New Residential Investment (NRZ) Tops Q1 EPS by 65c

New Residential Investment (NYSE: NRZ) reported Q1 EPS of $0.48, $0.65 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $198.4 million versus the consensus estimate of $185.46 million.

FIRST QUARTER 2020 FINANCIAL HIGHLIGHTS:

• GAAP Net Loss of ($1,602.3) million, or ($3.86) per diluted common share(1)
• Core Earnings of $198.4 million, or $0.48 per diluted common share(1)(2)
• Common Dividend of $20.8 million, or $0.05 per common share(1)
• Book Value per common share of $10.71(1)
• $360.5 million of cash as of March 31, 2020

“Ahead of the unprecedented volatility in March 2020, our Company was positioned for a very strong first quarter," said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. "The world changed swiftly following our investor update on March 13, 2020. Subsequent to that update, asset values in the mortgage market went into free fall as liquidity left the system. In response, we sold down approximately $27.9 billion in assets and significantly de-leveraged our balance sheet. Our investment portfolio as of April 30, 2020 is 61% smaller than it was on December 31, 2019, which we believe puts us in a strong position to navigate the current and forward environment.(3) Importantly, we have continued to bolster our capital position and improve financing capacity; as of April 30, 2020, we have an estimated $517.3 million in cash and $397.4 million in unencumbered assets.(4) In particular, we have increased our advance financing capacity up to approximately $5.25 billion.(5) Looking ahead, our investment strategy will be to target assets that are term financed or low leverage. Our primary focus will be on our operating business, which includes our mortgage origination, servicing and ancillary service business lines. We believe that in today’s low interest rate environment, these businesses are particularly well-positioned to contribute to our profitability. We intend to support our investments, be opportunistic, and continue to do all we can to generate returns for our shareholders. We look forward to growing book value and returning our Company to normalcy.”

For earnings history and earnings-related data on New Residential Investment (NRZ) click here.

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