X0304 4 2012-01-01 0 0001095651 ISTAR FINANCIAL INC SFI 0001220479 SUGARMAN JAY 1114 AVENUE OF THE AMERICAS, 39TH FLOOR NEW YORK NY 10036 1 1 0 0 Chairman and CEO Common Stock 2012-01-01 5 A 0 E 962963 0 A 2639932 D Common Stock 2012-01-01 5 F 0 E 466533 0 D 2639932 D Common Stock 44544 I By spouse Restricted Stock Units 4043565 D Effective January 1, 2012, the Reporting Person, Mr. Jay Sugarman, acquired 962,963 shares of iStar common stock upon the vesting of Restricted Stock Units (Units) pursuant to an award originally dated December 19, 2008, as amended July 1, 2011. After deducting 466,533 shares for applicable tax withholding, the Reporting Person acquired a net amount of 496,430 shares of iStar common stock. Following the transactions reported in this Form 4, the Reporting Person is the beneficial owner of a total of 2,684,476 shares of iStar common stock, including 2,639,932 shares owned directly and 44,544 shares owned indirectly by his spouse. The Reporting Person is also the owner of 4,043,555 Units representing the right to receive an equivalent number of shares of iStar common stock (net of shares deducted for taxes and other withholdings) if and when the Units vest. s/ Jay Sugarman 2012-01-05