Newcastle Investment Corp. (NYSE: NCT) is a real estate investment trust that focuses on investing in, and actively managing, real estate related assets and primarily invests in: (1) Senior Housing Assets and (2) Real Estate & Other Debt, in addition to other opportunistic investments.
Our primary investment areas are summarized below.
We endeavor to create value for our stakeholders by investing in real estate and other related debt throughout over a decade of dynamic market conditions.
We actively manage CDOs and several other real estate investments. To enhance our returns, we seek to opportunistically buy back our liabilities at a significant discount, and to execute on other niche opportunities, such as collapsing our CDOs.
In addition to real estate debt investing, we actively seek undervalued segments of the real estate landscape where we are able to leverage our manager, Fortress’s, experience and expertise to invest accretively. We have been focused on opportunities in the senior housing sector, where we believe the return profile is particularly compelling.
As of December 2013, we owned 84 properties located in 25 states. We believe the growing demands of a rapidly aging population – combined with limited new supply – will drive the need for high-quality senior living facilities. Furthermore, we believe that within the highly fragmented senior housing industry a significant opportunity to create value through consolidation exists.
In December, Newcastle completed the restructuring of an existing debt investment in National Golf Properties. Through the transaction, Newcastle acquired the equity of National Golf Properties and its affiliate, American Golf Corporation (together the “Golf Business”), and Newcastle invested $49 million, which consisted of an approximately $47 million senior loan and $2 million of equity. The Golf Business owns, leases or manages a portfolio of 92 golf courses located throughout 15 U.S. states.
More detailed information about our business is included in our reports filed with the Securities and Exchange Commission (SEC). These reports describe, among other things, certain risks that could have a material adverse impact on our ability to achieve our business objectives, realize our expected investment returns, and pay dividends. We urge you to review these risks and the other information in our SEC reports.