Sagicor Financial (LSE:SFI)
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- Adjusted earnings (loss) allocable to common shareholders for the first quarter was ($64.0) million, or ($0.61) per diluted common share.
NEW YORK, April 30 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI), a leading publicly traded finance company focused on the commercial real estate industry, today reported results for the first quarter ended March 31, 2009.
iStar reported adjusted earnings (loss) allocable to common shareholders for the first quarter of ($64.0) million or ($0.61) per diluted common share, compared with $116.5 million or $0.86 per diluted common share for the first quarter 2008. Adjusted earnings (loss) represents net income computed in accordance with GAAP, adjusted primarily for preferred dividends, depreciation, depletion, amortization, impairments of goodwill and intangible assets, and gain (loss) from discontinued operations.
Net income (loss) allocable to common shareholders for the first quarter was ($93.9) million, or ($0.89) per diluted common share, compared to $71.6 million or $0.53 per diluted common share for the first quarter 2008. Please see the financial tables that follow the text of this press release for a detailed reconciliation of adjusted earnings to GAAP net income.
Revenues for the first quarter 2009 were $258.4 million versus $412.3 million for the first quarter 2008. The year-over-year decrease is primarily due to a reduction of interest income resulting from an increase in non-performing loans (NPLs) and lower interest rates, as well as a reduction in other income.
Net investment income for the quarter was $252.0 million compared to $176.8 million for the first quarter 2008. The year-over-year increase is primarily due to gains on the early extinguishment of debt, offset by lower interest income resulting from an increase in the Company's NPLs. Net investment income represents interest income, operating lease income, earnings (loss) from equity method investments and gain on early extinguishment of debt, less interest expense and operating costs for corporate tenant lease assets.
During the quarter, the Company received $470.0 million in gross principal repayments. Additionally, the Company generated proceeds of $265.6 million from loan sales; $32.4 million of net proceeds from corporate tenant lease (CTL) asset sales; and $73.3 million of net proceeds from other real estate owned (OREO) asset sales. Of the gross principal repayments and asset sales, $283.6 million was utilized to pay down the A-participation interest associated with the Fremont portfolio. Additionally during the quarter, the Company funded a total of $391.4 million under pre-existing commitments.
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 2.9x at March 31, 2009, versus 3.1x at December 31, 2008. The Company's net finance margin, calculated as the rate of return on assets less the cost of debt, was 2.37% for the quarter, versus 2.15% in the prior quarter.
Capital Markets
As of March 31, 2009, the Company had $1.0 billion of unrestricted cash and available capacity on its credit facilities versus $558.1 million at the end of the prior quarter. The Company is currently in compliance with all of its bank and bond covenants.
The Company repurchased $286.4 million par value of its senior unsecured notes, resulting in a net gain on early extinguishment of debt of $154.4 million. In addition, on March 16, 2009, the Company's Board of Directors approved a new $50 million stock repurchase program, under which the Company repurchased approximately 3.5 million shares of its common stock during the quarter. The Company currently has remaining authority to repurchase up to $42.4 million of shares under its share repurchase programs.
As previously announced, during the first quarter the Company completed a new $1.0 billion secured term loan facility and restructured $2.6 billion of its existing unsecured revolving credit facilities.
Risk Management
At March 31, 2009, first mortgages, participations in first mortgages, senior loans and corporate tenant lease investments collectively comprised 91.7% of the Company's asset base, versus 91.5% in the prior quarter. The Company's loan portfolio consisted of 78.5% floating rate loans and 21.5% fixed rate loans, with a weighted average maturity of 2.2 years.
The weighted average last dollar loan-to-value ratio for all structured finance assets was 78.1%. At quarter end, the Company's corporate tenant lease assets were 93.9% leased with a weighted average remaining lease term of 11.5 years. At March 31, 2009, the weighted average risk ratings of the Company's structured finance and corporate tenant lease assets were 3.71 and 2.59, respectively, versus 3.53 and 2.58, respectively, in the prior quarter.
As of March 31, 2009, 76 of the Company's 322 total loans were on NPL status. These loans represent $3.9 billion or 32.6% of total managed loans, compared to 68 loans representing $3.5 billion or 27.5% of total managed loans in the prior quarter. Managed asset and loan values represent iStar's book value plus the A-participation interest associated with the Fremont portfolio. The Company's total managed loan value at quarter end was $12.1 billion.
At the end of the first quarter, the Company had 30 loans on its watch list representing $1.3 billion or 10.7% of total managed loans, compared to 28 loans representing $1.3 billion or 10.1% of total managed loans in the prior quarter. Assets on the Company's watch list are all performing loans.
At the end of the first quarter, the Company had 16 assets classified as OREO with a book value of $233.8 million. During the quarter, the Company took title to nine properties that served as collateral on its loans with managed loan value of $117.5 million, resulting in $47.5 million of charge-offs against the Company's reserve for loan losses. In addition, the Company recorded $6.6 million of non-cash impairment charges on its OREO portfolio.
During the quarter, the Company charged off $51.0 million against its reserve for losses associated with loan sales during the quarter. During the quarter, the Company recorded $14.5 million of non-cash impairment charges on investments included in its Corporate Loan and Debt portfolio and Other Investments, and a $4.2 million non-cash impairment charge to goodwill.
During the first quarter, the Company recorded $258.1 million in loan loss provisions, comprised of $237.5 million of asset specific provisions and $20.6 million of general provisions. Provisions in the quarter reflect the continued deterioration in the overall credit markets and its impact on the portfolio as determined in the Company's regular quarterly risk ratings review process following the end of the quarter. At March 31, 2009, the Company had loan loss reserves of $1.1 billion or 9.4% of total managed loans. This compares to loan loss reserves of $976.8 million or 7.8% of total managed loans at December 31, 2008.
Summary of Fremont Contributions to Quarterly Results
At the end of the first quarter, the Fremont portfolio, including additional fundings made during the quarter, had a managed loan value of $3.7 billion consisting of 128 loans versus $4.0 billion consisting of 140 loans at the end of the fourth quarter 2008.
At the end of the first quarter, the value of the A-participation interest in the portfolio was $1.0 billion versus $1.3 billion on December 31, 2008. The book value of iStar's B-participation interest at the end of the first quarter was $2.7 billion versus $2.7 billion on December 31, 2008. During the quarter, iStar received $337.0 million in principal repayments and proceeds from loan sales, of which the Company retained 30%. The balance of principal repayments was paid to the A-participation interest. The weighted average maturity of the Fremont portfolio is seven months.
During the first quarter, iStar funded $112.5 million of commitments related to the portfolio. Unfunded commitments at the end of the first quarter were $0.5 billion, of which the Company expects to fund approximately $0.3 billion based upon its comprehensive review of the portfolio. This compares to unfunded commitments of $0.7 billion at the end of the prior quarter.
At March 31, 2009, there were 43 Fremont loans on NPL status with a managed loan value of $1.6 billion versus 37 loans at the prior quarter end, with $1.2 billion of managed loan value. In addition, there were 13 Fremont loans on the Company's watch list with a managed loan value of $483.8 million versus 18 loans at the prior quarter end, with $758.6 million of managed loan value.
Annual Meeting
The Company will host its Annual Meeting of Shareholders at The Harvard Club of New York City, located at 35 West 44th Street, New York, New York 10036 on Wednesday, May 27, 2009 at 9:00 a.m. ET. All shareholders are cordially invited to attend.
[Financial Tables to Follow]
* * *
iStar Financial Inc. is a leading publicly traded finance company focused on the commercial real estate industry. The Company primarily provides custom-tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust ("REIT"), seeks to deliver strong dividends and superior risk-adjusted returns on equity to shareholders by providing innovative and value added financing solutions to its customers.
iStar Financial will hold a quarterly earnings conference call at 10:00 a.m. ET today, April 30, 2009. 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 completion of pending investments, continued ability to originate new investments, the mix of originations between structured finance and corporate tenant lease assets, repayment levels, the timing of receipt of prepayment penalties, the availability and cost of capital for future investments, competition within the finance and real estate industries, economic conditions, loss experience and other risks detailed from time to time in iStar Financial Inc.'s SEC reports.)
Selected Income Statement Data
(In thousands)
(unaudited)
Three Months Ended
March 31,
2009 2008
-------- -------
Net investment income (1) $251,958 $176,797
Other income 2,513 58,025
Non-interest expense (2) (353,506) (159,977)
-------- -------
Income (loss) from continuing operations (99,035) 74,845
Income from discontinued operations 346 8,128
Gain from discontinued operations 11,617 2,056
Net (income) loss attributable to noncontrolling
interests 1,243 (204)
Preferred dividends (10,580) (10,580)
-------- -------
Net income (loss) allocable to common shareholders,
HPU holders and Participating Security holders (3) ($96,409) $74,245
======== =======
(1) Includes interest income, operating lease income, earnings (loss)
from equity method investments and gain (loss) on early
extinguishment of debt, 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.
(3) HPU holders are 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.
Selected Balance Sheet Data
(In thousands)
(unaudited) As of As of
March 31, 2009 December 31, 2008
-------------- -----------------
Loans and other lending investments, net $10,182,944 $10,586,644
Corporate tenant lease assets, net $3,015,009 $3,044,811
Other investments $417,875 $447,318
Total assets $14,801,097 $15,296,748
Debt obligations $12,167,539 $12,486,404
Total liabilities $12,448,766 $12,840,896
Total iStar Financial Inc. shareholders'
equity $2,319,036 $2,418,999
iStar Financial Inc.
Consolidated Statements of Operations
(In thousands)
(unaudited)
Three Months Ended
March 31,
2009 2008
-------- -------
REVENUES
Interest income $177,227 $276,100
Operating lease income 78,650 78,199
Other income 2,513 58,025
-------- -------
Total revenues 258,390 412,324
-------- -------
COSTS AND EXPENSES
Interest expense 131,165 169,779
Operating costs - corporate tenant lease assets 6,631 5,125
Depreciation and amortization 23,692 23,901
General and administrative (1) 39,389 42,776
Provision for loan losses 258,096 89,500
Impairment of goodwill 4,186 -
Impairment of other assets 21,145 -
Other expense 6,998 3,800
-------- -------
Total costs and expenses 491,302 334,881
-------- -------
Income (loss) from continuing operations before
other items (232,912) 77,443
Gain on early extinguishment of debt 154,377 -
Loss from equity method investments (20,500) (2,598)
-------- -------
Income (loss) from continuing operations (99,035) 74,845
Income from discontinued operations 346 8,128
Gain from discontinued operations 11,617 2,056
-------- -------
Net income (loss) (87,072) 85,029
Net (income) loss attributable to noncontrolling
interests 1,243 (204)
-------- -------
Net income (loss) attributable to iStar
Financial Inc. (85,829) 84,825
Preferred dividend requirements (10,580) (10,580)
-------- -------
Net income (loss) allocable to common shareholders,
HPU holders and Participating Security holders (2) ($96,409) $74,245
======== =======
(1) For the three months ended March 31, 2009 and 2008, includes $5,551
and $4,848 of stock-based compensation expense, respectively.
(2) HPU holders are 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
March 31,
2009 2008
---- ----
EPS INFORMATION FOR COMMON SHARES
Income (loss) attributable to iStar Financial Inc.
from continuing operations (1) (2)
Basic ($1.00) $0.46
Diluted (3) ($1.00) $0.46
Net income (loss) attributable to iStar Financial Inc.
(1)(4)
Basic ($0.89) $0.53
Diluted (3) ($0.89) $0.53
Weighted average shares outstanding
Basic 105,606 134,262
Diluted 105,606 134,843
EPS INFORMATION FOR HPU SHARES
Income (loss) attributable to iStar Financial Inc. from
continuing operations (1)(2)
Basic ($189.07) $86.87
Diluted (3) ($189.07) $86.47
Net income (loss) attributable to iStar Financial
Inc. (1)(4)(5)
Basic ($168.20) $100.94
Diluted (3) ($168.20) $100.47
Weighted average shares outstanding
Basic and diluted 15 15
(1) For the three months ended March 31, 2009 and 2008, excludes
preferred dividends of $10,580.
(2) Income (loss) attributable to iStar Financial Inc. from continuing
operations excludes net (income) loss from noncontrolling interests.
(3) For the three months ended March 31, 2008, includes the allocable
share of $1 of joint venture income.
(4) For the three months ended March 31, 2008, net income (loss)
attributable to iStar Financial Inc. and allocable to common
shareholders and HPU holders excludes $1,122 of dividends paid to
Participating Securities.
(5) For the three months ended March 31, 2009 and 2008, basic net income
(loss) allocable to HPU holders was ($2,523) and $1,514,
respectively. For the three months ended March 31, 2009 and 2008,
diluted net income (loss) allocable to HPU holders was ($2,523) and
$1,507, respectively.
iStar Financial Inc.
Reconciliation of Adjusted Earnings to GAAP Net Income
(In thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31,
2009 2008
------- -------
ADJUSTED EARNINGS (1)
Net income (loss) ($87,072) $85,029
Add: Depreciation, depletion and amortization 23,499 27,638
Add: Joint venture depreciation, depletion and
amortization 10,688 8,625
Add: Amortization of deferred financing costs 5,160 9,914
Add: Impairment of goodwill 4,186 -
Less: Hedge ineffectiveness, net - 1,491
Less: Gain from discontinued operations (11,617) (2,056)
Less: Preferred dividends (10,580) (10,580)
------- -------
Adjusted earnings (loss) allocable to common
shareholders, HPU holders and Participating
Security holders:
Basic ($65,736) $120,061
Diluted ($65,736) $120,065
Adjusted earnings (loss) per common share: (2)
Basic (3) ($0.61) $0.87
Diluted (4) ($0.61) $0.86
Weighted average common shares outstanding:
Basic 105,606 134,262
Diluted 105,606 134,843
Common shares outstanding at end of period:
Basic 102,462 134,406
Diluted 102,462 134,909
(1) Adjusted earnings should be examined in conjunction with net income
as shown in the Consolidated Statements of Operations. Adjusted
earnings should not be considered as an alternative to net income
(determined in accordance with GAAP) as an indicator of the Company's
performance, or to cash flows from operating activities (determined
in accordance with GAAP) as a measure of the Company's liquidity, nor
is this measure indicative of funds available to fund the Company's
cash needs or available for distribution to shareholders. Rather,
adjusted earnings is an additional measure the Company uses to
analyze how its business is performing. It should be noted that the
Company's manner of calculating adjusted earnings may differ from the
calculations of similarly-titled measures by other companies.
(2) For the three months ended March 31, 2008, excludes $1,122 of
dividends paid to Participating Securities.
(3) For the three months ended March 31, 2009 and 2008, excludes ($1,720)
and $2,486 of net income (loss) allocable to HPU holders,
respectively.
(4) For the three months ended March 31, 2009 and 2008, excludes ($1,720)
and $2,475 of net income (loss) allocable to HPU holders,
respectively.
iStar Financial Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
March 31, 2009 December 31, 2008
-------------- -----------------
ASSETS
Loans and other lending investments,
net $10,182,944 $10,586,644
Corporate tenant lease assets, net 3,015,009 3,044,811
Other investments 417,875 447,318
Other real estate owned 233,758 242,505
Cash and cash equivalents 541,289 496,537
Restricted cash 45,737 155,965
Accrued interest and operating lease
income receivable, net 68,325 87,151
Deferred operating lease income receivable 114,533 116,793
Deferred expenses and other assets, net 181,627 119,024
----------- -----------
Total assets $14,801,097 $15,296,748
=========== ===========
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and
other liabilities $281,227 $354,492
Debt obligations:
Unsecured senior notes 6,519,055 7,188,541
Unsecured revolving credit facilities 737,309 3,281,273
Secured credit facility 1,166,635 306,867
Secured term loans 3,646,458 1,611,650
Other debt obligations 98,082 98,073
----------- -----------
Total liabilities 12,448,766 12,840,896
Redeemable noncontrolling interests 7,448 9,190
Total iStar Financial Inc. shareholders'
equity 2,319,036 2,418,999
Noncontrolling interests 25,847 27,663
----------- -----------
Total Equity 2,344,883 2,446,662
----------- -----------
Total liabilities and equity $14,801,097 $15,296,748
=========== ===========
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
PERFORMANCE STATISTICS Three Months Ended
March 31, 2009
--------------
Net Finance Margin
------------------
Weighted average GAAP yield on loan and CTL
investments 6.83%
Less: Cost of debt 4.46%
----------
Net Finance Margin (1) 2.37%
Return on Average Common Book Equity
------------------------------------
Average total book equity $2,369,018
Less: Average book value of preferred equity (506,176)
----------
Average common book equity (A) $1,862,842
Net income (loss) allocable to common shareholders, HPU
holders and Participating Security holders ($96,409)
Net income (loss) allocable to common shareholders, HPU
holders and Participating Security holders - Annualized (B) ($385,636)
Return on Average Common Book Equity (B) / (A) (20.7%)
Adjusted basic earnings (loss) allocable to common shareholders
and HPU holders and Participating Security holders (2) ($65,736)
Adjusted basic earnings (loss) allocable to common shareholders
and HPU holders and Participating Security holders -
Annualized (C) ($262,944)
Adjusted Return on Average Common Book Equity (C) / (A) (14.1%)
Expense Ratio
-------------
General and administrative expenses (3) (D) $39,422
Total revenue (3) (E) $258,881
Expense Ratio (D) / (E) 15.2%
(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, average SFAS No. 141 purchase intangibles and average
assets held for sale over the period. Cost of debt is the annualized
sum of interest expense and operating costs-corporate tenant lease
assets, divided by the average gross debt obligations over the
period. Operating lease income and operating costs-corporate tenant
lease assets exclude SFAS No. 144 adjustments from discontinued
operations of $490 and $44, respectively. The Company does not
consider net finance margin to be a measure of the Company's
liquidity or cash flows. It is one of several measures that
management considers to be an indicator of the profitability of its
operations.
(2) Adjusted earnings should be examined in conjunction with net income
(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.
(3) Total revenue and general and administrative expenses exclude SFAS
No. 144 adjustments from discontinued operations of $491 and $33,
respectively.
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
CREDIT STATISTICS Three Months Ended
March 31, 2009
--------------
Book debt, net of unrestricted cash and cash
equivalents (A) $11,626,250
Book equity 2,344,883
Add: Accumulated depreciation and loan loss reserves 1,642,287
---------
Sum of book equity, accumulated depreciation and
loan loss reserves (B) $3,987,170
Leverage (1) (A) / (B) 2.9x
Ratio of Earnings (Loss) to Fixed Charges 0.5x
Ratio of Earnings (Loss) to Fixed Charges and
Preferred Stock Dividends 0.5x
Covenant Calculation of Fixed Charge Coverage Ratio (2) 2.8x
Interest Coverage
-----------------
EBITDA (3) (C) $67,700
GAAP interest expense and preferred dividends (D) 141,745
EBITDA / GAAP Interest Expense (3) (C) / (D) 0.5x
RECONCILIATION OF NET INCOME TO EBITDA (3)
Net income (loss) less preferred dividends ($97,652)
Add: GAAP interest expense 131,165
Add: Depreciation, depletion and amortization 23,499
Add: Joint venture depreciation, depletion and amortization 10,688
---------
EBITDA (3) $67,700
(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
recently 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.
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
FINANCING VOLUME SUMMARY STATISTICS
Three Months Ended
March 31, 2009 LOANS
------------------------------
Total/ CORPORATE
Floating Weighted TENANT OTHER
Fixed Rate Rate Average LEASING INVESTMENTS
---------- -------- -------- --------- -----------
Amount funded $11,291 $361,760 $373,051 $7,494 $10,880
Weighted average
GAAP yield 6.22% 6.83% 6.81% 11.72% N/A
Weighted average
all-in spread/
margin (basis
points) (1) 492 604 602 N/A N/A
Weighted average
first $ loan-to-
value ratio 38.13% 1.34% 2.38% N/A N/A
Weighted average
last $ loan-to-
value ratio 76.15% 78.85% 78.77% N/A N/A
UNFUNDED COMMITMENTS
Number of assets with unfunded commitments 176
Discretionary commitments $146,940
Non-discretionary commitments 1,792,817
---------
Total unfunded commitments $1,939,757
Estimated weighted average funding period Approximately 2.2 years
UNENCUMBERED ASSETS / UNSECURED DEBT
Unencumbered assets (A) $9,519,492
Unsecured debt (B) $7,398,496
Unencumbered Assets / Unsecured Debt (A) / (B) 1.3x
RISK MANAGEMENT STATISTICS
(weighted average
risk rating) 2009 2008
--------- ---------------------------------------------
March 31, December 31, September 30, June 30, March 31,
--------- ------------ ------------- -------- ---------
Structured
Finance Assets
(principal risk) 3.71 3.53 3.41 3.28 3.12
Corporate Tenant
Lease Assets 2.59 2.58 2.55 2.55 2.51
(1=lowest risk; 5=highest risk)
(1) Represents spread over base rate LIBOR (floating-rate loans) and
interpolated U.S. Treasury rates (fixed-rate loans) during the
quarter.
iStar Financial Inc.
Supplemental Information
(In thousands, except per share amounts)
(unaudited)
LOANS AND OTHER LENDING INVESTMENTS CREDIT STATISTICS
As of
----------------------------------
March 31, 2009 December 31, 2008
-------------- -----------------
Value of non-performing loans (1) /
As a percentage of total managed
loans $3,930,310 32.56% $3,458,157 27.48%
Reserve for loan losses /
As a percentage of total managed
loans $1,136,349 9.41% $976,788 7.76%
As a percentage of non-performing
loans (1) 28.91% 28.25%
(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 MARCH 31, 2009
Asset Type
----------
First Mortgages / Senior Loans $10,456 68.3%
Corporate Tenant Leases 3,582 23.4
Mezzanine / Subordinated Debt 863 5.6
Other Investments 406 2.7
------- -----
Total $15,307 100.0%
======= =====
Property / Collateral Type
--------------------------
Apartment / Residential $4,278 27.9%
Land 2,348 15.3
Office 1,925 12.6
Industrial / R&D 1,452 9.5
Retail 1,178 7.7
Entertainment / Leisure 922 6.0
Corporate - Real Estate 865 5.7
Hotel 826 5.4
Mixed Use / Mixed Collateral 669 4.4
Other 543 3.5
Corporate - Non-Real Estate 301 2.0
------- -----
Total $15,307 100.0%
======= =====
Geography
---------
West $3,528 23.0%
Northeast 2,874 18.8
Southeast 2,532 16.5
Mid-Atlantic 1,632 10.7
Central 934 6.1
Southwest 885 5.8
Various 807 5.3
International 768 5.0
South 513 3.3
Northcentral 440 2.9
Northwest 394 2.6
------- -----
Total $15,307 100.0%
======= =====
(1) Based on gross carrying value of the Company's total investment
portfolio.
DATASOURCE: iStar Financial Inc.
CONTACT: James D. Burns, 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/