EX-99.1 2 ritm-20241231x8xkxex991.htm EX-99.1 Document
Exhibit 99.1
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Rithm Capital Corp. Announces Fourth Quarter and Full Year 2024 Results

NEW YORK - (BUSINESS WIRE) — Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the fourth quarter ended and full year ended December 31, 2024:

Fourth Quarter 2024 Financial Highlights:

•GAAP net income of $263.2 million, or $0.50 per diluted common share(1)
•Earnings available for distribution of $315.8 million, or $0.60 per diluted common share(1)(2)
•Common dividend of $130.2 million, or $0.25 per common share
•Book value per common share of $12.56(1)

Full Year 2024 Financial Highlights:

•GAAP net income of $835.0 million, or $1.67 per diluted common share(1)
•Earnings available for distribution of $1.1 billion, or $2.10 per diluted common share(1)(2)
•Common dividend of $503.4 million, or $1.00 per common share

Q4 2024Q3 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 secured financing backed by mortgage servicing rights (“MSRs”), a first-of-its-kind non-recourse term financing of MSRs

•Newrez
•Origination & Servicing segment pre-tax income of $280.2 million in Q4’24, excluding the MSR mark-to-market and related hedge impact of $204.5 million, up from $250.7 million in Q3’24, excluding the MSR mark-to-market gain and related hedge impact of $(235.5) million
•Generated a 20% pre-tax return on equity (“ROE”) on $5.6 billion of equity(3)(4)
•Total servicing unpaid principal balance (“UPB”) of $844 billion, an increase of 32% YoY, including $254 billion UPB of third-party servicing, an increase of 129% YoY
•Origination funded production volume of $17.3 billion, an increase of 9% QoQ and 94% YoY

•Genesis
•Residential Transitional Lending segment pre-tax income of $3.5 million
•Origination volume of $1.2 billion, an increase of 101% YoY
•Grew number of sponsors to 140, reflecting 14% growth YoY

•Sculptor
•Approximately $34 billion of assets under management (“AUM”) at December 31, 2024(5)
•Closed an additional $1.0 billion in Q4’24 for Real Estate Fund V, bringing total commitments to $2.3 billion through 2024, focused on opportunistic real estate investments
•Accelerated momentum in Non-Traded REIT (SDREIT) strategy bringing pro forma AUM to $500 million(6)

(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 $204.5 million.

(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 $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’s previous $200 million common stock repurchase program and $100 million preferred stock repurchase program, which expired on December 31, 2024.


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 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 Fourth Quarter and Full Year 2024 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10196455/fe67242f28.

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 U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code “9354317.”


Rithm Capital Corp. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
($ in thousands, except share and per share data)

Three Months EndedYear Ended December 31,
December 31,
2024		September 30,
2024		20242023
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 $(180,480), $(139,784), $(602,241) and $(518,978), respectively)
563,484 (747,335)(167,574)(565,684)
Servicing revenue, net1,094,763 (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, net201,641 184,695 682,535 533,477 
Other revenues55,412 57,212 227,472 236,167 
Asset management revenues258,871 81,039 520,294 82,681 
2,100,950 619,514 5,210,489 3,762,187 
Expenses
Interest expense and warehouse line fees449,386 510,168 1,835,325 1,401,327 
General and administrative232,381 215,329 867,236 761,102 
Compensation and benefits362,869 265,673 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), net11,227 3,851 57,255 (40,377)
(563,717)416,804 (164,351)(59,833)
Income before Income Taxes492,597 45,148 1,208,809 752,833 
Income tax expense (benefit)200,690 (78,433)267,317 122,159 
Net Income291,907 123,581 941,492 630,674 
Noncontrolling interests in income of consolidated subsidiaries1,737 1,839 9,989 8,417 
Dividends on preferred stock26,948 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
Basic520,271,165 491,362,857 495,479,956 481,934,951 
Diluted526,279,952 496,800,687 499,597,670 483,716,715 
Dividends Declared per Share of Common Stock$0.25 $0.25 $1.00 $1.00 






Rithm Capital Corp. and Subsidiaries
Consolidated Balance Sheets
($ 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 ($9,711,346 and $8,533,130 at fair value, respectively)
9,736,116 8,557,683 
Residential mortgage loans, held-for-investment, at fair value361,890 379,044 
Residential mortgage loans, held-for-sale ($4,307,571 and $2,461,865 at fair value, respectively)
4,374,241 2,540,742 
Consumer loans, held-for-investment, at fair value665,565 1,274,005 
Single-family rental properties1,028,295 1,001,928 
Residential transition loans, at fair value2,178,075 1,879,319 
Residential mortgage loans subject to repurchase2,745,756 1,782,998 
Cash and cash equivalents1,458,743 1,287,199 
Restricted cash308,443 378,048 
Servicer advances receivable3,198,921 2,760,250 
Reverse repurchase agreement— 1,769,601 
Other assets ($2,380,475 and $2,005,782 at fair value, respectively)
4,631,911 3,948,852 
Assets of consolidated CFEs(A):
Investments, at fair value and other assets4,167,814 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 ($185,460 and $235,770 at fair value, respectively)
10,298,075 10,360,188 
Residential mortgage loan repurchase liability2,745,756 1,782,998 
Unsecured notes, net of issuance costs1,204,220 719,004 
Treasury securities payable— 1,827,281 
Dividends payable153,114 135,897 
Accrued expenses and other liabilities ($525,486 and $51,765 at fair value, respectively)
2,630,771 2,065,761 
Liabilities of consolidated CFEs(A):
Notes payable, at fair value and other liabilities3,476,728 3,163,634 
Total Liabilities37,291,131 32,616,046 
Commitments and Contingencies
Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 issued and outstanding, $1,299,104 aggregate liquidation preference
1,257,254 1,257,254 
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 520,656,256 and 483,226,239 issued and outstanding, respectively
5,206 4,833 
Additional paid-in capital6,528,613 6,074,322 
Accumulated deficit(46,985)(373,141)
Accumulated other comprehensive income50,886 43,674 
Total Rithm Capital stockholders’ equity7,794,974 7,006,942 
Noncontrolling interests in equity of consolidated subsidiaries91,336 94,096 
Total Equity7,886,310 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, 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.












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 EndedYear Ended December 31,
December 31,
2024		September 30,
2024		20242023
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, net34,707 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 taxes197,360 (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, diluted526,279,952 496,800,687 499,597,670 483,716,715 































SEGMENT INFORMATION
($ in thousands)

Fourth Quarter Ended December 31, 2024
Origination and ServicingInvestment PortfolioResidential Transitional LendingAsset ManagementCorporate CategoryTotal
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 $(180,480))
563,484 — — — — 563,484 
Servicing revenue, net1,094,763 — — — — 1,094,763 
Interest income341,306 72,051 67,278 9,625 3 490,263 
Gain on originated residential mortgage loans, held-for-sale, net198,753 2,888 — — — 201,641 
Other revenues28,676 26,736 — — — 55,412 
Asset management revenues— — — 258,871 — 258,871 
Total Revenues1,663,498 101,675 67,278 268,496 3 2,100,950 
Interest expense and warehouse line fees322,889 59,552 29,898 12,077 24,970 449,386 
Other segment expenses142,080 22,317 7,921 28,595 6,961 207,874 
Compensation and benefits179,494 2,609 17,384 155,397 7,985 362,869 
Depreciation and amortization10,237 5,069 1,567 7,613 21 24,507 
Total Operating Expenses654,700 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), net4,942 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 Taxes484,715 (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 subsidiaries636 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 and ServicingInvestment PortfolioResidential Transitional LendingAsset ManagementCorporate CategoryTotal
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 $(139,784))
(747,335)— — — — (747,335)
Servicing revenue, net(254,164)— — — — (254,164)
Interest income391,220 87,969 66,262 5,281 — 550,732 
Gain on originated residential mortgage loans, held-for-sale, net171,700 12,995 — — — 184,695 
Other revenues30,280 26,932 — — — 57,212 
Asset management revenues— — — 81,039 — 81,039 
Total Revenues339,036 127,896 66,262 86,320 — 619,514 
Interest expense and warehouse line fees370,641 79,885 34,304 8,243 17,095 510,168 
Other segment expenses126,058 19,297 3,731 19,794 11,634 180,514 
Compensation and benefits181,343 288 9,520 58,267 16,255 265,673 
Depreciation and amortization15,093 10,632 1,567 7,523 — 34,815 
Total Operating Expenses693,135 110,102 49,122 93,827 44,984 991,170 
Realized and unrealized gains (losses), net379,946 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 Taxes15,221 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 subsidiaries847 (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 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 $5.6 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.


Investor Relations
212-850-7770
ir@rithmcap.com