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Post by xray on Oct 18, 2021 22:27:08 GMT
Business Wire New Residential Investment Corp. Schedules Third Quarter 2021 Earnings Release and Conference CallMon, October 18, 2021, 4:15 PM NRZ +0.18% NRZ-PA -0.67% NRZ-PB -0.19% NRZ-PC -0.34% NRZ-PD -0.04% NEW YORK, October 18, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE:NRZ, "New Residential" or the "Company") announced today that it will release its third quarter 2021 financial results for the period ended September 30, 2021 on Tuesday, November 2, 2021 prior to the opening of the New York Stock Exchange. In addition, management will host a conference call on Tuesday, November 2, 2021 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 Third Quarter 2021 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at dpregister.com/sreg/10160952/ee52599f38. 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. Live Long and Prosper....
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Post by xray on Oct 18, 2021 22:31:00 GMT
Zacks New Residential Investment (NRZ) Earnings Expected to Grow: What to Know Ahead of Q3 Release Zacks Equity Research Mon, October 18, 2021, 3:00 PM
NRZ-PC -0.34%
Wall Street expects a year-over-year increase in earnings on higher revenues when New Residential Investment (NRZ) reports results for the quarter ended September 2021. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This real estate investment trust is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +12.9%.
Revenues are expected to be $172.7 million, up 67.2% from the year-ago quarter.
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Live Long and Prosper....
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Post by richardsok on Oct 19, 2021 2:39:51 GMT
my 2 cents --
NRZ has not been able to beat any earnings consensus for the past several quarters, so I believe there's scant reason to bet there'll be a meaningful earnings surprise this time. Further, NRZ is trading right at previous resistance levels. I have good unrealized gains on my existing shares. Will hold for the distributions, but won't accumulate more.
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Post by xray on Oct 19, 2021 11:12:26 GMT
richardsok, Your: NRZ has not been able to beat any earnings consensus for the past several quarters, so I believe there's scant reason to bet there'll be a meaningful earnings surprise this time. Further, NRZ is trading right at previous resistance levels. I have good unrealized gains on my existing shares. Will hold for the distributions, but won't accumulate more. --------- From your point of view, your probably right.... Looking at it from my perspective [longer term], NRZ has more to go as their "BOOK VALUE" is currently 11.27 [reported on 7/29 ... last Qtr] with a current MktPrc of 11.34 [fully valued currently]. Looking back at Book Values, NRZ had a book value of 10.87 on 2/9 and they repurchased 200mil of their stock in the same period. Looking back @ MktPrc's, On 1/1 it was 9.32, 6/30 it was 8.98, 9/30 it was 10.71. They recently raised their dividend to $0.25/Qtr or $1.00/Yr [will probably affect this Qtr's reporting period]. Keep in mind this is a "Penny Stock". Penny Stocks are "Long Holding" types and not usually too good for trading. Some of us currently have very good CapGains on NRZ [6/30 had a MktPrc of 8.98]. Add to this that a insider bought 100,000sh at 10.10 on 4/19... Not trying to change your mind [or for you to increase your personal risk assessment] but giving you where some of us are coming from in investing in this particular penny stock.... Disclosure: Currently, many of us are maintaining a phase #4 position [8%-10%] in NRZ.... Live Long and Prosper....
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Post by richardsok on Oct 19, 2021 11:38:16 GMT
Thanks, X. At 2.5% of PV, I'm OK with current allocation. Will be watching with great interest to see if NRZ can pierce resistance levels.
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Post by xray on Oct 19, 2021 17:32:16 GMT
NRZ News:
New Residential Bolsters Its Mortgage Offerings With Fix-and-Flip Lender New Residential is building its residential lending arm. Brent Nyitray, CFA (TMFBrentNyitray) Oct 19, 2021 at 7:30AM
Key Points
New Residential bought Genesis LLC, an originator of business-purpose loans. The economic environment is ideal for non-guaranteed loans. With its shares trading at book value, New Residential looks cheap. While 2020 was a banner year for the mortgage industry, 2021 is turning out to be a lot more competitive. We have seen profit margins decline as more lenders compete for business. During this time, New Residential Investment (NYSE:NRZ×) has been acquiring smaller lenders and building its footprint in the mortgage business. This move will help insulate the company from an impending change in Federal Reserve monetary policy.
Mortgage REITs are different than most REITs New Residential has historically been thought of as a mortgage real estate investment trust (REIT). These REITs are a bit different than a typical REIT that develops property. Mortgage REITs invest in real estate debt (in other words, mortgages) and earn interest instead of rent. New Residential also originates mortgages, and it has been building that arm of its business.
New Residential has been beefing up its mortgage origination offerings lately, and recently completed the acquisition of Caliber Home Loans. This acquisition vaults New Residential into the top echelon of non-bank mortgage originators. New Residential hasn't finished its build-out efforts, however; it recently announced it was purchasing Genesis LLC, which originates and services business-purpose loans.
New Residential is interested in professional real estate investors
Genesis focuses on loans to professional real estate developers. Many of these loans fall outside the traditional mortgage financing ecosystem, which is mainly made up of longer-term mortgages that can be guaranteed by the U.S. government. These loans are much shorter term and carry higher rates than the typical Fannie Mae or Freddie Mac mortgage.
This business helps insulate New Residential from the Fed
For New Residential, these loans are attractive because they carry little interest rate risk. This is simply because shorter-term loans are less sensitive to daily interest rate movements. As a general rule, the longer the loan term, the greater the interest rate risk. This is important because the overwhelming consensus is that the Fed is going to raise rates next year. If you look at the December 2022 Fed funds futures chart, the market thinks there is a better-than-90% chance of a hike next year.
New Residential is bearing credit risk with these loans, which is an attractive risk in this environment. Here's why: Home price appreciation is rising at a high-teens percentage clip. These loans are "money good" given that the value of the property is much, much higher than the amount of the loan. If for some reason the borrower defaults, New Residential will easily cover the loan by foreclosing and selling the property.
Genesis is expected to originate about $2 billion in loans this year, which is small compared to New Residential's normal origination. That said, with increasing competition in the plain-vanilla mortgage space, the profitability of these loans should be much higher.
New Residential has always been an interesting sum-of-the-parts story. The stock is trading right around its book value per share of $11.27. Since mortgage banks generally trade based on earnings and not book value, you could make an argument that the stock is undervalued.
That said, mortgage originators are generally out of favor at the moment given the fear of higher interest rates going forward. The key to unlocking value in New Residential might be dependent on a change in investor attitudes toward the sector in general. New Residential has an 8.8% dividend yield, which means investors are being paid pretty well to wait for a revaluation of the sector.
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Live Long and Prosper....
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Post by xray on Oct 22, 2021 9:16:38 GMT
USDP News: Business Wire USD Partners Announces Quarterly Distribution Increase and its Third Quarter 2021 Earnings Release DateThu, October 21, 2021, 4:35 PM USDP +0.44% HOUSTON, October 21, 2021--(BUSINESS WIRE)--USD Partners LP (NYSE: USDP) (the "Partnership") announced today that the Board of Directors of its general partner declared a quarterly cash distribution of $0.1185 per unit for the third quarter of 2021 ($0.474 per unit on an annualized basis), representing an increase of $0.0025 per unit, or 2.2% over the distribution declared for the second quarter of 2021. The quarterly increase is in-line with management’s previously stated guidance. The distribution is payable on November 12, 2021, to unitholders of record at the close of business on November 3, 2021.Third Quarter 2021 Earnings Release Date and Conference Call InformationThe Partnership plans to report third quarter 2021 financial and operating results after market close on Tuesday, November 2, 2021. The Partnership will host a conference call and webcast regarding third quarter 2021 results at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Wednesday, November 3, 2021. To listen live over the Internet, participants are advised to log on to the Partnership’s website at www.usdpartners.com and select the "Events & Presentations" sub-tab under the "Investors" tab. To join via telephone, participants may dial (866) 342-8591 domestically or +1 (203) 518-9713 internationally, conference ID 2035204. Participants are advised to dial in at least five minutes prior to the call. About USD Partners LPUSD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC ("USD") to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies and refiners. The Partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The Partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the Partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail. ---------- Comment: Increase was expected because of their increase revenue that is expected to start in the 1st Qtr of 2022.... Disclosure: Some of us continue to maintain a Phase #3 position in USDP [6%-8% with a "at risk" assessment] with previous CapGain received.... Live Long and Prosper....
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Post by xray on Oct 22, 2021 9:24:10 GMT
USDP was paying $0.116/Qtr
Live Long and Prosper....
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Post by xray on Oct 22, 2021 16:44:50 GMT
TWO article:
Is Two Harbors Investment Corp a Buy? Oct 22, 2021 by Brent Nyitray, CFA
Income investors looking for yield should take a look at the mortgage real estate investment trust (REIT) market. Mortgage REITs often throw off double-digit dividend yields, and this is one sector where such a yield is not necessarily a warning flag. That said, mortgage REITs will face a headwind from the Federal Reserve going forward. One such mortgage REIT is Two Harbors (NYSE: TWO), which has a 10.6% yield and trades for book value per share. Is the stock a buy?
Mortgage REITs are different
Mortgage REITs are a different type of investment than the traditional REIT. Most REITs develop properties and then rent out the units. For example, office REITs build skyscrapers and rent out the office space. Mall REITs develop shopping malls and rent out the stores. They borrow money to develop the properties and then earn rental income.
Mortgage REITs don’t buy properties -- they buy real estate debt (in other words, mortgages). In this sense, the mortgage REIT more closely resembles a bank than it does a traditional REIT, which follows the landlord/tenant model. Mortgage REITs borrow money at low interest rates and invest the proceeds in higher-yielding mortgage-backed securities.
Two Harbors invests in government-guaranteed mortgage backed securities
Two Harbors invests primarily in mortgage-backed securities, which are guaranteed by the U.S. government. These securities are usually issued by Fannie Mae and Freddie Mac. These securities generally have lower yields given the fact that principal and interest payments are backstopped by the U.S. government.
For example, in the quarter that ended on June 30, 2020, Two Harbors' investment portfolio yielded 2.72%, and its cost of borrowing was 0.79%. The difference between those numbers represents the net interest margin, which is the income it uses to pay dividends. Mortgage servicing rights increase in value as interest rates rise
Two Harbors also invests in securities called mortgage servicing rights, which are one of the most unique financial assets out there. Mortgage servicing involves handling the administrative tasks of the mortgage. The mortgage servicer will collect the borrower’s monthly payments, make sure property taxes are paid on time, and will handle delinquencies and foreclosures. The servicer is paid 0.25% annually for providing this service. The right to perform that service is worth something, and it is valued as an asset on Two Harbor’s balance sheet.
Why would a mortgage REIT want to hold mortgage servicing assets? Mortgage servicing rights have an extremely unusual characteristic in that they increase in value as interest rates rise. Bonds go down when rates go up. Stocks do the same thing (hence the old market saw: Don’t fight the Fed). The ability of mortgage servicing rights to increase in value gives Two Harbors a hedge against rising rates.
The Fed is not on your side as an investor in this stock
The hedge against rising rates is important for two reasons. First, the Fed forecasted roughly a 50-50 chance of a rate hike in 2022. Second, the Fed has been buying mortgage-backed securities since the early days of COVID in an attempt to support the economy. The September 2021 FOMC statement was taken as a warning by the market that the Fed will start reducing its purchases of mortgage-backed securities.
This reduction could put pressure on mortgage-backed securities pricing, which would impact Two Harbor’s book value per share. During the 2013 “Taper Tantrum,” agency mortgage REITs like Two Harbors suffered heavy losses and cut their dividends. While a repeat of 2013 doesn’t appear to be in the cards, mortgage REITs will be vulnerable.
So, is Two Harbors a buy? At its current levels, it is trading right at book value per share of $6.42. The stock pays a quarterly dividend of $0.17 per share, which gives the company a dividend yield of 10.7%. I would be more excited about the stock if it was trading at a bigger discount to book value.
Mortgage REITs generally trade right around book value per share and become attractive when trading at a high single-digit discount to book. If I already owned Two Harbors, I would hold it, but I wouldn’t reach for it at book value per share. The next six months to a year will not be a friendly environment for the mortgage REITs, especially those that hold government-guaranteed paper.
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Comment: Negative comments above should be considered if holding or buying TWO. Currently TWO has a "BUY" signal [7stars up from 6stars] with a 55 report card rating and power rating of 71. Their next Qtrly report should assist us in another total re-review of this penny stock.... Disclosure: Some of us currently continue to have a [long term view] phase #3 "@risk" position of 6%-8% in TWO....
Live Long and Prosper....
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Post by xray on Oct 25, 2021 20:27:23 GMT
TWO News: Business Wire Two Harbors Investment Corp. Announces Public Offering of Common Stock
Mon, October 25, 2021, 4:12 PM In this article:
TWO +0.15%
TWO-PA +0.27%
TWO-PB +0.04%
NEW YORK, October 25, 2021--(BUSINESS WIRE)--Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, today announced that it has commenced an underwritten public offering of 30,000,000 shares of its common stock. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 4,500,000 shares of its common stock. The Company intends to use the net proceeds from the offering to purchase its target assets, including residential mortgage-backed securities, mortgage servicing rights and other financial assets, in each case subject to its investment guidelines and to the extent consistent with maintaining its real estate investment trust qualification, and for general purposes.
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Live Long and Prosper....
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Post by xray on Oct 29, 2021 15:41:06 GMT
NRZ News: MILLIONACRES REAL ESTATE FINANCING ARTICLES Why Goldman Sachs Is Selling This Fix-and-Flip Lender Oct 29, 2021 by Liz Brumer
In early 2018, Goldman Sachs (NYSE: GS) acquired Genesis Capital, adding to its portfolio services. Genesis, which specializes in alternative investor financing, including bridge loans, new construction, fix-and-flip loans, and long-term rental loans, is changing hands again, this time to mortgage real estate investment trust (mREIT) New Residential Investment (NYSE: NRZ). The sale is an interesting move, given that Genesis is on track to lend $2 billion in 2021 and has originated over 12,000 loans since 2014. Here's why the company could be saying goodbye to this fix-and-flip lender.
The nature of investing
It seems Genesis, like its latest backings, was a growth opportunity. Goldman Sachs specializes in investment banking, asset management, and advisory services here in the United States and global markets, including investing in existing businesses. Goldman Sachs recently backed two single-family rental (SFR) ventures on Fundrise and proptech start-up Entera, hoping to be ahead of the new single-family rental movement and meet some of the unprecedented demand for not just rental properties but single-family homes, primarily in the Sun Belt region.
Goldman acquired the company, helping Genesis scale its business to new markets and grow its books without jeopardizing its credit quality. While exact numbers of the sale haven't been disclosed, it means that Genesis should, and very likely will, be sold for more than Goldman acquired it for. With this move, Goldman Sachs is able to further diversify its portfolio, increase its liquidity, and have the capital to invest in new opportunities and businesses.
Say hello to your new lender
Given the nature of New Residential's business model, specializing in mortgage servicing and loan origination for residential mortgages, Genesis is a great fit for the company. New Residential has had a strong year despite initial pandemic-related challenges. And the sale should be a welcome boost for company revenues moving forward as it expands its lending services and reaches a new network of potential borrowers.
The Millionacres bottom line
The sale, which is expected to complete in Q4 2021, will be financed with existing cash and committed asset-based financing from Goldman Sachs. Investors who are currently invested in New Residential could see an uptick in share prices or performance at the start of 2022 once the sale is complete, but for now, it's an optimistic acquisition that will likely benefit all three parties.
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Comment: Growth for 2021 & 2022 continues for NRZ. Expect another dividend increase in the 2nd Qtr of 2022.... Disclosure: No change from last disclosure....
Live Long and Prosper....
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Post by xray on Oct 29, 2021 15:46:42 GMT
NRZ News: STOCKS DIVIDEND STOCKS Top Dividend Stocks for November 2021 NLY, NRZ, AGNC, SCCO, and TFSL are top by forward dividend yield By NATHAN REIFF Updated October 28, 2021 Reviewed by JULIUS MANSA
Dividend stocks are companies that pay out a portion of their earnings to a class of shareholders on a regular basis. These companies usually are well established, with stable earnings and a long track record of distributing some of those earnings back to shareholders. The distributions are known as dividends and may be paid out in the form of cash or as additional stock. Most dividends are paid out on a quarterly basis, but some are paid out monthly, annually, or even once in the form of a special dividend. While dividend stocks are known for the regularity of their dividend payments, in difficult economic times, those dividends may be cut to preserve cash.
One useful measure for investors to gauge the sustainability of a company's dividend payments is the dividend payout ratio. The ratio is a measure of total dividends divided by net income, which tells investors how much of the company's net income is being returned to shareholders in the form of dividends versus how much the company is retaining to invest in further growth. If the ratio exceeds 100% or is negative (meaning net income is negative), this indicates the company may be borrowing to pay dividends. In these two cases, the dividends are at a relatively greater risk of being cut.
Below, we look at the top five dividend stocks in the Russell 1000 by forward dividend yield, excluding companies with payout ratios that are either negative or in excess of 100%. Just one of the stocks on our list below – New Residential Investment Corp. (NRZ) - has outperformed the broader market, represented by the iShares Russell 1000 ETF (IWB). IWB has provided a total return of 36.5% over the past 12 months.1 This market performance number and all statistics below are as of Oct. 27, 2021.
Annaly Capital Management Inc. (NLY) Forward dividend yield: 10.13% Payout ratio: 40.6% Price: $8.69 Market cap: $12.6 billion 1-year total return: 34.6%1
Annaly Capital Management is a diversified capital management company that invests in and finances residential and commercial assets. Its investments include agency mortgage-backed securities (MBS), residential real estate, and middle market lending. The company has about $94 billion in total assets.2 On Sept. 9, the company's board announced a common stock cash dividend of $0.22 per common share for the third quarter 2021. This dividend is payable Oct. 29, 2021 to common shareholders of record on Sept. 30, 2021.3
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AGNC Investment Corp. (AGNC) Forward dividend yield: 8.72% Payout ratio: 43.8% Price: $16.51 Market cap: $8.7 billion 1-year total return: 28.0%1 AGNC Investment is an internally-managed mortgage real estate investment trust (REIT) that primarily invests in agency MBS on a leveraged basis. It finances its holdings through collateralized borrowings structured as repurchase agreements (repos).4 On Oct. 7, AGNC declared a cash dividend of $0.12 per share of common stock for October 2021. The dividend is payable on Nov. 9 to common shareholders of record as of Oct. 29, 2021.5
New Residential Investment Corp. (NRZ) Forward Dividend Yield: 8.64% Payout Ratio: 54.3% Price: $11.57 Market Cap: $5.4 billion 1-Year Total Return: 58.1%1 New Residential Investment is a mortgage REIT. It provides capital and services to the mortgage and financial services industries. The company invests in assets with stable, long-term cash flows. Its investment portfolio includes mortgage servicing-related assets, non-agency securities, residential loans, and other related investments.6 On Oct. 11, New Residential announced that it had entered into a definitive agreement to acquire Genesis Capital LLC, a business purpose lender focused on developers of new construction and related projects, for an undisclosed sum. Genesis is anticipated to originate roughly $2 billion of loans in 2021. The terms of the transaction were not disclosed in the press release. The deal is expected to close in Q4 2021.
TFS Financial Corp. (TFSL) Forward dividend yield: 5.74% Payout ratio: 72.7% Price: $19.69 Market cap: $5.5 billion 1-year total return: 27.3%1 TFS Financial is a federally chartered stock holding company that conducts its principal activities through its wholly owned subsidiaries. It offers retail consumer banking services, including mortgage lending, deposit gathering, and other types of financial services. It had total consolidated assets of $14.6 billion as of Sept. 30, 2020.8
Southern Copper Corp. (SCCO) Forward dividend yield: 5.59% Payout ratio: 60.9% Price: $64.38 Market cap: $49.8 billion 1-year total return: 31.0%1 Southern Copper is an integrated copper producer. It produces copper, molybdenum, zinc, lead, coal, and silver. The company operates mining, smelting, and refining facilities in Peru and Mexico, and conducts exploration activities in Chile.
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Live Long and Prosper....
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Post by xray on Nov 2, 2021 9:37:54 GMT
TWO News: Zacks Earnings Preview: Two Harbors Investments (TWO) Q3 Earnings Expected to Decline Zacks Equity Research Mon, November 1, 2021, 3:02 PM
TWO +1.40%
TWO-PA +0.08%
TWO-PB -0.47%
Two Harbors Investments (TWO) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2021. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on November 8, 2021, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
How Have the Numbers Shaped Up for Two Harbors Investments?
For Two Harbors Investments, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Two Harbors Investments will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Two Harbors Investments would post earnings of $0.19 per share when it actually produced earnings of $0.19, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Two Harbors Investments doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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Comment: TWO is currently a 5star security "Penny Stock" [Neutral] with a report card grade of 55 with a power rating of 69 [with acurrent Rf (risk assessment of +0.222 ... need >+.416)]. TWO was up +0.09 from COB Friday yesterday.... Disclosure: Some of us continue to hold a Phase #3 position in TWO....
Live Long and Prosper....
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Post by xray on Nov 2, 2021 14:19:33 GMT
NRZ Qtrly Report Zacks New Residential Investment (NRZ) Surpasses Q3 Earnings and Revenue Estimates Zacks Equity Research Tue, November 2, 2021, 8:05 AM In this article:
NRZ-PC 0.00%
New Residential Investment (NRZ) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25.71%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.31 per share when it actually produced earnings of $0.31, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once.
New Residential Investment, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $190.63 million for the quarter ended September 2021, surpassing the Zacks Consensus Estimate by 10.39%. This compares to year-ago revenues of $103.32 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. New Residential Investment shares have added about 16.3% since the beginning of the year versus the S&P 500's gain of 22.8%.
What's Next for New Residential Investment?
While New Residential Investment has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for New Residential Investment was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.35 on $193.79 million in revenues for the coming quarter and $1.34 on $648.47 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
---------- Business Wire New Residential Investment Corp. Announces Third Quarter 2021 Results Tue, November 2, 2021, 6:30 AM
NRZ +0.09% NRZ-PA +0.20% NRZ-PB +0.20% NRZ-PC +0.24% NRZ-PD +0.08%
NEW YORK, November 02, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; "New Residential" or the "Company") today reported the following information for the third quarter ended September 30, 2021:
Third Quarter 2021 Financial Highlights
GAAP net income of $146.1 million, or $0.30 per diluted common share
Core earnings of $209.9 million, or $0.44 per diluted common share
Common dividend of $116.6 million, or $0.25 per common share
Book value per common share of $11.35
$1.4 billion of cash, for $1.9 billion of total liquidity
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Comment: Qtrly performance was in line with our current expectations. NRZ currently has a 10star rating [last 6-wk period] along with a Report card grading of 100 [Power Rating of 100] with a Rf of +0.603 [need >+0.416]. NRZ closed yesterday @ 11.56 [Up +$0.20 from COB Friday]. Book Value increased +$0.08 from the previous Qtr. Keep in mind that NRZ is no longer a "Penny Stock [>$10].... Disclosure: Some of us are currently maintaining a Phase #4 position in NRZ....
Live Long and Prosper....
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Post by xray on Nov 4, 2021 10:24:36 GMT
NRZ hit a new MktPrc "HIGH" yesterday of 11.81 [no longer a Penny Stock]....
Live Long and Prosper....
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Post by xray on Nov 5, 2021 8:00:09 GMT
WMC Qtrly Business Wire Western Asset Mortgage Capital Corporation Announces Third Quarter 2021 Results Thu, November 4, 2021, 4:34 PM
WMC +1.21%
Conference Call and Webcast Scheduled for Tomorrow, Friday, November 5, 2021 at 12:00 p.m. Eastern Time/9:00 a.m. Pacific Time
PASADENA, Calif., November 04, 2021--(BUSINESS WIRE)--Western Asset Mortgage Capital Corporation (the "Company" or "WMC") (NYSE: WMC) today reported its results for the third quarter ended September 30, 2021.
THIRD QUARTER 2021 RESULTS
During the third quarter we continued strengthening our balance sheet by refinancing a significant portion of our 6.75% Convertible Senior Unsecured notes due in October 2022 (2022 Notes"), and separately improving liquidity.
BUSINESS UPDATE
In August 2021, the Company repurchased $22.3 million aggregate principal amount of its 2022 Notes at an approximate 2.8% discount to par value, plus accrued interest.
In September 2021, the Company issued $86.3 million aggregate principal amount of 6.75% Convertible Senior Unsecured Notes ("2024 Notes"), for net proceeds of $83.4 million. The notes mature on September 15, 2024, unless earlier converted, redeemed or repurchased by the holders pursuant to their terms. Contemporaneous with the issuance of the 2024 Notes, the Company used the net proceeds and $20.2 million in cash on hand to repurchase $100.3 million of the 2022 notes at par plus accrued interest. As of September 30, 2021 there were $45.7 million outstanding in 2022 Notes and $86.3 million outstanding in 2024 Notes.
During the three months ended September 30, 2021, the Company acquired $233.2 million of residential whole loans. During the three months ended September 30, 2021, approximately $157.2 million of Commercial Loans and Non-Agency CMBS investments paid off in full.
THIRD QUARTER 2021 FINANCIAL RESULTS
Our financial results were negatively impacted by a further decline in fair value of two of our commercial investments.
GAAP book value per share was $3.45 at September 30, 2021. Economic book value(1) per share of $3.20 at September 30, 2021. GAAP net loss of $4.2 million or a net loss of $0.07 per basic and diluted share. Distributable Earnings(2) of $3.8 million, or $0.06 per basic and diluted share. Economic return(3) on GAAP book value was negative 1.1% for the quarter. 1.81% annualized net interest margin (1)(4)(5) on our investment portfolio. Recourse leverage was 2.9x at September 30, 2021.
On September 23, 2021, we declared a third quarter common dividend of $0.06 per share.
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Comment: Bad Qtr. Book Value basically remained the same. Current analysis numb3rs remain negative. 3Star with a Report card Grade of 35 [power grade of 62].... Disclosure: Some of us continue to hold a phase "0" position [0-2%] in WMC....
Live Long and Prosper....
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Post by xray on Nov 9, 2021 9:30:57 GMT
TWO Qtrly Business Wire Two Harbors Investment Corp. Reports Third Quarter 2021 Financial ResultsMon, November 8, 2021, 4:15 PM TWO -0.93% TWO-PA -0.30% TWO-PB +0.89% Performance Supported By Spread Tightening in High Coupon RMBS NEW YORK, November 08, 2021--(BUSINESS WIRE)--Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust (REIT), today announced its financial results for the quarter ended September 30, 2021. Quarterly SummaryReported book value of $6.40 per common share, representing a 2.3% quarterly return on book value(1)Generated Comprehensive Income of $45.2 million, representing an annualized return on average common equity of 9.1%Reported Earnings Available for Distribution, or EAD (formerly Core Earnings), of $73.6 million, or $0.24 per weighted average basic common share(2) Declared a third quarter common stock dividend of $0.17 per shareContinued to grow mortgage servicing rights (MSR) portfolio Settled on $14.0 billion unpaid principal balance (UPB) generated through flow-sale program Closed on $15.3 billion UPB through bulk transactions Issued 40 million shares of common stock through an underwritten offering for net proceeds of approximately $256.5 million Post-Quarter End UpdateIssued 30 million shares of common stock through an underwritten offering for net proceeds of approximately $193.7 million. Expect to settle on outstanding commitments of $21 billion UPB of MSR through bulk transactions in upcoming quartersConference CallTwo Harbors Investment Corp. will host a conference call on November 9, 2021 at 9:00 a.m. ET to discuss third quarter 2021 financial results and related information. The conference call will be webcast live and accessible in the Investors section of the company’s website at www.twoharborsinvestment.com/investors. To participate in the teleconference, please call toll-free (877) 502-7185, approximately 10 minutes prior to the above start time. For those unable to attend, a telephone playback will be available beginning at 12:00 p.m. ET on November 9, 2021, through 12:00 p.m. ET on November 23, 2021. The playback can be accessed by calling (877) 660-6853, conference code 13723524. The call will also be archived on the company’s website in the News & Events section. ---------- Live Long and Prosper....
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Post by xray on Nov 9, 2021 17:27:22 GMT
NRZ Simply Wall St. New Residential Investment's (NYSE:NRZ) investors will be pleased with their respectable 51% return over the last year Tue, November 9, 2021, 9:56 AM
NRZ -0.04%
NRZ-PA -0.39%
NRZ-PB -0.59%
NRZ-PC -0.13%
NRZ-PD -0.08%
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the New Residential Investment Corp. (NYSE:NRZ) share price is up 39% in the last 1 year, clearly besting the market return of around 31% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! In contrast, the longer term returns are negative, since the share price is 35% lower than it was three years ago.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the last year New Residential Investment grew its earnings per share, moving from a loss to a profit. The result looks like a strong improvement to us, so we're not surprised the market likes the growth. Inflection points like this can be a great time to take a closer look at a company.
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on New Residential Investment's earnings, revenue and cash flow.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, New Residential Investment's TSR for the last 1 year was 51%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
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Live Long and Prosper....
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Post by xray on Nov 10, 2021 9:53:11 GMT
NRZ TipRanks 2 “Strong Buy” Dividend Stocks With 8% Dividend Yield TipRanks Tue, November 9, 2021, 8:52 PM
NRZ 0.00% NRZ-PA -0.38% NRZ-PB -0.35% NRZ-PC -0.08% NRZ-PD -0.16%
ORCC -1.56%
Let’s talk about rising markets, and whether or not to buy in. That’s the question that investors need to consider right now, as the major indexes have hit record highs – but the economy is flashing signs of concern for those who care to look. Inflation continues to rise, and the 10-year Treasury bond yield, which had risen above 1.5%, has slipped to 1.4% and is trending down. Investors are seeking returns, and so are drawn to the stock markets; they’re banking that central banks will keep interest rates low at least for the near-term.
Watching the markets from Wall Street, the major banking firms are finding it hard to come to agreement. There are bulls who say, ‘Buy,’ but the bears are active, too. On that latter note, Morgan Stanley’s CIO of wealth management, Lisa Shalett, writes: “Surprisingly weak low-end consumer confidence, a recent downturn in CFO optimism, a quickly normalizing savings rate and anxious mood in the political arena suggest that all is not Goldilocks. We believe risks of a market bubble are growing, mitigating forward returns.” All of this adds up to a market environment that lends itself to defensive stock plays, as a hedge against uncertainty. And that, of course, brings us to dividend stocks. These are the classic defensive plays, giving investors a dual path toward returns, from both the share appreciation and the dividend payments. Using TipRanks' database, we’ve pulled up the info on two dividend stocks that recently gotten some love from the Street’s stock watchers. These are stocks with Strong Buy consensus ratings from the Street, and dividend yields at ~8%. Here are the details.
Owl Rock Capital Corporation (ORCC)
We’ll start in the financial sector, with Owl Rock Capital. This company is a mid-market financing specialist, one of the many such companies that gives small- and mid-market companies access to credit and loan facilities outside of the main banking sector. Firms like Owl Rock are essential in the economic system, as they are in a sense the lifeblood of small and medium enterprises – which in turn are the engine of US job creation. Owl Rock has a portfolio including over $12.6 billion in total assets, and investments in 129 companies. Earlier this month, Owl Rock released its 3Q21 numbers, and the results are of interest to investors. The company showed a total investment income of $269.2 million, up an impressive 43% year-over-year. EPS came in at 33 cents, flat yoy but up 6.4% sequentially. Owl Rock made $2.794 billion in new investments during the quarter, in 34 companies. These included 21 companies new to ORCC’s portfolio, and 13 existing investments.
On the balance sheet, Owl Rock reported $794.7 million in total cash assets, along with $1.6 billion in undrawn credit. This stands against $7 billion in outstanding debt principal. The company’s cash assets grew 26% from the end of Q2. Owl Rock has already declared its Q4 dividend, at 31 cents per common share. This will mark the fourth consecutive quarter at this payment level. The $1.24 annualized payment makes a yield of 8.5%, far higher than Treasury bonds, and more than 4x the average dividend yield found among S&P-listed companies.
JMP’s 5-star analyst Devin Ryan is impressed with Owl Rock’s execution in recent months, writing, “Over the past five quarters, management consistently communicated to investors an expectation for net investment income to cover the dividend in 2H21. We are pleased to see the significant progress made over that period to fully ramp the investment portfolio, and expect the BDC to continue fully earning the dividend going forward. Heading into year-end, the company has a strong backlog of deals expected to close during the quarter, which should enable the BDC to maintain a fully invested portfolio during a period of heightened repayment activity. In short, we expect Owl Rock to outperform as it operates at optimal scale.” Ryan’s comments support his Outperform (i.e. Buy) rating on the stock, and his $16 price target suggests an upside of 10.5% in the year ahead. Based on the current dividend yield and the expected price appreciation, the stock has ~19% potential total return profile.
Overall, Owl Rock gets a unanimous Strong Buy rating from the analyst consensus, with 3 positive reviews set in recent weeks. The shares are priced at $14.50 and their $16 average target matches Ryan’s, for a 10% upside potential over the next 12 months. (See ORCC stock analysis on TipRanks)
New Residential Investment (NRZ)
For the second stock, we’ll turn to a real estate investment trust. These companies are classic dividend plays – tax code requires them to return a high percentage of profits directly to investors, and dividends are their usually choice for compliance. New Residential is a typical REIT, with a $6 billion portfolio; of that total, mortgage origination and mortgage services each make up 29%, while mortgage servicing rights and servicer advances make up 22%.
Earlier this month, the company released financial results from Q3 2021. New Residential reported top line revenue of $960 million. This was up more than $500 million from the previous quarter. The company’s EPS was reported as 44 cents, up 41% yoy. The EPS was the highest in the past 6 quarters. The company reported over $41 billion in total assets, including more than $1.56 billion in available liquidity.
Turning to the dividend, New Residential pays out 25 cents per common share. The most recent declaration was made in October. With an annualized rate of $1, this dividend yields a solid 8.7%. This Q3 dividend was raised to 25 cents at its declaration back in August, when the company also completed its acquisition of Caliber Home Loans. The acquisition move is expected to boost the combined entity’s mortgage funding to $45 billion.
Analyst Eric Hagen, from BTIG, covers New Residential shares, and takes a bullish stand, writing: “The company's leverage, excluding Agency MBS used as a hedge for MSR, was only 1x. We remain very constructive with the stock trading at book value and about a 9% dividend yield, given our outlook for further MSR strength and a sustainable leverage position and an enhanced risk management framework to support its capital structure with the onboarding of Caliber.” Hagen uses his comments to support his Buy rating on NRZ shares, and his $13 price target indicates potential for ~14% upside over the coming year.
This stock has gotten a lot of love from Wall Street – there are no fewer than 7 positive reviews on record, supporting the unanimous Strong Buy consensus rating. Shares in NRZ are selling for $11.41 and they carry an average price target of $12.57 for a one-year upside potential of 10%.
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Live Long and Prosper....
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Post by xray on Nov 10, 2021 15:40:17 GMT
TWO Two Harbors Investment (TWO) Q3 2021 Earnings Call Transcript TWO earnings call for the period ending September 30, 2021. Motley Fool Transcribing Nov 9, 2021 at 9:31PM
Two Harbors Investment (NYSE:TWO) Q3 2021 Earnings Call Nov 09, 2021, 9:00 a.m. ET
Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:
We caution investors not to rely unduly on forward-looking statements except as may be required by law. Two Harbors does not update forward-looking statements and expressly disclaims any obligation to do so. I will now turn the call over to Bill.
Bill Greenberg -- President, Chief Executive Officer, and Chief Investment Officer
At quarter end, book value was $6.40 per share, representing a 2.3% total economic quarterly return. The performance, which was largely in line with the dividends, reflected the partial retracement tighten of high coupon spreads as recent data pointed to early signs of burnout and slower prepayment speeds. Earnings available for distribution, formerly known as core earnings were $0.24 per share. Elevated activity in the MSR market continued in the third quarter and into the fourth. We saw $120 billion UPB in bulk deals come to market in Q3 and another $100 billion in October, bringing the year-to-date volumes to approximately $400 billion.
This is more than double the volume that we might typically see for a full year, and we expect this heightened activity to continue for the rest of the fourth quarter. In the third quarter, we acquired $15 billion UPB through bulk transactions and have committed to add another $21 billion over the next two quarters. Additionally, we settled on $14 billion through our flow program. Lastly, post quarter end, we issued common equity for net proceeds of approximately $194 million in a transaction that was accretive to book value.
We are seeing attractive opportunities in the MSR market and have already committed additional capital in that area. Furthermore, with the Fed taper upon us, we expect we will be able to increase leverage and deploy more capital in RMBS at attractive spreads in the near to intermediate term. The 10-year swap rate fell from 1.44% on June 30 to a low of 1.16% in the middle of July and then subsequently rose 40 basis points to end the quarter at 1.55% as the market considered increased inflationary pressures and more precise communication on tapering from the Federal Reserve.
Indeed, as announced last Wednesday, the Federal Reserve will reduce its monthly purchases of U.S. Treasury securities by $10 billion and Agency RMBS by $5 billion beginning this month and expects to complete the process by mid-2022. Although the last taper in 2013 resulted in a tantrum of high market volatility, we expect the market reaction to be more orderly this time, all else being equal. Firstly, the Fed is expected to continue to be a source of demand for some time as paydowns from its RMBS portfolio are reinvested.
Secondly, the Fed has clearly communicated the timing and pace of its tapering and has clearly dissociated the decision to taper from the decision to raise rates. Lastly, even while banks have significantly reduced their purchases of Agency RMBS, as long as loan growth is tepid and deposit balances remain high, banks will also likely be a source of demand when spreads become more attractive? Current coupon spreads have widened out somewhat, but remain at very tight levels with current coupon OIS currently sitting at minus 7.6 basis points as of October 29. This spread is more than 15 basis points rich to past periods of quantitative easing where the Fed was buying mortgages and about 35 basis points lower compared to periods where the Fed was not actively buying mortgages. While we don't expect these spreads to normalize immediately, we do expect spreads to gradually widen over the course of the tapering process. We show the effect that the refinancing wave has had on the distribution of conventional mortgages by rates. We can see that the distribution has shifted significantly to the left, indicating that a meaningful number of mortgages have already refinanced into lower coupons.
At the end of March, the percentage of mortgages that were refinanceable with at least 25 basis points of incentive had declined from about 85% at the end of 2020 to about 64%. At the end of September, although mortgage rates were eight basis points lower than in March, there were actually fewer refinanceable mortgages, 56%, as a result of this restriking of the mortgage universe. With the current mortgage rate at 3.14%, the amount of refinanceable mortgages falls further to 54%, as shown by the green circle. Taken all together, this chart points to overall slower prepayment speeds, which should be beneficial to our Agency plus MSR strategy.
Mary Riskey -- Chief Financial Officer
Comprehensive income was $45.2 million representing an annualized return on average common equity of 9.1%. Our book value was $6.40 per share compared to $6.42 at June 30, including the $0.17 common dividend results in a quarterly economic return of 2.3%.
As Bill mentioned earlier, the result reflects spread tightening in high coupon specified pools which offset spread widening in lower coupon RMBS. As we noted at the top of the page, core earnings will now be referred to as earnings available for distribution or EAD in line with the evolving industry practice. Earnings available for distribution increased to $0.24 per share compared to $0.19 in the second quarter.
Beginning in the third quarter, EAD includes U.S. Treasury futures income, which is the economic equivalent to holding and financing a relevant cheapest to deliver U.S. Treasury note or bond using short-term repurchase rates. As a hedging instrument, we use futures interchangeably with swaps, and we think the treatment of hedging instruments in EAD should be consistent.
Futures income in EAD was approximately $0.03 per share for Q3. Had futures income been included for Q2, it would have increased EAD by $0.02 for a total of $0.21 per share. Interest income decreased from $43.4 million to $36 million as our RMBS position continued to decline through a combination of sales and paydowns. Interest expense declined by $2.5 million, reflecting lower RMBS and MSR borrowings.
Turning to MSR. Net servicing income increased by $9 million to $56.7 million as a result of higher balances and collections and slower prepayments. Gain and other derivatives rose by almost $20 million as we benefited from a larger position and continued roll specialness in TBA as well as the inclusion of futures income. Expenses increased by $3.2 million to $34.2 million, driven largely by onetime nonrecurring credits and servicing expenses in the second quarter, as we mentioned on our last earnings call.
In the table on the lower right, we show our portfolio yield. Our realized net spread in the quarter rose by 62 basis points to 2.55%. This net increase was attributable to the combination of higher yields on newly purchased MSR and a greater proportion of MSR in the portfolio. Net spread as of September 30, which reflects our estimates for the near term, increased further to 2.77% but will be dependent on our portfolio mix.
We continue to maintain a strong liquidity position with unrestricted cash of $1.1 billion at quarter end, which includes net proceeds from our July common stock offering of $256 million. Funding for Agency RMBS to the repo market remained attractive and continues to remain attractive despite the recent increase in rates. We maintained access to diverse funding sources for MSR and our unfunded and committed MSR financing capacity stands at $413 million.
Finally, leverage declined from the prior quarter in conjunction with the lower RMBS balance. Average and quarter-end economic debt to equity in the third quarter were 6.0x and 6.1 times, respectively, compared to the second quarter average and ending of 6.5 times. We expect our leverage to increase in coming quarters as we add MSR and RMBS.
Bill Greenberg -- President, Chief Executive Officer, and Chief Investment Officer
During the quarter, our portfolio grew to $17.9 billion as we deployed some of the capital that was raised in July into MSR and RMBS. We adjusted our allocation in RMBS by selling some higher coupon pools that had tightened to unattractive spreads and reinvested into TBA, which continued to benefit from roll specialness.
We also added to our hedging mix by increasing our options positions, utilizing both interest rates and mortgage options, which are expected to benefit from volatility in the sharp breakout to higher rates, should that occur. Please turn to Slide 9 as we discuss our specified pool positioning, prepayments and performance. We remain positioned in loan balance and geography stories. Although prepayment speeds have generally been very fast, the New York collateral has performed particularly well, with speeds in the 4% and 4.5% coupons coming in around 30 CPR during the third quarter compared with generics, which came in higher than 50 CPR.
You can see that our up in coupon pools outperformed TBAs as the market reacted to data published during the quarter, pointing to nascent but clear evidence of burnout. Finally, comparison by coupon, observed prepayment speeds from pools delivered into TBA contracts to observe prepayment speeds on our specified portfolio. Overall, prepayment speeds in our specified pools declined 8% to 30 CPR and remain significantly slower than pools delivered into TBA, showing the value of the prepayment characteristics of that collateral.
Our MSR portfolio is currently valued at $2.2 billion as of September 30 based on $200 billion UPB and with a gross coupon of 3.4%. That translates into a price of about $1.11 or right around a 4.2 multiple. The percentage of MSR in forbearance continued to decline and ended the quarter at 1.7% by loan count.
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Comment: This "prepared remarks" article is "NOT" complete and does not have all of the question/answer comments in it. If interested, you can go the "Motley fool" for the complete transcribing report....
Live Long and Prosper....
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Post by xray on Nov 25, 2021 17:11:09 GMT
Insider Monkey 10 Blue Chip Dividend Stocks with Over 8% Yield Usman Kabir Wed, November 24, 2021, 3:14 PM
In this article, we discuss the 10 blue chip dividend stocks with over 8% yield. If you want to skip our detailed analysis of these stocks, go directly to the 5 Blue Chip Dividend Stocks with Over 8% Yield.
In an era of stock volatility and soaring valuations, the advent of inflation fears has added a new twist to the overall investing environment, leaving even market experts scratching their heads. In the midst of this chaos, businesses with stable operations and impressive dividend histories continue to provide investors with a safe haven that is not found elsewhere. Contrary to popular opinion, these “value” stocks have outperformed their growth counterparts in the past few decades, posting annualized returns of 10% against the 8% returns of the S&P 500.
Supply chain problems, rising energy prices, and the dramatic rally in raw material cost has pushed inflation to record highs in the past few weeks. As investors scramble to shield their portfolios from the risk, some of the top dividend stocks to buy now include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), The Coca-Cola Company (NYSE:KO), and Bristol-Myers Squibb Company (NYSE:BMY), among others discussed in detail below.
Another indication of the increased interest in value plays is the rise in investments in dividend exchange traded funds (ETFs). The Wall Street Journal reported earlier this year that the net inflows into dividend ETFs had jumped to more than $25 billion in July this year, up from $1.8 billion in July 2020. The post-pandemic recovery is a major theme in all of this. Figures from the Dow Jones Indices show that there has also been a 130% year-on-year increase in the number of common dividend increases reported by firms on the S&P 500 Index.
Other indexes show a similar triumph of value over growth. A report published by the Financial Times reveals that between September 2020 and April 2021, an important time period for the recovery, the Russell 1000 Value Index gained more than 31%. Meanwhile, the corresponding growth index only managed gains of around 14% during the time. Growth investors will also be surprised to hear that historically, 43% of the returns generated by dividend paying firms on the S&P 500 have come from dividends. 84% of the firms on the benchmark index pay dividends.
With inflation fears unlikely to subside in the near future, it may be prudent for investors to research on the best value plays. Companies that have a high dividend yield and an impressive dividend history are likely to provide investors with a steady gain through these difficult times. Sectors like the mortgage market, the tobacco industry, and mining companies jump to mind in this regard.
Our Methodology
These were picked based on their business fundamentals, analyst ratings, and dividend yields. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey. Blue Chip Dividend Stocks with Over 8% Yield
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#9. Two Harbors Investment Corp. (NYSE:TWO)
Number of Hedge Fund Holders: 31 Forward Dividend Yield: 11.26%
Two Harbors Investment Corp. (NYSE:TWO) is a real estate investment trust based in Minnesota. It recently released earnings for the third quarter, reporting earnings per share of $0.24 and a net interest income of $14 million.
Two Harbors Investment Corp. (NYSE:TWO) has a market cap of $2 billion and was founded in 2009. It has an impressive dividend history. In September, it declared a quarterly dividend of $0.17 per share, in line with previous.
At the end of the third quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $155 million in Two Harbors Investment Corp. (NYSE:TWO), up from 30 in the preceding quarter worth $160 million.
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Post by xray on Dec 10, 2021 18:46:08 GMT
Insider Monkey Two Harbors Investment Corp (TWO): Are Hedge Funds Right About This Stock? Asma UL Husna Fri, December 10, 2021, 8:16 AM
TWO-PA +0.02%
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of September 30th. In this article we look at what those investors think of Two Harbors Investment Corp (NYSE:TWO).
Two Harbors Investment Corp (NYSE:TWO) was in 31 hedge funds' portfolios at the end of September. The all time high for this statistic is 32. TWO investors should be aware of an increase in activity from the world's largest hedge funds lately. There were 30 hedge funds in our database with TWO positions at the end of the second quarter. Our calculations also showed that TWO isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind let's take a look at the latest hedge fund action regarding Two Harbors Investment Corp (NYSE:TWO).
Do Hedge Funds Think TWO Is A Good Stock To Buy Now?
At Q3's end, a total of 31 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in TWO over the last 25 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Two Sigma Advisors was the largest shareholder of Two Harbors Investment Corp (NYSE:TWO), with a stake worth $28 million reported as of the end of September. Trailing Two Sigma Advisors was Sculptor Capital, which amassed a stake valued at $17.5 million. Citadel Investment Group, Fir Tree, and Glazer Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Centiva Capital allocated the biggest weight to Two Harbors Investment Corp (NYSE:TWO), around 0.62% of its 13F portfolio. Fir Tree is also relatively very bullish on the stock, dishing out 0.37 percent of its 13F equity portfolio to TWO.
As aggregate interest increased, some big names have been driving this bullishness. Millennium Management, managed by Israel Englander, created the largest position in Two Harbors Investment Corp (NYSE:TWO). Millennium Management had $1.9 million invested in the company at the end of the quarter. Andy Redleaf's Whitebox Advisors also made a $0.5 million investment in the stock during the quarter. The following funds were also among the new TWO investors: D. E. Shaw's D E Shaw, Andrew Weiss's Weiss Asset Management, and Donald Sussman's Paloma Partners.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Two Harbors Investment Corp (NYSE:TWO) but similarly valued. These stocks are Oasis Petroleum Inc. (NASDAQ:OAS), 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), Equinox Gold Corp. (NYSE:EQX), HUYA Inc. (NYSE:HUYA), Columbia Financial, Inc. (NASDAQ:CLBK), Stagwell Inc. (NASDAQ:STGW), and Latham Group Inc. (NASDAQ:SWIM). This group of stocks' market caps resemble TWO's market cap.
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $85 million. That figure was $156 million in TWO's case. Oasis Petroleum Inc. (NASDAQ:OAS) is the most popular stock in this table. On the other hand Columbia Financial, Inc. (NASDAQ:CLBK) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Two Harbors Investment Corp (NYSE:TWO) is more popular among hedge funds. Our overall hedge fund sentiment score for TWO is 85.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately TWO wasn't nearly as popular as these 5 stocks and hedge funds that were betting on TWO were disappointed as the stock returned -7.3% since the end of the third quarter (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Comment: TWO has declined to some very low analysis numb3rs (<50 report card grade and a current 5star neutral status).... Disclosure: Some of us continue to hold a Phase #0 (0-2% - no risk)....
Live Long and Prosper....
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Post by richardsok on Dec 11, 2021 13:41:20 GMT
TWO -- nothing to get excited about but a decent possibility for buy-&-hold yield junkies. Next years earnings projected to slip from 1.16sh to .85 -- but still comfortably above that .65 annual dividend (11% yield). Stock price never truly recovered from March 2020 disaster but has been relatively low-volatile and roughly stable since, making it interesting at current beaten down levels. Had another small stumble in July when it became evident earnings would probably slow in 2022.
Would feel more confident if I could see evidence of insider buying. (Forward PE: probably 7 or so.) Analysts generally neutral.
With debt/equity at 4+, much depends on interest rates and how management juggles any changes.
Don't own it. No big bullish catalyst in sight (that I can see, anyway), but what do you expect with an 11% payout?
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Post by xray on Dec 16, 2021 15:41:19 GMT
Business Wire USD Partners and US Development Group Issue Operational Update Wed, December 15, 2021, 5:06 PM
USDP +1.41%
HOUSTON, December 15, 2021--(BUSINESS WIRE)--US Development Group, LLC (through a wholly-owned affiliate, collectively USD) and USD Partners LP (NYSE:USDP) (the "Partnership") announced the diluent recovery unit (DRU) has been declared fully operational and the shipment of DRUbit™ by Rail™ (DBR™) has commenced.
The DRU is located at the Hardisty Energy Terminal (HET) near Hardisty, Alberta and is a 50%/50% joint venture between USD and Gibson Energy Inc. (Gibson). HET is located adjacent to USD Partners’ existing Hardisty Rail Terminal, which is the origination terminal for transloading the DRUbit™ onto railcars for shipment. The current destination terminal for the DRUbit™ is the USD-owned and operated Port Arthur Terminal in Port Arthur, Texas (PAT). This DBR network is highly scalable and is well-positioned for future commercial expansions. USD and Gibson continue to pursue commercial discussions with current and potential producer and refiner customers to secure additional long-term agreements to support future expansions at both the DRU and the PAT.
In association with the initial commencement of operations at the DRU in August 2021, approximately 32% of the Hardisty Terminal’s capacity was extended beyond 2030 pursuant to long-term, multi-year renewals at the Hardisty Terminal executed with a subsidiary of ConocoPhillips.
USD’s patented DRU technology separates the diluent that has been added to the raw bitumen in the production process, which meets two important market needs. It creates DRUbit™, a proprietary heavy Canadian crude oil or bitumen that ships by rail and does not meet any of the defined categories of hazardous materials by U.S. DOT Hazardous Materials regulations and Canada’s Transport of Dangerous Goods regulations, creating safety and environmental benefits. Additionally, it returns the recovered diluent to ConocoPhillips at HET for reuse in the Western Canadian market, which reduces delivered costs for diluent. The DBR network provides meaningful safety, economic and environmental benefits relative to conventional crude by rail.
The DRU at HET is operating at or above its nameplate capacity of 50,000 barrels per day of inlet bitumen blend, which the DRU separates into DRUbit™ and diluent. Transporting DRUbit™ by Rail™ is projected to reduce carbon emissions nearly 20% relative to dilbit by rail alternatives and approximately 30% compared to dilbit by pipeline alternatives.(1)
Updated USD Partners and USD Website
In addition, USD and the Partnership announced today that their associated websites (www.usdg.com and http://www.usdpartners.com) have been updated with information regarding the DRU and PAT projects.
About USD Partners LP
USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC ("USD") to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies and refiners. The Partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The Partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the Partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail.
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Comment: USDP, as a Penny Stock will not do well in the current market (if/when the regular market is in decline). Current star rating is "4stars" (neutral) with a very low report card rating of 33 (power rating of 51)....
Disclosure: Some of us continue to have USDP in our current portfolio's....
Live Long and Prosper....
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Post by xray on Dec 16, 2021 15:54:44 GMT
Business Wire New Residential Investment Corp. Declares Fourth Quarter 2021 Common and Preferred Dividends
Wed, December 15, 2021, 4:15 PM
NRZ +0.05% NRZ-PA +0.35% NRZ-PB +0.39% NRZ-PC +0.22% NRZ-PD +0.04%
NEW YORK, December 15, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE:NRZ, "New Residential" or the "Company") announced today that its Board of Directors (the "Board") has declared fourth quarter 2021 common and preferred stock dividends.
Common Stock Dividend
The Board declared a quarterly dividend of $0.25 per share of common stock for the fourth quarter 2021. The fourth quarter common stock dividend is payable on January 28, 2022 to shareholders of record on December 31, 2021.
Preferred Stock Dividends
In accordance with the terms of New Residential’s 7.50% Series A Cumulative Redeemable Preferred Stock ("Series A"), the Board declared a Series A dividend for the fourth quarter 2021 of $0.4687500 per share.
In accordance with the terms of New Residential’s 7.125% Series B Cumulative Redeemable Preferred Stock ("Series B"), the Board declared a Series B dividend for the fourth quarter 2021 of $0.4453125 per share.
In accordance with the terms of New Residential’s 6.375% Series C Cumulative Redeemable Preferred Stock ("Series C"), the Board declared a Series C dividend for the fourth quarter 2021 of $0.3984375 per share.
In accordance with the terms of New Residential’s 7.00% Series D Fixed-Rate Reset Cumulative Redeemable Preferred Stock ("Series D"), the Board declared a Series D dividend for the fourth quarter 2021 of $0.4375000 per share.
Dividends for the Series A, Series B, Series C and Series D are payable on February 15, 2022 to preferred shareholders of record on January 14, 2022.
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.
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Comment: Current analysis data (COB Friday) shows NRZ with a 9star rating and with a Report card rating of 98 including a Power rating of 100. Dividend was raised on 8/23 (in the last Qtr)....
Disclosure: Some of us continue to have a current (maximum ... Phase #4 "HIGH RISK Level") position in NRZ....
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Post by xray on Dec 16, 2021 16:00:31 GMT
Zacks New Residential Investment (NRZ) Gains But Lags Market: What You Should Know
Zacks Equity Research Wed, December 15, 2021, 6:15 PM
NRZ-PC +0.22%
^GSPC +0.20%
In the latest trading session, New Residential Investment (NRZ) closed at $11, marking a +1.38% move from the previous day. The stock lagged the S&P 500's daily gain of 1.64%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 0.45%.
Coming into today, shares of the real estate investment trust had lost 3.98% in the past month. In that same time, the Finance sector lost 3.51%, while the S&P 500 lost 0.83%.
Wall Street will be looking for positivity from New Residential Investment as it approaches its next earnings report date. On that day, New Residential Investment is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 15.63%. Meanwhile, our latest consensus estimate is calling for revenue of $218.46 million, up 92.57% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.41 per share and revenue of $843.91 million, which would represent changes of -3.42% and +62.9%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for New Residential Investment. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.41% higher. New Residential Investment is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, New Residential Investment is currently trading at a Forward P/E ratio of 7.68. For comparison, its industry has an average Forward P/E of 9.03, which means New Residential Investment is trading at a discount to the group.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Live Long and Prosper....
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Post by xray on Dec 16, 2021 22:00:52 GMT
GlobeNewswire Kayne Anderson Energy Infrastructure Fund Announces Distribution of $0.175 per Share for Q4 2021 Kayne Anderson Energy Infrastructure Fund, Inc. Thu, December 16, 2021, 4:20 PM
KYN +0.40%
HOUSTON, Dec. 16, 2021 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today a quarterly distribution of $0.175 per share for the fiscal quarter ended November 30, 2021. This distribution is payable to common stockholders on January 11, 2022 (as outlined in the table below).
Ex-Date 1/3 Payment Date 1/11 Distribution Amount $0.175 Return of Capital 100%
(1) The return of capital estimate is based on the Company’s anticipated earnings and profits. The final determination of the tax character of distributions may differ substantially from this preliminary information.
The Company expects the next distribution to be declared in March 2022. Payment of future distributions is subject to the Board of Directors’ approval, as well as meeting the covenants of the Company’s debt agreements and terms of its preferred stock.
Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The company's investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.
The Company pays cash distributions to common stockholders at a rate that may be adjusted from time to time. The amount of distributions is not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions.
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Live Long and Prosper....
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Post by xray on Dec 16, 2021 22:08:33 GMT
Business Wire Two Harbors Investment Corp. Announces Fourth Quarter 2021 Common and Preferred Stock DividendsThu, December 16, 2021, 4:30 PM TWO -1.69% TWO-PA +0.34% TWO-PB +0.59% NEW YORK, December 16, 2021--(BUSINESS WIRE)--Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, today declared a dividend of $0.17 per share of common stock for the fourth quarter of 2021. The fourth quarter dividend is payable on January 28, 2022 to common stockholders of record at the close of business on December 29, 2021. Two Harbors also declared today the following preferred stock dividends: a dividend of $0.50781 per share of the 8.125% Series A Cumulative Redeemable Preferred Stock; a dividend of $0.47656 per share of the 7.625% Series B Cumulative Redeemable Preferred Stock; and a dividend of $0.45313 per share of the 7.25% Series C Cumulative Redeemable Preferred Stock. The Series A, Series B and Series C preferred dividends are payable on January 27, 2022 to the applicable preferred stockholders of record at the close of business on January 12, 2022. Two Harbors Investment Corp. Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. Two Harbors is headquartered in St. Louis Park, MN. Additional information is available at www.twoharborsinvestment.com. ----------- Live Long and Prosper....
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Post by xray on Dec 21, 2021 17:39:42 GMT
Business Wire New Residential Investment Corp. Completes Previously Announced Acquisition of Genesis Capital LLC Mon, December 20, 2021, 4:15 PM
NRZ +3.44% NRZ-PA +0.57% NRZ-PB +0.28% NRZ-PC +0.42% NRZ-PD +0.24%
The Genesis acquisition further reinforces New Residential’s position as a leading and diverse investment company
NEW YORK, December 20, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; "New Residential" or the "Company") announced today that it has completed the previously announced acquisition of Genesis Capital LLC ("Genesis"), a leading business purpose lender, along with a related portfolio of loans, from affiliates of the Goldman Sachs Group, Inc. ("Goldman Sachs"). The transaction was initially announced on October 11, 2021.
"The closing of the Genesis acquisition adds another complementary operating company to New Residential’s portfolio of investments," said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. "We expect that Genesis’s ability to manufacture high-quality loans to the real estate industry will help enable New Residential to generate more earnings for our shareholders. Genesis’s proven management team, powerful technology and data-driven operations are value-additive for New Residential and will create synergies for our growing single-family rental platform. We are excited about our combined future and the opportunities we will create together."
Genesis is expected to originate approximately $2 billion of loans in 2021 and has originated over 12,000 loans since 2014.
"Having worked closely with the New Residential team over the last few months to close the transaction, we are eager to join the family," said Robert Wasmund, Chief Executive Officer of Genesis. "We believe our newfound partnership will help enable Genesis to thrive in a U.S. housing market with decreasing supply and increasing demand, particularly in the build-to-rent space. We look forward to expanding our product set, entering new markets, and leveraging the deep financial services and risk management expertise of New Residential to drive continued excellence across the company."
New Residential financed the acquisition with existing cash and committed asset-based financing from Goldman Sachs.
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Live Long and Prosper....
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Post by xray on Dec 22, 2021 19:07:20 GMT
Business Wire Western Asset Mortgage Capital Corporation Declares Fourth Quarter Dividend of $0.06 Per Share; Announces Focus on Residential Real Estate Related Investments Tue, December 21, 2021, 5:46 PM
WMC +5.63%
PASADENA, Calif., December 21, 2021--(BUSINESS WIRE)--Western Asset Mortgage Capital Corporation (the "Company") (NYSE: WMC) announced today that its Board of Directors has declared a cash dividend of $0.06 per share for the fourth quarter of 2021. Today’s dividend is payable on January 26, 2022 to common shareholders of record as of December 31, 2021, with an ex-dividend date of December 30, 2021.
In addition, the Company estimates that its GAAP book value per share, as of November 30, 2021, was approximately $3.31. The November 30, 2021 estimated GAAP book value is unaudited, has not been verified or reviewed by our external auditors and is subject to normal quarterly reconciliation and other procedures. Further, the estimated book value is as of November 30, 2021 and does not include the dividend announced today. GAAP book value will fluctuate with market conditions, the results of the Company’s operations and other factors. The Company’s current GAAP book value may be materially different from the November 30, 2021 estimated GAAP book value.
Business Updates The Company is providing the following business updates.
The Company is announcing that, in consultation with its manager, Western Asset Management Company, LLC (the "Manager"), it intends to focus on residential real estate related investments, including but not limited to non-qualified mortgage loans, non-agency RMBS, and other related investments. The Company believes this focus will allow it to address attractive market opportunities while maintaining alignment with the Manager’s core competencies. The portfolio transition is expected to be accomplished over the next 12-18 months. The Company plans to transition out of the commercial investments in its portfolio, though it may from time to time make commercial investments on an opportunistic basis.
The Manager will voluntarily waive 25% of its management fee solely for the duration of calendar year 2022 in order to support the earnings potential of the Company and its transition to a residentially focused investment portfolio.
The Company has also extended its share repurchase program as authorized by its Board of Directors. Under the extended program, the Company is permitted to repurchase up to 3,000,000 shares of its common stock through December 31, 2023. The previous authorization was set to expire on December 31, 2021. Any purchases made pursuant to the program will be made in the open market, in privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rules 10b5-1 and 10b-18 of the Securities and Exchange Commission. The authorization does not obligate the Company to acquire any particular amount of common shares, or any shares at all, and the program may be suspended or discontinued at the Company's discretion without prior notice.
Management's overall goals include growing the Company's equity base to help reduce the Company's expense ratio and expand capital for investment, but from time to time when shares are trading at a significant discount repurchasing shares can generate value for our shareholders. The timing, manner, price and amount of any future repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors.
In addition, during the fourth quarter, the Company has:
Repurchased $8.0 million aggregate principal amount of its 2022 Notes at an approximate 1% premium to par value, plus accrued interest.
Repurchased 479,808 shares of its common stock at an average price of $2.25.
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Live Long and Prosper....
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