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 three CDOs and several other real estate investments. Our investments are primarily secured by or related to commercial real estate. 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 September 2013, we owned 31 properties located in 10 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 September 2013, we announced that our board of directors unanimously approved a plan to spin-off our media assets, which include an interest in GateHouse Media, Inc. (“GateHouse”) and Local Media Group Holdings LLC (“Local Media”). We expect to effect the spin-off as a distribution to the holders of our common stock of shares of common stock of New Media, a holding company that will own GateHouse and Local Media upon the completion of GateHouse’s restructuring. New Media intends to apply to list its common stock on the New York Stock Exchange.
We expect that New Media will be primarily focused on investing in a high quality, diversified portfolio of local media assets and on growing its existing online advertising and digital marketing businesses. New Media’s strategy will be to acquire and operate traditional local media
businesses and transform them from print-centric operations to dynamic multi-media operations, through its existing online advertising and digital marketing businesses. New Media also intends to leverage its existing platform to operate these businesses more efficiently.
We are targeting distribution of New Media’s shares in early 2014. However, there can be no assurance that the spin-off will be completed as anticipated or at all.
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.