STAR-03.31.14-8-KPressRelease


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
_______________________________________________________________________________
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): April 29, 2014
 
_______________________________________________________________________________
 
iSTAR FINANCIAL INC.
(Exact name of registrant as specified in its charter)
 
Maryland
 
1-15371
 
95-6881527
(State or other jurisdiction of
incorporation)
 
(Commission File
Number)
 
(IRS Employer
Identification Number)
 
1114 Avenue of the Americas, 39th Floor
New York, New York
 
10036
(Address of principal executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code:  (212) 930-9400
 _______________________________________________________________________________

N/A
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 






ITEM 2.02                                  Results of Operations and Financial Condition.
 
On April 29, 2014, iStar Financial Inc. issued an earnings release announcing its financial results for the first quarter ended March 31, 2014.  A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
 
The information in this Current Report, including the exhibit hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.  The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.

ITEM 9.01                                  Financial Statements and Exhibits.
 
Exhibit 99.1                              Earnings Release.



1




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
iSTAR FINANCIAL INC.
 
 
 
 
 
 
 
 
Date:
April 29, 2014
By:
/s/ Jay Sugarman
 
 
 
Jay Sugarman
 
 
 
Chairman and Chief Executive Officer
 
 
 
 
 
 
 
 
Date:
April 29, 2014
By:
/s/ David DiStaso
 
 
 
David DiStaso
 
 
 
Chief Financial Officer


2



EXHIBIT INDEX
 
Exhibit
Number
 
Description
 
 
 
99.1

 
Earnings Release.


3


Exhibit 99.1
 
 
 
 
iStar Financial Inc.
 
 
1114 Avenue of the Americas
 
 
New York, NY 10036
News Release
 
(212) 930-9400
 
investors@istarfinancial.com
 
 
 
COMPANY CONTACTS
 
NYSE: STAR
 
 
 
David M. DiStaso
 
Jason Fooks
Chief Financial Officer
 
Investor Relations

iStar Financial Announces First Quarter 2014 Results

Adjusted income (loss) allocable to common shareholders for the first quarter 2014 was $(5.5) million, or $(0.07) per diluted common share.
Funded $229 million of investments during the quarter.
Achieved key milestones on certain land projects in Los Angeles, New York and Florida.

NEW YORK - April 29, 2014 - iStar Financial Inc. (NYSE: STAR) today reported results for the first quarter ended March 31, 2014.

First Quarter 2014 Results

iStar reported adjusted income (loss) allocable to common shareholders for the first quarter of $(5.5) million, or $(0.07) per diluted common share, compared to $(0.3) million, or $0.00 per diluted common share for the first quarter 2013.

Adjusted income (loss) represents net income (loss) computed in accordance with GAAP, prior to the effects of certain non-cash items, primarily including depreciation, loan loss provisions, impairments, stock-based compensation and gain/loss on early extinguishment of debt. Please see the financial tables that follow the text of this press release for the Company’s calculations of adjusted income (loss) as well as reconciliations to GAAP net income (loss).

Net income (loss) allocable to common shareholders for the first quarter was $(26.6) million, or $(0.31) per diluted common share, compared to $(41.3) million, or $(0.49) per diluted common share for the first quarter 2013.


1


Capital Markets

During the quarter, the Company repaid $46.0 million on its 2013 Secured Credit Facility, reducing the remaining balance to $1.33 billion. At the end of the quarter, the Company's collateral coverage on the facility exceeded 1.375x. So long as coverage is above 1.375x, the Company retains 50% of proceeds from principal repayments and sales of collateral, in addition to retaining all interest and lease income. The Company also repaid $13.3 million on its 2012 Secured Credit Facility, bringing the remaining balance to $418.1 million at March 31, 2014.

The Company’s weighted average effective cost of debt for the first quarter was 5.6%, a decrease from 5.7% for the fourth quarter of 2013. The Company’s leverage was 2.1x at March 31, 2014, up slightly from 2.0x at December 31, 2013, and at the low end of the Company’s targeted range of 2.0x2.5x. Please see the financial tables that follow the text of this press release for a calculation of the Company’s leverage.

Investment Activity

During the first quarter, iStar funded $180.8 million of new investments. This includes the previously announced project in Times Square in which iStar committed to provide 50% of an $815 million debt financing for the development of a mixed-use project that will include a 40-story EDITION branded hotel, retail space and prominent signage. In addition, the Company invested $48.7 million associated with ongoing developments and prior commitments.

iStar generated $267.7 million of proceeds from its portfolio during the first quarter, comprised of $102.9 million from repayments and sales of loans in its real estate finance portfolio, $76.0 million from sales of net lease assets, $47.7 million from sales of operating properties and $41.1 million of proceeds across other segments.

At the end of the quarter, iStar had $409.6 million of cash, which will be used primarily to fund future investment activity.

Portfolio Overview

At March 31, 2014, the Company’s total portfolio had a gross carrying value of $5.19 billion, which represents the Company’s carrying value, gross of $433.1 million of accumulated depreciation and $31.0 million of general loan loss reserves.

Real Estate Finance

At March 31, 2014, the Company’s real estate finance portfolio totaled $1.51 billion, gross of general loan loss reserves.

The portfolio included $1.30 billion of performing loans with a weighted average last dollar loan-to-value ratio of 70% and a weighted average maturity of 2.8 years. The performing loans included $659.5 million of first mortgages / senior loans and $644.8 million of mezzanine / subordinated debt. The performing loans generated a weighted average effective yield for the quarter of 8.6%.


2


At March 31, 2014, the Company’s non-performing loans (NPLs) had a carrying value of $203.2 million, consistent with the end of the prior quarter.

For the first quarter, the Company recorded a $3.4 million reversal of its loan loss provision, compared to a provision for loan losses of $10.2 million in the first quarter of 2013. At March 31, 2014, loan loss reserves totaled $370.1 million, or 21.9% of the total gross carrying value of loans.

Net Lease

At the end of the quarter, iStar’s net lease portfolio had a gross carrying value of $1.64 billion, gross of $343.3 million of accumulated depreciation. The Company’s net lease portfolio totaled 20 million square feet across 33 states.

Occupancy for the portfolio was 94.4% at the end of the quarter, with a weighted average remaining lease term of 11.4 years. The occupied assets generated an unleveraged weighted average effective yield of 8.0% on gross carrying value and the total net lease portfolio generated an unleveraged weighted average effective yield of 7.5% on gross carrying value for the quarter.

As previously announced, during the quarter the Company and a sovereign wealth fund entered into a venture to jointly invest in net lease assets. The net lease venture's first investment is a property net leased to AT&T, which was acquired by the venture during the first quarter.

Operating Properties

At the end of the quarter, the Company’s operating properties portfolio totaled $946.8 million, gross of $86.2 million of accumulated depreciation, and was comprised of $746.9 million of commercial and $199.9 million of residential real estate properties. During the quarter, the Company funded $16.4 million of capital expenditures on its operating properties.

Commercial Operating
 
The Company’s commercial operating properties represent a diverse pool of assets across a broad range of geographies and collateral types such as office, retail and hotel properties. These properties generated $34.2 million of revenue offset by $22.3 million of expenses during the quarter. iStar generally seeks to reposition or redevelop these assets with the objective of maximizing their values through the infusion of capital and/or intensive asset management efforts.

At the end of the quarter, the Company had $131.5 million of stabilized commercial operating properties that were 86% leased and generated an unleveraged weighted average effective yield of 8.3% on gross carrying value for the quarter.

The remaining commercial operating properties were 61% leased and generated an unleveraged weighted average effective yield of 3.1% on gross carrying value for the quarter. iStar is actively working to lease up and stabilize these properties. During the quarter, the Company executed commercial operating property leases covering approximately 184,000 square feet.


3


Residential Operating

At the end of the quarter, the residential operating portfolio was comprised of 521 condominium units, generally located within luxury condominium projects in major U.S. cities. The Company’s strategy is to continue selling its remaining condominium inventory and to maximize net proceeds. During the quarter, the Company sold 96 condominium units, resulting in $47.7 million of proceeds and recorded $17.9 million of income, offset by $6.3 million of expenses.

Land

At the end of the quarter, the Company’s land portfolio totaling $972.9 million, gross of accumulated depreciation, was comprised of 11 master planned community projects, 10 urban infill land parcels and six waterfront land parcels located throughout the United States. During the quarter, the Company invested $15.1 million in its land portfolio through capital expenditures.

Master planned communities represent large-scale residential projects that the Company will entitle, plan and/or develop. These projects are currently entitled for more than 25,000 lots. The remainder of the Company’s land includes infill and waterfront parcels located in and around major cities that the Company will develop, sell to or partner with commercial real estate developers. These projects are currently entitled for approximately 6,000 residential units, and select projects include commercial, retail and office uses.

At March 31, 2014, the Company had six land projects in production, 10 in development and 11 in the pre-development phase. Highlights of recent progress include:

Received final entitlement approval at Ponte Vista, a master planned community in San Pedro, CA. The project becomes one of only a handful of master planned communities in supply-constrained Los Angeles. The plans will transform the existing 61.5 acres into a high-quality lifestyle community with up to 700 new single-family homes, townhomes and condominiums including significant community amenities and green space.
Signed a lot purchase agreement with a national homebuilder, covering 300 of the 1,154 lots at Naples Reserve, a master planned community in Naples, FL. The community's centerpiece is a 50-acre recreational lake and extensive waterscape. Current expectations are to develop and deliver initial finished lots by early next year.
Successfully expanded the entitlements for Wayfarer, a waterfront high-rise multifamily tower in Long Beach, NY. The new plans will allow iStar to increase the total project size to 522 condominiums. This is the first development of this magnitude to be built on Long Island in over 30 years.
Began construction of the second phase of Sage, a condominium development consisting of 72 two- and three-bedroom units in Scottsdale, AZ. This follows iStar's successful sell-out of phase one's 50 units in mid-2012.


4


Annual Meeting

The Company will host its Annual Meeting of Shareholders at the Sofitel Hotel, located at 45 West 44th Street, 2nd Floor, Trocadero Room, New York, New York 10036 on Thursday, May 22, 2014 at 9:00 a.m. EDT. All shareholders are cordially invited to attend.



[Financial Tables to Follow]

* * *

iStar Financial Inc. (NYSE: STAR) is a fully-integrated finance and investment company focused on the commercial real estate industry. The Company provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests directly across a range of real estate sectors. The Company, which is taxed as a real estate investment trust (“REIT”), has invested more than $35 billion over the past two decades. Additional information on iStar Financial is available on the Company's website at www.istarfinancial.com.

iStar Financial will hold a quarterly earnings conference call at 10:00 a.m. ET today, April 29, 2014. This 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, 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’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, increases in NPLs, the Company's ability to reduce NPLs, repayment levels, the Company's ability to make new investments, the Company’s ability to maintain compliance with its debt covenants, actual results of condominium sales meeting our expectations, the Company’s ability to generate income and gains from non-performing loans, operating properties and land and other risks detailed from time to time in iStar Financial Inc.’s SEC reports.

5



iStar Financial Inc.
Consolidated Statements of Operations
(In thousands)
(unaudited)
 
Three Months Ended March 31,
 
2014
 
2013
REVENUES
 
 
 
Operating lease income
$
62,108

 
$
58,015

Interest income
27,914

 
24,667

Other income
14,584

 
11,393

Land sales revenue
4,143

 

Total revenues
$
108,749

 
$
94,075

COST AND EXPENSES
 
 
 
Interest expense
$
57,456

 
$
71,566

Real estate expense
42,613

 
37,808

Land cost of sales
3,654

 

Depreciation and amortization
18,613

 
17,324

General and administrative(1)
19,788

 
21,848

Provision for (recovery of) loan losses
(3,400
)
 
10,206

Impairment of assets
2,979

 

Other expense
221

 
5,625

Total costs and expenses
$
141,924

 
$
164,377

Income (loss) before earnings from equity method investments and other items
$
(33,175
)
 
$
(70,302
)
Loss on early extinguishment of debt
(1,180
)
 
(9,541
)
Earnings from equity method investments
3,177

 
21,678

Income (loss) from continuing operations before income taxes
$
(31,178
)
 
$
(58,165
)
Income tax (expense) benefit
507

 
(4,075
)
Income (loss) from continuing operations
$
(30,671
)
 
$
(62,240
)
Income (loss) from discontinued operations

 
1,246

Gain from discontinued operations

 
5,044

Income from sales of residential property
16,494

 
23,697

Net income (loss)
$
(14,177
)
 
$
(32,253
)
Net (income) loss attributable to noncontrolling interests
(454
)
 
189

Net income (loss) attributable to iStar Financial Inc.
$
(14,631
)
 
$
(32,064
)
Preferred dividends
(12,830
)
 
(10,580
)
Net (income) loss allocable to HPU holders and Participating Security holders(2)
889

 
1,381

Net income (loss) allocable to common shareholders
$
(26,572
)
 
$
(41,263
)
_______________________________________________________________________________
(1) For the three months ended March 31, 2014 and 2013, includes $2,075 and $5,202 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, restricted stock awards and common stock equivalents granted under the Company's LTIP who are eligible to participate in dividends.


6


iStar Financial Inc.
Earnings Per Share Information
(In thousands, except per share data)
(unaudited)
 
Three Months Ended March 31,
 
2014
 
2013
EPS INFORMATION FOR COMMON SHARES
 
 
 
Income (loss) attributable to iStar Financial Inc. from continuing operations(1)
Basic and diluted
$
(0.31
)
 
$
(0.56
)
Net income (loss) attributable to iStar Financial Inc.
 
 
 
Basic and diluted
$
(0.31
)
 
$
(0.49
)
Adjusted income (loss)
 
 
 
Basic and diluted
$
(0.07
)
 
$

Weighted average shares outstanding
 
 
 
Basic and diluted
84,819

 
84,824

Common shares outstanding at end of period
84,855

 
85,052

 
 
 
 
EPS INFORMATION FOR HPU SHARES
 
 
 
Income (loss) attributable to iStar Financial Inc. from continuing operations(1)
Basic and diluted
$
(59.27
)
 
$
(105.61
)
Net income (loss) attributable to iStar Financial Inc.
 
 
 
Basic and diluted
$
(59.27
)
 
$
(92.07
)
Weighted average shares outstanding
 
 
 
Basic and diluted
15

 
15

_______________________________________________________________________________
(1) Including preferred dividends, net (income) loss from noncontrolling interests and income from sales of residential property.

7



iStar Financial Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
As of
 
As of
 
March 31, 2014
 
December 31, 2013
ASSETS
 
 
 
 
 
 
 
Real estate
 
 
 
Real estate, at cost
$
3,147,119

 
$
3,220,634

Less: accumulated depreciation
(433,149
)
 
(424,453
)
Real estate, net
$
2,713,970

 
$
2,796,181

Real estate available and held for sale
334,691

 
360,517

 
$
3,048,661

 
$
3,156,698

Loans receivable and other lending investments, net
1,476,490

 
1,370,109

Other investments
205,097

 
207,209

Cash and cash equivalents
409,598

 
513,568

Restricted cash
50,593

 
48,769

Accrued interest and operating lease income receivable, net
15,745

 
14,941

Deferred operating lease income receivable
94,911

 
92,737

Deferred expenses and other assets, net
186,620

 
237,980

Total assets
$
5,487,715

 
$
5,642,011

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
$
112,195

 
$
170,831

Debt obligations, net
4,102,050

 
4,158,125

Total liabilities
$
4,214,245

 
$
4,328,956

 
 
 
 
Redeemable noncontrolling interests
$
11,353

 
$
11,590

 
 
 
 
Total iStar Financial Inc. shareholders' equity
$
1,205,569

 
$
1,243,260

Noncontrolling interests
56,548

 
58,205

Total equity
$
1,262,117

 
$
1,301,465

 
 
 
 
Total liabilities and equity
$
5,487,715

 
$
5,642,011


8


iStar Financial Inc.
Segment Analysis
(In thousands)
(unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2014
 
 
 
 
 
 
 
Real Estate
Finance
 
Net
Lease
 
Operating Properties
 
Land
 
Corporate / Other
 

Total
Operating lease income
$

 
$
38,881

 
$
23,001

 
$
226

 
$

 
$
62,108

Interest income
27,914

 

 

 

 

 
27,914

Other income
399

 
214

 
12,666

 
226

 
1,079

 
14,584

Land sales revenues

 

 

 
4,143

 

 
4,143

Total revenue
$
28,313

 
$
39,095

 
$
35,667

 
$
4,595

 
$
1,079

 
$
108,749

Earnings (loss) from equity method investments

 
286

 
217

 
(258
)
 
2,932

 
3,177

Income from sales of residential property

 

 
16,494

 

 

 
16,494

Revenue and other earnings
$
28,313

 
$
39,381

 
$
52,378

 
$
4,337

 
$
4,011

 
$
128,420

Real estate expense

 
(5,674
)
 
(28,614
)
 
(8,325
)
 

 
(42,613
)
Land cost of sales

 

 

 
(3,654
)
 

 
(3,654
)
Other expense
(430
)
 

 

 

 
209

 
(221
)
Allocated interest expense
(15,452
)
 
(18,610
)
 
(10,259
)
 
(7,159
)
 
(5,976
)
 
(57,456
)
Allocated general and administrative(1)
(3,090
)
 
(3,799
)
 
(2,189
)
 
(3,049
)
 
(5,586
)
 
(17,713
)
Segment profit (loss)
$
9,341

 
$
11,298

 
$
11,316

 
$
(17,850
)
 
$
(7,342
)
 
$
6,763

AS OF MARCH 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate
Finance
 
Net
Lease
 
Operating Properties
 
Land
 
Corporate / Other
 

Total
Real estate
 

 
 

 
 

 
 

 
 

 
 

Real estate, at cost
$

 
$
1,611,246

 
$
726,356

 
$
809,517

 
$

 
$
3,147,119

Less: accumulated depreciation

 
(343,294
)
 
(86,173
)
 
(3,682
)
 

 
(433,149
)
Real estate, net
$

 
$
1,267,952

 
$
640,183

 
$
805,835

 
$

 
$
2,713,970

Real estate available and held for sale

 

 
204,653

 
130,038

 

 
334,691

Total real estate
$

 
$
1,267,952

 
$
844,836

 
$
935,873

 
$

 
$
3,048,661

Loans receivable and other lending investments, net
1,476,490

 

 

 

 

 
1,476,490

Other investments

 
33,441

 
15,794

 
33,312

 
122,550

 
205,097

Total portfolio assets
$
1,476,490

 
$
1,301,393

 
$
860,630

 
$
969,185

 
$
122,550

 
$
4,730,248

Cash and other assets
 
 
 
 
 
 
 
 
 
 
757,467

Total assets
 
 
 
 
 
 
 
 
 
 
$
5,487,715

_______________________________________________________________________________
(1) Excludes $2,075 of stock-based compensation expense.



 

9


iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
 
Three Months Ended March 31,
 
2014
 
2013
ADJUSTED INCOME
 
 
 
Reconciliation of Net Income to Adjusted Income
 
 
 
Net income (loss) allocable to common shareholders
$
(26,572
)
 
$
(41,263
)
Add: Depreciation and amortization
18,895

 
17,454

Add: Provision for loan losses
(3,400
)
 
10,206

Add: Impairment of assets
2,979

 
(32
)
Add: Stock-based compensation expense
2,075

 
5,202

Add: Loss on early extinguishment of debt
1,180

 
9,541

Less: HPU/Participating Security allocation
(703
)
 
(1,372
)
Adjusted income (loss) allocable to common shareholders(1)
$
(5,546
)
 
$
(264
)
_______________________________________________________________________________
(1) Adjusted Income (loss) 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) 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 it 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 this non-GAAP financial measure may differ from the calculations of similarly-titled measures by other companies. Management believes that it is useful to consider Adjusted Income because the adjustments are non-cash items that do not necessarily reflect an actual change in the long-term economic value or performance of our assets. Management considers this non-GAAP financial measure as supplemental information to net income in analyzing the performance of our underlying business. Depreciation and amortization and impairment of assets exclude adjustments from discontinued operations of $130 and $(32), respectively, for the three months ended March 31, 2013. 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.

10


iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
 
Three Months Ended March 31, 2014
OPERATING STATISTICS
 
 
 
Expense Ratio
 
General and administrative expenses - annualized (A)
$
79,152

Average total assets (B)
$
5,564,863

Expense Ratio (A) / (B)
1.4
%
 
 
 
As of
 
March 31, 2014
Leverage
 
Book debt
$
4,102,050

Less: Cash and cash equivalents
(409,598
)
Net book debt (C)
$
3,692,452

 
 
Book equity
$
1,262,117

Add: Accumulated depreciation and amortization
479,896

Add: General loan loss reserves
31,000

Sum of book equity, accumulated depreciation and general loan loss reserves (D)
$
1,773,013

Leverage (C) / (D)
2.1x

 
 
UNENCUMBERED ASSETS / UNSECURED DEBT
 
 
 
Unencumbered assets (E)(1)
$
3,221,573

Unsecured debt (F)
$
2,106,890

Unencumbered Assets / Unsecured Debt (E) / (F)
1.5x

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

11


iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
 
 
 
 
As of
 
 
 
 
March 31, 2014
UNFUNDED COMMITMENTS
 
 
 
 
 
 
 
 
 
 
 
Performance-based commitments
 
 
 
$
284,774
 
Strategic investments
 
 
 
46,382
 
Total Unfunded Commitments
 
 
 
$
331,156
 
 
 
 
 
 
 
LOAN RECEIVABLE CREDIT STATISTICS
As of
 
March 31, 2014
 
December 31, 2013
 
 
 
 
 
 
Carrying value of NPLs /
 
 
 
 
 
As a percentage of total carrying value of loans
$
203,174

15.4
%
 
$
203,604

16.6
%
 
 
 
 
 
 
Impaired loan asset specific reserves for loan losses /
 
 
 
 
 
As a percentage of gross carrying value of impaired loans(1)
$
339,076

49.3
%
 
$
348,004

46.3
%
 
 
 
 
 
 
Total reserve for loan losses /
 
 
 
 
 
As a percentage of total gross carrying value of loans(1)
$
370,076

21.9
%
 
$
377,204

23.5
%
_______________________________________________________________________________
(1) Gross carrying value represents iStar's carrying value of loans, gross of loan loss reserves.


12



iStar Financial Inc.
Supplemental Information
(In millions)
(unaudited)
PORTFOLIO STATISTICS AS OF MARCH 31, 2014(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Type
 
Real Estate Finance
 
Net Lease
 
Operating Properties
 
Land
 
Total
 
% of
Total
Land
 
$
96

 
$

 
$

 
$
973

 
$
1,069

 
20.6
%
Office
 
10

 
432

 
296

 

 
738

 
14.2
%
Industrial / R&D
 
105

 
534

 
52

 

 
691

 
13.3
%
Mixed Use / Mixed Collateral
 
417

 

 
169

 

 
586

 
11.3
%
Entertainment / Leisure
 
78

 
475

 

 

 
553

 
10.6
%
Hotel
 
250

 
136

 
100

 

 
486

 
9.4
%
Retail
 
196

 
57

 
130

 

 
383

 
7.4
%
Condominium
 
98

 

 
200

 

 
298

 
5.7
%
Other Property Types
 
257

 
10

 

 

 
267

 
5.1
%
Strategic Investments
 

 

 

 

 
123

 
2.4
%
Total
 
$
1,507

 
$
1,644

 
$
947

 
$
973

 
$
5,194

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Geography
 
Real Estate Finance
 
Net Lease
 
Operating Properties
 
Land
 
Total
 
% of
Total
Northeast
 
$
579

 
$
374

 
$
154

 
$
194

 
$
1,301

 
25.0
%
West
 
141

 
412

 
182

 
352

 
1,087

 
20.9
%
Southeast
 
263

 
237

 
224

 
90

 
814

 
15.7
%
Mid-Atlantic
 
172

 
177

 
154

 
182

 
685

 
13.2
%
Southwest
 
119

 
220

 
181

 
127

 
647

 
12.5
%
Central
 
88

 
67

 
48

 
10

 
213

 
4.1
%
Northwest
 
24

 
81

 
4

 
18

 
127

 
2.4
%
International
 
111

 

 

 

 
111

 
2.1
%
Various
 
10

 
76

 

 

 
86

 
1.7
%
Strategic Investments
 

 

 

 

 
123

 
2.4
%
Total
 
$
1,507

 
$
1,644

 
$
947

 
$
973

 
$
5,194

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
_______________________________________________________________________________
(1) Based on carrying value of the Company's total investment portfolio, gross of accumulated depreciation and general loan loss reserves.


13