Colony NorthStar Credit Real Estate, Inc. (CLNC) Reports Q4 Loss of $0.29

February 28, 2019 4:10 PM EST
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Colony NorthStar Credit Real Estate, Inc. (NYSE: CLNC) reported Q4 EPS of ($0.29).

  • Fourth quarter 2018 GAAP net loss attributable to common stockholders of $(127.1) million, or $(1.00) per diluted share, and core earnings of $(37.3) million, or $(0.29) per diluted share. Excluding: (i) private equity secondaries mark-to-market adjustments of $34.8 million and $34.9 million deferred tax write-off and (ii) $10.2 million of realized losses from sale of property and resolutions of loans: core earnings of $42.6 million, or $0.33 per diluted share
  • Fiscal year 2018 GAAP net loss attributable to common stockholders of $(168.5) million, or $(1.41) per diluted share, and core earnings of $86.1 million, or $0.70 per diluted share. Excluding realized net losses, 2018 core earnings of $175.8 million, or $1.42 per diluted share
  • Undepreciated book value of $2.9 billion, or $21.81 per diluted share, as of December 31, 2018
  • Declared and paid a monthly cash dividend of $0.145 per share of Class A and Class B-3 common stock for October, November and December 2018. The dividend represents an annualized dividend of $1.74 per share of common stock, equating to an 9.8% annualized dividend yield based on the $17.70 closing price on February 26, 2019
  • Subsequent to quarter end, the Company’s Board of Directors declared a monthly cash dividend of $0.145 per share of common stock for January and February 2019
  • During the fourth quarter, allocated and initially funded $561 million and $531 million of capital, respectively. This includes a third European investment in a mixed-use development project
  • For the full year 2018, allocated approximately $2.2 billion of capital across 38 investments with an expected weighted average return on equity of approximately 12%
  • During the fourth quarter, completed a $125 million upsize under the accordion feature of the corporate revolving credit facility, increasing total commitments from $400 million to $525 million. Subsequent to quarter end, executed an additional $35 million upsize from $525 million to $560 million
  • During the fourth quarter, closed on a new master repurchase facility for $300 million, bringing total master repurchase capacity to approximately $2.1 billion at quarter end
  • During the fourth quarter, sold largest non-core operating real estate multi-tenant office portfolio by book value for a total sales price of $177 million
  • During the fourth quarter, recorded $77 million of loan loss provisions at CLNC ownership share related to four separate borrowers as a result of updates to the timing and likely range of outcomes achievable in connection with asset foreclosures and dispositions
  • During the fourth quarter, recorded a $70 million impairment as a result of potential outcomes related to the sale of our real estate private equity investments, which included a $35 million write-off of a deferred tax asset
  • Subsequent to quarter end, allocated and initially funded an additional $247 million and $199 million of capital, respectively
  • As of February 26, 2019, total corporate liquidity of approximately $278 million through cash-on-hand and availability under the corporate revolving credit facility

Kevin P. Traenkle, President and Chief Executive Officer of Colony Credit Real Estate commented, “2018 was a transformational year for Colony Credit Real Estate as we successfully completed our tri-party merger and listed on the NYSE stock exchange. We exceeded our new investment targets by committing over $2 billion of capital, significantly grew total assets with balance across investment type, collateral and geographic diversification, expanded into Europe, de-risked our exposure to retail and hospitality, and prudently increased our leverage. During the quarter, we continued to diversify our portfolio and leveraged Colony’s global infrastructure, international track record and best-in class deal-sourcing and asset management capabilities, including completing our third investment in Europe.”

Mr. Traenkle added, “We’re also actively rotating out of legacy investments that are low-yielding, non-core or that suffered recent credit events. We have decided that the best path forward is to accelerate the monetization of these assets, resulting in this quarter’s approximately $147 million of impairments. Hitting our stride and necessarily putting these low-yielding assets behind us, Colony Credit Real Estate and management are poised to redeploy this liquidity consistent with the successes evidenced throughout 2018, and importantly increase earnings power in 2019.”

For earnings history and earnings-related data on Colony NorthStar Credit Real Estate, Inc. (CLNC) click here.



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