LOS ANGELES--(BUSINESS WIRE)-- Colony Financial, Inc. (CLNY) (the Company) today announced that it has adopted a Dividend Reinvestment and Direct Stock Purchase Plan (the Plan). By participating in the Plan, participants may purchase additional shares of the Company's common stock by reinvesting some or all of the cash dividends received on their shares of the Company's common stock. In addition, the Plan permits participants to make optional cash investments of up to $25,000 per month, and, with the Company's prior approval, optional cash investments in excess of $25,000 per month, for the purchase of additional shares of the Company's common stock. The Plan is currently available to electing stockholders with respect to the Companys quarterly dividend for the fourth quarter of 2011.

The Plan will be administered through the Companys transfer agent, American Stock Transfer and Trust Company. LLC (AST). AST will purchase shares either in the open market, directly from the Company as newly issued common stock, or in privately negotiated transactions with third parties, as described in the Plan.

Stockholders and other persons may obtain a copy of the Plan prospectus, enrollment and waiver forms by contacting AST at (888) 563-9653 or (718) 921-8200, if outside the United States, or visiting ASTs website at www.amstock.com. Stockholders who are interested in participating in the plan may also access the relevant information in the Investor Relations: DRIP and Direct Stock Purchase Plan section on the Companys website at www.colonyfinancial.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. The offer is being made solely through the Plan prospectus.

About Colony Financial, Inc.

Colony Financial, Inc. is a real estate finance and investment company that is focused primarily on acquiring and originating commercial real estate loans and real estate-related debt at attractive risk-adjusted returns. Secondary debt purchases may include performing, sub-performing or non-performing loans (including loan-to-own strategies). Colony Financial has elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. Colony Financial is a component of the Russell 2000® and the Russell 3000® indices. For more information, visit www.colonyfinancial.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as may, will, should, expects, intends, plans, anticipates, believes, estimates, predicts, or potential or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Companys control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking: the Companys business and investment strategy; the Company's ability to maintain its qualification as a REIT for U.S. federal income tax purposes; and the Company's ability to maintain its exemption from registration under the 1940 Act.

All forward-looking statements reflect the Companys good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Companys future results to differ materially from any forward-looking statements, see the section entitled Risk Factors in the Companys Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March 7, 2011, the Companys Quarterly Report on Form 10-Q for the quarters ended March 31, 2011 June 30, 2011 and September 30, 2011, filed with the SEC on May 10, 2011, August 8, 2011 and November 9, 2011, respectively, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

Investor Contact:
Colony Financial, Inc.
Darren Tangen
Chief Financial Officer
310-552-7230
or
Addo Communications, Inc.
Andrew Blazier
310-829-5400
andrewb@addocommunications.com
or
Media Contact:
Owen Blicksilver P.R., Inc.
Caroline Luz
304-656-2829
caroline@blicksilverpr.com

Source: Colony Financial, Inc.

Copyright Business Wire 2011