This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

IStar's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Now, I’d like to turn the call over to iStar’s Chairman and CEO, Jay Sugarman. Jay?

Jay Sugarman

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.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs