The combined valuation of Newcastle Investment (NCT) and spinoff New Residential (NRZ) could...


The combined valuation of Newcastle Investment (NCT) and spinoff New Residential (NRZ) could exceed $15/share, according to the investor presentation which sees the two generating $1.11 in dividends. New Residential's peers sport an average dividend yield of 7.2% and Newcastle's, 7.7%. However, healthcare REIT yields are closer to 4%, and Newcastle should approach that figure as it builds its senior housing exposure. (earlier)

Comments (5)
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    And just think.. We grabbed this just a short while back in April under 10.. We sold by STOP in the mid 11s and waited ! We were lucky :>)
    27 Apr 2013, 09:47 AM Reply Like
  • shourey
    , contributor
    Comments (143) | Send Message
     
    I own NCT and have owned it since it was like 5$. But some of these recent pieces on NCT sound like motivated pumping of the stock.
    27 Apr 2013, 06:11 PM Reply Like
  • slegermark
    , contributor
    Comments (96) | Send Message
     
    I agree, there is no substance to the blurb other than wishful valuation.
    28 Apr 2013, 10:15 AM Reply Like
  • Dividend Investor 101
    , contributor
    Comments (330) | Send Message
     
    Except for the substance comes directly from NCT and NRZ's presentation on their website stating the possible future dividend and what the stock could possibly trade for given that it's yield will probably tighten ;-)

     

    If NCT were to completely switch over to a Senior Housing REIT, the yield would be much lower (3-5%) if it were in line with other senior housing REITS.

     

    15 dollars a share for both companies is not unrealistic by years end or by next year. I don't think it will be hitting 15 a share in the next month though.
    28 Apr 2013, 02:22 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6946) | Send Message
     
    $15 by year end is 50% up from $10. Not bad for a year. I was hoping 100%, like last year, but guess that is wishful thinking.
    29 Apr 2013, 12:19 AM Reply Like
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