Jones Lang LaSalle


iStar Financial profit falls short of forecasts

by Mary Sisson February 28, 2006
The Manhattan-based commercial real-estate finance firm's earnings were driven lower by higher costs and expenses.

Shares of iStar Financial Inc. slumped in morning trading Tuesday after the Manhattan-based commercial real-estate finance firm announced lower-than-expected quarterly earnings. iStar shares declined as much as 0.9%, to $37.90, in morning trading on the New York Stock Exchange. For the quarter ended Dec. 31, 2005, iStar earned $70 million, or 60 cents a share, compared with $117 million, or $1.02 a share, in the year-earleir period. iStar’s adjusted earnings for the quarter were 81 cents per share, below the 82 cents to 89 cents per share forecast by analysts.

Higher interest expense and general and administrative costs contributed to the lower-than-expected quarterly results. iStar also missed its own forecast for the full year. The company earned $246 million, or $2.11 per share, in 2005, down from its projection for a profit of between $2.25 and $2.60 per share. It's adjusted earnings of $3.36 a share were in line with Wall Street estimates. Looking ahead, the company increased its quarterly dividend by 5% to 77 cents a share and reiterated its earnings outlook of between $2.35 and $2.50 per share in 2006.