Rithm Capital NYSE: RITM reported third-quarter earnings available for distribution of $315 million, or $0.55 per diluted share, while GAAP net income totaled $217 million, or $0.38 per diluted share. Chairman, Chief Executive Officer and President Michael Nierenberg said the company’s earnings available for distribution exceeded dividends paid for the 28th consecutive quarter.
The company reported book value of approximately $7 billion and said its common dividend was $0.25 per diluted share, representing an 11.2% yield cited during the call. Rithm ended the quarter with $1.9 billion of cash and liquidity.
Nierenberg said the quarter occurred amid wider market spreads, higher interest rates and persistent geopolitical concerns. He attributed the company’s performance to its operating businesses, including mortgage platform Newrez and residential transition lender Genesis, as well as risk management and hedging activities.
Mortgage platform delivers 24% operating ROE
Newrez generated approximately $330 million in third-quarter pretax income excluding mark-to-market items, up 7% from the prior quarter, according to Newrez President Baron Silverstein. The mortgage business produced a 24% annualized operating return on equity during the quarter and has delivered annualized operating ROEs in the high teens to low 20% range for 15 consecutive quarters, he said.
Newrez funded $12.9 billion of mortgages during the quarter, down 19% sequentially as higher interest rates reduced overall industry origination volumes. However, non-agency origination volumes rose 8% quarter over quarter and 30% year over year. Rithm said Newrez originated $5.1 billion of non-agency loans year to date, primarily in the non-QM category, a record for that product class.
Silverstein said the company continued to emphasize pricing discipline rather than pursuing market share. He noted that Newrez’s consumer-direct margin improvement reflected product mix, including fewer refinances and more home equity and non-QM loans, while competition continued to pressure wholesale margins.
Newrez’s servicing platform included approximately $879 billion to $880 billion of mortgage servicing rights at quarter-end. The company added 15 new third-party servicing clients and approximately $80 billion of new loan boardings year to date. Silverstein said prepayment speeds were approaching a floor, given normal turnover related to life events and loan seasoning.
Rithm expects technology and artificial intelligence investments to generate approximately $125 million in annualized savings at Newrez. The company said straight-through processing for eligible loans through its HomeVision co-development is expected to launch in the fourth quarter, while phased migration to ValonOS is expected in the first quarter of 2027. Nierenberg said the benefits of those initiatives are expected to begin emerging in 2027 and continue through 2028.
Asset management inflows and expansion plans
Rithm said it managed more than $60 billion of third-party assets and roughly $110 billion of investable assets when including its balance sheet. The company raised $569 million of new asset-management capital during the quarter and reported nearly $3 billion of year-to-date gross inflows. Fee-paying assets under management represented about 76% of total AUM.
Nierenberg said Crestline completed the final close of its European Capital Solutions Fund with $625 million of commitments. He also said Rithm completed a first close for a new asset-backed finance fund with a U.S. pension fund and is seeing demand for asset-backed finance, residential credit, separately managed accounts, real estate and multi-strategy products.
The company expects organic asset-management growth to lift AUM to between $75 billion and $80 billion by the end of 2028. Nierenberg said Rithm also continues to evaluate acquisitions and views infrastructure as a potential future area of expansion, though he said the company would seek a scaled platform rather than build the business with only a small team.
Real estate leasing activity accelerates
At Elecor Properties, formerly Paramount, Rithm reported approximately 1 million square feet of executed and pending leases year to date across its New York and San Francisco core portfolios. The weighted average initial rent was approximately $100 per square foot, 22% above the comparable rate for 2025 transactions.
Head of Real Estate Peter Brindley said Elecor signed 320,000 square feet of new leases during the quarter and formed a joint venture with a strategic partner for 1301 Avenue of the Americas. The building is currently 100% leased following a 113,000-square-foot renewal and expansion by a financial institution.
Elecor’s New York core portfolio was 88.6% leased at quarter-end. In San Francisco, leased occupancy reached 65%, up 590 basis points from the first quarter of 2026. Brindley said about 65% of the company’s year-to-date leasing occurred in San Francisco, with 96% involving companies new to the portfolio.
Nierenberg also highlighted the sale of an office property in Ballston, Virginia, acquired for approximately $26 million to $27 million and sold during the third quarter for more than $50 million. He said the transaction generated a 30% internal rate of return and a 1.6-times multiple on invested capital.
Genesis targets selective growth
Genesis originated $1.5 billion of residential transition loans during the quarter, bringing year-to-date originations to $5 billion and above its full-year 2025 total. The business generated $33 million of pretax income, up 14% year over year, and an annualized ROE of about 13%.
Nierenberg said Genesis expects total production of roughly $6 billion to $6.5 billion, while identifying multifamily lending as a significant longer-term growth opportunity. He emphasized that Genesis is focused on loans to high-quality sponsors rather than volume growth for its own sake, noting that the platform’s delinquency rate was approximately 3%.
During the question-and-answer session, Nierenberg said Rithm expects its book value to be roughly unchanged quarter to date. He said the company intends to deploy its balance sheet selectively, including to support its origination businesses and asset-management products, while bringing in third-party capital for larger opportunities.
About Rithm Capital (NYSE:RITM)
Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.
Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.
Rithm primarily serves the U.S.
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