NYSE:NRE

Stock Analysis Report

Northstar Realty Europe

Executive Summary

NorthStar Realty Europe Corp. is a European focused commercial real estate company with predominately prime office properties within key cities in Germany, the United Kingdom and France, organized as a REIT and managed by an affiliate of Colony Capital, Inc.


Snowflake Analysis

Solid track record and fair value.

Share Price & News

How has Northstar Realty Europe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

NRE

-0.07%

US REITs

-1.1%

US Market


1 Year Return

23.5%

NRE

16.0%

US REITs

17.9%

US Market

Return vs Industry: NRE exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: NRE underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

NREIndustryMarket
7 Day0.2%-0.07%-1.1%
30 Day0.5%3.6%1.4%
90 Day3.5%7.8%6.9%
1 Year27.9%23.5%20.7%16.0%20.3%17.9%
3 Year82.2%59.8%37.9%20.6%47.8%38.3%
5 Yearn/a60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

How volatile is Northstar Realty Europe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northstar Realty Europe undervalued compared to its fair value and its price relative to the market?

4.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NRE ($17.02) is trading above our estimate of fair value ($5.24)

Significantly Below Fair Value: NRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NRE is good value based on its PE Ratio (4.7x) compared to the REITs industry average (37.8x).

PE vs Market: NRE is good value based on its PE Ratio (4.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NRE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NRE is good value based on its PB Ratio (1.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Northstar Realty Europe forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-118.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRE's earnings are forecast to decline over the next 3 years (-118.6% per year).

Earnings vs Market: NRE's earnings are forecast to decline over the next 3 years (-118.6% per year).

High Growth Earnings: NRE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NRE's revenue is expected to decline over the next 3 years (-3.5% per year).

High Growth Revenue: NRE's revenue is forecast to decline over the next 3 years (-3.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NRE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Northstar Realty Europe performed over the past 5 years?

71.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRE has a large one-off gain of $196.8M impacting its June 30 2019 financial results.

Growing Profit Margin: NRE's current net profit margins are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: NRE has become profitable over the past 5 years, growing earnings by 71.1% per year.

Accelerating Growth: NRE's earnings growth over the past year (480.5%) exceeds its 5-year average (71.1% per year).

Earnings vs Industry: NRE earnings growth over the past year (480.5%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: NRE's Return on Equity (26.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Northstar Realty Europe's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NRE has a high level of physical assets or inventory.

Debt Coverage by Assets: NRE's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NRE is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: NRE is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: NRE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NRE has a sufficient allowance for bad loans.

Low Risk Liabilities: NRE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NRE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NRE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NRE has an appropriate level of bad loans.


Next Steps

Dividend

What is Northstar Realty Europe's current dividend yield, its reliability and sustainability?

3.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRE's dividend (3.53%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: NRE's dividend (3.53%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NRE has been paying a dividend for less than 10 years.

Growing Dividend: NRE has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (182.2%), NRE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Mahbod Nia (43yo)

4.3yrs

Tenure

US$1,779,680

Compensation

Mr. Mahbod Nia is Managing Director at Colony Capital, Inc. He is Chief Executive Officer of NorthStar Realty Europe Corp. (or “NRE”), a NYSE listed REIT focused on European properties since 2015. As CEO,  ...


Leadership Team

NamePositionTenureCompensationOwnership
Mahbod Nia
CEO, President & Director4.3yrsUS$1.78m1.25% $10.8m
Keith Feldman
CFO & Treasurer2.3yrsUS$1.45m0.41% $3.6m
Trevor Ross
Executive VP4yrsUS$588.32k0.24% $2.0m
Gordon Simpson
Investor Relations Contact0yrsno datano data

4.0yrs

Average Tenure

43yo

Average Age

Experienced Management: NRE's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mahbod Nia
CEO, President & Director4.3yrsUS$1.78m1.25% $10.8m
Judith Hannaway
Lead Independent Director3.9yrsUS$308.50k0.039% $332.1k
Wesley Minami
Independent Director3.9yrsUS$267.50k0.053% $455.6k
Thomas Barrack
Director0.08yrsno data0.076% $651.6k
Oscar Junquera
Independent Director3.9yrsUS$273.00k0.047% $407.3k
Mario Chisholm
Independent Director3.9yrsUS$265.50k0.076% $656.1k
Dianne Hurley
Independent Director3.2yrsUS$238.50k0.068% $585.8k

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: NRE's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Northstar Realty Europe Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northstar Realty Europe Corp.
  • Ticker: NRE
  • Exchange: NYSE
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$860.397m
  • Market Cap: US$855.923m
  • Shares outstanding: 50.55m
  • Website: https://www.nrecorp.com

Location

  • Northstar Realty Europe Corp.
  • 590 Madison Avenue
  • 34th Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRENYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2015

Biography

NorthStar Realty Europe Corp. is a European focused commercial real estate company with predominately prime office properties within key cities in Germany, the United Kingdom and France, organized as a REIT and managed by an affiliate of Colony Capital, Inc. (NYSE: CLNY), a leading global equity REIT with an embedded investment management platform. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/01 00:42
End of Day Share Price2019/09/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.