iStar Financial Inc. (SFI), Friday reported a net loss for the second quarter, compared to a profit last year, primarily reflecting increased loan loss provisions that mirrored the continued deterioration in the overall credit markets. Following the news, the company's shares lost more than 18% in the trading hours.
The company posted a net loss allocable to common shareholders of $284.2 million or $2.85 per share for the second quarter, compared to net income of $18.5 million or $0.14 per share in the prior-year quarter.
Excluding items, adjusted loss allocable to common shareholders widened to $250.1 million or $2.51 per share from $196.2 million or $1.46 per share in the year-ago quarter.
Second quarter revenues declined to $224.6 million from $320.4 million in the second quarter of last year, due to a reduction of interest income resulting from an increase in non-performing loans, lower interest rates and an overall lower asset base.
Net investment income for the quarter increased to $289.0 million from $149.7 million in the previous year quarter, due to gains associated with the bond exchange and early extinguishment of debt, offset by lower interest income resulting from an increase in the company's NPLs.
Provision for loan losses increased to $435.0 million from $276.7 million a year ago.
For the first half of 2009, the company reported a net loss allocable to common shareholders of $388.7 million or $3.68 per share, compared to net income of $93.2 million or $0.67 per share in the previous year period.
Adjusted loss attributable to common shareholders widened to $321.7 million or $3.05 per share from $80.4 million or $0.59 per share in the prior year period.
Total revenues for the year-to-date period declined to $483.0 million from $732.7 million in the year-ago period.
SFI is currently trading at $2.42, down 59 cents or 19.60%.
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