Newcastle Announces Fourth Quarter and Year End 2009 Results
2009 Financial Results
Fourth Quarter 2009
NEW YORK--(BUSINESS WIRE)-- Newcastle Investment Corp. (NYSE: NCT) reported that for the quarter ended December 31, 2009, GAAP income was $16.5 million, or $0.31 per diluted share, compared to a GAAP loss of $51.48 per diluted share for the quarter ended December 31, 2008.
GAAP income of $16.5 million consists of net interest income less expenses (net of preferred dividends) of $12.7 million plus other income of $30.7 million, less impairments of $26.9 million.
Other income is primarily related to gains on the extinguishment of CDO debt. In the fourth quarter, Newcastle repurchased a face amount of $36.9 million of CDO bonds for $7.6 million. As a result, Newcastle recorded a gain on extinguishment of debt of $29.1 million for the fourth quarter 2009.
Full Year 2009
GAAP loss was $223.4 million, or $4.23 per diluted share, compared to GAAP loss of $56.81 per diluted share for 2008.
The GAAP loss of $223.4 million consists of net interest income less expenses (net of preferred dividends) of $98.1 million plus other income of $227.1 million, less impairments of $548.6 million.
Other income is primarily related to gains on the extinguishment of CDO debt. In 2009, Newcastle repurchased a face amount of $246.7 million of CDO bonds for $29.9 million. As a result, Newcastle recorded a gain on extinguishment of debt of $215.3 million for 2009.
For a reconciliation of net income (loss) applicable to common stockholders to net interest income less expenses (net of preferred dividends), please refer to the tables following the presentation of the GAAP results.
Recourse Debt Reduction
In the fourth quarter, the Company reduced its non-agency recourse debt by $7 million and decreased its FNMA/FHLMC recourse debt by $2 million. As detailed below, the Company's unrestricted cash balance currently exceeds its non-agency recourse liabilities (excluding our junior subordinated notes, which are long-term obligations).
Financing and Liquidity
Certain details regarding our liquidity and current financings are set forth below as of February 17, 2010:
-- Cash - We had unrestricted cash of $59 million. In addition, we had $201
million of restricted cash for reinvestment in our CDOs;
-- Margin Exposure - We have no financings subject to margin calls, other
than one repurchase agreement with a face amount of $40 million, which
finances our FNMA/FHLMC investments and four interest rate swap
agreements with an aggregate notional amount of $67 million; and
-- Recourse Financings- Substantially all of our assets, other than our
FNMA/FHLMC investments, are currently financed with term debt subject to
amortization payments.
The following table illustrates the change in our unrestricted cash and recourse financings, excluding our junior subordinated notes ($ in millions):
February 17, December 31, September 30,
2010 2009 2009
Unrestricted Cash $ 59 $ 68 $ 73
Recourse Financings
Non-FNMA/FHLMC (non-agency)
Real Estate Securities, Loans, 21 32 36
and Properties
Manufacturing Housing Loans 8 10 13
Subtotal 29 42 49
FNMA/FHLMC Investments 40 40 42
Total Recourse Financings $ 69 $ 82 $ 91
The following table summarizes the scheduled repayments of our non-agency recourse financings ($ in millions):
Scheduled Repayments February 18, 2010 to March 31, 2010 $ 9 2nd Quarter 2010 16 3rd Quarter 2010 4 Total Recourse Financings $ 29
The following table summarizes our cash receipts in the fourth quarter 2009 from our CDO financings, their related coverage tests, and negative watch assets ($ in thousands):
Interest
Coverage
Primary % Over Collateralization % Assets on
Excess Excess
Collateral Cash Jan 31, Jan 31, Dec 31, Sep 30, Negative
Type Receipts 2010 2010 2009 2009 Watch(3)
(1) (2) (2) (2) (2)
CDO IV Securities $ 128 122.1 % -6.8 % -6.8 % -6.5 % $ 88,623
CDO V Securities 165 215.0 % -3.8 % -3.8 % 2.7 % 135,690
CDO VI Securities 142 45.6 % -24.3 % -21.8 % -15.5 % 184,413
CDO VII Securities 139 69.3 % -51.9 % -49.2 % -26.3 % 229,450
CDO Loans 3,720 287.5 % 8.5 % 9.8 % 2.7 % 130,121
VIII
CDO IX Loans 5,134 354.8 % 11.0 % 10.5 % 6.1 % 41,750
CDO X Securities 3,451 181.5 % 5.1 % 2.8 % 1.6 % 239,965
Total $ 12,879 $ 1,050,012
Represents net cash received from each CDO based on all of our interests in
such CDO (including senior management fees). Cash receipts for the
(1) quarter-ended December 31, 2009, may not be indicative of cash receipts for
subsequent periods. See forward-looking statements below for risks and
uncertainties that could cause our cash receipts for subsequent periods to
differ materially from these amounts.
Represents excess or deficiency under the applicable interest coverage or
over collateralization tests to the first threshold at which cash flow
would be redirected. We generally do not receive material cash flow from
(2) the CDO until the deficiency is corrected. The information regarding
coverage tests is based on data from the most recent remittance date on or
before January 31, 2010, December 31, 2009, or September 30, 2009, as
applicable. CDO IV and V test results are only applicable on a quarterly
basis (December, March, June and September).
Represents the face amount of assets on negative watch for possible
downgrade by at least one rating agency (Moody's, S&P, or Fitch). Amounts
are as of the determination date of December 2009 remittances for CDO IV
(3) and V (these test results are only applicable on a quarterly basis) and as
of the latest determination date of January 2010 remittances for all other
CDOs. The amounts include CDO bonds of $54.6 million issued by Newcastle,
which are eliminated in consolidation and not reflected in our investment
portfolio segments.
-- The cash receipts above include $0.9 million of non-recurring fees
received in the CDOs.
-- Results do not include the expected default of our $59.1 million of
Stuyvesant Mezzanine loan held in CDO IX, which would eliminate a
substantial amount of our excess overcollateralization cushion in CDO
IX.
Book Value
Our GAAP book value increased to $(33.89) per share, or $(1.8) billion at December 31, 2009, up from $(38.20) per share, or $(2.0) billion at September 30, 2009.
Dividends
For the quarter ended December 31, 2009, Newcastle's Board of Directors elected not to pay a common stock or preferred stock dividend. The Company decided to retain capital for liquidity and for working capital purposes.
Investment Portfolio
Newcastle's $5.6 billion investment portfolio (with a basis of $3.2 billion) consists of commercial, residential and corporate debt. During the quarter, the portfolio decreased by $84.0 million primarily as a result of principal repayments of $102.7 million, sales of $53.0 million and actual principal writedowns of $16.1 million, offset by purchases of $78.7 million.
The following table describes our investment portfolio as of December 31, 2009 ($ in millions):
Weighted
Face Basis % of Number of Average
Amount $ Amount $(1) Basis Investments Credit(2) Life
(yrs)(3)
Commercial
Assets
CMBS $ 2,458 $ 1,467 45.4 % 294 BB 3.1
Mezzanine 718 240 7.4 % 21 69% 1.9
Loans
B-Notes 308 80 2.5 % 11 76% 1.9
Whole Loans 93 55 1.7 % 4 36% 1.6
Total
Commercial 3,577 1,842 57.0 % 2.7
Assets
Residential
Assets
MH and
Residential 484 375 11.6 % 12,613 699 6.5
Loans
Subprime 463 187 5.8 % 104 B 4.6
Securities
Real Estate 86 66 2.0 % 26 BB+ 4.4
ABS
Subprime
Retained 62 2 0.1 % 7 C 1.8
Securities &
Residuals
1,095 630 19.5 % 5.3
FNMA/FHLMC 46 46 1.4 % 3 AAA 3.8
Securities
Total
Residential 1,141 676 20.9 % 5.2
Assets
Corporate
Assets
REIT Debt 518 513 15.9 % 59 BB+ 4.2
Corporate 314 199 6.2 % 10 CCC- 3.4
Bank Loans
Total
Corporate 832 712 22.0 % 3.9
Assets
Total/Weighted $ 5,550 $ 3,230 100.0 % 3.4
Average(4)
(1) Net of impairments.
Credit represents weighted average of minimum rating for rated assets, LTV
(based on the appraised value at the time of purchase) for non-rated
commercial assets, FICO score for non-rated residential assets and an
(2) implied AAA rating for FNMA/FHLMC securities. Ratings provided above were
determined by third party rating agencies as of a particular date, may not
be current and are subject to change (including the assignment of a
"negative watch") at any time.
(3) Weighted average life represents the timing of expected principal reduction
on the asset.
(4) Excludes operating real estate held for sale of $10 million and loans
subject to call option with a face amount of $406 million.
Commercial Assets
We own $3.6 billion of commercial assets (with a basis of $1.8 billion), which includes CMBS, mezzanine loans, B-Notes and whole loans.
-- During the quarter, we purchased $77.8 million, sold $7.5 million, had
principal repayments of $49.0 million and had $ 1.3 million of actual
principal writedowns for a net increase of $20.0 million. We purchased
11 CMBS assets with an average rating of "A."
-- We had no commercial assets upgraded, 13 securities or $ 160.9 million
affirmed and 43 securities or $461.7 million downgraded (from an average
rating of BBB- to B).
CMBS portfolio ($ in thousands):
Average Weighted
Face Basis % of Delinquency Principal Average
Minimum
Vintage Rating Number Amount $ Amount $ Basis 60+/FC/REO Subordination Life
(1) (2) (3) (4) (yrs)
Pre 2004 BBB+ 84 434,496 417,820 28.5% 5.0% 12.4% 3.1
2004 BB+ 61 434,515 305,844 20.8% 3.8% 5.7% 3.5
2005 BB- 53 600,343 200,292 13.7% 3.0% 5.9% 3.0
2006 BB+ 55 527,422 361,051 24.6% 2.0% 10.9% 3.1
2007 B 40 450,375 171,818 11.7% 4.8% 10.9% 2.4
2009 BBB- 1 11,000 10,060 0.7% 0.0% 0.0% 9.9
TOTAL/WA BB 294 2,458,151 1,466,885 100.0% 3.6% 9.0% 3.1
(1) The year in which the securities were issued.
Ratings provided above were determined by third party rating agencies as of
a particular date, may not be current and are subject to change (including
(2) the assignment of a "negative watch") at any time. We had approximately
$850.9 million of CMBS assets that are on negative watch for possible
downgrade by at least one rating agency as of December 31, 2009.
(3) The percentage of underlying loans that are 60+ days delinquent, or in
foreclosure or considered real estate owned (REO).
(4) The percentage of the outstanding face amount of securities that is
subordinate to our investments.
Mezzanine loans, B-Notes and whole loans portfolio ($ in thousands):
Mezzanine Whole
Loans B-Notes Loans Total
Face Amount ($) 718,298 308,082 93,305 1,119,685
Basis Amount ($) 240,185 79,427 55,408 375,020
Number 21 11 4 36
WA First $ Loan To Value (1) 55.6% 61.9% 0.0% 52.7%
WA Last $ Loan To Value (1) 69.3% 75.9% 36.1% 68.4%
Delinquency (%) (2) 6.9% 42.7% 0.0% 16.2%
(1) Loan To Value is based on the appraised value at the time of purchase.
(2) The percentage of underlying loans that are non-performing, in foreclosure,
under bankruptcy filing or considered real estate owned.
Residential Assets
We own $1.1 billion of residential assets (with a basis of $0.7 billion), which includes manufactured housing loans ("MH"), residential loans, subprime securities and FNMA/FHLMC securities.
-- During the quarter, we purchased $0.9 million, had principal repayments
of $29.4 million and actual principal writedowns of $14.8 million for a
net decrease of $43.3 million. We purchased one ABS asset with a rating
of "BBB."
-- We had no ABS securities upgraded or affirmed, and 23 securities or
$59.9 million downgraded (from an average rating of BB+ to CCC).
Manufactured housing and residential loans portfolios ($ in thousands):
Average
Face Basis % of Loan Age Original Delinquency Cumulative
Deal Amount Amount Basis (months) Balance $ 90+/FC/REO Loss to
$ $ (1) Date
MH Loans 170,452 119,482 31.8% 99 327,855 1.7% 5.5%
Portfolio 1
MH Loans 243,781 202,025 53.8% 129 434,743 1.3% 3.6%
Portfolio 2
Residential
Loans 66,136 50,320 13.4% 91 646,357 9.1% 0.2%
Portfolio 1
Residential
Loans 3,795 3,516 1.0% 64 83,950 0.0% 0.0%
Portfolio 2
TOTAL/WA 484,164 375,343 100.0% 113 1,492,905 2.5% 3.8%
(1) The percentage of loans that are 90+ days delinquent, or in foreclosure or
considered real estate owned (REO).
Subprime securities portfolio excluding our residuals and retained interests in our own securitizations ($ in thousands):
Security Characteristics:
Average
Minimum Face Basis % of Principal Excess
Vintage Rating Number Amount $ Amount $ Basis Subordination Spread(4)
(1) (2) (3)
2003 BB- 15 22,147 13,593 7.3% 21.3% 4.4%
2004 B- 31 96,253 35,218 18.8% 12.9% 4.2%
2005 B 38 162,249 43,224 23.1% 24.2% 5.1%
2006 CCC 12 102,604 43,042 23.0% 18.5% 4.9%
2007 BB 8 79,250 52,122 27.8% 29.5% 4.7%
TOTAL/WA B 104 462,503 187,199 100.0% 21.3% 4.7%
Collateral Characteristics:
Average
Loan Age Collateral 3 Month Delinquency Cumulative
Vintage(1) (months) Factor(5) CPR(6) 90+/FC/REO(7) Loss to Date
2003 82 0.11 8.9% 17.4% 2.7%
2004 68 0.15 9.1% 20.8% 2.7%
2005 55 0.24 13.4% 35.8% 7.7%
2006 41 0.56 14.1% 42.1% 10.5%
2007 39 0.65 20.6% 34.1% 10.7%
TOTAL/WA 53 0.35 13.7% 32.9% 7.5%
Real Estate ABS portfolios ($ in thousands):
Security Characteristics:
Average
Minimum Face Basis % of Principal Excess
Asset Type Rating Number Amount $ Amount $ Basis Subordination Spread
(2) (3) (4)
Manufactured BBB+ 9 51,276 49,795 75.9% 36.8% 2.3%
Housing
Small
Business B 17 34,730 15,799 24.1% 17.7% 3.4%
Loans
TOTAL/WA BB+ 26 86,006 65,594 100.0% 29.1% 2.8%
Collateral Characteristics:
Average
Loan Age Collateral 3 Month Delinquency Cumulative
Asset Type (months) Factor(5) CPR(6) 90+/FC/REO(7) Loss to Date
Manufactured Housing 110 0.37 7.9% 4.5% 9.9%
Small Business Loans 65 0.58 4.7% 14.5% 4.3%
TOTAL/WA 92 0.46 6.6% 8.5% 7.6%
(1) The year in which the securities were issued.
Ratings provided above were determined by third party rating agencies as of
a particular date, may not be current and are subject to change (including
(2) the assignment of a "negative watch") at any time. We had approximately
$21.1 million of ABS securities that are on negative watch for possible
downgrade by at least one rating agency as of December 31, 2009.
(3) The percentage of the outstanding face amount of securities and residual
interests that is subordinate to our investments.
The annualized amount of interest received on the underlying loans in
(4) excess of the interest paid on the securities, as a percentage of the
outstanding collateral balance.
(5) The ratio of original unpaid principal balance of loans still outstanding.
(6) Three month average constant prepayment rate.
(7) The percentage of underlying loans that are 90+ days delinquent, or in
foreclosure or considered real estate owned (REO).
Corporate Assets
We own $832 million of corporate assets (with a basis of $712 million), including REIT debt and corporate bank loans.
-- During the quarter, we sold $45.5 million and had principal repayments
of $24.3 million for a decrease of $69.8 million. Our sales consisted of
nine REIT assets and one bank loan with an average rating of "B-."
-- We had no REIT assets upgraded or affirmed and one REIT asset or $10.0
million downgraded (from a rating of BBB+ to BBB). We had one bank loan
or $20.5 million downgraded (from a rating of B- to CC).
REIT debt portfolio ($ in thousands):
Average
Face Basis % of
Minimum
Industry Rating(1) Number Amount $ Amount $ Basis
Retail BBB- 17 142,460 134,512 26.2%
Diversified CCC+ 12 123,836 124,344 24.3%
Office BBB 12 125,469 127,532 24.9%
Multifamily BBB 4 18,765 17,537 3.4%
Hotel BBB 4 30,220 30,771 6.0%
Healthcare BBB- 6 51,600 51,379 10.0%
Storage A- 1 5,000 5,073 1.0%
Industrial BB- 3 20,865 21,372 4.2%
TOTAL/WA BB+ 59 518,215 512,520 100.0%
Corporate bank loan portfolio ($ in thousands):
Average
Minimum Face Basis % of
Industry Rating(1) Number Amount $ Amount $ Basis
Real Estate D 3 82,828 48,943 24.6%
Media CC 2 112,000 42,956 21.6%
Resorts BB- 1 71,449 64,363 32.4%
Restaurant B 2 19,400 16,065 8.1%
Transportation NR 1 27,000 25,110 12.6%
Theaters B+ 1 1,457 1,391 0.7%
TOTAL/WA CCC- 10 314,134 198,828 100.0%
Ratings provided above were determined by third party rating agencies as of
a particular date, may not be current and are subject to change (including
(1) the assignment of a "negative watch") at any time. We did not have any REIT
assets or bank loans that are on negative watch for possible downgrade by
any rating agency as of December 31, 2009.
Conference Call
Newcastle's management will conduct a live conference call today, February 19, 2010, at 11:00 A.M. Eastern Time to review the financial results for the quarter and full year ended December 31, 2009. All interested parties are welcome to participate on the live call. You can access the conference call by dialing (888) 243-2046 (from within the U.S.) or (706) 679-1533 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Newcastle Fourth Quarter Earnings Call."
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newcastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.
A telephonic replay of the conference call will also be available until 11:59 P.M. Eastern Time on Friday, March 5, 2010 by dialing (800) 642-1687 (from within the U.S.) or (706) 645-9291 (from outside of the U.S.); please reference access code "55209464."
About Newcastle
Newcastle Investment Corp. owns and manages a portfolio of diversified, credit sensitive real estate debt that is primarily financed with match funded debt. Newcastle is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes. Newcastle is managed by an affiliate of Fortress Investment Group LLC, a global alternative asset manager. For more information regarding Newcastle Investment Corp. or to be added to our e-mail distribution list, please visit www.newcastleinv.com.
Safe Harbor
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to our liquidity, future losses and impairment charges, our ability to acquire assets with attractive returns and the delinquent and loss rates on our subprime portfolios. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. Newcastle can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Newcastle's expectations include, but are not limited to, the risk that the ongoing challenging credit and liquidity conditions continue to cause downgrades of a significant number of our securities and recording of additional impairment charges or reductions in shareholders' equity; the risk that we can find additional suitably priced investments; the risk that investments made or committed to be made cannot be financed on the basis and for the term at which we expect; the relationship between yields on assets which are paid off and yields on assets in which such monies can be reinvested; and the relative spreads between the yield on the assets we invest in and the cost and availability of debt and equity financing. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the Company's Annual Report on Form 10-K, which is available on the Company's website (www.newcastleinv.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Newcastle expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
Newcastle Investment Corp.
Consolidated Statements of Operations
(dollars in thousands, except per share data)
Year Ended December 31, Three Months Ended December
31,
2009 2008 2009 2008
Interest income $ 361,866 $ 468,867 $ 74,833 $ 107,406
Interest expense 218,410 307,303 51,256 70,564
Net interest income 143,456 161,564 23,577 36,842
Impairment
Provision for credit - 8,457 - 2,007
losses on loan pools
Valuation allowance
(reversal) on loans 15,007 985,677 (68,086 ) 908,761
(held for sale in
2009)
Other-than-temporary
impairment on 603,768 1,997,696 77,077 1,728,480
securities
Portion of
other-than-temporary
impairment on (70,235 ) - 17,870 -
securities
recognized in other
comprehensive income
548,540 2,991,830 26,861 2,639,248
Net interest income
(loss) after (405,084 ) (2,830,266 ) (3,284 ) (2,602,406 )
impairment
Other Income (Loss)
Gain (loss) on
settlement of 11,438 (58,668 ) 3,650 (62,588 )
investments, net
Gain on
extinguishment of 215,279 13,824 29,070 (24 )
debt
Other income (loss), 262 (76,122 ) (1,931 ) (40,329 )
net
Equity in earnings
of unconsolidated 420 8,157 139 (32 )
subsidiaries
227,399 (112,809 ) 30,928 (102,973 )
Expenses
Loan and security 5,034 6,649 1,165 1,413
servicing expense
General and
administrative 8,609 7,297 1,788 1,678
expense
Management fee to 17,968 18,388 4,493 4,597
affiliate
Depreciation and 290 289 72 71
amortization
31,901 32,623 7,518 7,759
Income (loss) from (209,586 ) (2,975,698 ) 20,126 (2,713,138 )
continuing operations
Income (loss) from
discontinued (318 ) (9,654 ) (222 ) (930 )
operations
Net Income (Loss) (209,904 ) (2,985,352 ) 19,904 (2,714,068 )
Preferred dividends (13,501 ) (13,501 ) (3,375 ) (3,375 )
Income (Loss)
Applicable to Common $ (223,405 ) $ (2,998,853 ) $ 16,529 $ (2,717,443 )
Stockholders
Income (loss) Per
Share of Common Stock
Basic $ (4.23 ) $ (56.81 ) $ 0.31 $ (51.48 )
Diluted $ (4.23 ) $ (56.81 ) $ 0.31 $ (51.48 )
Income (loss) from
continuing operations
per share
of common stock,
after preferred
dividends
Basic $ (4.22 ) $ (56.63 ) $ 0.32 $ (51.46 )
Diluted $ (4.22 ) $ (56.63 ) $ 0.32 $ (51.46 )
Income (loss) from
discontinued
operations per share
of common stock
Basic $ (0.01 ) $ (0.18 ) $ (0.01 ) $ (0.02 )
Diluted $ (0.01 ) $ (0.18 ) $ (0.01 ) $ (0.02 )
Weighted Average
Number of Shares of
Common Stock
Outstanding
Basic 52,863,993 52,785,305 52,905,413 52,789,050
Diluted 52,863,993 52,785,305 52,905,413 52,789,050
Dividends Declared
per Share of Common $ - $ 0.750 $ - $ -
Stock
Newcastle Investment Corp.
Consolidated Balance Sheets
(dollars in thousands, except share data)
December 31, 2009 December 31, 2008
Assets
Real estate securities, available for $ 1,830,795 $ 1,668,748
sale
Real estate related loans, held for sale, 573,862 843,212
net
Residential mortgage loans, held for 383,647 409,632
sale, net
Subprime mortgage loans subject to call 403,006 398,026
option
Investments in unconsolidated 193 384
subsidiaries
Operating real estate, held for sale 9,966 11,866
Cash and cash equivalents 68,300 49,746
Restricted cash 205,378 44,282
Receivables and other assets 39,481 47,727
$ 3,514,628 $ 3,473,623
Liabilities and Stockholders' Equity
(Deficit)
Liabilities
CDO bonds payable 4,058,928 4,359,981
Other bonds payable 303,697 380,620
Repurchase agreements 71,309 276,472
Financing of subprime mortgage loans 403,006 398,026
subject to call option
Junior subordinated notes payable 103,264 100,100
Derivative liabilities 207,154 333,977
Due to affiliates 1,497 1,532
Accrued expenses and other liabilities 6,425 16,447
5,155,280 5,867,155
Stockholders' Equity (Deficit)
Preferred stock, $0.01 par value,
100,000,000 shares authorized,
2,500,000 shares of 9.75% Series B
Cumulative Redeemable Preferred Stock
1,600,000 shares of 8.05% Series C
Cumulative Redeemable Preferred Stock,
and
2,000,000 shares of 8.375% Series D
Cumulative Redeemable Preferred Stock
liquidation preference $25.00 per share, 152,500 152,500
issued and outstanding
Common stock, $0.01 par value,
500,000,000 shares authorized, 52,912,513
and
52,789,050 shares issued and outstanding
at December 31, 2009 and
December 31, 2008, respectively 529 528
Additional paid-in capital 1,033,520 1,033,416
Accumulated deficit (2,193,383 ) (3,272,403 )
Accumulated other comprehensive income (633,818 ) (307,573 )
(loss)
(1,640,652 ) (2,393,532 )
$ 3,514,628 $ 3,473,623
Newcastle Investment Corp.
Reconciliation of Net Interest Income Less Expenses (Net of Preferred
Dividends)
(dollars in thousands)
(Unaudited)
Three Months Ended
December 31, 2009 December 31, 2008
Net Income (Loss) Applicable to Common $ 16,529 $ (2,717,443 )
Stockholders
Add (Deduct):
Impairment 26,861 2,639,248
Other (Income) Loss (30,928 ) 102,973
Loss from discontinued operations 222 930
Net Interest Income less Expenses (Net of $ 12,684 $ 25,708
Preferred Dividends)
Year Ended
December 31, 2009 December 31, 2008
Net Income (Loss) Applicable to Common $ (223,405 ) $ (2,998,853 )
Stockholders
Add (Deduct):
Impairment 548,540 2,991,830
Other (Income) Loss (227,399 ) 112,809
Loss from discontinued operations 318 9,654
Net Interest Income less Expenses (Net of $ 98,054 $ 115,440
Preferred Dividends)
Source: Newcastle Investment Corp.
Released February 19, 2010