iStar Reports First Quarter 2022 Results

Rhea-AI Summary

iStar Inc. (NYSE: STAR) reported impressive first-quarter results for 2022, showing a net income of $610.9 million or $8.85 per diluted share. Adjusted earnings reached $607.5 million, translating to $7.79 per diluted share. The company successfully closed the sale of a net lease portfolio for $3.07 billion, positively impacting equity by approximately $585 million. Additionally, Safehold achieved $677 million in new originations, boosting its portfolio to $5.5 billion. iStar also reduced consolidated secured debt by $1.2 billion.

Positive

• Net income of $610.9 million ($8.85 per diluted share).
• Adjusted earnings of $607.5 million ($7.79 per diluted share).
• Sale of net lease assets for $3.07 billion, adding $585 million to equity.
• Safehold's new originations reach $677 million, totaling a $5.5 billion portfolio.
• Reduction of $1.2 billion in consolidated secured debt.

Negative

• None.

NEW YORK, May 3, 2022 /PRNewswire/ -- iStar Inc. (NYSE: STAR) today reported results for the first quarter ended March 31, 2022.

Highlights for the quarter include:

• Net income of $610.9 million or $8.85 per diluted common share
• Adjusted earnings of $607.5 million or $7.79 per diluted common share
• iStar closed previously announced sale of a portfolio of net lease assets for a gross purchase price of $3.07 billion resulting in approximately $585 million net positive impact to common equity
• Safehold closed $677 million¹ of new originations, bringing Safehold's total aggregate portfolio to $5.5 billion
• $1.2 billion consolidated secured debt repaid within the quarter

"We made significant progress on our three part strategic plan during the first quarter, simplifying our business with the closing of our Net Lease portfolio, continuing to help scale Safehold and ground lease-adjacent businesses, and strengthening the balance sheet with the extinguishment of over $1 billion of secured debt," said Jay Sugarman, Chairman and Chief Executive Officer. "We were pleased to see the positive impact on earnings, liquidity and the balance sheet during the quarter and remain focused on continuing to execute on our core strategies." 

The Company published a presentation detailing its results and a reconciliation of non-GAAP financial metrics, which can be found on its website, in the "Investors" section.

The Company will host an earnings conference call reviewing this presentation beginning at 10:00 a.m. ET. This conference call will be broadcast live and can be accessed by all interested parties through iStar's website and by using the dial-in information listed below:

Dial-In:                877.336.4440 International:      409.207.6984 Access Code:     1172935

 A replay of the call will be archived on the Company's website. Alternatively, the replay can be accessed via dial-in from 2:30 p.m. ET on May 3, 2022 through 12:00 a.m. ET on May 17, 2022 by calling:

Replay: International: Access Code:

866.207.1041 402.970.0847 9197888

*     *     *

iStar Inc. (NYSE: STAR) is focused on reinventing the ground lease sector, unlocking value for real estate owners throughout the country by providing modern, more efficient ground leases on institutional quality properties. As the founder, investment manager and largest shareholder of Safehold Inc. (NYSE: SAFE), the creator of the modern ground lease industry, iStar is using its national investment platform and its historic strengths in finance and net lease to expand the use of modern ground leases within the $7 trillion institutional commercial real estate market. Recognized as a consistent innovator in the real estate markets, iStar specializes in identifying and scaling newly discovered opportunities and has completed more than $40 billion of transactions over the past two decades. Additional information on iStar is available on its website at www.istar.com.

¹ Investments in Q1 '22 include $158m of new forward commitments that have not yet been funded. Such funding commitments are subject to certain conditions. There can be no assurance that Safehold will complete these transactions.

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SOURCE iStar Inc.

FAQ

What were iStar's earnings for Q1 2022?

iStar reported a net income of $610.9 million or $8.85 per diluted share for Q1 2022.

How much debt did iStar pay off in Q1 2022?

iStar repaid $1.2 billion in consolidated secured debt during Q1 2022.

What was the impact of iStar's net lease asset sale?

The sale of net lease assets for $3.07 billion positively impacted equity by approximately $585 million.

How much new origination did Safehold complete in Q1 2022?

Safehold closed $677 million in new originations, increasing its total portfolio to $5.5 billion.

What adjusted earnings did iStar report for the first quarter?

iStar's adjusted earnings for Q1 2022 were $607.5 million or $7.79 per diluted share.