X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-iStar Financial Inc. on Thursday reported quarterly earnings losses of $24.2 million, a smaller loss than the negative $62.8 million the REIT incurred in the first quarter of 2009. The company also narrowed its net income losses from $93.9 million in Q1 ’09 to $25.4 in the first quarter of this year.

In a conference call, CEO Jay Sugarman called the Q1 results “a small glimpse of blue sky,” but cautioned that the challenges that have faced the company over the past two years remain in place. Despite improving conditions and the company’s efforts to shrink its balance sheet, iStar still has large debt maturities to contend with in 2011 and 2012, and a large number of nonperforming loans, he said.

At the end of Q1, 42.3% of the company’s total managed loans, representing a balance of $3.5 billion, were NPL, according to financial results released Thursday. That represents a slight reduction from the 45.3% that NPLs represented at the end of Q4 ’09.

A large chunk of iStar’s NPL pool is condominium and land loans, and chief accounting officer David DiStaso said during Thursday’s call that the company has reduced its exposure in these sectors. At the end of Q1, the company had 12 performing loans on its watch list representing $673.9 million, or 8.1% of total managed loans.

DiStaso said iStar is pursuing a sale-leaseback of a 33-asset portfolio with an aggregate $1.1 billion of book value, a deal that if successful would bolster the company’s liquidity. The portfolio is encumbered by $947.9 million in secured, non-recourse term debt that matures next April.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.