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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
12M EndedQ4 2013 (1)
Since Spin-Off(5/16/13 – 12/31/13)
Summary Operating Results:
GAAP Income per Diluted Share
Core Earnings per Diluted Share*
*For a reconciliation of GAAP Income to Core Earnings, please refer to theReconciliation of Core Earnings below.(1)Includes results for the period before New Residential was spun-off from Newcastle Investment Corp. and may not be indicative of the full year results that the Company would have had as a separate public company for the entire 12-month period.Highlights for the quarter ended December 31, 2013:
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.
Highlights subsequent to December 31, 2013:
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.
For additional information that management believes to be useful for investors, please refer to the 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 reports filed with the Securities and Exchange Commission, which are available on the Company’s website (www.newresi.com).