iStar Financial, Inc. (NYSE:SFI)

NetscribeREIT (42.46) Submitted: 2/7/2007 1:42:02 AM : Start Price: $42.34 SFI Score: -83.16

iSar Financial (SFI) is a commercial mortgage REIT (real estate investment trust), which specializes in offering custom-tailored financing to its high-end private and corporate owners of real estate. The company’s investment portfolio is concentrated in lower-risk assets i.e. 42% in first mortgages and 41% in corporate tenant leases (CTL). iStar targets areas in the commercial real estate market by customizing its offerings to meet the unique needs of every customer and is able to charge a premium for its services. This success of the company's offerings is evident in the significant business it receives from repeat customers.

The United States commercial real estate industry has seen increasing property-level returns, which attracted a huge amount of investment capital combined with relatively low interest rates and decline in default rates on commercial mortgages nationally. As a result, commercial real estate loans increased by 9.5% in 2005, continuing the trends of the past several years' growth rates of 10.3% in 2004 and 8.7% in 2003. With improving occupancy levels, rising rental rates in commercial real estate combined with Federal Reserve’s decision to leave the interest rates unchanged at 5.25% will have a positive impact on mortgage REITs earnings in 2007.

SFI offers niche customized financing through rigorous credit underwriting, which is supported by a risk management team that has driven one of the lowest loss ratios in the finance industry; net charge-offs as a percentage of average loans totaled 0.10% and non-performing loans represented only 0.18% of total assets as of 30th September ‘06. SFI also minimizes one of the major risks facing mortgage REITs - interest rate risk - through its match funding strategy, whereby it attempts to match variable-rate assets to variable-rate liabilities and fixed-rate assets to fixed-rate liabilities.

SFIs asset growth is accelerating after its recent foray into European market through iStar Europe Ltd. and domestic timberland leasing business through TimberStar subsidiary. In addition, iStar core loan and CTL offering to auto dealership industry via AutoStar subsidiary has grown rapidly and achieved its initial three-year goal of $1.0 billion in just over two years. With healthy growth in commercial REIT industry, lower interest rates, lowest non-performing assets and diversified business strategy, SFI is all set to register strong growth.

AcornIdeas (47.42) Submitted: 2/2/2007 2:15:10 PM : Start Price: $41.21 SFI Score: -83.02

REIT focusing on commercial mortgages. High dividends, high growth, will beat S

mfcfin (< 20) Submitted: 1/2/2007 11:16:45 PM : Start Price: $38.79 SFI Score: -83.87

Good growth and great yield that increases with each dividend increase. Have bought and held for 5 years.

jasonhc73 (< 20) Submitted: 12/23/2006 9:50:15 PM : Start Price: $38.67 SFI Score: -84.83

Buy it direct and pay no fees. DRIP it.

stoiber (42.09) Submitted: 12/18/2006 5:29:24 PM : Start Price: $38.66 SFI Score: -84.40

Creative and unique commercial RE financing. Solid dividend.

EXOTHERMIC (84.99) Submitted: 12/14/2006 9:16:58 AM : Start Price: $38.76 SFI Score: -84.13

iStar is a client of mine, they are expanding their headquarter to accomodate more people. Their earinings aren't too shabby either