Rithm Capital (RITM) Q3 2024 earnings summary

Executive summary

• Achieved strong results across all business lines, with record performance in lending and asset management, and total assets reaching $42.3 billion as of September 30, 2024.

• Deployed $5.8 billion since 2021, growing earnings by 60% without significant equity raises, and completed major acquisitions including Computershare and Sculptor.

• Maintained 20 consecutive quarters where earnings available for distribution exceeded common dividends paid.

• Book value per share was $12.31 at quarter end, with liquidity of $2 billion supporting future growth and risk management.

• Operates as an internally managed REIT, focusing on real estate, credit, and financial services.

Financial highlights

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

• Book value per share: $12.31 at quarter-end, currently around $12.5; market cap of $5.5 billion versus book value of $6.4 billion.

• Dividend paid: $0.25 per share; dividend yield at 8.8% as of 9/30/2024.

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

• Weighted average diluted shares outstanding: 496.8 million for Q3 2024.

Outlook and guidance

• Focused on growing AUM, expanding direct lending, and private capital business, leveraging vertically integrated platform and in-house expertise.

• Expecting continued strong performance and inflows in asset management, particularly from Sculptor.

• Anticipate little book value volatility going forward due to stable interest rate environment and hedging.

• 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.