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LOS ANGELES--([ BUSINESS WIRE ])--Colony Financial, Inc. (the aCompanya) (NYSE: CLNY) today announced that the Companyas Board of Directors has declared cash dividends on shares of both its common and preferred stock for the second quarter of 2012. The Company's dividend policy is set by its Board of Directors and is evaluated based upon the deployment of the Company's capital and its taxable earnings and cash flow.

Common Stock Dividend

The Company's Board of Directors has declared a quarterly dividend of $0.35 per common share for the second quarter of 2012. The dividend will be paid on July 16, 2012, to stockholders of record on June 29, 2012.

8.50% Series A Cumulative Perpetual Preferred Stock

The Company's Board of Directors declared a cash dividend of $0.6847 per share on the Company's 8.50% Series A Cumulative Perpetual Preferred Stock with liquidation preference of $25 per share for the period from March 20, 2012 to July 15, 2012. The dividend will be paid on July 16, 2012, to stockholders of record on June 29, 2012.

About Colony Financial, Inc.

Colony Financial, Inc. is a real estate finance and investment company that is focused primarily on acquiring and originating commercial real estate loans and real estate-related debt at attractive risk-adjusted returns. Secondary debt purchases may include performing, sub-performing or non-performing loans (including loan-to-own strategies). Colony Financial has elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. Colony Financial is a component of the Russell 2000 and the Russell 3000 indices. For more information, visit[ www.colonyfinancial.com ].

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as amay,a awill,a ashould,a aexpects,a aintends,a aplans,a aanticipates,a abelieves,a aestimates,a apredicts,a or apotentiala or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Companyas control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking: the Companyas business and investment strategy; the Company's ability to maintain its qualification as a REIT for U.S. federal income tax purposes; and the Company's ability to maintain its exemption from registration under the 1940 Act.

All forward-looking statements reflect the Companyas good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Companyas future results to differ materially from any forward-looking statements, see the section entitled aRisk Factorsa in the Companyas Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission on March 9, 2012, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 filed with the SEC on May 8, 2012, and other risks described in documents subsequently filed by the Company from time to time with the SEC.