Rithm Capital (RITM) Reports Q3 2024 Financial Results

By Tamara Parker • Tuesday, October 29 10:25 • Permanent Link

Rithm Capital Corp. (NYSE: RITM) has released its third-quarter 2024 financial results, revealing a number of significant changes since the previous quarter. Here are the key highlights:

GAAP net income for the third quarter of 2024 was $97.0 million, or $0.20 per diluted common share, a decrease from $213.2 million, or $0.43 per diluted common share in the second quarter.
Earnings available for distribution were $270.3 million, or $0.54 per diluted common share, up from $231.1 million, or $0.47 per diluted common share in the second quarter.
The common dividend increased to $129.9 million from $122.4 million, while the common dividend per share remained stable at $0.25.
Book value per common share stood at $12.31.

In addition to these financial metrics, the company highlighted several operational achievements in the third quarter:

Rithm Capital sold 30 million shares of common stock for gross proceeds of approximately $340 million.
The total servicing portfolio reached $878 billion in unpaid principal balance as of September 30, 2024.
NewRez, a subsidiary of Rithm Capital, reported a 24% pre-tax return on equity on $4.3 billion of equity, an increase from 22% reported in the second quarter.
Genesis, another subsidiary, achieved a 26% year-over-year increase in origination volume, reaching $761 million.
Sculptor, the asset management arm, had approximately $34 billion of assets under management as of September 30, 2024.

The company's consolidated statements of operations for the third quarter of 2024 show a decline in net income compared to the second quarter, with net income attributable to common stockholders amounting to $97.0 million, down from $213.2 million.

Looking at the consolidated balance sheets, several changes are apparent:

Mortgage servicing rights and mortgage servicing rights financing receivables decreased to $9.3 billion from $9.7 billion.
Government and government-backed securities increased to $10.1 billion from $9.3 billion.
Cash and cash equivalents rose to $1.6 billion from $1.2 billion.

It's clear that Rithm Capital experienced a mixed quarter, with some financial metrics declining while others improved. The company's strategic moves, including the sale of common stock and the growth in its servicing portfolio, indicate a dynamic and evolving business landscape. The market has reacted to these announcements by moving the company's shares 2.1% to a price of $10.69. Check out the company's full 8-K submission here.

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