iStar Financial Inc.

Schedule IV—Mortgage Loans on Real Estate

As of December 31, 2012

($ in thousands)



Type of Loan/Borrower	Underlying Property Type	Contractual Interest Accrual Rates	Contractual Interest Payment Rates	Effective Maturity Dates	Periodic Payment Terms	Prior Liens		Face Amount of Mortgages		Carrying Amount of Mortgages(1)(2)
Senior Mortgages:
Borrower A	Mixed Use/Mixed Collateral	LIBOR + 3.3%	LIBOR + 3.3%	October 2013	IO	$	—	$	99,725	$	99,730
Borrower B	Condominium	LIBOR + 3.5%	LIBOR + 3.5%	May 2013	IO	—		96,997		98,055
Borrower C(3)	Entertainment/Leisure	17%	17%	April 2009	IO	—		221,358		74,541
Borrower D(4)	Land	LIBOR + 3.5%	LIBOR + 3.5%	May 2009	IO	—		71,480		62,248
Borrower E(5)	Condominium	LIBOR + 4%	LIBOR + 4%	December 2013	IO	—		59,338		59,474
Borrower F(6)	Land	LIBOR + 3.5%	0%	June 2010	IO	—		137,807		56,087
Borrower G(7)	Hotel	LIBOR + 4.25%	LIBOR + 4.25%	June 2014	P&I	—		55,830		55,816
Borrower H(8)	Industrial/R&D	LIBOR + 1.5%	LIBOR + 1.5%	December 2014	IO	—		54,596		51,705
Borrower I	Land	LIBOR + 7%	LIBOR + 7%	June 2013	IO	—		46,910		47,666
Senior mortgages individually <3%	Condominium, Retail, Land, Industrial/R&D, Mixed Use/Mixed Collateral, Office, Hotel, Entertainment/Leisure, Other	Fixed: 4% to 23% Variable: LIBOR + 1.5% to LIBOR + 8.25%	Fixed: 2.5% to 10% Variable: LIBOR + 0.5% to LIBOR + 8.25%	2013 to 2024				902,836		703,173
								$	1,746,877	$	1,308,495
Subordinate Mortgages:
Subordinate mortgages individually <3%	Retail, Mixed Use/Mixed Collateral, Office, Hotel, Other	Fixed: 5% to 14% Variable: LIBOR + 3.98% to LIBOR + 3.98%	Fixed: 6.5% to 10.5% Variable: LIBOR + 3.98% to LIBOR + 3.98%	2013 to 2018				$	152,011	$	113,159
								$	152,011	$	113,159
Total mortgages								$	1,898,888	$	1,421,654

Explanatory Notes:

_______________________________________________________________________________


(1)	Amounts are presented net of asset-specific reserves of $482.3 million on impaired loans. Impairment is measured using the estimated fair value of collateral, less costs to sell.


(2)	The carrying amount of mortgages approximated the federal income tax basis.


(3)	Loan is in default with $221.4 million of principal that is more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status.


(4)	Loan is in default with $71.5 million of principal that is more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status. As of December 31, 2012, included a LIBOR interest rate floor of 3.5%.


(5)	As of December 31, 2012, included a LIBOR interest rate floor of 4.0%.


(6)	Loan is in default with $137.8 million of principal that is more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status.


(7)	Loan is in default with interest payments that are more than 90 days delinquent. Loan is designated as non-performing and is on non-accrual status.


(8)	As of December 31, 2012, included a LIBOR interest rate floor of 3.88%.

iStar Financial Inc.

Schedule IV—Mortgage Loans on Real Estate (Continued)

As of December 31, 2012

($ in thousands)

Reconciliation of Mortgage Loans on Real Estate:

The following table reconciles Mortgage Loans on Real Estate from January 1, 2010 to December 31, 2012 (1):



	2012			2011			2010
Balance at January 1	$	2,449,554		$	4,012,067		$	6,662,379
Additions:
New mortgage loans	2,205			20,000			—
Additions under existing mortgage loans	29,887			82,598			326,093
Other(2)	33,324			32,922			48,493
Deductions(3):
Collections of principal	(700,943		)	(1,047,943		)	(2,004,129		)
Provision for loan losses	(121,869		)	(93,187		)	(291,905		)
Transfers to real estate and equity investments	(270,359		)	(556,753		)	(728,559		)
Amortization of premium	(145		)	(150		)	(305		)
Balance at December 31	$	1,421,654		$	2,449,554		$	4,012,067

Explanatory Notes:

_______________________________________________________________________________


(1)	Balances represent the carrying value of loans, which are net of asset specific reserves.


(2)	Amount includes amortization of discount, deferred interest capitalized and mark-to-market adjustments resulting from changes in foreign exchange rates.


(3)	Amounts are presented net of charge-offs of $106.9 million, $214.0 million and $804.7 million for the years ended December 31, 2012, 2011 and 2010, respectively.