Full Description

iStar Financial Inc. is a finance company focused on the commercial real estate industry. The Company provides custom-tailored financing to private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, corporate net lease financing and equity. The Company has two primary lines of business: lending and corporate tenant leasing. Its primary sources of revenues are interest income, which is the interest that borrowers pay on loans, and operating lease income, which is the rent that corporate customers pay to lease corporate tenant lease (CTL) properties. As of December 31, 2008, the Company owned 362 office, industrial, entertainment, hotel and retail facilities principally subject to net leases to 102 customers, comprising 39.5 million square feet in 39 states.

The lending business primarily consists of senior and mezzanine real estate loans that range in size from $20 million to $150 million, and have maturities ranging from 3 to 10 years. The Company also provides senior and mezzanine capital to corporations, particularly those engaged in real estate or real estate related businesses. These financings may be either secured or unsecured, range in size from $20 million to $150 million, and have maturities ranging from 3 to 10 years. As part of the lending business, the Company also acquires whole loans, loan participations and debt securities.

The Company's corporate tenant leasing business provides capital to corporations and others who control facilities leased primarily to single creditworthy customers. Its net leased assets are headquarters or distribution facilities that are subject to long-term leases with public companies, many of which are rated corporate credits. CTL transactions have initial terms ranging from 15 to 20 years, and range in size from $20 million to $150 million.