Northstar Realty Finance Corp. (NYSE:NRF): Strong Case at JMP Conference


Dallas, Texas 10/09/2013 (Financialstrend) – On October 1, Northstar Realty Finance Corp. (NYSE:NRF) management made a strong case for itself on the sidelines of JMP Conference. The highlight of the presentation was the close to $30 million fees which was generated in the trailing 12 months to be shared with the shareholders. In other REIT’s this fees would have been divided among the management which manages the investment portfolio. In the words of the COO Albert Tylis described the scenario thus” Put any rational multiple on that; you’re looking at hundreds and millions of dollars that’s now captured directly for the benefit of NRF shareholders.”

The stock has managed to provide a forward dividend yield of 8.5% over the past 12 months. Most of the cash flow that is allowing the company to pump the returns to the investors is being generated by the ownership of real estate, while 14% is generated from asset management fees. This internally managed firm has a market cap of $1.68 billion with 198 million shares outstanding.

As of close of business on October 8, the shares are trading at $9.33. This translates to a 6.6% dip from the 52 week high valuation. It also means a 78% increase over the 52 week low pricing. This appreciation means that the stock has gained by close to 6.5% and by more than 56% over the past 12 months. Its sales on a quarter on quarter basis have jumped up by 46% with earnings per share of 90.3%. The stock has lost close to 0.86% which is in line with the financials index which is down 0.71%.

Readers should note that Northstar Realty has managed to sustain its dividend payout in spite of Fed’s decision on a “no taper for now” decision. This was due to the fact that its assets are based on credit and is less exposed to rate hikes or dips.

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