Now, I’d like to turn the call over to iStar’s Chairman and CEO, Jay Sugarman.Jay Sugarman – Chairman and Chief Executive Officer Thanks Jason. During the second quarter we continued making progress on several fronts. And towards the end of the quarter we began focusing on deploying some of the cash on our balance sheet in certain small new investments. With repayments coming in at a strong pace we were able to deleverage the balance sheet by almost $700 million and further invest in our existing asset base as we continue to work to maximize its value. While results from these efforts will not show up in earnings for quite a while we remain optimistic that the incremental capital we are investing will generate attractive returns in the future. For the second quarter earnings came in at negative $36 million and adjusted EBITDA came in at positive $103 million. Several favorable loan resolutions boosted interest income well above trend line while the net lease and owned real estate portfolios were little changed. The increased interest cost from the new senior secured facilities will continue to drag down results until leverage can be further reduced and more assets become revenue-generating. Capital generation during the second quarter was strong albeit somewhat concentrated in repayments of performing loans. Discretionary monetizations were a smaller factor with excess cash on hand already well above near-term needs. On the credit front we saw provisions remain similar to last quarter and the overall size of nonperforming assets decrease. We will still need to be vigilant as the macro economy and certain borrowers remain challenged. But our growing number of assets seem to have successfully weathered the storm. Book value before general reserves and depreciation since January of 2010 was just over $14.50 per share and just over $13.60 after general reserves but before depreciation since January of 2010 with the portfolio continuing to be split between performing loans net lease assets and strategic investments generating solid income and nonperforming loans and owned real estate mostly generating losses until resolved or repositioned.
With that quick update, let me turn it over to Dave for more of the details.David DiStaso – Chief Financial Officer Thanks Jay and good morning everyone. I'll begin by discussing our financial results for the second quarter 2011 before moving to investment activity and credit quality and I’ll end with an update on liquidity. For the quarter we reported a net loss of $36 million or a loss of $0.38 per diluted common share compared to net income of $212.3 million or $2.27 per diluted common share for the second quarter 2010. Results for the prior year included $266 million of gains associated with the sale of net lease assets. In addition the year-over-year change is due to lower loan loss provisions and impairments of $13 million versus $122 million in the same period last year partially offset by lower gains on early extinguishment of debt compared to the same period last year. Adjusted EBITDA for the second quarter was $103 million compared to $401 million for the same period last year. Results for the prior year included the $266 million of gains associated with the sale of net lease assets that I just discussed. In addition the year-over-year decrease is due to lower revenues from a smaller asset base resulting from loan repayments and sales as well as the sale of the portfolio of net lease assets during the second quarter. The decrease was partially offset by increased earnings from equity method investments. During the quarter we retired $685 million of debt primarily comprised of the remaining $330 million on our unsecured credit facility due in June and the remaining $97 million of our 5.125% senior unsecured notes that matured in April. We also paid down $245 million on the A-1 tranche facility during the quarter. In addition we repurchased $11 million of bonds for a small gain as well as 182 000 shares of our common stock. Also during the quarter we entered into a new $120 million secured term loan collateralized by net lease assets occupied by a single tenant. The facility matures in July 2021 and bears interest at a fixed rate of 5.05%. At the end of the quarter our leverage was 2.1x down from 2.2x at the end of the prior quarter. Read the rest of this transcript for free on seekingalpha.com