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07/18/2008

iStar Financial Provides Estimates for Second Quarter Earnings

Preliminary Earnings Estimates Reflect Increased Loan Provisions

Company to Recognize $300 Million of Gains on Sale of Assets

Company Maintains Liquidity of $1.4 Billion at Quarter End

NEW YORK, July 18 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI), a leading publicly traded finance company focused on the commercial real estate industry, announced today that continued market deterioration will impact second quarter earnings.

Based on preliminary estimates for the second quarter, the Company expects to record loan loss provisions of approximately $275 million, including $215 million of asset specific provisions. In addition, the Company expects to record approximately $50 million of mark-to-market impairments and approximately $50 million in write-offs of goodwill and certain intangibles, as well as approximately $300 million of gains associated with recently completed assets sales within the Company's Timber and AutoStar portfolio.

"While we are pleased with the realized gains from asset sales this quarter, particularly in our timber portfolio, we believe it is prudent to increase our provision for loan losses based on our recently completed risk ratings review and on the continued deterioration of the credit markets and overall economy," said Jay Sugarman, iStar Financial's chairman and chief executive officer.

Catherine D. Rice, iStar's chief financial officer, noted that the Company currently has approximately $1.4 billion of cash and available capacity on its credit facilities and is in compliance with all of its bank and bond covenants.

Based upon preliminary estimates, the Company expects to report net income per share in the range of $0.05 - $0.15 and adjusted earnings (loss) per share in the range of ($1.45) - ($1.55) when its second quarter results are announced on July 31, 2008. Adjusted earnings does not include the $300 million in asset sales completed in the quarter.

The Company will host a 30-minute conference call at 9:00 am ET today, July 18, to discuss these preliminary results. The conference call may be accessed domestically by dialing (888) 423-3275 or internationally by dialing (612) 332-0725; no passcode is required. The replay will be available through August 1, 2008 domestically by dialing (800) 475-6701 and internationally by dialing (320) 365-3844; passcode 954493.

In addition, the conference call will be broadcast live over the Internet and can be accessed by all interested parties through iStar Financial's website, www.istarfinancial.com, under the "Investor Relations" section. To listen to the live call, please go to the website's "Investor Relations" section at least 15 minutes prior to the start of the call to register. 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.

iStar Financial Inc. is a leading publicly traded finance company focused on the commercial real estate industry. The Company primarily provides custom-tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust ("REIT"), seeks to deliver strong dividends and superior risk-adjusted returns on equity to shareholders by providing innovative and value added financing solutions to its customers. Additional information on iStar Financial is available on the Company's website at www.istarfinancial.com.

SOURCE iStar Financial Inc.

CONTACT:
Catherine D. Rice, Chief Financial Officer
or
Andrew G. Backman, Senior Vice President - Investor Relations
both of iStar Financial Inc.
1-212-930-9400
Web site: http://www.istarfinancial.com

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