Exhibit 99.1

iStar Financial Announces Second Quarter 2011 Results

·                  Net income (loss) allocable to common shareholders for the second quarter 2011 was ($35.5) million or ($0.38) per diluted common share.

·                  Company recorded $13.1 million of loan loss provisions and impairments for the quarter versus $121.9 million for the same period last year.

·                  Company continues to deleverage, retiring $684.6 million of debt during the quarter.

·                  Company enters into new $120.0 million secured financing due 2021.

NEW YORK - July 28, 2011 - iStar Financial Inc. (NYSE: SFI) today reported results for the second quarter ended June 30, 2011.

iStar reported net income (loss) allocable to common shareholders for the second quarter of ($35.5) million, or ($0.38) per diluted common share, compared to $212.3 million, or $2.27 per diluted common share, for the second quarter 2010. Results for the prior year included $266.0 million of gains associated with the sale of net lease assets. In addition, the year-over-year change is due to lower loan loss provisions and impairments of $13.1 million versus $121.9 million in the same period last year, partially offset by lower gain on early extinguishment of debt from the same period last year.

Adjusted EBITDA for the second quarter was $102.7 million, compared to $401.3 million for the same period last year. Results for the prior year included $266.0 million of gains associated with the sale of net lease assets. In addition, the year-over-year decrease is due to lower revenues from a smaller overall asset base, as well as higher operating costs associated with the Company’s other real estate owned and real estate held for investment assets. The decrease was partially offset by increased earnings from equity method investments. Please see the financial tables that follow the text of this press release for details regarding the Company’s calculation of Adjusted EBITDA.

During the second quarter, the Company generated $720.2 million of proceeds from its portfolio, primarily comprised of $584.9 million in principal repayments, $68.2 million from loan sales and $67.1 million from sales of other real estate owned (OREO) assets. Additionally, the Company funded a total of $37.0 million of investments.

Capital Markets

During the quarter, the Company retired $684.6 million of debt, including the remaining $329.9 million on its unsecured credit facility due June 2011 and the remaining $96.9 million of its 5.125% senior unsecured notes due April 2011. In addition, the Company paid down $244.9 million on the A-1 Tranche of its secured credit facility during the quarter. The Company’s weighted average effective cost of debt for the quarter was 5.7%, while leverage was 2.1x at June 30, 2011, versus 2.2x at the end of the prior quarter. Please see the financial tables that follow the text of this press release for a calculation of the Company’s leverage.

During the quarter, the Company entered into a $120.0 million secured term loan financing maturing in 2021. This financing is collateralized by net lease properties occupied by a single tenant and bears interest at a rate of 5.05%.

The Company repurchased approximately 182,000 shares of its common stock during the quarter. The Company currently has remaining authority to repurchase up to $12.6 million of shares under its share repurchase program.

Portfolio Overview

At June 30, 2011, the Company’s total portfolio had a carrying value of $7.70 billion, gross of general loan loss reserves. The portfolio was comprised of $3.71 billion of loans and other lending investments, $1.77 billion of net lease assets, $1.59 billion of owned real estate and $634.9 million of other investments.

At June 30, 2011, the Company’s $2.64 billion of performing loans and other lending investments had a weighted average last dollar loan-to-value ratio of 78.8% and maturity of 3.4 years. The performing loans consisted of 53.3% floating rate loans that generated a weighted average effective yield for the quarter of 6.24%, or approximately 602 basis points over the average one-month LIBOR rate for the quarter, and 46.7% fixed rate loans that generated a weighted average effective yield for the quarter of 8.42%. The weighted average risk rating of the Company’s performing loans was 3.35, an improvement from 3.37 in the prior quarter. Included in the performing loan balance was $74.3 million of watch list assets, a decrease from $146.2 million in the prior quarter.

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At June 30, 2011, the Company’s non-performing loans (NPLs) had a carrying value of $1.07 billion, net of $589.0 million of specific reserves. This was a decrease from $1.30 billion, net of $676.5 million of specific reserves, at the end of the prior quarter. For the quarter, the Company recorded $26.3 million of interest income associated with the resolution of NPLs.

At the end of the quarter, the Company’s $1.77 billion of net lease assets, net of $343.5 million of accumulated depreciation, were 89.3% leased with a weighted average remaining lease term of 12.2 years. The weighted average risk rating of the Company’s net lease assets was 2.69, unchanged from the prior quarter. For the quarter, the Company’s occupied net lease assets generated a weighted average effective yield of 9.6% and the total net lease assets generated a weighted average effective yield of 8.4%.

At the end of the quarter, the Company’s $1.59 billion owned real estate portfolio was comprised of $723.3 million of OREO and $869.1 million of real estate held for investment (REHI). The Company’s OREO assets are considered held for sale based on management’s current intention to market and sell the assets in the near term, while management’s current intent and strategy is to hold, operate or develop its REHI assets over a longer term. During the quarter, the Company took title to properties with a carrying value of $72.4 million. This resulted in $62.9 million of charge-offs against the Company’s reserve for loan losses on the $135.3 million gross carrying value of the loans these assets collateralized prior to foreclosure. For the quarter, the Company generated $6.7 million of revenue, incurred $18.0 million of net expenses and funded $9.0 million of capital expenditures associated with its owned real estate portfolio.

For the second quarter, the Company recorded $10.4 million in loan loss provisions versus $10.9 million in the prior quarter. At June 30, 2011, loan loss reserves totaled $701.2 million or 16.3% of total gross carrying value of loans. This compares to loan loss reserves of $804.1 million or 15.8% of total gross carrying value of loans at March 31, 2011.

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[Financial Tables to Follow]

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iStar Financial Inc. (NYSE: SFI) is a fully-integrated finance and investment company focused on the commercial real estate industry. The Company provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests directly across a range of real estate sectors. The Company, which is taxed as a real estate investment trust (“REIT”), has invested more than $35 billion over the past two decades. Additional information on iStar Financial is available on the Company’s website at www.istarfinancial.com.

iStar Financial will hold a quarterly earnings conference call at 10:00 a.m. ET today, July 28, 2011. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through iStar Financial’s website, www.istarfinancial.com, under the “Investor Relations” section. To listen to the live call, please go to the website’s “Investor Relations” section at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the iStar Financial website.

(Note: Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although iStar Financial Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from iStar Financial Inc.’s expectations include the Company’s ability to generate liquidity and to repay indebtedness as it comes due, additional loan loss provisions, the amount and timing of asset sales (including OREO assets), increases in NPLs, repayment levels, the Company’s ability to reduce its indebtedness, the Company’s ability to maintain compliance with its debt covenants, economic conditions, the availability of liquidity for commercial real estate transactions and other risks detailed from time to time in iStar Financial Inc.’s SEC reports.)

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iStar Financial Inc.

Consolidated Statements of Operations

(In thousands)

(unaudited)

(1) For the three months ended June 30, 2011 and 2010, includes $4,314 and $4,984 of stock-based compensation expense, respectively. For the six months ended June 30, 2011 and 2010, includes $8,469 and $9,714 of stock-based compensation expense, respectively.

(2) HPU holders are current and former Company employees who purchased high performance common stock units under the Company’s High Performance Unit Program. Participating Security holders are Company employees and directors who hold unvested restricted stock units and common stock equivalents under the Company’s Long Term Incentive Plans that are currently eligible to receive dividends.

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iStar Financial Inc.

Earnings Per Share Information

(In thousands, except per share amounts)

(unaudited)

(1) Excludes preferred dividends and net (income) loss from noncontrolling interests. For the six months ended June 30, 2011, also excludes income from continuing operations allocable to Participating Security holders of $1,706 and $1,669 on a basic and dilutive basis, respectively, and net income allocable to Participating Security holders of $1,609 and $1,575, on a basic and dilutive basis, respectively.

(2) For the three months ended June 30, 2011 and June 30, 2010, net income (loss) allocable to HPU holders was ($1,089) and $6,452, respectively on both a basic and dilutive basis. For the six months ended June 30, 2011, net income allocable to HPU holders was $1,031 and $1,009, on a basic and dilutive basis, respectively. For the six months ended June 30, 2010, net income allocable to HPU holders was $5,684 on both a basic and dilutive basis.

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iStar Financial Inc.

Consolidated Balance Sheets

(In thousands)

(unaudited)

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iStar Financial Inc.

Supplemental Information

(In thousands)

(unaudited)

(1) Adjusted EBITDA should be examined in conjunction with net income (loss) as shown in the Consolidated Statements of Operations. Adjusted EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is this measure indicative of funds available to fund the Company’s cash needs or available for distribution to shareholders. It should be noted that the Company’s manner of calculating Adjusted EBITDA may differ from the calculations of similarly-titled measures by other companies. Interest expense, depreciation and amortization and impairment of assets excludes adjustments from discontinued operations of $14,465, $886 and $297, respectively, for the three months ended June 30, 2010. Impairment of assets excludes adjustments from discontinued operations of ($26) for the six months ended June 30, 2011.  Interest expense, depreciation and amortization and impairment of assets excludes adjustments from discontinued operations of $30,515, $7,134 and $318, respectively, for the six months ended June 30, 2010.

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iStar Financial Inc.

Supplemental Information

(In thousands)

(unaudited)

(1) Calculations include $391,537 of accumulated depreciation, $84,100 of general loan loss reserves and $617,128 of specific loan loss reserves, as stated.

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iStar Financial Inc.

Supplemental Information

(In thousands)

(unaudited)

LOANS AND OTHER LENDING INVESTMENTS CREDIT STATISTICS

(1) Gross carrying value represents iStar’s carrying value of loans, gross of loan loss reserves.

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iStar Financial Inc.

Supplemental Information

(In millions)

(unaudited)

PORTFOLIO STATISTICS AS OF JUNE 30, 2011 (1)

(1) Based on carrying value of the Company’s total investment portfolio, gross of general loan loss reserves.

(2) Performing loans and other includes $635 million of other investments.

-end-

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