Rithm Capital NYSE: RITM reported what Chairman, CEO and President Michael Nierenberg described as “another solid quarter,” pointing to robust activity across the firm and what he called an “extremely well-positioned” platform to take advantage of market dislocations in credit and asset-based finance (ABF).
Quarterly results and balance sheet
Reviewing first-quarter 2026 results, Nierenberg said the company generated earnings available for distribution (EAD) of $0.51 per diluted share, or $289.6 million, representing a 17% return on equity. He noted GAAP net income can be “noisy” due to hedge impacts tied to the company’s mortgage servicing rights (MSR) hedging, and said GAAP net income was $67.8 million, or $0.12 per diluted share, representing a 4% return on equity.
Rithm ended the quarter with $7 billion of book value, or $12.51 per share, according to Nierenberg. He also highlighted the company’s $0.25 per share common dividend, which he said implied a 10.5% dividend yield, and reported ending cash and liquidity of approximately $1.4 billion.
In response to an analyst question about intra-quarter trends, Nierenberg said book value was “essentially flat quarter-to-date.”
Management’s market view: credit dislocations and ABF demand
Nierenberg opened the call with a discussion of credit markets, arguing that recent private credit headlines and geopolitical risks have created sentiment-driven dislocations that could create opportunities. He said the company had not seen “any notable DQs” across its credit exposure and added, “We do not see systemic risk in private credit.”
He also addressed sector exposure, saying the firm’s software exposure remains low, and later noted that at Crestline, “only 7% of invested assets are classified in software.”
At the same time, Nierenberg emphasized that broader markets have been resilient, noting the S&P 500 at all-time highs and “robust” securitization markets with “lots of demand everywhere for ABF products.” He said Rithm completed $2 billion of securitization activity during the quarter, and reiterated that the company intends to grow its ABF business with third-party partners globally.
Asset management: Sculptor and Crestline
Nierenberg said Rithm’s asset management business manages about $60 billion for third parties. He described Sculptor and Crestline as complementary strategies and stressed a focus on performance over asset-gathering. “We are going to lead with performance,” he said, adding the firm believes there is only so much capital that can be deployed when markets offer attractive alpha opportunities.
For the quarter, Nierenberg said Rithm deployed over $2 billion in corporate credit and over $1 billion in ABF investments. He also pointed to Sculptor Real Estate Fund V committing $1 billion in the first quarter, following a fundraising of $4.6 billion for that fund. Nierenberg said Sculptor recorded $600 million of gross inflows and ended the quarter with $37 billion of AUM.
On Crestline, which Rithm closed on in December 2025, he said AUM was “a little under $20 billion.” Nierenberg said management fee revenue grew 16% year-over-year in the first quarter and described overall performance as “terrific” and above initial underwriting.
During Q&A, Nierenberg discussed fundraising and investor demand. He said the firm’s exposure to retail distribution is limited and argued recent private credit noise has been “driven by retail.” He also emphasized the company’s intent not to “sacrifice credit for AUM growth,” framing that discipline as central to capital formation going forward.
Operating businesses: Elecor, Genesis, and Newrez
Elecor Properties (formerly Paramount Group): Executive Vice President and Head of Real Estate Peter Brindley announced the rebrand to Elecor Properties, positioning it as a continuation of the focus on Class A office assets in New York and San Francisco. Brindley said the portfolio includes 10 core assets totaling 9.9 million square feet, and is currently 85.7% leased at share with an 8.4-year weighted average lease term. He said Rithm has identified operating efficiencies expected to increase annual management company EBITDA by approximately $40 million.
Brindley said year-to-date leasing executed and pending exceeds 360,000 square feet, with weighted average initial rent of $94.64 per square foot, which he said is 14.9% higher than 2025’s weighted average initial rent. He added that the New York core portfolio was 92.1% leased at quarter-end, up 470 basis points year-over-year, while San Francisco lease occupancy was 59.1%, reflecting move-outs at One Market Plaza and One Front Street.
Brindley also cited capital markets and financing activity, including Rithm’s acquisition basis of $585 per square foot. He said Elecor launched a JV process on 1301 Avenue of the Americas, and that subsequent to quarter end, the company closed a CMBS financing on 1325 Avenue of the Americas on a “cash neutral basis.”
Genesis Capital: Nierenberg said Genesis delivered its “best quarter in history,” originating $1.6 billion of total loans in the first quarter and adding 118 new sponsors. He said the company expects $6.5 billion to $7 billion of production for the full year and estimated Genesis could generate $150 million to $175 million of EBITDA in 2026. He also discussed policy-related uncertainty around build-to-rent and said Genesis is currently roughly 35% to 40% multifamily origination, with expectations for more multifamily production over time.
Newrez (mortgage): Newrez President Baron Silverstein said the mortgage platform delivered first-quarter pre-tax income (excluding mark-to-market) of approximately $274 million, up 10% quarter-over-quarter, with a 19% ROE. He attributed results to a disciplined origination strategy, higher servicing fees, and “higher recapture and lower amortization” despite interest rate volatility.
Silverstein said funded origination volume was $15.5 billion, up 31% year-over-year, but lower than the prior quarter due to seasonality and rates. He said higher-margin direct channels (consumer direct and wholesale) comprised 37% of volume in Q1 2026, up 75% year-over-year. He also cited product launches including Quick Close refinance, Wholesale Express home equity, streamlined title, crypto mortgage and medical loans, and noted a Freddie Mac VantageScore pilot.
On servicing, Silverstein said Newrez added five new clients and boarded $22 billion in new loans. He said delinquencies were stable quarter-over-quarter and FHA delinquencies “flattened” as impacts from new FHA modification guidelines normalize. He also said the company remains on track to transition to Valon’s operating system in early 2027, projecting total annual expense savings in excess of $65 million and a direct cost per loan reduction of 15% to $93.
On the investment side, Nierenberg said Rithm completed four non-QM securitizations totaling $2 billion and invested $3 billion during the quarter, including $1.4 billion in non-QM loans and $1.6 billion in residential transitional loans (RTLs). He also noted the company purchased $140 million of home improvement loans under its flow agreement with Upgrade, bringing total purchases since Q3 to $667 million.
In closing comments, Nierenberg reiterated the firm’s intent to grow in areas of core competency and emphasized a consistent theme across businesses: “We’re not gonna sacrifice credit for AUM growth.”
About Rithm Capital NYSE: RITM
Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.
In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.
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