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SNR - New Senior Investment Group


mg0516

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REIT w/10% yield.  90%+ private pay comprised of senior housing properties.  Spinoff 11/2014.  Stock hit from shareholder unfriendly equity raise, over leveraged (but manageable) and misaligned incentives with Fortress as external management.  Reflected in stock prices with large peers trading > 16x AFFO, >14x for mid peers and SNR <10.  Activist Levin Capital just took stake with goal of aligning incentive structure of Wes Edens (one of new Bucks owners) and Fortress.  10% yield while you wait for the equity to re-rate...

 

 

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