GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » NorthStar Realty Finance Corp (NYSE:NRFPRE.PFD) » Definitions » Financial Strength

NorthStar Realty Finance (NorthStar Realty Finance) Financial Strength : 0 (As of Sep. 2016)


View and export this data going back to 2014. Start your Free Trial

What is NorthStar Realty Finance Financial Strength?

NorthStar Realty Finance has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

NorthStar Realty Finance did not have earnings to cover the interest expense. NorthStar Realty Finance's debt to revenue ratio for the quarter that ended in Sep. 2016 was 3.94. As of today, NorthStar Realty Finance's Altman Z-Score is 0.19.


Competitive Comparison of NorthStar Realty Finance's Financial Strength

For the REIT - Retail subindustry, NorthStar Realty Finance's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


NorthStar Realty Finance's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, NorthStar Realty Finance's Financial Strength distribution charts can be found below:

* The bar in red indicates where NorthStar Realty Finance's Financial Strength falls into.



NorthStar Realty Finance Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

NorthStar Realty Finance's Interest Expense for the months ended in Sep. 2016 was $-114.30 Mil. Its Operating Income for the months ended in Sep. 2016 was $-79.58 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $7,627.67 Mil.

NorthStar Realty Finance's Interest Coverage for the quarter that ended in Sep. 2016 is

NorthStar Realty Finance did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

NorthStar Realty Finance's Debt to Revenue Ratio for the quarter that ended in Sep. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(191.175 + 7627.669) / 1986.876
=3.94

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

NorthStar Realty Finance has a Z-score of 0.19, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.19 is in distress zone. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


NorthStar Realty Finance  (NYSE:NRFPRE.PFD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

NorthStar Realty Finance has the Financial Strength Rank of 0.


NorthStar Realty Finance Financial Strength Related Terms

Thank you for viewing the detailed overview of NorthStar Realty Finance's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


NorthStar Realty Finance (NorthStar Realty Finance) Business Description

Traded in Other Exchanges
N/A
Address
Northstar Realty Finance Corp is a Maryland corporation formed in October 2003. The Company is an internally managed REIT, and is a diversified commercial real estate investment and asset management company. NorthStar Realty Finance Limited Partnership holds all of the Company's assets and conducts its operation directly or indirectly. The Company invests in multiple asset classes across commercial real estate. These investments are in the form of acquiring real estate, originating or acquiring senior or subordinate loans, as well as CRE investments, both in the United States and internationally. The asset management business is focused on raising and managing capital on a fee basis from alternative sources, which includes non-traded real estate investment trusts, and sponsoring other companies through joint ventures and partnerships, such as RXR Realty, LLC, or RXR Realty. The Company's commercial real estate debt business is focused on originating, structuring, acquiring and managing senior and subordinate debt investments secured by commercial real estate, including first mortgage loans, subordinate interests, mezzanine loans, credit tenant loans and other loans, including preferred equity interests in borrowers who own such properties. The Company competes with many third parties engaged in real estate investment activities including publicly-traded REITs, non-traded REITs, insurance companies, commercial and investment banking firms, private equity funds. The Company is subject to supervision and regulation by state and federal governmental authorities and is subject to various laws and judicial and administrative decisions imposing various requirements and restrictions.

NorthStar Realty Finance (NorthStar Realty Finance) Headlines