U.S. commercial real estate lender iStar Financial Inc (SFI.N) reported a wider-than-expected third-quarter loss and said it was in compliance with all of its bank and bond covenants.

IStar, which has been selling assets to repay debt, had $187.1 million of cash and available capacity on its credit facilities and total debt obligations of $11.3 billion as of Sept. 30, it said in a statement.

It had about $13.4 billion of assets at the end of the quarter.

Net loss allocable to common shareholders was $251.3 million, or $2.55 a share, for the third quarter, compared with a year-ago loss of $308.7 million, or $2.32 a share.

Excluding certain items, the loss was $2.37 a share.

Analysts were expecting iStar to post a loss of $2.30 per share, excluding items, according to Thomson Reuters I/B/E/S.

Quarterly revenue fell 38 percent to $210.2 million.

The year-over-year decrease (in revenue) is primarily due to a reduction of interest income resulting from an increase in non-performing loans, an overall smaller asset base and lower interest rates, the company said.

The company saw a 14 percent fall in net investment income to $180.2 million in the quarter. IStar recorded $345.9 million in loan loss provision for the third quarter, reflecting the continued deterioration in the overall credit markets and its impact on the portfolio.

The company said 85 of its 260 total loans were on non-performing loan status. These loans represent $4.4 billion, or 42 percent of its total managed loans. Shares of the company closed at $2.32 Thursday on the New York Stock Exchange.