The company said its board had unanimously approved the plan to spinoff subsidiary by distributing shares. New Senior will be a publicly traded real estate investment trust (REIT), primarily targeting senior housing-related investments.
"The spinoff of New Senior from Newcastle will be a key step towards optimizing the future growth of each standalone company. As two separately traded public companies, both Newcastle and New Senior will be better positioned to capitalize on respective market opportunities and further enhance shareholder value creation," CEO Kenneth Riis said in a statement.
By midmorning, shares had added 2.3% to $5.Must read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. NCT data by YCharts STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.