Northstar Realty Surges 20%, Company To Explore Strategic Alternatives

Land and Buildings, an activist investment firm, delivered a letter to NorthStar Asset Management Group Inc (NYSE: NSAM) back in January that called on the company to recombine with Northstar Realty Finance Corp (NYSE: NRF).

Related Link: NorthStar Asset Management Group Moves Higher After Activist Investor Details Why Shares Are 'Materially Undervalued'

Shares of Northstar Realty Finance surged higher by more than 20 percent on Thursday after the company announced it has formed a special committee and hired advisers to evaluate Land and Buildings' proposal and recombine with NorthStar Asset Management.

Northstar Realty also announced a series of strategic initiatives to maximize long-term shareholder value, including sales of all or some of its healthcare, manufacturing housing and other real estate assets, sales and/or accelerate repayments of some of its loans, sales of all or some of its real estate private equity fund interests.

Finally, Northstar Realty declared a cash dividend of $0.40 per share which represents an approximate payout ratio of 63 percent of its cash available for distribution in the fourth quarter.