Why does iStar Financial report Adjusted Earnings per share?
Adjusted Earnings per share reflects GAAP net income before depreciation and amortization, as well as before other non-recurring, non-cash items such as gains on sales of credit tenant lease assets and early extinguishment of debt charges (typically prepayment penalties incurred when we repay debt prior to its maturity). We believe Adjusted Earnings represents a better measure of the Company’s “cash earnings” than GAAP net income, especially because of the significant non-cash depreciation expenses generated by our credit tenant lease assets.
