New Residential Investment Corp. has completed the previously-announced acquisition of Caliber Homes Loans, Inc., an eminent mortgage originator and servicer. With this, the company has expanded its mortgage operations with around 4% of the mortgage origination market share.
The acquisition was funded through a mix of existing cash and liquidity available on the balance sheets of both companies.
Per New Residential management, “with this acquisition we have extended our ability to offer a broad spectrum of mortgage products to borrowers throughout their homeownership journey. We expect the combination of Caliber and Newrez to contribute meaningfully to New Residential’s growth in 2021 and beyond.”
With the buyout, the company will combine its flagship mortgage originator and servicer arm, Newrez LLC, with Caliber, thereby, augmenting competencies, products and footprint across mortgage origination and servicing businesses.
Specifically, the buyout adds around $150 billion unpaid principal balance (UPB) of mortgage service rights (MSRs), improved technological operations, and an expanded local presence, particularly in the purchase lending space.
On a combined basis, Newrez and Caliber funded around $45 billion UPB of volume in second-quarter 2021 and serviced $465 billion of mortgage loans. Hence, the buyout posies New Residential to capture significant market share and accelerate growth.
Following the buyout announcement, New Residential cheered investors with a 25% dividend hike in third-quarter dividends. It will now pay out a dividend of 25 cents per share, up from 20 cents disbursed in the prior quarter. The increased dividend will be paid out on Oct 29 to its shareholders of record as of Oct 4, 2021.
The company’s ability to sustain the hiked dividend depends on the operational strength and the payout ratio. Its current payout ratio of 50.8% is lower than its industry’s average of 77.6%, indicating scope for its steady dividend increase.Its performance depicts a robust earnings picture. Its top line is projected to witness a growth rate of 19.4% in 2021.
We believe that such disbursements highlight the company’s operational strength and commitment toward rewarding its shareholders handsomely.As investors are always on the lookout for companies with a track record of consistent and incremental dividend payments to bet their money on, solid dividend payouts are therefore arguably the biggest enticement for REIT investors. Such moves also boost investors’ confidence in the stock and will likely bump up the company’s shares in the upcoming period.
Shares of this Zacks Rank #3 (Hold) company have gained 32.1% over the past year, underperforming the industry’s 36.2% rally.
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The Zacks Consensus Estimate for ACRES Commercial Realty Corp.’s (ACR - Free Report) current-year earnings has moved up significantly to $1.20 in the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Chimera Investment Corporation’s (CIM - Free Report) 2021 earnings has moved 19% north to $1.75 over the past month. The company carries a Zacks Rank of 2, currently.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
New Residential Investment Corp. has completed the previously-announced acquisition of Caliber Homes Loans, Inc., an eminent mortgage originator and servicer. With this, the company has expanded its mortgage operations with around 4% of the mortgage origination market share.
The acquisition was funded through a mix of existing cash and liquidity available on the balance sheets of both companies.
Per New Residential management, “with this acquisition we have extended our ability to offer a broad spectrum of mortgage products to borrowers throughout their homeownership journey. We expect the combination of Caliber and Newrez to contribute meaningfully to New Residential’s growth in 2021 and beyond.”
With the buyout, the company will combine its flagship mortgage originator and servicer arm, Newrez LLC, with Caliber, thereby, augmenting competencies, products and footprint across mortgage origination and servicing businesses.
Specifically, the buyout adds around $150 billion unpaid principal balance (UPB) of mortgage service rights (MSRs), improved technological operations, and an expanded local presence, particularly in the purchase lending space.
On a combined basis, Newrez and Caliber funded around $45 billion UPB of volume in second-quarter 2021 and serviced $465 billion of mortgage loans. Hence, the buyout posies New Residential to capture significant market share and accelerate growth.
Following the buyout announcement, New Residential cheered investors with a 25% dividend hike in third-quarter dividends. It will now pay out a dividend of 25 cents per share, up from 20 cents disbursed in the prior quarter. The increased dividend will be paid out on Oct 29 to its shareholders of record as of Oct 4, 2021.
The company’s ability to sustain the hiked dividend depends on the operational strength and the payout ratio. Its current payout ratio of 50.8% is lower than its industry’s average of 77.6%, indicating scope for its steady dividend increase.Its performance depicts a robust earnings picture. Its top line is projected to witness a growth rate of 19.4% in 2021.
We believe that such disbursements highlight the company’s operational strength and commitment toward rewarding its shareholders handsomely.As investors are always on the lookout for companies with a track record of consistent and incremental dividend payments to bet their money on, solid dividend payouts are therefore arguably the biggest enticement for REIT investors. Such moves also boost investors’ confidence in the stock and will likely bump up the company’s shares in the upcoming period.
Shares of this Zacks Rank #3 (Hold) company have gained 32.1% over the past year, underperforming the industry’s 36.2% rally.
Stocks to Consider
The Zacks Consensus Estimate for ACRES Commercial Realty Corp.’s (ACR - Free Report) current-year earnings has moved up significantly to $1.20 in the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Chimera Investment Corporation’s (CIM - Free Report) 2021 earnings has moved 19% north to $1.75 over the past month. The company carries a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Ladder Capital Corp (LADR - Free Report) 2021 earnings has moved 12% north to 38 cents over the past month. The company carries a Zacks Rank of 2, currently.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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