Boston, MA 04/14/2014 (wallstreetpr) – The world is aging and the increasing number of the elderly is leading to demand for more health care facilities for the senior. Northstar Realty Finance Corp. (NYSE:NRF), which is a real estate company providing financing and leasing solutions, is keen to benefit from the looming opportunity in the healthcare sector, thanks to the expanding number of the elderly.
The company, which is valued at $4.8 billion, expects to expand its healthcare real estate business especially now that it has among its ranks an expert in the healthcare real estate business. The company added Jay Flaherty to its executive ranks about two months ago. Mr. Flaherty was the CEO at HCP Inc (NYSE:HCP), a company that is primarily in real estate business that serves the U.S. health care industry.
Northstar Realty Finance Corp. (NYSE:NRF) expects to benefit from the expertise, experience and industry network that Mr. Flaherty brings to its ranks to expand its investment in health care real estate market, which is a potentially lucrative industry.
Property acquisition
The company recently announced a deal to acquire more health care real estate assets to expand its existing portfolio, thanks Mr. Flaherty. Northstar Realty Finance Corp. (NYSE:NRF) is keen to stimulate revenue growth from this market.
The company announced a more than $1 billion acquisition of dozens of nursing home and senior housing buildings across 14 states. The acquisition involved 37 nursing homes and 43 senior housing buildings, majority of which are located in Florida. Following the acquisition, Northstar Realty Finance Corp. (NYSE:NRF) brought its real estate portfolio to 160 buildings, which are worth about $1.6 billion. And Mr. Flaherty said that the latest move to expand the company’s health care real estate portfolio was just the first one among a series of acquisitions that are expected to happen this year as the company moves to boost revenue.
Turnaround on the cards
Northstar Realty Finance Corp. (NYSE:NRF) is keen on returning big value to shareholders. The lackluster real estate industry means that the company has to look into specialty markets and healthcare real estate business seems to be the best option as the company can be seen upping its investment in the market. However, the company will need to stimulate revenue growth as it curbs expenses in order to achieve true turnaround.
