Newcastle Announces Third Quarter 2009 Results
Third Quarter 2009 Financial Results
NEW YORK--(BUSINESS WIRE)-- Newcastle Investment Corp. (NYSE: NCT) reported that for the quarter ended September 30, 2009, GAAP income was $49.7 million or $0.94 per diluted share, compared to a GAAP loss of $2.83 per diluted share for the quarter ended September 30, 2008.
GAAP income of $49.7 million consists of net interest income less expenses (net of preferred dividends) of $11.5 million plus other income of $129.0 million, less impairments of $90.8 million.
Other income is primarily related to gains on the extinguishment of CDO debt. In September, Newcastle repurchased a face amount of $150.1 million of CDO bonds in CDOs VIII, IX and X for $16.7 million. As a result, Newcastle recorded a gain on extinguishment of debt of $132.5 million in the third quarter of 2009.
Recourse Debt Reduction
In the third quarter, the Company decreased its non-agency recourse debt by $41 million and decreased its FNMA/FHLMC recourse debt by $3 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 November 4, 2009:
-- Cash - We had unrestricted cash of $74.0 million. In addition, we had
$126.7 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 $41.4 million which
finances our FNMA/FHLMC investments and four interest rate swap
agreements with an aggregate notional amount of $70.1 million; and
-- Recourse Financings- Substantially all of our assets, other than our
FNMA/FHLMC investments, are currently financed with term debt subject to
amortization payments.
The following table illustrates the change in our unrestricted cash and recourse financings, excluding our junior subordinated notes ($ in millions):
November 4, September 30, June 30,
2009 2009 2009
Unrestricted Cash $ 74 $ 73 $ 66
Recourse Financings
Non-FNMA/FHLMC (non-agency)
Real Estate Securities, Loans, and 36 36 73
Properties
Manufacturing Housing Loans 13 13 17
Subtotal 49 49 90
FNMA/FHLMC Investments 41 42 45
Total Recourse Financings $ 90 $ 91 $ 135
The following table summarizes the scheduled repayments of our non-agency recourse financings ($ in millions):
Scheduled Repayments November 5, 2009 to December 31, 2009 $ 6 1st Quarter 2010 15 2nd Quarter 2010 23 3rd Quarter 2010 3 4th Quarter 2010 2 Total Recourse Financings $ 49
The following table summarizes our cash receipts in the third quarter 2009 from our CDO financings, their related coverage tests, and negative watch assets ($ in thousands):
Interest
Coverage
Primary % Excess Over Collateralization % Assets on
Excess
Collateral Cash September September June Negative
30, 30, 30,
Type Receipts 2009(2) 2009(2) 2009 Original Watch(3)
(1) (2)
CDO Securities $ 145 108.2% -6.5% 0.6% 3.5% $ 136,374
IV
CDO V Securities 1,764 117.1% 2.7% 2.7% 2.5% 129,026
CDO Securities 147 97.4% -15.5% -13.4% 2.6% 193,436
VI
CDO Securities 147 70.2% -26.3% -20.1% 2.5% 232,748
VII
CDO Loans 5,021 263.8% 2.7% 4.4% 4.5% 197,743
VIII
CDO Loans 5,373 266.7% 6.1% 2.3% 8.1% 47,250
IX
CDO X Securities 4,590 267.4% 1.6% 3.6% 8.3% 381,878
Total $ 17,187 $ 1,318,455
(1) Represents net cash received from each CDO based on all of our interests in such CDO (including senior management fees). Cash receipts for the quarter-ended September 30, 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.
(2) 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 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 September 30, 2009 or June 30, 2009 as applicable.
(3) Represents the face amount of assets on negative watch for possible downgrade by at least one rating agency (Moody's, S&P, or Fitch) as of September 30, 2009 in each CDO. The amounts include CDO bonds of $146.3 million issued by Newcastle, which are eliminated in consolidation and not reflected in our investment portfolio segments.
-- The cash receipts above include $1.5 million of non-recurring fees
received in the CDOs.
-- The over collateralization excess percentages as of the October
remittance reports were as follows: CDO VI -15.3%, CDO VII -28.0 %, CDO
VIII 8.3%, CDO IX 15.7% and CDO X 7.0 %. CDOs IV and V only report
actual over collateralization excess percentages on a quarterly basis.
Book Value
Our GAAP book value increased to $(38.20) per share, or $(2.0) billion at September 30, 2009, up from $(44.15) per share, or $(2.3) billion at June 30, 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 GAAP results.
Dividends
For the quarter ended September 30, 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 $3.3 billion) consists of commercial, residential and corporate debt. During the quarter, the portfolio decreased by $150.7 million primarily as a result of principal repayments of $176.9 million, sales of $42.5 million and actual principal writedowns of $33.2 million, offset by purchases of $101.9 million.
The following table describes our investment portfolio as of September 30, 2009 ($ in millions):
Weighted
Face Basis % of Number of Average
Amount $ Amount $(1) Basis Investments Credit(2) Life
(yrs)(3)
Commercial
Assets
CMBS $ 2,389 $ 1,504 44.9% 285 BB+ 3.2
Mezzanine 754 276 8.3% 23 68% 1.7
Loans
B-Notes 308 74 2.2% 11 60% 1.6
Whole Loans 98 58 1.7% 4 37% 1.9
Total
Commercial 3,549 1,912 57.1% 2.7
Assets
Residential
Assets
MH and
Residential 499 361 10.8% 12,956 697 6.0
Loans
Subprime 483 206 6.2% 104 B 3.8
Securities
Subprime
Retained 66 3 0.1% 7 C/649 1.8
Securities &
Residuals
Real Estate 87 68 2.0% 26 BBB- 4.5
ABS
1,135 638 19.1% 4.7
FNMA/FHLMC 48 48 1.4% 3 AAA 3.9
Securities
Total
Residential 1,183 686 20.5% 4.6
Assets
Corporate
Assets
REIT Debt 561 552 16.5% 61 BB 4.3
Corporate 341 198 5.9% 10 CCC- 2.6
Bank Loans
Total
Corporate 902 750 22.4% 3.7
Assets
Total/Weighted $ 5,634 $ 3,348 100.0% 3.3
Average(4)
(1) Net of impairments.
(2) 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 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 payments on the asset. For an asset with an expected loss, weighted average life represents the timing of all remaining expected cash flows, both principal and interest payments.
(4) Excludes operating real estate held for sale of $11 million and loans subject to call option with a face amount of $406 million.
Commercial Assets
We own $3.5 billion of commercial assets (with a basis of $1.9 billion), which includes CMBS, mezzanine loans, B-Notes and whole loans.
-- During the quarter, we purchased CMBS assets of $48.6 million, had
principal repayments of $31.8 million and had $1.3 million of actual
principal writedowns for a net increase of $15.5 million. We purchased
eight CMBS assets with an average rating of "A."
-- We had no commercial assets upgraded, 19 securities or $137.6 million
affirmed and 37 securities or $369.0 million downgraded (from an average
rating of BB+ to B).
-- We currently have approximately $1.1 billion of CMBS assets that are on
negative watch for possible downgrade by at least one rating agency as
of September 30, 2009.
CMBS portfolio ($ in thousands):
Average Face Basis % of Delinquency Principal Weighted
Minimum Average
Vintage Rating Number Amount $ Amount $ Basis 60+/FC/REO Subordination Life
(1) (2) (3) (4) (yrs)
Pre 2004 BBB+ 81 429,115 413,444 27.5% 3.6% 11.8% 3.3
2004 BB+ 61 434,747 338,967 22.5% 3.1% 5.7% 4.2
2005 BB 53 601,136 251,409 16.7% 2.0% 5.8% 3.1
2006 BB+ 50 473,568 324,715 21.6% 1.3% 10.3% 2.9
2007 B+ 40 450,518 175,363 11.7% 3.0% 10.8% 2.4
TOTAL/WA BB+ 285 2,389,084 1,503,898 100.0% 2.5% 8.7% 3.2
(1) The year in which the securities were issued.
(2) 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) 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 ($) 753,902 308,085 97,680 1,159,667
Basis Amount ($) 276,196 73,599 58,496 408,291
Number 23 11 4 38
WA First $ Loan To Value (1) 55.3 % 47.9 % 0.0 % 48.7 %
WA Last $ Loan To Value (1) 68.1 % 59.8 % 37.3 % 63.3 %
Delinquency (%) (2) 6.0 % 42.7 % 0.0 % 15.2 %
(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 $1.2 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 $33.3 million, sold $19.7 million, had
principal repayments of $36.9 million and actual principal writedowns of
$28.9 million for a net decrease of $52.2 million. We purchased four ABS
assets with an average rating of "A."
-- We had no ABS securities upgraded, one security or $7.5 million affirmed
and 38 securities or $123.2 million downgraded (from an average rating
of B+ to CCC-).
-- We currently have approximately $48.8 million of ABS securities that are
on negative watch for possible downgrade by at least one rating agency
as of September 30, 2009.
Manufactured housing and residential loans portfolios ($ 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 175,377 116,359 32.3% 96 327,855 1.5% 5.1%
Portfolio 1
MH Loans 252,436 199,641 55.3% 126 434,743 1.2% 3.2%
Portfolio 2
Residential
Loans 67,498 41,438 11.5% 77 646,357 9.1% 0.2%
Portfolio 1
Residential
Loans 3,795 3,180 0.9% 60 83,950 0.0% 0.0%
Portfolio 2
TOTAL/WA 499,106 360,618 100.0% 108 1,492,905 2.3% 3.5%
(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 23,085 15,481 7.5% 20.9% 4.2%
2004 B+ 31 99,222 41,420 20.1% 12.9% 4.2%
2005 B 39 169,272 46,915 22.8% 23.3% 5.1%
2006 CCC 12 105,166 45,187 21.9% 18.7% 4.9%
2007 BB+ 7 86,072 57,085 27.7% 30.7% 4.6%
TOTAL/WA B 104 482,817 206,088 100.0% 21.4% 4.8%
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 78 0.11 13.1% 15.0% 2.6%
2004 65 0.15 11.7% 18.8% 2.6%
2005 52 0.25 17.2% 32.8% 7.3%
2006 38 0.58 14.9% 38.6% 9.2%
2007 36 0.69 20.7% 32.4% 8.3%
TOTAL/WA 50 0.37 16.0% 30.3% 6.7%
(1) The year in which the securities were issued.
(2) 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) The percentage of the outstanding face amount of securities and residual interests that is subordinate to our investments.
(4) The annualized amount of interest received on the underlying loans in 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).
Residuals and retained securities
We own $66.3 million of retained securities and residual interest with a basis of $3.0 million in two subprime portfolio securitizations from 2006 and 2007.
Corporate Assets
We own $0.9 billion of corporate assets (with a basis of $0.8 billion), including REIT debt and corporate bank loans.
-- During the quarter, we purchased $20.0 million, sold $22.8 million, had
principal repayments of $108.2 million, and actual principal writedowns
of $3.0 million for a net decrease of $114.0 million. Our purchase
consisted of three REIT assets with an average rating of "BBB-."
-- We had no REIT assets upgraded or affirmed and seven REIT assets or
$73.1 million downgraded (from a rating of CCC+ to C). We had no bank
loans upgraded or affirmed and two securities or $112.0 million
downgraded (from an average rating of CCC to CC).
-- We currently have approximately $11.5 million of REIT assets on
downgrade watch and $23.0 million of bank loans that are on negative
watch for possible downgrade by at least one rating agency as of
September 30, 2009.
REIT debt portfolio ($ in thousands):
Average Minimum Face Basis % of
Industry Rating(1) Number Amount $ Amount $ Basis
Retail BB+ 18 164,460 152,365 27.6%
Diversified B- 13 133,141 133,511 24.2%
Office BBB 12 130,219 132,441 24.0%
Multifamily BBB 4 18,765 17,513 3.2%
Hotel BBB- 4 37,220 37,777 6.9%
Healthcare BBB- 6 51,600 51,374 9.3%
Storage A- 1 5,000 5,078 0.9%
Industrial BB- 3 20,865 21,440 3.9%
TOTAL/WA BB 61 561,270 551,499 100.0%
Corporate bank loan portfolio ($ in thousands):
Average
Minimum Face Basis % of
Industry Rating(1) Number Amount $ Amount $ Basis
Real Estate C 3 104,549 62,974 31.8%
Media CC 2 112,000 35,840 18.1%
Resorts BB- 1 76,406 59,215 29.9%
Restaurant B 2 19,388 14,458 7.3%
Transportation NR 1 27,000 24,300 12.2%
Theatres B- 1 1,461 1,411 0.7%
TOTAL/WA CCC- 10 340,804 198,198 100.0%
(1) 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.
Conference Call
Newcastle's management will conduct a live conference call today, November 6, 2009, at 1:00 P.M. Eastern Time to review the financial results for the quarter ended September 30, 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 Third 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, November 13, 2009 by dialing (800) 642-1687 (from within the U.S.) or (706) 645-9291 (from outside of the U.S.); please reference access code "36221474."
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 credit and liquidity crisis continues 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 and Quarterly Report on Form 10-Q, which are 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 share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Interest income $ 75,222 $ 113,549 $ 287,033 $ 361,461
Interest expense 52,438 73,651 167,154 236,739
Net interest income 22,784 39,898 119,879 124,722
Impairment
Provision for credit - 2,077 - 6,450
losses on loan pools
Valuation allowance
(reversal) on loans (6,926 ) 39,831 83,093 76,916
(held for sale in
2009)
Other-than-temporary
impairment on 130,555 121,047 526,691 269,216
securities
Portion of
other-than-temporary
impairment on (32,827 ) - (88,105 ) -
securities
recognized in other
comprehensive income
90,802 162,955 521,679 352,582
Net interest income
(loss) after (68,018 ) (123,057 ) (401,800 ) (227,860 )
impairment
Other Income (Loss)
Gain (loss) on
settlement of (1,709 ) (2,569 ) 7,788 3,920
investments, net
Gain on
extinguishment of 132,534 5,315 186,209 13,848
debt
Other income (loss), (2,252 ) (17,912 ) 2,193 (35,793 )
net
Equity in earnings
of unconsolidated 296 419 281 8,189
subsidiaries
128,869 (14,747 ) 196,471 (9,836 )
Expenses
Loan and security 1,097 1,718 3,869 5,236
servicing expense
General and
administrative 2,230 2,135 6,821 5,619
expense
Management fee to 4,492 4,597 13,475 13,791
affiliate
Depreciation and 73 73 218 218
amortization
7,892 8,523 24,383 24,864
Income (loss) from 52,959 (146,327 ) (229,712 ) (262,560 )
continuing operations
Income (loss) from
discontinued 79 227 (96 ) (8,724 )
operations
Net Income (Loss) 53,038 (146,100 ) (229,808 ) (271,284 )
Preferred dividends (3,375 ) (3,375 ) (10,126 ) (10,126 )
Income (Loss)
Applicable to Common $ 49,663 $ (149,475 ) $ (239,934 ) $ (281,410 )
Stockholders
Income (loss) Per
Share of Common Stock
Basic $ 0.94 $ (2.83 ) $ (4.54 ) $ (5.33 )
Diluted $ 0.94 $ (2.83 ) $ (4.54 ) $ (5.33 )
Income (loss) from
continuing operations
per share of common
stock, after
preferred dividends
Basic $ 0.94 $ (2.84 ) $ (4.54 ) $ (5.17 )
Diluted $ 0.94 $ (2.84 ) $ (4.54 ) $ (5.17 )
Income (loss) from
discontinued
operations per share
of common stock
Basic $ - $ 0.01 $ - $ (0.16 )
Diluted $ - $ 0.01 $ - $ (0.16 )
Weighted Average
Number of Shares of
Common Stock
Outstanding
Basic 52,905,335 52,788,766 52,850,034 52,784,048
Diluted 52,905,335 52,788,766 52,850,034 52,784,048
Dividends Declared
per Share of Common $ - $ 0.250 $ - $ 0.750
Stock
Newcastle Investment Corp.
Consolidated Balance Sheets
(dollars in thousands, except share data)
September 30, 2009 December 31, 2008
(unaudited)
Assets
Real estate securities, available for $ 1,761,209 $ 1,668,748
sale
Real estate related loans, held for 606,504 843,212
sale, net
Residential mortgage loans, held for 368,939 409,632
sale, net
Subprime mortgage loans subject to call 401,713 398,026
option
Investments in unconsolidated 173 384
subsidiaries
Operating real estate, held for sale 10,116 11,866
Cash and cash equivalents 73,249 49,746
Restricted cash 140,728 44,282
Receivables and other assets 36,276 47,727
$ 3,398,907 $ 3,473,623
Liabilities and Stockholders' Equity
(Deficit)
Liabilities
CDO bonds payable 4,111,136 4,359,981
Other bonds payable 315,845 380,620
Repurchase agreements 78,039 276,472
Financing of subprime mortgage loans 401,713 398,026
subject to call option
Junior subordinated notes payable 101,634 100,100
Derivative liabilities 242,578 333,977
Due to affiliates 1,497 1,532
Payables to brokers, dealers and 7,337 -
clearing organizations
Accrued expenses and other liabilities 7,457 16,447
5,267,236 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 152,500 152,500
Redeemable Preferred Stock, and
2,000,000 shares of 8.375% Series D
Cumulative Redeemable Preferred Stock
liquidation preference $25.00 per share,
issued and outstanding
Common stock, $0.01 par value,
500,000,000 shares authorized,
52,905,335 and 52,789,050 shares issued 529 528
and outstanding at September 30, 2009
and December 31, 2008, respectively
Additional paid-in capital 1,033,506 1,033,416
Accumulated deficit (2,213,287 ) (3,272,403 )
Accumulated other comprehensive income (841,577 ) (307,573 )
(loss)
(1,868,329 ) (2,393,532 )
$ 3,398,907 $ 3,473,623
Newcastle Investment Corp.
Reconciliation of Net Interest Income Less Expenses (Net of Preferred
Dividends)
(dollars in thousands)
(Unaudited)
Three Months Ended
September 30, 2009 September 30, 2008
Net Income (Loss) Applicable to Common $ 49,663 $ (149,475 )
Stockholders
Add (Deduct):
Impairment 90,802 162,955
Other Income (Loss) (128,869 ) 14,747
Income from discontinued operations (79 ) (227 )
Net Interest Income less Expenses (Net $ 11,517 $ 28,000
of Preferred Dividends)
Source: Newcastle Investment Corp.
Released November 6, 2009