Business Wire (Nov 19, 2013)
Newcastle Announces Agreement to Acquire $1 Billion of Senior Housing Assets from Holiday RetirementBusiness Wire (Nov 18, 2013)
Business Wire (Nov 18, 2013)
Business Wire (Nov 1, 2013)
Business Wire (Oct 22, 2013)
Business Wire (Sep 27, 2013)
Newcastle Declares Common Stock Dividend of $0.10 per Share for the Third Quarter and Preferred Stock DividendsBusiness Wire (Sep 20, 2013)
Newcastle Completes Acquisition of Dow Jones Local Media Group & Plans to Restructure GateHouse DebtBusiness Wire (Sep 4, 2013)
Business Wire (Aug 7, 2013)
Business Wire (Jul 17, 2013)
Business Wire (Jun 17, 2013)
Business Wire (Jun 12, 2013)
at MarketWatch.com (Jun 11, 2013)
at CNBC.com (Jun 11, 2013)
Business Wire (Jun 11, 2013)
Business Wire (Jun 3, 2013)
Newcastle Declares Common Stock Dividend of $0.17 per Share for the Second Quarter and Preferred Stock DividendsBusiness Wire (Jun 3, 2013)
at MarketWatch.com (Jun 11, 2013)
at CNBC.com (Jun 11, 2013)
at MarketWatch.com (May 21, 2013)
at MarketWatch.com (Apr 24, 2013)
at CNBC.com (Mar 1, 2013)
Newcastle Investment Corp. (“Newcastle”) is a real estate related investment and finance company. Newcastle invests in, and actively manages a portfolio of, real estate securities, loans and other real estate related assets. Our objective is to maximize the difference between the yield on our... More
Tuesday, Nov 199:21 AMNewcastle purchases senior portfolio for $1.01B
Tuesday, Nov 199:21 AM| 1 Comment
- 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 - secondary
- Press release - purchase
- Shares -0.9% premarket after falling nearly 5% upon the offering announcement last night.
Monday, Nov 184:22 PMNewcastle sheds 4.6% AH on secondary offering
Monday, Nov 184:22 PM| 1 Comment
- Newcastle Investment (NCT) announces a 50M share secondary offering with the underwriters granted a greenshoe option of 7.5M shares. If the option is taken up, the issuance will add about 20% to the float.
- A portion of the proceeds will be used to fund the purchase of a portfolio of senior housing properties from Holiday Retirement.
- NCT -4.6% AH to $5.16.
- Press release.
Friday, Nov 12:30 PMNewcastle management excited about investment pipeline
Friday, Nov 12:30 PM| 1 Comment
- Disappointment over the amount of money put to work in senior housing in Q3 - the $163M Invested in Q3 is actually less than that of $167M in Q2 thanks to some redemptions - is likely to be reversed in Q4 thanks to a strong pipeline, says Newcastle (NCT -3.1%) Chairman Wes Edens in the earnings call (transcript). He expects it will jump to $255M based on what's already committed to close.
- New Media remains in bankruptcy and Edens expects the restructuring to be over soon and the new equity to be spun out to Newcastle on about Nov. 12, at which point a public spin off will move ahead, and hopefully take place near year end.
- Management reminds more than once of the $120M in cash on hand - had it been invested and had the GateHouse debt been converted to equity - both of which are happening now - earnings would have been $0.04 higher.
- Q3 results.
Friday, Nov 17:07 AMStill putting cash to work, Newcastle income drops
Friday, Nov 17:07 AM| Comment!
- Core earnings of $23.9M are off 17.6% from a year ago. Core EPS of $0.08 is off 27%.
- Had $120M of average uninvested cash been invested the entire quarter and if the Gatehouse deal had been moved up, earnings would have been another $11M or $0.04 per share higher.
- Senior Housing invested $101M in equity to acquire $301M of senior housing assets, with Newcastle targeting a 3-year return of 20%.
- CC at 8:30 ET.
- Q3 results, press release.
- NCT no trades premarket.
Friday, Nov 16:32 AM
Friday, Nov 112:05 AM
Thursday, Oct 315:30 PM
Tuesday, Oct 812:09 PMCredit Suisse constructive on mREITs
Tuesday, Oct 812:09 PM| 4 Comments
- Total economic return for mREITs (REM -0.9%) should be positive over the next year, says Credit Suisse, with hybrid/non-agency names faring better than their agency MBS cousins thanks to an expected continued rise in long-term interest rates.
- The team continues to favor two names with less interest rate risk - Two Harbors (TWO -0.8%) and Ellington Financial (EFC -0.4%), as well as those lumped in with mREITs but not really so - Newcastle Investment (NCT -1%), New Residential (NRZ -0.6%), and PennyMac Mortgage (PMT -1.4%).
- Management willingness to buy back shares trading below book value coupled with an ability to protect book value will be the "differentiator of valuation within the group," says Credit Suisse, noting the aggressive repurchases of Gary Kain's AGNC and MTGE.
- Related ETFs: MORT, MORL.
Friday, Sep 272:52 PMNewcastle moves forward with spinoff as GateHouse files Chpt. 11
Friday, Sep 272:52 PM| Comment!
- GateHouse Media (GHSE.PK +33.3%) files for Chapter 11 bankruptcy protection; part of a plan in which its lenders - led by Fortress (FIG +0.1%) affiliate Newcastle Investment (NCT +1.2%) - will exchange their claims for new common stock (Newcastle owns 52% of the debt and will get 52% of the new shares).
- As part of the plan, Newcastle will turn over to GateHouse recently-acquired Dow Jones Local Media Group, and plans to spin off the unit into a new public company called New Media Investment Group.
- Existing GateHouse owners would see their stakes wiped out, but will receive warrants to buy 5% of New Media's stock.
- SEC Form 10.
Tuesday, Sep 247:13 AMNew Residential rates a Buy at FBR
Tuesday, Sep 247:13 AM| 1 Comment
- New Residential (NRZ) is initiated at Outperform with $7.50 price target by FBR Capital.
- The company last week surprised many (in a good way) by declaring a quarterly dividend of $0.175 per share (10.95% yield) following its first full quarter of operations after the spinoff from Newcastle Investment (NCT).
Friday, Sep 208:21 AMNewcastle declares $0.10 dividend in first Q since NRZ spinoff
Friday, Sep 208:21 AM| 4 Comments
- Newcastle Investment (NCT) declares a quarterly dividend of $0.10 per share in the first full quarter of operations since the New Residential (NRZ) spinoff.
- This quarter's $0.10 is consistent with the $0.17 payout in place before the divestment.
- Annualized, it's a 6.9% yield based on last night's close of $5.80.
- The cut looks like it was enough to scare someone as shares slip 1.7% premarket to $5.70.
- Press release.
Wednesday, Sep 189:16 AMToo high of a dividend yield for New Residential
Wednesday, Sep 189:16 AM| 4 Comments
- Newcastle Investment (NCT) spinoff New Residential (NRZ) soars 6.9% premarket after declaring its first full quarterly dividend of $0.175 per share for a 10.95% yield (based on last night's close).
- Nearly 11% is a whopper of a yield considering peers like Redwood (RWT), HLSS, and Pennymac (PMT) are in the 5-10% range.
Wednesday, Sep 41:51 PMNewcastle turns higher as deal details are presented
Wednesday, Sep 41:51 PM| 1 Comment
- What's Newcastle (NCT +3.5%) doing buying a newspaper company? The stock reverses an early dive on news of the Local Media acquisition and turns higher following the release of the investor presentation.
- Newcastle notes the purchase was made for 3.4x of 2013 EBITDA with an expected levered yield of 25% in year 1 and 30% in year 2. The company also comes with $33M of appraised real estate value - backing that out means the purchase was for 2.5x 2013 EBITDA, with large urban peers trading at 4.0x-5.5x.
- NCT is considering the spin off Local Media and GateHouse Media into a new public company, "New Media" (as part of the deal, Newcastle converted its debt holding in GateHouse into a 59% equity stake). New Media intends to pay out a substantial portion of its free-cash flow in the form of a dividend with expected yield of about 20%.
- "With industry distress comes buying opportunity ... once trading at 10x EBITDA, we believe we can buy local newspapers and directories at (fractions of that valuation)."
- The conference call remains set for 2:30 ET.
Wednesday, Sep 410:35 AMNewcastle acquires Local Media Group; restructures GateHouse debt
Wednesday, Sep 410:35 AM| Comment!
- Newcastle Investment (NCT -2.2%) acquires Dow Jones Local Media Group from News Corp. (NWS, NWSA) for $87M.
- Local Media operates 33 local publications in 7 states. The business will now be managed by GateHouse Media (GHSE.PK), an affiliate of Fortress Investment (FIG), which is Newcastle's manager.
- Newcastle owns about 52% of GateHouse's $1.2B in debt and it and other creditors have agreed on a prepackaged Chapter 11 filing in which Newcastle expects to convert its debt holdings into equity of GateHouse.
- Presentation and conference call at 2:30 ET.
- Press release.
Wednesday, Aug 2112:05 PMCredit Suisse picks over beaten-up mREIT sector
Wednesday, Aug 2112:05 PM| 8 Comments
- The big picture view says better entry points are coming soon - perhaps after the taper actually begins (September?) and a new Fed chief is announced (October?).
- The team's favorite names are those associated with the sector that really aren't mREITs, but instead have more-specialized business models: Newcastle Investment (NCT +0.5%), its spinoff New Residential (NRZ +1.8%), and PennyMac Mortgage Investment Trust (PMT -0.1%).
- In the security-focused names, top picks are Two Harbors (TWO -0.8%) and Ellington Financial (EFC +0.1%), and American Capital Mortgage (MTGE).
- Thus far in Q3, CS sees sector book values off 4% amid a 40 bp increase in rates. The good news is credit spreads haven't continued to widen, but a coming taper announcement could blow them out again.
- Sector ETFs: REM, MORT, MORL.
- Earlier: Two Harbors gets an upgrade.
Monday, Aug 193:09 PMRate worries again rout income favorites
Monday, Aug 193:09 PM| 85 Comments
- A solid selloff in mortgage REITs (REM -3.7%) turns into a rout as the 10-year Treasury yield takes out another 2-year high at 2.89%. Looking at the short end, September 2015 Eurodollar futures at 98.65 are pricing in more than 100 bps of rate hikes between now and then.
- American Capital (AGNC -5.8%), Armour (ARR -7.5%), Apollo (AMTG -4.9%), Ellington (EARN -4.8%), Anworth (ANH -5.5%), Western Asset (WMC -5.7%), Arlington Asset (AI -4.7%), Dynex (DX -5.1%), Newcastle (NCT -2.3%).
- Mentioned before as starting to look very cheap, Annaly (NLY -4.9%) losses deepen with the stock at $10.72 - its lowest price since 2001 (the dividend fell to $0.25 at the end of 2000 before rising to $0.68 by the start of 2002).
- Tumbling income funds include (KFN -2%), and (PTY -2.1%).
- Among equity REITs, Realty Income (O -1.8%), Medical Properties (MPW -2.4%), and Simon Property Group (SPG -1%) lead down, but HCP (HCP +0.6%) remains green.