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iStar Financial Inc. Message Board

  • windsurf32937 windsurf32937 Sep 26, 2008 2:31 PM Flag

    iStar Asset Services STRONG Commercial Servicer Ranking Affirmed

    iStar Asset Services STRONG Commercial Servicer Ranking Affirmed; Outlook Stable
    Price: $100.00
    Publication Date: Sep 25, 2008
    Report Type: News
    Abstract: NEW YORK (Standard&Poor's) Sept. 25, 2008--Standard&Poor's Ratings Services today affirmed its STRONG ranking on iStar Asset Services Inc. (iSAS) as a commercial mortgage primary servicer for the U.S. market. The outlook is stable. Standard&Poor's considers iSAS a boutique-style servicer with a substantial track record as an expert portfolio manager for complex financing structures involving customized asset administration and reporting for loans and equity investments collateralized by larger-scale properties. The affirmed ranking reflects: -- The company's successful integration of the commercial mortgage servicing platform and portfolio acquired from the former Fremont Investment&Loan into a cohesive servicing and asset management organization; -- iSAS' enhanced organizational depth and capacity created from the Fremont acquisition; --
    Brief Excerpt: RESEARCH Ratings Definitions iStar Asset Services STRONG Commercial Servicer Ranking Affirmed; Outlook Stable Publication date: ##-Sep-#### Servicer Analysts: Michael S Merriam, New York (#) ###-###-####;
    Word Count: 705
    Issuer: iStar Asset Services Inc.
    Sector: Structured Finance, Servicer Evaluations, Commercial MBS
    Country: United States
    Region: United States
    Format: HTML HTML

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    • I remember the board approveing this subsidiary within the last year In order to place monies were and when they chose to invest in ventures sort of like a holding company.

      • 1 Reply to er1776
      • S&P part of page 1

        Analysis prepared by Bret Howlett on August 06, 2008, when the stock traded at $ 7.34.
        ä The downturn in the housing market and turmoil
        in the credit markets have taken a toll on SFI as
        non-performing assets continue to adversely
        affect results. Although SFI has $1.4 billion in
        cash, available lines of credit, and expects to
        receive $1 billion in asset repayments this year,
        we cannot rule out the need for additional capital
        if the credit environment worsens.We believe
        SFI's acquisition of Fremont's commercial
        loan portfolio has increased its risk exposure to
        condo conversions and construction loans,
        segments of the market we expect to show further
        deterioration in 2008.
        ä Due to recent asset sales and the company's
        lower profit forecast going forward, SFI reduced
        its third-quarter dividend to range of
        $0.30-$0.40 per share. Although SFI is currently
        in compliance with all of its covenants, we believe
        the company will be forced to de-leverage
        its balance sheets, which ultimately could pressure
        profits. Also, SFI's recent increase in its
        loan loss reserve may act as a drag on results
        in 2008.
        ä In 2008, we see funds from operations (FFO) at a
        loss $1.50 per share.We expect FFO per share
        of $2.20 in 2009.
        Investment Rationale/Risk
        ä Our hold recommendation reflects our view that
        SFI's credit issues have not stabilized and that
        its increased exposure to residential loans will
        create near-term volatility in results.We are also
        concerned about SFI's ability to raise debt to
        aggressively expand its investment portfolio
        due to increasing funding costs. In addition, the
        slowing economy should translate into poor
        corporate earnings and increasing vacancy
        rates for the corporate tenant leasing business
        in 2008. However, we view favorably SFI's low
        leverage levels relative to its competitors, its
        limited reliance on recourse financing, and its
        portfolio diversification.
        ä Risks to our recommendation and target price
        include a major slowdown in the economy,
        growing exposure to multi-family and constructions
        loans, and SFI's ability to source and fund
        new investments that fit its risk profile while
        meeting its return criteria.
        ä Our 12-month target price of $10 assumes SFI
        will generate FFO per share of $2.20 in 2009, and
        that the shares will trade at about 4.5X this estimate,
        toward the low end of the historical
        Qualitative Risk Assessment
        Our risk assessment for SFI reflects the cyclical
        nature of the corporate real estate market as well
        as its potential credit risk and interest rate
        exposure. Partly offsetting this is SFI's portfolio
        diversification and asset/liability matching policy
        put in place to limit exposure to changes in
        interest rates.
        Quantitative Evaluations
        S&P Quality Ranking B+
        D C B- B B+ A- A A+
        Relative Strength Rank WEAK
        LOWEST = 1 HIGHEST = 99
        Revenue/FFO Data
        Revenue (Million $)
        1Q 2Q 3Q 4Q Year
        2008 164.7 -324.1 -- -- --
        2007 284.3 308.5 418.9 413.8 612.9
        2006 224.6 236.8 256.6 265.3 980.2
        2005 181.5 198.7 222.2 197.8 798.5
        2004 169.4 182.1 177.3 186.4 694.4
        2003 142.0 148.2 152.1 164.3 606.6
        FFO Per Share ($)
        2008 E0.87 E0.82 E0.75 E0.87 E-1.50
        2007 -- -- -- -- --
        2006 -- -- -- -- --
        2005 -- -- -- -- --
        2004 -- -- -- -- --
        2003 -- -- -- -- --
        Fiscal year ended Dec. 31. Next earnings report expected: Early
        November. Dividends have been paid since 1998. Source: Company reports.
        Stock Report | September 20, 2008 | NYS Symbol: SFI
        iStar Financial Inc.
        S&P Recommendation HOLD H H H H H Price
        $5.25 (as of Sep 19, 2008)
        12-Mo. Target Price

    • This looks manufactured. How about a link?

      Dave S.

    • So what relationship does this have to iStar Financial Inc. (SFI)?

      • 1 Reply to nwlean
      • <So what relationship does this have to iStar Financial Inc. (SFI)?>

        iStar Asset Services is a subsidiary of SFI headed by Barbara Rubin:

        Barbara Rubin
        President-iStar Asset Services, Inc

        Barb Rubin has served as President of iStar Asset Services, Inc. since September 1998 in our Hartford-based loan asset management and servicing operation. She has more than 20 years of real estate investment experience, including loan and real estate equity origination, portfolio management, loan servicing, and capital markets activities. Prior to joining iStar Financial, Ms. Rubin was President and Chief Operating Officer of Phoenix Realty Securities, Inc., a real estate advisory operation that managed portfolios of real estate securities (including mortgage loan investments and real estate equity securities). She is currently Chair of the Connecticut Health and Education Facilities Authority. Ms. Rubin received a B.A. from Williams College and an M.B.A from the University of Connecticut.