Open Search Panel
Toggle Menu
<< Back to News
08/03/2017

iStar Announces Second Quarter 2017 Results

 

NEW YORK, Aug. 3, 2017 /PRNewswire/ -- iStar (NYSE: STAR) today reported results for the quarter ended June 30, 2017.

Highlights

  • Net income and adjusted income for the second quarter was $2.04 and $2.28, respectively, per diluted common share.
     
  • Successful IPO of Safety, Income & Growth Inc. (NYSE: SAFE), the first publicly traded company exclusively focused on ground leases.
    • Largest shareholder of SAFE (28% of shares outstanding).
       
  • SAFE transactions generated a $179 million economic gain for iStar, comprised of:
    • $123 million gain recorded in the second quarter 2017.
    • $56 million gain to be recorded retrospectively for the second quarter 2017 upon adoption of new accounting standards on January 1, 2018.
       
  • Judgment in favor of iStar on Bevard litigation, which generated $234 million of net proceeds and $125 million of income for iStar.

Second Quarter 2017 Results

iStar reported net income allocable to common shareholders for the second quarter of $177.5 million, or $2.04 per diluted common share, versus $38.1 million, or $0.37 per diluted common share for the second quarter 2016. 

Adjusted income allocable to common shareholders for the second quarter was $198.4 million, or $2.28 per diluted common share, versus $61.1 million, or $0.56 per diluted common share for the second quarter 2016.

Net income and adjusted income for the quarter reflect $235 million of income from our previously announced transactions to form and capitalize Safety, Income and Growth, Inc. (NYSE:SAFE) and the successful outcome of the Bevard litigation with Lennar Corporation, net of costs.

Adjusted income represents net income computed in accordance with GAAP, prior to the effects of certain non-cash items. The calculation of adjusted income and reconciliation to GAAP net income is presented in the financial tables that follow the text of this press release.

The Company has published a supplemental to this earnings release which is available at www.istar.com in the "Investors" section.

Safety, Income & Growth Inc.

iStar formed SAFE to expand and efficiently capitalize iStar's ground lease business.  iStar contributed to SAFE an initial portfolio of 12 assets, many of which iStar had owned for more than a decade, which had a gross book value of $223 million and a net book value of $161 million, net of $62 million of depreciation, on March 31, 2017.

In March, SAFE completed a $227 million secured debt financing on the initial portfolio and distributed all of the proceeds of the financing to iStar.  In April, through a merger and other transactions, two institutional investors acquired a 51% ownership interest in SAFE for $57.5 million,  representing $20.00 per share, based on a total enterprise value of SAFE of $340 million, including the $227 million of in-place secured debt.  iStar received the $57.5 million of cash proceeds from the acquisition transaction and retained a 49% interest in SAFE.

On June 27th, SAFE completed its $205 million initial public offering (IPO) and a $45 million concurrent private placement of common stock to iStar, each at a price of $20.00 per share.  After giving effect to the IPO and concurrent private placement, iStar held 28% of SAFE's outstanding common stock.

As a result of the SAFE transactions, iStar:

  • received approximately $285 million of cash proceeds, including $227 million of financing raised during the first quarter;
  • recorded $123 million of income in the second quarter, partially offset by $14 million of expensed IPO costs;
  • expects to retrospectively record an additional gain of approximately $56 million in the second quarter 2017 when new revenue recognition accounting standards become effective on January 1, 2018; and
  • owns 5,025,000 shares of SAFE (28% of shares outstanding).

"We believe ground leases represent one of the most compelling investment opportunities in the real estate market. There are very few hard assets that offer safety in uncertain times, growing income in an environment in which rates remain at historically low levels, along with an opportunity for significant capital appreciation," said Jay Sugarman, chairman and chief executive officer. "We have created SAFE to allow iStar shareholders to benefit from what we believe is a large and attractive market opportunity."

iStar will manage SAFE pursuant to a management agreement. After the first anniversary of SAFE's IPO, iStar will receive an annual management fee equal to 1% of SAFE's equity which will be paid in shares of SAFE stock.

Following SAFE's IPO, iStar, along with two senior executives, have entered into a 10b5-1 stock purchase plan to purchase in the open market up to $25 million of additional SAFE common stock at prices below $20 per share.

Portfolio Overview and Investment Activity

At June 30, 2017, the Company's portfolio totaled $4.2 billion, which is gross of $375 million of accumulated depreciation and $18 million of general loan loss reserves and includes $96 million market value of SAFE shares as of June 30, 2017.

iStar's strategy is to focus on finding investment opportunities within its real estate finance, net lease and ground leases businesses. In addition, the Company continues to make significant progress in developing and monetizing its operating properties and land & development assets.

(1) Represents the market value of our equity method investment in SAFE as of June 30, 2017.

During the second quarter of 2017, the Company invested a total of $200 million associated with new investments (including SAFE), prior financing commitments and ongoing development across its four segments, and generated $441 million of proceeds from repayments and sales.

Real Estate Finance

iStar's real estate finance business targets sophisticated and innovative investors by providing one-stop capabilities that encompass financial alternatives ranging from full envelope senior loans to custom-tailored mezzanine and preferred equity capital positions.

At June 30, 2017, the Company's real estate finance portfolio totaled $1.2 billion. The portfolio is categorized into iStar 3.0 loans, made post January 1, 2008, and legacy loans, which were all made prior to December 31, 2007.

 

Real Estate Finance Statistics

     

$ in millions

 

iStar 3.0

 

Legacy Loans

Gross book value

$

975

 

$

213

% of total loan portfolio

82%

 

18%

       

Performing loans

$

975

 

$

24

Non-performing loans

$

 

$

189

% Performing / Non-performing

100% / 0%

 

11% / 89%

       

First mortgages / senior loans

63%

 

27%

Mezzanine / subordinated debt

37%

 

73%

Total

100%

 

100%

       

Wtd. avg. LTV (1)

66.1%

 

n/a

Unlevered yield (1)

9.7%

 

8.9%

Wtd. avg. maturity (years) (1)

2.1

 

2.4

Note: Gross book value represents the carrying value of iStar's loans, gross of general reserves.

(1) Includes performing loans only.

 

Net Lease

iStar's net lease business seeks to create stable cash flows through long-term leases to single tenants on its properties.  The Company targets mission-critical facilities leased on a long-term basis to tenants, offering structured solutions that combine iStar's capabilities in underwriting, lease structuring, asset management and build-to-suit construction.

At the end of the quarter, iStar's net lease portfolio totaled $1.4 billion, gross of $314 million of accumulated depreciation. The portfolio was comprised of $1.2 billion of wholly-owned assets, a $129 million equity investment in its net lease joint venture and the $96 million market value in shares of SAFE.

Since 2014, the Company has invested in new net lease investments primarily through its net lease joint venture with a sovereign wealth fund, in which it holds a 52% interest. At the end of the quarter, the venture's balance sheet, gross of $23 million of accumulated depreciation, included $650 million of assets, $357 million of liabilities and $270 million of equity (net of a $23 million non-controlling interest).

The overall net lease portfolio totaled 16 million square feet across 33 states. Occupancy for the portfolio was 98% at the end of the quarter, with a weighted average remaining lease term of 11.5 years. The net lease portfolio generated an unleveraged yield of 8.1% for the quarter.

Operating Properties

At the end of the quarter, iStar's operating property portfolio totaled $608 million, gross of $54 million of accumulated depreciation, and was comprised of $541 million of commercial and $67 million of residential real estate properties.

Commercial Operating Properties

The Company's commercial operating properties represent a diverse pool of assets across a broad range of geographies and collateral types including office, retail and hotel properties. These properties generated $28.7 million of revenue offset by $20.9 million of operating expenses during the quarter. At the end of the second quarter, the Company had $343 million of stabilized assets and $198 million of transitional assets. iStar generally seeks to reposition transitional assets with the objective of maximizing their values through the infusion of capital and intensive asset management efforts.

Residential Operating Properties

At the end of the quarter, the $67 million residential operating portfolio was comprised of 36 units generally located within luxury projects in major U.S. cities. The Company sold 5 units during the quarter, generating $7.4 million of proceeds and a $0.8 million gain.

Land & Development

At the end of the quarter, the Company's land & development portfolio totaled $925 million, including 8 master planned communities, 6 waterfront projects and 15 urban/infill developments. These projects are collectively entitled for approximately 13,000 lots and units.

For the quarter, the Company's land and development portfolio generated $132.7 million of revenues, offset by $122.5 million of cost of sales. In addition, the Company earned $3.6 million of earnings from land development equity method investments.  During the quarter, the Company invested $29.0 million in its land portfolio.

Sales in the quarter included the conveyance of Bevard, a master planned community in Maryland, to Lennar following a judgment in the Company's favor in a long-standing legal dispute. The Company received a total of $234 million of net proceeds during the quarter which resulted in $123 million of other income and an $8 million income from the land sale.  The Company had previously announced that Lennar had filed a petition with the Court of Appeals with respect to approximately $30 million of post-judgment interest, however that motion was denied. iStar is also entitled to recover attorneys' fees and costs which the Company is pursuing. A third party holds a 4.3% participation interest in all proceeds from the judgment.

Capital Markets and Balance Sheet

The Company is capitalized with unsecured and secured debt, preferred equity and common equity. The chart below shows the capital structure of the Company at quarter end.

 

Capital Structure

$ in millions

 

At June 30, 2017

Secured debt

$717

Unsecured debt

$2,652

Total debt

$3,369

   

Preferred equity (A) (1)

$745

Common equity (B)

$424

Total equity

$1,169

   

Accumulated depreciation and amortization and general loan
loss reserves (2) (C)

$448

   

Adjusted common equity (B) + (C)

$872

Adjusted total equity (A) + (B) + (C)

$1,617

   

(1) Represents liquidation preference value.
(2) Accumulated depreciation and amortization includes iStar's proportionate share of accumulated depreciation and amortization relating to equity method investments.

 

The Company's weighted average cost of debt for the second quarter was 5.5%. The Company's leverage was 1.5x at the end of the quarter, below the Company's targeted range of 2.0x - 2.5x.  The chart below shows the calculation of the Company's leverage.

 

Leverage

$ in millions

 

At June 30, 2017

Book debt

$

3,369

 

Less: Cash and cash equivalents

(954)

 

Net book debt (A)

$

2,415

 
   

Book equity (1)

$

1,169

 

Add: Accumulated depreciation and amortization (2)

430

 

Add: General loan loss reserves

18

 

Sum of book equity, accumulated D&A and general loan
loss reserves (B)

$

1,617

 
   

Leverage (A) / (B)

1.5x

 
   
   

(1) Includes preferred equity.
(2) Accumulated depreciation and amortization includes iStar's proportionate share of accumulated depreciation and amortization relating to equity method investments.

 

Liquidity

At the end of the quarter, iStar had unrestricted cash and capacity on its revolving credit facility of $1.2 billion, which will be available for investment activity, repayment of debt and working capital.

 

Liquidity

 

$ in millions

 

At June 30, 2017

Unrestricted cash

$954

Revolving credit facility capacity

$235

Total liquidity

$1,189

 

Earnings Guidance

The Company's guidance remains:

  • Target net income per diluted common share of $2.15 - $2.65.
  • Target adjusted income per diluted common share of $3.00 - $3.50.

This guidance assumes, among other things, the closing of certain land & development and operating properties that the Company is marketing for sale and that general macro economic conditions continue to remain favorable. Please see the financial tables that follow the text of this press release for a reconciliation from GAAP net income guidance to adjusted income guidance.

*          *          *

iStar (NYSE: STAR) finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. Building on over two decades of experience and more than $35 billion of transactions, iStar brings uncommon capabilities and new ways of thinking to commercial real estate and adapts its investment strategy to changing market conditions. The Company is structured as a real estate investment trust ("REIT"), with a diversified portfolio focused on larger assets located in major metropolitan markets.

iStar logo. (PRNewsFoto/iStar Financial Inc.)

iStar will hold a quarterly earnings conference call at 10:00 a.m. ET today, August 3, 2017. This conference call will be broadcast live over the internet and can be accessed by all interested parties through iStar's website, www.istar.com. To listen to the live call, please go to the website's "Investors" section at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on iStar's website.

Note: Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although iStar believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. The Company undertakes no obligation to update or revise publicly any forward look statements, whether as a result of new information, future events or otherwise. Factors that could cause actual results to differ materially from iStar's expectations include general economic conditions and conditions in the commercial real estate and credit markets, the Company's ability to generate liquidity and to repay indebtedness as it comes due, additional loan loss provisions, the amount and timing of asset sales, changes in NPLs, repayment levels, the Company's ability to make new investments, the Company's ability to maintain compliance with its debt covenants, the Company's ability to generate income and gains from operating properties and land and other risks detailed from time to time in iStar SEC reports.

 

iStar

Consolidated Statements of Operations

(In thousands)

(unaudited)

 
   

Three Months
Ended June 30,

 

For the Six Months
Ended June 30,

   

2017

 

2016

 

2017

 

2016

REVENUES

               

Operating lease income

 

$

47,002

   

$

49,975

   

$

94,349

   

$

100,470

 

Interest income

 

28,645

   

34,400

   

57,703

   

67,620

 

Other income

 

139,510

   

10,096

   

151,374

   

21,636

 

Land development revenue

 

132,710

   

27,888

   

152,760

   

42,835

 

  Total revenues

 

$

347,867

   

$

122,359

   

$

456,186

   

$

232,561

 

COST AND EXPENSES

               

Interest expense

 

$

48,807

   

$

56,047

   

$

99,952

   

$

113,068

 

Real estate expense

 

34,684

   

35,328

   

70,274

   

69,572

 

Land development cost of sales

 

122,466

   

17,262

   

138,376

   

28,838

 

Depreciation and amortization

 

13,171

   

13,673

   

25,451

   

27,581

 

General and administrative(1)

 

27,218

   

19,665

   

52,392

   

42,768

 

(Recovery of) provision for loan losses

 

(600)

   

700

   

(5,528)

   

2,206

 

Impairment of assets

 

10,284

   

3,012

   

14,696

   

3,012

 

Other expense

 

16,276

   

3,182

   

18,145

   

3,922

 

  Total costs and expenses

 

$

272,306

   

$

148,869

   

$

413,758

   

$

290,967

 

  Income (loss) before other items

 

$

75,561

   

$

(26,510)

   

$

42,428

   

$

(58,406)

 

Income (loss) from discontinued operations

 

173

   

3,633

   

4,939

   

7,214

 

Gain from discontinued operations

 

123,418

   

   

123,418

   

 

Income tax expense from discontinued operations

 

(4,545)

   

   

(4,545)

   

 

Income from sales of real estate

 

844

   

43,484

   

8,954

   

53,943

 

Earnings from equity method investments

 

5,515

   

39,447

   

11,217

   

47,714

 

Income tax benefit (expense)

 

(1,644)

   

1,190

   

(2,251)

   

1,604

 

Loss on early extinguishment of debt

 

(3,315)

   

(1,457)

   

(3,525)

   

(1,582)

 

  Net income (loss)

 

$

196,007

   

$

59,787

   

$

180,635

   

$

50,487

 

Net (income) loss attributable to noncontrolling
interests

(5,710)

   

(8,825)

   

(4,610)

   

(7,883)

 

  Net income (loss) attributable to iStar

 

$

190,297

   

$

50,962

   

$

176,025

   

$

42,604

 

Preferred dividends

 

(12,830)

   

(12,830)

   

(25,660)

   

(25,660)

 

Net (income) loss allocable to Participating
Security holders(2)

   

(20)

   

   

(11)

 

  Net income (loss) allocable to common
  shareholders

 

$

177,467

   

$

38,112

   

$

150,365

   

$

16,933

 
           
 

(1) For the three months ended June 30, 2017 and 2016, includes $3,915 and $1,633 of stock-based compensation expense, respectively. For the six months ended June 30, 2017 and 2016, includes $9,796 and $6,211 of stock-based compensation expense, respectively. 

(2) Participating Security holders are non-employee directors who hold common stock equivalents and restricted stock awards granted under the Company's LTIP who are eligible to participate in dividends.

 

 

iStar

Supplemental Information

(In thousands, except per share data)

(unaudited)

 
   

Three Months
Ended June 30,

 

For the Six Months
Ended June 30,

   

2017

 

2016

 

2017

 

2016

ADJUSTED INCOME (1)

               

Reconciliation of Net Income to Adjusted Income

               

Net income (loss) allocable to common shareholders

 

$

177,467

   

$

38,112

   

$

150,365

   

$

16,933

 

Add: Depreciation and amortization

 

15,620

   

17,335

   

30,672

   

34,508

 

Add: (Recovery of) provision for loan losses

 

(600)

   

700

   

(5,528)

   

2,206

 

Add: Impairment of assets

 

10,284

   

3,012

   

14,696

   

3,927

 

Add: Stock-based compensation expense

 

3,915

   

1,633

   

9,796

   

6,211

 

Add: Loss on early extinguishment of debt

 

565

   

1,457

   

775

   

1,582

 

Less: Losses on charge-offs and dispositions

 

(8,811)

   

(1,148)

   

(14,127)

   

(4,563)

 

Less: Participating Security allocation

 

   

(12)

   

   

(28)

 

Adjusted income allocable to common shareholders

 

$

198,440

   

$

61,089

   

$

186,649

   

$

60,776

 
       
 

(1) Adjusted Income allocable to common shareholders should be examined in conjunction with net income (loss) as shown in the Consolidated Statements of Operations. This non-GAAP financial measure should not be considered as an alternative to net income (determined in accordance with GAAP) or to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available to fund the Company's cash needs or available for distribution to shareholders. Rather, Adjusted Income is an additional measure the Company uses to analyze its business performance because it excludes the effects of certain non-cash charges that the Company believes are not necessarily indicative of its operating performance while including the effect of gains or losses on investments when realized.  It should be noted that the Company's manner of calculating this non-GAAP financial measure may differ from the calculations of similarly-titled measures by other companies. Management considers this non-GAAP financial measure as supplemental information to net income in analyzing the performance of our underlying business. Depreciation and amortization includes our proportionate share of depreciation and amortization expense relating to equity method investments and excludes the portion of depreciation and amortization expense allocable to non-controlling interests. Impairment of assets includes impairments on cost and equity method investments recorded in other income and earnings from equity method investments, respectively. Effective in the second quarter 2016, the Company modified its presentation of Adjusted Income to include losses on charge-offs and dispositions of previously impaired or reserved assets to provide a more informative metric for investors to help evaluate our operating performance. Losses on charge-offs and dispositions represents the impact of charge-offs and dispositions realized during the period. These charge-offs and dispositions were taken on assets that were previously impaired for GAAP and reflected in net income but not in Adjusted Income.

 

 

Reconciliation of Adjusted Income per Share Guidance

to Net Income per Share Guidance

 
 

For the Year Ending

 

December 31, 2017

Targeted Net Income per Diluted Common Share Range

$2.15 - $2.65

   

Add: Depreciation and amortization

$0.67 - $0.71

Add: Other non-cash adjustments

$0.54 - $0.58

Less: Losses on charge-offs and dispositions

($0.36) - ($0.44)

   

Targeted Adjusted Income per Diluted Common Share Range

$3.00 - $3.50

 

 

iStar

Earnings Per Share Information

(In thousands, except per share data)

(unaudited)

 
   

Three Months
Ended June 30,

 

For the Six Months
Ended June 30,

   

2017

 

2016

 

2017

 

2016

EPS INFORMATION FOR COMMON SHARES

               

Income (loss) from continuing operations attributable to iStar(1)

       

Basic

 

$

0.81

   

$

0.47

   

$

0.37

   

$

0.13

 

Diluted

 

$

0.69

   

$

0.34

   

$

0.35

   

$

0.13

 

Net income (loss)

               

Basic

 

$

2.46

   

$

0.52

   

$

2.09

   

$

0.22

 

Diluted

 

$

2.04

   

$

0.37

   

$

1.76

   

$

0.22

 

Adjusted income

               

Basic

 

$

2.75

   

$

0.83

   

$

2.59

   

$

0.80

 

Diluted

 

$

2.28

   

$

0.56

   

$

2.17

   

$

0.59

 

Weighted average shares outstanding

               

Basic

 

72,142

   

73,984

   

72,104

   

75,522

 

Diluted (for net income per share)

 

88,195

   

118,510

   

88,156

   

75,872

 

Diluted (for adjusted income per share)

 

88,195

   

118,510

   

88,156

   

120,006

 

Common shares outstanding at end of period

 

72,190

   

71,891

   

72,190

   

71,891

 
                         
 

(1) Including preferred dividends, net (income) loss attributable to noncontrolling interests and income from sales of real estate.

 

 

iStar

Consolidated Balance Sheets

(In thousands)

(unaudited)

 
 

As of

 

As of

 

June 30, 2017

 

December 31, 2016

ASSETS

     
       

Real estate

     

Real estate, at cost

$

1,710,915

   

$

1,740,893

 

Less: accumulated depreciation

(367,933)

   

(353,619)

 

Real estate, net

$

1,342,982

   

$

1,387,274

 

Real estate available and held for sale

68,045

   

237,531

 
 

$

1,411,027

   

$

1,624,805

 

Land and development, net

855,497

   

945,565

 

Loans receivable and other lending investments, net

1,170,565

   

1,450,439

 

Other investments

276,821

   

214,406

 

Cash and cash equivalents

954,279

   

328,744

 

Accrued interest and operating lease income receivable, net

10,501

   

11,254

 

Deferred operating lease income receivable

88,944

   

88,189

 

Deferred expenses and other assets, net

147,121

   

162,112

 

Total assets

$

4,914,755

   

$

4,825,514

 
       

LIABILITIES AND EQUITY

     
       

Accounts payable, accrued expenses and other liabilities

$

230,259

   

$

211,570

 

Loan participations payable, net

107,442

   

159,321

 

Debt obligations, net

3,368,113

   

3,389,908

 

Total liabilities

$

3,705,814

   

$

3,760,799

 
       

Redeemable noncontrolling interests

$

3,585

   

$

5,031

 
       

Total iStar shareholders' equity

$

1,169,278

   

$

1,016,564

 

Noncontrolling interests

36,078

   

43,120

 

Total equity

$

1,205,356

   

$

1,059,684

 
       

Total liabilities and equity

$

4,914,755

   

$

4,825,514

 

 

 

iStar

Segment Analysis

(In thousands)

(unaudited)

 

FOR THE THREE MONTHS ENDED JUNE 30, 2017

           
 

Real
Estate
Finance

 

Net
Lease

 

Operating
Properties

 

Land &
Dev

 

Corporate
/ Other

 

Total

Operating lease income

$

   

$

30,852

   

$

15,940

   

$

210

   

$

   

$

47,002

 

Interest income

28,645

   

   

   

   

   

28,645

 

Other income

479

   

550

   

13,333

   

123,871

   

1,277

   

139,510

 

Land development revenue

   

   

   

132,710

   

   

132,710

 

Earnings from equity method
investments

   

1,080

   

469

   

3,606

   

360

   

5,515

 

Income from disc. operations

   

173

   

   

   

   

173

 

Gains from disc. operations

   

123,418

   

   

   

   

123,418

 

Income from sales of real
estate

   

   

844

   

   

   

844

 

Total revenue and other
earnings

$

29,124

   

$

156,073

   

$

30,586

   

$

260,397

   

$

1,637

   

$

477,817

 

Real estate expense

   

(4,064)

   

(22,653)

   

(7,967)

   

   

(34,684)

 

Land development cost of
sales

   

   

   

(122,466)

   

   

(122,466)

 

Other expense

(399)

   

   

   

   

(15,877)

   

(16,276)

 

Allocated interest expense

(10,508)

   

(13,669)

   

(5,006)

   

(7,122)

   

(12,502)

   

(48,807)

 

Allocated G&A(1)

(4,691)

   

(5,921)

   

(2,364)

   

(5,004)

   

(5,323)

   

(23,303)

 

Segment profit (loss)

$

13,526

   

$

132,419

   

$

563

   

$

117,838

   

$

(32,065)

   

$

232,281

 
                       
 

(1) Excludes $3,915 of stock-based compensation expense.

 

AS OF JUNE 30, 2017

                     
 

Real
Estate
Finance

 

Net
Lease

 

Operating
Properties

 

Land &
Dev

 

Corporate
/ Other

 

Total

Real estate

                     

Real estate, at cost

$

   

$

1,177,779

   

$

533,136

   

$

   

$

   

$

1,710,915

 

Less: accumulated
depreciation

   

(314,373)

   

(53,560)

   

   

   

(367,933)

 

Real estate, net

$

   

$

863,406

   

$

479,576

   

$

   

$

   

$

1,342,982

 

Real estate available
and held for sale

   

924

   

67,121

   

   

   

68,045

 

Total real estate

$

   

$

864,330

   

$

546,697

   

$

   

$

   

$

1,411,027

 

Land & development, net

   

   

   

855,497

   

   

855,497

 

Loans receivable and other
lending investments, net

1,170,565

   

   

   

   

   

1,170,565

 

Other investments

   

179,284

   

7,882

   

62,417

   

27,238

   

276,821

 

Total portfolio assets

$

1,170,565

   

$

1,043,614

   

$

554,579

   

$

917,914

   

$

27,238

   

$

3,713,910

 

Cash and other assets

                   

1,200,845

 

  Total assets

                   

$

4,914,755

 

 

 

iStar

Supplemental Information

(In thousands)

(unaudited)

 
       

Three Months Ended
June 30, 2017

OPERATING STATISTICS

         
           

Expense Ratio

       

General and administrative expenses - trailing twelve months (A)

   

$

93,651

 

Average total assets (B)

     

$

5,096,440

 

Expense Ratio (A) / (B)

     

1.8%

 
           
       

As of

       

June 30, 2017

UNENCUMBERED ASSETS / UNSECURED DEBT

         
           

Unencumbered assets (C)(1)

     

$

3,911,045

 

Unsecured debt (D)

     

$

2,670,000

 

Unencumbered Assets / Unsecured Debt (C) / (D)

     

1.5x

 
         

UNFUNDED COMMITMENTS

         
           

Performance-based commitments(2)

     

$

342,921

 

Strategic investments

     

45,634

 

Total Unfunded Commitments

     

$

388,555

 
           

LOAN RECEIVABLE CREDIT STATISTICS

As of

 

June 30, 2017

 

December 31, 2016

           

Carrying value of NPLs /

         

As a percentage of total carrying value of loans

$

188,670

 

17.4%

   

$

191,696

 

14.0%

 
           

Total reserve for loan losses /

         

As a percentage of total gross carrying value of loans(3)

$

78,789

 

6.8%

   

$

85,545

 

5.9%

 
                       
 

(1) Unencumbered assets are calculated in accordance with the indentures governing the Company's unsecured debt securities.

(2) Excludes $130.3 million of commitments on loan participations sold that are not the obligation of the Company but are consolidated on the Company's balance sheet.

(3) Gross carrying value represents iStar's carrying value of loans, gross of loan loss reserves.

 

 

iStar

Supplemental Information

(In millions)

(unaudited)

 

PORTFOLIO STATISTICS AS OF JUNE 30, 2017(1)

                         

Property Type

 

Real
Estate
Finance

 

Net Lease

 

Operating
Properties

 

Land &
Dev

 

Total

 

% of
Total

Land & Development

 

$

   

$

   

$

   

$

925

   

$

925

   

22

%

Office / Industrial

 

37

   

761

   

123

   

   

921

   

22

%

Entertainment / Leisure

 

   

490

   

   

   

490

   

12

%

Mixed Use / Collateral

 

297

   

   

180

   

   

477

   

11

%

Hotel

 

338

   

   

103

   

   

441

   

11

%

Condominium

 

258

   

   

66

   

   

324

   

8

%

Other Property Types

 

229

   

   

   

   

229

   

6

%

Retail

 

29

   

57

   

136

   

   

222

   

5

%

Ground Leases

 

   

96

   

   

   

96

   

2

%

Strategic Investments

 

   

   

   

   

27

   

1

%

Total

 

$

1,188

   

$

1,404

   

$

608

   

$

925

   

$

4,153

   

100

%

                         

Geography

 

Real
Estate
Finance

 

Net Lease

 

Operating
Properties

 

Land &
Dev

 

Total

 

% of
Total

Northeast

 

$

569

   

$

399

   

$

47

   

$

258

   

$

1,273

   

30

%

West

 

98

   

312

   

43

   

365

   

818

   

20

%

Southeast

 

175

   

250

   

147

   

124

   

696

   

17

%

Southwest

 

60

   

160

   

243

   

22

   

485

   

12

%

Central

 

188

   

98

   

72

   

32

   

390

   

9

%

Mid-Atlantic

 

   

154

   

47

   

124

   

325

   

8

%

Various

 

98

   

31

   

10

   

   

139

   

3

%

Strategic Investments

 

   

   

   

   

27

   

1

%

Total

 

$

1,188

   

$

1,404

   

$

608

   

$

925

   

$

4,153

   

100

%

                           
 

(1) Based on carrying value of the Company's total investment portfolio, gross of accumulated depreciation, general loan loss reserves and market value of its investment in shares of SAFE stock.

 

 

 

View original content with multimedia:http://www.prnewswire.com/news-releases/istar-announces-second-quarter-2017-results-300499012.html

SOURCE iStar

Company Contact: Jason Fooks, Vice President of Investor Relations & Marketing; 1114 Avenue of the Americas, New York, NY 10036, (212) 930-9400, investors@istar.com