Other Investments

The Company's other investments and its proportionate share of results from equity method investments were as follows ($ in thousands):



	Carrying Value as of				Equity in earnings for the Three Months Ended March 31,
	March 31, 2013		December 31, 2012		2013		2012
LNR	$	221,912	$	205,773	$	14,746	$	12,137
Madison Funds	56,245		56,547		2,259		9,498
Oak Hill Funds	26,794		29,840		1,157		3,374
Real estate equity investments	40,560		47,619		1,763		6,771
Other equity method investments	48,489		47,939		1,753		3,006
Total equity method investments	$	394,000	$	387,718	$	21,678	$	34,786
Other	9,759		11,125
Total other investments	$	403,759	$	398,843

Equity Method Investments

LNR—On July 29, 2010, the Company acquired an ownership interest of approximately 24% in LNR Property Corporation ("LNR"). LNR is a servicer and special servicer of commercial mortgage loans and CMBS and a diversified real estate investment, finance and management company. In the transaction, the Company and a group of investors, including other creditors of LNR, acquired 100% of the common stock of LNR in exchange for cash and the extinguishment of existing senior notes of LNR's parent holding company (the "Holdco Notes"). The Company contributed $100.0 million aggregate principal amount of Holdco Notes and $100.0 million in cash in exchange for an equity interest of $120.0 million.

Subsequent to quarter end, the Company completed the sale of its 24% equity interest in LNR and received $220.3 million in net proceeds (see Note 16—Subsequent Events), which approximated the carrying value at March 31, 2013.

The following table represents the latest available investee level summarized financial information for LNR ($ in thousands)(1):



	For the Three Months Ended December 31,
	2012			2011
Income Statements
Total revenue(2)	$	77,780		$	77,360
Other Income	$	164,582		$	20,936
Income tax expense	$	279		$	1,837
Net income attributable to LNR	$	189,249		$	50,621
iStar's ownership percentage	24		%	24		%
Subtotal	$	45,420		$	12,137
Basis difference(3)	$	(30,674	)	$	—
iStar's equity in earnings from LNR	$	14,746		$	12,137



	As of December 31,			As of September 30,
	2012			2012
Balance Sheets
Total assets(2)	$	1,610,143		$	1,384,337
Total debt(2)	$	468,355		$	398,912
Total liabilities(2)	$	553,150		$	517,088
Noncontrolling interests	$	1,588		$	1,560
LNR Property LLC equity	$	1,055,405		$	865,689
iStar's ownership percentage	24		%	24		%
iStar's equity in LNR	$	221,912		$	205,773

Explanatory Notes:

_______________________________________________________________________________


(1)	The Company records its investment in LNR on a one quarter lag, therefore, amounts in the Company's financial statements for the three months ended March 31, 2013 and 2012 are based on balances and results from LNR for the three months ended December 31, 2012 and 2011.

(2)

LNR consolidates certain commercial mortgage-backed securities and collateralized debt obligation trusts that are considered VIEs (and for which it is the primary beneficiary), that have been excluded from the amounts presented above. As of December 31, 2012 and September 30, 2012, the assets of these trusts, which aggregated approximately $91.06 billion and $97.52 billion, respectively, were the sole source of repayment of the related liabilities, which aggregated approximately $90.74 billion and $97.21 billion, respectively, and are non-recourse to LNR and its equity holders, including the Company. In addition, total revenue presented above includes $29.3 million and $28.7 million for the three months ended December 31, 2012, and 2011, respectively, of servicing fee revenue that is eliminated upon consolidation of the VIE's at the LNR level. This income is then added back through consolidation at the LNR level as an adjustment to income allocable to noncontrolling entities and has no net impact on net income attributable to LNR.


(3)	The Company has limited its recognition of its proportionate share of earnings in LNR for the three months ended March 31, 2013 to the amounts of proceeds it anticipates receiving from the sale.

Madison Funds—As of March 31, 2013, the Company owned a 29.52% interest in Madison International Real Estate Fund II, LP, a 32.92% interest in Madison International Real Estate Fund III, LP and a 29.52% interest in Madison GP1 Investors, LP (collectively, the "Madison Funds"). The Madison Funds invest in ownership positions of entities that own real estate assets. The Company determined that all of these entities are variable interest entities and that the Company is not the primary beneficiary.

Oak Hill Funds—As of March 31, 2013, the Company owned a 5.92% interest in OHA Strategic Credit Master Fund, L.P. ("OHASCF"). OHASCF was formed to acquire and manage a diverse portfolio of assets, investing in distressed, stressed and undervalued loans, bonds, equities and other investments. The Company determined that this entity is a variable interest entity and that the Company is not the primary beneficiary.

Real estate equity investments—As of March 31, 2013, the Company's real estate equity investments included equity interests in real estate ventures ranging from 31% to 70%, comprised of investments of $16.4 million in net lease assets, $20.3 million in operating properties and $3.9 million in land assets. As of December 31, 2012, the Company's real estate equity investments included $16.4 million in net lease assets, $25.7 million in operating properties and $5.5 million in land assets. One of the Company's equity investments in operating properties represents a 33% interest in residential property units. During the three months ended March 31, 2013 and 2012, the Company's earnings from its interest in this property includes income from sales of residential units of $2.5 million and $8.0 million, respectively.

Other Equity Method Investments—The Company also had smaller investments in several other entities that were accounted for under the equity method. Several of these investments are in real estate related funds or other strategic investment opportunities within niche markets.