Now, I’d like to turn the call over to iStar’s Chairman and CEO, Jay Sugarman. Jay?
Thanks, Jason, and thanks for joining us on the call this morning. Our first quarter continued many of the themes from the previous quarter, we continued paid down debt, extend debt maturities, make additional investments to maximum the value in our real estate portfolio.
Many parts of the portfolio showed steady progress and asset in the reposition for-sale residential portfolio in particular are beginning to register steady gain. These gains are offset to some extend however by weakness in retail and European assets.Our goal throughout 2012 will be to continue paying down outstanding debt and improving our asset positioning, as we begin preparing for the next step in aligning our assets and liabilities on the long-term basis. Earnings story continues to reflect this transition period, performing loans, net leased assets, stabilized own real estate and certain strategic investments continue to carry most if not all the debt service and overhead of the company. Our non-performing loans and real estate assets that have not yet stabilized, generate losses in impairment that create a negative weight on earnings. As a result, we reported a net loss of $55 million for the quarter, but excluding depreciation and non-cash provisions, impairments and gains, results were close to breakeven for the quarter at negative $7 million. The balance sheet was also strengthen by the $880 million 2012 secured financing we closed in March and the continued deleveraging of the 2011 secured financing facility. The new facility extending debt maturities more closely match the duration of the underlying assets, completes the second phase of our long-term financing strategy, and our goal remained use of mix secured and unsecured debt to fund our business. New investments were limited this quarters as we focused on our debt execution, we found a few places to deploy capital at attractive rate return and continue to invest our interest in LNR property.