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Newcastle slips after earnings beat

  • Newcastle Investment (NCT -2.1%) is lower post-earnings, maybe as investors mull the company being one of the country's 5 largest owners and operators of golf courses in what wasn't a great winter and isn't yet shaping up to be a very good spring.
  • Newcastle's hope for a 22% yield from these properties is more "aspirational" at this time, admits management on the earnings call. As with senior housing, the Newcastle team is excited by the opportunity offered by a highly fragmented, "mom & pop" ownership-dominated industry that looks like it may be beginning to recover from a period of distress.
  • Previously: Newcastle Investment beats by $0.01
Comments (5)
  • crl1603
    , contributor
    Comments (147) | Send Message
     
    my concern is that analysts and investors may have no interest in being involved in something that seems to have an increasing emphasis on golf assets.
    2 May, 12:03 PM Reply Like
  • James_B
    , contributor
    Comments (113) | Send Message
     
    I've held NCT for almost three years. It has been great, but their lack of commitment to one industry is a little perplexing/frustrating. I have sold off NRZ and NEWM because I want the REIT that is dedicated to only senior living. That company does not exist yet. I hope the company spins off the senior housing unto itself and I will buy and hold probably for a long while.
    2 May, 03:04 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5368) | Send Message
     
    (NRZ) has grew their dividend 3 out of 4 quarters (0.07, 0.18, 0.08, 0.18). I'll be watching if they continue to grow their dividend. There is such a thing as dividend growth investing. It is pretty impressive.

     

    I hold on to (NEWM), which as far as I know owns newspapers, because obviously Warren Buffett sees value in newspapers.

     

    As for (NCT), I am expecting their next spinoff. I think (FIG) is the parent company of (NCT). And about golf, when is the next PGA?
    2 May, 05:26 PM Reply Like
  • Len Friedman
    , contributor
    Comments (48) | Send Message
     
    It is known that NCT is considering spinning their senior housing assets off into a REIT of its own. I've added some eight thousand shares recently (on top of my original five thousand) in the hope that this happens for it might unlock considerable value if only for the simplified identification process. I'd very much like to see this come about as it brings the decision to invest or not to something easy enough for anyone, regardless of investing orientation to grasp. There's a reason seniors get discounts in restaurants and other public venues---we have the money and tend to be creatures of habit when it comes to buying and spending. Also, I think Newcastle would find opportunity to develop a favorable branding image associated with senior communities if the company should elect to narrow/limit is current focus.

     

    NEWM needs time to more fully develop & complete the basis for its business model. Buffett sees value in newspapers but I don't think we necessarily understand why. And even if we did---that doesn't translate into concrete reasons for me to do as he does. I run my own ship for my own reasons based on my perceptions and deductions.

     

    Lastly, FIG is managing things remotely and I think that may explain part of why it is that NCT is considering spinning off the senior side. You're not going to find a lot of senior housing REITS w/o other types of transactional business going on. As a senior myself (73), I'm expecting that within a year or two we'll be hearing of NCT's introducing senior housing, boasting on-campus wellness centers with emergency care available and maybe even hospice capability, too. When seniors select a site for their closing chapters, they/we tend to think in terms of final home arrangements. This is why I see an intertwining of medical and hospice (final care facility) options as it would reduce some painful uncertainty in the minds and futures of those having to deal with aging.

     

    I'm very pleased with my stake in NCT and am trusting of their business style and vision.
    4 May, 07:28 PM Reply Like
  • James_B
    , contributor
    Comments (113) | Send Message
     
    Thank you for your post and perspective.
    4 May, 11:22 PM Reply Like
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