3Q'16 Investing Activity

$ in millions

Real Estate
Finance

Net
Lease

Operating
Properties

Land &
Dev

Corporate
/ Other

Originated

$83.0

$218.1

—

—

—

$301.1

Invested

$85.4

$36.5

$15.9

$27.5

$0.2

$165.5

Proceeds received

$49.1

$78.8

$85.8

$42.5

$6.0

$262.2

Note: Originated represents total commitments on new investments made during the quarter. Invested represents
fundings on new investments / prior commitments and capital expenditures associated with existing assets during the
quarter.  Net lease originations represent the total property value, gross of joint venture partner participations and
financings.

_______________________

(1) IRRs are based on contractual investment terms such as coupon, rent and term. The Company makes assumptions
as to the pace of fundings, timing of construction and residual value of real estate at the end of the lease term. The
net lease joint venture can elect to take on leverage and the Company makes assumptions as to the amount of debt and
the cost of debt the venture will take on. While the Company believes its assumptions are reasonable, they are
dependent on future real estate market conditions, capital market conditions and interest rates. No assurance can be
made that the Company's assumptions will reflect actual results.

Portfolio Rollforward

$ in millions

Real
Estate
Finance

Net
Lease

Operating
Properties

Land &
Dev

Corporate
/ Other

Net book value (6/30/16)

$

1,568.5

$

1,149.7

$

493.2

$

1,134.9

$

58.9

$

4,405.2

Investments
(Fundings / CapEx)

85.4

36.5

15.9

27.5

0.2

165.5

Asset transfers between
segments

(9.1)

—

36.3

(27.2)

—

—

Principal received / basis
sold

(49.1)

(74.1)

(56.5)

(37.0)

(9.0)

(225.7)

Other

36.5

(6.9)

(1.8)

16.8

3.3

47.9

Net book value (9/30/16)

1,632.2

1,105.2

487.1

1,115.0

53.4

4,392.9

Add: Accumulated
depreciation and general
loan loss reserves

21.2

362.3

42.9

6.9

—

433.3

Gross book value (9/30/16)

$

1,653.4

$

1,467.5

$

530.0

$

1,121.9

$

53.4

$

4,826.2

Note: Gross book value is based on carrying value of the Company's total investment portfolio, gross of accumulated depreciation and
general loan loss reserves and includes the Company's pro rata share of equity method investments.

Real Estate Finance Statistics

$ in millions

iStar 3.0

Legacy

Q3'16

Q2'16

Q3'15

Q3'16

Q2'16

Q3'15

Gross book value

$

1,365.9

$

1,306.2

$

1,141.8

$

287.5

$

299.2

$

476.6

% of total loan portfolio

83%

81%

71%

17%

19%

29%

Performing loans

$

1,365.9

$

1,306.2

$

1,141.8

$

65.0

$

219.7

$

394.0

Non-performing loans

$

—

$

—

$

—

$

222.5

$

79.5

$

82.6

% Performing / Non-performing

100% / 0%

100% / 0%

100% / 0%

23% / 77%

73% / 27%

83% / 17%

First mortgages / senior loans

72%

70%

64%

44%

43%

32%

Mezzanine / subordinated debt

28%

30%

36%

56%

57%

68%

Total

100%

100%

100%

100%

100%

100%

Wtd. avg. LTV

61.5%

61.5%

59.5%

89.9%

90.1%

90.8%

Weighted avg. risk rating

2.61

3.08

2.93

4.30

3.88

3.73

Note: Gross book value represents the carrying value of iStar's loans, gross of general reserves. Risk rating and LTVs based on
performing loans. Risk rating scale based on 1 as lowest risk and 5 as highest risk. See the "Loan Receivable Credit Statistics" table
for additional detail on the Company's NPL and specific reserves.

Net Lease Portfolio Overview

$ in millions

Wholly owned assets

$1,364.1

Joint venture investments ⁽¹⁾

103.4

Total

$1,467.5

(1) Represents iStar's 52% interest within its net lease
joint venture.

Net Lease Statistics

Q3'16

Q2'16

Q3'15

Square feet (000s)

17,022

17,348

18,174

% Leased

99%

98%

96%

Wtd. avg. lease term (yrs)

14.6

14.6

14.8

Yield

8.2%

8.2%

7.8%

Commercial Operating Property Statistics

$ in millions

Stabilized Operating

Transitional Operating

Total

Q3'16

Q2'16

Q3'15

Q3'16

Q2'16

Q3'15

Q3'16

Q2'16

Q3'15

Gross book value

$243.8

$149.3

$111.8

$184.7

$277.8

$461.3

$428.5

$427.1

$573.1

% of total

57%

35%

20%

43%

65%

80%

100%

100%

100%

Occupancy

86%

86%

87%

55%

63%

59%

72%

73%

68%

Yield

8.4%

8.2%

7.8%

2.4%

3.2%

2.7%

5.9%

4.6%

3.7%

Residential Operating Property Statistics
(excluding fractional units)

$ in millions

Q3'16

Q2'16

Q3'15

Condominium units sold

11

55

21

Proceeds

$15.4

$38.7

$24.4

Income

$4.6

$14.3

$6.8

Land & Development Portfolio Overview as of 9/30/16

$ in millions

MPCs

Waterfront

Urban / Infill

Total

# of projects

11

6

14

31

In production

$190.1

$138.9

$55.2

$384.2

In development

252.0

135.4

21.6

409.0

Pre-development

226.4

7.6

94.7

328.7

Gross book value

$668.5

$281.9

$171.5

$1,121.9

Land & Development Activity for 3Q'16

Land development revenue

$10.2

$8.3

$13.1

$31.6

Land development cost of sales

(7.7)

(4.0)

(10.3)

(22.0)

Gross margin

$2.5

$4.3

$2.8

$9.6

Earnings from land development
equity method investments

0.1

6.2

15.5

21.8

Total

$2.6

$10.5

$18.3

$31.4

Capital expenditures / Contributions

$16.2

$5.9

$5.4

$27.5

Leverage at 9/30/16

$ in millions

Book Debt

$3,749.9

Book equity ⁽¹⁾

$1,071.5

Less: Cash and cash equivalents

(547.5)

Add: Accumulated depreciation and
amortization ⁽¹⁾

461.7

Net book debt (A)

$3,202.4

Add: General loan loss reserves

21.2

Sum of book equity, accumulated D&A
and general loan loss reserves (B)

$1,554.4

Leverage (A) / (B)

2.1x

(1) Includes $699.7 million of preferred equity.

(2) Accumulated depreciation and amortization includes iStar's proportionate share of accumulated depreciation and
amortization relating to equity method investments.

Shares Outstanding

in millions

Q3'16

Q2'16

Q3'15

Basic shares outstanding at end of period

71.2

71.9

85.2

3.0% convertible notes / strike of $11.77 (if converted) ⁽¹⁾

17.0

17.0

17.0

1.5% convertible notes / strike of $17.29 (if converted) ⁽¹⁾

10.3

11.6

11.6

4.5% Series J conv. preferred / strike of $12.79 (if converted)

15.6

15.6

15.6

Other securities

0.8

0.8

0.8

Diluted shares outstanding at end of period

114.9

116.9

130.2

(1) Matures November 15, 2016

Liquidity at 9/30/16

$ in millions

Unrestricted cash

$547.5

Revolving credit facility capacity

$250.0

Total liquidity

$797.5

iStar

Consolidated Statements of Operations

(In thousands)

(unaudited)

Three Months
Ended September 30,

Nine Months
Ended September 30,

2016

2015

2016

2015

REVENUES

Operating lease income

$

51,414

$

55,699

$

160,869

$

170,990

Interest income

32,258

33,599

99,877

102,224

Other income

13,442

16,888

35,080

40,214

Land development revenue

31,554

14,301

74,389

29,101

Total revenues

$

128,668

$

120,487

$

370,215

$

342,529

COST AND EXPENSES

Interest expense

$

55,105

$

56,880

$

168,173

$

167,336

Real estate expense

35,335

35,154

105,078

111,143

Land development cost of sales

22,004

10,686

50,842

22,828

Depreciation and amortization

13,002

15,787

42,184

49,804

General and administrative⁽¹⁾

19,666

21,181

62,433

62,520

(Recovery of) provision for loan losses

(14,955)

7,500

(12,749)

30,944

Impairment of assets

8,741

3,916

11,753

5,590

Other expense

819

3,334

4,741

6,345

Total costs and expenses

$

139,717

$

154,438

$

432,455

$

456,510

Income (loss) before other items

$

(11,049)

$

(33,951)

$

(62,240)

$

(113,981)

Income from sales of real estate

34,444

26,511

88,387

66,021

Earnings from equity method investments

26,540

10,572

74,254

25,904

Income tax benefit (expense)

8,256

2,893

9,859

(3,796)

Loss on early extinguishment of debt

(36)

(67)

(1,618)

(279)

Net income (loss)

$

58,155

$

5,958

$

108,642

$

(26,131)

Net (income) loss attributable to noncontrolling
interests

967

706

(6,915)

3,176

Net income (loss) attributable to iStar

$

59,122

$

6,664

$

101,727

$

(22,955)

Preferred dividends

(12,830)

(12,830)

(38,490)

(38,490)

Net (income) loss allocable to HPU holders and
Participating Security holders⁽²⁾

—

94

(27)

1,627

Net income (loss) allocable to common shareholders

$

46,292

$

(6,072)

$

63,210

$

(59,818)

________________________________________________________________

(1) For the three months ended September 30, 2016 and 2015, includes $1,434 and $2,881 of stock-based compensation expense,
respectively.  For the nine months ended September 30, 2016 and 2015, includes $7,644 and $10,066 of stock-based compensation
expense, respectively.

(2) HPU Holders were current and former Company employees who purchased high performance common stock units under the Company's
High Performance Unit Program. On August 13, 2015, the Company repurchased and retired 100% of the outstanding HPU shares through
an exchange offer. Participating Security holders are non-employee directors who hold common stock equivalents and restricted stock
awards granted under the Company's LTIP who are eligible to participate in dividends.

iStar

Earnings Per Share Information

(In thousands, except per share data)

(unaudited)

Three Months
Ended September 30,

Nine Months
Ended September 30,

2016

2015

2016

2015

EPS INFORMATION FOR COMMON SHARES

Income (loss) from continuing operations attributable to iStar⁽¹⁾⁽²⁾

  Basic

$

0.65

$

(0.07)

$

0.85

$

(0.70)

  Diluted

$

0.44

$

(0.07)

$

0.66

$

(0.70)

Net income (loss)

  Basic

$

0.65

$

(0.07)

$

0.85

$

(0.70)

  Diluted

$

0.44

$

(0.07)

$

0.66

$

(0.70)

Adjusted income

  Basic

$

0.69

$

0.32

$

1.48

$

0.49

  Diluted

$

0.47

$

0.25

$

1.06

$

0.44

Weighted average shares outstanding

  Basic

71,210

85,766

74,074

85,602

  Diluted (for net income per share)

115,666

85,766

118,590

85,602

  Diluted (for adjusted income per share)

115,666

130,368

118,590

130,200

Common shares outstanding at end of period

71,176

85,179

71,176

85,179

_____________________________________________

(1) Including preferred dividends, net (income) loss attributable to noncontrolling interests and income from sales of
real estate.

(2) On August 13, 2015, the Company repurchased and retired 100% of the outstanding high performance unit (HPU)
shares through an exchange offer.

iStar

Consolidated Balance Sheets

(In thousands)

(unaudited)

As of

As of

September 30, 2016

December 31, 2015

ASSETS

Real estate

Real estate, at cost

$

1,779,819

$

2,050,541

Less: accumulated depreciation

(405,209)

(456,558)

Real estate, net

$

1,374,610

$

1,593,983

Real estate available and held for sale

101,488

137,274

$

1,476,098

$

1,731,257

Land and development, net

1,022,106

1,001,963

Loans receivable and other lending investments, net

1,632,186

1,601,985

Other investments

262,496

254,172

Cash and cash equivalents

547,510

711,101

Accrued interest and operating lease income receivable,
net

12,720

18,436

Deferred operating lease income receivable

94,405

97,421

Deferred expenses and other assets, net

190,493

181,457

Total assets

$

5,238,014

$

5,597,792

LIABILITIES AND EQUITY

Accounts payable, accrued expenses and other liabilities

$

204,272

$

214,835

Loan participations payable, net

205,781

152,086

Debt obligations, net

3,749,873

4,118,823

Total liabilities

$

4,159,926

$

4,485,744

Redeemable noncontrolling interests

$

6,601

$

10,718

Total iStar shareholders' equity

$

1,025,140

$

1,059,112

Noncontrolling interests

46,347

42,218

Total equity

$

1,071,487

$

1,101,330

Total liabilities and equity

$

5,238,014

$

5,597,792

iStar

Segment Analysis

(In thousands)

(unaudited)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016

Real
Estate
Finance

Net
Lease

Operating
Properties

Land &
Dev

Corporate
/ Other

Operating lease income

$

—

$

36,901

$

14,407

$

106

$

—

$

51,414

Interest income

32,258

—

—

—

—

32,258

Other income

1,052

412

10,793

658

527

13,442

Land development revenue

—

—

—

31,554

—

31,554

Earnings from equity method
investments

—

723

630

21,841

3,346

26,540

Income from sales of real
estate

—

6,629

27,815

—

—

34,444

Total revenue and other
earnings

$

33,310

$

44,665

$

53,645

$

54,159

$

3,873

$

189,652

Real estate expense

—

(4,799)

(21,129)

(9,407)

—

(35,335)

Land development cost of
sales

—

—

—

(22,004)

—

(22,004)

Other expense

(794)

—

—

—

(25)

(819)

Allocated interest expense

(14,544)

(16,330)

(5,110)

(9,013)

(10,108)

(55,105)

Allocated general and
administrative⁽¹⁾

(3,995)

(4,526)

(1,502)

(3,495)

(4,714)

(18,232)

Segment profit (loss)

$

13,977

$

19,010

$

25,904

$

10,240

$

(10,974)

$

58,157

____________________________________________________________

(1) Excludes $1,434 of stock-based compensation expense.

AS OF SEPTEMBER 30, 2016

Real
Estate
Finance

Net
Lease

Operating
Properties

Land &
Dev

Corporate
/ Other

Real estate

Real estate, at cost

$

—

$

1,364,069

$

415,750

$

—

$

—

$

1,779,819

Less: accumulated
depreciation

—

(362,293)

(42,916)

—

—

(405,209)

Real estate, net

$

—

$

1,001,776

$

372,834

$

—

$

—

$

1,374,610

Real estate available
and held for sale

—

—

101,488

—

—

101,488

Total real estate

$

—

$

1,001,776

$

474,322

$

—

$

—

$

1,476,098

Land and development,
net

—

—

—

1,022,106

—

1,022,106

Loans receivable and other
lending investments, net

1,632,186

—

—

—

—

1,632,186

Other investments

—

103,468

12,747

92,885

53,396

262,496

Total portfolio assets

$

1,632,186

$

1,105,244

$

487,069

$

1,114,991

$

53,396

$

4,392,886

Cash and other assets

845,128

Total assets

$

5,238,014

iStar

Supplemental Information

(In thousands)

(unaudited)

Three Months
Ended September 30,

Nine Months
Ended September 30,

2016

2015

2016

2015

ADJUSTED INCOME ⁽¹⁾

Reconciliation of Net Income to Adjusted Income

Net income (loss) allocable to common shareholders

$

46,292

$

(6,072)

$

63,210

$

(59,818)

Add: Depreciation and amortization

15,598

17,560

50,107

54,925

Add: (Recovery of) provision for loan losses

(14,955)

7,500

(12,749)

30,944

Add: Impairment of assets

8,741

6,398

12,668

12,409

Add: Stock-based compensation expense

1,434

2,881

7,644

10,066

Add: Loss on early extinguishment of debt

36

67

1,618

279

Less: Losses on charge-offs and dispositions

(8,039)

(517)

(12,602)

(3,713)

Less: HPU/Participating Security allocation

—

(516)

(21)

(2,778)

Adjusted income allocable to common shareholders

$

49,107

$

27,301

$

109,875

$

42,314

_________________________________________________________

(1) Adjusted Income allocable to common shareholders should be examined in conjunction with net income (loss) as shown in
the Consolidated Statements of Operations. This non-GAAP financial measure should not be considered as an alternative to
net income (determined in accordance with GAAP)or to cash flows from operating activities (determined in accordance with
GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available to fund the Company's cash needs or
available for distribution to shareholders. It should be noted that the Company's manner of calculating this non-GAAP financial
measure may differ from the calculations of similarly-titled measures by other companies. Management considers this
non-GAAP financial measure as supplemental information to net income in analyzing the performance of our underlying business.
Depreciation and amortization includes our proportionate share of depreciation and amortization expense relating to equity
method investments and excludes the portion of depreciation and amortization expense allocable to non-controlling interests.
Impairment of assets includes impairments on cost and equity method investments recorded in other income and earnings from
equity method investments, respectively. Effective in the second quarter 2016, we modified our presentation of Adjusted
Income to include losses on charge-offs and dispositions of previously impaired or reserved assets to provide a more
informative metric for investors to help evaluate our operating performance. Losses on charge-offs and dispositions
represents the impact of charge-offs and dispositions realized during the period. These charge-offs and dispositions were
taken on assets that were initially acquired prior to 2008 that were previously impaired for GAAP and reflected in net income
but not Adjusted Income.

iStar

Supplemental Information

(In thousands)

(unaudited)

Twelve Months Ended
September 30, 2016

OPERATING STATISTICS

Expense Ratio

General and administrative expenses - trailing twelve months (A)

$

81,190

Average total assets (B)

$

5,436,035

Expense Ratio (A) / (B)

1.5%

As of

September 30, 2016

UNENCUMBERED ASSETS / UNSECURED DEBT

Unencumbered assets (C)⁽¹⁾

$

4,133,574

Unsecured debt (D)

$

3,047,972

Unencumbered Assets / Unsecured Debt (C) / (D)

1.4x

UNFUNDED COMMITMENTS

Performance-based commitments⁽²⁾

$

495,042

Strategic investments

45,823

Discretionary fundings

—

Total Unfunded Commitments

$

540,865

LOAN RECEIVABLE CREDIT STATISTICS

As of

September 30, 2016

Carrying value of NPLs /

As a percentage of total carrying value of loans

$

222,484

14.2%

$

60,327

3.9%

Total reserve for loan losses /

As a percentage of total gross carrying value of loans⁽³⁾

$

95,416

5.7%

$

108,165

6.6%

___________________________________________

(1) Unencumbered assets are calculated in accordance with the indentures governing the Company's unsecured
debt securities.

(2) Excludes $212.1 million of commitments on loan participations sold that are not the obligation of the Company
but are consolidated on the Company's balance sheet.

(3) Gross carrying value represents iStar's carrying value of loans, gross of loan loss reserves.

iStar

Supplemental Information

(In millions)

(unaudited)

PORTFOLIO STATISTICS AS OF SEPTEMBER 30, 2016⁽¹⁾

Property Type

Real
Estate
Finance

Net
Lease

Operating
Properties

Land &
Dev

Total

% of
Total

Land & Development

$

48

$

—

$

—

$

1,122

$

1,170

24%

Office / Industrial

164

767

25

—

956

20%

Mixed Use / Collateral

503

—

176

—

679

14%

Hotel

343

136

104

—

583

12%

Entertainment / Leisure

—

494

—

—

494

10%

Condominium

326

—

101

—

427

9%

Retail

64

57

124

—

245

5%

Other Property Types

205

14

—

—

219

5%

Strategic Investments

—

—

—

—

53

1%

Total

$

1,653

$

1,468

$

530

$

1,122

$

4,826

Geography

Real
Estate
Finance

Net
Lease

Operating
Properties

Land &
Dev

Total

% of
Total

Northeast

$

970

$

382

$

45

$

233

$

1,630

34%

West

103

317

39

367

826

17%

Southeast