Rithm (RITM) closed the most recent trading day at $11.82, moving +1.81% from the previous trading session.
Rithm Capital reported strong Q4 earnings, driven by strong servicing and asset management revenue. The REIT's diversified portfolio, including MSRs and residential mortgage loans, contributed to a 2.4X dividend coverage ratio, making it an exceptional high-yield play. Valued at a P/B ratio of 0.97X, Rithm Capital offers an attractive investment opportunity.
Rithm Capital Corp. is redeeming 32% of its Series A preferred shares, reducing risk and creating a defined maturity profile for these securities. The Series A shares, initially issued in 2019, will now have a shorter duration, estimated between 1 and 2 years, with appealing yields to maturity. The redemption indicates Rithm's strategy to retire expensive capital, making the remaining Series A shares a low-risk, high-yield investment.
Rithm Capital: This Ultra-Safe 8% Yield Is Still On Sale
Rithm Capital Corp. is trading at a discount to book value, offering a strong dividend yield of over 8%, with potential for future increases. RITM's diversified portfolio, including residential mortgages, construction loans, and asset management, positions it well for growth in a lower-rate environment. Despite risks from fluctuating interest rates and credit spreads, RITM's strategic capital deployment and profitability make it a compelling long-term investment.
RITM's fourth-quarter results benefit from improved net servicing revenue and interest income. High expenses partially offset the positives.
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While the top- and bottom-line numbers for Rithm (RITM) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Rithm Capital Corp. (NYSE:RITM ) Q4 2024 Earnings Conference Call February 6, 2025 8:00 AM ET Company Participants Emma Bolla - Associate General Counsel Michael Nierenberg - Chairman, CEO and President Baron Silverstein - President, Newrez Conference Call Participants Bose George - KBW Doug Harter - UBS Kenneth Lee - RBC Capital Markets Giuliano Bologna - Compass Point Eric Hagen - BTIG Jay McCanless - Wedbush Matthew Erdner - Jones Trading Operator Good day, and welcome to the Rithm Capital Fourth Quarter and Full-Year 2024 Earnings Call. All participants will be in listen-only mode.
Rithm (RITM) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.51 per share a year ago.
RITM's fourth-quarter earnings are likely to have been aided by higher interest income and asset management revenues.
Rithm (RITM) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.