Rithm Capital Corp. (RITM)
Rithm (RITM) Registers a Bigger Fall Than the Market: Important Facts to Note
The latest trading day saw Rithm (RITM) settling at $9.95, representing a -1.29% change from its previous close.
RITM: A 10% Yield Built For Higher Rates
Rithm Capital (RITM) offers a 10% dividend yield, well-covered by earnings, making it compelling for income-focused investors in a high-rate environment. RITM's diversified business model, driven by servicing, residential transitional lending, and investment portfolio segments, differentiates it from traditional mREITs. Elevated interest rates enhance the value of RITM's mortgage servicing rights, but commercial real estate exposure and earnings volatility remain notable risks.
Why Is Rithm (RITM) Up 0.9% Since Last Earnings Report?
Rithm (RITM) reported earnings 30 days ago. What's next for the stock?
Can Rithm Sustain Its 9.6% Yield as Costs and Liquidity Risks Rise?
Can RITM sustain its 9.6% dividend yield as rising costs and liquidity risks pressure its earnings? Let us discuss.
Is Rithm Worth Buying as Low Valuation Meets Rising Cost Pressures?
Is RITM worth buying as its low valuation and broadening earnings base contend with higher expenses, limited liquidity and MSR risks? Let's discuss.
Rithm Rallies 12.2% in a Month as Asset Management Gains Momentum
Can RITM sustain its 12.2% one-month gain as asset management growth and Newrez efficiency gains offset liquidity and MSR risks? Let's discuss.
Rithm Capital: 240% Coverage, 10% Yield, 17% BV Discount
Rithm Capital delivered strong Q2 distributable earnings, exceeding estimates and reflecting robust growth in asset management and mortgage investment segments. RITM benefits from a higher-for-longer rate environment, with its mortgage servicing rights portfolio set to gain in value as rates remain elevated. Shares trade at a 17% discount to book value, offering a favorable setup for high-yield investors amid ongoing business diversification.
9.2% Dividend Yield: Good But Not Good Enough From Rithm Capital
Rithm Capital preferreds offer similar credit risk, but RITM-C is least attractive on a relative valuation basis. RITM-C trades at 101.3% of the buy target, with a stripped yield of 9.16%, lagging RITM-B and RITM-A. RITM-B and RITM-A offer materially higher yields for similar risk, making them more compelling choices at current prices.
Rithm Capital: The Dividend Looks Safer Than The Stock Price Suggests
Rithm Capital Corp. delivered strong Q2 distributable earnings, covering its $0.25 dividend by 2.4x and supporting a Buy rating. RITM trades at about 0.8x book value, with the market underappreciating its platform diversification beyond traditional mortgage REIT activities. Asset management AUM rose to $61B, and business lines like Newrez and Genesis showed momentum, strengthening the investment case.
Rithm Capital Q2 Earnings Beat Estimates, Revenues Up Y/Y
RITM beats Q2 earnings estimates as higher asset management revenues and origination volumes are offset by weaker servicing revenues and higher expenses.
Rithm Capital: In The Dividend Space, The Transformation Is Still Mispriced (Earnings Review)
Rithm Capital reported a strong Q2, with EAD of $0.60 per share, supporting a 19.7% ROE and a secure 10%+ dividend yield. RITM's diversified platform—mortgage origination/servicing, real estate private credit, and asset management—positions it for a potential valuation rerating if reclassified as an asset manager. Newrez posted a 212% QoQ earnings increase and Genesis achieved record originations, while asset management AUM surpassed $61B, driving fee-based growth.
Rithm Capital Q2 Earnings Call Highlights
Rithm Capital NYSE: RITM reported second-quarter earnings available for distribution of $338.9 million, or $0.60 per diluted share, while GAAP net income was $20.2 million, or $0.04 per diluted share. Chairman, Chief Executive Officer and President Michael Nierenberg said results reflected contributions from the company's Newrez mortgage business, Genesis Capital lending platform, Sculptor and Crestline asset-management businesses, and Elecor Properties real estate portfolio.
