New Residential Investment Corp. (NYSE: NRZ; “New Residential”
or the “Company”) today reported the following information for the
second quarter ended June 30, 2020:
SECOND QUARTER 2020 FINANCIAL
HIGHLIGHTS:
- GAAP Net Loss of ($8.9) million, or ($0.02) per diluted common
share(1)
- Core Earnings of $140.2 million, or $0.34 per diluted common
share(1)(2)
- Common Dividend of $41.6 million, or $0.10 per common
share(1)
- Book Value per common share of $10.77(1)
- $1,013.2 million of cash as of June 30, 2020
2Q 2020
1Q 2020
Summary Operating Results:
GAAP Net Loss per Diluted Common
Share(1)
($0.02)
($3.86)
GAAP Net Loss
($8.9) million
($1,602.3) million
Non-GAAP Results:
Core Earnings per Diluted Common
Share(1)
$0.34
$0.48
Core Earnings(2)
$140.2 million
$198.4 million
NRZ Common Dividend:
Common Dividend per Share(1)
$ 0.10
$0.05
Common Dividend
$41.6 million
$20.8 million
“While March and April presented a number of significant
challenges due to the COVID-19 pandemic, we made great progress on
our road to recovery in Q2’20,” said Michael Nierenberg, Chairman,
Chief Executive Officer and President of New Residential. “During
the second quarter, we delivered on a number of key initiatives
that we believe continue to position our Company for success in the
quarters ahead. With over $1 billion of cash on our balance sheet,
our capitalization is as strong as ever. This capital provides us
with additional financial flexibility and creates a pool of cash to
deploy opportunistically. We significantly reduced our mark to
market exposure; today, approximately 95% of our investment
portfolio is financed with non daily mark to market financing(3).
This was also an excellent quarter for our mortgage company, which
generated over $200 million in pre-tax income, an increase of 127%
quarter over quarter. We expect our origination and servicing
businesses to continue providing significant profitability as we
execute on our recapture goals, expand our market share and realize
further efficiencies from our investments in technology.”
Mr. Nierenberg continued, “During these challenging times, our
operating company employees have continued to do a wonderful job
providing solutions for our homeowners and customers. While we
still have a lot of work to do, we are proud of the accomplishments
and progress we made during Q2’20. Looking ahead, our focus remains
on growing our operating businesses and prudently deploying capital
in this low rate environment. We believe executing our strategy
will help grow book value and create strong earnings for our
shareholders in the near and long term.”
SECOND QUARTER 2020 COMPANY
HIGHLIGHTS:
- Origination
- Segment pre-tax income of $181.2 million
- Origination production of $8.3 billion in unpaid principal
balance (“UPB”)
- Direct to Consumer volume of $3.0 billion UPB, an increase of
44% QoQ
- Servicing
- Segment pre-tax net income of $24.3 million
- Grew servicing portfolio to $277.6 billion in UPB, an increase
of 1% QoQ and 74% YoY
- Mortgage Servicing Rights (“MSRs”)
- MSR portfolio totaled approximately $610 billion UPB as of June
30, 2020, compared to $648 billion UPB as of March 31, 2020(4)
- Completed one securitization of Fannie Mae MSRs of $265.5
million with $43.1 billion UPB of collateral
- Residential Securities
- Purchased $4.2 billion face value of agency securities
- Sold $285.9 million face value of non-agency securities
- Residential Loans
- Sold $726.3 million face value of residential loans
- Completed two securitizations with total collateral of $609.3
million UPB (one reperforming loan and one Non-Qualified Mortgage
loan)
- Leverage
- Overall leverage of 2.1x compared to 1.7x as of March 31,
2020(5)
- Additional Updates Post Q2’20(6)
- As of July 20, 2020, approximately 95% of investment portfolio
financing is non daily mark to market financing(3)
- Completed a non-performing loan securitization with $545.6
million UPB of collateral
- Sold $117.2 million face value of non-agency residential
securities
(1)
Per common share calculations of GAAP Net
Loss and Core Earnings are based on 415,661,782 weighted average
diluted shares during the quarter ended June 30, 2020; and
415,589,155 weighted average diluted shares during the quarter
ended March 31, 2020. Per share calculations of Common Dividend are
based on 415,744,518 basic shares outstanding as of June 30, 2020;
415,649,214 basic shares outstanding as of March 31, 2020. Per
common share calculations for Book Value are based on 415,744,518
basic common shares outstanding as of June 30, 2020.
(2)
Core Earnings is a non-GAAP measure. For a
reconciliation of Core Earnings to GAAP Net Income, as well as an
explanation of this measure, please refer to Non-GAAP Measures and
Reconciliation to GAAP Net Income below.
(3)
“Non daily mark to market financing”
refers to financings of MSRs, servicer advances, residential loans,
non-agency residential securities and consumer loans that either do
not contain a daily mark to market feature or contain a margin
“holiday.” Excludes financings of agency securities.
(4)
Includes excess and full MSRs.
(5)
Represents recourse leverage. Excludes
non-recourse leverage, including outstanding consumer debt,
servicer advance debt, $46.1 million and $56.9 million of full MSR
debt for June 30, 2020 and March 31, 2020 respectively, SAFT 2013-1
and MDST Trusts mortgage backed securities issued, and Shellpoint
non-agency RMBS.
(6)
Represents or includes activity from July
1, 2020 through July 20, 2020. Based on management’s current views
and estimates, and actual results may vary materially.
ADDITIONAL INFORMATION
For additional information that management believes to be useful
for investors, please refer to the latest presentation posted on
the Investor Relations section of the Company’s website,
www.newresi.com. For consolidated investment portfolio information,
please refer to the Company’s most recent Quarterly Report on Form
10-Q or Annual Report on Form 10-K, which are available on the
Company’s website, www.newresi.com.
EARNINGS CONFERENCE CALL
New Residential’s management will host a conference call on
Wednesday, July 22, 2020 at 8:00 A.M. Eastern Time. A copy of the
earnings release will be posted to the Investor Relations section
of New Residential’s website, www.newresi.com.
All interested parties are welcome to participate on the live
call. The conference call may be accessed by dialing 1-888-317-6016
(from within the U.S.) or 1-412-317-6016 (from outside of the U.S.)
ten minutes prior to the scheduled start of the call; please
reference “New Residential Second Quarter 2020 Earnings Call.” In
addition, participants are encouraged to pre-register for the
conference call at http://dpregister.com/10146216.
A simultaneous webcast of the conference call will be available
to the public on a listen-only basis at www.newresi.com. Please
allow extra time prior to the call to visit the website and
download any necessary software required to listen to the internet
broadcast.
A telephonic replay of the conference call will also be
available two hours following the call’s completion through 11:59
P.M. Eastern Time on Wednesday, August 5, 2020 by dialing
1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from
outside of the U.S.); please reference access code “10146216.”
Consolidated Statements of
Income
($ in thousands, except share and per
share data)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Revenues Interest income
$
232,198
$
416,047
$
634,571
$
854,914
Servicing revenue, net of change in fair value of $(441,033),
$(334,599), $(1,090,408), and $(391,509), respectively
(90,459
)
(85,537
)
(379,574
)
80,316
Gain on originated mortgage loans, held-for-sale, net
310,022
101,018
489,720
168,188
451,761
431,528
744,717
1,103,418
Expenses Interest expense
116,403
228,004
333,258
440,836
General and administrative expenses
217,373
118,906
423,736
217,846
Management fee to affiliate
22,479
19,623
44,200
37,583
Incentive compensation to affiliate
-
-
-
12,958
Loan servicing expense
7,149
9,372
15,002
18,975
Subservicing expense
73,132
53,962
140,113
94,888
436,536
429,867
956,309
823,086
Other Income (Loss) Change in fair value of investments
102,776
(26,642
)
(463,500
)
(57,746
)
Gain (loss) on settlement of investments, net
(74,966
)
5,576
(874,538
)
(37,285
)
Earnings from investments in consumer loans, equity method
investees
-
(2,654
)
-
1,657
Other income (loss), net
(3,207
)
(2,227
)
(40,020
)
3,461
24,603
(25,947
)
(1,378,058
)
(89,913
)
Impairment Provision (reversal) for credit losses on
securities
(25,134
)
8,859
19,015
16,375
Valuation and credit loss provision (reversal) on loans and real
estate owned (“REO”)
3,424
13,452
103,920
18,732
(21,710
)
22,311
122,935
35,107
Income (Loss) Before Income Taxes
61,538
(46,597
)
(1,712,585
)
155,312
Income tax expense (benefit)
17,409
(21,577
)
(149,459
)
24,420
Net Income (Loss)
$
44,129
$
(25,020
)
$
(1,563,126
)
$
130,892
Noncontrolling Interests in Income of Consolidated
Subsidiaries
$
38,640
$
6,923
$
22,478
$
17,241
Dividends on Preferred Stock
$
14,357
$
-
$
25,579
$
-
Net Income (Loss) Attributable to Common Stockholders
$
(8,868
)
$
(31,943
)
$
(1,611,183
)
$
113,651
Net Income (Loss) Per Share of Common Stock Basic
$
(0.02
)
$
(0.08
)
$
(3.88
)
$
0.28
Diluted
$
(0.02
)
$
(0.08
)
$
(3.88
)
$
0.28
Weighted Average Number of Shares of Common Stock
Outstanding Basic
415,661,782
415,463,757
415,625,468
401,946,938
Diluted
415,661,782
415,463,757
415,625,468
402,239,438
Dividends Declared per Share of Common Stock
$
0.10
$
0.50
$
0.15
$
1.00
Consolidated Balance Sheets
($ in thousands)
June 30,
2020
December
31, 2019
Assets
(unaudited)
Excess mortgage servicing rights assets, at fair value
$
458,923
$
505,343
Mortgage servicing rights, at fair value
3,551,159
3,967,960
Mortgage servicing rights financing receivables, at fair value
1,469,927
1,718,273
Servicer advance investments, at fair value
559,011
581,777
Real estate and other securities
6,144,236
19,477,728
VIE Consumer and residential loans held-for-investment, at fair
value
1,516,794
1,753,251
Residential mortgage loans, held-for-sale ($2,824,909 and
$4,613,612 at fair value at June 30, 2020 and December 31, 2019,
respectively)
3,519,739
6,042,664
Residential mortgage loans subject to repurchase
1,075,008
172,336
Cash and cash equivalents
1,013,208
528,737
Restricted cash
138,932
162,197
Servicer advances receivable
2,947,678
3,301,374
Trades receivable
163,477
5,256,014
Other assets
1,194,057
1,395,800
$
23,752,149
$
44,863,454
Liabilities and Equity Liabilities
Repurchase agreements
$
9,171,498
$
27,916,225
Notes and bonds payable (includes $258,806 and $659,738 at fair
value at June 30, 2020 and December 31, 2019, respectively)
6,879,462
7,720,148
Residential mortgage loan repurchase liability
1,075,008
172,336
Term loan, net of discount and issuance costs
533,383
-
Trades payable
105,930
902,081
Due to affiliates
16,894
103,882
Dividends payable
48,753
211,732
Accrued expenses and other liabilities
532,249
600,790
18,363,177
37,627,194
Commitments and Contingencies Equity
Preferred Stock, par value of $0.01 per share, 100,000,000 shares
authorized: 7.50% Series A Preferred Stock, $0.01 par value,
11,500,000 shares authorized, 6,210,000 and 6,210,000 issuedand
outstanding at June 30, 2020 and December 31, 2019, respectively
150,026
150,026
7.125% Series B Preferred Stock, $0.01 par value, 11,500,000 shares
authorized, 11,300,000 and 11,300,000issued and outstanding at June
30, 2020 and December 31, 2019, respectively
273,418
273,418
6.375% Series C Preferred Stock, $0.01 par value, 16,100,000 shares
authorized, 16,100,000 and 0 issued andoutstanding at June 30, 2020
and December 31, 2019, respectively
389,548
-
Common Stock, $0.01 par value, 2,000,000,000 shares authorized,
415,744,518 and 415,520,780 issued andoutstanding at June 30, 2020
and December 31, 2019, respectively
4,158
4,156
Additional paid-in capital
5,554,559
5,498,226
Retained earnings (accumulated deficit)
(1,110,148
)
549,733
Accumulated other comprehensive income (loss)
30,730
682,151
Total New Residential stockholders’ equity
5,292,291
7,157,710
Noncontrolling interests in equity of consolidated subsidiaries
96,681
78,550
Total Equity
5,388,972
7,236,260
$
23,752,149
$
44,863,454
NON-GAAP MEASURES AND RECONCILIATION TO GAAP NET
INCOME
New Residential has five primary variables that impact its
operating performance: (i) the current yield earned on the
Company’s investments, (ii) the interest expense under the debt
incurred to finance the Company’s investments, (iii) the Company’s
operating expenses and taxes, (iv) the Company’s realized and
unrealized gains or losses, on the Company’s investments, including
any impairment, or reserve for expected credit losses, and (v)
income from its origination and servicing businesses. “Core
earnings” is a non-GAAP measure of the Company’s operating
performance, excluding the fourth variable above and adjusts the
earnings from the consumer loan investment to a level yield basis.
Core earnings is used by management to evaluate the Company’s
performance without taking into account: (i) realized and
unrealized gains and losses, which although they represent a part
of the Company’s recurring operations, are subject to significant
variability and are generally limited to a potential indicator of
future economic performance; (ii) incentive compensation paid to
the Company’s manager; (iii) non-capitalized transaction-related
expenses; and (iv) deferred taxes, which are not representative of
current operations.
The Company’s definition of core earnings includes accretion on
held-for-sale loans as if they continued to be held-for-investment.
Although the Company intends to sell such loans, there is no
guarantee that such loans will be sold or that they will be sold
within any expected timeframe. During the period prior to sale, the
Company continues to receive cash flows from such loans and
believes that it is appropriate to record a yield thereon. In
addition, the Company’s definition of core earnings excludes all
deferred taxes, rather than just deferred taxes related to
unrealized gains or losses, because the Company believes deferred
taxes are not representative of current operations. The Company’s
definition of core earnings also limits accreted interest income on
RMBS where the Company receives par upon the exercise of associated
call rights based on the estimated value of the underlying
collateral, net of related costs including advances. The Company
created this limit in order to be able to accrete to the lower of
par or the net value of the underlying collateral, in instances
where the net value of the underlying collateral is lower than par.
The Company believes this amount represents the amount of accretion
the Company would have expected to earn on such bonds had the call
rights not been exercised.
Beginning January 1, 2020, the Company’s investments in consumer
loans are accounted for under the fair value option. Core Earnings
adjusts earnings on the consumer loans to a level yield to present
income recognition across the consumer loan portfolio in the manner
in which it is economically earned, avoid potential delays in loss
recognition, and align it with the Company’s overall portfolio of
mortgage-related assets which generally record income on a level
yield basis. With respect to consumer loans classified as
held-for-sale, the level yield is computed through the expected
sale date. With respect to the gains recorded under GAAP in 2014
and 2016 as a result of a refinancing of the debt related to the
Company’s investments in consumer loans, and the consolidation of
entities that own the Company’s investments in consumer loans,
respectively, the Company continues to record a level yield on
those assets based on their original purchase price.
While incentive compensation paid to the Company’s manager may
be a material operating expense, the Company excludes it from core
earnings because (i) from time to time, a component of the
computation of this expense will relate to items (such as gains or
losses) that are excluded from core earnings, and (ii) it is
impractical to determine the portion of the expense related to core
earnings and non-core earnings, and the type of earnings (loss)
that created an excess (deficit) above or below, as applicable, the
incentive compensation threshold. To illustrate why it is
impractical to determine the portion of incentive compensation
expense that should be allocated to core earnings, the Company
notes that, as an example, in a given period, it may have core
earnings in excess of the incentive compensation threshold but
incur losses (which are excluded from core earnings) that reduce
total earnings below the incentive compensation threshold. In such
case, the Company would either need to (a) allocate zero incentive
compensation expense to core earnings, even though core earnings
exceeded the incentive compensation threshold, or (b) assign a “pro
forma” amount of incentive compensation expense to core earnings,
even though no incentive compensation was actually incurred. The
Company believes that neither of these allocation methodologies
achieves a logical result. Accordingly, the exclusion of incentive
compensation facilitates comparability between periods and avoids
the distortion to the Company’s non-GAAP operating measure that
would result from the inclusion of incentive compensation that
relates to non-core earnings.
With regard to non-capitalized transaction-related expenses,
management does not view these costs as part of the Company’s core
operations, as they are considered by management to be similar to
realized losses incurred at acquisition. Non-capitalized
transaction-related expenses are generally legal and valuation
service costs, as well as other professional service fees, incurred
when the Company acquires certain investments, as well as costs
associated with the acquisition and integration of acquired
businesses.
Since the third quarter of 2018, as a result of its acquisition
of Shellpoint Partners LLC (“Shellpoint”), the Company, through its
wholly owned subsidiary, NewRez (formerly New Penn Financial),
originates conventional, government-insured and nonconforming
residential mortgage loans for sale and securitization. In
connection with the transfer of loans to the GSEs or mortgage
investors, the Company reports realized gains or losses on the sale
of originated residential mortgage loans and retention of mortgage
servicing rights, which the Company believes is an indicator of
performance for the Servicing and Origination segments and
therefore included in core earnings. Realized gains or losses on
the sale of originated residential mortgage loans had no impact on
core earnings in any prior period, but may impact core earnings in
future periods.
Beginning with the third quarter of 2019, as a result of the
continued evaluation of how Shellpoint operates its business and
its impact on the Company’s operating performance, core earnings
includes Shellpoint’s GAAP net income with the exception of the
unrealized gains or losses due to changes in valuation inputs and
assumptions on MSRs owned by NewRez, and non-capitalized
transaction-related expenses. This change was not material to core
earnings for the quarter ended September 30, 2019.
Management believes that the adjustments to compute “core
earnings” specified above allow investors and analysts to readily
identify and track the operating performance of the assets that
form the core of the Company’s activity, assist in comparing the
core operating results between periods, and enable investors to
evaluate the Company’s current core performance using the same
measure that management uses to operate the business. Management
also utilizes core earnings as a measure in its decision-making
process relating to improvements to the underlying fundamental
operations of the Company’s investments, as well as the allocation
of resources between those investments, and management also relies
on core earnings as an indicator of the results of such decisions.
Core earnings excludes certain recurring items, such as gains and
losses (including impairment and reserves, as well as derivative
activities) and non-capitalized transaction-related expenses,
because they are not considered by management to be part of the
Company’s core operations for the reasons described herein. As
such, core earnings is not intended to reflect all of the Company’s
activity and should be considered as only one of the factors used
by management in assessing the Company’s performance, along with
GAAP net income which is inclusive of all of the Company’s
activities.
The primary differences between core earnings and the measure
the Company uses to calculate incentive compensation relate to (i)
realized gains and losses (including impairments and reserves for
expected credit losses), (ii) non-capitalized transaction-related
expenses and (iii) deferred taxes (other than those related to
unrealized gains and losses). Each are excluded from core earnings
and included in the Company’s incentive compensation measure
(either immediately or through amortization). In addition, the
Company’s incentive compensation measure does not include accretion
on held-for-sale loans and the timing of recognition of income from
consumer loans is different. Unlike core earnings, the Company’s
incentive compensation measure is intended to reflect all realized
results of operations. The Gain on Remeasurement of Consumer Loans
Investment was treated as an unrealized gain for the purposes of
calculating incentive compensation and was therefore excluded from
such calculation.
Core earnings does not represent and should not be considered as
a substitute for, or superior to, net income or as a substitute
for, or superior to, cash flows from operating activities, each as
determined in accordance with U.S. GAAP, and the Company’s
calculation of this measure may not be comparable to similarly
entitled measures reported by other companies. Set forth below is a
reconciliation of core earnings to the most directly comparable
GAAP financial measure (in thousands):
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Net (loss) income attributable to common stockholders
$
(8,868
)
$
(31,943
)
$
(1,611,183
)
$
113,651
Adjustments for Non-Core Earnings: Impairment
(21,710
)
22,311
122,935
35,107
Change in fair value of investments
(27,516
)
189,150
928,016
154,271
(Gain) loss on settlement of investments, net
81,382
(4,640
)
892,853
38,527
Other (income) loss
47,366
31,031
90,950
25,037
Other Income and Impairment attributable to non-controlling
interests
19,332
(5,626
)
(2,947
)
(8,058
)
Non-capitalized transaction-related expenses
14,195
9,284
31,097
16,150
Incentive compensation to affiliate
-
-
-
12,958
Preferred stock management fee to affiliate
3,048
-
5,343
-
Deferred taxes
25,277
(21,599
)
(141,640
)
24,732
Interest income on residential mortgage loans, held-for-sale
8,424
23,888
20,567
26,189
Limit on RMBS discount accretion related to called deals
-
-
-
(19,556
)
Adjust consumer loans to level yield
(995
)
7,815
(1,510
)
2,962
Core earnings of equity method investees: Excess mortgage servicing
rights
265
87
4,090
2,115
Core Earnings
$
140,200
$
219,758
$
338,571
$
424,085
Net Income Per Diluted Share
$
(0.02
)
$
(0.08
)
$
(3.88
)
$
0.28
Core Earnings Per Diluted Share
$
0.34
$
0.53
$
0.81
$
1.05
Weighted Average Number of Shares of Common Stock
Outstanding, Diluted
415,661,782
415,463,757
415,625,468
402,239,438
NET INCOME BY SEGMENT
Servicing and
Originations
Residential Securities and
Loans
Origination
Servicing
MSRs & Servicer
Advances
Residential Securities &
Call Rights
Residential Loans
Corporate & Other
Total
Quarter Ended June 30, 2020
Interest income
$
8,963
$
1,115
$
108,386
$
33,663
$
47,284
$
32,787
$
232,198
Servicing revenue, net
(1,998
)
96,885
(185,346
)
-
-
-
(90,459
)
Gain on originated mortgage loans, held-for-sale, net
281,937
343
29,591
-
(1,849
)
-
310,022
Total revenue
288,902
98,343
(47,369
)
33,663
45,435
32,787
451,761
Operating expenses
108,129
74,018
152,048
18,023
36,749
47,569
436,536
Other income (loss)
390
-
(90,665
)
47,837
36,676
30,365
24,603
Impairment
-
-
(91
)
(25,134
)
3,515
-
(21,710
)
Income (loss) before taxes
181,163
24,325
(289,991
)
88,611
41,847
15,583
61,538
Income tax expense (benefit)
20,083
1,224
(6,832
)
-
2,918
16
17,409
Net income (loss)
$
161,080
$
23,101
$
(283,159
)
$
88,611
$
38,929
$
15,567
$
44,129
Noncontrolling interests in income (loss) of consolidated
subsidiaries
4,419
-
8,591
-
-
25,630
38,640
Dividends on Preferred Stock
-
-
-
-
-
14,357
14,357
Net income (loss) attributable to common stockholders
$
156,661
$
23,101
$
(291,750
)
$
88,611
$
38,929
$
(24,420
)
$
(8,868
)
Servicing and
Originations
Residential Securities and
Loans
Origination
Servicing
MSRs & Servicer
Advances
Residential Securities &
Call Rights
Residential Loans
Corporate & Other
Total
Quarter Ended March 31, 2020
Interest income
$
16,735
$
7,487
$
99,353
$
184,005
$
59,921
$
34,872
$
402,373
Servicing revenue, net
(1,078
)
86,742
(374,779
)
-
-
-
(289,115
)
Gain on originated mortgage loans, held-for-sale, net
158,215
259
12,713
-
8,511
-
179,698
Total revenue
173,872
94,488
(262,713
)
184,005
68,432
34,872
292,956
Operating expenses
113,639
64,548
141,663
114,863
47,529
37,531
519,773
Other income (loss)
(16
)
499
(156,933
)
(966,039
)
(192,271
)
(87,901
)
(1,402,661
)
Impairment
-
-
-
44,149
100,496
-
144,645
Income (loss) before taxes
60,217
30,439
(561,309
)
(941,046
)
(271,864
)
(90,560
)
(1,774,123
)
Income tax expense (benefit)
11,958
6,045
(109,785
)
-
(75,201
)
115
(166,868
)
Net income (loss)
$
48,259
$
24,394
$
(451,524
)
$
(941,046
)
$
(196,663
)
$
(90,675
)
$
(1,607,255
)
Noncontrolling interests in income (loss) of consolidated
subsidiaries
1,283
-
(11,247
)
-
-
(6,198
)
(16,162
)
Dividends on Preferred Stock
-
-
-
-
-
11,222
11,222
Net income (loss) attributable to common stockholders
$
46,976
$
24,394
$
(440,277
)
$
(941,046
)
$
(196,663
)
$
(95,699
)
$
(1,602,315
)
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this press release constitutes as
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, including, but not
limited to, statements regarding our strategy, growth
opportunities, ability to recover from the significant challenges
of the COVID-19 pandemic, potential mark to market exposure,
ability to reduce exposure to mark to market financings, ability to
execute on key business initiatives and generate returns,
expectations regarding the significant profitability of our
origination and servicing businesses, ability to execute on our
recapture goals, whether the Company will have sufficient liquidity
to fund advances and ability to grow book value and create strong
earnings for our shareholders in the near and long term. These
statements are not historical facts. They represent management’s
current expectations regarding future events and are subject to a
number of trends and uncertainties, many of which are beyond our
control, which could cause actual results to differ materially from
those described in the forward-looking statements. Accordingly, you
should not place undue reliance on any forward-looking statements
contained herein. For a discussion of some of the risks and
important factors that could affect such forward-looking statements
including, but not limited to, risks related to the ongoing
COVID-19 pandemic, see the sections entitled “Cautionary Statements
Regarding Forward Looking Statements,” “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the Company’s most recent annual and
quarterly reports and other filings filed with the U.S. Securities
and Exchange Commission, which are available on the Company’s
website (www.newresi.com). New risks and uncertainties emerge from
time to time, and it is not possible for New Residential to predict
or assess the impact of every factor that may cause its actual
results to differ from those contained in any forward-looking
statements. Forward-looking statements contained herein speak only
as of the date of this press release, and New Residential expressly
disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in New Residential's expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based.
ABOUT NEW RESIDENTIAL
New Residential is a leading provider of capital and services to
the mortgage and financial services industry. The Company’s mission
is to generate attractive risk-adjusted returns in all interest
rate environments through a portfolio of investments and operating
businesses. New Residential has built a diversified,
hard-to-replicate portfolio with high-quality investment strategies
that have generated returns across different interest rate
environments over time. New Residential’s portfolio is composed of
mortgage servicing related assets (including investments in
operating entities consisting of servicing, origination, and
affiliated businesses), residential securities (and associated
called rights) and loans, and consumer loans. New Residential’s
investments in operating entities include its mortgage origination
and servicing subsidiary, NewRez, and its special servicing
division, Shellpoint Mortgage Servicing, as well as investments in
affiliated businesses that provide services that are complementary
to the origination and servicing businesses and other portfolios of
mortgage related assets. Since inception in 2013, New Residential
has a proven track record of performance, growing and protecting
the value of its assets while generating attractive risk-adjusted
returns and delivering approximately $3.3 billion in dividends to
shareholders. New Residential is organized and conducts its
operations to qualify as a real estate investment trust (“REIT”)
for federal income tax purposes. New Residential is managed by an
affiliate of Fortress Investment Group LLC, a global investment
management firm, and headquartered in New York City.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200722005347/en/
Investor Relations Kaitlyn Mauritz 212-479-3150
IR@NewResi.com
New Residential Investment (NYSE:NRZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
New Residential Investment (NYSE:NRZ)
Historical Stock Chart
From Apr 2023 to Apr 2024