Drive Shack Inc (DSHK)

[Enterprising Investor]

Newcastle Announces Fourth Quarter and Full Year 2015 Results (3/08/16)

NEW YORK--(BUSINESS WIRE)--Newcastle Investment Corp. (NYSE:NCT; “Newcastle” or the “Company”) today reported the following information for the quarter and full year ended December 31, 2015.

FOURTH QUARTER FINANCIAL HIGHLIGHTS

• Core Earnings of $9 million, or $0.13 per basic share

• Adjusted Funds from Operations (“AFFO”) of $5 million, or $0.08 per basic share

• GAAP Loss of $5 million, or $0.08 per basic share ? Depreciation and amortization of $10 million, or $0.15 per basic share*

FULL YEAR 2015 FINANCIAL HIGHLIGHTS

• Core Earnings of $38 million, or $0.57 per basic share

• AFFO of $56 million, or $0.84 per basic share

• GAAP Income of $16 million, or $0.24 per basic share ? Depreciation and amortization of $39 million, or $0.59 per basic share*

FULL YEAR 2015 HIGHLIGHTS

• Golf Business – Owned, leased and managed 86 golf properties across 13 states, over 75% of which were located in the top 20 Metropolitan Statistical Areas (MSAs). ? American Golf Performance

- On a same store basis, the golf business ended the year with 14,729 total private club members, an increase of approximately 300 members, or 2%, over prior year. On a same store basis, public golf rounds played were 3.3 million, an increase of approximately 140,000, or 4%, over prior year.

-- American Golf Capitalization - On August 31, 2015, the Company completed the repurchase of $157 million of third party golf debt at a price of 90.0% of par, or $141 million. The $141 million purchase price was funded with $71 million of cash and $70 million of financing. The repurchase generated a $15 million gain on extinguishment of debt.

-- Golf Innovation – During the year, Newcastle and Taylor Made Golf Company, Inc. (“TaylorMade”) confirmed their intention to create an innovative global golf entertainment company, Drive Shack Holdings LLC (“Drive Shack”). Drive Shack intends to provide an active entertainment outlet that consists of technologically enhanced golf ranges with hitting suites as well as bars and restaurant areas.

• Real Estate Debt Portfolio – As of December 31, 2015, the Real Estate Debt Portfolio consisted of $367 million face amount of non-agency assets and $350 million** of agency securities. During the year, the Company: ? Generated $52 million of net investment income, or an annualized return of 16%

-- Received $102 million of principal recovery primarily from (i) the collapse of CDOs VIII & IX, (ii) real estate debt portfolio sales and pay downs and (iii) the financing of a commercial loan.

• Cash Dividends – In December, Newcastle declared a fourth quarter common cash dividend of $0.12 per share, or $8 million. Total common cash dividends in 2015 were $0.48 per share, or $32 million.

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ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of Newcastle’s website, www.newcastleinv.com. For consolidated investment portfolio information, please refer to the Company’s Quarterly Report on Form 10-Q and Annual Report on Form 10-K, which are available on the Company’s website, www.newcastleinv.com.

EARNINGS CONFERENCE CALL

Newcastle’s management will host a conference call on Tuesday, March 8, 2016 at 10:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of Newcastle’s website, www.newcastleinv.com.

All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-866-393-1506 (from within the U.S.) or 1-706-634-0623 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Newcastle Fourth Quarter and Full Year 2015 Earnings Call.”

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newcastleinv.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Tuesday, March 22, 2016 by dialing 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference access code “60033647.”

http://www.businesswire.com/news/home/20160308005684/en/Newcastle-Announces-Fourth-Quarter-Full-Year-2015