Seeking Alpha: iStar A Complicated REIT For Complicated Times

The market often punishes complex stories, and iStar Financial (NYSE:STAR) is no exception. While the company is organized as a REIT, it doesn't currently pay a dividend and management doesn't seem to be chomping at the bit to resume them. It's not really a mortgage REIT, but originating loans for real estate projects is a big part of the business. Likewise, it would be a mistake to pigeonhole it as an equity REIT, a net leasing REIT, or a land developer/homebuilder, but those are all critical components of the business.

What iStar is, at least in my opinion, is an opportunistic supplier and manager of capital within the real estate sector - if the opportunities are good enough, management will figure out how they can play a role. It is also a tricky business to value, as GAAP earnings don't really reflect the economic value of the company's activity. I believe these shares are worth at least $15/share without any meaningful improvement in underperforming assets, and I believe execution of management's plan to improve noncontributing assets and reinvest/recycle portfolio capital can support a value in the $17 to $18.50 range.

Continue here:
iStar A Complicated REIT For Complicated Times