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Jun 30, 2020

NRZ Q2 2020 Earnings Report

New Residential Investment Corp. reported results for the second quarter of 2020, demonstrating recovery and strategic progress amidst the COVID-19 pandemic.

Key Takeaways

New Residential Investment Corp. reported a GAAP net loss of $8.9 million, or $0.02 per diluted common share, but achieved core earnings of $140.2 million, or $0.34 per diluted common share. The company grew its servicing portfolio and maintained over $1 billion in cash, while making strides in its origination and servicing businesses.

GAAP Net Loss of ($8.9) million, or ($0.02) per diluted common share.

Core Earnings of $140.2 million, or $0.34 per diluted common share.

Common Dividend of $41.6 million, or $0.10 per common share.

Cash of $1,013.2 million as of June 30, 2020

Total Revenue
$116M
Previous year: $188M
-38.4%
EPS
$0.34
Previous year: $0.53
-35.8%
Servicing Portfolio UPB
$278B
Gross Profit
$294M
Previous year: $177M
+66.5%
Cash and Equivalents
$1.01B
Previous year: $406M
+149.5%
Total Assets
$23.8B
Previous year: $36.8B
-35.4%

NRZ

NRZ

Forward Guidance

The company will focus on growing operating businesses and prudently deploying capital in a low rate environment. Executing this strategy is expected to grow book value and create strong earnings for shareholders in the near and long term.

Positive Outlook

  • Growing operating businesses
  • Prudently deploying capital in a low rate environment
  • Growing book value
  • Creating strong earnings for shareholders in the near term
  • Creating strong earnings for shareholders in the long term

Challenges Ahead

  • Exposure to the ongoing COVID-19 pandemic
  • Uncertainties in the mortgage and financial services industry
  • Potential mark to market exposure
  • Risks related to interest rate environments
  • Dependence on key business initiatives and their execution