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NorthStar Realty Finance (NorthStar Realty Finance) Degree of Financial Leverage : 0.00 (As of Sep. 2016)


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What is NorthStar Realty Finance Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). NorthStar Realty Finance's Degree of Financial Leverage for the quarter that ended in Sep. 2016 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for NorthStar Realty Finance's Degree of Financial Leverage or its related term are showing as below:

NRFPRB.PFD's Degree of Financial Leverage is not ranked *
in the REITs industry.
Industry Median: 1.065
* Ranked among companies with meaningful Degree of Financial Leverage only.

NorthStar Realty Finance Degree of Financial Leverage Historical Data

The historical data trend for NorthStar Realty Finance's Degree of Financial Leverage 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.

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NorthStar Realty Finance Degree of Financial Leverage Chart

NorthStar Realty Finance Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Degree of Financial Leverage
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NorthStar Realty Finance Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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Competitive Comparison of NorthStar Realty Finance's Degree of Financial Leverage

For the REIT - Retail subindustry, NorthStar Realty Finance's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


NorthStar Realty Finance's Degree of Financial Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, NorthStar Realty Finance's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where NorthStar Realty Finance's Degree of Financial Leverage falls into.



NorthStar Realty Finance Degree of Financial Leverage Calculation

NorthStar Realty Finance's Degree of Financial Leverage for the quarter that ended in Sep. 2016 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0 (Sep. 2016) / 0 (Sep. 2015) - 1 )/( 201.74 (Sep. 2016) / 132.483 (Sep. 2015) - 1 )
=/0.5228
=0.00***

* 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.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


NorthStar Realty Finance  (NYSE:NRFPRB.PFD) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.


NorthStar Realty Finance Degree of Financial Leverage Related Terms

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NorthStar Realty Finance (NorthStar Realty Finance) Business Description

Traded in Other Exchanges
N/A
Address
Northstar Realty Finance Corp is a Maryland corporation formed in October 2003. The Company is an internally managed REIT, and is a diversified commercial real estate investment and asset management company. NorthStar Realty Finance Limited Partnership holds all of the Company's assets and conducts its operation directly or indirectly. The Company invests in multiple asset classes across commercial real estate. These investments are in the form of acquiring real estate, originating or acquiring senior or subordinate loans, as well as CRE investments, both in the United States and internationally. The asset management business is focused on raising and managing capital on a fee basis from alternative sources, which includes non-traded real estate investment trusts, and sponsoring other companies through joint ventures and partnerships, such as RXR Realty, LLC, or RXR Realty. The Company's commercial real estate debt business is focused on originating, structuring, acquiring and managing senior and subordinate debt investments secured by commercial real estate, including first mortgage loans, subordinate interests, mezzanine loans, credit tenant loans and other loans, including preferred equity interests in borrowers who own such properties. The Company competes with many third parties engaged in real estate investment activities including publicly-traded REITs, non-traded REITs, insurance companies, commercial and investment banking firms, private equity funds. The Company is subject to supervision and regulation by state and federal governmental authorities and is subject to various laws and judicial and administrative decisions imposing various requirements and restrictions.