NRE - Northstar Realty Europe: Rising Asset Value And Falling Expenses
Northstar Realty Europe (NRE) is delivering an attractive shareholder return from a portfolio of prime assets in strong European markets. Second Quarter results (press release, 10Q, Financial Supplement, and Conference call) showed strong leasing performance, ample coverage of the $0.15/share dividend with $0.22/share of cash flow, and aggressive share buyback. A discount of 20% to NAV would fairly reflect NRE’s above average expense level and would imply a target price of about $16.50/share. If NRE builds a longer record of adding value and profitably recycling capital then a