NEW YORK CITY—As activist investor Jonathan Litt had recommended last month, NorthStar Realty Finance is weighing the possibility of recombining with NorthStar Asset Management Group, its external manager. NRF is also in the process of selling portions or all of its healthcare, manufactured housing, multifamily and net lease real estate.
The company has formed a special committee comprised of independent directors to explore a possible recombination with NSAM, nearly two years after spinning it off. NRF has hired UBS as an advisor. For its part, NSAM in January said it was exploring strategic alternatives and had retained Goldman Sachs to advise it.
In January, Land and Buildings Investment Management's Litt wrote that shares of both NRF and NSAM were off more than 50% from their peaks since the July 2014 split.” “Externally managed REITs, such as NRF, have historically struggled to gain institutional investor support given the misaligned incentives between the manager and the REIT,” wrote Litt, Land and Buildings' founder and CIO, in a letter to NSAM chairman David Hamomoto. Accordingly, he continued, “An NSAM/NRF recombination appears to us to be the right thing to do and the right time to do it for all NRF and NSAM shareholders.”
NRF on Thursday charted its progress in monetizing its real estate assets, while not identifying any buyers. These include the sale of commercial real estate loans for net proceeds of approximately $178 million, the sale of the REIT's interest in one of its portfolios of real estate private equity funds for net proceeds of $184 million and the sale of NRF's interest in a portfolio of seniors housing properties.
The seniors portfolio sale is valued at $900 million including the assumption of $648 million in debt. In all, the company is in the process of $2 billion worth of monetizations and expects to realize $930 million in net proceeds.
CEO Jonathan Langer says the company is “extremely pleased with the results thus far and remain focused on selling additional assets at levels well above the valuations inherent in our trading price. We have historically been very opportunistic in driving shareholder value and we intend to continue to do so by taking advantage of current market conditions.”
The company has formed a special committee comprised of independent directors to explore a possible recombination with NSAM, nearly two years after spinning it off. NRF has hired UBS as an advisor. For its part, NSAM in January said it was exploring strategic alternatives and had retained
In January, Land and Buildings Investment Management's Litt wrote that shares of both NRF and NSAM were off more than 50% from their peaks since the July 2014 split.” “Externally managed REITs, such as NRF, have historically struggled to gain institutional investor support given the misaligned incentives between the manager and the REIT,” wrote Litt, Land and Buildings' founder and CIO, in a letter to NSAM chairman David Hamomoto. Accordingly, he continued, “An NSAM/NRF recombination appears to us to be the right thing to do and the right time to do it for all NRF and NSAM shareholders.”
NRF on Thursday charted its progress in monetizing its real estate assets, while not identifying any buyers. These include the sale of commercial real estate loans for net proceeds of approximately $178 million, the sale of the REIT's interest in one of its portfolios of real estate private equity funds for net proceeds of $184 million and the sale of NRF's interest in a portfolio of seniors housing properties.
The seniors portfolio sale is valued at $900 million including the assumption of $648 million in debt. In all, the company is in the process of $2 billion worth of monetizations and expects to realize $930 million in net proceeds.
CEO Jonathan Langer says the company is “extremely pleased with the results thus far and remain focused on selling additional assets at levels well above the valuations inherent in our trading price. We have historically been very opportunistic in driving shareholder value and we intend to continue to do so by taking advantage of current market conditions.”
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