Core Insights - The article discusses the impact of mortgage refinancing activity on Rithm Capital (RITM), highlighting that a slowdown in refinancing is beneficial for the company due to its significant holdings in mortgage service rights (MSRs) [3][6]. Company Overview - Rithm Capital has strategically acquired a large stockpile of MSRs, which increase in value as interest rates stabilize or rise [3][6]. - The company recently raised its dividend by 25%, increasing the yield-on-cost from 7.6% to 9.5%, reflecting strong income growth [7]. Financial Performance - RITM reported earnings of $0.60 per share in its most recent quarter, surpassing Wall Street's expectations of $0.44, indicating robust financial health [9]. - The company has provided substantial cash dividends, totaling $3.25 on a purchase price of $10.46, resulting in a total return of 48% over 3.5 years [7]. Market Conditions - Current mortgage rates remain high, above 6%, contributing to a stagnant housing market and reduced mortgage activity, which is favorable for RITM [8]. - The acquisition of Sculptor Asset Management, which manages $34 billion in assets, adds a new revenue stream through fees, enhancing RITM's financial position [9]. Investor Sentiment - Hedge funds have begun to recognize the value of RITM's dividend offerings, adding 2 million shares in the latest quarter, indicating strong institutional interest [10].

Core Insights - Rithm (RITM) reported a revenue of $2.1 billion for the quarter ended December 2024, marking a year-over-year increase of 196.1% and exceeding the Zacks Consensus Estimate by 70.97% [1] - The earnings per share (EPS) for the same period was $0.60, up from $0.51 a year ago, representing a surprise of 33.33% over the consensus estimate of $0.45 [1] Revenue Breakdown - Interest income was reported at $490.26 million, which is a year-over-year increase of 7.9%, but below the average estimate of $515.93 million [4] - Gain on originated residential mortgage loans, held-for-sale, net was $201.64 million, reflecting a significant year-over-year increase of 105.5% and surpassing the average estimate of $173.93 million [4] - Other revenues totaled $55.41 million, slightly below the estimated $58.85 million [4] - Asset management revenues reached $258.87 million, significantly exceeding the average estimate of $101.17 million [4] - Servicing revenue, net was reported at $1.09 billion, far exceeding the average estimate of $390.39 million [4] Stock Performance - Rithm's shares have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Rithm Capital Quarterly Supplement SUM OF THE PARTS DISCLOSURE. Any information contained in this presentation about sum of the parts and illustrative valuations is "forward-looking" and utilizes hypothetical data and several management assumptions to provide an illustrative sum of the parts analysis and illustrative valuation estimates for Rithm's potential market valuation. It is important for readers to know that this illustrative analysis is not intended to be a prediction of the performance of Rithm, i ...

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $263 million for Q4 2024, translating to $0.50 per diluted share, with a return on equity of 16% [18] - For the full fiscal year 2024, GAAP net income was $835 million or $1.67 per diluted share, with a 14% return on equity [19] - Earnings available for distribution (EAD) for Q4 was $316 million or $0.60 per diluted share, and for the full year, it was $1.05 billion or $2.10 per diluted share [19][18] - The book value at the end of the year was $12.56, unchanged from the prior year [18] Business Line Data and Key Metrics Changes - NewRez, the mortgage company, reported a pretax income of approximately $280 million for Q4, a 12% increase quarter-over-quarter, and a 20% return on equity [41] - The total servicing portfolio for NewRez reached $844 billion, making it the third-largest servicer in the U.S. [41] - Genesis Capital, acquired in December 2021, increased its origination from $2 billion to $3.6 billion, with EBITDA growing from $40 million to around $100 million [76] Market Data and Key Metrics Changes - The company has a combined asset management of approximately $80 billion, with Rithm managing $45 billion and Sculptor managing $35 billion [71] - The company achieved 76% earnings growth since Q1 2021 [72] Company Strategy and Development Direction - The company aims to grow its third-party asset management business while shrinking its balance sheet [82] - Plans to launch a global energy infrastructure platform to supply power to data centers, indicating a focus on energy transition [85] - The company is exploring changes in its capital structure, including the potential listing of NewRez [115][118] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning, emphasizing the importance of performance in driving growth [78] - The company is focused on maintaining operational efficiency and leveraging technology to enhance financial performance [100] - Management noted that the benign credit cycle may eventually turn, which could impact the business [11] Other Important Information - The company has been actively involved in asset-based finance, identifying it as a significant opportunity in the market [84] - The company is positioned to capitalize on dislocations in the commercial real estate market through Rithm Property Trust [83] Q&A Session Summary Question: Could you give us any updated thoughts on the potential listing of NewRez in 2025? - Management indicated that they are not ready to list NewRez yet but are working on segment reporting to provide clarity on its performance [115] - They emphasized the need to grow the REIT and improve the capital structure before considering a listing [117] Question: Is the timeline for the listing likely to extend beyond 2025? - Management expressed a desire to achieve this in 2024 but acknowledged that it may extend to 2025 depending on growth and structural changes [121]

Rithm (RITM) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.43 per share when it actually produced earnings of $0.54, delivering a surprise of 25.58%.Over the last four quarters, t ...

Exhibit 99.1 Renewal of Stock Repurchase Program: The Company announced today that its Board of Directors authorized stock repurchase programs of up to $200 million of shares of the Company's common stock (the "common stock repurchase program"), and up to $100 million of shares of the Company's preferred stock (the "preferred stock repurchase program" and, together with the common stock repurchase program, the "repurchase programs"), through December 31, 2025. The new repurchase programs replace the Company ...

Global asset manager Rithm Capital Corp. (RITM) is set to report fourth-quarter 2024 results on Feb. 6, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 45 cents per share on revenues of $1.23 billion. See the Zacks Earnings Calendar to stay ahead of market-making news.The fourth-quarter earnings estimate has remained stable over the past 60 days. However, the bottom-line projection indicates a year-over-year decline of 11.8%. Meanw ...

Rithm (RITM) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 6. On ...

Rithm Capital Corporation (NYSE: RITM ) is a mortgage real estate investment trust (mREIT) with various diversified business segments. Despite a de-risking effort through diversified sources of revenue, all the segments are heavily tied to the real estate sector and are exposed toType-F Capital specializes in identifying businesses that fit our definition of a true “fortress business.” As the term suggests, these companies boast high barriers to entry, command exceptional margins, prove difficult to disrupt ...

Rithm (RITM) closed the most recent trading day at $11.34, moving -0.61% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.47% for the day. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 0.51%.The real estate investment trust's shares have seen an increase of 5.36% over the last month, surpassing the Finance sector's gain of 4.45% and the S&P 500's gain of 1.67%.Market participants will be closely following the finan ...