Earnings Report 183.1 KB
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08/03/2010
iStar Financial Announces Second Quarter 2010 Results
iStar Financial Announces Second Quarter 2010 Results
- Company completes sale of portfolio comprised of 32 corporate tenant lease assets; recognizes $250.3 million gain associated with transaction; book value increases to $13.72 per common share.
- Company retires $1.8 billion of debt during the quarter.
- Adjusted earnings (loss) allocable to common shareholders for the second quarter 2010 was ($83.4) million, or ($0.89) per diluted common share.
- Net income allocable to common shareholders for the second quarter 2010 was $212.3 million, or $2.27 per diluted common share.
- Company recorded $109.4 million of loan loss provisions during the quarter versus $89.5 million in the prior quarter.
NEW YORK, Aug 03, 2010 /PRNewswire via COMTEX/ -- iStar Financial Inc. (NYSE: SFI), a publicly traded finance company focused on the commercial real estate industry, today reported results for the second quarter ended June 30, 2010.
Second Quarter 2010 Results
iStar reported adjusted earnings (loss) allocable to common shareholders for the second quarter of ($83.4) million or ($0.89) per diluted common share, compared with ($250.1) million or ($2.51) per diluted common share for the second quarter 2009. Adjusted earnings (loss) represents net income (loss) computed in accordance with GAAP, adjusted primarily for preferred dividends, depreciation and amortization and gain (loss) from discontinued operations. Adjusted earnings does not include the $250.3 million, or $2.60 per diluted common share, gain associated with the portfolio sale of 32 corporate tenant lease properties completed during the quarter.
Net income (loss) allocable to common shareholders for the second quarter, inclusive of the $250.3 million gain on the CTL portfolio sale, was $212.3 million, or $2.27 per diluted common share, compared to ($284.2) million or ($2.85) per diluted common share for the second quarter 2009. Please see the financial tables that follow the text of this press release for a detailed reconciliation of adjusted earnings (loss) to GAAP net income (loss).
Revenues for the second quarter 2010 were $136.8 million versus $193.1 million for the second quarter 2009. The year-over-year decrease is primarily due to a reduction of interest income resulting from performing loans moving to non-performing status and, to a lesser extent, a smaller asset base resulting from loan repayments and sales.
Net investment income for the second quarter was $129.8 million compared to $275.9 million for the second quarter 2009. The year-over-year decrease is primarily due to decreased net gains on early extinguishment of debt in the quarter, as well as lower interest income as discussed above, offset by lower interest expense and increased earnings from equity method investments. Gains on early extinguishment of debt for the prior year period included $107.9 million of gains associated with the bond exchange completed in the second quarter 2009. Net investment income represents interest income, operating lease income, earnings (loss) from equity method investments and net gain on early extinguishment of debt, less interest expense and operating costs for corporate tenant lease assets.
During the second quarter, the Company completed the sale of a portfolio of 32 corporate tenant lease (CTL) properties resulting in net proceeds of $1.33 billion. In addition, the Company received $508.8 million in gross principal repayments; generated $82.7 million of proceeds from loan sales; $74.0 million of net proceeds from sales of other real estate owned (OREO) assets; and $69.5 million of net proceeds from the sale of four additional corporate tenant lease assets. Of the gross principal repayments and asset sales, $116.3 million was utilized to pay the A-participation interest associated with the Fremont portfolio down to $135.2 million. Additionally during the quarter, the Company funded a total of $131.0 million under pre-existing commitments and provided a $105.6 million mezzanine loan associated with the CTL portfolio sale, of which $25.0 million was repaid subsequent to quarter-end.
The Company's leverage, calculated as book debt net of unrestricted cash and cash equivalents, divided by the sum of book equity, accumulated depreciation and loan loss reserves, each as determined in accordance with GAAP, was 2.4x at June 30, 2010, down from 2.8x at the end of the prior quarter. The Company's net finance margin, calculated as the rate of return on assets less the cost of debt, was 1.62% for the quarter, versus 2.23% in the prior quarter.
Capital Markets
As of June 30, 2010, the Company had $531.5 million of unrestricted cash versus $640.9 million at the end of the prior quarter.
During the quarter, the Company retired a total of $1.76 billion of debt. Specifically, the Company repurchased $234.9 million par value of its senior unsecured notes and redeemed a total of $282.3 million par value of its 2011 and 2014 senior secured notes. In addition, the Company repaid a $947.9 million term loan which was collateralized primarily by the portfolio of 32 CTL assets sold during the quarter. Also, the Company repaid $290.8 million of other outstanding indebtedness during the quarter, including its 5.375% Senior Unsecured Notes due April 2010. For the quarter, the Company recorded an aggregate net gain on early extinguishment of debt of $70.1 million.
Risk Management
At June 30, 2010, first mortgages, participations in first mortgages, senior loans and corporate tenant lease investments collectively comprised 77.4% of the Company's asset base, versus 82.3% in the prior quarter. The Company's loan portfolio consisted of 70.5% floating rate loans and 29.5% fixed rate loans, with a weighted average maturity of 2.2 years.
At the end of the quarter, the weighted average last dollar loan-to-value ratio for all structured finance assets was 84.0%. The Company's corporate tenant lease assets were 87.7% leased with a weighted average remaining lease term of 13.0 years. At June 30, 2010, the weighted average risk ratings of the Company's structured finance and corporate tenant lease assets were 3.90 and 2.76, versus 3.93 and 2.57, respectively, in the prior quarter.
As of June 30, 2010, the Company had 14 loans on its watch list representing $1.03 billion or 13.8% of total managed loans, compared to 12 loans representing $673.9 million or 8.1% of total managed loans in the prior quarter. Assets on the Company's watch list are all performing loans. Managed loan value represents iStar's carrying value of loans, gross of specific reserves and the A-participation interest outstanding on Fremont portfolio assets. The Company's total managed loan value at quarter end was $7.41 billion.
At the end of the second quarter, 63 of the Company's 195 total loans were on non-performing loan (NPL) status. These loans represent $2.96 billion or 39.9% of total managed loans, compared to 72 loans representing $3.50 billion or 42.3% of total managed loans in the prior quarter. At the end of the quarter, the Company charged-off $87.5 million against its reserve for loan losses related to restructurings, loan sales and repayments.
During the quarter, the Company took title to nine properties that had an aggregate managed loan value of $384.8 million prior to foreclosure. This resulted, at the end of the quarter, in $146.8 million of charge-offs against the Company's reserve for loan losses. Additionally, the Company recorded $12.2 million of additional impairments on its OREO portfolio.
At the end of the second quarter, the Company held 49 assets, representing a gross book value of $1.53 billion, which had previously served as collateral for certain of its loan assets. Of these assets, $890.9 million were classified as OREO and considered held for sale based on management's current intention to market and sell the assets in the near term. The remaining $641.5 million were classified as real estate held for investment (REHI) based on management's current strategy to hold, operate or develop these assets over a longer term.
At the end of the second quarter, the Company recorded $109.4 million in loan loss provisions. At June 30, 2010, loan loss reserves totaled $1.18 billion or 15.9% of total managed loans. This compares to loan loss reserves of $1.31 billion or 15.8% of total managed loans at March 31, 2010.
[Financial Tables to Follow]
* * *
iStar Financial Inc. is a publicly traded finance company focused on the commercial real estate industry. The Company primarily provides custom-tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust ("REIT"), provides innovative and value added financing solutions to its customers.
iStar Financial will hold a quarterly earnings conference call at 10:00 a.m. ET today, August 3, 2010. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through iStar Financial's website, http://www.istarfinancial.com/, under the "Investor Relations" section. To listen to the live call, please go to the website's "Investor Relations" section at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the iStar Financial website.
(Note: Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although iStar Financial Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from iStar Financial Inc.'s expectations include the amount and timing of additional loan loss provisions, the amount and timing of asset sales (including OREO assets), continued increases in NPLs, repayment levels, the Company's ability to reduce its indebtedness at a discount, the Company's ability to generate liquidity and to repay indebtedness as it comes due, the Company's ability to maintain compliance with its debt covenants, economic conditions, the availability of liquidity for commercial real estate transactions and other risks detailed from time to time in iStar Financial Inc.'s SEC reports.)
iStar Financial Inc.
Selected Income Statement Data
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----
Net investment income (1) $129,755 $275,862 $250,016 $514,739
Other income 5,962 5,557 14,253 8,064
Non-interest expense (2) (182,703) (565,834) (334,227) (910,083)
Income (loss) from
continuing operations ($46,986) ($284,415) ($69,958) ($387,280)
-------- --------- -------- ---------
Income from discontinued
operations 10,877 2,442 17,704 6,618
Gain from discontinued
operations 265,960 - 265,960 11,617
-------- --------- -------- ---------
Net income (loss) $229,851 ($281,973) $213,706 ($369,045)
======== ========= ======== =========
(1) Includes interest income, operating lease income, earnings (loss)
from equity method investments and gain on early extinguishment of debt,
net, less interest expense and operating costs for corporate tenant
lease assets.
(2) Includes depreciation and amortization, general and administrative
expenses, provision for loan losses, impairments and other expenses.
iStar Financial Inc.
Selected Balance Sheet Data
(In thousands)
(unaudited)
As of As of
June 30, 2010 December 31, 2009
------------- -----------------
Loans and other lending
investments, net $6,115,092 $7,661,562
Corporate tenant lease
assets, net $1,849,423 $2,885,896
Real estate held for
investment, net $636,239 $422,664
Other real estate owned $890,881 $839,141
Total assets $10,653,904 $12,810,575
Debt obligations, net $8,619,955 $10,894,903
Total liabilities $8,802,892 $11,147,013
Total equity $1,843,571 $1,656,118
iStar Financial Inc.
Consolidated Statements of Operations
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----
REVENUES
Interest income $86,469 $142,181 $203,085 $319,408
Operating lease
income 44,365 45,351 89,264 92,429
Other income 5,962 5,557 14,253 8,064
-------- -------- -------- --------
Total revenues $136,796 $193,089 $306,602 $419,901
-------- -------- -------- --------
COSTS AND EXPENSES
Interest expense $82,313 $110,532 $169,529 $225,162
Operating costs -
corporate tenant
lease assets 2,570 3,881 6,764 8,556
Depreciation and
amortization 16,726 16,034 32,867 30,910
General and
administrative (1) 25,114 33,691 52,330 69,314
Provision for loan
losses 109,359 435,016 198,828 693,112
Impairment of other
assets 12,195 22,232 13,209 47,563
Other expense 19,309 58,861 36,993 69,184
-------- -------- -------- --------
Total costs and
expenses $267,586 $680,247 $510,520 $1,143,801
-------- -------- -------- ----------
Income (loss) from
continuing
operations before
other items ($130,790) ($487,158) ($203,918) ($723,900)
Gain on early
extinguishment of
debt, net 70,054 200,879 108,780 355,256
Earnings (loss) from
equity method
investments 13,750 1,864 25,180 (18,636)
------ ----- ------ -------
Income (loss) from
continuing
operations ($46,986) ($284,415) ($69,958) ($387,280)
Income from
discontinued
operations 10,877 2,442 17,704 6,618
Gain from
discontinued
operations 265,960 - 265,960 11,617
-------- -------- -------- --------
Net income (loss) $229,851 ($281,973) $213,706 ($369,045)
-------- --------- -------- ---------
Net (income) loss
attributable to
noncontrolling
interests (544) 271 1 1,514
-------- -------- -------- --------
Net income (loss)
attributable to
iStar Financial
Inc. $229,307 ($281,702) $213,707 ($367,531)
-------- --------- -------- ---------
Preferred dividends (10,580) (10,580) (21,160) (21,160)
Net income (loss)
allocable to common
shareholders,
HPU holders and
Participating
Security holders
(2) $218,727 ($292,282) $192,547 ($388,691)
======== ========= ======== =========
(1) For the three months ended June 30, 2010 and 2009, includes
$4,984 and $7,500 of stock-based compensation expense,
respectively. For the six months ended June 30, 2010 and 2009, includes
$9,714 and $13,051 of stock-based compensation expense, respectively.
(2) HPU holders are current and former Company employees who
purchased high performance common stock units under the Company's
High Performance Unit Program. Participating Security holders are
Company employees and directors who hold unvested restricted stock
units and common stock equivalents under the Company's Long Term
Incentive Plan.
iStar Financial Inc.
Earnings Per Share Information
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----
EPS INFORMATION FOR COMMON
SHARES
Income (loss) attributable
to iStar Financial Inc.
from continuing operations
(1) (2)
Basic and diluted ($0.60) ($2.87) ($0.94) ($3.85)
Net income (loss)
attributable to iStar
Financial Inc. (1)
Basic and diluted $2.27 ($2.85) $2.00 ($3.68)
Weighted average shares
outstanding
Basic and diluted 93,382 99,769 93,651 102,671
EPS INFORMATION FOR HPU
SHARES
Income (loss) attributable
to iStar Financial Inc.
from continuing operations
(1) (2)
Basic and diluted ($114.27) ($543.53) ($177.33) ($729.81)
Net income (loss)
attributable to iStar
Financial Inc. (1) (3)
Basic and diluted $430.13 ($539.00) $378.93 ($697.07)
Weighted average shares
outstanding
Basic and diluted 15 15 15 15
(1) For the three months ended June 30, 2010 and 2009, excludes
preferred dividends of $10,580. For the six months
ended June 30, 2010 and 2009, excludes preferred dividends of $21,160.
(2) Income (loss) attributable to iStar Financial Inc. from
continuing operations excludes net (income) loss from
noncontrolling interests.
(3) For the three months ended June 30, 2010 and 2009, net income
(loss) allocable to HPU holders was $6,452 and ($8,085), respectively,
on both a basic and dilutive basis. For the six months ended June 30,
2010 and 2009, net income (loss) allocable to HPU holders was $5,684
and ($10,456), respectively, on both a basic and dilutive basis.
iStar Financial Inc.
Reconciliation of Adjusted Earnings to GAAP Net Income
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----
ADJUSTED EARNINGS (1)
Net income (loss) $229,851 ($281,973) $213,706 ($369,045)
Add: Depreciation and
amortization 16,934 24,579 38,687 48,078
Add: Joint venture
depreciation and
amortization 1,848 3,506 3,731 14,194
Add: Impairment of
goodwill and
intangible assets - - - 4,186
Add: Net (income) loss
attributable to
noncontrolling
interests (544) 271 1 1,514
Less: Gain from
discontinued
operations (265,960) - (265,960) (11,617)
Less: Deferred
financing amortization (57,518) 6,966 (79,905) 12,126
Less: Preferred
dividends (10,580) (10,580) (21,160) (21,160)
Adjusted earnings
(loss) allocable to
common shareholders,
HPU holders and
Participating Security
holders:
Basic and Diluted (2) ($85,969) ($257,231) ($110,900) ($321,724)
Adjusted earnings
(loss) per common
share:
Basic and Diluted ($0.89) ($2.51) ($1.15) ($3.05)
Weighted average common
shares outstanding:
Basic and Diluted 93,382 99,769 93,651 102,671
Common shares
outstanding at end of
period: 93,382 99,618 93,382 99,618
(1) Adjusted earnings should be examined in conjunction with net income
(loss) as shown in the Consolidated Statements of Operations. Adjusted
earnings should not be considered as an alternative to net income (loss)
(determined in accordance with GAAP) as an indicator of the Company's
performance, or to cash flows from operating activities (determined in
accordance with GAAP) as a measure of the Company's liquidity, nor is
this measure indicative of funds available to fund the Company's cash
needs or available for distribution to shareholders. Rather, adjusted
earnings is an additional measure the Company uses to analyze how its
business is performing. It should be noted that the Company's manner of
calculating adjusted earnings may differ from the calculations of
similarly-titled measures by other companies.
(2) For the three months ended June 30, 2010 and 2009, adjusted earnings
(loss) allocable to HPU holders was ($2,536) and ($7,115), respectively,
on both a basic and dilutive basis. For the six months ended June 30,
2010 and 2009, adjusted earnings (loss) allocable to HPU holders was
($3,267) and ($8,655), respectively, on both a basic and dilutive basis.
iStar Financial Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
June 30, December 31,
2010 2009
--------- -------------
ASSETS
Loans and other lending investments, net $6,115,092 $7,661,562
Corporate tenant lease assets, net 1,849,423 2,885,896
Other investments 422,203 433,130
Real estate held for investment, net 636,239 422,664
Other real estate owned 890,881 839,141
Assets held for sale - 17,282
Cash and cash equivalents 531,520 224,632
Restricted cash 12,744 39,654
Accrued interest and operating lease income
receivable, net 50,929 54,780
Deferred operating lease income receivable 65,825 122,628
Deferred expenses and other assets, net 79,048 109,206
Total assets $10,653,904 $12,810,575
=========== ===========
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other
liabilities $182,937 $252,110
Debt obligations, net:
Unsecured senior notes 3,548,148 4,228,908
Secured senior notes 437,558 856,071
Unsecured revolving credit facilities 739,395 748,601
Secured revolving credit facilities 943,664 959,426
Secured term loans 2,853,060 4,003,786
Other debt obligations 98,130 98,111
Total liabilities $8,802,892 $11,147,013
Redeemable noncontrolling interests 7,441 7,444
Total iStar Financial Inc. shareholders'
equity 1,796,969 1,605,685
Noncontrolling interests 46,602 50,433
Total equity 1,843,571 1,656,118
Total liabilities and equity $10,653,904 $12,810,575
=========== ===========
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
As of
June 30,
PERFORMANCE STATISTICS 2010
---------
Net Finance Margin
------------------
Weighted average GAAP yield on loan and CTL investments 5.71%
Less: Cost of debt 4.09%
----
Net Finance Margin (1) 1.62%
Return on Average Common Book Equity
------------------------------------
Average total book equity $1,685,686
Less: Average book value of preferred equity (506,176)
--------
Average common book equity (A) $1,179,510
Net income allocable to common shareholders, HPU holders
and Participating Security holders $218,727
Annualized (2) (B) $77,028
Return on Average Common Book Equity (B) / (A) 6.5%
Adjusted basic earnings (loss) allocable to common
shareholders, HPU holders and Participating Security
holders (3) ($85,969)
Annualized (C) ($343,876)
Adjusted Return on Average Common Book Equity (C) / (A) Neg
Expense Ratio (4)
-----------------
General and administrative expenses (D) $25,116
Total revenue (E) $164,471
Expense Ratio (D) / (E) 15.3%
(1) Weighted average GAAP yield is the annualized sum of interest
income and operating lease income, divided by the sum of average gross
corporate tenant lease assets, average loans and other lending
investments and average assets held for sale over the period. Cost of
debt is the annualized sum of interest expense and operating costs-
corporate tenant lease assets, divided by the average gross debt
obligations over the period. Operating lease income, operating
costs-corporate tenant lease assets and interest expense exclude
adjustments from discontinued operations of $27,673, $1,612 and $14,466,
respectively. The Company does not consider net finance margin to be a
measure of the Company's liquidity or cash flows. It is one of several
measures that management considers to be an indicator of the
profitability of its operations.
(2) Net income allocable to common shareholders, HPU holders and
Participating Security holders on an annualized basis is computed without
annualizing the gain from discontinued operations.
(3) Adjusted earnings should be examined in conjunction with net
income (loss) as shown in the Consolidated Statements of Operations.
Adjusted earnings should not be considered as an alternative to net
income (loss) (determined in accordance with GAAP) as an indicator of the
Company's performance, or to cash flows from operating activities
(determined in accordance with GAAP) as a measure of the Company's
liquidity, nor is this measure indicative of funds available to fund the
Company's cash needs or available for distribution to shareholders.
Rather, adjusted earnings is an additional measure the Company uses to
analyze how its business is performing. It should be noted that the
Company's manner of calculating adjusted earnings may differ from the
calculations of similarly-titled measures by other companies.
(4) General and administrative expenses and total revenue exclude
adjustments from discontinued operations of $2 and $27,675, respectively.
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
As of
June 30,
CREDIT STATISTICS 2010
---------
Book debt, net of unrestricted cash and cash
equivalents (A) $8,088,435
Book equity $1,843,571
Add: Accumulated depreciation and loan loss reserves 1,524,083
Sum of book equity, accumulated depreciation and loan
loss reserves (B) $3,367,654
Leverage (1) (A) / (B) 2.4x
Ratio of Earnings to Fixed Charges 0.4x
Ratio of Earnings to Fixed Charges and Preferred
Stock Dividends 0.4x
Covenant Calculation of Fixed Charge Coverage Ratio
(2) 2.1x
Interest Coverage
-----------------
EBITDA (3) (C) $346,204
Interest expense and preferred dividends (D) $107,358
EBITDA /Interest Expense and Preferred Dividends (3)
(C) /(D) 3.2x
RECONCILIATION OF NET INCOME TO EBITDA (3)
Net income (loss) $229,851
Add: Interest expense (4) 96,778
Add: Depreciation and amortization (4) 16,934
Add: Income taxes 793
Add: Joint venture depreciation and amortization 1,848
EBITDA (3) $346,204
(1) Leverage is calculated by dividing book debt net of unrestricted
cash and cash equivalents by the sum of book equity, accumulated
depreciation and loan loss reserves.
(2) This measure, which is a trailing twelve-month calculation and
excludes the effect of impairment charges and other non-cash items, is
consistent with covenant calculations included in the Company's
secured credit facilities; therefore, we believe it is a useful measure
for investors to consider.
(3) EBITDA should be examined in conjunction with net income (loss)
as shown in the Consolidated Statements of Operations. EBITDA should not
be considered as an alternative to net income (loss) (determined in
accordance with GAAP) as an indicator of the Company's performance, or
to cash flows from operating activities (determined in accordance with
GAAP) as a measure of the Company's liquidity, nor is this measure
indicative of funds available to fund the Company's cash needs or
available for distribution to shareholders. It should be noted that the
Company's manner of calculating EBITDA may differ from the calculations
of similarly-titled measures by other companies.
(4) Interest expense and depreciation and amortization exclude
adjustments from discontinued operations of $14,466 and $417,
respectively.
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
As of
UNFUNDED COMMITMENTS June 30, 2010
-------------
Number of assets with unfunded commitments 73
Performance-based commitments $218,679
Discretionary fundings 251,843
Strategic investments 61,022
Total Unfunded Commitments $531,544
UNENCUMBERED ASSETS / UNSECURED DEBT
Unencumbered assets (A) $6,516,292
Unsecured debt (B) $4,424,372
Unencumbered Assets / Unsecured Debt (A) / (B) 1.5x
RISK MANAGEMENT STATISTICS
(weighted average risk rating)
2010 2009
------------ ---------------------
June Mar. Dec. Sept. June
30, 31, 31, 30, 30,
------------ ---------------------
Structured Finance Assets
(principal risk) 3.90 3.93 3.92 3.91 3.90
Corporate Tenant Lease Assets 2.76 2.57 2.59 2.60 2.59
LOANS AND OTHER LENDING INVESTMENTS CREDIT STATISTICS
As of
-------------------------------------------
June 30, 2010 December 31, 2009
------------------- -------------------
Value of non-performing
loans (1) /
As a percentage
of total
managed loans $2,956,158 39.9 % $4,209,255 45.3 %
Reserve for loan
losses /
As a percentage
of total
managed loans $1,181,288 15.9 % $1,417,949 15.3 %
As a percentage
of non-
performing
loans (1) 40.0 % 33.7 %
(1) Non-performing loans include iStar's book value and Fremont's A-
participation interest on the associated assets.
iStar Financial Inc.
Supplemental Information
(In millions)
(unaudited)
PORTFOLIO STATISTICS AS
OF JUNE 30, 2010 (1)
% of
Asset Type Total Total
---------- ----- -----
First Mortgages /
Senior Loans $6,495 57.6%
Corporate Tenant
Leases 2,227 19.8%
Other Real Estate
Owned 891 7.9%
Mezzanine /
Subordinated Debt 802 7.1%
Real Estate Held
for Investment 642 5.7%
Other Investments 211 1.9%
Total $11,268 100.0%
======= =====
% of
Geography Total Total
--------- ----- -----
West $2,442 21.7%
Southeast 2,083 18.5%
Northeast 1,817 16.1%
Mid-Atlantic 1,050 9.3%
Southwest 934 8.3%
Various 742 6.6%
Central 647 5.7%
International 531 4.7%
South 367 3.3%
Northwest 346 3.1%
Northcentral 309 2.7%
Total $11,268 100.0%
======= =====
% of
Property Type Performing CTLs NPLs OREO REHI Total Total
Loans &
------------- Other ---- ---- ---- ---- ----- -----
--------
Condo:
Construction -
Completed $716 $- $554 $395 $- $1,665 14.8%
Construction -In
Progress 568 - 168 21 - 757 6.7%
Conversion 91 - 37 113 - 241 2.1%
--- --- --- --- --- --- ---
Subtotal Condo 1,375 - 759 529 - 2,663 23.6%
Land 431 59 848 111 454 1,903 16.9%
Retail 608 184 312 46 9 1,159 10.3%
Office 246 638 53 - 7 944 8.4%
Entertainment /
Leisure 158 483 268 - - 909 8.1%
Industrial / R&D 208 618 27 5 50 908 8.1%
Hotel 364 184 89 50 70 757 6.7%
Mixed Use /Mixed
Collateral 206 40 316 69 22 653 5.8%
Corporate -Real
Estate 366 - 166 - - 532 4.7%
Other (2) 499 21 2 - - 522 4.6%
Multifamily 166 - 41 81 30 318 2.8%
Total $4,627 $2,227 $2,881 $891 $642 $11,268 100.0%
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(1) Based on carrying value of the Company's total investment
portfolio, gross of loan loss reserves and accumulated depreciation.
(2) Performing loans and other includes $211 million of other investments.
SOURCE iStar Financial Inc.
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