Colony Financial: Too Volatile For A 6.5% Yield
Stone Fox Capital
Stone Fox Capital
Colony Financial: Turning Distress Into Income
Tue, Jun. 7, 3:01 PM
- The combination of NorthStar Realty Finance (NYSE:NRF), NorthStar Asset Management (NYSE:NSAM), and Colony Capital (NYSE:CLNY) is likely to result in an entity with a significantly higher debt-to-adjusted EBITDA ratio than what NSAM currently sports (less than 1.5x), says S&P.
- The current BBB- rating could be cut by one or more notches. For now, S&P will keep things on watch, and resolve the rating once the deal is completed (expected Q1 2017).
Tue, Jun. 7, 7:58 AM
- "We strongly believe that the announced transaction price and consideration for NorthStar Asset Management (NYSE:NSAM) does not fully reflect its intrinsic value today,” says Land & Buildings' Jonathan Litt, noting NSAM owners will receive relatively small accretion to their shares, while senior executives will reap $180M thanks to a change-of-control payment (even though they get to keep their jobs!).
- Colony Capital (NYSE:CLNY), says Litt, is likely to receive 30% or more earnings accretion per share, highlighting the value of the merger for CLNY owners, but not so much for NSAM holders.
- Litt sees a valuation closer to $20 per share as appropriate for NSAM (last night's close was $11.81). He's demanding a meeting with the special committee members of the board.
Fri, Jun. 3, 1:00 PM
Fri, Jun. 3, 7:23 AM
- Upon completion of the all-stock deal, NorthStar Asset Management (NYSE:NSAM) shareholders will own 32.25% of the new Colony NorthStar, Colony Capital (NYSE:CLNY) shareholders will own 33.25%, and NorthStar Realty Finance (NYSE:NRF) shareholders 33.9%.
- NSAM owners, in addition to the regular quarterly dividend, will receive a special cash dividend of $128M.
- Colony's Thomas Barrack will be Executive Chairman of the board, NorthStar's David Hamamoto will be Executive Vice Chairman, and Colony's Richard Saltzman will be CEO.
- The companies expect about $115M in annual cost savings, $80M in cash and $35M in stock-based compensation.
- Terms: NSAM shareholders will own one share of the new company for each share of NSAM they hold; Colony shareholders will receive 1.4663 shares of the new company stock for each share of CLNY they hold; NRF shareholders will receive 1.0996 shares of the new company stock for each share of NRF they hold.
- Closing is expected in Q1 of next year.
- A conference call is set for 10 ET.
- Source: Press Release
Mon, May 9, 9:41 AM
- Q1 core FFO of $56M or $0.41 per share vs. $53.6M and $0.49 one year ago.
- Company is an owner of 15.1M shares, or 14% of Starwood Homes (NYSE:SFR) after completing the merger of Colony American Homes and Starwood Waypoint. The new company has achieved 85% of the estimated $50M in annualized synergies.
- Q1 results were shy of estimates, but does not yet reflect anticipated portfolio gains activity or investment management benefits from new funds expected to be in place by year-end.
- The conference call is at 11 ET,
- Previously: Colony Financial misses by $0.09, beats on revenue (May 9)
- CLNY flat premarket
Mon, May 9, 8:40 AM
Mon, May 9, 8:33 AM
Sun, May 8, 5:30 PM
Fri, May 6, 4:19 PM
- After a week of sleepy trading, NorthStar Asset Management (NYSE:NSAM) has leapt 16% after hours on news that Colony Capital (NYSE:CLNY) may be close to a deal to acquire it.
- That deal may come by way of partnering with NorthStar Realty Finance (NYSE:NRF), according to chatter.
- NorthStar Asset Management has been under activist pressure this year and formed a special committee in March to examine alternatives including a recombination with NorthStar Realty Finance.
- NSAM was spun off from NRF in 2013.
- Now read NorthStar Realty Finance - NorthStar Realty Europe Spin: Buy, Sell Or Hold After Q4 Earnings? »
Wed, Mar. 2, 9:51 AM
Fri, Feb. 26, 6:18 AM
Fri, Feb. 26, 6:02 AM
Thu, Feb. 18, 12:15 PM
- The downside of being a hedge fund hotel comes when the hedge funds face redemptions and need to sell. That just might be behind major slumps in a number of REITs, write Heather Perlberg and Katia Porzecanski at Bloomberg.
- NorthStar Realty Finance (NRF -4.6%) has made regular appearances on lists of top holdings of hedge funds and it's one of the worst REIT performers this year with a decline of 39%. Others include iStar Financial (STAR -1.1%), Colony Capital (CLNY -0.3%), and New Residential (NRZ -2.3%).
- "The selloff is quick," says JMP Securities' Trevor Cranston. "So it takes some time for a transition in ownership to happen and for the valuation to stabilize.”
- Previously one of iStar's largest owners, Gem Realty Capital unloaded its entire stake between April and December. Hoping to return most client money by mid-January, SAB Capital sold its entire Colony and New Residential stakes.
Wed, Jan. 6, 7:46 AM
- Alongside the merger is the internalization of Starwood Waypoint's (NYSE:SWAY) manager. The name of the company is now Colony Starwood Homes, and the ticker has been changed from SWAY to SFR.
- Combined, the two have a NAV of about $7.7B and more than 30K homes concentrated in their top 10 markets.
- Formerly president and COO of Colony American Homes, Fred Tuomi is CEO of the merged company, with Colony CFO Arik Prawer the CFO. Formerly COO of Statwood Waypoint, Charles Young is COO of the merged company.
- Barry Sternlicht and Thomas Barrack (NYSE:CLNY) are co-chairmen of the board.
- The company expects to realized synergies of about $50M annually, and expects to achieve 70% of that by the end of Q1 and 100% by the end of next year.
Nov. 5, 2015, 8:27 AM
- Colony Financial (NYSE:CLNY) declares $0.40/share quarterly dividend, 5.3% increase from prior dividend of $0.38.
- Forward yield 7.55%
- Payable Jan. 15; for shareholders of record Dec. 31; ex-div Dec. 29.
Nov. 5, 2015, 8:03 AM
- Colony Financial (NYSE:CLNY): Q3 FFO of $0.54 beats by $0.03.
- Revenue of $263M (+240.3% Y/Y) beats by $33.03M.
Colony Capital, Inc. operates as a real estate investment and finance company. It acquires, originates and manages a portfolio of real estate-related debt instruments. It focuses on acquiring, originating and managing commercial mortgage loans, which may be performing, sub-performing or... More
Industry: REIT - Diversified
Country: United States
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