RITM Rithm Capital Corp

Rithm Capital Corp. (NYSE: RITM; “Rithm Capital” or the “Company”) today reported the following information for the second quarter ended June 30, 2023:

Second Quarter 2023 Financial Highlights:

• GAAP net income of $357.4 million, or $0.74 per diluted common share(1)
• Earnings available for distribution of $297.9 million, or $0.62 per diluted common share(1)(2)
• Common dividend of $120.8 million, or $0.25 per common share
• Book value per common share of $12.16(1)

 

Q2 2023

 

Q1 2023

 

Summary Operating Results:

 

 

 

 

GAAP Net Income per Diluted Common Share(1)

$

0.74

 

$

0.14

 

GAAP Net Income

$

357.4

million

$

68.9

million

 

 

 

 

 

Non-GAAP Results:

 

 

 

 

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

$

0.62

 

$

0.35

 

Earnings Available for Distribution(2)

$

297.9

million

$

171.1

million

 

 

 

 

 

Common Dividend:

 

 

 

 

Common Dividend per Share

$

0.25

 

$

0.25

 

Common Dividend

$

120.8

million

$

120.8

million

“Rithm had one of its best quarters ever,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. “We had near record earnings, grew book value, acquired $1.4 billion of consumer loans and grew our SFR business with the acquisition of 371 units. Subsequent to quarter end, we announced the acquisition of Sculptor Capital Management. This acquisition helps accelerate our growth in the alternative asset management space, as Sculptor’s $34 billion of AUM complements Rithm’s $7bn of permanent equity capital and $30+ billion balance sheet. With the introduction of new capital rules being instituted on banks and the highest level of rates seen in 20+ years, the investing environment has not been this good in years.”

Second Quarter 2023 Company Highlights:

• Origination & Servicing (Mortgage Company)
  • Combined segment pre-tax income of $326.9 million(3)
  • Quarterly origination funded production volume of $9.9 billion
  • Estimated Q3’23 funded origination volume of approximately $8 to $10 billion
• Total Rithm MSR Portfolio Summary
  • MSR portfolio totaled $598 billion in unpaid principal balance (“UPB”) at June 30, 2023 compared to $603 billion UPB at March 31, 2023(4)
    • Portfolio average CPR of approximately 6%
  • Servicer advance balances of $2.9 billion as of June 30, 2023, relatively flat compared to balances as of March 31, 2023
• Mortgage Loans Receivable
  • Quarterly origination funded production volume of $905 million through Genesis Capital LLC
• Consumer
  • In June 2023, invested $145 million to purchase interest in a $1.4 billion UPB prime unsecured consumer loan portfolio
    • The pool represents a portion of the broader Marcus portfolio that was previously owned and held on balance sheet by Goldman Sachs
    • The pool is comprised of 100% fixed-rate closed-end installment loans, in which ~95% of the pool was originated between 2021 Q4 and 2022 Q4 from the post-COVID demand boost
    • Acquiring these consumer loans allows for an opportunity to add discounted, short duration and high yielding prime credit consumer assets
• Third Quarter 2023 Commentary(5)
  • Rithm Capital is acquiring Sculptor Capital Management, Inc. (NYSE: SCU) and its operating subsidiaries (together, “Sculptor”)
    • Alternative asset manager with ~$34bn under management as of July 1, 2023
    • Strategies include opportunistic credit, institutional credit, real estate and multi-strategy
    • Transaction valued at $639 million(6), including $11.15 per Class A Share of Sculptor
    • Closing of acquisition targeted for Q4 2023, subject to customary closing conditions and approvals

(1)

 

Per common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 483,376,961 and 482,846,911 weighted average diluted shares for the quarters ended June 30, 2023 and March 31, 2023, respectively. Per share calculations of Book Value are based on 483,320,606 common shares outstanding as of June 30, 2023.

(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 Non-GAAP Financial Measures and Reconciliation to GAAP Net Income below.

(3)

 

Includes noncontrolling interests.

(4)

 

Includes excess and full MSRs.

(5)

 

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

(6)

 

Total transaction value includes upfront equity purchase price, assumption of certain unvested securities and repayment of Sculptor term loan and warrants.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investors 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 Wednesday, August 2, 2023 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investors 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 Second Quarter 2023 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10181285/fa0718414a.

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 Wednesday, August 9, 2023 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 “6092343.”

Consolidated Statements of Operations (Unaudited)

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

 

Three Months Ended

 

June 30,

2023

 

March 31,

2023

Revenues

 

 

 

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

$

465,562

 

$

469,839

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410), and $(105,691), respectively)

 

22,032

 

 

(142,304

)

Servicing revenue, net

 

487,594

 

 

327,535

 

Interest income

 

398,786

 

 

346,614

 

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

 

151,822

 

 

109,268

 

 

 

1,038,202

 

 

783,417

 

Expenses

 

 

 

Interest expense and warehouse line fees

 

329,158

 

 

309,068

 

General and administrative

 

181,508

 

 

167,155

 

Compensation and benefits

 

189,606

 

 

188,880

 

 

 

700,272

 

 

665,103

 

Other income (loss)

 

 

 

Realized and unrealized gains (losses) on investments, net

 

89,425

 

 

(75,649

)

Other income (loss), net

 

15,860

 

 

30,478

 

 

 

105,285

 

 

(45,171

)

Income before income taxes

 

443,215

 

 

73,143

 

Income tax expense (benefit)

 

56,530

 

 

(16,806

)

Net income

$

386,685

 

$

89,949

 

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

6,889

 

 

(1,300

)

Dividends on preferred stock

 

22,395

 

 

22,395

 

Net income attributable to common stockholders

$

357,401

 

$

68,854

 

 

 

 

 

Net income per share of common stock

 

 

 

Basic

$

0.74

 

$

0.14

 

Diluted

$

0.74

 

$

0.14

 

Weighted average number of shares of common stock outstanding

 

 

 

Basic

 

483,091,792

 

 

478,167,178

 

Diluted

 

483,376,961

 

 

482,846,911

 

 

 

 

 

Dividends declared per share of common stock

$

0.25

 

$

0.25

 

Consolidated Balance Sheets

($ in thousands, except share data)

 

June 30,

2023

(Unaudited)

 

March 31,

2023

(Unaudited)

Assets

 

 

 

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

$

8,688,556

 

 

$

8,886,209

 

Real estate and other securities ($8,722,018 and $8,987,572 at fair value, respectively)

 

9,701,000

 

 

 

8,987,572

 

Residential loans held-for-investment, at fair value

 

400,206

 

 

 

426,259

 

Residential mortgage loans, held-for-sale ($3,008,722 and $2,743,809 at fair value, respectively)

 

3,092,667

 

 

 

2,841,320

 

Consumer loans held-for-investment, at fair value

 

1,602,571

 

 

 

340,525

 

Single-family rental properties

 

965,194

 

 

 

968,987

 

Mortgage loans receivable, at fair value

 

1,939,499

 

 

 

1,946,422

 

Residential mortgage loans subject to repurchase

 

1,296,097

 

 

 

1,189,907

 

Cash and cash equivalents

 

1,369,025

 

 

 

1,434,697

 

Restricted cash

 

319,765

 

 

 

365,649

 

Servicer advances receivable

 

2,447,918

 

 

 

2,594,271

 

Other assets

 

2,035,581

 

 

 

1,836,833

 

 

$

33,858,079

 

 

$

31,818,651

 

Liabilities and Equity

 

 

 

 

 

 

 

Liabilities

 

 

 

Secured financing agreements

$

12,757,428

 

 

$

11,760,930

 

Secured notes and bonds payable ($574,120 and $598,070 at fair value, respectively)

 

10,315,006

 

 

 

9,728,605

 

Residential mortgage loan repurchase liability

 

1,296,097

 

 

 

1,189,907

 

Unsecured senior notes, net of issuance costs

 

545,930

 

 

 

545,490

 

Dividends payable

 

134,188

 

 

 

131,941

 

Accrued expenses and other liabilities

 

1,614,746

 

 

 

1,507,235

 

 

 

26,663,395

 

 

 

24,864,108

 

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, 483,320,606 and 483,017,747 issued and outstanding, respectively

 

4,834

 

 

 

4,832

 

Additional paid-in capital

 

6,068,613

 

 

 

6,062,051

 

Retained earnings (accumulated deficit)

 

(236,222

)

 

 

(470,562

)

Accumulated other comprehensive income

 

39,954

 

 

 

40,631

 

Total Rithm Capital stockholders’ equity

 

7,134,433

 

 

 

6,894,206

 

Noncontrolling interests in equity of consolidated subsidiaries

 

60,251

 

 

 

60,337

 

Total equity

 

7,194,684

 

 

 

6,954,543

 

 

$

33,858,079

 

 

$

31,818,651

 

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP NET INCOME

The Company has five primary variables that impact its operating performance: (i) the current yield earned on the Company’s investments, (ii) the interest expense under the debt incurred to finance the Company’s investments, (iii) the Company’s operating expenses and taxes, (iv) the Company’s realized and unrealized gains or losses on investments, including any impairment or reserve for expected credit losses and (v) income from the Company’s origination and servicing businesses. “Earnings available for distribution” is a non-GAAP financial measure of the Company’s operating performance, excluding the fourth variable above and adjusts the earnings from the consumer loan investment to a level yield basis. Earnings available for distribution is used by management to evaluate the Company’s performance without taking into account: (i) realized and unrealized gains and 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; (ii) termination fee to affiliate; (iii) non-cash deferred compensation expense; (iv) non-capitalized transaction-related expenses; and (v) deferred taxes, which are not representative of current operations.

The Company’s definition of earnings available for distribution includes accretion on held-for-sale loans as if they continued to be held-for-investment. Although the Company intends to sell such loans, there is no guarantee that such loans will be sold or that they will be sold within any expected timeframe. During the period prior to sale, the Company continues to receive cash flows from such loans and believes that it is appropriate to record a yield thereon. In addition, the Company’s definition of earnings available for distribution excludes all deferred taxes, rather than just deferred taxes related to unrealized gains or losses, because the Company believes deferred taxes are not representative of current operations. The Company’s definition of earnings available for distribution also limits accreted interest income on RMBS where the Company receives par upon the exercise of associated call rights based on the estimated value of the underlying collateral, net of related costs including advances. The Company created this limit in order to be able to accrete to the lower of par or the net value of the underlying collateral, in instances where the net value of the underlying collateral is lower than par. The Company believes this amount represents the amount of accretion the Company would have expected to earn on such bonds had the call rights not been exercised.

The Company’s investments in consumer loans are accounted for under the fair value option. Earnings available for distribution adjusts earnings on consumer loans to a level yield to present income recognition across the consumer loan portfolio in the manner in which it is economically earned, to avoid potential delays in loss recognition, and align it with the Company’s overall portfolio of mortgage-related assets which generally record income on a level yield basis.

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. Non-capitalized transaction-related expenses are generally 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.

Through its wholly owned subsidiaries, the Company originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the transfer of loans to the GSEs or mortgage investors, the Company reports realized gains or losses on the sale of originated residential mortgage loans and retention of mortgage servicing rights, which the Company believes is an indicator of performance for the Origination and Servicing segments and therefore included in earnings available for distribution.

Earnings available for distribution includes results from operating companies with the exception of the unrealized gains or losses due to changes in valuation inputs and assumptions on MSRs, net of unrealized gains and losses on hedged MSRs, and non-capitalized transaction-related expenses.

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 investment 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

 

June 30,

2023

 

March 31,

2023

Net income attributable to common stockholders

$

357,401

 

 

$

68,854

 

Adjustments:

 

 

 

Impairment

 

5,813

 

 

 

(2,803

)

Realized and unrealized (gains) losses on investments, net

 

(156,055

)

 

 

114,874

 

Other (income) loss, net

 

23,539

 

 

 

5,350

 

Non-capitalized transaction-related expenses

 

9,163

 

 

 

427

 

Deferred taxes

 

56,431

 

 

 

(16,845

)

Earnings available for distribution of equity method investees:

 

 

 

Excess mortgage servicing rights

 

1,636

 

 

 

1,217

 

Earnings available for distribution

$

297,928

 

 

$

171,074

 

 

 

 

 

Net income per diluted share

$

0.74

 

 

$

0.14

 

Earnings available for distribution per diluted share

$

0.62

 

 

$

0.35

 

 

 

 

 

Weighted average number of shares of common stock outstanding, diluted

 

483,376,961

 

 

 

482,846,911

 

SEGMENT INFORMATION

($ in thousands)

 

 

Origination and Servicing

 

Residential Securities, Properties and Loans

 

 

 

 

 

 

 

 

 

Second Quarter 2023

 

Origination

 

Servicing

 

MSR Related Investments

 

Real Estate Securities

 

Properties & Residential Mortgage Loans

 

 

Consumer Loans

 

Mortgage Loans Receivable

 

Corporate

 

Total

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

 

$

—

 

 

$

359,854

 

 

$

105,708

 

 

$

—

 

 

$

—

 

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

465,562

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410))

 

 

—

 

 

 

45,767

 

 

 

(23,735

)

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,032

Servicing revenue, net

 

 

—

 

 

 

405,621

 

 

 

81,973

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

487,594

Interest income

 

 

26,552

 

 

 

102,687

 

 

 

35,622

 

 

 

122,476

 

 

 

26,291

 

 

 

 

24,401

 

 

 

58,809

 

 

 

1,948

 

 

 

398,786

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

 

 

134,130

 

 

 

10,188

 

 

 

—

 

 

 

1,247

 

 

 

6,257

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

151,822

Total revenues

 

 

160,682

 

 

 

518,496

 

 

 

117,595

 

 

 

123,723

 

 

 

32,548

 

 

 

 

24,401

 

 

 

58,809

 

 

 

1,948

 

 

 

1,038,202

Interest expense

 

 

28,613

 

 

 

81,606

 

 

 

30,368

 

 

 

115,572

 

 

 

30,830

 

 

 

 

4,315

 

 

 

29,282

 

 

 

8,572

 

 

 

329,158

G&A and other

 

 

143,064

 

 

 

94,074

 

 

 

75,295

 

 

 

1,560

 

 

 

19,242

 

 

 

 

2,734

 

 

 

14,795

 

 

 

20,350

 

 

 

371,114

Total operating expenses

 

 

171,677

 

 

 

175,680

 

 

 

105,663

 

 

 

117,132

 

 

 

50,072

 

 

 

 

7,049

 

 

 

44,077

 

 

 

28,922

 

 

 

700,272

Realized and unrealized gains (losses) on investments, net

 

 

(112

)

 

 

386

 

 

 

10,311

 

 

 

77,442

 

 

 

(7,936

)

 

 

 

(3,994

)

 

 

13,328

 

 

 

—

 

 

 

89,425

Other income (loss), net

 

 

255

 

 

 

(5,434

)

 

 

34,428

 

 

 

(2,035

)

 

 

17,998

 

 

 

 

5,396

 

 

 

(822

)

 

 

(33,926

)

 

 

15,860

Total other income (loss)

 

 

143

 

 

 

(5,048

)

 

 

44,739

 

 

 

75,407

 

 

 

10,062

 

 

 

 

1,402

 

 

 

12,506

 

 

 

(33,926

)

 

 

105,285

Income (loss) before income taxes

 

 

(10,852

)

 

 

337,768

 

 

 

56,671

 

 

 

81,998

 

 

 

(7,462

)

 

 

 

18,754

 

 

 

27,238

 

 

 

(60,900

)

 

 

443,215

Income tax expense (benefit)

 

 

(2,718

)

 

 

51,925

 

 

 

3,308

 

 

 

—

 

 

 

4,948

 

 

 

 

48

 

 

 

(981

)

 

 

—

 

 

 

56,530

Net income (loss)

 

 

(8,134

)

 

 

285,843

 

 

 

53,363

 

 

 

81,998

 

 

 

(12,410

)

 

 

 

18,706

 

 

 

28,219

 

 

 

(60,900

)

 

 

386,685

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

 

386

 

 

 

—

 

 

 

845

 

 

 

—

 

 

 

—

 

 

 

 

5,658

 

 

 

—

 

 

 

—

 

 

 

6,889

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

22,395

 

 

 

22,395

Net income (loss) attributable to common stockholders

 

$

(8,520

)

 

$

285,843

 

 

$

52,518

 

 

$

81,998

 

 

$

(12,410

)

 

 

$

13,048

 

 

$

28,219

 

 

$

(83,295

)

 

$

357,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

2,261,296

 

 

$

10,037,550

 

 

$

4,863,294

 

 

$

10,203,238

 

 

$

2,458,275

 

 

 

$

1,704,131

 

 

$

2,208,159

 

 

$

122,136

 

 

$

33,858,079

Total Rithm Capital stockholder’s equity

 

$

305,518

 

 

$

3,579,194

 

 

$

1,914,719

 

 

$

926,843

 

 

$

214,825

 

 

 

$

219,934

 

 

$

571,332

 

 

$

(597,932

)

 

$

7,134,433

 

 

Origination and Servicing

 

Residential Securities, Properties and Loans

 

 

 

 

 

 

 

 

First Quarter 2023

 

Origination

 

Servicing

 

MSR Related Investments

 

Real Estate Securities

 

Properties & Residential Mortgage Loans

 

Consumer Loans

 

Mortgage Loans Receivable

 

Corporate

 

Total

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

 

$

—

 

 

$

349,424

 

 

$

120,415

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

469,839

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(105,691))

 

 

—

 

 

 

(37,526

)

 

 

(104,778

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(142,304

)

Servicing revenue, net

 

 

—

 

 

 

311,898

 

 

 

15,637

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

327,535

 

Interest income

 

 

25,533

 

 

 

84,233

 

 

 

24,559

 

 

 

114,247

 

 

 

22,766

 

 

 

14,287

 

 

 

58,337

 

 

 

2,652

 

 

 

346,614

 

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

 

 

112,822

 

 

 

(4,601

)

 

 

—

 

 

 

—

 

 

 

1,047

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

109,268

 

Total revenues

 

 

138,355

 

 

 

391,530

 

 

 

40,196

 

 

 

114,247

 

 

 

23,813

 

 

 

14,287

 

 

 

58,337

 

 

 

2,652

 

 

 

783,417

 

Interest expense

 

 

29,995

 

 

 

81,074

 

 

 

31,702

 

 

 

98,292

 

 

 

26,192

 

 

 

1,680

 

 

 

30,692

 

 

 

9,441

 

 

 

309,068

 

G&A and other

 

 

140,512

 

 

 

100,834

 

 

 

69,241

 

 

 

630

 

 

 

9,383

 

 

 

1,766

 

 

 

16,231

 

 

 

17,438

 

 

 

356,035

 

Total operating expenses

 

 

170,507

 

 

 

181,908

 

 

 

100,943

 

 

 

98,922

 

 

 

35,575

 

 

 

3,446

 

 

 

46,923

 

 

 

26,879

 

 

 

665,103

 

Realized and unrealized gains (losses) on investments, net

 

 

168

 

 

 

(191

)

 

 

(12,398

)

 

 

(45,999

)

 

 

(6,427

)

 

 

(5,990

)

 

 

(4,812

)

 

 

—

 

 

 

(75,649

)

Other income (loss), net

 

 

(590

)

 

 

(12,837

)

 

 

35,921

 

 

 

165

 

 

 

24,181

 

 

 

(8,722

)

 

 

1,713

 

 

 

(9,353

)

 

 

30,478

 

Total other income (loss)

 

 

(422

)

 

 

(13,028

)

 

 

23,523

 

 

 

(45,834

)

 

 

17,754

 

 

 

(14,712

)

 

 

(3,099

)

 

 

(9,353

)

 

 

(45,171

)

Income (loss) before income taxes

 

 

(32,574

)

 

 

196,594

 

 

 

(37,224

)

 

 

(30,509

)

 

 

5,992

 

 

 

(3,871

)

 

 

8,315

 

 

 

(33,580

)

 

 

73,143

 

Income tax expense (benefit)

 

 

(8,160

)

 

 

4,488

 

 

 

(7,371

)

 

 

—

 

 

 

(3,728

)

 

 

59

 

 

 

(2,094

)

 

 

—

 

 

 

(16,806

)

Net income (loss)

 

 

(24,414

)

 

 

192,106

 

 

 

(29,853

)

 

 

(30,509

)

 

 

9,720

 

 

 

(3,930

)

 

 

10,409

 

 

 

(33,580

)

 

 

89,949

 

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

 

(42

)

 

 

—

 

 

 

(146

)

 

 

—

 

 

 

—

 

 

 

(1,112

)

 

 

—

 

 

 

—

 

 

 

(1,300

)

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,395

 

 

 

22,395

 

Net income (loss) attributable to common stockholders

 

$

(24,372

)

 

$

192,106

 

 

$

(29,707

)

 

$

(30,509

)

 

$

9,720

 

 

$

(2,818

)

 

$

10,409

 

 

$

(55,975

)

 

$

68,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,955,613

 

 

$

10,161,889

 

 

$

5,030,161

 

 

$

9,437,577

 

 

$

2,530,135

 

 

$

384,293

 

 

$

2,180,520

 

 

$

138,463

 

 

$

31,818,651

 

Total Rithm Capital stockholder’s equity

 

$

330,404

 

 

$

3,263,251

 

 

$

2,024,148

 

 

$

1,039,411

 

 

$

242,513

 

 

$

59,338

 

 

$

507,510

 

 

$

(572,369

)

 

$

6,894,206

 

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 an asset manager focused on the real estate and financial services industries. Rithm Capital’s investments in operating entities include leading origination and servicing platforms held through its wholly-owned subsidiaries, Newrez LLC, Caliber Home Loans Inc. and Genesis Capital LLC, as well as investments in affiliated businesses that provide residential and commercial real estate related services. The Company seeks to provide attractive risk-adjusted returns across interest rate environments. Since inception in 2013, Rithm Capital has delivered approximately $4.7 billion in dividends to shareholders. Rithm Capital 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/20230802108209/en/

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