Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE (Tables)

v3.21.2
EQUITY AND EARNINGS PER SHARE (Tables)
9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Schedule of Preferred Shares The table below summarizes preferred stock:
Dividends Declared per Share
Number of Shares Three Months Ended
September 30,
Nine Months Ended
September 30,
Series September 30, 2021 December 31, 2020
Liquidation Preference(A)
Issuance Discount
Carrying Value(B)
2021 2020 2021 2020
Series A, 7.50% issued July 2019(C)
6,210  6,210  $ 155,250  3.15  % $ 150,026  $ 0.47  $ 0.47  $ 1.41  $ 1.41 
Series B, 7.125% issued August 2019(C)
11,300  11,300  282,500  3.15  % 273,418  0.45  0.45  1.34  1.34 
Series C, 6.375% issued February 2020(C)
16,100  16,100  402,500  3.15  % 389,548  0.40  0.40  1.20  1.20 
Series D, 7.00%, issued September 2021(D)
18,600  —  465,000  3.15  % 449,506  0.28  —  0.28  — 
Total 52,210  33,610  $ 1,305,250  $ 1,262,498  $ 1.60  $ 1.32  $ 4.23  $ 3.95 
(A)Each series has a liquidation preference or par value of $25.00 per share.
(B)Carrying value reflects par value less discount and issuance costs.
(C)Fixed-to-floating rate cumulative redeemable preferred.
(D)Fixed-rate reset cumulative redeemable preferred.
Schedule of Dividends Declared
Common dividends have been declared as follows:
Declaration Date Payment Date Per Share Total Amounts Distributed (millions)
Quarterly Dividend
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 
March 24, 2021 April 2021 0.20  82.9 
June 16, 2021 August 2021 0.20  93.3 
August 23, 2021 October 2021 0.25  116.6 
Schedule of Warrants
The table below summarizes the 2020 Warrants at September 30, 2021:
Number of Warrants
(in millions)
Weighted Average Exercise Price
(per share)
Outstanding warrants - December 31, 2020
43.4  $ 6.79 
Granted —  — 
Exercised —  — 
Expired —  — 
Outstanding warrants - September 30, 2021
43.4  6.58 
(A)
(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
As of September 30, 2021, outstanding options were as follows:
Held by the Manager 18,700,175 
Issued to the Manager and subsequently assigned to certain of the Manager’s employees
2,753,980 
Issued to the independent directors 6,000 
Total 21,460,155 

The following table summarizes outstanding options as of September 30, 2021. The last sales price on the New York Stock Exchange for New Residential’s common stock in the quarter ended September 30, 2021 was $11.00 per share.
Recipient
Date of
Grant/
Exercise(A)
Number of Unexercised
Options
Options
Exercisable
as of
September 30, 2021
Weighted
Average
Exercise
Price(B)
Intrinsic Value of Exercisable Options as of
September 30, 2021
(millions)
Directors Various 6,000  6,000  $ 13.46  $ — 
Manager(C)
2017 1,130,916  1,130,916  13.78  — 
Manager(C)
2018 5,320,000  5,320,000  16.50  — 
Manager(C)
2019 6,351,000  6,000,800  15.93  — 
Manager(C)
2020 1,619,739  1,025,835  17.23  — 
Manager(C)
2021 7,032,500  862,083  10.10  0.78
Outstanding 21,460,155  14,345,634 
(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.
(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
$16.37 to $17.84
1,159,833 
2019
$14.96 to $16.50
1,270,200 
2020
$16.84 to $17.23
323,947 
Total 2,753,980 
 
The following table summarizes activity in outstanding options:
Amount Weighted Average Exercise Price
Outstanding options - December 31, 2020
14,428,655 
Granted 7,032,500  $ 10.31 
Exercised —  — 
Expired (1,000) 12.36 
Outstanding options - September 30, 2021
21,460,155  See table above
Schedule of Basic and Diluted Earnings Per Share
The following table summarizes the basic and diluted earnings per share calculations:
Three Months Ended
September 30, 2021
Nine Months Ended
September 30,
2021 2020 2021 2020
Net income (loss) $ 170,681  $ 103,920  $ 617,743  $ (1,459,206)
Noncontrolling interests in income of consolidated subsidiaries
9,001  11,640  28,448  34,118 
Dividends on preferred stock 15,533  14,359  44,249  39,938 
Net income (loss) attributable to common stockholders $ 146,147  $ 77,921  $ 545,046  $ (1,533,262)
Basic weighted average shares of common stock outstanding 466,579,920  415,744,518  446,085,657  415,665,441 
Dilutive effect of stock options and common stock purchase warrants(A)
15,702,775  5,224,108  15,608,824  — 
Diluted weighted average shares of common stock outstanding 482,282,695  420,968,626  461,694,481  415,665,441 
Basic earnings per share attributable to common stockholders $ 0.31  $ 0.19  $ 1.22  $ (3.69)
Diluted earnings per share attributable to common stockholders $ 0.30  $ 0.19  $ 1.18  $ (3.69)
(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:
Three Months Ended
September 30, 2021
Nine Months Ended
September 30,
2021 2020 2021 2020
Stock options and common stock purchase warrants —  —  —  5,966,141