Rithm Capital Corp. Announces Second Quarter 2024 Results

Rhea-AI Summary

Rithm Capital Corp. (NYSE: RITM) announced its Q2 2024 results, reporting GAAP net income of $213.2 million or $0.43 per diluted share. Earnings available for distribution stood at $231.1 million or $0.47 per diluted share. The company declared a common dividend of $0.25 per share, totaling $122.4 million.

The book value per common share was $12.39.

Highlights include an MSR portfolio with an unpaid principal balance of $645 billion and a pre-tax income of $247.7 million from the Newrez Origination & Servicing segment. The acquisition of Computershare Mortgage Services added $56 billion in MSRs and $98 billion in third-party servicing.

Rithm issued a $500 million rated Residential Transitional Loan securitization and closed two new CLOs totaling $780 million in AUM. The company will host an earnings call on July 31, 2024, at 8:00 AM ET.

Positive

• GAAP net income of $213.2 million.
• Earnings available for distribution of $231.1 million.
• Common dividend maintained at $0.25 per share.
• MSR portfolio UPB increased to $645 billion.
• Pre-tax income of $247.7 million from Newrez Origination & Servicing.
• Acquisition of Computershare Mortgage Services added $56 billion in MSRs and $98 billion in third-party servicing.
• Issued $500 million rated Residential Transitional Loan securitization.

Negative

• GAAP net income per diluted share decreased from $0.54 in Q1 to $0.43 in Q2.
• Earnings available for distribution per diluted share decreased from $0.48 in Q1 to $0.47 in Q2.
• Net income decreased from $261.6 million in Q1 to $213.2 million in Q2.

Insights

Financial Analyst

Rithm Capital's Q2 2024 results demonstrate solid performance amid a competitive market environment. Key highlights include:

• GAAP net income of $213.2 million ($0.43 per diluted share), down from $261.6 million in Q1
• Earnings available for distribution of $231.1 million ($0.47 per diluted share), slightly lower than $233.2 million in Q1
• Book value per share increased to $12.39
• Maintained quarterly dividend at $0.25 per share

The company's diversified platform continues to show resilience, with strong performances in key segments:

• Newrez Origination & Servicing generated a 23% pre-tax ROE on $4.0 billion of equity
• Mortgage Loans Receivable segment achieved an 18% pre-tax ROE on $710 million of equity
• Sculptor's AUM grew to $32 billion

The acquisition of Computershare Mortgage Services for $708 million expands Rithm's servicing portfolio and capabilities. However, investors should monitor integration costs and synergy realization in coming quarters.

While the results are generally positive, the slight decline in earnings from Q1 to Q2 warrants attention. Management will need to navigate ongoing market challenges and capitalize on growth opportunities to maintain momentum.

Market Research Analyst

Rithm Capital's Q2 results reflect the company's ability to navigate a complex market landscape. Several key trends emerge:

• Mortgage Market Dynamics: The 35% QoQ and 47% YoY increase in origination funded production volume to $14.6 billion suggests a rebounding mortgage market, likely driven by stabilizing interest rates and pent-up demand.
• Diversification Strategy: The acquisition of Computershare Mortgage Services and the new role as external manager for Great Ajax Corp. demonstrate Rithm's focus on expanding its footprint across various segments of the mortgage and real estate markets.
• Asset Management Growth: Sculptor's AUM increase and new CLO closings indicate strong demand for alternative investment products in the current economic environment.
• Construction Lending Opportunity: The $500 million securitization focused on ground-up construction highlights a strategic move into a potentially lucrative niche within residential real estate finance.

These trends position Rithm Capital well in the evolving financial services landscape, but also expose it to risks associated with market volatility and regulatory changes in the mortgage industry. The company's ability to maintain its diversified approach while managing integration challenges will be important for long-term success.

NEW YORK--(BUSINESS WIRE)-- Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the second quarter ended June 30, 2024:

Second Quarter 2024 Financial Highlights:

• GAAP net income of $213.2 million, or $0.43 per diluted common share⁽¹⁾
• Earnings available for distribution of $231.1 million, or $0.47 per diluted common share⁽¹⁾⁽²⁾
• Common dividend of $122.4 million, or $0.25 per common share
• Book value per common share of $12.39⁽¹⁾

		Q2 2024					Q1 2024
Summary Operating Results:
GAAP Net (Loss) Income per Diluted Common Share(1)		$	0.43				$	0.54
GAAP Net (Loss) Income		$	213.2		million		$	261.6		million
Non-GAAP Results:
Earnings Available for Distribution per Diluted Common Share(1)(2)		$	0.47				$	0.48
Earnings Available for Distribution(2)		$	231.1		million		$	233.2		million
Common Dividend:
Common Dividend per Share		$	0.25				$	0.25
Common Dividend		$	122.4		million		$	120.9		million

“We are pleased to have delivered another strong performance this quarter,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. “Our core businesses are capitalizing on attractive opportunities in an increasingly competitive market, while we continue to grow our asset management capabilities and realize the benefits of our expanding partnerships. Looking forward, I believe our diversified platform will enable Rithm to continue its trajectory as a leading alternative asset manager and deliver strong results for shareholders and LPs.”

Second Quarter 2024 Company Highlights:

• Total Rithm MSR Portfolio Summary
  • Mortgage servicing rights (“MSRs”) portfolio totaled $645 billion in unpaid principal balance (“UPB”) at June 30, 2024, compared to $587 billion in UPB at March 31, 2024⁽³⁾
    • Portfolio average constant prepayment rate of approximately 6.2%

• Newrez
  • Origination & Servicing segment pre-tax income of $247.7 million⁽⁴⁾
  • Generated a 23% pre-tax return on equity (“ROE”) on $4.0 billion of equity⁽⁵⁾⁽⁶⁾
  • Origination funded production volume of $14.6 billion, an increase of 35% QoQ and 47% YoY
  • Acquisition of Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”), closed on May 1, 2024 for a cash purchase price of approximately $708.0 million.
    • The acquisition included approximately $56 billion in UPB of MSRs and $98 billion of third-party servicing UPB, along with SLS’s origination servicing business

• Genesis
  • Mortgage Loans Receivable segment pre-tax income of $31.7 million
  • Generated a 18% pre-tax ROE on $710 million of equity⁽⁷⁾
  • Origination volume of $836 million, an increase of 50% YoY
  • Issued largest ever rated Residential Transitional Loan securitization of $500 million, focused on ground-up construction

• Sculptor
  • Approximately $32 billion of assets under management (“AUM”) at June 30, 2024⁽⁸⁾
  • Closed two new CLOs for a total of ~$780 million of AUM
  • Additional $100 million closing in Real Estate Credit Fund II

• Great Ajax
  • Completed transaction to serve as the external manager to Great Ajax Corp. (NYSE: AJX), a publicly traded mortgage REIT

(1)		Per common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 490,981,282 and 485,931,501 weighted average diluted shares for the quarters ended June 30, 2024 and March 31, 2024, respectively. Per share calculations of Book Value are based on 489,732,422 common shares outstanding as of June 30, 2024.
(2)		Earnings Available for Distribution is a non-GAAP financial measure. For a reconciliation of Earnings Available for Distribution to GAAP Net Income, as well as an explanation of this measure, please refer to the section entitled Non-GAAP Financial Measures and Reconciliation to GAAP Net Income below.
(3)		Includes excess and full MSRs.
(4)		Includes noncontrolling interests.
(5)		Excludes full MSR mark-to-market of $20.1 million.
(6)		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.
(7)		ROE is calculated based on annualized pre-tax income, divided by the average Mortgage Loans Receivable segment ending equity for the respective period.
(8)		“Assets Under Management” (AUM) refers to the assets for which Sculptor provides investment management, advisory or certain other investment-related services. This is generally equal to the sum of (i) net asset value of the funds, (ii) uncalled capital commitments, (iii) total capital commitments for certain real estate funds and (iv) par value of collateralized loan obligations. AUM includes amounts that are not subject to management fees, incentive income or other amounts earned on AUM. Our calculation of AUM may differ from the calculations of other asset managers, and as a result, may not be comparable to similar measures presented by other asset managers. Our calculations of AUM are not based on any definition set forth in the governing documents of the investment funds and are not calculated pursuant to any regulatory definitions.

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 Wednesday, July 31, 2024 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investors - News section of Rithm Capital’s website, www.rithmcap.com.

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 2024 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10191227/fd2708fc40.

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 7, 2024 by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code “6413013.”

Consolidated Statements of Operations (Unaudited)
($ in thousands, except share and per share data)
		Three Months Ended
		June 30, 2024				March 31, 2024 (As Restated)(A)
Revenues
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables		$	498,978			$	469,891
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(165,138) and $(116,839), respectively)			(67,898	)			84,175
Servicing revenue, net			431,080				554,066
Interest income			478,653				429,886
Gain on originated residential mortgage loans, held-for-sale, net			153,741				142,458
Other revenues			56,500				58,348
Asset management revenues			109,433				75,860
			1,229,407				1,260,618
Expenses
Interest expense and warehouse line fees			465,944				409,827
General and administrative			207,123				197,194
Compensation and benefits			270,448				235,778
			943,515				842,799
Other income (loss)
Realized and unrealized gains (losses), net			(14,769	)			(44,846	)
Other income (loss), net			19,042				7,926
			4,273				(36,920	)
Income (loss) before income taxes			290,165				380,899
Income tax expense			51,648				93,412
Net income (loss)		$	238,517			$	287,487
Noncontrolling interests in income of consolidated subsidiaries			2,961				3,452
Dividends on preferred stock			22,395				22,395
Net income (loss) attributable to common stockholders		$	213,161			$	261,640
Net income (loss) per share of common stock
Basic		$	0.44			$	0.54
Diluted		$	0.43			$	0.54
Weighted average number of shares of common stock outstanding
Basic			486,721,836				483,336,777
Diluted			490,981,282				485,931,501
Dividends declared per share of common stock		$	0.25			$	0.25

(A)		As reported in the Company’s 8-K on July 22, 2024, the Company is restating its prior period financial statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 and as of and for each of the quarters within 2023 and 2022 as well as the quarter ended March 31, 2024 (the “Restatement”) due to the need to consolidate certain mortgage securitization trusts (the “Trusts”). The Restatement relates to a change in the accounting treatment of the Trusts from investments in nonconsolidated VIEs to consolidated VIEs as well as other immaterial adjustments. This resulted in a gross up of the VIEs’ assets and liabilities on the Company’s consolidated balance sheets as well as reclassifying certain items on the Company’s consolidated statements of operations and cash flows for the relevant periods. Accordingly, the information presented herein designated “As Restated” reflects adjustments to previously presented financial information in connection with the Restatement.
		See the Company’s 8-K filed with the Securities and Exchange Commission (“SEC”) on July 22, 2024 for a discussion of the Restatement. The Company plans to file an amendment to its Annual Report on Form 10-K for the year ended December 31, 2023 and to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 which will contain a detailed reconciliation to the previously reported amounts and a detailed description of the adjustments thereon.

Consolidated Balance Sheets
($ in thousands, except share data)
		June 30, 2024 (Unaudited)				March 31, 2024 (Unaudited) (As Restated)(A)
Assets
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value		$	9,693,331			$	8,706,723
Government and government-backed securities ($9,300,237 and $14,038,866 at fair value, respectively)			9,325,097				14,063,751
Residential mortgage loans, held-for-investment, at fair value			368,866				365,398
Residential mortgage loans, held-for-sale ($3,837,929 and $3,691,700 at fair value, respectively)			3,910,823				3,766,115
Consumer loans, held-for-investment, at fair value			946,367				1,103,799
Single-family rental properties			1,025,324				1,007,172
Mortgage loans receivable, at fair value			2,049,266				2,042,913
Residential mortgage loans subject to repurchase			1,905,625				1,845,889
Cash and cash equivalents			1,238,736				1,136,437
Restricted cash			296,955				382,939
Servicer advances receivable			2,774,510				2,586,409
Reverse repurchase agreement			—				3,040,756
Other assets ($2,024,740 and $1,918,496 at fair value, respectively)			4,251,186				3,905,221
Assets of consolidated CFEs(B):
Investments and other assets of consolidated entities			4,232,803				3,982,059
Total Assets		$	42,018,889			$	47,935,581
Liabilities and Equity
Liabilities
Secured financing agreements		$	15,179,900			$	18,271,046
Secured notes and bonds payable ($205,286 and $221,922 at fair value, respectively)			9,955,891				9,721,313
Residential mortgage loan repurchase liability			1,905,625				1,845,889
Unsecured notes, net of issuance costs			1,197,294				1,205,411
Payable for investments purchased			—				1,271,542
Treasury securities payable			—				2,992,477
Dividends payable			139,004				135,695
Accrued expenses and other liabilities ($487,785 and $33,586 at fair value, respectively)			2,644,728				1,884,527
Liabilities of consolidated CFEs(B):
Notes payable, at fair value and other liabilities			3,575,833				3,364,309
Total Liabilities			34,598,275				40,692,209
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, 489,732,422 and 483,477,713 issued and outstanding, respectively			4,897				4,836
Additional paid-in capital			6,162,872				6,075,080
Retained earnings (accumulated deficit)			(143,185	)			(232,119	)
Accumulated other comprehensive income			44,755				44,501
Total Rithm Capital stockholders’ equity			7,326,593				7,149,552
Noncontrolling interests in equity of consolidated subsidiaries			94,021				93,820
Total Equity			7,420,614				7,243,372
Total Liabilities and Equity		$	42,018,889			$	47,935,581

(A)		As reported in the Company’s 8-K on July 22, 2024, the Company is restating its prior period financial statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 and as of and for each of the quarters within 2023 and 2022 as well as the quarter ended March 31, 2024 (the “Restatement”) due to the need to consolidate certain mortgage securitization trusts (the “Trusts”). The Restatement relates to a change in the accounting treatment of the Trusts from investments in nonconsolidated VIEs to consolidated VIEs as well as other immaterial adjustments. This resulted in a gross up of the VIEs’ assets and liabilities on the Company’s consolidated balance sheets as well as reclassifying certain items on the Company’s consolidated statements of operations and cash flows for the relevant periods. Accordingly, the information presented herein designated “As Restated” reflects adjustments to previously presented financial information in connection with the Restatement.
		See the Company’s 8-K filed with the Securities and Exchange Commission (“SEC”) on July 22, 2024 for a discussion of the Restatement. The Company plans to file an amendment to its Annual Report on Form 10-K for the year ended December 31, 2023 and to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 which will contain a detailed reconciliation to the previously reported amounts and a detailed description of the adjustments thereon.
(B)		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.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP NET INCOME

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

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

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

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

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

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

		Three Months Ended
		June 30, 2024				March 31, 2024
Net income (loss) attributable to common stockholders		$	213,161			$	261,640
Adjustments:
Realized and unrealized (gains), net, including MSR change in valuation inputs and assumptions			(71,480	)			(131,638	)
Other (income) loss, net			48,434				9,134
Computershare Mortgage Acquisition:
Bargain purchase gain			(28,161	)			—
Non-recurring acquisition and restructuring expenses			14,936				—
Non-capitalized transaction-related expenses			7,775				3,472
Deferred taxes			46,451				90,628
Earnings available for distribution		$	231,116			$	233,236
Net income (loss) per diluted share		$	0.43			$	0.54
Earnings available for distribution per diluted share		$	0.47			$	0.48
Weighted average number of shares of common stock outstanding, diluted			490,981,282				485,931,501

SEGMENT INFORMATION
($ in thousands)
Second Quarter 2024		Origination and Servicing				Investment Portfolio				Mortgage Loans Receivable				Asset Management			Corporate				Total
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables		$	442,016			$	56,962			$	—			$	—		$	—			$	498,978
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(165,138))			(127,401	)			59,503				—				—			—				(67,898	)
Servicing revenue, net			314,615				116,465				—				—			—				431,080
Interest income			178,445				235,662				59,573				4,971			2				478,653
Gain on originated residential mortgage loans, held-for-sale, net			155,771				(2,030	)			—				—			—				153,741
Other investment portfolio revenues			—				56,500				—				—			—				56,500
Asset management revenues			—				—				—				109,433			—				109,433
Total revenues			648,831				406,597				59,573				114,404			2				1,229,407
Interest expense and warehouse line fees			152,477				254,331				29,106				8,333			21,697				465,944
General and administrative			91,057				60,704				6,306				31,440			17,616				207,123
Compensation and benefits			184,853				3,478				9,113				51,982			21,022				270,448
Total operating expenses			428,387				318,513				44,525				91,755			60,335				943,515
Realized and unrealized gains (losses), net			—				(41,975	)			18,739				8,467			—				(14,769	)
Other income (loss), net			27,293				(8,810	)			(2,116	)			2,675			—				19,042
Total other income (loss)			27,293				(50,785	)			16,623				11,142			—				4,273
Income (loss) before income taxes			247,737				37,299				31,671				33,791			(60,333	)			290,165
Income tax expense (benefit)			38,960				2,909				1,952				7,827			—				51,648
Net income (loss)			208,777				34,390				29,719				25,964			(60,333	)			238,517
Noncontrolling interests in income (loss) of consolidated subsidiaries			1,016				1,110				—				835			—				2,961
Dividends on preferred stock			—				—				—				—			22,395				22,395
Net income (loss) attributable to common stockholders		$	207,761			$	33,280			$	29,719			$	25,129		$	(82,728	)		$	213,161
Total Assets		$	16,264,142			$	21,273,775			$	2,817,309			$	1,637,511		$	26,152			$	42,018,889
Total Rithm Capital Stockholders' Equity		$	3,998,447			$	3,117,670			$	732,061			$	695,882		$	(1,217,467	)		$	7,326,593

First Quarter 2024 (As Restated) (A)		Origination and Servicing				Investment Portfolio				Mortgage Loans Receivable				Asset Management				Corporate				Total
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables		$	397,478			$	72,413			$	—			$	—			$	—			$	469,891
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839))			93,361				(9,186	)			—				—				—				84,175
Servicing revenue, net			490,839				63,227				—				—				—				554,066
Interest income			140,021				225,143				64,720				—				2				429,886
Gain on originated residential mortgage loans, held-for-sale, net			145,869				(3,411	)			—				—				—				142,458
Other investment portfolio revenues			—				58,348				—				—				—				58,348
Asset management revenues(B)			—				—				—				75,860				—				75,860
Total revenues			776,729				343,307				64,720				75,860				2				1,260,618
Interest expense and warehouse line fees			131,174				228,074				32,414				7,621				10,544				409,827
General and administrative			83,564				66,997				4,754				31,935				9,944				197,194
Compensation and benefits			153,806				4,743				11,303				63,112				2,814				235,778
Total operating expenses			368,544				299,814				48,471				102,668				23,302				842,799
Realized and unrealized gains (losses), net			—				(62,570	)			24,566				(6,842	)			—				(44,846	)
Other income (loss), net			(36	)			3,682				274				3,969				37				7,926
Total other income (loss)			(36	)			(58,888	)			24,840				(2,873	)			37				(36,920	)
Income (loss) before income taxes			408,149				(15,395	)			41,089				(29,681	)			(23,263	)			380,899
Income tax expense (benefit)			96,201				1,248				(333	)			(3,704	)			—				93,412
Net income (loss)			311,948				(16,643	)			41,422				(25,977	)			(23,263	)			287,487
Noncontrolling interests in income (loss) of consolidated subsidiaries			55				2,037				—				1,360				—				3,452
Dividends on preferred stock			—				—				—				—				22,395				22,395
Net income (loss) attributable to common stockholders		$	311,893			$	(18,680	)		$	41,422			$	(27,337	)		$	(45,658	)		$	261,640
Total Assets		$	15,001,011			$	28,672,548			$	2,689,844			$	1,529,360			$	42,818			$	47,935,581
Total Rithm Capital Stockholders' Equity		$	4,076,767			$	2,949,982			$	688,211			$	607,437			$	(1,172,845	)		$	7,149,552

(A)		As reported in the Company’s 8-K on July 22, 2024, the Company is restating its prior period financial statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 and as of and for each of the quarters within 2023 and 2022 as well as the quarter ended March 31, 2024 (the “Restatement”) due to the need to consolidate certain mortgage securitization trusts (the “Trusts”). The Restatement relates to a change in the accounting treatment of the Trusts from investments in nonconsolidated VIEs to consolidated VIEs as well as other immaterial adjustments. This resulted in a gross up of the VIEs’ assets and liabilities on the Company’s consolidated balance sheets as well as reclassifying certain items on the Company’s consolidated statements of operations and cash flows for the relevant periods. Accordingly, the information presented herein designated “As Restated” reflects adjustments to previously presented financial information in connection with the Restatement.
		See the Company’s 8-K filed with the Securities and Exchange Commission (“SEC”) on July 22, 2024 for a discussion of the Restatement. The Company plans to file an amendment to its Annual Report on Form 10-K for the year ended December 31, 2023 and to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 which will contain a detailed reconciliation to the previously reported amounts and a detailed description of the adjustments thereon.
(B)		Includes $4.9 million of asset management related interest income.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

ABOUT RITHM CAPITAL

Rithm Capital is a global asset manager focused on real estate, credit and financial services. Rithm makes direct investments and operates several wholly-owned operating businesses. Rithm’s businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC and Genesis Capital LLC, leading mortgage origination and servicing platforms. Rithm Capital seeks to generate attractive risk-adjusted returns across market cycles and interest rate environments. Since inception in 2013, Rithm has delivered approximately $5.4 billion in dividends to shareholders. Rithm is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731004718/en/

Investor Relations

212-850-7770

IR@RithmCap.com

Source: Rithm Capital Corp.

FAQ

What were Rithm Capital's earnings for Q2 2024?

Rithm Capital reported GAAP net income of $213.2 million or $0.43 per diluted share for Q2 2024.

What was the common dividend declared by Rithm Capital for Q2 2024?

Rithm Capital declared a common dividend of $0.25 per share, totaling $122.4 million.

What is the book value per common share for Rithm Capital as of Q2 2024?

The book value per common share was $12.39 as of June 30, 2024.

How did Rithm Capital's MSR portfolio perform in Q2 2024?

The MSR portfolio totaled $645 billion in unpaid principal balance, up from $587 billion in Q1 2024.

What was the impact of the Computershare Mortgage Services acquisition on Rithm Capital?

The acquisition added $56 billion in MSRs and $98 billion in third-party servicing UPB.

What was the pre-tax income from Newrez Origination & Servicing in Q2 2024?

Newrez Origination & Servicing segment reported a pre-tax income of $247.7 million in Q2 2024.