1

Corporate PresentationMay 2010

22

Safe Harbor

Certain statements in this presentation may contain forward-looking statements. The forward-looking statements may involve a number of risks and uncertainties. A number of factors including those set forth in the Company’s Annual Report on Form 10-K could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Securities and Exchange Commission filings of the Company. The Company undertakes no obligation to publicly update any information whether as a result of new information, future events, or otherwise.

Certain non-GAAP financial measures, as defined by the Securities and Exchange Commission, are set forth in this presentation. Our presentation of this information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Except as otherwise noted herein, reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP are set forth on the exhibits attached hereto.

This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities of our company.

33

NorthStar Realty Finance

Commercial real estate finance company (NYSE:NRF)

Three primary complementary business lines focused on commercial real estate:

Commercial real estate lendingReal estate securities investment and managementNet leased corporate and healthcare-related properties

$6.8 billion of commercial real estate loans, securities backed by commercial real estate mortgages and net leased real estate properties under management

New York headquarters with investments located throughout the U.S.

44

NorthStar Highlights

Management team averaging 20 years of experience in commercial real estate investment and ownership

Strong credit history and risk management platform

Centralized management structure ensures senior management involvement in all portfolio management and investment decisions

Long-term and flexible match funded capital structure and strong liquidity position ($214 million of liquidity)

Minimal near-term final debt maturities and no ratings triggers

Consistently paid a quarterly cash dividend since going public

Employees/Directors collectively own approximately 7% of NorthStar

55

NorthStar Highlights

NorthStar specializes in commercial real estate finance and property investment and has delivered a strong credit track record.

NorthStar’s management team is comprised of professionals who have experience in owning and operating real estate through cycles. The Company’s hallmarks include:

Focus on senior loans, direct origination, and in raising long-term capital during frothy real estate market resulted in best-in-class credit track record and liquidity management;Did not participate in top-of-the market syndicated financings such as Archstone Smith, Equity Office Properties, Hilton Hotels, Stuyvesant Town/PCV and others;Invested early in risk management infrastructure to support investment management activities. Experts in construction and owning and operating real estate are dedicated to managing NorthStar's assets;Aggressive capital raising and curtailment of commitments beginning in early 2007 enabled NorthStar to create an approximate $193 million cushion for credit losses from discounted debt repurchases;Match funded liability structure and conservative liquidity management approach have positioned NorthStar well in this difficult environment.

666

Complementary Primary Business Lines

Originate, acquire and structure senior and subordinated debt $2.1 billion(1) assets / $20 million average size81.9% weighted average loan-to-value(2)

3-year weighted average remaining term to extended final maturity

CMBS/unsecured REIT debt/bank loans$3.5 billion assets under management / $5 million average sizeBB average rating6-year weighted average expected remaining life

Healthcare/corporate property focus$1.1 billion assets / $9 million average size7-year weighted average remaining termStrong lease coverage on healthcare portfolio

Net Lease Properties

Real Estate Debt

Real Estate Securities

(1) Excludes $0.1 billion of equity invested in joint ventures.

(2) Loan-to-value generally represents loan-to-cost unless the collateral has been revalued as part of a loan modification or credit situation.

7

Seasoned Executive Team

Name NRF Position Yrs of Exp Relevant Background

David T. Hamamoto CEO 27 NorthStar Capital - Co-Founder Goldman, Sachs & Co. - Co-Founder and Partner of Real Estate Principal Investment (Whitehall Funds)

Andrew C. Richardson CFO and EVP 20 iStar Financial Inc. – EVP, Capital Markets Salomon Smith Barney – VP, Global Real Estate and Lodging Group Ernst & Young - C.P.A

Daniel R. Gilbert CIO and EVP 17 NorthStar Capital – Head of Mezzanine Lending BusinessMerrill Lynch - Group Head in Global Principal Investment and Commercial Real Estate

Al Tylis COO, General Counsel and EVP

13 ASA Institute - Director of Corporate Finance and General CounselBryan Cave LLP - Senior attorney

Daniel D. Raffe EVP 22

GE Business Property - Head of East and Midwest real estate acquisitionsCushman & Wakefield – Managing Director, Real Estate Capital Markets

Robert Riggs Director of Portfolio Management

23 Olympus Real Estate Partners - PartnerGE Capital Realty Group – COO and EVP of Equity Investing

888

NorthStar Priorities

Liquidity Management and Capital RetentionNorthStar used its strong liquidity position and market volatility to strengthen and de-lever its balance sheet during 2009.Aggressively seek asset monetization opportunities, even at discounts to cost.

Intensive Credit Risk ManagementActive executive management involvement in all portfolio management strategies.

Capital RaisingAccess alternative capital by leveraging NorthStar’s commercial real estate franchise to make opportunistic investments.Develop and seek creative financing structures – filed S-11 with the SEC in connection with newly formed REIT, NorthStar Real Estate Income Trust.Newly formed NorthStar broker-dealer, NRF Capital Markets, registered with the SEC and approved as a member of FINRA.

999

Diversified Asset Base (As of March 31, 2010)

Source: NorthStar Realty Finance Corp.(1) Excludes RE securities, equity investments in real estate and

corporate lending.

16% First Mortgages (Whole

loans)

11% Mezzanine & Other

Non-IG Securities

32%

4% JuniorParticipations

High Quality Diversified Asset Types

Three Business Lines by Invested Capital Diversified Property Types (1)

2% IG Net Lease

Geographic Diversification (1)

10% Core Net Lease

2% Retail-Net Lease2% Industrial

3% Condo

9% Retail-Loans

13% Office-Net Lease

15% Hotel

15% Non-IG Net Lease

8% Healthcare Net Lease

13% Real EstateSecurities

48% RealEstateDebt

12% JV Investments/ Other

Office –Loans

18%

Healthcare21%

9% Cash

IG Securities 20%

Multi-Family17%

Midwest25%

Southeast16%

Southwest12% North-

east10%

2% Northwest3% Other5% Mid-Atlantic

5% Southern Cal.

6% Northern Cal.

8% New York

8% West

101010

Seasoned, High Credit-Quality Commercial Real Estate Securities (As of March 31, 2010)

2002

2007

6%3%

200613%

13%

CMBS by Vintage

2003

Securities By Credit Rating(2)

55% Non-Investment Grade

47% CMBS Non-IG

7% REIT IG

45%

Investment Grade

NorthStar’s Securities Investment Portfolio (excluding securities owned by NRESOF) (1)

$2.6 billion

CMBS IG

200518%

36%

2001 and prior

18%

58% 2005 and prior42% 2006 and after

21%

2004

BBB30%

2% AA

9% A

4% AAA

25% B 15%

BB

Source: NorthStar Realty Finance Corp.(1) $0.9 billion of securities are managed in NorthStar Real Estate Securities Opportunity Fund in

which NorthStar is the general partner and has a 31% LP interest as of March 31, 2010.(2) If securities are split-rated then highest ratings category used.

7% Other

3% REIT Non-IG

9%

CC and below

6%

CCC

8%2008 and 2009

1111

Strong Credit Performance

Minimal realized credit losses on commercial real estate loans to dateNPLs just 4.2% of total loans.Approximately 40% of loans have some sort of recourse obligation to the sponsors.Just $7 million of expected unrestricted cash needs to fund all remaining loan commitments.

Commercial real estate securities have minimal delinquenciesCMBS portfolio average credit rating is Ba2/BB despite significant and industry-wide downgrade actions. Older vintage focus provides greater credit enhancement and ratings action cushion.No repo or short-term financing. Ability to hold investments until maturity.

All CDOs in compliance with overcollateralization and interest coverage tests.

1212

Preferred andCommon Equity +

OP Minority Interest

121212

Capitalization and Non-Recourse Match Funding

$214 million liquidity Long-term match funded capital

$350 million of committed bank debt capital.$800 million of mortgages with major financial institutions $3.0 billion on-balance sheet flexible CDO financings at investment grade cost of funds. Most financings still within reinvestment periods.$38 million of U.S. Government issued Term Asset Backed Securities Loan (TALF) financing.

Long-term subordinate capital$280 million of 30-year trust preferred securities provide cost-effective, “equity-like” capital.

$250 million of perpetual preferred equity at 8.37% average cost

Funded Balance at March 31, 2010

76%

5%

17%

2%

Mortgage / Term Loans / CDO

Match Funded Debt

Trust Preferred

Exchangeable Notes

Note: Debt values are shown at principal amounts and preferred equity is shown at book value as of March 31, 2010. Common equity is shown exclusive of mark-to-market adjustments and accumulated depreciation.

131313

(1) Includes debt issuance costs.

Low All-in Funding Cost of NorthStar Term Debt Financings

Securities Real Estate Debt

Securities Term Debt Financings Loan Term Debt Financings

Spre

ad (

bps)

(1)ov

er S

wap

s

($ in millions)

Low-Cost Match-Funded Financing

Issuance Date: 8/21/03 7/1/04 3/10/05 9/22/05 6/22/06 2/28/07 6/14/05 3/17/06 12/7/06

Amount: $400 $400 $400 $500 $550 $800 $400 $450 $900

Re-investmentPeriod Remaining (yrs.)

0 0 0 0.5 1.2 2.2 0.2 1.2 1.9

N-Star

1414

NorthStar Realty Finance

Commercial real estate finance company (NYSE:NRF)

Three primary complementary business lines focused on commercial real estate:

Commercial real estate lendingReal estate securities investment and managementNet leased corporate and healthcare-related properties

$6.8 billion of commercial real estate loans, securities backed by commercial real estate mortgages and net leased real estate properties under management

New York headquarters with investments located throughout the U.S.

15

APPENDIX

1616161616161616

AFFO Reconciliation

Source: Company filings and press releases.Q1’08 – Q4’08 includes restated financial statement figures after adoption of FASB APB 14-1(1) Includes Minority Interest in Joint Ventures.(2) Includes depreciation and amortization of unconsolidated ventures.(3) Includes straight-line rental income of unconsolidated ventures.

2010

($ in Thousands, except per share) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Funds from Operations (FFO)Consolidated net income (loss) $222,152 ($23,267) $251,581 $251,863 $102,731 $2,469 ($65,773) ($189,931) ($20,103)Less: Non-controlling interest in joint ventures (1) (245) 448 (2,300) (2,517) (2,464) (1,976) (2,555) (2,560) (1,962)Consolidated net income (loss) before non-controlling interest in operating partnership $221,907 ($22,819) $249,281 $249,346 $100,267 $493 ($68,328) ($192,491) ($22,065)

+ Preferred Stock Dividend (5,231) (5,231) (5,231) (5,231) (5,231) (5,231) (5,231) (5,231) (5,231)+ Depreciation and Amortization (2) 10,185 10,224 13,737 9,954 15,061 17,629 3,959 7,890 8,720+ Funds from Discontinued Oper. 0 0 0 0 0 0 0 573 0 Total $226,861 ($17,826) $257,787 $254,069 $110,097 $12,891 ($69,600) ($189,260) ($18,576)

Adjusted Funds from Operations (AFFO)FFO $226,861 ($17,826) $257,787 $254,069 $110,097 $12,891 ($69,600) ($189,260) ($18,576)+ Straightline Rental income (3) (803) (755) (383) (536) (504) (724) (584) (607) (572)+ Amortization of Fair Market Rental Adj. (306) (305) (809) (320) (325) 163 (304) (335) (264)+ Amortization of Deferred Compensation 6,991 5,966 5,439 6,284 5,144 5,320 5,007 5,003 5,058Less: Unrealized MTM (Gains)/Losses 209,073 (42,125) 236,355 243,790 91,798 (1,881) (85,003) (206,078) 19,533 Total $23,670 $29,205 $25,679 $15,708 $22,614 $19,530 $19,522 $20,879 ($33,887)

AFFO Per Share $0.34 $0.42 $0.37 $0.36 $0.31 $0.26 $0.25 $0.25 ($0.41)

2008 2009