Philip Mause
Long-term horizon, deep value, dividend investing, research analyst

iStar Financial: Enigmatic But Attractive

I first invested in bonds of iStar Financial (SFI) in 2009 when the bonds were being sold at huge discounts to face value and promised huge returns if only the company would survive; it worked out very well for me. I am revisiting SFI, now focusing on the stock which closed Monday at $11.72.

SFI is usually classified as a non-agency mortgage real estate investment trust (REIT) but it is actually a "go anywhere, do anything" real estate company which acts as a lender, landlord or developer depending upon the situation. SFI now has more real estate equity holdings than debt instrument holdings and is a very large holder of undeveloped land.

This diversity makes valuation difficult. I usually look...

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