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NorthStar Realty Finance Corp. Reports Operating Results (10-K/A)

February 28, 2011 | About:
10qk

10qk

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NorthStar Realty Finance Corp. (NRF) filed Amended Annual Report for the period ended 2010-12-31.

Northstar Realty Finance Corp. has a market cap of $469.14 million; its shares were traded at around $6.08 with and P/S ratio of 1.03. The dividend yield of Northstar Realty Finance Corp. stocks is 6.58%. Northstar Realty Finance Corp. had an annual average earning growth of 87.9% over the past 5 years.Mutual Fund and Other Gurus that owns NRF: Kenneth Fisher of Fisher Asset Management, LLC.

Highlight of Business Operations:

The aggregate market value of the registrant's voting and non-voting common equity held by non-affiliates of the registrant as of June 30, 2010, was $205,907,287. As of February 24, 2011, the registrant had issued and outstanding 77,175,882 shares of common stock, par value $0.01 per share.

We have built a franchise with a reputation for providing capital to high quality real estate investors who want a responsive and flexible balance sheet lender. Given that we are a lender who does not generally seek to sell or syndicate the full amount of the loans we originate, we are able to maintain flexibility in how we structure loans that meet the unique needs of our borrowers. Typical commercial mortgage-backed securities, or CMBS, and other conduit securitization lenders generally could not provide these types of loans because of constraints within their funding structures and because they usually originated loans with the intent to sell them to third parties and relinquish control. Additionally, our centralized investment organization has enabled senior management to review potential new loans early in the origination process which, unlike many large institutional lenders with several levels of approval required to commit to a loan, allowed us to respond quickly and provided a high degree of certainty to our borrowers that we would close a loan on terms substantially similar to those initially proposed. We believe that this level of service has enhanced our reputation in the marketplace. In addition, we believe the early and active role of senior management in our investment process has been key to maximizing recoveries of invested capital from our investments and ability to be responsive to changing market conditions. As of December 31, 2010, our average funded loan size was $18.9 million and we managed 143 separate commercial real estate loans with a carrying value of $1.8 billion.

Our real estate debt investments typically have many of the following characteristics: (i) terms of two to ten years inclusive of any extension options; (ii) collateral in the form of a first mortgage or a subordinate interest in a first mortgage on real property, a pledge of ownership interests in a real estate owning entity or a preferred equity investment in a real estate owning entity; (iii) investment amounts of $5 million to $100 million; (iv) floating interest rates priced at a spread over LIBOR or fixed interest rates; (v) an interest rate cap or other hedge to protect against interest rate volatility; and (vi) an intercreditor agreement that outlines our rights relative to other investors in the capital structure of the transaction and that typically provides us with a right to cure any defaults to the lender of those tranches senior to us and, under certain circumstances, to purchase senior tranches.

(2)Includes $18.7 million in real estate debt investments, held for sale. (3)Approximately $525.2 million of the Company's real estate debt investments have a weighted-average LIBOR rate floor of 2.08% The following charts display our loan portfolio by collateral type and by geographic location:

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