On this page of StockholderLetter.com we present the latest annual shareholder letter from Rithm Capital Corp. — ticker symbol RITM. Reading current and past RITM letters to shareholders can bring important insights into the investment thesis.
2023
Annual Report
Rithm Capital Corp.
Opportunity
Innovation
Partnership
$35B
$7B
$5B
~$33B
43%
Assets
Total Equity
Dividends(1)
Assets Under
Management(2)
Total Shareholder
Return(3)
Industry Leading Franchises
Highlights
Rithm benefits from connectivity across its
platforms, collaborating on strategy, execution,
market insights and risk management.
+ Diversified Investment
Portfolio
+ Accelerated Private
Capital Strategy
+ Positioned Asset
Generating Platforms
for Growth
Dear Fellow
Shareholders,
As we look back at
2023, there were,
and still are, many
challenges that
affect us all.
The geopolitical
climate we live in is
extremely troubling,
and our prayers go out
to everyone affected.
The investing environment in 2023 shared many similarities to
years past. We saw large moves in interest rates as the Federal
Reserve raised rates four times in a continuing effort to bring
down inflation to its target rate of 2%. Towards the end of the
year, we heard from several Fed governors that they see interest
rate cuts happening in 2024, despite economic data being
strong. This resulted in large moves in interest rates in which we
saw a significant year-end rally causing the 10-year rate to fall by
120 bps in the fourth quarter.
Earlier in 2023, the regional banking sector in the US came under
pressure with the failure, or near failure, of three large financial
institutions. While this created turmoil in the markets, it was
quickly contained by the efforts of the US Government.
The commercial real estate market continues to be under
pressure, led by declining values in office properties and other
sectors of the real estate market. The large upcoming maturity
wall, coupled with declining property values, saw some of the
largest sponsors in real estate give back the keys to certain
properties. The need for capital is significant, as banks can no
longer just extend maturities, given lower values. We expect this
to create some of the best opportunities to deploy capital we
have seen in many years.
In many ways, 2023 demonstrated the strength of our business
model, our platforms and our team. The core business continues
to perform as designed, delivering stable earnings and book
value. We fully expect our transformation into a global asset
manager to positively impact how the market values Rithm.
The early response to the shift has been favorable and we are
accelerating our transition. With an emphasis on growing fee
earnings and simplifying our corporate structure, we think there
is a very compelling case to owning our stock. Coming into 2024,
Rithm is even more resilient and better positioned to perform for
our shareholders.
Rithm Capital 2023 Annual Report
1
   Our growth as an asset manager will make Rithm
a more resilient business and provide exciting
growth potential for shareholders and private
capital partners.   
Rithm continues to hold liquidity at a premium. We entered 2024 with $1.9 billion in cash and
liquidity. We will remain liquid, given an attractive investment pipeline and elevated volatility. I am
confident the actions we took in 2023 to diversify our investments, grow our operating companies
and accelerate our transformation will further strengthen our business, support a growing customer
base and create real value for shareholders, partners and employees alike.
At its core, Rithm is an investment company. We identify attractive investments, often when there is
a structural shift in markets and where scale is a benefit. We started with MSRs in 2013, when banks
began retrenching after the global financial crisis, and have since built a diverse portfolio of financial
services investments and an ecosystem of scaled operating platforms to support asset creation
and asset performance over a long horizon. We are proud of our long-term performance, having
produced a 10-year Total Economic Return of 165% (4) since 2013. As a fiduciary to both shareholder
and LP capital, we take our responsibility to deliver attractive risk-adjusted returns seriously.
In 2023, we acquired Sculptor Capital Management, a global alternative asset manager with $33
billion of assets under management (   AUM   ). This is an important acceleration of our strategy
to extend Rithm   s asset management capabilities into new verticals and grow the private capital
business. Growing our combined AUM and associated fee earnings are key to our success. We
couldn   t be more excited for the potential that the combined Rithm/Sculptor platforms offer fund
investors and shareholders alike.
Despite the challenging market backdrop that unfolded in early 2023, book value was stable year
over year, even with elevated market volatility, thanks to a well-balanced business model and the
great work of the Rithm team. Earnings in 2023 were healthy with Rithm generating GAAP earnings
per diluted share of $1.10 and we distributed over $570M in dividends to our preferred and common
shareholders. Total Shareholder Return was 43%(3) for the year.
Genesis Capital, our residential transitional lending platform, increased origination volumes in
H2   23 through organic growth in sponsor-driven activity, as banks retreated from yet another
lending vertical. Rithm   s single-family rental platform, Adoor, also expanded its portfolio, primarily
in the build-to-rent sector through relationships with developers. Cross pollination between
Genesis and Adoor is a great example of the power of our platforms to provide unique solutions to
the sponsor community at attractive risk-adjusted returns. We further diversified the investment
portfolio by acquiring $1.4 billion in consumer loans from Goldman Sachs    Marcus portfolio. This is
an opportunistic acquisition, but it is an asset class in which we have deep historical experience.
2
Activity across our operating companies is encouraging. It demonstrates the power of our franchises
and provides us with confidence that our strategy is succeeding.
Our mortgage company, Newrez, produced significant earnings and cash flow. With a 19% ROE
for full-year 2023, it leads its public mortgage company peers on the metric that matters most to
shareholders, profitability. We feel it is very well positioned to thrive in a dynamic market and deliver
stable earnings into the future.
Rithm took several steps to add to its capabilities. We announced the acquisition of Specialized Loan
Servicing (SLS) in October of 2023. This acquisition will complement our strategy to organically grow the
mortgage company   s servicing franchise, add attractively priced MSRs and contribute approximately
$136 billion of unpaid principal balance to the Newrez servicing platform. The combination fortifies the
mortgage company   s foundation, contributes to the growth of the 3rd party servicing business and
positions Newrez as a leader across all mainstream origination and servicing channels.
As we look forward, Rithm is built on a strong foundation that can endure challenging markets and
capitalize on upside opportunities. Our growth as an asset manager will make it a more resilient business
and provide exciting growth potential for shareholders and private capital partners. Both are critical to
our success. The team remains vigilant about managing risk, and we are excited for the prospects that lie
ahead. We will continue to evolve the business in ways that create value for our shareholders, employees
and partners, and we look forward to delivering strong returns over the years ahead.
On behalf of Rithm Capital, our Board of Directors, and the senior management team, we extend our
sincere appreciation for your ongoing support and continued partnership. We wish all of you health and
success, and we look forward to the positive impact that we can make together in 2024 and beyond.
Sincerely,
Michael Nierenberg
Chairman, Chief Executive Officer and President
Rithm Capital 2023 Annual Report
3
 • shareholder letter icon 4/11/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/11/2023 RITM Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon RITM Benford's Law Stock Score = 99


RITM Shareholder/Stockholder Letter Transcript:

2023
Annual Report

Rithm Capital Corp.
Opportunity
Innovation
Partnership
$35B
$7B
$5B
~$33B
43%
Assets
Total Equity
Dividends(1)
Assets Under
Management(2)
Total Shareholder
Return(3)
Industry Leading Franchises
Highlights
Rithm benefits from connectivity across its
platforms, collaborating on strategy, execution,
market insights and risk management.
+ Diversified Investment
Portfolio
+ Accelerated Private
Capital Strategy
+ Positioned Asset
Generating Platforms
for Growth

Dear Fellow
Shareholders,
As we look back at
2023, there were,
and still are, many
challenges that
affect us all.
The geopolitical
climate we live in is
extremely troubling,
and our prayers go out
to everyone affected.
The investing environment in 2023 shared many similarities to
years past. We saw large moves in interest rates as the Federal
Reserve raised rates four times in a continuing effort to bring
down inflation to its target rate of 2%. Towards the end of the
year, we heard from several Fed governors that they see interest
rate cuts happening in 2024, despite economic data being
strong. This resulted in large moves in interest rates in which we
saw a significant year-end rally causing the 10-year rate to fall by
120 bps in the fourth quarter.
Earlier in 2023, the regional banking sector in the US came under
pressure with the failure, or near failure, of three large financial
institutions. While this created turmoil in the markets, it was
quickly contained by the efforts of the US Government.
The commercial real estate market continues to be under
pressure, led by declining values in office properties and other
sectors of the real estate market. The large upcoming maturity
wall, coupled with declining property values, saw some of the
largest sponsors in real estate give back the keys to certain
properties. The need for capital is significant, as banks can no
longer just extend maturities, given lower values. We expect this
to create some of the best opportunities to deploy capital we
have seen in many years.
In many ways, 2023 demonstrated the strength of our business
model, our platforms and our team. The core business continues
to perform as designed, delivering stable earnings and book
value. We fully expect our transformation into a global asset
manager to positively impact how the market values Rithm.
The early response to the shift has been favorable and we are
accelerating our transition. With an emphasis on growing fee
earnings and simplifying our corporate structure, we think there
is a very compelling case to owning our stock. Coming into 2024,
Rithm is even more resilient and better positioned to perform for
our shareholders.
Rithm Capital 2023 Annual Report
1

   Our growth as an asset manager will make Rithm
a more resilient business and provide exciting
growth potential for shareholders and private
capital partners.   
Rithm continues to hold liquidity at a premium. We entered 2024 with $1.9 billion in cash and
liquidity. We will remain liquid, given an attractive investment pipeline and elevated volatility. I am
confident the actions we took in 2023 to diversify our investments, grow our operating companies
and accelerate our transformation will further strengthen our business, support a growing customer
base and create real value for shareholders, partners and employees alike.
At its core, Rithm is an investment company. We identify attractive investments, often when there is
a structural shift in markets and where scale is a benefit. We started with MSRs in 2013, when banks
began retrenching after the global financial crisis, and have since built a diverse portfolio of financial
services investments and an ecosystem of scaled operating platforms to support asset creation
and asset performance over a long horizon. We are proud of our long-term performance, having
produced a 10-year Total Economic Return of 165% (4) since 2013. As a fiduciary to both shareholder
and LP capital, we take our responsibility to deliver attractive risk-adjusted returns seriously.
In 2023, we acquired Sculptor Capital Management, a global alternative asset manager with $33
billion of assets under management (   AUM   ). This is an important acceleration of our strategy
to extend Rithm   s asset management capabilities into new verticals and grow the private capital
business. Growing our combined AUM and associated fee earnings are key to our success. We
couldn   t be more excited for the potential that the combined Rithm/Sculptor platforms offer fund
investors and shareholders alike.
Despite the challenging market backdrop that unfolded in early 2023, book value was stable year
over year, even with elevated market volatility, thanks to a well-balanced business model and the
great work of the Rithm team. Earnings in 2023 were healthy with Rithm generating GAAP earnings
per diluted share of $1.10 and we distributed over $570M in dividends to our preferred and common
shareholders. Total Shareholder Return was 43%(3) for the year.
Genesis Capital, our residential transitional lending platform, increased origination volumes in
H2   23 through organic growth in sponsor-driven activity, as banks retreated from yet another
lending vertical. Rithm   s single-family rental platform, Adoor, also expanded its portfolio, primarily
in the build-to-rent sector through relationships with developers. Cross pollination between
Genesis and Adoor is a great example of the power of our platforms to provide unique solutions to
the sponsor community at attractive risk-adjusted returns. We further diversified the investment
portfolio by acquiring $1.4 billion in consumer loans from Goldman Sachs    Marcus portfolio. This is
an opportunistic acquisition, but it is an asset class in which we have deep historical experience.
2

Activity across our operating companies is encouraging. It demonstrates the power of our franchises
and provides us with confidence that our strategy is succeeding.
Our mortgage company, Newrez, produced significant earnings and cash flow. With a 19% ROE
for full-year 2023, it leads its public mortgage company peers on the metric that matters most to
shareholders, profitability. We feel it is very well positioned to thrive in a dynamic market and deliver
stable earnings into the future.
Rithm took several steps to add to its capabilities. We announced the acquisition of Specialized Loan
Servicing (SLS) in October of 2023. This acquisition will complement our strategy to organically grow the
mortgage company   s servicing franchise, add attractively priced MSRs and contribute approximately
$136 billion of unpaid principal balance to the Newrez servicing platform. The combination fortifies the
mortgage company   s foundation, contributes to the growth of the 3rd party servicing business and
positions Newrez as a leader across all mainstream origination and servicing channels.
As we look forward, Rithm is built on a strong foundation that can endure challenging markets and
capitalize on upside opportunities. Our growth as an asset manager will make it a more resilient business
and provide exciting growth potential for shareholders and private capital partners. Both are critical to
our success. The team remains vigilant about managing risk, and we are excited for the prospects that lie
ahead. We will continue to evolve the business in ways that create value for our shareholders, employees
and partners, and we look forward to delivering strong returns over the years ahead.
On behalf of Rithm Capital, our Board of Directors, and the senior management team, we extend our
sincere appreciation for your ongoing support and continued partnership. We wish all of you health and
success, and we look forward to the positive impact that we can make together in 2024 and beyond.
Sincerely,
Michael Nierenberg
Chairman, Chief Executive Officer and President
Rithm Capital 2023 Annual Report
3



shareholder letter icon 4/11/2024 Letter Continued (Full PDF)
 

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