Category Archives: Spinoffs

NorthStar Realty Europe’s Curious Buyback

NRE logo - CopyIt’s one of the strangest buyback announcements I’ve ever seen. NorthStar Realty Europe (NRE) has authorized the repurchase of $100 million of its common stock. This is tremendously unusual, since companies typically let the market take care of the mispricing of their stock, especially right after a spinoff. Of course, it’s also highly unusual for a REIT to authorize a stock repurchase, but sister REIT NorthStar Realty Finance (NRF) also authorized a buyback, for $500 million. So why the strange step? Continue reading NorthStar Realty Europe’s Curious Buyback

John Malone Speaks to CNBC

120px-Liberty_Media.svgHead of the Liberty empire John Malone sat down with CNBC’s David Faber for a long interview on the state of the media industry and the various Liberty companies in particular. It’s always interesting to hear what one of the world’s most successful investors has to say, and this time was no different. You can check out the full video at CNBC’s site here. If you’re a John Malone junkie, you won’t be disappointed.

NorthStar Realty Finance – Where’s the Downgrade, Bro?

NRF imageA couple days ago I lambasted KBW’s analyst for what seemed like a rather arbitrary discount applied to NorthStar Realty Finance (NRF). (You can see the original post here.) The analyst determined a figure of net asset value of $32.08 per share, whereas management reported in its filing last week that it estimated NAV at $29.07. So where’s the downgrade, bro? Continue reading NorthStar Realty Finance – Where’s the Downgrade, Bro?

Liberty Has Moves Like Jagger

120px-Liberty_Media.svgNobody knows how to make corporate moves like John Malone. The chairman of the Liberty empire is at it again, with a series of new transactions at two of his Liberty enterprises. Liberty Media (LMCA) announced that it was splitting into three tracking stocks, while separately Liberty Interactive (QVCA)(LVNTA) announced that it was spinning off two businesses. If all that weren’t complex enough, the Liberty Media transaction also has a rights offering attached to it. Continue reading Liberty Has Moves Like Jagger

NorthStar Realty Finally Gets Serious – A Little

NRF imageIt looks like management at NorthStar Realty Finance (NRF) is finally getting serious about moving its stock up. They’ve begun a series of disclosures that probably already should have been in place years ago, such as breaking out NOI by property type in the press release, but now they’ve also included NAV in their latest quarterly supplemental. Will that help to stem the very irrational selling that’s hammered the stock in recent months? Only if they back it up with buying back stock and shoring up that dividend. Here’s how a strong buyback would save the stock. Continue reading NorthStar Realty Finally Gets Serious – A Little

NorthStar Realty Finance – Some Kind of Joke?

NRF imageAh, sell-side analysts… All the information but no ability to use it, like a kid in a brothel. I was stunned when I read the recent KBW analysis of NorthStar Realty Finance (NRF) following the third quarter report. I was stunned not so much for its estimate of net asset value, but rather the analyst’s price target. I simply cannot fathom the rationalization, given the inputs. Continue reading NorthStar Realty Finance – Some Kind of Joke?

McDonald’s Nixes REIT Spinoff

mcd_800x800-200x140The news probably irritated a number of activist investors, but McDonald’s (MCD) has decided not to spin off its substantial property holdings into a standalone REIT. Activists have been pushing for some time to get the fast food chain to break apart into a real estate trust and a restaurant operator. That’s probably ultimately better news for long-term shareholders. Continue reading McDonald’s Nixes REIT Spinoff

Darden Spins Off Four Corners REIT

DardenTuesday marked the debut of Four Corners Property Trust (FCPT), the REIT spun off by Darden Restaurants (DRI). Shareholders received one share in Four Corners for every three shares of Darden that they owned. So how interesting does this spinoff look anyway? Continue reading Darden Spins Off Four Corners REIT

AIG – Now Property and Casualty of Carl Icahn?

AIG_logo.svgLast week activist investor Carl Icahn revealed that he had taken a stake in AIG (AIG), and was agitating for the insurance company to be split up. While the exact size of Icahn’s position is not yet known, he was nevertheless pugnacious in his call for AIG to split into three companies. Icahn wants the insurer to pursue tax-free separations of its life and mortgage insurance businesses in order to avoid the federal government’s designation of AIG as a “systemically important financial institution.” Icahn also wants the insurer to focus more heavily on cost controls in a bid to bring them in line with peers’. Continue reading AIG – Now Property and Casualty of Carl Icahn?

Hewlett-Packard Is Splitsville

HP_New_Logo_2D.svgIt’s official: Hewlett-Packard (HPQ) and Hewlett-Packard Enterprise (HPE) have finally untied the knot. Monday saw the companies part ways, and investor reaction was initially mixed, though the bulls came out for the PC-and-ink business not long after, with that stock rising 13% on its debut day. Barron’s sees that legacy business as fairly valued at $14, right where it trades today. Continue reading Hewlett-Packard Is Splitsville