Rithm Capital Corp. Announces Fourth Quarter and Full Year 2024 Results
Rithm Capital (NYSE: RITM) reported strong financial results for Q4 and full year 2024. The company achieved Q4 GAAP net income of $263.2 million ($0.50 per share) and earnings available for distribution of $315.8 million ($0.60 per share). For full year 2024, GAAP net income reached $835.0 million ($1.67 per share) with earnings available for distribution of $1.1 billion ($2.10 per share).
Key Q4 highlights include completing a $461 million secured MSR financing, growing total servicing UPB to $844 billion (up 32% YoY), and increasing origination volume to $17.3 billion (up 94% YoY). The company's Sculptor segment managed approximately $34 billion in AUM and closed an additional $1.0 billion for Real Estate Fund V.
The Board authorized new stock repurchase programs of up to $200 million for common stock and $100 million for preferred stock through December 31, 2025.
Rithm Capital (NYSE: RITM) ha riportato risultati finanziari solidi per il Q4 e per l'intero anno 2024. L'azienda ha registrato un reddito netto GAAP nel Q4 di 263,2 milioni di dollari (0,50 dollari per azione) e utili disponibili per la distribuzione di 315,8 milioni di dollari (0,60 dollari per azione). Per l'intero anno 2024, il reddito netto GAAP ha raggiunto 835,0 milioni di dollari (1,67 dollari per azione) con utili disponibili per la distribuzione di 1,1 miliardi di dollari (2,10 dollari per azione).
Tra i punti salienti del Q4 ci sono il completamento di un finanziamento MSR garantito di 461 milioni di dollari, la crescita del totale dell'UPB di servicing a 844 miliardi di dollari (in aumento del 32% su base annua), e l'aumento del volume di origine a 17,3 miliardi di dollari (in aumento del 94% su base annua). Il segmento Sculptor dell'azienda ha gestito circa 34 miliardi di dollari in AUM e ha chiuso ulteriori 1,0 miliardi di dollari per il Real Estate Fund V.
Il Consiglio ha autorizzato nuovi programmi di riacquisto di azioni fino a 200 milioni di dollari per le azioni ordinarie e 100 milioni di dollari per le azioni privilegiate fino al 31 dicembre 2025.
Rithm Capital (NYSE: RITM) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. La compañía alcanzó un ingreso neto GAAP en el cuarto trimestre de 263.2 millones de dólares (0.50 dólares por acción) y ganancias disponibles para distribución de 315.8 millones de dólares (0.60 dólares por acción). Para el año completo 2024, el ingreso neto GAAP alcanzó 835.0 millones de dólares (1.67 dólares por acción) con ganancias disponibles para distribución de 1.1 mil millones de dólares (2.10 dólares por acción).
Los aspectos destacados del cuarto trimestre incluyen la finalización de un financiamiento MSR asegurado de 461 millones de dólares, el crecimiento del total del UPB de servicio a 844 mil millones de dólares (aumento del 32% anual), y el aumento del volumen de originación a 17.3 mil millones de dólares (aumento del 94% anual). El segmento Sculptor de la compañía administró aproximadamente 34 mil millones de dólares en AUM y cerró un adicional de 1.0 mil millones de dólares para el Real Estate Fund V.
La Junta autorizó nuevos programas de recompra de acciones de hasta 200 millones de dólares para acciones ordinarias y 100 millones de dólares para acciones preferentes hasta el 31 de diciembre de 2025.
리즘 캐피탈 (NYSE: RITM)은 2024년 4분기 및 전체 연도의 강력한 재무 결과를 보고했습니다. 회사는 4분기 GAAP 순이익 2억 6,320만 달러(주당 0.50달러) 및 배당 가능한 수익 3억 1,580만 달러(주당 0.60달러)를 달성했습니다. 2024년 전체 연도에 대해 GAAP 순이익은 8억 3,500만 달러(주당 1.67달러)로, 배당 가능한 수익은 11억 달러(주당 2.10달러)에 도달했습니다.
4분기의 주요 하이라이트 중에는 4억 6,100만 달러 규모의 민간 자산 관리(MSR) 담보 대출 완료, 총 서비싱 자산목표(UPB)를 8,440억 달러로 증가(전년 대비 32% 증가) 및 대출 발행량을 173억 달러로 증가(전년 대비 94%)한 것이 포함됩니다. 회사의 스컬프터 부문은 약 340억 달러의 자산 운용(AUM)을 관리했으며, 부동산 펀드 V를 위해 추가로 10억 달러를 마감했습니다.
이사회는 2025년 12월 31일까지 보통주에 대해 최대 2억 달러, 우선주에 대해 1억 달러의 새로운 주식 매입 프로그램을 승인했습니다.
Rithm Capital (NYSE: RITM) a publié de solides résultats financiers pour le quatrième trimestre et l'ensemble de l'année 2024. L'entreprise a réalisé un revenu net GAAP de 263,2 millions de dollars au quatrième trimestre (0,50 dollar par action) et des bénéfices disponibles pour distribution de 315,8 millions de dollars (0,60 dollar par action). Pour l'année complète 2024, le revenu net GAAP a atteint 835,0 millions de dollars (1,67 dollar par action) avec des bénéfices disponibles pour distribution de 1,1 milliard de dollars (2,10 dollars par action).
Parmi les points forts du quatrième trimestre, on note l'achèvement d'un financement MSR garanti de 461 millions de dollars, une augmentation de l'UPB total des services à 844 milliards de dollars (augmentation de 32 % par rapport à l'année précédente) et une augmentation du volume d'origination à 17,3 milliards de dollars (augmentation de 94 % par rapport à l'année précédente). Le segment Sculptor de l'entreprise a géré environ 34 milliards de dollars en actifs sous gestion (AUM) et a levé 1,0 milliard de dollars supplémentaires pour le Real Estate Fund V.
Le Conseil a autorisé de nouveaux programmes de rachat d'actions allant jusqu'à 200 millions de dollars pour les actions ordinaires et 100 millions de dollars pour les actions préférentielles jusqu'au 31 décembre 2025.
Rithm Capital (NYSE: RITM) hat starke finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet. Das Unternehmen erzielte im vierten Quartal einen GAAP-Nettoeinkommen von 263,2 Millionen Dollar (0,50 Dollar pro Aktie) und ausschüttbare Erträge von 315,8 Millionen Dollar (0,60 Dollar pro Aktie). Für das gesamte Jahr 2024 erreichte das GAAP-Nettoeinkommen 835,0 Millionen Dollar (1,67 Dollar pro Aktie) mit ausschüttbaren Erträgen von 1,1 Milliarden Dollar (2,10 Dollar pro Aktie).
Wichtige Höhepunkte im vierten Quartal sind der Abschluss einer gesicherten MSR-Finanzierung in Höhe von 461 Millionen Dollar, das Wachstum des gesamten Servicings auf 844 Milliarden Dollar (32 % Steigerung im Vergleich zum Vorjahr) und die Erhöhung des Originierungsvolumens auf 17,3 Milliarden Dollar (94 % Steigerung im Vergleich zum Vorjahr). Der Sculptor-Sektor des Unternehmens verwaltete ungefähr 34 Milliarden Dollar in verwaltetem Vermögen (AUM) und schloss zusätzlich 1,0 Milliarden Dollar für den Real Estate Fund V ab.
Der Vorstand genehmigte neue Aktienrückkaufprogramme von bis zu 200 Millionen Dollar für Stammaktien und 100 Millionen Dollar für Vorzugsaktien bis zum 31. Dezember 2025.
- Q4 GAAP net income increased 171% QoQ to $263.2 million
- Full year 2024 GAAP net income up 57% YoY to $835.0 million
- Total servicing portfolio grew 32% YoY to $844 billion UPB
- Origination volume increased 94% YoY to $17.3 billion
- Secured $461 million in MSR financing
- New $300 million stock repurchase authorization
- None.
Insights
Rithm Capital's Q4 2024 results showcase exceptional operational execution and strategic positioning across multiple revenue streams. The standout earnings available for distribution of
The company's pioneering
The servicing portfolio's growth is particularly noteworthy, with third-party servicing UPB surging
The newly authorized
Sculptor's integration into Rithm's ecosystem is proving transformative, with the platform demonstrating strong momentum across multiple strategies. The successful
The acceleration in the Non-Traded REIT strategy is particularly significant, with pro forma AUM reaching
The first full year post-Sculptor acquisition has established a solid foundation for Rithm's asset management ambitions, creating a diversified revenue stream through management fees and potential performance fees. The platform's ability to raise significant capital across different strategies suggests strong institutional confidence and positions Rithm well for continued growth in 2025.
Fourth Quarter 2024 Financial Highlights:
-
GAAP net income of
$263.2 million $0.50 -
Earnings available for distribution of
$315.8 million $0.60 -
Common dividend of
$130.2 million $0.25 -
Book value per common share of
$12.56
Full Year 2024 Financial Highlights:
-
GAAP net income of
$835.0 million $1.67 -
Earnings available for distribution of
$1.1 billion $2.10 -
Common dividend of
$503.4 million $1.00
|
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
-
Completed a
-
Newrez
-
Origination & Servicing segment pre-tax income of
$280.2 million $204.5 million $250.7 million $(235.5) million -
Generated a
20% pre-tax return on equity (“ROE”) on$5.6 billion -
Total servicing unpaid principal balance (“UPB”) of
$844 billion 32% YoY, including$254 billion 129% YoY -
Origination funded production volume of
$17.3 billion 9% QoQ and94% YoY
-
Origination & Servicing segment pre-tax income of
-
Genesis
-
Residential Transitional Lending segment pre-tax income of
$3.5 million -
Origination volume of
$1.2 billion 101% YoY -
Grew number of sponsors to 140, reflecting
14% growth YoY
-
Residential Transitional Lending segment pre-tax income of
-
Sculptor
-
Approximately
$34 billion -
Closed an additional
$1.0 billion $2.3 billion -
Accelerated momentum in Non-Traded REIT (SDREIT) strategy bringing pro forma AUM to
$500 million
-
Approximately
(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 |
|
|
(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
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
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
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,
|
|
September 30,
|
|
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 |
|
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 |
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Consolidated Balance Sheets |
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($ 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 ( |
|
9,736,116 |
|
|
|
8,557,683 |
|
Residential mortgage loans, held-for-investment, at fair value |
|
361,890 |
|
|
|
379,044 |
|
Residential mortgage loans, held-for-sale ( |
|
4,374,241 |
|
|
|
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 ( |
|
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 ( |
|
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 ( |
|
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, |
|
1,257,254 |
|
|
|
1,257,254 |
|
Common stock, |
|
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,
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,
|
|
September 30,
|
|
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
|
|
Investment
|
|
Residential
|
|
Asset
|
|
Corporate
|
|
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 |
|
|
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
|
|
Investment
|
|
Residential
|
|
Asset
|
|
Corporate
|
|
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 |
|
|
(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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206415439/en/
Investor Relations
212-850-7770
ir@rithmcap.com
Source: Rithm Capital Corp.
FAQ
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