Newcastle Will Spin Off Seniors Business into REIT

NEW YORK CITY—Newcastle Investment Corp. said Monday it had filed a registration statement to spin off its senior housing business into a REIT that will trade under the name New Senior Investment Group. The move comes about six months after the New York City-based investment firm, one of the largest publicly traded players in the space, acquired a 51-property portfolio from an affiliate of Holiday Retirement for $1.04 billion.

“The spin-off of New Senior from Newcastle will be a key step towards optimizing the future growth of each standalone company,” says Newcastle CEO Kenneth Riis. “As two separately traded public companies, both Newcastle and New Senior will be better positioned to capitalize on respective market opportunities and further enhance shareholder value creation.”