NYSE:STAR

Stock Analysis Report

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.


Snowflake Analysis

Proven track record and fair value.


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

2.6%

STAR

-0.07%

US REITs

-1.1%

US Market


1 Year Return

63.4%

STAR

16.0%

US REITs

17.9%

US Market

Return vs Industry: STAR exceeded the US REITs industry which returned 16% over the past year.

Return vs Market: STAR exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

STARIndustryMarket
7 Day2.6%-0.07%-1.1%
30 Day12.1%3.6%1.4%
90 Day30.2%7.8%6.9%
1 Year69.6%63.4%20.7%16.0%20.3%17.9%
3 Year47.0%39.2%37.9%20.6%47.8%38.3%
5 Year30.9%23.9%60.3%27.3%71.9%53.0%

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

Valuation

Is iStar undervalued compared to its fair value and its price relative to the market?

4.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STAR ($16.42) is trading above our estimate of fair value ($11.49)

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 (4.8x) compared to the REITs industry average (37.2x).

PE vs Market: STAR is good value based on its PE Ratio (4.8x) compared to the US market (18.2x).


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 (2.1x).


Next Steps

Future Growth

How is iStar forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-89.0%

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 (-89% per year).

Earnings vs Market: STAR's earnings are forecast to decline over the next 3 years (-89% 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 (-2.6% per year).

High Growth Revenue: STAR's revenue is forecast to decline over the next 3 years (-2.6% 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?

47.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STAR has a large one-off gain of $150.0M impacting its September 30 2019 financial results.

Growing Profit Margin: STAR's current net profit margins (45.5%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: STAR has become profitable over the past 5 years, growing earnings by 47.7% per year.

Accelerating Growth: STAR's earnings growth over the past year (439.1%) exceeds its 5-year average (47.7% per year).

Earnings vs Industry: STAR earnings growth over the past year (439.1%) exceeded the REITs industry 7.6%.


Return on Equity

High ROE: Whilst STAR's Return on Equity (20.4%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is iStar's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: STAR has a high level of physical assets or inventory.

Debt Coverage by Assets: STAR's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: STAR is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: STAR is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: STAR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if STAR has a sufficient allowance for bad loans.

Low Risk Liabilities: STAR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if STAR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: STAR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if STAR has an appropriate level of bad loans.


Next Steps

Dividend

What is iStar's current dividend yield, its reliability and sustainability?

2.44%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: STAR's dividend (2.44%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: STAR's dividend (2.44%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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?

2.6yrs

Average management tenure


CEO

Jay Sugarman (56yo)

23.1yrs

Tenure

US$6,011,793

Compensation

Mr. Jay S. Sugarman has been the 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 been Chair ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD6.01M) is above average for companies of similar size in the US market ($USD2.51M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Sugarman
Chairman & CEO23.1yrsUS$6.01m4.16% $42.4m
Marcos Alvarado
President & Chief Investment Officer1.6yrsUS$5.54m0.024% $241.7k
Geoffrey Jervis
1.9yrsUS$1.33mno data
Jason Fooks
Senior Vice President of Investor Relations & Marketing0yrsno datano data
Geoffrey Dugan
Senior VP0yrsno datano data
Douglas Heitner
Chief Legal Officer0.9yrsno datano data
Kate Doerge
Senior Vice President of Marketing2.3yrsno datano data
Barclay Jones
Executive Vice President of Net Lease Investments19.9yrsUS$1.24mno data
Chase Curtis
Executive Vice President of Credit15.1yrsno datano data
Elisha Blechner
Executive VP & Co-Head of Investments2.8yrsno datano data

2.6yrs

Average Tenure

51.5yo

Average Age

Experienced Management: STAR's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Sugarman
Chairman & CEO23.1yrsUS$6.01m4.16% $42.4m
Clifford De Souza
Independent Director4.6yrsUS$253.62k0.069% $700.7k
Barry Ridings
Independent Director8.5yrsUS$258.62k0.14% $1.4m
Robin Josephs
Lead Independent Director12.8yrsUS$341.79k0.21% $2.1m
Richard Lieb
Director0.8yrsno data0.023% $235.4k

8.5yrs

Average Tenure

59yo

Average Age

Experienced Board: STAR's board of directors are considered experienced (8.5 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 not been meaningfully diluted in the past year.


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$1.021b
  • Shares outstanding: 62.17m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STARNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1989
OLZDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1989
STAR.PRDNYSE (New York Stock Exchange)PFD SER DUSUSDOct 1997
STAR.PRGNYSE (New York Stock Exchange)PFD G 7.65%USUSDDec 2003
STAR.PRINYSE (New York Stock Exchange)PFD SER IUSUSDFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:29
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.