The Reason Behind The Recent Spurt In The Northstar Realty Finance Corp. (NYSE:NRF) Shares


Dallas, Texas 12/18/2013 (FINANCIALSTRENDS) – The recent spurt in the share price of Northstar Realty Finance Corp. (NYSE:NRF) has surprised everybody. The total jump that happened in the share price was around 16% and the main reason behind this spurt is seen as the outcome of this decision which states that the company is planning to spin off its asset management business into a totally separate publically traded company. Now many industry analysts are saying that this is the best time to enter into this stock as more up move is expected in this stock.

All these news and announcements have resulted into heavy trade volumes and speculations that the share might further increase by 40% in the coming days. The Northstar Asset Management is expected to list on the NYSE in the second quarter of 2014. The Northstar Asset Management is planning to enter into a 20- year contract to manage the Northstar Realty Finance and it will also manage the real estate division and trading platform. Company will charge a management fee of $90 million per year and certain incentives also.

Overview of the company

Northstar Realty Finance Corp. (NYSE:NRF) is a real estate as well as credit underwriting company. The company also holds expertise in the field of capital markets and effectively manages different source investments as well as credit risks across all the segments. The company is also a successful sponsor of the public and non traded REITs that includes North Star real estate Income II.

The company’s management team is highly efficient and has got a very good experience in the field of real estate multiple cycles and different changing market conditions. The company is also planning to finance the upcoming mega real estate projects and with market situation and condition improving it seems that the company is poised for major growth in the coming months.