RITM Rithm Capital Corp

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

Third Quarter 2023 Financial Highlights:

• GAAP net income of $193.9 million, or $0.40 per diluted common share(1)
• Earnings available for distribution of $280.8 million, or $0.58 per diluted common share(1)(2)
• Common dividend of $120.8 million, or $0.25 per common share
• Book value per common share of $12.32(1)

 

Q3 2023

 

Q2 2023

 

Summary Operating Results:

 

 

 

 

GAAP Net Income per Diluted Common Share(1)

$

0.40

 

$

0.74

 

GAAP Net Income

$

193.9

million

$

357.4

million

 

 

 

 

 

Non-GAAP Results:

 

 

 

 

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

$

0.58

 

$

0.62

 

Earnings Available for Distribution(2)

$

280.8

million

$

297.9

million

 

 

 

 

 

Common Dividend:

 

 

 

 

Common Dividend per Share

$

0.25

 

$

0.25

 

Common Dividend

$

120.8

million

$

120.8

million

“This was a terrific quarter for our company— the firm continues to pivot towards our vision for Rithm 2.0 as we not only focus on our core business, but also other opportunities across our platforms in becoming a leading global asset manager,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. “We expect to close the Sculptor transaction in the fourth quarter. During this quarter, we also announced the acquisition of Specialized Loan Servicing (“SLS”) for a purchase price of approximately $720 million. This acquisition helps grow our third-party servicing business and reinforces our position as one of the leading non-bank mortgage servicers in the country.”

Third Quarter 2023 Company Highlights:

• Newrez
  • Combined Origination & Servicing segment pre-tax income of $412.5 million(3)
    • Generated a 19% pre-tax ROE on $4.5 billion of equity excluding MSR mark to market in Q3’23(4)
  • Origination funded production volume of $11.1 billion
  • Estimated Q4’23 funded origination volume of approximately $7 to $9 billion(5)
• Total Rithm MSR Portfolio Summary
  • MSR portfolio totaled $595 billion in unpaid principal balance (“UPB”) at September 30, 2023 compared to $598 billion UPB at June 30, 2023(6)
    • Portfolio average CPR of approximately 6.3%
• Genesis Capital LLC
  • Origination funded production volume of $625 million during the quarter and $1,530 million year to date
• Fourth Quarter 2023 Commentary(5)
  • In October 2023, the Company has entered into a definitive agreement with Computershare Limited (ASX:CPU) to acquire Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”), for a purchase price of approximately $720 million.
    • The acquisition includes approximately $136 billion in UPB of MSRs, of which $85 billion is third-party servicing, along with SLS’s origination services business
    • Closing targeted for Q1’24, subject to customary closing conditions and approvals
    • Transaction is expected to be funded by a mix of existing cash, available liquidity on the balance sheet, as well as additional MSR financing

1. Per common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 484,350,288 and 483,376,961 weighted average diluted shares for the quarters ended September 30, 2023 and June 30, 2023, respectively. Per share calculations of Book Value are based on 483,214,061 common shares outstanding as of September 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. Excludes positive full MSR mark-to-market of $211.4mm.
5. Based on management’s current views and estimates. Actual results may vary materially.
6. Includes excess and full MSRs.

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 Thursday, October 26, 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 Third Quarter 2023 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10183667/facaf434c4.

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, November 2, 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 “2449142.”

Consolidated Statements of Operations (Unaudited)

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

 

 

Three Months Ended

 

September 30, 2023

 

June 30, 2023

Revenues

 

 

 

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

$

442,644

 

 

$

465,562

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of    $(138,993), and $(139,410), respectively)

 

20,934

 

 

 

22,032

Servicing revenue, net

 

463,578

 

 

 

487,594

Interest income

 

476,607

 

 

 

398,786

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

 

149,230

 

 

 

151,822

 

 

1,089,415

 

 

 

1,038,202

Expenses

 

 

 

Interest expense and warehouse line fees

 

382,554

 

 

 

329,158

General and administrative

 

190,475

 

 

 

181,508

Compensation and benefits

 

186,149

 

 

 

189,606

 

 

759,178

 

 

 

700,272

Other income (loss)

 

 

 

Realized and unrealized gains (losses) on investments, net

 

(127,508

)

 

 

89,425

Other income (loss), net

 

71,047

 

 

 

15,860

 

 

(56,461

)

 

 

105,285

Income before income taxes

 

273,776

 

 

 

443,215

Income tax expense (benefit)

 

52,585

 

 

 

56,530

Net income

$

221,191

 

 

$

386,685

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

4,848

 

 

 

6,889

Dividends on preferred stock

 

22,394

 

 

 

22,395

Net income attributable to common stockholders

$

193,949

 

 

$

357,401

 

 

 

 

Net income per share of common stock

 

 

 

Basic

$

0.40

 

 

$

0.74

Diluted

$

0.40

 

 

$

0.74

Weighted average number of shares of common stock outstanding

 

 

 

Basic

 

483,214,061

 

 

 

483,091,792

Diluted

 

484,350,288

 

 

 

483,376,961

 

 

 

 

Dividends declared per share of common stock

$

0.25

 

 

$

0.25

Consolidated Balance Sheets

($ in thousands, except share data)

 

 

September 30, 2023 (Unaudited)

 

June 30, 2023 (Unaudited)

Assets

 

 

 

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

$

8,694,868

 

 

$

8,688,556

 

Real estate and other securities ($9,201,474 and $8,722,018 at fair value, respectively)

 

10,193,596

 

 

 

9,701,000

 

Residential loans held-for-investment, at fair value

 

370,957

 

 

 

400,206

 

Residential mortgage loans, held-for-sale ($2,740,599 and $3,008,722 at fair value, respectively)

 

2,819,282

 

 

 

3,092,667

 

Consumer loans held-for-investment, at fair value

 

1,436,080

 

 

 

1,602,571

 

Single-family rental properties

 

991,948

 

 

 

965,194

 

Mortgage loans receivable, at fair value

 

2,135,424

 

 

 

1,939,499

 

Residential mortgage loans subject to repurchase

 

1,443,546

 

 

 

1,296,097

 

Cash and cash equivalents

 

1,217,283

 

 

 

1,369,025

 

Restricted cash

 

368,447

 

 

 

319,765

 

Servicer advances receivable

 

2,434,266

 

 

 

2,447,918

 

Receivable for investments sold

 

219,963

 

 

 

—

 

Other assets

 

2,419,868

 

 

 

2,035,581

 

 

$

34,745,528

 

 

$

33,858,079

 

Liabilities and Equity

 

 

 

 

 

 

 

Liabilities

 

 

 

Secured financing agreements

$

13,605,380

 

 

$

12,757,428

 

Secured notes and bonds payable ($552,920 and $574,120 at fair value, respectively)

 

9,964,855

 

 

 

10,315,006

 

Residential mortgage loan repurchase liability

 

1,443,546

 

 

 

1,296,097

 

Unsecured senior notes, net of issuance costs

 

546,374

 

 

 

545,930

 

Dividends payable

 

135,095

 

 

 

134,188

 

Accrued expenses and other liabilities

 

1,782,315

 

 

 

1,614,746

 

 

 

27,477,565

 

 

 

26,663,395

 

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, 483,214,061 and 483,320,606 issued and outstanding, respectively

 

4,833

 

 

 

4,834

 

Additional paid-in capital

 

6,070,970

 

 

 

6,068,613

 

Retained earnings (accumulated deficit)

 

(164,010

)

 

 

(236,222

)

Accumulated other comprehensive income

 

39,009

 

 

 

39,954

 

Total Rithm Capital stockholders’ equity

 

7,208,056

 

 

 

7,134,433

 

Noncontrolling interests in equity of consolidated subsidiaries

 

59,907

 

 

 

60,251

 

Total equity

 

7,267,963

 

 

 

7,194,684

 

 

$

34,745,528

 

 

$

33,858,079

 

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

 

September 30, 2023

 

June 30, 2023

Net income attributable to common stockholders

$

193,949

 

 

$

357,401

 

Adjustments:

 

 

 

Impairment

 

3,445

 

 

 

5,813

 

Realized and unrealized (gains) losses on investments, net

 

49,873

 

 

 

(156,055

)

Other (income) loss, net

 

(32,467

)

 

 

23,539

 

Non-capitalized transaction-related expenses

 

15,936

 

 

 

9,163

 

Deferred taxes

 

47,386

 

 

 

56,431

 

Earnings available for distribution of equity method investees:

 

 

 

Excess mortgage servicing rights

 

2,714

 

 

 

1,636

 

Earnings available for distribution

$

280,836

 

 

$

297,928

 

 

 

 

 

Net income per diluted share

$

0.40

 

 

$

0.74

 

Earnings available for distribution per diluted share

$

0.58

 

 

$

0.62

 

 

 

 

 

Weighted average number of shares of common stock outstanding, diluted

 

484,350,288

 

 

 

483,376,961

 

SEGMENT INFORMATION

($ in thousands)

 

 

 

Origination and Servicing

 

Residential Securities, Properties and Loans

 

 

 

 

 

 

 

 

Third 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

 

$

—

 

 

$

372,979

 

 

$

69,665

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

442,644

 

Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(138,993))

 

 

—

 

 

 

95,507

 

 

 

(74,573

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,934

 

Servicing revenue, net

 

 

—

 

 

 

468,486

 

 

 

(4,908

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

463,578

 

Interest income

 

 

29,140

 

 

 

127,467

 

 

 

35,339

 

 

 

140,119

 

 

 

23,993

 

 

 

58,946

 

 

 

59,461

 

 

 

2,142

 

 

 

476,607

 

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

 

 

126,844

 

 

 

17,295

 

 

 

—

 

 

 

—

 

 

 

5,091

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

149,230

 

Total revenues

 

 

155,984

 

 

 

613,248

 

 

 

30,431

 

 

 

140,119

 

 

 

29,084

 

 

 

58,946

 

 

 

59,461

 

 

 

2,142

 

 

 

1,089,415

 

Interest expense

 

 

30,725

 

 

 

83,845

 

 

 

33,907

 

 

 

136,180

 

 

 

30,753

 

 

 

26,285

 

 

 

31,751

 

 

 

9,108

 

 

 

382,554

 

G&A and other

 

 

137,831

 

 

 

103,728

 

 

 

66,275

 

 

 

1,009

 

 

 

13,531

 

 

 

4,542

 

 

 

15,524

 

 

 

34,184

 

 

 

376,624

 

Total operating expenses

 

 

168,556

 

 

 

187,573

 

 

 

100,182

 

 

 

137,189

 

 

 

44,284

 

 

 

30,827

 

 

 

47,275

 

 

 

43,292

 

 

 

759,178

 

Realized and unrealized gains (losses) on investments, net

 

 

22

 

 

 

—

 

 

 

10,453

 

 

 

(127,458

)

 

 

(7,865

)

 

 

(4,111

)

 

 

1,451

 

 

 

—

 

 

 

(127,508

)

Other income (loss), net

 

 

74

 

 

 

(700

)

 

 

37,412

 

 

 

(2,644

)

 

 

40,330

 

 

 

(2,410

)

 

 

5,369

 

 

 

(6,384

)

 

 

71,047

 

Total other income (loss)

 

 

96

 

 

 

(700

)

 

 

47,865

 

 

 

(130,102

)

 

 

32,465

 

 

 

(6,521

)

 

 

6,820

 

 

 

(6,384

)

 

 

(56,461

)

Income (loss) before income taxes

 

 

(12,476

)

 

 

424,975

 

 

 

(21,886

)

 

 

(127,172

)

 

 

17,265

 

 

 

21,598

 

 

 

19,006

 

 

 

(47,534

)

 

 

273,776

 

Income tax expense (benefit)

 

 

(3,125

)

 

 

59,474

 

 

 

1,946

 

 

 

—

 

 

 

(4,656

)

 

 

62

 

 

 

(1,116

)

 

 

—

 

 

 

52,585

 

Net income (loss)

 

 

(9,351

)

 

 

365,501

 

 

 

(23,832

)

 

 

(127,172

)

 

 

21,921

 

 

 

21,536

 

 

 

20,122

 

 

 

(47,534

)

 

 

221,191

 

Noncontrolling interests in income (loss) of consolidated subsidiaries

 

 

269

 

 

 

—

 

 

 

1,414

 

 

 

—

 

 

 

—

 

 

 

3,165

 

 

 

—

 

 

 

—

 

 

 

4,848

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,394

 

 

 

22,394

 

Net income (loss) attributable to common stockholders

 

$

(9,620

)

 

$

365,501

 

 

$

(25,246

)

 

$

(127,172

)

 

$

21,921

 

 

$

18,371

 

 

$

20,122

 

 

$

(69,928

)

 

$

193,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,930,567

 

 

$

11,107,429

 

 

$

3,795,736

 

 

$

11,356,904

 

 

$

2,525,778

 

 

$

1,550,856

 

 

$

2,355,415

 

 

$

122,843

 

 

$

34,745,528

 

Total Rithm Capital stockholder’s equity

 

$

282,476

 

 

$

4,234,955

 

 

$

1,305,636

 

 

$

980,380

 

 

$

179,206

 

 

$

233,762

 

 

$

610,499

 

 

$

(618,858

)

 

$

7,208,056

 

 

 

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

 

 

 

15,348

 

 

 

2,734

 

 

 

14,795

 

 

 

24,244

 

 

 

371,114

Total operating expenses

 

 

171,677

 

 

 

175,680

 

 

 

105,663

 

 

 

117,132

 

 

 

46,178

 

 

 

7,049

 

 

 

44,077

 

 

 

32,816

 

 

 

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

 

 

 

(3,568

)

 

 

18,754

 

 

 

27,238

 

 

 

(64,794

)

 

 

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

 

 

 

(8,516

)

 

 

18,706

 

 

 

28,219

 

 

 

(64,794

)

 

 

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

 

 

$

(8,516

)

 

$

13,048

 

 

$

28,219

 

 

$

(87,189

)

 

$

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

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 $4.9 billion in dividends to shareholders, including dividends payable on October 27, 2023. 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/20231026974090/en/

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