Rithm Capital earns $0.55 a share in distributable earnings as GAAP profit rebounds

Rithm Capital's GAAP profit jumped from the prior quarter while its distributable earnings dipped, according to the real estate and asset management company's third-quarter 8-K release.

GAAP net income was $217.1 million, or $0.38 a diluted share, up from $20.2 million, or $0.04, in the second quarter. Earnings available for distribution, the company's non-GAAP measure, were $315.3 million, or $0.55 a share, down from $0.60 in the second quarter. Book value was $12.51 a share, and the common dividend held at $0.25.

Mortgage business

Newrez, Rithm's mortgage origination and servicing arm, posted pre-tax operating income of $329.7 million excluding mark-to-market gains on mortgage servicing rights, up from $307.6 million in the second quarter. It generated an annualized operating return on equity of 24%.

Origination volume fell 19% from the second quarter and 21% from a year earlier to $12.9 billion. Total servicing unpaid principal balance reached $878.9 billion.

Asset management and lending

Rithm Asset Management, which includes Sculptor Capital and Crestline, had about $61 billion of assets under management, unchanged from the second quarter. It took in $569 million of new capital commitments in the quarter and $2.9 billion so far this year.

Genesis Capital originated $1.5 billion of residential transition loans, up 25% from a year earlier. Elecor Properties, Rithm's New York and San Francisco office owner, has leased 1.0 million square feet this year and closed a joint venture for 1301 Avenue of the Americas.

"Rithm's strong third quarter results reflect disciplined execution across every part of our platform," CEO Michael Nierenberg said in the release.

By the numbers

• GAAP EPS: $0.38, versus $0.04 in Q2
• Distributable EPS: $0.55, versus $0.60 in Q2
• Book value per share: $12.51
• Dividend: $0.25 a share
• AUM: about $61 billion
• Servicing UPB: $878.9 billion

Sources

1. Rithm Capital Corp., Form 8-K with Exhibit 99.1 filed Oct. 23, 2026, accession 0001556593-26-000033

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