Other Investments

The Company's other investments and its proportionate share of results from equity method investments were as follows ($ in thousands):



	Carrying value as of				Equity in earnings
	September 30, 2012		December 31, 2011		For the Three Months Ended September 30,					For the Nine Months Ended September 30,
					2012		2011			2012		2011
LNR	$	180,671	$	159,764	$	15,206	$	12,509		$	36,017	$	36,572
Madison Funds	84,360		103,305		3,206		(941		)	11,937		7,016
Oak Hill Funds	44,052		56,817		2,049		(3,117		)	5,932		2,961
OREO/REHI Investments	30,880		52,803		1,553		(1,267		)	15,747		(6,718		)
Other equity method investments (1)	67,345		73,146		705		3,633			6,292		15,050
Total equity method investments	$	407,308	$	445,835	$	22,719	$	10,817		$	75,925	$	54,881
Other	12,340		12,000
Total other investments	$	419,648	$	457,835

Explanatory Note:

_______________________________________________________________________________


(1)	For the three and nine months ended September 30, 2011, amounts include $1.4 million and $8.9 million, respectively, of earnings related to Oak Hill Advisors, L.P. and related entities which were sold in October 2011.

Summarized Financial Information

LNR—The following table represents investee level summarized financial information for LNR ($ in thousands)(1)(2):



	For the Three Months Ended June 30,						For the Nine Months Ended June 30,
	2012			2011			2012			2011
Income Statement
Total revenue(2)	$	86,038		$	104,584		$	234,734		$	260,997
Income tax expense (benefit)(3)	$	1,293		$	1,193		$	4,935		$	(31,140	)
Net income attributable to LNR	$	63,420		$	52,171		$	150,219		$	152,537
iStar's ownership percentage	24		%	24		%	24		%	24		%
iStar's equity in earnings from LNR	$	15,206		$	12,509		$	36,017		$	36,572



	As of June 30,			As of September 30,
	2012			2011
Balance Sheet
Total assets(2)	$	1,469,158		$	1,288,923
Total debt(2)	$	566,099		$	469,631
Total liabilities(2)	$	663,963		$	576,835
Noncontrolling interests	$	2,101		$	39,940
LNR Property LLC equity(4)	$	803,094		$	672,147
iStar's ownership percentage	24		%	24		%
iStar's equity in LNR(4)	$	180,671		$	159,764

Explanatory Notes:

_______________________________________________________________________________


(1)	The Company records its investment in LNR on a one quarter lag, therefore, amounts in the Company's financial statements for the three and nine months ended September 30, 2012 and 2011 are based on balances and results from LNR for the three and nine months ended June 30, 2012 and 2011, respectively.

(2)

LNR consolidates certain commercial mortgage-backed securities and collateralized debt obligation trusts that are considered VIEs (and for which it is the primary beneficiary), that have been excluded from the amounts presented above. As of June 30, 2012 and September 30, 2011, the assets of these trusts, which aggregated approximately $82.79 billion and $126.66 billion, respectively, were the sole source of repayment of the related liabilities, which aggregated approximately $82.52 billion and $126.64 billion, respectively, and are non-recourse to LNR and its equity holders, including the Company. In addition, total revenue presented above includes $27.5 million and $88.3 million for the three and nine months ended June 30, 2012, respectively, and $31.4 million and $72.6 million for the three and nine months ended June 30, 2011, respectively, of servicing fee revenue that is eliminated upon consolidation of the VIE's at the LNR level. This income is then added back through consolidation at the LNR level as an adjustment to income allocable to noncontrolling entities and has no net impact on net income attributable to LNR.


(3)	During the nine months ended June 30, 2011, LNR recorded an income tax benefit from the settlement of certain tax liabilities.


(4)	The Company's equity in LNR at September 30, 2012 reflects a $10.2 million cash distribution made during the third quarter that is not yet reflected in LNR Property LLC's equity shown above as of June 30, 2012.

Madison Funds—During the nine months ended September 30, 2012, the Madison Funds recorded a significant gain related to the sale of an investment for which the Company recorded its $13.7 million proportionate share.

OREO/REHI Investments—During the three and nine months ended September 30, 2012, earnings from equity interests in OREO/REHI investments included $4.0 million and $22.2 million, respectively, related to income recognized on sales of residential property units.