Newcastle Investment Corp.'s Planned Senior Housing Spin-Off Should Mean Gains For Shareholders.
David White • 13 Comments
David White • 13 Comments
Aug. 10, 2015, 1:17 PM
- Newcastle Investment (NYSE:NCT) is up 2.7% as LF Partners' Charles Frischer writes to its manager, Fortress Investment Group (FIG +1.1%), requesting that Newcastle launch a $100M share buyback.
- "I have been a long-term investor" in Newcastle and recently bought more shares feeling they were at a significant discount to NAV, he writes. Frischer owns 5.2% of NCT after the move.
- "In the aftermath of a great earnings report, NCT shares were down 6.5% for the week," he says. "At the current stock price of $4.60, the market clearly is not giving the company credit for the value of the golf assets."
- If Fortress won't implement the big buyback, Frischer is calling for an immediate sale or liquidation of the company that he thinks will bring more than $6.65/share.
- With today's move, shares are trading at $4.74.
- LF Partners 13-D filing
Nov. 7, 2014, 5:35 PM
Nov. 7, 2014, 9:47 AM
- Following the completion of its spinoff from Newcastle Investment (NYSE:NCT), New Senior (NYSE:SNR) is up 1.2% to $19.54 from its close last night (in when-issued trading).
- Newcastle is at $4.23 in early action, down $19.30 from its close last night, so NCT owners (who received one share of SNR for each share of NCT) - for the moment - are ahead on the session.
- Previously: Newcastle makes case for higher valuation amid spinoff
Oct. 23, 2014, 12:45 PM
Sep. 17, 2014, 4:38 PM
- Its stock ahead nearly 60% since being spun off of Newcastle Investment (NYSE:NCT) earlier this year, and on the hunt for acquisitions, New Media (NYSE:NEWM) will sell 6.5M shares in a secondary offering, with an underwriter greenshoe of another 975K shares.
- Assuming the exercise of the underwriter option, about 25% will be added to the float.
- The stock's lower by 4.5% AH.
Aug. 13, 2014, 10:57 AM
- Newcastle Investment (NCT -2.3%) sold 40M shares for gross proceeds of about $176M, suggesting a price of about $4.40 per share. The stock's last trade was for $4.38.
- The most recently reported GAAP book value per share was $2.08 as of June 30.
Aug. 12, 2014, 4:16 PM
- The underwriter greenshoe is for 6M shares (subject to the coming 1:3 reverse split). The proceeds will be used to add to Newcastle's senior housing holdings.
- NCT -4.2% AH
Jun. 16, 2014, 9:15 AM
Jun. 16, 2014, 8:55 AM
May 2, 2014, 10:52 AM
- 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
Feb. 28, 2014, 1:23 PM
- Newcastle Investment (NCT -0.2%) $0.08 core EPS missed estimates by a penny, but Chairman Wes Edens - speaking on the earnings call (transcript) - quickly reminds the company's $150M of un-invested capital during Q4 (combined with some accounting surrounding Gatehouse debt) cost Newcastle about $0.04.
- Is another spinoff on the way? Given Newcastle's continued high yield compared to the rest of the senior housing sector, spinning off senior housing "is now a very serious topic for us and our Board to consider."
- Separating senior housing, however, would mean it no longer had access to the cheap capital being thrown off by Newcastle's CDO business. Why give that up, asks Credit Suisse's Doug Harter. "I think that given the dimensions of the business that we have now constructed on the senior side, I do think it’s viable as a standalone enterprise," responds Eden. "I think that giving it its own standalone vitality [will] result in a significant amount of shareholder appreciation and that’s why we are considering it in the first place."
Feb. 14, 2014, 12:45 PM
Feb. 14, 2014, 9:13 AM
Feb. 10, 2014, 3:33 PM
- In addition to a bit of excitement around New Residential this afternoon, another Newcastle Investment (NCT +1.2%) spinoff, New Media (NEWM) began when-issued trading last week at $11 per share and is up to $14.05. The actual spinoff date is February 13.
- To review: Newcastle owners get 0.07219 shares of New Media for each share of Newcastle they own.
- New Media S-1
Feb. 10, 2014, 3:18 PM
Nov. 19, 2013, 9:21 AM
- Pricing its 50.5M share secondary for gross proceeds of about $264.9M, Newcastle (NCT) investment announces the purchase of a 52-property senior housing portfolio from Holiday Acquisition for roughly $1.01B. Newcastle will put up about $300M and fund the rest through a non-recourse mortgage.
- The portfolio has 5,885 units located across 24 states. It's 100% private pay with occupancy rate of 91%. Leases with affiliates of Holiday will have first-year rent equal to 6.5% of the purchase price.
- Upon closing of this and other committed deals, Newcastle will have invested about $600M of equity in senior housing assets.
- Press release - purchase
- Shares -0.9% premarket after falling nearly 5% upon the offering announcement last night.
Newcastle Investment Corp., a real estate investment trust, invests in commercial real estate companies located in the US. It primarily invests in real estate & other debt and senior housing areas.
Industry: REIT - Diversified
Country: United States
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