Northstar Finance Corp (NRF)

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NorthStar Realty Announces Closing of the $4 billion Acquisition of Griffin-American Healthcare REIT II

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NEW YORK, Dec. 3, 2014 /PRNewswire/ -- NorthStar Realty Finance Corp. (NYSE: NRF) ("NorthStar Realty") today announced that it has completed the acquisition of Griffin-American Healthcare REIT II, Inc. ("Griffin-American") for approximately $4 billion in a combination of common stock and cash. The completion of this acquisition brings NorthStar Realty's owned real estate to approximately 80% of total assets, including a $5.8 billion healthcare portfolio diversified by geography, asset class, tenant/operator and operating model, with a weighted average lease term of 8.5 years.

NorthStar Realty's Chairman and Chief Executive Officer, David Hamamoto, commented, "We are very pleased to have completed the acquisition of this highly desirable healthcare real estate portfolio. We are well positioned to realize substantial multiple expansion and enthusiastic about our prospects of capitalizing on value creation opportunities."

Jay Flaherty, who oversees NorthStar Realty's healthcare real estate business, commented, "The completion of this acquisition creates a best-in-class healthcare real estate portfolio with a high quality mix of diversified assets and stable, long-term cash flows. Since we announced our agreement to acquire this portfolio, we have continued to see meaningful cap rate compression in the healthcare real estate sector, particularly for quality assets such as these."

About NorthStar Realty Finance Corp.

NorthStar Realty Finance Corp. is a diversified commercial real estate company that is organized as a REIT. NorthStar Realty is managed by an affiliate of NorthStar Asset Management Group Inc. (NYSE: NSAM), a global asset management firm. For more information about NorthStar Realty Finance Corp., please visit www.nrfc.com.

Forward Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "will," "expect" or other similar words or expressions. Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Such statements include, but are not limited to, the performance of the approximately $4 billion acquired healthcare portfolio and NorthStar Realty's overall $5.8 billion healthcare portfolio generally and NorthStar Realty's ability to realize substantial multiple expansion and capitalize on value creation opportunities on its healthcare portfolio. Additional factors that could cause actual results to differ materially from those in the forward-looking statements are specified in NorthStar Realty's Annual Report on Form 10-K for the year ended December 31, 2013, NorthStar Realty's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 and its other filings with the Securities and Exchange Commission.

Any forward-looking statements contained herein speak only as of the date of this press release. NorthStar Realty expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.


SOURCE NorthStar Realty Finance Corp.


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www.nrfc.com

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