Market Overview

Colony Capital Announces Second Quarter 2018 Financial Results

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Colony Capital, Inc. (NYSE:CLNY) and subsidiaries (collectively, "Colony
Capital," or the "Company") today announced its financial results for
the second quarter ended June 30, 2018 and the Company's Board of
Directors declared a third quarter 2018 cash dividend of $0.11 per share
of Class A and Class B common stock.

Second Quarter 2018 Financial Results and Highlights

  • Second quarter 2018 net loss attributable to common stockholders of
    $(92.8) million, or $(0.19) per share, and Core FFO of $93.5 million,
    or $0.18 per share
  • The Company's Board of Directors declared and paid a second quarter
    2018 dividend of $0.11 per share of Class A and B common stock
  • During the second quarter 2018, the Company raised approximately $1.8
    billion of third-party capital (including amounts related to
    affiliates) from institutional clients
    • Digital Colony, the Company's digital real estate infrastructure
      vehicle established in partnership with Digital Bridge, raised
      $932 million during the second quarter 2018 and had an aggregate
      $3.0 billion of committed capital as of June 30, 2018, inclusive
      of a $229 million capital commitment by certain subsidiaries of
      the Company
    • The Company raised $469 million of third-party capital for its
      investment in AccorInvest, the property arm of AccorHotels
    • The Company raised $175 million of third-party capital in the
      industrial platform
    • The Company raised $95 million of third-party co-investment
      capital for a Strategic Other Equity and Debt investment
  • The Company completed over $440 million of Other Equity and Debt asset
    monetizations, with net equity proceeds of approximately $295 million
  • The Company invested $81 million within vehicles that earn investment
    management economics and are classified as additions to the Strategic
    Other Equity and Debt segment
  • The Company repurchased approximately 12.5 million shares of its Class
    A common stock at an average price of $5.80 per share, or $73 million,
    resulting in aggregate year-to-date 2018 repurchases of approximately
    54.8 million shares at an average price of $5.82 per share, or $319
    million
  • The Company changed its name from Colony NorthStar, Inc. to Colony
    Capital, Inc. and its ticker symbol on the New York Stock Exchange
    from "CLNS" to "CLNY"
  • Subsequent to the second quarter 2018:
    • The Company redeemed all of the shares of its 8.5% Series D
      cumulative redeemable perpetual preferred stock for $200 million,
      resulting in year-to-date preferred stock redemptions and common
      stock repurchases of $519 million
    • The Company monetized or was under contract to sell over $500
      million of Other Equity and Debt investments with estimated net
      equity proceeds of $310 million, which would bring year-to-date
      asset monetizations to $1.0 billion with net equity proceeds of
      approximately $650 million
    • The Company refinanced approximately $500 million of consolidated
      debt in the Hospitality Real Estate segment extending the fully
      extended maturity date from 2019 to 2025
    • As of August 6, 2018, Digital Colony had an aggregate $3.3 billion
      of capital commitments, inclusive of a hard cap limit of $250
      million capital commitment by certain subsidiaries of the Company
    • The Company received an additional commitment of €250 million from
      a third-party institutional investor to increase the investment in
      AccorInvest
    • As of August 6, 2018, The Company has approximately $1.1 billion
      of liquidity through cash-on-hand and availability under its
      revolving credit facility

For more information and a reconciliation of net income/(loss) to common
stockholders to Core FFO, NOI and/or EBITDA, please refer to the
non-GAAP financial measure definitions and tables at the end of this
press release.

"We made significant progress this quarter in growing our investment
management business," said Richard B. Saltzman, President and Chief
Executive Officer. "With a focus on sector specific, compelling
strategies in various geographies, we raised approximately $1.8 billion
of third-party capital during the quarter thereby increasing investment
management AUM to $28.2 billion and total AUM to $43.0 billion. At the
same time, accelerating sales of non-core assets is helping us achieve
our goals of simplification and becoming more ‘balance sheet-lite.'"

Second Quarter 2018 Operating Results and Investment Activity by
Segment

Colony Capital holds investment interests in six reportable segments:
Healthcare Real Estate; Industrial Real Estate; Hospitality Real Estate;
CLNC; Other Equity and Debt; and Investment Management.

Healthcare Real Estate

As of June 30, 2018, the consolidated healthcare portfolio consisted of
413 properties: 192 senior housing properties, 108 medical office
properties, 99 skilled nursing facilities and 14 hospitals. The
Company's equity interest in the consolidated Healthcare Real Estate
segment was approximately 71% as of June 30, 2018. The healthcare
portfolio earns rental and escalation income from leasing space to
various healthcare tenants and operators. The leases are for fixed terms
of varying length and generally provide for rent and expense
reimbursements to be paid in monthly installments. The healthcare
portfolio also generates operating income from healthcare properties
operated through management agreements with independent third-party
operators, predominantly through structures permitted by the REIT
Investment Diversification and Empowerment Act of 2007 ("RIDEA").

During the second quarter 2018, this segment's net loss attributable to
common stockholders was $(14.4) million, Core FFO was $18.6 million and
consolidated NOI was $73.9 million. In the second quarter 2018,
healthcare same store portfolio sequential quarter to quarter comparable
revenue decreased (0.8)% and net operating income decreased (0.9)%.
Compared to the same period last year, second quarter 2018 same store
revenue decreased (3.8)% and net operating income decreased (0.2)%. The
revenue decrease was primarily attributable to one operator/tenant
transitioning from RIDEA to a triple-net lease structure. As a result,
the Company no longer records gross revenues and certain expenses for
such properties and now records net rental revenue which is lower than
the gross revenues under a RIDEA structure, but similar to the net
profits of the RIDEA structure. The healthcare same store portfolio is
defined as properties in operation throughout the full periods presented
under the comparison and included 413 properties in the sequential
quarter to quarter and year to year comparisons. Properties acquired,
disposed or held for sale during these periods are excluded for the same
store portfolio and same store results exclude termination fee revenue
and certain non-recurring bad debt expense.

The following table presents NOI and certain operating metrics by
property types in the Company's Healthcare Real Estate segment:

     
Consolidated CLNY OP Same Store
NOI Share NOI(1) Consolidated NOI(2)   Occupancy %(3)   TTM Lease Coverage(4)
($ In millions) Q2 2018 Q2 2018 Q2 2018   Q1 2018 Q2 2018   Q1 2018 3/31/18   12/31/17
Senior Housing - Operating $ 16.8 $ 11.9 $ 17.4 $ 17.5 86.8 % 86.4 % N/A N/A
Medical Office Buildings 13.7 9.7 13.7 13.3 82.6 % 83.2 % N/A N/A
Triple-Net Lease:
Senior Housing 14.5 10.3 15.5 15.5 82.3 % 83.2 % 1.4x 1.4x
Skilled Nursing Facilities 24.1 17.1 26.0 26.9 82.2 % 82.7 % 1.2x 1.2x
Hospitals   4.8   3.4   4.8   4.9 59.6 % 55.3 % 3.3x 3.5x
Healthcare Total $ 73.9 $ 52.4 $ 77.4 $ 78.1
___________________________________________________
(1)   CLNY OP Share NOI represents second quarter 2018 Consolidated NOI
multiplied by CLNY OP's ownership interest as of June 30, 2018.
(2) Same Store Consolidated NOI excludes $3.2 million of termination fee
revenue in Q1 2018 and excludes $3.6 million of non-recurring bad
debt expense in Q2 2018.
(3) Occupancy % for Senior Housing - Operating represents average during
the presented quarter, MOB's is as of last day in the quarter and
for other types represents average during the prior quarter.
(4) Represents the ratio of the tenant's/operator's EBITDAR to cash rent
payable to the Company's Healthcare Real Estate segment on a
trailing twelve month basis.
 

Industrial Real Estate

As of June 30, 2018, the consolidated industrial portfolio consisted of
392 primarily light industrial buildings totaling 47.5 million rentable
square feet across 20 major U.S. markets and was 93% leased. During the
second quarter 2018, the Company raised $175 million of new third-party
capital. As a result, the Company's equity interest in the consolidated
Industrial Real Estate segment decreased to approximately 37% as of June
30, 2018 from 40% as of March 31, 2018. Total third-party capital
commitments were approximately $1.4 billion compared to cumulative
balance sheet contributions of $749 million as of June 30, 2018. The
Company continues to own a 100% interest in the related operating
platform. The Industrial Real Estate segment is comprised of and
primarily invests in light industrial properties in infill locations in
major U.S. metropolitan markets generally targeting multi-tenanted
warehouses less than 250,000 square feet.

During the second quarter 2018, this segment's net income attributable
to common stockholders was $0.8 million, Core FFO was $14.2 million and
consolidated NOI was $49.1 million. In the second quarter 2018,
industrial same store portfolio sequential quarter to quarter comparable
rental revenue increased 0.2% and net operating income increased 1.0%.
Compared to the same period last year, second quarter 2018 same store
rental revenue increased 2.0% and net operating income increased 3.8%.
The Company's industrial same store portfolio consisted of 304
buildings. The same store portfolio is defined once a year at the
beginning of the current calendar year and includes buildings that were
owned, stabilized and held-for-use throughout the entirety of both the
current and prior calendar years. Properties acquired, disposed or
held-for-sale after the same store portfolio is determined are excluded.
Stabilized properties are defined as properties owned for more than one
year or are greater than 90% leased. Same store NOI excludes lease
termination fee revenue.

The following table presents NOI and certain operating metrics in the
Company's Industrial Real Estate segment:

     
Consolidated CLNY OP Same Store
NOI Share NOI (1) Consolidated NOI   Leased %(2)
($ In millions) Q2 2018 Q2 2018 Q2 2018   Q1 2018 Q2 2018   Q1 2018
Industrial $ 49.1 $ 18.3 $ 35.5 $ 35.1 93.9 % 95.1 %
___________________________________________________
(1)   CLNY OP Share NOI represents second quarter 2018 Consolidated NOI
multiplied by CLNY OP's ownership interest as of June 30, 2018.
(2) Leased % represents the last day of the presented quarter.
 

Asset Acquisitions, Dispositions and Financing

During the second quarter 2018, the consolidated industrial portfolio
acquired 15 industrial buildings totaling approximately 1.9 million
square feet and land for development for approximately $258 million and
disposed of one non-core building totaling approximately 0.1 million
square feet for approximately $3 million.

Subsequent to the second quarter 2018, the consolidated industrial
portfolio acquired five industrial buildings totaling approximately 0.5
million square feet for approximately $43 million.

During the second quarter 2018, the consolidated industrial portfolio
closed on a $60 million fixed rate loan with an interest rate of 4.21%
and term of 15 years; and increased the capacity of its line of credit
from $200 million to $400 million.

Hospitality Real Estate

As of June 30, 2018, the consolidated hospitality portfolio consisted of
167 properties: 97 select service properties, 66 extended stay
properties and 4 full service properties. The Company's equity interest
in the consolidated Hospitality Real Estate segment was approximately
94% as of June 30, 2018. The hospitality portfolio consists primarily of
premium branded select service hotels and extended stay hotels located
mostly in major metropolitan markets, of which a majority are affiliated
with top hotel brands. The select service hospitality portfolio,
referred to as the THL Hotel Portfolio, which the Company acquired
through consensual transfer during the third quarter 2017, is not
included in the Hospitality Real Estate segment and is included in the
Other Equity and Debt segment.

During the second quarter 2018, this segment's net income attributable
to common stockholders was $5.8 million, Core FFO was $43.2 million and
consolidated EBITDA was $86.0 million. Compared to the same period last
year, second quarter 2018 hospitality same store portfolio revenue
increased 3.5% and EBITDA increased 5.2%, primarily due to higher
occupancy and average daily rates driven by stronger corporate demand
and uplift from recent renovations. The Company's hotels typically
experience seasonal variations in occupancy which may cause quarterly
fluctuations in revenues and therefore sequential quarter to quarter
revenue and EBITDA result comparisons are not meaningful. The
hospitality same store portfolio is defined as hotels in operation
throughout the full periods presented under the comparison and included
167 hotels in the year to year comparison.

Asset Financing

Subsequent to the second quarter 2018, the Company refinanced
approximately $500 million of consolidated and CLNY OP share of debt in
the Hospitality Real Estate segment, extending the fully extended
maturity date from 2019 to 2025. As a result, the earliest fully
extended maturity in the hospitality portfolio is 2020 and the weighted
average remaining years to fully extended maturity is 4.3 years.

The following table presents EBITDA and certain operating metrics by
brands in the Company's Hospitality Real Estate segment:

     
Same Store
Consolidated CLNY OP Share         Avg. Daily Rate   RevPAR(3)
EBITDA (1) EBITDA(2)

Consolidated
EBITDA

Occupancy %(4) (In dollars)(4) (In dollars)(4)
($ In millions) Q2 2018 Q2 2018 Q2 2018   Q2 2017 Q2 2018   Q2 2017 Q2 2018   Q2 2017 Q2 2018   Q2 2017
Marriott $ 66.3 $ 62.5 $ 66.3 $ 62.8 78.3 % 77.0 % $ 131 $ 129 $ 102 $ 99
Hilton 14.8 14.0 14.8 13.9 83.9 % 82.0 % 135 131 113 107
Other   4.9   4.6   4.9   5.0 86.3 % 84.2 %   138   139   119   117
Total/W.A. $ 86.0 $ 81.1 $ 86.0 $ 81.7 79.6 % 78.2 % $ 132 $ 130 $ 105 $ 102
___________________________________________________
(1)   Q2 2018 Consolidated EBITDA excludes a FF&E reserve contribution
amount of $10.0 million.
(2) CLNY OP Share EBITDA represents second quarter 2018 Consolidated
EBITDA multiplied by CLNY OP's ownership interest as of June 30,
2018.
(3) RevPAR, or revenue per available room, represents a hotel's total
guestroom revenue divided by the room count and the number of days
in the period being measured.
(4) For each metric, data represents average during the presented
quarter.
 

Colony Credit Real Estate, Inc. ("CLNC")

On February 1, 2018, Colony Credit Real Estate, Inc., a leading
commercial real estate credit REIT, announced the completion of the
combination of a select portfolio of the Company's assets and
liabilities from the Other Equity and Debt segment with NorthStar Real
Estate Income Trust, Inc. ("NorthStar I") and NorthStar Real Estate
Income II, Inc. ("NorthStar II") in an all-stock transaction. In
connection with the closing, CLNC completed the listing of its Class A
common stock on the New York Stock Exchange under the ticker symbol
"CLNC." The combination created a permanent capital vehicle, externally
managed by the Company, with approximately $4.9 billion in assets,
excluding securitization trust liabilities, and $3.1 billion in equity
value as of June 30, 2018. The Company owns 48.0 million shares, or 37%,
of CLNC and earns an annual base management fee of 1.5% on stockholders'
equity and an incentive fee of 20% of CLNC's Core Earnings over a 7%
hurdle rate. During the second quarter 2018, this segment's net income
attributable to common stockholders was $5.1 million and Core FFO was
$14.8 million. Please refer to the CLNC's earnings release and financial
supplemental furnished on Form 8-K filed with the SEC and its Quarterly
Report on Form 10-Q to be filed with the SEC for additional detail.

Other Equity and Debt

The Company owns a diversified group of strategic and non-strategic real
estate and real estate-related debt and equity investments. Strategic
investments include our 11% interest in NorthStar Realty Europe Corp.
(NYSE:NRE) and other investments for which the Company acts as a
general partner or manager ("GP Co-Investments") and receives various
forms of investment management economics on the related third-party
capital. Non-strategic investments are composed of those investments the
Company does not intend to own for the long term including net leased
assets; real estate loans; other real estate equity including the THL
Hotel Portfolio and the Company's interest in Albertsons; limited
partnership interests in third-party sponsored real estate private
equity funds; and multiple classes of commercial real estate ("CRE")
securities. During the second quarter 2018, this segment's aggregate net
income attributable to common stockholders was $31.3 million and Core
FFO was $47.8 million.

Other Equity and Debt Segment Asset Acquisitions
and Dispositions

During the second quarter 2018, the Company invested approximately $81
million in various strategic investments. During the second quarter
2018, the Company sold or received payoffs in aggregate of over $440
million with net equity proceeds of approximately $295 million from
various other real estate debt and equity investments, including $105
million from the Other Real Estate Equity category; $115 million from
the Real Estate Debt category; and $75 million in the Real Estate
Private Equity and Securities category.

Subsequent to the second quarter 2018, the Company monetized or was
under contract to sell over $500 million of investments with estimated
net equity proceeds of $310 million, including $122 million from the Net
Lease Real Estate Equity category and $133 million from the Real Estate
Private Equity category, resulting in year-to-date Other Equity and Debt
asset monetizations of $1.0 billion with net equity proceeds of $650
million.

As of June 30, 2018, the undepreciated carrying value of assets and
equity within the Other Equity and Debt segment were $3.8 billion and
$2.4 billion, respectively, down from $4.3 billion and $2.7 billion,
respectively, as of March 31, 2018.

 
CLNY OP Share
Undepreciated Carrying Value
June 30, 2018   March 31, 2018
($ In millions) Assets   Equity Assets   Equity

Strategic:

GP co-investments $ 701 $ 422 $ 665 $ 400
Interest in NRE   75   75   74   74
Strategic Subtotal 776 497 739 474
 

Non-Strategic:

Other Real Estate Equity & Albertsons 1,749 968 2,039 1,104
Real Estate Debt 443 419 660 615
Net Lease Real Estate Equity 585 250 583 239
Real Estate Private Equity Funds and CRE Securities   221   221   304   304
Non-Strategic Subtotal   2,998   1,858   3,586   2,262
Total Other Equity and Debt $ 3,774 $ 2,355 $ 4,325 $ 2,736
 

Investment Management

The Company's Investment Management segment includes the business and
operations of managing capital on behalf of third-party investors
through closed and open-end private funds, non-traded and traded real
estate investment trusts and registered investment companies. As of June
30, 2018, the Company had $28.2 billion of third-party AUM compared to
$27.5 billion as of March 31, 2018. The increase was primarily
attributable to capital raised in Digital Colony, the industrial
platform, the Company's share of AccorInvest, and another Strategic
Other Equity and Debt investment, partially offset by asset sales. As of
June 30, 2018, Fee-Earning Equity Under Management ("FEEUM") was $17.1
billion compared to $16.2 billion as of March 31, 2018. During the
second quarter 2018, this segment's aggregate net loss attributable to
common stockholders was $(47.1) million and Core FFO was $34.1 million.
During the second quarter 2018, this segment's net loss included a $60
million writeoff of an intangible asset related to the NorthStar trade
name as a result of the name change of the Company from Colony
NorthStar, Inc. to Colony Capital, Inc. and $13 million of impairments
to interests in non-wholly owned Real Estate Investment Management
platforms. These intangible asset writeoffs and impairments are added
back to Core FFO, which also included approximately $2 million of
unrealized carried interest from the industrial platform.

Digital Real Estate Infrastructure

During the second quarter 2018, Digital Colony raised $932 million and
had an aggregate $3.0 billion of committed capital as of June 30, 2018,
inclusive of a $229 million capital commitment by certain subsidiaries
of the Company.

As of August 6, 2018, Digital Colony had an aggregate $3.3 billion of
capital commitments, inclusive of a hard cap limit of $250 million
capital commitment by certain subsidiaries of the Company.

Combination of S2K Financial and NorthStar
Securities

During the second quarter 2018, the Company completed the previously
announced combination of S2K Financial Holdings, LLC with the Company's
broker-dealer, NorthStar Securities, creating a new company known as
Colony S2K Holdings LLC ("Colony S2K").

Assets Under Management ("AUM")

As of June 30, 2018 and March 31, 2018, the Company had $43 billion of
AUM:

   
June 30, 2018 March 31, 2018
($ In billions) Amount  

% of
Grand Total

Amount  

% of
Grand Total

 
Balance Sheet (CLNY OP Share):
Healthcare $ 4.1 9.4 % $ 4.1 9.5 %
Industrial 1.2 2.8 % 1.3 3.0 %
Hospitality 3.9 9.1 % 3.9 9.3 %
Other Equity and Debt 3.8 8.8 % 4.3 10.0 %
CLNC: Investments contributed to CLNC(1)   1.8 4.2 %   1.8 4.2 %
Balance Sheet Subtotal 14.8 34.3 % 15.4 36.0 %
 
Investment Management:
Institutional Funds 10.0 23.3 % 9.8 22.8 %
Retail Companies 3.6 8.4 % 3.7 8.6 %
Colony Credit Real Estate (NYSE:CLNC)(2) 3.1 7.2 % 3.1 7.2 %
NorthStar Realty Europe (NYSE:NRE) 2.1 4.9 % 2.2 5.1 %
Non-Wholly Owned REIM Platforms(3)   9.4 21.9 %   8.7 20.3 %
Investment Management Subtotal 28.2 65.7 % 27.5 64.0 %
       
Grand Total $ 43.0 100.0 % $ 42.9 100.0 %
 
___________________________________________________
(1)   Represents the Company's 37% ownership share of CLNC's total
pro-rata share of assets, excluding securitization trust
liabilities, of $4.9 billion and $4.9 billion as of June 30, 2018
and March 31, 2018, respectively.
(2) Represents 3rd party 63% ownership share of CLNC's total pro-rata
share of assets, excluding securitization trust liabilities, of $4.9
billion and $4.9 billion as of June 30, 2018 and March 31, 2018,
respectively.
(3) REIM: Real Estate Investment Management
 

Liquidity and Financing

As of August 6, 2018, the Company had approximately $1.1 billion of
liquidity through cash-on-hand and availability under its revolving
credit facility.

On July 2, 2018, the Company redeemed all of the shares of its 8.5%
Series D cumulative redeemable perpetual preferred stock for $200
million.

Common Stock and Operating Company Units

As of August 6, 2018, the Company had approximately 490.5 million shares
of Class A and B common stock outstanding and the Company's operating
partnership had approximately 30.4 million operating company units
outstanding held by members other than the Company or its subsidiaries.

During the second quarter 2018, the Company repurchased approximately
12.5 million shares of its Class A common stock at an average price of
$5.80 per share, or $73 million, resulting in aggregate year-to-date
2018 repurchases of approximately 54.8 million shares at an average
price of $5.82 per share, or $319 million.

In May 2018, the Company's Board of Directors authorized the repurchase
of up to an additional $300 million of its outstanding Class A common
stock. This program is in addition to the $300 million share repurchase
program the Company announced in February 2018, which was completed in
the second quarter 2018. The May 2018 repurchase program will expire in
12 months from the authorization date, unless otherwise extended by the
Company's Board of Directors, and as of August 6, 2018, $282 million
remained.

Common and Preferred Dividends

On May 8, 2018, the Company's Board of Directors declared a quarterly
cash dividend of $0.11 per share of Class A and Class B common stock for
the second quarter of 2018, which was paid on July 16, 2018 to
respective stockholders of record on June 29, 2018. The Board of
Directors also declared cash dividends with respect to each series of
the Company's cumulative redeemable perpetual preferred stock each in
accordance with terms of such series as follows: (i) with respect to
each of the Series B stock - $0.515625 per share and Series E stock -
$0.546875 per share, such dividends to be paid on August 15, 2018 to the
respective stockholders of record on August 10, 2018 and (ii) with
respect to each of the Series G stock - $0.46875 per share, Series H
stock - $0.4453125 per share, Series I stock - $0.446875 per share and
Series J stock - $0.4453125 per share, such dividends were paid on July
16, 2018 to the respective stockholders of record on July 10, 2018. The
Company redeemed in its entirety the outstanding Series D cumulative
redeemable perpetual preferred stock and paid all accrued cash
dividends, in accordance of the terms of the redemption, related to the
Series D cumulative redeemable perpetual preferred stock on July 2, 2018.

On August 2, 2018, the Company's Board of Directors declared a quarterly
cash dividend of $0.11 per share of Class A and Class B common stock for
the third quarter of 2018, which will be paid on October 15, 2018 to
respective stockholders of record on September 28, 2018. The Board of
Directors also declared cash dividends with respect to each series of
the Company's cumulative redeemable perpetual preferred stock each in
accordance with terms of such series as follows: (i) with respect to
each of the Series B stock - $0.515625 per share and Series E stock -
$0.546875 per share, such dividends to be paid on November 15, 2018 to
the respective stockholders of record on November 9, 2018 and (ii) with
respect to each of the Series G stock - $0.46875 per share, Series H
stock - $0.4453125 per share, Series I stock - $0.446875 per share and
Series J stock - $0.4453125 per share, such dividends to be paid on
October 15, 2018 to the respective stockholders of record on October 10,
2018.

Contingent Consideration

As part of the internalization transaction of Colony Capital, LLC in
April 2015, the purchase price was allocated between upfront
consideration and contingent consideration. The contingent consideration
was based on the achievement of three performance targets measured over
a two to three year period including 1) cumulative earnings through June
30, 2018, 2) cumulative non-real estate fundraising through June 30,
2017 and 3) cumulative real estate fundraising through June 30, 2018. As
of June 30, 2018, only the cumulative real estate fundraising target was
met and, as a result, the Company expects to issue approximately 2.0
million common shares and operating company units with an estimated
value of $12.5 million to senior management personnel. This represents
approximately 12% of the maximum original value of the total contingent
consideration. In addition, approximately $6.4 million in cumulative
accrued and escrowed dividends payable on the contingent consideration
shares and units will be paid to senior management personnel.

Non-GAAP Financial Measures and Definitions

Assets Under Management ("AUM")

Assets for which the Company and its affiliates provide investment
management services, including assets for which the Company may or may
not charge management fees and/or performance allocations. AUM is based
on reported gross undepreciated carrying value of managed investments as
reported by each underlying vehicle at June 30, 2018. AUM further
includes a) uncalled capital commitments and b) includes the Company's
pro-rata share of each affiliate non wholly-owned real estate investment
management platform's assets as presented and calculated by the
affiliate. Affiliates include the co-sponsored digital real estate
infrastructure vehicle, RXR Realty LLC, SteelWave, LLC, American
Healthcare Investors and Hamburg Trust. The Company's calculations of
AUM may differ materially from the calculations of other asset managers,
and as a result, this measure may not be comparable to similar measures
presented by other asset managers.

CLNY OP

The operating partnership through which the Company conducts all of its
activities and holds substantially all of its assets and liabilities.
CLNY OP share excludes noncontrolling interests in investment entities.

Fee-Earning Equity Under Management ("FEEUM")

Equity for which the Company and its affiliates provides investment
management services and derives management fees and/or performance
allocations. FEEUM generally represents a) the basis used to derive
fees, which may be based on invested equity, stockholders' equity, or
fair value pursuant to the terms of each underlying investment
management agreement and b) the Company's pro-rata share of fee bearing
equity of each affiliate as presented and calculated by the affiliate.
Affiliates include the co-sponsored digital real estate infrastructure
vehicle, RXR Realty LLC, SteelWave, LLC, American Healthcare Investors
and Hamburg Trust. The Company's calculations of FEEUM may differ
materially from the calculations of other asset managers, and as a
result, this measure may not be comparable to similar measures presented
by other asset managers.

Funds From Operations ("FFO") and Core Funds
From Operations ("Core FFO")

The Company calculates funds from operations ("FFO") in accordance with
standards established by the Board of Governors of the National
Association of Real Estate Investment Trusts, which defines FFO as net
income or loss calculated in accordance with GAAP, excluding
extraordinary items, as defined by GAAP, gains and losses from sales of
depreciable real estate and impairment write-downs associated with
depreciable real estate, plus real estate-related depreciation and
amortization, and after similar adjustments for unconsolidated
partnerships and joint ventures. Included in FFO are gains and losses
from sales of assets which are not depreciable real estate such as loans
receivable, investments in unconsolidated joint ventures as well as
investments in debt and other equity securities, as applicable.

The Company computes core funds from operations ("Core FFO") by
adjusting FFO for the following items, including the Company's share of
these items recognized by its unconsolidated partnerships and joint
ventures: (i) gains and losses from sales of depreciable real estate
within the Other Equity and Debt segment, net of depreciation,
amortization and impairment previously adjusted for FFO; (ii) gains and
losses from sales of businesses within the Investment Management segment
and impairment write-downs associated with the Investment Management
segment; (iii) equity-based compensation expense; (iv) effects of
straight-line rent revenue and expense; (v) amortization of acquired
above- and below-market lease values; (vi) amortization of deferred
financing costs and debt premiums and discounts; (vii) unrealized fair
value gains or losses and foreign currency remeasurements; (viii)
acquisition-related expenses, merger and integration costs; (ix)
amortization and impairment of finite-lived intangibles related to
investment management contracts and customer relationships; (x) gain on
remeasurement of consolidated investment entities and the effect of
amortization thereof; (xi) non-real estate depreciation and
amortization; (xii) change in fair value of contingent consideration;
and (xiii) tax effect on certain of the foregoing adjustments. Beginning
with the first quarter of 2018, the Company's Core FFO from its interest
in Colony Credit Real Estate (NYSE:CLNC) and NorthStar Realty Europe
(NYSE:NRE) represented its percentage interest multiplied by CLNC's
Core Earnings and NRE's Cash Available for Distribution ("CAD"),
respectively. Refer to CLNC's and NRE's respective filings with the SEC
for the definition and calculation of Core Earnings and CAD.

FFO and Core FFO should not be considered alternatives to GAAP net
income as indications of operating performance, or to cash flows from
operating activities as measures of liquidity, nor as indications of the
availability of funds for our cash needs, including funds available to
make distributions. FFO and Core FFO should not be used as supplements
to or substitutes for cash flow from operating activities computed in
accordance with GAAP. The Company's calculations of FFO and Core FFO may
differ from methodologies utilized by other REITs for similar
performance measurements, and, accordingly, may not be comparable to
those of other REITs.

The Company uses FFO and Core FFO as supplemental performance measures
because, in excluding real estate depreciation and amortization and
gains and losses from property dispositions, it provides a performance
measure that captures trends in occupancy rates, rental rates, and
operating costs. The Company also believes that, as widely recognized
measures of the performance of REITs, FFO and Core FFO will be used by
investors as a basis to compare its operating performance with that of
other REITs. However, because FFO and Core FFO exclude depreciation and
amortization and capture neither the changes in the value of the
Company's properties that resulted from use or market conditions nor the
level of capital expenditures and leasing commissions necessary to
maintain the operating performance of its properties, all of which have
real economic effect and could materially impact the Company's results
from operations, the utility of FFO and Core FFO as measures of the
Company's performance is limited. FFO and Core FFO should be considered
only as supplements to GAAP net income as a measure of the Company's
performance.

Net Operating Income ("NOI") / Earnings Before
Interest, Tax, Depreciation and Amortization ("EBITDA")

NOI for healthcare and industrial segments represents total property and
related income less property operating expenses, adjusted for the
effects of (i) straight-line rental income adjustments; (ii)
amortization of acquired above- and below-market lease adjustments to
rental income; and (iii) other items such as adjustments for the
Company's share of NOI of unconsolidated ventures.

EBITDA for the hospitality real estate segment represents net income
from continuing operations of that segment excluding the impact of
interest expense, income tax expense or benefit, and depreciation and
amortization.

The Company believes that NOI and EBITDA are useful measures of
operating performance of its respective real estate portfolios as they
are more closely linked to the direct results of operations at the
property level. NOI also reflects actual rents received during the
period after adjusting for the effects of straight-line rents and
amortization of above- and below- market leases; therefore, a comparison
of NOI across periods better reflects the trend in occupancy rates and
rental rates of the Company's properties.

NOI and EBITDA exclude historical cost depreciation and amortization,
which are based on different useful life estimates depending on the age
of the properties, as well as adjust for the effects of real estate
impairment and gains or losses on sales of depreciated properties, which
eliminate differences arising from investment and disposition decisions.
This allows for comparability of operating performance of the Company's
properties period over period and also against the results of other
equity REITs in the same sectors. Additionally, by excluding corporate
level expenses or benefits such as interest expense, any gain or loss on
early extinguishment of debt and income taxes, which are incurred by the
parent entity and are not directly linked to the operating performance
of the Company's properties, NOI and EBITDA provide a measure of
operating performance independent of the Company's capital structure and
indebtedness.

However, the exclusion of these items as well as others, such as capital
expenditures and leasing costs, which are necessary to maintain the
operating performance of the Company's properties, and transaction costs
and administrative costs, may limit the usefulness of NOI and EBITDA.
NOI may fail to capture significant trends in these components of U.S.
GAAP net income (loss) which further limits its usefulness.

NOI should not be considered as an alternative to net income (loss),
determined in accordance with U.S. GAAP, as an indicator of operating
performance. In addition, the Company's methodology for calculating NOI
involves subjective judgment and discretion and may differ from the
methodologies used by other comparable companies, including other REITs,
when calculating the same or similar supplemental financial measures and
may not be comparable with other companies.

Earnings Before Interest, Tax, Depreciation,
Amortization and Rent ("EBITDAR")

Represents earnings before interest, taxes, depreciation, amortization
and rent for facilities accruing to the tenant/operator of the property
(not the Company) for the period presented. The Company uses EBITDAR in
determining TTM Lease Coverage for triple-net lease properties in its
Healthcare Real Estate segment. EBITDAR has limitations as an analytical
tool. EBITDAR does not reflect historical cash expenditures or future
cash requirements for facility capital expenditures or contractual
commitments. In addition, EBITDAR does not represent a property's net
income or cash flow from operations and should not be considered an
alternative to those indicators. The Company utilizes EBITDAR as a
supplemental measure of the ability of the Company's operators/tenants
to generate sufficient liquidity to meet related obligations to the
Company.

TTM Lease Coverage

Represents the ratio of EBITDAR to recognized cash rent for owned
facilities on a trailing twelve month basis. TTM Lease Coverage is a
supplemental measure of a tenant's/operator's ability to meet their cash
rent obligations to the Company. However, its usefulness is limited by,
among other things, the same factors that limit the usefulness of
EBITDAR.

The information related to the Company's tenants/operators that is
provided in this press release has been provided by, or derived from
information provided by, such tenants/operators. The Company has not
independently verified this information and has no reason to believe
that such information is inaccurate in any material respect. The Company
is providing this data for informational purposes only.

Second Quarter 2018 Conference Call

The Company will conduct a conference call to discuss the financial
results on Wednesday, August 8, 2018 at 7:00 a.m. PT / 10:00 a.m. ET. To
participate in the event by telephone, please dial (877) 407-4018 ten
minutes prior to the start time (to allow time for registration).
International callers should dial (201) 689-8471. The call will also be
broadcast live over the Internet and can be accessed on the Public
Shareholders section of the Company's website at www.clny.com.
A webcast of the call will be available for 90 days on the Company's
website.

For those unable to participate during the live call, a replay will be
available starting August 8, 2018, at 10:00 a.m. PT / 1:00 p.m. ET,
through August 15, 2018, at 8:59 p.m. PT / 11:59 p.m. ET. To access the
replay, dial (844) 512-2921 (U.S.), and use passcode 13681028.
International callers should dial (412) 317-6671 and enter the same
conference ID number.

Supplemental Financial Report

A Second Quarter 2018 Supplemental Financial Report is available on the
Company's website at www.clny.com.
This information has also been furnished to the U.S. Securities and
Exchange Commission in a Current Report on Form 8-K.

About Colony Capital, Inc.

Colony Capital, Inc. (NYSE:CLNY) is a leading global investment
management firm with assets under management of $43 billion. The Company
manages capital on behalf of its stockholders, as well as institutional
and retail investors in private funds, non-traded and traded real estate
investment trusts and registered investment companies. Colony Capital
has significant holdings in: (a) the healthcare, industrial and
hospitality property sectors; (b) Colony Credit Real Estate, Inc. (NYSE: CLNC) and NorthStar Realty Europe Corp. (NYSE:NRE), which are both
externally managed by subsidiaries of Colony Capital; and (c) various
other equity and debt investments. Colony Capital is headquartered in
Los Angeles with over 400 employees in offices located across 19 cities
in ten countries. For additional information regarding the Company and
its management and business, please refer to www.clny.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as "may," "will," "should," "expects," "intends,"
"plans," "anticipates," "believes," "estimates," "predicts," or
"potential" or the negative of these words and phrases or similar words
or phrases which are predictions of or indicate future events or trends
and which do not relate solely to historical matters. You can also
identify forward-looking statements by discussions of strategy, plans or
intentions.

Forward-looking statements involve known and unknown risks,
uncertainties, assumptions and contingencies, many of which are beyond
the Company's control, and may cause the Company's actual results to
differ significantly from those expressed in any forward-looking
statement. Factors that might cause such a difference include, without
limitation, our failure to achieve anticipated synergies in and benefits
of the completed merger among NorthStar Asset Management Group Inc.,
Colony Capital, Inc. and NorthStar Realty Finance Corp., the impact of
changes to organizational structure and employee composition, the timing
and pace of growth of the Company's Industrial platform, the performance
of the Company's investment in Colony Credit Real Estate, Inc., our
ability to create future permanent capital vehicles under our
management, whether the Company will realize any anticipated benefits
from the Digital Bridge partnership, the Company's ability to simplify
its business and become more balance sheet-lite, including with a focus
on sector specific, compelling strategies in various geographies, the
Company's portfolio composition, Colony Capital's liquidity, including
its ability to generate liquidity by more accelerated sales of non-core
assets and businesses, whether the Company will complete or sponsor any
compelling investment opportunities under a predominantly third-party
capital model, the Company's ability to grow its investment management
business, the Company's expected taxable income and net cash flows,
excluding the contribution of gains, our ability to grow the dividend at
all in the future; the impact to the Company of the management agreement
amendments with NorthStar Healthcare Income, Inc. and NorthStar Realty
Europe Corp., whether Colony Capital will be able to maintain its
qualification as a REIT for U.S. federal income tax purposes, the timing
of and ability to deploy available capital, the timing of and ability to
complete repurchases of Colony Capital's stock, Colony Capital's ability
to maintain inclusion and relative performance on the RMZ, Colony
Capital's leverage, including the Company's ability to reduce debt and
the timing and amount of borrowings under its credit facility, whether
the Company will benefit from the combination of its broker-dealer
business with S2K Financial, increased interest rates and operating
costs, adverse economic or real estate developments in Colony Capital's
markets, Colony Capital's failure to successfully operate or lease
acquired properties, decreased rental rates, increased vacancy rates or
failure to renew or replace expiring leases, defaults on or non-renewal
of leases by tenants, the impact of economic conditions on the borrowers
of Colony Capital's commercial real estate debt investments and the
commercial mortgage loans underlying its commercial mortgage backed
securities, adverse general and local economic conditions, an
unfavorable capital market environment, decreased leasing activity or
lease renewals, and other risks and uncertainties detailed in our
filings with the U.S. Securities and Exchange Commission ("SEC"). All
forward-looking statements reflect the Company's good faith beliefs,
assumptions and expectations, but they are not guarantees of future
performance. Additional information about these and other factors can be
found in Colony Capital's reports filed from time to time with the SEC.

Colony Capital cautions investors not to unduly rely on any
forward-looking statements. The forward-looking statements speak only as
of the date of this press release. Colony Capital is under no duty to
update any of these forward-looking statements after the date of this
press release, nor to conform prior statements to actual results or
revised expectations, and Colony Capital does not intend to do so.

 
COLONY CAPITAL, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
 
 

June 30, 2018
(unaudited)

  December 31, 2017
Assets
Cash and cash equivalents $ 480,230 $ 921,822
Restricted cash 398,981 471,078
Real estate, net 14,254,108 14,464,258
Loans receivable, net ($0 and $45,423 at fair value, respectively) 1,791,889 3,223,762
Investments in unconsolidated ventures ($217,098 and $363,901 at
fair value, respectively)
2,491,342 1,655,239
Securities, at fair value 144,421 383,942
Goodwill 1,534,561 1,534,561
Deferred leasing costs and intangible assets, net 610,853 852,872
Assets held for sale ($52,123 and $49,498 at fair value,
respectively)
637,802 781,630
Other assets ($25,206 and $10,150 at fair value, respectively) 431,222 444,968
Due from affiliates   44,308     51,518  
Total assets $ 22,819,717   $ 24,785,650  
Liabilities
Debt, net ($0 and $44,542 at fair value, respectively) $ 9,994,115 $ 10,827,810
Accrued and other liabilities ($110,513 and $212,267 at fair value,
respectively)
679,658 898,161
Intangible liabilities, net 173,702 191,109
Liabilities related to assets held for sale 256,477 273,298
Due to affiliates ($0 and $20,650 at fair value, respectively) 9,383 23,534
Dividends and distributions payable 86,656 188,202
Preferred stock redemptions payable   200,000      
Total liabilities   11,399,991     12,402,114  
Commitments and contingencies
Redeemable noncontrolling interests 33,523 34,144
Equity
Stockholders' equity:
Preferred stock, $0.01 par value per share; $1,436,605 and
$1,636,605 liquidation preference, respectively; 250,000 shares
authorized; 57,464 and 65,464 shares issued and outstanding,
respectively
1,407,495 1,606,966
Common stock, $0.01 par value per share
Class A, 949,000 shares authorized; 489,764 and 542,599 shares
issued and outstanding, respectively
4,898 5,426
Class B, 1,000 shares authorized; 708 and 736 shares issued and
outstanding, respectively
7 7
Additional paid-in capital 7,616,918 7,913,622
Distributions in excess of earnings (1,443,717 ) (1,165,412 )
Accumulated other comprehensive income   23,930     47,316  
Total stockholders' equity 7,609,531 8,407,925
Noncontrolling interests in investment entities 3,393,981 3,539,072
Noncontrolling interests in Operating Company   382,691     402,395  
Total equity   11,386,203     12,349,392  
Total liabilities, redeemable noncontrolling interests and equity $ 22,819,717   $ 24,785,650  
 
 
COLONY CAPITAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
 
  Three Months Ended June 30,
2018   2017
Revenues
Property operating income $ 590,638 $ 500,531
Interest income 44,183 111,263
Fee income 39,924 54,319
Other income   14,854     13,259  
Total revenues   689,599     679,372  
Expenses
Property operating expense 320,674 253,717
Interest expense 153,309 140,260
Investment, servicing and commission expense 25,951 13,740
Transaction costs 2,641 2,440
Depreciation and amortization 137,896 153,111
Provision for loan loss 13,933 1,067
Impairment loss 69,834 12,761
Compensation expense 55,159 80,759
Administrative expenses   25,790     30,145  
Total expenses   805,187     688,000  
Other income (loss)
Gain on sale of real estate assets 42,702 15,190
Other gain (loss), net 28,798 (23,850 )
Earnings from investments in unconsolidated ventures   1,875     122,394  
Income (loss) before income taxes (42,213 ) 105,106
Income tax benefit   584     86  
Net income (loss) from continuing operations (41,629 ) 105,192
Loss from discontinued operations   (219 )    
Net income (loss) (41,848 ) 105,192
Net income (loss) attributable to noncontrolling interests:
Redeemable noncontrolling interests 1,873 720
Investment entities 27,420 23,800
Operating Company   (5,728 )   2,330  
Net income (loss) attributable to Colony Capital, Inc. (65,413 ) 78,342
Preferred stock redemption (3,995 ) 5,448
Preferred stock dividends   31,388     34,339  
Net income (loss) attributable to common stockholders $ (92,806 ) $ 38,555  
Basic earnings (loss) per share
Income (loss) from continuing operations per basic common share $ (0.19 ) $ 0.07  
Net income (loss) per basic common share $ (0.19 ) $ 0.07  
Diluted earnings (loss) per share
Income (loss) from continuing operations per diluted common share $ (0.19 ) $ 0.07  
Net income (loss) per diluted common share $ (0.19 ) $ 0.07  
Weighted average number of shares
Basic   488,676     544,023  
Diluted   488,676     544,023  
 
 
COLONY CAPITAL, INC.
FUNDS FROM OPERATIONS AND CORE FUNDS FROM OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 

Three Months Ended
June 30, 2018

Net loss attributable to common stockholders $ (92,806 )
Adjustments for FFO attributable to common interests in Operating
Company and common stockholders:
Net loss attributable to noncontrolling common interests in
Operating Company
(5,728 )
Real estate depreciation and amortization 140,599
Impairment of real estate 9,522
Gain from sales of real estate (42,750 )
Less: Adjustments attributable to noncontrolling interests in
investment entities
  (29,471 )
FFO attributable to common interests in Operating Company and common
stockholders
  (20,634 )
 
Additional adjustments for Core FFO attributable to common interests
in Operating Company and common stockholders:
Gains and losses from sales of depreciable real estate within the
Other Equity and Debt segment, net of depreciation, amortization and
impairment previously adjusted for FFO (1)
29,987
Gains and losses from sales of businesses within the Investment
Management segment and impairment write-downs associated with the
Investment Management segment
16,437
Equity-based compensation expense 10,033
Straight-line rent revenue and expense (4,489 )
Change in fair value of contingent consideration 8,750
Amortization of acquired above- and below-market lease values, net 433
Amortization of deferred financing costs and debt premiums and
discounts
21,634
Unrealized fair value gains and foreign currency remeasurements (23,971 )
Acquisition and merger-related transaction costs 3,549
Merger integration costs (2) 8,472
Amortization and impairment of investment management intangibles 66,550
Non-real estate depreciation and amortization 2,100
Gain on remeasurement of consolidated investment entities and the
effect of amortization thereof
1,875
Deferred tax benefit, net (1,475 )
Preferred share redemption gain (3,995 )
Less: Adjustments attributable to noncontrolling interests in
investment entities
  (21,769 )
Core FFO attributable to common interests in Operating Company and
common stockholders
$ 93,487  
 
FFO per common share / common OP unit (3) $ (0.04 )
FFO per common share / common OP unit—diluted (4) $ (0.04 )
Core FFO per common share / common OP unit (3) $ 0.18  
Core FFO per common share / common OP unit—diluted (4) $ 0.18  
Weighted average number of common OP units outstanding used for FFO
and Core FFO per common share and OP unit (3)
  525,587  
Weighted average number of common OP units outstanding used for FFO
per common share and OP unit—diluted (3)(4)
  525,587  
Weighted average number of common OP units outstanding used for Core
FFO per common share and OP unit—diluted (3)(4)
  553,749  
__________
(1)   Net of $2.5 million CLNY OP share of depreciation, amortization and
impairment charges previously adjusted to calculate FFO and Core
Earnings, a non-GAAP measure used by Colony Capital, Inc. prior to
its internalization of the manager.
(2) Merger integration costs represent costs and charges incurred during
the integration of Colony, NSAM and NRF. These integration costs are
not reflective of the Company's core operating performance and the
Company does not expect to incur these costs subsequent to the
completion of the merger integration. The majority of integration
costs consist of severance, employee costs of those separated or
scheduled for separation, system integration and lease terminations.
(3) Calculated based on weighted average shares outstanding including
participating securities and assuming the exchange of all common OP
units outstanding for common shares.
(4) For the three months ended June 30, 2018, included in the
calculation of diluted Core FFO per share is the effect of adding
back $4.5 million of interest expense associated with convertible
senior notes, 25.4 million weighted average dilutive common share
equivalents for the assumed conversion of the convertible senior
notes, and 2.1 million performance stock units, which are subject to
both a service condition and market condition. Such interest
expense, weighted average dilutive common share equivalents, and
performance stock units are excluded for the calculation of diluted
FFO as the effect would be antidilutive.
 

COLONY CAPTITAL, INC.
RECONCILIATION OF NET INCOME (LOSS)
TO NOI/EBITDA

The following tables present: (1) a reconciliation of property and other
related revenues less property operating expenses for properties in our
Healthcare, Industrial, and Hospitality segments to NOI or EBITDA and
(2) a reconciliation of such segments' net income (loss) for the three
months ended June 30, 2018 to NOI or EBITDA:

NOI and EBITDA were determined as follows:

 
Three Months Ended June 30, 2018

(In thousands)

Healthcare   Industrial   Hospitality
Total revenues $ 145,419 $ 72,477 $ 229,373
Straight-line rent revenue and amortization of above- and
below-market lease intangibles
(1,580 ) (2,554 ) (6 )
Interest income (62 )
Other income (68 )
Property operating expenses (1) (69,983 ) (20,483 ) (143,321 )
Compensation expense (1)       (300 )    
NOI or EBITDA $ 73,856   $ 49,078   $ 85,978  
_________
(1)   For healthcare and hospitality, property operating expenses includes
property management fees paid to third parties. For industrial,
there are direct costs of managing the portfolio which are included
in compensation expense.
 

The following table presents a reconciliation of net income (loss) from
continuing operations of the healthcare, industrial and hospitality
segments to NOI or EBITDA of the respective segments.

 
Three Months Ended June 30, 2018

(In thousands)

Healthcare   Industrial   Hospitality
Net income (loss) from continuing operations $ (20,080 ) $ 4,668 $ 6,771
Adjustments:
Straight-line rent revenue and amortization of above- and
below-market lease intangibles
(1,580 ) (2,554 ) (6 )
Interest income (62 )
Interest expense 45,179 10,856 36,494
Transaction, investment and servicing costs 3,110 60 3,546
Depreciation and amortization 38,229 32,482 35,925
Impairment loss 1,982 174
Compensation and administrative expense 2,196 3,416 1,598
Other (gain) loss, net 4,465 162
Other income (68 )
Income tax (benefit) expense   355     38     1,556  
NOI or EBITDA $ 73,856   $ 49,078   $ 85,978  
 

The following table summarizes Q2 2018 net income (loss) from continuing
operations by segment:

         

(In thousands)

Net income (Loss)
From Continuing
Operations

Healthcare $ (20,080 )
Industrial 4,668
Hospitality 6,771
CLNC 5,413
Other Equity and Debt 61,853
Investment Management (48,700 )
Amounts Not Allocated to Segments   (51,554 )
Total Consolidated $ (41,629 )
 

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