New Residential Investment Corp. (NYSE:NRZ; “New Residential”, the “Company”) today reported GAAP Income of $80.5 million, or $0.31 per diluted share, for the fourth quarter of 2013. The Company reported GAAP Income since New Residential spun off from Newcastle Investment Corp. in May 2013 of $228.3 million, or $0.89 per diluted share.
Additionally, on March 19, 2014, the Company's Board of Directors declared a quarterly dividend of $0.175 per common share for the first quarter of 2014. The dividend is payable on April 30, 2014 to shareholders of record on March 31, 2014.
FOURTH QUARTER FINANCIAL HIGHLIGHTS :
- GAAP Income of $80.5 million, or $0.31 per diluted share
- Core Earnings of $36.8 million, or $0.14 per diluted share
- Common Dividend of $63.3 million, or $0.25 per diluted share
FULL YEAR 2013 (SINCE SPIN-OFF) FINANCIAL HIGHLIGHTS :
- GAAP Income of $228.3 million, or $0.89 per diluted share
- Core Earnings of $94.5 million, or $0.37 per diluted share
- Common Dividend of $125.3 million, or $0.495 per diluted share
|Q4 2013||Q3 2013||12M Ended Q4 2013 (1)||Since Spin-Off (5/16/13 – 12/31/13)|
|Summary Operating Results:|
|GAAP Income||$80.5 million||$63.1 million||$265.9 million||$228.3 million|
|GAAP Income per Diluted Share||$0.31||$0.24||$1.03||$0.89|
|Core Earnings*||$36.8 million||$37.9 million||$130.0 million||$94.5 million|
|Core Earnings per Diluted Share*||$0.14||$0.15||$0.51||$0.37|
- Excess MSR Investment – During the quarter, New Residential invested $23 million to fund previously committed pools of Excess MSRs related to $21 billion of UPB.
- Advances Transaction #1 – In December, New Residential and other third-party co-investors entered into an agreement to acquire from Nationstar Mortgage LLC approximately $3.2 billion of Non-Agency advances, including the basic fee component of the related MSRs, at par related to $54 billion of initial UPB. This acquisition marks New Residential’s first investment in servicer advances.
- Non-Agency RMBS – During the quarter, New Residential sold $577 million face amount of Non-Agency RMBS for $399 million, or 69% of par, which resulted in a gain of $41 million. In addition, the Company also purchased $626 million of face for $386 million, or 62% of par.
- Non-Performing Loan Investment – New Residential further diversified its investment portfolio in the fourth quarter by purchasing a non-performing loan pool for $93 million. This investment was funded with a mix of debt and equity.
- Dividend – In December, New Residential declared fourth quarter dividends in the amount of $0.25 per common share, or $63.3 million. The dividends consisted of a regular fourth quarter dividend of $0.175, and a special cash dividend of $0.075.
- Advances Transaction #2 – In February, New Residential and other third party co-investors exercised the call right acquired in the first advance transaction to purchase additional Non-Agency advances with a par amount of approximately $3.1 billion as of December 31, 2013, including the basic fee component of the related MSRs. The advance balance at the time the call right was exercised was approximately $2.8 billion. In addition, the Company was able to improve financing terms associated with the first advance transaction by closing an approximately $2.2 billion securitization in March.
- Non-Agency Securities Purchased from Springleaf – In March, New Residential and a third-party co-investor committed to purchase securities related to $833 million face amount of Non-Agency loans from Springleaf Holdings Inc. for a total price of $738 million.
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