NorthStar Realty Finance Corp. (NRF, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $244.4 million; its shares were traded at around $3.66 with a P/E ratio of 4.8 and P/S ratio of 0.7. The dividend yield of NorthStar Realty Finance Corp. stocks is 10.9%.
Interest income for the three months ended June 30, 2009 totaled $35.7 million, representing a decrease of $14.2 million, or 28%, compared to $49.9 million for the three months ended June 30, 2008. The decrease consisted of a $14.1 million decrease attributable to an approximately 225 basis points lower average one-month LIBOR rate during the second quarter 2009 compared to second quarter 2008, and a $1.1 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 $389.3 million subsequent to June 30, 2008 offset by approximately $357.7 million of investment dispositions and repayments during 2008.
Rental and escalation income for the three months ended June 30, 2009 totaled $24.4 million, representing a decrease of $4.6 million, or 16%, compared to $29.0 million for the three months ended June 30, 2008. The decrease of $4.6 million was primarily attributable to the following; i) Reading, PA and Chatsworth, CA property lease terminations, ii) the Cincinnati, OH lease renewal and iii) during the second quarter 2009, we restructured our net lease relationship with one of our healthcare operators to take advantage of new REIT legislation which now allows a taxable REIT subsidiary affiliate to become the lessee of healthcare-related properties. The restructuring resulted in one of our unconsolidated affiliates becoming the lessee of the properties and our unconsolidated affiliate simultaneously entering into a management contract with a third party operator. This new structure allows us to participate in operating improvements of the underlying properties not previously available under the prior structure.
Advisory fees from related parties for the three months ended June 30, 2009 totaled $1.8 million, representing a decrease of approximately $4.7 million, or 72%, compared to $6.5 million for the three months ended June 30, 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 which resulted in the recognition of an additional $4.8 million in advisory fee income during the second quarter 2008. The sale resulted in $0.2 million of lower advisory fees and a decrease of $0.1 million as a result of the decline in the net asset value of our Securities Fund and our term debt transactions which generate advisory fees, also contributed to the lower advisory fees.
Other revenue for the three months ended June 30, 2009 totaled $0.2 million, representing a decrease of $3.8 million, or 95%, compared to $4.0 million the three months ended June 30, 2008. Other revenue for three months ended June 30, 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 June 30, 2008 consisted primarily of the sale of our profit participation in a real estate debt investment for $3.7 million, $0.1 million unused credit line fees and $0.1million in draw fees and $0.1 million miscellaneous other revenue.
Interest expense for the three months ended June 30, 2009 totaled $31.9 million, representing a decrease of $14.6 million, or 31%, compared to $46.5 million for the three months ended June 30, 2008. The decrease in interest was primarily the result of: (i)
Read the The complete ReportNRF is in the portfolios of 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 $244.4 million; its shares were traded at around $3.66 with a P/E ratio of 4.8 and P/S ratio of 0.7. The dividend yield of NorthStar Realty Finance Corp. stocks is 10.9%.
Highlight of Business Operations:
delinquency of greater than 90 days. A $21.3 million first mortgage loan secured by a condo/hotel development site in Manhattan was on the non-performing loan list at December 31, 2008 and the maturity default is not yet resolved. At June 30, 2009, we have a $5.0 million loan loss reserve for this loan, and continue to negotiate a potential assumption of our loan by new sponsors, who have significant hotel development and operating track records and intend to develop a full service hotel on the site, as well as pursuing legal remedies against the borrower. The second non-performing loan is a $28.5 million B-note secured by a large mixed use development located near Orlando, FL. Our note is subordinate to a $127 million A-note and senior to a $28.0 million C-note. The borrower did not meet the requirements for a March 2009 extension, and the A-Note holder is leading restructuring discussions with the borrower. The borrower also has existing recourse obligations to make scheduled amortization payment. At June 30, 2009, we have a $8.0 million loan loss reserve for this loan. The third non-performing loan which we fully reserved against, is a $9.4 million mezzanine loan backed by a multi-family development site in Washington D.C. The fourth non-performing loan is a $13.8 million first mortgage loan secured by a condo development site in Manhattan which has the same sponsor as the $21.3 million non-performing loan previously discussed. There is a $2.0 million reserve for this loan at June 30, 2009. There can be no assurance that acceptable assumption and modification agreements can be reached with the respective borrowers under our non-performing loans, and if agreements cannot be reached we may determine that more reserves are required for these loans.Interest income for the three months ended June 30, 2009 totaled $35.7 million, representing a decrease of $14.2 million, or 28%, compared to $49.9 million for the three months ended June 30, 2008. The decrease consisted of a $14.1 million decrease attributable to an approximately 225 basis points lower average one-month LIBOR rate during the second quarter 2009 compared to second quarter 2008, and a $1.1 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 $389.3 million subsequent to June 30, 2008 offset by approximately $357.7 million of investment dispositions and repayments during 2008.
Rental and escalation income for the three months ended June 30, 2009 totaled $24.4 million, representing a decrease of $4.6 million, or 16%, compared to $29.0 million for the three months ended June 30, 2008. The decrease of $4.6 million was primarily attributable to the following; i) Reading, PA and Chatsworth, CA property lease terminations, ii) the Cincinnati, OH lease renewal and iii) during the second quarter 2009, we restructured our net lease relationship with one of our healthcare operators to take advantage of new REIT legislation which now allows a taxable REIT subsidiary affiliate to become the lessee of healthcare-related properties. The restructuring resulted in one of our unconsolidated affiliates becoming the lessee of the properties and our unconsolidated affiliate simultaneously entering into a management contract with a third party operator. This new structure allows us to participate in operating improvements of the underlying properties not previously available under the prior structure.
Advisory fees from related parties for the three months ended June 30, 2009 totaled $1.8 million, representing a decrease of approximately $4.7 million, or 72%, compared to $6.5 million for the three months ended June 30, 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 which resulted in the recognition of an additional $4.8 million in advisory fee income during the second quarter 2008. The sale resulted in $0.2 million of lower advisory fees and a decrease of $0.1 million as a result of the decline in the net asset value of our Securities Fund and our term debt transactions which generate advisory fees, also contributed to the lower advisory fees.
Other revenue for the three months ended June 30, 2009 totaled $0.2 million, representing a decrease of $3.8 million, or 95%, compared to $4.0 million the three months ended June 30, 2008. Other revenue for three months ended June 30, 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 June 30, 2008 consisted primarily of the sale of our profit participation in a real estate debt investment for $3.7 million, $0.1 million unused credit line fees and $0.1million in draw fees and $0.1 million miscellaneous other revenue.
Interest expense for the three months ended June 30, 2009 totaled $31.9 million, representing a decrease of $14.6 million, or 31%, compared to $46.5 million for the three months ended June 30, 2008. The decrease in interest was primarily the result of: (i)
Read the The complete ReportNRF is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
