Northstar Asset Management Group Inc
Northstar Asset Management — Investor Presentation (August 2014)
17 slides from Northstar Asset Management's investor presentation, Aug 11, 2014
Slide 1: Investor Presentation August 2014
Investor Presentation August 2014 399 Park Avenue, 18th Floor, New York, NY 10022 | 212.547.2600 | nsamgroup.com
Slide 2: Safe Harbor
1 Safe Harbor This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or E
Slide 3: Overview of NorthStar Asset Management (1)
Overview of NorthStar Asset Management(1) 2 . NorthStar Asset Management (NYSE: NSAM) is a global asset management firm that manages NorthStar Realty Finance Corp. (NYSE: NRF) and multiple public, non-traded REITs, with $17 billion of total assets . Scalable operating platform with limited capital n
Slide 4: Overview of NorthStar Asset Management (2)
Overview of NorthStar Asset Management(2) 3 . Three public, non-traded REIT (“NTR”) management contracts . Rapidly growing business with $1.8 billion of total capital raised to-date; $97 million raised in July 2014 across all current NTRs in offering phase . Targeting $2 billion NTR with RXR Realty
Slide 5: NRF Asset Management Contract
Annual Base Management Fee - Calculated through August 8, 2014: . NSAM will earn a quarterly incentive fee over return hurdles based on cash available for distribution ("CAD") per share at NRF, as follows: . 15% incentive fee payable when quarterly CAD exceeds $0.39 per share . 25% incentive fee pay
Slide 6: Non-Traded REIT Asset Management Contracts
5 Non-Traded REIT Asset Management Contracts(4) NorthStar Income NorthStar Healthcare NorthStar Income II Total Equity Offering Amount $1.1 billion $1.1 billion $1.65 billion Asset Management and Other Fees: Asset Management Fees 1.25% of Gross Assets 1.00% of Gross Assets 1.25% of Gross Assets Acqu
Slide 7: NSAM Q3 & Q4 2014 Annualized Projected CAD
Amount (in millions) NRF base management fees $150-$152 NTR asset management and other fees $58-$70 Net broker dealer fees $7-$8 2014 total net revenues $215–$230 less: cash G&A $60-$65 less: tax expense $31-$33 Q3 & Q4 2014 annualized projected CAD * $124–$132 Q3 & Q4 2014 annualized projected CAD
Slide 8: Initial $100 million of cash from spin-off and substantial free cash flow
Initial $100 million of cash from spin-off and substantial free cash flow 7 NSAM Q3 & Q4 2014 Annualized Projected CAD $4 billion Griffin-American Healthcare REIT II acquisition by NorthStar Realty . Investments . Stock Repurchases . Dividends (expected to be $0.40 annual per share) NorthStar Realty
Slide 9: NorthStar Asset Management Comparable P/E Multiples
NorthStar Asset Management Comparable(6) 8 P/E Multiples: . Fund flow volatility . No upside . Finite fund life . Low margins . High volatility . No base fee . Permanent life vehicle . Permanent/long duration contract . Low volatility . Upside . High margins NSAM
Slide 10: Overview of NorthStar Realty Finance
($ in millions) Owned commercial real estate $ 10,581 Commercial real estate loans 1,306 Assets underlying deconsolidated CRE loan CDOs 1,423 Commercial real estate securities 872 Total assets $ 14,183 Overview of NorthStar Realty Finance(7) 9 . Diversification across a broad spectrum of commercial
Slide 11: NorthStar Realty Growth Drivers
10 NorthStar Realty Growth Drivers (8) . Approximately $10 billion of owned real estate . Ability to acquire diverse set of property types . Best in class loan origination platform, including senior and mezzanine loans . Real Estate PE Investments: Limited buyer base in real estate private equity se
Slide 12: Non-Traded REIT Industry New Capital
11 Non-Traded REIT Industry New Capital(9) Capital raised in first half of 2014 $- $5 $10 $15 $20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Public Non-Traded REIT Industry 2004 - First Half of 2014 Fundraising ($ in billions)
Slide 13: Seasoned Executive Team
12 Seasoned Executive Team(10) Name Position Yrs of Exp Relevant Background David T. Hamamoto Chairman and Chief Executive Officer 30 . NorthStar Capital - Co-Founder . Goldman, Sachs & Co. - Co-Founder and Partner of Real Estate Principal Investment (Whitehall Funds) Albert Tylis President 16 . Bry
Slide 14: Appendix
13 Appendix . Reconciliation of NSAM Q3 & Q4 2014 Annualized Projected Cash Available for Distribution . Presentation Endnotes
Slide 15: Reconciliation of NSAM Q3 & Q4 2014 Annualized Projected CAD
14 Reconciliation of NSAM Q3 & Q4 2014 Annualized Projected CAD(11) * Equity based compensation includes compensation expense related to grants of NorthStar Realty stock in prior years that were split in connection with the spin-off of NSAM. Reconciliation of NSAM Projected Cash Available for Distri
Slide 16: Presentation Endnotes (continued)
16 Presentation Endnotes (continued) 5. NSAM Post-Spin 2014 Annualized Projected CAD a. NRF base management fee range due to timing of conversion of current outstanding exchangeable notes. b. NSAM CAD per share: i. Assumes $800 million of non-traded REIT capital raised during 2014. ii. CAD per share
Slide 17: Park Avenue, 18th Floor, New York, NY 10022 | 212.547.2600 | nsamgroup.com
17 399 Park Avenue, 18th Floor, New York, NY 10022 | 212.547.2600 | nsamgroup.com
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