Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

A Sustainable And Growing 8% Yield Is Driving NorthStar Realty Finance's Outperformance

There is a fair amount of market skepticism when it comes to mREITs. Many have paid dividends in excess of the sustainable magnitude, which temporarily props up the stock price and erodes book value, leading to the eventual crash. Northstar Realty Finance (NYSE:NRF), however, offers a sustainable and growing 7.99% yield. In this article we will analyze Northstar's fundamentals and demonstrate its cash flows to be sufficient to sustain the dividend. We will then examine its recent and planned activity to show tremendous growth potential. The buy thesis will then be completed with valuation analysis and addressing the counterarguments.

Dividend sustainability

In a previous article, in which we examined the dividend history of the legacy commercial mREITs,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details