Colony NorthStar reports $72.7M Q1 loss

Loss follows a $368M loss in Q4 2017

Colony Northstar Executive Chairman Thomas Barrack (Credit: Getty Images, Pixabay)
Colony Northstar Executive Chairman Thomas Barrack (Credit: Getty Images, Pixabay)

Colony NorthStar posted a net loss of $72.7 million in the first quarter of this year, according to documents released by the real estate investment trust on Thursday.

While the results were disappointing, they were a marked improvement from the $368 million net loss the REIT posted in the fourth quarter of last year.

Overall, Colony NorthStar posted a loss of $333.1 million for 2017. President and CEO Richard Saltzman called it a “difficult year” and pinned the loss on a difficult healthcare environment, lower occupancy in senior housing properties, and costs related to damage incurred during Hurricane Harvey.

In a statement, Saltzman touted the formation in January of Colony NorthStar Credit Real Estate — a debt and credit portfolio — as a major achievement in the first quarter. He also spoke about the company’s strategy moving forward, saying Colony would look to sell off non-core assets to reduce debt and make new investments.

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Colony NorthStar paid a dividend of 11 cents per share of Class A and B stock and raised around $2 billion in third-party capital in the first quarter. It monetized $60 million from debt and equity assets and has spent $279 million so far this year to buy back 48.2 million shares of Class A stock.

The public giant has an interest in almost 1,400 properties worldwide, mostly in U.S. markets, including Dallas, Chicago, Atlanta, and St. Louis. It also owns 12 properties in Los Angeles.

The news comes a year after Colony NorthStar was formed through the completion of a $19.9 billion merger between Colony Capital, NorthStar Realty Finance, and NorthStar Asset Management.

The firm has been in news for other reasons this week. Reports surfaced that Colony Northstar Executive Chairman Thomas Barrack was interviewed by special counsel Robert Mueller concerning his longtime friend, President Donald Trump. Barrack oversaw Trump’s inauguration committee and was reportedly interviewed months ago about former campaign manager Paul Manafort and Rick Gates. Barrack hired Gates to work on the committee.