Rithm Capital Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Rithm Capital Corp. has filed its 2023 10-K report detailing financial performance and corporate structure.</b>

AI Summary

Rithm Capital Corp. (RITM-PD) filed a Annual Report (10-K) with the SEC on February 20, 2024. Rithm Capital Corp. filed its 2023 Form 10-K on February 20, 2024. The filing covers the fiscal year ending December 31, 2023. The company was formerly known as New Residential Investment Corp. Key financial data and business segments are detailed within the report. The report includes information on preferred stock series, including Series A, B, C, and D.

Why It Matters

For investors and stakeholders tracking Rithm Capital Corp., this filing contains several important signals. This 10-K provides a comprehensive overview of Rithm Capital's financial health and operational activities for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. Understanding the details within this filing is essential for stakeholders to evaluate Rithm Capital's strategic direction, risk exposure, and its position within the real estate investment trusts sector.

Risk Assessment

Risk Level: medium — Rithm Capital Corp. shows moderate risk based on this filing. The company operates in the real estate investment trusts sector, which is subject to market fluctuations, interest rate changes, and regulatory shifts, as indicated by the detailed financial statements and risk factors typically found in a 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Rithm Capital's performance drivers and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-20 — Filing Date (Date of submission)
• 001-35777 — SEC File Number (SEC registration number)

Key Players & Entities

• Rithm Capital Corp. (company) — Filer name
• New Residential Investment Corp. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-20 (date) — Filing date
• 799 BROADWAY (address) — Business address
• New York (location) — Business address city

FAQ

Risk Factors

• Market Risks [high — market]: The company is exposed to various market risks, including changes in interest rates, economic conditions, and the performance of the real estate and financial markets.
• Financial Risks [high — financial]: Risks related to the company's financial structure, including leverage, liquidity, and the ability to access capital markets.
• Operational Risks [medium — operational]: Risks associated with the company's day-to-day operations, including management, technology, and the execution of business strategies.

Industry Context

Rithm Capital Corp. operates as a real estate investment trust (REIT), a sector characterized by its focus on income-producing real estate and specific tax advantages.

Regulatory Implications

As a publicly traded company, Rithm Capital Corp. is subject to the regulations of the Securities and Exchange Commission (SEC), requiring regular filings like the 10-K to ensure transparency for investors.

What Investors Should Do

1. Analyze the consolidated financial statements for revenue, net income, and key balance sheet items.
2. Examine the risk factors section for potential threats to the company's business and financial performance.
3. Review management's discussion and analysis (MD&A) for insights into the company's strategy and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-20: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year 2023, superseding previous quarterly and annual filings for the prior periods.

Key Financial Figures

• $0.01 — nge on which registered: Common Stock, $0.01 par value per share RITM New York Stock
• $630.3 million — 3 for a purchase price of approximately $630.3 million (the "Sculptor Acquisition"). The Sculp
• $32.8 billion — management sector, adding approximately $32.8 billion of assets under management ("AUM") dive
• $720 million — , for a purchase price of approximately $720 million (the "Computershare Acquisition"). Thro
• $136 billion — business, which includes approximately $136 billion in unpaid principal balance ("UPB") of
• $766,550 — established by statute and currently is $766,550 for 2024 (an increase from $726,200 in
• $726,200 — is $766,550 for 2024 (an increase from $726,200 in 2023) with certain exceptions for hi

Filing Documents

• nrz-20231231.htm (10-K) — 8233KB
• ritm-20231231exhibit211.htm (EX-21.1) — 224KB
• ritm-20231231exhibit231.htm (EX-23.1) — 3KB
• ritm-20231231exhibit311.htm (EX-31.1) — 12KB
• ritm-20231231exhibit312.htm (EX-31.2) — 13KB
• ritm-20231231exhibit321.htm (EX-32.1) — 5KB
• ritm-20231231exhibit322.htm (EX-32.2) — 5KB
• ritm-20231231exhibit971.htm (EX-97.1) — 32KB
• nrz-20231231_g1.jpg (GRAPHIC) — 196KB
• 0001556593-24-000007.txt (&nbsp;) — 41470KB
• nrz-20231231.xsd (EX-101.SCH) — 242KB
• nrz-20231231_cal.xml (EX-101.CAL) — 247KB
• nrz-20231231_def.xml (EX-101.DEF) — 1424KB
• nrz-20231231_lab.xml (EX-101.LAB) — 2114KB
• nrz-20231231_pre.xml (EX-101.PRE) — 1719KB
• nrz-20231231_htm.xml (XML) — 9505KB

Risk Factors

Item 1A. Risk Factors 16

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 69

Cybersecurity

Item 1C. Cybersecurity 69

Properties

Item 2. Properties 70

Legal Proceedings

Item 3. Legal Proceedings 70

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 71 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 72

[ Reserved ]

Item 6. [ Reserved ] 74

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 74

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 113

Financial Statements

Item 8. Financial Statements 117

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 225

Controls and Procedures

Item 9A. Controls and Procedures 225

Other Information

Item 9B. Other Information 226

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 226 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 227

Executive Compensation

Item 11. Executive Compensation 227

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 227

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 227

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 227 PART IV

Exhibits; Financial Statement Schedules

Item 15. Exhibits; Financial Statement Schedules 228

Form 10-K Summary

Item 16. Form 10-K Summary 232

Signatures

Signatures 233 v PART I

BUSINESS

ITEM 1. BUSINESS Company Overview Rithm Capital Corp. (together with its consolidated subsidiaries, "Rithm Capital," "the Company," "we," "us" or "our") is a global asset manager focused on real estate, credit and financial services. Rithm Capital is a Delaware corporation that was formed as a limited liability company in September 2011 (commenced operations in December 2011) and, since June 17, 2022, has been structured as an internally managed REIT for U.S. federal income tax purposes. We seek to generate long-term value for our investors by using our investment expertise to identify, manage and invest in real estate related and other financial assets and more recently, offer broader asset management capabilities, in each case, that provides investors with attractive risk-adjusted returns. Our investments in real estate related assets include our equity interest in operating companies, including leading origination and servicing platforms held through wholly-owned subsidiaries, Newrez LLC ("Newrez") and Genesis, as well as investments in SFR, title, appraisal and property preservation and maintenance businesses. Our strategy involves opportunistically pursuing acquisitions and seeking to establish strategic partnerships that we believe enable us to maximize the value of our investments by offering products and services related to the lifecycle of transactions that affect each mortgage loan and underlying residential property or collateral. We operate our asset management business primarily through our wholly-owned subsidiary, Sculptor. Sculptor is a leading global alternative asset manager and provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. We completed our acquisition of Sculptor on November 17, 2023. We conduct our business through the following segments: Origination and Servicing, Investment Portfolio, M

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View this 10-K filing on SEC EDGAR