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New Senior Investment exploring strategic alternatives, shares jump

New Senior Investment Group shares gained more than 12% in trading on Feb. 23 after the company disclosed in its earnings release that it is considering "a full range" of strategic alternatives to maximize shareholder value.

J.P. Morgan Securities LLC is acting as financial adviser to the seniors-housing real estate investment trust, and Skadden Arps Slate Meagher & Flom LLP is serving as its legal adviser.

The company said there is no guarantee that the process will lead to a transaction.

On an earnings call, CEO Susan Givens said the strategic review comes as the company's stock continues to trade at a discount to its asset value, despite the strength of its portfolio and the attractiveness of the sector it operates in.

The measures that the company has taken thus far, including stock buybacks, a tender offer in 2016 and a selected asset sale strategy, "had not driven our stock price performance," Givens said, according to a transcript.

New Senior was spun off from Newcastle Investment Corp. in November 2014.