Check out the webpages for American Golf Properties and CNL Lifestlye Properties. American owned 95 properties which I think NCT bought all and CNL may have already eliminated them from their webpage. Interesting though that CNL still owns or manages over 40 senior living facilities.
To no one's great surprise, the market for American golf courses took a drubbing in the Great Recession. The average course's sale price fell by 63 percent from 2006 to 2012, according to data collected by the real-estate firm Marcus & Millichap. But as the chart on this page suggests, that might have been the market's low point.
"Interest has really started to pick up," says Ray Demby, investment advisor at Marcus & Millichap's National Golf & Resort Properties Group. He figures his company will broker a record 25 sales in 2014—out of about 150 nationwide.
Who's buying golf courses these days? International money is a big part of it, with Chinese investors showing a special interest in California, Hawaii and the Washington, D.C., area. Texas-based course operator ClubCorp also has been busy. Over the summer, the now-publicly traded company (NYSE: MYCC) paid $265 million for Sequoia Golf, which owned and operated 50 clubs. ClubCorp now owns or manages more than 200 courses.
Many buyers are what brokers call "crossover" investors. That is, they're traditional real-estate investors attracted by the potential profit they can make on golf courses. Companies with ties to New York's Fortress Investment Group, for example, recently bought about 100 courses from American Golf and another 48 from CNL Lifestyle Properties.
"Say you have a building with a Walgreens as its tenant," says Keith Cubba, national director of the golf group at commercial real-estate brokerage firm Colliers International. "You're looking at about a 5-percent return on your initial investment plus maybe a 2-percent bump every few years. With a golf course, people who know what they're doing can make 20 to 30 percent."
Bob D., casadi,
Find a copy of the Golf Digest with Johnny Football on the cover. Read the article on page 62 and it show some of the numbers on the golf industry and why the courses are being bought. FIG is mentioned in that article.
I recall on one of the CCs--perhaps it was the "spin" CC--there were slides of an upscale golf country club with a dining room (ie restaurant), event space for weddings, and so forth. So, it appeared that Newcastle management was thinking about turning some golf properties into country clubs with multi-use facilities.
But, I do remember Wes stating that they were looking at something "interesting" for Newcastle, but he didn't disclose what it was. Very mysterious....
I started buying NCT in 2007. Although some of it cost in the teens early on, and some in the mid - low single digits, enough of it cost less than $1 that my average was a little under $3. So, I can't disagree with him. NCT has been berry berry good to me.
The article is very interesting however the author has written only 4 articles and is an individual investor with no know track record. According to his numbers NCT has been a gold mine.
Agree. Wes hinted on the last couple of conference calls that the golf acquisition was a good "trade", but not necessarily something NCT would pursue going forward. Which of course leaves us all guessing as to what they are going to do next. Fortress is a big shareholder, so hopefully they will be properly incentivized.
dean, they hinted in a previous CC that they would like to form a "sports" company with their ski properties and the golf courses.
I sure hope they have something other than just golf for their future strategy Dean. These guys have been very inventive over the past years so I hope they have another leading edge idea to make us shareholders money. I just don't see golf as that idea. Admittedly I don't know much about golf as a business but everything I've read indicates it has been in a downtrend for quite awhile now. Wes hinted at something else they were cooking up on the last cc that he wasn't ready to unveil yet. I'm hangin' on for that...........
NCT is sitting on large liquid assets pending reinvestment that defines its mission. Golf?....unless for a sub-rosa strategy on sale and development of luxury condo/ golf units.....golf fails to impress as the next "big" investment idea, no matter how dressed up.........the idea doesn't have financial legs unless there's land development connected. So...we wait for clarity....stock price fades.....but everyone knows this is not about golf, or sitting on cash and collecting $.12 per quarter. This is worth a strong buy especially at this price.
Sentiment: Strong Buy
I'm guessing that Newcastle's strategy going forward will be to invest the proceeds from the legacy securities portfolio into golf properties, and to ultimately become a pure play golf reit. NCT's current annual dividend yield exceeds 10%. As a pure play property reit, NCT should trade at a lower dividend yield, or in other words, at a higher stock price.
Sentiment: Strong Buy
I believe NCT receives no fees or other revenue streams for being the "parent company" as you put it. The spinoffs are standalone companies which are completely independent of NCT. I suggest you confirm with NCT investor relations.
Sentiment: Strong Buy
TO: tim_tylers_luck..........Thank you for your post. Other than paying a management fee to FIG, does NCT receive any royalties, fees, ongoing payments for being the parent company of the spin offs?.....e.g. what revenue stream is enjoyed by NCT for being parent company of previous and future spin offs?...Thank you.
does anyone have any insights to above question......or is it assumed all prior and future spin offs are independent via fiscal or governance? thank you.