Business Context and Reporting Period
This Form 8-K is filed by Colony Credit Real Estate, Inc. (Ticker: CLNC) on October 11, 2019. The filing serves solely to provide historical financial statements for NorthStar Real Estate Income Trust, Inc. ("NorthStar I") and NorthStar Real Estate Income II, Inc. ("NorthStar II"), as well as pro forma financial statements for the Company. These documents relate to the "Combination" transaction completed on January 31, 2018, which merged NorthStar I and NorthStar II into Colony Credit Real Estate, Inc. and contributed specific asset portfolios from Colony Capital Operating Company, LLC and NRF RED REIT Corp.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it references the following exhibits containing the detailed financial data:
- NorthStar I: Audited consolidated financial statements for the years ended December 31, 2017, 2016, and 2015 (Exhibit 99.1).
- NorthStar II: Audited consolidated financial statements for the years ended December 31, 2017, 2016, and 2015 (Exhibit 99.2).
- Pro Forma: Unaudited pro forma condensed combined financial statements for the year ended December 31, 2018, giving effect to the Combination (Exhibit 99.3).
Material Changes
The filing does not report material changes in financial performance for the current reporting period. The document is a compliance filing to satisfy the requirement of providing historical and pro forma financial information regarding the 2018 Combination transaction. No operational or financial changes for the period ending October 11, 2019, are disclosed in this text.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, outlook, or discussion of risks and contingencies. The document is strictly limited to the submission of financial exhibits and the explanatory note regarding the 2018 Combination.
Investor Verification Checklist
- Review Exhibit 99.1 for the audited financial performance of NorthStar I for 2015-2017.
- Review Exhibit 99.2 for the audited financial performance of NorthStar II for 2015-2017.
- Review Exhibit 99.3 for the unaudited pro forma financial results of the combined entity for the year ended December 31, 2018.
- Verify the specific assets and liabilities contributed by Colony Capital Operating Company, LLC and NRF RED REIT Corp. as detailed in the Combination Agreement referenced in the Explanatory Note.