Seeking Alpha

Deutsche a fan of NorthStar spinoff plan

  • "We believe the separation of the asset management business will create value for shareholders, as the management company will trade at higher multiples than the traditional mortgage REIT and real estate business," says analyst Stephen Laws, reiterating his Buy rating on NorthStar Realty (NRF +16.2%) after the announced spinoff plan for the asset management business.
  • His $12.50 price target is a "conservative valuation" given it values the asset management business at 12x 2014 cash available for distribution - the low end of a likely range of 12-18x. He also believes CAD is likely to show continued expansion thanks to growth in the non-listed REIT business as well as potential new income streams from managing additional funds.
  • Earlier coverage
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Comments (1)
  • surfgeezer
    , contributor
    Comments (7011) | Send Message
     
    I am not. Suggest people read past earnings calls, where NRF touted the significant advantage in being internally managed. They were disappointed with market valuations, so apparently said screw the REIT Investors with more management layers and costs.
    11 Dec 2013, 10:53 PM Reply Like
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