Rithm Capital (RITM) Q3 2024 earnings summary

Executive summary

• Delivered strong Q3 2024 results with robust performance across lending, servicing, and asset management, and total assets reaching $42.3 billion.

• Earnings available for distribution exceeded common dividends for the 20th consecutive quarter.

• Book value per share was $12.31 at quarter end, with liquidity of $2.0 billion.

• Major acquisitions, including Sculptor and Computershare, expanded asset management and subservicing capabilities.

• Continued focus on prudent capital deployment, private capital growth, and expansion in direct lending.

Financial highlights

• GAAP net income for Q3 2024 was $97 million ($0.20 per diluted share); earnings available for distribution reached $270 million ($0.54 per share), with an 18% return on equity.

• Book value per share ended at $12.31, with a dividend of $0.25 per share and an 8.8% yield.

• Total revenues for Q3 2024 were $619.5 million, with interest income of $550.7 million.

• $2 billion in cash and liquidity at quarter-end.

• Capital deployment since 2021 totaled $5.8 billion, driving 59% EAD growth and 14% EAD CAGR.

Outlook and guidance

• Management expects sufficient liquidity for the next 12 months, supported by cash, operating cash flow, and ability to roll secured financings.

• Focus on expanding direct lending, private capital, and opportunistic investments, especially in commercial real estate.

• Mid-teens ROE targeted across cycles, with potential for higher returns as asset management grows.

• Regulatory capital and liquidity requirements are expected to increase, potentially lowering return on capital.

• The board will continue to evaluate dividend payments as market conditions evolve.