Istar Financial announces fourth quarter losses
iStar Financial Inc today reported results for the fourth quarter and fiscal year ended December 31, 2012.
iStar reported net income (loss) allocable to common shareholders for the fourth quarter of ($87.4) million, or ($1.04) per diluted common share, compared to ($35.2) million, or ($0.43) per diluted common share, for the fourth quarter 2011. Adjusted income (loss) allocable to common shareholders for the fourth quarter was ($23.2) million, compared to $18.9 million for the fourth quarter 2011.
Results in the current quarter included $35.2 million of expenses associated with three capital markets transactions the Company executed during the quarter, of which $12.1 million was non-cash. Results in the prior year included $30.3 million of earnings from equity method investments associated with the sale of Oak Hill Advisors.
Net income (loss) allocable to common shareholders for the quarter was ($53.3) million, compared to ($64.5) million in the fourth quarter 2011.
Adjusted income (loss) allocable to common shareholders for the quarter was ($0.8) million, compared to ($10.4) million in the fourth quarter 2011.
Adjusted income (loss) represents net income computed in accordance with GAAP, prior to the effects of certain non-cash items, including depreciation, loan loss provisions, impairments and gain/loss on early extinguishment of debt. Please see the financial tables that follow the text of this press release for the Company's calculations of adjusted income as well as reconciliations to GAAP net income (loss).
"2012 was an important year for the Company as we strengthened the balance sheet, bolstered liquidity and paved a debt maturity runway until 2017, enabling us to begin ramping up new investment activity in 2013," said Jay Sugarman, iStar's chairman and chief executive officer.
iStar reported net income (loss) allocable to common shareholders for the year ended December 31, 2012 of ($273.0) million, or ($3.26) per diluted common share, compared to ($62.4) million, or ($0.70) per diluted common share, for the year ended December 31, 2011. Adjusted income (loss) allocable to common shareholders for the year was ($53.8) million, compared to ($3.3) million for the prior year.
Results in the current year included $35.2 million of expenses associated with three capital markets transactions the Company executed during the fourth quarter, of which $12.1 million was non-cash. Results in the prior year included a $109.0 million gain associated with the redemption of the Company's 10% senior secured notes and $30.3 million of earnings from equity method investments associated with the sale of Oak Hill Advisors. Net income (loss) allocable to common shareholders for the year was ($238.9) million, compared to ($197.4) million in the prior year.