New Residential Investment Corp. Announces Agreements to Sell Certain Non-Agency Securities
April 01 2020 - 8:30AM
Business Wire
New Residential Investment Corp. (“NRZ,” “New Residential,” the
“Company”) today announced that the Company has entered into
definitive agreements to sell approximately $6.1 billion face value
of non-agency residential mortgage-backed securities to several
buyers. These transactions are not expected to affect the Company’s
previously reported estimated book value, which is expected to be
down approximately 25% to 30% from $16.21 as of December 31,
2019.
“While mortgage assets have stabilized relative to recent weeks,
our focus in this environment continues to be de-risking,
increasing our liquidity and protecting our book value,” said
Michael Nierenberg, Chairman, Chief Executive Officer and President
of New Residential. “In line with those goals, we sold a portfolio
of non-agency securities and reduced our short-term financing
exposure. We believe this measure, as well as others we have taken
during the recent volatility, are crucial to preserving long term
shareholder value.”
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 estimated book
value, ability to settle the transactions described above,
including the anticipated performance by the counterparties, the
ability to de-risk, increase liquidity, to stabilize and protect
the Company’s book value in light of market volatility, ability to
reduce our short-term financing exposure, ability to create long
term shareholder value and preserve 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 cause us to take additional actions to generate
additional liquidity, 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/20200401005379/en/
New Residential Investor Relations Kaitlyn Mauritz
212-479-3150 IR@NewResi.com
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