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How will Newcastle's (NCT) spinoff of New Residential (ticker: NRZ) unlock value (presentation)?...

How will Newcastle's (NCT) spinoff of New Residential (ticker: NRZ) unlock value (presentation)? Newcastle's stock yielded an average 12% in 2012, while peers with comparable portfolios to NRZ yield about 7%. Those with portfolios close to the new Newcastle also have far lower yields. It's yahtzee for NCT and NRZ owners should these yields converge. The spinoff is expected by the end of Q1.
Comments (4)
  • Well, many spin-offs turn profitable to shareholders. Theory is that value can be better understood as separate concentrated entities.
    13 Feb 2013, 01:03 PM Reply Like
  • Where does the article get a yield 'average' of 12 % for 2012? On yesterday's close , the $.84 dividends was 7.72% Who writes this stuff?
    14 Feb 2013, 02:59 PM Reply Like
  • Yes, average.

     

    Shares were at about $5.50 at start of year w/$0.20 dividend, a 14.5% yield. They were $6.50 mid-year, 12.3% yield. They were $8.46 at year's end w/$0.22 dividend, a 10.4% yield.

     

    I'd say the company saying it had an average 12% yield in 2012 is right on target.
    14 Feb 2013, 04:50 PM Reply Like
  • i am an investor in reits

     

    when nct spins off nrz will they give 1 share for every share of nct
    16 Mar 2013, 06:10 AM Reply Like
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