Core Earnings, a non-GAAP financial measure, of $17.0 million, or $0.27 per basic and diluted share and net income attributable to common stockholders of $14.1 million, or $0.22 per basic and diluted share

During the quarter, the Company invested and committed approximately $526 million, composed of an additional $295 million commitment (for an aggregate commitment of $550 million) into CAH Operating Partnership, L.P. (“CAH OP”), the single family home rental platform known as Colony American Homes, $208 million into five originations with a blended interest rate of approximately 10% and $23 million into one performing loan acquisition at a price of 78% of par

Raised net proceeds of $232 million through the sale of 11.5 million shares of common stock to underwriters at a net price of $20.20 per share

Declared and paid a first quarter dividend of $0.35 per share of common stock, consistent with the fourth quarter of 2012

Subsequent to quarter end: (i) the Company invested and agreed to invest approximately $202 million, composed of $27 million into a commercial bank loan portfolio acquisition at a purchase price of 75% of par and approximately $175 million into a mezzanine loan origination with an interest rate greater than 11%; (ii) Colony American Homes, Inc., the majority interest holder of CAH OP, announced that it has filed a registration statement on Form S-11 with the U.S. Securities and Exchange Commission for a proposed initial public offering of its shares of common stock; and (iii) the Company issued $200 million of 5.00% Convertible Senior Notes due in April 2023; the notes were sold to the underwriters at a discount of 3%, resulting in net proceeds of $194 million to the Company

The Company increased its commitment and funded investment in CAH OP to $550 million and $375 million, respectively, from $255 million committed and invested as of December 31, 2012. As of March 31, 2013, Colony American Homes owned 8,236 homes in eight states and the current occupancy of homes owned for 180 days or longer was 86% while the overall portfolio occupancy was 55%. As of April 21, 2013, Colony American Homes owned over 9,500 homes in eight states.

The Company participated in a recently originated $375 million first mortgage loan secured by 11 upscale athletic clubs located in California. The loan bears an 8.0% fixed interest rate with a 25 year amortization schedule and has a five year term. The loan may be increased to $400 million based on the achievement of certain performance metrics by the borrower. The Company’s share of the fully funded loan will be $132 million, of which $123 million is currently funded.

The Company invested in a joint venture with a minority unaffiliated investor that funded $41 million of participating preferred equity in a newly formed entity that acquired a multifamily portfolio composed of approximately 2,200 units in the Atlanta and Dallas/Fort Worth metropolitan areas. The preferred equity provides a 12% preferred return, 1% issuance fee and a 30% profit participation after the joint venture and the sponsor have each attained a 12% internal rate of return. The joint venture may fund an additional $34 million to fund moderate renovations and future acquisitions, which we would approve at our sole discretion. The Company’s share of this participating preferred equity investment is 83%, or $34 million.

The Company invested in a joint venture with investment funds managed by an affiliate of the Company’s manager (“Co-Investment Fund(s)”) that acquired a performing $59 million senior mortgage loan secured by a retail asset in Florida. The loan was acquired for $46 million, or 78% of the unpaid principal balance. The loan bears a 6.0% fixed interest rate with a 30-year amortization schedule and matures in May 2021. The current yield is approximately 9% based on purchase price. The Company’s share of this investment is 50%, or $23 million.

The Company invested in a joint venture with a Co-Investment Fund and a strategic partner that funded a $41 million first mortgage loan secured by a 7 acre multifamily development parcel located in Florida. The loan bears an interest rate of 12%, of which 3.5% may be paid-in-kind, and is subject to a 1.5% origination fee and a 1% exit fee. The term of the loan is three years. The Company’s share of the investment was 49.5%, or $20 million.

The Company invested in a joint venture with a Co-Investment Fund that originated a $26.8 million loan for the land acquisition and predevelopment costs for a mixed use development in San Rafael, CA. The Company and the Co-Investment Fund funded $20 million at closing for the acquisition and will fund the remaining $6.8 million upon completion of various items. The loan bears an interest rate of 15%, of which 5% may be paid-in-kind, with a 1% origination fee. The term of the loan is five years. The Company’s share of this investment is 50%, or $10 million (with a future funding obligation of $3.4 million).

The Company invested in a joint venture with a Co-Investment Fund that originated a $22 million first mortgage loan secured by a waterfront development parcel located in Florida. The loan bears an interest rate of 14%, of which 4.5% may be paid-in-kind, with a 1% origination fee and a 1% exit fee. Additionally, upon certain performance metrics being achieved, we have the unilateral option to convert our position into subordinated development financing. The initial term of the loan is two years, plus two 6-month extensions. The Company’s share of the investment was 50%, or $10 million.

The Company completed a sale of 11.5 million shares of its common stock in January at a net price of $20.20 per share. The net offering proceeds, after deducting underwriting discounts and commissions and offering costs payable by the Company, were approximately $232 million.

The Company funded an additional $68 million (for aggregate fundings to date of $443 million and remaining uncalled capital commitment of $107 million) into CAH OP. Inclusive of the Company’s aggregate commitment, CAH OP has received aggregate commitments of approximately $2.2 billion, of which an aggregate $1.9 billion has been called to date. As of April 21, 2013, Colony American Homes owned over 9,500 homes in eight states.

On May 2, 2013, Colony American Homes, Inc., the majority interest holder of CAH OP, announced that it has filed a registration statement on Form S-11 with the U.S. Securities and Exchange Commission for a proposed initial public offering of its shares of common stock.

The Company invested in a joint venture with Co-Investment Funds that acquired a portfolio of loans secured by commercial real estate. The portfolio included 52 loans, of which 83% were performing at acquisition, with an aggregate UPB of approximately $72 million. The purchase price for the portfolio was approximately $54 million, or 75% of the portfolio’s UPB. Our share of this investment is 50%, or $27 million.

The Company committed to originate a $175 million mezzanine loan on a large portfolio of select-service, extended-stay and full-service hotels in the United States. The mezzanine loan will bear an interest rate of greater than 11% and a yield-to-maturity of approximately 13%.

In April, the Company issued $200 million of 5.00% Convertible Senior Notes due in April 2023. The notes were sold to the underwriters at a discount of 3%, resulting in net proceeds of $194 million to the Company.

ASSETS

Cash

Investments in unconsolidated joint ventures

Loans held for investment, net

Loan held for sale

Beneficial interests in debt securities, available-for-sale, at fair value

Other assets

Total assets

LIABILITIES AND EQUITY

Liabilities:

Secured financing

Accrued and other liabilities

Due to affiliates

Dividends payable

Total liabilities

Commitments and contingencies

Equity:

Stockholders’ equity:

Preferred stock, $0.01 par value, 8.5% Series A Cumulative Redeemable Perpetual, liquidation preference of $25 per share, 50,000,000 shares authorized, 10,080,000 shares issued and outstanding

Common stock, $0.01 par value, 450,000,000 shares authorized, 64,598,460 and 53,091,623 shares issued and outstanding, respectively

Additional paid-in capital

Distributions in excess of retained earnings

Accumulated other comprehensive income

Total stockholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

Income

Equity in income of unconsolidated joint ventures

Interest income

Other income from affiliates

Total income

Expenses

Management fees

Investment expenses

Interest expense

Administrative expenses

Total expenses

Other loss, net

Income before income taxes

Income tax provision

Net income

Net income attributable to noncontrolling interests

Net income attributable to Colony Financial, Inc.

Preferred dividends

Net income attributable to common stockholders

Net income per common share:

Basic

Diluted

Weighted average number of common shares outstanding:

Basic

Diluted

GAAP net income attributable to common stockholders

Adjustments to GAAP net income to reconcile to Core Earnings:

Noncash equity compensation expense

Incentive fee

Depreciation expense

Net unrealized (gain) loss on derivatives

Core Earnings

Basic

Diluted

Basic weighted average number of common shares outstanding

Diluted weighted average number of common shares outstanding