Rithm Capital Corp (RITM)

[Enterprising Investor]

New Residential Announces First Quarter 2018 Results (4/27/18)

NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE:NRZ; “New Residential” or the “Company”) today reported the following information for the quarter ended March 31, 2018:

FIRST QUARTER FINANCIAL HIGHLIGHTS:

GAAP Net Income of $604 million, or $1.81 per diluted share

Core Earnings of $195 million, or $0.58 per diluted share*

Common dividend of $168 million, or $0.50 per share

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First Quarter 2018 & Subsequent Highlights:

Mortgage Servicing Rights (“MSRs”) -

During and subsequent to first quarter 2018, New Residential acquired or agreed to acquire MSRs totaling approximately $38 billion UPB for an aggregate purchase price of approximately $364 million. In addition, to further enhance liquidity, NRZ priced two fixed rate MSR notes in January and February 2018, totaling $930 million, at a weighted average cost of funds of ~3.6%.

In January 2018, as part of the Company’s previously announced MSR transfer agreement with Ocwen Financial Corporation (“Ocwen”),(1) New Residential paid Ocwen an approximately $280 million restructuring fee to obtain the remaining rights to MSRs on the legacy Non-Agency MSR portfolio totaling $87 billion UPB.(2) Under the New RMSR Agreement, Ocwen will transfer the remaining $87 billion UPB Non-Agency MSRs(2) to New Residential.

Non-Agency Securities & Call Rights -

During the first quarter 2018, New Residential continued its deal collapse strategy by executing clean-up calls on 32 seasoned, Non-Agency residential mortgage-backed securities (“RMBS”) deals with an aggregate UPB of approximately $500 million. In addition, during the quarter, New Residential completed a $727 million Non-Agency loan securitization.

In the first quarter, New Residential continued to strategically invest in Non-Agency securities that are expected to be accretive to the Company’s call rights strategy. New Residential purchased $695 million face value of Non-Agency RMBS, bringing net equity to approximately $1.4 billion as of March 31, 2018.

(1) In July 2017, New Residential and Ocwen signed definitive agreements for the transfer of Ocwen’s interest in MSRs and subservicing relating to approximately $110 billion UPB (balance as of June 30, 2017) of Non-Agency MSRs. In January 2018, New Residential and Ocwen entered into new agreements (collectively, the “New RMSR Agreement”), which accelerated certain parts of the July 2017 agreements, including, but not limited to, lump sum payments made by New Residential to Ocwen parties the companies continue to obtain the third party consents necessary to transfer the MSRs from Ocwen to New Residential.

(2) In the third quarter of 2017, New Residential paid Ocwen $55 million in restructuring fees for approximately $16 billion UPB of MSRs. Total portfolio UPB decreased from $110 billion to $87 billion prior to entering into the New RMSR Agreement as a result of amortization and the transfer of such MSRs.

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 Friday, April 27, 2018 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 1-866-393-1506 (from within the U.S.) or 1-281-456-4044 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “New Residential First Quarter 2018 Earnings Call.”

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 Friday, May 11, 2018 by dialing 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference access code “3090809.”

ABOUT NEW RESIDENTIAL

New Residential focuses on opportunistically investing in, and actively managing, investments related to residential real estate. The Company primarily targets investments in mortgage servicing related assets, non-Agency securities and other related opportunistic investments. New Residential is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.

https://www.businesswire.com/news/home/20180427005340/en/New-Residential-Announces-Quarter-2018-Results