Market Cap
US$856.4m
Last Updated
2020/07/09 23:55 UTC
Data Sources
Company Financials +
Executive Summary
iStar Inc. (NYSE: STAR) is focused on reinventing the ground lease sector, unlocking value for real estate owners throughout the country by providing modern, more efficient ground leases on all types of properties.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -62.4% per year for the next 3 years
+ 2 more risks
Snowflake Analysis
Fair value with questionable track record.
Similar Companies
Share Price & News
How has iStar's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STAR's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-6.0%
STAR
-2.9%
US REITs
1.3%
US Market
1 Year Return
-10.8%
STAR
-12.4%
US REITs
6.1%
US Market
Return vs Industry: STAR exceeded the US REITs industry which returned -12.9% over the past year.
Return vs Market: STAR underperformed the US Market which returned 6.7% over the past year.
Shareholder returns
| STAR | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.0% | -2.9% | 1.3% |
| 30 Day | -16.7% | -8.1% | -0.3% |
| 90 Day | 15.9% | -1.6% | 16.6% |
| 1 Year | -7.9%-10.8% | -8.8%-12.4% | 8.4%6.1% |
| 3 Year | 0.2%-6.7% | 12.3%-1.5% | 35.8%26.9% |
| 5 Year | -10.4%-16.6% | 37.6%9.4% | 62.7%44.7% |
Price Volatility Vs. Market
How volatile is iStar's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Introducing iStar (NYSE:STAR), The Stock That Dropped 26% In The Last Five Years2 months ago | Simply Wall St
One iStar Inc. (NYSE:STAR) Analyst Just Cut Their EPS Forecasts3 months ago | Simply Wall St
Does iStar Inc.'s (NYSE:STAR) CEO Pay Matter?Valuation
Is iStar undervalued compared to its fair value and its price relative to the market?
2.63x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: STAR ($11.29) is trading above our estimate of fair value ($8.74)
Significantly Below Fair Value: STAR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: STAR is good value based on its PE Ratio (2.6x) compared to the REITs industry average (26.9x).
PE vs Market: STAR is good value based on its PE Ratio (2.6x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: STAR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: STAR is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (1.3x).
Next Steps
Future Growth
How is iStar forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-62.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STAR's earnings are forecast to decline over the next 3 years (-62.4% per year).
Earnings vs Market: STAR's earnings are forecast to decline over the next 3 years (-62.4% per year).
High Growth Earnings: STAR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: STAR's revenue is expected to decline over the next 3 years (-11.1% per year).
High Growth Revenue: STAR's revenue is forecast to decline over the next 3 years (-11.1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if STAR's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has iStar performed over the past 5 years?
59.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STAR has a large one-off gain of $208.3M impacting its March 31 2020 financial results.
Growing Profit Margin: STAR became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: STAR has become profitable over the past 5 years, growing earnings by 59.8% per year.
Accelerating Growth: STAR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: STAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (5.3%).
Return on Equity
High ROE: Whilst STAR's Return on Equity (28.31%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is iStar's financial position?
Financial Position Analysis
Short Term Liabilities: STAR's short term assets ($940.0M) exceed its short term liabilities ($208.2M).
Long Term Liabilities: STAR's short term assets ($940.0M) do not cover its long term liabilities ($3.9B).
Debt to Equity History and Analysis
Debt Level: STAR's debt to equity ratio (312.1%) is considered high.
Reducing Debt: STAR's debt to equity ratio has reduced from 346.6% to 312.1% over the past 5 years.
Debt Coverage: STAR's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: STAR's interest payments on its debt are not well covered by EBIT (0.7x coverage).
Balance Sheet
Next Steps
Dividend
What is iStar current dividend yield, its reliability and sustainability?
3.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STAR's dividend (3.9%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: STAR's dividend (3.9%) is low compared to the top 25% of dividend payers in the US market (4.58%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, STAR has been paying a dividend for less than 10 years.
Growing Dividend: STAR's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: STAR is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Jay Sugarman (57yo)
23.5yrs
Tenure
US$4,367,387
Compensation
Mr. Jay S. Sugarman has been the Executive Chairman of the Board and Chief Executive Officer of iStar Inc. since founded in 1997. Mr. Sugarman serves as Chief Executive Officer of iStar Marlin LLC. He has ...
CEO Compensation Analysis
Compensation vs Market: Jay's total compensation ($USD4.37M) is above average for companies of similar size in the US market ($USD3.15M).
Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 23.5yrs | US$4.37m | 3.41% $29.2m | |
| President & Chief Investment Officer | 2yrs | US$4.90m | 0.050% $427.6k | |
| Chief Financial Officer | 0.33yr | no data | no data | |
| Chief Accounting Officer | no data | no data | no data | |
| Senior Vice President of Investor Relations & Marketing | no data | no data | no data | |
| Senior VP | no data | no data | no data | |
| Chief Legal Officer | 1.33yrs | no data | no data | |
| Senior Vice President of Marketing | 2.75yrs | no data | no data | |
| Executive Vice President of Net Lease Investments | 20.33yrs | US$1.24m | no data | |
| Executive VP & Co-Head of Investments | 3.25yrs | no data | no data |
2.8yrs
Average Tenure
48yo
Average Age
Experienced Management: STAR's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 23.5yrs | US$4.37m | 3.41% $29.2m | |
| Independent Director | 5yrs | US$274.03k | 0.075% $643.6k | |
| Independent Director | 8.92yrs | US$277.78k | 0.13% $1.1m | |
| Lead Independent Director | 13.17yrs | US$345.82k | 0.23% $1.9m | |
| Independent Director | 1.17yrs | US$207.15k | 0.037% $314.5k | |
| Independent Director | 0.42yr | no data | 0.022% $190.9k |
7.0yrs
Average Tenure
59yo
Average Age
Experienced Board: STAR's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.2%.
Top Shareholders
Company Information
iStar Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: iStar Inc.
- Ticker: STAR
- Exchange: NYSE
- Founded: 1993
- Industry: Diversified REITs
- Sector: Real Estate
- Market Cap: US$856.374m
- Shares outstanding: 75.85m
- Website: https://www.istar.com
Number of Employees
Location
- iStar Inc.
- 1114 Avenue of the Americas
- 39th Floor
- New York
- New York
- 10036
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STAR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 1989 |
| OLZ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 1989 |
| STAR.PRD | NYSE (New York Stock Exchange) | PFD SER D | US | USD | Oct 1997 | |
| STAR.PRG | NYSE (New York Stock Exchange) | PFD G 7.65% | US | USD | Dec 2003 | |
| STAR.PRI | NYSE (New York Stock Exchange) | PFD SER I | US | USD | Feb 2004 |
Biography
iStar Inc. (NYSE: STAR) is focused on reinventing the ground lease sector, unlocking value for real estate owners throughout the country by providing modern, more efficient ground leases on all types of properties. As the founder, investment manager and largest shareholder of Safehold Inc. (NYSE: SAFE), the first publicly traded company to focus on modern ground leases, iStar is helping create a logical new approach to the way real estate is owned, and continues to use its historic strengths in finance and net lease to expand this unique platform. Recognized as a consistent innovator in the real estate markets, iStar specializes in identifying and scaling newly discovered opportunities and has completed more than $40 billion of transactions over the past two decades.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/09 23:55 |
| End of Day Share Price | 2020/07/09 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.