NorthStar Real Estate Income Trust Announces Closing of its $1.1 Billion Offering

NEW YORK, July 1, 2013 /PRNewswire/ -- NorthStar Real Estate Income Trust, Inc.  ("NorthStar Income") announced today that it successfully completed its primary offering period having raised $1.1 billion in aggregate gross offering proceeds, including over $528 million of capital raised year to date, through its dealer manager, NorthStar Realty Securities, LLC. 

As of June 30, 2013, NorthStar Income's portfolio consists of over $1.2 billion in principal commitments of predominantly directly originated commercial real estate debt investments, which as of the same date produced an overall weighted average leveraged expected current yield on invested equity of approximately 13.3%.

Daniel R. Gilbert, chief executive officer and president, commented "We are extremely pleased with the successful completion of our primary offering and investor support for this initial NorthStar-sponsored product.  We are especially pleased to be the market's first widely accepted non-traded REIT focused mainly on commercial real estate debt and with the market's recognition of the benefits derived from our affiliation with our sponsor NorthStar Realty Finance Corp.  We are well positioned to continue to execute our business plan and look forward to continuing to drive value for our stockholders."

About NorthStar Real Estate Income Trust, Inc. (NorthStar Income)

NorthStar Income is a REIT formed to originate, invest in, and manage a diversified portfolio of commercial real estate debt, securities and select equity investments.  The portfolio is diversified across a variety of underlying commercial property types and geographic locations and is secured primarily by U.S.-based collateral.  For more information, visit www.northstarreit.com/income.

The overall weighted average leveraged expected current yield of approximately 13.3% does not reflect the fees and expenses of NorthStar Income and does not represent the distribution rate paid by NorthStar Income to its investors. 

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words like "seek," "believe," "will," and similar expressions.  These statements are based on NorthStar Income's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward looking statements; NorthStar Income can give no assurance that its expectations will be attained.  Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from actual results.  Variations of assumptions and results may be material.  Factors that could cause actual results to differ materially from NorthStar Income's expectations include, but are not limited to, ability to execute on the business plan and drive value, income-producing ability, impact of any losses on cash flows and returns, market rental rates and property level cash flows, changes in economic conditions generally and the real estate and debt markets specifically, ability to maintain a qualified diversified portfolio, impact of local economics, ability to successfully implement an exit strategy, availability of investment opportunities, availability of capital, ability to achieve targeted returns, generally accepted accounting principles and policies and rules applicable to REITs.  Factors that could cause actual results to differ materially from those in the forward-looking statements are specified in NorthStar Income's Annual Report on Form 10-K for the year ended December 31, 2012 and its other filings with the Securities and Exchange Commission.  Such forward-looking statements speak only as of the date of this press release.  NorthStar Income expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

SOURCE NorthStar Real Estate Income Trust, Inc.