New Residential Corp, Under Mike Nierenberg, Is Revolutionizing the REIT Industry
Since its establishment in the year 2013, New Residential Corp has shown tremendous growth in the REIT industry. New Residential Corp is a publicly traded Real Estate Investment Trust. The company’s main focus is on the highly intuitive management of investments in the residential real estate industry. The company is working towards lending investment know-how and leveraging expertise in the said area in order to strengthen its investors while allowing them higher and stronger dividends.
To do so, New Residential Corp has adopted a technique that allows them to pay keen focus on areas of high risk-adjusted returns that have proven to be a menace. Such areas include the excess mortgage servicing rights; the non-agency residential mortgage-backed securities, the servicer rights as well as other associated call rights. The success of New Residential Corp can be owed to, among other factors, their tendency to make a target out of markets that are highly lucrative and long term as well as the use of a very conservative capital structure.
Understanding the Concept of REITs
REITs, in simpler terms, are companies that buy huge chunks of land with money that has been obtained from investors known as REIT investors. This land is then leased to individuals, families or businesses for rent. The money attained from the rent is then distributed back to the shareholders of the REIT Company or business. There are four types of REIT companies. These are; the private, the publicly traded, the mortgage and the publicly non-listed REITs. Among the four, the most common is the publicly traded REITs and New Residential Corp, under Mike Nierenberg is dominating in this area.
About Mike Nierenberg
Mike Nierenberg is the current Chief Executive Officer, president and chairman of the board at New Residential Corp. He was once an MD at Fortress Investment Group to which New Residential Corp is a subsidiary. Mike Nierenberg boasts of more than three decades of experience in the investment and banking industry. For seven years he worked at Lehman Brother. He also worked at Bear Stearns for fourteen years. Additionally, Mike Nierenberg has worked at the Merrill Lynch Bank of America and JP Morgan right before Fortress.
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