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.
NCT data by YCharts