NRZ

New Residential Investment Corp

Finance/Real Estate


Presented:05/20/2015
Price:$17.64
Cap:N/A
Current Price:$10.85
Cap:$5.64B

Presented

Date05/20/2015
Price$17.64
Market CapN/A
Ent Value$3.51B
P/E Ratio7.4x
Book Value$11.08
Div Yield10.2%
Shares O/S198.94M
Ave Daily Vol2,810,000
Short Int1.59%

Current

Price$10.85
Market Cap$5.64B
New Residential Investment Corp., a real estate investment trust (REIT), focuses on investing in and managing residential mortgage related assets. It operates through Servicing Related Assets, Residential Securities and Loans, and Other Investments segments. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, including the basic fee component of the related MSRs. It also acquires and manages a diversified portfolio of credit sensitive real estate securities, such as non-agency and agency residential mortgage backed securities; and acquires residential mortgage loans comprising performing, non-performing, re-performing, and reverse mortgage loans. In addition, the company has an interest in a portfolio of consumer loans, including unsecured and homeowner loans. It has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes for the tax year. The company was founded in 2011 and is based in New York, New York.

Publicly traded companies mentioned herein: Fortress Investment Group LLC (FIG), New Residential Investment Corp. (NRZ), Ocwen Financial Corp. (OCN)

Highlights

The presenter is long shares of New Residential Investment Corp (NRZ), and sees a favorable risk/ reward setup with shares trading in the high teens ($17 - $18). NRZ’s $1.3 billion acquisition of Home Loan Servicing Solutions (HLSS) - which severed ties with Ocwen early in 2015 - expands its servicing relationships to include both Nationstar Mortgage and Ocwen Financial, the two largest non-bank servicers, and adds ~$165 billion unpaid principal balance (UPB) of mortgage servicing rights (“MSRs”) to its book of business.

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