The wholesale distribution business is a thing of the past for NorthStar Realty Finance Corp (NorthStar Realty). NorthStar Asset Management Group (NSAM), a newly formed spin-off, has taken over securities distribution amongst other services.
NSAM, NorthStar Realty’s asset management business, will begin regular trading today on the NYSE under the ticker symbol “NSAM”. It now provides asset management and related services to NorthStar Realty, sponsored public non-traded companies, and any other companies it may manage in the future.
In accordance with last week’s announcement, each NorthStar Realty common stockholder has received shares of NSAM common stock on a one-for-one basis, after giving effect to a one-for-two reverse stock split.
The company did not distribute fractional shares of NSAM and NorthStar Realty stockholders will receive cash instead of any fractional shares they may have otherwise been entitled to in the distribution.
NorthStar Realty will continue to trade its common stock on the NYSE under the ticker symbol “NRF” but will have a new CUSIP number (66704R 704).
Chairman and chief executive officer of NorthStar, David T. Hamamoto, commented, “We are delighted to celebrate the launch of NSAM into the public market and look forward to building a premier asset management business, while continuing to grow NorthStar Realty into a leading diversified commercial real estate investment business.”
He continued, “ As we approach the 10-year anniversary of NorthStar Realty’s IPO and having achieved an approximate 19% compounded annual shareholder return since our IPO, we still believe that the best is yet to come and expect exciting achievements from NorthStar Realty and NSAM in the future.”