Rithm Capital Q3 adjusted EPS beats estimates

Overview

• US alternative asset manager's Q3 adjusted EPS beat analyst expectations

• GAAP net income per diluted share rose sharply from prior qtr

• Residential transitional lending origination volume grew 25% yr/yr

Outlook

• Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• ASSET MANAGEMENT INFLOWS - Co said asset management platform saw $569 mln of gross new capital and fund commitment inflows in Q3, supporting fee-based earnings

• COMMERCIAL REAL ESTATE LEASING - Elecor Properties increased leasing activity to 1.0 mln sq ft YTD, achieving rents 22% higher across portfolio vs FY 2025

• RESIDENTIAL TRANSITIONAL LENDING - Genesis Capital Q3 origination volume rose 25% YoY to $1.5 bln, with new sponsors funded up 74% YoY

Company press release:

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 49.8% above its October 22 closing price of $8.68

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

Reuters Recommended Reads

• Oct 21 - Rithm Property Trust Q3 distributable earnings rise on mortgage-backed securities paydowns

• Oct 22 - Blackstone reports higher Q3 profit

• Oct 22 - CBRE Group tops Q3 core profit expectations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)