6-17-13 North Star (NRF)

— Original Sender: ****** DELETE, DAIWA CAPITAL MKTS —

—> Daiwa New Issue Credit Color: NorthStar Realty Finance <—

* REIT focused on commercial real estate assets, debt, and asset  management.

* PF Cash    $685mm    PF Debt    $3996mm    LTM EBITDA   $402mm

LTM FCF    $(295)mm  Debt/Cap   65%        Mkt Cap     $1650mm

* NRF has been growing portfolio aggressively from $7.4bn at ye to $8.7bn 1Q13. Portfolio comprised of CRE Debt (31%), real estate (29%), CRE sec (28%), and asset mgmt (12%). Within real estate have been acquiring heavily in mfg homes which accnt for nearly half (14% total port). CRE sec are primarily CMBS. Raised $474mm 1Q13 from common & pfd stk offerings. 80%+ of debt is secured. Dividend steadily increasing.

* Our assigned spread —>L+700<—  Src: Bloomberg, Co Filings

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