Q2 2026 Rithm Capital Corp Earnings Call Transcript
Key Points
- Rithm Capital Corp (RITM) reported a strong quarter with $338.9 million in EAD or $0.60 per diluted share.
- The company manages over $100 billion in investable assets, showcasing significant growth in its asset management business.
- Newrez, a leading mortgage company, reported a 22% ROE for the quarter, driven by disciplined origination strategies and higher servicing fees.
- Genesis Capital, a non-bank construction lender, showed significant growth with $1.9 billion in quarterly origination, up from $1.7 billion annually in 2022.
- The asset management business is expanding, with a focus on performance leading to more AUM and a diverse suite of product offerings for clients.
- GAAP net income was relatively low at $20.2 million or $0.04 per diluted share, impacted by hedges around the MSR portfolio.
- The common stock dividend yield of 10.6% is considered too high from the company's perspective.
- The real estate portfolio's San Francisco core portfolio's lease occupancy was only 60.9%, indicating challenges in that market.
- The company faces market volatility and higher interest rates, which could impact future performance.
- Despite strong performance, the stock is trading at a low valuation, and there are no immediate plans for stock buybacks or dividend increases.
Good morning and welcome to the Rithm Capital's second-quarter 2026 earnings call. (Operator Instructions)
Please note this event is being recorded. I would now like to turn the conference over to Emma Hoelke, Deputy General Counsel. Please go ahead.
Thank you and good morning, everyone. I would like to thank you for joining us today for Rithm Capital's second-quarter 2026 earnings call. Joining me today are Michael Nierenberg, Chairman, CEO and President of Rithm Capital; Nick Santoro, Chief Financial Officer of Rithm Capital; Baron Silverstein, President of Newrez; and Peter Brindley, Head of Real Estate at Elecor Properties.
Throughout the call, we are going to reference the earnings supplement that was posted this morning to the Rithm Capital website, www.rithmcap.com. If you've not already done so, I'd encourage you to download the presentation now.
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