Core Viewpoint - Rithm Capital (NYSE: RITM) supports its dividend through distributable earnings and has a history of making accretive acquisitions, which have expanded its investment scope beyond mortgages while diversifying its revenue mix [1] Group 1 - Rithm Capital has a strong focus on maintaining its dividend through distributable earnings [1] - The company has a track record of making accretive acquisitions that enhance its investment portfolio [1] - Rithm Capital continues to diversify its revenue mix beyond traditional mortgage investments [1]

Core Insights - Rithm Capital Corp. (NYSE:RITM) is recognized as a strong candidate for high yield investments and dividend capture strategies in October [1][4]. Group 1: Company Overview - Rithm Capital Corp. is a real estate investment trust (REIT) engaged in structured finance and asset management, known for its strategic acquisitions [2]. - The company has made significant acquisitions, including Sculptor Capital Management in 2023 and a pending acquisition of Computershare Mortgage Services, aimed at increasing its assets under management (AUM) [2]. Group 2: Financial Performance - Rithm Capital's strategy emphasizes diversification and strengthening its mortgage servicing and origination platforms, contributing to its strong financial results [3]. - On September 17, Rithm declared a quarterly dividend of $0.25 per share, maintaining its consistent dividend payments for the past ten years, with a current dividend yield of 8.03% as of September 27 [4].

Core Insights - The article provides a detailed analysis comparing Rithm Capital Corp. (RITM) to 17 other mortgage real estate investment trusts (mREITs) [1][2] - The analysis focuses on RITM's recent results, dividend rates, yield percentages, and sustainability metrics [3][4] Summary of RITM's Performance - RITM's book value as of June 30, 2025, is compared to its peers, aiding in understanding its financial standing [2] - RITM declared a dividend of $0.25 per common share for Q2 2025, unchanged from the previous quarter, resulting in a trailing twelve-month (TTM) dividend yield of 8.92% [16][28] - The annual forward yield based on RITM's stock price as of June 20, 2025, is also 8.92%, while the yield based on its book value is 7.87% [16] Dividend Sustainability Analysis - RITM's dividend sustainability is assessed through its core earnings, with a current payout ratio of 46% for Q2 2025, indicating a strong ability to maintain dividends [23][24] - The article projects a very high probability (90%) of maintaining a dividend between $0.25 and $0.30 per share for Q4 2025 and Q1 2026 [30] - RITM's core earnings available for distribution (EAD) for Q1 and Q2 2025 are reported at $275.3 million and $291.1 million, respectively, with earnings per share of $0.52 and $0.54 [23] Comparative Metrics - RITM's TTM dividend yield and annual forward yield are noted to be below average compared to its peers, indicating potential for future adjustments [28] - The analysis includes a comparison of RITM's leverage ratio, which is lower than that of its peer PMT, suggesting a conservative approach to risk management [17] Future Outlook - The article anticipates a gradual increase in net interest spreads starting in late 2025, which could positively impact RITM's earnings and dividend sustainability [25] - RITM's stock price as of September 19, 2025, was $12.11, with projections indicating a price target of approximately $14.35 per share, suggesting potential for appreciation [34][37]

Core Insights - Rithm Capital (NYSE: RITM) is developing a well-diversified platform of complementary businesses aimed at transforming the internally managed mortgage REIT [1] - Recent acquisitions are viewed as strategic moves rather than distractions, indicating a focus on long-term growth [1] - Pacifica Yield is targeting long-term wealth creation by investing in undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Company Summary - Rithm Capital is positioning itself to enhance its business model through diversification and strategic acquisitions [1] - The company is focused on creating value in the equity market, leveraging daily price fluctuations for wealth generation [1] Industry Context - The equity market serves as a mechanism for wealth creation or destruction over the long term, highlighting the importance of strategic investment choices [1] - The emphasis on high-dividend stocks and green energy firms reflects a growing trend in the investment landscape towards sustainable and income-generating assets [1]

Core Viewpoint - Rithm Capital Corp. has announced a public offering of 7,600,000 shares of its 8.75% Series E Fixed-Rate Cumulative Redeemable Preferred Stock, aiming for gross proceeds of approximately $190 million before expenses [1]. Summary by Relevant Sections - **Offering Details** - The offering consists of 7,600,000 shares of Preferred Stock with a liquidation preference of $25.00 per share [1]. - The gross proceeds from the offering are expected to be around $190 million, excluding underwriting discounts and other estimated expenses [1]. - **Listing Intentions** - The Company plans to apply for the listing of the Preferred Stock on a stock exchange [1].

Core Insights - Rithm Capital Corp. (RITM) has agreed to acquire Paramount Group, Inc. (PGRE) for approximately $1.6 billion in cash, marking a strategic expansion into real estate ownership and operations [1][4][7] - The acquisition includes a portfolio of 13 owned and four managed properties, totaling over 13.1 million square feet of Class A office space, primarily located in New York City and San Francisco [3][7] - Paramount shareholders will receive $6.60 per fully diluted share, which is a significant discount compared to its previous closing price of $7.39 [2][7] Company Performance - Following the announcement, Rithm Capital's shares increased by 3.2%, while Paramount's shares fell by 11.6% [2][7] - Rithm Capital's stock has gained 15.1% year to date, outperforming the broader industry [6] Financial Metrics - The transaction is expected to be funded through Rithm Capital's available cash, balance sheet liquidity, and potentially co-investors [4] - Rithm Capital trades at a forward price-to-earnings ratio of 5.70X, significantly below the industry average of 25.60X [9] Market Context - The acquisition signals renewed institutional interest in urban office assets, particularly in gateway cities, as evidenced by recent transactions in the sector [5] - The Zacks Consensus Estimate for Rithm Capital's 2025 earnings suggests a year-over-year increase of approximately 1%, followed by a growth of 4.6% in the subsequent year [11]

Core Viewpoint - Rithm Capital Corp. has initiated an opportunistic underwritten public offering of Series E Fixed-Rate Cumulative Redeemable Preferred Stock, contingent on market conditions [1] Group 1: Offering Details - The terms of the Preferred Stock will be determined through negotiations between the Company and the underwriters [1] - The Company plans to apply for listing the Preferred Stock on the New York Stock Exchange under the symbol "RI" [1]

Summary of Rithm Capital (NYSE:RITM) M&A Announcement Company and Industry - **Company**: Rithm Capital (formerly New Residential) - **Industry**: Commercial Real Estate, specifically focusing on office properties Key Points and Arguments 1. **Acquisition Announcement**: Rithm Capital announced the acquisition of Paramount Group Inc. for $1.6 billion, equating to $6.60 per share, which is considered a significant opportunity to acquire high-quality assets at a discount to book value [3][8][9] 2. **Market Timing**: The acquisition is viewed as timely due to the anticipated recovery in the office market, with demand for Class A office space increasing as people return to work [3][4][10] 3. **Financial Metrics**: - The acquisition price represents approximately 30% of the replacement cost of the assets and 40% below pre-COVID valuation levels [4][9] - Rithm expects to have $2.5-3 billion in cash and liquidity at closing, with $490 million of cash from Paramount's balance sheet contributing to the purchase [5][9] 4. **Investment Strategy**: The deal is intended to be balance sheet-light, funded primarily through third-party capital and limited partners (LPs), with an expected equity check from Rithm of $300-500 million [4][10][28] 5. **Portfolio Details**: Paramount owns and operates 13 owned and four managed Class A office properties totaling over 13 million square feet, with 85% currently leased [8][15] 6. **Market Recovery Indicators**: - U.S. office leasing volume increased by 15% year-over-year in Q1 2025, although still 10%-20% below pre-COVID levels [16] - Manhattan leasing activity in Q2 2025 was 33% above its five-year quarterly average [16] - San Francisco saw its highest quarterly leasing total since Q2 2019 [16] 7. **Future Growth Potential**: Rithm aims to leverage this acquisition to enhance its asset management business, which currently manages approximately $100 billion in assets [11][12][13] 8. **Expected Returns**: The company projects an internal rate of return (IRR) north of 20% and a multiple of invested capital (MOIC) of 1.5 to over 2 times in the long term [32][33] Other Important Content 1. **Management and Operations**: Rithm plans to collaborate closely with Paramount's existing management team to enhance operational efficiency and shareholder value [40][41] 2. **Market Dynamics**: The New York and San Francisco markets are highlighted as having limited supply and increasing rents, driven by a return to office work and a lack of new construction [42][43] 3. **Strategic Partnerships**: Rithm has established partnerships with Green Barn Investment Group and other financial institutions to facilitate the acquisition and future growth [5][8][10] 4. **No Impact on Dividends**: The acquisition is not expected to impact Rithm's dividend policy, with announcements anticipated shortly after the acquisition [24][25] This summary encapsulates the critical aspects of Rithm Capital's acquisition of Paramount Group, highlighting the strategic rationale, financial implications, and market context surrounding the transaction.

Transaction Overview - Rithm Capital is set to acquire Paramount Group, Inc, a Class A office REIT, for approximately $1.6 billion in cash[7] - The transaction is valued at $6.60 per fully diluted share of Paramount common stock[7] - The acquisition is targeted for late Q4 2025, pending customary closing conditions and Paramount shareholder approval[7] Paramount Group Overview - Paramount's portfolio includes 13 owned and 4 managed high-quality office assets, totaling over 13.1 million square feet, with 85.4% currently leased as of June 30, 2025[7] - Paramount's properties are predominantly located in New York City and San Francisco[7, 20] - The average lease term for office leases is 7.1 years[16] Strategic Rationale - Rithm believes it is entering a dislocated sector at attractive valuations, positioned for significant upside and the opportunity to create enterprise value[9] - Real estate is valued approximately 40% below pre-COVID values and around 25-30% of replacement cost[9] - Rithm aims to expand its asset management model, generating fee-related earnings[9] Financial Position - At the expected closing time, Rithm is projected to have $2.5 – 3.0 billion of available cash and liquidity[7] - Rithm has approximately $100 billion in investable assets[11, 31]

Group 1 - Alternative asset manager Rithm Capital announced a definitive agreement to acquire the REIT Paramount Group for approximately $1.6 billion [2] - Following the announcement, Rithm Capital shares increased by 0.66% to $12.15 in pre-market trading, while Paramount Group shares fell by 11.50% to $6.54 [2]