EQUITY AND EARNINGS PER SHARE
|3 Months Ended|
Mar. 31, 2019
|Equity and Earnings Per Share [Abstract]|
|EQUITY AND EARNINGS PER SHARE||EQUITY AND EARNINGS PER SHARE
Equity and Dividends
In February 2019, New Residential issued 46.0 million shares of its common stock in a public offering at a price to the public of $16.50 per share for net proceeds of approximately $751.7 million. To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 4.6 million shares of New Residential’s common stock at the public offering price, which had a fair value of approximately $3.8 million as of the grant date. The assumptions used in valuing the options were: a 2.40% risk-free rate, a 9.30% dividend yield, 19.26% volatility and a 10-year term.
On March 25, 2019, New Residential’s board of directors declared a first quarter 2019 dividend of $0.50 per common share or $207.7 million.
Approximately 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, at March 31, 2019.
As of March 31, 2019, New Residential’s outstanding options were summarized as follows:
The following table summarizes New Residential’s outstanding options as of March 31, 2019. The last sales price on the New York Stock Exchange for New Residential’s common stock in the quarter ended March 31, 2019 was $16.91 per share.
The following table summarizes activity in New Residential’s outstanding options:
Income and Earnings Per Share
New Residential is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. New Residential’s common stock equivalents are its outstanding options. During the three months ended March 31, 2019, based on the treasury stock method, New Residential had 321,144 dilutive common stock equivalents outstanding. During the three months ended March 31, 2018, based on the treasury stock method, New Residential had 2,995,580 dilutive common stock equivalents outstanding.
Noncontrolling interests is comprised of the interests held by third parties in consolidated entities that hold New Residential’s Servicer Advance Investments (Note 6), Shelter JVs (Note 8) and Consumer Loans (Note 9).
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef