Colony Financial, Inc. (the “Company”) (NYSE: CLNY) today announced that the Company’s Board of Directors has declared cash dividends on shares of both its common and preferred stock for the second quarter of 2012. The Company's dividend policy is set by its Board of Directors and is evaluated based upon the deployment of the Company's capital and its taxable earnings and cash flow. Common Stock Dividend The Company's Board of Directors has declared a quarterly dividend of $0.35 per common share for the second quarter of 2012. The dividend will be paid on July 16, 2012, to stockholders of record on June 29, 2012. 8.50% Series A Cumulative Perpetual Preferred Stock The Company's Board of Directors declared a cash dividend of $0.6847 per share on the Company's 8.50% Series A Cumulative Perpetual Preferred Stock with liquidation preference of $25 per share for the period from March 20, 2012 to July 15, 2012. The dividend will be paid on July 16, 2012, to stockholders of record on June 29, 2012. About Colony Financial, Inc. Colony Financial, Inc. is a real estate finance and investment company that is focused primarily on acquiring and originating commercial real estate loans and real estate-related debt at attractive risk-adjusted returns. Secondary debt purchases may include performing, sub-performing or non-performing loans (including loan-to-own strategies). Colony Financial has elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. Colony Financial is a component of the Russell 2000® and the Russell 3000® indices. For more information, visit www.colonyfinancial.com. Forward-Looking Statements This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking: the Company’s business and investment strategy; the Company's ability to maintain its qualification as a REIT for U.S. federal income tax purposes; and the Company's ability to maintain its exemption from registration under the 1940 Act.