Rithm Capital's Updated Sector Comparative Analysis - Part 1 (Includes Recommendation For 17 Peers As Of 3/13/2026)

2026-03-17 12:55:53 ET

Focus of Article:

The focus of PART 1 of this article is to analyze Rithm Capital Corp.’s ( RITM ) recent results and compare several of the company’s metrics to 17 mortgage real estate investment trust (mREIT) peers. This analysis will show past and current data with supporting documentation. Table 1a will compare RITM’s investment composition, recent leverage, hedging coverage ratio, and change in investment portfolio size to the 17 mREIT peers. Table 1b will compare RITM’s BV, economic return (loss), and premium (discount) to estimated CURRENT BV using stock prices as of 3/13/2026 to 17 mREIT peers. Table 2a will show an overview of RITM’s investment portfolio, Table 2b will provide a portfolio overview of RITM’s prior acquisition of Sculptor Capital Management Inc. (Sculptor), Table 2c will provide a portfolio overview of the company’s recent acquisition of Crestline Management L.P. (Crestline), and Table 2d will provide some details regarding one of the company’s largest current driver of earnings, its mortgage servicing rights (“MSR”) sub-portfolio. Table 3 will show RITM’s recent hedging coverage ratio over the prior 3 quarters (only contributor/team to provide continuous detailed hedging metrics).

I am writing this 2-part article due to requests that such an analysis be specifically performed on RITM versus its mREIT peers at periodic intervals. This article also discusses the importance of understanding the composition of RITM’s investment, derivatives, and asset management portfolios regarding projecting the company’s future quarterly results as interest rates/yields fluctuate. Understanding the characteristics of a company’s investment, derivatives, and asset management portfolios can shed some light on which companies are overvalued or undervalued strictly per a “numbers” analysis. This is not the only data that should be examined to initiate a position within a particular stock/sector. However, I believe this analysis is a good “starting-point” to begin a discussion on the topic. ...

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