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iStar Financial Inc. Message Board

windsurf32937 13 posts  |  Last Activity: Feb 12, 2015 9:00 PM Member since: May 10, 2005
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  • Reply to

    appeal

    by quadruplemalt Feb 11, 2015 1:36 PM
    windsurf32937 windsurf32937 Feb 12, 2015 9:00 PM Flag

    less than 5% on contract cases that were non-jury decisions

  • Reply to

    appeal

    by quadruplemalt Feb 11, 2015 1:36 PM
    windsurf32937 windsurf32937 Feb 11, 2015 9:35 PM Flag

    The reversal rate on a nonjury-decided contractual case in the 4th district is somewhere

  • windsurf32937 windsurf32937 Feb 11, 2015 9:30 PM Flag

    Who would have ever believed a few years ago, that we would be financing more condo construction.

  • Reply to

    Lennar

    by goldencowrie Jan 26, 2015 8:57 AM
    windsurf32937 windsurf32937 Jan 26, 2015 10:38 AM Flag

    I saw. I think he just took Q3 and multiplied by 4.
    There was a single large impairment that quarter. If that is not repeated then the estimate is low.
    They have a lot of idle cash and low leverage, so as this is put to work I expect the bottom line will improve. They also continue to bring down their cost of borrowing and we should see further ratings improvements
    Depreciation on the large CRE portfolio decreases the GAAP earnings but does not really decrease the economic value of the company so I add that back in to calculate the real economic return.
    If they do resume a dividend it will be ROC (like the preferreds now) , though I expect that they will retain that capital unless the share price improves so that new capital can be raised at a premium to book, maybe via more converts.
    w

  • Reply to

    Lennar

    by goldencowrie Jan 26, 2015 8:57 AM
    windsurf32937 windsurf32937 Jan 26, 2015 10:06 AM Flag

    Agree.
    I'm looking for at least $160MM or roughly $2/share in adjusted earnings (net income to common plus depreciation), excluding this potential gain, for 2015. If they avoid any more large impairments to land holdings and ramp up reinvestment of idle cash then this could be a low estimate. I really don't care if they resume the dividend or keep adding to (adjusted) book value at this point

  • Reply to

    Lennar

    by goldencowrie Jan 26, 2015 8:57 AM
    windsurf32937 windsurf32937 Jan 26, 2015 9:35 AM Flag

    interest is 12% compounded "per diem" from May 27, 2008 until the final settlement day
    the court (in a lengthy opinion) ruled that the purchaser bears the "risk of loss" resulting from the failure to close the sale and therefore is not entitled to any reduction in the purchase price; Lennar had argued that their failure to settle was not "wrongful" but this was denied by the judge
    of course they say they will appeal and will use that as a bargaining leverage to achieve a settlement for a lower amount; they have lost every major argument along the way in this case and the interest clock is ticking

  • Reply to

    Judgement in favor of iStar

    by windsurf32937 Jan 22, 2015 1:59 PM
    windsurf32937 windsurf32937 Jan 23, 2015 11:22 AM Flag

    8K filed today says "30 days" to settle. I'll bet there's some serious negotiation going on right now related to whether Lennar will try to appeal. An appeal could take 2 years just to see if it will be heard and it will cost them $30MM per year in interest accruals to wait. I would say Lennar will be motivated to get out before things get worse for them.

  • Reply to

    Judgement in favor of iStar

    by windsurf32937 Jan 22, 2015 1:59 PM
    windsurf32937 windsurf32937 Jan 23, 2015 11:17 AM Flag

    That's MILLION not BILLION.

  • Reply to

    Judgement in favor of iStar

    by windsurf32937 Jan 22, 2015 1:59 PM
    windsurf32937 windsurf32937 Jan 23, 2015 9:39 AM Flag

    The order will be for specific performance and therefore enforceable by the court via a contempt charge. The final order is still pending so not sure if there will be a specific time-frame included.
    An appeal is possible, but 12% interest compounding daily until final settlement is a powerful disincentive to delay Also, iStar will make a motion and supporting memorandum for attorney's fees and costs within 35 days. Six years of litigation in federal court isn't cheap. Most likely Lennar will make a deal not to appeal and try to bargain down the judgement in a settlement. But iStar has a strong position and won't likely budge much.

  • Reply to

    Judgement in favor of iStar

    by windsurf32937 Jan 22, 2015 1:59 PM
    windsurf32937 windsurf32937 Jan 22, 2015 3:09 PM Flag

    just saw that there are still (as of 12/31) almost 8million shares short;
    ahmerich or whatever his name is better start covering

  • Reply to

    Judgement in favor of iStar

    by windsurf32937 Jan 22, 2015 1:59 PM
    windsurf32937 windsurf32937 Jan 22, 2015 3:05 PM Flag

    Yes , if I recall it was on the books for $103MM (maybe incorrect?). With interest on the 114MM figure for 6.75 years, should be around $250MM, therefore $150MM gain roughly or a little less than $2/share gain. Will be a big chunk off of the land portfolio moved to cash and could add 0.25/share/year to EPS once reinvested

  • Reply to

    Judgement in favor of iStar

    by windsurf32937 Jan 22, 2015 1:59 PM
    windsurf32937 windsurf32937 Jan 22, 2015 2:18 PM Flag

    ecf.mdd.uscourts.gov/doc1/09316561825

  • windsurf32937 by windsurf32937 Jan 22, 2015 1:59 PM Flag

    III. Conclusion
    Judgment will be entered in favor of iStar and against U.S.
    Home and Lennar on Counts I-III of iStar’s amended counterclaim
    (ECF No. 447), in the amount of $114,000,000 plus interest at a
    rate of 12% per annum, calculated on a per diem basis from May
    27, 2008 until Purchaser proceeds to Settlement, plus real
    estate taxes in the amount of $1,556,203.32. A separate order
    will follow.
    /s/
    DEBORAH K. CHASANOW
    United States District Judge

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