ISTAR INC. 
By NEW YORK, Feb. 20, 2014 /PRNewswire/ -- iStar Financial Inc. (NYSE: STAR) today reported results for the fourth quarter and fiscal year ended December 31, 2013.
Fourth Quarter 2013 Results
iStar reported adjusted income (loss) allocable to common shareholders for the fourth quarter of $(19.1) million, or $(0.23) per diluted common share, compared to $(23.2) million, or $(0.28) per diluted common share for the fourth quarter 2012.
Adjusted income (loss) represents net income (loss) computed in accordance with GAAP, prior to the effects of certain non-cash items, including depreciation, loan loss provisions, impairments, loss on transfer of interest to unconsolidated subsidiary, 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 fourth quarter was $(57.9) million, or $(0.68) per diluted common share, compared to $(87.4) million, or $(1.04) per diluted common share for the fourth quarter 2012.
Fiscal Year 2013 Results
"Over the past year, we have made meaningful progress across all of our business segments which has enhanced shareholder value," said Jay Sugarman, iStar's Chairman and Chief Executive Officer. "We began originating new deals in our real estate finance and net lease segments, significantly reduced the balance of NPLs, continued harvesting condominium gains within our operating properties and advanced a number of our land projects by obtaining entitlements, furthering development, and pursuing strategic partnerships. We are well positioned to build on this positive momentum in 2014."
iStar reported adjusted income (loss) allocable to common shareholders for the year ended December 31, 2013 of $(21.7) million, or $(0.26) per diluted common share, compared to $(53.8) million, or $(0.64) per diluted common share for the year ended December 31, 2012.
Net income (loss) allocable to common shareholders for the year was $(155.8) million, or $(1.83) per diluted common share, compared to $(273.0) million, or $(3.26) per diluted common share for the prior year.
Capital Markets
During the fourth quarter, the Company issued at par $200 million of 1.50% convertible senior notes due November 2016, which are convertible into shares of iStar common stock at an initial conversion price of $17.29. The Company used net proceeds from the offering, together with cash on hand, to redeem the remaining $201 million of its 5.70% senior unsecured notes due March 2014 and to pay a $2.0 million prepayment fee. Concurrent with the offering, iStar repurchased 1.7 million shares of its common stock with cash on hand at the prevailing market price of $12.35 per share. At December 31, 2013, the Company had $29.0 million remaining under its share repurchase program.
"Throughout 2013, we demonstrated robust access to the capital markets as we raised secured, unsecured and convertible debt as well as preferred equity, while also expanding our outreach to both equity and fixed income investors," stated David DiStaso, iStar's Chief Financial Officer.
In addition, the Company repaid $96.7 million on its 2013 Secured Credit Facility during the quarter, reducing the remaining balance to $1.38 billion at the end of the quarter. The Company also repaid $8.4 million on its 2012 Secured Credit Facility, bringing the remaining balance to $431.5 million at December 31, 2013.
The Company's weighted average effective cost of debt for the fourth quarter was 5.7%, a decrease from 6.5% for the fourth quarter of 2012. The Company's leverage was 2.0x at December 31, 2013, down from 2.5x at the end of 2012, and at the low end of the Company's targeted range of 2.0x - 2.5x. 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 fourth quarter, iStar funded a total of $218.2 million of investments, which included $158.6 million of new investments originated during the quarter and $59.6 million under prior commitments and through capital expenditures.
"While iStar has continued to evolve over the past few years, the foundation of our investment philosophy built on over 20 years of experience has remained steadfast. We utilize the breadth of our platform to uncover opportunities presenting attractive risk-adjusted returns and look to develop relationships with entrepreneurial customers who place a high value on iStar's scale, scope, flexibility and integrity," said Sugarman. "Our recent investment activity demonstrates the strength of our platform."
In January 2014, iStar closed on its 50% interest in an $815 million debt financing commitment for the development of a mixed-use project in the heart of Times Square, New York City. The project will include the ground-up construction of a 40-story EDITION hotel, retail space and signage. iStar initially funded $173 million at closing and expects to fund additional draw requests as the project progresses.
In addition, early in 2014 iStar partnered with a sovereign wealth fund to form a venture in which the partners plan to contribute up to an aggregate $500 million of equity to acquire and develop up to $1.25 billion of net lease assets over time. iStar will own approximately 52% of the venture and will be responsible for sourcing new opportunities and managing the venture and its assets in exchange for a promote and management fee. The venture's first investment is a 410,000 square foot office and data campus outside of Washington D.C. that is net leased to AT&T through 2025. It was acquired by iStar for $94 million during the fourth quarter and was subsequently contributed to the venture.
iStar generated $164.4 million of proceeds from its portfolio during the fourth quarter, comprised of $77.9 million from repayments and sales of loans in its real estate finance portfolio, $49.4 million from sales of operating properties and $37.1 million of proceeds across other segments.
After giving effect to the investment and venture contribution made by the Company after the end of the quarter, iStar had approximately $400 million of cash, which will be used primarily to fund future investment activity.
Portfolio Overview
At December 31, 2013, the Company's total portfolio had a gross carrying value of $5.19 billion, which represents the Company's carrying value, gross of $424.5 million of accumulated depreciation and $29.2 million of general loan loss reserves.
Real Estate Finance
At December 31, 2013, the Company's real estate finance portfolio totaled $1.40 billion, gross of general loan loss reserves.
The portfolio included $1.20 billion of performing loans with a weighted average last dollar loan-to-value ratio of 72% and a weighted average maturity of 2.8 years. The performing loans included $619.4 million of first mortgages / senior loans and $576.3 million of mezzanine / subordinated debt. The performing loans generated a weighted average effective yield for the quarter of 8.0%.
At December 31, 2013, the Company's non-performing loans (NPLs) had a carrying value of $203.6 million, a decrease from $235.3 million of NPLs at the end of the prior quarter and a 60% reduction from a balance of $503.1 million of NPLs at December 31, 2012.
For the fourth quarter, the Company recorded $0.1 million of loan loss provision, compared to a provision for loan losses of $20.9 million in the fourth quarter of 2012. At December 31, 2013, loan loss reserves totaled $377.2 million or 23.5% 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 $1.71 billion, gross of $338.6 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 11.6 years. The occupied assets generated an unleveraged weighted average effective yield of 8.1% 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.
Operating Properties
At the end of the quarter, the Company's operating properties portfolio totaling $964.9 million, gross of $82.4 million of accumulated depreciation, was comprised of $741.6 million of commercial and $223.3 million of residential real estate properties. The Company has reduced its balance of operating properties from $1.18 billion at December 31, 2012 by actively marketing and selling condominium inventory and repositioning and selling select commercial real estate assets throughout the year. During the quarter, the Company funded $13.1 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 $29.6 million of revenue offset by $21.0 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 $134.7 million of stabilized commercial operating properties that were 85% 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 57% leased and generated an unleveraged weighted average effective yield of 2.7% 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 170,000 square feet.
Residential Operating
At the end of the quarter, the residential operating portfolio was comprised of 616 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 88 condominium units, resulting in $47.4 million of proceeds and recorded $14.1 million of income, offset by $4.4 million of expenses. In addition, the Company recorded a $5.6 million impairment on one asset due to a change in local market conditions.
Land
At the end of the quarter, the Company's land portfolio totaling $965.2 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 $15.6 million in its land portfolio through capital expenditures and sold one bulk land asset in Hawaii for $15.4 million, recognizing a nominal gain.
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 December 31, 2013, the Company had five land projects in production, 11 in development and 11 in the pre-development phase.
Summarized below are examples of the progress made at certain of the Company's land projects during the fourth quarter of 2013:
-- Received approval to develop a premiere, 5,000-seat amphitheater and
entertainment venue on Coney Island in conjunction with the City of New
York on a portion of iStar's Coney West development site.
-- Entered into a venture with KB Home to jointly develop residential lots
in the first phase of Spring Mountain Ranch, iStar's 1,400-lot master
planned community in Riverside, CA. iStar believes that KB Home's strong
presence in the local market will enhance sales velocity at the
development. The Company recognized a loss of $7.4 million as a result
of the contribution of the initial phase of land to the venture. Later
phases of the project should benefit from the infrastructure
improvements paid for by the venture and the momentum created by this
initial partnership.
-- Signed an agreement to sell developed lots to K. Hovnanian® for the
construction of luxury townhomes in Asbury Park, NJ. Earlier in 2013,
iStar completed construction and sold all units at the VIVE townhome
community, the first new residential development in the waterfront area
since 2007.
-- Began construction of the first tower of Marina Palms, a luxury
waterfront condominium and yacht club in Miami, FL in which iStar has a
47.5% venture interest. The project comprises 468 residences across two
towers and a 110-slip marina, with all units released for sale in the
first tower now under contract.
-- Began development of One Palm, a venture to which iStar contributed land
in Sarasota, FL. The venture will seek to develop a new 141-room class A
multi-family building as well as a 139-room hotel, which will operate as
an Aloft by Starwood Hotels & Resorts.
[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.
(Logo: http://photos.prnewswire.com/prnh/20130708/NY43293LOGO)
iStar Financial will hold a quarterly earnings conference call at 10:00 a.m. ET today, February 20, 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.
iStar Financial Inc.
Consolidated Statements of Operations
(In thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012
---- ---- ---- ----
REVENUES
Operating lease income $59,213 $56,693 $234,567 $216,291
Interest income 29,430 28,588 108,015 133,410
Other income 12,430 11,140 48,208 47,838
Total revenues $101,073 $96,421 $390,790 $397,539
-------- -------
COST AND EXPENSES
Interest expense $61,709 $83,502 $266,225 $355,097
Real estate expense 45,079 40,414 157,441 151,458
Depreciation and amortization 17,651 19,394 71,266 68,770
General and administrative(1) 25,106 19,182 92,114 80,856
Provision for loan losses 97 20,875 5,489 81,740
Impairment of assets 6,328 5,145 12,589 13,778
Other expense 784 10,512 8,050 17,266
Total costs and expenses $156,754 $199,024 $613,174 $768,965
Income (loss) before earnings from equity method $(55,681) $(102,603) $(222,384) $(371,426)
investments and other items
Loss on early extinguishment of debt (4,908) (30,958) (33,190) (37,816)
Earnings from equity method investments 7,174 27,084 41,520 103,009
Loss on transfer of interest to unconsolidated subsidiary (7,373) - (7,373) -
Income (loss) from continuing operations before income taxes $(60,788) $(106,477) $(221,427) $(306,233)
Income tax (expense) benefit 1,283 (1,907) 659 (8,445)
Income (loss) from continuing operations $(59,505) $(108,384) $(220,768) $(314,678)
Income (loss) from discontinued operations (797) 547 644 (17,481)
Gain from discontinued operations (256) - 22,233 27,257
Income from sales of residential property 14,566 27,889 86,658 63,472
Net income (loss) $(45,992) $(79,948) $(111,233) $(241,430)
Net (income) loss attributable to noncontrolling interests (1,051) 138 (718) 1,500
------ --- ---- -----
Net income (loss) attributable to iStar Financial Inc. $(47,043) $(79,810) $(111,951) $(239,930)
Preferred dividends (12,830) (10,580) (49,020) (42,320)
Net (income) loss allocable to HPU holders and Participating Security holders(2) 1,939 2,966 5,202 9,253
Net income (loss) allocable to common shareholders $(57,934) $(87,424) $(155,769) $(272,997)
======== ======== ========= =========
(1) For the three months ended
December 31, 2013 and 2012,
includes $4,777 and $3,668 of
stock-based compensation
expense, respectively. For the
twelve months ended December 31,
2013 and 2012, includes $19,261
and $15,293 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
iStar Financial Inc.
Earnings Per Share Information
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012
---- ---- ---- ----
EPS INFORMATION FOR COMMON SHARES
Income (loss) attributable to iStar Financial Inc. from continuing operations(1)
Basic and diluted $(0.67) $(1.05) $(2.09) $(3.37)
Net income (loss) attributable to iStar Financial Inc.
Basic and diluted $(0.68) $(1.04) $(1.83) $(3.26)
Adjusted income (loss)
Basic and diluted $(0.23) $(0.28) $(0.26) $(0.64)
Weighted average shares outstanding
Basic and diluted 84,617 83,674 84,990 83,742
Common shares outstanding at end of period 83,717 83,782 83,717 83,782
EPS INFORMATION FOR HPU SHARES
Income (loss) attributable to iStar Financial Inc. from continuing operations(1)
Basic and diluted $(127.00) $(198.93) $(396.07) $(638.27)
Net income (loss) attributable to iStar Financial Inc.
Basic and diluted $(129.26) $(197.73) $(346.80) $(616.87)
Weighted average shares outstanding
Basic and diluted 15 15 15 15
(1) Including preferred dividends,
net (income) loss from
noncontrolling interests and
income from sales of residential
property.
iStar Financial Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
December 31, December 31,
2013 2012
------------- -------------
ASSETS
Real estate
Real estate, at cost $3,220,634 $3,117,405
Less: accumulated depreciation (424,453) (378,306)
-------- --------
Real estate, net $2,796,181 $2,739,099
Real estate available and held for sale 360,517 635,865
------- -------
$3,156,698 $3,374,964
Loans receivable and other lending investments, net 1,370,109 1,829,985
Other investments 207,209 398,843
Cash and cash equivalents 513,568 256,344
Restricted cash 48,769 36,778
Accrued interest and operating lease income receivable, net 14,941 15,226
Deferred operating lease income receivable 92,737 84,735
Deferred expenses and other assets, net 237,980 163,124
------- -------
Total assets $5,642,011 $6,159,999
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other liabilities $170,831 $141,670
Debt obligations, net 4,158,125 4,691,494
Total liabilities $4,328,956 $4,833,164
Redeemable noncontrolling interests $11,590 $13,681
Total iStar Financial Inc. shareholders' equity $1,243,260 $1,238,944
Noncontrolling interests 58,205 74,210
Total equity $1,301,465 $1,313,154
Total liabilities and equity $5,642,011 $6,159,999
========== ==========
iStar Financial Inc.
Segment Analysis
(In thousands)
(unaudited)
FOR THE THREE MONTHS ENDED DECEMBER 31, 2013
Real Estate Net Operating Land Corporate /
Finance Lease Properties Other Total
------- ----- ---------- ----- -----
Operating lease income $ - $38,815 $19,496 $902 $ - $59,213
Interest income 29,430 - - - - 29,430
Other income 519 250 10,541 641 479 12,430
--- --- ------ --- --- ------
Total revenue $29,949 $39,065 $30,037 $1,543 $479 $101,073
Earnings (loss) from equity - 682 540 (63) 6,015 7,174
method investments
Income from sales of residential - - 13,988 578 - 14,566
property
Net operating income (loss) from - 131 (78) - - 53
discontinued operations(1)
Gain (loss) from discontinued - - (256) - - (256)
operations
---
Revenue and other earnings $29,949 $39,878 $44,231 $2,058 $6,494 $122,610
Real estate expense - (6,132) (25,350) (13,597) - (45,079)
Other expense (38) - - - (746) (784)
Allocated interest expense (15,644) (19,497) (10,838) (7,505) (8,225) (61,709)
Allocated general and (3,496) (4,437) (2,578) (3,572) (6,246) (20,329)
administrative(2)
Segment profit (loss) $10,771 $9,812 $5,465 $(22,616) $(8,723) $(5,291)
======= ====== ====== ======== ======= =======
(1) Includes revenue and real
estate expense classified as
income (loss) from discontinued
operations.
(2) Excludes $4,777 of stock-based
compensation expense.
iStar Financial Inc.
Segment Analysis
(In thousands)
(unaudited)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2013
Real Estate Net Operating Land Corporate /
Finance Lease Properties Other Total
------- ----- ---------- ----- -----
Operating lease income $ - $147,313 $86,352 $902 $ - $234,567
Interest income 108,015 - - - - 108,015
Other income 4,748 250 38,164 1,474 3,572 48,208
----- --- ------ ----- ----- ------
Total revenue $112,763 $147,563 $124,516 $2,376 $3,572 $390,790
Earnings (loss) from equity - 2,699 5,546 (5,331) 38,606 41,520
method investments
Income from sales of residential - - 82,603 4,055 - 86,658
property
Net operating income from - 1,484 1,251 - - 2,735
discontinued operations(1)
Gain from discontinued - 3,395 18,838 - - 22,233
operations
---
Revenue and other earnings $112,763 $155,141 $232,754 $1,100 $42,178 $543,936
Real estate expense - (22,565) (101,044) (33,832) - (157,441)
Other expense (1,625) - - - (6,425) (8,050)
Allocated interest expense (74,377) (80,034) (49,114) (30,368) (32,332) (266,225)
Allocated general and (13,186) (14,330) (9,189) (12,365) (23,783) (72,853)
administrative(2)
Segment profit (loss) $23,575 $38,212 $73,407 $(75,465) $(20,362) $39,367
======= ======= ======= ======== ======== =======
(1) Includes revenue and real estate expense classified as income (loss) from discontinued operations.
(2) Excludes $19,261 of stock-based compensation expense.
AS OF DECEMBER 31, 2013
Real Estate Net Operating Land Corporate /
Finance Lease Properties Other Total
------- ----- ---------- ----- -----
Real estate
Real estate, at cost $ - $1,696,888 $720,508 $803,238 $ - $3,220,634
Less: accumulated - (338,640) (82,420) (3,393) - (424,453)
depreciation
---
Real estate, net $ - $1,358,248 $638,088 $799,845 $ - $2,796,181
Real estate available and - - 228,328 132,189 - 360,517
held for sale
---
Total real estate $ - $1,358,248 $866,416 $932,034 $ - $3,156,698
Loans receivable and other 1,370,109 - - - - 1,370,109
lending investments, net
Other investments - 16,408 16,032 29,765 145,004 207,209
--- ------ ------ ------ ------- -------
Total portfolio assets $1,370,109 $1,374,656 $882,448 $961,799 $145,004 $4,734,016
========== ========== ======== ======== ========
Cash and other assets 907,995
-------
Total assets $5,642,011
==========
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012
---- ---- ---- ----
ADJUSTED INCOME
Reconciliation of Net Income to Adjusted Income
-----------------------------------------------
Net income (loss) allocable to common shareholders $(57,934) $(87,424) $(155,769) $(272,997)
Add: Depreciation and amortization 17,871 19,581 72,439 70,786
Add: Provision for loan losses 97 20,875 5,489 81,740
Add: Impairment of assets 7,172 6,292 14,353 36,354
Add: Loss on transfer of interest to unconsolidated subsidiary 7,373 - 7,373 -
Add: Stock-based compensation expense 4,777 3,668 19,261 15,293
Add: Loss on early extinguishment of debt 2,887 16,021 19,655 22,405
Less: HPU/Participating Security allocation (1,301) (2,180) (4,478) (7,428)
Adjusted income (loss) allocable to common shareholders(1) $(19,058) $(23,167) $(21,677) $(53,847)
======== ======== ======== ========
(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
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
Twelve Months
Ended
December 31, 2013
-----------------
OPERATING STATISTICS
Expense Ratio
-------------
General and administrative expenses (A) $92,114
Average total assets (B) $5,925,290
Expense Ratio (A) / (B) 1.6%
As of
December 31, 2013
-----------------
Leverage
--------
Book debt $4,158,125
Less: Cash and cash equivalents (513,568)
--------
Net book debt (C) $3,644,557
Book equity $1,301,465
Add: Accumulated depreciation and amortization 473,863
Add: General loan loss reserves 29,200
------
Sum of book equity, accumulated depreciation and general loan loss reserves (D) $1,804,528
Leverage (C) / (D) 2.0x
UNENCUMBERED ASSETS / UNSECURED DEBT
Unencumbered assets (E)(1) $3,276,836
Unsecured debt (F) $2,106,890
Unencumbered Assets / Unsecured Debt (E) / (F) 1.6x
(1) Unencumbered assets are
calculated in accordance with the
indentures governing the Company's
unsecured debt securities.
iStar Financial Inc.
Supplemental Information
(In thousands)
(unaudited)
As of
December 31, 2013
-----------------
UNFUNDED COMMITMENTS
Performance-based commitments $72,600
Strategic investments 46,591
------
Total Unfunded Commitments $119,191
LOAN RECEIVABLE CREDIT STATISTICS As of
-----
December 31, 2013 December 31, 2012
----------------- -----------------
Carrying value of NPLs /
As a percentage of total carrying value of loans $203,604 16.6% $503,112 27.5%
Impaired loan asset-specific reserves for loan losses
As a percentage of gross carrying value of impaired $348,004 46.3% $491,399 42.6%
loans(1)
Total reserve for loan losses /
As a percentage of total gross carrying value of loans(1) $377,204 23.5% $524,499 22.3%
(1) Gross carrying value
represents iStar's carrying
value of loans, gross of loan
loss reserves.
iStar Financial Inc.
Supplemental Information
(In millions)
(unaudited)
PORTFOLIO STATISTICS AS OF DECEMBER 31, 2013(1)
Property Type Real Estate Net Lease Operating Land Total % of
Finance Properties
Total
--- -----
Land $153 $ - $ - $965 $1,118 21.6%
Office 10 485 294 - 789 15.2%
Industrial / R&D 96 550 52 - 698 13.5%
Entertainment / Leisure 77 475 - - 552 10.7%
Hotel 246 136 97 - 479 9.2%
Mixed Use / Mixed Collateral 237 - 169 - 406 7.8%
Retail 209 57 130 - 396 7.6%
Condominium 108 - 223 - 331 6.4%
Other Property Types 263 10 - - 273 5.2%
Strategic Investments - - - - 146 2.8%
--- ---
Total $1,399 $1,713 $965 $965 $5,188 100.0%
====== ====== ==== ==== ====== =====
Geography Real Estate Net Lease Operating Land Total % of
Finance Properties Total
--- ------- ---------- -----
Northeast $392 $374 $153 $193 $1,112 21.4%
West 142 427 190 352 1,111 21.4%
Southeast 264 237 230 86 817 15.8%
Mid-Atlantic 160 194 158 183 695 13.4%
Southwest 172 221 180 122 695 13.4%
Central 87 103 47 10 247 4.8%
Northwest 50 81 7 19 157 3.0%
International 122 - - - 122 2.3%
Various 10 76 - - 86 1.7%
Strategic Investments - - - - 146 2.8%
--- --- --- --- ---
Total $1,399 $1,713 $965 $965 $5,188 100.0%
====== ====== ==== ==== ====== =====
(1) Based on carrying value of
the Company's total investment
portfolio, gross of
accumulated depreciation and
general loan loss reserves.
SOURCE iStar Financial Inc.
