Annual report pursuant to Section 13 and 15(d)

EQUITY AND ENARNINGS PER SHARE (Tables)

v3.20.4
EQUITY AND ENARNINGS PER SHARE (Tables)
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Schedule of ATM Program Activity
The following table summarizes the Company’s ATM Program activity:    
Quarter Ended Number of Common shares Average price per share Gross Proceeds Fees Net Proceeds
March 31, 2020(A)
97,394  $ —  $ 1,662  $ —  $ 1,649 
June 30, 2020 —  —  —  —  — 
September 30, 2020 —  —  —  —  — 
December 31, 2020 —  —  —  —  — 
(A)In connection with the shares sold under the ATM program, New Residential granted options to the Manager relating to 0.01 million shares of New Residential’s common stock at the offering price, which had fair value of approximately $0.2 million as of the grant date.
Schedule of Preferred Shares
The table below summarizes Preferred Shares:
Number of Shares
Liquidation Preference(A)
Dividends Declared per Share
December 31, Year Ended December 31,
Series 2020 2019 2020 2019 Issuance Discount Carrying Value 2020 2019 2018
Fixed-to-floating rate cumulative redeemable preferred:
Series A, 7.50% issued July 2019
6,210  6,210  $ 155,250  $ 155,250  3.15  % $ 150,026  $ 1.88  $ 1.16  $ — 
Series B, 7.125% issued August 2019
11,300  11,300  282,500  282,500  3.15  % 273,418  1.78  0.89  — 
Series C, 6.375% issued February 2020
16,100  —  402,500  —  3.15  % 389,548  1.60  —  — 
Total 33,610  17,510  $ 840,250  $ 437,750  $ 812,992  $ 5.26  $ 2.05  $ — 
(A)Each series has a liquidation preference of $25.00 per share.
Schedule of Dividends Declared
Common dividends have been declared as follows:
Per Share
Declaration Date Payment Date Quarterly Dividend Total Amounts Distributed (millions)
March 22, 2018 April 2018 0.50  168.1 
June 21, 2018 July 2018 0.50  169.9 
September 20, 2018 October 2018 0.50  170.2 
December 20, 2018 January 2019 0.50  184.6 
March 25, 2019 April 2019 0.50  207.7 
June 18, 2019 July 2019 0.50  207.8 
September 23, 2019 October 2019 0.50  207.8 
December 16, 2019 January 2020 0.50  207.8 
March 31, 2020 April 2020 0.05  20.8 
June 22, 2020 July 2020 0.10  41.6 
September 23, 2020 October 2020 0.15  62.4 
December 16, 2020 January 2021 0.20  82.9 
Schedule of Stockholders' Equity Note, Warrants or Rights
The table below summarizes the 2020 Warrants:
Number of Warrants
(in millions)
Weighted Average Exercise Price
(per share)
December 31, 2019 outstanding warrants —  $ — 
Granted 43.4  6.79 
(A)
Exercised —  — 
Expired —  — 
December 31, 2020 outstanding warrants 43.4  $ 6.79 
(A)Reflects a reduction in weighted average exercise price due to anti-dilution adjustments effective for dividends in excess of $0.10 a share.
Summary of Outstanding Options
New Residential’s outstanding options were summarized as follows:
December 31,
2020 2019
Held by the Manager 11,991,622  10,511,167 
Issued to the Manager and subsequently assigned to certain of the Manager’s employees
2,430,033  2,290,749 
Issued to the independent directors 7,000  7,000 
Total 14,428,655  12,808,916 

The following table summarizes New Residential’s outstanding options as of December 31, 2020. The last sales price on the New York Stock Exchange for New Residential’s common stock in the year ended December 31, 2020 was $9.94 per share.
Recipient
Date of
Grant/
Exercise(A)
Number of Unexercised Options Options
Exercisable
as of
December 31,
2020
Weighted
Average
Exercise
Price(B)
Intrinsic Value of Exercisable Options as of December 31, 2020
(millions)
Directors Various 7,000  7,000  $ 13.57  $ — 
Manager(C)
2017 1,130,916  1,130,916  13.95  — 
Manager(C)
2018 5,320,000  4,735,167  16.67  — 
Manager(C)
2019 6,351,000  4,327,900  16.13  — 
Manager(C)
2020 1,619,739  539,913  17.41  — 
Outstanding 14,428,655  10,740,896 
(A)Options expire on the tenth anniversary from date of grant.
(B)The exercise prices are subject to adjustment in connection with return of capital dividends. A portion of New Residential’s 2018 dividends was deemed to be a return of capital and the exercise prices were adjusted accordingly.
(C)The Manager assigned certain of its options to its employees as follows:
Date of Grant to Manager Range of Exercise Prices Total Unexercised
Inception to Date
2018
$16.55 to $18.02
1,159,833 
2019
$15.14 to $16.68
1,270,200 
Total 2,430,033 
 
The following table summarizes activity in New Residential’s outstanding options:
Amount Weighted Average Exercise Price
December 31, 2018 outstanding options 8,498,138 
Options granted 6,352,000  $ 16.20 
Options exercised (2,041,222) $ 13.88 
Options expired unexercised — 
December 31, 2019 outstanding options 12,808,916 
Options granted 1,619,739  $ 17.41 
Options exercised —  $ — 
Options expired unexercised — 
December 31, 2020 outstanding options 14,428,655  See table above
Schedule of Basic and Diluted Earnings Per Share
The following table summarizes the basic and diluted earnings per share calculations:
Year Ended December 31,
2020 2019 2018
Net income (loss) $ (1,357,684) $ 605,933  $ 1,004,531 
Noncontrolling interests in income of consolidated subsidiaries
52,674  42,637  40,564 
Dividends on preferred stock 54,295  13,281  — 
Net income (loss) attributable to common stockholders $ (1,464,653) $ 550,015  $ 963,967 
Basic weighted average shares of common stock outstanding 415,513,187  408,789,642  341,268,923 
Dilutive effect of stock options(A)
—  200,465  1,868,438 
Dilutive effect of common stock purchase warrants(A)
—  —  — 
Diluted weighted average shares of common stock outstanding 415,513,187  408,990,107  343,137,361 
Basic earnings per share attributable to common stockholders $ (3.52) $ 1.35  $ 2.82 
Diluted earnings per share attributable to common stockholders $ (3.52) $ 1.34  $ 2.81 
(A)Stock options and common stock purchase warrants that could potentially dilute basic earnings per share in the future were not included in the computation of diluted earnings per share for the periods where a loss has been recorded because they would have been anti-dilutive for the period presented.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The Company excluded the following weighted-average potential common shares from the calculation of diluted net income (loss) per share during the applicable periods because their inclusion would have been anti-dilutive:
Year Ended December 31,
2020 2019 2018
Stock options $ —  $ —  $ — 
Common stock purchase warrants 7,328,961  —  —