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EQUITY AND EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2020

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	$	17.06	$	1,662	$	12	$	1,649
June 30, 2020	—	—		—		—		—
September 30, 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:


								Dividends Declared per Share
Series	Number of Shares	Liquidation Preference		Issuance Discount		Carrying Value		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Fixed-to-floating rate cumulative redeemable preferred:
Preferred Series A, 7.50% issued July 2019	6,210	$	155,250	3.15	%	$	150,026	$	0.47	$	1.41
Preferred Series B, 7.125% issued August 2019	11,300	282,500		3.15	%	273,418		$	0.45	$	1.34
Preferred Series C, 6.375% issued February 2020	16,100	402,500		3.15	%	389,548		$	0.40	$	1.20
Total	33,610	$	840,250			$	812,992

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	$	—

Schedule of Warrants

The table below summarizes the 2020 Warrants at September 30, 2020:


	Number of Warrants (in millions)	Weighted Average Exercise Price (per share)
December 31, 2019 outstanding warrants	—	$	—
Granted	43.4	6.91
Exercised	—	—
Expired	—	—
September 30, 2020 outstanding warrants	43.4	$	6.91

Summary of Outstanding Options

As of September 30, 2020, New Residential’s outstanding options were summarized as follows:


Held by the Manager			10,860,706
Issued to the Manager and subsequently assigned to certain of the Manager’s employees			3,560,949
Issued to the independent directors			7,000
Total			14,428,655

The following table summarizes New Residential’s outstanding options as of September 30, 2020. The last sales price on the New York Stock Exchange for New Residential’s common stock in the quarter ended September 30, 2020 was $7.95 per share.


Recipient	Date of Grant/ Exercise(A)	Number of Unexercised Options	Options Exercisable as of September 30, 2020	Weighted Average Exercise Price(B)		Intrinsic Value of Exercisable Options as of September 30, 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	4,552,585	16.67		—
Manager(C)	2019	6,351,000	3,692,800	16.14		—
Manager(C)	2020	1,619,739	377,939	17.41		—
Outstanding		14,428,655	9,761,240

(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
2017	$13.95	1,130,916
2018	$16.55 to $18.02	1,159,833
2019	$15.14 to $16.68	1,270,200
Total		3,560,949

The following table summarizes activity in New Residential’s outstanding options:


	Amount	Weighted Average Exercise Price
December 31, 2019 outstanding options	12,808,916
Options granted	1,619,739	$	17.41
Options exercised	—	—
Options expired unexercised	—	—
September 30, 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:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income (loss)	$	103,920	$	244,660	$	(1,459,206)	$	375,552
Noncontrolling interests in income of consolidated subsidiaries	11,640		14,738		34,118		31,979
Dividends on preferred stock	14,359		5,338		39,938		5,338
Net income (loss) attributable to common stockholders	$	77,921	$	224,584	$	(1,533,262)	$	338,235

Basic weighted average shares of common stock outstanding	415,744,518		415,520,780		415,665,441		406,521,273
Dilutive effect of stock options(A)	—		67,458		—		150,699
Dilutive effect of common stock purchase warrants(A)	5,224,108		—		—		—
Diluted weighted average shares of common stock outstanding	420,968,626		415,588,238		415,665,441		406,671,972

Basic earnings per share attributable to common stockholders	$	0.19	$	0.54	$	(3.69)	$	0.83
Diluted earnings per share attributable to common stockholders	$	0.19	$	0.54	$	(3.69)	$	0.83

(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,			Nine Months Ended September 30,
	2020	2019		2020	2019
Stock options	—	$	—	—	$	—
Common stock purchase warrants	—	—		5,966,141	—

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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