New Residential Investment Corp. Declares First Quarter 2020 Common and Preferred Stock Dividends and Announces Company Updates
March 31 2020 - 6:30AM
Business Wire
New Residential Investment Corp. (“NRZ,” “New Residential,” the
“Company”) announced today that its Board of Directors (the
“Board”) has declared first quarter 2020 common and preferred stock
dividends, and provided additional Company updates.
Common Stock Dividend
The Board declared a quarterly dividend of $0.05 per common
share for the first quarter 2020. The dividend is payable on May
15, 2020 to common shareholders of record on April 15, 2019.
Preferred Stock Dividends
In accordance with the terms of New Residential’s 7.50% Series A
Cumulative Redeemable Preferred Stock (“Series A”), the Board
declared a Series A dividend for the first quarter 2020 of $0.46875
per share.
In accordance with the terms of New Residential’s 7.125% Series
B Cumulative Redeemable Preferred Stock (“Series B”), the Board
declared a Series B dividend for the first quarter 2020 of
$0.4453125 per share.
In accordance with the terms of New Residential’s 6.375% Series
C Cumulative Redeemable Preferred Stock (“Series C”), the Board
declared a Series C dividend for the first quarter 2020 (long first
period) of $0.4028646 per share.
Dividends for the Series A, Series B and Series C are payable on
May 15, 2020 to preferred shareholders of record on April 15,
2020.
“Since our last update on March 13, 2020, markets have evolved
considerably and conditions created by the COVID-19 pandemic have
greatly impacted the mortgage REIT industry,” said Michael
Nierenberg, Chairman, Chief Executive Officer and President of New
Residential. “In particular, market dislocations have put
significant downward pressure on asset values. In light of these
events, we have made a number of decisions to de-risk, increase
liquidity and protect our book value. We continue to focus on
growing liquidity as we navigate the market during this time.”
“We feel that the decision to reduce our common dividend at this
time is prudent in order to preserve liquidity for our Company,”
Michael Nierenberg continued. “The Board will evaluate the
Company’s ability to pay dividends in future quarters commensurate
with our liquidity and the earnings power of our Company and based
upon customary considerations, including market conditions.”
Update on Estimated Book Value
The Company announced that estimated book value as of March 27,
2020 is down approximately 25% to 30% from $16.21 as of December
31, 2019.
The estimated book value is based primarily on management’s
estimates of its assets as of March 27, 2020 and not on third party
valuations. While the Company believes that such estimates are
based on reasonable assumptions and information available to it as
of March 27, 2020, actual results may vary, and such variations may
be material. Furthermore, the extreme volatility and turmoil that
currently riles the financial markets makes estimates of asset
values even less reliable than usual.
ABOUT NEW RESIDENTIAL
New Residential is a leading provider of capital and services to
the mortgage and financial services industries with a proven track
record of returns and performance. 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including, but not
limited to, statements relating to the Company’s ability to
de-risk, de-lever, increase and grow liquidity and protect its
portfolio in light of market volatility, ability to declare and pay
future dividends and the Company’s estimated book value. These
statements are based on management’s current expectations and
beliefs and are subject to a number of trends and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements, many of which are
beyond our control. The Company can give no assurance that its
expectations will be attained. Accordingly, you should not place
undue reliance on any forward-looking statements contained in this
press release.
For a discussion of some of the risks and important factors that
could affect such forward-looking statements, see the sections
entitled “Risk Factors” in the Company’s most recent Annual Report
on Form 10-K, as well as the sections entitled “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” from the Company’s most recent Annual Report on Form
10-K. In addition, new risks and uncertainties emerge from time to
time, including risks related to the COVID-19 crisis, risks related
to the extreme volatility and turmoil that currently riles the
financial markets and risks related to changes in the value of our
assets that could result in an increase in the amount of our
obligations, and it is not possible for the Company 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.
Such forward-looking statements speak only as of the date of this
press release. The Company expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company’s
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20200331005250/en/
New Residential Investor Relations Kaitlyn Mauritz
212-479-3150 IR@NewResi.com
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