iStar A Complicated REIT For Complicated Times
Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Nov. 7, 2:49 PM
- With a 26% gain in multifamily originations in Q3, Fannie Mae and Freddie Mac volumes (currently at $27B) are in danger of hitting the $36.5B cap for the year.
- The FHFA has already lifted the cap twice in 2016, and could decide to boost it again, suggests the team at Citigroup.
- Of possible interest to: Walker & Dunlop (WD +1.4%), Ladder Capital (LADR +1.7%), iStar Financial (STAR +0.9%), HFF (HF +1.4%)
Thu, Nov. 3, 7:27 AM
Wed, Aug. 10, 8:07 AM
Thu, Aug. 4, 11:07 AM
- Q2 adjusted EPS of $0.56 doubled consensus estimates, and exceeded management guidance for a 50% increase in earnings for the year's first half.
- Of particular note, writes a bullish Mark Palmer, was the repurchase of 5% of the float during the quarter, and an increase in the buyback program to $50M. Over the past 12 months, the company has cut its share count by 19%.
- There's ample cash thanks to $461M generated from repayments and sales during the quarter. As of June 30, the cash balance and undrawn revolver capacity stood at $721M, with $400M of convertible bond maturities coming due in November.
- Palmer reiterates his Buy rating and $17 price target.
- STAR +7% to $10.96.
Thu, Aug. 4, 7:23 AM
Thu, Jun. 23, 2:34 PM
- Proceeds will be used to refinance iStar's (STAR +0.8%) 2012 secured term loan due next March, partially pay down outstanding borrowings on the secured revolving credit facility, and related transaction costs.
- This new secured facility is due July 2020, and bears an interest rate of Libor plus 4.5%, with a 1% Libor floor. Borrowings will be backed 1.25x by essentially the same set of property assets behind the old facility.
Mon, Jun. 20, 2:57 PM
- U.S. commercial real estate prices could fall as much as 5% in the next year thanks to tightened regulations, a wave of debt maturities, and property sales from publicly-traded REITs, says Pimco.
- The shakeout will be a welcome one for those with capital ready to put to work, say portfolio managers John Murray and Anthony Clarke in their report titled, "U.S. Real Estate: A Storm Is Brewing."
- Commercial real estate prices coming off of a big post-crisis boom have declined 3% in the past three months, according to Moody's and Real Capital Analytics, and real estate deals in NYC are forecast to decline up to 30% this year, according to Cushman & Wakefield.
- Interested parties include: Walker & Dunlop (NYSE:WD), HFF (NYSE:HF), iStar (NYSE:STAR), Ladder Capital (NYSE:LADR), Resource Capital (NYSE:RSO)
Wed, May 25, 4:32 PM
- After a slow Q1 (the slowest since Q4 of 2012), commercial property prices grew 0.9% in Q1 for the value-weighted U.S. Composite Index, according to CoStar Group.
- Transaction volume has become more volatile though, with composite pair volume of $33.4B through the end of April, down 92.% from a year ago.
- Other measures are showing strength, with the average time on the market down 19.7% Y/Y, and the sale-price-to-asking-price ratio narrowing by 2.9 percentage points to 94.3% - the highest this ratio has been since August 2006. The share of properties withdrawn from the market by discouraged sellers fell 8.8 percentage points to 30.9%.
- Interested parties: Walker & Dunlop (NYSE:WD), HFF (NYSE:HF), iStar (NYSE:STAR), Ladder Capital (NYSE:LADR)
Tue, May 24, 8:38 AM
- CFO since 2010, David DiStaso is exiting iStar Financial (NYSE:STAR). He's to be succeeded, effective June 15, by Geoffrey Jervis, who will also take on the role of COO.
- Jervis was most recently CFO of Stag Industrial, and prior to that was CFO at Blackstone Mortgage Trust.
Tue, May 3, 8:53 AM
- Q1 adjusted income of $3.1M or $0.04 per share vs. $85M and $0.10 one year ago.
- 5.8M shares repurchased during quarter at average price of $9.94 each (last night's close was $9.83).
- $147.8M of new investments alongside $131.8M of repayments and sales during quarter. Company had $591.2M of unrestricted cash at end of March, of which $265M was used since to repay notes maturing in July.
- Real Estate Finance: NPLs have a carrying value of $68.3M as of quarter-end. Provision of $1.5M taken during quarter. Loan loss reserves of $109.7M.
- Conference call at 10 ET
- Previously: iStar reports Q1 results (May 3)
- STAR flat premarket
Tue, May 3, 7:26 AM
- iStar (NYSE:STAR): Q1 EPS of $0.04
- Revenue of $114.64M (+1.6% Y/Y)
Thu, Mar. 24, 7:18 AM
Wed, Mar. 23, 11:55 AM
- The company launches an offering of $250M in senior unsecured five-year notes, with proceeds to be combined with cash on hand to pay off its 3.875% senior unsecured notes due in July.
- STAR -2.4% to $9.03.
Fri, Feb. 26, 9:51 AM
- A nice rally in iStar Financial (STAR -5.7%) is at least temporarily reversed as KBW downgrades to Market Perform from Outperform.
- The move higher started earlier this month when the company preannounced a strong Q4 and continued yesterday after complete results were released.
- Previously: More gains for iStar Financial after full results (Feb. 25)
- Previously: iStar Financial preannounces strong results (Feb. 16)
Thu, Feb. 25, 11:57 AM
- The company last week preannounced Q4 adjusted net income of $0.32-$0.36, and today reports the final result as right in the middle of that range.
- 9.2M shares repurchased since the start of Q4 and up to yesterday. 12.5M shares bought back in 2015, or 14.2% of the float. Average price of buybacks was $10.59 each. Current stock price is $9.13. A new $50M program was authorized last week.
- The carrying value of the NPL loan portfolio is down to $60.3M from $82.6M a quarter earlier. A $5.6M loan provision was booked in Q4, and reserves stand at $108.2M.
- The net lease portfolio totals 18M square feet, with occupancy of 96.4% and average remaining lease term of 14.9 years. It generated an unlevered yield of 8.4% for Q4.
- Previously: iStar reports Q4 results (Feb. 25)
- STAR +3% on the session, and up nearly 10% since last week's preannouncement.
Thu, Feb. 25, 7:17 AM
- iStar (NYSE:STAR): Q4 EPS of $0.34
- Revenue of $172.03M (+56.5% Y/Y)