April 30, 2009

iStar Financial Inc. (NYSE: SFI), a leading publicly traded finance company focused on the commercial real estate industry, today reported results for the first quarter ended March 31, 2009.iStar reported adjusted earnings (loss) allocable to common shareholders for the first quarter of ($64.0) million or ($0.61) per diluted common share, compared with $116.5 million or $0.86 per diluted common share for the first quarter 2008. Adjusted earnings (loss) represents net income computed in accordance with GAAP, adjusted primarily for preferred dividends, depreciation, depletion, amortization, impairments of goodwill and intangible assets, and gain (loss) from discontinued operations.

Net income (loss) allocable to common shareholders for the first quarter was ($93.9) million, or ($0.89) per diluted common share, compared to $71.6 million or $0.53 per diluted common share for the first quarter 2008. Please see the financial tables that follow the text of this press release for a detailed reconciliation of adjusted earnings to GAAP net income.Revenues for the first quarter 2009 were $258.4 million versus $412.3 million for the first quarter 2008. The year-over-year decrease is primarily due to a reduction of interest income resulting from an increase in non-performing loans (NPLs) and lower interest rates, as well as a reduction in other income.