Rithm Capital Asset Management Revenue Rises 34%
The investment manager reported non-GAAP earnings available for distribution of $338.9 million for the second quarter.
Rithm Capital (RITM), the investment manager, reported a rise in non-GAAP earnings available for distribution to $338.9 million in the second quarter of 2026, up from $289.6 million in the prior quarter.
While GAAP net income decreased to $20.2 million from $67.8 million in the first quarter, the company saw growth in its asset management and mortgage servicing segments. Asset management assets under management increased to $61 billion from $59 billion, supported by $1.9 billion in gross inflows.
Revenue from the asset management arm rose 34% sequentially to $141 million from approximately $105 million. The increase was due to higher incentive fee income.
Within its Newrez segment, pre-tax operating income, excluding non-operating items and MSR mark-to-market loss, rose to $307.6 million from $273.7 million in the first quarter. The annualized operating return on equity for Newrez expanded to 22%, compared to 19% in the first quarter and 17% in the fourth quarter of 2025.
Newrez funded production volume for originations rose 3% sequentially to $15.9 billion, though the figure declined 2% year-over-year. Total servicing unpaid principal balance increased to $865.2 billion from $850 billion at the end of the previous quarter.
Genesis Capital reported a 52% year-over-year increase in origination volume, which reached $1.9 billion. The number of new sponsors funded grew by 125, a 46% increase over the same period last year.
Elecor reported year-to-date rents that were 32% higher in New York City and 1% higher in San Francisco compared to fiscal year 2025.
Book value per common share declined to $12.33 in the second quarter, down from $12.51 in the first quarter and $12.66 in the fourth quarter of 2025.