(Mark One) | |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2012 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Maryland (State or other jurisdiction of incorporation or organization) | 95-6881527 (I.R.S. Employer Identification Number) | |
1114 Avenue of the Americas, 39th Floor | ||
New York, NY (Address of principal executive offices) | 10036 (Zip code) |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | ||
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
Loans and other lending investments, net | $ | 2,300,810 | $ | 2,860,762 | |||
Net lease assets, net | 1,550,113 | 1,702,764 | |||||
Real estate held for investment, net | 1,249,681 | 1,228,134 | |||||
Other real estate owned | 722,167 | 677,458 | |||||
Other investments | 427,501 | 457,835 | |||||
Cash and cash equivalents | 243,843 | 356,826 | |||||
Restricted cash (see Note 10) | 492,973 | 32,630 | |||||
Accrued interest and operating lease income receivable, net | 15,055 | 20,208 | |||||
Deferred operating lease income receivable | 78,769 | 73,368 | |||||
Deferred expenses and other assets, net | 105,300 | 107,852 | |||||
Total assets | $ | 7,186,212 | $ | 7,517,837 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Accounts payable, accrued expenses and other liabilities | $ | 111,494 | $ | 106,693 | |||
Debt obligations, net | 5,603,939 | 5,837,540 | |||||
Total liabilities | $ | 5,715,433 | $ | 5,944,233 | |||
Commitments and contingencies | — | — | |||||
Equity: | |||||||
iStar Financial Inc. shareholders' equity: | |||||||
Preferred Stock Series D, E, F, G and I, liquidation preference $25.00 per share (see Note 12) | 22 | 22 | |||||
High Performance Units | 9,800 | 9,800 | |||||
Common Stock, $0.001 par value, 200,000 shares authorized, 142,527 issued and 83,610 outstanding at June 30, 2012 and 140,028 issued and 81,920 outstanding at December 31, 2011 | 142 | 140 | |||||
Additional paid-in capital | 3,828,187 | 3,834,460 | |||||
Retained earnings (deficit) | (2,196,038 | ) | (2,078,397 | ) | |||
Accumulated other comprehensive income (loss) (see Note 12) | (707 | ) | (328 | ) | |||
Treasury stock, at cost, $0.001 par value, 58,917 shares at June 30, 2012 and 58,108 shares at December 31, 2011 | (241,969 | ) | (237,341 | ) | |||
Total iStar Financial Inc. shareholders' equity | $ | 1,399,437 | $ | 1,528,356 | |||
Noncontrolling interests | 71,342 | 45,248 | |||||
Total equity | $ | 1,470,779 | $ | 1,573,604 | |||
Total liabilities and equity | $ | 7,186,212 | $ | 7,517,837 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues: | |||||||||||||||
Interest income | $ | 36,448 | $ | 80,185 | $ | 73,651 | $ | 140,953 | |||||||
Operating lease income | 37,928 | 37,642 | 76,408 | 75,755 | |||||||||||
Other income | 22,345 | 7,599 | 38,631 | 16,273 | |||||||||||
Total revenues | $ | 96,721 | $ | 125,426 | $ | 188,690 | $ | 232,981 | |||||||
Costs and expenses: | |||||||||||||||
Interest expense | $ | 94,474 | $ | 95,753 | $ | 179,818 | $ | 164,846 | |||||||
Operating costs—net lease assets | 4,965 | 4,384 | 8,128 | 8,670 | |||||||||||
Operating costs—REHI and OREO | 22,424 | 18,002 | 44,498 | 35,789 | |||||||||||
Depreciation and amortization | 16,960 | 15,011 | 33,475 | 29,824 | |||||||||||
General and administrative | 19,792 | 25,699 | 42,637 | 50,099 | |||||||||||
Provision for loan losses | 26,531 | 10,350 | 44,031 | 21,230 | |||||||||||
Impairment of assets | 7,496 | 2,764 | 23,000 | 4,254 | |||||||||||
Other expense | 3,907 | 459 | 4,360 | 3,181 | |||||||||||
Total costs and expenses | $ | 196,549 | $ | 172,422 | $ | 379,947 | $ | 317,893 | |||||||
Income (loss) before earnings from equity method investments and other items | $ | (99,828 | ) | $ | (46,996 | ) | $ | (191,257 | ) | $ | (84,912 | ) | |||
Gain (loss) on early extinguishment of debt, net | (4,868 | ) | (1,047 | ) | (3,164 | ) | 105,556 | ||||||||
Earnings from equity method investments | 18,420 | 19,131 | 53,206 | 44,064 | |||||||||||
Income (loss) from continuing operations before income taxes | $ | (86,276 | ) | $ | (28,912 | ) | $ | (141,215 | ) | $ | 64,708 | ||||
Income tax (expense) benefit | (3,477 | ) | 2,675 | (4,748 | ) | (8,377 | ) | ||||||||
Income (loss) from continuing operations(1) | $ | (89,753 | ) | $ | (26,237 | ) | $ | (145,963 | ) | $ | 56,331 | ||||
Income (loss) from discontinued operations | 507 | 217 | 1,530 | 1,553 | |||||||||||
Gain from discontinued operations | 24,851 | — | 27,257 | — | |||||||||||
Income from sales of residential property | 13,266 | — | 19,999 | — | |||||||||||
Net income (loss) | $ | (51,129 | ) | $ | (26,020 | ) | $ | (97,177 | ) | $ | 57,884 | ||||
Net (income) loss attributable to noncontrolling interests | 722 | (14 | ) | 696 | (444 | ) | |||||||||
Net income (loss) attributable to iStar Financial Inc. | $ | (50,407 | ) | $ | (26,034 | ) | $ | (96,481 | ) | $ | 57,440 | ||||
Preferred dividends | (10,580 | ) | (10,580 | ) | (21,160 | ) | (21,160 | ) | |||||||
Net (income) loss allocable to HPU holders and Participating Security holders(2)(3) | 1,991 | 1,089 | 3,852 | (2,640 | ) | ||||||||||
Net income (loss) allocable to common shareholders | $ | (58,996 | ) | $ | (35,525 | ) | $ | (113,789 | ) | $ | 33,640 | ||||
Per common share data(1): | |||||||||||||||
Income (loss) attributable to iStar Financial Inc. from continuing operations: | |||||||||||||||
Basic | $ | (1.00 | ) | $ | (0.38 | ) | $ | (1.69 | ) | $ | 0.34 | ||||
Diluted | $ | (1.00 | ) | $ | (0.38 | ) | $ | (1.69 | ) | $ | 0.34 | ||||
Net income (loss) attributable to iStar Financial Inc.: | |||||||||||||||
Basic | $ | (0.70 | ) | $ | (0.38 | ) | $ | (1.36 | ) | $ | 0.36 | ||||
Diluted | $ | (0.70 | ) | $ | (0.38 | ) | $ | (1.36 | ) | $ | 0.36 | ||||
Weighted average number of common shares—basic | 84,113 | 92,621 | 83,834 | 92,580 | |||||||||||
Weighted average number of common shares—diluted | 84,113 | 92,621 | 83,834 | 94,758 | |||||||||||
Per HPU share data(1)(2): | |||||||||||||||
Income (loss) attributable to iStar Financial Inc. from continuing operations: | |||||||||||||||
Basic | $ | (187.93 | ) | $ | (73.00 | ) | $ | (319.66 | ) | $ | 65.80 | ||||
Diluted | $ | (187.93 | ) | $ | (73.00 | ) | $ | (319.66 | ) | $ | 64.40 | ||||
Net income (loss) attributable to iStar Financial Inc.: | |||||||||||||||
Basic | $ | (132.73 | ) | $ | (72.60 | ) | $ | (256.80 | ) | $ | 68.73 | ||||
Diluted | $ | (132.73 | ) | $ | (72.60 | ) | $ | (256.80 | ) | $ | 67.27 | ||||
Weighted average number of HPU shares—basic and diluted | 15 | 15 | 15 | 15 |
(1) | Income (loss) from continuing operations attributable to iStar Financial Inc. for the three months ended June 30, 2012 and 2011 was $(89.0) million and $(26.3) million, respectively, and for the six months ended June 30, 2012 and 2011 was $(145.3) million and $55.9 million, respectively. See Note 14 for details on the calculation of earnings per share. |
(2) | HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit Program. |
(3) | Participating Security holders are Company employees and directors who hold unvested restricted stock units, restricted stock awards and common stock equivalents granted under the Company's Long Term Incentive Plans that are eligible to participate in dividends (see Notes 13 and 14). |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income (loss) | $ | (51,129 | ) | $ | (26,020 | ) | $ | (97,177 | ) | $ | 57,884 | ||||
Other comprehensive income (loss): | |||||||||||||||
Reclassification of (gains)/losses on cash flow hedges into earnings upon realization | (68 | ) | (176 | ) | (240 | ) | (353 | ) | |||||||
Unrealized gains/(losses) on available-for-sale securities | 477 | 372 | 634 | 628 | |||||||||||
Unrealized gains/(losses) on cash flow hedges | (85 | ) | (531 | ) | (490 | ) | (592 | ) | |||||||
Unrealized gains/(losses) on cumulative translation adjustment | 108 | 1,367 | (283 | ) | 1,728 | ||||||||||
Other comprehensive income (loss) | $ | 432 | $ | 1,032 | $ | (379 | ) | $ | 1,411 | ||||||
Comprehensive income (loss) | $ | (50,697 | ) | $ | (24,988 | ) | $ | (97,556 | ) | $ | 59,295 | ||||
Net (income) loss attributable to noncontrolling interests | 722 | (14 | ) | 696 | (444 | ) | |||||||||
Comprehensive income (loss) attributable to iStar Financial Inc. | $ | (49,975 | ) | $ | (25,002 | ) | $ | (96,860 | ) | $ | 58,851 |
iStar Financial Inc. Shareholders' Equity | |||||||||||||||||||||||||||||||||||
Preferred Stock(1) | HPU's | Common Stock at Par | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock at cost | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 22 | $ | 9,800 | $ | 140 | $ | 3,834,460 | $ | (2,078,397 | ) | $ | (328 | ) | $ | (237,341 | ) | $ | 45,248 | $ | 1,573,604 | ||||||||||||||
Dividends declared—preferred | — | — | — | — | (21,160 | ) | — | — | — | (21,160 | ) | ||||||||||||||||||||||||
Repurchase of stock | — | — | — | — | — | — | (4,628 | ) | — | (4,628 | ) | ||||||||||||||||||||||||
Issuance of stock/restricted stock unit amortization, net | — | — | 2 | (3,545 | ) | — | — | — | — | (3,543 | ) | ||||||||||||||||||||||||
Net income (loss) for the period(2) | — | — | — | — | (96,481 | ) | — | — | (689 | ) | (97,170 | ) | |||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | — | — | — | (379 | ) | — | — | (379 | ) | ||||||||||||||||||||||||
Repurchase of convertible notes | — | — | — | (2,728 | ) | — | — | — | — | (2,728 | ) | ||||||||||||||||||||||||
Contributions from noncontrolling interests (3) | — | — | — | — | — | — | — | 27,389 | 27,389 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (606 | ) | (606 | ) | ||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 22 | $ | 9,800 | $ | 142 | $ | 3,828,187 | $ | (2,196,038 | ) | $ | (707 | ) | $ | (241,969 | ) | $ | 71,342 | $ | 1,470,779 |
(1) | See Note 12 for details on the Company's Cumulative Redeemable Preferred Stock. |
(2) | For the six months ended June 30, 2012, net loss shown above excludes $7 of net loss attributable to redeemable noncontrolling interests. |
(3) | Includes $27.3 million of land assets contributed by a noncontrolling partner (see Note 5). |
For the Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (97,177 | ) | $ | 57,884 | ||
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||||||
Provision for loan losses | 44,031 | 21,230 | |||||
Impairment of assets | 25,303 | 4,228 | |||||
Depreciation and amortization | 34,418 | 32,065 | |||||
Payments for employee taxes upon vesting of stock-based compensation | (11,657 | ) | (812 | ) | |||
Non-cash expense for stock-based compensation | 8,113 | 8,469 | |||||
Amortization of discounts/premiums and deferred financing costs on debt | 17,679 | 14,551 | |||||
Amortization of discounts/premiums and deferred interest on lending investments | (29,442 | ) | (41,703 | ) | |||
Earnings from equity method investments | (53,206 | ) | (44,064 | ) | |||
Distributions from operations of equity method investments | 56,769 | 23,410 | |||||
Deferred operating lease income | (5,466 | ) | (4,853 | ) | |||
Income from sales of residential property | (19,999 | ) | — | ||||
Gain from discontinued operations | (27,257 | ) | — | ||||
Gain (loss) on early extinguishment of debt, net | 3,164 | (101,832 | ) | ||||
Repayments and repurchases of debt - debt discount (1) | (17,326 | ) | (2,726 | ) | |||
Other operating activities, net | 3,738 | 4,781 | |||||
Changes in assets and liabilities: | |||||||
Changes in accrued interest and operating lease income receivable, net | 3,278 | (898 | ) | ||||
Changes in deferred expenses and other assets, net | 4,118 | (22,262 | ) | ||||
Changes in accounts payable, accrued expenses and other liabilities | 3,723 | 17,856 | |||||
Cash flows from operating activities | $ | (57,196 | ) | $ | (34,676 | ) | |
Cash flows from investing activities: | |||||||
Fundings under existing loan commitments | $ | (23,877 | ) | $ | (39,772 | ) | |
Repayments of and principal collections on loans | 322,045 | 798,274 | |||||
Net proceeds from sales of loans | 56,998 | 88,751 | |||||
Net proceeds from sales of net lease assets | 142,714 | 672 | |||||
Net proceeds from sales of other real estate owned | 168,388 | 92,840 | |||||
Contributions to unconsolidated entities | (6,145 | ) | (20,219 | ) | |||
Distributions from unconsolidated entities | 41,586 | 4,489 | |||||
Capital expenditures on net lease assets | (2,988 | ) | (4,902 | ) | |||
Capital expenditures on REHI and OREO | (29,726 | ) | (15,966 | ) | |||
Changes in restricted cash held in connection with investing activities | (462,605 | ) | (51,985 | ) | |||
Other investing activities, net | (243 | ) | (538 | ) | |||
Cash flows from investing activities | $ | 206,147 | $ | 851,644 | |||
Cash flows from financing activities: | |||||||
Borrowings under secured credit facilities | $ | 850,465 | $ | 2,913,250 | |||
Repayments under secured credit facilities | (392,124 | ) | (1,199,362 | ) | |||
Repayments under unsecured credit facilities | (244,046 | ) | (506,600 | ) | |||
Borrowings under secured term loans | — | 124,575 | |||||
Repayments under secured term loans | (54,767 | ) | (1,680,118 | ) | |||
Borrowings under unsecured notes | 264,029 | — | |||||
Repayments under unsecured notes | (259,584 | ) | (204,405 | ) | |||
Repurchases and redemptions of secured and unsecured notes | (396,356 | ) | (323,642 | ) | |||
Payments for deferred financing costs | (3,248 | ) | (35,526 | ) | |||
Preferred dividends paid | (21,160 | ) | (21,160 | ) | |||
Purchase of treasury stock | (4,628 | ) | (1,487 | ) | |||
Other financing activities | (515 | ) | 1,588 | ||||
Cash flows from financing activities | $ | (261,934 | ) | $ | (932,887 | ) | |
Changes in cash and cash equivalents | $ | (112,983 | ) | $ | (115,919 | ) | |
Cash and cash equivalents at beginning of period | 356,826 | 504,865 | |||||
Cash and cash equivalents at end of period | $ | 243,843 | $ | 388,946 |
(1) | Represents the portion of debt repayments and repurchases made during the period related to the original issue discount ("OID"). Although these amounts do not reflect contractual interest payments made during the period, the OID is considered an operating cash flow in accordance with GAAP. |
As of | |||||||
Type of Investment(1) | June 30, 2012 | December 31, 2011 | |||||
Senior mortgages | $ | 2,237,764 | $ | 2,801,213 | |||
Subordinate mortgages | 149,735 | 211,491 | |||||
Corporate/Partnership loans | 461,425 | 478,892 | |||||
Total gross carrying value of loans(1) | $ | 2,848,924 | $ | 3,491,596 | |||
Reserves for loan losses | (563,786 | ) | (646,624 | ) | |||
Total carrying value of loans | $ | 2,285,138 | $ | 2,844,972 | |||
Other lending investments—securities | 15,672 | 15,790 | |||||
Total loans and other lending investments, net | $ | 2,300,810 | $ | 2,860,762 |
(1) | The Company's recorded investment in loans as of June 30, 2012 and December 31, 2011 was $2.86 billion and $3.50 billion, respectively, which consists of total gross carrying value of loans plus accrued interest of $10.4 million and $13.3 million, for the same two periods, respectively. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Reserve for loan losses at beginning of period | $ | 567,179 | $ | 804,070 | $ | 646,624 | $ | 814,625 | |||||||
Provision for loan losses | 26,531 | 10,350 | 44,031 | 21,230 | |||||||||||
Charge-offs | (29,924 | ) | (113,192 | ) | (126,869 | ) | (134,627 | ) | |||||||
Reserve for loan losses at end of period | $ | 563,786 | $ | 701,228 | $ | 563,786 | $ | 701,228 |
Individually Evaluated for Impairment(1) | Collectively Evaluated for Impairment(2) | Loans Acquired with Deteriorated Credit Quality(3) | Total | ||||||||||||
As of June 30, 2012 | |||||||||||||||
Loans | $ | 1,278,305 | $ | 1,523,578 | $ | 57,461 | $ | 2,859,344 | |||||||
Less: Reserve for loan losses | (487,645 | ) | (56,800 | ) | (19,341 | ) | (563,786 | ) | |||||||
Total | $ | 790,660 | $ | 1,466,778 | $ | 38,120 | $ | 2,295,558 | |||||||
As of December 31, 2011 | |||||||||||||||
Loans | $ | 1,525,337 | $ | 1,919,876 | $ | 59,648 | $ | 3,504,861 | |||||||
Less: Reserve for loan losses | (554,131 | ) | (73,500 | ) | (18,993 | ) | (646,624 | ) | |||||||
Total | $ | 971,206 | $ | 1,846,376 | $ | 40,655 | $ | 2,858,237 |
(1) | The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $1.3 million and a net premium of $0.1 million as of June 30, 2012 and December 31, 2011, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status and therefore, the unamortized amounts associated with these loans are not currently being amortized into income. |
(2) | The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $2.1 million and $0.2 million as of June 30, 2012 and December 31, 2011, respectively. |
(3) | The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net premium of $0.1 million and a net discount of $15.0 million as of June 30, 2012 and December 31, 2011. These loans had cumulative principal balances of $57.7 million and $74.5 million, as of June 30, 2012 and December 31, 2011, respectively. |
As of | |||||||||||||
June 30, 2012 | December 31, 2011 | ||||||||||||
Performing Loans | Weighted Average Risk Ratings | Performing Loans | Weighted Average Risk Ratings | ||||||||||
Senior mortgages | $ | 1,176,248 | 3.00 | $ | 1,514,016 | 3.19 | |||||||
Subordinate mortgages | 97,520 | 2.41 | 190,342 | 3.36 | |||||||||
Corporate/Partnership loans | 455,320 | 3.73 | 472,178 | 3.61 | |||||||||
Total | $ | 1,729,088 | 3.16 | $ | 2,176,536 | 3.29 |
Current | Less Than and Equal to 90 Days(1) | Greater Than 90 Days(1) | Total Past Due | Total | |||||||||||||||
Senior mortgages | $ | 1,276,006 | $ | 124,371 | $ | 842,908 | $ | 967,279 | $ | 2,243,285 | |||||||||
Subordinate mortgages | 97,520 | — | 53,109 | 53,109 | 150,629 | ||||||||||||||
Corporate/Partnership loans | 455,320 | — | 10,110 | 10,110 | 465,430 | ||||||||||||||
Total | $ | 1,828,846 | $ | 124,371 | $ | 906,127 | $ | 1,030,498 | $ | 2,859,344 |
(1) | As of June 30, 2012, all loans that are not current are classified as non-performing and are on non-accrual status. |
As of June 30, 2012 | As of December 31, 2011 | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||
Senior mortgages | $ | 153,956 | $ | 153,565 | $ | — | $ | 219,488 | $ | 218,612 | $ | — | |||||||||||
Corporate/Partnership loans | 10,110 | 10,160 | — | 10,110 | 10,160 | — | |||||||||||||||||
Subtotal | $ | 164,066 | $ | 163,725 | $ | — | $ | 229,598 | $ | 228,772 | $ | — | |||||||||||
With an allowance recorded: | |||||||||||||||||||||||
Senior mortgages | $ | 1,058,007 | $ | 1,053,514 | $ | (470,617 | ) | $ | 1,268,962 | $ | 1,263,195 | $ | (540,670 | ) | |||||||||
Subordinate mortgages | 53,109 | 52,881 | (27,309 | ) | 22,480 | 22,558 | (22,480 | ) | |||||||||||||||
Corporate/Partnership loans | 60,584 | 60,804 | (9,060 | ) | 62,591 | 62,845 | (9,974 | ) | |||||||||||||||
Subtotal | $ | 1,171,700 | $ | 1,167,199 | $ | (506,986 | ) | $ | 1,354,033 | $ | 1,348,598 | $ | (573,124 | ) | |||||||||
Total: | |||||||||||||||||||||||
Senior mortgages | $ | 1,211,963 | $ | 1,207,079 | $ | (470,617 | ) | $ | 1,488,450 | $ | 1,481,807 | $ | (540,670 | ) | |||||||||
Subordinate mortgages | 53,109 | 52,881 | (27,309 | ) | 22,480 | 22,558 | (22,480 | ) | |||||||||||||||
Corporate/Partnership loans | 70,694 | 70,964 | (9,060 | ) | 72,701 | 73,005 | (9,974 | ) | |||||||||||||||
Total | $ | 1,335,766 | $ | 1,330,924 | $ | (506,986 | ) | $ | 1,583,631 | $ | 1,577,370 | $ | (573,124 | ) |
(1) | All of the Company's non-accrual loans are considered impaired and included in the table above. In addition, as of June 30, 2012 and December 31, 2011, certain loans modified through troubled debt restructurings with a recorded investment of $205.5 million and $255.3 million, respectively, are also included as impaired loans in accordance with GAAP although they are performing and on accrual status. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Senior mortgages | $ | 180,037 | $ | 1,799 | $ | 352,098 | $ | 28,620 | $ | 193,187 | $ | 2,206 | $ | 369,686 | $ | 29,586 | |||||||||||||||
Corporate/Partnership loans | 10,110 | — | 10,110 | 200 | 10,110 | — | 10,110 | 320 | |||||||||||||||||||||||
Subtotal | $ | 190,147 | $ | 1,799 | $ | 362,208 | $ | 28,820 | $ | 203,297 | $ | 2,206 | $ | 379,796 | $ | 29,906 | |||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Senior mortgages | $ | 1,041,613 | $ | 1,194 | $ | 1,668,373 | $ | 2,117 | $ | 1,117,396 | $ | 2,434 | $ | 1,723,584 | $ | 4,121 | |||||||||||||||
Subordinate mortgages | 65,659 | — | 25,624 | — | 51,266 | — | 17,083 | — | |||||||||||||||||||||||
Corporate/Partnership loans | 61,956 | 76 | 69,263 | 86 | 62,168 | 156 | 67,663 | 169 | |||||||||||||||||||||||
Subtotal | $ | 1,169,228 | $ | 1,270 | $ | 1,763,260 | $ | 2,203 | $ | 1,230,830 | $ | 2,590 | $ | 1,808,330 | $ | 4,290 | |||||||||||||||
Total: | |||||||||||||||||||||||||||||||
Senior mortgages | $ | 1,221,650 | $ | 2,993 | $ | 2,020,471 | $ | 30,737 | $ | 1,310,583 | $ | 4,640 | $ | 2,093,270 | $ | 33,707 | |||||||||||||||
Subordinate mortgages | 65,659 | — | 25,624 | — | 51,266 | — | 17,083 | — | |||||||||||||||||||||||
Corporate/Partnership loans | 72,066 | 76 | 79,373 | 286 | 72,278 | 156 | 77,773 | 489 | |||||||||||||||||||||||
Total | $ | 1,359,375 | $ | 3,069 | $ | 2,125,468 | $ | 31,023 | $ | 1,434,127 | $ | 4,796 | $ | 2,188,126 | $ | 34,196 |
For the Three Months Ended June 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||
Senior mortgages | 1 | $ | 4,561 | $ | 4,561 | 1 | $ | 20,380 | $ | 20,380 |
For the Six Months Ended June 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||
Senior mortgages | 6 | $ | 310,342 | $ | 264,868 | 4 | $ | 126,051 | $ | 125,786 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
Number of Loans | Outstanding Recorded Investment | Number of Loans | Outstanding Recorded Investment | Number of Loans | Outstanding Recorded Investment | Number of Loans | Outstanding Recorded Investment | ||||||||||||||||||||
Senior mortgages | 1 | $ | 26,120 | 1 | $ | 28,328 | 1 | $ | 26,120 | 1 | $ | 28,328 |
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Land held for investment and development | $ | 738,459 | $ | 711,072 | |||
Operating property | |||||||
Buildings and improvements | 382,919 | 379,644 | |||||
Land | 153,568 | 154,445 | |||||
Less: accumulated depreciation and amortization | (25,265 | ) | (17,027 | ) | |||
Real estate held for investment, net | $ | 1,249,681 | $ | 1,228,134 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
REHI operating income | $ | 14,756 | $ | 6,687 | $ | 29,150 | $ | 14,149 | |||||||
REHI operating expenses | $ | 14,557 | $ | 8,745 | $ | 28,067 | $ | 19,291 |
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Facilities and improvements | $ | 1,480,678 | $ | 1,601,477 | |||
Land and land improvements | 411,668 | 447,603 | |||||
Less: accumulated depreciation | (342,233 | ) | (346,316 | ) | |||
Net lease assets, net | $ | 1,550,113 | $ | 1,702,764 |
Carrying value as of | Equity in earnings | ||||||||||||||||||||||
June 30, 2012 | December 31, 2011 | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
LNR | $ | 176,600 | $ | 159,764 | $ | 8,674 | $ | 10,079 | $ | 20,811 | $ | 24,064 | |||||||||||
Madison Funds | 82,683 | 103,305 | (767 | ) | 5,754 | 8,731 | 7,956 | ||||||||||||||||
Oak Hill Funds | 48,368 | 56,817 | 508 | 572 | 3,883 | 6,078 | |||||||||||||||||
OREO/REHI Investments | 39,251 | 52,803 | 8,070 | (5,450 | ) | 14,195 | (5,450 | ) | |||||||||||||||
Other equity method investments (1) | 69,617 | 73,146 | 1,935 | 8,176 | 5,586 | 11,416 | |||||||||||||||||
Total equity method investments | $ | 416,519 | $ | 445,835 | $ | 18,420 | $ | 19,131 | $ | 53,206 | $ | 44,064 | |||||||||||
Other | 10,982 | 12,000 | |||||||||||||||||||||
Total other investments | $ | 427,501 | $ | 457,835 |
(1) | For the three and six months ended June 30, 2011, amounts include $6.4 million and $7.5 million, respectively, of earnings related to Oak Hill Advisors, L.P. and related entities which were sold during in October 2011. |
For the Three Months Ended March 31, | For the Six Months Ended March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income Statement | |||||||||||||||
Total revenue(2) | $ | 71,337 | $ | 77,394 | $ | 148,696 | $ | 156,413 | |||||||
Income tax expense (benefit)(3) | $ | 1,805 | $ | 2,025 | $ | 3,642 | $ | (32,333 | ) | ||||||
Net income attributable to LNR | $ | 36,178 | $ | 42,036 | $ | 86,799 | $ | 100,366 | |||||||
iStar's ownership percentage | 24 | % | 24 | % | 24 | % | 24 | % | |||||||
iStar's equity in earnings from LNR | $ | 8,674 | $ | 10,079 | $ | 20,811 | $ | 24,064 |
As of March 31, | As of September 30, | ||||||
2012 | 2011 | ||||||
Balance Sheet | |||||||
Total assets(2) | $ | 1,329,460 | $ | 1,288,923 | |||
Total debt(2) | $ | 477,055 | $ | 469,631 | |||
Total liabilities(2) | $ | 564,352 | $ | 576,835 | |||
Noncontrolling interests | $ | 6,943 | $ | 39,940 | |||
LNR Property LLC equity | $ | 758,165 | $ | 672,147 | |||
iStar's ownership percentage | 24 | % | 24 | % | |||
iStar's equity in LNR | $ | 176,600 | $ | 159,764 |
(1) | The Company records its investment in LNR on a one quarter lag, therefore, amounts in the Company's financial statements for the three and six months ended June 30, 2012 and 2011 are based on balances and results from LNR for the three and six months ended March 31, 2012 and 2011, respectively. |
(2) | LNR consolidates certain commercial mortgage-backed securities and collateralized debt obligation trusts that are considered VIEs (and for which it is the primary beneficiary), that have been excluded from the amounts presented above. As of March 31, 2012 and September 30, 2011, the assets of these trusts, which aggregate approximately $85.19 billion and $126.66 billion, respectively, are the sole source of repayment of the related liabilities, which aggregate approximately $84.92 billion and $126.64 billion, respectively, and are non-recourse to LNR and its equity holders, including the Company. In addition, total revenue presented above includes $16.3 million and $30.8 million for the three months ended March 31, 2012 and 2011, respectively, of servicing fee revenue that is eliminated upon consolidation of the VIE's at the LNR level. This income is then added back through consolidation at the LNR level as an adjustment to income allocable to noncontrolling entities and has no net impact on net income attributable to LNR. |
(3) | During the six months ended March 31, 2011, LNR recorded an income tax benefit from the settlement of certain tax liabilities. |
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Other receivables | $ | 19,639 | $ | 13,943 | |||
Deferred financing fees, net(1) | 17,573 | 21,443 | |||||
Net lease in-place lease intangibles, net(2) | 14,363 | 17,013 | |||||
Leasing costs, net(3) | 12,994 | 12,423 | |||||
Derivative asset | 8,660 | — | |||||
Corporate furniture, fixtures and equipment, net(4) | 8,086 | 9,034 | |||||
Prepaid expenses | 5,380 | 5,441 | |||||
Other assets | 18,605 | 28,555 | |||||
Deferred expenses and other assets, net | $ | 105,300 | $ | 107,852 |
(1) | Accumulated amortization on deferred financing fees was $19.4 million and $13.3 million as of June 30, 2012 and December 31, 2011, respectively. |
(2) | Represents unamortized finite lived intangible assets related to the prior acquisition of net lease assets. Accumulated amortization on net lease intangibles was $34.0 million and $33.4 million as of June 30, 2012 and December 31, 2011, respectively. Amortization expense related to these assets was $1.0 million and $1.7 million for the three months ended June 30, 2012 and 2011, respectively, and $2.3 million and $3.4 million for the six months ended June 30, 2012 and 2011, respectively. |
(3) | Accumulated amortization on leasing costs was $5.0 million and $5.5 million as of June 30, 2012 and December 31, 2011, respectively. |
(4) | Accumulated depreciation on corporate furniture, fixtures and equipment was $7.7 million and $8.1 million as of June 30, 2012 and December 31, 2011, respectively. |
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Accrued interest payable | $ | 38,030 | $ | 30,122 | |||
Accrued expenses | 29,104 | 36,332 | |||||
Security deposits and other investment deposits | 12,463 | 12,192 | |||||
Unearned operating lease income | 8,917 | 10,073 | |||||
Property taxes payable | 8,274 | 6,495 | |||||
Other liabilities | 14,706 | 11,479 | |||||
Accounts payable, accrued expenses and other liabilities | $ | 111,494 | $ | 106,693 |
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Deferred tax assets(1) | $ | 57,657 | $ | 50,889 | |||
Valuation allowance | (57,657 | ) | (50,889 | ) | |||
Deferred tax assets, net | $ | — | $ | — |
(1) | Deferred tax assets as of June 30, 2012 primarily include real estate basis differences of $34.2 million, net operating loss carryforwards of $22.5 million and investment basis differences of $1.0 million. Deferred tax assets as of December 31, 2011 include real estate basis differences of $28.7 million, net operating loss carryforwards of $22.8 million, and investment basis differences of $(0.6) million. |
Carrying Value as of | ||||||||||||
June 30, 2012 | December 31, 2011 | Stated Interest Rates | Scheduled Maturity Date | |||||||||
Secured credit facilities and term loans: | ||||||||||||
2011 Tranche A-1 Facility | $ | 646,068 | $ | 961,580 | LIBOR + 3.75% | (1) | June 2013 | |||||
2011 Tranche A-2 Facility | 1,450,000 | 1,450,000 | LIBOR + 5.75% | (1) | June 2014 | |||||||
2012 Tranche A-1 Facility | 328,605 | — | LIBOR + 4.00% | (2) | March 2016 | |||||||
2012 Tranche A-2 Facility | 470,000 | — | LIBOR + 5.75% | (2) | March 2017 | |||||||
Term loans collateralized by net lease assets | 238,425 | 293,192 | 5.05% - 7.68% | Various through 2026 | ||||||||
Total secured credit facilities and term loans | $ | 3,133,098 | $ | 2,704,772 | ||||||||
Unsecured credit facility: | ||||||||||||
Line of credit | $ | — | $ | 243,650 | LIBOR + 0.85% | June 2012 | ||||||
Unsecured notes: | ||||||||||||
5.15% senior notes | — | 263,466 | 5.15 | % | March 2012 | |||||||
5.50% senior notes | — | 92,845 | 5.50 | % | June 2012 | |||||||
LIBOR + 0.50% senior convertible notes(3) | 469,166 | 784,750 | LIBOR + 0.50% | October 2012 | ||||||||
8.625% senior notes | 501,701 | 501,701 | 8.625 | % | June 2013 | |||||||
5.95% senior notes | 448,453 | 448,453 | 5.95 | % | October 2013 | |||||||
6.5% senior notes | 67,055 | 67,055 | 6.5 | % | December 2013 | |||||||
5.70% senior notes | 200,601 | 200,601 | 5.70 | % | March 2014 | |||||||
6.05% senior notes | 105,765 | 105,765 | 6.05 | % | April 2015 | |||||||
5.875% senior notes | 261,403 | 261,403 | 5.875 | % | March 2016 | |||||||
5.85% senior notes | 99,722 | 99,722 | 5.85 | % | March 2017 | |||||||
9.0% senior notes | 275,000 | — | 9.0 | % | June 2017 | |||||||
Total unsecured notes | $ | 2,428,866 | $ | 2,825,761 | ||||||||
Other debt obligations: | ||||||||||||
Other debt obligations | $ | 100,000 | $ | 100,000 | LIBOR + 1.5% | October 2035 | ||||||
Total debt obligations | $ | 5,661,964 | $ | 5,874,183 | ||||||||
Debt discounts, net(3) | (58,025 | ) | (36,643 | ) | ||||||||
Total debt obligations, net | $ | 5,603,939 | $ | 5,837,540 |
(1) | These loans each have a LIBOR floor of 1.25%. As of June 30, 2012, inclusive of the floors, the 2011 Tranche A-1 Facility and 2011 Tranche A-2 Facility loans incurred interest at a rate of 5.00% and 7.00%, respectively. |
(2) | These loans each have a LIBOR floor of 1.25%. As of June 30, 2012, inclusive of the floors, the 2012 Tranche A-1 Facility and 2012 Tranche A-2 Facility loans incurred interest at a rate of 5.25% and 7.00% respectively. |
(3) | The Company's convertible senior floating rate notes due October 2012 ("Convertible Notes") are convertible at the option of the holders into 22.2 shares per $1,000 principal amount of Convertible Notes (reflecting a conversion price of $45.05), on or after August 15, 2012, or prior to that date if certain conditions are met. None of the conversion conditions have been met as of June 30, 2012. As of June 30, 2012, the unamortized discount on these notes was $2.5 million, the net carrying amount of the liability was $466.7 million and the carrying value of the additional paid-in-capital, or equity component of the convertible notes was $34.7 million. For the three and six months ended June 30, 2012, the Company recognized interest expense on the convertible notes of $3.1 million and $8.3 million, respectively, of which $1.8 million and $4.8 million, respectively, related to the amortization of the debt discount. For the three and six months ended June 30, 2011, the Company recognized interest expense on the convertible notes of $4.5 million and $8.9 million respectively, of which $2.9 million and $5.7 million, respectively, related to the amortization of the debt discount. |
Unsecured Debt | Secured Debt | Total | |||||||||
2012 (remaining six months) | $ | 469,166 | $ | — | $ | 469,166 | |||||
2013 | 1,017,209 | 890,941 | 1,908,150 | ||||||||
2014 | 200,601 | 1,382,000 | 1,582,601 | ||||||||
2015 | 105,765 | 82,000 | 187,765 | ||||||||
2016 | 261,403 | 123,000 | 384,403 | ||||||||
Thereafter | 474,722 | 655,157 | 1,129,879 | ||||||||
Total principal maturities | $ | 2,528,866 | $ | 3,133,098 | $ | 5,661,964 | |||||
Unamortized debt discounts, net | (23,826 | ) | (34,199 | ) | (58,025 | ) | |||||
Total long-term debt obligations, net | $ | 2,505,040 | $ | 3,098,899 | $ | 5,603,939 |
(1) | Includes minimum required amortization payments on the 2011 and 2012 Secured Credit Facilities. |
As of June 30, 2012 | As of December 31, 2011 | ||||||||||||||
Encumbered Assets | Unencumbered Assets | Encumbered Assets | Unencumbered Assets | ||||||||||||
Loans and other lending investments, net (1) | $ | 1,723,459 | $ | 634,151 | $ | 1,780,591 | $ | 1,153,671 | |||||||
Net lease assets, net | 1,272,528 | 277,585 | 1,173,982 | 528,782 | |||||||||||
REHI, net | 425,514 | 824,167 | 359,597 | 868,537 | |||||||||||
OREO | 417,011 | 305,156 | 177,092 | 500,366 | |||||||||||
Other investments | 69,740 | 357,761 | 37,957 | 419,878 | |||||||||||
Cash and other assets | — | 935,940 | — | 590,884 | |||||||||||
Total | $ | 3,908,252 | $ | 3,334,760 | $ | 3,529,219 | $ | 4,062,118 |
(1) | As of June 30, 2012 and December 31, 2011, the amounts presented exclude general reserves for loan losses of $56.8 million and $73.5 million, respectively. |
Loans | Net Lease Assets | Strategic Investments | Total | ||||||||||||
Performance-Based Commitments | $ | 44,038 | $ | 17,259 | $ | — | $ | 61,297 | |||||||
Discretionary Fundings | 127,948 | — | — | 127,948 | |||||||||||
Other | — | — | 25,090 | 25,090 | |||||||||||
Total | $ | 171,986 | $ | 17,259 | $ | 25,090 | $ | 214,335 |
Derivative Assets as of | Derivative Liabilities as of | ||||||||||||||||||||||
June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | ||||||||||||||||||||
Derivative | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||
Foreign exchange contracts | Other Assets | $ | 8,660 | N/A | $ | — | N/A | $ | — | Other Liabilities | $ | 1,342 | |||||||||||
Cash flow interest rate swap | Other Assets | — | N/A | — | N/A | — | Other Liabilities | 1,031 | |||||||||||||||
Total | $ | 8,660 | $ | — | $ | — | $ | 2,373 |
Derivatives Designated in Hedging Relationships | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) | Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion) | |||||||
For the Three Months Ended June 30, 2012 | |||||||||||
Cash flow interest rate swap | Interest Expense | $ | (85 | ) | $ | 68 | N/A | ||||
For the Three Months Ended June 30, 2011 | |||||||||||
Cash flow interest rate swap | Interest Expense | $ | (594 | ) | $ | 176 | N/A | ||||
For the Six Months Ended June 30, 2012 | |||||||||||
Cash flow interest rate swap | Interest Expense | $ | (124 | ) | $ | 240 | N/A | ||||
For the Six Months Ended June 30, 2011 | |||||||||||
Cash flow interest rate swap | Interest Expense | $ | (830 | ) | $ | 353 | N/A |
Amount of Gain or (Loss) Recognized in Income on Derivative | |||||||||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
Derivatives not Designated in Hedging Relationships | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Foreign Exchange Contracts | Other Expense | $ | 10,191 | $ | (4,777 | ) | $ | 1,332 | $ | (8,893 | ) |
Derivative Type | Notional Amount | Notional (USD Equivalent) | Maturity | ||||||
Sells EUR/Buys USD Forward | € | 109,000 | $ | 137,990 | July 2012 | ||||
Sells GBP/Buys USD Forward | £ | 53,502 | $ | 83,889 | July 2012 | ||||
Sells CAD/Buys USD Forward | C$ | 50,641 | $ | 49,778 | July 2012 |
Cumulative Preferential Cash Dividends(1)(2) | ||||||||||||||
Series | Shares Issued and Outstanding (in thousands) | Par Value | Rate per Annum of the $25.00 Liquidation Preference | Equivalent to Fixed Annual Rate (per share) | ||||||||||
D | 4,000 | $ | 0.001 | 8.000 | % | $ | 2.00 | |||||||
E | 5,600 | $ | 0.001 | 7.875 | % | $ | 1.97 | |||||||
F | 4,000 | $ | 0.001 | 7.8 | % | $ | 1.95 | |||||||
G | 3,200 | $ | 0.001 | 7.65 | % | $ | 1.91 | |||||||
I | 5,000 | $ | 0.001 | 7.50 | % | $ | 1.88 | |||||||
21,800 |
(1) | Holders of shares of the Series D, E, F, G and I preferred stock are entitled to receive dividends, when and as declared by the Board of Directors, out of funds legally available for the payment of dividends. Dividends are cumulative from the date of original issue and are payable quarterly in arrears on or before the 15th day of each March, June, September and December or, if not a business day, the next succeeding business day. Any dividend payable on the preferred stock for any partial dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends will be payable to holders of record as of the close of business on the first day of the calendar month in which the applicable dividend payment date falls or on another date designated by the Board of Directors of the Company for the payment of dividends that is not more than 30 nor less than 10 days prior to the dividend payment date. |
(2) | The Company declared and paid dividends aggregating $4.0 million, $5.5 million, $3.9 million, $3.1 million and $4.7 million on its Series D, E, F, G, and I preferred stock, respectively, during the six months ended June 30, 2012. There are no dividend arrearages on any of the preferred shares currently outstanding. |
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Unrealized gains on available-for-sale securities | $ | 1,223 | $ | 589 | |||
Unrealized gains on cash flow hedges | 1,256 | 1,986 | |||||
Unrealized losses on cumulative translation adjustment | (3,186 | ) | (2,903 | ) | |||
Accumulated other comprehensive income (loss) | $ | (707 | ) | $ | (328 | ) |
• | 1,200,000 service-based restricted stock units granted to the Company's Chairman and Chief Executive Officer that will vest in two equal installments on June 15 of 2013 and 2014. Upon vesting of these units, the holder will receive shares of the Company's Common Stock in the amount of the vested units, net of statutory minimum required tax withholdings. These awards carry dividend equivalent rights that entitle the holder to receive dividend payments prior to vesting, if and when dividends are paid on shares of the Company's Common Stock. |
• | 3,669,347 restricted stock units originally granted to executives and other officers of the Company on December 19, 2008 (the "Original Units") and subsequently modified in July 2011. The number of Amended Units is equal to 75% of the Original Units granted to an employee less, in the case of each executive level employee, the number of restricted stock units granted to the executive in March 2011. The remaining Amended Units will vest in two equal installments on January 1, 2013 and 2014, so long as the employee remains employed by the Company on the vesting dates, subject to certain accelerated vesting rights in the event of termination of employment without cause. Upon vesting of these units, holders will receive shares of the Company's Common Stock in the amount of the vested units, net of statutory minimum required tax withholdings. These awards carry dividend equivalent rights that entitle the holders to receive dividend payments prior to vesting, if and when dividends are paid on shares of the Company's Common Stock. |
• | 713,040 service-based restricted stock units granted to employees with original vesting terms ranging from two years to five years. Upon vesting of these units, holders will receive shares of the Company's Common Stock in the amount of the vested units, net of statutory minimum required tax withholdings. These awards carry dividend equivalent rights that entitle the holders to receive dividend payments prior to vesting, if and when dividends are paid on shares of the Company's Common Stock. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income (loss) from continuing operations | $ | (89,753 | ) | $ | (26,237 | ) | $ | (145,963 | ) | $ | 56,331 | ||||
Net (income) loss attributable to noncontrolling interests | 722 | (14 | ) | 696 | (444 | ) | |||||||||
Income from sales of residential property | 13,266 | — | 19,999 | — | |||||||||||
Preferred dividends | (10,580 | ) | (10,580 | ) | (21,160 | ) | (21,160 | ) | |||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders, HPU holders and Participating Security Holders(1) | $ | (86,345 | ) | $ | (36,831 | ) | $ | (146,428 | ) | $ | 34,727 |
(1) | For the six months ended June 30, 2011, includes income from continuing operations allocable to Participating Security Holders of $1,540 and $1,507 on a basic and dilutive basis, respectively. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Earnings allocable to common shares: | |||||||||||||||
Numerator for basic earnings per share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders | $ | (83,526 | ) | $ | (35,736 | ) | $ | (141,633 | ) | $ | 32,200 | ||||
Income (loss) from discontinued operations | 490 | 211 | 1,480 | 1,440 | |||||||||||
Gain from discontinued operations | 24,040 | — | 26,364 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders | $ | (58,996 | ) | $ | (35,525 | ) | $ | (113,789 | ) | $ | 33,640 | ||||
Numerator for diluted earnings per share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders | $ | (83,526 | ) | $ | (35,736 | ) | $ | (141,633 | ) | $ | 32,254 | ||||
Income (loss) from discontinued operations | 490 | 211 | 1,480 | 1,442 | |||||||||||
Gain from discontinued operations | 24,040 | — | 26,364 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders | $ | (58,996 | ) | $ | (35,525 | ) | $ | (113,789 | ) | $ | 33,696 | ||||
Denominator for basic and diluted earnings per share: | |||||||||||||||
Weighted average common shares outstanding for basic earnings per common share | 84,113 | 92,621 | 83,834 | 92,580 | |||||||||||
Add: effect of assumed shared issued under treasury stock method for restricted shares | — | — | — | 1,880 | |||||||||||
Add: effect of joint venture shares | — | — | — | 298 | |||||||||||
Weighted average common shares outstanding for diluted earnings per common share | 84,113 | 92,621 | 83,834 | 94,758 | |||||||||||
Basic earnings per common share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders | $ | (1.00 | ) | $ | (0.38 | ) | $ | (1.69 | ) | $ | 0.34 | ||||
Income (loss) from discontinued operations | 0.01 | — | 0.02 | 0.02 | |||||||||||
Gain from discontinued operations | 0.29 | — | 0.31 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders | $ | (0.70 | ) | $ | (0.38 | ) | $ | (1.36 | ) | $ | 0.36 | ||||
Diluted earnings per common share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders | $ | (1.00 | ) | $ | (0.38 | ) | $ | (1.69 | ) | $ | 0.34 | ||||
Income (loss) from discontinued operations | 0.01 | — | 0.02 | 0.02 | |||||||||||
Gain from discontinued operations | 0.29 | — | 0.31 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders | $ | (0.70 | ) | $ | (0.38 | ) | $ | (1.36 | ) | $ | 0.36 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Earnings allocable to High Performance Units: | |||||||||||||||
Numerator for basic earnings per HPU share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders | $ | (2,819 | ) | $ | (1,095 | ) | $ | (4,795 | ) | $ | 987 | ||||
Income (loss) from discontinued operations | 17 | 6 | 50 | 44 | |||||||||||
Gain from discontinued operations | 811 | — | 893 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders | $ | (1,991 | ) | $ | (1,089 | ) | $ | (3,852 | ) | $ | 1,031 | ||||
Numerator for diluted earnings per HPU share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders | $ | (2,819 | ) | $ | (1,095 | ) | $ | (4,795 | ) | $ | 966 | ||||
Income (loss) from discontinued operations | 17 | 6 | 50 | 43 | |||||||||||
Gain from discontinued operations | 811 | — | 893 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders | $ | (1,991 | ) | $ | (1,089 | ) | $ | (3,852 | ) | $ | 1,009 | ||||
Denominator for basic and diluted earnings per HPU share: | |||||||||||||||
Weighted average High Performance Units outstanding for basic and diluted earnings per share | 15 | 15 | 15 | 15 | |||||||||||
Basic earnings per HPU share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders | $ | (187.93 | ) | $ | (73.00 | ) | $ | (319.66 | ) | $ | 65.80 | ||||
Income (loss) from discontinued operations | 1.13 | 0.40 | 3.33 | 2.93 | |||||||||||
Gain from discontinued operations | 54.07 | — | 59.53 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders | $ | (132.73 | ) | $ | (72.60 | ) | $ | (256.80 | ) | $ | 68.73 | ||||
Diluted earnings per HPU share: | |||||||||||||||
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders | $ | (187.93 | ) | $ | (73.00 | ) | $ | (319.66 | ) | $ | 64.40 | ||||
Income (loss) from discontinued operations | 1.13 | 0.40 | 3.33 | 2.87 | |||||||||||
Gain from discontinued operations | 54.07 | — | 59.53 | — | |||||||||||
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders | $ | (132.73 | ) | $ | (72.60 | ) | $ | (256.80 | ) | $ | 67.27 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Joint venture shares | 298 | 298 | 298 | — | |||||||
Stock options | — | 44 | — | 44 |
Fair Value Using | |||||||||||||||
Total | Quoted market prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
As of June 30, 2012 | |||||||||||||||
Recurring basis: | |||||||||||||||
Derivative assets | $ | 8,660 | $ | — | $ | 8,660 | $ | — | |||||||
Non-recurring basis: | |||||||||||||||
Impaired loans | $ | 93,100 | $ | — | $ | — | $ | 93,100 | |||||||
Impaired net lease assets | $ | 5,235 | $ | — | $ | — | $ | 5,235 | |||||||
As of December 31, 2011 | |||||||||||||||
Recurring basis: | |||||||||||||||
Derivative liabilities | $ | 2,373 | $ | — | $ | 2,373 | $ | — | |||||||
Non-recurring basis: | |||||||||||||||
Impaired loans | $ | 271,968 | $ | — | $ | — | $ | 271,968 | |||||||
Impaired OREO | $ | 43,660 | $ | — | $ | — | $ | 43,660 |
Fair Value as of June 30, 2012 | Valuation Technique(s) | Unobservable Input | Weighted Average | |||||||
Impaired loans—income producing properties | $ | 93,100 | Discounted cash flow | Discount rate | 9.9 | % | ||||
Capitalization rate | 8.5 | % | ||||||||
Average annual percentage market rate growth | 1.7 | % | ||||||||
Average annual increase in occupancy | 2.2 | % | ||||||||
Impaired net lease assets—income producing properties | 5,235 | Discounted cash flow | Discount rate | 10.5 | % | |||||
Capitalization rate | 8.5 | % | ||||||||
Average annual percentage market rate growth | 2.5 | % | ||||||||
Average annual increase in occupancy | 12.4 | % | ||||||||
Total | $ | 98,335 |
As of | |||||||||||||||
June 30, 2012 | December 31, 2011 | ||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||
Financial assets: | |||||||||||||||
Loans and other lending investments, net | $ | 2,300,810 | $ | 2,318,406 | $ | 2,860,762 | $ | 2,786,595 | |||||||
Financial liabilities: | |||||||||||||||
Debt obligations, net | $ | 5,603,939 | $ | 5,582,526 | $ | 5,837,540 | $ | 5,495,197 |
(1) | The carrying values of other financial instruments including cash and cash equivalents, restricted cash, accrued interest receivable and accounts payable, approximate the fair values of the instruments. Cash and cash equivalents and restricted cash values are considered Level 1 on the fair value hierarchy. The fair value of other financial instruments, including derivative assets and liabilities and marketable securities are included in the previous fair value hierarchy table. |
Real Estate Lending | Net Leasing | Real Estate Investment | Corporate/ Other(1) | Company Total | |||||||||||||||
Three Months Ended June 30, 2012: | |||||||||||||||||||
Total revenue(2) | $ | 43,244 | $ | 37,928 | $ | 14,756 | $ | 793 | $ | 96,721 | |||||||||
Earnings from equity method investments | — | 649 | 8,070 | 9,701 | 18,420 | ||||||||||||||
Income from sales of residential property | — | — | 13,266 | — | 13,266 | ||||||||||||||
Operating costs | (1,512 | ) | (4,965 | ) | (22,425 | ) | (2,394 | ) | (31,296 | ) | |||||||||
Direct segment profit | $ | 41,732 | $ | 33,612 | $ | 13,667 | $ | 8,100 | $ | 97,111 | |||||||||
Allocated interest expense | (35,129 | ) | (24,513 | ) | (29,347 | ) | (5,485 | ) | (94,474 | ) | |||||||||
Allocated general and administrative(3) | (3,741 | ) | (2,639 | ) | (3,126 | ) | (6,839 | ) | (16,345 | ) | |||||||||
Segment profit (loss)(4) | $ | 2,862 | $ | 6,460 | $ | (18,806 | ) | $ | (4,224 | ) | $ | (13,708 | ) | ||||||
Other significant non-cash items: | |||||||||||||||||||
Provision for loan losses | $ | 26,531 | $ | — | $ | — | $ | — | $ | 26,531 | |||||||||
Impairment of assets | $ | — | $ | 6,150 | $ | 1,346 | $ | — | $ | 7,496 | |||||||||
Depreciation and amortization | $ | — | $ | 11,828 | $ | 4,690 | $ | 442 | $ | 16,960 | |||||||||
Capitalized expenditures | $ | — | $ | 2,693 | $ | 18,942 | $ | — | $ | 21,635 | |||||||||
Three Months Ended June 30, 2011: | |||||||||||||||||||
Total revenue(2) | $ | 80,848 | $ | 37,641 | $ | 6,687 | $ | 250 | $ | 125,426 | |||||||||
Earnings from equity method investments | — | 631 | (5,450 | ) | 23,950 | 19,131 | |||||||||||||
Operating costs | 935 | (4,384 | ) | (18,002 | ) | (1,394 | ) | (22,845 | ) | ||||||||||
Direct segment profit (loss) | $ | 81,783 | $ | 33,888 | $ | (16,765 | ) | $ | 22,806 | $ | 121,712 | ||||||||
Allocated interest expense | (47,557 | ) | (21,713 | ) | (19,964 | ) | (6,519 | ) | (95,753 | ) | |||||||||
Allocated general and administrative(3) | (5,416 | ) | (2,589 | ) | (2,274 | ) | (11,106 | ) | (21,385 | ) | |||||||||
Segment profit (loss)(4) | $ | 28,810 | $ | 9,586 | $ | (39,003 | ) | $ | 5,181 | $ | 4,574 | ||||||||
Other significant non-cash items: | |||||||||||||||||||
Provision for loan losses | $ | 10,350 | $ | — | $ | — | $ | — | $ | 10,350 | |||||||||
Impairment of assets | $ | — | $ | — | $ | 2,764 | $ | — | $ | 2,764 | |||||||||
Depreciation and amortization | $ | — | $ | 12,689 | $ | 1,804 | $ | 518 | $ | 15,011 | |||||||||
Capitalized expenditures | $ | — | $ | 2,736 | $ | 8,970 | $ | — | $ | 11,706 | |||||||||
Six Months Ended June 30, 2012: | |||||||||||||||||||
Total revenue(2) | $ | 80,513 | $ | 76,408 | $ | 29,150 | $ | 2,619 | $ | 188,690 | |||||||||
Earnings from equity method investments | — | 1,295 | 14,195 | 37,716 | 53,206 | ||||||||||||||
Income from sales of residential property | — | — | 19,999 | — | 19,999 | ||||||||||||||
Operating costs | (2,427 | ) | (8,127 | ) | (44,498 | ) | (1,934 | ) | (56,986 | ) | |||||||||
Direct segment profit | $ | 78,086 | $ | 69,576 | $ | 18,846 | $ | 38,401 | $ | 204,909 | |||||||||
Allocated interest expense | (69,373 | ) | (46,077 | ) | (54,120 | ) | (10,248 | ) | (179,818 | ) | |||||||||
Allocated general and administrative(3) | (8,320 | ) | (5,653 | ) | (6,490 | ) | (14,061 | ) | (34,524 | ) |
Segment profit (loss)(4) | $ | 393 | $ | 17,846 | $ | (41,764 | ) | $ | 14,092 | $ | (9,433 | ) | |||||||
Other significant non-cash items: | |||||||||||||||||||
Provision for loan losses | $ | 44,031 | $ | — | $ | — | $ | — | $ | 44,031 | |||||||||
Impairment of assets | $ | — | $ | 19,700 | $ | 3,850 | $ | (550 | ) | $ | 23,000 | ||||||||
Depreciation and amortization | $ | — | $ | 23,948 | $ | 8,440 | $ | 1,087 | $ | 33,475 | |||||||||
Capitalized expenditures | $ | — | $ | 2,988 | $ | 29,726 | $ | — | $ | 32,714 | |||||||||
Six Months Ended June 30, 2011: | |||||||||||||||||||
Total revenue(2) | $ | 141,983 | $ | 75,754 | $ | 14,149 | $ | 1,095 | $ | 232,981 | |||||||||
Earnings from equity method investments | — | 1,269 | (5,450 | ) | 48,245 | 44,064 | |||||||||||||
Operating costs | (315 | ) | (8,670 | ) | (35,789 | ) | (2,866 | ) | (47,640 | ) | |||||||||
Direct segment profit (loss) | $ | 141,668 | $ | 68,353 | $ | (27,090 | ) | $ | 46,474 | $ | 229,405 | ||||||||
Allocated interest expense | (84,322 | ) | (36,731 | ) | (33,046 | ) | (10,747 | ) | (164,846 | ) | |||||||||
Allocated general and administrative(3) | (10,892 | ) | (4,946 | ) | (4,269 | ) | (21,523 | ) | (41,630 | ) | |||||||||
Segment profit (loss)(4) | $ | 46,454 | $ | 26,676 | $ | (64,405 | ) | $ | 14,204 | $ | 22,929 | ||||||||
Other significant non-cash items: | |||||||||||||||||||
Provision for loan losses | $ | 21,230 | $ | — | $ | — | $ | — | $ | 21,230 | |||||||||
Impairment of assets | $ | — | $ | — | $ | 3,381 | $ | 873 | $ | 4,254 | |||||||||
Depreciation and amortization | $ | — | $ | 25,214 | $ | 3,554 | $ | 1,056 | $ | 29,824 | |||||||||
Capitalized expenditures | $ | — | $ | 4,902 | $ | 15,966 | $ | — | $ | 20,868 | |||||||||
As of June 30, 2012 | |||||||||||||||||||
Total assets | $ | 2,333,405 | $ | 1,683,703 | $ | 2,058,264 | $ | 1,110,840 | $ | 7,186,212 | |||||||||
As of December 31, 2011 | |||||||||||||||||||
Total assets | $ | 2,892,240 | $ | 1,837,425 | $ | 1,982,420 | $ | 805,752 | $ | 7,517,837 |
(1) | Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not related to the other reportable segments above, including the Company's equity investment in LNR of $176.6 million and $159.8 million, as of June 30, 2012 and December 31, 2011, respectively, and the Company's share of equity in earnings from LNR of $8.7 million and $20.8 million, for the three and six months ended June 30, 2012, respectively, and $10.1 million and $24.1 million for the three and six months ended June 30, 2011. See Note 7 for further details on the Company's investment in LNR and summarized financial information of LNR. |
(2) | Total revenue represents all revenue earned during the period related to the assets in each segment. Revenue from the Real Estate Lending segment primarily represents interest income, revenue from the Net Leasing segment primarily represents operating lease income and revenue from Real Estate Investment primarily represents operating revenues from REHI properties. |
(3) | General and administrative excludes stock-based compensation expense of $3.4 million and $8.1 million for the three and six months ended June 30, 2012, respectively, and $4.3 million and $8.5 million for the three and six months ended June 30, 2011 respectively. |
(4) | The following is a reconciliation of segment profit (loss) to income (loss) from continuing operations ($ in thousands): |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Segment profit (loss) | $ | (13,708 | ) | $ | 4,574 | $ | (9,433 | ) | $ | 22,929 | |||||
Less: Provision for loan losses | (26,531 | ) | (10,350 | ) | (44,031 | ) | (21,230 | ) | |||||||
Less: Impairment of assets | (7,496 | ) | (2,764 | ) | (23,000 | ) | (4,254 | ) | |||||||
Less: Stock-based compensation expense | (3,447 | ) | (4,314 | ) | (8,113 | ) | (8,469 | ) | |||||||
Less: Depreciation and amortization | (16,960 | ) | (15,011 | ) | (33,475 | ) | (29,824 | ) | |||||||
Less: Income tax (expense) benefit | (3,477 | ) | 2,675 | (4,748 | ) | (8,377 | ) | ||||||||
Less: Income from sales of residential property | (13,266 | ) | — | (19,999 | ) | — | |||||||||
Add: Gain (loss) on early extinguishment of debt, net | (4,868 | ) | (1,047 | ) | (3,164 | ) | 105,556 | ||||||||
Income (loss) from continuing operations | $ | (89,753 | ) | $ | (26,237 | ) | $ | (145,963 | ) | $ | 56,331 |
For the Three Months Ended June 30, | ||||||||||||||
2012 | 2011 | $ Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Interest income | $ | 36,448 | $ | 80,185 | $ | (43,737 | ) | (55 | )% | |||||
Operating lease income | 37,928 | 37,642 | 286 | 1 | % | |||||||||
Other income | 22,345 | 7,599 | 14,746 | >100% | ||||||||||
Total revenue | $ | 96,721 | $ | 125,426 | $ | (28,705 | ) | (23 | )% | |||||
Interest expense | $ | 94,474 | $ | 95,753 | $ | (1,279 | ) | (1 | )% | |||||
Operating costs—net lease assets | 4,965 | 4,384 | 581 | 13 | % | |||||||||
Operating costs—REHI and OREO | 22,424 | 18,002 | 4,422 | 25 | % | |||||||||
Depreciation and amortization | 16,960 | 15,011 | 1,949 | 13 | % | |||||||||
General and administrative | 19,792 | 25,699 | (5,907 | ) | (23 | )% | ||||||||
Provision for loan losses | 26,531 | 10,350 | 16,181 | >100% | ||||||||||
Impairment of assets | 7,496 | 2,764 | 4,732 | >100% | ||||||||||
Other expense | 3,907 | 459 | 3,448 | >100% | ||||||||||
Total costs and expenses | $ | 196,549 | $ | 172,422 | $ | 24,127 | 14 | % | ||||||
Gain (loss) on early extinguishment of debt, net | (4,868 | ) | (1,047 | ) | (3,821 | ) | >100 | |||||||
Earnings from equity method investments | 18,420 | 19,131 | (711 | ) | (4 | )% | ||||||||
Income tax (expense) benefit | (3,477 | ) | 2,675 | (6,152 | ) | >100% | ||||||||
Income (loss) from discontinued operations | 507 | 217 | 290 | >100% | ||||||||||
Gain from discontinued operations | 24,851 | — | 24,851 | 100 | % | |||||||||
Income from sales of residential property | 13,266 | — | 13,266 | 100 | % | |||||||||
Net income (loss) | $ | (51,129 | ) | $ | (26,020 | ) | $ | (25,109 | ) | >100% |
For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | $ Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Interest income | $ | 73,651 | $ | 140,953 | $ | (67,302 | ) | (48 | )% | |||||
Operating lease income | 76,408 | 75,755 | 653 | 1 | % | |||||||||
Other income | 38,631 | 16,273 | 22,358 | >100% | ||||||||||
Total revenue | $ | 188,690 | $ | 232,981 | $ | (44,291 | ) | (19 | )% | |||||
Interest expense | $ | 179,818 | $ | 164,846 | $ | 14,972 | 9 | % | ||||||
Operating costs—net lease assets | 8,128 | 8,670 | (542 | ) | (6 | )% | ||||||||
Operating costs—REHI and OREO | 44,498 | 35,789 | 8,709 | 24 | % | |||||||||
Depreciation and amortization | 33,475 | 29,824 | 3,651 | 12 | % | |||||||||
General and administrative | 42,637 | 50,099 | (7,462 | ) | (15 | )% | ||||||||
Provision for loan losses | 44,031 | 21,230 | 22,801 | >100% | ||||||||||
Impairment of assets | 23,000 | 4,254 | 18,746 | >100% | ||||||||||
Other expense | 4,360 | 3,181 | 1,179 | 37 | % | |||||||||
Total costs and expenses | $ | 379,947 | $ | 317,893 | $ | 62,054 | 20 | % | ||||||
Gain (loss) on early extinguishment of debt, net | (3,164 | ) | 105,556 | (108,720 | ) | >100% | ||||||||
Earnings from equity method investments | 53,206 | 44,064 | 9,142 | 21 | % | |||||||||
Income tax (expense) benefit | (4,748 | ) | (8,377 | ) | 3,629 | 43 | % | |||||||
Income (loss) from discontinued operations | 1,530 | 1,553 | (23 | ) | 1 | % | ||||||||
Gain from discontinued operations | 27,257 | — | 27,257 | 100 | % | |||||||||
Income from sales of residential property | 19,999 | — | 19,999 | 100 | % | |||||||||
Net income (loss) | $ | (97,177 | ) | $ | 57,884 | $ | (155,061 | ) | >100% |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted income | |||||||||||||||
Net income (loss) allocable to common shareholders | $ | (58,996 | ) | $ | (35,525 | ) | $ | (113,789 | ) | $ | 33,640 | ||||
Add: Depreciation and amortization (1) | 17,180 | 16,133 | 34,418 | 32,065 | |||||||||||
Add: Provision for loan losses | 26,531 | 10,350 | 44,031 | 21,230 | |||||||||||
Add: Impairment of assets (2) | 7,496 | 2,764 | 23,520 | 4,228 | |||||||||||
Add: Stock-based compensation expense | 3,447 | 4,314 | 8,113 | 8,469 | |||||||||||
Less: (Gain)/loss on early extinguishment of debt, net | 4,868 | 1,047 | 3,164 | (105,556 | ) | ||||||||||
Less: HPU/Participating Security allocation | (1,943 | ) | (1,029 | ) | (3,708 | ) | 2,879 | ||||||||
Adjusted income (loss) allocable to common shareholders | $ | (1,417 | ) | $ | (1,946 | ) | $ | (4,251 | ) | $ | (3,045 | ) |
(1) | For the three and six months ended June 30, 2012, depreciation and amortization includes $220 and $943, respectively, of depreciation and amortization reclassified to discontinued operations. For the three and six months ended June 30, 2011, depreciation and amortization includes $1,122 and $2,241, respectively, of depreciation and amortization reclassified of discontinued operations. |
(2) | For the six months ended June 30, 2012 and 2011, impairment of assets includes $520 and $(26), respectively, of impairment of assets reclassified to discontinued operations. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted EBITDA | |||||||||||||||
Net income (loss) | $ | (51,129 | ) | $ | (26,020 | ) | $ | (97,177 | ) | $ | 57,884 | ||||
Add: Interest expense(1) | 94,739 | 96,772 | 180,882 | 166,406 | |||||||||||
Add: Income tax expense (benefit) | 3,477 | (2,675 | ) | 4,748 | 8,377 | ||||||||||
Add: Depreciation and amortization(2) | 17,180 | 16,133 | 34,418 | 32,065 | |||||||||||
EBITDA | $ | 64,267 | $ | 84,210 | $ | 122,871 | $ | 264,732 | |||||||
Add: Provision for loan losses | 26,531 | 10,350 | 44,031 | 21,230 | |||||||||||
Add: Impairment of assets(3) | 7,496 | 2,764 | 23,520 | 4,228 | |||||||||||
Add: Stock-based compensation expense | 3,447 | 4,314 | 8,113 | 8,469 | |||||||||||
Less: (Gain)/loss on early extinguishment of debt, net | 4,868 | 1,047 | 3,164 | (105,556 | ) | ||||||||||
Adjusted EBITDA | $ | 106,609 | $ | 102,685 | $ | 201,699 | $ | 193,103 |
(1) | For the three and six months ended June 30, 2012, interest expense includes $265 and $1,064, respectively, of interest expense reclassified to discontinued operations. For the three and six months ended June 30, 2011, interest expense includes $1,019 and $1,560, respectively, of interest expense reclassified to discounted operations. |
(2) | For the three and six months ended June 30, 2012, depreciation and amortization includes $220 and $943, respectively, of depreciation and amortization reclassified to discontinued operations. For the three and six months ended June 30, 2011, depreciation and amortization includes $1,122 and $2,241, respectively, of depreciation and amortization reclassified of discontinued operations. |
(3) | For the six months ended June 30, 2012 and 2011, impairment of assets includes $520 and $(26), respectively, of impairment of assets reclassified to discontinued operations. |
As of | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Non-performing loans | |||||||
Carrying value(1) | $ | 638,970 | $ | 771,196 | |||
As a percentage of total carrying value of loans | 28.0 | % | 27.1 | % | |||
Watch list loans | |||||||
Carrying value | $ | 75,001 | $ | 136,006 | |||
As a percentage of total carrying value of loans | 3.3 | % | 4.8 | % | |||
Reserve for loan losses | |||||||
Total reserve for loan losses | $ | 563,786 | $ | 646,624 | |||
As a percentage of total loans before loan loss reserves | 19.8 | % | 18.5 | % | |||
Non-performing loan asset-specific reserves for loan losses | $ | 491,286 | $ | 557,129 | |||
As a percentage of gross carrying value of non-performing loans | 43.5 | % | 41.9 | % |
(1) | As of June 30, 2012 and December 31, 2011, carrying values of non-performing loans are net of asset-specific reserves for loan losses of $491.3 million and $557.1 million, respectively. |
Property/Collateral Types | Performing Loans | Net Lease Assets | Non- performing Loans | REHI | OREO | Total | % of Total | |||||||||||||||||||
Land | $ | 199,712 | $ | 55,997 | $ | 195,785 | $ | 815,195 | $ | 107,178 | $ | 1,373,867 | 21.8 | % | ||||||||||||
Apartment / Residential | 383,818 | — | 84,207 | 29,933 | 465,120 | 963,078 | 15.3 | % | ||||||||||||||||||
Office | 114,597 | 464,757 | 35,639 | 68,998 | 2,616 | 686,607 | 10.9 | % | ||||||||||||||||||
Industrial / R&D | 87,492 | 462,889 | 7,874 | 48,525 | — | 606,780 | 9.6 | % | ||||||||||||||||||
Retail | 250,249 | 53,086 | 135,742 | 81,871 | 61,689 | 582,637 | 9.2 | % | ||||||||||||||||||
Entertainment / Leisure | 40,101 | 420,128 | 79,182 | — | 253 | 539,664 | 8.6 | % | ||||||||||||||||||
Hotel | 243,180 | 93,256 | 94,196 | 33,647 | 24,439 | 488,718 | 7.7 | % | ||||||||||||||||||
Mixed Use / Mixed Collateral | 235,448 | — | — | 171,512 | 60,872 | 467,832 | 7.4 | % | ||||||||||||||||||
Other property types | 164,043 | — | 6,345 | — | — | 170,388 | 2.7 | % | ||||||||||||||||||
Other Investments | — | — | — | — | — | 427,501 | 6.8 | % | ||||||||||||||||||
Total | $ | 1,718,640 | $ | 1,550,113 | $ | 638,970 | $ | 1,249,681 | $ | 722,167 | $ | 6,307,072 | 100.0 | % |
(1) | Based on the carrying value of our total investment portfolio gross of general loan loss reserves. |
Geographic Region | Carrying Value(1) | % of Total | ||||
West | $ | 1,533,768 | 24.4 | % | ||
Northeast | 1,161,873 | 18.4 | % | |||
Southeast | 898,679 | 14.2 | % | |||
Southwest | 798,354 | 12.7 | % | |||
Mid-Atlantic | 624,219 | 9.9 | % | |||
Various | 404,954 | 6.4 | % | |||
International (2) | 352,640 | 5.6 | % | |||
Central | 329,758 | 5.2 | % | |||
Northwest | 202,827 | 3.2 | % | |||
Total | $ | 6,307,072 | 100.0 | % |
(1) | Based on the carrying value of our total investment portfolio gross of general loan loss reserves. |
(2) | Includes $221.8 million of European assets. |
Principal And Interest Payments Due By Period | |||||||||||||||||||||||
Total | Less Than 1 Year | 2 - 3 Years(1) | 4 - 5 Years(1) | 6 - 10 Years | After 10 Years | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Long-Term Debt Obligations: | |||||||||||||||||||||||
Secured credit facilities | $ | 2,894,673 | $ | 646,673 | $ | 1,614,000 | $ | 634,000 | $ | — | $ | — | |||||||||||
Unsecured notes | 1,959,700 | 501,701 | 821,874 | 636,125 | — | — | |||||||||||||||||
Convertible notes | 469,166 | 469,166 | — | — | — | — | |||||||||||||||||
Secured term loans | 238,425 | 53,268 | — | — | 173,613 | 11,544 | |||||||||||||||||
Other debt obligations | 100,000 | — | — | — | — | 100,000 | |||||||||||||||||
Total principal maturities | $ | 5,661,964 | $ | 1,670,808 | $ | 2,435,874 | $ | 1,270,125 | $ | 173,613 | $ | 111,544 | |||||||||||
Interest Payable(2) | 921,779 | 345,005 | 348,291 | 161,783 | 38,991 | 27,709 | |||||||||||||||||
Operating Lease Obligations | 35,786 | 5,813 | 9,707 | 8,979 | 11,287 | — | |||||||||||||||||
Total(3) | $ | 6,619,529 | $ | 2,021,626 | $ | 2,793,872 | $ | 1,440,887 | $ | 223,891 | $ | 139,253 |
(1) | Future long-term debt obligations due during the years ending December 31, 2013 and 2014 are $1.91 billion and $1.58 billion, respectively. |
(2) | All variable-rate debt assumes a 30-day LIBOR rate of 0.25% (the 30-day LIBOR rate at June 30, 2012). |
(3) | We also have issued letters of credit totaling $12.7 million in connection with six of our investments. See Unfunded Commitments below, for a discussion of certain unfunded commitments related to our lending and net lease businesses. |
As of June 30, 2012 | As of December 31, 2011 | ||||||||||||||
Encumbered Assets | Unencumbered Assets | Encumbered Assets | Unencumbered Assets | ||||||||||||
Loans and other lending investments, net (1) | $ | 1,723,459 | $ | 634,151 | $ | 1,780,591 | $ | 1,153,671 | |||||||
Net lease assets, net | 1,272,528 | 277,585 | 1,173,982 | 528,782 | |||||||||||
REHI, net | 425,514 | 824,167 | 359,597 | 868,537 | |||||||||||
OREO | 417,011 | 305,156 | 177,092 | 500,366 | |||||||||||
Other investments | 69,740 | 357,761 | 37,957 | 419,878 | |||||||||||
Cash and other assets | — | 935,940 | — | 590,884 | |||||||||||
Total | $ | 3,908,252 | $ | 3,334,760 | $ | 3,529,219 | $ | 4,062,118 |
(1) | As of June 30, 2012 and December 31, 2011, the amounts presented exclude general reserves for loan losses of $56.8 million and $73.5 million, respectively. |
Loans | Net Lease Assets | Strategic Investments | Total | ||||||||||||
Performance-Based Commitments | $ | 44,038 | $ | 17,259 | $ | — | $ | 61,297 | |||||||
Discretionary Fundings | 127,948 | — | — | 127,948 | |||||||||||
Other | — | — | 25,090 | 25,090 | |||||||||||
Total | $ | 171,986 | $ | 17,259 | $ | 25,090 | $ | 214,335 |
• | We recorded equity in earnings from our investments in Oak Hill funds of $0.5 million and $3.9 million, respectively, for the three and six months ended June 30, 2012. |
• | During the six months ended June 30, 2012, we redeemed our interests in four investments in Oak Hill related entities for $7.8 million of net cash proceeds. |
• | During 2011, we sold a substantial portion of our interests in Oak Hill Advisors, L.P. and related entities. The transaction was completed in part through sales of interests to unrelated third parties and in part through redemption of interests by principals of Oak Hill Advisors, L.P., including Mr. August. In conjunction with the sale, we retained interests in our share of certain unearned incentive fees of various funds. These fees are contingent on the future performance of the funds and we will recognize income related to these fees if and when the amounts are realized. |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Dollar Value of Shares that May Yet be Purchased Under the Plans(1) | ||||||||||
May 1 - May 31, 2012 | 351,086 | $ | 5.72 | 351,086 | $ | 18,634,702 | |||||||
June 1 - June 30, 2012 | 458,634 | $ | 5.67 | 458,634 | $ | 16,033,753 |
(1) | On May 16, 2012, the Company authorized the repurchase, from time to time, on the open market or otherwise, of up to an additional $20.0 million of its Common Stock at prevailing market prices or at negotiated prices, including pursuant to one or more trading pans. There is no fixed expiration date to this stock repurchase program. |
Exhibit Number | Document Description |
4.1 | Indenture, between iStar Financial Inc. and U.S. Bank Trust National Association, as trustee, dated as of May 8, 2012 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 11, 2012). |
4.2 | 9.0% Senior Notes due 2017 - Rule 144A Global Note (incorporated by reference from the Company's Current Report on Form 8-K filed on May 11, 2012). |
4.3 | 9.0% Senior Notes due 2017 - Regulation S Global Note (incorporated by reference from the Company's Current Report on Form 8-K filed on May 11, 2012). |
10.1 | Registration Rights Agreement, by and among iStar Financial Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc. and J.P. Morgan Securities LLC, as the initial purchasers, dated as of May 8, 2012 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 11, 2012). |
31.0 | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act |
32.0 | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act. |
101 | The following financial information from the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2012 is formatted in XBRL ("eXtensible Business Reporting Language"): (i) the Consolidated Balance Sheets (unaudited) as of June 30, 2012 and December 31, 2011, (ii) the Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2012 and 2011, (iii) the Consolidated Statements of Comprehensive Income (Loss) (unaudited) for the three and six months ended June 30, 2012 and 2011, (iv) the Consolidated Statement of Changes in Equity (unaudited) for the six months ended June 30, 2012, (v) the Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2012 and 2011 and (vi) the Notes to the Consolidated Financial Statements (unaudited).* |
* | In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Exchange Act of 1934 and otherwise is not subject to liability under these sections. |
iSTAR FINANCIAL INC. Registrant | ||
Date: | August 7, 2012 | /s/ JAY SUGARMAN |
Jay Sugarman Chairman of the Board of Directors and Chief Executive Officer (principal executive officer) | ||
iSTAR FINANCIAL INC. Registrant | ||
Date: | August 7, 2012 | /s/ DAVID M. DISTASO |
David M. DiStaso Chief Financial Officer (principal financial and accounting officer) |
Date: | August 7, 2012 | By: | /s/ JAY SUGARMAN | |||
Name: | Jay Sugarman | |||||
Title: | Chief Executive Officer |
Date: | August 7, 2012 | By: | /s/ DAVID M. DISTASO | |||
Name: | David M. DiStaso | |||||
Title: | Chief Financial Officer (principal financial and accounting officer) |
Date: | August 7, 2012 | By: | /s/ JAY SUGARMAN | |||
Name: | Jay Sugarman | |||||
Title: | Chief Executive Officer |
Date: | August 7, 2012 | By: | /s/ DAVID M. DISTASO | |||
Name: | David M. DiStaso | |||||
Title: | Chief Financial Officer (principal financial and accounting officer) |
Basis of Presentation and Principles of Consolidation (Details) (USD $)
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Total revenues and total expenses related to consolidated VIEs | ||
Noncontrolling interests | $ 71,342,000 | $ 45,248,000 |
OHA SCF
|
||
Total revenues and total expenses related to consolidated VIEs | ||
Total assets | 51,600,000 | 56,900,000 |
Total debt | 0 | 0 |
Noncontrolling interests | 100,000 | 100,000 |
Variable interest entity unfunded commitment | 16,900,000 | |
Madison DA
|
||
Total revenues and total expenses related to consolidated VIEs | ||
Total assets | 36,000,000 | 37,400,000 |
Total debt | 0 | 0 |
Noncontrolling interests | 5,100,000 | 5,400,000 |
Unconsolidated VIEs
|
||
Total revenues and total expenses related to consolidated VIEs | ||
Variable interest entity unfunded commitment | 8,200,000 | |
Number of variable interest entities (in investments) | 26 | |
Carrying value of the investments | $ 191,500,000 |
Commitments and Contingencies (Details 2) (USD $)
|
3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
|
Jun. 30, 2012
Unsecured debt
|
Jun. 30, 2012
Unsecured Notes 9.0% senior notes
|
Dec. 31, 2011
Unsecured Notes 9.0% senior notes
|
Jun. 30, 2012
Secured Debt
|
||||||
Business Risks and Uncertainties | |||||||||||||
Carrying Value | $ 5,661,964,000 | [1] | $ 5,874,183,000 | $ 2,528,866,000 | [1] | $ 275,000,000 | $ 0 | $ 3,133,098,000 | [1] | ||||
Stated interest rate (as a percent) | 9.00% | ||||||||||||
Long-term debt maturing in remainder of fiscal year | 970,900,000 | 699,900,000 | |||||||||||
Restricted cash company's intent | 463,000,000 | ||||||||||||
Cash and cash equivalents | 243,843,000 | 356,826,000 | 388,946,000 | 504,865,000 | |||||||||
Cash and cash equivalents and restricted cash available for repayment of indebtedness | 706,900,000 | ||||||||||||
Current debt | 469,200,000 | ||||||||||||
Debt maturities | 501,700,000 | ||||||||||||
Total unencumbered assets | 2,400,000,000 | ||||||||||||
Legal settlement payment | $ 2,000,000 | ||||||||||||
|
Other Investments (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2011
|
Sep. 30, 2011
|
|||||||||||||||||||
Equity method investments | ||||||||||||||||||||||||||||
Carrying value | $ 416,519,000 | $ 416,519,000 | $ 445,835,000 | |||||||||||||||||||||||||
Equity in earnings | 18,420,000 | 19,131,000 | 53,206,000 | 44,064,000 | ||||||||||||||||||||||||
Other, carrying value | 10,982,000 | 10,982,000 | 12,000,000 | |||||||||||||||||||||||||
Total other investments, carrying value | 427,501,000 | 427,501,000 | 457,835,000 | |||||||||||||||||||||||||
LNR and certain commercial mortgage backed securities and collateralized debt obligation trusts that are considered VIEs
|
||||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Total VIE trust assets | 85,190,000,000 | 85,190,000,000 | 126,660,000,000 | |||||||||||||||||||||||||
Total VIE trust liabilities | 84,920,000,000 | 84,920,000,000 | 126,640,000,000 | |||||||||||||||||||||||||
Servicing fee revenue | 16,300,000 | 30,800,000 | ||||||||||||||||||||||||||
LNR Property LLC ("LNR")
|
||||||||||||||||||||||||||||
Equity method investments | ||||||||||||||||||||||||||||
Carrying value | 176,600,000 | 176,600,000 | [1],[2] | 176,600,000 | 176,600,000 | [1],[2] | 159,764,000 | 159,764,000 | [1],[2] | |||||||||||||||||||
Equity in earnings | 8,674,000 | 8,674,000 | [1],[2] | 10,079,000 | 10,079,000 | [1],[2] | 20,811,000 | 20,811,000 | [1],[2] | 24,064,000 | 24,064,000 | [1],[2] | ||||||||||||||||
Income Statement | ||||||||||||||||||||||||||||
Total revenue | 71,337,000 | [1],[2] | 77,394,000 | [1],[2] | 148,696,000 | [1],[2] | 156,413,000 | [1],[2] | ||||||||||||||||||||
Income tax expense (benefit) | 1,805,000 | [1],[2],[3] | 2,025,000 | [1],[2],[3] | 3,642,000 | [1],[2],[3] | (32,333,000) | [1],[2],[3] | ||||||||||||||||||||
Net income attributable to LNR | 36,178,000 | [1],[2] | 42,036,000 | [1],[2] | 86,799,000 | [1],[2] | 100,366,000 | [1],[2] | ||||||||||||||||||||
iStar's ownership percentage | 24.00% | [1],[2] | 24.00% | [1],[2] | 24.00% | [1],[2] | 24.00% | [1],[2] | 24.00% | [1],[2] | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Total assets | 1,329,460,000 | [1],[2] | 1,329,460,000 | [1],[2] | 1,288,923,000 | [1],[2] | ||||||||||||||||||||||
Total debt | 477,055,000 | [1],[2] | 477,055,000 | [1],[2] | 469,631,000 | [1],[2] | ||||||||||||||||||||||
Total liabilities | 564,352,000 | [1],[2] | 564,352,000 | [1],[2] | 576,835,000 | [1],[2] | ||||||||||||||||||||||
Noncontrolling interests | 6,943,000 | [1],[2] | 6,943,000 | [1],[2] | 39,940,000 | [1],[2] | ||||||||||||||||||||||
LNR Property LLC equity | 758,165,000 | [1],[2] | 758,165,000 | [1],[2] | 672,147,000 | [1],[2] | ||||||||||||||||||||||
Madison Funds
|
||||||||||||||||||||||||||||
Equity method investments | ||||||||||||||||||||||||||||
Carrying value | 82,683,000 | 82,683,000 | 103,305,000 | |||||||||||||||||||||||||
Equity in earnings | (767,000) | 5,754,000 | 8,731,000 | 7,956,000 | ||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Income from sales of investment | 13,700,000 | |||||||||||||||||||||||||||
Oak Hill Funds [Member]
|
||||||||||||||||||||||||||||
Equity method investments | ||||||||||||||||||||||||||||
Carrying value | 48,368,000 | 48,368,000 | 56,817,000 | |||||||||||||||||||||||||
Equity in earnings | 508,000 | 572,000 | 3,883,000 | 6,078,000 | ||||||||||||||||||||||||
Included within earnings from equity method investments | 6,400,000 | 7,500,000 | ||||||||||||||||||||||||||
OREO/REHI Investments
|
||||||||||||||||||||||||||||
Equity method investments | ||||||||||||||||||||||||||||
Carrying value | 39,251,000 | 39,251,000 | 52,803,000 | |||||||||||||||||||||||||
Equity in earnings | 8,070,000 | (5,450,000) | 14,195,000 | (5,450,000) | ||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Income from sales of residential property | 10,200,000 | 18,200,000 | ||||||||||||||||||||||||||
Other Equity Method Investments
|
||||||||||||||||||||||||||||
Equity method investments | ||||||||||||||||||||||||||||
Carrying value | 69,617,000 | [4] | 69,617,000 | [4] | 73,146,000 | [4] | ||||||||||||||||||||||
Equity in earnings | $ 1,935,000 | [4] | $ 8,176,000 | [4] | $ 5,586,000 | [4] | $ 11,416,000 | [4] | ||||||||||||||||||||
|
Segment Reporting (Details 2) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||||
Reconciliation of segment profit (loss) to income (loss) from continuing operations | ||||||||||||
Segment profit (loss) | $ (13,708) | [1] | $ 4,574 | [1] | $ (9,433) | [1] | $ 22,929 | [1] | ||||
Less: Provision for loan losses | (26,531) | (10,350) | (44,031) | (21,230) | ||||||||
Less: Impairment of assets | (7,496) | (2,764) | (23,000) | (4,254) | ||||||||
Less: Stock-based compensation expense | (3,447) | (4,314) | (8,113) | (8,469) | ||||||||
Less: Depreciation and amortization | (16,960) | (15,011) | (33,475) | (29,824) | ||||||||
Income tax (expense) benefit | (3,477) | 2,675 | (4,748) | (8,377) | ||||||||
Less: Income from sales of residential property | (13,266) | 0 | (19,999) | 0 | ||||||||
Add: Gain (loss) on early extinguishment of debt, net | (4,868) | (1,047) | (3,164) | 105,556 | ||||||||
Income (loss) from continuing operations | $ (89,753) | [2] | $ (26,237) | [2] | $ (145,963) | [2] | $ 56,331 | [2] | ||||
|
Derivatives (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Derivative financial instruments on consolidated balance sheets | ||
Derivative Assets | $ 8,660 | $ 0 |
Derivative Liabilities | 0 | 2,373 |
Foreign exchange contracts
|
||
Derivative financial instruments on consolidated balance sheets | ||
Derivative Assets | 8,660 | 0 |
Derivative Liabilities | 0 | 1,342 |
Cash flow interest rate swap
|
||
Derivative financial instruments on consolidated balance sheets | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 0 | $ 1,031 |
Derivatives (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of derivative financial instruments as well as their classification on Consolidated Balance Sheets | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011 ($ in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial instruments on Consolidated Statements of Operations |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of foreign currency derivatives outstanding | The following table presents the Company's foreign currency derivatives outstanding as of June 30, 2012 ($ in thousands):
|
Derivatives (Details 3)
|
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
Foreign currency derivatives
USD ($)
|
Dec. 31, 2011
Foreign currency derivatives
USD ($)
|
Jun. 30, 2012
Sells EUR /Buys USD Forward
USD ($)
|
Jun. 30, 2012
Sells EUR /Buys USD Forward
EUR (€)
|
Jun. 30, 2012
Sells GBP/Buys USD Forward
USD ($)
|
Jun. 30, 2012
Sells GBP/Buys USD Forward
GBP (£)
|
Jun. 30, 2012
Sells CAD/Buys USD Forward
USD ($)
|
Jun. 30, 2012
Sells CAD/Buys USD Forward
CAD
|
Jun. 30, 2012
Interest rate swap
USD ($)
|
|
Derivatives | |||||||||
Notional Amount | $ 137,990,000 | € 109,000,000 | $ 83,889,000 | £ 53,502,000 | $ 49,778,000 | 50,641,000 | |||
Maturity | July 2012 | July 2012 | July 2012 | July 2012 | July 2012 | July 2012 | |||
Other expense | (1,100,000) | ||||||||
Expense related to qualifying cash flow hedges expected to be reclassified to earnings over the next 12 months | 600,000 | ||||||||
Income related to previously terminated cash flow hedges expected to be reclassified to earnings over the next 12 months | 700,000 | ||||||||
Foreign currency derivative collateral included in restricted cash | $ 9,300,000 | $ 9,600,000 |
Segment Reporting
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company evaluates performance based on the following financial measures for each segment ($ in thousands):
Explanatory Notes: _______________________________________________________________________________
|
Debt Obligations, net (Debt Obligations Summary) (Details) (USD $)
|
6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2012
Secured 2011 Tranche A-1 Facility Due 2013
|
Dec. 31, 2011
Secured 2011 Tranche A-1 Facility Due 2013
|
Jun. 30, 2012
Secured 2011 Tranche A-2 Facility Due 2014
|
Dec. 31, 2011
Secured 2011 Tranche A-2 Facility Due 2014
|
Jun. 30, 2012
Secured 2012 Tranche A-1 Facility Due 2016
|
Dec. 31, 2011
Secured 2012 Tranche A-1 Facility Due 2016
|
Jun. 30, 2012
Secured 2012 Tranche A-2 Facility Due 2017
|
Dec. 31, 2011
Secured 2012 Tranche A-2 Facility Due 2017
|
Jun. 30, 2012
Secured Term Loans Collateralized by net lease assets due through 2026
|
Dec. 31, 2011
Secured Term Loans Collateralized by net lease assets due through 2026
|
Jun. 30, 2012
Secured Credit Facility
|
Dec. 31, 2011
Secured Credit Facility
|
Jun. 30, 2012
Unsecured Line of credit due June 2012
|
Dec. 31, 2011
Unsecured Line of credit due June 2012
|
Jun. 30, 2012
Unsecured Notes 5.15% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.15% senior notes
|
Jun. 30, 2012
Unsecured Notes 5.50% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.50% senior notes
|
Jun. 30, 2012
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Jun. 30, 2011
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Jun. 30, 2012
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Jun. 30, 2011
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Dec. 31, 2011
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Jun. 30, 2012
Unsecured Notes 8.625% senior notes
|
Dec. 31, 2011
Unsecured Notes 8.625% senior notes
|
Jun. 30, 2012
Unsecured Notes 5.95% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.95% senior notes
|
Jun. 30, 2012
Unsecured Notes 6.5% senior notes
|
Dec. 31, 2011
Unsecured Notes 6.5% senior notes
|
Jun. 30, 2012
Unsecured Notes 5.70% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.70% senior notes
|
Jun. 30, 2012
Unsecured Notes 6.05% senior notes
|
Dec. 31, 2011
Unsecured Notes 6.05% senior notes
|
Jun. 30, 2012
Unsecured Notes 5.875% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.875% senior notes
|
Jun. 30, 2012
Unsecured Notes 5.85% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.85% senior notes
|
Jun. 30, 2012
Unsecured Notes 9.0% senior notes
|
Dec. 31, 2011
Unsecured Notes 9.0% senior notes
|
Jun. 30, 2012
Unsecured Notes
|
Dec. 31, 2011
Unsecured Notes
|
Jun. 30, 2012
Other debt obligations due in October, 2035
|
Dec. 31, 2011
Other debt obligations due in October, 2035
|
Mar. 31, 2011
Minimum
Secured 2011 Tranche A-1 Facility Due 2013
|
Mar. 31, 2011
Minimum
Secured 2011 Tranche A-2 Facility Due 2014
|
Mar. 31, 2011
Minimum
Secured 2012 Tranche A-1 Facility Due 2016
|
Jun. 30, 2012
Minimum
Secured 2012 Tranche A-2 Facility Due 2017
|
||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt obligations | $ 5,661,964,000 | [1] | $ 5,874,183,000 | $ 646,068,000 | $ 961,580,000 | $ 1,450,000,000 | $ 1,450,000,000 | $ 328,605,000 | $ 0 | $ 470,000,000 | $ 0 | $ 238,425,000 | $ 293,192,000 | $ 3,133,098,000 | $ 2,704,772,000 | $ 0 | $ 243,650,000 | $ 0 | $ 263,466,000 | $ 0 | $ 92,845,000 | $ 469,166,000 | [2] | $ 469,166,000 | [2] | $ 784,750,000 | [2] | $ 501,701,000 | $ 501,701,000 | $ 448,453,000 | $ 448,453,000 | $ 67,055,000 | $ 67,055,000 | $ 200,601,000 | $ 200,601,000 | $ 105,765,000 | $ 105,765,000 | $ 261,403,000 | $ 261,403,000 | $ 99,722,000 | $ 99,722,000 | $ 275,000,000 | $ 0 | $ 2,428,866,000 | $ 2,825,761,000 | $ 100,000,000 | $ 100,000,000 | |||||||||||||||||||
Stated interest rate (as a percent) | 5.15% | 5.50% | 8.625% | 5.95% | 6.50% | 5.70% | 6.05% | 5.875% | 5.85% | 9.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest rate, spread (as a percent) | 3.75% | [3] | 5.75% | [3] | 4.00% | [4] | 5.75% | [4] | 0.85% | 0.50% | [2] | 0.50% | [2] | 1.50% | 1.25% | 1.25% | 1.25% | 1.25% | ||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest rate, basis | LIBOR | [3] | LIBOR | [3] | LIBOR | [4] | LIBOR | [4] | LIBOR | LIBOR | [2] | LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective interest rate (as a percent) | 5.00% | 7.00% | 5.25% | 7.00% | 5.15% | 5.50% | 5.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate, minimum (as a percent) | 5.05% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate, maximum (as a percent) | 7.68% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discounts, net | (58,025,000) | [1],[2] | (36,643,000) | [2] | 2,500,000 | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt obligations, net | 5,603,939,000 | [1] | 5,837,540,000 | 466,700,000 | 466,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares per $1000 of principal amount of convertible notes | 22.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount used for debt instrument conversion ratio | 1,000 | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ 45.05 | $ 45.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying value of the additional paid-in-capital, or equity component of the convertible notes | 34,700,000 | 34,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense on the convertible notes recognized | 3,100,000 | 4,500,000 | 8,300,000 | 8,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of the debt discount | $ 1,800,000 | $ 2,900,000 | $ 4,800,000 | $ 5,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Segment Reporting (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial measures for each segment based on which performance is evaluated | The Company evaluates performance based on the following financial measures for each segment ($ in thousands):
Explanatory Notes: _______________________________________________________________________________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment profit (loss) to income (loss) from continuing operations | The following is a reconciliation of segment profit (loss) to income (loss) from continuing operations ($ in thousands):
|
Debt Obligations, net (Narrative) (Details) (USD $)
|
1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2012
LeaseAssets
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
Mar. 31, 2012
2012 Secured Credit Facilities
tranches
|
Mar. 31, 2012
Secured 2012 Tranche A-1 Facility Due 2016
|
Jun. 30, 2012
Secured 2012 Tranche A-1 Facility Due 2016
|
Jun. 30, 2012
Secured 2012 Tranche A-1 Facility Due 2016
|
Dec. 31, 2011
Secured 2012 Tranche A-1 Facility Due 2016
|
Jun. 30, 2012
Secured 2012 Tranche A-2 Facility Due 2017
|
Dec. 31, 2011
Secured 2012 Tranche A-2 Facility Due 2017
|
Jun. 30, 2012
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Jun. 30, 2012
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Dec. 31, 2011
Unsecured Notes LIBOR plus 0.50% senior convertible notes
|
Jun. 30, 2012
Unsecured Line of credit due June 2012
|
Jun. 30, 2012
Unsecured Line of credit due June 2012
|
Dec. 31, 2011
Unsecured Line of credit due June 2012
|
Mar. 31, 2011
Secured 2011 Tranche A-2 Facility Due 2014
|
Jun. 30, 2012
Secured 2011 Tranche A-2 Facility Due 2014
|
Dec. 31, 2011
Secured 2011 Tranche A-2 Facility Due 2014
|
Mar. 31, 2011
2011 Secured Credit Facilities
tranches
|
Mar. 31, 2011
Secured 2011 Tranche A-1 Facility Due 2013
|
Jun. 30, 2012
Secured 2011 Tranche A-1 Facility Due 2013
|
Jun. 30, 2012
Secured 2011 Tranche A-1 Facility Due 2013
|
Dec. 31, 2011
Secured 2011 Tranche A-1 Facility Due 2013
|
Apr. 30, 2012
Secured Term Loan LIBOR plus 4.50% due 2014
|
Jun. 30, 2012
Secured Term Loan LIBOR plus 4.50% due 2014
|
Jun. 30, 2012
Unsecured Credit Facilities
|
Jan. 31, 2011
Secured Notes 10.0% senior notes due 2014
|
Jan. 02, 2011
Secured Notes 10.0% senior notes due 2014
|
May 31, 2012
Unsecured Notes 9.0% senior notes
|
Jun. 30, 2012
Unsecured Notes 9.0% senior notes
|
Dec. 31, 2011
Unsecured Notes 9.0% senior notes
|
Jun. 30, 2012
Senior unsecured notes with various maturities ranging from March 2012 to October 2014
|
Jun. 30, 2012
Senior unsecured notes with various maturities ranging from March 2012 to October 2014
|
Jun. 30, 2012
Unsecured Notes 5.50% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.50% senior notes
|
Jun. 30, 2012
Unsecured Notes 5.15% senior notes
|
Dec. 31, 2011
Unsecured Notes 5.15% senior notes
|
Jun. 30, 2012
Secured Credit Facility
|
Dec. 31, 2011
Secured Credit Facility
|
Mar. 31, 2011
Minimum
Secured 2012 Tranche A-1 Facility Due 2016
|
Jun. 30, 2012
Minimum
Secured 2012 Tranche A-2 Facility Due 2017
|
Mar. 31, 2011
Minimum
Secured 2011 Tranche A-2 Facility Due 2014
|
Mar. 31, 2011
Minimum
Secured 2011 Tranche A-1 Facility Due 2013
|
Jun. 30, 2012
Real Estate Held for Investment (REHI)
|
Dec. 31, 2011
Real Estate Held for Investment (REHI)
|
Jun. 30, 2012
Other Real Estate Owned (OREO)
|
Dec. 31, 2011
Other Real Estate Owned (OREO)
|
Dec. 31, 2011
Maturing on or before June 2012
Secured 2011 Tranche A-1 Facility Due 2013
|
Jun. 30, 2012
Maturing on or before December 31, 2012
Secured 2012 Tranche A-1 Facility Due 2016
|
Dec. 31, 2011
Maturing on or before December 31, 2012
Secured 2011 Tranche A-1 Facility Due 2013
|
Jun. 30, 2012
Maturing on or before June 2013
Secured 2012 Tranche A-1 Facility Due 2016
|
Dec. 31, 2011
Maturing on or before June 2013
Secured 2011 Tranche A-1 Facility Due 2013
|
|||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest rate, basis | LIBOR | [1] | LIBOR | [1] | LIBOR | [2] | LIBOR | LIBOR | [3] | LIBOR | [3] | LIBOR | LIBOR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest rate, spread (as a percent) | 4.00% | [1] | 4.00% | [1] | 5.75% | [1] | 0.50% | [2] | 0.50% | [2] | 0.85% | 0.85% | 5.75% | [3] | 3.75% | [3] | 3.75% | [3] | 4.50% | 0.85% | 1.25% | 1.25% | 1.25% | 1.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of tranches | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings on debt instrument | $ 880,000,000 | $ 410,000,000 | $ 470,000,000 | $ 1,450,000,000 | $ 2,950,000,000 | $ 1,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of par credit facilities were issued at | 98.00% | 98.00% | 98.50% | 98.50% | 99.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of principal amount | 81,400,000 | 315,600,000 | 244,000,000 | 243,700,000 | 853,900,000 | 50,800,000 | 90,300,000 | 169,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum aggregate cumulative amortization payment | 41,000,000 | 41,000,000 | 646,100,000 | 646,100,000 | 200,000,000 | 450,000,000 | 41,000,000 | 750,000,000 | 600,000 | 1,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Periods following the initial payment of amortization that additional amortization payments are due | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum commencement period of amortization after repayment of the Tranche A-1 Facility | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization payment due on or before each six month anniversary after the repayment of the Tranche A-1 facility | 150,000,000 | 150,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on early extinguishment of debt, net | (4,868,000) | (1,047,000) | (3,164,000) | 105,556,000 | (3,100,000) | (3,100,000) | (2,100,000) | (3,100,000) | (200,000) | 109,000,000 | 300,000 | 3,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of net lease assets sold (in lease assets) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of debt extinguished | 312,300,000 | 411,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate (as a percent) | 10.00% | 9.00% | 5.50% | 5.15% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | 5,661,964,000 | [4] | 5,661,964,000 | [4] | 5,874,183,000 | 328,605,000 | 328,605,000 | 0 | 470,000,000 | 0 | 469,166,000 | [2] | 469,166,000 | [2] | 784,750,000 | [2] | 0 | 0 | 243,650,000 | 1,450,000,000 | 1,450,000,000 | 646,068,000 | 646,068,000 | 961,580,000 | 275,000,000 | 0 | 0 | 92,845,000 | 0 | 263,466,000 | 3,133,098,000 | 2,704,772,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Effective interest rate (as a percent) | 5.25% | 5.25% | 7.00% | 5.50% | 5.50% | 7.00% | 5.00% | 5.00% | 5.15% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of issue price to principal amount | 98.012% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and other lending investments encumbered assets | 1,723,459,000 | [5] | 1,723,459,000 | [5] | 1,780,591,000 | [5] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and other lending investments unencumbered assets | 634,151,000 | [5] | 634,151,000 | [5] | 1,153,671,000 | [5] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Encumbered property subject to or available for operating lease, net | 1,272,528,000 | 1,272,528,000 | 1,173,982,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unencumbered property subject to or available for operating lease net | 277,585,000 | 277,585,000 | 528,782,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rehi and oreo assets pledged as collateral | 425,514,000 | 359,597,000 | 417,011,000 | 177,092,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rehi and oreo assets not pledged as collateral | 824,167,000 | 868,537,000 | 305,156,000 | 500,366,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other encumbered investments | 69,740,000 | 69,740,000 | 37,957,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other unencumbered investments | 357,761,000 | 357,761,000 | 419,878,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and other assets pledged as collateral | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and other assets not pledged as collateral | 935,940,000 | 935,940,000 | 590,884,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total encumbered assets | 3,908,252,000 | 3,908,252,000 | 3,529,219,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unencumbered assets | 3,334,760,000 | 3,334,760,000 | 4,062,118,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for loan losses | $ 56,800,000 | [6] | $ 56,800,000 | [6] | $ 73,500,000 | [6] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum ratio of unencumbered assets to unsecured indebtedness | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multiple of the minimum collateral coverage on outstanding borrowings | 1.25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of REIT taxable income permitted for distribution under debt covenants | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Equity (Details 4) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Accumulated other comprehensive income (loss) reflected in the Company's shareholders' equity | ||
Unrealized gains on available-for-sale securities | $ 1,223 | $ 589 |
Unrealized gains on cash flow hedges | 1,256 | 1,986 |
Unrealized losses on cumulative translation adjustment | (3,186) | (2,903) |
Accumulated other comprehensive income (loss) | $ (707) | $ (328) |
Stock-Based Compensation Plans and Employee Benefits (Details) (USD $)
Share data in Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
Y
|
Jun. 30, 2011
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3,447,000 | $ 4,314,000 | $ 8,113,000 | $ 8,469,000 |
Unrecognized compensation cost | $ 17,000,000 | $ 17,000,000 | ||
Weighted-average period to recognize the unrecognized compensation cost (in years) | 1.08 | |||
Long-term Incentive Plan 2006 and 2009 [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance (in shares) | 4.1 | 4.1 |