Slide 1: Rithm Capital Q1 2025 Quarterly Supplement
Rithm Capital Quarterly Supplement Q1 2025 Q1 2025 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 RITHM FAMILY OF COMPANIE
Slide 4: Financial Highlights
Executive Summary Financial Highlights • Strong quarterly results: Q1’25 EAD of $0.52 per share represents 8% year-over-year growth(1) • Stable earnings performance: 22 consecutive quarters for which EAD was greater than common dividends paid GAAP Net Income $36.5 $0.07 2% Million per Diluted Share(
Slide 5: Quarter in Review
Executive Summary Quarter in Review Rithm demonstrated steady year-over-year growth in each of its segments in Q1’25 Asset Investment Management Portfolio ✓ Q1’25 originations of ✓ $35 billion in AUM at ✓ Executed 3 ✓ Top 3 US mortgage $895 million, Sculptor(1) securitizations in servicer and Top 5
Slide 6: Rithm's Foundation for Growth in Asset Management
Executive Summary Rithm’s Foundation for Growth in Asset Management Rithm is building a comprehensive asset management business, advanced by the acquisition of Sculptor and the external management of Rithm Property Trust Rithm Today Rithm’s Next Stage of Growth Asset-Based Finance Diversify Capital
Slide 7: Rithm Trades Well Below the Intrinsic Value of Its Parts
Executive Summary Rithm Trades Well Below the Intrinsic Value of Its Parts*(1) Current valuation of 83% of book value understates the intrinsic value of Rithm’s core segments Current Valuation Illustrative SOTP Valuation(1) ($M, except per share data) $5.5 Billion CURRENT MARKET CAP(2) 0.83x Newrez
Slide 8: Rithm's Capital Deployment Bolsters Earnings Growth
Executive Summary Rithm’s Capital Deployment Bolsters Earnings Growth Deployed $6.9 billion of capital since 2021 to compound growth and further diversify earnings Since Q1’21: $6.9B 53% 11% Capital Deployed(1) EAD Growth(2) EAD CAGR(3) Key Capital Deployment Timeline Internalized management from Cl
Slide 9: Rithm is Well-Positioned to Execute Amid Market Volatility
Executive Summary Rithm is Well-Positioned to Execute Amid Market Volatility Equities(1) Credit(2) Commodities(3) (bps) (indexed) $6,500 60 4.9% 500 180 50 4.7% 160 $6,100 450 4.5% 40 140 $5,700 4.3% 400 30 120 $5,300 4.1% 350 20 100 3.9% $4,900 300 10 3.7% 80 $4,500 0 3.5% 250 60 Oct-24 Dec-24 Feb-
Slide 10: Genesis (Residential Transitional Lending)
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q1 2025 Quarterly Supplement
Slide 11: Genesis Capital Business Highlights
Genesis Genesis Capital Business Highlights Record Q1 origination volumes driven by high-performing client franchise and expanding product suite Business Highlights Key Metrics • Q1’25 origination volume of $895 million, a record level for any Q1 at Genesis +46% +7% ‒ New originations yielding 10.3%
Slide 12: 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 13: Asset Management
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q1 2025 Quarterly Supplement
Slide 14: Sculptor Business Highlights
Asset Management Sculptor Business Highlights Sculptor is well positioned to capitalize on an attractive investment opportunity set from continued market dislocations in both fundraising and investment performance Business Highlights Key Metrics Continued fundraising momentum in Q1’25 with $1.4 bill
Slide 15: Rithm Property Trust Business Highlights
Asset Management Rithm Property Trust Business Highlights Rithm Property Trust (NYSE: RPT) is a 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 –
Slide 16: Rithm Acquisition Corp. (NYSE: RAC)
Asset Management Rithm Acquisition Corp. (NYSE: RAC) Rithm Acquisition Corp., a special purpose acquisition company (“SPAC”), recently closed its initial public offering (“IPO”) of 23 million units at $10.00 per unit RAC, with Rithm’s Sponsorship, Is Well-Positioned to Identify a Target and Execute
Slide 17: Investment Portfolio
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q1 2025 Quarterly Supplement
Slide 18: 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 • Executed 3 securitizations in Q1’25, totaling $1.5 billion UPB ‒ Closed the la
Slide 19: Newrez (Origination & Servicing)
Executive Summary Genesis (Residential Transitional Lending) Asset Management Investment Portfolio Newrez (Origination & Servicing) Q1 2025 Quarterly Supplement
Slide 20: Newrez's Balanced Platform Delivered 19% ROE in Q1'25
Newrez Newrez’s Balanced Platform Delivered 19% ROE in Q1’25(1) Continued momentum in both servicing and originations businesses Newrez Financial Results*(2) Key Metrics ($M) Q4’24 Q1’25 Servicing income excluding MTM $227.6 $242.4 $270M Q1’25 Pre-Tax Income Originations $95.8 $65.1 ex-MTM Corporate
Slide 21: Platform Investments Driving Consistent Returns
Newrez Platform Investments Driving Consistent Returns Strong quarter ushers in next chapter of Newrez franchise growth 2023 2024 2025 Consolidation and Growth and Recapture, Innovate, Foundation Efficiency and Expand 16% 19% 19% Return on Equity(1) Return on Equity(1) Q1’25 Return on Equity(1) • Ri
Slide 22: Multi-Channel Originations Powered Strong Financial Performance
Newrez Multi-Channel Originations Powered Strong Financial Performance Focused on customer retention and opportunistic growth across market cycles Originations Business Highlights Originations Heavyweight • Q1’25 Pre-Tax Income of $65 million • Maximizing gain on sale margins through pricing discipl
Slide 23: Delivering on Recapture Is Key to Originations Growth
Newrez Delivering on Recapture Is Key to Originations Growth Platform investments focused on staying connected to our homeowners Q1’25 Consumer Direct Funding Mix(1) 13% 28% Cash-Out Refinance 1 in 2 1 in 7 1 in 3 Rate/Term Refinance Homeowners in Consumers plan to Homeowners in 32% Purchase owned M
Slide 24: Client Franchise and Operational Excellence Powered Performance
Newrez Client Franchise and Operational Excellence Powered Performance Rezi AI, digital experience, and platform scale drive efficiencies in servicing Servicing Business Highlights Total Servicing Portfolio*(3) • Q1’25 Pre-Tax Income of $242 million • Added 4 new clients in Q1’25 with continued grow
Slide 25: Owned MSR Portfolio Performance
Newrez Owned MSR Portfolio Performance* Owned MSR portfolio continues to generate stable earnings Full MSR Price & Multiples Full MSR Portfolio Speeds & Amortization ($M) 5.0x 5.0x 5.2x 5.0x 4.8x 7.2% 7.6% 6.2% 6.0% 5.1% 165 167 177 173 160 $182 $146 $163 $148 $117 (1) (1) Q1'24 Q2'24 Q3'24 Q4'24 Q1
Slide 26: Continued Growth of Third-Party Servicing Market Share
Newrez Continued Growth of Third-Party Servicing Market Share Delivering the Newrez platform in proven subservicing and special servicing businesses Platform Advantage Customer Value Proposition Over 100 Longstanding Client Relationships Outstanding client retention of 98% since 2015 Market-leading
Slide 27: Appendix
Appendix Q1 2025 Quarterly Supplement
Slide 28: Condensed Consolidated Balance Sheets
Appendix Condensed Consolidated Balance Sheets As of 3/31/2025 As of 12/31/2024 (dollars in thousands, except per share data) (Unaudited) (Audited) ASSETS Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value $ 10,133,041 $ 10,321,671 Government and government-
Slide 29: Book Value per Share Summary
Appendix Book Value per Share Summary Per Share Ending Q4’24 Book Value Per Share $12.56 Net Income (Net of Tax and Change in Fair Value) 1.09 MSR Realization of Cash Flows (0.28) Change in Valuation Inputs and Assumptions (0.75) GAAP Net Income 0.07 Other Comprehensive Income 0.01 Common Dividend (
Slide 30: Consolidated Statements of Operations
Appendix Consolidated Statements of Operations Three Months Ended March 31, December 31, Unaudited (dollars in thousands) 2025 2024 Revenues Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 570,801 $ 531,279 Change in fair value of MSRs and MSR financing recei
Slide 31: Segment Information (Q1'25)
Appendix Segment Information (Q1’25) ($ in thousands) Residential Origination Investment Transitional Asset Corporate Quarter Ended March 31, 2025 and Servicing Portfolio Lending Management Category Total Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 570,80
Slide 32: Segment Information (Q4'24)
Appendix Segment Information (Q4’24) ($ in thousands) Residential Origination and Investment Transitional Asset Corporate Quarter Ended December 31, 2024 Servicing Portfolio Lending Management Category Total Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 531
Slide 33: Mortgage Servicing Rights
Appendix Mortgage Servicing Rights ($ in thousands) Q4’24 Ending MSR Balance $ 10,321,671 Originations & other 348,988 Sales 664 Change in fair value due to: Realization of cash flows (148,042) Change in valuation inputs and assumptions (390,240) Q1’25 Ending MSR Balance $ 10,133,041 Q1 2025 - Servi
Slide 34: Origination and Servicing
Appendix Origination and Servicing Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Servicing Servicing Portfolio (UPB $B) In-House Servicing $456.6 $518.5 $521.9 $524.8 $532.8 On Behalf of Third-Parties $111.3 $213.7 $223.4 $242.9 $244.2 Serviced by Others 70.1 68.5 67.0 65.4 $58.3 Whole Loan & Other $9.6 $9.4 $9.4 $
Slide 35: Unaudited GAAP Reconciliation of Earnings Available for Distribution
Appendix 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
Slide 36: Reconciliation of Non-GAAP Financial Measures
Appendix 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 operati
Slide 37: Illustrative Sum of the Parts Valuation Detail
Appendix Illustrative Sum of the Parts Valuation Detail*(1) Residential Origination & Investment Asset Preferred Total Rithm $M, except per share data Transitional Corporate Servicing Portfolio Management Stock Book Value Lending GAAP Segment Equity $5,516 $1,528 $846 $876 ($990) ($1,207) $6,569 % o
Slide 38: Illustrative Sum of the Parts Valuation Detail: Peer Analysis
Appendix Illustrative Sum of the Parts Valuation Detail: Peer Analysis*(1)(2) Mortgage Companies: Newrez Residential Transitional Lending: Genesis Market Cap Market Cap Company Ticker ROE P/BV ’25E P/E Company Ticker ROE P/BV ’25E P/E ($M) ($M) Mr. Cooper COOP $6,863 15% 1.4x 8.1x Velocity Financial
Slide 39: Endnotes
Endnotes Q1 2025 Quarterly Supplement
Slide 40: Endnotes
Endnotes Endnotes to Slide 3: Source: Company SEC filings and current financial information. Financial and market data as of March 31, 2025 unless otherwise noted. 1) Source: Inside Mortgage Finance report as of Q4’24. 2) Represents “Total Stockholder Equity” on Balance Sheet. 3) Represents “Total A
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 March 31, 2025 unless otherwise noted. 1) Illustrative SOTP Valuation is based on management's current views, estimates, and valuation assumptions. Actual r
Slide 42: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 14: Source: Company financial information. Financial and market data as of March 31, 2025 unless otherwise noted. 1) “Assets Under Management” (AUM) is estimated and refers to the assets for which Sculptor provides investment management, advisory or certain other i
Slide 43: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 23: Source: Company SEC filings and current financial information. Financial and market data as of March 31, 2025 unless otherwise noted. 1) Consumer Direct refers to aggregate of previously reported DTC and Retail channels. 2) Source: NerdWallet 2025 Home Buyer Re
Slide 44: 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 • ABS – Asset-Backed Securities • AUM – Assets Under Management • BV – Book Value • BVPS – Book Value Per
Slide 45: Q1 2025 Quarterly Supplement
Q1 2025 Quarterly Supplement