Earnings Per Share

The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted EPS calculations ($ in thousands, except for per share data):



	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

Explanatory Note:

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(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 and six months ended June 30, 2012 and 2011, the following shares were anti-dilutive ($ in thousands):



	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