New Residential Investment Corp is a specialized real estate investment trust that operates out of New York City. A real estate investment trust (REIT) is an entity that is responsible for financing, operating or owning real property or mortgages across numerous sectors. REITs are often categorized into different types based on the primary category of the assets that they manage. Five of the most popular examples of this are mortgages, office buildings, healthcare facilities, retail properties, and residential real estate. Some real estate investors may choose to buy these properties themselves but this is ill-advised because many REITs have a history of outperforming individual investors as well as the market.
New Residential Investment Corp is one such REIT that is publicly traded on the New York Stock Exchange. You can find this company by looking for the ticker “NRZ”. Michael Nierenberg is the President, CEO, and board chairman of this company. As a whole, New Residential focuses on real estate investments that are good opportunities for excellent returns. The four key asset classes that New Residential Investment Corp frequently includes in their portfolio are Excess MSRs, RMBS, Call Rights, and Servicer Advances. MSR stands for mortgage servicing rights and it is the right to service a mortgaging loan pool. RMB is short for Residential Mortgage-Backed Security. This is something that is created when residential real estate loan pools are converted into marketable securities.
As of February 19th, New Residential Investment Corp announced that they are offering 40,297,096 shares of its common stock. This is done with the intent of fundraising for the company. New Residential seeks to use these funds on new investments and for general corporate expenses. This offering is being made in accordance with the company’s effective shelf registration statement that was filed with the Securities and Exchange Commission. For those who seek more complete information about the company and about the offering, it is a good idea to read the documents that the company has filed with the SEC. These documents can be found for free by visiting EDGAR which can be found on the SEC’s website. Alternatively, the documents can be obtained by Morgan Stanley & Co. LLC who is working with Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC as joint book-running managers.