- Declares special common stock dividend payable in shares of
Safehold common stock
- Declares regular quarterly cash dividends on preferred
stock
- Suspends regularly quarterly common stock dividends pending
completion of the merger with Safehold Inc.
NEW
YORK, Nov. 21, 2022 /PRNewswire/ -- iStar Inc.
(NYSE: STAR) announced several dividend actions recently approved
by its Board of Directors.
Special Dividend
On November 21, 2022, the
Company's Board of Directors declared a one-time special dividend
payable to the Company's common stockholders of Safehold ("SAFE")
common stock valued at approximately $190
million, but subject to a maximum aggregate distribution
limit of 7.6 million SAFE shares and a minimum aggregate
distribution amount of 5.5 million SAFE shares. Also, the
dividend rate will not exceed 0.08766 shares of SAFE for each share
of iStar common stock outstanding. The dividend
will be paid on a pro rata basis on shares of iStar common stock
outstanding as of the close of business on the record date of
December 1, 2022.
Based on the value of SAFE common stock as of November 21, 2022, we estimate that the per share
rate of the special dividend would be 0.07315 shares of SAFE for
each share of iStar common stock outstanding, and iStar would
distribute an aggregate of approximately 6.3 million shares of SAFE
common stock in the special dividend. The Company will
announce the final special dividend rate and the dividend payment
date prior to the November 30, 2022
ex-dividend date for the special dividend. After giving
effect to the payment of the special dividend, iStar will continue
to own between 32.9 million and 35.0 million shares of SAFE common
stock.
The aggregate value of the special dividend is intended to
approximate the Company's estimate of its undistributed REIT
taxable income for 2022, which is primarily attributable to the
gain from the sale of Company's net lease portfolio in the first
quarter of the year, offset by certain net operating loss carry
forwards. As a real estate investment trust, the Company is subject
to excise tax on any undistributed net capital gains.
No fractional shares of SAFE common stock will be issued in
connection with the special dividend, and instead Company
stockholders will receive cash in lieu of any fractional
shares. The dividend is expected to be treated primarily as a
capital gain distribution and the Company will provide a more
detailed declaration of its dividend treatment in January 2023.
Preferred Stock Dividend
Additionally on November 21, 2022,
the Company's Board of Directors declared quarterly cash dividends
on the Company's preferred stock for the fourth quarter of 2022.
The dividends are all payable on December
15, 2022 to holders of record on December 1, 2022.
Series of
Stock
|
Liquidation
Preference
|
Dividend
Per Share
|
8.00% Series D
Preferred Stock
|
$25.00
|
$0.50
|
7.65% Series G
Preferred Stock
|
$25.00
|
$0.478125
|
7.50% Series I
Preferred Stock
|
$25.00
|
$0.46875
|
Common Stock Dividend
The Company announced that the Board has suspended the payment
of regular quarterly cash dividends on the Company's common stock
through the closing of the Company's pending merger with Safehold.
As previously announced, the merger agreement requires the Company
to repay its senior unsecured notes in connection with the merger,
and the suspension of the quarterly cash dividend is intended to
expedite the Company's satisfaction of this obligation.
* * *
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
institutional quality properties. As the founder, investment
manager and largest shareholder of Safehold Inc. (NYSE: SAFE), the
creator of the modern ground lease industry, iStar is using its
national investment platform and its historic strengths in finance
and net lease to expand the use of modern ground leases within the
$7 trillion institutional commercial
real estate market. 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. Additional information on iStar is available on
its website at www.istar.com.
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SOURCE iStar Inc.