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NorthStar Realty Finance Corp. Funds From Operations Swing to Profit in Q4

By Patrick Morris – Feb 27, 2014 at 10:42AM

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NorthStar Realty Finance continued to see improvements in its operations as its net losses per share moved from $0.20 in Q4 2012 to $0.04 in Q4 2013 and its fund from operations turned positive.

NorthStar Realty Finance (NRF) reported its earnings for the fourth quarter and full year of 2013 today, and the company saw its funds from operations (FFO) per share increase from a loss of $0.09 in the fourth quarter of 2012 to $0.09 per share in the fourth quarter of 2013. For the full year in 2013 funds from operations at NorthStar stood at a loss of $0.18 per share, versus a loss of $1.94 per share in 2012.

Its adjusted funds from operations -- which adds back the losses seen from the accounting adjustments in the fair value of its balance sheet -- stood at $0.32 in the fourth quarter and $1.30 for the full year in 2013, compared to $0.75 and $1.76 in 2012.

"2013 was truly a transformational year for NorthStar," noted the chairman and CEO, David Hamamoto, in a press release. "The $3.6 billion of diversified investments completed during 2013 across various commercial real estate asset classes emphasizes the strength of our broad and scalable commercial real estate platform."

In addition NorthStar said the previously announced plan to spin off its asset management business, NorthStar Asset Management Group (NASM), remains on track to be complete in the second quarter of this year.

In the fourth quarter of 2013 NorthStar added a portfolio of manufactured housing communities for $345 million, with an expected yield of 12%. In addition it made a nearly $340 million investment in RXR Realty, which is a real estate operating and management company in the New York Tri-State area.

"We are extremely excited by the variety of opportunities available for NorthStar and will continue focusing on creating shareholder value such as the recently announced spin-off of our asset management business into an independent publicly traded company," concluded Hamamoto. "We believe that NSAM, with its unique asset base and one of-a-kind structure, is extremely well positioned for powerful growth as we continue to drive value at NorthStar."

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