Positive Report From Credit Suisse Helps New Residential Investment Corp (NYSE:NRZ)


Dallas, Texas 10/10/2013 (Financialstrend) – In what might bring cheer to the faces of die hard investors of the “real estate investment trust” model of wealth creation Credit Suisse on October 8, released a positive report listing out strong reasons why mortgage based REITs are likely to perform better at the stock markets. The Credit Suisse report goes on to predict that mortgage linked REIT would cough up positive returns over all in the next year as compared to the close to 0.9% dip in value as of date.

New Residential Investment Corp (NYSE:NRZ) will be hoping that its stock might rally around in the light of this news. Since September when FED made public its no taper decision, the stock of this $1.63 billion market cap company has been under sustained pressure at the markets.

In related news investors of this REIT, got paid their quarterly dividend on September 24. Share holders got paid $0.18 as dividend per share for this quarter. Over the past 12 months, the trust has paid out $0.7 per share which works out to an annualized forward yield of 10.87%. As of close of business on October 9, the shares of this stock were trading at $6.44 per share.  At these valuations, the dividend yield works out to close to 10%.

The REIT had managed to generate net income of $154 million as against sales of $66 million over the past 12 months trailing time period. The fund has close to 253 billion in shares outstanding of which 63.6% is owned by institutional investors.

As of October 9 valuations, the stock is trading 8.4% below its 52 week high valuations and is down 13% from its 52 week low pricing. Over the past month since the FED no taper decision has taken hold, NRZ stock has gone up by 4.89%.