RITM Rithm Capital Corp

Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the first quarter ended March 31, 2024:

First Quarter 2024 Financial Highlights:

• GAAP net income of $261.6 million, or $0.54 per diluted common share(1)
• Earnings available for distribution of $233.2 million, or $0.48 per diluted common share(1)(2)
• Common dividend of $120.9 million, or $0.25 per common share
• Book value per common share of $12.19(1)

 

Q1 2024

 

Q4 2023

 

Summary Operating Results:

 

 

 

 

GAAP Net (Loss) Income per Diluted Common Share(1)

$

0.54

 

$

(0.18

)

 

GAAP Net (Loss) Income

$

261.6

million

$

(87.5

)

million

 

 

 

 

 

Non-GAAP Results:

 

 

 

 

Earnings Available for Distribution per Diluted Common Share(1)(2)

$

0.48

 

$

0.51

 

 

Earnings Available for Distribution(2)

$

233.2

million

$

247.4

 

million

 

 

 

 

 

Common Dividend:

 

 

 

 

Common Dividend per Share

$

0.25

 

$

0.25

 

 

Common Dividend

$

120.9

million

$

120.8

 

million

“Rithm had a terrific quarter hitting on all cylinders,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. “Our well-balanced business lines all contributed in a positive way this quarter, and we believe Rithm is well positioned for success in the current market environment. We are very excited to continue delivering strong results for our shareholders and LPs on an ongoing basis.”

First Quarter 2024 Company Highlights:

• Newrez
  • Combined Origination & Servicing segment pre-tax income of $408.1 million(3)
  • Generated a 23% pre-tax return on equity (“ROE”) on $3.8 billion of equity(4)(8)
  • Origination funded production volume of $10.8 billion, an increase of 21% QoQ and 54% YoY
• Total Rithm MSR Portfolio Summary
  • Mortgage servicing rights (“MSR”) portfolio totaled $587 billion in unpaid principal balance (“UPB”), relatively unchanged from December 31, 2023(5)
  • Portfolio average constant prepayment rate of approximately 5%
• Sculptor
  • ~$32 billion of assets under management (“AUM”) at March 31, 2024(6)
  • Expanded Institutional Credit Strategies through the launch of Sculptor Loan Financing Partners platform, a captive CLO equity investment platform, with an anchor investment from Rithm Capital
• Specialized Loan Servicing(7)
  • Previously announced acquisition of Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”) targeted to close in Q2’24, subject to customary closing conditions and approvals
  • The acquisition includes approximately $45 billion of MSRs and $104 billion of third-party servicing unpaid principal balance, along with SLS’s origination services business

 

(1)

Per common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 485,931,501 and 483,214,458 weighted average diluted shares for the quarters ended March 31, 2024 and December 31, 2023, respectively. Per share calculations of Book Value are based on 483,477,713 common shares outstanding as of March 31, 2024

 

(2)

Earnings Available for Distribution is a non-GAAP financial measure. For a reconciliation of Earnings Available for Distribution to GAAP Net Income, as well as an explanation of this measure, please refer to the section entitled Non-GAAP Financial Measures and Reconciliation to GAAP Net Income below

 

(3)

Includes noncontrolling interests.

 

(4)

Excludes full MSR mark-to-market of $194.5 million.

 

(5)

Includes excess and full MSRs.

 

(6)

“Assets Under Management” (AUM) refers to the assets for which Sculptor provides investment management, advisory or certain other investment-related services. This is generally equal to the sum of (i) net asset value of the funds, (ii) uncalled capital commitments, (iii) total capital commitments for certain real estate funds and (iv) par value of collateralized loan obligations. AUM includes amounts that are not subject to management fees, incentive income or other amounts earned on AUM. Our calculation of AUM may differ from the calculations of other asset managers, and as a result, may not be comparable to similar measures presented by other asset managers. Our calculations of AUM are not based on any definition set forth in the governing documents of the investment funds and are not calculated pursuant to any regulatory definitions.

 

(7)

Based on management’s current views and estimates. Actual results may vary materially.

(8)

ROE is calculated based on annualized pre-tax income, excluding MSR mark to market, divided by the average Origination and Servicing segment ending equity for the current and prior periods.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investors - News section of the Company’s website, www.rithmcap.com. For consolidated investment portfolio information, please refer to the Company’s most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K, which are available on the Company’s website, www.rithmcap.com. Information on, or accessible through, our website is not a part of, and is not incorporated into, this press release.

EARNINGS CONFERENCE CALL

Rithm Capital’s management will host a conference call on Tuesday, April 30, 2024 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investors - News section of Rithm Capital’s website, www.rithmcap.com.

All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-833-974-2382 (from within the U.S.) or 1-412-317-5787 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Rithm Capital First Quarter 2024 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10188668/fc656ed390.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.rithmcap.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Tuesday, May 7, 2024 by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code “7092834 .”

Consolidated Statements of Operations (Unaudited)

($ in thousands, except share and per share data)

 

Three Months Ended

 

March 31,

2024

 

December 31,

2023

Revenues

 

 

 

Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate

 

 

 

Servicing fee revenue, net and interest income from MSRs and MSR financing receivables

$

470,203

 

 

$

482,210

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839) and $(134,884), respectively)

 

84,175

 

 

 

(466,346

)

Servicing revenue, net

 

554,378

 

 

 

15,864

 

Interest income

 

448,179

 

 

 

450,529

 

Gain on originated residential mortgage loans, held-for-sale, net

 

149,545

 

 

 

98,114

 

Other revenues

 

58,348

 

 

 

58,495

 

 

 

1,210,450

 

 

 

623,002

 

Asset Management

 

 

 

Asset management revenues

 

75,860

 

 

 

83,938

 

 

 

1,286,310

 

 

 

706,940

 

Expenses

 

 

 

Interest expense and warehouse line fees

 

414,365

 

 

 

400,474

 

General and administrative

 

195,118

 

 

 

191,614

 

Compensation and benefits

 

235,778

 

 

 

222,457

 

 

 

845,261

 

 

 

814,545

 

Other income (loss)

 

 

 

Realized and unrealized gains (losses), net

 

(68,134

)

 

 

70,607

 

Other income (loss), net

 

7,984

 

 

 

(303

)

 

 

(60,150

)

 

 

70,304

 

Income (loss) before income taxes

 

380,899

 

 

 

(37,301

)

Income tax expense

 

93,412

 

 

 

29,850

 

Net income (loss)

$

287,487

 

 

$

(67,151

)

Noncontrolling interests in income of consolidated subsidiaries

 

3,452

 

 

 

(2,020

)

Dividends on preferred stock

 

22,395

 

 

 

22,395

 

Net income (loss) attributable to common stockholders

$

261,640

 

 

$

(87,526

)

 

 

 

 

Net income (loss) per share of common stock

 

 

 

Basic

$

0.54

 

 

$

(0.18

)

Diluted

$

0.54

 

 

$

(0.18

)

Weighted average number of shares of common stock outstanding

 

 

 

Basic

 

483,336,777

 

 

 

483,214,458

 

Diluted

 

485,931,501

 

 

 

483,214,458

 

 

 

 

 

Dividends declared per share of common stock

$

0.25

 

 

$

0.25

 

Consolidated Balance Sheets

($ in thousands, except share data)

 

March 31,

2024

(Unaudited)

 

December 31, 2023

Assets

 

 

 

Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value

$

8,706,723

 

 

$

8,405,938

 

Real estate and other securities ($15,289,313 and $9,757,664 at fair value, respectively)

 

15,314,199

 

 

 

9,782,217

 

Residential mortgage loans, held-for-investment, at fair value

 

365,398

 

 

 

379,044

 

Residential mortgage loans, held-for-sale ($3,691,700 and $2,461,865 at fair value, respectively)

 

3,766,115

 

 

 

2,540,742

 

Consumer loans, held-for-investment, at fair value

 

1,103,799

 

 

 

1,274,005

 

Single-family rental properties

 

1,007,172

 

 

 

1,001,928

 

Mortgage loans receivable, at fair value

 

2,384,744

 

 

 

2,232,913

 

Residential mortgage loans subject to repurchase

 

1,845,889

 

 

 

1,782,998

 

Cash and cash equivalents

 

1,136,437

 

 

 

1,287,199

 

Restricted cash

 

394,546

 

 

 

385,620

 

Servicer advances receivable

 

2,586,409

 

 

 

2,760,250

 

Other assets ($1,525,970 and $1,489,419 at fair value, respectively)

 

3,509,497

 

 

 

3,478,931

 

 

$

42,120,928

 

 

$

35,311,785

 

Liabilities and Equity

 

 

 

 

 

 

 

Liabilities

 

 

 

Secured financing agreements

$

18,271,046

 

 

$

12,561,283

 

Secured notes and bonds payable ($545,984 and $554,800 at fair value, respectively)

 

10,045,375

 

 

 

10,679,186

 

Residential mortgage loan repurchase liability

 

1,845,889

 

 

 

1,782,998

 

Unsecured notes, net of issuance costs

 

1,205,411

 

 

 

719,004

 

Payable for investments purchased

 

1,271,542

 

 

 

—

 

Dividends payable

 

135,695

 

 

 

135,897

 

Accrued expenses and other liabilities ($251,709 and $333,688 at fair value, respectively)

 

2,102,598

 

 

 

2,332,379

 

 

 

34,877,556

 

 

 

28,210,747

 

Commitments and Contingencies

 

 

 

 

 

 

 

Equity

 

 

 

Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively

 

1,257,254

 

 

 

1,257,254

 

Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 and 483,226,239 issued and outstanding, respectively

 

4,836

 

 

 

4,833

 

Additional paid-in capital

 

6,075,080

 

 

 

6,074,322

 

Retained earnings (accumulated deficit)

 

(232,119

)

 

 

(373,141

)

Accumulated other comprehensive income

 

44,501

 

 

 

43,674

 

Total Rithm Capital stockholders’ equity

 

7,149,552

 

 

 

7,006,942

 

Noncontrolling interests in equity of consolidated subsidiaries

 

93,820

 

 

 

94,096

 

Total equity

 

7,243,372

 

 

 

7,101,038

 

 

$

42,120,928

 

 

$

35,311,785

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP NET INCOME

The Company has four primary variables that impact its performance: (i) Net interest margin on assets held within the investment portfolio; (ii) realized and unrealized gains or losses on assets held within the investment portfolio and operating companies, including any impairment or reserve for expected credit losses; (iii) income from the Company’s operating company investments; and (iv) the Company’s operating expenses and taxes.

“Earnings available for distribution” is a non-GAAP financial measure of the Company’s operating performance, which is used by management to evaluate the Company’s performance excluding: (i) net realized and unrealized gains and losses on certain assets and liabilities; (ii) other net income and losses; (iii) non-capitalized transaction-related expenses; and (iv) deferred taxes.

The Company’s definition of earnings available for distribution excludes certain realized and unrealized losses, which although they represent a part of the Company’s recurring operations, are subject to significant variability and are generally limited to a potential indicator of future economic performance. Within other net income and losses, management primarily excludes (i) equity-based compensation expenses, (ii) non-cash deferred interest expense and (iii) amortization expense related to intangible assets as management does not consider this non-cash activity to be a component of earnings available for distribution. With regard to non-capitalized transaction-related expenses, management does not view these costs as part of the Company’s core operations, as they are considered by management to be similar to realized losses incurred at acquisition. Management also excludes amortization of acquisition premium on Mortgage loans receivable. Non-capitalized transaction-related expenses generally relate to legal and valuation service costs, as well as other professional service fees, incurred when the Company acquires certain investments, as well as costs associated with the acquisition and integration of acquired businesses. Management also excludes deferred taxes because the Company believes deferred taxes are not representative of current operations.

Management believes that the adjustments to compute “earnings available for distribution” specified above allow investors and analysts to readily identify and track the operating performance of the assets that form the core of the Company’s activity, assist in comparing the core operating results between periods, and enable investors to evaluate the Company’s current core performance using the same financial measure that management uses to operate the business. Management also utilizes earnings available for distribution as a financial measure in its decision-making process relating to improvements to the underlying fundamental operations of the Company’s investments, as well as the allocation of resources between those investments, and management also relies on earnings available for distribution as an indicator of the results of such decisions. Earnings available for distribution excludes certain recurring items, such as gains and losses (including impairment and reserves as well as derivative activities) and non-capitalized transaction-related expenses, because they are not considered by management to be part of the Company’s core operations for the reasons described herein. As such earnings available for distribution is not intended to reflect all of the Company’s activity and should be considered as only one of the factors used by management in assessing the Company’s performance, along with GAAP net income which is inclusive of all of the Company’s activities.

The Company views earnings available for distribution as a consistent financial measure of its portfolio’s ability to generate income for distribution to common stockholders. Earnings available for distribution does not represent and should not be considered as a substitute for, or superior to, net income or as a substitute for, or superior to, cash flows from operating activities, each as determined in accordance with GAAP, and the Company’s calculation of this financial measure may not be comparable to similarly entitled financial measures reported by other companies. Furthermore, to maintain qualification as a REIT, U.S. federal income tax law generally requires that the Company distribute at least 90% of its REIT taxable income annually, determined without regard to the deduction for dividends paid and excluding net capital gains. Because the Company views earnings available for distribution as a consistent financial measure of its ability to generate income for distribution to common stockholders, earnings available for distribution is one metric, but not the exclusive metric, that the Company’s board of directors uses to determine the amount, if any, and the payment date of dividends on common stock. However, earnings available for distribution should not be considered as an indication of the Company’s taxable income, a guaranty of its ability to pay dividends or as a proxy for the amount of dividends it may pay, as earnings available for distribution excludes certain items that impact its cash needs.

The table below provides a reconciliation of earnings available for distribution to the most directly comparable GAAP financial measure (dollars in thousands, except share and per share data):

 

Three Months Ended

 

March 31,

2024

 

December 31,

2023

Net income (loss) attributable to common stockholders

$

261,640

 

 

$

(87,526

)

Adjustments:

 

 

 

Realized and unrealized (gains) losses, net

 

(131,638

)

 

 

285,807

 

Other (income) loss, net

 

9,134

 

 

 

(2,470

)

Non-capitalized transaction-related expenses

 

3,472

 

 

 

22,229

 

Deferred taxes

 

90,628

 

 

 

29,364

 

Earnings available for distribution

$

233,236

 

 

$

247,404

 

 

 

 

 

Net income (loss) per diluted share

$

0.54

 

 

$

(0.18

)

Earnings available for distribution per diluted share

$

0.48

 

 

$

0.51

 

 

 

 

 

Weighted average number of shares of common stock outstanding, diluted

 

485,931,501

 

 

 

483,214,458

 

SEGMENT INFORMATION

($ in thousands)

First Quarter 2024

 

Origination and Servicing

 

Investment Portfolio

 

Mortgage Loans Receivable

 

Asset Management

 

Corporate

 

Total

Servicing fee revenue, net and interest income from MSRs and MSR financing receivables

 

$

397,478

 

 

$

72,725

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

470,203

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839))

 

 

93,361

 

 

 

(9,186

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

84,175

 

Servicing revenue, net

 

 

490,839

 

 

 

63,539

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

554,378

 

Interest income

 

 

140,021

 

 

 

234,491

 

 

 

73,665

 

 

 

—

 

 

 

2

 

 

 

448,179

 

Gain on originated residential mortgage loans, held-for-sale, net

 

 

145,869

 

 

 

3,676

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

149,545

 

Other investment portfolio revenues

 

 

—

 

 

 

58,348

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

58,348

 

Asset management revenues(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

75,860

 

 

 

—

 

 

 

75,860

 

Total revenues

 

 

776,729

 

 

 

360,054

 

 

 

73,665

 

 

 

75,860

 

 

 

2

 

 

 

1,286,310

 

Interest expense

 

 

131,174

 

 

 

228,073

 

 

 

36,953

 

 

 

7,621

 

 

 

10,544

 

 

 

414,365

 

Compensation and benefits

 

 

153,806

 

 

 

4,743

 

 

 

11,303

 

 

 

63,112

 

 

 

2,814

 

 

 

235,778

 

G&A and other

 

 

83,564

 

 

 

64,921

 

 

 

4,754

 

 

 

31,935

 

 

 

9,944

 

 

 

195,118

 

Total operating expenses

 

 

368,544

 

 

 

297,737

 

 

 

53,010

 

 

 

102,668

 

 

 

23,302

 

 

 

845,261

 

Realized and unrealized gains (losses), net

 

 

—

 

 

 

(81,452

)

 

 

20,160

 

 

 

(6,842

)

 

 

—

 

 

 

(68,134

)

Other income (loss), net

 

 

(36

)

 

 

3,740

 

 

 

274

 

 

 

3,969

 

 

 

37

 

 

 

7,984

 

Total other income (loss)

 

 

(36

)

 

 

(77,712

)

 

 

20,434

 

 

 

(2,873

)

 

 

37

 

 

 

(60,150

)

Income (loss) before income taxes

 

 

408,149

 

 

 

(15,395

)

 

 

41,089

 

 

 

(29,681

)

 

 

(23,263

)

 

 

380,899

 

Income tax expense (benefit)

 

 

96,201

 

 

 

1,248

 

 

 

(333

)

 

 

(3,704

)

 

 

—

 

 

 

93,412

 

Net income (loss)

 

 

311,948

 

 

 

(16,643

)

 

 

41,422

 

 

 

(25,977

)

 

 

(23,263

)

 

 

287,487

 

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

 

55

 

 

 

2,037

 

 

 

—

 

 

 

1,360

 

 

 

—

 

 

 

3,452

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,395

 

 

 

22,395

 

Net income (loss) attributable to common stockholders

 

$

311,893

 

 

$

(18,680

)

 

$

41,422

 

 

$

(27,337

)

 

$

(45,658

)

 

$

261,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

15,001,011

 

 

$

22,857,895

 

 

$

2,689,844

 

 

$

1,528,831

 

 

$

43,347

 

 

$

42,120,928

 

Total Rithm Capital Stockholders' Equity

 

$

4,076,767

 

 

$

2,949,982

 

 

$

688,211

 

 

$

606,908

 

 

$

(1,172,316

)

 

$

7,149,552

 

(1) Includes $4.9 million of asset management related interest income.

Fourth Quarter 2023

 

Origination and Servicing

 

Investment Portfolio

 

Mortgage Loans Receivable

 

Asset Management

 

Corporate

 

Total

Servicing fee revenue, net and interest income from MSRs and MSR financing receivables

 

$

406,654

 

 

$

75,556

 

 

$

—

 

 

$

—

 

$

—

 

 

$

482,210

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(134,884))

 

 

(414,192

)

 

 

(52,154

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(466,346

)

Servicing revenue, net

 

 

(7,538

)

 

 

23,402

 

 

 

—

 

 

 

—

 

 

—

 

 

 

15,864

 

Interest income

 

 

138,332

 

 

 

246,873

 

 

 

65,324

 

 

 

—

 

 

—

 

 

 

450,529

 

Gain on originated residential mortgage loans, held-for-sale, net

 

 

98,015

 

 

 

99

 

 

 

—

 

 

 

—

 

 

—

 

 

 

98,114

 

Other investment portfolio revenues

 

 

—

 

 

 

58,495

 

 

 

—

 

 

 

—

 

 

—

 

 

 

58,495

 

Asset management revenues(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

83,938

 

 

—

 

 

 

83,938

 

Total revenues

 

 

228,809

 

 

 

328,869

 

 

 

65,324

 

 

 

83,938

 

 

—

 

 

 

706,940

 

Interest expense

 

 

124,922

 

 

 

229,607

 

 

 

34,111

 

 

 

2,727

 

 

9,107

 

 

 

400,474

 

Compensation and benefits

 

 

152,605

 

 

 

8,087

 

 

 

10,417

 

 

 

42,839

 

 

8,509

 

 

 

222,457

 

G&A and other

 

 

71,464

 

 

 

65,160

 

 

 

5,391

 

 

 

21,031

 

 

28,568

 

 

 

191,614

 

Total operating expenses

 

 

348,991

 

 

 

302,854

 

 

 

49,919

 

 

 

66,597

 

 

46,184

 

 

 

814,545

 

Realized and unrealized gains (losses), net

 

 

—

 

 

 

87,240

 

 

 

(24,693

)

 

 

8,060

 

 

—

 

 

 

70,607

 

Other income (loss), net

 

 

(718

)

 

 

(1,253

)

 

 

(51

)

 

 

3,088

 

 

(1,369

)

 

 

(303

)

Total other income (loss)

 

 

(718

)

 

 

85,987

 

 

 

(24,744

)

 

 

11,148

 

 

(1,369

)

 

 

70,304

 

Income (loss) before income taxes

 

 

(120,900

)

 

 

112,002

 

 

 

(9,339

)

 

 

28,489

 

 

(47,553

)

 

 

(37,301

)

Income tax expense (benefit)

 

 

5,733

 

 

 

(2,073

)

 

 

(931

)

 

 

27,121

 

 

—

 

 

 

29,850

 

Net income (loss)

 

 

(126,633

)

 

 

114,075

 

 

 

(8,408

)

 

 

1,368

 

 

(47,553

)

 

 

(67,151

)

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

 

(32

)

 

 

(2,353

)

 

 

—

 

 

 

365

 

 

—

 

 

 

(2,020

)

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

22,395

 

 

 

22,395

 

Net income (loss) attributable to common stockholders

 

$

(126,601

)

 

$

116,428

 

 

$

(8,408

)

 

$

1,003

 

$

(69,948

)

 

$

(87,526

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

13,671,626

 

 

$

17,418,708

 

 

$

2,498,132

 

 

$

1,694,954

 

$

28,365

 

 

$

35,311,785

 

Total Rithm Capital Stockholders' Equity

 

$

3,518,107

 

 

$

2,969,710

 

 

$

618,147

 

 

$

632,552

 

$

(731,574

)

 

$

7,006,942

 

(1) Includes $3.8 million of asset management related interest income.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information in this press release constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Cautionary Statement Regarding Forward Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual and quarterly reports and other filings filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website (www.rithmcap.com). New risks and uncertainties emerge from time to time, and it is not possible for Rithm Capital 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. Forward-looking statements contained herein speak only as of the date of this press release, and Rithm Capital expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Rithm Capital's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

ABOUT RITHM CAPITAL

Rithm Capital is a global asset manager focused on real estate, credit and financial services. Rithm makes direct investments and operates several wholly-owned operating businesses. Rithm’s businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC and Genesis Capital LLC, leading mortgage origination and servicing platforms. Rithm Capital seeks to generate attractive risk-adjusted returns across market cycles and interest rate environments. Since inception in 2013, Rithm has delivered approximately $5.3 billion in dividends to shareholders. Rithm is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240430598153/en/

Investor Relations 212-850-7770 IR@RithmCap.com