Sponsor of non-traded REITs, NorthStar Realty Finance Corp., yesterday announced its results for the first quarter of 2014. Events in the first quarter include an approved plan to spin-off its asset management business into a separate publicly-traded company in the form of a tax-free distribution, as well as plans to expand into Europe.
The company raised total capital of $1.5 billion in its non-traded REIT business, including $234 million year-to-date. NorthStar earned $8.7 million of fees from its management of its sponsored non-traded REITs this quarter and also received collateral management and other fees from its CDOs of $2.5 million.
NorthStar’s current non-traded REIT offerings include NorthStar Income Real Estate II and NorthStar Healthcare Income. As of March 19, 2014, NorthStar Healthcare’s portfolio consisted of 11 investments worth $167.1 million and as of April 14, 2014, NorthStar Income II’s portfolio consisted of three senior mortgage loans with a combined principal balance of $139.7 million.
David T. Hamamoto, chairman and chief executive officer of NorthStar, commented, “Our solid first quarter financial performance does not fully reflect the earnings power of our investment portfolio, including the $1.1 billion healthcare acquisition which closed earlier this week. We look forward to powerful CAD growth in the coming quarters.”
NorthStar Realty Securities, LLC currently has total signed selling agreements with broker-dealers covering more than 90,000 registered representatives, on behalf of NorthStar Healthcare Income, Inc. and 106,000 reps on behalf of NorthStar Real Estate Income II, Inc.
NorthStar Asset Management expects to earn annual net fees approximately equal to three percentage points based on total capital raised for each of its current non-traded REITs.