NorthStar Realty Europe (NorthStar Realty Europe) Operating Income : $-6.65 Mil (TTM As of Jun. 2019)

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What is NorthStar Realty Europe Operating Income?

NorthStar Realty Europe's Operating Income for the three months ended in Jun. 2019 was $-1.80 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 was $-6.65 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NorthStar Realty Europe's Operating Income for the three months ended in Jun. 2019 was $-1.80 Mil. NorthStar Realty Europe's Revenue for the three months ended in Jun. 2019 was $16.61 Mil. Therefore, NorthStar Realty Europe's Operating Margin % for the quarter that ended in Jun. 2019 was -10.85%.

NorthStar Realty Europe's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. NorthStar Realty Europe's annualized ROC % for the quarter that ended in Jun. 2019 was -0.97%. NorthStar Realty Europe's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 was 18.05%.

NorthStar Realty Europe Operating Income Historical Data

The historical data trend for NorthStar Realty Europe's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NorthStar Realty Europe Operating Income Chart

NorthStar Realty Europe Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Operating Income

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-34.04

-89.09

6.33

-6.89

6.85

NorthStar Realty Europe Quarterly Data
	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Operating Income	Get a 7-Day Free Trial															3.81	3.45	-9.36	1.07	-1.80

NorthStar Realty Europe Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 adds up the quarterly data reported by the company within the most recent 12 months, which was $-6.65 Mil.

NorthStar Realty Europe (NYSE:NRE) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

NorthStar Realty Europe's annualized ROC % for the quarter that ended in Jun. 2019 is calculated as:

	ROC % (Q: Jun. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2019 )	+	Invested Capital (Q: Jun. 2019 ))	/ count )
=	-7.204 * ( 1 - -21.01% )	/	( (920.192	+	875.425)	/ 2 )
=	-8.7175604	/	897.8085
=	-0.97 %

where

	Invested Capital		(Q: Mar. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1405.727	-	32.162	-	( 453.373	-	max(0, 32.162	-	521.627	+	453.373	))
=	920.192

	Invested Capital		(Q: Jun. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1272.226	-	24.196	-	( 377.393	-	max(0, 24.196	-	396.801	+	377.393	))
=	875.425

Note: The Operating Income data used here is four times the quarterly (Jun. 2019) data.

2. Joel Greenblatt's definition of Return on Capital:

NorthStar Realty Europe's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2019 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2019		Q: Jun. 2019
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	8.912	/	( ( (31.786 + max(36.092, 0))	+	(30.875 + max(-4.788, 0)) )	/	2 )
=	8.912	/	( ( 67.878	+	30.875 )	/	2 )
=	8.912	/	49.3765
=	18.05 %

where Working Capital is:

	Working Capital		(Q: Mar. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(15.672	+	0	+	52.582)	-	(32.162	+	0	+	0)
=	36.092

	Working Capital		(Q: Jun. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(12.608	+	0	+	6.8)	-	(24.196	+	0	+	0)
=	-4.788

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2019) EBIT data.

3. Operating Income is also linked to Operating Margin %:

NorthStar Realty Europe's Operating Margin % for the quarter that ended in Jun. 2019 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2019 )	/	Revenue (Q: Jun. 2019 )
	=	-1.801	/	16.606
	=	-10.85 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

NorthStar Realty Europe Operating Income Related Terms

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NorthStar Realty Europe (NorthStar Realty Europe) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » NorthStar Realty Europe Corp (NYSE:NRE) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

590 Madison Avenue, 34th Floor, New York, NY, USA, 10022

Website

http://www.nrecorp.com

NorthStar Realty Europe Corp is functional in the real estate sector in the United States. Its business is that of a real estate investment trust with its prime focus on European office properties with the objective of providing stockholders with stable and recurring cash flow supplemented by capital growth over time. The company has two basic segments of operation: Real Estate and Corporate. The Real Estate segment includes its European commercial real estate business, which is primarily focused on office properties in Germany. Its investments in other countries include UK, Netherlands, France, Italy, Belgium, Sweden, and Portugal.

Executives

W D Minami	director	C/O NORTHSTAR REALTY FINANCE CORP., 399 PARK AVENUE, 18TH FLOOR, NEW YORK NY 10022
Mahbod Nia	director, officer: Chief Executive Officer	C/O COLONY NORTHSTAR, INC., 590 MADISON AVENUE, 34TH FLOOR, NEW YORK NY 10022
Thomas Jr Barrack	director	C/O COLONY NORTHSTAR, INC., 515 S. FLOWER ST., 44TH FLOOR, LOS ANGELES CA 90071
Judith A Hannaway	director	C/O FORTRESS INVESTMENT GROUP, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Oscar Junquera	director	C/O COLONY NORTHSTAR, INC., 590 MADISON AVENUE, 34TH FLOOR, NEW YORK NY 10022
Keith A. Feldman	officer: CFO and Treasurer	C/O COLONY NORTHSTAR, INC., 590 MADISON AVENUE, 34TH FLOOR, NEW YORK NY 10022
Richard B Saltzman	director	C/O COLONY NORTHSTAR, INC., 515 S. FLOWER ST., 44TH FLOOR, LOS ANGELES CA 90071
Digitalbridge Group, Inc.	10 percent owner	750 PARK OF COMMERCE DRIVE, SUITE 210, BOCA RATON FL 33487
Digitalbridge Operating Company, Llc	10 percent owner	750 PARK OF COMMERCE DRIVE, SUITE 210, BOCA RATON FL 33487
David T Hamamoto	director	C/O COLONY NORTHSTAR, INC., 515 S. FLOWER ST., 44TH FLOOR, LOS ANGELES CA 90071
Albert Tylis	director	C/O NORTHSTAR REALTY FINANCE CORP., 399 PARK AVENUE, 18TH FLOOR, NEW YORK NY 10022
Charles W Schoenherr	director	C/O DIAMONDHEAD HOLDINGS CORP., 250 PARK AVE., 7TH FLOOR, NEW YORK NY 10177
Debra Ann Hess	officer: Interim CFO	C/O NORTHSTAR REALTY FINANCE CORP., 399 PARK AVENUE, 18TH FLOOR, NEW YORK NY 10022