Exhibit 99.1
Item 6. Selected Financial Data
The following table sets forth selected financial data on a consolidated historical basis for the Company. This information should be read in conjunction with the discussions set forth in Item 7—"Management's Discussion and Analysis of Financial Condition and Results of Operations."
For the Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(In thousands, except per share data and ratios) | ||||||||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
Operating lease income | $ | 191,180 | $ | 211,207 | $ | 229,672 | $ | 221,434 | $ | 204,137 | ||||||||||
Interest income | 129,153 | 134,687 | 122,704 | 108,015 | 133,410 | |||||||||||||||
Other income | 46,514 | 49,924 | 77,583 | 48,208 | 47,838 | |||||||||||||||
Land development revenue | 88,340 | 100,216 | 15,191 | — | — | |||||||||||||||
Total revenue | 455,187 | 496,034 | 445,150 | 377,657 | 385,385 | |||||||||||||||
Interest expense | 221,398 | 224,639 | 224,483 | 266,225 | 355,097 | |||||||||||||||
Real estate expense | 137,522 | 146,509 | 162,829 | 156,574 | 150,608 | |||||||||||||||
Land development cost of sales | 62,007 | 67,382 | 12,840 | — | — | |||||||||||||||
Depreciation and amortization | 51,660 | 62,045 | 70,375 | 68,070 | 65,480 | |||||||||||||||
General and administrative | 84,027 | 81,277 | 88,287 | 92,114 | 80,856 | |||||||||||||||
Provision for (recovery of) loan losses | (12,514 | ) | 36,567 | (1,714 | ) | 5,489 | 81,740 | |||||||||||||
Impairment of assets | 14,484 | 10,524 | 34,634 | 12,589 | 7,628 | |||||||||||||||
Other expense | 5,883 | 6,374 | 6,340 | 8,050 | 17,266 | |||||||||||||||
Total costs and expenses | 564,467 | 635,317 | 598,074 | 609,111 | 758,675 | |||||||||||||||
Income (loss) before earnings from equity method investments and other items | (109,280 | ) | (139,283 | ) | (152,924 | ) | (231,454 | ) | (373,290 | ) | ||||||||||
Loss on early extinguishment of debt, net | (1,619 | ) | (281 | ) | (25,369 | ) | (33,190 | ) | (37,816 | ) | ||||||||||
Earnings from equity method investments | 77,349 | 32,153 | 94,905 | 41,520 | 103,009 | |||||||||||||||
Loss on transfer of interest to unconsolidated subsidiary | — | — | — | (7,373 | ) | — | ||||||||||||||
Income (loss) from continuing operations before income taxes | (33,550 | ) | (107,411 | ) | (83,388 | ) | (230,497 | ) | (308,097 | ) | ||||||||||
Income tax benefit (expense) | 10,166 | (7,639 | ) | (3,912 | ) | 659 | (8,445 | ) | ||||||||||||
Income (loss) from continuing operations | (23,384 | ) | (115,050 | ) | (87,300 | ) | (229,838 | ) | (316,542 | ) | ||||||||||
Income (loss) from discontinued operations | 18,270 | 15,077 | 13,122 | 9,714 | (15,617 | ) | ||||||||||||||
Gain from discontinued operations | — | — | — | 22,233 | 27,257 | |||||||||||||||
Income from sales of real estate | 105,296 | 93,816 | 89,943 | 86,658 | 63,472 | |||||||||||||||
Net income (loss) | 100,182 | (6,157 | ) | 15,765 | (111,233 | ) | (241,430 | ) | ||||||||||||
Net (income) loss attributable to noncontrolling interests | (4,876 | ) | 3,722 | 704 | (718 | ) | 1,500 | |||||||||||||
Net income (loss) attributable to iStar Inc. | 95,306 | (2,435 | ) | 16,469 | (111,951 | ) | (239,930 | ) | ||||||||||||
Preferred dividends | (51,320 | ) | (51,320 | ) | (51,320 | ) | (49,020 | ) | (42,320 | ) | ||||||||||
Net (income) loss allocable to HPU holders and Participating Security holders(1) | (14 | ) | 1,080 | 1,129 | 5,202 | 9,253 | ||||||||||||||
Net income (loss) allocable to common shareholders | $ | 43,972 | $ | (52,675 | ) | $ | (33,722 | ) | $ | (155,769 | ) | $ | (272,997 | ) | ||||||
Per common share data(2): | ||||||||||||||||||||
Income (loss) attributable to iStar Inc. from continuing operations: | ||||||||||||||||||||
Basic | $ | 0.35 | $ | (0.79 | ) | $ | (0.55 | ) | $ | (2.20 | ) | $ | (3.39 | ) | ||||||
Diluted | $ | 0.35 | $ | (0.79 | ) | $ | (0.55 | ) | $ | (2.20 | ) | $ | (3.39 | ) | ||||||
Net income (loss) attributable to iStar Inc.: | ||||||||||||||||||||
Basic | $ | 0.60 | $ | (0.62 | ) | $ | (0.40 | ) | $ | (1.83 | ) | $ | (3.26 | ) | ||||||
Diluted | $ | 0.60 | $ | (0.62 | ) | $ | (0.40 | ) | $ | (1.83 | ) | $ | (3.26 | ) | ||||||
Dividends declared per common share | $ | — | $ | — | $ | — | $ | — | $ | — |
For the Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(In thousands, except per share data and ratios) | ||||||||||||||||||||
SUPPLEMENTAL DATA: | ||||||||||||||||||||
Ratio of earnings to fixed charges(3) | — | — | — | — | — | |||||||||||||||
Ratio of earnings to fixed charges and preferred dividends(3) | — | — | — | — | — | |||||||||||||||
Weighted average common shares outstanding—basic | 73,453 | 84,987 | 85,031 | 84,990 | 83,742 | |||||||||||||||
Weighted average common shares outstanding—diluted | 73,835 | 84,987 | 85,031 | 84,990 | 83,742 | |||||||||||||||
Cash flows (used in) from: | ||||||||||||||||||||
Operating activities | $ | 20,004 | $ | (59,947 | ) | $ | (10,342 | ) | $ | (180,465 | ) | $ | (191,932 | ) | ||||||
Investing activities | 466,543 | 184,028 | 159,793 | 893,447 | 1,267,047 | |||||||||||||||
Financing activities | (868,911 | ) | 114,481 | (190,958 | ) | (455,758 | ) | (1,175,597 | ) |
As of December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
BALANCE SHEET DATA: | ||||||||||||||||||||
Total real estate(4) | $ | 1,624,805 | $ | 1,776,890 | $ | 1,987,843 | $ | 2,227,711 | $ | 2,412,248 | ||||||||||
Land and development, net(4) | 945,565 | 1,001,963 | 978,962 | 932,034 | 965,100 | |||||||||||||||
Loans receivable and other lending investments, net | 1,450,439 | 1,601,985 | 1,377,843 | 1,370,109 | 1,829,985 | |||||||||||||||
Total assets | 4,825,514 | 5,597,792 | 5,426,483 | 5,608,604 | 6,133,687 | |||||||||||||||
Debt obligations, net | 3,389,908 | 4,118,823 | 3,986,034 | 4,124,718 | 4,665,182 | |||||||||||||||
Total equity | 1,059,684 | 1,101,330 | 1,248,348 | 1,301,465 | 1,313,154 |
_______________________________________________________________________________
(1) | All of the Company's outstanding HPUs were repurchased and retired on August 13, 2015 (see Item 8—"Financial Statements and Supplemental Data—Note 13). Participating Security holders are non-employee directors who hold unvested common stock equivalents and restricted stock awards granted under the Company's Long Term Incentive Plans that are eligible to participate in dividends (see Item 8—"Financial Statements and Supplemental Data—Note 14 and 15). |
(2) | See Item 8—"Financial Statements and Supplemental Data—Note 15." |
(3) | This ratio of earnings to fixed charges is calculated in accordance with SEC Regulation S-K Item 503. For the years ended December 31, 2016, 2015, 2014, 2013 and 2012, earnings were not sufficient to cover fixed charges by $67,976, $114,902, $103,070, $249,982 and $307,314, respectively, and earnings were not sufficient to cover fixed charges and preferred dividends by $119,296, $166,222, $154,390, $299,002 and $349,634, respectively. The Company's unsecured debt securities have a fixed charge coverage covenant which is calculated differently in accordance with the terms of the agreements governing such securities. |
(4) | Prior to December 31, 2015, land and development assets were recorded in total real estate. Prior year amounts have been reclassified to conform to the current period presentation. |