NorthStar Realty Finance Corp. (NRF, Financial) filed Quarterly Report for the period ended 2009-03-31.
NorthStar Realty Finance Corp. is an internally-managed REIT that makes fixed income structured finance and net lease investments in commercial real estate assets. NorthStar Realty's business consists of three core business lines: subordinate real estate debt real estate securities and net lease properties. NorthStar Realty Finance Corp. has a market cap of $227.5 million; its shares were traded at around $3.61 with a P/E ratio of 17.2 and P/S ratio of 0.6. The dividend yield of NorthStar Realty Finance Corp. stocks is 36.9%.
Advisory fees from related parties for the three months ended March 31, 2009 totaled $1.7 million, representing a decrease of approximately $0.6 million, or 26%, compared to $2.3 million for the three months ended March 31, 2008. The decrease was primarily attributable to the sale of 67% of the advisory fee income stream from one of our term debt transactions to the Securities Fund during the second quarter 2008. The sale resulted in $0.5 million of lower advisory fees and a decrease of $0.1 million as a result of the decline in net asset value of our term debt transactions which generate the advisory fees.
Other revenue for the three months ended March 31, 2009 totaled $0.2 million, representing a decrease of $0.8 million, or 80%, compared to $1.0 million the three months ended March 31, 2008. Other revenue for three months ended March 31, 2009 consisted primarily of $0.1 million in exit fees and $0.1 million in unused credit line fees. Other revenue for the three months ended March 31, 2008 consisted primarily of $0.3 million in prepayment penalties, $0.3 million of exit fees, $0.2 million in unused credit line fees, $0.1 million in draw fees and $0.1 million miscellaneous other revenue.
Interest expense for the three months ended March 31, 2009 totaled $34.1 million, representing a decrease of $21.4 million, or 39%, compared to $55.5 million for the three months ended March 31, 2008. The decrease in interest was primarily the result of: (i) $15.0 million lower interest on N-Star IV, VI, VII and VIII bonds payable and trust preferred debt due to lower average LIBOR rates, debt repurchases and repayments; (ii) $4.9 million lower interest as a result of the recapitalization, termination and de-consolidation of our corporate lending venture in 2008; (iii) $2.2 million relating to lower average balances and lower LIBOR rates on our WA Term Loan; (iv) $0.8 million lower interest relating to lower interest rates on our Euro-note; (v) $0.7 million related to the termination of our unsecured revolving credit line in May 2008; and (vi) $0.1 million lower average balances on repurchase obligations. The decrease in interest expense was partially offset by: (i) $2.6 million in additional expense from our $80.0 million 11.50% exchangeable senior notes issued in May 2008 and (ii) $0.1 million in additional expense from our LB term loan which closed in June 2008.
Advisory fees for related parties for the three months ended March 31, 2009 totaled $0.9 million, representing a decrease of $1.2 million, or 57%, compared to $2.1 million for the three months ended March 31, 2008. The decrease was primarily attributable to the termination of the corporate lending joint venture agreement. We incurred $0.9 million of advisory fees to Wakefield Capital Management and no advisory fees to the corporate lending joint venture for the three months ended March 31, 2009, respectively. We incurred $0.9 million of advisory fees to Wakefield Capital Management and $1.2 million of advisory fees to our former corporate lending venture for the three months ended March 31, 2008, respectively.
Provision for loan losses for the three months ended March 31, 2009 totaled $21.5 million and was specifically identified for ten loans. The first quarter 2009 expense includes $12.0 million for mezzanine loans, $6.5 million for whole loans and $3.0 million for subordinated mortgage interests. Provision for loan losses for the three months ended March 31, 2008 totaled $0.8 million and was allocated to a $19.5 million first mortgage asset backed by two multi-family properties.
Read the The complete ReportNRF is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
NorthStar Realty Finance Corp. is an internally-managed REIT that makes fixed income structured finance and net lease investments in commercial real estate assets. NorthStar Realty's business consists of three core business lines: subordinate real estate debt real estate securities and net lease properties. NorthStar Realty Finance Corp. has a market cap of $227.5 million; its shares were traded at around $3.61 with a P/E ratio of 17.2 and P/S ratio of 0.6. The dividend yield of NorthStar Realty Finance Corp. stocks is 36.9%.
Highlight of Business Operations:
Interest income for the three months ended March 31, 2009 totaled $36.8 million, representing a decrease of $26.9 million, or 42%, compared to $63.7 million for the three months ended March 31, 2008. The decrease consisted of a $18.2 million decrease attributable to an approximately 306 basis points lower average one-month LIBOR rate and lower asset balances during the first quarter 2009 compared to first quarter 2008, and a $10.6 million decrease in interest income attributable to the recapitalization and deconsolidation of Monroe Capital in 2008. The decrease was partially offset by a net increase to interest income of approximately $1.9 million resulting from the origination and acquisition of commercial real estate debt and commercial real estate securities with a net book value of $468.3 million subsequent to March 31, 2008 offset by approximately $354.6 million of investment dispositions and repayments during 2008.Advisory fees from related parties for the three months ended March 31, 2009 totaled $1.7 million, representing a decrease of approximately $0.6 million, or 26%, compared to $2.3 million for the three months ended March 31, 2008. The decrease was primarily attributable to the sale of 67% of the advisory fee income stream from one of our term debt transactions to the Securities Fund during the second quarter 2008. The sale resulted in $0.5 million of lower advisory fees and a decrease of $0.1 million as a result of the decline in net asset value of our term debt transactions which generate the advisory fees.
Other revenue for the three months ended March 31, 2009 totaled $0.2 million, representing a decrease of $0.8 million, or 80%, compared to $1.0 million the three months ended March 31, 2008. Other revenue for three months ended March 31, 2009 consisted primarily of $0.1 million in exit fees and $0.1 million in unused credit line fees. Other revenue for the three months ended March 31, 2008 consisted primarily of $0.3 million in prepayment penalties, $0.3 million of exit fees, $0.2 million in unused credit line fees, $0.1 million in draw fees and $0.1 million miscellaneous other revenue.
Interest expense for the three months ended March 31, 2009 totaled $34.1 million, representing a decrease of $21.4 million, or 39%, compared to $55.5 million for the three months ended March 31, 2008. The decrease in interest was primarily the result of: (i) $15.0 million lower interest on N-Star IV, VI, VII and VIII bonds payable and trust preferred debt due to lower average LIBOR rates, debt repurchases and repayments; (ii) $4.9 million lower interest as a result of the recapitalization, termination and de-consolidation of our corporate lending venture in 2008; (iii) $2.2 million relating to lower average balances and lower LIBOR rates on our WA Term Loan; (iv) $0.8 million lower interest relating to lower interest rates on our Euro-note; (v) $0.7 million related to the termination of our unsecured revolving credit line in May 2008; and (vi) $0.1 million lower average balances on repurchase obligations. The decrease in interest expense was partially offset by: (i) $2.6 million in additional expense from our $80.0 million 11.50% exchangeable senior notes issued in May 2008 and (ii) $0.1 million in additional expense from our LB term loan which closed in June 2008.
Advisory fees for related parties for the three months ended March 31, 2009 totaled $0.9 million, representing a decrease of $1.2 million, or 57%, compared to $2.1 million for the three months ended March 31, 2008. The decrease was primarily attributable to the termination of the corporate lending joint venture agreement. We incurred $0.9 million of advisory fees to Wakefield Capital Management and no advisory fees to the corporate lending joint venture for the three months ended March 31, 2009, respectively. We incurred $0.9 million of advisory fees to Wakefield Capital Management and $1.2 million of advisory fees to our former corporate lending venture for the three months ended March 31, 2008, respectively.
Provision for loan losses for the three months ended March 31, 2009 totaled $21.5 million and was specifically identified for ten loans. The first quarter 2009 expense includes $12.0 million for mezzanine loans, $6.5 million for whole loans and $3.0 million for subordinated mortgage interests. Provision for loan losses for the three months ended March 31, 2008 totaled $0.8 million and was allocated to a $19.5 million first mortgage asset backed by two multi-family properties.
Read the The complete ReportNRF is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
