* Q3 adj loss $2.37/shr vs est loss $2.30

* To continue assets sales to fund commitments ahead

* Net investment income fell 14 pct

* In compliance with all covenants as of Sept. 30

* Shares fall as much as 13 pct (Recasts, adds CEO & analyst comment, conference call details)

By Archana Shankar

BANGALORE, Oct 30 (Reuters) - U.S. commercial real estate lender iStar Financial Inc (SFI.N: Quote, Profile, Research) reported a wider-than-expected third-quarter loss, hurt by provision for bad loans, and said it will continue to sell its portfolio assets to repay debt.

"We continue to expect to build liquidity to fund our commitments and near-term debt maturities using available cash, as well as loan repayments and asset-sale proceeds," Chief Executive Jay Sugarman said on a conference call with analysts.

The company said it was in compliance with all of its bank and bond covenants as of Sept. 30.