Rithm Capital Corp (NYSE:RITM)
$ 10.52 0.11 (1.06%) Market Cap: 5.47 Bil Enterprise Value: 34.79 Bil PE Ratio: 10.63 PB Ratio: 0.85 GF Score: 57/100
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Q2 2024 Rithm Capital Corp Earnings Call Transcript

Jul 31, 2024 / 12:00PM GMT
Release Date Price: $11.61 (+0.69%)

Key Points

Positve
  • Rithm Capital Corp (RITM) reported strong contributions from all business lines, showcasing diversified growth.
  • The company completed several strategic acquisitions, including SLS and Great Ajax, enhancing their servicing and commercial mortgage capabilities.
  • Rithm Capital Corp (RITM) added $40 billion of excess MSRs, demonstrating the power of their franchise.
  • The company reported a book value of $12.39 per diluted share and a GAAP net income of $213 million, or $0.43 per diluted share.
  • Rithm Capital Corp (RITM) maintained a 9.2% dividend yield, reflecting strong shareholder returns.
Negative
  • Market volatility is expected to persist due to geopolitical uncertainties, which could impact future performance.
  • The company faces competitive pressures in the mortgage origination market, potentially affecting profitability.
  • Rithm Capital Corp (RITM) is concerned about the refinancing market, with current mortgage rates and home insurance costs posing challenges.
  • The company’s MSR portfolio is largely out of the money, with 96% of MSRs having a gross whack of roughly 4%, limiting refinancing opportunities.
  • There is uncertainty regarding the valuation and capital structure of the company, with ongoing discussions about potential listings and high-yield issuances.
Operator

Good morning and welcome to the rhythm Capital Second Quarter 2024, our earnings call. All participants will be in listen only mode. Should you need assistance, please signify the conference specialist by pressing star, then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask question to ask a question. You may press star and one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Emma Bolla, Associate General Counsel. Please go ahead.

Emma Bolla
Rithm Capital Corp - Associate General Counsel

Thank you, and good morning, everyone. I would like to thank you for joining us today for Rhythm Capital's Second Quarter 2024. Joining me today are Michael Nierenberg, Chairman, CEO and President of rhythm capital, Nick center, our Chief Financial Officer of rhythm capital, and Baron Silverstein, President of NewRez. Throughout the call, we are going to reference the earnings supplement that was posted this

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