[Update 1: corrects earnings numbers] Commercial real estate firm iStar Financial (SFI) posted a second quarter loss of $83m or $0.89 per diluted common share, compared with $250.1m or $2.51 per diluted common share for the Q209. $890.9m of its $1.53bn gross book value is classified as REO and being held for sale in the near term. The remaining $641.5m is classified as real estate held for investment, as iStar intends to hold, operate or develop these commercial real estate assets over a longer term. iStar continues to unwind mortgage holdings, as it can. The company operates on balance sheet, meaning it rarely, if ever, issue securitizations for its holdings. Its portfolio of first mortgages and participation in first mortgages, senior loans and corporate tenant lease investments collectively comprised 77.4% of the company’s asset base, versus 82.3% in the prior quarter. Its loan portfolio consisted of 70.5% floating rate loans and 29.5% fixed rate loans, with a weighted average maturity of 2.2 years. The company said 63 of iStar’s 195 total loans are in non-performing status. Adjusted Q210 earning does not include the $250.3m, or $2.60 per diluted common share, gain associated with the portfolio sale of 32 corporate tenant lease properties completed during the quarter. Revenues for the second quarter 2010 were $136.8m versus $193.1m for the second quarter 2009. The year-over-year decrease is primarily due to a reduction of interest income resulting from performing loans moving to non-performing status and, to a lesser extent, a smaller asset base resulting from loan repayments and sales. In Q210, iStar sold 32 corporate tenants lease properties resulting in net proceeds of $1.33bn. In addition, the company received $508.8m in gross principal repayments; generated $82.7m of proceeds from loan sales; $74.0m of net proceeds from sales of other real estate owned assets; and $69.5m of net proceeds from the sale of four additional corporate tenant lease assets. iStar also repurchased $234.9m par value of its senior unsecured notes and redeemed a total of $282.3m par value of its 2011 and 2014 senior secured notes. Write to Jacob Gaffney. The author held no relevant investments.