RITM Rithm Capital Corp

Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the fourth quarter ended and full year ended December 31, 2024:

Fourth Quarter 2024 Financial Highlights:

• GAAP net income of $263.2 million, or $0.50 per diluted common share(1)
• Earnings available for distribution of $315.8 million, or $0.60 per diluted common share(1)(2)
• Common dividend of $130.2 million, or $0.25 per common share
• Book value per common share of $12.56(1)

Full Year 2024 Financial Highlights:

• GAAP net income of $835.0 million, or $1.67 per diluted common share(1)
• Earnings available for distribution of $1.1 billion, or $2.10 per diluted common share(1)(2)
• Common dividend of $503.4 million, or $1.00 per common share

 

Q4 2024

 

Q3 2024

 

FY 2024

 

FY 2023

 

Summary Operating Results:

 

 

 

 

 

 

 

 

GAAP Net Income per Diluted Common Share(1)

$

0.50

 

$

0.20

 

$

1.67

 

$

1.10

 

GAAP Net Income

$

263.2

million

$

97.0

million

$

835.0

million

$

532.7

million

 

 

 

 

 

 

 

 

 

Non-GAAP Results:

 

 

 

 

 

 

 

 

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

$

0.60

 

$

0.54

 

$

2.10

 

$

2.06

 

Earnings Available for Distribution(2)

$

315.8

million

$

270.3

million

$

1,050.5

million

$

997.2

million

 

 

 

 

 

 

 

 

 

Common Dividend:

 

 

 

 

 

 

 

 

Common Dividend per Share

$

0.25

 

$

0.25

 

$

1.00

 

$

1.00

 

Common Dividend

$

130.2

million

$

129.9

million

$

503.4

million

$

483.2

million

“We had another great year at Rithm, finishing strong with robust earnings, positive inflows and growth in each of our business segments,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. “Rithm delivered strong and consistent performance in each of its core businesses, creating value for investors and shareholders. We also completed our first full year with Sculptor and will continue to grow our world-class asset management business in 2025 through strategic partnerships.”

Fourth Quarter 2024 Company Highlights:

• Rithm Capital
  • Completed a $461 million secured financing backed by mortgage servicing rights (“MSRs”), a first-of-its-kind non-recourse term financing of MSRs
• Newrez
  • Origination & Servicing segment pre-tax income of $280.2 million in Q4’24, excluding the MSR mark-to-market and related hedge impact of $204.5 million, up from $250.7 million in Q3’24, excluding the MSR mark-to-market gain and related hedge impact of $(235.5) million
  • Generated a 20% pre-tax return on equity (“ROE”) on $5.6 billion of equity(3)(4)
  • Total servicing unpaid principal balance (“UPB”) of $844 billion, an increase of 32% YoY, including $254 billion UPB of third-party servicing, an increase of 129% YoY
  • Origination funded production volume of $17.3 billion, an increase of 9% QoQ and 94% YoY
• Genesis
  • Residential Transitional Lending segment pre-tax income of $3.5 million
  • Origination volume of $1.2 billion, an increase of 101% YoY
  • Grew number of sponsors to 140, reflecting 14% growth YoY
• Sculptor
  • Approximately $34 billion of assets under management (“AUM”) at December 31, 2024(5)
  • Closed an additional $1.0 billion in Q4’24 for Real Estate Fund V, bringing total commitments to $2.3 billion through 2024, focused on opportunistic real estate investments
  • Accelerated momentum in Non-Traded REIT (SDREIT) strategy bringing pro forma AUM to $500 million(6)

(1)

Per common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 526,279,952 and 496,800,687 weighted average diluted shares for the quarters ended December 31, 2024 and September 30, 2024, respectively. Per common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 499,597,670 and 483,716,715 weighted average diluted shares for the years ended December 31, 2024 and 2023, respectively. Per share calculations of Book Value are based on 520,656,256 common shares outstanding as of December 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)

Excludes full MSR mark-to-market and related hedge adjustment of $204.5 million.

 

 

(4)

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 respective period.

 

(5)

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 open-ended funds or gross asset value of Real Estate funds, (ii) uncalled capital commitments, (iii) par value of collateralized loan obligations. AUM includes amounts that are not subject to management fees, incentive income or other amounts earned on AUM. AUM also includes amounts that are invested in other Sculptor funds/vehicles. 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. Sculptor AUM calculation methodology changed effective September 1, 2024.

 

 

(6)

Pro forma AUM represents AUM once all committed amounts are funded.

Renewal of Stock Repurchase Program:

The Company announced today that its Board of Directors authorized stock repurchase programs of up to $200 million of shares of the Company's common stock (the "common stock repurchase program”), and up to $100 million of shares of the Company’s preferred stock (the “preferred stock repurchase program” and, together with the common stock repurchase program, the “repurchase programs”), through December 31, 2025. The new repurchase programs replace the Company’s previous $200 million common stock repurchase program and $100 million preferred stock repurchase program, which expired on December 31, 2024.

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. 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 Thursday, February 6, 2025 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.

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 Fourth Quarter and Full Year 2024 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10196455/fe67242f28.

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 Thursday, February 13, 2025 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 “9354317.”

 

Rithm Capital Corp. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

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

 

 

Three Months Ended

 

Year Ended December 31,

 

December 31, 2024

 

September 30, 2024

 

2024

 

2023

Revenues

 

 

 

 

 

 

 

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

$

531,279

 

 

$

493,171

 

 

$

1,993,319

 

 

$

1,859,357

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(180,480), $(139,784), $(602,241) and $(518,978), respectively)

 

563,484

 

 

 

(747,335

)

 

 

(167,574

)

 

 

(565,684

)

Servicing revenue, net

 

1,094,763

 

 

 

(254,164

)

 

 

1,825,745

 

 

 

1,293,673

 

Interest income

 

490,263

 

 

 

550,732

 

 

 

1,954,443

 

 

 

1,616,189

 

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

 

201,641

 

 

 

184,695

 

 

 

682,535

 

 

 

533,477

 

Other revenues

 

55,412

 

 

 

57,212

 

 

 

227,472

 

 

 

236,167

 

Asset management revenues

 

258,871

 

 

 

81,039

 

 

 

520,294

 

 

 

82,681

 

 

 

2,100,950

 

 

 

619,514

 

 

 

5,210,489

 

 

 

3,762,187

 

Expenses

 

 

 

 

 

 

 

Interest expense and warehouse line fees

 

449,386

 

 

 

510,168

 

 

 

1,835,325

 

 

 

1,401,327

 

General and administrative

 

232,381

 

 

 

215,329

 

 

 

867,236

 

 

 

761,102

 

Compensation and benefits

 

362,869

 

 

 

265,673

 

 

 

1,134,768

 

 

 

787,092

 

 

 

1,044,636

 

 

 

991,170

 

 

 

3,837,329

 

 

 

2,949,521

 

Other Income (Loss)

 

 

 

 

 

 

 

Realized and unrealized gains (losses), net

 

(574,944

)

 

 

412,953

 

 

 

(221,606

)

 

 

(19,456

)

Other income (loss), net

 

11,227

 

 

 

3,851

 

 

 

57,255

 

 

 

(40,377

)

 

 

(563,717

)

 

 

416,804

 

 

 

(164,351

)

 

 

(59,833

)

Income before Income Taxes

 

492,597

 

 

 

45,148

 

 

 

1,208,809

 

 

 

752,833

 

Income tax expense (benefit)

 

200,690

 

 

 

(78,433

)

 

 

267,317

 

 

 

122,159

 

Net Income

 

291,907

 

 

 

123,581

 

 

 

941,492

 

 

 

630,674

 

Noncontrolling interests in income of consolidated subsidiaries

 

1,737

 

 

 

1,839

 

 

 

9,989

 

 

 

8,417

 

Dividends on preferred stock

 

26,948

 

 

 

24,718

 

 

 

96,456

 

 

 

89,579

 

Net Income Attributable to Common Stockholders

$

263,222

 

 

$

97,024

 

 

$

835,047

 

 

$

532,678

 

 

 

 

 

 

 

 

 

Net Income per Share of Common Stock

 

 

 

 

 

 

 

Basic

$

0.51

 

 

$

0.20

 

 

$

1.69

 

 

$

1.11

 

Diluted

$

0.50

 

 

$

0.20

 

 

$

1.67

 

 

$

1.10

 

Weighted Average Number of Shares of Common Stock Outstanding

 

 

 

 

 

 

 

Basic

 

520,271,165

 

 

 

491,362,857

 

 

 

495,479,956

 

 

 

481,934,951

 

Diluted

 

526,279,952

 

 

 

496,800,687

 

 

 

499,597,670

 

 

 

483,716,715

 

 

 

 

 

 

 

 

 

Dividends Declared per Share of Common Stock

$

0.25

 

 

$

0.25

 

 

$

1.00

 

 

$

1.00

 

Rithm Capital Corp. and Subsidiaries

Consolidated Balance Sheets

($ in thousands, except share data)

 

 

December 31,

 

2024

(Unaudited)

 

2023

Assets

 

 

 

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

$

10,321,671

 

 

$

8,405,938

 

Government and government-backed securities ($9,711,346 and $8,533,130 at fair value, respectively)

 

9,736,116

 

 

 

8,557,683

 

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

 

361,890

 

 

 

379,044

 

Residential mortgage loans, held-for-sale ($4,307,571 and $2,461,865 at fair value, respectively)

 

4,374,241

 

 

 

2,540,742

 

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

 

665,565

 

 

 

1,274,005

 

Single-family rental properties

 

1,028,295

 

 

 

1,001,928

 

Residential transition loans, at fair value

 

2,178,075

 

 

 

1,879,319

 

Residential mortgage loans subject to repurchase

 

2,745,756

 

 

 

1,782,998

 

Cash and cash equivalents

 

1,458,743

 

 

 

1,287,199

 

Restricted cash

 

308,443

 

 

 

378,048

 

Servicer advances receivable

 

3,198,921

 

 

 

2,760,250

 

Reverse repurchase agreement

 

—

 

 

 

1,769,601

 

Other assets ($2,380,475 and $2,005,782 at fair value, respectively)

 

4,631,911

 

 

 

3,948,852

 

Assets of consolidated CFEs(A):

 

 

 

Investments, at fair value and other assets

 

4,167,814

 

 

 

3,751,477

 

Total Assets

$

45,177,441

 

 

$

39,717,084

 

 

 

 

 

Liabilities and Equity

 

 

 

Liabilities

 

 

 

Secured financing agreements

$

16,782,467

 

 

$

12,561,283

 

Secured notes and bonds payable ($185,460 and $235,770 at fair value, respectively)

 

10,298,075

 

 

 

10,360,188

 

Residential mortgage loan repurchase liability

 

2,745,756

 

 

 

1,782,998

 

Unsecured notes, net of issuance costs

 

1,204,220

 

 

 

719,004

 

Treasury securities payable

 

—

 

 

 

1,827,281

 

Dividends payable

 

153,114

 

 

 

135,897

 

Accrued expenses and other liabilities ($525,486 and $51,765 at fair value, respectively)

 

2,630,771

 

 

 

2,065,761

 

Liabilities of consolidated CFEs(A):

 

 

 

Notes payable, at fair value and other liabilities

 

3,476,728

 

 

 

3,163,634

 

Total Liabilities

 

37,291,131

 

 

 

32,616,046

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

Equity

 

 

 

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

 

1,257,254

 

 

 

1,257,254

 

Common stock, $0.01 par value, 2,000,000,000 shares authorized, 520,656,256 and 483,226,239 issued and outstanding, respectively

 

5,206

 

 

 

4,833

 

Additional paid-in capital

 

6,528,613

 

 

 

6,074,322

 

Accumulated deficit

 

(46,985

)

 

 

(373,141

)

Accumulated other comprehensive income

 

50,886

 

 

 

43,674

 

Total Rithm Capital stockholders’ equity

 

7,794,974

 

 

 

7,006,942

 

Noncontrolling interests in equity of consolidated subsidiaries

 

91,336

 

 

 

94,096

 

Total Equity

 

7,886,310

 

 

 

7,101,038

 

Total Liabilities and Equity

$

45,177,441

 

 

$

39,717,084

(A)

Includes assets and liabilities of certain consolidated VIEs that meet the definition of collateralized financing entities (“CFEs”). These assets can only be used to settle obligations and liabilities of such VIEs for which creditors do not have recourse to Rithm Capital Corp.

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) net other 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 net other 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 residential transition loans. Management also excludes bargain purchase gain resulting from business acquisitions as it is not a recurring activity and it is not part of the Company’s core operations. 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.

Reconciliation of Non-GAAP Measure to the Respective GAAP Measure

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

 

Year Ended December 31,

 

December 31, 2024

 

September 30, 2024

 

2024

 

2023

Net income (loss) attributable to common stockholders - GAAP

$

263,222

 

 

$

97,024

 

 

$

835,047

 

 

$

532,678

Adjustments:

 

 

 

 

 

 

 

Realized and unrealized (gains) losses, net, including MSR change in valuation inputs and assumptions

 

(177,294

)

 

 

199,342

 

 

 

(181,070

)

 

 

294,499

Other (income) loss, net

 

34,707

 

 

 

50,756

 

 

 

142,285

 

 

 

5,974

Computershare Mortgage Acquisition:

 

 

 

 

 

 

 

Bargain purchase gain

 

—

 

 

 

—

 

 

 

(27,415

)

 

 

—

Non-recurring acquisition and restructuring expenses

 

—

 

 

 

—

 

 

 

14,936

 

 

 

—

Non-capitalized transaction-related expenses

 

(2,203

)

 

 

3,242

 

 

 

12,286

 

 

 

47,755

Deferred taxes

 

197,360

 

 

 

(80,037

)

 

 

254,402

 

 

 

116,336

Earnings available for distribution - Non-GAAP

$

315,792

 

 

$

270,327

 

 

$

1,050,471

 

 

$

997,242

 

 

 

 

 

 

 

 

Net income (loss) per diluted share

$

0.50

 

 

$

0.20

 

 

$

1.67

 

 

$

1.10

Earnings available for distribution per diluted share

$

0.60

 

 

$

0.54

 

 

$

2.10

 

 

$

2.06

 

 

 

 

 

 

 

 

Weighted average number of shares of common stock outstanding, diluted

 

526,279,952

 

 

 

496,800,687

 

 

 

499,597,670

 

 

 

483,716,715

 

SEGMENT INFORMATION

($ in thousands)

 

Fourth Quarter Ended December 31, 2024

 

Origination and Servicing

 

Investment Portfolio

 

Residential Transitional Lending

 

Asset Management

 

Corporate Category

 

Total

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

 

$

531,279

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

531,279

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(180,480))

 

 

563,484

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

563,484

 

Servicing revenue, net

 

 

1,094,763

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,094,763

 

Interest income

 

 

341,306

 

 

 

72,051

 

 

 

67,278

 

 

 

9,625

 

 

 

3

 

 

 

490,263

 

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

 

 

198,753

 

 

 

2,888

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

201,641

 

Other revenues

 

 

28,676

 

 

 

26,736

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

55,412

 

Asset management revenues

 

 

—

 

 

 

—

 

 

 

—

 

 

 

258,871

 

 

 

—

 

 

 

258,871

 

Total Revenues

 

 

1,663,498

 

 

 

101,675

 

 

 

67,278

 

 

 

268,496

 

 

 

3

 

 

 

2,100,950

 

Interest expense and warehouse line fees

 

 

322,889

 

 

 

59,552

 

 

 

29,898

 

 

 

12,077

 

 

 

24,970

 

 

 

449,386

 

Other segment expenses

 

 

142,080

 

 

 

22,317

 

 

 

7,921

 

 

 

28,595

 

 

 

6,961

 

 

 

207,874

 

Compensation and benefits

 

 

179,494

 

 

 

2,609

 

 

 

17,384

 

 

 

155,397

 

 

 

7,985

 

 

 

362,869

 

Depreciation and amortization

 

 

10,237

 

 

 

5,069

 

 

 

1,567

 

 

 

7,613

 

 

 

21

 

 

 

24,507

 

Total Operating Expenses

 

 

654,700

 

 

 

89,547

 

 

 

56,770

 

 

 

203,682

 

 

 

39,937

 

 

 

1,044,636

 

Realized and unrealized gains (losses), net

 

 

(529,025

)

 

 

(27,089

)

 

 

(7,257

)

 

 

(11,573

)

 

 

—

 

 

 

(574,944

)

Other income (loss), net

 

 

4,942

 

 

 

5,948

 

 

 

203

 

 

 

122

 

 

 

12

 

 

 

11,227

 

Total Other Income (Loss)

 

 

(524,083

)

 

 

(21,141

)

 

 

(7,054

)

 

 

(11,451

)

 

 

12

 

 

 

(563,717

)

Income (Loss) before Income Taxes

 

 

484,715

 

 

 

(9,013

)

 

 

3,454

 

 

 

53,363

 

 

 

(39,922

)

 

 

492,597

 

Income tax expense (benefit)

 

 

168,689

 

 

 

7,708

 

 

 

851

 

 

 

23,442

 

 

 

—

 

 

 

200,690

 

Net Income (Loss)

 

 

316,026

 

 

 

(16,721

)

 

 

2,603

 

 

 

29,921

 

 

 

(39,922

)

 

 

291,907

 

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

 

636

 

 

 

1,109

 

 

 

—

 

 

 

(8

)

 

 

—

 

 

 

1,737

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,948

 

 

 

26,948

 

Net Income (Loss) Attributable to Common Stockholders

 

$

315,390

 

 

$

(17,830

)

 

$

2,603

 

 

$

29,929

 

 

$

(66,870

)

 

$

263,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

32,418,256

 

 

$

7,489,952

 

 

$

3,439,075

 

 

$

1,610,400

 

 

$

219,758

 

 

$

45,177,441

 

Total Rithm Capital Stockholders' Equity

 

$

5,715,057

 

 

$

1,523,436

 

 

$

801,646

 

 

$

804,727

 

 

$

(1,049,892

)

 

$

7,794,974

 

Third Quarter Ended September 30, 2024

 

Origination and Servicing

 

Investment Portfolio

 

Residential Transitional Lending

 

Asset Management

 

Corporate Category

 

Total

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

 

$

493,171

 

 

$

—

 

 

$

—

 

$

—

 

 

$

—

 

 

$

493,171

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,784))

 

 

(747,335

)

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

(747,335

)

Servicing revenue, net

 

 

(254,164

)

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

(254,164

)

Interest income

 

 

391,220

 

 

 

87,969

 

 

 

66,262

 

 

5,281

 

 

 

—

 

 

 

550,732

 

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

 

 

171,700

 

 

 

12,995

 

 

 

—

 

 

—

 

 

 

—

 

 

 

184,695

 

Other revenues

 

 

30,280

 

 

 

26,932

 

 

 

—

 

 

—

 

 

 

—

 

 

 

57,212

 

Asset management revenues

 

 

—

 

 

 

—

 

 

 

—

 

 

81,039

 

 

 

—

 

 

 

81,039

 

Total Revenues

 

 

339,036

 

 

 

127,896

 

 

 

66,262

 

 

86,320

 

 

 

—

 

 

 

619,514

 

Interest expense and warehouse line fees

 

 

370,641

 

 

 

79,885

 

 

 

34,304

 

 

8,243

 

 

 

17,095

 

 

 

510,168

 

Other segment expenses

 

 

126,058

 

 

 

19,297

 

 

 

3,731

 

 

19,794

 

 

 

11,634

 

 

 

180,514

 

Compensation and benefits

 

 

181,343

 

 

 

288

 

 

 

9,520

 

 

58,267

 

 

 

16,255

 

 

 

265,673

 

Depreciation and amortization

 

 

15,093

 

 

 

10,632

 

 

 

1,567

 

 

7,523

 

 

 

—

 

 

 

34,815

 

Total Operating Expenses

 

 

693,135

 

 

 

110,102

 

 

 

49,122

 

 

93,827

 

 

 

44,984

 

 

 

991,170

 

Realized and unrealized gains (losses), net

 

 

379,946

 

 

 

9,907

 

 

 

17,972

 

 

5,128

 

 

 

—

 

 

 

412,953

 

Other income (loss), net

 

 

(10,626

)

 

 

6,107

 

 

 

36

 

 

8,334

 

 

 

—

 

 

 

3,851

 

Total Other Income (Loss)

 

 

369,320

 

 

 

16,014

 

 

 

18,008

 

 

13,462

 

 

 

—

 

 

 

416,804

 

Income (Loss) before Income Taxes

 

 

15,221

 

 

 

33,808

 

 

 

35,148

 

 

5,955

 

 

 

(44,984

)

 

 

45,148

 

Income tax expense (benefit)

 

 

(84,764

)

 

 

(4,916

)

 

 

2,754

 

 

8,493

 

 

 

—

 

 

 

(78,433

)

Net Income (Loss)

 

 

99,985

 

 

 

38,724

 

 

 

32,394

 

 

(2,538

)

 

 

(44,984

)

 

 

123,581

 

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

 

847

 

 

 

(1,123

)

 

 

—

 

 

2,115

 

 

 

—

 

 

 

1,839

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

24,718

 

 

 

24,718

 

Net Income (Loss) Attributable to Common Stockholders

 

$

99,138

 

 

$

39,847

 

 

$

32,394

 

$

(4,653

)

 

$

(69,702

)

 

$

97,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

29,733,684

 

 

$

7,787,438

 

 

$

3,083,322

 

$

1,378,846

 

 

$

292,672

 

 

$

42,275,962

 

Total Rithm Capital Stockholders' Equity

 

$

5,459,975

 

 

$

1,725,745

 

 

$

743,427

 

$

717,212

 

 

$

(989,817

)

 

$

7,656,542

 

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 $5.6 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/20250206415439/en/

Investor Relations 212-850-7770 ir@rithmcap.com