Maryland (State or other jurisdiction of incorporation) | 001-37597 (Commission File Number) | 32-0468861 (I.R.S. Employer Identification No.) |
590 Madison Avenue, 34th Floor, New York, NY | 10022 | |
(Address of principal executive offices) | (Zip Code) |
Item 9.01. | Financial Statements and Exhibits. |
(b) | Pro forma financial information. Pro forma financial information for the Company related to the Transactions referenced in Item 2.01 above is attached as Exhibit 99.1 and incorporated by reference herein. | |
(d) | Exhibit |
Exhibit No. | Description |
99.1 | Unaudited Pro Forma Consolidated Financial Information for NorthStar Realty Europe Corp. |
NorthStar Realty Europe Corp. (Registrant) | ||
Date: December 17, 2018 | By: | /s/ Trevor K. Ross |
Trevor K. Ross General Counsel and Secretary |
Exhibit No. | Description | |
99.1 |
Page | |
As Reported (Unaudited) | Trianon Sale Adjustments (Note 2) | Pro Forma | |||||||||
Assets | |||||||||||
Operating real estate, gross | $ | 1,566,505 | $ | (603,537 | ) | $ | 962,968 | ||||
Less: accumulated depreciation | (119,133 | ) | 49,976 | (69,157 | ) | ||||||
Operating real estate, net | 1,447,372 | (553,561 | ) | 893,811 | |||||||
Preferred equity investments | 34,137 | 5,970 | 40,107 | ||||||||
Cash and cash equivalents | 61,869 | 363,024 | 424,893 | ||||||||
Restricted cash | 7,097 | — | 7,097 | ||||||||
Receivables, net | 8,013 | (1,077 | ) | 6,936 | |||||||
Derivative assets, at fair value | 10,941 | (4,901 | ) | 6,040 | |||||||
Intangible assets, net | 100,831 | (38,180 | ) | 62,651 | |||||||
Other assets, net | 28,466 | (10,954 | ) | 17,512 | |||||||
Total assets | $ | 1,698,726 | $ | (239,679 | ) | $ | 1,459,047 | ||||
Liabilities | |||||||||||
Mortgage and other notes payable, net | $ | 1,092,708 | $ | (381,670 | ) | $ | 711,038 | ||||
Accounts payable and accrued expenses | 16,954 | (3,553 | ) | 13,401 | |||||||
Due to affiliates | 4,259 | — | 4,259 | ||||||||
Derivative liabilities, at fair value | 426 | — | 426 | ||||||||
Intangible liabilities, net | 25,142 | (14,714 | ) | 10,428 | |||||||
Other liabilities | 24,276 | (4,380 | ) | 19,896 | |||||||
Total liabilities | 1,163,765 | (404,317 | ) | 759,448 | |||||||
Commitments and contingencies | |||||||||||
Redeemable noncontrolling interest | 1,930 | (1,930 | ) | — | |||||||
Equity | |||||||||||
NorthStar Realty Europe Corp. Stockholders’ Equity | |||||||||||
Preferred stock | — | — | — | ||||||||
Common stock | 498 | — | 498 | ||||||||
Additional paid-in capital | 860,853 | 158 | 861,011 | ||||||||
Retained earnings (accumulated deficit) | (333,464 | ) | 178,308 | (155,156 | ) | ||||||
Accumulated other comprehensive income (loss) | 1,564 | (11,905 | ) | (10,341 | ) | ||||||
Total NorthStar Realty Europe Corp. stockholders’ equity | 529,451 | 166,561 | 696,012 | ||||||||
Noncontrolling interests | 3,580 | 7 | 3,587 | ||||||||
Total equity | 533,031 | 166,568 | 699,599 | ||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 1,698,726 | $ | (239,679 | ) | $ | 1,459,047 |
As Reported (Unaudited) | Trianon Sale Adjustments (Note 2) | Pro Forma | |||||||||
Revenues | |||||||||||
Rental income | $ | 75,744 | $ | (24,260 | ) | $ | 51,484 | ||||
Escalation income | 15,186 | (5,836 | ) | 9,350 | |||||||
Interest income | 2,143 | 316 | 2,459 | ||||||||
Other income | 497 | (20 | ) | 477 | |||||||
Total revenues | 93,570 | (29,800 | ) | 63,770 | |||||||
Expenses | |||||||||||
Properties - operating expenses | 19,422 | (7,303 | ) | 12,119 | |||||||
Interest expense | 17,280 | (4,170 | ) | 13,110 | |||||||
Transaction costs | 1,986 | — | 1,986 | ||||||||
Management fee, related party | 12,391 | — | 12,391 | ||||||||
Other expenses | 3,847 | (1,029 | ) | 2,818 | |||||||
General and administrative expenses | 5,631 | (40 | ) | 5,591 | |||||||
Compensation expense(1) | 3,292 | — | 3,292 | ||||||||
Depreciation and amortization | 34,640 | (13,373 | ) | 21,267 | |||||||
Total expenses | 98,489 | (25,915 | ) | 72,574 | |||||||
Other income (loss) | — | ||||||||||
Other gain (loss), net | (15 | ) | 1,449 | 1,434 | |||||||
Realized gain on sales, net | 42,020 | — | 42,020 | ||||||||
Income (loss) before income tax benefit (expense) | 37,086 | (2,436 | ) | 34,650 | |||||||
Income tax benefit (expense) | 277 | (308 | ) | (31 | ) | ||||||
Net income (loss) | 37,363 | (2,744 | ) | 34,619 | |||||||
Net (income) loss attributable to noncontrolling interests | (225 | ) | 19 | (206 | ) | ||||||
Net income (loss) attributable to NorthStar Realty Europe Corp. common stockholders | $ | 37,138 | $ | (2,725 | ) | $ | 34,413 | ||||
Earnings (loss) per share (Note 3): | |||||||||||
Basic | $ | 0.70 | $ | 0.65 | |||||||
Diluted | $ | 0.68 | $ | 0.63 | |||||||
Weighted average number of shares: | |||||||||||
Basic | 52,125,685 | 52,125,685 | |||||||||
Diluted | 53,960,553 | 53,960,553 |
As Reported (Unaudited) | Trianon Sale Adjustments (Note 2) | Pro Forma | |||||||||
Revenues | |||||||||||
Rental income | $ | 105,349 | $ | (27,890 | ) | $ | 77,459 | ||||
Escalation income | 21,625 | (6,377 | ) | 15,248 | |||||||
Interest income | 1,706 | 413 | 2,119 | ||||||||
Other income | 1,243 | (234 | ) | 1,009 | |||||||
Total revenues | 129,923 | (34,088 | ) | 95,835 | |||||||
Expenses | |||||||||||
Properties - operating expenses | 31,119 | (10,375 | ) | 20,744 | |||||||
Interest expense | 25,844 | (5,237 | ) | 20,607 | |||||||
Transaction costs | 6,117 | — | 6,117 | ||||||||
Management fee, related party | 14,408 | — | 14,408 | ||||||||
Other expenses | 9,251 | (1,197 | ) | 8,054 | |||||||
General and administrative expenses | 7,384 | (116 | ) | 7,268 | |||||||
Compensation expense | 23,768 | — | 23,768 | ||||||||
Depreciation and amortization | 54,014 | (16,962 | ) | 37,052 | |||||||
Total expenses | 171,905 | (33,887 | ) | 138,018 | |||||||
Other income (loss) | — | ||||||||||
Other gain (loss), net | (12,863 | ) | 1,411 | (11,452 | ) | ||||||
Realized gain on sales, net | 22,367 | — | 22,367 | ||||||||
Income (loss) before income tax benefit (expense) | (32,478 | ) | 1,210 | (31,268 | ) | ||||||
Income tax benefit (expense) | 2,145 | (750 | ) | 1,395 | |||||||
Net income (loss) | (30,333 | ) | 460 | (29,873 | ) | ||||||
Net (income) loss attributable to noncontrolling interests | (792 | ) | (1 | ) | (793 | ) | |||||
Net income (loss) attributable to NorthStar Realty Europe Corp. common stockholders | $ | (31,125 | ) | $ | 459 | $ | (30,666 | ) | |||
Earnings (loss) per share (Note 3): | |||||||||||
Basic | $ | (0.57 | ) | $ | (0.54 | ) | |||||
Diluted | $ | (0.57 | ) | $ | (0.53 | ) | |||||
Weighted average number of shares: | |||||||||||
Basic | 55,073,383 | 55,073,383 | |||||||||
Diluted | 55,599,222 | 55,599,222 |
• | Exclude the balance sheet of the Trianon Tower |
• | Cash received from the sale of $363 million representing the sale price after repayment of mortgage financing and associated prepayment penalties ($384 million), the Preferred Equity Certificates and payment of transaction costs |
• | Retained a $6 million equity interest in Symbol Holdco C-T S.à. r.l in the form of preferred equity certificates with a 7% yield (the "Preferred Equity Certificates") |
• | The reclassification of the currency translation adjustment ("CTA") from a component of accumulated other comprehensive income ("OCI") |
Nine Months Ended September 30, 2018 | Year Ended December 31, 2017 | ||||||
Numerator: | |||||||
Net income (loss) | $ | 34,619 | $ | (29,873 | ) | ||
Net (income) loss attributable to Unit Holders noncontrolling interest | (206 | ) | 372 | ||||
Net income (loss) attributable to common stockholders and Unit Holders | $ | 34,413 | $ | (29,501 | ) | ||
Net (income) allocated to participating securities | (412 | ) | — | ||||
Net income (loss) allocated to common stockholders—basic and dilutive | $ | 34,001 | $ | (29,501 | ) | ||
Denominator: | |||||||
Weighted average shares of common stock - basic | 52,126 | 55,073 | |||||
Weighted average effect of dilutive shares | 1,835 | 526 | |||||
Weighted average shares of common stock - dilutive | 53,961 | 55,599 | |||||
Earnings (loss) per share: | |||||||
Basic | $ | 0.65 | $ | (0.54 | ) | ||
Diluted | $ | 0.63 | $ | (0.53 | ) |