Rithm Capital (NYSE:RITM) just crossed $100 billion in investable assets and posted a blowout quarter, yet the stock sits near its 52-week low.
Algert Global LLC grew its holdings in shares of Rithm Capital Corp. (NYSE: RITM) by 92.4% in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,535,938 shares of the real estate investment trust's stock after acquiring an additional 737,708 shares during
The latest trading day saw Rithm (RITM) settling at $9.84, representing a +1.97% change from its previous close.
Rithm Capital (RITM) is executing a successful transition from a mortgage REIT to a diversified global alternative asset manager. RITM delivered a 19% EAD return on equity for FY25, with normalized EPS of $0.74 beating consensus by over 23%. Yet the market still values its book value with a large discount following the traditional mREIT model.
In the latest trading session, Rithm (RITM) closed at $9.95, marking a -1.39% move from the previous day.
Rithm Capital delivered robust Q4 results, with distributable earnings exceeding expectations and asset management revenues surging over 323% quarter-over-quarter. RITM's dividend is exceptionally well covered, with a Q4 coverage ratio of 296%, reflecting strong earnings and a resilient investment platform. The company's evolution into a diversified alternative asset manager, surpassing $100B in investable assets, underpins its high-quality, high-yield profile.
Rithm Capital may be the best-managed mREIT. RITM has greatly outperformed the sector over the last 5 years and pays a nice dividend yield of 9.45%. RITM has been focusing on becoming a large asset manager and moving away from simply being an mREIT. This means a likely conversion to a C corporation structure. A change to a C corporate structure means that dividends on its preferred stocks would become “qualified,” giving RITM preferred stocks huge after-tax yields.
Rithm Capital Corp. preferreds are compared, with Series C retaining a Buy rating, but Series F also merits consideration. RITM.PR.C offers a 9.4% yield and is attractive below Par, balancing yield and call risk for long-term investors. The recent acquisition of Paramount Group expands RITM's commercial real estate platform and supports future growth ambitions.
Rithm Capital's preferred share RITM-D offers a 7.07% yield and a yield-to-call near 8.3%, with a reset rate likely around 10%. I see a high probability of RITM-D being called or trading above $25 as the 11/15/2026 call date approaches, especially if Treasury rates hold. RITM-D is currently slightly attractive; a 1.5% price decline would make it a strong buy due to improved yield-to-call.
Rithm Capital Corp. (RITM) Q4 2025 Earnings Call Transcript
Although the revenue and EPS for Rithm (RITM) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Rithm (RITM) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.6 per share a year ago.