Rithm Capital Q2 profit falls

Overview

• U.S. alternative asset manager's Q2 net income and EPS declined from prior quarter

• Earnings available for distribution rose quarter over quarter, while dividend was unchanged

• Asset management revenue and AUM increased, Genesis posted record origination volume

Outlook

• Company says it is confident in its positioning amid an uncertain macro environment

Result Drivers

• ASSET MANAGEMENT GROWTH - Asset management revenue rose 34% quarter over quarter to $141 mln, driven by higher incentive fee income and $1.9 bln in gross inflows

• GENESIS ORIGINATION RECORD - Genesis Capital posted record origination volume of $1.9 bln, a 52% increase year over year, and expanded its sponsor base by 46%

• COMMERCIAL REAL ESTATE LEASING - Elecor increased year-to-date leasing activity to 681,000 sq ft, with rents 32% higher in New York City and 1% higher in San Francisco compared to FY 2025

Company press release: ID:nBw2q1H83a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Rithm Capital Corp is $13.00, about 40.8% above its July 27 closing price of $9.23

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads

• July 28 - AllianceBernstein Q2 adjusted EPS misses estimates on equity outflows

• July 28 - UK's Man Group H1 AUM rises to record on investment performance

• July 27 - REIT UDR sees 2026 FFO below estimate as higher costs weigh

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)