New Residential Investment (NRZ) Q3 2021 Earnings Call Transcript

New Residential Investment (NYSE:NRZ)
Q3 2021 Earnings Call
Nov 02, 2021, 8:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good day, and welcome to the New Residential third quarter 2021 earnings conference call. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Kait Mauritz, investor relations. Please go ahead.

Kait Mauritz — Investor Relations

Great. Thank you, Betsy, and good morning, everyone. I’d like to thank you for joining us today for New Residential’s third quarter 2021 earnings call. Joining me today are Michael Nierenberg, chairman, CEO, and president of New Residential; and Nick Santoro, chief financial officer of New Residential.

Also with me today are Sanjiv Das and Baron Silverstein, chief executive officer and chief operating officer and president, respectively, of New Residential and Caliber. Throughout the call this morning, we are going to reference the earnings supplement that was posted to the New Residential website this morning. If you have not already done so, I’d encourage you to download the presentation now. Before I turn the call over to Michael, I’d like to point out that certain statements today will be forward-looking statements.

These statements, by their nature, are uncertain and may differ materially from actual results. I’d encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and review the risk factors contained in our annual and quarterly reports filed with the SEC. In addition, we’ll be discussing some non-GAAP financial measures during today’s call. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings supplement.

And with that, I’ll turn the call over to Michael.

Michael Nierenberg — Chairman, Chief Executive Officer, and President

Thanks, Kait. Good morning, everyone. Thanks for joining us today. When we look at our company today and look back over the recent history, I’m super excited for where our company is and what this is going to mean for our shareholders as we go forward.

The combination of our investment portfolio and operating business lines should continue to drive higher earnings as we go forward. The ability to manufacture our own assets through our different operating business lines, thus creating earnings for our company is a true differentiating factor for us. This past quarter, we grew our core earnings from $0.31 to $0.44 and we increased book value from $11.27 to $11.35 despite the fact that the 10-year note ended the quarter essentially unchanged versus the end of Q2. With the macro outlook looking like higher rates ahead, the Fed is likely to announce the beginning of tapering tomorrow and inflation seems like it’s here to stay for a while, our portfolios are in…