"What we are seeing gives us confidence that the company will likely meet our $800M capital raising forecast for 2014, though there could be room to exceed," says FBR's Daniel Altscher, going through the latest filing concerning NorthStar Realty Finances' (NRF +0.2%) spinoff of NorthStar Asset Management (NSAM).
He estimates NorthStar raised $150M in Q1, not only ahead of his $125M estimate, but a near-doubling in the pace of sales over the past few quarters. "This is an important data point because we have argued that the pace of sales for individual non-traded REIT products generally accelerates as the product 'ages' and as the sales force on the front line ramps up its efforts. Given the Q1 average sales pace of around $2.5 million per day (better than the $2.0 million per day previously), we are seeing this in full action."
His team maintains its Outperform rating and $18 price target.