InvestorsHub Logo
Followers 40
Posts 3822
Boards Moderated 0
Alias Born 03/26/2007

Re: None

Sunday, 11/15/2015 11:57:56 PM

Sunday, November 15, 2015 11:57:56 PM

Post# of 87
Northstar Realty Finance reports Q3 results

Nov 9 2015, 07:04 ET | About: Northstar Realty Finance ... (NRF) | By: Jignesh Mehta, SA News Editor

Northstar Realty Finance (NYSE:NRF): Q3 EPS of -$0.69

Revenue of $528M (+171.7% Y/Y)

Press Release


http://seekingalpha.com/news/2910256-northstar-realty-finance-reports-q3-results?uprof=45#email_link


NorthStar Realty Finance Announces Third Quarter 2015 Results
2 comments | Mon November 9, 2015 7:00 AM|PR Newswire | About: NRF

NEW YORK, Nov. 9, 2015 /PRNewswire/ --

Third Quarter 2015 Highlights
•Cash available for distribution ("CAD") of $0.85 per share.
•Third quarter 2015 cash dividend of $0.75 per common share.
•In October 2015, completed spin-off of European REIT into a separate publicly-traded company, NorthStar Realty Europe Corp. ("NRE").
•Acquired $870 million of CRE investments in the third quarter 2015, representing $340 million of invested equity.

NorthStar Realty Finance Corp. (NRF) (NYSE (NYX): NRF) today announced its results for the third quarter ended September 30, 2015.

Third Quarter 2015 Results

NorthStar Realty reported CAD for the third quarter 2015 of $157.0 million, or $0.85 per share. Net (loss) to common stockholders for the third quarter 2015 was $(126.1) million, or $(0.69) per diluted share.

For more information and a reconciliation of CAD to net income (loss) to common stockholders, please refer to the tables on the following pages.

Jonathan A. Langer, Chief Executive Officer, commented, "NorthStar Realty continues to diligently execute its disciplined business strategies and remains committed to building a portfolio of diversified commercial real estate assets that we expect will generate long-term, durable cash flows. With the company trading at a significant discount to its net asset value, we believe our stock represents an extremely attractive investment opportunity."

Mr. Langer added, "We continue to maintain an ample amount of liquidity and are well positioned to take advantage of dislocations in the market, including through repurchases of our common stock. In addition, we are actively working to extract value throughout our portfolio by pursuing opportunities to monetize all or portions of certain of our assets, which would generate additional liquidity and provide a means for incremental earnings growth."

Portfolio Results and Performance Metrics

Below are portfolio results and performance metrics for the third quarter 2015. Same-store results are presented for direct real estate properties that NorthStar Realty owned as of September 30, 2014. A substantial portion of our healthcare real estate and multi-tenant office businesses were acquired subsequent to the third quarter 2014 and, accordingly, same-store results will be included beginning the first quarter 2016. For private equity fund investments and financial investments such as loans, securities and CDO equity, information presented represents third quarter 2015 results compared to second quarter 2015 results. For more information and a reconciliation of net operating income ("NOI") to property and other related revenues net of property operating expenses, please refer to the tables on the following pages.

Healthcare Real Estate
•For the third quarter 2015, combined healthcare portfolio NOI was $102.9 million.

Medical Office Buildings
•For the third quarter 2015, NOI was $25.5 million, remaining lease term was 6.7 years and occupancy was 90%.

Independent Living Facilities
•For the third quarter 2015, NOI was $12.4 million and occupancy was 93%.

Senior Housing (SNH) Triple Net Lease
•For the third quarter 2015, NOI was $14.7 million, remaining lease term was 11.4 years and lease (EBITDAR) coverage was 1.6x.

Senior Housing RIDEA
•For the third quarter 2015, NOI was $17.7 million and occupancy was 88%.

Skilled Nursing Facilities
•For the third quarter 2015, NOI was $27.7 million, remaining lease term was 9.0 years and lease (EBITDAR) coverage was 1.5x.

Hospitals
•For the third quarter 2015, NOI was $4.9 million, remaining lease term was 10.8 years and lease (EBITDAR) coverage was 2.6x.

Hotels
•For the third quarter 2015, EBITDA was $80.6 million, RevPAR was $102.2, occupancy was 80% and EBITDA margin was 38%.
•For portfolios owned as of September 30, 2014, EBITDA was $53.5 million, RevPAR was $102.2, occupancy was 79% and EBITDA margin was 38% for the third quarter 2015, compared to EBITDA of $48.4 million, RevPAR of $97.0, occupancy of 78% and EBITDA margin of 36% for the third quarter 2014.

Europe Real Estate

Office
•For the third quarter 2015, NOI was $30.3 million, remaining lease term was 4.8 years and occupancy was 93%. Third quarter 2015 NOI includes a partial quarter of NOI related to the $619 million office property located in Frankfurt, Germany acquired in July 2015.

Other
•For the third quarter 2015, NOI was $2.0 million, remaining lease term was 6.5 years and occupancy was 61%.

Manufactured Housing Communities
•For the third quarter 2015, NOI was $26.4 million, monthly rent was $488.4 and economic occupancy was 85%, compared to NOI of $25.5 million, monthly rent of $469.9 and economic occupancy of 85% for the third quarter 2014.

Net Lease Real Estate
•For the third quarter 2015, NOI was $15.0 million, remaining lease term was 9.0 years and occupancy was 96%, compared to NOI of $15.1 million, remaining lease term of 10.0 years and occupancy of 99% for the third quarter 2014.

Multifamily Real Estate
•For the third quarter 2015, NOI was $6.3 million, occupancy was 93% and monthly rent was $800.9, compared to NOI of $5.6 million, occupancy of 94% and monthly rent of $761.5 for the third quarter 2014.

Multi-tenant Office Real Estate
•For the third quarter 2015, NOI was $2.7 million, remaining lease term was 3.1 years and occupancy was 89%.

Interest in Private Equity Funds
•For the third quarter 2015, aggregate distributions were $182.3 million, of which $55.1 million was income earned and aggregate contributions totaled $2.2 million. As of September 30, 2015, aggregate portfolio net carrying value was $1.11 billion with a yield of 17.0%. For the second quarter 2015, aggregate distributions were $231.5 million, of which $52.4 million was income earned and aggregate contributions were $3.8 million and fundings related to deferred purchase prices were $42.9 million. As of June 30, 2015, aggregate portfolio net carrying value was $1.19 billion with a yield of 18.1%.

Balance Sheet Loans
•For the third quarter 2015, aggregate portfolio income earned on invested equity was $24.6 million. During the third quarter 2015, repayments totaled $7.5 million. Subsequent to the third quarter, we received a payoff of loans from RXR Realty, LLC ("RXR") totaling $215.9 million. As of September 30, 2015, aggregate portfolio carrying value was $805.8 million, net of $65.9 million of credit facility financing (or $589.9 million carrying value net of the RXR loan repayment), with a yield on equity of 11.0% (or 10.9% yield on equity net of the RXR loan repayment). For the second quarter 2015, aggregate portfolio income earned on invested equity was $31.2 million. During the second quarter 2015, repayments totaled $158.6 million. As of June 30, 2015, aggregate portfolio carrying value was $703.4 million, net of $65.9 million of credit facility financing, with a yield on equity of 12.5%.

N-Star CDO Bonds and Other Securities
•For the third quarter 2015, aggregate portfolio income earned was $14.9 million, which includes $3.1 million related to repurchased CDO bonds that are eliminated in consolidation. As of September 30, 2015, the principal amount of the portfolio, excluding repurchased CDO bonds that are eliminated in consolidation, was $497.1 million with an amortized cost of $237.7 million and a yield of 19.1%. As of September 30, 2015, the principal amount of repurchased CDO bonds that are eliminated in consolidation was $135.4 million. For the second quarter 2015, aggregate portfolio income earned was $14.4 million, which includes $2.7 million related to repurchased CDO bonds that are eliminated in consolidation. As of June 30, 2015, the principal amount of the portfolio, excluding repurchased CDO bonds that are eliminated in consolidation, was $508.9 million with an amortized cost of $240.8 million and a yield of 19.9%. As of June 30, 2015, the principal amount of repurchased CDO bonds that are eliminated in consolidation was $107.7 million.

CDO Equity and Other Income
•For the third quarter 2015, aggregate equity distributions and other income was $23.2 million. For the second quarter 2015, aggregate equity distributions and other income was $23.0 million.

Investments

Europe
•During the third quarter 2015, NorthStar Realty acquired a $619 million predominately office property located in Frankfurt, Germany. NorthStar Realty Europe expects to earn an initial current yield of approximately 8% on its $250 million of invested equity.
•The property was contributed to NRE subsequent to the third quarter 2015 at the completion of the spin-off of NRE ("NRE Spin-off").

Hotel Real Estate
•During the third quarter 2015, NorthStar Realty acquired a $143 million hotel portfolio consisting of three premium branded hotels containing over 800 rooms located in close proximity to the Miami International Airport. NorthStar Realty expects to earn an initial current yield of approximately 19% on its $39 million of invested equity.

Manufactured Housing Real Estate
•During the third quarter 2015, NorthStar Realty entered into a definitive agreement to acquire a $141 million portfolio of 13 manufactured housing communities with approximately 4,000 rental pads located across seven states. NorthStar Realty expects to earn an initial current yield of approximately 14% on its $31 million of invested equity. RHP, our existing joint venture partner and operator, will be a 15% joint venture partner in the transaction.

Opportunistic Real Estate Investments
•During the third quarter 2015, NorthStar Realty acquired limited partnership interests in real estate private equity funds with a net asset value of $75 million. NorthStar Realty funded $24 million at closing with an incremental $50 million in purchase price payable in two installments over the two years following closing. NorthStar Realty expects to earn an initial weighted average current yield of approximately 26% on its invested equity.

Repurchased N-Star CDO Bonds
•During the third quarter 2015, repurchased $36 million principal amount of N-Star CDO bonds for $27 million. NorthStar Realty expects to earn an initial weighted average yield to expected maturity of approximately 16%.
•Subsequent to the third quarter 2015, repurchased $27 million principal amount of N-Star CDO bonds for $20 million. NorthStar Realty expects to earn an initial weighted average yield to expected maturity of approximately 17%.

NorthStar Realty Total Assets
•Assets as of September 30, 2015 totaled approximately $17.5 billion, including assets of deconsolidated CDOs and investments that NorthStar Realty acquired or committed to acquire subsequent to the third quarter 2015 and excluding the European real estate assets contributed in the NRE Spin-off (as discussed below).
•Approximately 85% of the $17.5 billion of total assets are comprised of direct and indirect ownership interests in real estate.

Supplemental Disclosure
•Please refer to the supplemental presentation that will be posted on NorthStar Realty's website, www.nrfc.com, which provides substantial additional details regarding NorthStar Realty's investments.

Liquidity, Financing and Capital Markets Highlights
•During the third quarter 2015, N-Star CDO IV was liquidated, the third-party senior bondholders were re-paid in full and NorthStar Realty received aggregate $50 million from its N-Star CDO IV equity interest and owned CDO bonds. In connection with the liquidation, NorthStar Realty acquired $73 million of CRE debt investments which were funded with $48 million of credit facility financing and $25 million of invested equity.

Corporate Debt
•In July 2015, NorthStar Realty completed a private offering of $340 million aggregate principal amount of NRE's 4.625% senior stock-settlable notes due December 2016, which includes $40 million purchased by the underwriters in connection with the exercise of their over-allotment option. These notes were contributed to NRE in the NRE Spin-off.

Common Equity
•Subsequent to the third quarter 2015, NorthStar Realty received net proceeds of $240 million from 7.1 million shares of its common stock through the existing forward sale agreement.
•During the third quarter 2015, NorthStar Realty issued 0.2 million shares of common stock in connection with the exchange of $3 million principal amount of 5.375% notes.

More...


http://seekingalpha.com/pr/15283226-northstar-realty-finance-announces-third-quarter-2015-results

Wolves.. The original man's Best Friend!

In search of the fabricated IR.."nope, not here either!"