No Real Excitement for Northstar Realty Europe

The pending Colony Northstar merger (described in prior articles) did not address the future of Northstar Realty Europe (NRE).  NRE claims to be undervalued for reasons similar to Northstar Realty Finance (NRF) (see NRE presentation): Share price ($9.86 on 10/27) is well below Net Asset Value independently assessed at $16.64 at 6/30/16. Quarterly dividend of … Continue reading No Real Excitement for Northstar Realty Europe

Does the Colony Northstar Merger Offer Fair Value to NSAM Shareholders?

Activist shareholders of Northstar Asset Management (NYSE:NSAM) have signaled an intention to vote against the proposed three way merger with Colony Capital and Northstar Realty Finance.  Background in prior articles Colony Northstar: Will this team of overpaid former all-stars end up like the Brooklyn Nets? describes the merger transaction and the problems at NSAM and Northstar Realty … Continue reading Does the Colony Northstar Merger Offer Fair Value to NSAM Shareholders?

Colony Northstar: Merger Pros and Cons for NSAM

Shares of the Colony Northstar merger parties have rebounded from their initial collapse after the announcement creating “A world-class diversified real estate and investment management platform”: The background of the merger and the potential benefits were described in my earlier article (Colony Northstar: Will this team of overpaid former all-stars end up like the Brooklyn … Continue reading Colony Northstar: Merger Pros and Cons for NSAM

Colony Northstar: Will this team of overpaid former all-stars end up like the Brooklyn Nets?

(slightly revised 7/6/16) In one month after the announcement of a merger creating “A world-class diversified real estate and investment management platform”, shares of the three merger parties shares are all down sharply:   While the merger does not meet unrealistic expectations of some Northstar Realty (NRF ) and Northstar Asset Management (NSAM) holders the combination would … Continue reading Colony Northstar: Will this team of overpaid former all-stars end up like the Brooklyn Nets?

5 Demands, Not 1 Less: A Letter To The Independent Directors Of Colony Credit Real Estate

Copied below is the text of my letter to the independent directors of Colony Credit Real Estate.  It advocates for the directors and the corporation to take certain actions.  The text is not intended as investment research. The text expresses my opinions based on publicly available facts, but my opinions are not themselves facts.  For … Continue reading 5 Demands, Not 1 Less: A Letter To The Independent Directors Of Colony Credit Real Estate

Colony Capital Investor Presentation Key Points

Colony Capital participated in the BAML 2019 GLOBAL REAL ESTATE CONFERENCE on 9/11/19.  Any potential CLNY investor should listen to incoming CEO Marc Ganzi’s vision for the future of the company.  Management comments went far beyond the contents of the PDF investor presentation.  Paraphrasing key points: Chairman Tom Barrack began by explaining that Northstar was “a … Continue reading Colony Capital Investor Presentation Key Points

Colony Credit On Death Row

Note: Seeking Alpha declined to publish this article in this form because the editor thought it was too provocative.   Colony Credit delivered a disappointing 2Q19 GAAP loss of -$111mm and non-GAAP “Core Earnings” of $36mm ($0.28/share) Share price is at a wide 38% discount to book value while peers trade at an average premium … Continue reading Colony Credit On Death Row

Colony Credit: Management Should Get It Right in 2019 Or Get Out

Colony Credit delivered a disappointing 2018 GAAP loss of $168mm (-$1.41/share) and non-GAAP “Core Earnings” of $86mm ($0.70/share) Share price has fallen to a wide 28% discount to book value while peers trade at an average premium of 19% Management commentary has been consistently overoptimistic Get it right or get out.  If returns don’t improve … Continue reading Colony Credit: Management Should Get It Right in 2019 Or Get Out

Colony Credit: Satisfactory Progress & Bargain Valuation

The company remains under-owned and undervalued (31% discount to BVPS compared to average premium of 8% for large cap peers) Earnings expected to cover dividend rate by 2H19 Portfolio return currently below peers due to lower yielding non core assets (real estate and Private equity) and low leverage Colony Credit Real Estate (CLNC) 3Q results … Continue reading Colony Credit: Satisfactory Progress & Bargain Valuation

Colony Credit Needs More Time To Reach Targets

Target level of leverage and earnings now expected in 2H19 Asset level performance is satisfactory with unlevered yields in line with expectations Portfolio return below peers due to lower yielding non core assets (real estate and Private equity) and low leverage The company remains under-owned (held by only 6 ETFs) and undervalued (12% discount to … Continue reading Colony Credit Needs More Time To Reach Targets