David White
Long/short equity, value, REITs, macro

Newcastle Investment Corp.'s Planned Senior Housing Spin-Off Should Mean Gains For Shareholders.

Newcastle Investment Corp. (NCT) is an REIT. It invests primarily in senior housing assets, real estate and other debt, and in other opportunistic investments such as its Golf portfolio. It tries to make attractive risk-adjusted returns that will help it deliver strong dividends to shareholders. The company is externally managed by an affiliate of Fortress Investment Group LLC -- a diverse global investment manager with $62.5B in assets under management as of March 31, 2014.

NCT has made investors a lot of money by doing spin-offs of parts of its business via IPO's. The graphic below shows NCT's total return to shareholders via this method since December 13, 2011.

The two recent spin-offs have been New Residential Investment Corp. (NYSE:...

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