New Residential Investment Corp. Announces First Quarter 2022 Results

Rhea-AI Summary

New Residential Investment Corp. (NRZ) reported strong Q1 2022 financial results, posting a GAAP net income of $661.9 million, or $1.37 per diluted share, up from $160.4 million in Q4 2021. Core earnings were $177.4 million, slightly down from $191.9 million in the previous quarter. The company maintained a common dividend of $116.7 million ($0.25 per share) and increased its book value to $12.56 per share. Notable achievements included a pre-tax income of $906.3 million in MSR-related investments, demonstrating effective capital deployment and resilience amid market volatility.

Positive

• GAAP net income increased to $661.9 million in Q1 2022 from $160.4 million in Q4 2021.
• Core earnings of $177.4 million indicate stable performance despite a slight decrease from Q4 2021.
• Maintained common dividend of $116.7 million, reflecting commitment to shareholder returns.
• Increased book value per share to $12.56, up ~10% from the previous quarter.
• Pre-tax income for servicing & MSR segment surged to $906.3 million from $118 million in Q4.

Negative

• Core earnings per diluted share fell to $0.37, down from $0.40 in Q4 2021.
• Origination segment pre-tax income decreased to $25.9 million from $82.3 million in Q4 2021.
• Quarterly origination funded production dropped to $26.9 billion, down from $38.1 billion in the prior quarter.

NEW YORK--(BUSINESS WIRE)-- New Residential Investment Corp. (NYSE: NRZ; “New Residential” or the “Company”) today reported the following information for the first quarter ended March 31, 2022:

First Quarter 2022 Financial Highlights:

• GAAP net income of $661.9 million, or $1.37 per diluted common share⁽¹⁾
• Core earnings of $177.4 million, or $0.37 per diluted common share⁽¹⁾⁽²⁾
• Common dividend of $116.7 million, or $0.25 per common share
• Book value per common share of $12.56⁽¹⁾

		Q1 2022					Q4 2021
Summary Operating Results:
GAAP Net Income per Diluted Common Share(1)		$	1.37				$	0.33
GAAP Net Income		$	661.9		million		$	160.4		million
Non-GAAP Results:
Core Earnings per Diluted Common Share(1)		$	0.37				$	0.40
Core Earnings(2)		$	177.4		million		$	191.9		million
NRZ Common Dividend:
Common Dividend per Share		$	0.25				$	0.25
Common Dividend		$	116.7		million		$	116.7		million

“New Residential’s performance in the first quarter demonstrated the strength and balance of our company,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. “Our diversified investment management company performed exceptionally well, generating a ~5% total shareholder return and growing book value by ~10% to $12.56 per share. We expect book value growth to continue in the second quarter given the upward move in treasury yields and the Fed’s expected policy actions,” he added.

“With $1.7 billion of cash and liquidity coupled with the expected market volatility ahead, we should see terrific opportunities to deploy capital effectively and generate great returns for our shareholders in 2022 and beyond.”

First Quarter 2022 Company Highlights:

• Servicing & MSR Related Investments
  • Combined segment pre-tax income of $906.3 million (up from $118.0 million in Q4'21), including $845 million positive mark-to-market changes on our Full MSR portfolio⁽³⁾⁽⁴⁾
  • MSR portfolio totaled approximately $626 billion in unpaid principal balance (“UPB”) at March 31, 2022 compared to $629 billion UPB at December 31, 2021⁽⁵⁾
  • Servicer advance balances of $3.1 billion as of March 31, 2022, down 7% from December 31, 2021

• Origination
  • Segment pre-tax income of $25.9 million (down from $82.3 million in Q4'21)⁽³⁾⁽⁴⁾
  • Quarterly origination funded production of $26.9 billion UPB (down from $38.1 billion UPB in Q4'21)
  • Total gain on sale margin of 1.53% for the first quarter of 2022 compared to 1.65% for the fourth quarter of 2021

• Residential Securities, Properties and Loans
  • Priced four securitizations representing approximately $1,197 million UPB of collateral, including inaugural single-family-rental securitization representing approximately $268 million UPB of collateral
  • Acquired $540 million of Non-QM loans
  • Grew single-family rental portfolio by 734 units

• Mortgage Loans Receivable
  • Quarterly origination funded production of $691.7 million through Genesis Capital LLC, representing record quarterly volume
  • Priced inaugural residential transitional loan securitization representing approximately $345 million UPB of collateral

(1)		Per common share calculations for GAAP Net Income and Core Earnings are based on 484,425,066 and 485,381,890 weighted average diluted shares for the quarter ended March 31, 2022 and December 31, 2021, respectively. Per share calculations of Book Value are based on 466,786,526 and 466,758,266 common shares outstanding as of March 31, 2022 and December 31, 2021, respectively.
(2)		Core Earnings is a non-GAAP financial measure. For a reconciliation of Core Earnings to GAAP Net Income, as well as an explanation of this measure, please refer to Non-GAAP Measures and Reconciliation to GAAP Net Income below.
(3)		Includes noncontrolling interests.
(4)		Includes mortgage company corporate expenses re-allocated from MSR Related Investments to Origination and Servicing segments.
(5)		Includes excess and full MSRs.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the latest 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 most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K, which are available on the Company’s website, www.newresi.com.

EARNINGS CONFERENCE CALL

New Residential’s management will host a conference call on Tuesday, May 3, 2022 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of New Residential’s website, www.newresi.com.

All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-833-974-2382 (from within the U.S.) or 1-412-317-5787 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “New Residential First Quarter 2022 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10166255/f2692aef34.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newresi.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Tuesday, May 10, 2022 by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code “4221662.”

Consolidated Statements of Income (Unaudited)
($ in thousands, except share and per share data)
		Three Months Ended
		March 31, 2022				December 31, 2021
Revenues
Servicing fee revenue, net and interest income from MSR financing receivables		$	456,400			$	464,200
Change in fair value of MSRs and MSR financing receivables (including amortization of $(200,325), $(267,880), respectively)			575,393				(154,021	)
Servicing revenue, net			1,031,793				310,179
Interest income			225,413				217,555
Gain on originated residential mortgage loans, held-for-sale, net			471,996				569,815
			1,729,202				1,097,549
Expenses
Interest expense and warehouse line fees			138,833				141,936
General and administrative			246,238				289,861
Compensation and benefits			392,619				441,891
Management fee to affiliate			25,189				25,772
			802,879				899,460
Other income (loss)
Change in fair value of investments			(147,119	)			10,499
Gain (loss) on settlement of investments, net			61,184				(45,642	)
Other income (loss), net			56,072				54,271
			(29,863	)			19,128
Impairment
Provision (reversal) for credit losses on securities			711				(181	)
Valuation and credit loss provision (reversal) on loans and real estate owned			3,029				74
			3,740				(107	)
Income before income taxes			892,720				217,324
Income tax expense			202,789				29,485
Net income		$	689,931			$	187,839
Noncontrolling interests in income (loss) of consolidated subsidiaries			5,609				4,908
Dividends on preferred stock			22,461				22,495
Net income attributable to common stockholders		$	661,861			$	160,436
Net income per share of common stock
Basic		$	1.42			$	0.34
Diluted		$	1.37			$	0.33
Weighted average number of shares of common stock outstanding
Basic			466,785,584				466,680,724
Diluted			484,425,066				485,381,890
Dividends declared per share of common stock		$	0.25			$	0.25

Consolidated Balance Sheets
($ in thousands, except share data)
		March 31, 2022 (Unaudited)				December 31, 2021
Assets
Excess mortgage servicing rights, at fair value		$	341,187			$	344,947
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value			7,964,465				6,858,803
Servicer advance investments, at fair value			390,770				421,807
Real estate and other securities			9,509,930				9,396,539
Residential loans and variable interest entity consumer loans held-for-investment, at fair value			1,009,459				1,077,224
Residential mortgage loans, held-for-sale ($7,076,916 and $11,214,924 at fair value, respectively)			7,202,475				11,347,845
Single-family rental properties, held-for-investment			814,871				579,607
Mortgage loans receivable, at fair value			1,670,415				1,515,762
Residential mortgage loans subject to repurchase			1,700,426				1,787,314
Cash and cash equivalents			1,671,177				1,332,575
Restricted cash			295,037				195,867
Servicer advances receivable			2,652,210				2,855,148
Other assets			2,646,125				2,028,752
		$	37,868,547			$	39,742,190
Liabilities and Equity
Liabilities
Secured financing agreements		$	17,281,873			$	20,592,884
Secured notes and bonds payable ($762,421 and $511,107 at fair value, respectively)			9,279,595				8,644,810
Residential mortgage loan repurchase liability			1,700,426				1,787,314
Unsecured senior notes, net of issuance costs			543,728				543,293
Due to affiliates			9,932				17,819
Dividends payable			127,895				127,922
Accrued expenses and other liabilities			1,740,386				1,358,768
			30,683,835				33,072,810
Commitments and Contingencies
Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 52,038,000 and 52,210,000 issued and outstanding, $1,300,959 and $1,305,250 aggregate liquidation preference, respectively			1,258,667				1,262,481
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 466,786,526 and 466,758,266 issued and outstanding, respectively			4,669				4,669
Additional paid-in capital			6,059,981				6,059,671
Retained earnings (accumulated deficit)			(267,878	)			(813,042	)
Accumulated other comprehensive income			67,195				90,253
Total New Residential stockholders’ equity			7,122,634				6,604,032
Noncontrolling interests in equity of consolidated subsidiaries			62,078				65,348
Total equity			7,184,712				6,669,380
		$	37,868,547			$	39,742,190

NON-GAAP MEASURES AND RECONCILIATION TO GAAP NET INCOME

New Residential has five primary variables that impact its operating performance: (i) the current yield earned on the Company’s investments, (ii) the interest expense under the debt incurred to finance the Company’s investments, (iii) the Company’s operating expenses and taxes, (iv) the Company’s realized and unrealized gains or losses on investments, including any impairment or reserve for expected credit losses and (v) income from the Company’s origination and servicing businesses. “Core earnings” is a non-GAAP measure of the Company’s operating performance, excluding the fourth variable above and adjusts the earnings from the consumer loan investment to a level yield basis. Core earnings is used by management to evaluate the Company’s performance without taking into account: (i) realized and unrealized gains and losses, which although they represent a part of the Company’s recurring operations, are subject to significant variability and are generally limited to a potential indicator of future economic performance; (ii) incentive compensation paid to the Company’s manager; (iii) non-capitalized transaction-related expenses; and (iv) deferred taxes, which are not representative of current operations.

The Company’s definition of core earnings includes accretion on held-for-sale loans as if they continued to be held-for-investment. Although the Company intends to sell such loans, there is no guarantee that such loans will be sold or that they will be sold within any expected timeframe. During the period prior to sale, the Company continues to receive cash flows from such loans and believes that it is appropriate to record a yield thereon. In addition, the Company’s definition of core earnings excludes all deferred taxes, rather than just deferred taxes related to unrealized gains or losses, because the Company believes deferred taxes are not representative of current operations. The Company’s definition of core earnings also limits accreted interest income on RMBS where the Company receives par upon the exercise of associated call rights based on the estimated value of the underlying collateral, net of related costs including advances. The Company created this limit in order to be able to accrete to the lower of par or the net value of the underlying collateral, in instances where the net value of the underlying collateral is lower than par. The Company believes this amount represents the amount of accretion the Company would have expected to earn on such bonds had the call rights not been exercised.

Beginning January 1, 2020, the Company’s investments in consumer loans are accounted for under the fair value option. Core earnings adjusts earnings on consumer loans to a level yield to present income recognition across the consumer loan portfolio in the manner in which it is economically earned, to avoid potential delays in loss recognition, and align it with the Company’s overall portfolio of mortgage-related assets which generally record income on a level yield basis. With respect to consumer loans classified as held-for-sale, the level yield is computed through the expected sale date. With respect to the gains recorded under GAAP in 2014 and 2016 as a result of a refinancing of, and the consolidation of, the debt related to the Company’s investments in consumer loans, and the consolidation of entities that own the Company’s investments in consumer loans, respectively, the Company continues to record a level yield on those assets based on their original purchase price.

While incentive compensation paid to the Company’s manager may be a material operating expense, the Company excludes it from core earnings because (i) from time to time, a component of the computation of this expense will relate to items (such as gains or losses) that are excluded from core earnings, and (ii) it is impractical to determine the portion of the expense related to core earnings and non-core earnings, and the type of earnings (loss) that created an excess (deficit) above or below, as applicable, the incentive compensation threshold. To illustrate why it is impractical to determine the portion of incentive compensation expense that should be allocated to core earnings, the Company notes that, as an example, in a given period, it may have core earnings in excess of the incentive compensation threshold but incur losses (which are excluded from core earnings) that reduce total earnings below the incentive compensation threshold. In such case, the Company would either need to (a) allocate zero incentive compensation expense to core earnings, even though core earnings exceeded the incentive compensation threshold, or (b) assign a “pro forma” amount of incentive compensation expense to core earnings, even though no incentive compensation was actually incurred. The Company believes that neither of these allocation methodologies achieves a logical result. Accordingly, the exclusion of incentive compensation facilitates comparability between periods and avoids the distortion to the Company’s non-GAAP operating measure that would result from the inclusion of incentive compensation that relates to non-core earnings.

With regard to non-capitalized transaction-related expenses, management does not view these costs as part of the Company’s core operations, as they are considered by management to be similar to realized losses incurred at acquisition. Non-capitalized transaction-related expenses are generally legal and valuation service costs, as well as other professional service fees, incurred when the Company acquires certain investments, as well as costs associated with the acquisition and integration of acquired businesses.

Through its wholly owned subsidiaries, the Company originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the transfer of loans to the GSEs or mortgage investors, the Company reports realized gains or losses on the sale of originated residential mortgage loans and retention of mortgage servicing rights, which the Company believes is an indicator of performance for the Origination and Servicing segments and therefore included in core earnings. Realized gains or losses on the sale of originated residential mortgage loans had no impact on core earnings in any prior period, but may impact core earnings in future periods.

Core earnings includes results from operating companies with the exception of the unrealized gains or losses due to changes in valuation inputs and assumptions on MSRs, net of unrealized gains and losses on hedged MSRs, and non-capitalized transaction-related expenses.

Management believes that the adjustments to compute “core earnings” specified above allow investors and analysts to readily identify and track the operating performance of the assets that form the core of the Company’s activity, assist in comparing the core operating results between periods, and enable investors to evaluate the Company’s current core performance using the same measure that management uses to operate the business. Management also utilizes core earnings as a measure in its decision-making process relating to improvements to the underlying fundamental operations of the Company’s investments, as well as the allocation of resources between those investments, and management also relies on core earnings as an indicator of the results of such decisions. Core earnings excludes certain recurring items, such as gains and losses (including impairment and reserves as well as derivative activities) and non-capitalized transaction-related expenses, because they are not considered by management to be part of the Company’s core operations for the reasons described herein. As such, core earnings is not intended to reflect all of the Company’s activity and should be considered as only one of the factors used by management in assessing the Company’s performance, along with GAAP net income which is inclusive of all of the Company’s activities.

The primary differences between core earnings and the measure the Company uses to calculate incentive compensation relate to (i) realized gains and losses (including impairments and reserves for expected credit losses), (ii) non-capitalized transaction-related expenses and (iii) deferred taxes (other than those related to unrealized gains and losses). Each are excluded from core earnings and included in the Company’s incentive compensation measure (either immediately or through amortization). In addition, the Company’s incentive compensation measure does not include accretion on held-for-sale loans and the timing of recognition of income from consumer loans is different. Unlike core earnings, the Company’s incentive compensation measure is intended to reflect all realized results of operations.

Core earnings does not represent and should not be considered as a substitute for, or superior to, net income or as a substitute for, or superior to, cash flows from operating activities, each as determined in accordance with U.S. GAAP, and the Company’s calculation of this measure may not be comparable to similarly entitled measures reported by other companies. Set forth below is a reconciliation of core earnings to the most directly comparable GAAP financial measure (dollars in thousands, except share and per share data):

		Three Months Ended
		March 31, 2022				December 31, 2021
Net income attributable to common stockholders		$	661,861			$	160,436
Adjustments for Non-Core Earnings:
Impairment			3,740				(107	)
Change in fair value of investments			(628,599	)			(124,356	)
(Gain) loss on settlement of investments, net			(28,342	)			53,933
Other (income) loss, net			(61,575	)			28,416
Other income and impairment attributable to noncontrolling interests			5,609				(3,297	)
Non-capitalized transaction-related expenses			13,485				16,735
Preferred stock management fee to affiliate			4,729				4,734
Deferred taxes			201,323				31,674
Interest income on residential mortgage loans, held-for-sale			2,334				23,175
Core earnings of equity method investees:
Excess mortgage servicing rights			2,830				532
Core earnings		$	177,395			$	191,875
Net income per diluted share		$	1.37			$	0.33
Core earnings per diluted share		$	0.37			$	0.40
Weighted average number of shares of common stock outstanding, diluted			484,425,066				485,381,890

SEGMENT INFORMATION

		Origination and Servicing												Residential Securities, Properties and Loans
First Quarter 2022		Origination				Servicing				MSR Related Investments				Real Estate Securities				Properties & Residential Mortgage Loans				Mortgage Loans Receivable				Corporate & Other				Total
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables		$	(653	)		$	349,058			$	107,995			$	—			$	—			$	—			$	—			$	456,400
Change in fair value of MSRs and MSR financing receivables			—				497,317				78,076				—				—				—				—				575,393
Servicing revenue, net			(653	)			846,375				186,071				—				—				—				—				1,031,793
Interest income			55,371				11,353				15,702				56,349				26,989				34,277				25,372				225,413
Gain on originated mortgage loans, held-for-sale, net			407,269				61,762				—				—				566				—				—				471,996
Total revenues			461,987				919,490				201,773				56,349				27,555				34,277				25,372				1,729,202
Interest expense			29,435				33,706				26,365				9,029				20,868				6,969				12,461				138,833
G&A and other			408,758				124,780				56,010				772				23,434				16,408				33,884				664,046
Total operating expenses			438,193				158,486				82,375				9,801				44,302				23,377				46,345				802,879
Change in fair value of investments			—				(32	)			(1,409	)			(125,949	)			(32,748	)			26,752				(13,733	)			(147,119	)
Gain (loss) on settlement of investments, net			—				(315	)			(2,199	)			49,420				44,912				(30,634	)			—				61,184
Other income (loss), net			2,095				881				28,943				(1,889	)			17,345				—				8,697				56,072
Total other income (loss)			2,095				534				25,335				(78,418	)			29,509				(3,882	)			(5,036	)			(29,863	)
Impairment charges (reversals)			—				—				—				711				3,029				—				—				3,740
Income (loss) before income taxes			25,889				761,538				144,733				(32,581	)			9,733				7,018				(26,009	)			892,720
Income tax expense (benefit)			6,516				161,116				31,463				—				3,657				—				37				202,789
Net income (loss)			19,373				600,422				113,270				(32,581	)			6,076				7,018				(26,046	)			689,931
Noncontrolling interests in income (loss) of consolidated subsidiaries			407				—				228				—				—				—				4,974				5,609
Dividends on preferred stock			—				—				—				—				—				—				22,461				22,461
Net income (loss) attributable to common stockholders		$	18,966			$	600,422			$	113,042			$	(32,581	)		$	6,076			$	7,018			$	(53,481	)		$	661,861
As of March 31, 2022
Total Assets		$	6,505,753			$	9,696,606			$	5,315,467			$	10,535,948			$	2,961,796			$	1,959,099			$	893,878			$	37,868,547
Total New Residential stockholder’s equity		$	1,192,812			$	2,874,044			$	1,507,095			$	1,043,116			$	320,311			$	518,745			$	(333,489	)		$	7,122,634

		Origination and Servicing											Residential Securities, Properties and Loans
Fourth Quarter 2021		Origination			Servicing				MSR Related Investments				Real Estate Securities				Properties & Residential Mortgage Loans				Mortgage Loans Receivable			Corporate & Other				Total
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables		$	15,548		$	329,745			$	118,907			$	—			$	—			$	—		$	—			$	464,200
Change in fair value of MSRs and MSR financing receivables			—			(109,009	)			(45,012	)			—				—				—			—				(154,021	)
Servicing revenue, net			15,548			220,736				73,895				—				—				—			—				310,179
Interest income			79,087			7,169				13,195				53,690				32,551				4,219			27,644				217,555
Gain on originated mortgage loans, held-for-sale, net			540,662			48,661				(1,186	)			(15,158	)			(3,164	)			—			—				569,815
Total revenues			635,297			276,566				85,904				38,532				29,387				4,219			27,644				1,097,549
Interest expense			46,595			31,756				23,573				8,322				17,854				1,000			12,836				141,936
G&A and other			508,207			134,057				49,899				677				27,822				1,802			35,060				757,524
Total operating expenses			554,802			165,813				73,472				8,999				45,676				2,802			47,896				899,460
Change in fair value of investments			—			—				(3,556	)			20,076				774				—			(6,795	)			10,499
Gain (loss) on settlement of investments, net			—			(2,146	)			(21,636	)			(19,980	)			(2,056	)			—			176				(45,642	)
Other income (loss), net			1,780			(339	)			22,464				—				30,001				—			365				54,271
Total other income (loss)			1,780			(2,485	)			(2,728	)			96				28,719				—			(6,254	)			19,128
Impairment charges (reversals)			—			—				—				(181	)			74				—			—				(107	)
Income (loss) before income taxes			82,275			108,268				9,704				29,810				12,356				1,417			(26,506	)			217,324
Income tax expense (benefit)			22,766			4,332				(5,870	)			—				8,253				—			4				29,485
Net income (loss)			59,509			103,936				15,574				29,810				4,103				1,417			(26,510	)			187,839
Noncontrolling interests in income (loss) of consolidated subsidiaries			1,516			—				(1,003	)			—				—				—			4,395				4,908
Dividends on preferred stock			—			—				—				—				—				—			22,495				22,495
Net income (loss) attributable to common stockholders		$	57,993		$	103,936			$	16,577			$	29,810			$	4,103			$	1,417		$	(53,400	)		$	160,436
As of December 31, 2021
Total Assets		$	10,431,260		$	8,526,485			$	5,023,734			$	9,998,749			$	3,227,445			$	1,683,761		$	850,756			$	39,742,190
Total New Residential stockholder’s equity		$	1,738,293		$	2,071,873			$	1,269,681			$	951,449			$	607,492			$	422,560		$	(457,316	)		$	6,604,032

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information in this press release constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, our ability to continue growing book value in the second quarter, expected upward move in treasury yields and Fed’s expected policy actions, expected market volatility and ability to generate great returns for our shareholders in 2022 and beyond. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Cautionary Statements Regarding Forward Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual and quarterly reports and other filings filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website (www.newresi.com). New risks and uncertainties emerge from time to time, and it is not possible for New Residential 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. Forward-looking statements contained herein speak only as of the date of this press release, and New Residential expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in New Residential's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

ABOUT NEW RESIDENTIAL

New Residential is a leading provider of capital and services to the mortgage and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a complementary portfolio of investments and operating businesses. Since inception in 2013, New Residential has delivered approximately $4.0 billion in dividends to shareholders. New Residential’s investment portfolio is composed of mortgage servicing related assets (full and excess MSRs and servicer advances), residential securities (and associated called rights) and loans (including single family rental), and consumer loans. New Residential’s investments in operating entities include leading origination and servicing platforms through wholly-owned subsidiaries, Newrez LLC, Caliber Home Loans Inc., and Genesis Capital LLC, as well as investments in affiliated businesses that provide mortgage related services. New Residential is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005573/en/

Investor Relations

IR@NewResi.com

Source: New Residential Investment Corp.

FAQ

What were the financial highlights for New Residential (NRZ) in Q1 2022?

New Residential reported a GAAP net income of $661.9 million, or $1.37 per diluted share, and core earnings of $177.4 million, translating to $0.37 per diluted share.

How much is the common dividend declared by New Residential (NRZ) for Q1 2022?

The common dividend for Q1 2022 is $116.7 million, equivalent to $0.25 per common share.

What is the book value per share for New Residential (NRZ) as of March 31, 2022?

The book value per share increased to $12.56 as of March 31, 2022.

How did the origination segment perform for New Residential (NRZ) in Q1 2022?

The origination segment's pre-tax income fell to $25.9 million in Q1 2022 from $82.3 million in Q4 2021, with funded production dropping to $26.9 billion.

What was the total shareholder return for New Residential (NRZ) in Q1 2022?

New Residential achieved approximately 5% total shareholder return in the first quarter of 2022.