Slide 1: Quarterly Supplement Q4 2024
Rithm Capital Quarterly Supplement Q4 2024 Q4 2024 Quarterly Supplement
Slide 2: Disclaimers
Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” FORWARD-LOOKING STATEMENTS. Certain statements regardi
Slide 3: Executive Summary: Stable Core Business Foundation Positioned for Growth
Executive Summary Stable Core Business Foundation Positioned for Growth Rithm is a leading global asset manager focused on delivering significant, long-term value for investors Powered by DIFFERENTIATED INVESTMENT PLATFORM Partnership RITHM BY THE NUMBERS WHY WE’RE DIFFERENT FAMILY OF OPERATING COMP
Slide 4: Financial Highlights
Executive Summary Financial Highlights FY24 EAD of $2.10 per share represents ~27% year-over-year growth* • Stable book value performance: Book value per share is up 11% since Q1’21 despite elevated interest rate volatility and equity raises, with consistent dividend payments representing a cumulati
Slide 5: Year in Review
Executive Summary Year in Review Rithm demonstrated steady and significant growth in all of its segments throughout 2024 Asset Investment Management Portfolio ✓ Record FY24 ✓ $34 billion in AUM at ✓ Executed 7 ✓ Top 3 US mortgage originations of $3.6 Sculptor(1) securitizations in servicer and Top 5
Slide 6: Rithm's Foundation for Growth in Asset Management
Executive Summary Rithm’s Foundation for Growth in Asset Management Rithm has set out to build a comprehensive asset management business, advanced by the acquisition of Sculptor and the external management of RPT Rithm Today Rithm’s Next Stage of Growth Asset-Based Finance Diversify Capital Sources
Slide 7: Rithm Trades Well Below the Intrinsic Value of Its Parts
Executive Summary Rithm Trades Well Below the Intrinsic Value of Its Parts*(1) Current valuation of 92% of book value understates the intrinsic value of Rithm’s core segments Current Valuation Illustrative SOTP Valuation(1) ($mm, except per share data) $6.0 Billion CURRENT MARKET CAP(2) 0.92x Newrez
Slide 8: Rithm's Capital Deployment Bolsters Earnings Growth
Executive Summary Rithm’s Capital Deployment Bolsters Earnings Growth Deployed $6.4 billion of capital since 2021 to compound growth and further diversify earnings Since Q1’21: $6.4 bn 76% 16% Capital Deployed(1) EAD Growth(2) EAD CAGR(3) Key Capital Deployment Timeline Internalized management from
Slide 9: Genesis (Residential Transitional Lending)
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q4 2024 Quarterly Supplement
Slide 10: Genesis Capital Business Highlights
Genesis Genesis Capital Business Highlights Record origination volumes driven by high-performing client franchise and expanding product suite Business Highlights Key Metrics • Q4’24 originations of $1.2 billion, the highest level for any quarter at Genesis +71% • Record FY24 origination volume of $3
Slide 11: Differentiated Model in Residential Transitional Lending
Genesis Differentiated Model in Residential Transitional Lending Bank retrenchment opens the door to further growth in premier RTL franchise Genesis’s Core Capabilities Portfolio Detail(1) Differentiated Business Model Construction Bridge Renovation ✓ Focused on long-term relationships with high-qua
Slide 12: Asset Management
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q4 2024 Quarterly Supplement
Slide 13: Sculptor Business Highlights
Asset Management Sculptor Business Highlights Sculptor continues to see strong momentum across the platform and capitalize on an attractive investment opportunity set, delivering strong risk-adjusted investment performance to fund investors Business Highlights Key Metrics Substantial fundraising in
Slide 14: Sculptor: 2024 Investment Performance
Asset Management Sculptor: 2024 Investment Performance Strong 2024 investment performance across the platform Representative Sculptor Investment Performance (Gross | Net)(1) 2024 Performance Since Inception Credit Sculptor Tactical Credit Fund 25.4% | 19.4%(2) 19.9% | 15.3%(3) Sculptor Customized Cr
Slide 15: Rithm Property Trust
Asset Management Rithm Property Trust RPT is a growing real estate investment platform focused on commercial real estate (“CRE”) lending and opportunistic investing • Rithm transformed RPT into a CRE investment vehicle as part of a transaction in June 2024 – Rithm became the external manager and the
Slide 16: Investment Portfolio
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q4 2024 Quarterly Supplement
Slide 17: Investment Portfolio Business Highlights
Investment Portfolio Investment Portfolio Business Highlights Our investment and capital markets teams continue to execute on accretive asset acquisitions and innovative capital solutions Business Highlights Key Metrics • Securitized over $2.9 billion of mortgage assets in FY24 • Closed $461 million
Slide 18: Key Investment Portfolio Strategies
Investment Portfolio Key Investment Portfolio Strategies Capital Markets Synthetic Risk Transfers • Securitized over $2.9 billion of mortgage assets in FY24 • Emergence of SRT product from bank sellers seeking • In Q4’24, closed first-of-its-kind non-recourse MSR financing regulatory capital relief
Slide 19: Newrez (Origination & Servicing)
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q4 2024 Quarterly Supplement
Slide 20: Newrez's Balanced Platform Delivered 20% ROE in Q4'24
Newrez Newrez’s Balanced Platform Delivered 20% ROE in Q4’24(1) Strategic acquisitions, nimble originations platform, and servicing execution driving results Newrez Financial Results*(2) Key Metrics ($mm) Q3’24 Q4’24 FY23 FY24 $280 mm Servicing income excluding MTM $228.5 $227.6 $931.2 $922.3 Q4’24
Slide 21: Positioned for Continued Growth
Newrez Positioned for Continued Growth Significant momentum in both originations and servicing businesses Originations Market Share(1) 2025 Growth Strategy ~4x market share growth 3.5% 2.9% 2.6% 2.5% Deliver Newrez Brand 1.5% 0.9% Maximize Customer Retention 2019 2020 2021 2022 2023 2024 Optimize Re
Slide 22: Multi-Channel Strategy Driving Originations Performance
Newrez Multi-Channel Strategy Driving Originations Performance Growth through customer retention, new products, and client franchise Originations Business Highlights Q4’24 Key Metrics • Gain on sale margins increased 8bps QoQ due to pricing discipline across channels and improved capital markets $95
Slide 23: Delivering a Seamless Digital Experience to Drive Recapture
Newrez Delivering a Seamless Digital Experience to Drive Recapture Digital Enhancements Consumer Direct Refinance Recapture(1) • Investments in brand and end-to-end digital experience drive retention • Over 25% of owned MSR portfolio has coupon >5% 52% 46% Rate Including Closed 41% End Seconds(2) Re
Slide 24: Operational Excellence and Client Growth Power Performance
Newrez Operational Excellence and Client Growth Power Performance Technology and scale drive efficiencies Servicing Business Highlights Total Servicing Portfolio*(3) • Over 1.2 million loans boarded in FY24 driving 32% YoY portfolio growth, with 174k boarded in Q4’24 $844 bn • Expanded master servic
Slide 25: Owned MSR Portfolio Performance
Newrez Owned MSR Portfolio Performance* Owned MSR portfolio continues to generate stable earnings Full MSR Price & Multiples Full MSR Portfolio Speeds & Amortization ($mm) 5.0x 5.0x 5.2x 7.4% 4.9x 4.8x 7.2% 6.2% 4.9% 5.1% 165 167 177 $182 159 160 $163 $135 $146 $117 (1) (1) Q4'23 Q1'24 Q2'24 Q3'24 Q
Slide 26: Market-Leading Special Servicing Franchise
Newrez Market-Leading Special Servicing Franchise(1) Well-positioned to meet growing market need for special servicing Special Servicing Business Highlights 2024 Special Servicing Highlights • Foundation as a special servicer with 15+ years of experience • • Third-party client franchise built upon s
Slide 27: Appendix
Appendix Q4 2024 Quarterly Supplement
Slide 28: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets As of 12/31/24 As of 9/30/24 (dollars in thousands, except per share data) (Unaudited) (Unaudited) ASSETS Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value $ 10,321,671 $ 9,300,989 Government and government-backed secur
Slide 29: Book Value per Share Summary
Book Value per Share Summary Per Share Ending Q3’24 Book Value Per Share $12.31 Net Income (Net of Tax and Change in Fair Value) (0.58) MSR Realization of Cash Flows (0.35) Change in Valuation Inputs and Assumptions 1.43 GAAP Net Income 0.50 Other Comprehensive Income (Loss) (0.01) Common Dividend (
Slide 30: Consolidated Statements of Operations
Consolidated Statements of Operations Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, Unaudited (dollars in thousands) 2024 2024 2024 2023 Revenues Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 531,279 $ 493,171 $
Slide 31: Segment Information (Q4'24)
Segment Information (Q4’24) ($ in thousands) Residential Origination Investment Transitional Asset Corporate Quarter Ended December 31, 2024 and Servicing Portfolio Lending Management Category Total Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 531,279 $ —
Slide 32: Segment Information (Q3'24)
Segment Information (Q3’24) ($ in thousands) Residential Origination and Investment Transitional Asset Corporate Quarter Ended September 30, 2024 Servicing Portfolio Lending Management Category Total Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 493,171 $ —
Slide 33: Mortgage Servicing Rights
Mortgage Servicing Rights ($ in thousands) Q3’24 Ending MSR Balance $ 9,300,989 Originations & other 455,356 Sales 8,278 Change in fair value due to: Realization of cash flows (181,910) Change in valuation inputs and assumptions 738,958 Q4’24 Ending MSR Balance $ 10,321,671 Q4 2024 - Servicing Servi
Slide 34: Origination and Servicing
Origination and Servicing Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Servicing Servicing Portfolio (UPB $bn) In-House Servicing $457.0 $456.6 $518.5 $521.9 $524.8 On Behalf of Third-Parties $102.5 $111.3 $213.7 $223.4 $242.9 Serviced by Others 71.5 70.1 68.5 67.0 65.4 Whole Loan & Other $8.5 $9.6 $9.4 $9.4 $10.7
Slide 35: Unaudited GAAP Reconciliation of Earnings Available for Distribution
Unaudited GAAP Reconciliation of Earnings Available for Distribution Management uses Earnings Available for Distribution, which is a non-GAAP measure, as one measure of operating performance. Please see next slide for the definition of Earnings Available for Distribution and explanation of adjustmen
Slide 36: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • The Company has four primary variables that impact its performance: (i) net interest margin on assets held within the investment portfolio; (ii) realized and unrealized gains or losses on assets held within the investment portfolio and operating compan
Slide 37: Illustrative Sum of the Parts Valuation Detail
Illustrative Sum of the Parts Valuation Detail*(1)(2) Residential Origination & Investment Asset Preferred Total Rithm $mm, except per share data Transitional Corporate Servicing Portfolio Management Stock Book Value Lending GAAP Segment Equity $5,715 $1,523 $802 $805 ($1,050) ($1,257) $6,538 % of T
Slide 38: Illustrative Sum of the Parts Valuation Detail: Peer Analysis
Illustrative Sum of the Parts Valuation Detail: Peer Analysis*(1)(2) Mortgage Companies: Newrez Residential Transitional Lending: Genesis Market Cap Market Cap Company Ticker ROE P/BV ’24E P/E Company Ticker ROE P/BV ’24E P/E ($mm) ($mm) Mr. Cooper COOP $6,882 11% 1.5x 10.5x Velocity Financial VEL $
Slide 39: Endnotes
Endnotes Q4 2024 Quarterly Supplement
Slide 40: Endnotes
Endnotes Endnotes to Slide 3: Source: Company SEC filings and current financial information. Financial and market data as of December 31, 2024 unless otherwise noted. 1) Represents “Total Assets” on Balance Sheet. 2) “Assets Under Management” (AUM) refers to the assets for which Sculptor provides in
Slide 41: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 7: Source: Bloomberg, Company SEC filings and current financial information. Financial and market data as of December 31, 2024 unless otherwise noted. 1) Illustrative SOTP Valuation is based on management's current views, estimates, and valuation assumptions. Actua
Slide 42: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 14: 1) Past performance is not indicative of future results. See “Disclaimers” at the beginning of this Presentation. 2) 2024 gross and net performance for Sculptor Tactical Credit Fund and Sculptor Customized Credit Focused Platform is based on Weighted Average Re
Slide 43: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 17: Source: Company financial information. Financial and market data as of December 31, 2024 unless otherwise noted. Endnotes to Slide 18: Source: Company current financial information. Financial and market data as of December 31, 2024 unless otherwise noted. 1) In
Slide 44: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 25: Source: Company SEC filings and current financial information. Financial and market data as of December 31, 2024 unless otherwise noted. 1) Normalized amortization represents reported amortization normalized to reflect actual balances instead of projected balan
Slide 45: Abbreviations
Abbreviations This Presentation may include abbreviations, which have the following meanings: • 60+ DQ – Percentage of loans that are delinquent by 60 days or more • AI – Artificial Intelligence • AUM – Assets Under Management • BTR – Build to Rent • BV – Book Value • BVPS – Book Value Per Share • C
Slide 46: Q4 2024 Quarterly Supplement
Q4 2024 Quarterly Supplement