1,797

^[1]

60,669

^[1]

53,861

^[1]

1,797

100.00%

Contribution towards principal amount of Holdco Notes

$ 100,000

Amount of cash contributed in exchange for equity interest

100,000

Equity interest in investee

$ 120,000

Principal value loan, discounted payoff

$ 25,000

Proceeds from discounted payoff of principal amount of loan

$ 24,500

Income tax expense (benefit)(3)

Total revenue

^[1],[2]

40,022

332,902

327,032

^[1],[3]

685

6,731

(76,558)

Net income (loss) attributable to parent entities

^[1]

$ 7,495

$ 253,039

$ 225,190

24.00%

^[1]

24.00%

^[1]

24.00%

^[1]

24.00%

Balance Sheets

LNR and certain commercial mortgage backed securities and collateralized debt obligation trusts that are considered VIEs

^[1],[2]

$ 1,384,337

$ 1,288,923

Total debt(2)

^[1],[2]

398,912

469,631

Total liabilities

^[1],[2]

517,088

576,835

Noncontrolling interests

^[1]

1,560

39,940

Total equity

^[1]

865,689

672,147

Cash Flows

Total VIE trust assets

97,520,000

126,660,000

Total VIE trust liabilities

$ 97,210,000

$ 126,640,000

Servicing fee revenue

$ 16,800

$ 95,400

$ 119,000

Madison Funds

56,547

103,305

Madison International Real Estate Fund IILP

$ 13,700

$ 10,246

3,641

9,717

Madison International Real Estate Fund IIILP

29.52%

32.92%

Madison GP1 Investors LP

29.52%

Oak Hill Funds

$ 29,840

56,817

$ 5,844

1,918

11,613

Oak Hill Funds Group 2

5.92%

Oak Hill Advisors

Included within earnings from equity method investments

$ 38,400

22,400

Cash Flows

Proceeds from sale of ownership interest

$ 183,700

Net gain from sale of ownership interest

$ 30,300

Real estate equity investments

47,619

69,100

Other equity method investments

21,636

(5,273)

2,522

^[4]

47,939

56,849

Equity method investments excluding LNR

^[4]

4,614

40,944

26,259

Net income (loss) attributable to parent entities

Total revenue

401,870

198,340

590,265

304,960

97,066

$ 342,661

Balance Sheets

Minimum | Real estate equity investments

2,830,087

3,079,736

Total liabilities

163,164

197,246

Noncontrolling interests

29,553

4,139

Total equity

$ 2,637,370

2,878,351

Maximum | Real estate equity investments

31.00%

Net Lease Assets | Real estate equity investments

70.00%

Operating Properties | Real estate equity investments

$ 16,400

16,300

25,700

38,000

$ 26,000

Land | Real estate equity investments

33.00%

Deferred expenses and other assets, net

$ 5,500

$ 14,800

[1]	The Company records its investment in LNR on a one quarter lag, therefore, amounts in the Company's financial statements for the year ended December 31, 2012 and 2011 are based on balances and results from LNR for the years ended September 30, 2012 and 2011. LNR was acquired in July of 2010, therefore results for the year ended December 31, 2010 are based on balances from LNR for the period July 29, 2010 to September 30, 2010.
[2]	LNR consolidates certain commercial mortgage-backed securities and collateralized debt obligation trusts that are considered VIEs (and for which it is the primary beneficiary), that have been excluded from the amounts presented above. As of September 30, 2012 and 2011, the assets of these trusts, which aggregated approximately $97.52 billion and $126.66 billion, respectively, were the sole source of repayment of the related liabilities, which aggregated approximately $97.21 billion and $126.64 billion, respectively, and are non-recourse to LNR and its equity holders, including the Company. In addition, total revenue presented above includes $95.4 million, $119.0 million and $16.8 million for the years ended September 30, 2012, 2011 and for the period July 29, 2010 to September 30, 2010, respectively, of servicing fee revenue that is eliminated upon consolidation of the VIE's at the LNR level. This income is then added back through consolidation at the LNR level as an adjustment to income allocable to noncontrolling entities and has no net impact on net income attributable to LNR.
[3]	During the year ended December 31, 2011, LNR recorded an income tax benefit from the settlement of certain tax liabilities.
[4]	years ended December 31, 2011 and 2010, amounts include $38.4 million and $22.4 million, respectively, of earnings related to Oak Hill Advisors, L.P. and related entities that were sold in October 2011.Equi

Other Assets and Other Liabilities (Details) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Prepaid expenses

^[1]

$ 26,629

$ 21,443

Leasing costs, net(2)

^[2]

20,205

12,423

Other receivables

11,517

23,943

Corporate furniture, fixtures and equipment, net(3)

^[3]

7,537

9,034

Prepaid expenses

5,218

5,441

Other assets

22,884

18,555

Deferred expenses and other assets, net

93,990

90,839

Accumulated amortization of deferred financing fees

4,100

13,300

Accumulated amortization on leasing costs

6,600

5,500

Accumulated depreciation on corporate furniture, fixtures and equipment

6,200

8,100

Accounts payable, accrued expenses and other liabilities

Accrued expenses

50,467

36,332

Accrued interest payable

29,521

30,122

Security deposits and other investment deposits

13,717

12,192

Unearned operating lease income

11,294

10,073

Property taxes payable

8,206

6,495

Derivative liabilities

3,435

2,373

Other liabilities

15,820

7,770

Accounts payable, accrued expenses and other liabilities

$ 132,460

$ 105,357

[1]	Accumulated amortization on deferred financing fees was $4.1 million and $13.3 million as of December 31, 2012 and 2011, respectively.
[2]	Accumulated amortization on leasing costs was $6.6 million and $5.5 million as of December 31, 2012 and 2011, respectively.
[3]	Accumulated depreciation on corporate furniture, fixtures and equipment was $6.2 million and $8.1 million as of December 31, 2012 and 2011, respectively.

Debt Obligations, net (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2012

USD ($)

Feb. 11, 2013

Dec. 31, 2011

USD ($)

$ 4,745,807

^[1]

$ 5,874,183

Debt discounts, net

(54,313)

^[1]

(36,643)

Secured 2011 Tranche A-1 Facility Due 2013

4,691,494

^[1]

5,837,540

$ 0

961,580

^[2]

3.75%

Secured 2011 Tranche A-2 Facility Due 2014

^[2]

LIBOR

$ 0

1,450,000

^[2]

5.75%

Secured 2012 Tranche A-1 Facility Due 2016

^[2]

LIBOR

$ 169,164

^[3]

4.00%

^[3]

LIBOR

Secured 2012 Tranche A-2 Facility Due 2017

5.25%

$ 470,000

^[3]

5.75%

^[3]

LIBOR

New Credit Facility due October 2017

7.00%

$ 1,754,466

^[4]

4.50%

^[4]

LIBOR

Secured Term Loans Collateralized by net lease assets due through 2026

5.75%

Stated interest rate, minimum (as a percent)

$ 264,432

293,192

4.851%

Stated interest rate, maximum (as a percent)

7.68%

Secured Credit Facility

Unsecured Line of credit due June 2012

$ 2,658,062

2,704,772

$ 0

243,650

0.85%

Unsecured Notes 5.15% senior notes

LIBOR

$ 0

263,466

5.15%

Unsecured Notes 5.50% senior notes

5.15%

$ 0

92,845

Unsecured Notes LIBOR plus 0.50% senior convertible notes

5.50%

$ 0

784,750

0.50%

LIBOR

Unsecured Notes 8.625% senior notes

5.50%

$ 96,801

501,701

Unsecured Notes 5.95% senior notes

8.625%

$ 448,453

448,453

Unsecured Notes 6.5% senior notes

5.95%

$ 0

67,055

Unsecured Notes 5.70% senior notes

6.50%

$ 200,601

200,601

Unsecured Notes 6.05% senior notes

5.70%

$ 105,765

105,765

Unsecured Notes 5.875% senior notes

6.05%

$ 261,403

261,403

Senior Convertible 3.0% notes

5.875%

^[5]

$ 200,000

Convertible debt conversion ratio

^[5]

3.00%

Interest expense, debt

^[5]

$ 800

Unsecured Notes 5.85% senior notes

$ 99,722

99,722

Unsecured Notes 9.0% senior notes

5.85%

$ 275,000

Unsecured Notes 7.125% senior notes

9.00%

$ 300,000

7.125%

Unsecured Notes

Other debt obligations due in October, 2035

$ 1,987,745

2,825,761

$ 100,000

1.50%

Minimum | Secured 2011 Tranche A-1 Facility Due 2013

LIBOR

Minimum | Secured 2011 Tranche A-2 Facility Due 2014

1.25%

Minimum | Secured 2012 Tranche A-1 Facility Due 2016

1.25%

Minimum | Secured 2012 Tranche A-2 Facility Due 2017

1.25%

Minimum | New Credit Facility due October 2017

1.25%

Subsequent Event | New Credit Facility due October 2017

1.25%

Subsequent Event | Minimum | New Credit Facility due October 2017

3.50%

Aggregate amounts of principal maturities of long-term debt

1.00%

[1]	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.
[2]	These loans had a LIBOR floor of 1.25%.
[3]	These loans each have a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floors, the 2012 Tranche A-1 Facility and 2012 Tranche A-2 Facility loans incurred interest at a rate of 5.25% and 7.00%, respectively.
[4]	This loan has a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floor, the October 2012 Secured Credit Facility incurred interest at a rate of 5.75%. Subsequent to year end, in connection with the repricing of the October 2012 Secured Credit Facility, the loan will bear interest at a rate of LIBOR + 3.50%, with a LIBOR floor of 1.00%. See Note 17—Subsequent Events.
[5]	The Company's convertible senior fixed rate notes due November 2016 ("Convertible Notes") are convertible at the option of the holders, into 85.0 shares per $1,000 principal amount of Convertible Notes, at any time prior to the close of business on November 14, 2016. As of December 31, 2012, the outstanding principal balance of the Company's senior convertible notes was $200.0 million. For the year ended December 31, 2012, the Company recognized interest expense on the convertible notes of $0.8 million.

Debt Obligations, net (Details 2) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

2013

^[1]

$ 545,254

2014

^[1]

200,601

2015

^[1]

151,929

2016

^[1]

596,219

2017

^[1]

2,587,372

Thereafter

^[1]

664,432

Total principal maturities

4,745,807

^[1]

$ 5,874,183

Unamortized debt discounts, net

(54,313)

^[1]

(36,643)

Aggregate amounts of principal maturities of long-term debt

4,691,494

^[1]

$ 5,837,540

Unsecured Debt

2013

^[1]

545,254

2014

^[1]

200,601

2015

^[1]

105,765

2016

^[1]

461,403

2017

^[1]

374,722

Thereafter

^[1]

400,000

Total principal maturities

^[1]

2,087,745

Unamortized debt discounts, net

^[1]

(19,147)

Aggregate amounts of principal maturities of long-term debt

^[1]

2,068,598

Secured Debt

2013

^[1]

2014

^[1]

2015

^[1]

46,164

2016

^[1]

134,816

2017

^[1]

2,212,650

Thereafter

^[1]

264,432

Total principal maturities

^[1]

2,658,062

Unamortized debt discounts, net

^[1]

(35,166)

Real estate, net (Encumbered Assets)

^[1]

$ 2,622,896

[1]	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.

Debt Obligations, net (Details 3) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Debt Disclosure [Abstract]

$ 1,794,198

$ 1,533,579

Assets Pledged as Collateral (Encumbered Assets)

141,673

177,092

Loans receivable, net (Encumbered Assets)

^[1]

1,197,373

1,780,591

Other investments (Encumbered Assets)

43,545

37,957

Cash and other assets (Encumbered Assets)

Total (Encumbered Assets)

3,176,789

3,529,219

Real estate, net (Unencumbered Assets)

1,004,825

1,397,319

Assets Pledged as Collateral (Unencumbered Assets)

494,192

500,366

Loans receivable, net (Unencumbered Assets)

^[1]

665,712

1,153,671

Other investments (Unencumbered Assets)

355,298

419,878

Cash and other assets (Unencumbered Assets)

487,073

590,884

Total (Unencumbered Assets)

3,007,100

4,062,118

Reserve for loan losses

^[2]

$ 33,100

$ 73,500

[1]	As of December 31, 2012 and 2011, the amounts presented exclude general reserves for loan losses of $33.1 million and $73.5 million, respectively.
[2]	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $3.8 million and $0.2 million as of December 31, 2012 and 2011, respectively.

Debt Obligations, net (Details 4)
$ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Oct. 31, 2012

USD ($)

Sep. 30, 2012

USD ($)

loans

Jul. 31, 2012

USD ($)

May 31, 2012

Mar. 31, 2012

USD ($)

tranches

Mar. 31, 2011

USD ($)

tranches

Dec. 31, 2012

USD ($)

Mar. 31, 2011

USD ($)

Dec. 31, 2012

USD ($)

LeaseAssets

Dec. 31, 2011

USD ($)

Dec. 31, 2010

USD ($)

Oct. 15, 2012

USD ($)

Jan. 02, 2011

$ 97,200

Number of loans refinanced | loans

$ (37,816)

101,466

$ 108,923

Write off of deferred debt issuance costs

22,100

New Credit Facility due October 2017

$ 4,745,807

^[1]

$ 4,745,807

^[1]

5,874,183

Line of credit facility, maximum borrowing capacity

$ 1,820,000

^[2]

LIBOR

Debt instrument, issued percentage of par

^[2]

4.50%

99.00%

Debt instrument, covenant, minimum collateral coverage, one

125.00%

Debt instrument, collateral, percent of proceeds from principal repayments and sales applied to repayment, one

100.00%

Debt instrument, collateral, percent of proceeds from principal repayments and sales applied to repayment, two

50.00%

Debt instrument, covenant, minimum collateral coverage, three

150.00%

Line of credit facility, third party fees

$ 14,800

Line of credit facility, third party fees, modified debt

8,200

Line of credit facility, third party fees, extinguished debt

6,600

Line of credit facility, maximum amount of real estate asset distributions to stockholders

200,000

Line of credit facility, amortization repayments

$ 65,500

1,200

$ 1,754,466

2012 Secured Credit Facilities

5.75%

Number of tranches | tranches

Secured 2012 Tranche A-1 Facility Due 2016

$ 880,000

^[3]

LIBOR

Line of credit facility, amortization repayments

^[3]

4.00%

$ (240,800)

410,000

98.00%

$ 41,000

(8,100)

$ 169,164

Secured 2012 Tranche A-2 Facility Due 2017

5.25%

^[3]

LIBOR

^[3]

5.75%

470,000

98.50%

$ 470,000

Unsecured Notes LIBOR plus 0.50% senior convertible notes

7.00%

LIBOR

0.50%

606,700

$ 460,700

$ 0

784,750

Unsecured Line of credit due June 2012

5.50%

LIBOR

0.85%

$ 244,000

$ 243,700

Secured 2011 Tranche A-2 Facility Due 2014

$ 0

243,650

^[4]

LIBOR

^[4]

5.75%

$ 1,450,000

Commencement period of amortization maximum after repayment of first term loan facility

98.50%

6 months

Debt instrument, amortization payment after initial payment

$ 150,000

Periods following the initial payment of amortization that additional amortization payments are due

6 months

2011 Secured Credit Facilities

$ 0

1,450,000

Number of tranches | tranches

Secured Term Loan LIBOR Plus 2.00% due 2019

$ 2,950,000

LIBOR

Debt instrument, face amount

2.00%

$ 28,000

Secured Term Loans 5.3% and 8.2% due January 2013

$ 500

Secured Term Loan 5.3% due January 2013

$ 53,300

Secured Term Loan 8.2% Due January 2013

5.30%

Secured Term Loan 4.85% due October 2022

8.20%

4.851%

Secured 2011 Tranche A-1 Facility Due 2013

$ 54,500

^[4]

LIBOR

^[4]

3.75%

$ 1,500,000

99.00%

200,000

Secured Term Loan LIBOR plus 4.50% due 2014

$ 0

961,580

LIBOR

4.50%

Number of net lease assets sold | LeaseAssets

$ 50,800

Secured Term Loan 5.05% due July 2021

$ 120,000

Refinanced Secured Term Loan Originally Due March 2011

5.05%

LIBOR

4.50%

$ 4,600

Non Recourse Term Loan Collateralized By Portfolio of Net Lease Assets

47,700

Other Secured Term Loans With Various Maturities

947,900

Unsecured Credit Facilities

153,300

LIBOR

0.85%

Minimum ratio of unencumbered assets to unsecured indebtedness

$ (200)

1.2

Unsecured Line of Credit Due June 2011

Secured Notes 10.0% senior notes due 2014

329,900

$ 109,000

Amount of debt extinguished

10.00%

$ 312,300

Secured Notes 8.0%Senior Notes Due 2011 and Secured Notes 10.0% Senior Notes due 2014

Redeemed or repurchased notes

71,300

322,500

Unsecured Notes 7.125% senior notes

7.125%

Senior Convertible 3.0% notes

$ 300,000

^[5]

3.00%

Unsecured Notes 9.0% senior notes

^[5]

$ 200,000

9.00%

Percentage of issue price to principal amount

$ 275,000

98.012%

Senior unsecured notes with various maturities ranging from March 2012 to October 2014

Redeemed or repurchased notes

$ 800

3,200

420,400

Unsecured Notes 5.65% Senior Notes

$ 170,400

Unsecured Notes 5.125% Senior Notes

5.65%

$ 96,900

Unsecured Notes 5.80% Senior Notes

5.125%

$ 107,800

Unsecured Notes 5.50% senior notes

5.80%

$ 90,300

5.50%

Unsecured Notes 5.15% senior notes

$ 0

$ 92,845

$ 169,700

5.15%

$ 0

263,466

Senior Unsecured Notes Due, March 2010 to March 2014

5.15%

Amount of debt extinguished

592,800

$ 59,700

Unsecured Notes 6.5% Senior Notes

^[5]

6.50%

Unsecured Notes 8.625% Senior Notes

$ 67,100

^[5]

8.625%

$ 404,900

Unsecured Notes

1,987,745

2,825,761

Prepayment penalty

14,900

Secured Credit Facility

Multiple of the minimum collateral coverage on outstanding borrowings

$ 2,658,062

2,704,772

1.25

Percentage of REIT taxable income permitted for distribution under debt covenants

100.00%

Minimum | New Credit Facility due October 2017

Debt instrument, covenant, minimum collateral coverage, two

1.25%

137.50%

Minimum | Secured 2012 Tranche A-1 Facility Due 2016

Minimum | Secured 2012 Tranche A-2 Facility Due 2017

1.25%

Minimum | Secured 2011 Tranche A-2 Facility Due 2014

1.25%

Minimum | Secured 2011 Tranche A-1 Facility Due 2013

1.25%

Maximum | New Credit Facility due October 2017

1.25%

Debt instrument, covenant, minimum collateral coverage, two

150.00%

Maturing on or before June 2012 | Secured 2011 Tranche A-1 Facility Due 2013

Maturing on or before December 31, 2012 | Secured 2011 Tranche A-1 Facility Due 2013

450,000

Maturing on or before June 2013 | Secured 2011 Tranche A-1 Facility Due 2013

750,000

Prior to Refinancing of Debt | 2011 Secured Credit Facilities

1,500,000

Line of credit facility, amortization repayments

$ (1,070,000)

Refinancing of Debt | 2011 Secured Credit Facilities

(4,500)

$ (12,000)

Debt instrument, unamortized discounts and financing fees

$ (12,100)

21,200

$ 21,200

Debt instrument, deferred expense due to modification

$ 9,000

[1]	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.
[2]	This loan has a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floor, the October 2012 Secured Credit Facility incurred interest at a rate of 5.75%. Subsequent to year end, in connection with the repricing of the October 2012 Secured Credit Facility, the loan will bear interest at a rate of LIBOR + 3.50%, with a LIBOR floor of 1.00%. See Note 17—Subsequent Events.
[3]	These loans each have a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floors, the 2012 Tranche A-1 Facility and 2012 Tranche A-2 Facility loans incurred interest at a rate of 5.25% and 7.00%, respectively.
[4]	These loans had a LIBOR floor of 1.25%.
[5]	The Company's convertible senior fixed rate notes due November 2016 ("Convertible Notes") are convertible at the option of the holders, into 85.0 shares per $1,000 principal amount of Convertible Notes, at any time prior to the close of business on November 14, 2016. As of December 31, 2012, the outstanding principal balance of the Company's senior convertible notes was $200.0 million. For the year ended December 31, 2012, the Company recognized interest expense on the convertible notes of $0.8 million.

Commitments and Contingencies (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Jan. 24, 2013

Dec. 31, 2011

Proceeds from debt transactions

$ 3,510,000

Amount of debt due within the next 12 months

^[1]

545,254

Total unencumbered assets

$ 3,007,100

$ 4,062,118

Percentage of capital committed to strategic investments that may be drawn down

100.00%

$ 81,069

102

47,322

128,493

Loans

44,751

102

44,853

Real Estate

36,318

36,318

Strategic Investments

47,322

47,322

Unsecured Debt

Amount of debt due within the next 12 months

^[1]

$ 545,254

Subsequent Event

Real estate, agreement to sell property

$ 220,000

[1]	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.

Commitments and Contingencies (Details 2) $ in Thousands	12 Months Ended
Commitments and Contingencies (Details 2) $ in Thousands	Dec. 31, 2012 USD ($) investments	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)
Operating lease expense
Total operating lease expense	$ 6,500	$ 7,200	$ 7,300
Future minimum lease obligations under non-cancelable operating leases
2013	5,479
2014	4,835
2015	4,469
2016	4,582
2017	4,210
Thereafter	9,265
Letters of credit issued
Letters of credit issued	$ 12,600
Number of investments related to which letters of credit have been issued \| investments	5
Legal settlement payment	$ 2,000

Risk Management and Derivatives (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2012

USD ($)

risk_component

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Number of components of economic risk | risk_component

$ 5,696,816

^[1],[2],[3]

100.00%

^[1],[2],[3]

$ 1,267,632

^[2]

22.30%

^[2]

Office

$ 684,339

^[2]

12.00%

^[2]

Condominium

$ 622,763

^[2]

11.00%

^[2]

Industrial / R&D

$ 622,205

^[2]

10.90%

^[2]

Retail

$ 528,180

^[2]

9.30%

^[2]

Entertainment / Leisure

$ 513,286

^[2]

9.00%

^[2]

Hotel

$ 474,414

^[2]

Mixed Use / Mixed Collateral

8.30%

^[2]

$ 417,326

^[2]

7.30%

^[2]

Other Property Types

$ 215,446

^[2]

3.70%

^[2]

Strategic Investments

$ 351,225

^[2]

6.20%

^[2]

Net Lease Assets

$ 1,340,001

^[2]

Operating Properties

Operating Properties | Land

1,171,912

^[1],[2],[3]

Operating Properties | Office

^[2]

Operating Properties | Condominium

258,977

^[2]

Operating Properties | Industrial / R&D

385,229

^[2]

Operating Properties | Retail

55,439

^[2]

Operating Properties | Entertainment / Leisure

184,000

^[2]

Operating Properties | Hotel

^[2]

Operating Properties | Mixed Use / Mixed Collateral

84,375

^[2]

Operating Properties | Other Property Types

179,337

^[2]

Operating Properties | Strategic Investments

24,541

^[2]

^[2]

970,593

^[1],[2],[3]

Land | Land

970,593

^[2]

Land | Office

^[2]

Land | Condominium

^[2]

Land | Industrial / R&D

^[2]

Land | Retail

Land | Entertainment / Leisure

^[2]

^[2]

Land | Hotel

Land | Mixed Use / Mixed Collateral

^[2]

Land | Other Property Types

^[2]

Land | Strategic Investments

^[2]

^[2]

Real Estate Finance

Real Estate Finance | Land

1,863,085

^[1],[2],[3]

Real Estate Finance | Office

297,039

^[2]

Real Estate Finance | Condominium

124,058

^[2]

Real Estate Finance | Industrial / R&D

237,534

^[2]

Real Estate Finance | Retail

94,617

^[2]

Real Estate Finance | Entertainment / Leisure

293,651

^[2]

Real Estate Finance | Hotel

98,423

^[2]

Real Estate Finance | Mixed Use / Mixed Collateral

298,293

^[2]

Real Estate Finance | Other Property Types

237,989

^[2]

Real Estate Finance | Strategic Investments

181,481

^[2]

^[2]

Non-performing Loans | Land

1,340,001

^[1],[3]

Non-performing Loans | Office

^[2]

Non-performing Loans | Condominium

301,304

^[2]

Non-performing Loans | Industrial / R&D

^[2]

Non-performing Loans | Retail

472,149

^[2]

Non-performing Loans | Entertainment / Leisure

50,529

^[2]

Non-performing Loans | Hotel

414,849

^[2]

Non-performing Loans | Mixed Use / Mixed Collateral

91,746

^[2]

Non-performing Loans | Other Property Types

^[2]

Non-performing Loans | Strategic Investments

9,424

^[2]

$ 0

^[2]

[1]	$228.7 million of European assets, including $117.6 million in Germany and $111.1 million
[2]	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.
[3]	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.

Risk Management and Derivatives (Details 2)
$ in Thousands

12 Months Ended

Dec. 31, 2012

USD ($)

borrower

$ 5,696,816

^[1],[2],[3]

100.00%

^[1],[2],[3]

$ 1,267,632

^[2]

22.30%

^[2]

Office

$ 684,339

^[2]

12.00%

^[2]

Condominium

$ 622,763

^[2]

11.00%

^[2]

Industrial / R&D

$ 622,205

^[2]

Customer Concentration Risk

10.90%

^[2]

Number of large borrowers or tenants | borrower

Aggregate annualized interest and operating lease revenue

$ 88,200

Percent of aggregate annualized interest and operating lease revenue

7.20%

California

15.50%

West

$ 1,286,319

^[3]

22.60%

^[3]

Northeast

$ 1,095,301

^[3]

19.20%

^[3]

Southeast

$ 850,539

^[3]

14.90%

^[3]

Southwest

$ 709,524

^[3]

12.50%

^[3]

Mid-Atlantic

$ 545,740

^[3]

9.60%

^[3]

International

$ 308,210

^[1],[3]

5.40%

^[1],[3]

Northwest

$ 299,332

^[3]

5.20%

^[3]

Various

$ 181,277

^[3]

3.20%

^[3]

International(2)

$ 69,349

^[3]

1.20%

^[3]

Strategic Investments

$ 351,225

^[3]

Strategic Investments | International

6.20%

^[3]

Strategic Investments | Europe

$ 36,600

^[3]

Strategic Investments | Germany

228,700

Strategic Investments | United Kingdom

117,600

111,100

Real Estate Finance

Real Estate Finance | Land

1,863,085

^[1],[2],[3]

Real Estate Finance | Office

297,039

^[2]

Real Estate Finance | Condominium

124,058

^[2]

Real Estate Finance | Industrial / R&D

237,534

^[2]

Real Estate Finance | West

94,617

^[2]

Real Estate Finance | Northeast

340,457

^[3]

Real Estate Finance | Southeast

421,660

^[3]

Real Estate Finance | Southwest

308,559

^[3]

Real Estate Finance | Mid-Atlantic

197,478

^[3]

Real Estate Finance | International

43,866

^[3]

Real Estate Finance | Northwest

308,210

^[1],[3]

Real Estate Finance | Various

159,460

^[3]

Real Estate Finance | International(2)

83,236

^[3]

Real Estate Finance | Strategic Investments

159

^[3]

^[3]

Non-performing Loans | Land

1,340,001

^[1],[3]

Non-performing Loans | Office

^[2]

Non-performing Loans | Condominium

301,304

^[2]

Non-performing Loans | Industrial / R&D

^[2]

Non-performing Loans | West

472,149

^[2]

Non-performing Loans | Northeast

340,896

^[3]

Non-performing Loans | Southeast

317,003

^[3]

Non-performing Loans | Southwest

201,535

^[3]

Non-performing Loans | Mid-Atlantic

182,329

^[3]

Non-performing Loans | International

104,205

^[3]

Non-performing Loans | Northwest

^[1],[3]

Non-performing Loans | Various

68,434

^[3]

Non-performing Loans | International(2)

56,409

^[3]

Non-performing Loans | Strategic Investments

69,190

^[3]

^[3]

Net Lease Assets

1,340,001

^[2]

Operating Properties

Operating Properties | Land

1,171,912

^[1],[2],[3]

Operating Properties | Office

^[2]

Operating Properties | Condominium

258,977

^[2]

Operating Properties | Industrial / R&D

385,229

^[2]

Operating Properties | West

55,439

^[2]

Operating Properties | Northeast

237,496

^[3]

Operating Properties | Southeast

175,894

^[3]

Operating Properties | Southwest

251,410

^[3]

Operating Properties | Mid-Atlantic

209,424

^[3]

Operating Properties | International

217,379

^[3]

Operating Properties | Northwest

^[1],[3]

Operating Properties | Various

61,938

^[3]

Operating Properties | International(2)

18,371

^[3]

Operating Properties | Strategic Investments

^[3]

^[3]

970,593

^[1],[2],[3]

Land | Land

970,593

^[2]

Land | Office

^[2]

Land | Condominium

^[2]

Land | Industrial / R&D

^[2]

Land | West

367,470

^[3]

Land | Northeast

180,744

^[3]

Land | Southeast

89,035

^[3]

Land | Southwest

120,293

^[3]

Land | Mid-Atlantic

180,290

^[3]

Land | International

^[1],[3]

Land | Northwest

9,500

^[3]

Land | Various

23,261

^[3]

Land | International(2)

Land | Strategic Investments

^[3]

$ 0

^[3]

[1]	$228.7 million of European assets, including $117.6 million in Germany and $111.1 million
[2]	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.
[3]	Based on the carrying value of the Company's total investment portfolio gross of general loan loss reserves.

Risk Management and Derivatives (Details 3) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Derivative financial instruments on consolidated balance sheets
Derivative Assets, Fair Value	$ 0	$ 0
Derivative Liabilities, Fair Value	3,435	2,373
Foreign exchange contracts
Derivative financial instruments on consolidated balance sheets
Derivative Assets, Fair Value	0	0
Derivative Liabilities, Fair Value	2,855	1,342
Cash flow interest rate swap
Derivative financial instruments on consolidated balance sheets
Derivative Assets, Fair Value	0	0
Derivative Liabilities, Fair Value	$ 580	$ 1,031

Risk Management and Derivatives (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Derivative financial instruments on consolidated statements of operations
Gain (loss) on foreign investments	$ (700)	$ (2,300)	$ (100)
Cash flow interest rate swap \| Designated as hedge
Derivative financial instruments on consolidated statements of operations
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion)	(968)	(1,553)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion)	(44)	(180)
Foreign exchange contracts \| Not designated as hedge
Derivative financial instruments on consolidated statements of operations
Amount of Gain or (Loss) Recognized in Income on Derivative	$ (8,920)	$ 17,406	$ (1,010)

The amount of net gains and losses recognized in income during the period on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges, on derivative instruments designated and qualifying as hedging instruments in cash flow hedges, and on derivative instruments not designated as hedging instruments.

Common Stock, shares authorized

Risk Management and Derivatives (Details 5) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2012 CAD ($)	Dec. 31, 2012 EUR (€)	Dec. 31, 2012 GBP (£)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Foreign currency derivatives
Derivatives
Foreign currency derivative collateral included in restricted cash					$ 9,600	$ 9,600
Sells EUR/Buys USD Forward
Derivatives
Notional Amount			€ 109,000		143,925
Maturity	Jan. 03, 2013
Sells GBP/Buys USD Forward
Derivatives
Notional Amount				£ 52,850	85,856
Maturity	Jan. 03, 2013
Sells CAD/Buys USD Forward
Derivatives
Notional Amount		$ 50,700			51,065
Maturity	Jan. 03, 2013
Interest rate swap
Derivatives
Notional Amount					$ 28,000
Maturity	Nov. 01, 2019
Variable Rate		2.00%	2.00%	2.00%	2.00%
Fixed Rate		3.75%	3.75%	3.75%	3.75%
Expense related to qualifying cash flow hedges expected to be reclassified to earnings over the next 12 months	$ 3,200
Income related to previously terminated cash flow hedges expected to be reclassified to earnings over the next 12 months	$ 600

Equity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Equity [Abstract]

200,000

Common Stock, par value (in dollars per share)

$ 0.001

Preferred Stock, shares authorized

30,000

Common Stock, shares issued

142,699

140,028

Common Stock, shares outstanding

83,782

81,920

Preferred Stock Series D, E, F, G and I, liquidation preference per share (in dollars per share)

$ 25

Number of days in year used in the computation of preferred stock dividends for any partial dividend period

21,800

360 days

Number of months used in the computation of preferred stock dividends for any partial dividend period

12 months

Number of days in month, dividends computation of dividends payable for any partial dividend period

30 days

Amount of preferred dividends in arrears

$ 0.0

Maximum

Number of days prior to dividend payment date that Board of Directors may elect to designate as the payment date

30 days

Minimum

Number of days prior to dividend payment date that Board of Directors may elect to designate as the payment date

10 days

Series D

4,000

Rate per Annum of the $25.00 Liquidation Preference

$ 0.001

^[1],[2]

8.00%

^[1],[2]

$ 2.00

$ 8.0

Series E

5,600

Rate per Annum of the $25.00 Liquidation Preference

$ 0.001

^[1],[2]

7.875%

^[1],[2]

$ 1.97

$ 11.0

Series F

4,000

Rate per Annum of the $25.00 Liquidation Preference

$ 0.001

^[1],[2]

7.80%

^[1],[2]

$ 1.95

$ 7.8

Series G

3,200

Rate per Annum of the $25.00 Liquidation Preference

$ 0.001

^[1],[2]

7.65%

^[1],[2]

$ 1.91

$ 6.1

Series I

5,000

Rate per Annum of the $25.00 Liquidation Preference

$ 0.001

^[1],[2]

7.50%

^[1],[2]

$ 1.88

$ 9.4

[1]

[2]

The Company declared and paid dividends of $8.0 million, $11.0 million, $7.8 million, $6.1 million and $9.4 million on its Series D, E, F, G and I preferred stock, respectively, during each of the years ended December 31, 2012 and 2011, all of which qualified as return of capital for tax reporting purposes. There are no dividend arrearages on any of the preferred shares currently outstanding.

Equity (Details 2) $ in Millions	12 Months Ended
Equity (Details 2) $ in Millions	Dec. 31, 2012 USD ($) plan shares
HPU
Stock Performance Award Program [Line Items]
Number of votes per share	0.25
High Performance Unit Program
Stock Performance Award Program [Line Items]
Initial purchase price of high performance units \| $	$ 9.8
Number of plans which did not meet the required performance thresholds \| plan	4
High Performance Unit Program \| Employee
Stock Performance Award Program [Line Items]
Number of plans which have exceeded performance thresholds \| plan	3
High Performance Unit Program 2002 Plan \| Employee \| HPU
Stock Performance Award Program [Line Items]
Number of shares of entity's common stock used as the basis for determining amount of distributions to be paid	819,254
Number of shares outstanding (in shares)	5,000
High Performance Unit Program 2003 Plan \| Employee \| HPU
Stock Performance Award Program [Line Items]
Number of shares of entity's common stock used as the basis for determining amount of distributions to be paid	987,149
Number of shares outstanding (in shares)	5,000,000
High Performance Unit Program 2004 Plan \| Employee \| HPU
Stock Performance Award Program [Line Items]
Number of shares of entity's common stock used as the basis for determining amount of distributions to be paid	1,031,875
Number of shares outstanding (in shares)	5,000,000

Equity (Details 3) - USD ($) $ in Millions	12 Months Ended
Equity (Details 3) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Dividends [Abstract]
Minimum percentage of taxable income (excluding net capital gains) to be distributed in order to qualify as REIT	90.00%
Percentage of taxable income (including net capital gains) to be distributed in order to qualify as REIT	100.00%
Operating loss carryforwards		$ 423.9

Equity (Details 4) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	12 Months Ended
	May 31, 2012	Dec. 31, 2012
Stock Repurchase Program
Repurchase of common stock, authorized amount	$ 20.0
Number of common stock shares repurchased		0.8
Amount of common stock shares repurchased		$ 4.6
Average cost of shares repurchased (in dollars per share)		$ 5.69
Available repurchase of common stock, authorized amount		$ 16.0

Equity (Details 5) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Accumulated other comprehensive income (loss) reflected in the Company's shareholders' equity
Unrealized gains on available-for-sale securities	$ 867	$ 589
Unrealized gains on cash flow hedges	607	1,986
Unrealized losses on cumulative translation adjustment	(2,659)	(2,903)
Accumulated other comprehensive income (loss)	$ (1,185)	$ (328)

Accumulated change, net of tax, in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Includes an entity's share of an equity investee's Increase or Decrease in deferred hedging gains or losses.

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32022-110900

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 12, 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 31
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17, 18, 19, 22, 23, 24, 25, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 31
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14, 17, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-Based Compensation Plans and Employee Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 15,293	$ 29,702	$ 19,355
Unrecognized compensation cost	$ 10,100
Weighted-average period to recognize the unrecognized compensation cost	7 months 2 days
Long-term Incentive Plan 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares that may be awarded	8,000,000
Maximum additional number of shares that can be awarded provided that previously granted shares under the 1996 Plan either expire, are cancelled or forfeited	500,000
Long-term Incentive Plan 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares that may be awarded	4,550,000
Number of shares available for grant designated as incentive stock options	1,000,000
Long-term Incentive Plan 2006 and 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance	4,100,000

Stock-Based Compensation Plans and Employee Benefits (Details 2) $ / shares in Units, $ in Millions	1 Months Ended			3 Months Ended	12 Months Ended
	Mar. 31, 2012 shares	Feb. 29, 2012 shares	Jan. 31, 2012 shares	Sep. 30, 2011	Dec. 31, 2012 USD ($) installments $ / shares shares	Dec. 31, 2011 USD ($) shares	Dec. 31, 2010 USD ($)
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of restricted stock units vested \| $					$ 29.1	$ 15.5	$ 1.7
Vested (in shares)					4,595,000
Shares outstanding (in shares)					5,276,000	9,985,000
Amended restricted stock units that vested on January 1, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			1,947,551
Common stock equivalents
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjustment to Additional paid-in capital on account of modification of liability based awards to equity awards \| $						$ 2.4
Employees \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)					4,594,572
Amount RSU's issued net of statuatory minimum required tax witholdings (in shares)					2,610,816
Employees \| Service based restricted stock units that vested on February 17, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)		1,340,620
Employees \| Service based restricted stock units with specified vesting dates
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)					637,485
Company's chairman and chief executive officer \| Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	806,518
Company's chairman and chief executive officer \| Service-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)					1,200,000
Vesting installments \| installments					2
Executives and other officers \| Market-condition based restricted stock units granted on December 19, 2008, modified and measured on July 1, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)					3,438,607
Vesting installments \| installments					2
Percentage of original units granted equal to amended units				75.00%
Directors \| CSE and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)					384,751
Vesting term					1 year
Shares awarded (in shares)					77,113
Grant date fair value (in dollars per share) \| $ / shares					$ 5.67
Aggregate intrinsic value for directors \| $					$ 3.1
Former director \| CSE and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for settlement (in shares)					35,476
Minimum \| Employees \| Service based restricted stock units with specified vesting dates
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term					2 years
Maximum \| Employees \| Service based restricted stock units with specified vesting dates
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term					5 years

Stock-Based Compensation Plans and Employee Benefits (Details 3) - Market-condition based restricted stock units granted on December 19, 2008, modified and measured on July 1, 2011

1 Months Ended

Jul. 31, 2011

^[1]

Risk-free interest rate

0.092%

Expected stock price volatility

57.75%

Expected annual dividend

0.00%

[1]	The modified December 19, 2008 market-condition based restricted stock units were measured on July 1, 2011, the date the Company's Board of Directors' approved the modification of the award.

Stock-Based Compensation Plans and Employee Benefits (Details 4) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($) $ / shares shares
Number of Shares
Non-vested, beginning balance (in shares) \| shares	9,985
Granted (in shares) \| shares	0
Vested (in shares) \| shares	(4,595)
Forfeited (in shares) \| shares	(114)
Non-vested, ending balance (in shares) \| shares	5,276
Weighted Average Grant Date Fair Value Per Share
Non-vested, beginning balance, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares	$ 4.70
Granted, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares	0.00
Vested, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares	4.06
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares	5.99
Non-vested, ending balance, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares	$ 5.24
Aggregate Intrinsic Value \| $	$ 43,000

Stock-Based Compensation Plans and Employee Benefits (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Service requirement	3 months
Employer matching contribution, percent of match	50.00%
Employer matching contribution, percent of employee contribution	10.00%
Gross contributions made by the Company	$ 0.9	$ 0.9	$ 1.1

Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2012

^[2]

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

^[3]

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Reconciliation of income (loss) from continuing operations used in the basic and diluted EPS calculations

Income (loss) from continuing operations

^[1]

$ (312,694)

$ (49,206)

$ (206,997)

Net (income) loss attributable to noncontrolling interests

1,500

3,629

(523)

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders, HPU holders and Participating Security Holders

$ 27,900

63,472

5,721

Preferred dividends

(42,320)

(290,042)

(82,176)

(249,840)

Numerator for basic earnings per share:

(19,465)

(7,318)

16,821

27,257

25,110

270,382

Denominator for basic and diluted earnings per share:

$ (87,424)

$ (71,784)

$ (58,996)

$ (54,792)

$ (35,202)

$ (62,231)

$ (35,525)

$ 67,420

$ (272,997)

$ (62,387)

$ 36,279

Weighted average common shares outstanding for basic earnings per common share

83,674

83,629

84,113

83,556

81,769

87,951

92,621

92,458

83,742

88,688

93,244

Weighted average High Performance Units outstanding for basic and diluted earnings per share (in shares)

^[1],[4]

Weighted average common shares outstanding for diluted earnings per common share

83,674

83,629

84,113

83,556

81,769

87,951

92,621

94,609

83,742

88,688

93,244

Basic earnings per common share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

^[1]

$ (3.35)

$ (0.89)

$ (2.60)

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

$ (1.04)

$ (0.86)

$ (0.70)

$ (0.66)

$ (0.43)

$ (0.71)

$ (0.38)

$ 0.73

(3.26)

(0.70)

0.39

Diluted earnings per common share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

^[1]

(3.35)

(0.89)

(2.60)

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

$ (1.04)

$ (0.86)

$ (0.70)

$ (0.66)

$ (0.43)

$ (0.71)

$ (0.38)

$ 0.71

$ (3.26)

$ (0.70)

$ 0.39

Common shares

Numerator for basic earnings per share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders

$ (280,534)

$ (79,627)

$ (242,440)

(18,826)

(7,091)

16,324

26,363

24,331

262,395

Numerator for diluted earnings per share:

(272,997)

(62,387)

36,279

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders

(280,534)

(79,627)

(242,440)

(18,826)

(7,091)

16,324

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders

26,363

24,331

262,395

$ (272,997)

$ (62,387)

$ 36,279

Denominator for basic and diluted earnings per share:

Weighted average common shares outstanding for basic earnings per common share

83,742

88,688

93,244

Add: effect of assumed shares issued under treasury stock method for restricted shares

Add: effect of joint venture shares

Weighted average common shares outstanding for diluted earnings per common share

83,742

88,688

93,244

Basic earnings per common share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

$ (3.35)

$ (0.89)

$ (2.60)

Income from discontinued operations (in dollars per share)

(0.22)

(0.08)

0.18

Gain from discontinued operations (in dollars per share)

0.31

0.27

2.81

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

(3.26)

(0.70)

0.39

Diluted earnings per common share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

(3.35)

(0.89)

(2.60)

Income from discontinued operations (in dollars per share)

(0.22)

(0.08)

0.18

Gain from discontinued operations (in dollars per share)

0.31

0.27

2.81

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

$ (3.26)

$ (0.70)

$ 0.39

HPU's

Numerator for basic earnings per share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders

$ (9,509)

$ (2,549)

$ (7,400)

(638)

(227)

497

894

779

7,987

Numerator for diluted earnings per share:

(9,253)

(1,997)

1,084

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders

(9,509)

(2,549)

(7,400)

(638)

(227)

497

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders

894

779

7,987

$ (9,253)

$ (1,997)

$ 1,084

Denominator for basic and diluted earnings per share:

Weighted average High Performance Units outstanding for basic and diluted earnings per share (in shares)

Basic earnings per common share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

$ (633.94)

$ (169.93)

$ (493.33)

Income from discontinued operations (in dollars per share)

(42.53)

(15.13)

33.13

Gain from discontinued operations (in dollars per share)

59.60

51.93

532.47

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

(616.87)

(133.13)

72.27

Diluted earnings per common share:

Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

(633.94)

(169.93)

(493.33)

Income from discontinued operations (in dollars per share)

(42.53)

(15.13)

33.13

Gain from discontinued operations (in dollars per share)

59.60

51.93

532.47

Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders (in dollars per share)

$ (616.87)

$ (133.13)

$ 72.27

[1]	Income (loss) from continuing operations attributable to iStar Financial Inc. for the years ended December 31, 2012, 2011 and 2010 was $(311.2) million, $(45.6) million and $(207.5) million, respectively. See Note 13 for details on the calculation of earnings per share.
[2]	During the quarter ended December 31, 2012, the Company recorded a loss on early extinguishment of debt of $31.0 million primarily related to a prepayment penalty on the early repayment of 8.625% Senior Notes, as well as a loss due to the acceleration of unamortized fees and discounts related to the refinancing of the 2011 Secured Credit Facilities (see Note 8). The Company also recorded $27.9 million related to Income from sales of residential property. During the quarter ended March 31, 2012, the Madison Funds recorded a significant gain related to the sale of an investment for which the Company recorded its $13.7 million proportionate share.
[3]	During the quarter ended December 31, 2011, the Company sold a substantial portion of its interests in Oak Hill Advisors, L.P. and related entities which resulted in a net gain of $30.3 million (see Note 6). During the quarter ended June 30, 2011, the Company recorded interest income of $26.3 million related to certain non-performing loans that were resolved, including interest not previously recorded due to the loans being on non-accrual status. During the quarter ended March 31, 2011, the Company recorded a gain on early extinguishment of debt of $109.0 million for the redemption of its $312.3 million remaining principal amount of 10% senior secured notes due June 2014.
[4]	HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit Program (see Note 11).

Earnings Per Share (Details 2) - shares shares in Thousands	12 Months Ended
Earnings Per Share (Details 2) - shares shares in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Joint venture shares
Anti-dilutive shares
Anti-dilutive shares	298	298	298
Stock options
Anti-dilutive shares
Anti-dilutive shares	0	44	143

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Quantitative information about Level 3 fair value measures

Fair Values (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Recurring basis \| Total
Assets and liabilities recorded at fair value
Derivative liabilities	$ 3,435	$ 2,373
Recurring basis \| Quoted market prices in active markets (Level 1)
Assets and liabilities recorded at fair value
Derivative liabilities	0	0
Recurring basis \| Significant other observable inputs (Level 2)
Assets and liabilities recorded at fair value
Derivative liabilities	3,435	2,373
Recurring basis \| Significant unobservable inputs (Level 3)
Assets and liabilities recorded at fair value
Derivative liabilities	0	0
Non-recurring basis
Assets and liabilities recorded at fair value
Impaired real estate	31,597
Non-recurring basis \| Total
Assets and liabilities recorded at fair value
Impaired loans	57,201	271,968
Impaired real estate		43,660
Non-recurring basis \| Quoted market prices in active markets (Level 1)
Assets and liabilities recorded at fair value
Impaired loans	0	0
Impaired real estate	0	0
Non-recurring basis \| Significant other observable inputs (Level 2)
Assets and liabilities recorded at fair value
Impaired loans	0	0
Impaired real estate	7,649	0
Non-recurring basis \| Significant unobservable inputs (Level 3)
Assets and liabilities recorded at fair value
Impaired loans	57,201	271,968
Impaired real estate	$ 23,948	$ 43,660

Fair Values (Details 2)
$ in Thousands

12 Months Ended

Dec. 31, 2012

USD ($)

Quantitative information about Level 3 fair value measures

$ 81,149

Impaired loans

Impaired loans | Discounted cash flow

57,201

^[1]

Quantitative information about Level 3 fair value measures

Average annual revenue growth

$ 19,700

Discount rate

10.90%

^[1]

1.00%

^[1]

Capitalization rate

8.90%

^[1]

Average annual increase in occupancy

0.20%

^[1]

Impaired loans | Discounted pay-off offer provided by the borrower

Quantitative information about Level 3 fair value measures

Quantitative information about Level 3 fair value measures

$ 37,500

Impaired real estate

Impaired real estate | Discounted cash flow

$ 23,948

Quantitative information about Level 3 fair value measures

Discount rate

12.30%

Average annual revenue growth

3.70%

Capitalization rate

9.00%

Average annual increase in occupancy

(1.00%)

Remaining inventory sell out period (in years)

5 years

[1]	One loan with a value of $19.7 million was valued using discounted cash flows. The remaining loan with a value of $37.5 million was valued based on a discounted pay-off offer provided by the borrower that the Company believes approximates fair value.

Fair Values (Details 3) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Financial assets:

$ 1,829,985

$ 2,860,762

$ 4,587,352

Financial liabilities:

4,691,494

^[1]

$ 5,837,540

Book Value

Financial assets:

2,800,000

Financial liabilities:

5,500,000

Fair Value

Financial assets:

1,900,000

Financial liabilities:

$ 4,900,000

[1]	Includes minimum required amortization payments on the March 2012 Secured Credit Facilities and the October 2012 Secured Credit Facility.

Segment Reporting (Details) - USD ($)
$ in Thousands

2 Months Ended

3 Months Ended

12 Months Ended

Sep. 30, 2010

^[7]

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Sep. 30, 2012

^[7]

Dec. 31, 2011

Sep. 30, 2011

^[7]

Dec. 31, 2010

$ 219,019

$ 198,478

$ 186,630

133,410

226,871

364,094

48,043

39,720

50,733

$ 93,713

^[1]

$ 95,159

$ 108,647

$ 102,953

$ 104,731

^[2]

$ 105,841

$ 136,610

$ 117,887

400,472

465,069

601,457

103,009

95,091

51,908

$ 27,900

63,472

5,721

^[3]

5,611

10,823

72,692

27,257

25,110

270,382

599,821

601,814

996,439

(151,827)

(138,943)

(121,399)

(17,266)

(11,070)

(16,055)

(169,093)

(150,013)

(137,454)

430,728

451,801

858,985

^[4]

(356,161)

(345,914)

(346,500)

^[5]

(65,563)

(75,337)

(90,170)

^[6]

9,004

30,550

422,315

81,740

46,412

331,487

^[4]

36,354

22,386

22,381

^[4]

70,786

63,928

70,786

83,069

64,169

42,863

3,226,648

3,344,672

3,226,648

3,344,672

2,998,638

(427,625)

(396,761)

(427,625)

(396,761)

(356,600)

2,799,023

2,947,911

2,799,023

2,947,911

2,642,038

635,865

677,458

635,865

677,458

746,081

3,434,888

3,625,369

3,434,888

3,625,369

3,388,119

1,829,985

2,860,762

1,829,985

2,860,762

4,587,352

398,843

457,835

398,843

457,835

532,358

5,663,716

6,943,966

5,663,716

6,943,966

8,507,829

487,073

573,871

487,073

573,871

666,685

Equity method investments

6,150,789

7,517,837

6,150,789

7,517,837

9,174,514

387,718

445,835

387,718

445,835

Stock-based compensation expense

15,293

29,702

19,355

LNR Property LLC ("LNR")

Equity method investments

$ 1,797

60,669

$ 60,669

53,861

$ 53,861

1,797

205,773

$ 205,773

^[7]

159,764

$ 159,764

^[7]

205,773

$ 205,773

159,764

$ 159,764

Real Estate Finance

133,410

226,871

364,094

8,613

3,176

13,750

142,023

230,047

377,844

^[3]

142,023

230,047

377,844

(4,775)

(2,866)

(10,107)

(4,775)

(2,866)

(10,107)

137,248

227,181

367,737

^[4]

(124,208)

(161,025)

(174,074)

^[5]

(14,998)

(20,680)

(28,833)

^[6]

(1,958)

45,476

164,830

81,740

46,412

331,487

^[4]

^[4]

1,829,985

2,860,762

1,829,985

2,860,762

4,587,352

1,829,985

2,860,762

1,829,985

2,860,762

4,587,352

9,832

13,340

9,832

13,340

21,710

1,839,817

2,874,102

1,839,817

2,874,102

4,609,062

Net Leasing

151,992

147,151

146,599

151,992

147,151

146,599

2,632

2,566

2,522

^[3]

4,725

11,760

73,233

27,257

25,110

270,382

186,606

186,587

492,736

(24,255)

(25,282)

(21,223)

(24,255)

(25,282)

(21,223)

162,351

161,305

471,513

^[4]

(83,658)

(67,338)

(62,094)

^[5]

(9,484)

(8,648)

(10,285)

^[6]

69,209

85,319

399,134

^[4]

6,670

668

6,063

^[4]

39,250

42,080

48,973

10,993

8,699

13,475

1,639,320

1,773,149

1,639,320

1,773,149

1,834,172

(315,699)

(302,851)

(315,699)

(302,851)

(284,489)

1,323,621

1,470,298

1,323,621

1,470,298

1,549,683

1,323,621

1,470,298

1,323,621

1,470,298

1,549,683

16,380

16,297

16,380

16,297

16,128

1,340,001

1,486,595

1,340,001

1,486,595

1,565,811

105,595

87,673

105,595

87,673

78,337

1,445,596

1,574,268

1,445,596

1,574,268

1,644,148

Operating Property

65,500

51,153

39,623

32,820

32,538

33,403

98,320

83,691

73,026

25,142

(626)

63,472

5,721

^[3]

886

(937)

(541)

187,820

87,849

72,485

(100,258)

(92,012)

(85,097)

(100,258)

(92,012)

(85,097)

87,562

(4,163)

(12,612)

^[4]

(66,001)

(53,598)

(39,957)

^[5]

(7,760)

(6,884)

(6,618)

^[6]

13,801

(64,645)

(59,187)

^[4]

28,501

21,030

18,988

^[4]

28,450

18,169

17,050

51,579

38,477

18,894

801,214

720,251

801,214

720,251

470,989

(109,634)

(90,383)

(109,634)

(90,383)

(70,074)

691,580

629,868

691,580

629,868

400,915

454,587

551,998

454,587

551,998

631,920

1,146,167

1,181,866

1,146,167

1,181,866

1,032,835

25,745

37,957

25,745

37,957

1,171,912

1,219,823

1,171,912

1,219,823

1,032,835

60,500

33,217

60,500

33,217

25,122

1,232,412

1,253,040

1,232,412

1,253,040

1,057,957

1,527

174

408

2,635

1,635

643

4,162

1,809

1,051

(6,138)

(7,213)

^[3]

(1,976)

(5,404)

1,051

(27,314)

(21,649)

(15,079)

(27,314)

(21,649)

(15,079)

(29,290)

(27,053)

(14,028)

^[4]

(43,993)

(42,337)

(30,445)

^[5]

(7,405)

(6,959)

(5,261)

^[6]

(80,688)

(76,349)

(49,734)

^[4]

205

(184)

100

^[4]

1,276

1,534

1,037

20,497

16,993

10,494

786,114

851,272

786,114

851,272

693,477

(2,292)

(3,527)

(2,292)

(3,527)

(2,037)

783,822

847,745

783,822

847,745

691,440

181,278

125,460

181,278

125,460

114,161

965,100

973,205

965,100

973,205

805,601

5,493

14,845

5,493

14,845

970,593

988,050

970,593

988,050

805,601

9,638

1,734

9,638

1,734

500

980,231

989,784

980,231

989,784

806,101

Corporate/ Other

^[8]

^[8]

^[8]

3,975

2,371

2,937

^[8]

3,975

2,371

2,937

^[8]

81,373

100,364

49,386

^[8]

^[3],[8]

^[8]

^[8]

85,348

102,735

52,323

^[8]

^[8]

(12,491)

(8,204)

(5,948)

^[8]

(12,491)

(8,204)

(5,948)

^[8]

72,857

94,531

46,375

^[4]

(38,301)

^[8]

(21,616)

^[8]

(39,930)

^[5]

(25,916)

^[8]

(32,166)

^[8]

(39,173)

^[6]

8,640

^[8]

40,749

(32,728)

^[8]

^[4],[8]

978

872

(2,770)

^[4],[8]

1,810

2,145

3,726

^[8]

^[8]

^[8]

^[8]

^[8]

^[8]

^[8]

^[8]

351,225

388,736

351,225

388,736

516,230

^[8]

351,225

388,736

351,225

388,736

516,230

^[8]

301,508

437,907

301,508

437,907

541,016

Reconciliation of segment profit (loss) to income (loss) from continuing operations

^[8]

$ 652,733

$ 826,643

$ 652,733

$ 826,643

$ 1,057,246

[1]	During the quarter ended December 31, 2012, the Company recorded a loss on early extinguishment of debt of $31.0 million primarily related to a prepayment penalty on the early repayment of 8.625% Senior Notes, as well as a loss due to the acceleration of unamortized fees and discounts related to the refinancing of the 2011 Secured Credit Facilities (see Note 8). The Company also recorded $27.9 million related to Income from sales of residential property. During the quarter ended March 31, 2012, the Madison Funds recorded a significant gain related to the sale of an investment for which the Company recorded its $13.7 million proportionate share.
[2]	During the quarter ended December 31, 2011, the Company sold a substantial portion of its interests in Oak Hill Advisors, L.P. and related entities which resulted in a net gain of $30.3 million (see Note 6). During the quarter ended June 30, 2011, the Company recorded interest income of $26.3 million related to certain non-performing loans that were resolved, including interest not previously recorded due to the loans being on non-accrual status. During the quarter ended March 31, 2011, the Company recorded a gain on early extinguishment of debt of $109.0 million for the redemption of its $312.3 million remaining principal amount of 10% senior secured notes due June 2014.
[3]	Includes revenue and real estate expense reclassified to discontinued operations on the Company's Consolidated Statements of Operations.
[4]	Includes related amounts reclassified to discontinued operations on the Company's Consolidated Statements of Operations.
[5]	General and administrative excludes stock-based compensation expense of $15.3 million, $29.7 million and $19.4 million for the years ended December 31, 2012, 2011 and 2010, respectively.
[6]	The following is a reconciliation of segment profit (loss) to net income (loss) ($ in thousands): For the Years Ended December 31, 2012 2011 2010Segment profit (loss)$9,004 $30,550 $422,315Less: Provision for loan losses(81,740) (46,412) (331,487)Less: Impairment of assets(36,354) (22,386) (22,381)Less: Stock-based compensation expense(15,293) (29,702) (19,355)Less: Depreciation and amortization(70,786) (63,928) (70,786)Less: Income tax (expense) benefit(8,445) 4,719 (7,023)Add: Gain (loss) on early extinguishment of debt, net(37,816) 101,466 108,923Net income (loss)$(241,430) $(25,693) $80,206
[7]	The Company records its investment in LNR on a one quarter lag, therefore, amounts in the Company's financial statements for the year ended December 31, 2012 and 2011 are based on balances and results from LNR for the years ended September 30, 2012 and 2011. LNR was acquired in July of 2010, therefore results for the year ended December 31, 2010 are based on balances from LNR for the period July 29, 2010 to September 30, 2010.
[8]	Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not related to the other reportable segments above, including the Company's equity investment in LNR of $205.8 million and $159.8 million, as of December 31, 2012 and 2011, respectively, and the Company's share of equity in earnings from LNR of $60.7 million, $53.9 million and $1.8 million for the years ended December 31, 2012, 2011 and 2010, respectively. See Note 6 for further details on the Company's investment in LNR and summarized financial information of LNR.

Segment Reporting (Details 2) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2012

^[2]

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

^[3]

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Segment profit (loss)

^[1]

$ 9,004

$ 30,550

$ 422,315

Less: Provision for loan losses

(81,740)

(46,412)

(331,487)

Less: Impairment of assets

(36,354)

(22,386)

(22,381)

Less: Stock-based compensation expense

(15,293)

(29,702)

(19,355)

Less: Depreciation and amortization

(70,786)

(63,928)

(70,786)

Less: Income tax (expense) benefit

(8,445)

4,719

(7,023)

Add: Gain (loss) on early extinguishment of debt, net

(37,816)

101,466

108,923

$ (79,948)

$ (64,306)

$ (51,129)

$ (46,048)

$ (28,915)

$ (54,661)

$ (26,020)

$ 83,902

$ (241,430)

$ (25,693)

$ 80,206

[1]	The following is a reconciliation of segment profit (loss) to net income (loss) ($ in thousands): For the Years Ended December 31, 2012 2011 2010Segment profit (loss)$9,004 $30,550 $422,315Less: Provision for loan losses(81,740) (46,412) (331,487)Less: Impairment of assets(36,354) (22,386) (22,381)Less: Stock-based compensation expense(15,293) (29,702) (19,355)Less: Depreciation and amortization(70,786) (63,928) (70,786)Less: Income tax (expense) benefit(8,445) 4,719 (7,023)Add: Gain (loss) on early extinguishment of debt, net(37,816) 101,466 108,923Net income (loss)$(241,430) $(25,693) $80,206
[2]	During the quarter ended December 31, 2012, the Company recorded a loss on early extinguishment of debt of $31.0 million primarily related to a prepayment penalty on the early repayment of 8.625% Senior Notes, as well as a loss due to the acceleration of unamortized fees and discounts related to the refinancing of the 2011 Secured Credit Facilities (see Note 8). The Company also recorded $27.9 million related to Income from sales of residential property. During the quarter ended March 31, 2012, the Madison Funds recorded a significant gain related to the sale of an investment for which the Company recorded its $13.7 million proportionate share.
[3]	During the quarter ended December 31, 2011, the Company sold a substantial portion of its interests in Oak Hill Advisors, L.P. and related entities which resulted in a net gain of $30.3 million (see Note 6). During the quarter ended June 30, 2011, the Company recorded interest income of $26.3 million related to certain non-performing loans that were resolved, including interest not previously recorded due to the loans being on non-accrual status. During the quarter ended March 31, 2011, the Company recorded a gain on early extinguishment of debt of $109.0 million for the redemption of its $312.3 million remaining principal amount of 10% senior secured notes due June 2014.

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591552-111686

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a),(c)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591551-111686

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A1, A4, A5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Oct. 31, 2011

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

^[2]

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Jan. 02, 2011

Revenue

$ 93,713

^[1]

$ 95,159

$ 108,647

$ 102,953

$ 104,731

$ 105,841

$ 136,610

$ 117,887

$ 400,472

$ 465,069

$ 601,457

Net income (loss) attributable to iStar Financial Inc.

(79,948)

^[1]

(64,306)

(51,129)

(46,048)

(28,915)

(54,661)

(26,020)

83,902

(241,430)

(25,693)

80,206

Earnings per common share data:

$ (87,424)

^[1]

$ (71,784)

$ (58,996)

$ (54,792)

$ (35,202)

$ (62,231)

$ (35,525)

$ 67,420

$ (272,997)

$ (62,387)

$ 36,279

Basic earnings per share (in dollars per share)

$ (1.04)

^[1]

$ (0.86)

$ (0.70)

$ (0.66)

$ (0.43)

$ (0.71)

$ (0.38)

$ 0.73

$ (3.26)

$ (0.70)

$ 0.39

Diluted earnings per share (in dollars per share)

$ (1.04)

^[1]

$ (0.86)

$ (0.70)

$ (0.66)

$ (0.43)

$ (0.71)

$ (0.38)

$ 0.71

$ (3.26)

$ (0.70)

$ 0.39

Weighted average number of common shares—basic

83,674

^[1]

83,629

84,113

83,556

81,769

87,951

92,621

92,458

83,742

88,688

93,244

Weighted average number of common shares—diluted

83,674

^[1]

83,629

84,113

83,556

81,769

87,951

92,621

94,609

83,742

88,688

93,244

Earnings per HPU share data:

Net income (loss) attributable to iStar Financial Inc.

$ (2,966)

^[1]

$ (2,436)

$ (1,991)

$ (1,861)

$ (1,222)

$ (2,008)

$ (1,089)

$ 2,070

Basic earnings per share (in dollars per share)

$ (197.73)

^[1]

$ (162.40)

$ (132.73)

$ (124.07)

$ (81.47)

$ (133.87)

$ (72.60)

$ 138.00

$ (616.87)

^[3],[4]

$ (133.13)

^[3],[4]

$ 72.27

^[3],[4]

Diluted earnings per share (in dollars per share)

$ (197.73)

^[1]

$ (162.40)

$ (132.73)

$ (124.07)

$ (81.47)

$ (133.87)

$ (72.60)

$ 135.07

$ (616.87)

^[3],[4]

$ (133.13)

^[3],[4]

$ 72.27

^[3],[4]

Weighted average number of HPU shares—basic and diluted

^[1]

^[3],[4]

$ (37,816)

$ 101,466

$ 108,923

$ 27,900

63,472

5,721

Unsecured Notes 8.625% senior notes

$ 103,009

95,091

51,908

$ 31,000

Secured Notes 10.0% senior notes due 2014

8.625%

$ 109,000

Amount of debt extinguished

10.00%

$ 312,300

Impaired financing receivable, interest income, cash basis method

26,300

Madison Funds

$ 13,700

$ 10,246

$ 3,641

$ 9,717

Oak Hill Advisors

Net gain from sale of ownership interest

$ 30,300

[1]	During the quarter ended December 31, 2012, the Company recorded a loss on early extinguishment of debt of $31.0 million primarily related to a prepayment penalty on the early repayment of 8.625% Senior Notes, as well as a loss due to the acceleration of unamortized fees and discounts related to the refinancing of the 2011 Secured Credit Facilities (see Note 8). The Company also recorded $27.9 million related to Income from sales of residential property. During the quarter ended March 31, 2012, the Madison Funds recorded a significant gain related to the sale of an investment for which the Company recorded its $13.7 million proportionate share.
[2]	During the quarter ended December 31, 2011, the Company sold a substantial portion of its interests in Oak Hill Advisors, L.P. and related entities which resulted in a net gain of $30.3 million (see Note 6). During the quarter ended June 30, 2011, the Company recorded interest income of $26.3 million related to certain non-performing loans that were resolved, including interest not previously recorded due to the loans being on non-accrual status. During the quarter ended March 31, 2011, the Company recorded a gain on early extinguishment of debt of $109.0 million for the redemption of its $312.3 million remaining principal amount of 10% senior secured notes due June 2014.
[3]	HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit Program (see Note 11).
[4]	Income (loss) from continuing operations attributable to iStar Financial Inc. for the years ended December 31, 2012, 2011 and 2010 was $(311.2) million, $(45.6) million and $(207.5) million, respectively. See Note 13 for details on the calculation of earnings per share.

Subsequent Events (Details) - USD ($)
$ in Thousands

Feb. 11, 2013

Jan. 24, 2013

Dec. 31, 2012

New Credit Facility due October 2017

New Credit Facility due October 2017 | Minimum

^[1]

4.50%

1.25%

Subsequent Event

Real estate, agreement to sell property

$ 220,000

Prepayment penalty

$ 17,100

Subsequent Event | New Credit Facility due October 2017

Amount of debt outstanding

$ 1,710,000

Subsequent Event | New Credit Facility due October 2017 | Minimum

3.50%

Valuation and Qualifying Accounts Disclosure [Line Items]

1.00%

[1]

This loan has a LIBOR floor of 1.25%. As of December 31, 2012, inclusive of the floor, the October 2012 Secured Credit Facility incurred interest at a rate of 5.75%. Subsequent to year end, in connection with the repricing of the October 2012 Secured Credit Facility, the loan will bear interest at a rate of LIBOR + 3.50%, with a LIBOR floor of 1.00%. See Note 17—Subsequent Events.

Schedule II-Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

$ 701,181

$ 845,922

$ 1,439,694

73,835

28,736

332,174

(176)

40,936

10,964

(203,865)

(214,413)

(936,910)

Valuation and Qualifying Accounts Disclosure [Line Items]

570,975

701,181

845,922

Reserve for loan losses

^[1],[2]

646,624

814,625

1,417,949

^[1],[2]

81,740

46,412

331,487

^[1],[2]

^[1],[2]

(203,865)

(214,413)

(934,811)

Allowance for doubtful accounts

^[1],[2]

524,499

646,624

814,625

Valuation and Qualifying Accounts Disclosure [Line Items]

^[1]

3,668

1,376

2,788

^[1]

1,928

2,292

687

^[1]

^[1]

(2,099)

Allowance for deferred tax assets

^[1]

5,596

3,668

1,376

Valuation and Qualifying Accounts Disclosure [Line Items]

^[1]

50,889

29,921

18,957

^[1]

(9,833)

(19,968)

^[1]

(176)

40,936

10,964

^[1]