STAR

iStar Inc

Finance/Real Estate


Presented:01/12/2016
Price:$10.77
Cap:$0.92B
Current Price:$24.74
Cap:$1.77B

Presented

Date01/12/2016
Price$10.77
Market Cap$0.92B
Ent Value$4.74B
P/E RatioN/A
Book Value$12.94
Div Yield0%
Shares O/S85.77M
Ave Daily Vol882,253
Short Int15.58%

Current

Price$24.74
Market Cap$1.77B
iStar, Inc. is an integrated finance and investment company focused on the commercial real estate industry. The company provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests directly across a range of real estate sectors. It operates its business through four segments: Real Estate Finance, Net Leasing, Operating Properties and Land. The Real Estate Finance segment primarily comprised of senior and mezzanine real estate loans that may be either fixed-rate or variable-rate and are structured to meet the specific financing needs of borrowers. The Net Leasing segment primarily comprised of properties owned by the company and leased to single creditworthy tenants where the properties are subject to long-term leases. The Operating Properties segment comprised of commercial and residential properties which represent a diverse pool of assets across a broad range of geographies and property types. The Land segment primarily comprised of land entitled for master planned communities as well as waterfront and urban infill land parcels located throughout the U.S. iStar was founded by Jay Sugarman in 1993 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: iStar Inc. (STAR).

Highlights

The presenter is long shares of REIT iStar on the thesis that the company could soon reap a windfall from anticipated asset sales. The majority of STAR’s assets are non-income producing, with about 40% of the company’s NAV attributable to land. STAR was previously a lender to construction developers prior to the financial crisis, ultimately foreclosing on many of those borrowers. All told, the company is carrying about $1.2 billion in land value on book, the vast majority of which is marked at the foreclosed 2009 values. Meanwhile, land prices in the US are up 70% on average versus 2009 values. STAR also has commercial real estate totaling about $573 million in book value, which likewise is being carried at foreclosed 2009 values (generally at roughly 60% of LTV at the time of foreclosure).

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