Ladies and gentlemen, thank you for standing by. And welcome to iStar Financial’s Fourth Quarter in Fiscal Year 2013 Earnings Conference Call. (Operator Instructions). As a reminder, today’s conference is being recorded. At this time for opening remarks and introductions, I’d like to turn the conference over to Mr. Jason Fooks, Vice President of Investor Relations and Marketing. Please go ahead.

Thank you, John, and good morning, everyone. Thank you for joining us today to review iStar Financial’s fourth quarter and fiscal year 2013 earnings report. With me today are Jay Sugarman, Chairman and Chief Executive Officer; and David DiStaso, our Chief Financial Officer. This morning’s call is being webcast on our website at istarfinancial.com in the Investor Relations section. There will be a replay of the call beginning at 12:30 p.m. Eastern Time today. The dial-in for the replay is 1800-475-6701 with a confirmation code of 319108. Before I turn the call over to Jay, I’d like to remind everyone that statements in this earnings call which are not historical facts will be forward-looking. iStar Financial’s actual results may differ materially from these forward-looking statements and the risk factors that could cause these differences are detailed in our SEC reports. In addition, as stated more fully in our SEC reports, iStar disclaims any intent or obligation to update these forward-looking statements except as expressly required by law. Now, I’d like to turn the call over to iStar’s Chairman and CEO, Jay Sugarman. Jay?

Thanks, Jason. And thanks to those of you joining us this morning. Our fourth quarter saw a continued signs of steady progress we’ve been making on many front. Our investment activity was solid with over $200 million in fundings in the quarter and another approximately $200 million in early January. Our capital strength continued to grow with lower cost refinancing and ongoing deleveraging enabling us to sit at the low end of our leveraged target with overall debt cost well below prior quarters. We reenergized our net lease business by partnering with a sovereign wealth fund giving us more clout on larger transactions and the ability to maintain diversity in our portfolio. And while we’re still working hard to get overall earnings back to full profitability, we are pleased with the finance, net lease and operating property segments all showed profitable metrics for the quarter and for the year. With several land developments expected to come on line in 2014, we should be able to reduce the historical losses in that segment and start seeing some level of return on the capital we’ve invested there over the past several years. Let me do a brief overview of our various business lines. In real estate finance, increased investment activity helped put some of our large cash balances to work. Where transactions in Chicago and New York City accounting for the bulk of the activity, and the January closing the large development loan in Times Square giving us further momentum. Segment profit increased to $10.8 million from $5.9 million last quarter, and to $23.5 million for the year versus $11.1 million last year. In net lease, the big news is obviously the closing of our $500 million joint venture with a sovereign wealth fund. Combining our long standing track record as the…

Thanks, Jay, and good morning, everyone. Let me begin by discussing our financial results for the fourth quarter, and full year 2013 as well as capital markets activities, before moving on to discuss investments and the performance of our business segments. For the quarter, our adjusted income was a loss of $19 million, or $0.23 per common share, compared to a loss of $23 million or $0.28 per common share for the same quarter last year. One of the main drivers in improvement in adjusted loss, was a $22 million decrease in interest expense resulting from lower debt levels, combined with our ability to refinance outstanding debt at lower rates dropping period. Also, the fourth quarter of 2012 included $23 million of cash underwriting and prepayment fees associated with our bank facility refinancing and note issuances. These items were partially offset by lower earnings from equity method investments. As our prior year period included $24 million associated with LNR which was sold earlier this year. In addition, our strong pace of condominium sales and certain luxury projects have approached sellout, reducing our overall inventory and resulting in $13 million less income from sales of residential properties compared to the prior year. Our net loss allocable to common shareholders for the quarter, was $58 million, or $0.68 per diluted common share compared to a loss of $87 million or $1.04 per diluted common share for the same period last year. In addition to the drivers I mentioned before, the year-over-year improvement, was the result of a $12 million reduction in our provisions, impairments and loss on transfer to venture. The prior period also included $12 million of non-cash loss on early extinguishment of debt associated with refinancing transactions. For the full year 2013, we reported an adjusted loss of $22 million,…

Thanks Dave. And I hope you can see we continue to be busy on all fronts. And as Dave said, we look forward to providing additional information and spotlighting various projects and investment as they come to fruition throughout this year. So let’s go ahead and open it up for questions, Operator.

Certainly. Ladies and Gentlemen, today’s question-and-answer session will be conducted electronically. (Operator Instructions) We will take as many questions as time permits and proceed in the order that you signal us. (Operator Instructions) We’ll pause for just a moment to assemble the roster. And the first one from Michael Kim with CRT Capital Group. Please go ahead. Michael Kim – CRT Capital Group: Hi. Good morning. Thanks for taking my question. Nice quarter and I really appreciate the disclosure of the progress being made with specific assets in the portfolio. Jay, I guess my first question, I was just wondering if you could discuss the net lease venture with the sovereign wealth fund in more detail on several fronts. Yes, know you’ll own about 52 percent of the venture but, you know, how much cash did iStar contribute to the venture? Can you provide any specifics on the promoted management fee targeted yields for the venture or any sort of like ramp up of assets being contributed? And I guess the ultimate strategy of the venture, will you target net lease assets with investment grade tenants or kind of the split between development versus acquisition of stabilized assets and will there be an opportunity for iStar to actually contribute some of your own transitional properties to the venture as well?

Hey, Michael, thanks. The ventures really intended to give us a little more flexibility about where we can go in the net lease market. As you know, we struggled a little bit with some of the frothiness in that market and we still see some opportunities that are either too concentrated or too big for us. So we have been looking for the right partner for quite a while. I think we’ve got a great partner now, very interested in the net lease business in our capabilities there, pretty freeform. I think the first deal was an investment grade deal – it had a little piece of future development opportunity attached to it that’s kind of in our wheel house. The returns are nice and solid given that where senior debt is pricing these days. So I think from a return standpoint, we’re certainly looking to put money out in low to mid-teens, long term stable duration assets on a modestly levered basis. The partner is paying us some management fee and promote – I won’t go into too many details there but I think it’s a great relationship for us long term not just in net lease business but it also gives us a partner who’s quite interested and allow the other fronts that we’re looking at actively, so we hope it’s a relationship that grows and builds and certainly the net lease is going to be the core of it. But we’re hoping it has the potential to expand in lots of other directions as well. Michael Kim – CRT Capital Group: Right. I appreciate that. And I guess shifting to the land side, with the venture with KB Home to jointly develop the first phase with Spring Mountain Ranch, and I guess could you describe that venture in a little bit more detail and if it could be applicable to other master planned communities that you own. I guess how many lots on the first phase or the timing of development or even the economics of that venture? Is it more of a rolling lot option contract? I guess how should we think about this in terms of the structure and could that be applied to the other projects you have in portfolio?

Good question. I think the truth is, each one of these is bespoke, depends on the market, depends on the property, depends on our business plan. This is a large property in Riverside. It’s over – I think it’s about 1,400 units. It works from some low elevations up into some hills where it’s reasonably costly. So we’re having to put in quite a bit of infrastructure and given the size of the community, we wanted to make sure it kicks off correctly and certainly with the kind of velocity that will make future phases more valuable to us on a MCV basis. So as we looked around KB, it’s probably the best partner we could have found. The structure of the deal – they really met the two criteria we had, as one, they were willing to put capital in, side-by-side with us, and two, they provided for a profit participation. So we think the California market is one that is turned. We’re actually seeing some pretty good activity across even some of the Inland Empire market like Riverside. So we want to play and keep our foot in the game but we are very cognizant that velocity is a killer if you don’t get it right. And so KB is somebody who we think has done it right again and again in those local markets and we wanted them in our team. So the way we’ll structure these deals is going to be a little different. This one has a lot of upfront infrastructure. So having a capital partner is important. In a lot of our other JVs, we don’t need any capital partner. I’m going to be – much more about expertise and there will be much less upfront investment for hopefully a longer term payout. So this one is a little bit unusual, but again the goal is to find the right partner in lots of different markets. You’ll see us talk about deals in other markets throughout the year where there’s a lot less capital equation and much more just getting the right partners who can steer the ship, and we’ll probably be paying them some sort to promote in lieu of getting their capital. So each one is going to be different Michael, I think this one is the right kind of structure for this community. It comes to us about a third of the lots. Michael Kim – CRT Capital Group: Okay.

They have quite a bit of money up but there’s no forced take down. Michael Kim – CRT Capital Group: I see.

We think they think it’s a very attractive community. They’re putting their money where their mouth is. We think they are in a position to help us build a very good entry to the rest of the community. And we look forward to working with them on a number of things both in this project and elsewhere. So I don’t want you to think there’s any single template, there isn’t. Michael Kim – CRT Capital Group: Yes.

Each one is really a pretty sensitive mix between what our needs are and what our partners needs are. But you will see us use the structure more often throughout the year. Michael Kim – CRT Capital Group: Okay.

In some cases it’s a value maximization game for us. We just want to extract the most profit we can. In other words, we’re just trying to increase velocity and get our money back. So sometimes you’ll see us try to get a very large participation, in other cases we don’t think the returns are going to be that interesting. We’re just trying to get our capital back so we can redeploy it. Michael Kim – CRT Capital Group: Understood. I appreciate all the color and keep up the good work. Thanks.

Thanks, Michael.

(Operator Instructions). And we’ll go to Jade Rahmani with KBW. Please go ahead. Jade Rahmani – KBW: Good morning, and thanks for taking the question. On the investment pipeline, can you discuss what you’re seeing in terms of opportunities and also competition? Any color on yields, the LTVs and deal types would be helpful.

Yes. I think the market is pretty active both on the supply and the demand side. I think there’s no shortage of capital. But it seems like it’s really splitting into the commodity parts of the business which we certainly can’t compete in and don’t – we choose not to compete in. But there’s a big gulf between that business and some of the more entrepreneurial developers and borrowers out there who need sort of bespoke customer tailored financing. As we said in the past we are gravitating to larger deals. We certainly see the competitive landscape much thinner up there. The Black Stones and the Star [ph] guys we partnered with in the past, we certainly see them. But that’s an L plus 700 and above market. And to do that in size requires a lot of in-house capabilities and talent and experience. And there just aren’t that many players who can reach up into those areas. So you’ll see us play up there. We are still seeing pretty good deal flow out of our existing customer base. So you’ll see us continue and try to work that. But I would say it’s just – it’s an active market. There’s a pretty big shift going on as banks get ready for Basel III. Try to put themselves in the best position. They are seeding parts of the market to folks like us. But they’re being pretty strong and pretty aggressive on the parts of the market they do like. So you’ve got to dance away from that capital and find where your strengths are and we think we’re starting to see where we can play and generate some pretty interesting returns. Jade Rahmani – KBW: Thanks. Could you elaborate on your expectations around capital deployment? Do you view the pace of announced investment activity as sustainable and do you expect to fund incremental opportunities solely from cash on hand and cash generation or would you anticipate accessing the capital markets for growth capital?

Yes. Look I think that from a pacing stand point $100 million to $200 million a quarter is very doable and probably can be self-financed. But if we get up to the upper end of that range and don’t do some things on the existing portfolio in terms of monetization, there is an opportunity to look to the markets to fund even more incremental growth. But I think we’re going to let the opportunity set in the market guide us. If we see great opportunities that are valuable to the company, we’ll try to ramp up originations and then look inside our own portfolio for that capital and if it’s even beyond that, then we could certainly go to the outside world. Right now though, I’d say $200 million per quarter probably that would stretch our internal resources. So if it gets much above that, we’ll certainly be thinking about alternatives. You know this land equation is a big one for us. How much money do we want to commit to that versus harvesting? If the returns are good we’re going to keep investing in that portfolio. And I think that’s one of the big question marks later in the year is how much do we take off the table versus how much do we redeploy inside that business line. And that will probably govern some of our thinking. Jade Rahmani – KBW: That’s helpful. Just on the land book, I have just two questions. One is a clarification I think in the way you described the land projects. This quarter you disclosed five projects in production, 11 in development and 11 in pre-development, totaling 27 where – which is different from last quarter’s six in production, 12 in development and 8 in pre-development for a total of 26. So could you explain that change? And then also just more broadly if there’s anything you’re seeing on the housing market or land market that changed how you think about the outlook for that business?

In relation to the land projects, there were some changes quarter-over-quarter. Notably we sold the project Kula [ph] in Hawaii which was in production. So that was sold during the quarter. And also as Jay mentioned Spring Mountain Ranch was broken into two. Phase one with our development activities was segregated into one piece. And phases two and three which are not yet in production were moved to a separate category. So you’ll see some shuffling amongst categories as things play out with the land portfolio. Jade Rahmani – KBW: Okay, great. And just a follow up on the outlook for the housing and land market.

You know what’s interesting to us is, the numbers came in pretty weak this quarter. We just think every quarter that supplies based constrained is going to be a good quarter down the road. Rates have come in a little bit. So I think from an affordability stand point, people are still nervous about how far and how fast. We’re not seeing a ton of impact from that. A little bit of a slowdown in certain markets that moved really fast as people adjust to the new pricing level. But affordability is still pretty good from a historical stand point. Rates are very good from a historical stand point, supplies constrain from both the historical and recent history stand point. So I think other than a demand shock, we still see upward lift across most of the markets we’re in. Certainly Southern California is one we’re thinking that’s going to be quite good for us, Southern Florida good for us. We’ll see what happens in the macro economy throughout the year. But as long as there’s no big shocks, we think the trend is certainly still positive. Jade Rahmani – KBW: Great. Thank you very much.

Thanks, Jade.

And Mr. Fooks, there are no further questions in queue.

Thanks, John, and thanks everyone for joining us this morning. If you should have any additional questions on today’s earnings release, please feel free to contact me directly. John, would you please give the conference call replay instructions once again? Thanks.

Certainly. And ladies and gentlemen, the replay starts at 12.30 p.m. Eastern time and will last until March 6th at midnight. You may access the replay at any time by dialing 800-475-6701, the access code is 319108. That number again, 800-475-6701, the access code 319108. That does conclude your conference for today. Thank you for your participation. You may now disconnect.