Core Viewpoint - Rithm Capital Corporation (NYSE:RITM) is identified as one of the most undervalued REIT stocks currently available for investment, with a Buy rating and a $16 price target from UBS following its acquisition of Paramount Group [1] Group 1: Company Strategy and Acquisitions - The acquisition of Paramount Group and Crestline is aimed at increasing Rithm Capital's assets under management and enhancing earnings potential in its asset management division [1] - Following the Crestline acquisition, Rithm Capital now manages approximately $102 billion in investable assets [1] Group 2: Investor Confidence and Financial Outlook - UBS suggests that additional details regarding third-party cash related to the Paramount Group acquisition could enhance investor confidence in Rithm Capital's overall strategy [2] - The firm also highlights the potential for long-term increases in return on equity and value multiples if Rithm Capital successfully implements its asset management strategy [2] Group 3: Business Segments - Rithm Capital operates as an alternative asset manager with a focus on real estate and related services, structured across four segments: origination & servicing, investment portfolio, residential transitional lending, and asset management [3]

Core Insights - Rithm Capital Corp. (RITM) is scheduled to report its fourth-quarter 2025 results on February 3, 2026, with earnings expected at 54 cents per share and revenues of $1.37 billion [1] Earnings Estimates - The fourth-quarter earnings estimate has decreased by 3 cents over the past 60 days, indicating a 10% decline from the previous year [2] - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year fall of 34.9% [2] - For the full year 2025, the revenue estimate is $4.46 billion, reflecting a decrease of 14.8% year-over-year, while the EPS estimate is $2.14, indicating a 1.9% growth [3] Performance History - Rithm Capital has beaten the consensus estimate in three of the last four quarters, with an average surprise of 13.7% [4] Earnings Whispers - The model does not predict an earnings beat for RITM this time, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 [5] Revenue Breakdown - The total asset management revenues are estimated at $277 million, a 3.2% increase year-over-year [6] - Net servicing revenues are projected to decline by 62.6% year-over-year, significantly impacting quarterly revenues [8] - The Origination & Servicing pre-tax income is expected to drop by 48.1%, despite gains from the Newrez business [6][9] Interest Income and Other Revenues - The Zacks Consensus Estimate for fourth-quarter interest income indicates a 0.6% year-over-year decline, while other revenues are expected to decline by 17.3% [8] Competitive Landscape - While an earnings beat for Rithm Capital appears uncertain, companies like Cboe Global Markets, Credicorp Ltd., and Brookfield Asset Management are highlighted as having favorable conditions for potential earnings beats [10][11][12][13]

Core Viewpoint - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect the views of any affiliated organization [4].

Group 1 - Rithm Capital Corp. will release its fourth quarter and full year 2025 financial results on February 3, 2026, prior to the opening of the New York Stock Exchange [1] - A conference call will be hosted by management on February 3, 2026, at 8:00 A.M. Eastern Time [1] - The earnings release will be available on the Company's website in the Investors – Events & Presentations section [2] Group 2 - Participants can access the conference call by dialing specific numbers based on their location, with a pre-registration encouraged [2] - A simultaneous webcast of the conference call will be available for public listening on the Company's website [3] - A telephonic replay of the conference call will be available for a limited time after the call's completion [4] Group 3 - Rithm Capital Corp. is a global alternative asset manager with expertise in managing credit and real estate assets [5] - The firm operates an integrated investment platform that includes asset-based finance, lending, mortgage servicing rights, and structured credit [5] - Rithm has established a unique owner-operator model through its subsidiaries, enabling it to source, finance, and manage investments effectively [5]

Core Insights - Rithm Capital Corporation (NYSE:RITM) is gaining favor among hedge funds, with analysts issuing positive ratings and price targets indicating significant upside potential [1][3]. Analyst Ratings - Douglas Harter from UBS initiated coverage on Rithm Capital Corporation, assigning a Buy rating with a price target of $16, suggesting an upside of over 36% [1][2]. - Piper Sandler analyst Crispin Love reaffirmed a Buy rating and raised his price target from $15 to $15.5, indicating an upside of nearly 32% [3]. Earnings Potential and Strategy - Harter's positive outlook is based on the strong earnings potential of Rithm's asset management segment, supported by an acquisitive strategy, including the recent acquisition of Paramount Group [2]. - Love highlighted the favorable near-term outlook due to a conducive mortgage environment and the company's diversification strategy across origination, investments, and servicing segments [4]. Company Overview - Rithm Capital Corporation operates as an alternative asset manager focused on real estate and related services, with four distinct segments: origination & servicing, investment portfolio, residential transitional lending, and asset management [5].

Group 1 - KBRA has assigned preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM1, a $502.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp [1] - The underlying mortgages in the pool were primarily originated by NewRez LLC (52.6%) and Caliber Home Loans Inc, LLC (27.4%), with all loans serviced by NewRez LLC [1] - NRMLT 2026-NQM1 is collateralized by a pool of 1,014 residential mortgages, with 31.7% originally securitized in NRMLT 2022-NQM5, which has been called [2] Group 2 - Borrowers in NRMLT 2026-NQM1 have a weighted average original credit score of 758, a weighted average original loan-to-value (LTV) of 72.2%, and a weighted average combined LTV (CLTV) of 72.2% [2] - The loans are seasoned approximately 15 months, with 31.7% of the pool seasoned over 2 years [2] Group 3 - KBRA's rating approach included loan-level analysis through its Residential Asset Loss Model (REALM), third-party loan file due diligence, cash flow modeling analysis, and reviews of key transaction parties [3] - The assessment also involved an evaluation of the transaction's legal structure and documentation [3]

Core Insights - The article highlights five stocks that are considered strong options for generating passive income, suggesting that investing $50,000 in each could yield over $20,600 by 2026 [1] Group 1: Ares Capital - Ares Capital is the largest publicly traded business development company (BDC) with a portfolio worth $28.7 billion invested in 587 companies across 35 industries, showcasing significant diversification compared to peers [3] - The current market cap of Ares Capital is $15 billion, with a current price of $20.72 and a dividend yield of 9.26%, which is expected to generate nearly $4,700 in passive income from a $50,000 investment [4][5] Group 2: Energy Transfer LP - Energy Transfer LP is a leading midstream energy company operating pipelines for natural gas, NGLs, crude oil, and refined products across the U.S., with a distribution yield of around 8% [6] - A $50,000 investment in Energy Transfer is projected to yield over $4,000 in passive income, supported by the company's strong financial position [6] Group 3: MPLX LP - MPLX LP is a major player in the North American midstream market, with over 10% of U.S. natural gas flowing through its pipelines [7] - The company offers a distribution yield of approximately 8%, and a $50,000 investment is expected to generate around $4,000 in passive income, with a history of increasing distributions by 12.5% in the last two years [9] Group 4: Rithm Capital - Rithm Capital is a real estate investment trust (REIT) involved in various aspects of the real estate sector, including property ownership and mortgage servicing [10] - The forward dividend yield exceeds 9.1%, and a $50,000 investment could produce more than $4,500 in passive income [11] Group 5: Verizon Communications - Verizon Communications is a well-known telecommunications company providing wireless services globally [12] - The company has a market cap of $170 billion, a dividend yield of 6.77%, and a history of increasing dividends for 19 consecutive years, with a $50,000 investment expected to yield over $3,400 in passive income [13]

Core Viewpoint - Rithm Capital Corp. (NYSE:RITM) is identified as a promising investment opportunity, particularly after its recent acquisition of Paramount Group, Inc., which enhances its asset management capabilities and commercial real estate presence [2][3]. Group 1: Acquisition Details - Rithm Capital Corp. successfully completed the acquisition of Paramount Group, Inc. on December 19, which includes 13 owned and 4 managed office assets totaling over 13.1 million square feet [2]. - The acquisition is expected to significantly bolster Rithm's fully integrated and diversified asset management platform, allowing for further development of the portfolio [3]. - Paramount Group will be integrated into Rithm's platform and rebranded to capitalize on new opportunities across the portfolio [4]. Group 2: Company Operations - Rithm Capital Corp. operates in various segments, including Origination and Servicing, Investment Portfolio, Residential Transitional Lending, Asset Management, and Corporate [5]. Group 3: Analyst Ratings - Piper Sandler analyst Crispin Love has reaffirmed a bullish stance on Rithm Capital Corp., assigning a Buy rating with a price target of $15.50 [1].

Core Viewpoint - Rithm (RITM) is experiencing a decline in stock price and is expected to report lower earnings and revenue in the upcoming earnings release [1][2]. Group 1: Stock Performance - Rithm's stock closed at $10.90, reflecting a -1.54% change from the previous day's closing price, which is worse than the S&P 500's daily loss of 0.74% [1]. - Prior to the recent trading session, Rithm's shares had decreased by 2.29%, underperforming compared to the Finance sector's gain of 2.1% and the S&P 500's gain of 0.79% [1]. Group 2: Earnings Expectations - Rithm is anticipated to report an EPS of $0.54, which represents a 10% decrease from the same quarter last year [2]. - The consensus estimate for Rithm's revenue is $1.37 billion, indicating a significant decline of 34.89% from the prior-year quarter [2]. - For the full year, analysts expect earnings of $2.14 per share and revenue of $4.46 billion, reflecting changes of +1.9% and -14.84%, respectively, from the previous year [3]. Group 3: Analyst Forecasts and Valuation - Recent revisions to analyst forecasts for Rithm are important as they may indicate changes in near-term business trends, with positive revisions suggesting optimism about the business outlook [4]. - The Zacks Rank system, which evaluates estimate changes, currently ranks Rithm at 3 (Hold), with a consensus EPS projection that has decreased by 1.61% in the past 30 days [6]. - Rithm has a Forward P/E ratio of 5.18, which is a discount compared to the industry average Forward P/E of 12.09 [6]. Group 4: Industry Context - Rithm operates within the Financial - Miscellaneous Services industry, which is part of the Finance sector and currently holds a Zacks Industry Rank of 96, placing it in the top 39% of over 250 industries [7].

Core Insights - The article provides a detailed analysis comparing Rithm Capital Corp. (RITM) to 17 other mortgage real estate investment trusts (mREITs) to address ongoing requests for such comparisons [1][2] - The analysis is divided into two parts, with Part 1 focusing on RITM's recent results and metrics, while Part 2 emphasizes dividend rates, yield percentages, and sustainability metrics [2][3] Group 1: RITM's Financial Metrics - RITM's book value as of September 30, 2025, is compared to its 17 mREIT peers, providing insights into its financial standing [2] - RITM declared a dividend of $0.25 per common share for Q3 2025, maintaining the same rate as the previous quarter, resulting in a trailing twelve-month (TTM) dividend yield of 8.26% [16][27] - The annual forward yield based on RITM's stock price as of September 19, 2025, is also 8.26%, while the yield based on the company's book value is 7.79% [16] Group 2: Dividend Sustainability Analysis - The article discusses RITM's dividend sustainability, indicating a very high probability (90%) of maintaining a dividend between $0.25 and $0.30 per share for Q1 and Q2 2026 [29] - RITM's quarterly core earnings available to common shareholders for Q3 2025 were reported at $296.9 million, translating to a core earnings per share of $0.54, which is above the dividend rate [23][21] - The dividend distribution payout ratios for RITM have been attractive, with ratios of 48%, 46%, and 47% for Q1, Q2, and Q3 2025, respectively [23] Group 3: Comparative Analysis with Peers - RITM's TTM dividend yield and annual forward yield percentages are notably below average when compared to its peer PMT, indicating a lower risk profile [16][27] - The article emphasizes that RITM has maintained a consistent dividend history, increasing its dividend from $0.35 in Q3 2014 to $0.25 since Q3 2021, contrasting with many peers that have reduced dividends [15][13] - The analysis includes a comparison of RITM's leverage ratio, which is lower than that of PMT, suggesting a more conservative approach to risk management [17] Group 4: Future Projections and Recommendations - The projected adjusted core earnings for Q4 2025 are expected to improve compared to Q3 2025, indicating a positive outlook for RITM's financial performance [30] - The current price target for RITM is approximately $14.60 per share, with recommendations varying from SELL at a premium to BUY at a discount to the projected book value [34][32] - The article concludes that RITM is currently undervalued, with a strong buy recommendation based on its financial metrics and market conditions [33]