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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001005477-07-003089.txt : 20070518
<SEC-HEADER>0001005477-07-003089.hdr.sgml : 20070518
<ACCEPTANCE-DATETIME>20070518155614
ACCESSION NUMBER:		0001005477-07-003089
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070518
FILED AS OF DATE:		20070518
DATE AS OF CHANGE:		20070518

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NEWCASTLE INVESTMENT CORP
		CENTRAL INDEX KEY:			0001175483
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				810559116
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		C/O FORTRESS
		STREET 2:		1251 AVENUE OF THE AMERICAS 16TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10020
		BUSINESS PHONE:		2127986100

	MAIL ADDRESS:	
		STREET 1:		C/O FORTRESS
		STREET 2:		1251 AVENUE OF THE AMERICAS 16TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10020

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			NARDONE RANDAL A
		CENTRAL INDEX KEY:			0001124465

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31458
		FILM NUMBER:		07864784

	BUSINESS ADDRESS:	
		STREET 1:		1251 AVENUE OF THE AMERICAS 16FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10020
		BUSINESS PHONE:		2127986100

	MAIL ADDRESS:	
		STREET 1:		1345 AVENUE OF THE AMERICAS, 46TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10105
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar123.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-05-18</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001175483</issuerCik>
        <issuerName>NEWCASTLE INVESTMENT CORP</issuerName>
        <issuerTradingSymbol>NCT</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001124465</rptOwnerCik>
            <rptOwnerName>NARDONE RANDAL A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1></rptOwnerStreet1>
            <rptOwnerStreet2>1345 AVENUE OF THE AMERICAS</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10105</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Secretary</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>27.75</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-18</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>162450</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-04-11</value>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2017-04-11</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common stock, par value $0.01</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>293550</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>293550</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Fortress Operating Entity I L.P.</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">On April 11, 2007, the issuer automatically granted 456,000 options to Fortress Operating Entity I L.P. (&quot;FOE I,&quot; which was formerly known as Fortress Investment Holdings LLC) pursuant to the terms of the issuer's Nonqualified Stock Option and Incentive Award Plan.  Initial option grant was for shares equal to 10% of the number of shares issued by the issuer in a common stock offering that settled on April 11, 2007.  Mr. Nardone may be deemed to be the beneficial owner of these options by virtue of his beneficial ownership of a portion of FOE I.  Mr. Nardone disclaims beneficial ownership of any derivative securities (and the underlying shares of common stock) of the issuer held by FOE I except to the extent of his pecuniary interest therein.
(Continued in Footnote 2)</footnote>
        <footnote id="F2">(Continued From Footnote 1)
On May 17, 2007, FOE I assigned a portion of these options to various persons, each of whom assumed the options for no value.  Amount of options listed represents the portion of options retained by FOE I after taking into account all such assignments.</footnote>
        <footnote id="F3">Options were fully vested on date of initial grant from the issuer to FOE I and became exercisable in thirty equal monthly installments beginning on the first of the month following the month in which the options were granted (indicated in the &quot;date exercisable&quot; column).</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Randal A. Nardone</signatureName>
        <signatureDate>2007-05-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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