Newcastle management excited about investment pipeline

|About: Newcastle Investment Corp. (NCT)|By:, SA News Editor

Disappointment over the amount of money put to work in senior housing in Q3 - the $163M Invested in Q3 is actually less than that of $167M in Q2 thanks to some redemptions - is likely to be reversed in Q4 thanks to a strong pipeline, says Newcastle (NCT -3.1%) Chairman Wes Edens in the earnings call (transcript). He expects it will jump to $255M based on what's already committed to close.

New Media remains in bankruptcy and Edens expects the restructuring to be over soon and the new equity to be spun out to Newcastle on about Nov. 12, at which point a public spin off will move ahead, and hopefully take place near year end.

Management reminds more than once of the $120M in cash on hand - had it been invested and had the GateHouse debt been converted to equity - both of which are happening now - earnings would have been $0.04 higher.

Q3 results.